HB 6527 — AN ACT INCREASING THE TOTAL OUTPUT OF CLASS III SOURCES.

Substitute House ofBill Representatives General Assembly File No.

2706527 JanuaryPublic Session,Act 2021 Substitute House Bill No.

652721-118 HouseAN ofACT Representatives,INCREASING AprilTHE 6,TOTAL 2021OUTPUT TheOF CommitteeCLASS onIII EnergySOURCES. and Technology reported through REP.

ARCONTI of the 109th Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.

AN ACT INCREASING THE TOTAL OUTPUT OF CLASS III SOURCES.

On or after January 1, 2009, not less than three per cent of the total output of sHB6527any /such Filesupplier No.or such standard service of an electric distribution company shall, on demonstration satisfactory to the Public Utilities Regulatory Authority, be obtained from Class III sources.

270On 1and sHB6527after FileJanuary 1, 2010, notlessthanfour percent ofthetotaloutputofany such Substitute House Bill No.

2706527 any such supplier or such standard service of an electric distribution company shall, on demonstration satisfactory to the Public Utilities Regulatory Authority, be obtained from Class III sources.

On and after January 1, 2010, notlessthanfour percent ofthetotaloutputofany such supplier or such standard service of an electric distribution company shall, on demonstration satisfactory to the Public Utilities Regulatory Authority, be obtained from Class III sources.

ThisApproved actJuly shall6, take2021 effectPublic asAct followsNo. and shall amend the following sections:

Section21-118 12 Julyof 1,2 2021 16-243q(a) ET Joint Favorable Subst.

sHB6527 / File No.

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270 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

None Municipal Impact:

None Explanation There is no fiscal impact resulting from the bill, which increases the output of Class III energy sources to at least 5% of the total output by electric distribution companies between January 1, 2022 and December 31, 2024.

While the bill is not anticipated to have a fiscal impact, it may impact ratepayers to the extent that Class III energy sources are more costly to procure than traditional sources.

The Out Years State Impact:

None Municipal Impact:

None sHB6527 / File No.

270 3 sHB6527 File No.

270 OLR Bill Analysis sHB 6527 AN ACT INCREASING THE TOTAL OUTPUT OF CLASS III SOURCES.

SUMMARY This bill temporarily increases, from 4% to 5%, the Class III procurement requirement under the state’s Renewable Portfolio Standard (RPS) law.

The RPS generally requires the electric distribution companies (EDCs, i.e., Eversource and United Illuminating) and retail electric suppliers to obtain a portion of their power from certain energy resources categorized as Class I, II, and III.

By law, Class III sources include electricity from certain combined heat and power systems, certain waste heat recovery systems, and conservation and load management programs, generally excluding those supported by ratepayers (CGS § 16-1(a)(38)).

From January 1, 2022, until December 31, 2024, the bill requires the EDCs and suppliers to obtain 5%, rather than 4%, of the power they provide to customers from Class III sources.

(Presumably, the Class III requirement reverts to 4% after 2024, but it is unclear.) EFFECTIVE DATE:

July 1, 2021 COMMITTEE ACTION Energy and Technology Committee Joint Favorable Substitute Yea 18 Nay 8 (03/18/2021) sHB6527 / File No.

270 4