HB 6523 — AN ACT CONCERNING VIRTUAL NET METERING CREDITS FOR MANUFACTURERS IN DISTRESSED MUNICIPALITIES.

House of Representatives General Assembly RaisedFile Bill No.

6523269 January Session, 2021 LCOHouse Bill No.

38546523 ReferredHouse toof Representatives, April 6, 2021 The Committee on ENERGYEnergy ANDand TECHNOLOGYTechnology Introducedreported by:through REP.

(ET)ARCONTI ANof ACTthe CONCERNING109th VIRTUALDist., NETChairperson METERINGof CREDITSthe FORCommittee MANUFACTURERSon INthe DISTRESSEDpart MUNICIPALITIES.of the House, that the bill ought to pass.

AN ACT CONCERNING VIRTUAL NET METERING CREDITS FOR MANUFACTURERS IN DISTRESSED MUNICIPALITIES.

At least ten million dollars per year,HB6523 of/ theFile thirty million dollars per year cap, shall be designated for LCO 3854 \\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06523-R01-1 of 2 HB.docx Raised Bill No.

6523269 manufacturerslocated1 inadistressedHB6523 municipality,asdefinedinFile sectionNo. 32-9p, providedthat such manufacturers include, in its application to an electric distribution company, an anticipated plan for the utilization of any energy savings associated with the credits received under this section.

269 year, of the thirty million dollars per year cap, shall be designated for manufacturerslocated inadistressed municipality,asdefinedin section 32-9p, providedthat such manufacturers include, in its application to an electric distribution company, an anticipated plan for the utilization of any energy savings associated with the credits received under this section.

Section 1 July 1, 2021 16-244u(e)(1) ET Joint Favorable LCOHB6523 3854/ {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06523-File 2No. of 2 R01-HB.docx }

269 2 HB6523 File No.

269 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 virtual net metering credit cap from $20 to $30 million and requires that $10 millionincreditsbeprovidedtomanufacturerslocatedindistressed municipalities.

The bill does not increase the portion under the cap that may be utilized by municipalities to achieve energy savings and therefore does not result in a savings to municipalities participating in the program.

The Out Years State Impact:

None Municipal Impact:

None HB6523 / File No.

269 3 HB6523 File No.

269 OLR Bill Analysis HB 6523 AN ACT CONCERNING VIRTUAL NET METERING CREDITS FOR MANUFACTURERS IN DISTRESSED MUNICIPALITIES.

SUMMARY The state’s virtual net metering law generally allows a state, municipal, or agricultural “customer host” that owns or leases certain renewable energy resources (e.g., solar) to (1) generate virtual net metering billing credits when the host generates more power than it uses and (2) share the credits with the customer host’s designated “beneficial accounts” to reduce the beneficial accounts’ electric bills.

This bill increases the annual cap on virtual net metering credits from $20 million to $30 million, but it requires that at least $10 million in annual credits be designated for manufacturers in a distressed municipality (presumably, as beneficial accounts of a state or municipal customer host).

It also requires the manufacturers to include, in their application to an electric distribution company (EDC) (i.e., Eversource and United Illuminating), an anticipated plan for using any energy savings associated with the credits it receives.

(The bill does not specify any criteria that this plan must meet for approval.

In addition, it is unclear how a manufacturer would meet this requirement, as existing law requires a customer-host to give its EDC advance written notification about its designated beneficial accounts, but it does not require the beneficial account holders to apply for an EDC’s approval (CGS § 16-244u(d)).) By law, the Department of Economic Community Development commissioner must annually designate distressed municipalities based on a combination of economic, education, demographic, and housing criteria.

In 2020, she designated the following 25 municipalities as distressed:

Ansonia, Bridgeport, Bristol, Chaplin, Derby, East Hartford, HB6523 / File No.

269 4 HB6523 File No.

269 East Haven, Griswold, Hartford, Meriden, Montville, New Britain, New Haven, New London, Norwich, Preston, Putnam, Sprague, Stratford, Torrington, Voluntown, Waterbury, West Haven, Winchester, and Windham.

EFFECTIVE DATE:

July 1, 2021 COMMITTEE ACTION Energy and Technology Committee Joint Favorable Yea 26 Nay 0 (03/18/2021) HB6523 / File No.

269 5