SB 382 — AN ACT CONCERNING SOLICITATION OF RUN-OF-THE-RIVER HYDROPOWER AND ENERGY DERIVED FROM OFFSHORE WIND.

Senate General Assembly SubstituteFile Bill No.

382348 February Session, 2024 ANSubstitute ACTSenate CONCERNINGBill SOLICITATIONNo. OF RUN-OF-THE-RIVER HYDROPOWER AND ENERGY DERIVED FROM OFFSHORE WIND.

382 Senate, April 9, 2024 The Committee on Energy and Technology reported through SEN.

NEEDLEMAN of the 33rd Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.

AN ACT CONCERNING SOLICITATION OF RUN-OF-THE-RIVER HYDROPOWER AND ENERGY DERIVED FROM OFFSHORE WIND.

In making any selection of such proposals, the commissioner shall consider factors, including, but not limited to (1) whethersSB382 the/ proposalFile is in the interest of ratepayers, including, but not limited to, the delivered price of such sources, (2) the emissions profile of a relevant facility, (3) any investments made by a relevant facility to improve the emissions profile of such facility, (4) the length of time a relevant facility has received renewable energy credits, (5) any positive impacts on the state's economic development, (6) whether the proposal is consistent with requirements to reduce greenhouse gas emissions in LCO 1 of 3 Substitute Bill No.

382348 accordance1 withsSB382 sectionFile 22a-200a,No. including, but not limited to, the development of combined heat and power systems, (7) whether the proposal is consistent with the policy goals outlined in the Comprehensive Energy Strategy adoptedpursuant to section16a-3d, (8) whether the proposal promotes electric distribution system reliability and other electric distribution system benefits, including, but not limited to, microgrids, (9) whether the proposal promotes the policy goals outlined in the state-wide solid waste management plan developed pursuant to section 22a-241a, and (10) the positive reuse of siteswith limited development opportunities,including, but not limited to, brownfields or landfills, as identified by the commissioner in any solicitationissuedpursuanttothissection.Thecommissionermayselect proposals from such resources to meet up to six per cent of the load distributed by the state's electric distribution companies, provided the commissioner shall not select proposals for more than three per cent of the load distributed by the state's electric distribution companies from offshore wind resources.

348 whether the proposal is in the interest of ratepayers, including, but not limited to, the delivered price of such sources, (2) the emissions profile of a relevant facility, (3) any investments made by a relevant facility to improve the emissions profile of such facility, (4) the length of time a relevant facility has received renewable energy credits, (5) any positive impacts on the state's economic development, (6) whether the proposal is consistent with requirements to reduce greenhouse gas emissions in accordance with section 22a-200a, including, but not limited to, the development of combined heat and power systems, (7) whether the proposal is consistent with the policy goals outlined in the Comprehensive Energy Strategy adoptedpursuant to section16a-3d, (8) whether the proposal promotes electric distribution system reliability and other electric distribution system benefits, including, but not limited to, microgrids, (9) whether the proposal promotes the policy goals outlined in the state-wide solid waste management plan developed pursuant to section 22a-241a, and (10) the positive reuse of siteswith limited development opportunities,including, but not limited to, brownfields or landfills, as identified by the commissioner in any solicitationissuedpursuanttothissection.Thecommissionermayselect proposals from such resources to meet up to six per cent of the load distributed by the state's electric distribution companies, provided the commissioner shall not select proposals for more than three per cent of the load distributed by the state's electric distribution companies from offshore wind resources.

[(A)] (i) SoldsSB382 in/ theFile NewNo. England Power Pool Generation Information System renewable energy credit market to be used by any electric supplier or electric distribution company to meet the requirements of section 16- 245a, provided the revenues from such sale are credited to all customers of the contracting electric distribution company;

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348 Sold in the New England Power Pool Generation Information System renewable energy credit market to be used by any electric supplier or electric distribution company to meet the requirements of section 16- 245a, provided the revenues from such sale are credited to all customers of the contracting electric distribution company;

In considering whether to sell or retain such certificates, the LCOcompany 2shall ofselect 3the Substituteoption Billthat No.is in the best interest of such company's ratepayers.

382 company shall select the option that is in the best interest of such company's ratepayers.

-LCO LCOsSB382 3/ ofFile 3No.

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348 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 This bill increases power purchase agreement terms, from 20 to 30 years, allowed under an existing procurement authorization for run-of- the-river hydropower or offshore wind resources and eliminates the power purchase agreement term limit for energy storage systems and resulting in no fiscal impact to the state or municipalities.

The Out Years State Impact:

None Municipal Impact:

None sSB382 / File No.

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348 OLR Bill Analysis sSB 382 AN ACT CONCERNING SOLICITATION OF RUN-OF-THE-RIVER HYDROPOWER AND ENERGY DERIVED FROM OFFSHORE WIND.

SUMMARY This bill increases power purchase agreement terms, from 20 to 30 years, allowed under an existing procurement authorization for run-of- the-river hydropower or offshore wind resources.

It also eliminates the power purchase agreement term limit for energy storage systems.

For this procurement authorization, existing law allows the Department of Energy and Environmental Protection (DEEP) to solicit proposals from any combination run-of-the-river hydropower, landfill methane gas, biomass, fuel cells, offshore wind, anaerobic digestion, or energy storage systemproviders to meet up to 6%of thestate’s load,but not more than 3% of the state’s load from offshore wind providers.

The law allows the DEEP commissioner to direct the electric distribution companies (i.e., Eversource and United Illuminating) into power purchase agreements for selected proposals for any combination of energy, capacity, or environmental attributes.

EFFECTIVE DATE:

July 1, 2024 BACKGROUND Related Bill sSB 385, favorably reported by the Energy and Technology Committee, extends the maximum term, from 20 to 30 years, for agreements under a separate authorization for solicitations for Class I offshore wind facilities for up to 2,000 megawatts in the aggregate.

COMMITTEE ACTION Energy and Technology Committee Joint Favorable Yea 20 Nay 0 (03/21/2024) sSB382 / File No.

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