HB 5232 — AN ACT CONCERNING SOLAR PROJECTS THROUGHOUT THE STATE.

5232 the electric distribution companies' monthly billing systems, and establish consumer protections for subscribers and potential subscribers of such a facility, including, but not limited to, disclosures to be made when selling or reselling a subscription.

(D) The department shall limit subscribers to (i) low-income customers, (ii) moderate-income customers, (iii) small business customers, (iv) state or municipal customers, (v) commercial customers, and(vi)residentialcustomerswho candemonstrate, pursuant to criteria HB5232determined /by Filethe No.department in the program requirements recommended by the department and approved by the authority, that they are unable to utilize the tariffs offered pursuant to subsection (b) of this section.

620 HB5232 File No.

620 determined by the department in the program requirements recommended by the department and approved by the authority, that they are unable to utilize the tariffs offered pursuant to subsection (b) of this section.

(F) The department may allow preferences to projects that serve low- income customers and shared clean energy facilities that benefit customersPublic whoAct resideNo. in environmental justice communities.

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5232 customers who reside in environmental justice communities.

The authority may modify such definition for the limited purpose of aligning such definition with the HB5232requirementsofanyfederalactsprovidingrenewableenergy /incentives; File No.

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620 requirementsofanyfederalactsprovidingrenewableenergyincentives;

The authority may modify such definition for the limited purpose ofaligning suchdefinition withtherequirementsofanywiththerequirementsof any federal acts providing renewable energy incentives.

(b) (1) On or before July 1, 2020, the authority shall initiate a proceeding to establish (A) tariffs for each electric distribution company pursuant to subdivision (2) of this subsection, (B) a rate for such tariffs, whichPublic mayAct beNo. based upon the results of one or more competitive solicitations issued pursuant to subsection (a) of this section, or on the average cost of installing the generation project and a reasonable rate of return that is just, reasonable and adequate, as determined by the authority, and shall be guided by the Comprehensive Energy Strategy prepared pursuant to section 16a-3d, and (C) the period of time that will be used for calculating the net amount of energy produced by a facility and not consumed, provided the authority shall assess whether to incorporate time-of-use rates or other dynamic pricing and such period of time shall be either (i) in real time, (ii) in one day, (iii) in any fraction of a day not to exceed one day, or (iv) in any period of time greater than one day up to and including one month.

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5232 which may be based upon the results of one or more competitive solicitations issued pursuant to subsection (a) of this section, or on the average cost of installing the generation project and a reasonable rate of return that is just, reasonable and adequate, as determined by the authority, and shall be guided by the Comprehensive Energy Strategy prepared pursuant to section 16a-3d, and (C) the period of time that will be used for calculating the net amount of energy produced by a facility and not consumed, provided the authority shall assess whether to incorporate time-of-use rates or other dynamic pricing and such period of time shall be either (i) in real time, (ii) in one day, (iii) in any fraction of a day not to exceed one day, or (iv) in any period of time greater than one day up to and including one month.

The authorityshallissuea finaldecisionfinaldecisioninsuchproceeding insuchproceeding onor before July 1, 2021.

The authority may modify such rate for new customers under this subsection based on changed circumstances and may establish an interim tariff rate prior to the expiration of the residential solar investment program pursuant to subsection (b) of section 16-245ff as an alternative to such program, provided any residential customer HB5232utilizing /a Filetariff No.pursuant to this subsection at such customer's electric meter shall not be eligible for any incentives offered pursuant to section 16-245ff at the same such electric meter and any residential customer utilizing any incentives offered pursuant to section 16-245ff at such customer's electric meter shall not be eligible for a tariff pursuant to this subsection at the same such electric meter.

620 HB5232 File No.

620 utilizing a tariff pursuant to this subsection at such customer's electric meter shall not be eligible for any incentives offered pursuant to section 16-245ff at the same such electric meter and any residential customer utilizing any incentives offered pursuant to section 16-245ff at such customer's electric meter shall not be eligible for a tariff pursuant to this subsection at the same such electric meter.

(A) A tariff for the purchase of all energy and renewable energyPublic certificatesAct onNo. a cents-per-kilowatt-hour basis;

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5232 energy certificates on a cents-per-kilowatt-hour basis;

For purposes of this section, "residential customer" means a customer of a single-family dwelling, a multifamily dwelling consisting of two to four units, or a multifamily dwelling consisting of five or more units, provided in the case of a multifamily dwelling consisting of five or more units, (i) not less than sixty per cent of the units of the multifamily dwelling are occupied by persons and families with income that is not more than sixty per cent of HB5232the /area Filemedian No.income for the municipality in which it is located, as determined by the United States Department of Housing and Urban Development, or (ii) such multifamily dwelling is determined to be affordable housing by the Public Utilities Regulatory Authority in consultation with the Department of Energy and Environmental Protection, Department of Housing, Connecticut Green Bank, Connecticut Housing Finance Authority and United States Department of Housing and Urban Development.

620 HB5232 File No.

620 the area median income for the municipality in which it is located, as determined by the United States Department of Housing and Urban Development, or (ii) such multifamily dwelling is determined to be affordable housing by the Public Utilities Regulatory Authority in consultation with the Department of Energy and Environmental Protection, Department of Housing, Connecticut Green Bank, Connecticut Housing Finance Authority and United States Department of Housing and Urban Development.

(I) Each of the dwelling units receives an appropriate share of the benefits from the generation project, and (II) noPublic greaterAct thanNo. an appropriate share of the benefits from the generation project is used to offset common area usage.

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5232 no greater than an appropriate share of the benefits from the generation project is used to offset common area usage.

The authority shall monitor the competitiveness of any procurements authorized pursuant to subsection (a) of this section and may adjust the annual purchase amount established in this subsection or other procurement parameters HB5232to /maintain Filecompetitiveness. No.

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620 to maintain competitiveness.

(B) For procurement and tariff years commencing on and after January 1, 2025, the authority may exceed the limits on total available megawatts described in subparagraph (A) of this subdivision for any procurement and tariff program authorized pursuant to subsection (a) ofPublic thisAct sectionNo. in any such year, if, during the period commencing on January first and ending on the date that the last project is selected pursuant to the usual procurement process for such program, as determined by the authority, the aggregate dollar amount of procurements of energy and renewable energy credits over the tariff term for all selected projects does not exceed the aggregate dollar amount of procurements of energy and renewable energy credits over the tariff term for all projects selected in such program during the calendar year 2024.

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5232 of this section in any such year, if, during the period commencing on January first and ending on the date that the last project is selected pursuant to the usual procurement process for such program, as determined by the authority, the aggregate dollar amount of procurements of energy and renewable energy credits over the tariff term for all selected projects does not exceed the aggregate dollar amount of procurements of energy and renewable energy credits over the tariff term for all projects selected in such program during the calendar year 2024.

At the end of the tariff term pursuant to subparagraph (B) of subdivision (2) of subsection (b) of this section, residential customers that elected the HB5232option /pursuant Fileto No.said subparagraph shall be credited all cents-per- kilowatt-hour charges pursuant to the tariff rate for such customer for energy produced by the Class I renewable energy source against any energy that is consumed in real time by such residential customer.

620[(C)] HB5232(E) FileThe authority shall establish tariffs for the purchase of energy on a cents-per-kilowatt-hour basis at the expiration of any tariff Public Act No.

62024-31 option15 pursuantof to17 saidHouse subparagraphBill shallNo. be credited all cents-per- kilowatt-hour charges pursuant to the tariff rate for such customer for energy produced by the Class I renewable energy source against any energy that is consumed in real time by such residential customer.

[(C)]5232 (E) The authority shall establish tariffs for the purchase of energy on a cents-per-kilowatt-hour basis at the expiration of any tariff terms authorized pursuant to this section.

The authority shall establish proceduresfortheretirement ofsuchrenewableenergy certificates.Any net revenues from the sale of products purchased in accordance with thissectionshallbecreditedtocustomersthroughanonbypassablefully HB5232reconciling /component Fileof No.electric rates for all customers of the electric distribution company.

620(e) HB5232The Filecosts prudently and reasonably incurred by an electric distribution company pursuant to this section shall be recovered on a Public Act No.

62024-31 reconciling16 component of electric17 ratesHouse forBill allNo. customers of the electric distribution company.

(e)5232 The costs prudently and reasonably incurred by an electric distribution company pursuant to this section shall be recovered on a timely basis through a nonbypassable fully reconciling component of electric rates for all customers of the electric distribution company.

(Effective October 1, 2024) ThisApproved actMay shall21, take2024 effectPublic asAct followsNo. and shall amend the following sections:

Section24-31 117 fromof passage17 New section Sec.

2 from passage New section Sec.

3 July 1, 2024 New section Sec.

4 October 1, 2024 16a-40g(b) from passage Sec.

5 New section Sec.

6 July 1, 2024 16-244z HB5232 / File No.

620 HB5232 File No.

620 Sec.

7 October 1, 2024 Repealer section HB5232 / File No.

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620 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:

Municipalities Effect FY 25 $ FY 26 $ Various Municipalities Potential See Below See Below Revenue Gain Explanation This bill requires several studies be carried out by the Public Utilities Regulatory Authority (PURA) and the Department of Energy and Environmental Protection (DEEP), requires municipal reexamination of existing solar canopy policy, and expands the purview of the Connecticut Green Bank and results in potential revenue to municipalities.

The bill requires municipalities to establish a simplified approval process for building applications for solar canopies and requires municipalities to approve or deny within six months of the application submission.

This may result in a potential revenue gain to municipalities beginning in FY 25 to the extent they receive an increased number of applications.

House "A" strikes the underlying bill and results in the fiscal impact described above.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

HB5232 / File No.

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620 OLR Bill Analysis HB 5232 (as amended by House "A")* AN ACT CONCERNING SOLAR PROJECTS THROUGHOUT THE STATE.

TABLE OF CONTENTS:

SUMMARY § 1 — UNIFORM CAPACITY TAX STUDY Requires DEEP to study the feasibility and potential cost impacts of establishing a uniform capacity tax for solar facilities in the state and report to the Energy and Technology Committee by January 1, 2025 § 2 — RENEWABLE ENERGY TARIFF STUDY Requires PURA to study renewable energy tariffs and potential successor programs and report its findings to the Energy and Technology Committee by January 15, 2026 § 3 — SOLAR CANOPIES Requires municipalities to establish simplified processes for solar canopy approvals and act on land use applications for them within six months § 4 — GREEN BANK C-PACE PROJECT REQUIREMENTS Exempts renewable energy system expansions or upgrades from the Green Bank’s standards on projects costs and savings for C-PACE projects § 5 — IRP PROVISION ADDRESSING SOLAR SITING Requires DEEP to include information on solar siting in the next IRP in a format that can be overlayed on existing grid interconnection maps § 6 — RENEWABLE ENERGY TARIFFS Allows PURA to exceed NRES and SCEF caps, as long as aggregate dollar amounts for selected projects do not exceed amounts for projects selected in 2024;

extends SCEF by two years so that both NRES and SCEF end in 2027 HB5232 / File No.

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620 § 7 — RENEWABLE ENERGY AND EFFICIENT ENERGY FINANCE ACCOUNT (REEEFA) Eliminates an obsolete account and related program SUMMARY This bill makes various changes in laws related to renewable energy facilities, including renewable energy tariffs, Green Bank programs, solar canopies, and study requirements, as described in the section-by- section analysis below.

*House Amendment “A” replaces the underlying bill, and (1) eliminates its provisions on (a) a uniform capacity tax and property tax exemption changes and instead requires the Department of Energy and Environmental Protection (DEEP) to study the tax, (b) a DEEP study on community solar programs, (c) solar installation goals, (d) a solar canopy strategic plan, (e) a limit on the Green Bank’s marketing, and (f) a Lead by Example study on solar installation and (2) adds provisions on (a) PURA’s study on renewable energy tariffs, (b) DEEP’s inclusion of solar siting information in the Integrated Resource Plan (IRP), and (c) renewable energy tariff caps and timelines.

EFFECTIVE DATE:

Various;

see below.

§ 1 — UNIFORM CAPACITY TAX STUDY Requires DEEP to study the feasibility and potential cost impacts of establishing a uniform capacity tax for solar facilities in the state and report to the Energy and Technology Committee by January 1, 2025 The bill requires the DEEP commissioner, in consultation with the Office of Policy and Management, to study the feasibility and potential cost-related impacts of establishing a uniform capacity tax for solar facilities in the state.

The study must:

1.

examine the current statutory framework for personal and real property taxes on solar facilities;

2.

examine the history of municipal taxation of solar facilities;

3.

examine the costs of solar facility projects and a uniform capacity HB5232 / File No.

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620 tax’s potential impact, accounting for other cost factors for these projects;

4.

analyze what, if any, tax amount per megawatt (MW) of capacity would fairly compensate municipalities without making projects unviable;

and 5.

recommend any legislative changes.

The bill requires DEEP to report its findings and recommendations on establishing a uniform capacity tax to the Energy and Technology Committee by January 1, 2025.

EFFECTIVE DATE:

Upon passage § 2 — RENEWABLE ENERGY TARIFF STUDY Requires PURA to study renewable energy tariffs and potential successor programs and report its findings to the Energy and Technology Committee by January 15, 2026 The bill requires the Public Utilities Regulatory Authority (PURA) chairperson to study existing renewable energy tariff programs.

The study must examine whether to extend the tariff programs beyond its current authorized timeframe.

The study must also examine potential processes to avoid stranded projects and potential successor programs, including (1) potential programs without MW caps;

(2) different possible criteria and procedures to choose projects (e.g., lottery or first- come, first-served basis);

and (3) alternative bidding frameworks (e.g., awarding solicitations based on soonest deployment).

The bill requires the PURA chairperson to report her findings and any recommendations to the Energy and Technology Committee by January 15, 2026.

EFFECTIVE DATE:

Upon passage § 3 — SOLAR CANOPIES Requires municipalities to establish simplified processes for solar canopy approvals and act on land use applications for them within six months The bill requires municipal planning commissions, zoning HB5232 / File No.

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620 commissions, or combined planning and zoning commissions to amend their zoning regulations to establish a simplified approval process for solar canopy applications.

The bill requires these commissions to approve or deny land use applications to build solar canopies within six months of their filing dates.

The bill applies these requirements regardless of any conflicting municipal charter provisions or ordinances.

Under the bill, a solar canopy is an outdoor, shade-providing structure that hosts solar panels located above a parking or driving area, pedestrian walkway, courtyard, canal, or other used surface that is installed in a way that maintains the function of the area underneath the structure.

Solar canopies include carports.

EFFECTIVE DATE:

July 1, 2024 § 4 — GREEN BANK C-PACE PROJECT REQUIREMENTS Exempts renewable energy system expansions or upgrades from the Green Bank’s standards on projects costs and savings for C-PACE projects The Green Bank’s Commercial Property Assessed Clean Energy Program (C-PACE) finances certain energy improvement projects, repaidthroughanassessment ontheproperty,backedby alien.

Current law requires the Green Bank to adopt standards for C-PACE to determine whether the project’s combined projected energy costs savings and other associated savings over its useful life exceed its costs, but exempts certain types of projects from these standards (e.g., zero- emission vehicle refueling infrastructure and resilience improvement projects).

The bill additionally exempts projects from these standards thatareexpansionsorupgradestoanexistingrenewableenergysystem.

EFFECTIVE DATE:

October 1, 2024 § 5 — IRP PROVISION ADDRESSING SOLAR SITING Requires DEEP to include information on solar siting in the next IRP in a format that can be overlayed on existing grid interconnection maps Existing law requires DEEP to develop the IRP every two years in consultation with electric distribution companies (EDCs, i.e., HB5232 / File No.

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620 Eversource and United Illuminating) to review and plan for the state’s energy needs (CGS § 16a-3a).

The bill requires the DEEP commissioner, as part of the IRP, to submit information on the potential siting of solar projects in the state.

The commissioner must consult with the agriculture and economic and community development commissioners and submit the information (1) by one year after the bill’s passage and (2) in a format that can be overlayed onto the EDC’s existing grid interconnection maps.

EFFECTIVE DATE:

Upon passage § 6 — RENEWABLE ENERGY TARIFFS Allows PURA to exceed NRES and SCEF caps, as long as aggregate dollar amounts for selected projects do not exceed amounts for projects selected in 2024;

extends SCEF by two years so that both NRES and SCEF end in 2027 The law and subsequent PURA decisions establish renewable energy tariffs that govern how electric customers who install, lease, or otherwise contract with solar facilities are compensated for the energy and related attributes these facilities generate.

The law sets caps for two programs under these tariffs:

the Nonresidential Energy Solutions program (NRES) and the Shared Clean Energy Facility program (SCEF).

For NRES, the law caps low-emissions projects at 10 MW per year and zero-emissions projects at 100 MW per year.

For SCEF, the law applies a 50 MW cap (CGS § 16-244z(c)(1)(A)).

For procurement and tariff years starting January 1, 2025, the bill allows PURA to exceed the above caps under certain conditions and in a manner PURA determines.

Specifically, PURA may do so if the aggregate dollar amount of energy andrenewable energy procurements under the programs, during the period starting January 1 and ending when the last project is selected under the usual procurement process as PURA determines and over the tariff term for all selected projects, does not exceed the aggregate dollar amount over the tariff term for projects selected during calendar year 2024.

The law initially established a six-year schedule for SCEF and NRES, but, in practice, these programs started in different years.

The bill HB5232 / File No.

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620 extends SCEF for two years, aligning its termination with NRES, so that both programs end in calendar year 2027.

While the bill otherwise generally retains SCEF and NRES caps, it makes a technical change to remove a provision establishing an aggregate cap for both programs.

EFFECTIVE DATE:

July 1, 2024 § 7 — RENEWABLE ENERGY AND EFFICIENT ENERGY FINANCE ACCOUNT (REEEFA) Eliminates an obsolete account and related program The bill eliminates REEEFA, which, under current law, is a separate, nonlapsing account within the Green Bank’s Clean Energy Fund.

The bill also eliminates a requirement that the Green Bank establish a renewable energy and efficient energy finance program, supported by the account.

In practice, authorization for bond funding for this account was cancelled in 2016 (PA 16-4, May Special Session, § 324).

EFFECTIVE DATE:

October 1, 2024 COMMITTEE ACTION Energy and Technology Committee Joint Favorable Yea 14 Nay 6 (03/21/2024) HB5232 / File No.

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