HB 7087 — AN ACT CONCERNING COMMUNITY SOLAR ENERGY GENERATING SYSTEMS.

560 general statutes, to implement the provisions of this section, including regulations establishing (1) consumer protections for electric customers, (2) a tariff structure for a subscriber organization or an electric distribution company to provide a subscriber with the kilowatt–hours or value of the subscriber's subscription at the retail rate for electricity in the state, (3) a calculation for virtual net energy metering determined by the authority, (4) a protocol for electric distribution companies, electricity suppliers and subscriber organizations to communicate the information necessary to calculate and provide monthly electric bill credits and any yearly net excess generation payments required by this section, and (5) a protocol for a subscriber organization to coordinate with an electric distribution company for the interconnection of a community solar energy generating system with the distribution grid operated by such company and the commencement of operations of such system.

(d) Any contract relating to a community solar energy generating system or subscriber organization executed during the program shall not be affected by the termination of such program.

(e) After such program terminates, (1) a subscriber organization may continue the operation of a community solar energy generating system that began operation during the program, including the creation and tradingofsubscriptions,and(2)eachelectricdistributioncompany shall continue to facilitate the operation of a community solar energy generating system that began operation during the program, in accordance with the program requirements and regulations adopted by the authority pursuant to this section.

(f) A subscriber organization may submit content to be posted on the Internet web site of the Energy Conservation Management Board, established pursuant to section 16-245m of the general statutes, to inform customers of an electric distribution company of potential offers and subscriptions provided by such organization, including offers or subscriptions that may be used by such customers in combination with electric supply offers from other sources.

Each electric distribution sHB7087 / File No.

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560 company shall place a message on each customer electric bill informing suchcustomerhowtosubscribetoacommunitysolarenergygenerating system and information concerning offers on the Energy Conservation Management Board's Internet web site.

(NEW) (Effective October 1, 2025,2025) andThe applicableConnecticut Green Bank, created pursuant to taxablesection years16-245n commencingof onthe general statutes, in consultation with the Commissioner of Energy and afterEnvironmental JanuaryProtection, 1,shall 2026)establish (a)and Asadminister useda inprogram thisto section:be known as the "community solar energy credit sale program".

(1)Under "Commissioner"such meansprogram, a subscriber organization may transfer any unsubscribed or overproduced energy credits held by such organization to the CommissionerConnecticut ofGreen EconomicBank andfor Communitysale Development;by the bank.

(2)Upon "Full-timetransfer, employee"such meansenergy ancredits employeeshall whobe isowned requiredby tothe workbank atuntil leastsold thirty-five or moreotherwise hoursdisposed perof weekby atthe abank. shared clean energy merchant facility.

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andUpon (3)the "Qualifiedsale sharedof cleanany such energy subscriptioncredit organization"by meansthe abank, sharedthe cleanpurchase price of such energy subscriptioncredit, organizationless thata employsreasonable notadministrative fewerfee thandetermined fiveby full-timethe employeesbank in consultation with the operationcommissioner, ofshall abe sharedremitted cleanto energythe merchantsubscriber facility.organization.

(b)Sec. For taxable income years commencing on or after January 1, 2026, but not after January 1, 2030, the Commissioner of Revenue Services shall grant a credit against the tax imposed under chapter 208 or 229 of the general statutes, other than the liability imposed by section 12-707 of the general statutes, in an amount equal to the amount specified by the Commissioner of Economic and Community Development in a tax credit voucher issued by the Commissioner of Housing pursuant to subsection (c) of this section.

(c)3. The commissioner shall administer a system of tax credit vouchers for qualified shared clean energy subscription organizations.

Such(Effective voucherOctober may1, be2025) used(a) asThere is established a creditworking againstgroup to study the taxvalue toand whichcosts suchof organizationthe ispilot subjectprogram underestablished chapterpursuant 208to orsection 2291 of this act and make recommendations to the generalPublic statutes,Utilities LCORegulatory No.Authority on the advisability of establishing a permanent program.

4788Such 5working group shall consist of 6(1) Raisedthe Billchairperson No.of the Public Utilities Regulatory Authority, or the chairperson's designee, (2) the Commissioner of Energy and Environmental Protection, or the commissioner's designee, (3) the Consumer Counsel, or the Consumer Counsel's designee, and (4) such other persons as the chairperson of the Public Utilities Regulatory Authority believes may serve to accomplish the purpose of the working group.

7087(b) otherAll thaninitial appointments to the liabilityworking imposedgroup byshall sectionbe 12-707made ofnot thelater generalthan statutes.July 1, 2026.

ToAny bevacancy eligible to claim a voucher under this section, a qualified shared clean energy subscription organization shall applybe tofilled by the commissionerchairperson onof asHB7087 form/ prescribedFile byNo. the commissioner.

(d)560 The6 commissionersHB7087 shallFile adoptNo. regulations, in accordance with the provisions of chapter 54 of the general statutes, to implement the provisions of this section, including, but not limited to, the conditions for certification of a qualified shared clean energy subscription organization applying for vouchers under this section.

560 the Public Utilities Regulatory Authority.

The chairperson of the Public Utilities Regulatory Authority shall serve as chairperson of the working group and shall schedule the first meeting of the working group, which shall be held not later than October 1, 2026.

(c) In conducting the study, the working group shall identify and examine (1) a framework for valuation of the costs and benefits related to community solar and virtual net energy metering, (2) the costs and benefits of community solar energy generating systems to participating subscribers and to nonsubscriber ratepayers, (3) an appropriate credit mechanism and operational structure that allows a community renewable solar energy generating system to minimize administrative costs to an electric company, electric supplier or subscriber organization, (4) the benefits to and the technical and cost impacts of community solar programs and virtual net energy metering on an electric company's distribution grid, (5) issues, benefits and concerns related to the participation of electric companies, including investor– owned utilities, in community solar programs and projects, including owners and operators of the projects, (6) whether and how community solar projects or virtual net energy metering have a substantially different technicalimpact onthedistributionsystemthantraditionalnet energy metering, (7) any impacts of the program on the standard offer service procurement process, (8) community solar programs and cost– benefit studies in other states, (9) whether and how community solar programs can help reduce the cost of compliance with the renewable energy portfolio standard, (10) how community solar energy generating systems can impact locational marginal prices in the state, (11) the impacts of the pilot program on energy costs, reliability and equitable cost allocation for ratepayers, (12) how community solar project developers can increase participation by low and moderate–income retail electric customers in community solar projects, (13) the progress of the community solar energy generating pilot program established pursuant to section 1 of this act, in attracting low and moderate–income retail electric customers, (14) whether community solar energy generating systemsare anoverallnet benefit inhelping the state achieve its distributed generation and renewable goals, and (15) any other sHB7087 / File No.

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560 matters the working group considers relevant and appropriate.

(d) Not later than January 1, 2028, the chairperson of the Public Utilities Regulatory Authority shall submit a report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to energy and technology.

Such report shall include an analysis of the factors identified in subsection (c) of this section.

The working group shall terminate on the date that it submits such report or January 1, 2028, whichever is later.

2 October 1, 2025,2025 and New section applicableSec. to taxable years commencing on and after January 1, 2026 Statement of Purpose:

To3 (1)October allow1, shared2025 cleanNew energysection subscriberStatement organizations to build, own and operate electrical generation or storage facilities that generate or store electricity from renewable sources, (2) allow any end user of anLegislative electricCommissioners: distribution company to enter into a subscription with a shared clean energy subscriber organization, and (3) require any electric distribution company to provide billing credits to any end user who enters into such a subscription.

thatSection when1(a)(3)(E) thewas entirerewritten textfor ofclarity; a bill or resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.

4788in 6Section of1(b)(6), 6"by" was changed to "pursuant to" for accuracy;

in Section 1(c)(1), "electric consumer protections" was changed to "consumer protections for electric customers" for clarity;

in Section 3(c)(7), "identification of" was deleted and "of the program" was added after "impacts" for clarity and grammar;

in Section 3(c)(8), "a review of" was deleted for grammar.

ET Joint Favorable Subst.

sHB7087 / File No.

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560 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 The bill requires the Public Utilities Regulatory Authority (PURA) to start a preceding to establish a community solar energy generating pilot program, adopt regulations and conduct a study on the pilot program.

This is not anticipated to result in an additional cost to PURA as they have the staff and resources necessary to complete the requirements contained within the bill.

Rate Payer Impact The rate payer impact of the bill is indeterminate and would be dependent upon decisions made by electric distribution companies (EDC) and the development and approval of the community solar pilot program.

The bill establishes the development of a program that would rely on rate payer funds to support incentives and build the community solar pilot program, which could result in increased costs to rate payers.

However,totheextentthatcustomers(includingmunicipalities) receive credits on their bills for a portion of the electricity the project generates, rate payers will experience savings.

The net impact, which is anticipated to yield overall savings, is indeterminate and would be dependent upon various decisions related to the development and the execution of the pilot program that could sHB7087 / File No.

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560 offset savings and are outside the immediate scope of the bill.

The Out Years State Impact:

None Municipal Impact:

None sHB7087 / File No.

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560 OLR Bill Analysis sHB 7087 AN ACT CONCERNING COMMUNITY SOLAR ENERGY GENERATING SYSTEMS.

SUMMARY This bill requires the Public Utilities Regulatory Authority (PURA) to start a proceeding, by December 1, 2025, to establish a community solar energy generating system (“community solar project”) pilot program.

Under the program, electric customers may subscribe to a community solar project andreceive creditsfor aportionoftheelectricity thesystem generates.

These credits are applied, through virtual net energy metering, toward the subscriber’s account or meter with an electric distribution company (EDC, i.e.

Eversource and United Illuminating).

The billspecifiesthatmunicipalelectricutilitiesandcooperativeutilities may participate in the program, but also limits subscriber participation to only EDC customers.

The bill caps the pilot program at 600 megawatts, based on the nameplate capacity of all projects.

It also, among other things, establishes processes for a community solar project to sell any excess credits it generates, requires PURA to adopt pilot program regulations (including a tariff structure that provides the retail rate for energy produced under a subscription), and allows a participating community solar project to continue operating as one even after the pilot program ends.

(Presumably, the pilot program ends when subscriber organizations claim 600 megawatts in capacity.) Additionally, the bill establishes a working group to study the pilot programandmakerecommendationstoPURAonwhetherapermanent program should be established.

EFFECTIVE DATE:

October 1, 2025 sHB7087 / File No.

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560 COMMUNITY SOLAR PROJECT PILOT PROGRAM Community Solar Energy Generating Projects Under the bill, a community solar project is a solar photovoltaic system located in ISO–New England territory that may have a connectedenergystoragesystem.Toqualify,aprojectmusthaveatleast two subscribers.

Through virtual net energy metering, described below, subscribers receive credits on their bills (presumably electric bills) for a portion of the electricity the project generates.

(The bill does not specify how EDCs recover their costs for the program.) A community solar project must have its own electric meter or be connected to two or more subscribers’ electric meters.

To qualify, a project may not be owned by an EDC and no individual subscriber may constitute more than 60% of the total subscriptions.

EDCs must use the energy a community solar project produces to offset the electricity it purchases from wholesale suppliers for its standard service.

The bill specifies a subscriber organization (the community solar project’s owner or a collective group of subscribers) may contract with an outside party to finance, construct, own, or operate a community solar project.

It also makes the subscriber organization responsible for paying any costs associated with small generator interconnection standards PURA may adopt or approve.

Notification of Offers EDCs must place a message on customers’ electric bills letting them know how to subscribe to a community solar project and about offers on the Energy Conservation Management Board’s website.

The bill allows subscriber organizations to submit information, for posting on this website, about potential offers and subscriptions it provides, including any that may be used in combination with other sources’ electric supply offers.

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560 Subscribers and Subscriptions Under the bill, subscribers must be EDC retail customers, but all rate classes are eligible to participate.

Subscribers must have at least one individual meter or account to which the subscription can be applied.

The bill specifies that electric customers receiving their electric supply through a standard service plan and those receiving it through a third- party supplier may subscribe to the same community solar project.

The bill requires the community solar project’s subscriber organization to allocate subscriptions among subscribers.

Virtual Net Energy Metering and Subscriber Credits Under the bill, virtual net energy metering is measured over a subscriber’s billing period and is the difference between the number of kilowatt hours (kWh) that are supplied by the electric company and the number attributable to his or her subscription and fed back to the electric grid.

It may also be measured using the difference in electricity value, rather than kWh.

Billing.

The subscriber organization calculates the credits owed each subscriber under the bill and the EDC must provide these credits according to a tariff structure in regulations PURA must adopt, as described below.

The EDC must additionally offer subscriber organizations a “consolidated billing mechanism,” through which the EDC also bills subscribers for charges (or credits) related to the community solar project’s operations.

Credit Cap.

The bill limits the credits a subscriber may receive.

A subscriber may not receive credit for virtual net excess generation (presumably, credit that exceeds usage) that exceeds 200% of the subscriber’s baseline annual usage (i.e.

the total kWh used over the 12 months before the most recent subscription began or, if the subscriber does not have this record, a 12-month estimate determined in a way that PURA approves).

Sale of Excess and Unsubscribed Energy and Credits To EDCs.

If the community solar project generates kilowatt hours sHB7087 / File No.

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560 that are not allocated to any subscriber (i.e.

unsubscribed energy), the bill allows the subscriber organization to sell them to an EDC under the company’s processes for purchasing the output from qualifying facilities at the amount the energy would cost to procure on the electric market in the state.

The subscriber organization may transfer any unsubscribed or overproduced energy credits to the Connecticut Green Bank as described below.

By Connecticut Green Bank.

The bill requires the Connecticut Green Bank, in consultation with the Department of Energy and Environmental Protection (DEEP), to establish and administer a community solar energy credit sale program.

Under this program, subscriber organizations may transfer any unsubscribed or overproduced energy credits to the bank, which then owns them until it sells or disposes of them.

Under the bill, the bank determines the purchasepriceofthecreditsitreceivesfromthesubscriberorganization.

(Presumably this is the price the Green Bank pays the subscriber organization for the credits.) After selling the credits, the bank must remit the proceeds back to the subscriber organization, less an administrative fee the bank sets in consultation with the commissioner.

Pilot Program Termination The bill specifies that any community solar project or subscriber organization contracts executed during the pilot program are not affected by the program ending.

Once the program ends, subscriber organizations may continue operating projects (including accepting subscriptions) that began under the pilot program.

Similarly, EDCs must continue to facilitate these projects’ operations.

They must do so in accordance with the program’s requirements and regulations PURA adopts.

PURA Regulations The bill requires PURA to adopt regulations to implement the pilot program by February 1, 2026.

These regulations must establish:

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560 1.

consumer protections for electric customers;

2.

a tariff structure providing the electric retail rate for the kWh or value produced under a subscriber’s subscription;

3.

a calculation for virtual net energy metering;

4.

a protocol for EDCs, electric suppliers, and subscriber organizations to exchange information about, calculate, and providemonthly bill credits and any yearly net excess generation payments required under the bill (the bill does not define or otherwise reference yearly excess generation payments);

and 5.

a protocol for subscriber organizations to coordinate with EDCs to interconnect their community solar projects with the distribution grid and start operating the projects.

Once PURA adopts these regulations, subscriber organizations may petition EDCs to coordinate the community solar project’s interconnection and the start of its operations.

Subscriber organizations must notify each EDC and electric supplier serving its subscribers about the regulations.

PILOT PROGRAM WORKING GROUP The bill establishes a working group to study the pilot program’s value and costs and make recommendations to PURA on whether a permanentprogramshouldbeestablished.ThePURAchairpersonmust submit, by January 1, 2028, a report to the Energy and Technology Committee analyzing theworking group’sfindings.The working group terminates on this date or when it submits the report, whichever is later.

Membership and Initial Meeting The working group members include the following or their designees:

the (1) PURA chairperson, (2) DEEP commissioner, and (3) consumer counsel.

The PURA chairperson may also appoint any other people she believes may help the working group achieve its purpose.

Initial appointments must be made by July 1, 2026.

The PURA sHB7087 / File No.

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560 chairperson (or, presumably, her designee if she appoints one in her stead) is the working group’s chairperson and must fill vacancies and schedule the first meeting, which must be held by October 1, 2026.

Study Considerations When conducting the study, the working group must identify and examine:

1.

a framework to valuethecostsandbenefitsrelated to community solar and virtual net energy metering;

2.

the costs and benefits of community solar projects for participating subscribers and other ratepayers;

3.

credit mechanisms and operating structures allowing a project to minimize electric companies’, electric suppliers’, or subscriber organizations’ administrative costs;

4.

the benefits and costs, including the technical impact, of community solar projects and virtual net energy metering on EDCs’ distribution grids;

5.

issues, benefits, and concerns about participating in community solar programs and projects by electric companies (including investor-owned companies) and project owners and operators;

6.

the technical impact that virtual net energy metering and these projects have on the distribution system compared to the impact of traditional net energy metering;

7.

any impacts the program has on the standard service procurement process;

8.

community solar programs and cost-benefit studies in other states;

9.

whether and how community solar programs can reduce renewable portfolio standard compliance costs;

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560 10.

how community solar projects can impact locational marginal prices in the state;

11.

the pilot program’s impact on energy costs, including their equitable allocation among ratepayers, and reliability;

12.

the pilot program’s progress in attracting low- and moderate- income customers and how future project developers can increase their participation;

13.

whether community solar energy generating systems provide a net benefit overall in helping the state meet its distributed generation and renewable goals;

and 14.

any other matters the working group considers relevant and appropriate.

COMMITTEE ACTION Energy and Technology Committee Joint Favorable Substitute Yea 14 Nay 9 (03/18/2025) sHB7087 / File No.

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