Connecticut 2021 Regular Session Status: Enacted Bipartisan · 6 D · 3 R cosponsors

HB 6524 — AN ACT CONCERNING THE SOLICITATION OF NEW FUEL CELL ELECTRICITY GENERATION PROJECTS.

Last action — SIGNED BY GOVERNOR

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 25, 2021. Enacted.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

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Prognosis

Likely to advance 78% · moderate confidence

  • Enacted

    Current position in the legislative process.

  • 12 sponsors

    12 primary, 0 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (6 D · 3 R) — cross-party backing.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Bill Text

What changed in the latest version

105 added · 281 removed

105 line(s) added, 281 removed.

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House of Representatives File No.
House Bill No.
728 General Assembly January Session, 2021(Reprint of File No.
6524 Public Act No.
167) House Bill No.
21-162 AN ACT CONCERNING THE SOLICITATION OF NEW FUEL CELL ELECTRICITY GENERATION PROJECTS.
6524 As Amended by House Amendment Schedule "A" Approved by the Legislative Commissioner May 26, 2021 AN ACT CONCERNING THE SOLICITATION OF NEW FUEL CELL ELECTRICITY GENERATION PROJECTS.
In the event that the authority approves such plan, an electric distribution company may submit to the authority (1) one or HB6524 / File No.
In the event that the authority approves such plan, an electric distribution company may submit to the authority (1) one or more proposals to build, own and operate new fuel cell generation, (2) proposed power purchase agreements negotiated with persons to build, own and operate new fuel cell generation, or (3) proposals to provide financial incentives for the installation of combined heat and power systems powered by fuel cells, provided any such incentives shall be House Bill No.
728 HB6524 File No.
6524 consistent with the Comprehensive Energy Strategy pursuant to section 16a-3d.
728 more proposals to build, own and operate new fuel cell generation, (2) proposed power purchase agreements negotiated with persons to build, own and operate new fuel cell generation, or (3) proposals to provide financial incentives for the installation of combined heat and power systems powered by fuel cells, provided any such incentives shall be consistent with the Comprehensive Energy Strategy pursuant to section 16a-3d.
The facilities acquired under this section shall not exceed a total nameplate HB6524 / File No.
The facilities acquired under this section shall not exceed a total nameplate capacity rating of thirty megawatts inthe aggregate apportioned among each electric distribution company in proportion to distribution load.
728 HB6524 File No.
Public Act No.
728 capacity rating of thirty megawatts inthe aggregate apportioned among each electric distribution company in proportion to distribution load.
21-162 2 of 4 House Bill No.
Any proposed projects submitted by an electric distribution company shall include the electric distribution company's full projected costs and shall demonstrate to the authority that such facility is not supported in any form of cross subsidization by affiliated entities, except that the costs associated with those benefits which the authority determines that a proposed fuel cell project confers on the natural gas system may be recovered fromallgascustomersthroughthepurchasedgasadjustment clause established pursuant to section 16-19b and such costs shall be apportioned relative to the revenues of each gas company as reported to the authority pursuant to section 16-49 for the most recent fiscal year.
6524 Any proposed projects submitted by an electric distribution company shall include the electric distribution company's full projected costs and shall demonstrate to the authority that such facility is not supported in any form of cross subsidization by affiliated entities, except that the costs associated with those benefits which the authority determines that a proposed fuel cell project confers on the natural gas system may be recovered fromallgascustomersthroughthepurchasedgasadjustment clause established pursuant to section 16-19b and such costs shall be apportioned relative to the revenues of each gas company as reported to the authority pursuant to section 16-49 for the most recent fiscal year.
Nothing in this section shall preclude the resale or other disposition of any energy products, capacity and associated HB6524 / File No.
Nothing in this section shall preclude the resale or other Public Act No.
728 HB6524 File No.
21-162 3 of 4 House Bill No.
728 environmental attributes purchased by the electric distribution company, [provided the electric distribution company shall net the cost of payments made to projects under any long-term contracts entered into pursuant to subdivision (2) of this section against the proceeds of the sale of any energy products, capacity and environmental attributes and the difference thereof plus any net costs incurred pursuant to subdivision(3)ofthissectionshallbecreditedor chargedto distribution customers through a reconciling component of electric rates, as determined by the authority, that is nonbypassable when switching electric suppliers] if so ordered by the authority.
6524 disposition of any energy products, capacity and associated environmental attributes purchased by the electric distribution company, [provided the electric distribution company shall net the cost of payments made to projects under any long-term contracts entered into pursuant to subdivision (2) of this section against the proceeds of the sale of any energy products, capacity and environmental attributes and the difference thereof plus any net costs incurred pursuant to subdivision(3)ofthissectionshallbecreditedor chargedto distribution customers through a reconciling component of electric rates, as determined by the authority, that is nonbypassable when switching electric suppliers] if so ordered by the authority.
This act shall take effect as follows and shall amend the following sections:
Approved July 12, 2021 Public Act No.
Section 1 July 1, 2021 16-244y HB6524 / File No.
21-162 4 of 4
728 HB6524 File No.
728 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 as amended, which requires electric distribution companies to solicit proposals for fuel cell electricity generation projects.
House "A" makes changes to which projects shall receive preference from electric distribution companies when making selections and does not result in a fiscal impact.
The Out Years State Impact:
None Municipal Impact:
None HB6524 / File No.
728 5 HB6524 File No.
728 OLR Bill Analysis HB 6524 (as amended by House "A")* AN ACT CONCERNING THE SOLICITATION OF NEW FUEL CELL ELECTRICITY GENERATION PROJECTS.
SUMMARY This bill requires each electric distribution company (EDC;
i.e., Eversource and United Illuminating) to (1) solicit proposals to acquire new fuel cell electricity generation projects that begin operation on or after July 1, 2021, (2) select project proposals from those solicitations, and (3) submit their selected proposals to the Public Utilities Regulatory Authority (PURA).
Under the bill, PURA must evaluate the proposals and may approve them for certain purposes, such as enhancing distribution system reliability.
The bill limits the size of project facilities the EDCs may acquire to 30 megawatts of capacity in the aggregate apportioned to each EDC based on its distribution load.
Under the bill, costs prudently incurred by an EDC must be recovered from all its customers through a fully reconciling component of its electric rates until the company’s next rate case, when the company may recover its costs and investments for newly owned fuel cell generation through its base distribution rates, as determined by PURA.
Additionally, the bill eliminates a similar provision in current law authorizing, but not requiring, the EDCs to submit plans to PURA to acquirenewfuelcellelectricitygenerationfacilitiesthatbeganoperation on or after July 1, 2017.
*House Amendment “A” (1) removes a provision in the underlying bill requiring EDCs to give preference to products that meet in-state manufacturing requirements and are on landfills or brownfields and HB6524 / File No.
728 6 HB6524 File No.
728 instead requires preferences for projects that meet either requirement, (2) provides that the in-state manufacturing requirement applies to projects that use equipment manufactured in the state, rather than projects manufactured in the state, and (3) broadens PURA’s ability to approve projects to provide back-up power to commercial and industrial customers beyond projects that provide on-site generation.
EFFECTIVE DATE:
July 1, 2021 SOLICITATION PROCESS AND PROPOSAL SUBMISSIONS The bill requires the EDCs to use a competitive solicitation process and give preference to projects (1) that use equipment manufactured in the state or (2) sited on landfills or brownfields (see BACKGROUND) when selecting new fuel cell electricity generation projects from the proposals they receive.
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Presumably, before soliciting for project proposals, however, the EDCs must, by August 1, 2021, jointly file with PURA a proposed tariff (generally, rates, terms, and conditions) to use in their solicitations, subject to PURA’s approval.
The bill does not specify a timeline for PURA to review and approve the tariff.
The bill requires each EDC to submit selected project proposals and associated tariffs to PURA by January 1, 2022.
Under the bill, submitted proposals must (1) include the EDC’s full projected costs and (2) demonstrate to PURA that a project’s facility is not supported in any form of cross subsidization by affiliated entities, except that gas companies may recover costs associated with benefits a proposed project confers on the natural gas system, as determined by PURA.
Gas companies may recover these costs from all gas customers through the statutory purchased gas adjustment clause in proportion to their revenue as reported to PURA for the most recent fiscal year.
PROJECT EVALUATION AND APPROVAL The bill requires PURA to evaluate submitted project proposals in a manner consistent with ratemaking principles established in state law (see BACKGROUND).
It authorizes PURA to approve any projects for the following purposes:
HB6524 / File No.
728 7 HB6524 File No.
728 1.
to give commercial or industrial electric or gas customers on-site generation that (a) increases power quality or resilience or (b) reduces their energy costs;
2.
to provide emergency service facilities or commercial or industrial electric or gas customers with back-up power;
or 3.
to enhance distribution system reliability, including making electric voltage or frequency improvements, supporting microgrids, or taking other measures that support electric or gas system resiliency.
By law, “resilience” istheability to prepare for andadapt to changing conditions and withstand and recover rapidly from deliberate attacks, accidents, or naturally occurring threats or incidents, such as those associated with climate change.
USE OF ENERGY PRODUCTS The bill allows the EDCs to use any energy products, capacity, and environmental attributes (e.g., renewable energy certificates (RECs)) produced by a project’s facility to meet the needs of their standard service customers (i.e., customers who do not select a retail energy supplier), and as may otherwise be determined by PURA.
The bill explicitly does not preclude companies from reselling or otherwise disposing of energy products, capacity, and environmental attributes they purchase under the bill if PURA orders them to do so.
Thestate’srenewableportfoliostandard(RPS)generallyrequiresthat a portion of the power provided by the EDCs and retail electric suppliers come from renewable resources.
Companies may meet their RPS requirement through purchasing RECs.
By law, the EDCs must contract with their wholesale suppliers to comply with the RPS.
The bill supersedes this law and allows the EDCs to retain Class I RECs issued by the New England Power Pool Generation Information System for fuel cells acquired under the bill to meet their RPS requirements, as determined by PURA.
HB6524 / File No.
728 8 HB6524 File No.
728 BACKGROUND Brownfields By law, a brownfield is any abandoned or underused site where redevelopment, reuse, or expansion has not occurred due to the presence or potential presence of pollution in the buildings, soil, or groundwater that requires investigation or remediation before or in conjunction with the property’s redevelopment, reuse, or expansion (CGS § 32-760(2)).
Ratemaking Principles By law, PURA must generally investigate whether proposed rates by public service companies (including the EDCs and gas companies) conform to the following ratemaking principles established in law:
1.
there must be a clear public need for the service being proposed or provided;
2.
the public service company must be fully competent to provide efficient and adequate service (i.e., it is technically, financially, and managerially expert and efficient);
3.
PURA and all public service companies must perform their respective public responsibilities with economy, efficiency, and care for public safety and energy security, as well as promote economic development within the state with consideration for conservation, energy efficiency, development and use of renewable energy, and prudent management of the natural environment;
4.
the rate level and structure must be sufficient, but no more than sufficient, to allow companies to cover their operating costs, including appropriate staffing levels, and capital costs, to attract needed capital and to maintain financial integrity, and yet provide appropriate protection to relevant public interests;
5.
the level and structure of rates charged to customers must reflect prudent and efficient management of the operation;
and HB6524 / File No.
728 9 HB6524 File No.
728 6.
company rates, charges, conditions of service, and categories of service must not discriminate against customers using renewable energy sources or co-generation technology to meet a portion of their energy requirements (CGS § 16-19e).
COMMITTEE ACTION Energy and Technology Committee Joint Favorable Yea 25 Nay 0 (03/11/2021) HB6524 / File No.
728 10
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Action History

  1. SIGNED BY GOVERNOR

  2. TRANSMITTED BY SECRETARY OF THE STATE TO GOVERNOR

  3. TRANSMITTED TO SECRETARY OF THE STATE

  4. PUBLIC ACT 21-162

  5. IN CONCURRENCE

  6. SEN. PASSED, HO. AMEND. SCH. A

  7. SEN. ADOPTED HO. AMEND. SCH. A

  8. FILE NO. 728

  9. SENATE CALENDAR NUMBER 489

  10. FAV. RPT., TAB. FOR CAL., SEN.

  11. HOUSE PASSED, HOUSE AMEND. SCH. A

  12. HOUSE ADOPTED HOUSE AMEND. SCH. A

  13. FILE NO. 167

  14. HOUSE CALENDAR NUMBER 155

  15. FAV. RPT., TABLED FOR HOUSE CALENDAR

  16. RPTD. OUT OF LCO

  17. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 03/29/21

  18. FILED WITH LCO

  19. Joint Favorable

  20. PUBLIC HEARING 0304

  21. REF. TO JOINT COMM. ON Energy and Technology

Sponsors

Sponsorship breakdown

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12 sponsors · 0 co-sponsors · 175 not signed on

Sponsors (12)

Co-sponsors (0)

None.

Not signed on (175)

175 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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technology energy
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Frequently asked questions

Who sponsors HB 6524?
HB 6524 is sponsored by Arconti, David, Saud Anwar (Democratic), Bob Godfrey (Democratic), Anthony L. Nolan (Democratic), Hilda E. Santiago (Democratic), Abercrombie, Catherine F., Cook, Michelle L., Patrick E. Callahan (Republican), Larry B. Butler (Democratic), Tom O'Dea (Republican), Stephen G. Harding (Republican), and Kenneth Gucker (Democratic).
What is the current status of HB 6524?
This bill has been enacted into law. Introduced February 25, 2021. Enacted.
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