House Bill #5274 (2017)

AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS -- RENEWABLE ENERGY GROWTH PROGRAM

Expands the renewable energy growth program for an additional ten (10) years after the fifth program year, with an annual target of forty (40) nameplate megawatts for each year of the ten (10) year period.

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  • 2017 – H 5274
  • 2017 – H 5274 SUBSTITUTE A
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  • LC000857
  • LC000857/SUB A
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  • S T A T E O F R H O D E I S L A N D
  • IN GENERAL ASSEMBLY
  • JANUARY SESSION, A.D. 2017
  • ____________
  • A N A C T
  • RELATING TO PUBLIC UTILITIES AND CARRIERS – RENEWABLE ENERGY GROWTH
  • PROGRAM
  • S TATE OF RHODE IS L AND
  • IN GENERAL ASSEMBLY
  • JANUARY SESSION, A.D. 2017
  • ____________
  • A N A C T
  • RELATINGTO PUBLIC UTILITIESAND CARRIERS– RENEWABLEENERGY GROWTH
  • PROGRAM
  • Introduced By: Representatives Ruggiero, Handy, Regunberg, Tanzi, and O`Grady
  • Date Introduced: January 27, 2017
  • Referred To: House Environment and Natural Resources
  • It is enacted by the General Assembly as follows:
  • SECTION 1. Section 39-26.6-12 of the General Laws in Chapter 39-26.6 entitled "The Renewable Energy Growth Program" is hereby amended to read as follows:
  • 39-26.6-12. Annual bidding and enrollments.
  • (a) With the exception of the first program year (2015), the electric-distribution company, in consultation with the board and office, shall conduct at least three (3) tariff enrollments for each distributed-generation class each program year. For the first program year, the board may recommend that either two (2) or three (3) enrollments be conducted.
  • (b) During each program year, the tariff enrollments shall have both an annual targeted amount of nameplate megawatts ("annual MW target") and a nameplate megawatt target for each separate enrollment event ("enrollment MW target"). The enrollment MW target shall comprise the specific portion of the annual MW target sought to be obtained in that enrollment. The enrollment MW targets shall be recommended by the board each year, subject to commission approval. The board shall also recommend a megawatt target for each class ("class MW target") that comprises a specified portion of the enrollment MW target, subject to commission approval. If the electric-distribution company, the office, and the board mutually agree, they may reallocate megawatts during an enrollment from one class to another without commission approval if there is an over-subscription in one class and an under-subscription in another, provided that the annual MW Target is not being exceeded, except as provided in § 39-26.6-7.
  • Referred To: House Environment and NaturalResources
  • It is enacted by the GeneralAssembly as follows:
  • SECTION 1. Section 39-26.6-12 of the General Laws in Chapter 39-26.6 entitled "The Renewable Energy Growth Program"is hereby amended to read as follows:
  • 39-26.6-12. Annual bidding and enrollments.
  • (a) With the exception of the first program year (2015), the electric-distribution company, in consultation with the board and office, shall conduct at least three (3) tariff enrollments for each distributed-generation class each program year. For the first program year, the board may recommend that either two (2) or three (3) enrollments be conducted.
  • (b) During each program year, the tariff enrollments shall have both an annual targeted amount of nameplate megawatts ("annualMW target") and a nameplate megawatt target for each separate enrollment event ("enrollment MW target"). The enrollment MW target shall comprise the specific portion of the annual MW target sought to be obtained in that enrollment. The enrollment MW targets shall be recommended by the board each year, subject to commission approval. The board shall also recommend a megawatt target for each class ("class MW target") that comprises a specified portion of the enrollment MW target, subject to commission approval. If the electric-distribution company, the office, and the board mutually agree, they may reallocate megawatts during an enrollment from one class to another without commission approval if there is an over-subscription in one class and an under-subscription in another, provided that the annual MW Target is not being exceeded, except as provided in § 39-26.6-7.
  • (c) The annual MW targets shall be established as follows; provided, however that at least three megawatts (3 MW) of nameplate capacity shall be carved out exclusively for small- scale solar projects in each of the first four (4) program years:
  • (1) For the first program year (2015), the annual MW target shall be twenty-five (25) nameplate megawatts;
  • (2) For the second program year, the annual targets shall be forty (40) nameplate megawatts;
  • (3) For the third and fourth program years, the annual target shall be forty (40) nameplate megawatts, subject to the conditions set forth in § 39-26.6-12(f) having been met for the applicable prior program year as determined in the manner specified in § 39-26.6-12(g); and
  • (4) For the fifth program year, the annual target shall be set to obtain the balance of capacity needed to achieve one hundred sixty (160) nameplate megawatts within the five-year (5) distributed-generation growth program, subject to § 39-26.6-12(e) and the conditions set forth in § 39-26.6-12(f) having been met for the fourth program year as determined in the manner specified in § 39-26.6-12(g).
  • (5) For the sixth and ninth subsequent program years thereafter, the annual target for each year shall be forty (40) nameplate megawatts.
  • (d) During the fifth year of the distributed-generation growth program, the board may recommend to the commission an extension of time in the event that additional time is required to achieve the full one hundred sixty (160) nameplate megawatt target of the program. The commission shall approve the recommendation of the board; provided, however, that the commission may make any modifications to the board's recommendation that the commission deems appropriate, consistent with the legislative purposes of this chapter as set forth herein.
  • (e) To the extent there was a shortfall of capacity procured under chapter 26.2 of title 39 from distributed generation procurements in 2014, such shortfall amount may be added to the one hundred sixty megawatt (160MW) target for acquisition in the fifth program year under this chapter. In no event shall the electric distribution company be required to exceed the aggregate amount of one hundred sixty (160) nameplate capacity plus any such shortfall amount over the five (5) years, but may do so voluntarily, in consultation with the board and subject to commission approval.
  • (f) The conditions specified in subsections (c)(3) and (c)(4) of this section are as follows: (1) That it is reasonable to conclude that the bid prices submitted in the procurements for the large-scale solar and commercial-scale solar classes were reasonably competitive in the immediately preceding program year; (2) That it is reasonable to conclude that the annual MW target specified for the next program year is reasonably achievable; and (3) That the electric- distribution company was able to, or with reasonably prudent efforts should have been able to, perform the studies and system upgrades on a timely basis necessary to accommodate the number of applications associated with the targets without materially adversely affecting other electric- distribution construction projects needed to provide reliable and safe electric-distribution service. To the extent the board or the commission concludes that any of these conditions have not been met for the applicable program year, the board may recommend, and/or the commission may adopt, a new annual MW target, based on the factors set forth in section 39-26.6-12(h).
  • (g) Before the third, fourth, and fifth program years, each year the board shall review the conditions specified in § 39-26.6-12(f) and make a recommendation to the commission for findings as to whether they have been met for the applicable year. The recommendation shall be filed with the commission, with copies to the office and the electric distribution company, and any person who has made a written request to the commission to be included in such notification, such list which may be obtained from the commission clerk, and a notice of such filing shall be posted by the commission on its website. If no party files an objection to the recommended findings within ten (10) business days of the posting, the commission may accept them without hearings. If an objection is filed with a reasonable explanation for its basis, the commission shall hold hearings and make the factual determination of whether the conditions have been met.
  • (3) For the third and fourth program years, the annualtarget shallbe forty (40) nameplate megawatts, subject to the conditions set forth in § 39-26.6-12(f) having been met for the applicable prior program year as determined in the manner specified in § 39-26.6-12(g); and
  • (4) For the fifth program year, the annual target shall be set to obtain the balance of capacity needed to achieve one hundred sixty (160) nameplate megawatts within the five-year (5) distributed-generation growth program, subject to § 39-26.6-12(e) and the conditions set forth in § 39-26.6-12(f) having been met for the fourth program year as determined in the manner specified in § 39-26.6-12(g).; and
  • (5) From the year 2020 through the year 2029, the annual target for each program year shall be an additional forty (40) nameplate megawatts above the annual target for the preceding program year.
  • (d) During the fifth year of the distributed-generation growth program, the board may recommend to the commission an extension of time in the event that additionaltime is required to achieve the full one hundred sixty (160) nameplate megawatt target of the program. The commission shall approve the recommendation of the board; provided, however, that the commission may make any modifications to the board's recommendation that the commission deems appropriate, consistent with the legislative purposes of this chapter as set forth herein.
  • (e) To the extent there was a shortfallof capacity procured under chapter 26.2 of title 39 from distributed generation procurements in 2014, such shortfall amount may be added to the one hundred sixty megawatt (160MW) target for acquisition in the fifth program year under this chapter. In no event shall the electric distribution company be required to exceed the aggregate amount of one hundred sixty (160) nameplate capacity plus any such shortfall amount over the five (5) years, but may do so voluntarily, in consultation with the board and subject to commission approval.
  • (f) The conditions specified in subsections (c)(3) and (c)(4) of this section are as follows: (1) That it is reasonable to conclude that the bid prices submitted in the procurements for the large-scale solar and commercial-scale solar classes were reasonably competitive in the
  • LC000857/SUB A - Page 2of 6 immediately preceding program year; (2) That it is reasonable to conclude that the annual MW target specified for the next program year is reasonably achievable; and (3) That the electric- distribution company was able to, or with reasonably prudent efforts should have been able to, perform the studies and system upgrades on a timely basis necessary to accommodate the number of applications associated with the targets without materially adversely affecting other electric- distribution construction projects needed to provide reliable and safe electric-distribution service. To the extent the board or the commission concludes that any of these conditions have not been met for the applicable program year, the board may recommend, and/or the commission may adopt, a new annualMW target, based on the factors set forth in section 39-26.6-12(h).
  • (g) Before the third, fourth, and fifth program years, each year the board shallreview the conditions specified in § 39-26.6-12(f) and make a recommendation to the commission for findings as to whether they have been met for the applicable year. The recommendation shallbe filed with the commission, with copies to the office and the electric distribution company, and any person who has made a written request to the commission to be included in such notification, such list which may be obtained from the commission clerk, and a notice of such filing shall be posted by the commission on its website. If no party files an objection to the recommended findings within ten (10) business days of the posting, the commission may accept them without hearings. If an objection is filed with a reasonable explanation for its basis, the commission shall hold hearings and make the factualdetermination of whether the conditions have been met.
  • (h) In the event that the conditions in § 39-26.6-12(f) have not been met for any program year, then the board and the commission shall take into account the factors set forth below in setting the annual MW target for the following year. In addition, for every program year the board and the commission shall take into account these factors in setting the class MW targets, and the enrollment MW targets for the following year: (1) That the new annual, class, and enrollment levels reasonably assure that competition among projects for the applicable bidding classifications remains robust and likely to yield reasonable and competitive program costs; (2) That, assuming prudent management of the program, the electric-distribution company should be able to perform the studies and system upgrades on a timely basis necessary to accommodate the number of applications associated with the targets without materially adversely affecting other electric-distribution construction projects needed to provide reliable and safe electric-distribution service; and (3) Any other reasonable factors that are consistent with the legislative purpose of this chapter as set forth herein, including the program purpose to facilitate the development of renewable distributed generation in the load zone of the electric-distribution company at reasonable cost.
  • (i) The renewable energy growth program is intended to achieve at least an aggregate amount of one hundred sixty (160) nameplate megawatts over five (5) years, plus any shortfall amount added in pursuant to § 39-26.6-12(e). However, after the second program year, the board may, based on market data and other information available to it, including pricing received during previous program years, recommend changes to the annual target for any program year above or below the specified targets in § 39-26.6-12(c) if the board concludes that market conditions are likely to produce favorably low or unfavorably high target pricing during the upcoming program year, provided that the recommendation may not result in the five-year (5) one hundred sixty megawatt (160MW) nameplate target, plus any shortfall added pursuant to § 39-26.6-12(e), being exceeded. Any megawatt reduction in an annual target shall be added to the target in the fifth year of the program (and any subsequent years if necessary) such that the overall program target of one hundred sixty megawatt (160MW) nameplate capacity, plus any shortfall added pursuant to § 39-26.6-12(e), is achieved. In considering such issues, the board and the commission may take into account the reasonableness of current pricing and its impact on all electric distribution customers and the legislative purpose of this chapter as set forth herein, including the program purpose to facilitate the development of renewable distributed generation in the load zone of the electric-distribution company at reasonable cost.
  • LC000857/SUB A - Page 3of 6
  • (i) The renewable energy growth program is intended to achieve at least an aggregate amount of one hundred sixty (160) nameplate megawatts over five (5) years, plus any shortfall amount added in pursuant to § 39-26.6-12(e). However, after the second program year, the board may, based on market data and other information available to it, including pricing received during previous program years, recommend changes to the annual target for any program year above or below the specified targets in § 39-26.6-12(c) if the board concludes that market conditions are likely to produce favorably low or unfavorably high target pricing during the upcoming program year, provided that the recommendation may not result in the five-year (5) one hundred sixty megawatt (160MW) nameplate target, plus any shortfalladded pursuant to § 39-26.6-12(e), being exceeded. Any megawatt reduction in an annualtarget shallbe added to the target in the fifth year of the program (and any subsequent years if necessary) such that the overall program target of one hundred sixty megawatt (160MW) nameplate capacity, plus any shortfalladded pursuant to § 39-26.6-12(e), is achieved. In considering such issues, the board and the commission may take into account the reasonableness of current pricing and its impact on all electric distribution customers and the legislative purpose of this chapter as set forth herein, including the program purpose to facilitate the development of renewable distributed generation in the load zone of the electric-distribution company at reasonable cost.
  • (j) The provisions of § 39-26.1-4 shall apply to the annual value of performance-based incentives (actual payments plus the value of net-metering credits, as applicable) provided by the electric-distribution company to all the distributed-generation projects under this chapter, subject to the following conditions:
  • (1) The targets set for the applicable program year for the applicable project classifications were met or, if not met, such failure was due to factors beyond the reasonable control of the electric-distribution company;
  • (2) The electric-distribution company has processed applications for service and completed interconnections in a timely and prudent manner for the projects under this chapter, taking into account factors within the electric-distribution company's reasonable control. The commission is authorized to establish more specific performance standards to implement the provisions of this chapter; and
  • (3) The incentive shall be one and three-quarters percent (1.75%) of the annual value of performance-based incentives. The commission is authorized to establish more specific performance standards to implement the provisions of this paragraph.
  • SECTION 2. This act shall take effect upon passage.
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  • LC000857
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  • EXPLANATION
  • BY THE LEGISLATIVE COUNCIL
  • OF
  • A N A C T RELATING TO PUBLIC UTILITIES AND CARRIERS – RENEWABLE ENERGY GROWTH
  • PROGRAM
  • ***
  • This act would expand the renewable energy growth program for an additional ten (10) years after the fifth program year, with an annual target of forty (40) nameplate megawatts for each year of the ten (10) year period.
  • This act would take effect upon passage. ======== LC000857 ========
  • (3) The incentive shall be one and three-quarters percent (1.75%) of the annualvalue of performance-based incentives. The commission is authorized to establish more specific performance standards to implement the provisions of this paragraph.
  • LC000857/SUB A - Page 4of 6
  • SECTION 2. This act shalltake effect upon passage. ======== LC000857/SUB A ========
  • LC000857/SUB A - Page 5of 6
  • EXPLANATION
  • BY THE LEGISLATIVE COUNCIL
  • OF
  • A N A C T RELATINGTO PUBLIC UTILITIESAND CARRIERS– RENEWABLEENERGY GROWTH
  • PROGRAM
  • ***
  • This act would expand the renewable energy growth program so that from 2020 through 2029 there will be an annual target of forty (40) nameplate megawatts above the prior program year's annualtarget.
  • This act would take effect upon passage. ======== LC000857/SUB A ========
  • LC000857/SUB A - Page 6of 6

Votes

NOTE: Electronic voting records are unofficial and may not be accurate. For an official vote tally, check the House or Senate Journal from the day of the vote.

Floor vote for PASSAGE

June 06, 2017 at 5:17pm
Yeas: 60 / Nays: 11 / Not voting: 4 / Recused: 0
Legislator Vote
Rep. Abney Y
Rep. Ackerman Y
Rep. Ajello Y
Rep. Almeida Y
Rep. Amore Y
Rep. Azzinaro Y
Rep. Barros Y
Rep. Bennett Y
Rep. Blazejewski Y
Rep. Canario Y
Rep. Carson Y
Rep. Casey Y
Rep. Casimiro Y
Rep. Chippendale N
Rep. Corvese NV
Rep. Costantino NV
Rep. Coughlin Y
Rep. Craven Y
Rep. Cunha Y
Rep. Diaz Y
Rep. Donovan Y
Rep. Edwards Y
Rep. Fellela Y
Rep. Filippi N
Rep. Fogarty Y
Rep. Giarrusso N
Rep. Handy Y
Rep. Hearn Y
Rep. Hull Y
Rep. Jacquard Y
Rep. Johnston Y
Rep. Kazarian Y
Rep. Keable Y
Rep. Kennedy Y
Rep. Knight Y
Rep. Lancia N
Rep. Lima Y
Rep. Lombardi Y
Rep. Maldonado Y
Rep. Marshall Y
Rep. Marszalkowski Y
Rep. Mattiello Y
Rep. McEntee Y
Rep. McKiernan Y
Rep. McLaughlin N
Rep. McNamara Y
Rep. Mendonca N
Rep. Messier Y
Rep. Morgan N
Rep. Morin Y
Rep. Nardolillo Y
Rep. Newberry N
Rep. Nunes Y
Rep. O'Brien Y
Rep. O'Grady Y
Rep. Perez Y
Rep. Phillips Y
Rep. Price N
Rep. Quattrocchi N
Rep. Ranglin-Vassell Y
Rep. Regunberg Y
Rep. Roberts N
Rep. Ruggiero Y
Rep. Serpa Y
Rep. Shanley Y
Rep. Shekarchi Y
Rep. Slater Y
Rep. Solomon Y
Rep. Tanzi Y
Rep. Tobon Y
Rep. Ucci NV
Rep. Vella-Wilkinson Y
Rep. Walsh NV
Rep. Williams Y
Rep. Winfield Y

Floor vote for Passage In Concurrence

June 22, 2017 at 5:40pm
Yeas: 31 / Nays: 3 / Not voting: 3 / Recused: 0
Legislator Vote
Sen. Algiere Y
Sen. Archambault Y
Sen. Calkin Y
Sen. Ciccone Y
Sen. Conley Y
Sen. Cote Y
Sen. Coyne Y
Sen. Crowley Y
Sen. DaPonte Y
Sen. DiPalma Y
Sen. Doyle NV
Sen. Felag Y
Sen. Fogarty Y
Sen. Gallo Y
Sen. Gee N
Sen. Goldin Y
Sen. Goodwin Y
Sen. Jabour Y
Sen. Kettle N
Sen. Lombardi Y
Sen. Lombardo Y
Sen. Lynch Prata Y
Sen. McCaffrey NV
Sen. Metts Y
Sen. Miller Y
Sen. Morgan N
Sen. Nesselbush Y
Sen. Paolino Y
Sen. Pearson Y
Sen. Picard Y
Sen. Quezada Y
Sen. Raptakis NV
Sen. Ruggerio Y
Sen. Satchell Y
Sen. Seveney Y
Sen. Sheehan Y
Sen. Sosnowski Y