2017 -- S 0112 SUBSTITUTE A

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LC000837/SUB A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- RENEWABLE ENERGY GROWTH

PROGRAM

     

     Introduced By: Senators Conley, Sosnowski, Miller, Paiva Weed, and Kettle

     Date Introduced: February 01, 2017

     Referred To: Senate Environment & Agriculture

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 39-26.6-12 of the General Laws in Chapter 39-26.6 entitled "The

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Renewable Energy Growth Program" is hereby amended to read as follows:

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     39-26.6-12. Annual bidding and enrollments.

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     (a) With the exception of the first program year (2015), the electric-distribution company,

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in consultation with the board and office, shall conduct at least three (3) tariff enrollments for

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each distributed-generation class each program year. For the first program year, the board may

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recommend that either two (2) or three (3) enrollments be conducted.

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     (b) During each program year, the tariff enrollments shall have both an annual targeted

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amount of nameplate megawatts ("annual MW target") and a nameplate megawatt target for each

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separate enrollment event ("enrollment MW target"). The enrollment MW target shall comprise

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the specific portion of the annual MW target sought to be obtained in that enrollment. The

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enrollment MW targets shall be recommended by the board each year, subject to commission

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approval. The board shall also recommend a megawatt target for each class ("class MW target")

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that comprises a specified portion of the enrollment MW target, subject to commission approval.

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If the electric-distribution company, the office, and the board mutually agree, they may reallocate

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megawatts during an enrollment from one class to another without commission approval if there

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is an over-subscription in one class and an under-subscription in another, provided that the annual

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MW Target is not being exceeded, except as provided in § 39-26.6-7.

 

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     (c) The annual MW targets shall be established as follows; provided, however that at

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least three megawatts (3 MW) of nameplate capacity shall be carved out exclusively for small-

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scale solar projects in each of the first four (4) program years:

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     (1) For the first program year (2015), the annual MW target shall be twenty-five (25)

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nameplate megawatts;

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     (2) For the second program year, the annual targets shall be forty (40) nameplate

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megawatts;

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     (3) For the third and fourth program years, the annual target shall be forty (40) nameplate

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megawatts, subject to the conditions set forth in § 39-26.6-12(f) having been met for the

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applicable prior program year as determined in the manner specified in § 39-26.6-12(g); and

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     (4) For the fifth program year, the annual target shall be set to obtain the balance of

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capacity needed to achieve one hundred sixty (160) nameplate megawatts within the five-year (5)

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distributed-generation growth program, subject to § 39-26.6-12(e) and the conditions set forth in

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§ 39-26.6-12(f) having been met for the fourth program year as determined in the manner

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specified in § 39-26.6-12(g).; and

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     (5) From the year 2020 through the year 2029, the annual target for each program year

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shall be an additional forty (40) nameplate megawatts above the annual target for the preceding

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program year.

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     (d) During the fifth year of the distributed-generation growth program, the board may

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recommend to the commission an extension of time in the event that additional time is required to

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achieve the full one hundred sixty (160) nameplate megawatt target of the program. The

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commission shall approve the recommendation of the board; provided, however, that the

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commission may make any modifications to the board's recommendation that the commission

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deems appropriate, consistent with the legislative purposes of this chapter as set forth herein.

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     (e) To the extent there was a shortfall of capacity procured under chapter 26.2 of title 39

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from distributed generation procurements in 2014, such shortfall amount may be added to the one

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hundred sixty megawatt (160MW) target for acquisition in the fifth program year under this

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chapter. In no event shall the electric distribution company be required to exceed the aggregate

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amount of one hundred sixty (160) nameplate capacity plus any such shortfall amount over the

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five (5) years, but may do so voluntarily, in consultation with the board and subject to

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commission approval.

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     (f) The conditions specified in subsections (c)(3) and (c)(4) of this section are as follows:

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(1) That it is reasonable to conclude that the bid prices submitted in the procurements for the

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large-scale solar and commercial-scale solar classes were reasonably competitive in the

 

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immediately preceding program year; (2) That it is reasonable to conclude that the annual MW

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target specified for the next program year is reasonably achievable; and (3) That the electric-

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distribution company was able to, or with reasonably prudent efforts should have been able to,

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perform the studies and system upgrades on a timely basis necessary to accommodate the number

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of applications associated with the targets without materially adversely affecting other electric-

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distribution construction projects needed to provide reliable and safe electric-distribution service.

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To the extent the board or the commission concludes that any of these conditions have not been

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met for the applicable program year, the board may recommend, and/or the commission may

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adopt, a new annual MW target, based on the factors set forth in section 39-26.6-12(h).

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     (g) Before the third, fourth, and fifth program years, each year the board shall review the

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conditions specified in § 39-26.6-12(f) and make a recommendation to the commission for

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findings as to whether they have been met for the applicable year. The recommendation shall be

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filed with the commission, with copies to the office and the electric distribution company, and

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any person who has made a written request to the commission to be included in such notification,

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such list which may be obtained from the commission clerk, and a notice of such filing shall be

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posted by the commission on its website. If no party files an objection to the recommended

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findings within ten (10) business days of the posting, the commission may accept them without

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hearings. If an objection is filed with a reasonable explanation for its basis, the commission shall

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hold hearings and make the factual determination of whether the conditions have been met.

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     (h) In the event that the conditions in § 39-26.6-12(f) have not been met for any program

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year, then the board and the commission shall take into account the factors set forth below in

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setting the annual MW target for the following year. In addition, for every program year the board

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and the commission shall take into account these factors in setting the class MW targets, and the

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enrollment MW targets for the following year: (1) That the new annual, class, and enrollment

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levels reasonably assure that competition among projects for the applicable bidding

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classifications remains robust and likely to yield reasonable and competitive program costs; (2)

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That, assuming prudent management of the program, the electric-distribution company should be

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able to perform the studies and system upgrades on a timely basis necessary to accommodate the

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number of applications associated with the targets without materially adversely affecting other

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electric-distribution construction projects needed to provide reliable and safe electric-distribution

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service; and (3) Any other reasonable factors that are consistent with the legislative purpose of

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this chapter as set forth herein, including the program purpose to facilitate the development of

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renewable distributed generation in the load zone of the electric-distribution company at

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reasonable cost.

 

LC000837/SUB A - Page 3 of 5

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     (i) The renewable energy growth program is intended to achieve at least an aggregate

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amount of one hundred sixty (160) nameplate megawatts over five (5) years, plus any shortfall

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amount added in pursuant to § 39-26.6-12(e). However, after the second program year, the board

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may, based on market data and other information available to it, including pricing received during

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previous program years, recommend changes to the annual target for any program year above or

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below the specified targets in § 39-26.6-12(c) if the board concludes that market conditions are

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likely to produce favorably low or unfavorably high target pricing during the upcoming program

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year, provided that the recommendation may not result in the five-year (5) one hundred sixty

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megawatt (160MW) nameplate target, plus any shortfall added pursuant to § 39-26.6-12(e), being

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exceeded. Any megawatt reduction in an annual target shall be added to the target in the fifth year

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of the program (and any subsequent years if necessary) such that the overall program target of

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one hundred sixty megawatt (160MW) nameplate capacity, plus any shortfall added pursuant to §

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39-26.6-12(e), is achieved. In considering such issues, the board and the commission may take

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into account the reasonableness of current pricing and its impact on all electric distribution

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customers and the legislative purpose of this chapter as set forth herein, including the program

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purpose to facilitate the development of renewable distributed generation in the load zone of the

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electric-distribution company at reasonable cost.

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     (j) The provisions of § 39-26.1-4 shall apply to the annual value of performance-based

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incentives (actual payments plus the value of net-metering credits, as applicable) provided by the

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electric-distribution company to all the distributed-generation projects under this chapter, subject

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to the following conditions:

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     (1) The targets set for the applicable program year for the applicable project

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classifications were met or, if not met, such failure was due to factors beyond the reasonable

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control of the electric-distribution company;

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     (2) The electric-distribution company has processed applications for service and

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completed interconnections in a timely and prudent manner for the projects under this chapter,

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taking into account factors within the electric-distribution company's reasonable control. The

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commission is authorized to establish more specific performance standards to implement the

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provisions of this chapter; and

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     (3) The incentive shall be one and three-quarters percent (1.75%) of the annual value of

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performance-based incentives. The commission is authorized to establish more specific

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performance standards to implement the provisions of this paragraph.

 

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     SECTION 2. This act shall take effect upon passage.

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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

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     This act would expand the renewable energy growth program so that from 2020 through

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2029 there will be an annual target of forty (40) nameplate megawatts above the prior program

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year's annual target.

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     This act would take effect upon passage.

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