O’Dea Applauds Renewable Energy Reform

HARTFORD – State Rep. Thomas O’Dea (R-125) voted for a major reform package that will help the state continue to meet its world-leading renewable energy goals while also taking innovative steps to reduce the cost of electricity across the board.  

The bill, 1138 takes several steps to protect ratepayers while still keeping our state’s commitment to heavily investing in renewable energy. The bill passed with overwhelming bi-partisan support in an effort to jumpstart our renewable energy programs in Connecticut.
“Right now, Connecticut has some of the highest electricity costs in the country. We need to diversify our state portfolio to bring those costs down for our state economy, our households and businesses. At the same time, we must make real sustainable growth on renewable energy. I believe this bill strikes the appropriate balance to achieve both,” said O’Dea, a member of the legislature’s Environment committee.

The bill authorizes additional clean energy sources to be included in the Class I renewable category such as electricity derived from geothermal, landfill methane gas or anaerobic digestion and by tightening the standards for biomass plants.  The current definition already includes solar, wind, fuel cell, ocean & wave power and local hydropower within the state provided they meet strict environmental standards.

O’Dea said, “By permitting our state to invest in different clean renewables, Connecticut keeps its commitment to renewable energy and helps lead to more affordable energy as well. This bill provides for cleaner, cheaper energy, which is a win, win for the ratepayers and residents of Connecticut.”

Effective immediately, the bill permits the Commissioner of the Department of Energy & Environmental Protection (DEEP) to initiate a competitive bidding process for the construction of new “Class I” (ex: solar, wind) renewable energy generation facilities. Long-term power purchase contracts of up to 20 years would be signed with winning bidders to provide a stable source of revenue for their projects.

Existing state law calls for 20 percent of all the state’s electricity to come from Class I renewable sources by 2020.

Without displacing any of Connecticut’s existing renewable energy commitments, the legislation would also permit the DEEP to enter into 15-year power purchase agreements for either Class I renewable energy or large-scale hydroelectric energy from New England or the Northeastern provinces of Canada, totaling up to 5 percent of Connecticut’s total electric load.

This provision would reduce the state’s greenhouse gas emissions while also helping to displace the need to operate older, dirty fossil fuel generators at times of peak electric demand. These “peaking” generators dramatically increase overall electric rates on any day they operate.

Further provisions of the bill would:

• Gradually transition away from subsidies for biomass plants and landfill gas facilities that do not provide optimal economic or environmental benefits.
• Expand eligibility for low-impact, small-scale “run-of-the-river” hydroelectric facilities under the state’s Class I renewable energy classification, aligning Connecticut policy with our neighboring states.
• Add electricity derived from anaerobic digesters and biologically derived methane (from plant matter, food and animal waste) to qualify as a Class I resource.
• Expand support for combined heat and power (CHP) projects and third-party energy efficiency providers by discontinuing Class III renewable energy incentives for utility-sponsored efficiency programs that are already ratepayer funded.
• Refund alternative compliance payments (penalty payments that must be made if the state falls short of its RPS goals) to ratepayers to provide rate relief.