Sec. 16-245n. Renewable Energy Investment Fund created; charge assessed against electric customers to fund Investment Fund; purpose.
Sec. 16-245n. Renewable Energy Investment Fund created; charge assessed
against electric customers to fund Investment Fund; purpose. (a) For purposes of this
section, "renewable energy" means solar photovoltaic energy, solar thermal, geothermal
energy, wind, ocean thermal energy, wave or tidal energy, fuel cells, landfill gas, hydropower that meets the low-impact standards of the Low-Impact Hydropower Institute,
hydrogen production and hydrogen conversion technologies, low emission advanced
biomass conversion technologies, alternative fuels, used for electricity generation including ethanol, biodiesel or other fuel produced in Connecticut and derived from agricultural produce, food waste or waste vegetable oil, provided the Commissioner of
Environmental Protection determines that such fuels provide net reductions in greenhouse gas emissions and fossil fuel consumption, usable electricity from combined heat
and power systems with waste heat recovery systems, thermal storage systems and other
energy resources and emerging technologies which have significant potential for commercialization and which do not involve the combustion of coal, petroleum or petroleum
products, municipal solid waste or nuclear fission.
(b) On and after July 1, 2004, the Department of Public Utility Control shall assess
or cause to be assessed a charge of not less than one mill per kilowatt hour charged to
each end use customer of electric services in this state which shall be deposited into the
Renewable Energy Investment Fund established under subsection (c) of this section.
Notwithstanding the provisions of this section, receipts from such charges shall be disbursed to the resources of the General Fund during the period from July 1, 2003, to June
30, 2005, unless the department shall, on or before October 30, 2003, issue a financing
order for each affected distribution company in accordance with sections 16-245e to
16-245k, inclusive, to sustain funding of renewable energy investment programs by
substituting an equivalent amount, as determined by the department in such financing
order, of proceeds of rate reduction bonds for disbursement to the resources of the General Fund during the period from July 1, 2003, to June 30, 2005. The department may
authorize in such financing order the issuance of rate reduction bonds that substitute for
disbursement to the General Fund for receipts of both charges under this subsection and
subsection (a) of section 16-245m and also may in its discretion authorize the issuance
of rate reduction bonds under this subsection and subsection (a) of section 16-245m that
relate to more than one electric distribution company. The department shall, in such
financing order or other appropriate order, offset any increase in the competitive transition assessment necessary to pay principal, premium, if any, interest and expenses of
the issuance of such rate reduction bonds by making an equivalent reduction to the
charges imposed under this subsection, provided any failure to offset all or any portion
of such increase in the competitive transition assessment shall not affect the need to
implement the full amount of such increase as required by this subsection and sections
16-245e to 16-245k, inclusive. Such financing order shall also provide if the rate reduction bonds are not issued, any unrecovered funds expended and committed by the electric
distribution companies for renewable resource investment through deposits into the
Renewable Energy Investment Fund, provided such expenditures were approved by the
department following August 20, 2003, and prior to the date of determination that the
rate reduction bonds cannot be issued, shall be recovered by the companies from their
respective competitive transition assessment or systems benefits charge except that such
expenditures shall not exceed one million dollars per month. All receipts from the remaining charges imposed under this subsection, after reduction of such charges to offset
the increase in the competitive transition assessment as provided in this subsection, shall
be disbursed to the Renewable Energy Investment Fund commencing as of July 1, 2003.
Any increase in the competitive transition assessment or decrease in the renewable
energy investment component of an electric distribution company's rates resulting from
the issuance of or obligations under rate reduction bonds shall be included as rate adjustments on customer bills.
(c) There is hereby created a Renewable Energy Investment Fund which shall be
within Connecticut Innovations, Incorporated for administrative purposes only. The
fund may receive any amount required by law to be deposited into the fund and may
receive any federal funds as may become available to the state for renewable energy
investments. Upon authorization of the Renewable Energy Investments Board established pursuant to subsection (d) of this section, Connecticut Innovations, Incorporated,
may use any amount in said fund for expenditures that promote investment in renewable
energy sources in accordance with a comprehensive plan developed by it to foster the
growth, development and commercialization of renewable energy sources, related enterprises and stimulate demand for renewable energy and deployment of renewable energy
sources that serve end use customers in this state and for the further purpose of supporting
operational demonstration projects for advanced technologies that reduce energy use
from traditional sources. Such expenditures may include, but not be limited to, reimbursement for services provided by the administrator of the fund including a management fee, disbursements from the fund to develop and carry out the plan developed
pursuant to subsection (d) of this section, grants, direct or equity investments, contracts
or other actions which support research, development, manufacture, commercialization,
deployment and installation of renewable energy technologies, and actions which expand the expertise of individuals, businesses and lending institutions with regard to
renewable energy technologies.
(d) There is hereby created a Renewable Energy Investments Board to act on matters
related to the Renewable Energy Investment Fund, including, but not limited to, development of a comprehensive plan and expenditure of funds. The Renewable Energy Investments Board shall, in such plan, give preference to projects that maximize the reduction
of federally mandated congestion charges. The Renewable Energy Investments Board
shall make a draft of the comprehensive plan available for public comment for not less
than thirty days. The board shall conduct three public hearings in three different regions
of the state on the draft comprehensive plan and shall include a summarization of all
public comments received at said public hearings in the final comprehensive plan approved by the board. The board shall provide a copy of the comprehensive plan, in
accordance with the provisions of section 11-4a, to the joint standing committees of the
General Assembly having cognizance of matters relating to energy and commerce. The
Department of Public Utility Control shall, in an uncontested proceeding, during which
the department may hold a public hearing, approve, modify or reject the comprehensive
plan prepared pursuant to this subsection.
(e) The Renewable Energy Investments Board shall include not more than fifteen
individuals with knowledge and experience in matters related to the purpose and activities of the Renewable Energy Investment Fund. The board shall consist of the following
members: (1) One person with expertise regarding renewable energy resources appointed by the speaker of the House of Representatives; (2) one person representing a
state or regional organization primarily concerned with environmental protection appointed by the president pro tempore of the Senate; (3) one person with experience in
business or commercial investments appointed by the majority leader of the House of
Representatives; (4) one person representing a state or regional organization primarily
concerned with environmental protection appointed by the majority leader of the Senate;
(5) one person with experience in business or commercial investments appointed by the
minority leader of the House of Representatives; (6) the Commissioner of Emergency
Management and Homeland Security or the commissioner's designee; (7) one person
with expertise regarding renewable energy resources appointed by the Governor; (8)
two persons with experience in business or commercial investments appointed by the
board of directors of Connecticut Innovations, Incorporated; (9) a representative of a
state-wide business association, manufacturing association or chamber of commerce
appointed by the minority leader of the Senate; (10) the Consumer Counsel; (11) the
Secretary of the Office of Policy and Management or the secretary's designee; (12)
the Commissioner of Environmental Protection or the commissioner's designee; (13)
a representative of organized labor appointed by the Governor; and (14) a representative
of residential customers or low-income customers appointed by Governor. On a biennial
basis, the board shall elect a chairperson and vice-chairperson from among its members
and shall adopt such bylaws and procedures it deems necessary to carry out its functions.
The board may establish committees and subcommittees as necessary to conduct its
business.
(f) The board shall issue annually a report to the Department of Public Utility Control reviewing the activities of the Renewable Energy Investment Fund in detail and
shall provide a copy of such report, in accordance with the provisions of section 11-4a,
to the joint standing committees of the General Assembly having cognizance of matters
relating to energy and commerce and the Office of Consumer Counsel. The report shall
include a description of the programs and activities undertaken during the reporting
period jointly or in collaboration with the Energy Conservation and Load Management
Funds established pursuant to section 16-245m.
(g) There shall be a joint committee of the Energy Conservation Management Board
and the Renewable Energy Investments Board, as provided in subdivision (2) of subsection (d) of section 16-245m.
(h) No later than December 31, 2006, and no later than December thirty-first every
five years thereafter, the board shall, after consulting with the Energy Conservation
Management Board, conduct an evaluation of the performance of the programs and
activities of the fund and submit a report, in accordance with the provisions of section
11-4a, of the evaluation to the joint standing committees of the General Assembly having
cognizance of matters relating to energy and commerce.
(P.A. 98-28, S. 44, 117; P.A. 03-135, S. 10, 11; June 30 Sp. Sess. P.A. 03-6, S. 50; June Sp. Sess. P.A. 05-1, S. 6; P.A.
07-152, S. 1; 07-242, S. 15, 120.)
History: P.A. 98-28 effective July 1, 1998; P.A. 03-135 added "hydrogen production and hydrogen conversion technologies" in Subsec. (a) and added "the Department of Public Utility Control and the Office of Consumer Counsel" in Subsec.
(d), effective July 1, 2003; June 30 Sp. Sess. P.A. 03-6 amended Subsec. (b) to provide for a plan to avoid disbursements
from the Renewable Energy Investment Fund to the General Fund in the implementation of the budget for the biennium
ending June 30, 2005, effective August 20, 2003; June Sp. Sess. P.A. 05-1 amended Subsec. (a) to add provision re certain
usable energy and thermal storage systems, amended Subsec. (b) to make technical changes and to change assessment on
and after July 1, 2004, from one mill to not less than one mill, amended Subsec. (d) to require preference for projects that
maximize reduction of federally mandated congestion charges, to require consistency with the comprehensive energy plan,
to require report to describe collaboration with the Energy Conservation and Load Management Funds, and to make
technical changes, and added Subsec. (e) establishing a joint committee of the Energy Conservation Management Board
and the Renewable Energy Investments Advisory Committee and Subsec. (f) re evaluation of the programs, effective July
21, 2005; P.A. 07-152 amended Subsec. (c) to put fund within Connecticut Innovations, Incorporated, for administrative
purposes only and to make reimbursement for services provided by administrator a permissible expenditure, amended
Subsec. (d) to change advisory committee to board, to move board appointees to new Subsec. (e) and to list requirements
for the comprehensive plan, added Subsecs. (e) and (f) re appointments and reporting, redesignated existing Subsecs. (e)
and (f) as Subsecs. (g) and (h) and made conforming changes therein; P.A. 07-242 added photovoltaic energy, solar
thermal, geothermal energy, hydropower that meets low-impact standards of Low-Impact Hydropower Institute, and certain
alternative fuels in Subsec. (a), amended Subsec. (c) to add certain operational demonstration projects to list of permissible
fund expenditures, and deleted provision re comprehensive energy plan approved pursuant to Sec. 16a-7a in Subsec. (d),
effective June 4, 2007.
See Sec. 4-38f for definition of "administrative purposes only".