Home > Legislative Tracker > Renewable Energy Standards

Energy:
Renewable Energy Standards

Our Position: support
Bill Number: HB 1001
Sponsor: Rep. Tyler
Legislative Session: 2010

Existing law creates a renewable energy portfolio standard (RPS) under which certain electric utilities are required to generate an increasing percentage of their electricity from renewable sources, in a series of increments from 3% in 2007 to 20% in 2020 and thereafter. The bill boosts these RPS percentages to achieve 30% renewable generation by 2020 and requires a portion of the RPS to be met through a subset of renewable generation, "distributed generation" (DG), which does not require additional transmission facilities to connect to the grid.

Section 1 of the bill directs the Colorado public utilities commission (PUC) to consider employment and economic factors when evaluating proposed new electric generation resource acquisitions by utilities, including the use of "best value" employment metrics such as the availability of training programs and the wages, health benefits, and pensions that workers will earn.

Section 2 defines terms, increases the RPS percentages, and, within each RPS percentage, replaces an existing carve-out for solar generation with a larger carve-out for DG (which includes customer-sited solar generation). Section 2 also directs the PUC to monitor compliance with the DG carve-out by issuing a new series of renewable energy credits (RECs) and by redesignating RECs already earned, when appropriate. Finally, section 2 limits the existing 1.25 multiplier for in-state renewable electric generation to utility-scale projects only.

Section 3 gives the PUC discretion to incrementally reduce the existing standard rebate offer (which utilities must pay as an incentive for new customer-sited renewable generation facilities such as rooftop solar panels) from $2 to some lesser amount if the PUC finds that the market no longer requires this level of subsidy. In addition, section 3 requires that the rebate offer for DG systems decline based on market conditions, as determined by the PUC, but allows the PUC to adopt performance-based incentives for DG systems.

Section 4 allows a utility to develop and own, as part of its rate base, up to 50% of the DG capacity it acquires from power purchase agreements and new construction if the cost is reasonably comparable to current market cost. Section 4 also requires the PUC to allow a utility cost recovery for the construction of new DG on a par with the cost recovery allowed for new coal-fired facilities. For large DG facilities of one megawatt or more, section 4 directs the PUC to require registration with a regional system for tracking renewable energy generation. Effective January 1, 2012, sections 4 and 7 require new DG installations funded wholly or partly through ratepayer incentives and rebates to be installed by licensed electricians or apprentices, where appropriate, and supervised by persons who are certified by the North American board of certified energy practitioners (NABCEP) or another nationally recognized organization designated by the PUC. Finally, section 4 specifies that DG program expenditures be allocated 10% to wholesale and 90% to retail, with residential and nonresidential retail receiving a proportionate share based on the utility's customer profile. The utility may retain its costs of administering DG programs, not to exceed 5% annually.

Section 5 expressly authorizes any committee formed by executive order for the purpose of studying the desirability of regulating solar installers to submit a request for sunrise review by the department of regulatory agencies under the state's sunrise and sunset law.

Sections 5 and 6 require that for projects funded by federal or state grants or by clean energy loans made through the state's clean energy finance program, the licensing and NABCEP requirements apply beginning July 1, 2011.

Section 8 defines special terms used in sections 4 to 7.

Status

Action Needed

More information