Bill Summary – FastDemocracy

LEGISLATIVE GENERAL COUNSEL                                                H.B. 145
Approved for Filing: R. Strong 6
          6 01-12-21 6:17 PM 6
                  CLEAN AND RENEWABLE ENERGY REQUIREMENT
                                            AMENDMENTS
                                        2021 GENERAL SESSION
                                            STATE OF UTAH
                                Chief Sponsor: Raymond P. Ward
                                   Senate Sponsor: ____________
 7
 LONG TITLE
 General Description:
         This bill modifies provisions relating to clean energy requirements for a large-scale
 electric utility.
 Highlighted Provisions:
         This bill:
         < requires that, on or after a certain date, a certain percentage of a large-scale electric
 utility's annual retail sales come from qualifying clean electricity if use of qualifying
 clean electricity is cost effective;
         < amends provisions relating to the issuance, expiration, and use of renewable energy
 certificates;
         < amends and requires plans and reports concerning a large-scale electric utility's
 progress in acquiring qualifying electricity and qualifying clean electricity; and
         < makes technical and conforming changes.
 Money Appropriated in this Bill:
         None
 Other Special Clauses:
                                                                                                           H.B. 145
         None
 Utah Code Sections Affected:
 AMENDS:
     *HB0145*
       H.B. 145                                                                   01-12-21 6:17 PM
        54-17-601, as last amended by Laws of Utah 2010, Chapters 119, 125, and 268
        54-17-602, as enacted by Laws of Utah 2008, Chapter 374
        54-17-603, as last amended by Laws of Utah 2009, Chapter 140
        54-17-604, as enacted by Laws of Utah 2008, Chapter 374
        54-17-605, as enacted by Laws of Utah 2008, Chapter 374
 ENACTS:
        54-17-604.5, Utah Code Annotated 1953
35
 Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 54-17-601 is amended to read:
        54-17-601. Definitions.
        As used in this part:
        (1) "Adjusted retail electric sales" means the total kilowatt-hours of retail electric sales
 of an electrical corporation to customers in this state in a calendar year, reduced by:
        (a) the amount of those kilowatt-hours attributable to electricity generated or purchased
 in that calendar year from qualifying zero carbon emissions generation and qualifying carbon
 sequestration generation;
        (b) the amount of those kilowatt-hours attributable to electricity generated or purchased
 in that calendar year from generation located within the geographic boundary of the Western
 Electricity Coordinating Council that derives [its] energy from one or more of the following but
 that does not satisfy the definition of a renewable energy source or that otherwise has not been
 used to satisfy Subsection 54-17-602(1):
        (i) wind energy;
        (ii) solar photovoltaic and solar thermal energy;
        (iii) wave, tidal, and ocean thermal energy;
        (iv) except for combustion of wood that has been treated with chemical preservatives
 such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass
 byproducts, including:
        (A) organic waste;
        (B) forest or rangeland woody debris from harvesting or thinning conducted to improve
 forest or rangeland ecological health and to reduce wildfire risk;
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       01-12-21 6:17 PM                                                                           H.B. 145
         (C) agricultural residues;
         (D) dedicated energy crops; and
         (E) landfill gas or biogas produced from organic matter, wastewater, anaerobic
 digesters, or municipal solid waste;
         (v) geothermal energy;
         (vi) hydroelectric energy; or
         (vii) waste gas and waste heat capture or recovery; and
         (c) the number of kilowatt-hours attributable to reductions in retail sales in that
 calendar year from demand side management as defined in Section 54-7-12.8, with the
 kilowatt-hours for an electrical corporation whose rates are regulated by the commission and
 adjusted by the commission to exclude kilowatt-hours for which a renewable energy certificate
 is issued under Subsection 54-17-603(4)(b).
         (2) "Amount of kilowatt-hours attributable to electricity generated or purchased in that
 calendar year from qualifying carbon sequestration generation[," for qualifying carbon
 sequestration generation,]" means the kilowatt-hours supplied by a facility during the calendar
 year multiplied by the ratio of the amount of carbon dioxide captured from the facility and
 sequestered to the sum of the amount of carbon dioxide captured from the facility and
 sequestered plus the amount of carbon dioxide emitted from the facility during the same
 calendar year.
         (3) "Banked renewable energy certificate" means a bundled or unbundled renewable
 energy certificate that is:
         (a) not used in a calendar year to comply with this part or with a renewable energy
 program in another state; and
         (b) carried forward into a subsequent year.
         (4) "Bundled renewable energy certificate" means a renewable energy certificate for
 qualifying electricity that is acquired:
         (a) by an electrical corporation by a trade, purchase, or other transfer of electricity that
 includes the renewable energy attributes of, or certificate that is issued for, the electricity; or
         (b) by an electrical corporation by generating the electricity for which the renewable
 energy certificate is issued.
         (5) "Clean energy source" means:
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        H.B. 145                                                                    01-12-21 6:17 PM
        (a) an electric generation facility or generation capability or upgrade that derives
 energy from one or more of the following:
        (i) wind energy;
        (ii) solar photovoltaic and solar thermal energy;
        (iii) wave, tidal, and ocean thermal energy;
        (iv) geothermal energy;
        (v) hydroelectric energy;
        (vi) nuclear energy;
        (vii) landfill gas or biogas produced from organic matter, wastewater, anaerobic
 digesters, or municipal solid waste;
        (viii) waste gas and waste heat capture or recover, whether or not it is renewable,
 including methane gas from:
        (A) an abandoned coal mine; or
        (B) a coal degassing operation associated with a state-approved mine permit; or
        (ix) municipal solid waste;
        (b) hydrogen gas derived from any source of energy described in Subsection (5)(a);
        (c) if an electric generation facility employs multiple energy sources, that portion of the
 electricity generated that is attributable to energy sources described in Subsection (5)(a) or (b);
 and
        (d) electricity generated or purchased from qualifying carbon sequestration generation.
        [(5)] (6) "Electrical corporation":
        (a) [is as] means the same as that term is defined in Section 54-2-1; and
        (b) does not include a person generating electricity that is not for sale to the public.
        [(6)] (7) "Qualifying carbon sequestration generation" means a fossil-fueled generating
 facility located within the geographic boundary of the Western Electricity Coordinating
 Council that:
        (a) becomes operational or is retrofitted on or after January 1, 2008; and
        (b) reduces carbon dioxide emissions into the atmosphere through permanent
 geological sequestration or through another verifiably permanent reduction in carbon dioxide
 emissions through the use of technology.
        (8) "Qualifying clean electricity" means electricity generated from a clean energy
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        01-12-21 6:17 PM                                                                          H.B. 145
 source if:
         (a) (i) the clean energy source is located within the geographic boundary of the
 Western Electricity Coordinating Council; or
         (ii) the electricity is delivered to:
         (A) the transmission system of an electrical corporation; or
         (B) a delivery point designated by the electrical corporation for the purpose of
 subsequent delivery to the electrical corporation; and
         (b) the clean energy attributes of the electricity are not traded, sold, transferred, or
 otherwise used to satisfy another state's renewable, zero carbon energy, or clean energy
 program.
         [(7)] (9) "Qualifying electricity" means electricity generated on or after January 1,
 1995, from a renewable energy source if:
         (a) (i) the renewable energy source is located within the geographic boundary of the
 Western Electricity Coordinating Council; or
         (ii) the qualifying electricity is delivered to the transmission system of an electrical
 corporation or a delivery point designated by the electrical corporation for the purpose of
 subsequent delivery to the electrical corporation; and
         (b) the renewable energy attributes of the electricity are not traded, sold, transferred, or
 otherwise used to satisfy another state's renewable energy program.
         [(8)] (10) "Qualifying zero carbon emissions generation":
         (a) means a generation facility located within the geographic boundary of the Western
 Electricity Coordinating Council that:
         (i) becomes operational on or after January 1, 2008; and
         (ii) does not produce carbon as a byproduct of the generation process;
         (b) includes generation powered by nuclear fuel; and
         (c) does not include renewable energy sources used to satisfy the requirement
 established under Subsection 54-17-602(1).
         [(9)] (11) "Renewable energy certificate" means a certificate issued under Section
 54-17-603.
         [(10)] (12) "Renewable energy source" means:
         (a) an electric generation facility or generation capability or upgrade that becomes
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        H.B. 145                                                                    01-12-21 6:17 PM
 operational on or after January 1, 1995, that derives [its] energy from one or more of the
 following:
        (i) wind energy;
        (ii) solar photovoltaic and solar thermal energy;
        (iii) wave, tidal, and ocean thermal energy;
        (iv) except for combustion of wood that has been treated with chemical preservatives
 such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass
 byproducts, including:
        (A) organic waste;
        (B) forest or rangeland woody debris from harvesting or thinning conducted to improve
 forest or rangeland ecological health and to reduce wildfire risk;
        (C) agricultural residues;
        (D) dedicated energy crops; and
        (E) landfill gas or biogas produced from organic matter, wastewater, anaerobic
 digesters, or municipal solid waste;
        (v) geothermal energy located outside the state;
        (vi) waste gas and waste heat capture or recovery whether or not it is renewable,
 including methane gas from:
        (A) an abandoned coal mine; or
        (B) a coal degassing operation associated with a state-approved mine permit;
        (vii) efficiency upgrades to a hydroelectric facility, without regard to the date upon
 which the facility became operational, if the upgrades become operational on or after January
 1, 1995;
        (viii) compressed air, if:
        (A) the compressed air is taken from compressed air energy storage; and
        (B) the energy used to compress the air is a renewable energy source; or
        (ix) municipal solid waste;
        (b) any of the following:
        (i) up to 50 average megawatts of electricity per year per electrical corporation from a
 certified low-impact hydroelectric facility, without regard to the date upon which the facility
 becomes operational, if the facility is certified as a low-impact hydroelectric facility on or after
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        01-12-21 6:17 PM                                                                         H.B. 145
 January 1, 1995, by a national certification organization;
         (ii) geothermal energy if located within the state, without regard to the date upon which
 the facility becomes operational; or
         (iii) hydroelectric energy if located within the state, without regard to the date upon
 which the facility becomes operational;
         (c) hydrogen gas derived from any source of energy described in Subsection [(10)]
 (12)(a) or (b);
         (d) if an electric generation facility employs multiple energy sources, that portion of the
 electricity generated that is attributable to energy sources described in Subsections [(10)]
 (12)(a) through (c); and
         (e) any of the following located in the state and owned by a user of energy:
         (i) a demand side management measure, as defined by Subsection 54-7-12.8(1), with
 the quantity of renewable energy certificates to which the user is entitled determined by the
 equivalent energy saved by the measure;
         (ii) a solar thermal system that reduces the consumption of fossil fuels, with the
 quantity of renewable energy certificates to which the user is entitled determined by the
 equivalent kilowatt-hours saved, except to the extent the commission determines otherwise
 with respect to net-metered energy;
         (iii) a solar photovoltaic system that reduces the consumption of fossil fuels with the
 quantity of renewable energy certificates to which the user is entitled determined by the total
 production of the system, except to the extent the commission determines otherwise with
 respect to net-metered energy;
         (iv) a hydroelectric or geothermal facility with the quantity of renewable energy
 certificates to which the user is entitled determined by the total production of the facility,
 except to the extent the commission determines otherwise with respect to net-metered energy;
         (v) a waste gas or waste heat capture or recovery system, other than from a combined
 cycle combustion turbine that does not use waste gas or waste heat, with the quantity of
 renewable energy certificates to which the user is entitled determined by the total production of
 the system, except to the extent the commission determines otherwise with respect to
 net-metered energy; and
         (vi) the station use of solar thermal energy, solar photovoltaic energy, hydroelectric
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        H.B. 145                                                                      01-12-21 6:17 PM
 energy, geothermal energy, waste gas, or waste heat capture and recovery.
         [(11)] (13) "Unbundled renewable energy certificate" means a renewable energy
 certificate associated with:
         (a) qualifying electricity that is acquired by an electrical corporation or other person by
 trade, purchase, or other transfer without acquiring the electricity for which the certificate was
 issued; or
         (b) activities listed in Subsection [(10)] (12)(e).
         Section 2. Section 54-17-602 is amended to read:
         54-17-602. Target amount of qualifying electricity -- Renewable energy certificate
 -- Cost-effectiveness -- Cooperatives.
         (1) (a) To the extent that it is cost effective [to do so] and unless Subsection (3)
 applies, beginning in 2025 the annual retail electric sales in this state of each electrical
 corporation shall consist of qualifying electricity or renewable energy certificates in an amount
 equal to at least 20% of adjusted retail electric sales.
         (b) [The amount under Subsection (1)(a) is computed based upon] An electrical
 corporation shall compute adjusted retail electric sales for the calendar year commencing 36
 months before the first day of the year for which the target calculated under Subsection (1)(a)
 applies.
         (c) Notwithstanding Subsections (1)(a) and (b), an increase in the annual target from
 one year to the next may not exceed the greater of:
         (i) 17,500 megawatt-hours; or
         (ii) 20% of the prior year's amount under Subsections (1)(a) and (b).
         (2) (a) Cost-effectiveness under Subsection (1) for an electrical corporation other than
 a cooperative association is determined in comparison to other viable resource options using
 the criteria provided by Subsection 54-17-201(2)(c)(ii).
         (b) For an electrical corporation that is a cooperative association, cost-effectiveness is
 determined using criteria applicable to the cooperative association's acquisition of a significant
 energy resource established by the cooperative association's board of directors.
         (3) (a) To the extent that it is cost effective, beginning July 1, 2030, at least 50% of the
 total kilowatt-hours of a large-scale electric utility's annual retail electric sales to custo