Second Regular Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 12-0948.01 Jennifer Berman x3286SENATE BILL 12-178 SENATE SPONSORSHIP Giron, HOUSE SPONSORSHIP Swerdfeger, Senate Committees House Committees Judiciary A BILL FOR AN ACT Concerning the removal of enhanced credits for purchase of in-state eligible energy resources from the renewable energy standard. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) The bill removes from the renewable energy standard in-state preferences with respect to: Wholesale distributed generation; The one and one-quarter kilowatt-hour multiplier for each kilowatt-hour of electricity generated from eligible energy resources other than retail distributed generation; The one and one-half kilowatt-hour multiplier for community-based projects; and Policies to provide incentives to qualifying retail utilities to invest in eligible energy resources. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 40-2-124, amend (1) introductory portion, (1) (a) (VI), (1) (c) (III), (1) (c) (VI) introductory portion, and (1) (f) introductory portion as follows: 40-2-124. Renewable energy standard - definitions - net metering - legislative declaration. (1) Each provider of retail electric service in the state of Colorado, other than municipally owned utilities that serve forty thousand customers or fewer, shall be considered is a qualifying retail utility. Each qualifying retail utility, with the exception of cooperative electric associations that have voted to exempt themselves from commission jurisdiction pursuant to section 40-9.5-104 and municipally owned utilities, shall be is subject to the rules established under this article by the commission. No additional regulatory authority of is provided to the commission, other than that specifically contained in this section. is provided or implied. In accordance with article 4 of title 24, C.R.S., the commission shall revise or clarify existing rules to establish the following: (a) Definitions of eligible energy resources that can be used to meet the standards. "Eligible energy resources" means recycled energy and renewable energy resources. The commission shall determine, following an evidentiary hearing, the extent to which such electric generation technologies utilized in an optional pricing program may be used to comply with this standard. A fuel cell using hydrogen derived from an eligible energy resource is also an eligible electric generation technology. Fossil and nuclear fuels and their derivatives are not eligible energy resources. For purposes of this section: (VI) "Wholesale distributed generation" means a renewable energy resource in Colorado with a nameplate rating of thirty megawatts or less and that does not qualify as retail distributed generation. (c) Electric resource standards: (III) Each kilowatt-hour of electricity generated from eligible energy resources, in Colorado, other than retail distributed generation shall be counted and eligible energy resources beginning operation on or after January 1, 2015, counts as one and one-quarter kilowatt-hours for the purposes of compliance with this standard. (VI) Each kilowatt-hour of electricity generated from eligible energy resources at a community-based project shall be counted as one and one-half kilowatt-hours. For purposes of this subparagraph (VI), "community-based project" means a project: located in Colorado: (f) Policies for the recovery of costs incurred with respect to these standards for qualifying retail utilities that are subject to rate regulation by the commission. These policies shall must provide incentives to qualifying retail utilities to invest in eligible energy resources. in the state of Colorado. Such The policies shall must include: SECTION 2. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.