06 LC 36
0125
House
Bill 1438
By:
Representatives Reese of the
98th,
Coan of the
101st,
Smith of the
131st,
Williams of the
165th,
Drenner of the
86th,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Article 1 of Chapter 3 of Title 46 of the Official Code of Georgia
Annotated, relating to generation and distribution of electricity generally, so
as to promote the development of renewable energy in Georgia through the
implementation of a renewable energy portfolio standard for use of renewable
energy by certain electric utilities; to provide for legislative intent and
purpose; to provide for short title; to provide definitions; to provide for
standard goals; to provide for standard portfolio goals to be met through energy
produced in Georgia or renewable energy certificates; to provide for reports; to
provide for the adoption of rules for implementation; to establish the Renewable
Energy Board; to impose an implementation fee to recover the costs of
administering the portfolio standard goals; to provide for related matters; to
repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Article
1 of Chapter 3 of Title 46 of the Official Code of Georgia Annotated, relating
to generation and distribution of electricity generally, is amended by inserting
a new part to be designated Part 4 to read as follows:
"Part
4
46-3-60.
This
part shall be known and may be cited as the 'Georgia Renewable Portfolio
Standard Act.'
46-3-61.
(a)
The General Assembly finds that:
(1)
Renewable portfolio standards require electric utilities to provide a specified
portion of their power generation from renewable resources, such as biomass,
solar, and wind, and recoverable resources, such as landfill gases and solid
waste;
(2)
At least 16 states and the District of Columbia have mandated renewable
portfolio standards, and at least two other states have voluntary renewable
portfolio standards;
(3)
Georgia imports more than 98 percent of the fuels used to generate electricity
in the state, in the form of coal, natural gas, and nuclear fuel, and the price
of natural gas and coal has been rising at an alarming rate;
(4)
Implementing a requirement for using renewable and recoverable resources to
generate 4 percent of the electricity used by Georgians could save Georgia
consumers a considerable amount of money on an annual basis and could earn
Georgiás
farmers and foresters a significant amount each year for biomass used to
generate the renewable energy;
(5)
Increased use of renewable and recoverable resources to generate electricity and
increased energy efficiency could reduce harmful emissions, particularly from
existing coal fueled generation plants; and
(6)
Increased use of biomass for the generation of electric power can be an
excellent tool for economic development, particularly in rural areas, where
biomass is available.
(b)
It is the intent of the legislature to recognize the economic, environmental,
and fuel diversity benefits of renewable energy resources and to encourage the
establishment of a market for renewable energy in Georgia using the
statés
renewable energy resources and to encourage the further development of those
resources. The legislature finds that there may be more that the state can do
to encourage the development and implementation of renewable energy. These
efforts can reduce the amount of imported oil and natural gas used for the
generation of electricity. Accordingly, the legislature finds that it should
establish standards for certain electric utilities to guide them in
incorporating renewable resources into their resource portfolios to reduce the
use of imported oil.
(c)
The purpose of this part is to lessen this
statés
dependence on imported oil and natural gas by encouraging the greater use of
renewable energy by establishing goals for electric utility companies in
implementing renewable and recoverable portfolio standards.
46-3-62.
As
used in this part, the term:
(1)
'Commission' means the Georgia Public Service Commission.
(2)
'Electric service provider' means any electric utility company engaged in the
business of distributing electricity to retail electric customers in this state.
Electric service provider for purposes of this part shall not include electric
membership corporations or municipal electric utilities.
(3)
'Renewable energy' means any resource that is naturally regenerated over a short
time scale and derived directly from the sun, such as thermal, photochemical,
and photoelectric; indirectly from the sun, such as wind, hydropower, and
photosynthetic energy stored in biomass; from organic waste materials; or from
other natural movements and mechanisms of the environment, such as geothermal
and tidal energy. Renewable energy does not include energy resources derived
from fossil fuels, waste products from fossil sources, or waste products from
inorganic sources.
(4)
'Renewable energy certificate' means a certificate that can be used by electric
service providers to establish compliance with the renewable portfolio standard
and may include certificates that are monitored, accounted for, or transferred
by or through a regional system or trading program for any region in which an
electric service provider is located.
46-3-63.
(a)
It is the goal of this state to increase the use of renewable energy resources
by requiring that a minimum percentage of electricity sold by electric service
providers for retail consumption in this state be generated in this state from
renewable energy resources or be derived from the renewable energy certificate
equivalent of such energy. Beginning on January 1, 2007, a minimum of one-half
of 1 percent of the kilowatt hours of electricity sold annually for retail
consumption in this state by each electric service provider shall be from a
renewable energy resource in Georgia or be derived from the renewable energy
certificate equivalent of such energy. The minimum percentage shall increase by
one-half of 1 percent until January 1, 2014, on an annual basis so that on and
after such date a minimum of 4 percent of the kilowatt hours of electricity sold
annually to retail electric customers for consumption in this state shall be
generated from renewable energy resources in Georgia or shall be derived from
the renewable energy certificate equivalent of such energy.
(b)
When an electric service provider has reached the standard goal of 4 percent of
kilowatt hours of electricity sold annually for retail consumption, the electric
service provider shall maintain a renewable energy portfolio of at least 4
percent of its annual net electricity sales.
(c)
The commission shall fine each electric service provider that fails to reach a
portfolio standard goal set out in subsection (a) of this Code section. If the
discrepancy between the portfolio standard goal and the achievement of the
electric service provider is 100 megawatts or more, the fine shall be 0.25
percent of the electric service
provideŕs
annual net electricity sales.
(d)
For electric service providers subject to rate determination by the commission,
the cost of purchases of energy and energy credits to meet the renewable energy
portfolio standard goals or to meet such goals early shall be included in the
rate base as expenses of the electric service provider in such rate
determination. Penalties imposed by the commission for failure to achieve the
standard goals for renewable energy portfolios in accordance with this part
shall not be included in the rate base as expenses of the electric service
provider in rate determination for electric service providers subject to rate
determination by the commission.
(e)
The commission shall adopt rules and regulations implementing the provisions of
this Code section.
46-3-64.
(a)
The commission shall promulgate rules and regulations regulating a system of
renewable energy certificates issued by private third parties that can be used
by an electric service provider to establish compliance with the renewable
portfolio standard.
(b)
The kilowatt-hour value of a renewable energy certificate may be varied by
renewable energy resource technology, provided that each renewable energy
certificate shall have a minimum value of one kilowatt-hour of renewable energy
represented by the certificate for purpose of compliance with the renewable
energy portfolio standard.
(c)
The electric service provider shall be responsible for demonstrating that a
renewable energy certificate used for compliance with the renewable portfolio
standard is derived from eligible renewable energy resources and has not been
retired, traded, sold, or otherwise transferred to another party.
46-3-65.
(a)
There is established the Renewable Energy Board for the purpose of increasing
the supply of renewable energy and renewable energy certificates available for
compliance in future years by obligated entities with renewable energy standard
requirements.
(b)
The board shall consist of five members as follows:
(1)
The chairperson of the Public Service Commission or the
chairpersońs
designee, who shall be the chairperson of the board;
(2)
The director of the Georgia Environmental Facilities Authority or the
directoŕs
designee;
(3)
The director of the
Governoŕs
Office of Consumer Affairs or the
directoŕs
designee; and
(4)
Two members of the public at large appointed by Governor, of whom one shall be a
representative of an organization that advocates for renewable energy
development. Both such members shall serve terms of three years; provided,
however, that no public member may serve more than two consecutive three year
terms.
(c)
Each member shall hold office for the term appointed and until the
membeŕs
successor shall have been duly appointed and qualified, or until the
membeŕs
earlier death, conviction of a felony, resignation, or removal.
(d)
Not later than 90 days from its appointment, the board must make and submit to
Public Service Commission for approval such bylaws, rules, regulations, and
resolutions as are necessary to carry out its responsibilities.
(e)
The board shall meet not less than quarterly and shall meet at other times upon
the call of the chairperson, issued to the board members in writing not less
than 48 hours prior to the day and hour of the meeting, or upon a request for a
meeting presented in writing to the chairperson not less than 72 hours prior to
the proposed day and hour of the meeting and signed by at least a majority of
the board members, whereupon the chairperson shall provide notice issued in
writing to the board members not less than 48 hours prior to the meeting and
shall convene the meeting at the time and place stated in the
request.
(f)
Three board members shall constitute a quorum to transact business at any
meeting, and the affirmative vote of three board members shall be necessary for
any action taken by the board.
(g)
Members of the board shall receive no compensation for the performance of their
duties but may be reimbursed for necessary and actual expenses incurred in
carrying out their duties.
(h)
The board shall recommend to the Public Service Commission:
(1)
Ways to stimulate investment in renewable energy development;
(2)
Standards to be applied to renewable energy certificates used by an electric
service provider to establish compliance with the renewable portfolio
standard;
(3)
Incentives to encourage the development of new renewable energy sources for this
state; and
(4)
Rules and regulations to be adopted concerning the renewable portfolio standard
and renewable energy certificates.
(i)
The board shall be attached to the Public Service Commission for administrative
purposes only.
46-3-66.
Beginning
on January 1, 2008, the commission shall track the amount of electricity from
renewable resources sold in this state in order to measure progress toward the
renewable energy goal established in this part. On or before January 1 of each
following year, the commission shall report to the standing committees of the
General Assembly having jurisdiction over utilities on the percentage of
electricity sold in this state that comes from renewable energy
resources.
46-3-67.
(a)
Costs of administration of portfolio standard goals incurred by the commission
shall be recovered by an implementation fee. The implementation fee shall be
assessed monthly to each electric service provider. This monthly assessment
will be one-half of 1 percent of the revenue derived from the retail sale of
electricity and the sale of renewable energy certificates in this
state.
(b)
The funds collected from the implementation fee shall be deposited into the
general fund of the State of
Georgia."
SECTION
2.
All
laws and parts of laws in conflict with this Act are repealed.