07 LC 36
0610
House
Bill 840
By:
Representatives Drenner of the
86th,
Gardner of the
57th,
Ashe of the
56th,
Kaiser of the
59th,
Randall of the
138th,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Title 46 of the Official Code of Georgia Annotated, relating to public
utilities, so as to provide for voluntary portfolio standard goals for renewable
energy; to provide for legislative intent and purpose; to provide for
definitions; to provide for reports, incentives, penalties, and rules and
regulations; to provide for a renewable energy credits trading program; to
provide for a registry of producers of renewable energy in this state; to
provide for credits for landfill gas or other renewable energy in the form of
gas supplied by a producer of renewable energy and sold to a customer or gas
distribution system; to provide for a reporting system to monitor compliance; to
encourage integrated resource plans to include sufficient renewable energy
resources to meet the portfolio standard goals for renewable energy; to amend
Code Section 50-23-4 of the Official Code of Georgia Annotated, relating to
definitions concerning the Georgia Environmental Facilities Authority, so as to
include in the definition of "project" renewable energy facilities such that the
Georgia Environmental Facilities Authority may issue bonds to finance such
projects; to provide for related matters; to repeal conflicting laws; and for
other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Title
46 of the Official Code of Georgia Annotated, relating to public utilities, is
amended in Article 1 of Chapter 3, relating to generation and distribution of
electricity, by adding a new part as follows:
"Part
4
46-3-70.
(a)
It is the intent of the legislature to recognize the economic, environmental,
and fuel diversity benefits of renewable energy resources, to encourage further
development of these resources, and to encourage the establishment of a market
for renewable energy in Georgia using the state´s renewable energy
resources. These efforts can reduce the consumption of fossil fuels for the
generation of electricity and reduce the state´s dependence on finite,
nonrenewable resources. Accordingly, the legislature finds that it should
establish goals for electric utilities to guide them in incorporating renewable
resources into their resource portfolios.
(b)
The purpose of this part is to lessen Georgia´s dependence on fossil fuels
and the exposure of Georgia´s consumers to volatile and rising prices for
coal and natural gas by encouraging the greater use of renewable energy by
establishing goals for electric utility companies in implementing portfolio
standards for renewable energy.
46-3-71.
As
used in this part, the term:
(1)
'Biomass material' means organic matter, excluding fossil fuels and black
liquor, including agricultural crops, plants, trees, wood, wood wastes and
residues, sawmill waste, sawdust, wood chips, bark chips, and forest thinning,
harvesting, or clearing residues; wood waste from pallets or other wood
demolition debris; peanut shells; cotton plants; corn stalks; and plant matter,
including aquatic plants, grasses, stalks, vegetation, and residues, including
hulls, shells, or cellulose containing fibers.
(2)
'Commission' means the Georgia Public Service Commission.
(3)
'Electric membership corporation' means a corporation organized under Article 2
of this chapter.
(4)
'Electric service provider' means any electric utility company, electric
membership corporation, or municipal electric provider engaged in the business
of distributing electricity to retail or wholesale electric customers in this
state.
(5)
'Electric utility company' means an electric utility as defined in Code Section
46-1-1.
(6)
'Low impact hydropower' means a dam and powerhouse that:
(A)
Is certified as low impact by the Low Impact Hydropower Institute;
or
(B)
Is evaluated by the commission as compliant with the following
standards:
(i)
Providing river flows that are healthy for fish, wildlife, and water quality,
including seasonal flow fluctuations where appropriate;
(ii)
Protecting water quality in the river;
(iii)
Providing effective fish passage and protecting fish from
entrainment;
(iv)
Taking sufficient action to protect, mitigate, and enhance environmental
conditions in the watershed;
(v)
Avoiding negative impact on species classified as threatened or endangered by
the federal or state government;
(vi)
Avoiding inappropriate impact on cultural resources;
(vii)
Providing free access to the water and accommodating recreational activities on
the river; and
(viii)
Avoiding recommendation for removal by a federal or state agency due to adverse
environmental impact.
(7)
'Municipal electric provider' means an electrical service provider owned or
operated by a municipal corporation.
(8)
'Renewable energy' means electrical energy produced from or by any of the
following: wind; solar energy; low impact hydropower; geothermal resources;
ocean thermal energy; wave or tidal energy; biofuels derived entirely from
organic sources other than coal, petroleum, or natural gas; the combustion of
landfill gas; methane gas resulting from the anaerobic decomposition of organic
materials; plasma arc; pyrolysis; gasification; biomass materials and geothermal
resources; postconsumer waste paper; forest related sources, including mill
residues, waste pallets, crates, and dunnage; or forest and agricultural biomass
sources including orchard tree crops, vineyard, grain, legumes, sugar,
switchgrass, other crop by-products or residues, and precommercial thinning,
slash, brush or landscape trimmings, but not including old-growth
timber.
(9)
'Renewable energy credit' means a tradeable instrument created as an attribute
of renewable energy in accordance with rules and regulations promulgated in
accordance with Code Section 46-3-74.
46-3-72.
(a)
Each electric service provider is encouraged to establish a renewable energy
sources energy portfolio standard goal of:
(1)
One half of 1 percent of its annual net electricity sales by December 31,
2010;
(2)
One percent of its annual net electricity sales by December 31,
2011;
(3)
Two percent of its annual net electricity sales by December 31,
2012;
(4)
Three percent of its annual net electricity sales by December 31,
2013;
(5)
Four percent of its annual net electricity sales by December 31,
2014;
(6)
Five percent of its annual net electricity sales by December 31,
2015;
(7)
Six percent of its annual net electricity sales by December 31,
2016;
(8)
Seven percent of its annual net electricity sales by December 31,
2017;
(9)
Eight percent of its annual net electricity sales by December 31,
2018;
(10)
Nine percent of its annual net electricity sales by December 31, 2019;
and
(11)
Ten percent of its annual net electricity sales by December 31,
2020.
(b)
When an electric service provider has reached the standard goal of 10 percent of
annual net electricity sales, the electric service provider is encouraged to
maintain a renewable energy portfolio of at least 10 percent of its annual net
electricity sales.
46-3-73.
(a)
The commission may provide incentives to encourage electric service providers to
exceed the energy portfolio standard goals in Code Section 46-3-72 or to meet
such goals early, or both.
(b)
For electric service providers subject to rate determination by the commission,
the cost of purchases of energy and energy credits to meet energy portfolio
standard goals or to meet such goals early shall not be included in the rate
base as expenses of the electric service provider in such rate determination.
46-3-74.
(a)
No later than January 1, 2008, the commission shall adopt rules and regulations
to implement, administer, and enforce this part.
(b)
At a minimum, the rules and regulations shall:
(1)
Require that proposed capacity additions shall meet the emissions requirements
of the more stringent of the following:
(A)
The Georgia rules and regulations for air quality; or
(B)
The best achievable control technology;
(2)
Establish a renewable energy credits trading program, allowing any electrical
service provider to purchase sufficient energy credits to meet the goals
established in Code Sections 46-3-72;
(3)
Establish a registry of producers of renewable energy in this state. Electric
service providers may purchase renewable energy or renewable energy credits
directly from producers on the Georgia registry. In promulgating rules and
regulations in accordance with this paragraph, the commission shall provide for
such procedures and processes to utilize renewable energy credits from producers
on the Georgia registry and from producers outside the state so as to achieve
the maximum benefit to the state in terms of the state´s economy,
environment, and fuel diversity. The commission may establish and support other
mechanisms for direct marketing of renewable energy and energy credits by
Georgia producers of such renewable energy;
(4)
Provide that an electric service provider may credit toward satisfaction of the
goals set out in Code Sections 46-3-72 any production or acquisition of
renewable energy in the form of gas sold to a customer or to a gas distribution
system or credits based on such gas, based on conversion to kilowatt hours of
the thermal energy content in British thermal units of the renewable energy and
using for the conversion factor the system-wide average heat rate of the
gas-fired units of the electric service provider´s system as measured in
British thermal units per kilowatt hour; provided, however, that for co-firing
renewable and nonrenewable fuels, only the renewable portion of British thermal
units per kilowatt hour shall be allowed as a credit;
(5)
Provide for a reporting system to monitor voluntary compliance with this part.
The reporting system shall require electric service providers to report whether
they are subject to energy portfolio requirements in more than one state, the
amount of such requirements if applicable, and to indicate the sources of energy
or energy credits used to voluntarily comply with the energy portfolio goals in
Georgia and the requirements of other applicable states;
(6)
Provide for annual reporting by all electric service providers of any renewable
energy credits purchased, including whether such purchases were made inside or
outside of the state, how the renewable generation costs compared to cost from
other generation sources, and the average price paid for the renewable energy
credits; and
(7)
Require that an electric service provider certify that any of its renewable
energy credits sold meet state standards."
SECTION
3.
Said
title is further amended in Code Section 46-3A-1, relating to definitions
relative to integrated resource planning, by revising paragraph (7) as
follows:
"(7)
'Plan' means an integrated resource plan which contains the utility´s
electric demand and energy forecast for at least a 20 year period, contains the
utility´s program for meeting the requirements shown in its forecast in an
economical and reliable manner, contains the utility´s analysis of all
capacity resource options, including both demand-side and supply-side options,
and sets forth the utility´s assumptions and conclusions with respect to
the effect of each capacity resource option on the future cost and reliability
of electric service. The plan shall also:
(A)
Contain the size and type of facilities which are expected to be owned or
operated in whole or in part by such utility and the construction of which is
expected to commence during the ensuing ten years or such longer period as the
commission deems necessary and shall identify all existing facilities intended
to be removed from service during such period or upon completion of such
construction;
(B)
Contain practical alternatives to the fuel type and method of generation of the
proposed electric generating facilities and set forth in detail the reasons for
selecting the fuel type and method of generation;
(C)
Contain a statement of the estimated impact of proposed and alternative
generating plants on the environment and the means by which potential adverse
impacts will be avoided or minimized;
(D)
Indicate in detail the projected demand for electric energy for a 20 year period
and the basis for determining the projected demand;
(E)
Describe the utility´s relationship to other utilities in regional
associations, power pools, and networks;
(F)
Identify and describe all major research projects and programs which will
continue or commence in the succeeding three years and set forth the reasons for
selecting specific areas of research;
(G)
Identify and describe existing and planned programs and policies to discourage
inefficient and excessive power use;
and
(H)
Identify and describe existing and planned renewable energy resources sufficient
to voluntarily comply with energy portfolio standard goals set out in Code
Section 46-3-71;
(I)
Identify and describe existing and planned renewable generation sources used by
the utility; and
(H)(J)
Provide any other information as may be required by the
commission."
SECTION
4.
Code
Section 50-23-4 of the Official Code of Georgia Annotated, relating to
definitions concerning the Georgia Environmental Facilities Authority, is
amended by revising paragraph (12) as follows:
"(12)
'Project' means the acquisition, construction, installation, modification,
renovation, repair, extension, renewal, replacement, or rehabilitation of land,
interest in land, buildings, structures, facilities, or other improvements and
the acquisition, installation, modification, renovation, repair, extension,
renewal, replacement, rehabilitation, or furnishing of fixtures, machinery,
equipment, furniture, or other property of any nature whatsoever used on, in, or
in connection with any such land, interest in land, building, structure,
facility, or other improvement, all for the essential public purpose of
providing environmental facilities and
services,
including but not limited to renewable energy generation
facilities, so as to meet public health
and environmental standards, protect the state´s valuable natural
resources, or aid the development of trade, commerce, industry, agriculture, and
employment opportunities or projects authorized by the Georgia Regional
Transportation Authority created by Chapter 32 of this title as defined in such
chapter, where the authority has been directed to issue revenue bonds, bonds,
notes, or other obligations to finance such project or the cost of a project in
whole or in part, provided that the authority´s power with respect to such
projects authorized by the Georgia Regional Transportation Authority shall be
limited to providing such financing and related matters as authorized by the
Georgia Regional Transportation Authority."
SECTION
5.
All
laws and parts of laws in conflict with this Act are repealed.