LD 1202 – LD 1202 An Act To Establish a Wood-fired Combined Heat and Power Program

Rep. Wadsworth-R This bill establishes the combined heat and power program, administered by the Public Utilities Commission, to encourage the sustainable development of combined heat and power projects that use wood fuel in the State.  Participation in the program is limited to 50 megawatts of net generating capacity across all projects, and each individual project may not be less than 3 megawatts or more than 10 megawatts of net generating capacity.
The bill authorizes the commission to direct investor-owned transmission and distribution utilities to enter into long-term contracts with program participants located within the service territory of each utility for energy, capacity resources or renewable energy credits.  A long-term contract entered into under the combined heat and power program cannot be for a contract term greater than 20 years, and the contract price may not exceed the tariff rate established by the commission for commercial and institutional net energy billing projects in the year the contract price is established, plus annual cost escalators adopted by the commission.  It allows consumer-owned transmission and distribution utilities, at their own option, to enter into such contracts.  It also requires the commission to ensure that mechanisms are established to protect electricity ratepayers over the contract term.
It requires the commission to report biennially to the joint standing committee of the Legislature having jurisdiction over utilities and energy matters regarding the implementation and effectiveness of the combined heat and power program and the overall development of combined heat and power program projects in the State.
Lastly, it authorizes, but does not require, the State to give preference to electricity generated by combined heat and power projects when purchasing electricity for the State and authorizes, but does not require, the commission to incorporate energy generated by combined heat and power projects into the supply of standard-offer service.
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