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H.B. 228

             1     

RENEWABLE ENERGY SOURCE AMENDMENTS

             2     
2010 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Roger E. Barrus

             5     
Senate Sponsor: J. Stuart Adams

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill includes energy derived from municipal solid waste as a renewable energy
             10      source for purposes of Title 10, Chapter 19, Municipal Electric Utility Carbon Emission
             11      Reduction Act, and Title 54, Chapter 17, Energy Resource Procurement Act.
             12      Highlighted Provisions:
             13          This bill:
             14          .    changes the definition of "renewable energy source" in Title 10, Chapter 19,
             15      Municipal Electric Utility Carbon Emission Reduction Act, and Title 54, Chapter
             16      17, Energy Resource Procurement Act, to include energy derived from municipal
             17      solid waste; and
             18          .    makes technical changes.
             19      Monies Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          None
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          10-19-102, as enacted by Laws of Utah 2008, Chapter 374
             26          54-17-601, as enacted by Laws of Utah 2008, Chapter 374
             27     


             28      Be it enacted by the Legislature of the state of Utah:
             29          Section 1. Section 10-19-102 is amended to read:
             30           10-19-102. Definitions.
             31          As used in this chapter:
             32          (1) "Adjusted retail electric sales" means the total kilowatt-hours of retail electric sales
             33      of a municipal electric utility to customers in this state in a calendar year, reduced by:
             34          (a) the amount of those kilowatt-hours attributable to electricity generated or purchased
             35      in that calendar year from qualifying zero carbon emissions generation and qualifying carbon
             36      sequestration generation;
             37          (b) the amount of those kilowatt-hours attributable to electricity generated or purchased
             38      in that calendar year from generation located within the geographic boundary of the Western
             39      Electricity Coordinating Council that derives its energy from one or more of the following but
             40      that does not satisfy the definition of a renewable energy source or that otherwise has not been
             41      used to satisfy Subsection 10-19-201 (1):
             42          (i) wind energy;
             43          (ii) solar photovoltaic and solar thermal energy;
             44          (iii) wave, tidal, and ocean thermal energy;
             45          (iv) except for combustion of wood that has been treated with chemical preservatives
             46      such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass
             47      byproducts, including:
             48          (A) organic waste;
             49          (B) forest or rangeland woody debris from harvesting or thinning conducted to improve
             50      forest or rangeland ecological health and to reduce wildfire risk;
             51          (C) agricultural residues;
             52          (D) dedicated energy crops; and
             53          (E) landfill gas or biogas produced from organic matter, wastewater, anaerobic
             54      digesters, or municipal solid waste;
             55          (v) geothermal energy;
             56          (vi) hydro-electric energy; or
             57          (vii) waste gas and waste heat capture or recovery; and
             58          (c) the number of kilowatt-hours attributable to reductions in retail sales in that


             59      calendar year from activities or programs promoting electric energy efficiency or conservation
             60      or more efficient management of electric energy load.
             61          (2) "Amount of kilowatt-hours attributable to electricity generated or purchased in that
             62      calendar year from qualifying carbon sequestration generation," for qualifying carbon
             63      sequestration generation, means the kilowatt-hours supplied by a facility during the calendar
             64      year multiplied by the ratio of the amount of carbon dioxide captured from the facility and
             65      sequestered to the sum of the amount of carbon dioxide captured from the facility and
             66      sequestered plus the amount of carbon dioxide emitted from the facility during the same
             67      calendar year.
             68          (3) "Banked renewable energy certificate" means a bundled or unbundled renewable
             69      energy certificate that is:
             70          (a) not used in a calendar year to comply with this part or with a renewable energy
             71      program in another state; and
             72          (b) carried forward into a subsequent year.
             73          (4) "Bundled renewable energy certificate" means a renewable energy certificate for
             74      qualifying electricity that is acquired:
             75          (a) by a municipal electric utility by a trade, purchase, or other transfer of electricity
             76      that includes the renewable energy attributes of, or certificate that is issued for, the electricity;
             77      or
             78          (b) by a municipal electric utility by generating the electricity for which the renewable
             79      energy certificate is issued.
             80          (5) "Commission" means the Public Service Commission.
             81          (6) "Municipal electric utility" means any municipality that owns, operates, controls, or
             82      manages a facility that provides electric power for a retail customer, whether domestic,
             83      commercial, industrial, or otherwise.
             84          (7) "Qualifying carbon sequestration generation" means a fossil-fueled generating
             85      facility located within the geographic boundary of the Western Electricity Coordinating
             86      Council that:
             87          (a) becomes operational or is retrofitted on or after January 1, 2008; and
             88          (b) reduces carbon dioxide emissions into the atmosphere through permanent
             89      geological sequestration or through other verifiably permanent reductions in carbon dioxide


             90      emissions through the use of technology.
             91          (8) "Qualifying electricity" means electricity generated on or after January 1, 1995
             92      from a renewable energy source if:
             93          (a) (i) the renewable energy source is located within the geographic boundary of the
             94      Western Electricity Coordinating Council; or
             95          (ii) the qualifying electricity is delivered to the transmission system of a municipal
             96      electric utility or a delivery point designated by the municipal electric utility for the purpose of
             97      subsequent delivery to the municipal electric utility; and
             98          (b) the renewable energy attributes of the electricity are not traded, sold, transferred, or
             99      otherwise used to satisfy another state's renewable energy program.
             100          (9) "Qualifying zero carbon emissions generation":
             101          (a) means a generation facility located within the geographic boundary of the Western
             102      Electricity Coordinating Council that:
             103          (i) becomes operational on or after January 1, 2008; and
             104          (ii) does not produce carbon as a byproduct of the generation process;
             105          (b) includes generation powered by nuclear fuel; and
             106          (c) does not include renewable energy sources used to satisfy a target established under
             107      Section 10-19-201 .
             108          (10) "Renewable energy certificate" means a certificate issued in accordance with the
             109      requirements of Sections 10-19-202 and 54-17-603 .
             110          (11) "Renewable energy source" means:
             111          (a) an electric generation facility or generation capability or upgrade that becomes
             112      operational on or after January 1, 1995 that derives its energy from one or more of the
             113      following:
             114          (i) wind energy;
             115          (ii) solar photovoltaic and solar thermal energy;
             116          (iii) wave, tidal, and ocean thermal energy;
             117          (iv) except for combustion of wood that has been treated with chemical preservatives
             118      such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass
             119      byproducts, including:
             120          (A) organic waste;


             121          (B) forest or rangeland woody debris from harvesting or thinning conducted to improve
             122      forest or rangeland ecological health and to reduce wildfire risk;
             123          (C) agricultural residues;
             124          (D) dedicated energy crops; and
             125          (E) landfill gas or biogas produced from organic matter, wastewater, anaerobic
             126      digesters, or municipal solid waste;
             127          (v) geothermal energy located outside the state;
             128          (vi) waste gas and waste heat capture or recovery; [or]
             129          (vii) efficiency upgrades to a hydroelectric facility, without regard to the date upon
             130      which the facility became operational, if the upgrades become operational on or after January
             131      1, 1995; or
             132          (viii) municipal solid waste;
             133          (b) any of the following:
             134          (i) up to 50 average megawatts of electricity per year per municipal electric utility from
             135      a certified low-impact hydroelectric facility, without regard to the date upon which the facility
             136      becomes operational, if the facility is certified as a low-impact hydroelectric facility on or after
             137      January 1, 1995, by a national certification organization;
             138          (ii) geothermal energy if located within the state, without regard to the date upon which
             139      the facility becomes operational; and
             140          (iii) hydroelectric energy if located within the state, without regard to the date upon
             141      which the facility becomes operational;
             142          (c) hydrogen gas derived from any source of energy described in Subsection (11)(a) or
             143      (b);
             144          (d) if an electric generation facility employs multiple energy sources, that portion of the
             145      electricity generated that is attributable to energy sources described in Subsections (11)(a)
             146      through (c); and
             147          (e) any of the following located in the state and owned by a user of energy:
             148          (i) a demand side management measure, as defined by Subsection 54-7-12.8 (1) with
             149      the quantity of renewable energy certificates to which the user is entitled determined by the
             150      equivalent energy saved by the measure;
             151          (ii) a solar thermal system that reduces the consumption of fossil fuels, with the


             152      quantity of renewable energy certificates to which the user is entitled determined by the
             153      equivalent kilowatt-hours saved, except to the extent the commission determines otherwise
             154      with respect to net-metered energy;
             155          (iii) a solar photovoltaic system that reduces the consumption of fossil fuels with the
             156      quantity of renewable energy certificates to which the user is entitled determined by the total
             157      production of the system, except to the extent the commission determines otherwise with
             158      respect to net-metered energy;
             159          (iv) a hydroelectric or geothermal facility, with the quantity of renewable energy
             160      certificates to which the user is entitled determined by the total production of the facility,
             161      except to the extent the commission determines otherwise with respect to net-metered energy;
             162          (v) a waste gas or waste heat capture or recovery system other than from a combined
             163      cycle combustion turbine that does not use waste gas or waste heat, with the quantity of
             164      renewable energy certificates to which the user is entitled determined by the total production of
             165      the system, except to the extent the commission determines otherwise with respect to
             166      net-metered energy; and
             167          (vi) the station use of solar thermal energy, solar photovoltaic energy, hydroelectric
             168      energy, geothermal energy, waste gas, or waste heat capture and recovery.
             169          (12) "Unbundled renewable energy certificate" means a renewable energy certificate
             170      associated with:
             171          (a) qualifying electricity that is acquired by a municipal electric utility or other person
             172      by trade, purchase, or other transfer without acquiring the electricity for which the certificate
             173      was issued; or
             174          (b) activities listed in Subsection (11)(e).
             175          Section 2. Section 54-17-601 is amended to read:
             176           54-17-601. Definitions.
             177          As used in this part:
             178          (1) "Adjusted retail electric sales" means the total kilowatt-hours of retail electric sales
             179      of an electrical corporation to customers in this state in a calendar year, reduced by:
             180          (a) the amount of those kilowatt-hours attributable to electricity generated or purchased
             181      in that calendar year from qualifying zero carbon emissions generation and qualifying carbon
             182      sequestration generation;


             183          (b) the amount of those kilowatt-hours attributable to electricity generated or purchased
             184      in that calendar year from generation located within the geographic boundary of the Western
             185      Electricity Coordinating Council that derives its energy from one or more of the following but
             186      that does not satisfy the definition of a renewable energy source or that otherwise has not been
             187      used to satisfy Subsection 54-17-602 (1):
             188          (i) wind energy;
             189          (ii) solar photovoltaic and solar thermal energy;
             190          (iii) wave, tidal, and ocean thermal energy;
             191          (iv) except for combustion of wood that has been treated with chemical preservatives
             192      such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass
             193      byproducts, including:
             194          (A) organic waste;
             195          (B) forest or rangeland woody debris from harvesting or thinning conducted to improve
             196      forest or rangeland ecological health and to reduce wildfire risk;
             197          (C) agricultural residues;
             198          (D) dedicated energy crops; and
             199          (E) landfill gas or biogas produced from organic matter, wastewater, anaerobic
             200      digesters, or municipal solid waste;
             201          (v) geothermal energy;
             202          (vi) hydroelectric energy; or
             203          (vii) waste gas and waste heat capture or recovery; and
             204          (c) the number of kilowatt-hours attributable to reductions in retail sales in that
             205      calendar year from demand side management as defined in Section 54-7-12.8 , with the
             206      kilowatt-hours for an electrical corporation whose rates are regulated by the commission and
             207      adjusted by the commission to exclude kilowatt-hours for which a renewable energy certificate
             208      is issued under Subsection 54-17-603 (4)(b).
             209          (2) "Amount of kilowatt-hours attributable to electricity generated or purchased in that
             210      calendar year from qualifying carbon sequestration generation," for qualifying carbon
             211      sequestration generation, means the kilowatt-hours supplied by a facility during the calendar
             212      year multiplied by the ratio of the amount of carbon dioxide captured from the facility and
             213      sequestered to the sum of the amount of carbon dioxide captured from the facility and


             214      sequestered plus the amount of carbon dioxide emitted from the facility during the same
             215      calendar year.
             216          (3) "Banked renewable energy certificate" means a bundled or unbundled renewable
             217      energy certificate that is:
             218          (a) not used in a calendar year to comply with this part or with a renewable energy
             219      program in another state; and
             220          (b) carried forward into a subsequent year.
             221          (4) "Bundled renewable energy certificate" means a renewable energy certificate for
             222      qualifying electricity that is acquired:
             223          (a) by an electrical corporation by a trade, purchase, or other transfer of electricity that
             224      includes the renewable energy attributes of, or certificate that is issued for, the electricity; or
             225          (b) by an electrical corporation by generating the electricity for which the renewable
             226      energy certificate is issued.
             227          (5) "Electrical corporation":
             228          (a) is as defined in Section 54-2-1 ; and
             229          (b) does not include a person generating electricity that is not for sale to the public.
             230          (6) "Qualifying carbon sequestration generation" means a fossil-fueled generating
             231      facility located within the geographic boundary of the Western Electricity Coordinating
             232      Council that:
             233          (a) becomes operational or is retrofitted on or after January 1, 2008; and
             234          (b) reduces carbon dioxide emissions into the atmosphere through permanent
             235      geological sequestration or through another verifiably permanent reduction in carbon dioxide
             236      emissions through the use of technology.
             237          (7) "Qualifying electricity" means electricity generated on or after January 1, 1995
             238      from a renewable energy source if:
             239          (a) (i) the renewable energy source is located within the geographic boundary of the
             240      Western Electricity Coordinating Council; or
             241          (ii) the qualifying electricity is delivered to the transmission system of an electrical
             242      corporation or a delivery point designated by the electrical corporation for the purpose of
             243      subsequent delivery to the electrical corporation; and
             244          (b) the renewable energy attributes of the electricity are not traded, sold, transferred, or


             245      otherwise used to satisfy another state's renewable energy program.
             246          (8) "Qualifying zero carbon emissions generation":
             247          (a) means a generation facility located within the geographic boundary of the Western
             248      Electricity Coordinating Council that:
             249          (i) becomes operational on or after January 1, 2008; and
             250          (ii) does not produce carbon as a byproduct of the generation process;
             251          (b) includes generation powered by nuclear fuel; and
             252          (c) does not include renewable energy sources used to satisfy the requirement
             253      established under Subsection 54-17-602 (1).
             254          (9) "Renewable energy certificate" means a certificate issued under Section 54-17-603 .
             255          (10) "Renewable energy source" means:
             256          (a) an electric generation facility or generation capability or upgrade that becomes
             257      operational on or after January 1, 1995 that derives its energy from one or more of the
             258      following:
             259          (i) wind energy;
             260          (ii) solar photovoltaic and solar thermal energy;
             261          (iii) wave, tidal, and ocean thermal energy;
             262          (iv) except for combustion of wood that has been treated with chemical preservatives
             263      such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass
             264      byproducts, including:
             265          (A) organic waste;
             266          (B) forest or rangeland woody debris from harvesting or thinning conducted to improve
             267      forest or rangeland ecological health and to reduce wildfire risk;
             268          (C) agricultural residues;
             269          (D) dedicated energy crops; and
             270          (E) landfill gas or biogas produced from organic matter, wastewater, anaerobic
             271      digesters, or municipal solid waste;
             272          (v) geothermal energy located outside the state;
             273          (vi) waste gas and waste heat capture or recovery; [or]
             274          (vii) efficiency upgrades to a hydroelectric facility, without regard to the date upon
             275      which the facility became operational, if the upgrades become operational on or after January


             276      1, 1995; or
             277          (viii) municipal solid waste;
             278          (b) any of the following:
             279          (i) up to 50 average megawatts of electricity per year per electrical corporation from a
             280      certified low-impact hydroelectric facility, without regard to the date upon which the facility
             281      becomes operational, if the facility is certified as a low-impact hydroelectric facility on or after
             282      January 1, 1995, by a national certification organization;
             283          (ii) geothermal energy if located within the state, without regard to the date upon which
             284      the facility becomes operational; or
             285          (iii) hydroelectric energy if located within the state, without regard to the date upon
             286      which the facility becomes operational;
             287          (c) hydrogen gas derived from any source of energy described in Subsection (10)(a) or
             288      (b);
             289          (d) if an electric generation facility employs multiple energy sources, that portion of the
             290      electricity generated that is attributable to energy sources described in Subsections (10)(a)
             291      through (c); and
             292          (e) any of the following located in the state and owned by a user of energy:
             293          (i) a demand side management measure, as defined by Subsection 54-7-12.8 (1), with
             294      the quantity of renewable energy certificates to which the user is entitled determined by the
             295      equivalent energy saved by the measure;
             296          (ii) a solar thermal system that reduces the consumption of fossil fuels, with the
             297      quantity of renewable energy certificates to which the user is entitled determined by the
             298      equivalent kilowatt-hours saved, except to the extent the commission determines otherwise
             299      with respect to net-metered energy;
             300          (iii) a solar photovoltaic system that reduces the consumption of fossil fuels with the
             301      quantity of renewable energy certificates to which the user is entitled determined by the total
             302      production of the system, except to the extent the commission determines otherwise with
             303      respect to net-metered energy;
             304          (iv) a hydroelectric or geothermal facility with the quantity of renewable energy
             305      certificates to which the user is entitled determined by the total production of the facility,
             306      except to the extent the commission determines otherwise with respect to net-metered energy;


             307          (v) a waste gas or waste heat capture or recovery system, other than from a combined
             308      cycle combustion turbine that does not use waste gas or waste heat, with the quantity of
             309      renewable energy certificates to which the user is entitled determined by the total production of
             310      the system, except to the extent the commission determines otherwise with respect to
             311      net-metered energy; and
             312          (vi) the station use of solar thermal energy, solar photovoltaic energy, hydroelectric
             313      energy, geothermal energy, waste gas, or waste heat capture and recovery.
             314          (11) "Unbundled renewable energy certificate" means a renewable energy certificate
             315      associated with:
             316          (a) qualifying electricity that is acquired by an electrical corporation or other person by
             317      trade, purchase, or other transfer without acquiring the electricity for which the certificate was
             318      issued; or
             319          (b) activities listed in Subsection (10)(e).




Legislative Review Note
    as of 1-20-10 1:11 PM


Office of Legislative Research and General Counsel


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