Representative John Knotwell proposes the following substitute bill:


1     
RENEWABLE ENERGY AMENDMENTS

2     
2018 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: John Knotwell

5     
Senate Sponsor: Curtis S. Bramble

6     

7     LONG TITLE
8     General Description:
9          This bill addresses the basis of setting rates for solar photovoltaic or thermal solar
10     energy facilities.
11     Highlighted Provisions:
12          This bill:
13          ▸     permits a qualified utility to apply to the commission regarding solar energy projects
14     under certain circumstances;
15          ▸     addresses exemptions from certain provisions;
16          ▸     prescribes requirements for the application;
17          ▸     imposes process requirements;
18          ▸     requires public hearing and comments; and
19          ▸     provides for rulemaking authority.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     ENACTS:

26          54-17-807, Utah Code Annotated 1953
27     

28     Be it enacted by the Legislature of the state of Utah:
29          Section 1. Section 54-17-807 is enacted to read:
30          54-17-807. Solar photovoltaic or thermal solar energy facilities.
31          (1) As used in this section, "acquire" means to purchase, construct, or purchase the
32     output from a photovoltaic or thermal solar energy resource.
33          (2) In accordance with this section, a qualified utility may file an application with the
34     commission for approval to acquire a photovoltaic or thermal solar energy resource using rate
35     recovery based on a competitive market price.
36          (3) The energy resource acquired pursuant to this section may be owned solely or
37     jointly by a qualified utility or another entity:
38          (a) to provide renewable energy to a contract customer as provided in Section
39     54-17-803;
40          (b) to serve energy to a qualified utility customer as provided in Section 54-17-806;
41          (c) to serve energy to any customers of the qualified utility if the proposed energy
42     resource's nameplate capacity does not exceed 300 megawatts or, if applicable, the quantity of
43     capacity that is the subject of a contract for the purchase of electricity does not exceed 300
44     megawatts, so long as the qualified utility proceeds under and complies with Part 4, Voluntary
45     Request for Resource Decision Review; or
46          (d) to serve energy to any customers of the qualified utility if the proposed energy
47     resource's nameplate capacity exceeds 300 megawatts or, if applicable, the quantity of capacity
48     that is the subject of a contract for the purchase of electricity exceeds 300 megawatts, so long
49     as the qualified utility complies with this chapter.
50          (4) Except as provided in Subsections (3)(c) and (d), the following do not apply to an
51     application submitted under Subsection (2):
52          (a) Part 1, General Provisions;
53          (b) Part 2, Solicitation Process;
54          (c) Part 3, Resource Plans and Significant Energy Resource Approval;
55          (d) Part 4, Voluntary Request for Resource Decision Review; and
56          (e) Section 54-17-502.

57          (5) The application described in Subsection (2) shall include:
58          (a) a proposed solicitation process for the energy resource;
59          (b) the criteria proposed to be used to evaluate the responses to the solicitation:
60          (i) as determined by the customer, if the energy resource is sought to serve a customer
61     pursuant to Subsection (3)(a) or (b); or
62          (ii) as proposed by the qualified utility, if the energy resource is sought to serve the
63     customers of the qualified utility pursuant to Subsection (3)(c) or (d); and
64          (c) any other information the commission may require.
65          (6) (a) Before approving a solicitation process under this section for an energy resource
66     to serve customers of the qualified utility pursuant to Subsection (3)(c) or (d), the commission
67     shall:
68          (i) hold a public hearing; and
69          (ii) provide an opportunity for public comment.
70          (b) The commission may approve a solicitation process under this section only if the
71     commission determines that the solicitation and evaluation processes to be used will create a
72     level playing field in which the qualified utility and other bidders can compete fairly, including
73     with respect to interconnection and transmission requirements imposed on bidders by the
74     solicitation within the control of the commission and the qualified utility, excluding its
75     federally regulated transmission function, and will otherwise serve the public interest.
76          (7) (a) Upon completion of the solicitation process approved under Subsection (6), the
77     qualified utility may seek approval from the commission to acquire the energy resource
78     identified through the solicitation process as the winning bid.
79          (b) Before approving acquisition of an energy resource acquired pursuant to this
80     section, the commission shall:
81          (i) hold a public hearing;
82          (ii) provide an opportunity for public comment;
83          (iii) determine whether the solicitation and evaluation processes complied with this
84     section, commission rules, and the commission's order approving the solicitation process; and
85          (iv) determine whether the acquisition of the energy resource is just and reasonable,
86     and in the public interest.
87          (c) The commission may approve a qualified utility's ownership of an energy resource

88     or a power purchase agreement containing a purchase option under Subsection (3)(c) or (d)
89     with rate recovery based on a competitive market price only if the commission determines that
90     the qualified utility's bid is the lowest cost ownership option for the qualified utility.
91          (d) If the commission approves a qualified utility's acquisition of an energy resource
92     under Subsection (3), including entering into a power purchase agreement containing a
93     purchase option, using rate recovery based on a competitive market price:
94          (i) the prices approved by the commission shall constitute competitive market prices
95     for purposes of this section; and
96          (ii) assets owned by the qualified utility and used to provide service as approved under
97     this section are not public utility property.
98          (8) If upon completion of a solicitation process approved under Subsection (6) the
99     qualified utility proposes not to acquire an energy resource, the qualified utility shall file with
100     the commission a report explaining its reasons for not acquiring the lowest cost resource bid
101     into the solicitation, along with any other information the commission requires.
102          (9) Within six months after a competitive market price for a solar energy resource
103     acquired under Subsection (3)(c) or (d) has been identified pursuant to this section, or for such
104     longer period as the commission may determine to be in the public interest, a qualified utility
105     may file an application with the commission seeking approval to acquire another energy
106     resource similar to the energy resource for which a competitive market price was established
107     without going through a new solicitation process. The commission may approve the application
108     if the qualified utility demonstrates a need to acquire the energy resource, that the competitive
109     market price remains reasonable, and that the acquisition is in the public interest.
110          (10) No later than 180 days before the end of the term approved by the commission for
111     an energy resource acquired under this section and owned by the qualifying utility, the qualified
112     utility shall file with the commission a request for determination of an appropriate disposition
113     of the energy resource asset, except that the qualified utility is permitted to retain the benefits
114     or proceeds and shall be required to assume the costs and risks of ownership of the energy
115     resource.
116          (11) The commission shall adopt rules, in accordance with Title 63G, Chapter 3, Utah
117     Administrative Rulemaking Act:
118          (a) addressing the content and filing of an application under this section;

119          (b) to establish the solicitation process and criteria to be used to identify the
120     competitive market price and select an energy resource; and
121          (c) addressing other factors determined by the commission to be relevant to protect the
122     public interest and to implement this section.