HB 402: Public Service Commission; establishment of renewable energy sources and renewable energy portfolio standard goals for electric service providers; provide

House Bill 402

By: Representatives Frye of the 122nd, Bell of the 75th, Drenner of the 85th, Sanchez of the 42nd, Paris of the 142nd, and others

A BILL TO BE ENTITLED

AN ACT

To amend Titles 46 and 50 of the Official Code of Georgia Annotated, relating to public utilities and public transportation and state government, respectively, so as to provide for the establishment of renewable energy sources and renewable energy portfolio standard goals by the Public Service Commission for electric service providers; to provide for the inclusion of existing or planned renewable energy resources in integrated resource plans; to authorize the Georgia Environmental Finance Authority to finance and perform certain duties in connection with projects relating to renewable energy facilities; to provide for limited liability; to revise and provide for definitions; to provide for rules and regulations; to provide legislative findings; 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 and public transportation, is amended in Article 1 of Chapter 3, relating to generation and distribution of electricity generally, by adding a new part to read as follows: "Part 6

46-3-69.5.

(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 this state's renewable energy resources. These efforts can reduce the consumption of fossil fuels for the generation of electricity and reduce this state's dependence on finite, nonrenewable resources. Accordingly, the General Assembly finds and declares that goals should be established for electric service providers 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 service providers in implementing portfolio standards for renewable energy.

46-3-69.6.

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; 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) 'Electric membership corporation' means a corporation organized under Article 4 of this chapter.

(3) 'Electric service provider' means any electric utility, electric membership corporation, or municipal electric provider engaged in the business of distributing electricity to retail or wholesale electric customers in this state.

(4) 'Low impact hydropower' means energy produced by a dam and powerhouse that is:

(A) Certified as low impact by the Low Impact Hydropower Institute; or

(B) Evaluated by the commission as being 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 any recommendation for removal by a federal or state agency due to adverse environmental impacts.

(5) 'Municipal electric provider' means an entity that provides electric services and that is owned or operated by a municipal corporation.

(6) 'Renewable energy' means electrical energy produced from or by renewable energy sources.

(7) 'Renewable energy sources' means 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; 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.

46-3-69.7.

(a) On or before July 1, 2026, the commission shall establish renewable energy sources and renewable energy portfolio standard goals for electric service providers to reach on an annual basis. Such goals shall not exceed 20 percent of annual net electricity sales for each electric service provider. In developing the renewable energy sources and renewable energy portfolio standard goals, the commission shall evaluate current and forecasted levelized costs in cents per kilowatt hour for all electric service providers through 2030 and current and forecasted installed capacity in kilowatts for each renewable energy generation method for all electric service providers through 2050.

(b) Electric service providers are encouraged to meet and maintain the renewable energy sources and renewable energy portfolio standard goals established pursuant to subsection (a) of this Code section.

46-3-69.8.

On or before July 1, 2026, the commission shall adopt rules and regulations to carry out the provisions of this part. Such rules and regulations shall, at a minimum:

(1) Provide for a reporting system to monitor voluntary compliance with this part. Such reporting system shall require electric service providers to report whether they are subject to energy portfolio requirements in more than one state and the amount of such requirements, if applicable, and to indicate the sources of energy used to voluntarily comply with the renewable energy sources and renewable energy portfolio standard goals established pursuant to subsection (a) of Code Section 46-3-46.7 and the requirements of other applicable states; and

(2) Provide for annual reporting by all electric service providers of renewable energy usage, how the generation costs of renewable energy compare to costs from other generation sources, and the average price paid for the sources of the renewable energy produced."

SECTION 2.

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;

(H) Identify and describe existing and planned renewable energy resources, if any, used by the utility and whether such existing and planned renewable energy resources are sufficient to comply with the renewable energy sources and renewable energy portfolio standard goals established pursuant to subsection (a) of Code Section

46-3-46.7; and

(H)(I) Provide any other information as may be required by the commission."

SECTION 3.

Title 50 of the Official Code of Georgia Annotated, relating to state government, is amended in Code Section 50-23-4, relating to definitions relative to the Georgia Environmental Finance Authority, by revising paragraphs (5) and (6) and adding a new paragraph to read as follows:

"(5) 'Environmental facilities' means any projects, structures, and other real or personal property acquired, rehabilitated, constructed, or planned:

(A) For the purposes of supplying, distributing, and treating water and diverting, channeling, or controlling water flow and head including, but not limited to, surface or ground water, canals, reservoirs, channels, basins, dams, aqueducts, standpipes, penstocks, conduits, pipelines, mains, pumping stations, water distribution systems, compensating reservoirs, intake stations, waterworks or sources of water supply, wells, purification or filtration plants or other treatment plants and works, connections, water meters, mechanical equipment, electric generating equipment, rights of flowage or division and other plant structures, equipment, conveyances, real or personal property or rights therein and appurtenances, furnishings, accessories, and devices thereto necessary or useful and convenient for the collection, conveyance, distribution, pumping, treatment, storing, or disposing of water;

(B) For the purposes of collecting, treating, or disposing of sewage including, but not limited to, main, trunk, intercepting, connecting, lateral, outlet, or other sewers, outfall, pumping stations, treatment and disposal plants, ground water rechange basins, backflow prevention devices, sludge dewatering or disposal equipment and facilities, clarifiers, filters, phosphorus removal equipment and other plants, soil absorption systems, innovative systems or equipment, structures, equipment, vehicles, conveyances, real or personal property or rights therein, and appurtenances thereto necessary or useful and convenient for the collection, conveyance, pumping, treatment, neutralization, storing, and disposing of sewage;

(C) For the purposes of collecting, treating, recycling, composting, or disposing of solid waste, including, but not limited to, trucks, dumpsters, intermediate reception stations or facilities, transfer stations, incinerators, shredders, treatment plants, landfills, landfill equipment, barrels, binders, barges, alternative technologies and other plant structures, equipment, conveyances, improvements, real or personal property or rights therein, and appurtenances, furnishings, accessories, and devices thereto necessary or useful and convenient for the collection, treatment, or disposal of solid waste; or

(D) For the purposes of carrying out a community land conservation project or a state land conservation project pursuant to Chapter 22 of Title 36; or

(E) For the purposes of generating, storing, and transmitting renewable energy, as such term is defined in Code Section 46-3-69.6, including, but not limited to, generation facilities, battery storage facilities, electric transformers, transmission lines, equipment, vehicles, conveyances, real or personal property or rights therein and appurtenances, furnishings, accessories, and devices thereto necessary or useful and convenient for the generation, storing, and transmitting of such renewable energy.

(6) 'Environmental services' means the provision, collectively or individually, of water facilities, sewerage facilities, solid waste facilities, renewable energy facilities, community land conservation projects or state land conservation projects pursuant to Chapter 22 Title 36, or management services."

"(12.1) 'Renewable energy facility' means any environmental facility described in subparagraph (E) of paragraph (5) of this Code section."

SECTION 4.

Said title is further amended in subsection (b) of Code Section 50-23-5, relating to purpose, powers, and duties, by striking "and" at the end of paragraph (33), by striking the period and inserting in lieu thereof "; and" at the end of subparagraph (J) of paragraph (34), and by adding a new paragraph to read as follows:

"(35) To promulgate and adopt rules and regulations to carry out the purposes of this chapter."

SECTION 5.

Said title is further amended in Code Section 50-23-12, relating to personal liability of members, officers, and employees of the authority, by revising paragraph (2) as follows: "(2) The construction, ownership, maintenance, or operation of any solid waste system, sewerage system, renewable energy system, environmental facility, or water system owned by a local government; or"

SECTION 6.

All laws and parts of laws in conflict with this Act are repealed.