Amendment
37
Renewable
Energy Requirement
Ballot
Title: An amendment to the
renewable
energy standards for large providers of retail electric
service,
and,
in connection therewith, defining eligible renewable energy
resources
to
include solar, wind, geothermal, biomass, small hydroelectricity,
and
hydrogen
fuel cells; requiring that a percentage of retail electricity sales
be
derived
from renewable sources, beginning with 3% in the year 2007
and
increasing
to 10% by 2015; requiring utilities to offer customers a rebate
of
$2.00
per watt and other incentives for solar electric generation;
providing
incentives
for utilities to invest in renewable energy resources that
provide
net
economic benefits to customers; limiting the retail rate impact
of
renewable
energy resources to 50 cents per month for residential
customers;
requiring public utilities commission rules to establish
major
aspects
of the measure; prohibiting utilities from using condemnation
or
eminent
domain to acquire land for generating facilities used to meet
the
standards;
requiring utilities with requirements contracts to address
shortfalls
from the standards; and specifying election procedures by
which
the
customers of a utility may opt out of the requirements of
this
amendment.
Text
of Proposal:
Be
it Enacted by the People of the State of
SECTION
1. Legislative declaration of intent:
Energy
is critically important to
its
use has a profound impact on the economy and environment. Growth
of
the
state's population and economic base will continue to create a need
for
new
energy resources, and
currently
underutilized.
Therefore,
in order to save consumers and businesses money, attract
new
businesses
and jobs, promote development of rural economies, minimize
water
use for electricity generation, diversify
resources,
reduce the impact of volatile fuel prices, and improve
the
natural environment of the state, it is in the best interests
of
the
citizens of
resources
to the maximum practicable extent.
SECTION
2. Article 2 of title 40, Colorado Revised Statutes, is
amended
BY THE ADDITION OF THE FOLLOWING NEW
SECTIONS
to read:
ARTICLE
2
Renewable
Energy Standard
40-2-124.
Renewable Energy Standard. (1) EACH PROVIDER OF
RETAIL
ELECTRIC SERVICE IN THE STATE OF
OVER
40,000 CUSTOMERS SHALL BE CONSIDERED A QUALIFYING RETAIL
UTILITY
AND SHALL BE SUBJECT TO THE RULES ESTABLISHED UNDER
THIS
ARTICLE BY THE PUBLIC UTILITIES COMMISSION OF THE STATE OF
COMMISSION
OTHER THAN THAT SPECIFICALLY CONTAINED HEREIN IS PROVIDED
OR
IMPLIED. IN ACCORDANCE WITH ARTICLE 4 OF TITLE 24, C.R.S., ON
OR
BEFORE
RULEMAKING
PROCESSES TO ESTABLISH THE FOLLOWING:
(A)
DEFINITIONS OF ELIGIBLE RENEWABLE ENERGY RESOURCES THAT CAN
BE
USED
TO MEET THE STANDARDS. ELIGIBLE RENEWABLE ENERGY RESOURCES
ARE
SOLAR,
WIND, GEOTHERMAL, BIOMASS, AND HYDROELECTRICITY WITH A
NAMEPLATE
RATING OF 10 MEGAWATTS OR LESS. THE COMMISSION SHALL
DETERMINE,
FOLLOWING AN EVIDENTIARY HEARING, THE EXTENT THAT SUCH
ELECTRIC
GENERATION TECHNOLOGIES UTILIZED IN AN OPTIONAL PRICING
PROGRAM
MAY BE USED TO COMPLY WITH THIS STANDARD. A FUEL CELL USING HYDROGEN DERIVED
FROM THESE ELIGIBLE RESOURCES IS ALSO AN ELIGIBLE
ELECTRIC
GENERATION TECHNOLOGY. FOSSIL AND NUCLEAR FUELS AND THEIR
DERIVATIVES
ARE NOT ELIGIBLE RESOURCES. FURTHER, "BIOMASS" SHALL BE
DEFINED
TO MEAN:
(I)
NONTOXIC PLANT MATTER THAT IS THE BYPRODUCT OF
AGRICULTURAL
CROPS,
URBAN WOOD WASTE, MILL RESIDUE, SLASH, OR BRUSH;
(II)
ANIMAL WASTES AND PRODUCTS OF ANIMAL WASTES; OR
(III)
METHANE PRODUCED AT LANDFILLS OR AS A BY-PRODUCT OF THE
TREATMENT
OF WASTEWATER RESIDUALS.
(B)
STANDARDS FOR THE DESIGN, PLACEMENT AND MANAGEMENT OF
ELECTRIC
GENERATION
TECHNOLOGIES THAT USE ELIGIBLE RENEWABLE ENERGY
RESOURCES
TO ENSURE THAT THE ENVIRONMENTAL IMPACTS OF SUCH
FACILITIES
ARE
MINIMIZED.
(C)
(I) ELECTRIC RESOURCE STANDARDS FOR RENEWABLE ENERGY
RESOURCES.
THE
ELECTRIC RESOURCE STANDARD SHALL REQUIRE EACH QUALIFYING
RETAIL
UTILITY
TO GENERATE, OR CAUSE TO BE GENERATED, ELECTRICITY FROM
ELIGIBLE
RENEWABLE
ENERGY RESOURCES IN THE FOLLOWING MINIMUM AMOUNTS:
(A)
3% OF ITS RETAIL ELECTRICITY SALES IN
THROUGH
2010;
(B)
6% OF ITS RETAIL ELECTRICITY SALES IN
THROUGH
2014;
(C)
10% OF ITS RETAIL ELECTRICITY SALES IN
AND
THEREAFTER.
(II)
OF THE AMOUNTS IN SUBPART (C)(I), AT LEAST 4% SHALL BE DERIVED
FROM
SOLAR
ELECTRIC GENERATION TECHNOLOGIES. AT LEAST ONE-HALF OF THIS
4%
SHALL
BE DERIVED FROM SOLAR ELECTRIC TECHNOLOGIES LOCATED ON-SITE
AT
CUSTOMERS'
FACILITIES.
(III)
EACH KILOWATT-HOUR OF RENEWABLE ELECTRICITY GENERATED IN
COMPLIANCE
WITH THIS STANDARD.
(IV)
TO THE EXTENT THAT THE ABILITY OF A QUALIFYING RETAIL UTILITY
TO
ACQUIRE
ELIGIBLE RENEWABLE ELECTRIC GENERATION IS LIMITED BY A
REQUIREMENTS
CONTRACT WITH A WHOLESALE ELECTRIC SUPPLIER, THE
QUALIFYING
RETAIL UTILITY SHALL ACQUIRE THE MAXIMUM AMOUNT ALLOWED BY
THE
CONTRACT. FOR ANY SHORTFALLS TO THE AMOUNTS ESTABLISHED BY
THE
COMMISSION
PURSUANT TO PART (C)(I), THE QUALIFYING RETAIL UTILITY
SHALL
ACQUIRE
AN EQUIVALENT AMOUNT OF EITHER (I) RENEWABLE ENERGY
CREDITS,
(II)
DOCUMENTED AND VERIFIED ENERGY SAVINGS THROUGH ENERGY
EFFICIENCY
AND
CONSERVATION PROGRAMS, OR (III) A COMBINATION OF BOTH. ANY
CONTRACT
ENTERED INTO BY A QUALIFYING RETAIL UTILITY AFTER THE
EFFECTIVE
DATE
OF THIS ARTICLE SHALL NOT CONFLICT WITH THIS ARTICLE.
(D)
A SYSTEM OF TRADABLE RENEWABLE ENERGY CREDITS THAT MAY BE USED
BY
A
QUALIFYING RETAIL UTILITY TO COMPLY WITH THIS STANDARD. THE
COMMISSION
SHALL
ALSO ANALYZE THE EFFECTIVENESS OF UTILIZING ANY REGIONAL
SYSTEM
OF
RENEWABLE ENERGY CREDITS IN EXISTENCE AT THE TIME OF ITS
RULEMAKING
PROCESS
AND DETERMINE IF THE SYSTEM IS GOVERNED BY RULES THAT ARE
CONSISTENT
WITH THE RULES ESTABLISHED FOR THIS ARTICLE.
(E)
A STANDARD REBATE OFFER PROGRAM. EACH QUALIFYING RETAIL
UTILITY
SHALL MAKE AVAILABLE TO ITS RETAIL ELECTRICITY CUSTOMERS
A
STANDARD REBATE OFFER OF A MINIMUM OF $2.00 PER WATT FOR
THE
INSTALLATION OF ELIGIBLE SOLAR ELECTRIC GENERATION ON
CUSTOMERS'
PREMISES UP TO A MAXIMUM OF ONE-HUNDRED
KILOWATTS
PER INSTALLATION. SUCH OFFER SHALL ALLOW
CUSTOMER'S
RETAIL ELECTRICITY CONSUMPTION TO BE OFFSET BY THE
SOLAR
ELECTRICITY GENERATED. TO THE EXTENT THAT SOLAR
ELECTRICITY
GENERATION EXCEEDS THE CUSTOMER'S CONSUMPTION
DURING
A BILLING MONTH, SUCH EXCESS ELECTRICITY SHALL BE
CARRIED
FORWARD AS A CREDIT TO THE FOLLOWING MONTH'S
CONSUMPTION.
TO THE EXTENT THAT SOLAR ELECTRICITY GENERATION
EXCEEDS
THE CUSTOMER'S CONSUMPTION DURING A CALENDAR YEAR,
THE
CUSTOMER SHALL BE REIMBURSED BY THE QUALIFYING RETAIL
UTILITY
AT ITS AVERAGE HOURLY INCREMENTAL COST OF ELECTRICITY
SUPPLY
OVER THE PRIOR TWELVE MONTH PERIOD. THE QUALIFYING RETAIL
UTILITY
SHALL NOT APPLY UNREASONABLY BURDENSOME INTERCONNECTION
REQUIREMENTS
IN CONNECTION WITH THIS STANDARD REBATE OFFER.
ELECTRICITY
GENERATED UNDER THIS PROGRAM SHALL BE ELIGIBLE FOR THE
QUALIFYING
RETAIL UTILITY'S COMPLIANCE WITH THIS ARTICLE.
(F)
POLICIES FOR THE RECOVERY OF COSTS INCURRED WITH RESPECT TO
THESE
STANDARDS
FOR QUALIFYING RETAIL UTILITIES THAT ARE SUBJECT TO RATE
REGULATION
BY THE COMMISSION. SUCH POLICIES SHALL INCLUDE:
(I)
ALLOWING QUALIFYING RETAIL UTILITIES TO EARN AN EXTRA PROFIT ON
THEIR
INVESTMENT
IN RENEWABLE ENERGY TECHNOLOGIES IF THESE INVESTMENTS
PROVIDE
NET ECONOMIC BENEFITS TO CUSTOMERS AS DETERMINED BY THE
COMMISSION.
THE ALLOWABLE EXTRA PROFIT IN ANY YEAR SHALL BE THE
QUALIFYING
RETAIL UTILITY'S MOST RECENT COMMISSION AUTHORIZED RATE OF
RETURN
PLUS A BONUS LIMITED TO 50% OF THE NET ECONOMIC BENEFIT.
(II)
ALLOWING QUALIFYING RETAIL UTILITIES TO EARN THEIR MOST
RECENT
COMMISSION
AUTHORIZED RATE OF RETURN, BUT NO BONUS, ON INVESTMENTS IN
RENEWABLE
ENERGY TECHNOLOGIES IF THESE INVESTMENTS DO NOT PROVIDE A
NET
ECONOMIC BENEFIT TO CUSTOMERS.
(III)
IF THE COMMISSION APPROVES THE TERMS AND CONDITIONS OF A
RENEWABLE
ENERGY CONTRACT BETWEEN THE QUALIFYING RETAIL UTILITY AND
ANOTHER
PARTY, THE RENEWABLE ENERGY CONTRACT AND ITS TERMS AND
CONDITIONS
SHALL BE DEEMED TO BE A PRUDENT INVESTMENT, AND THE
COMMISSION
SHALL APPROVE RETAIL RATES SUFFICIENT TO RECOVER ALL JUST
AND
REASONABLE COSTS ASSOCIATED WITH THE CONTRACT. ALL CONTRACTS
FOR
ACQUISITION
OF ELIGIBLE RENEWABLE ELECTRICITY SHALL HAVE A MINIMUM
TERM
OF
20 YEARS. ALL CONTRACTS FOR THE ACQUISITION OF RENEWABLE
ENERGY
CREDITS
FROM SOLAR ELECTRIC TECHNOLOGIES LOCATED ON SITE AT
CUSTOMER
FACILITIES
SHALL ALSO HAVE A MINIMUM TERM OF TWENTY YEARS.
(IV)
A REQUIREMENT THAT QUALIFYING RETAIL UTILITIES CONSIDER
PROPOSALS
OFFERED
BY THIRD PARTIES FOR THE
RENEWABLE
ENERGY CREDITS. THE COMMISSION MAY DEVELOP STANDARD
TERMS
FOR THE SUBMISSION OF SUCH PROPOSALS.
(G)
RETAIL RATE IMPACT RULE. THE COMMISSION SHALL ANNUALLY ESTABLISH
A
MAXIMUM
RETAIL RATE IMPACT FOR THIS SECTION OF 50 CENTS ($0.50)
PER
MONTH
FOR THE AVERAGE RESIDENTIAL CUSTOMER OF A QUALIFYING
RETAIL
UTILITY.
THE RETAIL RATE IMPACT SHALL BE DETERMINED NET OF NEW
NONRENEWABLE
ALTERNATIVE
SOURCES OF ELECTRICITY SUPPLY REASONABLY
AVAILABLE
AT THE TIME OF THE DETERMINATION.
(H)
ANNUAL REPORTS. EACH QUALIFYING RETAIL UTILITY SHALL SUBMIT TO
THE
COMMISSION
AN ANNUAL REPORT THAT PROVIDES INFORMATION RELATING TO THE
ACTIONS
TAKEN TO COMPLY WITH THIS ARTICLE INCLUDING THE COSTS AND
BENEFITS
OF EXPENDITURES FOR RENEWABLE ENERGY. THE REPORT SHALL BE
WITHIN
THE TIME PRESCRIBED AND IN A FORMAT APPROVED BY THE
COMMISSION.
(I)
RULES NECESSARY FOR THE ADMINISTRATION OF THIS ARTICLE
INCLUDING
ENFORCEMENT
MECHANISMS NECESSARY TO ENSURE THAT EACH QUALIFYING
RETAIL
UTILITY COMPLIES WITH THIS STANDARD; AND PROVISIONS GOVERNING
THE
IMPOSITION
OF ADMINISTRATIVE PENALTIES ASSESSED AFTER A HEARING HELD
BY
THE
COMMISSION PURSUANT TO SECTION 40-6-109. UNDER NO
CIRCUMSTANCES
SHALL
THE COSTS OF ADMINISTRATIVE PENALTIES BE RECOVERED FROM
(2)
THE COMMISSION SHALL ESTABLISH ALL RULES CALLED FOR IN
SUBSECTIONS
(A)
THROUGH (G) OF THIS SECTION BY
(3)
IF A MUNICIPALLY OWNED ELECTRIC UTILITY OR A RURAL
ELECTRIC
COOPERATIVE
IMPLEMENTS A RENEWABLE ENERGY STANDARD SUBSTANTIALLY
SIMILAR
TO THIS SECTION 40-2-124, THEN THE GOVERNING BODY OF THE
MUNICIPALLY
OWNED ELECTRIC UTILITY OR RURAL ELECTRIC COOPERATIVE MAY
SELF-CERTIFY
ITS RENEWABLE ENERGY STANDARD AND UPON SELF-CERTIFICATION
WILL
HAVE NO OBLIGATIONS UNDER THIS ARTICLE. THE MUNICIPALLY
OWNED
UTILITY
OR COOPERATIVE SHALL SUBMIT A STATEMENT TO THE COMMISSION
THAT
DEMONSTRATES
SUCH UTILITY OR COOPERATIVE HAS A SUBSTANTIALLY SIMILAR
RENEWABLE
ENERGY STANDARD. IN ORDER FOR SUCH UTILITY OR
COOPERATIVE
TO SELF-CERTIFY, SUCH RENEWABLE ENERGY STANDARD
SHALL,
AT A MINIMUM, MEET THE FOLLOWING CRITERIA:
(A)
THE ELIGIBLE RENEWABLE ENERGY RESOURCES MUST BE LIMITED
TO
THOSE IDENTIFIED IN SUBSECTION 40-2-124(1)(A),
(B)
THE PERCENTAGE REQUIREMENTS MUST BE EQUAL TO OR GREATER
IN
THE SAME YEARS THAN THOSE IDENTIFIED IN SUBSECTION
40-2-124(1)(C)(I),
AND
(C)
THE UTILITY MUST HAVE AN OPTIONAL PRICING PROGRAM IN
EFFECT
THAT
ALLOWS RETAIL CUSTOMERS THE OPTION TO SUPPORT THROUGH
UTILITY
RATES EMERGING RENEWABLE ENERGY TECHNOLOGIES.
(4)
PROCEDURE FOR EXEMPTION AND INCLUSION - ELECTION.
(A)
THE BOARD OF DIRECTORS OF EACH QUALIFYING RETAIL UTILITY SUBJECT
TO
SECTION
40-2-124 MAY, AT ITS OPTION, SUBMIT THE QUESTION OF ITS
EXEMPTION
FROM
SECTION 40-2-124 CRS, TO ITS CONSUMERS ON A ONE METER EQUALS
ONE
VOTE
BASIS. APPROVAL BY A MAJORITY OF THOSE VOTING IN THE ELECTION
SHALL
BE
REQUIRED FOR SUCH EXEMPTION, PROVIDING THAT A MINIMUM OF 25%
OF
ELIGIBLE
CONSUMERS PARTICIPATES IN THE ELECTION.
(B)
THE BOARD OF DIRECTORS OF EACH MUNICIPALLY OWNED ELECTRIC
UTILITY
OR
RURAL ELECTRIC COOPERATIVE NOT SUBJECT TO SECTION 40-2-124 MAY,
AT
ITS
OPTION, SUBMIT THE QUESTION OF ITS INCLUSION IN SECTION 40-2-124
CRS,
TO
ITS CONSUMERS ON A ONE METER EQUALS ONE VOTE BASIS. APPROVAL BY
A
MAJORITY
OF THOSE VOTING IN THE ELECTION SHALL BE REQUIRED FOR SUCH
TITLES
AND TEXT TITLES AND TEXT
INCLUSION,
PROVIDING THAT A MINIMUM OF 25% OF ELIGIBLE CONSUMERS
PARTICIPATES
IN THE ELECTION.
40-2-125
Eminent Domain Restrictions. A QUALIFYING RETAIL UTILITY
SHALL
NOT
HAVE THE AUTHORITY TO CONDEMN OR EXERCISE THE POWER OF
EMINENT
DOMAIN
OVER ANY REAL ESTATE, RIGHT-OF-WAY, EASEMENT, OR OTHER
RIGHT
PURSUANT
TO SECTION 38-2-101, C.R.S., TO SITE THE GENERATION
FACILITIES
OF
A RENEWABLE ENERGY SYSTEM USED IN WHOLE OR IN PART TO MEET
THE
ELECTRIC
RESOURCE STANDARDS SET
SECTION
3. This article shall be effective on