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					                                   South Carolina General Assembly
                                       119th Session, 2011-2012

S. 719

STATUS INFORMATION

General Bill
Sponsors: Senators Matthews and Leventis
Document Path: l:\s-res\jwm\002ener.kmm.jwm.docx

Introduced in the Senate on March 22, 2011
Currently residing in the Senate Committee on Judiciary

Summary: Establish a renewable energy and efficiency portfolio standard for electric power suppliers


HISTORY OF LEGISLATIVE ACTIONS

    Date     Body     Action Description with journal page number
 3/22/2011   Senate   Introduced and read first time (Senate Journal-page 12)
 3/22/2011   Senate   Referred to Committee on Judiciary (Senate Journal-page 12)
  1/9/2012   Senate   Referred to Subcommittee: Rankin (ch), Hutto, Campbell

View the latest legislative information at the LPITS web site


VERSIONS OF THIS BILL

3/22/2011
 1
 2
 3
 4
 5
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 7
 8
 9                            A BILL
10
11   TO AMEND TITLE 58 OF THE 1976 CODE, RELATING TO
12   PUBLIC UTILITIES, SERVICES, AND CARRIERS, BY
13   ADDING CHAPTER 39 TO ESTABLISH A RENEWABLE
14   ENERGY AND EFFICIENCY PORTFOLIO STANDARD FOR
15   ELECTRIC POWER SUPPLIERS, TO ACCOUNT FOR
16   INCREMENTAL COSTS INCURRED BY AN ELECTRIC
17   POWER SUPPLIERS, TO PROVIDE THAT THE PUBLIC
18   SERVICE COMMISSION MUST ENFORCE THE STANDARD,
19   MONITOR COMPLIANCE WITH THIS CHAPTER, AND
20   CARRY OUT CERTAIN OTHER DUTIES, TO PROVIDE
21   THAT THE COMMISSION MUST MAKE AN ANNUAL
22   REPORT    OF     ENFORCEMENT      ACTIONS      AND
23   COMPLIANCE, TO PROVIDE STANDARDS FOR BIOMASS
24   COMBUSTION PROCESSES AT NEW RENEWABLE
25   ENERGY FACILITIES THAT DELIVER ELECTRIC POWER
26   TO AN ELECTRIC POWER SUPPLIER, AND TO PROVIDE
27   FOR PENALTIES FOR NON-COMPLIANCE, TO AMEND
28   CHAPTER 31, TITLE 58 BY ADDING SECTION 58-31-610 TO
29   PROVIDE THAT THE PUBLIC SERVICE AUTHORITY MUST
30   COMPLY WITH THE STANDARDS ESTABLISHED IN THIS
31   ACT; TO AMEND CHAPTER 49, TITLE 33 BY ADDING
32   SECTION 33-49-150 TO PROVIDE THAT CERTAIN
33   ELECTRIC COOPERATIVES MUST COMPLY WITH THE
34   STANDARDS ESTABLISHED IN THIS ACT; AND TO
35   DEFINE NECESSARY TERMS.
36
37   Be it enacted by the General Assembly of the State of South
38   Carolina:
39
40   SECTION 1. Title 58 of the 1976 Code is amended by adding:
41
42                            “Chapter 39

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 1
 2                          Renewable Energy
 3                and Energy Efficiency Portfolio Standard
 4
 5      Section 58-39-10. The General Assembly finds and declares
 6   that:
 7      (1) In order to attain a target of generating twenty percent of
 8   total retail sales of electricity in South Carolina from eligible
 9   renewable energy resources by December 31, 2022, and for the
10   purposes of increasing the diversity, reliability, public health, and
11   environmental benefits of the energy mix, it is the intent of the
12   General Assembly that the South Carolina Public Service
13   Commission, the South Carolina Public Service Authority, and any
14   electrical cooperative regulated pursuant to Title 33, Chapter 49
15   implement the South Carolina Renewable Energy Portfolio
16   Standards described in this article.
17      (2) Increasing South Carolina’s reliance on eligible renewable
18   energy resources will promote stable electricity prices, protect
19   public health, improve environmental quality, stimulate sustainable
20   economic development, create new employment opportunities, and
21   reduce reliance on imported fuels.
22      (3) The development of eligible renewable energy resources in
23   South Carolina will foster the development of new ‘green’ jobs
24   and forestry-related jobs, as well as more efficient utilization of
25   South Carolina’s abundant forest resources.
26      (4) The development of eligible renewable energy resources
27   and the delivery of the electricity generated by those resources to
28   customers in South Carolina will ameliorate air quality problems
29   throughout the State and improve public health by reducing the
30   burning of fossil fuels and the associated environmental impacts
31   and by reducing in-state fossil fuel consumption.
32      (5) The South Carolina Renewable Energy Portfolio Standards
33   are intended to complement the Energy Supply and Efficiency
34   Program established pursuant to Title 58, Chapter 37 and the South
35   Carolina Energy Efficiency Act administered by the State Energy
36   Office.
37      (6) New and modified electric transmission facilities will be
38   necessary to facilitate the State achieving its renewable energy
39   portfolio standards.
40
41     Section 58-39-20. (A) As used in this chapter:
42       (1) ‘Combined heat and power system’ means a system that
43   uses waste heat to produce electricity or useful, measurable

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 1   thermal or mechanical energy at a retail electric customer’s
 2   facility.
 3         (2) ‘Commission’ means the South Carolina Public Service
 4   Commission.
 5         (3) ‘Demand-side management’ means a program conducted
 6   or proposed by a producer, supplier, or distributor of energy for the
 7   reduction or more efficient use of energy requirements of the
 8   producer’s, supplier’s, or distributor’s customers, including, but
 9   not limited to, conservation and energy efficiency, load
10   management, cogeneration, and renewable energy technologies.
11         (4) ‘Electric power supplier’ means any electrical utility, as
12   defined in Section 58-27-10, the South Carolina Public Service
13   Authority, any electric membership cooperative, any municipality,
14   or any other entity located in the State that sells electric power to
15   retail electric power customers.
16         (5) ‘Energy efficiency measure’ means an equipment,
17   physical, or program change implemented after July 1, 2011, that
18   results in less energy used to perform the same function. ‘Energy
19   efficiency measure’ includes, but is not limited to, energy
20   produced from a combined heat and power system that uses
21   nonrenewable energy resources. ‘Energy efficiency measure’ does
22   not include demand-side management.
23         (6) ‘Renewable energy certificate’ means a tradable
24   instrument that is equal to one megawatt hour of electricity or
25   equivalent energy supplied by a renewable energy facility or
26   reduced by implementation of an energy efficiency measure that is
27   used to track and verify compliance with the requirements of this
28   chapter as determined by the commission. A ‘renewable energy
29   certificate’ does not include the related emission reductions,
30   including, but not limited to, reductions of sulfur dioxide, oxides
31   of nitrogen, mercury, or carbon dioxide.
32         (7) ‘Renewable energy facility’ means a facility with a
33   generation capacity of more than one megawatt that was placed
34   into service on or after July 1, 2011, and that:
35            (a) generates electric power by the use of a renewable
36   energy resource;
37            (b) generates useful, measurable combined heat and
38   power derived from a renewable energy resource; or
39            (c) is a solar thermal energy facility.
40         (8) ‘Renewable energy resource’ means a solar electric,
41   solar photovoltaic, solar thermal, wind, hydropower, geothermal,
42   or ocean current or wave energy resource; a biomass resource,
43   including agricultural byproduct, animal byproduct, wood

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 1   including bark, wood chips, sawdust, and lignin in spent pulping
 2   liquors, energy crops, algae, and landfill or biologically derived
 3   methane; fuel cells utilizing renewable fuels; waste heat derived
 4   from a renewable energy resource and used to produce electricity
 5   or useful, measurable thermal energy at a retail electric customer’s
 6   facility; or hydrogen derived from a renewable energy resource.
 7   ‘Renewable energy resource’ does not include peat, a fossil fuel, or
 8   nuclear energy resource.
 9
10      Section 58-39-30. (A) Each electric power supplier in the State
11   shall be subject to a Renewable Energy and Energy Efficiency
12   Portfolio Standard according to the following schedule measured
13   as a percentage of annual retail sales:
14
15      Calendar Year                      REPS Requirement
16         2015                                 4%
17         2016                                 7%
18         2017                                 10%
19         2018                                 12%
20         2019                                 14%
21         2020                                 16%
22         2021                                 18%
23         2022 and thereafter                  20%
24      (B) An electric power supplier meets the requirements of this
25   chapter by:
26         (1) generating electric power at a renewable energy facility;
27         (2) reducing      energy     consumption        through      the
28   implementation of an energy efficiency measure; provided,
29   however, that an electric public utility subject to the provisions of
30   this chapter may meet up to twenty-five percent of the
31   requirements of this chapter through savings due to
32   implementation of energy efficiency measures;
33         (3) purchasing electric power from a renewable energy
34   facility. Electric power purchased from a renewable energy
35   facility located outside the geographic boundaries of the State shall
36   meet the requirements of this chapter if the electric power is
37   delivered to a public utility that provides electric power to retail
38   electric customers in the State; provided, however, the electric
39   public utility shall not sell the renewable energy certificates
40   created pursuant to this paragraph to another electric public utility;
41         (4) purchasing renewable energy certificates derived from
42   in-state renewable energy facilities. If an electric power supplier
43   sells electricity in any other state and is subject to renewable

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 1   energy portfolio requirements in that state, they shall list any such
 2   requirement and shall indicate how it satisfied those renewable
 3   energy portfolio requirements. To prevent double counting, the
 4   electric distribution supplier or electric generation company shall
 5   not satisfy South Carolina’s alternative energy portfolio
 6   requirements using alternative energy used to satisfy another
 7   state’s portfolio requirements; or
 8        (5) using electric power that is supplied by a renewable
 9   energy facility or saved due to the implementation of an energy
10   efficiency measure that exceeds the requirements of this chapter
11   for any calendar year as a credit towards the requirements of this
12   chapter in the following calendar year or sell the associated
13   renewable energy certificates.
14
15      Section 58-39-40. (A) For purposes of this section, the term
16   ‘incremental costs’ means all reasonable and prudent costs
17   incurred by an electric power supplier to:
18        (1) comply with the requirements of Section 58-39-30 that
19   are in excess of the electric power supplier’s avoided costs other
20   than those costs recovered pursuant to Article 7, Chapter 27, Title
21   58 and Section 58-31-30(A)(13);
22        (2) fund research that encourages the development of
23   renewable energy, energy efficiency, or improved air quality,
24   provided those costs do not exceed one million dollars per year;
25   and
26        (3) comply with any federal mandate that is similar to the
27   requirements of Section 58-39-30 that exceed the costs the electric
28   power supplier would have incurred under that section in the
29   absence of the federal mandate.
30      (B) All reasonable and prudent costs incurred by an electric
31   power supplier to comply with any federal mandate that is similar
32   to the requirements of Section 58-39-30, including, but not limited
33   to, the avoided costs associated with a federal mandate that
34   exceeds the avoided costs the electric power supplier would have
35   incurred pursuant to Section 58-39-30 in the absence of the federal
36   mandate, shall be recovered by the electric power supplier in an
37   annual rider charge assessed in accordance with a schedule to be
38   determined by the commission that may be increased by the
39   commission on a pro rata basis to allow for full and complete
40   recovery of all reasonable and prudent costs incurred to comply
41   with the federal mandate.
42


     [719]                             5
 1      Section 58-39-50. The          commission      shall    promulgate
 2   regulations to implement the provisions of this chapter which shall:
 3         (1) provide for the monitoring of compliance with and
 4   enforcement of the requirements of this chapter;
 5         (2) ensure that energy credited toward compliance with the
 6   provisions of this chapter not be credited toward any other
 7   purpose, including another renewable energy portfolio standard or
 8   voluntary renewable energy purchase program in this State or any
 9   other state;
10         (3) establish standards for interconnection of renewable
11   energy facilities and other nonutility owned generation to an
12   electric public utility’s distribution system; provided, however, that
13   the commission shall adopt, if appropriate, federal interconnection
14   standards;
15         (4) ensure that the owner and operator of each renewable
16   energy facility that delivers electric power to an electric power
17   supplier is in substantial compliance with all federal and state laws,
18   regulations, and rules for the protection of the environment and
19   conservation of natural resources;
20         (5) consider whether it is in the public interest to adopt rules
21   for electric public utilities for net metering of renewable energy
22   facilities with a generation capacity of one megawatt or less;
23         (6) develop procedures to track and account for renewable
24   energy certificates, including ownership of renewable energy
25   certificates that are derived from a customer owned renewable
26   energy facility as a result of any action by a customer of an electric
27   power supplier that is independent of a program sponsored by the
28   electric power supplier.
29
30     Section 58-39-60. The commission must annually report
31   concerning activities taken by it to implement, and by electric
32   power suppliers to comply with, the requirements of this chapter.
33   The report must be submitted no later than January thirty first to
34   the General Assembly, the State Energy Office, and the Joint
35   Legislative Committee on Energy. The report shall include any
36   public comments received regarding direct, secondary, and
37   cumulative environmental impacts of the implementation of the
38   requirements of this chapter. Electric power suppliers must
39   annually file a report with the commission, on a date set by the
40   commission, concerning their activities taken to comply with the
41   requirements of this chapter.
42


     [719]                             6
 1      Section 58-39-70. As used in this section, ‘reasonably available
 2   control technology’ means an emissions limitation based upon
 3   control technology that is reasonably available and both
 4   technologically and economically feasible. A biomass combustion
 5   process at any new renewable energy facility that delivers electric
 6   power to an electric power supplier shall meet the more stringent
 7   of either applicable federal or state emissions standards or
 8   reasonably available control technology. The South Carolina
 9   Department of Health and Environmental Control may adopt
10   regulations to implement this section.
11
12     Section 58-39-80. No later than January 1, 2013, the
13   commission shall develop, implement, and maintain an Internet
14   web site that allows online tracking of renewable energy
15   certificates in order to verify the compliance of electric power
16   suppliers with the renewable energy and energy efficiency
17   portfolio standard requirements contained in this chapter and to
18   facilitate the establishment of a market for the purchase and sale of
19   renewable energy certificates.
20
21      Section 58-39-90. If, after notice and hearing, the commission
22   determines that an electric power supplier has failed to comply
23   with the renewable energy and energy efficiency portfolio standard
24   requirements contained in this chapter, the commission shall
25   impose an alternative compliance payment on that electric power
26   supplier. The alternative compliance payment is equal to
27   forty-five dollars multiplied by the number of additional
28   alternative energy credits needed in order to comply with the
29   renewable energy and energy efficiency portfolio standard
30   requirements contained in this chapter. The alternative compliance
31   payments shall be utilized solely for projects that will increase the
32   amount of the renewable energy and energy efficiency portfolio
33   standards within the State from renewable resources.”
34
35   SECTION 2. Chapter 31, Title 58 of the 1976 Code is amended
36   by adding:
37
38     “Section 58-31-610. The Public Service Authority shall comply
39   with the standards and reporting requirements contained in the
40   Renewable Energy and Energy Efficiency Portfolio Standard
41   pursuant to Chapter 39, Title 58.”
42


     [719]                             7
 1   SECTION 3. Chapter 49, Title 33 of the 1976 Code is amended
 2   by adding:
 3
 4     “Section 33-49-150. Each electric cooperative subject to this
 5   act that sells electric power to retail electric power customers shall
 6   comply with the standards and reporting requirements contained in
 7   the Renewable Energy and Energy Efficiency Portfolio Standard
 8   pursuant to Chapter 39, Title 58.”
 9
10   SECTION 4. This act takes effect upon approval by the Governor.
11                            ----XX----
12




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