The following report provides a monthly summary of proposed and recently enacted legislative and regulatory policy affecting the renewable energy markets in the United States. It also serves as the first iteration of a Karbone renewable energy policy commentary series. The series will be updated regularly on a monthly basis.
On May 8th, the Connecticut Senate approved SB 9, seeking to restructure the state’s renewable energy program. The bill includes a boost to the RPS market, an extension of the ZREC program and changes to the net-metering policy in the state. Karbone will further detail the impact of this bill on the broader NEPOOL Class I REC market in an upcoming research report.
The State of Connecticut has two proposed bills that could potentially affect Renewable Portfolio Standards (RPS). On January 22, 2013, Rep. Lawrence Miller (R) introduced House Bill (HB) 5475, which aims to provide additional time for compliance with the RPS requirements by extending each deadline beginning in 2016. On January 25, 2013, Rep. John E Piscopo (R) introduced HB 6086 with the purpose of amending general statutes to “include all types of hydropower as a Class I renewable energy source”. All hydropower currently defined as Class II renewable energy sources would be included in the Class I renewable energy source classification, according to the bill’s statement of purpose.
Pricing in the CT Class 1 REC markets have retreated on the back of impending policy developments. Connecticut Senate Bill (SB) 450 contains a proposal supporting the development of Micro-Grids, providing for Combined Heat and Power (CHP) generation to qualify as Class 1 Renewable Energy Credits (RECs). Micro-Grids are defined as small-scale localized grids located in the state of CT. CHP is currently classified as a CT Class 3 REC. Ahead of this news, Class 3 RECs were well offered, with value pegged just above the market floor of $10.