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Legislation Document
SPONSOR:
Rep. Heffernan & Rep. Minor-Brown & Sen. Hansen
Reps. Gorman, K. Johnson, Morrison, Romer, Snyder-Hall, Gray, Griffith, Lambert, Ortega, Phillips; Sens. Hoffner, Wilson, Pinkney, Seigfried
HOUSE OF REPRESENTATIVES
153rd GENERAL ASSEMBLY
HOUSE BILL NO. 445
AN ACT TO AMEND TITLE 26 AND TITLE 29 OF THE DELAWARE CODE RELATING TO LARGE ENERGY USE FACILITIES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend § 102, Title 26 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and by redesignating accordingly:
§ 102. Definitions.
As used in this title, unless the context otherwise requires:
(2) “Large energy use facility” means a facility that uses or is able to use 30 megawatts or more and is primarily engaged in providing a service described under code 518210 of the 2022 North American Industry Classification System.
Section 2. Amend § 202, Title 26 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 202. Limitations on jurisdiction of Commission.
(f) Except insofar as may be necessary to implement Chapter 10 of this title regarding the establishment of retail
competition,
competition and as may be necessary to ensure large energy use facilities do not negatively affect the reliability and affordability of the public electric grid,
the Commission shall have no supervision or regulation over any electric supplier.
Section 3. Amend Chapter 80, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and redesignate accordingly:
§ 8052. Definitions.
For the purposes of this subchapter:
(3) “Large energy use facility” means as defined under § 102 of Title 26.
§ 8066. Large energy use facilities.
(a) Large energy use facilities may not operate in the state unless the facility produces sufficient power in the state to support its operations, subject to subsection (b) of this section. All power generated in the state must meet the renewable energy portfolio standards established under Subchapter III of Chapter 1 of Title 26, except that a facility may use a combination of one or more of the following to meet the percentage thresholds established therein:
a. An eligible energy resource as defined in Subchapter III of Chapter 1 of Title 26.
b. Nuclear power.
(b) A large energy use facility that does not anticipate producing sufficient power within the state to support its operations immediately must submit to the Public Service Commission a plan to increase the facility’s energy production in the State each year so that the facility is producing 100% of its annual energy needs within 10 years of commencing operations.
(1) New energy production generation must be sought out and funded by the large energy use facility or in part by the large energy use facility.
(2) The large energy use facility may not connect to the public electric grid until it has at least 25% of its required energy generation online. The energy generation must meet the renewable energy portfolio standards under Subchapter III of Chapter I of Title 26, except that a facility may use a combination of one or more of the following to meet the percentage thresholds established therein:
a. An eligible energy resource as defined in Subchapter III of Chapter 1 of Title 26.
b. Nuclear power.
(3) The large use energy facility may not connect to the public electric grid unless it has entered a 30-year binding contract with the Public Service Commission that contains, at a minimum, a guaranteed insurance bond that pays into the General Fund if the large energy use facility attempts to terminate the contract or goes bankrupt.
(c) A large energy use facility that fails to produce sufficient renewable energy in the state to support its obligations in a calendar year, or the planned amount of energy if subject to an agreement under subsection (b) of this section, must pay a penalty in an amount determined by the Public Service Commission, which must be sufficient to cover the costs of producing the energy or creating the infrastructure that the facility failed to produce or create.
(d) A large energy use facility must pay for any upgrades to transmission and energy delivery required by the facility, as well as new energy generation facilities, as determined by the Public Service Commission. Any costs incurred by the Public Service Commission to make determinations or manage the requirements of this section with respect to a large energy use facility may also be recovered from the large energy use facility.
SYNOPSIS
This Act requires large energy use facilities to produce renewable energy within the state to power their operations to prevent a drain on the electric grid. It provides for a “ramp-up” period requiring that a large energy use facility provide a plan to the Public Service Commission to ramp up their energy production within the state each year so that by the 10th year of operations, the facility is producing 100% of its energy usage through in-state production.
This Act also allows the Public Service Commission to regulate electric suppliers insofar as necessary to ensure that large energy use facilities do not negatively affect the reliability of the electric grid.