380.8.
(a) (1) On or before July 1, 2024, the commission shall determine a definition of eligible resources for purposes of the Clean Energy Reliability Program established pursuant to this section.(2) “Eligible resources” shall not include fossil fuel resources, even if emissions of greenhouse gases arising from the use of the resource are offset by carbon capture or storage technologies.
(b) (1) The Clean Energy Reliability Program is hereby established, to be administered by the commission, upon appropriation by the Legislature, to provide incentive payments to qualifying load-serving entities that exceed procurement targets for eligible resources established by the commission in Rulemaking 20-05-003 or its successor.
(2) Funds for incentive payments made to load-serving entities pursuant to paragraph (1) shall be available only upon an appropriation by the Legislature for this purpose. Ratepayer funds shall not be used to provide incentives pursuant to this section.
(3) An incentive payment received by a load-serving entity shall be remitted to the customers of the load-serving entity as a bill credit or used in a manner determined by the commission to reduce ratepayer costs arising from the additional procurement of eligible resources.
(c) For purposes of the program, the commission shall do both of the following:
(1) Count eligible resources using applicable commission counting rules.
(2) Calculate an appropriate value for the incentive payments on or before July 1, 2024, that shall be adjusted annually based on the market value of energy capacity.
(d) In order to receive an incentive payment pursuant to the program, a load-serving entity shall do all of the following:
(1) Demonstrate that its eligible resources are online and participating in the Independent System Operator’s market.
(2) Disclose all contract information for the eligible resource to the commission, subject to confidential treatment as allowed by commission rules and applicable laws.
(3) Include a project labor agreement if both of the following conditions are satisfied:
(A) The load-serving entity enters into a contract for the eligible resource on or after January 1, 2024, and the eligible resource comes online on or after January 1, 2024.
(B) The eligible resource has a capacity of 5 megawatts or more.
(4) Include a prevailing wage requirement if both of the following conditions are satisfied:
(A) The load-serving entity enters into a contract for the eligible resource on or after January 1, 2024, and the eligible resource comes online on or after January 1, 2024.
(B) The eligible resource has a capacity of less than 5 megawatts.
(e) If a load-serving entity receives an incentive payment during a multiyear compliance period, but does not exceed its clean energy capacity requirements or targets in a subsequent year of the compliance period, the commission shall not provide incentive payments to the load-serving entity for any year that it failed to exceed its clean energy capacity requirements or targets.
(f) In administering the Clean Energy Reliability Program pursuant to this section, the commission shall evaluate how the incentive payments and potential additional procurement made by some load-serving entities pursuant to this section should be appropriately balanced with rules regarding fines for noncompliance with procurement orders and associated backstop procurement obligations on the large electrical corporations for deficient procurement by other load-serving entities. The commission may adjust program rules to encourage resource development in the market, while ensuring state funding for purposes of this section does not inadvertently support load-serving entities that are deficient in the procurement required by the commission through Rulemaking 20-05-003 or its successor. In conducting the evaluation, the commission shall consider the Legislature’s intent to ensure reliability and new resource development while minimizing ratepayer costs.