By William Opalka

A New York clean energy developer has challenged a three-state effort to bring more renewable energy to New England.

Allco Renewable Energy Group filed suit against Connecticut in U.S. District Court in New Haven, claiming the joint effort and Connecticut’s renewable energy subsidies violate the U.S. Constitution’s Interstate Commerce Clause (3:15-cv-00608-CSH). Allco is also asking for an injunction to stop the joint procurement plan by Connecticut, Massachusetts and Rhode Island.

In February, the states issued a draft solicitation seeking more than 2,300 GWh of renewable energy per year. (See New England States Combine on Clean Energy Procurement.)

Allco CEO Thomas Melone unsuccessfully sued over Connecticut’s previous clean power plan, claiming the state illegally excluded renewable energy credits (RECs) generated by his facilities in other states from participating in Connecticut’s programs. RECs represent the environmental attributes of a clean energy project and are sold and traded separately from the energy produced. That case is under appeal. The claims made in that suit under the dormant Commerce Clause and the Federal Power Act are repeated in the new lawsuit.

Connecticut counts RECs from other New England states, and from New York and Canada, under certain circumstances. Melone is seeking to have his solar facilities in Georgia and New York qualified. The determination should be made by the Federal Energy Regulatory Commission and not the states, the suit says.

“The dormant Commerce Clause prohibits a state from using its regulatory power to discriminate against out-of-state businesses,” according to the suit, filed on April 26.

Allco sued the Connecticut Department of Energy and Environmental Protection and the state’s Public Utility Regulatory Authority.

“The three-state procurement is an innovative approach to meeting our renewable energy goals and securing clean power at the lowest possible price for our families and businesses,” Dennis Schain, a spokesman for DEEP said in a written statement to the Hartford Courant. “We believe the procurement is legally sound and will meet court challenges.”