September 29, 2011

Hot Topics at OLR: New Energy Efficiency and Clean Energy Programs


OLR Report 2011-R-0326 summarizes PA 11-80, with a particular focus on (1) new efficiency programs that are available for historic buildings, (2) the newly created Connecticut Clean Energy Finance and Investment Authority (CEFIA), and (3) how the act affects the Energy Efficiency Fund.

PA 11-80 creates DEEP by merging the departments of Environmental Protection (DEP) and Public Utility Control and transferring their powers and duties, and those of the DEP commissioner, to DEEP and its commissioner. The act also transfers the energy-related powers and duties of Office of Policy and Management and its secretary regarding energy to DEEP and its commissioner.

The act requires DEEP to establish several efficiency programs, including one to encourage the replacement of heating equipment with more energy efficient equipment. It transfers, from the Department of Social Services to DEEP, the administration of a weatherization program that serves low-income households. It allows municipalities to create a program to provide loans to local residents and businesses for the installation of energy efficiency measures and renewable energy systems. The loans are paid by an assessment on the affected property.

The act does not specifically address historic buildings. But it appears that these buildings would be eligible for all of the efficiency and renewable energy programs established by the act that address energy use in buildings. In particular, these buildings may be able to take advantage of programs the act establishes to provide financing and financial incentives for replacement heating systems.

The act (1) creates CEFIA to replace the board that is responsible for developing the plan on how money in the Clean Energy Fund is spent, (2) grants the authority a broad range of powers and duties, (3) places the fund under CEFIA rather than Connecticut Innovations, Inc., (4) allows CEFIA to receive additional specified revenues, and (5) expands how the fund can be used.

By law, the electric and gas companies must develop plans for spending money in the Energy Efficiency Fund. The act requires DEEP to oversee the programs in the electric company plans and specifies how it must do so. DEEP must implement an independent, comprehensive evaluation, measuring, and verification process regarding these plans.

For more information, please read the report.