2007 Energy Legislation
Our state is facing a crisis with respect to electricity rates. With recent increases as high as 50 percent, Connecticut residents and businesses are now paying among the highest electric rates in the continental United States. Among those struggling to pay their electric bills each month are residents who have to make the choice between paying for prescriptions and turning the heat up, and businesses that are thinking of relocating or closing because they can no longer afford to keep their operations running in our state.
We passed comprehensive legislation that seeks to reduce our state's overall electric demand, particularly during the peak, most expensive periods, by investing in and encouraging the use of highly efficient and renewable energy technologies for individual residents and businesses. This legislation also strives to balance a smart statewide energy policy with environmental concerns, such as combating global warming. It promotes the use of cost-effective, environmentally friendly solutions to meet our energy needs.
Specific provisions of the bill include:
- Establishing a rebate program for the purchase and installation of certain replacement home heating equipment and for the replacement of residential air conditioners that do not meet federal Energy Star standards with ones that do. www.energystar.gov
- Expanding "green building" requirements for state facilities and school construction projects.
- Establishing, starting January 1, 2008, a local option property tax exemption for hybrid motor vehicles and those with fuel efficiencies of at least 40 miles per gallon. www.fueleconomy.gov
- Creating a sales tax exemption from January 1, 2008 until July 1, 2010, for all motor vehicles with city or highway fuel efficiencies of at least 40 miles per gallon. www.fueleconomy.gov
- Extending the end date of the annual winter moratorium, during which electric and gas utilities cannot terminate service to hardship customers who cannot pay their utility bills.
- Exempting certain energy efficiency products, such as insulation and programmable thermostats, permanently from the sales tax.
- Exempting Energy Star appliances from the sales tax until September 30, 2007. www.energystar.gov
- Lowering the interest rate for the Connecticut Housing Investment Fund's (CHIF) energy efficiency loan program and increasing, from $6,000 to $25,000, the maximum loan that CHIF can provide to owners of one- to four-unit residential properties under this program. www.chif.org
- Requiring Operation Fuel to establish a program to grant program for low-income people with high utility bill arrearages. www.operationfuel.org
- Establishing a comprehensive, statewide energy outreach and marketing program to educate consumers on the benefits of energy efficiency technology.
- Establishing incentives for businesses to invest in energy efficient technology.
- Requiring the Office of Policy and Management (OPM) to develop a plan to improve energy management in state facilities.
- Requiring the utility companies to annually assess our state's energy needs and present plans on how best to meet those needs.
- Expanding funding for distributed generation projects, such as micro-turbines and fuel cells.
- Increasing the proportion of the state's power requirements that must come from renewable resources.
- Requiring electric companies to develop a plan to deploy advanced meters, which will help consumers take greater control over their own energy costs. Meters will be available to all customers who request one by January 1, 2009.
- Requiring electric companies to provide information about competitive suppliers when a customer begins new service or inquires about rates or conservation programs.
- Requiring the Department of Environmental Protection to auction allowances under the Regional Greenhouse Gas Initiative and use the proceeds to fund conservation and other programs that benefit ratepayers.
