Senate Leadership
June 2, 2007
Williams, Fonfara Lead Passage of Landmark Energy Bill
High-tech efficiency, new generation, renewable energy, consumer choice are all part of plan to put consumers over special interests
Senator John Fonfara, co-chair of the Energy & Technlogy Committee and a principle author of HB 7432, An Act Concerning Electricity and Energy Efficiency, answers questions about the bill on the floor of the Senate. (June 2, 2006)
Following months of research and negotiations, state Senate President Pro Tempore Donald E. Williams, Jr. (D-Brooklyn) and state Sen. John Fonfara (D-Hartford) today led passage in the state Senate of a landmark energy bill that represents a comprehensive plan for the energy needs of the state. The bill was passed 32 to 3 and now heads to the governor.
Sen. Williams noted it was a long and complicated process to arrive at the finished product. "Last summer, we held a series of energy forums, taking input from the public, advocates and industry representatives. Our goal throughout this entire process was to put the consumer first. We were not restricted by any particular ideology--whatever delivers the best deal for consumers is what we support. The end result is landmark legislation that promotes renewable energy, reduces demand, cuts greenhouse gas emissions, and helps reduce energy costs."
"The primary objective of this legislation is to target the rising demand for electricity on the hottest days of the year which costs consumers hundreds of millions of dollars annually," Sen. Fonfara said. "By combining energy efficiency technologies and smart metering, we are providing ratepayers with the ability to control their energy use and costs."
The major provisions of the energy bill are:
ENERGY EFFICIENCY
- Appropriates approximately $70 million to the Conservation Fund
- Expands green building requirements for state facilities and extends the requirements to apply to school construction projects and to all large new construction projects
- Requires the Office of Policy and Management to develop a plan to improve energy management in state facilities
- Authorizes $30 million in bonding for energy efficiency in state buildings
- Requires equipment bought by the state to meet Energy Star standards
- Provide for grants to people who replace their furnaces with more efficient models
- Requires electric companies to provide rebates for people who replace air conditioners with more efficient models
- Extends and expands sales tax exemptions for energy efficiency
- Increases corporation tax credits for energy conservation investments at non-profit organizations and low-income housing
- Establishes local option property tax exemption for hybrids and other energy-efficient vehicles
- Establishes energy efficiency standards for several products including certain lamps, walk-in coolers, and transformers
- Requires the Energy Conservation Management Board to develop a comprehensive electric and gas residential conservation program
- Establishes gas and oil conservation programs funded by energy tax revenues that exceed the levels in the revenue estimate
NEW GENERATION
- Requires the electric companies to submit a plan to the state Department of Public Utility Control (DPUC), for its approval, to build peaking generation plants; if approved, the rates charged by these plants would be based on their costs, rather than market rates
- Requires Connecticut Innovations, Inc. to provide grants to municipalities for renewable energy sources and cogeneration (technology that simultaneously process power and heat); authorizes $50 million in bonding for the program
- Requires the Department of Environmental Protection (DEP) and DPUC to take steps to permit greater use of emergency generation and similar resources in a way that reduces rates and decreases air emissions
- Expands funding for distributed generation (technologies like micro-turbines and fuel cells)
- Requires DPUC to study having the state serve as the builder of last resort for power plants
- Allows DPUC to order electric companies to submit proposals starting in 2009 to build power plants if the market does not provide enough capacity
RENEWABLE ENERGY
- Appropriates approximately $25 million to the Clean Energy Fund
- Increases the proportion of power that must come from renewable resources
- Requires DPUC to establish a grant program for small-scale generation projects in businesses and state building powered by solar energy, fuel cells, etc. Authorizes $50 million in bonding for the program
- Exempts several renewable energy technologies from the sales tax
- Establishes mandatory property tax exemption for renewable energy technologies
“ENERGY EFFICIENCY PARTNERSHIP” PROGRAM
- Requires the Energy Conservation Management Board (ECMB) and the Clean Energy Fund to evaluate and approve technologies that can be used for the program
- Allows energy management services companies and electric company customers to apply to the DPUC for funding for supply and demand side measures (e.g., renewable generation and conservation measures, respectively) that reduce electric demand
- Measures must have at least a two-to-one payback ratio
- Requires DPUC to develop a low-interest loan program to finance the cost of the technologies
ADVANCED METERING
- Requires electric companies to develop plans to deploy advanced meters, e.g., meters that can support prices that vary as demand goes up and down
- Plan must allow deployment of meters and infrastructure statewide by 1/1/09
- Meters will be available only to customers who request one
MEASURES TO MAKE IT EASIER FOR CUSTOMERS TO CHOOSE COMPETITIVE SUPPLIERS
- Requires electric companies to provide information about competitive suppliers when a customer begins service or asks about rates or conservation programs
- Allows suppliers to include information about their offers in electric company bills once per quarter
ENERGY ASSISTANCE
- Extends winter moratorium when electric companies are barred from terminating service to hardship customers
- Expands funding opportunities for Operation Fuel (a non-profit, energy-assistance organization)
- Provides funding to help low-income customers pay off their electric arrearages
- Broadens requirements for the Department of Social Services to buy fuel at discounted prices for energy assistance recipients
- Maintains special rate for all-electric homes
OTHER PROVISIONS
- Requires the DEP to auction allowances under the Regional Greenhouse Gas Initiative and use the proceeds to fund conservation and other programs that benefit ratepayers
- Allows municipalities to establish Energy Improvement Districts, with bonding and other powers, to develop small power plants and conservation programs
- Requires electric and gas companies to decouple their sales from their revenues
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Senator Williams’ Larry Cook |
Listing of Leadership’s recent press releases. |
Senator Looney’s Larry Cook |
