AN ACT CONCERNING ELECTRICITY AND ENERGY EFFICIENCY.

Under the bill, between July 1, 2007 and July 1, 2017, the Office of Policy and management (OPM) secretary must provide a rebate of up to $ 500 for the purchase and installation of certain replacement home heating equipment. The rebate decreases with income in the same way as the property tax credit against the income tax. The rebate is available for equipment installed in residential structures containing up to four dwelling units. Replacement gas furnaces must be Energy Star rated and oil and propane equipment must be at least 84% efficient. The bill caps total amount of rebates at $ 5 million annually.

Current law authorizes the issuance of up to $ 5 million in bonds for low interest energy efficiency loans. The bill, instead, authorizes the issuance of up to $ 5 million in bonds per year, and allows the proceeds to be used for the rebate program as well as the loan program.

The Energy Conservation Management Board (ECMB) must report to the Energy and Technology Committee on the cost-effectiveness of the rebate program by January 1, 2009.

The bill requires ECMB, in consultation with the electric companies, to establish a rebate program for residential customers who replace air conditioners that do not meet the federal Energy Star efficiency standards with ones that do. ECMB must run the program from January 1, 2008 to September 1, 2008. The rebate ranges from at least $ 25 to at least $ 100 for room air conditioners, depending on the cost of the new air conditioner. The bill provides a rebate of at least $ 500 to residential customers who replace a central air conditioning unit that does not meet the Energy Star standards with one that does. ECMB, in consultation with the Low-Income Energy Advisory Board, must establish program specifications for people who live in apartments. The program must be funded from the existing electric company conservation funds.

The DCP (1) must allow retailers to participate in the program only if they certify that the rebates go only to customers who turn in an air conditioner for replacement before buying a new one and (2) may fine retailers up to $ 10,000 if they inappropriately provide rebates.

ECMB must provide for the environmentally responsible disposal of the air conditioners and report to the Energy and Technology Committee by January 1, 2009 on the program's results.

Starting January 1, 2008, the bill requires DPUC to order that each intermediate or baseload electric generating facility with a rating of 65 megawatts or more have the capacity to burn either oil or gas on 48 hours notice if it is (1) currently fueled by one of these fuels and (2) owned by, or under contract to, an electric company. The bill allows DPUC to waive this requirement if it determines that it is in consumers' interest.

The bill requires DPUC, by July 1, 2007, to begin an uncontested case proceeding to study (1) the appropriate number of linemen needed for an electric company to maintain, repair, and extend its distribution lines under normal circumstances and under extraordinary circumstances, including storms; (2) whether the consolidation of repair facilities and personnel results in longer restoration times; (3) whether greater use of newer technology would reduce outages; and (4) the most effective ways of notifying the public of an outage and the status of the company's efforts to restore power. DPUC must report the proceeding results to the Energy and Technology Committee by February 1, 2008.

The bill requires each electric company to submit a plan to DPUC each January 1 for maintaining transmission and distribution systems along highways, in a format DPUC prescribes. The plan must include a summary of appropriate staffing levels.

By law, utility rates must be just sufficient to allow the utility to cover its operating and capital costs and attract needed capital. The bill specifies that operating costs include appropriate staffing levels. It also includes energy security as one of the responsibilities of utilities.

The bill requires the Siting Council, in conjunction with DPUC and the Coordinating Council of the Department of Emergency Management and Homeland Security, to conduct a contested case to investigate energy security with regard to siting of power plants and transmission facilities. The investigation must address planning, preparedness, and response and recovery capabilities. The Siting Council must begin the proceeding by September 1, 2007, and may conduct proceedings in executive session to protect sensitive information covered by a protective order.

The bill requires DPUC, in consultation with the Siting Council, to begin an uncontested case proceeding by July 1, 2007, to assess ways the state can ensure and enhance the reliability of generating facilities in the state during peak electric demand periods. The proceeding must, at a minimum, examine the:

1. current compliance status of generation facilities with existing on-site dual fuel storage and operational requirements,

2. existing inventory of fuel storage and fuel delivery resources available to supply generating facilities in the state,

3. amount of fuel delivery and storage infrastructure that would be needed to ensure the reliable operation of these facilities during peak demand periods,

4. value of firm delivery contracts and the appropriate level of such contracts, and

5. types of incentives that can be offered to the electric and gas industry to enhance the reliability of electric service during peak periods.

DPUC must seek input from interested parties, including the electric and gas industries, the Office of Consumer Counsel, the attorney general, and the entity that operates the New England power grid. DPUC must submit its findings and recommendations to the Energy and Technology Committee by February 1, 2008.

§§ 10, 11 — GREEN BUILDINGS-PUBLIC SECTOR, FUNDING FOR SCHOOL CONSTRUCTION

The bill broadens and increases the state's “green building” requirements. Under current law, state facilities costing $ 5 million or more, funded on or after January 1, 2007 (with limited exceptions for structures such as garages), must meet specified energy and environmental standards. The standards are a silver rating under the Leadership in Energy and Environmental Design (LEED) program or its equivalent. The OPM secretary, in consultation with the public works commissioner and the Institute for Sustainable Energy, must waive the requirements if he finds that the cost of compliance significantly outweighs the benefits.

Starting January 1, 2008, the bill modifies the requirements by eliminating the exceptions and limiting the current requirements to those state facilities where at least $ 2 million of the funding comes from the state. The bill also extends the requirements to the following types of projects with at least $ 2 million or more in state funding: (1) renovations to state facilities approved and funded on or after January 1, 2008 that cost $ 2 million or more, (2) new school construction projects authorized by the legislature on or after January 1, 2009 that cost $ 5 million or more, and (3) school renovation projects authorized by the legislature on or after this date costing at least $ 2 million. In all cases, the bill requires the institute, rather than the OPM secretary, to determine whether the cost of compliance significantly outweighs the benefits. The bill also requires all of these facilities to exceed the current building code energy efficiency standards (the 2004 edition of ASHRAE Standard 90. 1) by at least 20%.

The bill increases, by two percentage points, but not more than 100%, the reimbursement rate under the school construction grant program for those projects subject to the green building requirements. The school district must certify to the Education Department that the school will meet the standards.

EFFECTIVE DATE: October 1, 2007 for the increase in school construction grants, and January 1, 2008 for the remaining provisions

The bill establishes energy efficiency standards for various products. These include certain incandescent lamps, medium voltage transformers, bottled water dispensers, commercial hot food holding cabinets, portable electric spas, walk-in refrigerators and freezers, and pool heaters. In most cases, the standards go into effect January 1, 2009.

The bill establishes efficiency standards for residential furnaces and boilers purchased by the state on or after January 1, 2009. It requires the Department of Administrative Services and other purchasing agencies to buy appliances and equipment that meet federal Energy Star standards (it appears that the furnaces and boilers must meet the Energy Star standards and the standards established by the bill).

Under current law, DPUC, in consultation with OPM, must take several steps in implementing and revising the standards. The bill instead assigns these responsibilities to OPM, in consultation with DPUC.

The bill allows revenues from the systems benefits charge on electric bills to be used for the partnership program described in section 94, certain investments in connection with state facility energy efficiency programs described in section 101, and for costs associated with the summer 2007 conservation program established by section 119.

The bill requires ECMB, by October 1, 2007, to develop and estimate the cost of a comprehensive residential electric and gas conservation program. ECMB must do this in consultation with the electric and gas companies. The program must include:

1. an audit identifying appropriate conservation measures applicable to a customer's home or apartment;

2. a ranking of measures in terms of cost-effectiveness and peak electricity demand reductions;

3. a system that ranks customers to be assisted at least in part by their agreeing to install the measures that are the most cost-effective and reduce peak electricity demand;

4. an oversight system that helps:

(a) renters get their landlords' permission when this is needed to install measures and

(b) all customers obtain incentives, other cost savings, and financing and identify knowledgeable contractors to successfully install the measures;

5. financing for conservation measures on the utility bill over a period that does not exceed the measure's expected life, where the repayment amount plus the customer's bill after installing the measures does not exceed the anticipated utility bill without installing the measures;

6. an authorization from the customer to disconnect his utility service for nonpayment of any financing repayment amount; and

7. assignment of repayment obligations to subsequent owners or tenants of the dwelling unit.

The bill requires ECMB to report, by February 1, 2008, to the Energy and Technology and Environment committees on the development and the estimated cost of the program. The bill does not preclude development and implementation of similar conservation programs if they are approved by DPUC.

The bill allows the Fund to invest in (1) alternative fuel used for electric generation, including ethanol, biodiesel, or other fuel, produced in Connecticut and derived from agricultural produce, food waste, or waste vegetable oil, if DEP determines that these fuels reduce greenhouse gas emissions and fossil fuel consumption, (2) geothermal energy and (3) hydropower that will meet the low-impact standards of the Low-Impact Hydropower Institute. It also specifically allows the fund to invest in solar thermal and solar photovoltaic energy and to be used for demonstration projects for advanced technologies that reduce energy use from traditional sources.

The bill eliminates the requirement that the funding plans of the Clean Energy Fund be consistent with the comprehensive energy plan developed by CEAB, which the bill eliminates.

PA 05-1, June Special Session, established incentives for new distributed generation (e. g. , small power plants using technology such as microturbines and fuel cells). One of the incentives for such generation is a one-time capital award of between $ 200 and $ 500 per kilowatt of capacity. The bill extends the incentives to distributed generation, developed in the state before January 1, 2007 if the generation

1. (a) underwent upgrades that increased its thermal efficiency operating level by at least 10 percentage points or (b) for resources that have thermal efficiency of at least 70%, increase the heat rate by at least five percentage points,

2. increased its electrical output by at least ten percentage points,

3. operates at a thermal efficiency level of at least 50%, and

4. added electric capacity in the state on or after January 1, 2007.

Currently, the awards are funded by a charge on the bills of electric company customers. The bill requires municipal electric utilities to contribute a share of the awards in order for their customers to be eligible for them. DPUC must conduct a contested case, by July 1, 2007, to determine the utility's share, which must reflect an equitable way of allocating costs that reflect the benefits to electric company customers as a result of these payments. To qualify, the customer must submit an application to DPUC in which an independent licensed engineer certifies that the resource is designed to reduce the customer's peak load and that it is financially viable.

The bill entitles municipal utilities in southwest Connecticut to awards of at least $ 200 per kilowatt. Although the bill does not define the term “southwest Connecticut,” it appears that the Norwalk and Wallingford municipal utilities would be eligible for this award, since they are located in the southwest Connecticut region as defined by the entity that administers the New England wholesale market.

The bill requires DPUC, in consultation with the Office of Consumer Counsel, to report to the Energy and Technology Committee, by January 1, 2009, on the program's cost-effectiveness.

The bill establishes, 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. It creates a sales tax exemption from January 1, 2008 until July 1, 2010, for vehicles with city or highway fuel efficiencies of at least 40 miles per gallon.

The bill allows municipalities, by vote of their legislative bodies, to establish “energy improvement districts” and prescribes how they can be formed. It specifies the powers of such districts, which include developing and operating small power plants and certain conservation programs. It requires the district to develop a plan, in consultation with the Connecticut Center for Advanced Technology, for financing and developing these resources. This plan must be consistent with the integrated resources plan the bill requires electric companies to develop and the Siting Council's determinations.

The bill gives the districts a wide range of powers, including hiring staff, operating distributed resources, and charging fees for its projects. The district boards can issue revenue bonds, which are subject to standard provisions regarding the bond issuance, revenue guarantees to back the bonds, trust indentures, and other bondholder rights. Districts are tax-exempt but can make payments in lieu of property taxes.

The bill gives municipalities a wide range of powers to aid districts, including guaranteeing each district's bonds, issuing general obligation bonds to support the district, and appropriating funds for the district's use.

By law, electric utilities (including municipal electric utilities) must interconnect with non-utility generators. The bill requires DPUC to issue a final decision on interconnection standards by January 1, 2008, that meet or exceed national standards. (Interconnection standards deal with such things as the transformers that connect generating facilities with transmission lines. ) If DPUC does not do this by October 1, 2008, each of the utilities and the municipal electric energy cooperative must meet New Jersey's interconnection standards.

By law, electric utilities and competitive suppliers must give a credit to their customers in one- to four-dwelling unit properties who generate electricity using class I resources, such as wind or solar power, or hydropower. The bill expands these provisions to cover all customers with generation capacity up to two megawatts. It provides for credits to customers who generate more power than they use in a given billing period, with annual reconciliation in which the customer would be paid for any excess production at the avoided wholesale cost, and makes related changes.

Under current law, electric companies and suppliers must obtain at least 3. 5% of their power from class I renewable resources in 2007, 5% in 2008, 6% in 2009, and 7% in 2010 and subsequent years under the state's renewable portfolio standard (RPS).

The bill increases the RPS for class I resources to 8% stating in 2011. It increases the class I RPS to 9% in 2012, 10% in 2013, 11% in 2014, 12. 5% in 2015, 14% in 2016, 15. 5% in 2017, 17% in 2018, 19. 5% in 2019, and 20% in 2020 and thereafter (by law, in each year the company or supplier must continue to get an additional 3% of its power from class I or class II resources). The bill also allows companies and suppliers to meet the standard by buying power and associated “attributes” from residential net-metering customers as an alternative to the current options (customers who generate power from class I resources, as described above). This option refers to the fact that renewable energy credits (which reflect the “attribute” of the power having been produced from renewable resources) can be sold separately from the power itself.

The bill requires the Connecticut Municipal Electric Energy Cooperative (CMEEC) to develop standards for promoting renewable resources that apply to each municipal electric utility in the state. By January 1 annually, CMEEC must submit the standards to the group that advises Connecticut Innovations, Inc. , which administers the Clean Energy Fund. The bill also requires CMEEC to submit an annual report to this group on the activities of municipal utilities to promote renewable resources within 90 days of the end of the year.

By law, electric companies and suppliers must get part of their supply from class III resources as part of the RPS. The bill makes several changes regarding these resources, which under current law are (1) electricity produced by systems that produce heat and power developed at commercial and industrial facilities and (2) electricity savings from conservation and load management programs at these facilities that began on or after January 1, 2006. The bill expands class III resources to include (1) systems that recover waste heat or pressure from commercial and industrial processes installed on or after April 1, 2007 and (2) electricity savings from all conservation programs that started on or after January 1, 2006.

Current law excludes projects that violate Department of Environmental Protection's (DEP) air quality standards from the class III RPS. The bill additionally excludes projects that violate DEP's water quality standards.

The bill entitles a customer who implements energy conservation or customer-side distributed resources on or after January 1, 2008 to class III credits equal to at least one cent per kilowatt-hour. For nonresidential projects receiving conservation and load management funding, 25% of the credit goes to the customer and the remainder to Conservation and Load Management Funds. For such projects not receiving such funding that are submitted on or after March 9, 2007, 75% of the credit goes to the customer and the rest to the Conservation and Load Management Funds. For projects serving residential customers, 75% of the credits must go to the Conservation and Load Management Funds. (The bill does not specify where the rest goes. )

By July 1, 2007, DPUC must conduct a contested case to develop a procedure for awarding and aggregating the credits. These provisions appear to supersede current law (§ 101), which (1) entitles the customer to at least 25% of the credit with the remainder going to the conservation fund and (2) requires DPUC to conduct an annual proceeding in which it can give the customer a larger proportion of the credit for good cause shown.

In all cases, to be eligible for class III credits, the customer must (1) certify that applicable installation and metering requirements have been met, (2) provide a detailed energy savings or output calculation for the period specified by DPUC, and (3) include other information requested by DPUC.

The bill delays, from February 1, 2006 to February 1, 2008, the deadline for DPUC to issue a decision in a proceeding to develop administrative processes for a class III credit trading program and makes minor related changes.

EFFECTIVE DATE: Upon passage, except for the requirement that class III resources meet DEP water standards and the delay in the DPUC decision deadline, which are effective October 1, 2007.

The bill allows the DEP commissioner to enter lease agreements with private entities, in consultation with affected towns and watershed organizations, to allow the private entities to generate hydroelectricity. The project must meet the certification standards of the Low Impact Hydropower Institute.

The bill requires, rather than allows, municipalities to exempt certain renewable energy systems from the property tax and expands the scope of the systems subject to the exemption. Under current law, municipalities can exempt class I renewable resources (e. g. , solar electric, wind, and fuel cell systems) and hydropower facilities in one- to four-unit residential buildings. The bill requires rather than allows them to exempt these resources. It also requires municipalities to exempt any passive or active solar water or space heating system or geothermal energy resource, in any type of building.

EFFECTIVE DATE: October 1, 2007 and applicable to assessment years beginning on or after that date.

The bill exempts from Department of Consumer Protection (DCP) licensure requirements employees of, and contractors employed by, licensed solar contractors engaged in solar technology installations, if they are (1) working under the direction of a licensed solar contractor and (2) performing only specified tasks such as hoisting solar collectors.

By law, electric companies must act as a supplier of last resort for large customers who do not choose a competitive supplier. The bill requires the electric companies to procure power for this service at least every quarter. It eliminates a provision that bars a customer from returning to last resort service unless it agrees to stay on this service for at least one year.

The bill requires the electric companies, singly or jointly, to submit a plan to DPUC between January 1, and February 1, 2008 , to build peaking generation plants. Other entities can submit such plans during this period. An electric company's plan must (1) include the fuel projected costs of the plants and (2) demonstrate that the plan will not be subsidized by the companies' affiliates. DPUC must require the companies to submit additional information if it determines that this is in the public interest, and can require the companies to modify their plans to protect customers' interests.

DPUC must review the plans in a contested case and can retain a consultant to help it determine whether the plan's costs are good faith estimates. Within 120 days of receiving the plan, DPUC must approve it unless DPUC determines that it is not in customers' interests. Any approved plan must include a requirement that the applicant be compensated at the plant's cost of service plus a reasonable rate of return. The applicant must also agree to run the plant at such times and at such capacity to reduce overall rates.

If selected, the applicant can only recover the just and reasonable costs of building the plant. The recovery of costs would be set in an annual contested case. The applicants are entitled to recover their prudently incurred costs, including capital and operating expenses, fuel, taxes, and a reasonable return on equity. DPUC must review the cost recovery using existing rate-making principles. The return on equity must be updated at least once every four years. The selected firm must bid the plant into the regional wholesale electric markets, including the energy, capacity, and forward resource markets. It must do so in accordance with guidelines set by DPUC in the annual generation rate case.

§§ 51-53, 62, 63 — INTEGRATED RESOURCES PLANNING AND RESOURCE PROCUREMENT

Assessment and Plan Development. The bill requires the electric companies to annually assess:

1. the energy and capacity requirements of the customers for the next three, five, and 10 years;

2. how best to eliminate or stabilize growth in electric demand;

3. the impact of current and projected environmental standards, including those related to greenhouse gas emissions and the Clean Air Act goals, and how different resources could help achieve those standards and goals;

4. energy security and economic risks associated with potential energy resources; and

5. the estimated lifetime cost and availability of potential energy resources.

The bill requires the electric companies, in consultation with CEAB, to (1) review the assessment and (2) develop a comprehensive plan by January 1 annually for procuring energy resources. The plan must include a wide range of resources, including energy efficiency, conventional and renewable generating resources, combined heat and power (cogeneration), and emerging energy technologies. The plan's goal is to minimize the cost of these resources and maximize customer benefit consistent with the state's environmental policies. The electric companies' costs in developing the assessment and plan are recoverable from the systems benefits charge on electric rates.

Under the bill, resource needs must first be met through all available energy efficiency and demand reduction resources that are cost effective, reliable, and feasible. The procurement plan must specify:

1. the total amount of energy and capacity resources needed to meet all customers' needs;

2. to what extent demand side measures such as conservation programs can cost-effectively meet these needs;

3. needs for generating capacity and transmission and distribution improvements;

4. how developing these resources will reduce and stabilize customers' electric costs; and

5. how each of the proposed resources should be procured, including the optimal contract periods.

1. approaches to maximizing the impact of demand-side measures;

2. the extent to which generation needs can be met by renewable and cogeneration facilities;

3. the types and locations of generation that would optimize the state's generation portfolio;

4. fuel types, diversity, availability, and firmness of supply and security;

5. the various fuels' environmental impacts, including how they affect the state's ability to meet its greenhouse gas emission goals;

6. reliability, peak load and energy forecasts, system contingencies, and existing resource availability;

7. import limits and the appropriate reliance on imports; and

8. its impact on electric costs.

Review by the CEAB and DPUC. The companies must submit the plan annually by January 1 to a reformulated CEAB (see below). The bill requires CEAB, in consultation with the entity that administers the regional wholesale market, to review and approve the plan within 120 days of receiving it (although another provision allows CEAB to consult with this entity in creating the plan). Starting in 2009, CEAB must review and approve the plan within 60 days after receiving it. (The bill prohibits the transportation and agriculture commissioners and DPUC chairperson, who are CEAB members, from participating in this review. ) To help with the review, the board may retain a consultant with experience in energy procurement and may consult with the regional independent system operator. CEAB must hold a hearing on the plan and approve or modify it. CEAB must submit the reviewed plan, together with a statement of any unresolved issues, to DPUC.

DPUC must consider the plan in an uncontested docket and give interested parties an opportunity to submit comments on it. Within 120 days after CEAB submits the plan, DPUC must approve, or modify and approve it. Starting in 2009, DPUC must approve or modify the plan within 60 days.

By September 30, 2009, and every two years thereafter, DPUC must report on the plan to the Energy and Technology and Environment committees.

Plan Implementation. The electric companies must implement the plan under DPUC oversight. The companies must implement the demand–side and certain supply side measures in the procurement plan as part of their conservation plans developed under current law. The companies must submit proposals to the appropriate regulatory agencies for distribution and transmission upgrades included in the procurement plan. The companies must issue RFPs to acquire any other resources specified in the plan, subject to DPUC approval of the RFP.

If the plan specifies that a generating plant should be built, DPUC must issue an RFP. DPUC must make the confidential information it receives available to Office of Consumer Counsel and the Attorney General. The bids and DPUC's analyses of them are not subject to disclosure under the Freedom of Information Act until three months after DPUC issues its final decision, and information regarding losing proposals must conceal the bidders' identities.

Starting July 1, 2008, an electric company may submit proposals to individual electric supply components in response to the RFP on the same basis as other respondents. An electric company proposal must include its full projected costs and demonstrate that it is not being subsidized from the company's affiliates. Affiliates can submit bids, subject to the existing code of conduct that regulates interactions between electric companies and their affiliates and other requirements DPUC imposes.

If DPUC approves an electric company proposal, the company cannot recover more than the costs identified in its proposal. Its costs and revenues do not count in determining whether the company is exceeding its authorized rate of return or whether its rates are just and reasonable. The bill makes a conforming change, exempting the plants built under this provision from the current law that generally bars electric companies from owning or operating power plants and other generation assets. .

If DPUC selects a proposal from a non-electric company, the affected electric company must negotiate in good faith with the RFP winner and submit a contract to DPUC for its approval within 30 days of DPUC's selection. DPUC must determine how the costs of selected proposals will be recovered.

DPUC can retain consultants to help develop the RFP and assist DPUC in approving proposals. The costs of the consultants must be recovered in the generation services charges on electric bills.

CEAB Membership. Under current law, CEAB consists of nine members, including six agency heads and one member each appointed by the governor, House speaker, and Senate president pro tempore. The bill increases the number of appointed members by six (thus, each appointing authority selects three members) and specifies that they represent:

1. an environmental organization with knowledge of energy efficiency programs,

2. a consumer advocacy organization,

3. a statewide business association,

4. a chamber of commerce,

5. a statewide manufacturing association,

6. low-income ratepayers,

7. a member of the public who is expert in energy programs,

8. a representative of the public with expertise in energy issues, and

9. state residents in general.

§ 54, 55 — CEAB REVIEW PROCESS/”NET ENERGY” EVALUATION OF PROPOSED POWER PLANTS

By law, CEAB must conduct an alternatives analysis when an application is made to the Siting Council to build certain energy facilities. The bill exempts from this requirement (1) generating facilities with a capacity of up to five megawatts and (2) any power plant, transmission line, or substation if the Siting Council determines, as part of the security study required under § 8 (actually § 54) of the bill, that the facility is required for reliable electric supply to defense and homeland security infrastructure. The Siting Council must make this determination by December 31, 2007. Both types of facilities are also exempt from a fee used to reimburse municipalities for their costs in participating in Siting Council proceedings.

The bill also exempts other substations from the alternatives analysis requirement. It allows CEAB, by a two-thirds vote of the members present and voting, to waive the alternatives analysis requirement for a specific application because the process is not likely to result in a reasonable alternative to the proposed facility. By December 1, 2007, the board must develop (after soliciting public comment) and approve additional criteria to apply when determining whether the process can be waived. CEAB must include its reasons in its determination.

The bill also makes a conforming change with regard to the CEAB comprehensive energy plan.

By law, when an application is made to the Siting Council to build a new power plant, CEAB must solicit and evaluate alternative proposals. The bill requires CEAB also conduct a “net energy analysis” of each plant larger than 65 megawatts. This analysis must determine the ratio between (1) the amount of energy the plant will produce over its lifetime to (2) the amount of energy used in plant construction and maintenance and the total fuel cycle, both over the plant's lifetime.

PA 05-210 relieved the Department of Transportation of having to pay part of the costs when electric transmission and trunkline facilities had to be relocated in highway rights-of-way. This bill limits these changes to facilities owned by an electric company.

Under current law, at least three of the five DPUC commissioners must have experience and education in specified fields, such as economics, engineering, or law. The bill requires any newly appointed commissioner to have a background in one of these fields. It also requires that whenever a new DPUC commissioner is appointed, at least one of the commissioners have experience in utility customer advocacy.

The bill requires CEAB to develop recommendations, by January 1, 2008, on (1) how to integrate the state's energy entities, (2) meet state and regional greenhouse gas emission goals, and (3) promote indigeneous alternative fuel resources. CEAB must submit its recommendations to the Energy and Technology Committee by January 1, 2009.

The bill requires CEAB to study the efficacy, innovativeness, and customer focus of energy conservation programs. It must hold hearings and investigate the options of (1) retaining the current system in which each electric company administers its own programs; (2) selecting a statewide conservation program provider from among the electric companies, CMEEC, and other entities; or (3) having a nonprofit organization serve as the administrator. DPUC must report its findings to the Energy and Technology Committee by February 1, 2008.

The bill requires DPUC to study, by January 1, 2009, the efficacy and rate impact of last-resort service and standard service.

EFFECTIVE DATE: Upon passage for the CEAB study, October 1, 2007 for the DPUC study.

1. establish a week-long promotional event to take place in late September or early October each year, to promote renewable energy and energy conservation;

2. encourage and solicit school districts, schools, and other public educational institutions to participate in a statewide compact fluorescent light (CFL) bulbs fundraiser; and

3. provide outreach, guidance, and training to districts, parent and teacher organizations, and schools concerning the value of renewable energy.

The department must consult with DPUC, electric companies, and interested CFL manufacturers in developing this program.

The Education Department and ECMB must develop and implement a statewide fundraiser for all public schools in which students sell CFLs, with the participating schools keeping part of each sale. The Education Department must establish a sales target for the fundraiser and adopt regulations to determine the program's parameters.

By law, a Siting Council certificate is not required for (1) any fuel cell with a capacity of up to 10 kilowatts, or (2) a larger fuel cell, unless the council finds that it causes substantial environmental harm. The bill extends the 10-kilowatt-limit to 250 kilowatts for fuel cells manufactured in the state.

Under current law, a certificate is not needed for distributed generation resources below 65 megawatts that comply with DEP air quality standards. The bill also requires the facility to meet DEP water quality standards in order to be eligible for this exemption.

Current law generally bars electric companies from owning or operating power plants and other generation assets. The bill exempts from this provision the power plants it authorizes the companies to build.

The bill requires the Department of Social Services (DSS) to maintain the energy assistance benefit increases that were adopted in 2005 when it proposes its low-income energy assistance block grant allocation plan for 2007-2008. Among other things, the 2005 legislation (1) increased, by $ 200, the basic benefit provided to low-income households under the Connecticut Energy Assistance Program and (2) required the program to provide a $ 300 basic benefit and $ 200 crisis benefit for moderate-income households.

The bill broadens requirements that DSS to buy fuel at discounted prices for CEAP participants. It expands the requirement to include all deliverable fuels, rather than just heating oil. It also requires that DSS ensure that all fuel assistance recipients are treated the same as other similarly situated customers and that fuel dealers do not discriminate against them under their standard payment, delivery, service, or other similar plans.

DSS must take advantage of programs offered by dealers that reduce the cost of the fuel, such as fixed-price, capped-price, pre-purchase or summer-fill options, thereby reducing CEAP's program cost and making the maximum use of its revenues. DSS must ensure that all agencies administering CEAP make payments to participating dealers in advance of the delivery of energy where the dealer provides price-management strategies that require advance payments.

The bill requires the community action agencies that administer CEAP to provide DSS with pricing information from participating dealers. The information must include (1) the statewide or regional retail price per unit of fuel, (2) the reduced price per unit paid by the state, (3) the number of units delivered to the state under the program, and (4) the total savings under the program due to the purchase of deliverable fuel using the dealers' price-management strategies.

The bill also requires the community action agencies that administer fuel assistance programs to begin accepting applications by September 1 annually.

The bill extends, from April 15 to May 1, 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. By law, the start date is November 1. Hardship customers include households (1) whose only income is Social Security, veterans', or unemployment benefits; (2) that have a seriously ill household member; and (3) with incomes up to 125% of the federal poverty level, among others. The bill also makes related changes.

The bill (1) makes permanent the sales tax exemption for energy efficiency goods such as insulation, programmable thermostats, and gas furnaces that meet Energy Star standards and (2) makes oil furnaces and boilers that are 84% or more efficient, rather than 85% efficient or more, eligible for this exemption.

The bill also permanently exempts from the sales tax (1) compact fluorescent light bulbs, (2) solar electric and space and water heating systems and related equipment and installation services, (3) geothermal systems and related equipment and installation services, and (4) ice storage systems used for cooling and related equipment and installation services for utility customers billed on time-of-use rates. Finally, it exempts from the tax, until June 30, 2008, household appliances that meet federal Energy Star standards.

EFFECTIVE DATE: Upon passage for the Energy Star appliance exemption; June 1, 2007 for the exemption for energy efficiency goods and compact fluorescent lamps; and July 1, 2007 for the solar and ice storage system exemption.

The bill allows electric companies, starting January 1, 2008, to meet the RPS by procuring renewable energy certificates under long-term contracts. (These credits are bought and sold on the New England market as one way of complying with renewable portfolio standards in Connecticut and other states. The credits can be sold separately from the power produced by renewable resources. ) The bill allows the electric company to enter into a contract for up to 15 years to buy the certificates. The credits count towards the company's RPS compliance for standard service and last resort service.

The bill requires DPUC, by July 1, 2007, to begin a contested case to examine whether long-term contracts should be used to procure certificates. DPUC must determine:

1. the method and timing of counting the procurement of the certificates against the RPS;

2. the terms and conditions to be imposed on entities seeking to supply the credits;

3. compensation to the companies for administering procurement under these provisions, not to exceed a one-time payment of 0. 1 cent per kilowatt-hour;

4. the impact of the contract on price stability, fuel diversity, and costs;

5. how the costs of the contracts will be recovered from ratepayers; and

6. other issues DPUC considers appropriate.

The one-time compensation does not count towards the company's earnings for determining whether the company's rates are just and reasonable and does not have to be shared with ratepayers.