AN ACT CONCERNING ENERGY EFFICIENCY AND CONSERVATION PROGRAMS.

This bill establishes a division in the Department of Public Utility Control (DPUC) to evaluate all state energy efficiency, conservation, and renewable energy programs and provides for the division's funding. It repeals the requirement that the (1) Energy Conservation Management Board (ECMB) and the Renewable Energy Investments Board evaluate, every five years, the performance of the programs and activities of the funds they respectively oversee and (2) report on the evaluation to the Energy and Technology Committee and, in the case of the Renewable Energy Investment Board, the Energy and Technology and Commerce committees. Under current law, the next reports must be submitted by December 31, 2011.

The bill establishes a statutory goal of reducing statewide per capita energy consumption by 10% in 2015 from 2006 levels by using efficiency and conservation measures. It requires the secretary of the Office of Policy and Management (OPM) to establish a program to reduce energy consumption in state-owned and –leased buildings by 10% by January 1, 2010. (The bill does not establish a baseline for this requirement. )

The bill increases the maximum amount of money that can be transferred from petroleum gross earnings tax revenue to the Fuel Oil Conservation account from $ 5 million to $ 10 million (the statutory cap prior to FY 09). The provision applies starting FY 10. By law, the account is funded by the growth in the gross earnings tax revenue above FY 06 levels. The account is used to fund fuel oil conservation programs.

By law, the governor's recommended budget must include a supporting schedule of agency energy costs. The bill requires that, starting in FY 11, the supporting schedule be submitted to the Energy and Technology Committee.

The bill requires OPM and the Department of Public Works to re-establish, by July 1, 2010, a pilot program in which the state selects one or more state facilities to be covered by an energy performance contract with a private vendor. Under such contracts, the vendor pays for the capital cost of energy efficiency projects in return for receiving part of the energy savings. The agencies were required to establish a program before July 1, 2004, but failed to do so.

The bill makes municipal electric utility customers eligible to receive information from a DPUC energy efficiency and outreach marketing campaign. It requires that a DPUC website on this program provide information for all electric customers statewide.

Under the bill, the division must develop a detailed plan, which must at least include (1) a ranking of projects based on size or savings, (2) conducting or contracting for ongoing evaluations of energy efficiency and renewable energy programming and an annual verification of energy savings, and (3) annual evaluations to verify yearly energy and capacity savings and total resource benefits and progress towards goals. The plan must cover all state energy efficiency, conservation, and renewable energy programs. These include, among others, programs that promote distributed resources such as cogeneration, on-site generation, and conservation measures funded through the Fuel Oil Conservation Account.

The division and its work are funded by an allocation of 2% of funding for all of the programs covered by the plan. The bill does not amend CGS § 16-49, which funds DPUC's entire budget from an assessment on the companies it regulates.

Under the bill, the agencies that participate in the pilot program must report on its results to the Appropriations and Energy and Technology committees. The reports must be submitted within three months after the effective date of the contract and annually thereafter. The final report must be submitted within three months after the contract's termination.

Yea

Nay

(03/09/2009)

Yea

Nay

(03/19/2009)