An Act Concerning the Establishment of the Department of Energy and Environmental Protection and Planning for Connecticut s Energy Future

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1 Public Act An Act Concerning the Establishment of the Department of Energy and Environmental Protection and Planning for Connecticut s Energy Future David R. Goldberg & Jocelyn Anastasiou January 23,

2 Overview of Public Act Bill received strong support in House and Senate House -139 to 8; Senate - unanimous Creates centralized energy department for State of Connecticut Features strong State support for clean energy and energy efficiency initiatives ~ $3 billion public investment over next 10 years 2

3 Overview of Public Act Maximizes impact of State resources via leveraging Aimed at lowering long-term energy costs Good news for homeowners, business owners and institutions!! 3

4 Key Provisions New Quasi-Public Authority: CEFIA Residential Solar PV Program CEFIA Combined Heat and Power Pilot Program CEFIA Anaerobic Digester Pilot Program CEFIA Green Connecticut Loan Guaranty Fund CEFIA Zero Emission Generation Program (ZREC) Low Emission Generation Program (LREC) Property Assessed Clean Energy (PACE) Loans Virtual Net Metering Grid-Tied Procurement Energy Performance Contracting 4

5 New Quasi-Public Authority: CEFIA Creates Clean Energy Finance and Investment Authority (CEFIA) Replaces Connecticut Clean Energy Fund (CCEF) CEFIA has broader financing authority: Clean energy PLUS Energy efficiency projects Projects that seek to deploy electric, hybrid, natural gas, and alternative fuel vehicles and associated infrastructure Any related storage, distribution, manufacturing technologies or facilities 5

6 CEFIA Financing Authority Energy efficiency projects Clean energy technology development Community outreach/incentives Fuel cell installations Hydro installations Biomass installations Wind energy installations Electric vehicles Hybrid vehicles Natural gas vehicles Alternative fuel vehicles Infrastructure (for such vehicles) Storage technologies/facilities Solar PV installations Solar thermal/geothermal installations Manufacturing technologies/facilities Distribution technologies/facilities 6

7 Workforce Development 7

8 Residential Solar PV Program Goal: 30 MW of new residential solar photovoltaic (PV) systems installed by 2022 Direct financial incentives For purchase or lease of qualifying residential solar PV systems Incentives decline over time Funding: $100 million over 10 years Program receives up to one third of ratepayer funds annually 8

9 Residential Solar PV Program Local Economic Development Additional incentives offered if major system components are: Manufactured or assembled in Connecticut (up to 5% add l incentive) Manufactured or assembled in a distressed municipality or within an enterprise zone (up to another 5% add l incentive) Administered by: CEFIA 9

10 Combined Heat and Power Pilot Program 3-year pilot program $2 million/year budgeted for incentives to: Install combined heat and power (CHP) systems May support up to 50 MW of CHP systems (up to 25 to 2 MW each) Incentives capped at $350/kW Administered by CEFIA 10

11 Anaerobic Digester Pilot Program 3-year pilot program $2 million/year budgeted Incentives to support installation of anaerobic digesters at Connecticut farms and businesses Supports sustainable practices and economic prosperity Anaerobic digesters convert organic waste into electricity and heat 11

12 Green Connecticut Loan Guaranty Fund Up to $18 million in state bond funds for loan guarantees Guarantees loans by participating lenders for energy efficiency and renewable energy projects Projects include purchase and installation of: Clean energy generation systems Energy conservation materials Replacement furnaces and boilers Advanced energy-conserving equipment Eligible: individuals, nonprofits, small businesses ( 50 full-time employees) Administered by CEFIA 12

13 Zero-Emission Generation Program (ZREC) Creates demand for Class I renewable technologies Emit no pollutants Solar, small hydro, wind, etc. Beginning January 2012 and over next 6 years, each electric distribution company (EDC) must: Solicit 15-year power purchase contracts for zero-emission generation projects Purchase zero-emission renewable energy credits (ZRECS) 13

14 Low-Emission Generation Program (LREC) Creates demand for Class I renewable technologies with low emissions (e.g. fuel cells, biomass) Low emissions: 0.07 lbs/mwh of nitrogen oxides 0.10 lbs/mwh of carbon monoxide 0.02 lbs/mwh of volatile organic compounds 1 grain/100 standard cubic feet Beginning January 2012 and for the next 3 or 5 years, each EDC must: Solicit 15-year power purchase contracts for low-emission generation projects Purchase low-emission renewable energy credits (LRECS) 14

15 Property Assessed Clean Energy (PACE) Loans Loans from cities/towns to property owners to finance: Renovations/retrofits to reduce energy consumption Installation of renewable energy systems Eligible properties: Single- or multi-family residences Commercial and industrial buildings Loan is repaid through property tax bill Loan runs with land/property, not owner who secured original loan 15

16 Virtual Net Metering EDCs must: Provide municipal customers with virtual net metering Make interconnections and install net metering equipment as needed Net metering = customer earns billing credits from EDC when customer generates more power than it uses Virtual net metering = customer can share its net metered billing credits with up to five other accounts 16

17 Grid-Tied Procurement EDCs or owners/developers of generation projects may build, own or operate up to an aggregate of 30 MW of generation capacity using Class I (zero-emissions) renewable energy sources Connecticut s two EDCs: up to 10 MW each Each facility: 1-5 MW 17

18 Energy Performance Contracting-LBE Energy performance contract Municipality / state agency + qualified energy service provider Purpose: to evaluate, recommend and implement one or more energy-savings measures (EE/RE) Provider guarantees energy cost savings Savings must meet or exceed annual contract payments Provider liable for any shortfalls in guaranteed savings Term: may be up to 20 years May provide for financing by a third party (including tax-exempt financing) 18

19 Other Noteworthy Provisions Section 49 Fuel Oil Conservation Board Section 101 Efficiency in Poorer Towns Section 111 Condominium Program Section 116 Heating System Financing and CHP Programs Section 125 Disclosure of Consumption Data (of all typical nonresidential buildings) Section 126 Disclosure of Consumption Data (aggregate town customer usage information by customer class) Section 128 Building Permit Fee Waiver Section 129 Renewable Portfolio Standard Study Section 135 Heating System Conversion Program 19

20 More Information Clean Energy Finance and Investment Authority (CEFIA) Connecticut Energy Efficiency Fund (CEEF) Department of Energy and Environmental Protection (DEEP) P.A PA.htm 20

21 THANK YOU Visit us online at 21

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