Clean State Energy Actions 2011 Update. connecticut

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1 Energy Efficiency Appliance/Equipment Efficiency Standards Building Energy Codes Utility Demand-Side-Management Utility Rate Realignment Energy Savings Targets/Energy Efficiency Resource Standards Public Benefits Funds Minimum energy efficiency standards for four categories of appliances Set new minimum efficiency standards for televisions, DVD players and other electronic products. Broadened circumstances when efficiency standards can be implemented for other products (SB 1243). Residential and Commercial: 2003 IECC mandatory statewide (in the process of adopting the 2006 IECC with amendments) State building code now based on 2009 IECC. Commercial code also references 2009 IECC State required to adopt 2012 IECC within 18 months of publication Certain new residential buildings in the state that cost over $5 million required to meet LEED Silver certification or equivalent Utilities (2) are eligible for performance management fees; participating in ISO-New England s Forward Capacity Market Established a program under which Connecticut electricity customers that install energy efficiency equipment and reduce their energy use during peak hours may be eligible for a rebate based on the amount of kilowatt-hours (kwh) saved during peak hours. Required utilities to implement demand-side management measures, including, but not limited to, energy efficiency, load management, demand response, combined heat and power facilities, distributed generation and other emerging energy technologies (SB 1243). Rate decoupling in natural gas and electricity is underway; mandatory time-of-use rates, voluntary variable peak pricing is offered As part of CT s RPS, 4% of supply must come from distributed sources by 2010 (energy efficiency, load management, combined heat and power - Class III renewables) The Department of Public Utility Control receives a per-kwh surcharge on ratepayer s utility bills that is dedicated to conservation, load management, research, development and commercialization efforts, education efforts, etc. - these funds are supplemented by additional sources The Energy Efficiency Fund, funded by Connecticut s public benefits charge, provides home energy efficiency rebate programs to customers of The Connecticut Light and Power Company and The United Illuminating Company, Connecticut Natural Gas, Southern Connecticut Gas, and Yankeegas customers

2 Financial and Other Incentives Provides a sales and use tax exemption for certain energy efficiency products; residential Energy Conservation Loans are available for conservation improvements; revenue from CO 2 allowances under RGGI are invested in conservation programs Connecticut s New Energy Technology program provides grants of up to $10,000 to applicants who submit promising pre-commercial technologies that conserve energy or facilitate the use of renewable energy. Grants are awarded to as many as five small firms -- a firm that employs 30 or fewer people -- each year (See also Clean Electricity and Clean Energy RD&D). Launched a pilot program designed to help women- and minority-owned businesses reduce their energy costs and educate themselves about energy consumption. The program, conducted in five cities, offered 1,200 small business grants of up to $1,000 to help cover electricity costs. The program also offers education on energy efficiency and conservation (See also Clean Energy Economic Development). Established a loan program for municipalities to finance energy efficiency and renewable energy projects, the costs of which are recovered by an assessment on the benefitted property (SB 1243). Required the energy efficiency and renewable energy plans developed under current law to provide equitable funding for low-income neighborhoods (SB 1243). Clean Electricity Renewable/Alternative Energy Portfolio Standards and Goals Net Metering and Interconnection Standards Public Benefits Funds 20% by 2020 from Class I renewables, 3% from Class I or II, and 4% from Class III by 2010; the state s two electric distribution companies are required to enter into long-term electricity purchase agreements to obtain at least 150 MW of Class I renewable energy Interconnection guidelines for distributed energy systems up to 20 MW in capacity; net metering is required for customers that generate electricity using Class I renewable-energy resources, which include solar, wind, landfill gas, fuel cells, sustainable biomass, ocean-thermal power, wave or tidal power, low-emission advanced renewable-energy conversion technologies, and hydropower facilities up to 2 MW in capacity; net metering is also available for distributed generation units that operate on fossil fuels up to 50 MW and on other renewables up to 500 MW Established a program allowing municipal customers of electric companies to share net metering credits among buildings the municipality owns (SB 1243). The legislature has set a per-kwh charge on ratepayer bills to be dedicated for this purpose; Connecticut spends approximately $120 million per year in furtherance of developing programs and funding projects for renewable technologies through these funds

3 Financial and Other Incentives Provides a property tax exemption for Class I renewable energy systems and hydropower facilities that generate electricity for private residential use; provides a sales and use tax exemption for solar and geothermal heat pumps; the Community Innovations Grants Program is a test pilot program that provides eligible communities with a $5,000 block grant to support local public awareness and education projects that promote renewable energy; Connecticut s On-Site Renewable Distributed Generation Program provides grants to support the installation of systems that generate electricity utilizing solar photovoltaic, wind, fuel cells, landfill gas, low-emission advanced biomass-conversion technologies, run-of-the-river hydropower, wave or tidal power, or ocean-thermal power are eligible; offers grants and low-interest loans to retail end-use customers of electric distribution companies for the installation of customer-side distributed resources; the Connecticut Clean Energy Fund offers rebates for the installation of solar photovoltaic systems; Project 150 allows for the sale of advanced long-term contracts to assist in the financing of the clean energy projects underlying the contracts Provided grants of up to $10,000 to small firm who employ less than 50 people that are working on promising pre-commercial technologies that conserve energy or facilitate the use of renewable energy through the Connecticut s New Energy Technology program (See also Clean Electricity). Exempted equipment, machinery and fuels used to manufacture solar thermal (active or passive) systems, solar electric systems, wind-power electric systems, or geothermal resource systems from the state sales and use tax (H.B See also Clean Energy Economic Development). Created the Connecticut Clean Energy Fund to fund approximately 550 residential projects and 50 non-residential projects to support solar hot water heating in the State. Launched the Connecticut Solar Lease program which allows homeowners to lease a photovoltaic (PV) system, with fixed monthly payments, for a term of 20 years. Homeowners may choose an eligible installer to design and price a PV system. All electricity generated by a leased PV system reduces the homeowner s electric bill. Established grants for commercial, industrial, nonprofit and government entities for PV installations between 50 and 200 kw. Created low-interest loans for PV, wind, fuel cells and CHP/cogeneration with a capacity of between 50 kw and 65 MW. The maximum loan amount is $150,000. Required electric companies to enter into long-term contracts to buy renewable energy credits (RECs) from zero-emission generators (SB 1243). Required the Clean Energy Finance and Investment Authority to establish a program to promote residential photovoltaic systems under which participants can choose to receive an up-front payment or a payment tied to the power the systems produce (SB 1243). Allowed electric companies to own up to 10 megawatts of renewable energy generating capacity (SB 1243). Allowed municipalities to establish a loan program to finance energy efficiency and renewable energy projects, whose costs are recovered by an assessment on the benefitted property (SB 1243). Created the Clean Energy Finance & Investment Authority, which administers the Clean Energy Fund, to facilitate private capital investment in clean energy projects by pursuing maximum leveraging of public dollars (SB 1243).

4 Alternative Fuels & Vehicles Consumption Targets/Renewable Fuel Standards Financial and Other Incentives The governor set a goal that by 2020, 20% of all energy used and sold in the state, including fuel, will come from clean renewable resources; in addition, the governor set a goal that by 2020, state fossil fuel consumption will be reduced by 20% and all commercial transportation fuels sold in the state will be required to include a mixture of 20% alternative fuels; by 2010, 10% biofuel mixtures will be mandatory for the state vehicle fleet Provided a tax credit for the construction of, improvements to, or equipment for any compressed natural gas, liquefied natural gas, or liquefied petroleum gas refueling station or an electric vehicle recharging station; provides a tax credit for the incremental cost of purchasing a new dedicated compressed natural gas, liquefied natural gas, liquefied petroleum gas, or electric vehicle; provides a sales tax exemption for certain alternative fuel vehicles; provides grants to qualified biodiesel producers and distributors On November 10, 2009, the governor issued Executive Order 34 to create the Electric Vehicles Infrastructure Council; the Council consists of several state agencies and other stakeholders A draft report was issued on February 1, 2010, and a final report will be issued by September 1, 2010 The Connecticut Department of Transportation and the Connecticut Center for Advanced Technology developed a plan to implement zero emissions buses on a state-wide basis. The plan includes the technological, facility and financial arrangements necessary to fully implement a zero emissions bus fleet. Lead By Example Appliance/Equipment Efficiency Building Efficiency Green Power Purchasing Created a requirement that agencies procure equipment and appliances that meet or exceed the energy conservation standards set forth in the federal Energy Policy and Conservation Act, and meet or exceed federal Energy Star standards. Certain state construction projects must meet the state-developed design standards based on LEED or Green Globes Created a requirement for a 10% reduction in energy use in state buildings by 2013 and a 20% reduction by 2018 (SB 1243). State government must increase Class I renewable energy purchases to 20% of electricity used in 2010, 50% in 2020, and 100% in 2050; annual voluntary green power purchase of nearly 84 million kwh (12% of total annual electricity use)

5 Alternative Fuel and Vehicle Fleets State fleets must meet a 40 mpg efficiency requirements, and all state-owned alternative fuels vehicles are required to use alternative fuels; in considering bids for state contracts, a price preference of up to 10% is allowed for the purchase of AFVs, or for the purchase of vehicles powered by fuel other than a clean alternative fuel plus conversion equipment to convert the vehicles to dual or dedicated alternative fuel use; in addition, some municipalities have provided free parking for alternative fuel vehicles Established the Connecticut Clean Fuel Program which provides funding to municipalities and public agencies that purchase, operate, and maintain alternative fuel and advanced technology vehicles as well as funding for diesel retrofit technologies. Required that at least 50% of all cars and light-duty trucks the state purchases to be hybrid electric vehicles, plug-in hybrid electric vehicles, or capable of using alternative fuel. Established the Connecticut Clean School Bus Program that provides grants for municipalities and local and regional school boards for reimbursement of the cost of retrofitting school buses. GHG Emissions GHG Policies Participant in Climate Registry; Goal to reduce statewide GHG emissions to 1990 levels by 2010, 10% below 1990 levels by 2020, and 75-85% below 2001 levels in the long term; requires coal-fired power plants to comply with an emissions rate equal to or less than 0.6 pound of mercury per trillion BTU of heat input, or alternatively, an emissions rate comparable to a 90% reduction in mercury emissions; power sector cap through RGGI; Connecticut Climate Change Action Plan (2005); RGGI participant; adopted CA vehicle emissions standards; school bus emissions reduction program Established a greenhouse gas (GHG) labeling program for new motor vehicles model years 2009 and later that includes the vehicle s GHG score and the average GHG score for vehicles in the same class Clean Energy RD&D Partnerships, Grants, Awards, and Dedicated Funding Provides funding to Connecticut institutions of higher education or Connecticut institutions of agricultural research for purposes which may include research to promote biofuel production from agricultural products, algae and waste grease, as well as biofuel quality testing; Connecticut Innovations, Inc., through the Clean Energy Fund serves as the state s entrepreneurial risk pool and financing vehicle for such projects; the Connecticut Hydrogen-Fuel Cell Coalition is responsible for developing a plan for fuel cell economic development Launched the Alpha program under the Connecticut Clean Energy Fund (CCEF) to provide up to $200,000 per clean energy technology project that is in the early stage development. Established a three-year pilot program to develop combined heat and power and anaerobic digester projects by providing $2 million annually for each of the programs (SB 1243). Provided grants of up to $10,000 to small firm who employ less than 50 people that are working on promising pre-commercial technologies that conserve energy or facilitate the use of renewable energy through the Connecticut s New Energy Technology program (See also Clean Electricity).

6 Clean Energy Economic Development Task Force, Workforce Development, Incentives, Analysis, Etc. The Connecticut Clean Energy Fund, established in 2000, provides support to academic institutions for workforce development; required the Renewable Energy Investments Board, as of May 2008, to convene a working group on maximizing the use of solar energy with recommendations on workforce development and job creation Established the Green Jobs Partnership ( Green Jobs Council ) with representatives from state agencies (environmental protection, economic development, education, transportation and labor), business and industry for the purpose of developing green job opportunities, public-private partnerships and job training programs (Executive Order 23) Connecticut has established a green chemistry and science advisory group Connecticut s College system has utilized federal funding to develop certificate credit programs and train students in the emerging fields of alternative and renewable energy The governor signed legislation (HB 5435, An Act Concerning the Recommendations of the Majority Leaders Job Growth Roundtable) that: Provides the following financial incentives: sales tax exemption for machinery, supplies and fuel used in renewable energy industries, personal income tax credits for green technology investments, loan reimbursement and training grants for education and careers in green technology; Establishes a Community-Technical College advisory board to assess training needs of unemployed residents; and Creates a Department of Economic and Community Development pilot program to encourage Connecticut small manufacturers implement green technologies and efficiency measures Exempted sales and use tax for equipment, machinery and fuels used to manufacture solar thermal (active or passive) systems, solar electric systems, wind-power electric systems, or geothermal resource systems (H.B. 5435) Launched a pilot program designed to help women- and minority-owned businesses reduce their energy costs and educate themselves about energy consumption and conservation. The program, conducted in five cities, offered 1,200 small business grants of up to $1,000 to help cover electricity costs (See also Energy Efficiency). Established a green jobs task force to study the state s current and potential green jobs industry and corresponding workforce. Also provided for angel investor tax credits and applications to Connecticut Innovations (HB 6399). Other Nuclear Power Before any new facilities will be considered, the federal government must have a means of disposal for nuclear waste. Does not allow any public service company to charge rates which include costs associated with the construction of a nuclear power generating facility. Makes some cost and value provisions.