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Politics & Government

Restoring The Energy Conservation Fund

Subsidies For Green Energy And Jobs, Energy Surcharges May End.

It could be considered the putting-things-back-as-they-were bill. 

 The Senate recently passed SB 1157, which will close the door of opportunity to re-appropriate money from the Energy Conservation and Load Management Fund, or the CT Energy Efficiency Fund to the general fund.

 “I’m pleased to say that we're going to correct this,” said state Sen. Andrew Maynard, a Democrat who represents Stonington and Groton in the 18th Senate District. 

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"Our economic picture has improved enough that the two most onerous provisions from last year’s budget wont' be called upon." 

Last budget season, the General Assembly passed a budget that allowed for the opportunity to take 35 percent, or $956 million, from the dedicated CT Energy Efficiency Fund and sweep it into the general fund. The move was considered by some to be necessary. But many business and environmental leaders saw the move as deceptive.  

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“We’ve never been big on misappropriation of funds. We don’t like the message it sent – that you can take environmental efficiency money or environmental conservation money to use as a slush fund,” said Louis Burch Program Coordinator for Citizens Campaign for the Environment, CCE.  

State Rep. Elissa Wright, a Democrat who represents Groton in the 41st House

District and Vice Chair of the Finance, Revenue and Bonding Committee, said the money has not yet been taken from the fund and, with a reported surplus in the general fund, none will be taken.  

“We haven’t utilized it and this legislation will make the fund a secondary option for the securitization of (economic recovery bonds) in the future,” said state Rep. Edward Moukawsher, a Democrat who represents Groton and New London in the 40th House District. 

State Sen. Eileen Daily, a Democrat representing Clinton in the 33rd Senate District and Chair of the Finance, Revenue and Bonding Committee said that the re-appropriation was not what the committee wanted. 

“When we were negotiating we were very much against this in any amount,” she said. “We negotiated for hours with the governor (Gov. Jodi Rell). We were not happy, it was not what we would have liked to have seen as our work product.”  

State Rep. Gail Lavielle a Republican representing Wilton and Norwalk in the 143rd House District, became an early co-sponsor of the bill.  

“I signed on early because of the principle of the thing,” Lavielle said. “I didn’t like the consumers were being told they were being charged for one thing and then something else was being done with their money. This was just deceptive.”  

Money from the fund supposed to be invested in cost-effective energy efficiency, which stimulated economic growth. It provides low-cost in-home energy assessments to help homeowners figure out what needs weatherizing and where there can be water conservation. It also offers rebates to residents and businesses who upgrade inefficient, old appliances and lighting.  

According to CCE, the fund saves ratepayers more than $5.5 billion dollars over the last decade.  

Richard Soderman, director of legislative policy and strategy for Northeast Utilities Service Co. said the utility company supports SB 1157 and lauded the finance committee for taking “creative and bold steps to restore these programs that are so essential to lower bills for Connecticut electrical consumers and these important jobs in our communities.”  

Burch said CCE hopes the state will now begin to reinvest the money into some of these programs.  

“We do like to see this new attitude with this administration and the Senate and House leadership that they’re thinking outside the box and not stealing from the cookie jar, so to speak,” Burch said.  

In addition, restoration of the fund could help improve the business climate, said Eric Brown, associate counsel for the Connecticut Business and Industry Association.  

“A lot of businesses have taken advantage of the fund,” Brown said referring to CBIA’s 10,000 members. “It’s been beneficial both in terms of jobs and in making businesses more energy efficient. High energy costs are one challenge of doing business in the state.”  

That businesses can take advantage of the fund to retrofit and upgrade their equipment is important, Brown said.  

Moukawsher said the money can subsidize alternative energy sources for homeowners and business upstarts.  

“Those funds are available for projects for conservation and for home efficiency,” he said. “It supports the solar energy industry. Those funds helped subsidize the use of solar, we've had a growing solar energy industry and that was jeopardized or was going to be hurt if we took money from this fund.”  

Wright said that the funds are also important in terms of transitioning the state to a clean energy.  

Both business and environmental groups, including the National Federation of Independent Business, NFIB, and the Sierra Club, said restoration of the fund means jobs.  

Andy Markowski, NFIB’s Connecticut State Director, said restoring the fund would create more ‘green jobs’ and encourage residents and business to be more energy efficient.  Martin Mador of the Hamden-based Sierra Club said more jobs would come as homeowners and businesses seek to upgrade their equipment. 

Daily said ratepayers will reap benefits from this bill. 

“I do think it's a very exciting thing to have happen,” she said. “I stops the (CTA) charge on the utility bill. That'll be stopped as soon as it's final passage and the electric company can set up its system.”

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