Energy approaches still yet to be resolved

RGGI implementation a question

(May 25, 2007) Two different legislative approaches to Connecticut’s energy future share some common ground – such as long term planning and more support for energy conservation and efficiency programs – but are yet to be resolved into a proposal lawmakers can back before the end of the session on June 6.

Policy-makers are working to resolve some differences over how to approach the future of energy policy in the state. Some legislators are committed to a competitive marketplace (the Senate proposal) and others are looking for more government control (the House proposal).

Legislative leaders have acknowledged that there is no “quick fix” to all of the state’s complex energy challenges but that there were aspects all sides could agree on.

CBIA also agrees, and believes that any final legislation should:
• Include a comprehensive long-term energy plan for the state that will focus on reducing costs
• Help Connecticut consumers become more efficient and better informed energy users
• Identify and remove barriers to ensuring that the state always has access to adequate, stable and affordable energy resources

RGGI implementation
One additional issue concern is how the state can implement the Regional Greenhouse Gas Initiative (RGGI) in Connecticut without triggering additional significant price increases in Connecticut’s energy costs.

RGGI is an effort to limit the carbon dioxide (CO2) emissions from power-generating units in the Northeast. Generating facilities whose current emissions do not meet the cap requirements must either reduce their energy production or obtain “CO2 allowances” to make up the difference.

Viable options
CBIA believes that these allowances should be made available to the power-generating facilities to help offset the higher costs of complying with RGGI.

One option, which has been used in similar programs elsewhere, is to simply give them to the energy generators that need them to comply with stricter emission limits.

Another option is to sell allowances only to energy generators at a price determined in accordance with principles stated in the RGGI agreement between the states. While this approach would increase energy prices, it would at least provide relatively stable prices that businesses could plan around.

As lawmakers continue to debate what the final legislation will be, CBIA continues to support proposals that will encourage greater conservation, energy efficiency tax exemptions, and expedited distributed generation siting — common-ground solutions that can and should be adopted this year.

For more information, contact CBIA’s Bonnie Stewart at 860-244-1925 or stewartb@cbia.com.

CBIA Action Center

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