Energy bill approved, but funding sections vetoed

(June 7, 2007) A wide-ranging energy bill that addresses several priorities Connecticut’s business community identified as important to making sure consumers have access to affordable and reliable energy was approved by state lawmakers in the last week of the session.

Among other things, the energy bill:

• puts in place a new planning process to meet the state’s energy needs
• encourages the use of new technologies to help conserve energy
• adds new options to increase generation capacity in the state
• will reduce costs over time

Gov. Rell vetoed two sections of the bill because she said they violate the state's spending cap, but those sections are expected to be restored in the new state budget. The sections included $95 million restored to the state’s conservation and clean energy funds, and $2.5 million to expand Operation Fuel, a program to help poorer residents pay their fuel bills.

Other highlights of the energy bill:

• Extends and expands sales tax exemptions for energy efficiency
• Requires state agencies to study the siting, planning and preparedness of power plants and transmission facilities, and how to ensure their reliability during peak periods
• Expands funding for distributed generation (such as technologies like micro-turbines and fuel cells)
• Allows municipalities to create energy-improvement districts, to develop small power plans and conservation programs
• Establishes tax exemptions for fuel-efficient and hybrid vehicles
• Encourages the development of “advanced meters” – to help consumers control their energy use and costs

In addition, the bill sets the groundwork for the implementation of the Regional Greenhouse Gas Initiative (RGGI) in Connecticut.

The bill authorizes the state Department of Environmental Protection to manage the auction of CO2 allowances through the regulatory process, and provides the agency with flexibility on how to do that.

CBIA’s Board of Directors has said that it’s very important for Connecticut to enjoy a competitive advantage within the region regarding energy cost and reliability. Developing a comprehensive long-term energy plan for the state, as this bill calls for, is essential. It will help Connecticut consumers become more efficient energy users and ensure that consumers have access to adequate, stable and affordable energy resources .

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

CBIA Action Center

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