General Assembly Moves to Restore Raided Energy Funds

It could be considered the putting things back where they belong bill.

The Senate recently passed SB 1157, which will restore the Energy Conservation and Load Management Fund, or the CT Energy Efficiency Fund. Restore being the operative word.

Last year, the General Assembly took 35 percent, or $956 million, from the dedicated CT Energy Efficiency Fund and swept it into the general fund. It was done to help stop the state from hemorrhaging funds, said several legislators. But the move left many legislators with a bad feeling.

“I think from a public policy point of view and on a philosophical level that fund wasn’t funded with taxpayer money,” said state Rep. Vincent Candelora, a Republican representing East Haven and North Branford in the 86th House District. “So regardless of the extraordinary times we’re in we should never have taken funds from that. What we did a year ago was wrong.”

Restoration of the fund could put electricians back to work, said Candelora, who sits on the Finance, Revenue and Bonding Committee.

He said passage of the bill will help mitigate the state’s high energy costs and help stabilize the private sector.

That explains why 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 principal 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.”

When the GA voted to re-direct the funds last spring it was considered by some as necessary. But many business and environmental leaders saw the move as deceptive.

The House has yet to vote on the bill, as of Sat. June 4 it appeared likely the bill will be incorporated into another, larger bill, Lavielle said. 

"Although SB 1157 doesn't seem to have been folded into SB1, my energy colleagues seem to feel now that it's going to be folded into a budget implementer bill yet to come.  That means the concept is preserved, just not with its own bill number," Lavielle said.

“We’ve never been big on misappropriation of funds. We don’t like the message it sent – that you can taking environmental efficiency money or environmental conservation money to be used as a slush fund,” said Louis Burch, program coordinator for Citizens Campaign for the Environment (CCE).

Before the raid, the money was invested in cost-effective energy efficiency, which stimulated economic growth. It provided low-cost in-home energy assessments to help homeowners figure out what needs weatherizing and where there can be water conservation. It also offered rebates to residents and businesses who upgraded inefficient, old appliances and lighting.

According to CCE, the fund saved ratepayers more than $5.5 billion over the last decade. A few surpluses later the state says could reduce transfer to $480 million. So that starting in April 2012 further reduce it.

Richard Soderman, director of legislative policy and strategy for Northeast Utilities Service Co., said the utility 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 retrofit and upgrade their equipment is important, Brown said.

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 businesses 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.