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02/13/2018 02:49 PM

State Reps. Reed and Steinberg Call for Restoration of Energy Efficiency Funds


Cuts Hurting Small Businesses and Energy Consumers

Feb. 13, 2018: Energy and Technology Committee House Chair Lonnie Reed (D-Branford) and State Rep. Jonathan Steinberg (D-Westport), and energy efficiency contractors and advocates held a press conference Tuesday calling for the restoration of energy efficiency funds.

Funded through a surcharge on consumers' electric bills, the Connecticut Energy Efficiency Fund supports programs that help households reduce energy usage. The biennium state budget passed in October diverted $145 million of those payments to balance the budget. Rep. Reed has introduced legislation that would repeal the diversion of ratepayer money to the state's general fund.

"It's critical that we all begin to understand how vital Energy Efficiency is to strengthening and growing Connecticut's economy. Energy efficiency is so much more than caulking and insulation. We are talking about an industry cluster that is estimated to support at least 34,000 jobs in this state; and thousands more if you include other downstream companies that manufacture key components such as windows and lighting and HVAC systems; and the design and build architects and contractors who retrofit factories and other commercial enterprises," Rep. Reed said. "We are talking about an incredibly important workforce of taxpaying professionals with families to support. We must restore funding and stop bait-and-switch tactics.  We must stop sweeping essential resources that are paid for by utility ratepayers who think they are investing in efficiency and a cleaner, greener, healthier environment."

"Connecticut is known to be a high energy cost state. While we pursue the shift from fossil fuels to renewable, distributed energy sources, we must also commit to energy efficiency initiatives across the board. After all, the cheapest energy is the energy we don't use in the first place!" Rep. Steinberg said. "The funds diverted last year undermine our ability to achieve such efficiencies and support the companies which provide them."

Energy efficiency contractors said their businesses are being harmed by the cuts, and that the losses will continue if the funds are not restored. Efficiency for All, an advocacy group created by energy efficiency contractors, estimates as many as 6,800 industry jobs could be lost.

"Energy Efficiency (EE) is an undervalued economic tool for our state economy, our residents, and our businesses. Addressing residential and building energy loss can lower heating and cooling costs by up to 30%. Reducing wasted energy results in lower operating expenses and frees up capital. EE promotes business competitiveness, helps families and at-risk populations afford household necessities such as medicine, food, and education, and spurs economic growth, while maintaining 34,000 local jobs," said Leticia Colon de Mejias, CEO of Energy Efficiencies Solutions.

She continued, "Energy efficiency consistently reduces our peak demand, lowering the cost of electricity for everyone in Connecticut, while protecting our environment and human health. Diverting EE funds is not just disappointing; it is fiscally irresponsible and will result in higher electricity bills for Connecticut's households, businesses, and state properties."

"Home Performance Alliance of CT (HPACT) thanks our lawmakers, in advance, for their courage in fixing a mistake created in the last session," said Vivian Perez of HPACT and HE-Energy Solutions LLC. "Monies returned to Conservation and Load Management will ensure CT ratepayers can continue to reap the benefits of EE products and services they were promised when the fund was set up; and CT Energy Efficiency tradespeople can continue to earn their income."

"According to the 2016 Energy Efficiency Board's Program and Operations Report, energy efficiency programs return $2.30 in energy system benefits for every $1 invested. According to a 2016 CT Green Bank report on clean energy jobs, every $1 million invested in energy efficiency weatherization programs yielded 18 job-years in return — higher than any other clean energy job," said Kyle Ellsworth, Director of Community Relations and Government Affairs at Efficiency For All.

"There are over 300,000 households in Connecticut that cannot afford their energy. Low- and moderate-income households are vulnerable to high energy rates; in fact, their energy burdens are up to 25% of their household income. Lowering energy waste can help these households apply their already stretched resources towards basic necessities like food, housing, transportation and in some cases, medical bills," said Brenda Watson, Executive Director of Operation Fuel.

"Climate change is one of the most pressing public health issues of our time and we're already experiencing impacts in Connecticut.  More extreme heat days can lead to dehydration, heat stroke and cause cardiovascular events like heart attacks.  More frequent poor air quality days can lead to exacerbations of asthma and other respiratory conditions. Energy efficiency initiatives, like those provided by EnergizeCT programs, are critical to reducing the impacts of climate change. Recent raids of energy efficiency funds cost jobs, hurt Connecticut's economy and will harm public health and the environment," said Anne Hulick, Director of Connecticut Clean Water Action/Clean Water Fund.

"Connecticut's budget woes partially reflect a broader economic crisis that continues to hit working families the hardest, as the state suffers from a deficit in good jobs.  At the same time, we face a looming climate crisis that has already brought more severe storms and major flooding to coastal communities," said John Humphries, Organizer for the CT Roundtable on Climate and Jobs; and a member of the Governor's Council on Climate Change. "Fortunately, these two crises have the same solution: we need to put people to work protecting the climate."

"Raiding Connecticut's energy efficiency funds does measurable harm to our state economy: without the programs they support, efficiency businesses will be forced to cut employees and may even leave the state — taking good jobs with them — and families miss out on energy savings that can make a big difference on electric bills," said Claire Coleman, climate and energy attorney at Connecticut Fund for the Environment. "We ask state legislators to put Connecticut back on the path to a clean energy future this year by strengthening the state's investments in energy efficiency."