Researcher: MF Page 1 4/6/21
OLR Bill Analysis
HB 6571
AN ACT CONCERNING THE COMMERCIAL PROPERTY
ASSESSED CLEAN ENERGY PROGRAM.
SUMMARY
This bill expands eligibility for the Green Bank’s Commercial
Property Assessed Clean Energy Program (C-PACE) by allowing the
program to finance, for qualifying commercial real property, the
installation of (1) zero-emission vehicle refueling infrastructure and (2)
resilience improvements (see BACKGROUND).
Generally, C-PACE finances certain energy improvement projects
and the property owner repays the costs through an assessment on the
property, backed by a lien. Current law requires the Green Bank to
adopt standards to ensure that the project’s energy cost savings over
the project’s useful life exceed its costs. The bill instead requires these
standards to determine whether the project’s combined projected
energy cost savings and other associated savings over its useful life
exceed its costs. The bill exempts zero-emission vehicle refueling
infrastructure and resilience improvement projects from these
standards and requires the Green Bank to develop separate eligibility
criteria for resilience projects.
Under current law, the types of financing generally available under
the program include loans, leases, and power purchase agreements.
Under the bill, C-PACE “financing” is funding or investment that at
least includes energy services agreements, leases, or power purchase
agreements. The bill does not define energy services agreements, but
generally, they allow a service provider to deliver energy-saving
services under a performance-based contract using provider-owned
and operated equipment.
EFFECTIVE DATE: July 1, 2021 2021HB-06571-R000271-BA.DOCX
Researcher: MF Page 2 4/6/21
RESILIENCE PROJECT ELIGIBILITY REQUIREMENTS
For resilience improvements, the bill requires the Green Bank to
consult with the Department of Energy and Environmental Protection
and the Connecticut Institute for Resilience and Climate Adaptation to
develop financing eligibility criteria consistent with state
environmental resource protection and community resilience goals.
Under current law, if a qualified property owner requests financing,
the Green Bank must require that an energy audit or a renewable
energy system feasibility analysis be performed on the property to
assess the project’s expected energy cost savings over its useful life
before approving financing. The bill additionally allows the Green
Bank to meet this requirement by requiring a resilience study on the
property to assess resilience cost savings over the useful life of
resilience improvements.
BACKGROUND
Resilience
By law, and under the bill, “resilience” means the ability to prepare
for and adapt to changing conditions and withstand and recover
rapidly from deliberate attacks, accidents, or naturally occurring
threats or incidents, including threats or incidents associated with
climate change impacts (CGS § 16-244aa).
Zero Emission Vehicles
By law, and under the bill, a “zero-emission vehicle” means a
battery electric vehicle, hybrid electric vehicle, range-extended electric
vehicle, and any vehicle certified by the California Air Resources
Board executive director to produce zero emission of any criteria
pollutant under all operational modes and conditions (CGS § 4a-67d).
COMMITTEE ACTION
Energy and Technology Committee
Joint Favorable
Yea 26 Nay 0 (03/18/2021)