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OLR Bill Analysis
sSB 961 (File 240, as amended by Senate "A")*
AN ACT CONCERNING CARBON -FREE SCHOOL REQUIREMENTS
FOR NEW SCHOOL CONSTRUCTION AND ESTABLISHING OTHER
SCHOOL CONSTRUCTION AND PUBLIC HEALTH REQUIREMENTS
FOR SCHOOL DISTRICTS.
SUMMARY
This bill requires the Connecticut Green Bank, by July 1, 2024, to
establish (1) a low-interest financing program for solar power systems
installation and energy efficiency improvements at public schools
opting to participate and (2) an associated fund for this purpose (the
“Public Schools Solar Power Systems and Energy Efficiency Projects
Financing Program” and “Public Schools Solar Power Systems and
Energy Efficiency Financing Fund,” respectively).
The bill requires public school districts seeking program financing for
solar power system or energy efficiency projects to first commission
feasibility studies to determine the cost-effectiveness of the
improvements. The Green Bank must do the solar power studies and
utilities must conduct the energy efficiency studies.
Under the bill, the Green Bank’s fund to provide this financing is
capitalized with (1) revenue bonds it issues that are backed by revenues
from solar power systems and energy efficiency or renewable energy
projects for public school districts in the state with a targeted investment
of $400 million and (2) $25 million from bonds issued by the state or
capital funds. Of this initial funding, 60% must be allotted to school
districts serving environmental justice communities.
The bill correspondingly expands the Green Bank’s authority and
responsibilities to, among other things, administer the financing
program and related fund, supervise the feasibility studies, evaluate the
program, and hire certain experts to fulfill its new role. Under the bill, 2023SB-00961-R01-BA.DOCX
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school districts receiving program financing must measure and report
annually on energy consumption, solar generation, and greenhouse gas
(GHG) emissions.
*Senate Amendment “A” strikes the underlying bill, which generally
(1) would have required public school building construction,
replacement, and extensions to be “zero-net energy” and would have
established a funding mechanism to provide associated loans through
the Green Bank and (2) included separate requirements for public
schools such as including climate change impacts in real property asset
assessment and management, school classroom temperatures, school
kitchen dishwashers, lead testing and remediation, and motor vehicle
idling signage.
EFFECTIVE DATE: Upon passage
PUBLIC SCHOOLS SOL AR POWER SYSTEMS AND ENERGY
EFFICIENCY PROJECTS FINANCING PROGRAM
The bill requires the Connecticut Green Bank to establish a “Public
Schools Solar Power Systems and Energy Efficiency Projects Financing
Program” by July 1, 2024, to provide financing to public school districts
that voluntarily install solar power systems and energy efficiency
improvements in conjunction with the construction, replacement,
renovation, or extension of a public school building. To do this, it
requires the Green Bank to designate a committee by December 31, 2023,
to oversee the program’s creation.
Under the bill, the financing is low-interest and for projects that yield
energy cost savings. “Financing” means funding or investment that
includes things like energy services agreements, loans, leases, or power
purchase agreements. The bill aims to provide $400 million for the
program financing (see below).
Under the bill, program financing must be for a fixed period and may
be used to satisfy non-federal match requirements for federal grants.
The bill additionally requires that school districts be able to keep, to the
greatest extent possible, any energy cost savings achieved from
undertaking new solar power system projects or energy efficiency 2023SB-00961-R01-BA.DOCX
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improvements.
The bill requires superintendents participating in this program to
prioritize projects by GHG emission reductions and cost-effectiveness,
undertaking the project that offers the best combination of the two
factors first. (However, a separate provision allows, rather than
requires, them to do this.)
Eligible Projects & Costs
Under the bill, program-eligible projects include things like the
following:
1. installing on-site Class I renewable energy sources (e.g., solar or
wind), energy efficient lighting or building control upgrades,
insulation or building envelope upgrades;
2. making heating, ventilation, and air conditioning repairs or
replacements;
3. planting and maintaining native shade tree species that reduce
energy consumption; and
4. renovating for strategic daylighting.
Eligible program costs include the reasonable costs to construct, alter,
or renovate public school buildings; associated site preparation and
development; site or building equipment and furnishing; architectural,
engineering, or construction management charges; commissioning of
building systems and training staff to maintain them; and associated
ordinary and reasonable legal fees.
Feasibility Studies
Solar Power. The bill requires each school district seeking program
financing for a solar power system project to first commission a solar
power feasibility study for the building involved that is performed by
the Green Bank. The Green Bank must perform these studies starting
July 1, 2024.
Under the bill, this feasibility study is a report determining whether 2023SB-00961-R01-BA.DOCX
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a proposed solar power system is cost-effective (i.e., the savings from an
improvement equal or exceed the improvement’s initial cost over its
useful life). The study may consider the costs to repair, upgrade, or
replace a building’s roof as part of the determination. It must (1) be done
by a trained and certified energy professional (i.e., a “qualified
professional”) who estimates the costs, savings, and GHG emissions
reductions for a solar power system on a building’s available rooftops,
parking lots, and other areas and (2) include a financial plan with
funding sources and uses, including federal incentives.
If a proposed solar power system is determined to be cost effective,
the superintendent may secure the relevant permits and contracts for it.
If the feasibility study determines that a solar power system is not
cost-effective because of roof repair, upgrade, or replacement costs, the
bill (1) allows the superintendent to make a good faith effort to ensure
that the building’s next scheduled roof replacement or major roof repair
project will allow the roof to support a solar power system and (2)
requires the school district to determine whether the replacement or
repair will allow for the system. And when it is determined that a roof
can support a system, the bill allows the superintendent to have it
installed under the bill’s program within two years after this
determination.
Energy Efficiency. The bill lays out a process for energy efficiency
projects similar to its process for determining if solar power projects are
feasible and for pursuing those projects.
Under the bill, a public school district seeking financing for an energy
efficiency project must work with an applicable energy or natural gas
utility provider to conduct an energy efficiency feasibility study for the
building involved and submit the study results to the Green Bank. An
“energy efficiency feasibility study” is a report created by a qualified
professional (see Solar Power, above) that (1) includes a financial plan
with funding sources and uses, including federal incentives and (2)
estimates costs, savings, and GHG emissions reductions for energy
efficiency improvements identified in an energy audit (i.e., an 2023SB-00961-R01-BA.DOCX
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inspection or survey of a building’s energy systems and an analysis of
current energy consumption and production).
The bill requires the energy audit to also identify opportunities for
improvements that would yield energy cost savings and GHG
emissions reductions. It must be performed by the electric distribution
company (EDC) (i.e., Eversource or United Illuminating) or natural gas
utility, as applicable, for the school district or by an independent
contractor if the district is not serviced by an EDC.
If a feasibility study determines that energy efficiency improvements
are cost-effective, the bill allows the superintendent to begin making the
improvements and put them in service.
However, if improvements will only be cost-effective when older
equipment is replaced at the end of its useful life, the bill allows the
superintendent to arrange for the equipment’s replacement with
energy-efficient equipment when the older equipment no longer works.
Superintendents may monitor conditions and expiration dates of the
older equipment and make the necessary preparations to replace it
when it expires or breaks down, including to upgrade circuit panels to
allow for the installation of a heat pump.
The bill exempts from these requirements replacements done on an
emergency basis and for cases of financial hardship.
Program Funding
The bill allocates program funding as follows:
1. 40% of the initial funding must be for all school districts in the
state and allotted according to a Connecticut Green Bank-
determined formula, which must consider need determined by
any solar power or energy efficiency feasibility study;
2. 60% of the program’s initial funding must be allocated
competitively for school districts in environmental justice
communities (see BACKGROUND); and 2023SB-00961-R01-BA.DOCX
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3. after the program’s third year operating, any amount that has not
been contractually allocated must be awarded competitively.
If the fund has insufficient funds, the bill prohibits the authorization
of projects under the program.
Labor Costs
Under the bill, each financing program recipient must pay
construction employees hired for the funded school improvements
wages and benefits that are at least equal to the state’s prevailing wage
and fringe benefit rates for the corresponding classification in which
they are employed.
Apprentice and Workforce Development Requirement
The bill requires that the contractors hired for a project receiving
program financing be enrolled in an apprenticeship program registered
with the federal Department of Labor (U.S. DOL) or a federally
recognized state apprenticeship agency. They must also partner with a
workforce development program in which the following individuals are
given opportunities for skill development that will enable them to
qualify for higher paying jobs: (1) employees who are residents of the
same municipality as the school project and (2) individuals with
employment barriers such as those traditionally underrepresented in
the relevant job.
A “workforce development program” under the bill is an
apprenticeship program registered with the U.S. Department of Labor
or a federally recognized state agency that actively trains employees,
has functioning training facilities, and regularly graduates apprentices
to journeyperson status who are placed in jobs or pre-apprenticeship
training.
PUBLIC SCHOOLS SOLAR POWER SYSTEMS AND ENERGY
EFFICIENCY FINANCING FUND
The bill establishes a “Public Schools Solar Power Systems and
Energy Efficiency Financing Fund” within the Connecticut Green Bank
to provide public schools with financing for projects authorized under 2023SB-00961-R01-BA.DOCX
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the bill. It capitalizes the fund with (1) revenue bonds issued by the
Green Bank and backed by revenues from solar power systems and
energy efficiency or renewable energy projects for public school districts
in the state with a targeted investment of $400 million and (2) $25 million
from bonds issued by the state or capital funds.
Under the bill, $400 million must be used for the Solar Power Systems
and Energy Efficiency Projects Financing Program the bill establishes,
and $25 million must be allocated to the Green Bank for feasibility study
grants, program oversight, public education, school district official
training, and technical assistance for project development. The bill
specifies that these funds supplement and do not replace other funding
for school districts to construct school facility improvements.
Under the bill, this fund consists of any funds required to be
deposited into it (e.g., appropriated funds, repayment of all loans
related to financing made from the fund, fund investment gains, and
donations or gifts). After 30 years, the fund’s unspent balance of the $25
million from state bonds or capital funds reverts to the General Fund.
NEW GREEN BANK RESPO NSIBILITIES
The bill correspondingly expands the Connecticut Green Bank’s
authority and responsibilities by requiring it to do the following:
1. supervise giving technical assistance to school districts seeking
to develop solar power systems and energy efficiency projects
under the bill’s provisions;
2. supervise technical assistance, project development, public
education, and training for public school district officials who are
involved in developing solar power systems and energy
efficiency projects;
3. administer the bill’s new Public Schools Solar Power Systems and
Energy Efficiency Projects Financing Program and associated
fund (see above);
4. supervise solar power and energy efficiency feasibility studies 2023SB-00961-R01-BA.DOCX
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performed under the bill’s provisions;
5. evaluate the program’s success and recommend improvements
to it; and
6. employ a staff of engineers, policy analysts, financial experts, and
community liaisons, or other experts needed to perform its
responsibilities.
ANNUAL SCHOOL DISTRI CT REPORTING
Under the bill, each public school district receiving program
financing must annually measure and report to the Connecticut Green
Bank on its energy consumption, solar generation, and subsequent GHG
emissions using Energy Star Portfolio Manager or an equivalent
platform. The Green Bank must then make this data publicly available
online.
The bill also requires each superintendent to publish an annual report
on the state of any solar power system or energy efficiency project in the
school district that is funded under the program. It allows any
consumer, employee, or taxpayer of the state (e.g., labor unions) to
request a report on the state of the solar power systems and energy
efficiency projects in a public school building from the superintendent,
which must be published in a report within 30 days after the request.
BACKGROUND
Environmental Justice Communities
By law, an “environmental justice community” is (a) any U.S. census
block group, as determined by the most recent census, for which at least
30% of the population consists of low-income people who are not
institutionalized and have an income below 200% of the federal poverty
level or (b) a distressed municipality (CGS § 22a-20a).
The Department of Economic and Community Development
annually designates distressed municipalities, based on high
unemployment and poverty, aging housing stock, and low or declining
rates of job, population, and per capita income growth (CGS § 32-9p).
The current listed (2022) distressed municipalities are Ansonia, 2023SB-00961-R01-BA.DOCX
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Bridgeport, Bristol, Chaplin, Derby, East Hartford, East Haven,
Griswold, Groton, Hartford, Meriden, Montville, New Britain, New
London, North Stonington, Norwich, Plainfield, Putnam, Sprague,
Sterling, Torrington, Waterbury, West Haven, Winchester, and
Windham.
Towns with current applicable census blocks (that are not also
distressed municipalities) are Bethel, Bloomfield, Branford, Brooklyn,
Canaan, Clinton, Columbia, Coventry, Cromwell, Danbury, East
Haddam, East Lyme, East Windsor, Ellington, Enfield, Essex, Fairfield,
Farmington, Glastonbury, Greenwich, Haddam, Hamden, Killingly,
Ledyard, Lisbon, Manchester, Mansfield, Middletown, Milford,
Naugatuck, New Fairfield, New Haven, New Milford, Newington,
North Canaan, Norwalk, Plainville, Portland, Preston, Ridgefield,
Rocky Hill, Sharon, Shelton, Simsbury, Southington, Stafford, Stamford,
Stonington, Stratford, Thomaston, Thompson, Vernon, Wallingford,
Waterford, Watertown, West Hartford, Wethersfield, Willington,
Windsor Locks, and Windsor.
COMMITTEE ACTION
Environment Committee
Joint Favorable Substitute
Yea 22 Nay 10 (03/10/2023)
Finance, Revenue and Bonding Committee
Joint Favorable
Yea 34 Nay 17 (05/08/2023)