OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-301
AN ACT CONCERNING ENERGY EFFICIENCY STANDARDS AND
GRANTS FOR RETROFITTING PROJECTS.
Primary Analyst: TM 4/7/24
Contributing Analyst(s): EMG, CR, JS
Reviewer: PR
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 25 $ FY 26 $
Treasurer, Debt Serv. GF - See Below See Below See Below
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill (1) makes a variety of changes to existing energy efficiency
standards, (2) permits the Department of Energy and Environmental
Protection (DEEP) to adopt energy standards, (3) expands DEEP’s
multi-housing retrofit pilot program by allowing it to offer grants in
addition to loans resulting in a cost to the state.
Section 1 of the bill makes a variety of changes to energy efficiency
standards that have no direct fiscal impact on the state.
Sections 2 & 3 make several changes to the multi-housing retrofit
pilot program. It delays various program start and end dates by one
year, including delaying the effective date of $75 million of General
Obligation (GO) bonds for the program from FY 25 to FY 26.
A $50 million bond authorization for the program that became
effective in FY 24 remains unchanged. A delay in the debt service costs
is possible, to the extent that the existing $50 million authorization and
a portion of the additional $75 million authorization would otherwise
have been allocated before FY 26. 2024SB-00301-R000345-FN.DOCX Page 2 of 2
The bill also allows up to $20 million of the bonds to be used for
grants, in addition to the loans allowed under current law. This could
result in increased or more rapid use of funds authorized for the
program.
The program is funded through General Obligation (GO) bond funds.
Future General Fund debt service costs may be incurred at a different
rate to the degree that it causes authorized GO bond funds to be
expended at a different pace than they otherwise would have been. As
of March 1, 2024, the unallocated bond balance available under the
relevant authorization is $50 million.
Ratepayer Impact Statement
1
This bill contains provisions that have a potential impact on
ratepayers. The new energy efficiency standards imposed in section 1
results in savings for some ratepayers. Section 2 and 3 reduces barriers
to funding by permitting grants as well as loans and would result in
savings for some ratepayers to the extent grants are distributed.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation and the terms of any bonds
issued.
1
The state and municipalities are ratepayers and there may be impacted by policy
changes that affect electric rates