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OLR Bill Analysis
HB 6444
AN ACT ALLOWING THE CONSTITUENT UNITS OF THE STATE
SYSTEM OF HIGHER EDUCATION TO ENTER INTO ENERGY -
SAVINGS PERFORMANCE CONTRACTS.
SUMMARY
This bill:
1. allows a constituent unit of higher education to establish its own
energy-savings performance contract process, rather than using
the Department of Energy and Environmental Protection’s
(DEEP) standardized process; and
2. extends, from 20 to 30 years, the limit on the financing payback
period for energy savings measures implemented by a
municipality or state agency (including a constituent unit) under
an energy-savings performance contract.
EFFECTIVE DATE: July 1, 2025
CONSTITUENT UNITS OF HIGHER EDUCATION
Currently, municipalities and state agencies (including constituent
units of higher education) may participate in DEEP’s standardized
energy-savings performance contract process, but only municipalities
may opt to establish their own process. The bill allows the constituent
units to opt out as well.
By law, the Department of Administrative Services must compile a
list of qualified energy service providers and state agencies must use a
provider on this list for one of these contracts. As with municipalities
currently, the bill allows a constituent unit to use this list or create its
own contractor qualification process.
As with municipalities currently, the bill allows a constituent unit to 2025HB-06444-R000005-BA.DOCX
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use funds designated for operating and capital expenses or utilities for
these contracts.
Under the bill, constituent units that do not opt out to create their
own process can continue to voluntarily take part in DEEP’s process. By
law, this process includes:
1. standard procedures and documents for these contracts, such as
requests for proposals, project recommendations and estimated
cost savings, and savings guarantees;
2. DEEP technical and analytical support , including for
procurement and assistance in arranging financing, and fees for
these services;
3. requirements for a request for proposals from at least three
qualified energy service providers and preparation of a cost-
effective feasibility analysis to use in choosing a provider;
4. requiring the chosen provider to prepare an audit estimating all
costs and cost savings for a project;
5. annual reconciliations that require the provider to pay any
shortfall in energy savings; and
6. restrictions on when savings calculations can be modified.
BACKGROUND
Energy-Savings Performance Contracts
By law, an energy-savings performance contract is a contract entered
into with a qualified energy service provider to evaluate, recommend,
and implement energy savings measures (improvements that reduce
energy or water consumption and operating costs and increase
efficiency). The contract must involve design and implementation of
equipment, may include operation and maintenance, and must
guarantee annual savings that at least equal the annual contract
payments over the life of contract.
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Constituent Units of Higher Education
By law, the constituent units of higher education are the (1)
University of Connecticut, including all its campuses, and (2)
Connecticut State Colleges and Universities, including the state
universities, regional community technical colleges, and Charter Oak
State College.
COMMITTEE ACTION
Higher Education and Employment Advancement Committee
Joint Favorable
Yea 17 Nay 0 (02/04/2025)