Connecticut 2025 Regular Session

Connecticut House Bill HB07091 Compare Versions

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5-General Assembly Substitute Bill No. 7091
5+General Assembly Raised Bill No. 7091
66 January Session, 2025
7+LCO No. 5129
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10+Referred to Committee on GOVERNMENT OVERSIGHT
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12+
13+Introduced by:
14+(GOS)
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12-AN ACT CONCERNING AUDITS OF THE UTILITY PROGRAMS
13-OVERSEEN BY THE ENERGY CONSERVATION MANAGEMENT
14-BOARD.
19+AN ACT CONCERNING AUDITS OF THE ENERGY ASSESSMENT
20+PROGRAM FOR RESIDENTIAL HOMEOWNERS.
1521 Be it enacted by the Senate and House of Representatives in General
1622 Assembly convened:
1723
18-Section 1. Subsection (d) of section 16-245m of the general statutes is 1
24+Section 1. Subsection (f) of section 16-245n of the general statutes is 1
1925 repealed and the following is substituted in lieu thereof (Effective October 2
2026 1, 2025): 3
21-(d) (1) Not later than November 1, 2012, and every three years 4
22-thereafter, electric distribution companies, as defined in section 16-1, in 5
23-coordination with the gas companies, as defined in section 16-1, shall 6
24-submit to the Energy Conservation Management Board a combined 7
25-electric and gas Conservation and Load Management Plan, in 8
26-accordance with the provisions of this section, to implement cost-9
27-effective energy conservation programs, demand management and 10
28-market transformation initiatives. All supply and conservation and load 11
29-management options shall be evaluated and selected within an 12
30-integrated supply and demand planning framework. Services provided 13
31-under the plan shall be available to all customers of electric distribution 14
32-companies and gas companies, provided a customer of an electric 15
33-distribution company may not be denied such services based on the fuel 16
34-such customer uses to heat such customer's home. The Energy 17
35-Conservation Management Board shall advise and assist the electric 18 Substitute Bill No. 7091
27+(f) (1) The board shall issue annually a report to the Department of 4
28+Energy and Environmental Protection reviewing the activities of the 5
29+Connecticut Green Bank in detail and shall provide a copy of such 6
30+report, in accordance with the provisions of section 11-4a, to the joint 7
31+standing committees of the General Assembly having cognizance of 8
32+matters relating to energy, the environment, banking and commerce. 9
33+The report shall include a description of the programs and activities 10
34+undertaken during the reporting period jointly or in collaboration with 11
35+the Conservation and Load Management Plan established pursuant to 12
36+section 16-245m. 13
37+(2) The Clean Energy Fund and the Environmental Infrastructure 14
38+Fund shall be audited annually. Such audits shall be conducted with 15
39+Raised Bill No. 7091
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40-distribution companies and gas companies in the development of such 19
41-plan. The Energy Conservation Management Board shall approve the 20
42-plan before transmitting it to the Commissioner of Energy and 21
43-Environmental Protection for approval. The commissioner shall, in an 22
44-uncontested proceeding during which the commissioner may hold a 23
45-public meeting, approve, modify or reject said plan prepared pursuant 24
46-to this subsection. Following approval by the commissioner, the board 25
47-shall assist the companies in implementing the plan and collaborate 26
48-with the Connecticut Green Bank to further the goals of the plan. Said 27
49-plan shall include a detailed budget sufficient to fund all energy 28
50-efficiency that is cost-effective or lower cost than acquisition of 29
51-equivalent supply, and shall be reviewed and approved by the 30
52-commissioner. The Public Utilities Regulatory Authority shall, not later 31
53-than sixty days after the plan is approved by the commissioner, ensure 32
54-that the balance of revenues required to fund such plan is provided 33
55-through fully reconciling conservation adjustment mechanisms. Electric 34
56-distribution companies shall collect a conservation adjustment 35
57-mechanism that ensures the plan is fully funded by collecting an 36
58-amount that is not more than the sum of six mills per kilowatt hour of 37
59-electricity sold to each end use customer of an electric distribution 38
60-company during the three years of any Conservation and Load 39
61-Management Plan. The authority shall ensure that the revenues 40
62-required to fund such plan with regard to gas companies are provided 41
63-through a fully reconciling conservation adjustment mechanism for 42
64-each gas company of not more than the equivalent of four and six-tenth 43
65-cents per hundred cubic feet during the three years of any Conservation 44
66-and Load Management Plan. [Said] Such plan shall include steps that 45
67-would be needed to achieve the goal of weatherization of eighty per cent 46
68-of the state's residential units by 2030 and to reduce energy consumption 47
69-by 1.6 million MMBtu, or the equivalent megawatts of electricity, as 48
70-defined in subdivision (4) of section 22a-197, annually each year for 49
71-calendar years commencing on and after January 1, 2020, up to and 50
72-including calendar year 2025. Each program contained in the plan shall 51
73-be reviewed by such companies and accepted, modified or rejected by 52
74-the Energy Conservation Management Board prior to submission to the 53 Substitute Bill No. 7091
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79-commissioner for approval. The Energy Conservation Management 54
80-Board shall, as part of its review, examine opportunities to offer joint 55
81-programs providing similar efficiency measures that save more than 56
82-one fuel resource or otherwise to coordinate programs targeted at 57
83-saving more than one fuel resource. Any costs for joint programs shall 58
84-be allocated equitably among the conservation programs. The Energy 59
85-Conservation Management Board shall give preference to projects that 60
86-maximize the reduction of federally mandated congestion charges. 61
87-(2) There shall be a joint committee of the Energy Conservation 62
88-Management Board and the board of directors of the Connecticut Green 63
89-Bank. The boards shall each appoint members to such joint committee. 64
90-The joint committee shall examine opportunities to coordinate the 65
91-programs and activities funded by the Clean Energy Fund pursuant to 66
92-section 16-245n with the programs and activities contained in the plan 67
93-developed under this subsection and to provide financing to increase 68
94-the benefits of programs funded by the plan so as to reduce the long-69
95-term cost, environmental impacts and security risks of energy in the 70
96-state. Such joint committee shall hold its first meeting on or before 71
97-August 1, 2005. 72
98-(3) Programs included in the plan developed under subdivision (1) of 73
99-this subsection shall be screened through cost-effectiveness testing that 74
100-compares the value and payback period of program benefits for all 75
101-energy savings to program costs to ensure that programs are designed 76
102-to obtain energy savings and system benefits, including mitigation of 77
103-federally mandated congestion charges, whose value is greater than the 78
104-costs of the programs. Program cost-effectiveness shall be [reviewed by 79
105-the Commissioner of Energy and Environmental Protection] audited by 80
106-the Auditors of Public Accounts annually, or otherwise as is practicable, 81
107-and shall incorporate the results of the evaluation process set forth in 82
108-subdivision (4) of this subsection. If a program is determined by the 83
109-auditors to fail the cost-effectiveness test as part of the review process, 84
110-it shall either be modified to meet the test or shall be terminated, unless 85
111-it is integral to other programs that in combination are cost-effective. On 86
112-or before March 1, 2005, and on or before March first annually thereafter, 87 Substitute Bill No. 7091
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117-the board shall provide a report, in accordance with the provisions of 88
118-section 11-4a, to the joint standing committees of the General Assembly 89
119-having cognizance of matters relating to energy and the environment 90
120-that documents (A) expenditures and fund balances and evaluates the 91
121-cost-effectiveness of such programs conducted in the preceding year, 92
122-and (B) the extent to and manner in which the programs of [such] said 93
123-board collaborated and cooperated with programs, established under 94
124-section 7-233y, of municipal electric energy cooperatives. To maximize 95
125-the reduction of federally mandated congestion charges, programs in 96
126-the plan may allow for disproportionate allocations between the amount 97
127-of contributions pursuant to this section by a certain rate class and the 98
128-programs that benefit such a rate class. Before conducting such 99
129-evaluation, the board shall consult with the board of directors of the 100
130-Connecticut Green Bank. The report shall include a description of the 101
131-activities undertaken during the reporting period. 102
132-(4) The Commissioner of Energy and Environmental Protection shall 103
133-adopt an independent, comprehensive program evaluation, 104
134-measurement and verification process for the audit conducted by the 105
135-Auditors of Public Accounts to ensure the Energy Conservation 106
136-Management Board's programs are administered appropriately and 107
137-efficiently, comply with statutory requirements, programs and 108
138-measures are cost effective, evaluation reports are accurate and issued 109
139-in a timely manner, evaluation results are appropriately and accurately 110
140-taken into account in program development and implementation, and 111
141-information necessary to meet any third-party evaluation requirements 112
142-is provided. An annual schedule and budget for evaluations as 113
143-determined by the board shall be included in the plan filed with the 114
144-commissioner pursuant to subdivision (1) of this subsection. The electric 115
145-distribution and gas company representatives and the representative of 116
146-a municipal electric energy cooperative may not vote on board plans, 117
147-budgets, recommendations, actions or decisions regarding such process 118
148-or its program evaluations and their implementation. Program and 119
149-measure evaluation, measurement and verification shall be conducted 120
150-on an ongoing basis, with emphasis on impact and process evaluations, 121 Substitute Bill No. 7091
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155-programs or measures that have not been studied, and those that 122
156-account for a relatively high percentage of program spending. 123
157-Evaluations shall use statistically valid monitoring and data collection 124
158-techniques appropriate for the programs or measures being evaluated. 125
159-All evaluations shall contain a description of any problems encountered 126
160-in the process of the evaluation, including, but not limited to, data 127
161-collection issues, and recommendations regarding addressing those 128
162-problems in future evaluations. The board shall contract with one or 129
163-more consultants not affiliated with the board members to act as an 130
164-evaluation administrator, advising the board regarding development of 131
165-a schedule and plans for evaluations and overseeing the program 132
166-evaluation, measurement and verification process on behalf of the 133
167-board. Consistent with board processes and approvals and the 134
168-[Commissioner of Energy and Environmental Protection's] auditors' 135
169-decisions regarding evaluation, such evaluation administrator shall 136
170-implement the evaluation process by preparing requests for proposals 137
171-and selecting evaluation contractors to perform program and measure 138
172-evaluations and by facilitating communications between evaluation 139
173-contractors and program administrators to ensure accurate and 140
174-independent evaluations. In the evaluation administrator's discretion 141
175-and at his or her request, the electric distribution and gas companies 142
176-shall communicate with the evaluation administrator for purposes of 143
177-data collection, vendor contract administration, and providing 144
178-necessary factual information during the course of evaluations. The 145
179-evaluation administrator shall bring unresolved administrative issues 146
180-or problems that arise during the course of an evaluation to the board 147
181-for resolution, but shall have sole authority regarding substantive and 148
182-implementation decisions regarding any evaluation. Board members, 149
183-including electric distribution and gas company representatives, may 150
184-not communicate with an evaluation contractor about an ongoing 151
185-evaluation except with the express permission of the evaluation 152
186-administrator, which may only be granted if the administrator believes 153
187-the communication will not compromise the independence of the 154
188-evaluation. The evaluation administrator shall file evaluation reports 155
189-with the board, [and with] the Commissioner of Energy and 156 Substitute Bill No. 7091
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194-Environmental Protection in its most recent uncontested proceeding 157
195-pursuant to subdivision (1) of this subsection and the Auditors of Public 158
196-Accounts and the board shall post a copy of each report on its Internet 159
197-web site. The board and its members, including electric distribution and 160
198-gas company representatives, may file written comments regarding any 161
199-evaluation with the [commissioner] auditors or for posting on the 162
200-board's Internet web site. Within fourteen days of the filing of any 163
201-evaluation report, the commissioner, auditors, members of the board or 164
202-other interested persons may request in writing, and the commissioner, 165
203-in conjunction with the auditors, shall conduct, a transcribed technical 166
204-meeting to review the methodology, results and recommendations of 167
205-any evaluation. Participants in any such transcribed technical meeting 168
206-shall include the evaluation administrator, the evaluation contractor 169
207-and the Office of Consumer Counsel at its discretion. On or before 170
208-November 1, 2011, and annually thereafter, the board shall report to the 171
209-joint standing committee of the General Assembly having cognizance of 172
210-matters relating to energy, with the results and recommendations of 173
211-completed program evaluations. 174
212-(5) Programs included in the plan developed under subdivision (1) of 175
213-this subsection may include, but need not be limited to: (A) 176
214-Conservation and load management programs, including programs 177
215-that benefit low-income individuals; (B) research, development and 178
216-commercialization of products or processes which are more energy-179
217-efficient than those generally available; (C) development of markets for 180
218-such products and processes; (D) support for energy use assessment, 181
219-real-time monitoring systems, engineering studies and services related 182
220-to new construction or major building renovation; (E) the design, 183
221-manufacture, commercialization and purchase of energy-efficient 184
222-appliances and heating, air conditioning and lighting devices; (F) 185
223-program planning and evaluation; (G) indoor air quality programs 186
224-relating to energy conservation; (H) joint fuel conservation initiatives 187
225-programs targeted at reducing consumption of more than one fuel 188
226-resource; (I) conservation of water resources; (J) public education 189
227-regarding conservation; and (K) demand-side technology programs 190 Substitute Bill No. 7091
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232-recommended by the Conservation and Load Management Plan. 191
233-Support for such programs may be by direct funding, manufacturers' 192
234-rebates, sale price and loan subsidies, leases and promotional and 193
235-educational activities. The Energy Conservation Management Board 194
236-shall periodically review contractors to determine whether they are 195
237-qualified to conduct work related to such programs and to ensure that 196
238-in making the selection of contractors to deliver programs, a fair and 197
239-equitable process is followed. There shall be a rebuttable presumption 198
240-that such contractors are deemed technically qualified if certified by the 199
241-Building Performance Institute, Inc. or by an organization selected by 200
242-the commissioner. The plan shall also provide for expenditures by the 201
243-board for the retention of expert consultants and reasonable 202
244-administrative costs provided such consultants shall not be employed 203
245-by, or have any contractual relationship with, an electric distribution 204
246-company or a gas company. Such costs shall not exceed five per cent of 205
247-the total cost of the plan. 206
248-Sec. 2. (NEW) (Effective October 1, 2025) (a) The Auditors of Public 207
249-Accounts shall audit the Energy Conservation Management Board's 208
250-programs, pursuant to subsection (d) of section 16-245m of the general 209
251-statutes, as amended by this act, based upon the activities of such 210
252-programs during the preceding year. Such audit shall include, but need 211
253-not be limited to: 212
254-(1) A calculation of any savings attributable to residential behavior 213
255-programs; 214
256-(2) An examination of the cost-effectiveness of current programs in 215
257-terms of whether retrofits or renovations to existing buildings would 216
258-provide a greater return on investment than investments in new 217
259-construction, which is subject to requirements for energy efficiency 218
260-under the State Building Code; 219
261-(3) An assessment of whether the existing focus of demand response 220
262-funds on residences would have greater impact if allocated to 221
263-commercial and industrial sectors where greater reductions in peak 222 Substitute Bill No. 7091
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268-demands of energy are possible; 223
269-(4) An assessment of the efficiency of the Home Energy Solutions 224
270-Audit conducted for low-income individuals; and 225
271-(5) An assessment of the effectiveness of community outreach 226
272-programs in increasing participation and a recommendation concerning 227
273-whether funds may be better spent on incentives for efficiency 228
274-upgrades. 229
275-(b) The Energy Conservation Management Board, the Commissioner 230
276-of Energy and Environmental Protection, electric distribution 231
277-companies, gas companies and any consultant hired by the board 232
278-pursuant to subdivision (4) of subsection (d) of section 16-245m of the 233
279-general statutes, as amended by this act, shall provide any information 234
280-that the auditors deem necessary to conduct such audit. 235
45+generally accepted auditing standards by independent certified public 16
46+accountants certified by the State Board of Accountancy. Such 17
47+accountants may be the accountants for the Connecticut Green Bank. 18
48+(3) Any entity that receives financing for a clean energy or 19
49+environmental infrastructure project from the Clean Energy Fund or the 20
50+Environmental Infrastructure Fund shall provide the board an annual 21
51+statement, certified as correct by the chief financial officer of the 22
52+recipient of such financing, setting forth all sources and uses of funds in 23
53+such detail as may be required by the bank for such project. The 24
54+Connecticut Green Bank shall maintain any such audits for not less than 25
55+five years. Residential projects for buildings with one to four dwelling 26
56+units are exempt from this and any other annual auditing requirements, 27
57+except that (A) residential projects may be required to grant their utility 28
58+companies' permission to release their usage data to the Connecticut 29
59+Green Bank, and (B) in the case of any entity that receives funding from 30
60+the Clean Energy Fund for the conducting of energy assessments for 31
61+residential homeowners, the accounts of such entity shall be subject to 32
62+biennial audit by the Auditors of Public Accounts and such entity shall 33
63+provide any information said auditors deem necessary to conduct such 34
64+audit. 35
28165 This act shall take effect as follows and shall amend the following
28266 sections:
28367
284-Section 1 October 1, 2025 16-245m(d)
285-Sec. 2 October 1, 2025 New section
68+Section 1 October 1, 2025 16-245n(f)
28669
287-GOS Joint Favorable Subst.
70+Statement of Purpose:
71+To subject entities that provide energy assessments funded by the Clean
72+Energy Fund to residential homeowners to biennial audit by the
73+Auditors of Public Accounts.
74+
75+[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
76+that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
77+underlined.]
28878