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repealed and the following is substituted in lieu thereof (Effective October 2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