Energy Efficiency Policies in Connecticut

By Ayla Kanber, Earth Forward Group

Published September 15, 2022

The United States is making efforts to tackle climate change by taking legislative actions, both on the federal and state level. Earth Forward Group has strong roots in Connecticut, where state policies are encouraging a shift toward energy efficiency and movement away from fossil fuel consumption.

Specifically, a new law took effect in July 2022 requiring the state to fully eliminate emissions in the electricity sector by 2040. This bill, called “An Act Concerning Climate Change Mitigation”, passed with support in both the House of Representatives and the Senate after failing to see a vote in the Senate in 2021. The bill is pending a final signature by Governor Lamont.

In terms of regulation, the Connecticut Department of Energy and Environmental Protection (DEEP) continues to provide stakeholder input on the development of the 2022 Comprehensive Energy Strategy (CES). The CES is published every four years to provide a guideline to state policymakers on meeting future energy needs and identify opportunities where they can reduce costs, ensure reliable energy availability, and mitigate public health and environmental impacts of Connecticut’s energy use.

Governor Lamont’s Executive Order 21–3 directs DEEP to include in the next CES a set of strategies to: (1) provide for more affordable heating and cooling for Connecticut residents and businesses, (2) achieve reductions in GHG emissions from residential buildings and industrial facilities as needed to enable the state to meet the economy-wide GHG reduction targets for 2030 and 2050 established in the Global Warming Solutions Act, and (3) improve the resilience of the state’s energy sector to extreme weather events, fuel commodity price spikes, and other disruptions.

— CT DEEP

Over the next several months, DEEP will host public meetings and has requested the public to submit written comments on the CES including topics focused on “Heat pump barriers and market strategies” and “Building thermal decarbonization.”

In June, the Connecticut Public Utility Regulatory Authority (PURA) announced a Program Operator for the Statewide Weatherization Barrier Remediation Program that will be available to low-income residents in late 2022. The program will utilize Federal funding from the American Rescue Plan to address and improve health and safety barriers such as mold and asbestos in up to 1,000 low-income households. Income-eligible households will receive energy efficiency improvements through either Connecticut’s state-managed or utility-managed weatherization program after barrier remediation.

The Conservation and Load Management Plan (C&LM Plan) is an energy efficiency and demand management investment plan that develops programs and initiatives to help Connecticut residents and businesses become more energy efficient.

Additionally, DEEP released approval of the 2022–2024 Conservation and Load Management (C&LM) Plan in June. This plan was submitted by state utilities in March to invest $708 million over three years to administer Connecticut’s energy efficiency programs with priorities to drive “equity, decarbonization, and energy affordability” across Residential, Commercial & Industrial, and Workforce & Community Outreach Programs. In accordance with the program regulation, DEEP will require that utilities implement their C&LM Plans to help reach state goals “to weatherize 80% of the state’s residential units by 2030”, “fully leverage the capabilities of AMI”, and “to contribute to a robust energy efficiency workforce in Connecticut.”

Despite the forward movement in the state toward energy efficiency, the Building Performance Association (BPA) notes that there were several bills regarding energy efficiency considered but not passed in Connecticut in 2022, including:

  • SB 292: An Act Concerning Heating Efficiency in New Residential Construction and Major Alterations of Residential Buildings would revise building codes starting in 2024 to prohibit the use of any electric resistance or fossil fuel combustion system as the primary source of heating, ventilation, air conditioning or water heating in residential new construction or in major alterations of residential buildings. The bill would also establish a program through the Department of Energy and Environmental Protection to train and educate contractors to provide services that allow for space heating without the use of fossil fuels. Neither chamber voted on the bill prior to the end of session.

  • HB 5041: An Act Concerning Home Energy Affordability for Home Renters would require landlords to provide a Home Energy Label for any dwelling unit listed publicly for rent by 2023, including information on the energy performance of the buildings’ insulation, windows, and HVAC systems. The bill, which was put forward by Governor Lamont, was passed in the House following amendments. The Senate did not vote on the bill before the end of session.

  • SB 14: An Act Concerning Home Energy Affordability for Home Buyers would require energy labels to be provided for all sales of residential property once property is listed for sale. This bill was submitted to the General Assembly at the Governor’s request. Homes constructed after the year 2000, foreclosures, trustee’s sales, and pre-foreclosure sales would be exempt from the requirement. The bill failed to report out of committee prior to the end of session.

  • SB 295: An Act Establishing Tax Credits for Energy Efficient Homes would create a one-time tax credit that can be applied after the purchase of a newly constructed energy efficient home from January 2022 until January 2026. The credit would be $2,500, or $5,000 for those filing jointly. “Energy efficient homes” must have a score of 50 or less on the Home Energy Rating System Index, or equivalent requirements for Energy Star certified homes (measured by a licensed third party). SB 295 was not reported out of committee prior to the end of session.

  • SB 53: An Act to Establish an Income Tax Credit for the Purchase of Energy Efficient Homes would create a one-time tax credit after the purchase of a newly constructed energy efficient home from January 2022 through January 2025. The credit would be $2,500, or $5,000 for those filing jointly. “Energy efficient homes” must have a score of 60 or higher on the Home Energy Rating System (HERS) Index. The bill was not reported out of committee prior to the end of session.

Overall, Connecticut has made great progress in advancing their energy efficiency agenda, and continues to be one of the states leading the legislative fight against climate change.

Click here to read more about legislation being considered in the state of Connecticut in 2022.

Click here to learn more about the Connecticut Department of Energy and Environmental Protection (DEEP).

Click here to learn more about the Comprehensive Energy Strategy (CES).

Click here to learn more about the Connecticut Public Utility Regulatory Authority (PURA).

Energy Efficiency, PolicyEFGEnergy Efficiency, Energy, Policy, Sustainable Development