Governor Malloy Unveils Comprehensive Energy Strategy

by Pullman & Comley, LLC
Contact

[authors: Fred Klein & Lee Hoffman]

On October 5, 2012, Connecticut Governor Dannel Malloy unveiled a comprehensive energy strategy designed to enhance energy efficiency opportunities, provide greater access to a variety of fuels for heat and power, lower energy costs and better protect the environment and natural resources.

Key components of the strategy include: making cleaner burning lower-cost natural gas available to more than 250,000 residents and 75 percent of businesses in the next seven years, and expanding efficiency programs to reduce energy use.  The plan will also reexamine the Renewable Portfolio Standards – which call for 20 percent renewable power by 2020 – potentially raising the standard and increasing the mix of renewable options. It moves away from subsidizing favored technologies or companies toward a flexible “finance” model that encourages entrepreneurship and private sector leadership. Combined, the strategy is expected to generate at least 10,000 jobs. At more than 250 pages, the draft energy strategy is indeed comprehensive and will focus on five key areas, which are discussed briefly below.

ENERGY EFFICIENCY STRATEGY

The draft energy strategy seeks to utilize “all cost-effective” energy efficiency in order to:

  • Reach all sectors and all buildings;
  • Improve efficiencies in HVAC, insulation, boilers, and manufacturing processes;
  • Leverage private capital through innovative financing including the Clean Energy Finance and Investment Authority (CEFIA), Connecticut’s first-in-the-nation “Green Bank,” standardized energy efficiency performance contracts, and the state’s new Commercial Property-Assessed Clean Energy (C-PACE) program;
  • Establish building efficiency standards for both new construction and retrofits; and
  • Advance information technology opportunities, including a smart grid and advanced meters.

ELECTRICITY SECTOR STRATEGY

With the goal of providing cheaper, cleaner, and more reliable electricity, the strategy proposes to:

  • Contain grid costs through proper planning, infrastructure investments, and engagement in federal (e.g., FERC) and regional energy (e.g., ISO-NE) decision-making processes;
  • Use economic incentives to promote a portfolio of alternative energy technologies that can compete with existing fossil fuel generation;
  • Induce private sector investment in renewables through CEFIA, Zero and Low Emissions Renewable Energy Credits (ZRECs and LRECs), and other innovative financing; 
  • Study Connecticut’s Renewable Portfolio Standard (currently targeting 20 percent renewable power by 2020) to potentially: (1) raising the target, (2) broadening what counts as “renewable,” and (3) expanding in-state clean power generation; and
  • Promote more “distributed generation” through virtual net metering, submetering and a pilot program of microgrids that would keep critical facilities (e.g., hospitals, prisons, sewage treatment plants, first responders, warming centers, grocery stores, gas stations, pharmacies, banks, and phone charging locations, etc.) “up” when the grid is down. 

INDUSTRY SECTOR STRATEGY

In order to spur economic competitiveness and  growth, the strategy would increase the focus on the manufacturing sector to:

  • Ensure that energy efficiency programs reach all of the state’s manufacturing companies;
  • Provide the industrial sector with support for efficiency investments to include process efficiency programs and combined heat and power projects; and
  • Prioritize factories and other industrial “anchor loads” in the extension of natural gas mains.

TRANSPORTATION SECTOR STRATEGY

According to the strategy document, transportation accounts for 32 percent of the energy consumed in Connecticut and an even higher percentage of the fossil fuels burned. Therefore, a high priority of the energy strategy calls for:

  • Secure funding for transportation infrastructure;  and
  • Investment in a clean fuels/vehicles infrastructure, including electric vehicle charging stations, conversion of fleets to natural gas, Liquefied Natural Gas stations and hydrogen filling stations, and development of second-generation biofuels such as biodiesel from food waste.

NATURAL GAS SECTOR STRATEGY 

Harnessing the availability of cleaner burning domestic shale gas at prices that are significantly lower than oil, the strategy is designed to bring Connecticut up to par with neighboring states by making gas available to as many as 300,000 additional Connecticut end-users, beginning with roughly 217,000 customers who are on gas mains now but not heating with gas. Incentives would include:

  • Financing options to eliminate the upfront burden of conversion to natural gas;
  • Enabling potential gas customers who are near gas mains to have their connections financed by the state’s gas utilities and repaid through the added revenues of the new customers; and
  • Adding roughly 900 miles of gas mains with a particular focus on providing “anchor loads” (e.g., factories, hospitals, schools, or other facilities with significant energy consumption).

The Comprehensive Energy Strategy is designed to launch a dialogue that will be the subject of a series of public hearings and technical meetings over the next several months.  Interested persons and businesses are encouraged to submit comments.  The draft strategy is expected to be finalized by the beginning of the year and programs will be developed to implement the strategy at that time.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Pullman & Comley, LLC | Attorney Advertising

Written by:

Pullman & Comley, LLC
Contact
more
less

Pullman & Comley, LLC on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.