State and Local Policy Database

Connecticut

State Scorecard Rank

6

Connecticut

35.5Scored out of 50Updated 9/2016
State Government
Score: 6 out of 6
State Government Summary List All

Connecticut offers several financial incentives for consumers, including rebates, loans, and PACE financing. The state government leads by example by benchmarking energy usage in state buildings, requiring efficient public buildings and vehicles, and encouraging energy savings performance contracting. Connecticut does not have a building energy-use disclosure policy. Research and development focused on energy efficiency is conducted at several institutions within the state.

Financial Incentives List All

Financial Incentive information for Connecticut is provided by the Database of State Incentives for Renewables and Efficiency (DSIRE Connecticutand State Energy Office contacts. Information about additional incentives not present on DSIRE is listed here. In addition to the state-funded incentives on DSIRE and below, Connecticut has enabled Property Assessed Clean Energy (PACE) financing and has an active program. For additional information on PACE, visit PACENation.

Healthy Homes Initiative: The Connecticut Efficient Healthy Homes Initiative (CTEHHI) is a community-based, statewide program carried out in collaboration with the Connecticut Energy Efficiency Fund, the United Illuminating Company and Connecticut Light and Power, and nonprofit, municipal and healthcare partners across the state. The program helps homeowners identify sources of inefficiency in their homes through comprehensive evaluations performed by energy specialists, who provide a wide range of weatherization services, as well as complete a Healthy Homes Checkup to identify any health and safety issues that may be present in the house.

CT Energy Assistance Program (CEAP): The CT Energy Assistance Program (CEAP) is designed to help offset the winter heating costs of Connecticut's lower income households, specifically those households whose incomes fall at or below 150 percent of the federal poverty guidelines as well as households with elderly, disabled and/or children under the age of six, with incomes between 150 percent and 200 percent of the federal poverty guidelines. The program includes fuel assistance and financial assistance if heat is included in rent, as well as weatherization. CEAP is currently administered by the CT Department of Social Services.

Green Buildings Tax Credit Program: The Connecticut Green Buildings Tax Credit Program was created by Connecticut General Statute 12-217mm. This program provides a tax incentive for commercial building owners and developers. To be eligible for the program, the construction, renovation, or rehabilitation projects for the commercial properties must meet or exceed the U.S. Green Building Council’s Leadership in Environmental and Energy Design (LEED) Gold Standard.  Administration of the Program is being shared by the Connecticut Office of Policy and Management (OPM) and the Department of Energy and Environmental Protection (DEEP).

Multifamily Pre-Development Energy Loan Program: A simple pre-development loan that funds analysis, design and engineering of energy improvements for multifamily housing.  This loan program is designed to support property owners in identifying high-quality technical assistance providers and to fund the work needed to scope and secure financing for deeper, cost-effective energy upgrades.  Loans are unsecured with interest rates of 0% to 2.99% with a maximum term of two years. In calendar year 2016, this program financed 3 projects for $113,050 in energy efficiency and energy efficiency/renewable energy projects.

Low Income Multifamily Energy (LIME) LoanAn unsecured construction and term loan to finance implementation of energy efficiency improvements, solar and other renewable systems, and health & safety measures for multifamily residential properties. Up to 25% of loan proceeds may be used for non-energy efficiency improvements (structural, health/safety, etc.), provided there are sufficient savings to carry the costs. This program is run by Capital for Change, a community development financial institution serving statewide. In calendar year 2016, LIME loans financed 11 projects for $4,989,468 in energy efficiency and energy efficiency/renewable energy projects.

PosiGen Solar Lease and Energy Efficiency Energy Savings Agreement: In 2015, the Connecticut Green Bank launched this program in partnership with PosiGen Solar Solutions to support low to moderate income residents to install solar and energy efficiency measures using an innovative solar lease and energy savings agreement financing model. The offer is open to households regardless of income or credit, utilizing alternative underwriting approaches that examine factors such as bill payment history and bad debt and bank databases.

Multifamily Credit Enhancement Fund: This program through the Connecticut Green Bank assists people secure funding for energy projects, providing credit enhancements to reduce lender risk if necessary.  

Multifamily Catalyst Fund: This flexible $2.5 million fund is available for gap financing for energy and health and safety remediation to support affordable multifamily projects that need extra credit enhancement support and aren’t served by other CGB programs. This program is administered in partnership with the Housing Development Fund, a local CDFI, and part of a $5 million program related investment from MacArthur Foundation is used to support the program.  Financing can be secured or unsecured subordinate debt. In calendar year 2016, 1 Catalyst loan was financed for $1,300,000 in energy efficiency upgrades.

Last Updated: August 2017

Building Energy Disclosure List All

In mid-2014, Connecticut’s Home Energy Solutions program implemented a pilot home energy score and labeling program.  On April 1, 2015, the HES program fully integrated energy scoring and labeling.  Now, program eligibility rules require every enrollee to participate/receive an energy score and label. 

Confidentiality laws that govern customer data prevent adoption of guidelines that require scores and labels to be publically disclosed. However, staff are required to educate participants about the value of disclosing energy scores and labels; persuading homeowners to voluntarily make their labels public. The goal is to transform the market, so that sellers and buyers use the label as a tool to guide energy efficiency improvements and real estate purchases.

In 2016, the U.S. Department of Energy (DOE) recognized Connecticut as the first state to implement the statewide adoption of home energy scores. To date 21,141 home energy scores have been distributed to Home Energy Solutions participants.

Last Updated: August 2017

Public Building Requirements List All

Connecticut’s energy reduction plan requires the state to reduce agency building energy use by establishing a baseline, identify high energy users, conducting audits, and implementing cost-effective energy efficiency measures.  To comply with Connecticut law, buildings must demonstrate  a 20% energy reduction goal no later than January 1, 2018, the Connecticut Department of Energy and Environmental Protection (DEEP) has implemented the successful “Lead by Example”  (LBE) initiative (CGS §16a-37u).  Energy savings performance contracts, bond funds, and other financing have supported projects.  

At the direction of Governor Malloy, the Bond Commission has authorized $15 million for energy efficiency retrofits in state buildings. In 2007, PA 07-242 approved an additional $28 million, and in 2013, another $25 million was approved in bond funds for state building efficiency projects. As of May 1, 2017, 58 projects have been completed under the LBE Bond funded program, for a total estimated annual cost reduction of $1.81 million, an estimated annual reduction of 64.1 billion BTUs, and an average simple payback of 5.9 years. To date, nearly $842,000 in CEEF incentives have been leveraged under the program. To date, 72 projects have been approved with an estimated annual energy consumption savings exceeding 89.3 billion BTUs. Once these projects are complete, the total estimated energy cost reduction is $2.91 million. In 2017, Connecticut completed project with deep energy savings at the the Department of Corrections, the State Department of Education, and the Agricultural Experimental Station.

High Performance State Buildings: In 2006, High Performance State Buildings were mandated through General Statutes Section 16a-38k-1 to 16a-38k-7;, creating an above code building standard for all State-funded construction projects. In 2007, Governor M. Jodi Rell signed HB 7432, which broadened and increased the state's green buildings requirement. Starting January 1, 2008, no exemptions to the energy efficiency rules for state facilities exist, except to those state facilities where at least $2 million of the funding comes from the state. The bill also extended energy efficiency requirements to school renovations and construction where at least $2 million is provided in state funding. All of these facilities must exceed the current building code energy efficiency standards by at least 21%. In 2015, Connecticut updated its High Performance Building Performance Standard 21% above Code requirement.  Now, “state agency facility new construction or renovation projects” are required to achieve a score of 75 or greater on the EPA’s national energy performance rating system as determined by the Energy Star Target Finder tool. Connecticut’s new standard has pushed the energy efficiency envelope while keeping it cost effective for projects. 

Benchmarking: In 2014, DEEP was required to benchmark energy and water consumption of state owned and operated non-residential/residential buildings with a gross floor area of 10,000 square feet or greater using the U.S. EPA’s Energy Star Portfolio Manager.  DEEP must make this data public (CGS §16a-37t).  In addition, the gas and electric utilities are required to configure the most recent 36 months of nonresidential  energy consumption data for uploading into EPA’s Energy Star Portfolio Manager (CSG §16-245ii).  Subsequently, allowing the public to track state energy data. The electric utilities are sending energy consumption data electronically to DEEP, which represents the majority of energy accounts supplying state owned and leased buildings. To date, DEEP staff have benchmarked 42% of state buidings, or 100% of state government buildings that have participated in bond-funded programs, including 72 projects across 294 buildings or 66.9 million total square feet. In 2017 Connecticut purchased tool called EnergyCAP to assist with the state's Building Energy Evaluation System by enabling more precise and up-to-date benchmarking data. Additionally, Connecticut utilities have launched the Automated Data Transfer Project to benchmark municipal, board of education, houses of worship, and other local business buildings. 

The Institute for Sustainable Energy (ISE) has recently formalized benchmarking assistance protocol with the formation of a “Benchmarking Help Desk,” which gives towns, state agencies and schools a resource for questions related to energy benchmarking and the use of ENERGY STAR Portfolio Manager. ISE provides one-on-one or group training on the use of Portfolio Manager for those interested in the upkeep of their portfolios, with personalized instruction based on the needs of the interested party. ISE has benchmarked over 900 buildings in Connecticut and has provided technical assistance to DEEP, the Technical High School System (CTHSS), the Board of Regents, St. Joseph's Residence - Enfield, the Alzheimer's Resource Center, Middlesex Community College, several towns, GT Green Leaf Schools, and over 100 municipal and state building managers enrolled in the GPRO courses. As a result of the benchmarking and engagement from ISE, CTHSS implemented LED lighting upgrades through the utility-run Small Business Energy Advantage Program and received a 2016 CT Green-Circle Sustainability Award for its energy saving successes.

Connecticut’s Small Business Energy Advantage Program (SBEA), one of the state’s LBE programs, targets small businesses, and state agencies.  The program provides comprehensive energy- and cost-savings by means of a turnkey solution for customers who typically do not have in-house energy management resources. In 2016, 1800 projects had been completed under the SBEA program, for a total estimated annual cost reduction of $6.0 million, a lifetime cost reduction of $75.0 million, and a total estimated annual reduction of 42.7 million kWh (533.4 million LT kWh). In 2016, 20,640 tons of CO2 emissions were reduced as well. As of March 2017, 84 “electric” state agency projects had been completed under the SBEA program. The total estimated annual reduction is 4.6 million kWh, with an average payback on the net cost to state agencies of 3.37 years. Under this program, $1.8 million in electric CEEF incentives has been leveraged.  To date, 134 state agency SBEA projects have been approved with an estimated annual reduction of 6.0 million Kwh and $841,722 in cost reductions. In 2016, 12 “natural gas” state agency projects had been completed with an estimated annual reduction of 2,341 CCFs, and $2,000 in CEEF incentives were leveraged.  

In addition, through the state's Demand Reduction Program, Connecticut has worked with Eversource to develop a pilot to reduce electric demand and costs in state and other buildings. Enersource and Artisenergy have conducted preliminary energy audits to determine which buildings would be the best candidates for this project.

As a result of these efforts, the U.S. Environmental Protection Agency (EPA) recognized Energize Connecticut Partners as the 2017 Energy Star Partner of the Year for Energy Efficiency Program Delivery.

 Last Updated: August 2017

Fleets List All

CT Statute CGS 4a-67d (modified by PA 04-231) requires that cars and light-duty trucks purchased by the state must have an average EPA estimated fuel economy of at least 40 mpg. Purchases must comply with EPAct's state fleet acquisition requirements and must obtain the best achievable fuel economy per pound of carbon dioxide emitted in their vehicle class.

Last Updated: August 2017

Energy Savings Performance Contracting List All

Connecticut General Statute § 16a-37u (b) required the Commissioner of the Department of Energy and Environmental Protection (DEEP) to establish an energy management plan applicable to state-owned and leased buildings that maximizes energy efficiency. As part of the plan, the law required the state to reduce energy consumption in state buildings by 20% by 2018. To reach these goals, DEEP established numerous programs including the Energy Savings Performance Contracting Program.

Effective in 2011, Connecticut General Statute § 16a-37x required the state to create a new standardized Energy Savings Performance Contracting (ESPC) Program for use by state agencies and municipalities. The program’s purpose was to assist state and municipal governments in implementing a portfolio of comprehensive energy savings measures with no upfront capital. The costs of the energy retrofits are paid for by future guaranteed savings from utility and maintenance budgets. The new program, replaces the program ESPC program that existed prior to 2011. 

The State’s ESPC Program includes a number of tools that will minimize risk and simplify development and implementation of performance contracting: 1) a set of standardized contract documents, 2) a list of twelve pre-qualified Qualified Energy Services Providers, 3) a Program Manager, hired with Connecticut Energy Efficiency Fund dollars, 4) a pool of technical support providers to support individual projects (up to $10,000 in services per project, from CEEF funds), and 5) staff support at Clean Energy Finance and Investment Authority to assist with project financing. All elements of the standardized ESPC program will be available to municipalities, including pre-approved contract documents, list of pre-qualified Energy Service Companies (ESCOs), and technical assistance. Performance contracts energy-savings measures will be leveraged through incentives from the CT Energy Efficiency Fund.

In 2016, the Connecticut General Assembly passed SB 334 to revise the meaning of "cost effective" as applied to energy savings performance contracting, requiring that project savings outweigh project costs, including, but not limited to, financing. The bill extends the payback period from 15 to 20 years and prohibits the payback period for each measure to go beyond the measure's functional life. The bill also removes outdated requirements around lifecycle cost analysis, energy efficiency in state facilities, product standards, and others. 

There are currently 46 active ESPC projects in state and University of Connecticut buildings.

Last Updated: August 2017

Research & Development List All

The University of Connecticut’s Center for Clean Energy Engineering (C2E2), founded in 2009, serves as a nexus for activities involving fundamental and applied research in clean and efficient energy systems as well as training of 21st century scientists and engineers. Advanced energy conversion technologies, fuels and fuel processing, energy storage, power management and smart grid, and conservation of natural resources with a focus on water are all part of the Center’s larger research and educational portfolio. The center’s efforts are geared toward catalyzing the transformation of science-to-systems for a global “Sustainable Energy Economy” through academic research and industrial development, systems engineering, prototype development and demonstration.  C2E2 also provides cost-effective solutions to current and emerging technologies.  The center employs a portfolio of multidisciplinary faculty through the Sustainable Energy Initiative.

The Connecticut Center for Advanced Technology (CCAT) focuses on initiatives in several areas of energy efficiency, including advanced manufacturing technologies and strategies for improving efficiency. CCAT assists DEEP with several programs, including en energy-efficient business program, the Zero Emission Vehicle (ZEV) program, the Rural Energy Assurance Program, and several others.

The Test Bed Program is administered by the Department of Energy and Environmental Protection’s Bureau of Energy and Technology Policy, as required by Connecticut law (C.G.S. 16a-4d). The Energy Efficiency & Renewable Energy Test Bed Program (Test Bed Program) provides an opportunity for a technology, product or process that promotes energy conservation, energy efficiency or renewable energy technology, to be used on a limited trial basis in the operations of a State agency or facility. Since May 2015, the Test Bed Program has received applications for two products: a reflector lens by Energy Savings Lights, LLC and an intelligent boiler control unit by Fireye Inc.

Last Updated: August 2017

Buildings
Score: 6 out of 8
Buildings Summary List All

Residential and commercial buildings must currently comply with the 2012 IECC, however, the state is reviewing the 2015 IECC. The state has completed a variety of compliance activities, and utilities support code compliance efforts.

Residential Codes List All

In 2016 the state of Connecticut adopted the 2012 IECC pursuant to PA 16-215, with the new code going into effect on October 1, 2016. The State Building Inspector, State Fire Marshal and the Codes and Standards Committee announced on December 29, 2016 intent to adopt the 2018 State Building and Fire Safety Codes based on the 2015 editions of the International Code Council (ICC) and National Fire Protection Association (NFPA) documents. Technical review of these codes is being conducted by the Committee’s Codes Amendment Subcommittee (CAS) along with Department of Administrative Services (DAS) staff. This review began January 2017 and is planned to be completed July 2017. Details regarding the process and schedule can be found on the state's Code Adoption Webpage. In addition, Connecticut Law now provides the State Building Inspector and Code Committee a process to adopt and implement the latest IECC during the same year.  

Last Updated: August 2017

Commercial Code List All

In 2016 the state of Connecticut adopted the 2012 IECC pursuant to PA 16-215, with the new code going into effect on October 1, 2016. The State Building Inspector, State Fire Marshal and the Codes and Standards Committee announced on December 29, 2016 intent to adopt the 2018 State Building and Fire Safety Codes based on the 2015 editions of the International Code Council (ICC) and National Fire Protection Association (NFPA) documents. Technical review of these codes is being conducted by the Committee’s Codes Amendment Subcommittee (CAS) along with Department of Administrative Services (DAS) staff. This review began January 2017 and is planned to be completed July 2017. Details regarding the process and schedule can be found on our Code Adoption Webpage. In addition, Connecticut Law now provides the State Building Inspector and Code Committee a process to adopt and implement the latest IECC during the same year.  

Last Updated: August 2017

Compliance List All
  • Gap Analysis/Strategic Compliance Plan: A proposal to conduct third party plan review and site studies has been approved by DEEP in its 2013-2015 C&LM draft decision. The Department of Construction Services and a committee that engages the Office of Construction Services, DEEP, the utility representatives, the Institute for Sustainable Energy and Northeast Energy Efficiency Partnerships (NEEP) is charged with the development and oversight of this effort. This process, once adopted, will be repeated annually through 2017 to determine additional training needs of local code officials, licensed inspectors, building designers and the trades, as well as the annual compliance rate for that year.
  • Baseline & Updated Compliance Studies: In November 2015, DNV-GL submitted its C19-C&I Connecticut New Construction Baseline and Code Compliance Study to the Energy Efficiency Board. As of June 2017, CT, NEEP, and PNNL are conducting a CT residential code compliance study. This study follows the PNNL guidelines.  Compliance with energy efficiency code requirements for commercial and industrial new construction buildings permitted between 2010 and 2013 was estimated at 75% of the population. NMR has completed its 2016/2017 process evaluation of the Residential New Construction program.  As part of that study, NMR will conduct a baseline study.  Although these findings have not been reported to date, they will be provided in a separate report.
  • Utility Involvement: Utilities are involved in strategic planning and coordination, and utility-sponsored training. Regulatory guidelines have been established requiring significant utility involvement in supporting building energy code compliance. The Connecticut General Statute (16-245m) requires the utilities to submit a three-year Conservation and Management Plan.  The plan describes the utilities efforts in building energy code compliance-which the Department approves. Once the Department approves the plan, the companies are required to abide to it.
  • Stakeholder Advisory Group: A committee that includes the Office of Construction Services, DEEP, the utility representatives, the Institute for Sustainable energy and Northeast Energy Efficiency Partnerships (NEEP) meets regularly to review progress on the Gap Analysis and the Strategic Compliance Plan. The State of Connecticut is cooperating with Northeast Energy Efficiency Partnerships (NEEP) to adopt and implement the 2009 IECC. NEEP has developed a set of resources and model policy to assist with implementation. NEEP is an active member of BCAP/OCEAN.
  • Training/Outreach: The Department of Construction Services’ Office of Education and Data Management consistently offers energy code trainings. Recently the utilities have assumed responsibility for DEEP’s previous role of sponsoring code compliance training and outreach activities (GPRO and BOC training).  Please see the recent activities focused on these efforts below.

Last Updated: July 2017

CHP
Score: 2.5 out of 4
CHP Summary List All

The state has pursued a variety of policies to encourage CHP development, including establishing interconnection standards and financing programs. Seven new CHP systems came online in Connecticut in 2016.

Interconnection StandardsList All

Policy: Connecticut General Statute § 16-243a

Description: Approved in 2007, Connecticut’s interconnection standard applies to distributed generation, including CHP, up to 20MW in size. This standard pertains to the two investor-owned utilities in the state, and separates distributed generation into three distinct tiers based upon system size. These tiers mirror those of FERC’s interconnection standards, upon which Connecticut’s standards are closely based.

Connecticut's guidelines include a standard interconnection agreement and application fees that vary by system type. However, they are stricter than FERC's standards and differ in several significant ways, including the requirement of an external disconnect switch and an interconnection transformer, the requirement for customers to indemnify their utility against "all causes of action," and the requirement to maintain liability insurance in specified amounts based on the system's capacity.

Last Updated: August 2017

Encouraging CHP as a ResourceList All

CHP in energy efficiency standards: Connecticut’s energy efficiency targets are administered as part of its Renewable Portfolio Standard (RPS), initiated in 1998 by Connecticut General Statute § 16-245a et seq. In 2005, the state expanded its RPS to include Class III resources such as energy efficiency and CHP, which are supposed to comprise 4% of the state’s total output. To qualify as a Class III resource, CHP must have a minimum operating efficiency of at least 50%.

In 2013, the statute was revised with the passage of H.B. 6360. Among other things, this bill makes CHP more competitive within the portfolio standard by eliminating utilities' conservation savings from the tier of resource applicable to CHP.

Last Updated: August 2017

Deployment IncentivesList All

Incentives, grants, or financing:  A state loan program provides long-term financing options for the installation of customer-side distributed resources, including CHP systems larger than 50 kW.

Net metering: Connecticut’s net metering regulation is only applicable to renewable-powered systems up to 2MW in size.

Last Updated: August 2017

Additional Supportive PoliciesList All

Some additional supportive policies exist to encourage CHP in Connecticut. In 2011, the state established streamlined air permitting procedures that simplify the permitting process for some CHP systems. The Connecticut Department of Energy and Environmental Protection (DEEP) developed a permit-by-rule (PBR) that applies to CHP systems. The PBR, which expedites permit processing time that would otherwise take about six months, became effective in 2013.

With the passage of Public Act No. 12-148 in 2012, a Microgrid Grant and Loan Pilot Program was established to support local distributed energy generation at critical facilities in the state. The program considers applications requesting financial support for the development of microgrids that are powered by CHP and other renewable energy sources. The state also passed legislation in 2016 to expand the DEEP microgrid program funding for additional types of costs associated with microgrids. Grants and loans can now be used to cover costs associated with distributed generation infrastructure.

Renewable-fueled CHP systems are eligible within the Connecticut Renewable Portfolio Standards (RPS) and can be used to meet the state’s renewable targets. Also, in 2015, the Connecticut General Assembly passed Public Act 15-152 extending the state's anaerobic digester pilot program by two years, until 2017. The program provides loans, grants, or PPAs for anaerobic digestion facilities to generate electricity and heat.

Connecticut CHP systems can also qualify for a discounted natural gas rate. 

Last Updated: August 2017

Utilities
Score: 14.5 out of 20
Utilities Summary List All

Connecticut's electric distribution companies (Connecticut Light & Power and United Illuminating Company), natural gas investor-owned utilities (Connecticut Natural Gas Corporation, Southern Connecticut Gas Company, and Yankee Gas Services Company), and municipal electric companies provide portfolios of energy efficiency programs to their customers. The Energy Efficiency Board (EEB), comprised of 15 appointed members representing state agencies and utilities, is responsible for approving the natural gas and electric distribution companies’ plans. Electric and natural gas programs are both required by legislation. The EEB administers the Connecticut Energy Efficiency Fund (CEEF), which is primarily supported by monthly charges on customers' bills.  The utilities administer the energy efficiency programs, and the utilities and contractors they hire implement them.

In 2007, the Connecticut legislature enacted Public Act 07-242, An Act Concerning Electricity and Energy Efficiency, which places new requirements for energy efficiency and establishes new regulatory mechanisms, such as electric and natural gas decoupling. The Act requires the electric distribution utilities to procure all cost-effective energy efficiency as their first-priority resource.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last updated: June 2017

Customer Energy Efficiency Programs List All

Electric distribution utilities, natural gas companies, and municipal electric utilities are required by Connecticut statute to provide "conservation and load management" (C&LM) programs for their customers. The Energy Efficiency Board (EEB) advises and assists the electric and natural gas utilities in the development of energy efficiency programs included in their Conservation and Load Management Plan (“Plan”). The integrated Plan is subject to review and approval by the Public Utilities Regulatory Authority (PURA) and the Department of Energy and Environmental Protection (“DEEP”). All programs included in the plans are required to pass a benefit-cost test. The DEEP and PURA oversee the fully integrated electric distribution utility and natural gas utility programs. The EEB, appointed by the Commissioner of DEEP, administers the Connecticut Energy Efficiency Fund (CEEF).  The utilities administer the energy efficiency programs. The utilities and contractors hired by the utilities implement the programs. 

The EEB and the CEEF were established in 1998 through the state’s electric utility restructuring legislation, Public Act 98–28, An Act Concerning Energy Independence, Connecticut General Statute §16-245m. The 1998 Act required electric companies to offer efficiency programs. In 2005, Public Act 05-1, An Act Concerning Energy Independence (Connecticut General Statute §16-32f  and Connecticut General Statute §7-233y) required the investor-owned natural gas companies to submit energy efficiency program plans to the DPUC and required the municipal electric companies and the Connecticut Fuel Oil Conservation Board to work with the EEB to develop energy efficiency programs for their customers.

Investment and savings information is summarized at www.ctenergydashboard.com .There are low-interest loans available for commercial and industrial customers as well as 0% on-bill financing for small businesses who implement eligible energy-savings measures. More information can be found in the ACEEE report, Energy Efficiency Financing Programs.

Connecticut’s electric energy efficiency programs are funded by a monthly system benefits charge on customers' electric bills.  Connecticut Energy Efficiency Fund (“CEEF”) electric programs are also funded through the revenues the electric utilities receive from the ISO-New England Forward Capacity Market (“FCM”).  CEEF will also be supplemented with funds the electric utilities receive from the Regional Greenhouse Gas Initiative (RGGI”).  Natural gas energy efficiency programs are funded by a monthly charge established in the companies’ Plan plus funding based on the difference between the imposed tax and the approved tax (described in PA 07-242, section 115b). Municipal electric utilities are required to create a fund to support energy efficiency and renewable energy programs. This fund is supported by a surcharge of 0.22 cents/kWh.

Additionally, Conn. Gen. Stat. § 16-245m(d), as amended by Connecticut Public Act 13-298, provides for PURA to ensure that additional revenues required to fund the approved C&LM budget are “provided through a fully reconciling conservation adjustment mechanism for each electric company of not more than three mills per kilowatt-hour of electricity sold to each end use customer of an electric distribution company during the three years of any Conservation and Load Management Plan [and] a fully reconciling conservation adjustment mechanism for each gas company of not more than the equivalent of four and six-tenth cents per hundred cubic feet during the three years of any Conservation and Load Management Plan.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: June 2017

Energy Efficiency as a Resource List All

Prior to passage of the 2007 Electric and Energy Efficiency Act, utilities were not required to submit integrated resource plans in Connecticut's restructured utility markets. With passage of this act (View authorizing legislation), however, this changed. The act requires electric distribution companies to review the state's energy and capacity resource assessment and develop a comprehensive plan for procurement of energy resources, considering a full array of supply and demand resources. The act requires resource selection and procurement to be done so as to minimize the costs and to maximize consumer benefits consistent with the state's environmental goals. The distribution companies must submit annual assessments of energy and capacity requirements for the next three, five and ten years, as well as plans to "eliminate growth in electric demand" and to achieve other demand-side and environmental objectives. Resource needs are first to be met through "all available energy efficiency resources that are cost-effective, reliable and feasible."

The Energy Future Act of 2011 (PA 11-80) requires that Connecticut’s energy needs “shall be met first through all available energy efficiency and demand reduction resources that are cost-effective, reliable, and feasible.

Last Updated: June 2017

Energy Efficiency Resource Standards List All

Summary: Requirement for acquisition of all cost-effective efficiency resources, equivalent to yearly incremental electricity savings targets of ~1.51%, natural gas savings of 0.61% through 2018.

The state's renewable portfolio standard (RPS), established in 1998 and revised thereafter, requires that electricity providers and wholesale suppliers obtain 27% of their retail load from renewable energy and energy efficiency by 2020. Beginning in 2006, energy efficiency and combined heat and power measures were considered "Class III sources" and required to meet a certain percentage of load. However, Public Act 13-303 revised the RPS to preclude certain conservation and load management programs from qualifying as a Class III source beginning January 2014.

The 2007 Electricity and Energy Efficiency Act (Public Act 07-242) took an important step in recognizing the value of energy efficiency by requiring utilities to achieve resource needs through "all available energy efficiency resources that are cost-effective, reliable and feasible." The Department of Public Utility Control interpreted this mandate overly restrictively, however, focusing only on capacity needs, and did not approve funding increases to achieve all cost-effective energy efficiency (Docket 10-02-07) until recently.

Public Act 11-80 (2011) created the Department of Energy and Environmental Protection (DEEP), into which was integrated the DPUC, renamed the Public Utilities Regulatory Authority (PURA). DEEP has several goals related to energy: to reduce the cost electricity in the state; to ensure the reliability and safety of the state's energy supply; to increase the use of clean energy; and to develop the state's energy economy.  The Act requires DEEP to review the state's energy and capacity resource assessment every two years and to develop an integrated resources plan that identifies how best to meet projected demand for electricity and to lower the cost of electricity through a mixture of supply and demand side measures, including energy efficiency, load managementdemand response, combined heat and power facilities, distributed generation and other emerging energy technologies.

In 2013, the state passed Public Act 13-298, An Act Concerning Implementation of Connecticut’s Comprehensive Energy Strategy. The Act contained provisions requiring gas and electric distribution companies to create triennial energy conservation plans and increased funding levels to the point where the state’s all cost-effective mandate is achievable. In December 2013, PURA approved rate adjustments requested by utilities for implementation of their efficiency plans.

Last Updated: June 2017

Utility Business Model List All

Connecticut's 2007 Electricity and Energy Efficiency Act (CT Public Act No. 07-242) requires the Department of Public Utility Control to order the state's electric and natural gas distribution companies to decouple distribution revenues from the volume of natural gas or electricity sales. In 2013 Public Act 13-298  was adopted again requiring decoupling for all electric distribution companies. Currently, United Illuminating uses a full decoupling mechanism, adjusted annually (See Docket No. 08-07-04RE03 and 13-01-19). In 2014, legislation (13-298) approved Lost Based Revenue recovery via Federally Mandated Congestion Charges (FMCC's), absent decoupling for Connecticut Light & Power. In 2015 CL&P's rate case was approved for full decoupling. 

Connecticut's natural gas companies also recover lost based revenues. Connecticut Natural Gas has been decoupled since 2014. In the next LDC rate case, Yankee Gas Services will also file for full decoupling. The Southern Connecticut Gas Company (SCG) currently recovers lost margin as a component of a Conservation Adjustment Mechanism (CAM) that is designed to recover distribution revenues lost due to conservation program activities (avoided usage). 

Both electric and natural gas utilities are also able to earn performance incentives for energy efficiency offerings. During annual hearings, the Energy Efficiency Board (EEB) reviews the past year’s results relative to the established goals and determines a performance incentive for the distribution utilities for achieving or exceeding the goals. The incentive, referred to as a “management fee,” can be from 2-8% of the program costs before taxes. The threshold for earning the minimum incentive (2%) is 77.5% in 2016-17, rising to 75% in 2018. Program costs are recovered through rates.

Anticipated incentives are built into the annual budgets.  Over the course of several dockets, the Public Utilities Regulatory Authority has affirmed the value of the incentive. The expenditures used to calculate the incentive may include administrative and overhead costs, but not EEB costs and incentive costs.

Currently, United Illuminating uses a full decoupling mechanism, adjusted annually (See Docket Nos. 08-07-04 and 13-01-19).  Connecticut Natural Gas utilizes annual decoupling excluding billed revenues collected through the Transportation Service Charge (TSC), Distribution Integrity Management Program (DIMP) and the System Expansion Rate (SER) rate mechanisms (See Docket No. 13-06-08). The Southern Connecticut Gas Company (SCG) currently recovers lost margin as a component of a Conservation Adjustment Mechanism (CAM) that is designed to recover distribution revenues lost due to conservation program activities (avoided usage). SCG establishes a baseline sales forecast in its respective rate case proceedings. The lost sales component of the CAM allows SCG to recover the value of the distribution revenues associated with conserved sales units that result from conservation installations starting from the implementation date of new rates (the beginning of the rate year).  This cumulative calculation keeps SCG whole until a new baseline forecast is established in its next rate case proceeding.

In 2014, CT Legislation (13-298) had approved Lost Based Revenue recovery via Federally Mandated Congestion Charges (FMCC's), absent decoupling for CL&P. In 2015 CL&P's Rate Case was approved for full decoupling. YGS had already been receiving Lost Based Revenue Recovery via a CAM since 1995. However, in the next LDC rate case, YGS will file for full decoupling.

Last Updated: June 2017

Evaluation, Measurement, & Verification List All

The evaluation of ratepayer-funded energy efficiency programs in Connecticut relies on legislative mandates (Public Act 11-80). Evaluations are administered by the Connecticut Energy Efficiency Board. Connecticut has established formal rules and procedures for evaluation, which are stated in Public Act 11-80 and Evaluation Rules and Roadmap. Statewide evaluations are conducted. Connecticut uses two of the five classic benefit-cost tests identified in the California Standard Practice Manual. These are the Total Resource Cost (TRC) and Utility/Programs Administrator (UCT) test. The rules for benefit-cost tests are stated in Public Act 11-80. Connecticut specifies the UCT to be its primary cost-effectiveness test. These benefit-cost tests are required for overall portfolio and total program level screening.  The 2015 Connecticut Program Savings Document (PSD) has additional information. 

Last Updated: July 2017

Guidelines for Low-Income Energy Efficiency Programs List All

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

In CT utilities are required to allocate the limited income budgets in parity with the revenues that are expected to be collected from that sector. Per Public Act 11-80, Section 33, CT establishes a goal of weatherizing 80% of homes.  This goal is not specific to Low Income, but activity in the Low Income program helps the companies achieve this goal.   Also, as part of the Performance Management Incentive (PMI) calculation, the Utilities are required to spend at least 95% of the Low Income budget.  There are also electric, natural gas, oil and propane savings metrics that fall under the Low Income program attached to the PMI calculation.

In addition, the Department of Economic and Community Development operates the Energy Conservation Loan (ECL) program for low- and moderate-income households based on the Department of Housing and Urban Development’s standard of 200% of area median income.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Connecticut has established formal rules and procedures for evaluation, which are stated in Public Act 11-80 and Evaluation Rules and Roadmap. The Program Administrator test has been the primary cost-effectiveness test in Connecticut. However the Total Resource Cost (TRC) test is the primary test only for the Home Energy Solutions Limited-Income program. Connecticut regulators have repeatedly approved non-cost-effective low-income programs, however no explicit adjustments or exceptions to general cost-effectiveness rules are in place for low-income programs. More information regarding cost-benefit screening of efficiency programs in Connecticut can be found in Chapter 7 of the 2016-2018 Electric and Natural Gas Conservation & Load Management Plan.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

The Connecticut Department of Energy and Environmental Protection (DEEP) administers the US DOE Weatherization Assistance Program in addition to making policy decisions regarding the ratepayer-funded and utility-administered residential low-income energy program known as Home Energy Solutions-Income Eligible (HES-IE). The HES-IE program serves the same population as WAP in Connecticut and currently cost shares many measures reported on DOE WAP units. The alignment of the HES-IE program with WAP is a goal of the department to ensure the best quality service for the low-income population. WAP administrative policies and procedures are outlined in Section 100 of the Connecticut Weatherization Assistance Program Operations Manual, which is regularly updated and publicly available online at DEEP’s web page.

Last updated: June 2017

Self Direct and Opt-Out Programs List All

Connecticut does not allow for large industrial and commercial customers to self-direct the funds they would have paid for energy efficiency, or to opt-out entirely. 

Last updated: July 2017 

Data AccessList All

Guidelines for Third Party Access

Under Gen. Stats. §16-245o(d) and Regs. Connecticut State Agencies § 16-244h-4 energy use data will be released to third parties only after written approval of the customer. 

Provision of Energy Use Data

Per Public Act No. 11-80, Sec. 125 & 126, each electric distribution, electric and gas company shall make available to the public, records of the energy consumption data of all nonresidential buildings as well as aggregate town customer usage information that preserves the confidentiality of individual customers. 

Connecticut does not require the utility to provide energy use data to owners of multi-tenant buildings.

Energy Use Data Availability

Aggregated usage data is available on the statewide dashboard. No policies or rules govern this provision for individual or aggregated data to third parties.

Last Updated: June 2017

Transportation
Score: 6.5 out of 10
Transportation Summary List All

Connecticut's efficient transportation policies include tailpipe emissions standards, complete streets legislation, and incentives for high efficiency vehicles. Connecticut does not have targets to reduce vehicle miles traveled. 

Tailpipe Emission Standards List All

Connecticut adopted California’s Low-Emission Vehicle Program in 2005, committing to a 30% reduction in average new vehicle greenhouse gas emissions from 2002 levels by 2016. The state has also adopted California's Zero-Emission Vehicle (ZEV) program, which requires increasing production of plug-in hybrid, battery electric, and fuel-cell vehicles from 2018 to 2025. 

Last Updated: July 2017

Transportation System Efficiency List All

Transportation and Land use Integration: Connecticut’s Conservation and Development plan outlines six growth management principles that aim to coordinate future development and to provide valuable planning resources for municipalities across the state. These six principles outline, among other considerations, the need to redevelop and revitalize areas with existing infrastructure and to concentrate development around transportation hubs and corridors.

In 2008, the state senate passed SB 39, calling for the establishment of a Responsible Growth Cabinet to review “regionally significant projects” and to ensure that all future development occurs according to the six growth management principles.

VMT Targets: No policy in place or proposed.

Complete Streets: In 2009, the state adopted a complete streets policy (Public Act 09-154) to ensure that all road projects accommodate all users.

FAST Freight Plans and Goals: No finalized freight plan in place. 

Last Updated: July 2017

Transit Funding List All

No policy in place or proposed.

Last Updated: April 2017

Incentives for High-Efficiency Vehicles List All

Connecticut’s Hydrogen and Electric Automobile Purchase Rebate Program provides as much as $3,000 for the incremental cost of the purchase of a hydrogen fuel cell electric (FCEV), all-electric, or plug-in hybrid electric vehicle. Rebates are calculated based on battery capacity. Vehicles with a battery capacity of 18 kilowatt-hours (kWh) of more earn $3,000 while those with capacities between 7 kWh and 18kWh earn $1,500. Vehicles with batteries smaller than 7 kWh are eligible for a rebate of $750.

Last Updated: July 2017

Equitable Access to TransportationList All
Connecticut’s Housing Incentive Zone Program provides funding to incentivize the creation of low-income housing near transit facilities or high-density areas, and they consider proximity to transit facilities when distributing federal Low-Income Housing Tax Credits to qualifying property owners. Last updated: July 2017
Appliance Standards
Score: 0 out of 2
Appliance Standards Summary List All

Policy: C.G.S. Section 16a-48, Chapter 298, Energy Efficiency Standards

Description: In 2004 Connecticut General Statute 16a-48 was passed establishing energy efficiency standards that covered eight products, under jurisdiction of the Connecticut Office of Policy and Management and the Department of Public Utility Control.  Standards for five of the eight products were preempted by the federal standards included in the Energy Policy Act of 2005. Standards for an additional eight products were added in 2007, although three were preempted by the passing of the Energy Independence and Security Act of 2007. Of the eighteen standards introduced in Connecticut since 2001, only five have not been preempted by federal legislation. 

In January 2011, the Connecticut General Assembly passed Bill 1243, which added standards for compact audio players, televisions, and DVD players and recorders. The standards are based on standards from Title 20 of the California Code of Regulations. The standards are pending. 

Last Updated: August 2017