The Office of Governor Ned Lamont

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Governor Ned Lamont

12/19/2023

Governor Lamont Directs $10.7 Million in American Rescue Plan Act and Regional Greenhouse Gas Initiative Funding To Help Low-Income Residents Lower Energy Bills Through Efficiency Upgrades

Department of Energy and Environmental Protection and Office of Consumer Counsel ask PURA to Reconsider Offshore Wind Penalty Decision, Allocate Funding to Energy Efficiency

(HARTFORD, CT) – Governor Ned Lamont today announced that he is directing $10.7 million in American Rescue Plan Act (ARPA) and Regional Greenhouse Gas Initiative (RGGI) funding toward Connecticut’s energy efficiency programs that help provide weatherization, energy retrofits, and rebates to Connecticut residents.

Connecticut’s utility-administered efficiency programs, which are directed by the Connecticut Department of Energy and Environmental Protection (DEEP)’s Conservation and Load Management (C&LM) Plan, have a demonstrated track record of reducing energy costs for Connecticut energy consumers and reducing greenhouse gas emissions. In 2021, the programs – also known as the EnergizeCT programs – generated more than $62 million in savings for Connecticut residents and businesses. The energy-saving investments funded by the 2022-2024 C&LM plan are projected to provide more than $1.7 billion in cumulative benefits in the form of energy resource savings, energy bill savings, job creation and support, and reduced carbon emissions.

One of the state’s energy efficiency programs, Home Energy Solutions (HES), provides home energy audits and core weatherization measures, such as air and duct sealing. Through this program, certain income-qualified customers may even qualify for a no-cost energy assessment. There is increasing interest in these programs with the number of household energy assessments increasing by more than 80% over the last five years.

ARPA, a federal program designed to provide relief to Americans impacted by the COVID-19 pandemic, will provide $7 million, and the balance of $3.7 million will be provided from RGGI program revenues. ARPA funds will target energy efficiency upgrades in the homes of income-eligible customers, prioritizing multifamily projects that pay the prevailing wage. The RGGI funds will be used to maintain momentum within the C&LM plan’s successful residential programs.

“We need creative solutions to improve energy affordability in Connecticut,” Governor Lamont said. “We’ve previously used RGGI funds to support these very effective energy efficiency programs. The use of the ARPA funds in this way is new, and it aligns with the core purpose of the federal program, and adds workforce, climate, and air quality benefits. The energy efficiency programs provide attractive, reliable work opportunities for Connecticut’s clean energy workforce.”

“More and more Connecticut residents and businesses are taking advantage of our successful C&LM programs to lower their energy bills, and the Lamont administration is doing everything it can to allocate funding to meet this increased demand,” DEEP Commissioner Katie Dykes said. “Energy customers in our state want more affordable energy bills, and identifying what opportunities are available to them to make their homes and businesses more energy efficient is an essential first step to savings. In addition to increasing energy affordability, our energy efficiency programs create and support local jobs, reduce greenhouse gas emissions, and improve local air quality.”

“The cheapest energy is the energy we don’t use, and reducing Connecticut’s energy usage contributes to greater electric grid reliability,” Consumer Counsel Claire Coleman said. “That’s why prioritizing resources to support Connecticut’s energy efficiency programs makes sense and will help achieve energy affordability in both the short and long term. Today’s announcement will provide utility bill savings for individual customers and businesses taking advantage of these programs, all while generating additional savings for all ratepayers through demand reduction. It’s a win-win.”

In addition to the transfer of ARPA and RGGI funds, DEEP is seeking authorization to provide further support to the state’s energy efficiency programs through the use of contract termination fees. The recent termination of the Park City Wind contract required the payment of a $16 million penalty by the project developer. DEEP and the Office of Consumer Counsel are requesting that the Public Utilities Regulatory Authority (PURA) reconsider its prior decision and allocate the termination fee funds to Connecticut’s energy efficiency programs providing an additional, direct benefit to Connecticut residents and small businesses.

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