Emissions Charges and Necessity as Mother of Invention

In a New York Times op-ed article published today, Connecticut’s Commissioner of Environmental Protection, Dan Esty, and world renown economic competitiveness authority Michael Porter, explain how greenhouse gas emissions charges would unleash entrepreneurial spirit and innovation across a broad range of enterprises - from multinational businesses to back-of-the-garage inventors.

The authors make a case that innovation in energy productivity and renewable energy would help stimulate global growth and free up resources to meet other pressing needs.

The authors write that the best way to drive energy innovation would be a modest emissions charge of $5 per ton of greenhouse gases beginning in 2012, rising to $100 per ton by 2032. The low initial charge, starting next year, would make the short-term burden on consumers and businesses almost negligible.

If necessity is the mother of invention, then emissions charges may be just the kick in the pants that modern society needs to change our fossil fuel ways.

Your Calls & Emails Needed for Energy Bill

SB 1, AAC Connecticut's Energy Future, Up for P&D Committee Vote

SB 1, AAC Connecticut's Energy Future, is on the Planning and Development Committee calendar this Monday, April 18, in a 3:00pm meeting. SB 1 includes:

• Formation of the joint Department of Energy and Environmental Protection (Sections 1-3 and 43)
• PACE financing authorization for municipalities (Section 17) and studies of other financing options (Section 15)
• Solar PV and thermal expansion and incentives (Sections 25-28)
• Efficiency standards for appliances and lectronics (Section 20)

The problematic reclassification of large hydro as a Class 1 Renewable has been removed.

It is vital that you call the members of the Planning & Development Committee to express your support.

Because this committee does not usually deal in energy policy, it is important that committee members here from you about how important these policies are for Connecticut, for energy security, for jobs creation, for our energy future.

Further, SB 1 will create a new environment and energy agency to manage a comprehensive energy policy for Connecticut, help stabilize the renewable energy and efficiency retrofit markets, enable a financing program for bringing efficiency retrofits of older housing stock up to scale, support our solar industry, and set higher standards for appliance efficiency.

Please take a moment to call or email the leadership of the committee:

• Sen. Steve Cassano, co-chair 800-846-1420 or cassano@senatedems.ct.gov
• Rep. Linda Gentile, co-chair 800-842-8267 or Linda.Gentile@cga.ct.gov
• Sen. Eric Coleman, vice chair 800-846-1420 or coleman@senatedems.ct.gov
• Rep. Auden Grogins, vice chair 800-842-8267 or Auden.Grogins@cga.ct.gov
• Sen. Len Fasano, ranking member 800-842-1421 or Len.Fasano@cga.ct.gov
• Rep. Bill Aman, ranking member 800-842-1423 or Bill.Aman@cga.ct.gov

Other members of the Planning & Development Committee include:

• Rep. Vincent Candelora: Vincent.Candelora@housegop.ct.gov
• Rep. Christopher Davis: christopher.davis@housegop.ct.gov
• Rep. Mae M. Flexer: Mae.Flexer@cga.ct.gov
• Rep. Mary G. Fritz: Mary.Fritz@cga.ct.gov
• Rep. Linda M. Gentile: Linda.Gentile@cga.ct.gov
• Rep. Noreen S. Kokoruda Noreen.Kokoruda@housegop.ct.gov
• Rep. Roland J. Lemar: roland.lemar@cga.ct.gov
• Rep. Elaine C. O'Brien: Elaine.OBrien@cga.ct.gov
• Rep. Jason Perillo: jason.perillo@housegop.ct.gov
• Rep. Lonnie Reed: Lonnie.Reed@cga.ct.gov
• Rep. Tom Reynolds Tom.Reynolds@cga.ct.gov
• Rep. Matthew Ritter: Matthew.Ritter@cga.ct.gov
• Rep. Jason Rojas: Jason.Rojas@cga.ct.gov
• Rep. Kim Rose: Kim.Rose@cga.ct.gov
• Rep. Bill Simanski bill.simanski@housegop.ct.gov
• Rep. Richard A. Smith: richard.smith@housegop.ct.gov

GOVERNOR MALLOY SELECTS DANIEL ESTY TO HEAD NEWLY FUSED DEPARTMENT OF ENERGY & ENVIRONMENTAL PROTECTION

- Links to early news coverage at bottom of post

- Contents of the Governor’s press release follow:

(HARTFORD, CT) - Governor Dannel P. Malloy today named Yale professor Daniel C. Esty to be the commissioner of his new Department of Energy and Environmental Protection (DEEP), an agency that will consolidate Connecticut's widely dispersed energy functions, including the Department of Public Utility Control, with the Department of Environmental Protection to allow for a more effective coordination of state energy and environmental policies.

"Reducing the number of state agencies by consolidating all of our energy functions into one unit will be unprecedented in the state and will bring with it a number of benefits," Governor Malloy said.  "I am glad that Dan Esty has agreed to accept this challenge, and with it, the directive to better integrate and coordinate our state's energy and environmental policy in order to strengthen our ability to protect the environment; to clean, conserve and lower the cost of energy; and to set the table for rapid and responsible economic growth. His experience advising private companies and the President of the United States, coupled with his knowledge of environmental law and policy is second-to-none, and I know this new department will be on the cutting edge of environmental and energy policy with Dan at the helm."

"It is an honor to have been selected to lead this newly-formed agency, especially as it undergoes a major transition," Esty said.  "The state is undoubtedly in a period when we need to make serious changes to our energy policies that are fully engaged with a target of lowering costs for both individuals and businesses.  The job creation benefits that will result from fixing the state's energy system are a significant factor in boosting economic development here at home."

Esty is one of the world's leading experts on environmental strategy.  He has advised top executives from dozens of companies around the world on environment and sustainability issues, and served as an advisor on energy and environmental issues for President Obama's campaign and as a member of his Presidential Transition Team. A former senior official at the U.S. Environmental Protection Agency, Esty is the Hillhouse Professor of Environmental Law and Policy at Yale University. He is also the Director of the Yale Center for Environmental Law and Policy and the Center for Business and the Environment at Yale.

Esty has written books and articles on environmental strategy, competitiveness, policy reform, and regulation.  Esty's recent prize-winning book with Andrew Winston, Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage, argues that sustainability has become a critical element of corporate strategy.  He holds a B.A. from Harvard, an M.A. from Oxford, and a law degree from Yale.

Creating the new Department of Energy and Environmental Protection will enable the state to continue its environmental conservation and regulation functions and to couple them closely with energy policy and pricing.  Organizationally, the state's energy policy will become centralized in the agency through the creation of two new bureaus: the Bureau of Energy Policy and Efficiency, responsible for the development and analysis of state energy policy, and the Bureau of Utilities Control, formed by transferring the Department of Public Utility Control.

###

Contact:  David Bednarz | Deputy Press Secretary, Governor Malloy  |  860. 524.7315 (o)  |  860.770.9792 (c)

Early News Coverage:

1. http://ctmirror.org/story/11459/malloy-names-yale-prof-obama-adviser-environment-commissioner
2. http://blogs.courant.com/capitol_watch/2011/02/daniel-esty-yale-professor-rho.html
3. http://blogs.courant.com/rick_green/2011/02/dan-esty-new-malloy-commish-is.html
4. http://www.ctnewsjunkie.com/ctnj.php/archives/entry/yale_professor_named_to_head_enviro-energy_department/
5. http://www.newstimes.com/news/article/Malloy-picks-Yale-professor-Daniel-Esty-to-lead-1007254.php
6. http://www.ctpost.com/news/article/Malloy-picks-Yale-professor-Daniel-Esty-to-lead-1007254.php
7. http://www.theday.com/article/20110210/NWS12/110219992/1047
8. http://www.hartfordbusiness.com/news16808.html

Hope for Energy Conservation Funds?

Jessie Stratton, a Director of the Connecticut League of Conservation Voters and an advisor on Governor Malloy’s transition team, is quoted in the January 11 CT News Junkie article, Finance Committee May Restore Conservation Funds.

CT News Junkie reporter Christine Stuart writes, “Environmentalists and small businesses are hopeful that since the state doesn’t have to borrow as much money as it initially expected when it passed the budget last year that it will restore some of the $28.5 million it planned on taking annually from the Energy Conservation and Load Management Fund.”

Jessie Stratton of Environment Northeast estimates that taking a portion of the Energy Conservation and Load Management Fund to pay off the debt will cost the state 1,120 jobs a year. She said restoring the money for the fund will help maintain jobs in the state.

The 2010 legislation that raided the energy conservation fund was roundly viewed as bad for Connecticut’s green jobs sector, bad for consumers who want to save money by making their homes and businesses more energy-efficient, and bad for the environment by adding to greenhouse gas pollution.

RGGI Auction Price Falls Further

– By Michael Wysolmerski, Summer Intern from Yale, 
michael.wysolmerski@ctlcv.org

According to a June 11 Environmental Leader article, the Regional Greenhouse Gas Initiative (RGGI) auction price of CO₂ allowances for the first three-year control period (2009-2011) fell 9%, from $2.07 to $1.88, from the March 10 auction to the most recent auction, held on June 9.

This is the second consecutive drop in the price of CO₂ allowances, down from $3.23 per allowance at the June 2009 auction. The latest auction brought in more than $80.4 million.

The article blames the drop in power demand due to the recession for the decline in prices. According to the Wall Street Journal, the low price of natural gas and the lack of support of RGGI from federal proposals for a national CO₂ emissions cap further contributed to the lower price. A federal program would probably not supply a premium for regional allowances that would eventually be combined into the federal program.

As the article states, a study released by Environment Northeast projects that the RGGI states--Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island and Vermont--could lose $3 billion in revenue in the aggregate if the Kerry-Lieberman Senate climate bill is passed. The Kerry-Lieberman bill, entitled the American Power Act, would establish a national cap-and-trade program.

RGGI’s website describes its program as the “first mandatory, market-based CO₂ emissions reduction program in the United States.” The ten participating states will require a 10 percent reduction in CO₂ emissions from the power sector by 2018.

Each state has its own CO₂ Budget Trading Program that is connected to the other states via CO₂ allowance reciprocity, meaning that a power plant can use an allowance issued by any of the states to meet its state program. The program also sets up an emission auction and trading system, so power generators can buy and sell CO₂ emissions allowances. The states then are to use the auction proceeds to support “low-carbon-intensity” solutions.

The Environmental Leader notes that the total proceeds from RGGI auctions are now more than $662.8 million, and that states are investing 60% of the proceeds in energy efficiency.

In Connecticut, that investment percentage is even higher. According to the RGGI website’s Connecticut investment page, Connecticut invests 69.5% of its auction proceeds in energy efficiency programs supervised by the Energy Conservation Management Board (ECMB) and administered by Connecticut Light & Power, United Illuminating, and the Connecticut Municipal Electrical Energy Cooperative. Furthermore, 23% of the proceeds go towards Connecticut Clean Energy Fund sponsored renewable energy programs. The fall in auction prices is clearly detrimental to alternative energy funding, and the issue sheds light on the interesting, perhaps unintended, play between federal and regional proposals that have similar goals.

Clean Energy Plan Going on Tour

The Connecticut Clean Energy Fund has drafted its 2011-2012 plan for programs and investments and invites the public to information sessions on it.  Public  information and comment sessions will take place on June 28, 29 and 30, in Essex, Westport and Hartford. 

The comprehensive clean energy plan covers the gamut of renewable energy issues, including everything from high-performance schools, net zero energy homes, and education and training, to on-site renewable distributed generation,  emerging renewable energy technologies, and financing programs. The comprehensive plan is available online at www.ctcleanenergy.com/comprehensiveplan.

Public Meeting Schedule

• Monday, June 28, 2010
  6:00 p.m. to 8:00 p.m.
  Essex Town Hall Auditorium
  29 West Avenue
  Essex, CT
• Tuesday, June 29, 2010
  10:00 a.m. to 12:00 noon
  Westport Town Hall, Auditorium
  110 Myrtle Avenue
  Westport, CT
• Wednesday, June 30, 2010
  11:00 a.m. to 1:00 p.m.
  Legislative Office Building, Room 1A
  Hartford, CT

Public comments may also be sent by email or mail by July 14th to:

Connecticut Clean Energy Fund
200 Corporate Place, 3rd Floor
Rocky Hill, CT  06067
Attn: Loyola French
comprehensiveplan@ctcleanenergy.com

Want Cleaner, Cheaper Energy? Tell Governor Rell to Sign the Energy Bill!

Connecticut legislative leaders led a press conference today to encourage Governor Rell to sign the just-passed landmark energy reform bill, and to tout the bill's potential to lower electric rates, increase the generation of renewable energy, and promote energy efficiency.

Email:  governor.rell@ct.gov
Tel: 860-566-4840
Toll-Free: 800-406-1527
TDD: 860-524-7397

Tell Governor Rell to sign the bill!  Watch the video for details.

 

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The Really Big Energy Bill: Supporters & Opponents

Senate Bill 463, the 169 page energy bill released a few days ago, seems to be pitting traditional energy businesses against new clean energy businesses.  As part of a press conference yesterday, the Connecticut Citizen Action Group displayed a poster identifying the bill’s biggest supporters and opponents (below).

Background on the Bill
For background on what the bill proposes, see:
-  The nonpartisan Office of Legislative Research summary here
-  CT News Junkie and CT Mirror articles here and here
-  This morning’s Hartford  Courant endorsed a go-slow approach.  You can read the Courant editorial here.

Connecticut’s Green Jobs Makers

- Kelly Kennedy, CTLCV

Kudos to the Connecticut Fund for the Environment for assembling a Google map of Connecticut’s green industry.  Maybe it’s time for a new industry cluster so Connecticut can genuinely position itself for the inevitable shift to a clean energy economy.   We have clusters for bioscience, aerospace, software/IT, metal manufacturing, maritime, plastics, agriculture, and insurance & services.

Map Key
Red: Solar (design, installation, supply)
Aqua: Alternative Energy (geothermal, wind, other)
Yellow: Architecture, Green Building Design
Blue: Weatherization & Efficiency Retrofit, Builders
Pink: Electrical Efficiency & Lighting (consulting, installation, supply)
Green: Fuel cell, Research, Manufacturing
Purple: Development, Finance
---

Why not?  As the Department of Economic & Community Development website states,  the Industry Cluster Initiative “puts Connecticut companies on the fast track; develops the resources needed to compete globally; achieves sustained, measurable growth in jobs, education levels, start-ups and R&D funding; and ensures that positive results extend beyond a single contract, company or city.” 

It’s worrisome that aside from frequently noting the state’s high energy costs, the state’s Strategic Economic Development Plan says little about a vision and plan for developing the clean, green business sector, deferring mostly to Governor' Rell’s 2006 Energy Vision.

Anyway…  You can click on the green business map above to enlarge it.  And if you’re a part of Connecticut’s burgeoning green industry and you’re not listed, email CFE at survey@cfenv.org to get added to the map.

Broad Coalition Rallies for Action on Green Jobs

A broad coalition of environmental advocates and clean energy businesses united with legislative leaders yesterday to call for policies that will get Connecticut residents back to work in good, green jobs.

Some policies would cost nothing to adopt

While some of those policies would require some financial investment, others would require no financial expense at all. In many cases, the no-cost policies call only for planning, cooperation and communication.

Many no-cost, green jobs policies call only for planning, cooperation and communication, perennial shortcomings in Connecticut’s fragmented approach to government—shortcomings that have caught up with us in the form of out-of-control budget deficits.

Businesses call for state to “Stay the Course” to Develop & Support Ct’s clean Energy& energy efficiency Industries

If Connecticut is serious about being a major player in the new clean energy economy, it’s critical that legislators and the Governor stay the course and keep our focus on investing in energy efficiency and renewable energy. 

As businessman David Leishman, Chair of the Connecticut Chapter of the Northeast Energy Efficiency Council, pointed out, Connecticut’s energy efficiency programs have been rated number 1 in the country by the American Council for an Energy Efficient Economy (ACEEE).  Energy and energy efficiency businesses need to be able to count on those policies staying in place if they are to stay in business, hire or expand.

Chris Lenda from Aegis Electrical Systems added that in terms of supporting our home-grown clean energy industry, Connecticut is falling behind compared to nearby states.  New Jersey was mentioned several times as the new state leader in clean energy policy. 

Connecticut’s waffling on those pro-clean energy and pro-efficiency business policies, such as last year’s proposal to siphon off clean energy and energy efficiency funds and dump them into the general operating fund kitty, makes the industry more than a little uneasy. The same goes for this year’s proposal to securitize some of those clean energy funds. 

Policies that spur Good Green Jobs

Based on their report entitled “Building Connecticut’s Economic and Environmental Future,” the advocates call for policies to be enacted this legislative session that:

• Expand Connecticut’s solar industry to its full potential.
• Invest in energy efficiency and renewable energy to lower the cost of energy and develop reliable sources for the future.
• Create financing options to make it easier to invest in energy efficiency improvements and clean energy.
• Rebuild and repair our stormwater and sewage systems to clean up our water.
• Restore Long Island Sound habitat and water quality.
• Get toxins out of our environment .
• Manage our forests and open lands sustainably.
• Support our farms and farmers so we have  fresh, healthy and locally-grown  food.
• Create a 21st century transit system to provide reliable, rapid transportation between our towns and cities and to the northeast region.
• Make our communities more livable, walkable and sustainable.

Green Jobs Advocates

Groups speaking up for green jobs include:  American Farmland Trust • Audubon Connecticut • Clean Water Action • Connecticut Forest & Park Association • Connecticut League of Conservation Voters • Connecticut Fund for the Environment • Environment Connecticut • Environment Northeast • Rivers Alliance of Connecticut • Save the Sound • Sierra Club, Connecticut Chapter • The Nature Conservancy • Transit for Connecticut • Working Lands Alliance • 1000 Friends of Connecticut.

Connecticut's Energy Future - Who's Minding the Store?

By David Anderson

In my last post I mentioned an important study completed by the Connecticut Academy of Sciences and Engineering (CASE) on the development and implementation of energy policy in Connecticut.

Like other studies, CASE's Preparing for Connecticut's Energy Future report found that there is no coherent policy possible under the current totally decentralized administration of energy affairs with literally nobody in charge.

CASE's findings had a public hearing early in the session. Subsequently HB 6633 was introduced by House Co-Chair Vicky Nardello. This 18-page bill would create an Energy Secretary to oversee all the existing entities that are part of the energy puzzle. The Energy Secretary would be required to develop a coherent policy for the State and report periodically.

To those who say in these times we cannot afford another department, I say our present chaotic structure has cost us a lot of money over the years. And now that a lot of federal money is available we need a single strong voice to get our share.

HB 6633 had a public hearing on March 10 and the Energy and Technology Committee deadline is this Wednesday. Let’s hope the committee steps up to the plate like our sister states to recognize the importance of good management and vote the bill out of committee.

David Anderson is the Former Chair and Ranking Member of Energy Committee-1980-1992.

Contact the 2009 Energy Committee:

Dist. 001 Senator John Fonfara (Democrat-Hartford) 860-240-0043 Fonfara@senatedems.ct.gov

Dist. 008 Senator Kevin Witkos (Republican-Canton) 860-240-8800 Kevin.Witkos@cga.ct.gov

Dist. 010 Representative Henry Genga (Democrat-E. Hartford) 860-240-8534 henry.genga@cga.ct.gov

Dist. 025 Senator Bob Duff (Democrat-Norwalk), 860-240-0414 Duff@senatedems.ct.gov

Dist. 026 Representative Peter Tercyak (Democrat-New Britain), 860-240-8585 Peter.Tercyak@cga.ct.gov

Dist. 032 Representative James O'Rourke (Democrat-Cromwell) 860-240-8585 Jim.ORourke@cga.ct.gov

Dist. 035 Representative Brian O'Connor (Democrat-Clinton) 860-240-8585 Brian.OConnor@cga.ct.gov

Dist. 038 Representative Elizabeth Ritter (Democrat-Quaker Hill) 860-240-8585 Elizabeth.Ritter@cga.ct.gov

Dist. 049 Representative Susan Johnson (Democrat-Willimantic) 860-240-8585 Susan.Johnson@cga.ct.gov

Dist. 061 Representative Matthew Conway (Democrat-Suffield) 860-240-8585 Matthew.Conway@cga.ct.gov

Dist. 063 Representative John Rigby (Republican-Winsted) 860-240-8787 John.Rigby@housegop.ct.gov

Dist. 068 Representative Sean Williams (Republican-Watertown) 860-240-8700 Sean.Williams@housegop.ct.gov

Dist. 070 Representative Rosa Rebimbas (Republican-Naugatuck) 860-240-8799 Rosa.Rebimbas@housegop.ct.gov

Dist. 078 Representative William Hamzy (Republican-Terryville) 860-240-8700 William.Hamzy@housegop.ct.gov

Dist. 089 Representative Vickie Nardello (Democrat-Prospect) 860-240-0434 Vickie.Nardello@cga.ct.gov

Dist. 097 Representative Robert Megna (Democrat-New Haven) 860-240-8585 Robert.Megna@cga.ct.gov

Dist. 100 Representative Matthew Lesser (Democrat-Middletown) 860-240-8585 Matthew.Lesser@cga.ct.gov

Dist. 102 Representative Lonnie Reed (Democrat-Branford) 860-240-8500 Lonnie.Reed@cga.ct.gov

Dist. 103 Representative Elizabeth Esty (Democrat-Cheshire) 860-240-8585 Elizabeth.Esty@cga.ct.gov

Dist. 121 Representative Terry Backer (Democrat-Hartford) 860-240-8585 Terry.Backer@cga.ct.gov

Dist. 122 Representative Lawrence Miller (Republican-Stratford) 860-240-8700 Lawrence.Miller@housegop.ct.gov

Dist. 147 Representative William Tong (Democrat-Stamford) 860-240-8747 William.Tong@cga.ct.gov

More on Dept. of Energy Issue

Hello again-

In my last Blog I mentioned the latest in a series of proposals stretching over a number of years that Connecticut recreate an Energy Dept with a boss. Today I shall give some details on this proposal.

A study was commissioned by the Clean Energy Fund to be done by the Connecticut Academy of Sciences& Engineering (CASE) which was recently completed and reported to several legislative Committees. Appointment of an independent Energy Secretary reporting directly to the Governor was highly recommended.

The present situation of multiple agencies involved in Energy matters was cited as creating a duplication of effort and there exists a need for focus and clarity. It would create a “point person" which the State now lacks. It seems to me that this was a very polite way of saying that the State's current structure of multiple overlapping agencies, Boards and Funds is an ineffective mess. In spite of the skepticism of various members of the Committees which included the Energy and Technology Committee there appear to be some positive reactions from some members of the latter body. It will be this Committee where a Bill will have to emerge to create the Energy Czar and staff.

The House Chair, Vickie Nardello seems favorably disposed. And more important two House members, Rep. Backer and Rep. O'Rourke have introduced Bill No.5989 to do just that. It reads that the general statutes be amended to consolidate clean energy and energy efficiency programs within a new Department of Clean Energy.

That's all for now--we’ll keep you posted.

CT Energy Policy--Who's In Charge?

Hello-the answer to the title question has been for the last 25 years--no one.

In fact the Department of Planning and Energy Policy created by Governor Grasso in 1975 to provide a single central source to deal with energy issues was disbanded by her successor Governor William O'Neill and the responsibilities parcelled out to what now amounts to a dozen or more agencies, etc. 

What a way to run a railroad. In 1972 Governor Meskill pulled together a diverse group of operations into what remains as the DEP for purposes of creating coherent policy. I often wonder why O'Neill didn't break the DEP into pieces while he was at it, following the same logic--save money.

In fact this organizational chaos has cost the State a lot of money over the years--duplication of programs, competition for dollars, etc.  The Clean Energy Fund and CT Innovations are a good example--the Governor just took several millions from the Clean Energy Fund and transferred it
to CT Innovations--neither independent operation has a good management record.

Over the years there have been numerous studies as to whether we should recreate an Energy Department.  Last year and this year two studies--one was killed by a tie vote in Program Review, while the other awaits the tender mercies of the Energy Committee.  This where the problem lies--the Senate Chair has consistently over the years opposed the idea but this year at least it appears the House Chair sees the light. A few years ago a Senate Bill 48 proposed an Energy Dept that went nowhere but let's hope we get some results now. The lack of an organized spokesman may cost us dearly in getting the renewable energy funds that will be coming from the new administration.

One last comment --what is my role in this issue? I served in the legislature from 1980 t0 1992 and was Chair of the Energy and Public Utilities Committee for two years and Ranking Member eight years and I hate to see the managerial nightmare that pretends to be making Energy policy in our State.