Digest

Energy Management by State Government

INTRODUCTION

FINDINGS

The state's energy management efforts are complicated by the multiple goals government is asked to achieve. (pg. 1)

ENERGY CONSUMPTION PROFILE

FINDINGS

In FY 02, the state of Connecticut spent $98 million on energy-related items for government operations, representing about 1 percent of the state's total budget. (pg. 3)

• In recent years, energy consumption by state government facilities totaled 6 trillion Btu annually.
• The state of Connecticut has taken steps to reduce its energy consumption using a combination of conservation and efficiency measures.

STATE ENERGY SAVINGS

FINDINGS

No comprehensive compilation of the state's energy efficiency investments exists, and savings estimates can be imprecise. (pg. 8)

• It appears energy efficiency measures undertaken for state of Connecticut properties between 1990 and 2001 included:

_ at least $48.5 million for electricity-related projects, resulting in estimated lifetime savings of 2 billion kWh and $153 million; and

_ $1.6 million for projects involving natural gas, producing estimated lifetime monetary savings of $3 million.

The money to pay for state energy-related initiatives came from multiple sources -- state bond funds, utility ratepayers, the federal government, and oil companies. (pg. 8)

STATE ENERGY POLICIES AND PROGRAMS

FINDINGS

Elements of a comprehensive program targeting energy conservation and the use of multiple fuel sources by state government already exist in statute, but full implementation is not occurring. (pg. 11)

Existing statutes should be revised to eliminate out-of-date and completed tasks as well as requirements where the cost of enforcement considerably outweighs the consequences of a violation, and to increase consideration of energy-related issues during the budget process. (pg. 15)

RECOMMENDATIONS

The program review committee recommends the following statutory changes related to state energy management activities:

• amend Sec. 16a-35m to replace the requirement for a comprehensive energy plan prepared every four years with a biennial report on the energy situation in Connecticut, including any unique issues facing state government as an energy consumer;
• repeal Sec. 16a-36 re minimum temperature setting of 78^o for artificial cooling of state buildings because enforcement is impractical;
• repeal Sec. 16a-36a re maximum temperature setting of 65^o for artificial heating of state buildings because enforcement is impractical;
• repeal Sec. 16a-37d and Sec. 16a-37e to eliminate a program aimed at improving energy performance in state buildings that has been superseded by new programs;
• repeal subsection c of Sec. 16a-37u requiring the connection of state buildings to a district heating/cooling system because all feasible connections have been made;
• amend Sec. 16a-38a to replace detailed requirements for energy audits of all state-owned buildings (in subsection a) and an out-of-date schedule for retrofit projects (in subsection b) with provisions for an on-going process to evaluate the energy requirements and retrofit opportunities of individual state buildings periodically but at a minimum prior to any major renovation;
• transfer subsection c of Sec. 16a-38a regarding energy performance preferences in leased space to Sec. 16a-38h to combine energy-related requirements involving leased space;
• amend Sec. 16a-38i to require the Department of Public Works to establish a standardized process for calculating annual average energy use based on the state buildings under its control and give the Office of Policy and Management (OPM) responsibility for implementing the system statewide in conjunction with its energy use and cost monitoring duties under subsection a of Sec. 16a-37u; and
• amend Sec. 16a-39b to replace the task force on conserving energy in state buildings with a requirement for periodic meetings of the personnel responsible for energy management at the state's largest energy consuming agencies to discuss opportunities for savings.

The program review committee also recommends:

• each state agency be required to include as part of its biennial budget, the total dollars requested for energy within the budget, its plans for energy conservation in the coming biennium, and the progress the department has made in the prior biennial period in energy conservation;
• the Office of Policy and Management be required to ask all state agencies to report on how each agency can reduce energy costs and provide that information as part of a joint public hearing before the Appropriations, Energy and Technology, and Program Review and Investigations Committees; and
• the Office of Policy and Management be required to report on agency compliance with life-cycle cost analysis requirements.

The program review committee recommends setting a new construction standard for state-owned buildings equal to or greater than accepted national standards for energy conservation in new construction.

PROGRAM ADMINISTRATION

FINDINGS

Currently, no single entity is responsible for the management or coordination of all energy-related tasks on behalf of the state of Connecticut. Nor, in recent years has any state entity sought a leadership role regarding energy management. (pg. 17)

Based on existing language, the Office of Policy and Management is expected to be the principal agency guiding and implementing state energy policy. In practice, OPM does not have a high-profile in the energy area, and it routinely performs only a portion of the energy-related activities statutorily assigned to it. (pg. 17)

For the present time, OPM should remain the primary entity for coordinating state energy management efforts, but it must take on a more visible and vocal role regarding opportunities for energy conservation within the state. (pg. 18)

RECOMMENDATIONS

The program review committee recommends the Office of Policy and Management take steps to increase its influence over state energy management practices and elevate its public presence regarding energy issues. At a minimum, OPM should identify basic energy conservation practices individual state agencies will be expected to adopt, and it should promote the incentive program established under C.G.S. Sec. 16a-37c. It also should provide more information to state employees about opportunities for energy savings.

The program review committee recommends the Connecticut Energy Advisory Board do an analysis of what would be the appropriate state entity to have responsibility for oversight of state energy policy.

The program review committee recommends the Office of Policy and Management and the Department of Public Works pursue new energy performance contract efforts in order to have at least one pilot project in place by July 1, 2003. The agencies shall report on the results of the contract program to the committees of cognizance for appropriations and energy annually for the life of the contract.