You asked for the following information regarding the state's Clean Energy Fund:

1. its legislative history;

2. the intent for creating the fund;

3. any comprehensive plans developed for the fund;

4. who administers the fund, how many full time equivalent staff does it have, and what is the cost of administering the fund;

5. the fund's current balance;

6. how many projects has it funded to date by fiscal year;

7. what is the classification of these projects, (e. g. , research and development, commercialization, and deployment).

We have answered each question in turn.

As you know, the Office of Policy and Management, at the request of the governor, is conducting a comprehensive review of the fund. We will forward the results of the review when they become available.

LEGISLATIVE HISTORY

The fund was established by PA 98-28, which restructured the electric industry to permit retail competition. The act (relevant provisions codified at CGS § 16-245n) required that a surcharge be added to electric bills, with the revenue going into the fund. Under the act, the surcharge was initially set at 0. 75 mills per kilowatt-hour and rose to 1. 0 mill per kilowatt-hour starting July 1, 2004. The act allowed the fund to be used to promote a wide range of renewable energy technologies. The act permitted the funding to be used to provide grants, equity investments, and contracts, among other things.

In 2003, the legislature temporarily reallocated part of this revenue to the General Fund under PA 03-6, June Special Session. In the same year, it allowed the fund to be used to promote hydrogen production and conversion technologies (PA 03-135).

INTENT FOR CREATING FUND

In describing the environmental provisions of PA 98-28, Rep. Jessie Stratton noted that it established a renewable energy investment fund so that Connecticut entrepreneurs and end users could benefit from research and development and commercialization of renewable energy sources and consumers could use these sources. Similarly, Sen. Eileen Daily stated that the purpose of the fund was to provide money for research and development of renewable technologies for Connecticut companies to deploy them in the state. (At the time the act was adopted, Rep. Stratton and Sen. Daily were the co-chairs of the Environment Committee. )

In opposing an amendment to reduce funding under this provision, Rep. Mary Eberle, the House chair of the Energy and Technology Committee, stated that the provision provides money to invest in Connecticut industries. She stated that Connecticut was in the forefront of technological development in these technologies and that the fund support job growth and business growth in the state.

COMPREHENSIVE PLAN

CGS § 16-245n requires Connecticut Innovations, Inc. (CII) the fund's administrator, to use the fund in accordance with a comprehensive plan it develops to (1) foster the growth, development and commercialization of renewable energy sources and related enterprises and (2) stimulate demand for renewable resources and the deployment of renewable energy sources. CII has developed a strategic plan to provide a vision and framework to guide the fund as it pursues its mission from 2004 to 2007. The plan:

1. provides background on the fund's creation and purpose,

2. describes the current energy situation in the state from the fund's perspective,

3. discusses recent legislative changes affecting the fund's operating environment,

4. summarizes the fund's activities to date,

5. articulates the fund's vision for Connecticut,

6. describes the fund's goals and objectives for the coming years, and

7. recommends the steps the fund should take to achieve those goals and objectives.

The plan is available online at http: //www. ctcleanenergy. com/about/framework. html.

FUND ADMINISTRATION AND BALANCE

Pursuant to CGS § 16-245n, CII, a quasi-public authority, administers the fund. CII has 17. 5 full time equivalent staff assigned to the fund. The fund's total administrative cost for FY 06 was approximately $ 3. 2 million. The law requires the chairperson of CII's board of directors to establish an advisory committee to help it develop its plan and its programs. Information about the advisory board members is available at http: //www. ctcleanenergy. com.

As of June 30, 2005, the fund had net assets of approximately $ 57. 7 million (total assets of $ 58. 4 million and liabilities of approximately $ 720,000).

PROJECT FUNDING

Table 1 describes the types of projects that have received funding. Fuel cells and solar technologies have received the bulk of the funding to date. As of March 31, 2006, the fund's projects, commitments and allocations were more than $ 100 million.

Table 1: Clean Energy Fund Activities

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