Finance, Revenue and Bonding Committee

JOINT FAVORABLE REPORT

Bill No.:

SB-413

Title:

AN ACT CONCERNING BONDING AUTHORITY FOR THE CONNECTICUT CLEAN ENERGY AUTHORITY.

Vote Date:

4/3/2012

Vote Action:

Joint Favorable Substitute

PH Date:

3/16/2012

File No.:

SPONSORS OF BILL:

Finance Committee

REASONS FOR BILL:

This bill will add class I renewable energy sources to the definition of clean energy. This bill also changes the CEFIA's name to the Connecticut Clean Energy Authority, clarifies bonding process and adds special capital reserve fund (SCRF) provision limited at one hundred million dollars. In addition, this bill adds pension funds to the list of funding sources available to CEFIA, clarifies the forms of financial assistance CEFIA can make, clarifies CEFIA's status as a quasi-public and provides flexibility in regards to the individuals that may be appointed to the CEFIA board of directors.

RESPONSE FROM ADMINISTRATION/AGENCY:

None

NATURE AND SOURCES OF SUPPORT:

Eric Brown, Associate Counsel, CBIA supports this bill because it will help the state achieve cheaper, cleaner and more reliable energy for Connecticut. This will be achieved by leveraging limited public sector dollars to create new private sector investments in clean energy and energy efficiency.

Charles J. Rothernberger, Staff Attorney, Connecticut fund for the Environment supports this bill because the issuance of bonds by the newly the named Connecticut Clean Energy Authority (previously CEFIA) provides the necessary financial incentive for energy efficiency retrofits to existing residential and commercial buildings. These retrofits are a very cost-effective carbon reduction strategy. They also support an “all fuels” approach so that oil heated homes can also benefit from this bill.

Bryan Garcia, Clean Energy Finance and Investment Authority supports this bill because the new law will allow the CEFIA to issue bonds that will be backed by the Special Capital Reserve Fund and allow them to act like other quasi-public agencies. This new status will significantly enhance CEFIA's ability to attract private capital and therefore create new opportunities to finance clean energy.

NATURE AND SOURCES OF OPPOSITION:

None

Reported by: Kevin Collins

Date: 4/9/12