Gov. Dannel P. Malloy and his top energy official are calling this year’s legislative session a significant victory for the clean and environmental industries, but now Connecticut must get businesses to actually sign onto these programs.
“The message is there are a lot of opportunities, but the challenge is getting the word out,” said Eric Brown, director of energy and environmental policy for the Connecticut Business & Industry Association. “Businesses really need to be aware of the new changes and the opportunities.”
Among the many energy and environmental initiatives passed by the General Assembly this session were a doubling of funding for business and residential energy efficiency programs, new financing mechanisms for recycling, committing $30 million toward microgrids, and a streamlining of environmental regulations.
“For energy issues, you couldn’t have asked for a better session,” Malloy said.
Dan Esty, commissioner of the state Department of Energy & Environmental Protection, said any number or combination of programs will lead to Connecticut becoming a cleaner and more efficient state. For example, outdated heating equipment will be upgraded either from the state’s $7 billion natural gas expansion or through energy efficiency programs.
“No furnace will be left behind,” Esty said.
While passing these measures marks a victory for the industry, the programs still need to be used for their benefits to be realized.
Some state-initiated programs like the Home Energy Solutions for residential efficiency garner tens of thousands of signups every year. The renewable energy credit program for solar and fuel cells installations has triple the applicants as funding.
Yet, other programs languish while searching for the right audience.
The state Clean Energy Finance & Investment Authority (CEFIA) remade its $6 million anaerobic digester program in June after the initial pilot yielded no business partners willing to develop a power plant to convert food waste into electricity.
CEFIA also is working on marketing its Commercial Property Assess Clean Energy, or C-PACE, program, trying to raise awareness for the six-month-old initiative that has been hailed as a game-changer for the clean energy industry. C-PACE eliminates businesses’ upfront cost for renewable energy installation and energy efficient equipment while ensuring the savings from the upgrades exceed the costs.
“This project should be cash-flow positive for the business,” said Brian Fernen, CEFIA general counsel.
CEFIA is offering $10,000 in marketing grants to any C-PACE town or business association that can get more buy-in for the program. The agency has approved two projects to date.
Newer programs approved this session — submetering, virtual net metering, microgrids, efficiency funds for businesses — need businesses consciously looking to improve their operations and willing to take the time to explore these projects.
“You have to look at these things and figure out what works for your organization,” said Richard Love, manager of environmental health and safety at Hartford conglomerate United Technologies Corp. “You have to pick your spots.”
UTC and all its subsidiaries including Pratt & Whitney, Carrier Corp., and Sikorsky Aircraft Corp. have undertaken a significant sustainability initiative for the past 15 years. The company has spent $150 million on energy improvements since 2006.
Pratt, for example, since 2006 has reduced energy and industrial process waste by 30 percent, water use by 39 percent, employee injury rates by 57 percent, and is working to make its products the most efficient on the market and 100 percent recyclable.
UTC believes these initiatives will help its firms increase productivity, automation, and ultimately boost the bottom line, in addition to being environmentally responsible. The key is balancing business interests with regulatory requirements and long-term benefits, Love said.
“We look at how far beyond regulation we want to go,” Love said. “You need to ask, ‘Do our shareholders care about this stuff?'”
When deciding how to achieve its goals, UTC subsidiaries like Pratt consider the cost involved and how quickly projects issue a return on investment, Love said. Any ROI less than two years is approved easily.
“We don’t fund projects that don’t have an acceptable ROI,” Love said.
Connecticut’s many energy and environmental programs for businesses are designed to lower the return on investment timeline.
“Get creative, because we fundamentally believe if you try hard enough, you can make a project profitable,” Love said.
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