Brushing off calls for a veto from the solar industry, Gov. Ned Lamont on Monday signed into law a package of reforms intended to boost wages and expand employment opportunities within the state’s burgeoning renewable energy sector.
The legislation, known as SB 999, requires developers of renewable energy projects to pay a prevailing wage.
That language had drawn fierce opposition from solar companies, who questioned why prevailing wage rules, which are normally applied to public works jobs, would now be extended into the private renewable energy sector, especially at a time when Connecticut is attempting to encourage growth. Industry groups, including Solar Connecticut, submitted testimony opposing the bill as it was making its way through the General Assembly and later called on the governor to exercise his veto power once the act reached his desk.
In a statement released last week, Solar Connecticut Executive Director Mike Trahan claimed the reforms violate the 14th Amendment, part of which provides protections for private contracts.
“[SB 999] does nothing except increase the cost of commercial solar and pass the cost to electric ratepayers,” Trahan said. “We’re not talking about projects the state funds or finances. This bill has state government getting involved in a contract between a private company and a private consumer. That’s about as intrusive as it gets.”
“These projects don’t take a nickel of state aid,” he added. “No other industry in Connecticut must play by these rules.”
Aside from the prevailing wage provision, the law requires renewable energy companies to enter into a “community benefits agreement” demonstrating how their proposed project will help the community where it is sited and create opportunities for local businesses and workers.
The act also mandates the creation of workforce development and training programs with the aim of recruiting people from zip codes with high rates of poverty and unemployment, as well as people with disabilities, people who have been incarcerated and workers who have been traditionally underrepresented in their field.
Democrats and labor groups had framed the bill as an effort to ensure that traditionally underprivileged communities will share in the benefits of a green energy boom as Connecticut attempts to pivot away from reliance on fossil fuels. But solar energy firms have complained that the rules will throttle growth by making projects more expensive to complete.
“To the extent that this adds costs, Connecticut will suffer by comparison with other states,” said Lee Hoffman, an attorney with Pullman & Comley who specializes in energy.
Hoffman pointed to a law that went into effect in 2019 requiring state officials to carry out an impact study for all legislation that could affect prices for electricity customers.
“They never did that ratepayer analysis,” he said. “The General Assembly didn’t adhere to its own requirement.”
Industry figures have also questioned the specificity of the requirements, which do not apply to the fossil fuel sector and exempt offshore wind facilities.
“Why was the renewable energy sector singled out?” Hoffman asked rhetorically. “That’s what’s left me scratching my head. I don’t understand the logic behind that.”