Sec. 16a-22l. Fuel oil conservation and energy efficiency programs. Fuel Oil Conservation Board. Fuel oil conservation plan.
Sec. 16a-22l. Fuel oil conservation and energy efficiency programs. Fuel Oil
Conservation Board. Fuel oil conservation plan. (a) For purposes of this section, "fuel
oil" means the product designated by the American Society for Testing and Materials as
"Specifications for Heating Oil D396-69", commonly known as number 2 heating oil,
and grade number 4, grade number 5 and grade number 6 fuel oil, provided such heating
and fuel oil are used for purposes other than the generation of power to propel motor
vehicles or for the generation of electricity.
(b) On or before November 1, 2007, the Fuel Oil Conservation Board shall, after
issuing a request for proposals, select an entity qualified to administer and implement
conservation and energy efficiency programs for fuel oil customers, as described in this
section, to act as the program administrator for such programs and shall enter into a
contract not to exceed three years in duration for such purpose. At the expiration of the
contract, the board may renew the contract if it finds that the administrator's performance
has been satisfactory, or the board may issue a new request for proposals.
(c) On or before March 1, 2008, the program administrator shall submit to the Energy Conservation Management Board a fuel oil conservation plan in accordance with
the provisions of this section for the balance of 2008. On or before October 1, 2008, and
annually thereafter, the program administrator shall submit to the Fuel Oil Conservation
Board and the Energy Conservation Management Board a fuel oil conservation plan for
the next calendar year in accordance with the provisions of this section. The board shall
hold a public hearing on each such plan.
(d) (1) The Fuel Oil Conservation Board shall advise and assist the program administrator in the development and implementation of a comprehensive plan, which shall
be approved by the board, that implements cost-effective fuel oil energy conservation
programs and market transformation initiatives for residential, commercial and industrial fuel oil customers. The board shall, as part of its review, examine opportunities to
offer joint programs providing similar efficiency measures that save more than one fuel
resource or to otherwise coordinate programs targeted at saving more than one fuel
resource.
(2) Program cost-effectiveness shall be reviewed annually by the Fuel Oil Conservation Board, or otherwise as practicable. Programs included in the plan shall be evaluated as to cost-effectiveness by comparing the value and payback period of the program
benefits to the program costs to ensure that the programs are designed to obtain fuel oil
savings, the value of which are greater than the costs of the program. If the board determines that a program fails such cost-effectiveness test, the board shall modify the program to meet the test or terminate the program. On or before January 1, 2009, and
annually thereafter, the Fuel Oil Conservation Board shall provide a report to the joint
standing committees of the General Assembly having cognizance of matters relating to
energy and the environment, in accordance with the provisions of section 11-4a, that
documents expenditures and fund balances and evaluates the cost-effectiveness of such
programs conducted in the preceding year, including any increased cost-effectiveness
due to offering programs that save more than one fuel resource.
(3) Programs included in the plan may include, but not be limited to: (A) Conservation programs, including programs that benefit low-income persons; (B) research, development and commercialization of products or processes that are more energy-efficient
than those generally available; (C) development of markets for such products and processes; (D) support for energy use assessment, engineering studies and services related
to new construction or major building renovations; (E) the design, manufacture, commercialization and purchase of energy-efficient appliances and heating devices; (F)
program planning and evaluation; (G) joint fuel conservation initiatives and programs
targeted at saving more than one fuel resource; and (H) public education regarding
conservation. Such support may be by direct funding, manufacturers' rebates, sale price
and loan subsidies, leases and promotional and educational activities. The plan shall
also provide for expenditures by the Fuel Oil Conservation Board for the retention of
expert consultants and reasonable administrative costs, provided such consultants shall
not be employed by, or have any contractual relationship with, a fuel oil company or
the program administrator. Such costs shall not exceed five per cent of the total cost of
the plan.
(e) (1) There is established a Fuel Oil Conservation Board consisting of thirteen
members, including:
(A) One member representing dealers with retail oil heat sales in excess of fifteen
million gallons in the state, appointed by the president pro tempore of the Senate;
(B) One member representing dealers with retail oil heat sales of less than fifteen
million gallons in the state, appointed by the speaker of the House of Representatives;
(C) One member representing the heating, ventilation and air-conditioning trades
licensed under chapter 393, appointed by the majority leader of the Senate;
(D) One member representing wholesale heating distributors operating within the
state, appointed by the majority leader of the House of Representatives;
(E) One member representing a state-wide environmental advocacy group, appointed by the minority leader of the Senate;
(F) The chairperson of the Heating, Piping, Cooling and Sheet Metal Work Board
established under chapter 393;
(G) One member from a state-wide retail oil dealer trade association, appointed by
the minority leader of the House of Representatives;
(H) Six members of the public appointed by the Governor, of which one shall be a
representative of an environmental organization knowledgeable in energy efficiency
programs, one shall be a representative of an in-state biodiesel distributor, one shall be
a representative of a consumer advocacy organization, one shall be a representative of
the business community, one shall be a representative of low-income ratepayers and
one shall be a representative of state residents, in general, and all of whom shall have
expertise in energy issues; and
(I) All appointed members of the board shall serve in accordance with section 4-1a.
(2) The Fuel Oil Conservation Board shall be within the office of the State Comptroller for administrative purposes only, and shall establish itself as a tax exempt organization in accordance with the provisions of Section 501(c)(3) of the Internal Revenue
Code of 1986, or any subsequent corresponding internal revenue code of the United
States, as from time to time amended. Not later than July 1, 2008, and biennially thereafter, a third party selected by the Attorney General shall audit the activities of the board.
The results of such audit shall be submitted in a report to the joint standing committees
of the General Assembly having cognizance of matters relating to energy and the environment, in accordance with the provisions of section 11-4a.
(3) The Fuel Oil Conservation Board shall establish a fuel oil conservation account.
The account shall be a separate, nonlapsing account within the restricted grant fund and
shall be funded by annual revenue from the tax imposed by section 12-587 on the sale
of petroleum products gross earnings that is in excess of said revenue collected during
fiscal 2006, provided the amount of such revenue that shall be allocated to said account
in the fiscal year commencing July 1, 2007, shall not exceed ten million dollars, and
the amount of such revenue that shall be allocated to said account in fiscal years commencing on and after July 1, 2008, shall not exceed five million dollars. The Comptroller
may deposit into the fuel oil conservation account up to two million five hundred thousand dollars upon June 17, 2008, and any remaining balance for the fiscal year commencing July 1, 2007, shall be deposited as determined by the Comptroller upon the close
of the fiscal year, but no later than October 1, 2008.
(4) The Fuel Oil Conservation Board shall authorize specific amounts from the fuel
oil conservation account established pursuant to subdivision (3) of this subsection to
the program administrator selected to implement an approved plan under this section.
Such amounts shall be in the form of grants, which the board shall award twice a year.
Any moneys left in the account at the end of each fiscal year shall be transferred outright
to the General Fund.
(P.A. 07-242, S. 116; June Sp. Sess. P.A. 07-1, S. 131; June 11 Sp. Sess. P.A. 08-2, S. 7.)
History: P.A. 07-242 effective July 1, 2007; June Sp. Sess. P.A. 07-1 amended Subsec. (e)(3) to specify "fiscal" 2006,
to set caps for revenue allocated to the fund at $10,000,000 for fiscal year commencing July 1, 2007, and $5,000,000 for
fiscal years commencing on and after July 1, 2008, and to require Comptroller to deposit funds into the account before
accounts for the General Fund have been closed for each fiscal year, effective July 1, 2007; June 11 Sp. Sess. P.A. 08-2
amended Subsec. (e)(1)(H) to require one member to be representative of in-state biodiesel distributor rather than representative of in-state generators, amended Subsec. (e)(2) to place board within State Comptroller's office for administrative
purposes only, and amended Subsec. (e)(3) to designate account as restricted grant fund, to delete requirement that Comptroller deposit funds into account before accounts for General Fund have been closed for each fiscal year, and to allow
Comptroller to deposit up to $2,500,000 into account, effective June 17, 2008.
See Sec. 4-38f for definition of "administrative purposes only".