Connecticut/EZ Policies

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EZ Policies for Connecticut

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Policy Place Policy Type Active Implementing Sector Summary
Abatement of Air Pollution: Air Pollution Control Equipment and Monitoring Equipment Operation (Connecticut) Connecticut Environmental Regulations Yes State/Province These regulations contain instructions for the operation and monitoring of air pollution control equipment, as well as comments on procedures in the event of equipment breakdown, failure, and deliberate shutdown.
Abatement of Air Pollution: Connecticut Primary and Secondary Standards (Connecticut) Connecticut Environmental Regulations Yes State/Province No person shall operate a source which has a significant impact on air quality in such a manner as to cause or contribute to a violation of ambient air quality standards. Connecticut primary and secondary standards for sulfur oxides, particulate matter, carbon monoxide, ozone, hydrocarbons, nitrogen dioxide, lead, and dioxin are listed here.
Abatement of Air Pollution: Control of Carbon Dioxide Emissions/Carbon Dioxide Budget Trading Program (Connecticut) Connecticut Environmental Regulations Yes State/Province Any source that serves an electricity generator with a nameplate capacity equal to or greater than 25 MWe is considered a CO2 budget source for the purpose of these regulations. This section lists monitoring and reporting requirements as well as CO2 thresholds for such sources, and describes the CO2 allowance budget trading program.
Abatement of Air Pollution: Control of Nitrogen Oxides Emissions (Connecticut) Connecticut Environmental Regulations Yes State/Province These regulations may apply to reciprocating engines, fuel-burning equipment, or waste combusting equipment which are either attached to major stationary sources of NOx or have high potential NOx emissions. Exceptions apply. The regulations require owners or operators of relevant equipment to meet certain emissions limitations, comply with equipment provisions, reduce Nox emissions, and register equipment.
Abatement of Air Pollution: Control of Particulate Matter and Visible Emissions (Connecticut) Connecticut Environmental Regulations Yes State/Province These regulations set emissions opacity standards for stationary sources with opacity continuous emissions monitoring equipment, stationary sources without such equipment, and mobile sources. The regulations also require reasonable precautions to be taken to prevent particulate matter from becoming airborne during any activity which might carry such risk (e.g., construction), and describe emissions standards for fuel-burning equipment. Some exemptions are listed.
Abatement of Air Pollution: Control of Sulfur Compound Emissions (Connecticut) Connecticut Environmental Regulations Yes State/Province These regulations set limits on the sulfur content of allowable fuels (1.0% by weight, dry basis) for combustion, as well as for the heat input of any fuel burning equipment (250,000 Btu/hour). These limits may be exceeded provided that the operator demonstrates that actual sulfur emissions do not exceed 1.1 pounds per million Btu of heat input. Some exceptions, including the use of fuels with higher sulfur contents during fuel emergencies, apply. The regulations also contain provisions for fuel analyses, fuel merchants, sulfuric acid plants, sulfur recovery plants, non-ferrous smelters, and sulfite pump mills.
Abatement of Air Pollution: Control of Sulfur Dioxide Emissions from Power Plants and Other Large Stationary Sources of Air Pollution (Connecticut) Connecticut Environmental Regulations Yes State/Province These regulations apply to fossil-fuel fired stationary sources which serve a generator with a nameplate capacity of 15 MW or more, or fossil-fuel fired boilers or indirect heat exchangers with a maximum input heat capacity of 250 MMBtu/hr or more. The regulations define allowable average emissions rates for these sources, additional emissions reduction requirements, and sulfur dioxide emissions standards.
Abatement of Air Pollution: Distributed Generators (Connecticut) Connecticut Environmental Regulations Yes State/Province For the purpose of these regulations, a distributed generator is defined as any equipment that converts primary fuel, including fossil fuel and renewable fuel, into electricity or electricity and thermal energy, and has a nameplate capacity less than 15 MW that generates electricity for other than emergency use. Electricity generated may be used either on-site or for sale under an agreement with a utility, other market participant or system operator. The construction or modification of distributed generators may be exempt from new source general permit requirements. These regulations list emissions allowances and certification requirements for distributed generators, as well as information on credit for concurrent emissions reductions.
Abatement of Air Pollution: Greenhouse Gas Emissions Offset Projects (Connecticut) Connecticut Environmental Regulations Yes State/Province Projects that either capture and destroy landfill methane, avoid sulfur hexafluoride emissions, sequester carbon through afforestation, provide end-use energy efficiency, or avoid methane emissions from agricultural management operations are eligible for the award of CO2 offset allowances. Projects are eligible as long as the offset project or CO2 emissions credit retirement is not required by any local, state, or federal law, or regulation, administrative, or judicial order, and the project is not awarded credits or allowances under any other mandatory or voluntary greenhouse gas program by another participating state or carbon market. These regulations describe maximum allocation periods, timing, and monitoring for CO2 offset projects and how to compute allowable carbon offsets.
Abatement of Air Pollution: Hazardous Air Pollutants (Connecticut) Connecticut Environmental Regulations Yes State/Province These regulations describe maximum allowable stack concentrations and hazard limiting values for the emission of hazardous air pollutants. The regulations also discuss sampling procedures for hazardous air pollutants and reporting requirements.
Abatement of Air Pollution: Permit to Construct and Operate Stationary Sources (Connecticut) Connecticut Environmental Regulations Yes State/Province Permits are required for the construction or major modification of a stationary source or emission unit. Some exemptions apply. These regulations describe permit requirements, authorized activities prior to permit issuance, and standards for the issuance, modification, revision, or revocation of a permit.
Abatement of Air Pollution: Prohibition of Air Pollution (Connecticut) Connecticut Environmental Regulations Yes State/Province All air pollution not otherwise covered by these regulations is prohibited. Stationary sources which cause air pollution must be operated in accordance with all applicable emissions standards and standards of performance.
Abatement of Air Pollution: Source Monitoring, Record Keeping, and Reporting (Connecticut) Connecticut Environmental Regulations Yes State/Province Equipment that either combusts coal in any amount, or enough gaseous, liquid, or solid fuels to meet the heat and emissions standards defined in these regulations, must be operated with an Opacity Continuous Emissions Monitoring (CEM) system. Some exemptions apply. These regulations describe monitoring and reporting requirements.
Abatement of Air Pollution: The Clean Air Interstate Rule (CAIR) Nitrogen Oxides (Nox) Ozone Season Trading Program (Connecticut) Connecticut Environmental Regulations Yes State/Province These regulations may apply to fossil-fuel fired emission units, and describe nitrogen emission allocations that owners of such units must meet. The regulations also contain provisions for facilities that have implemented energy efficiency measures, such as higher building standards or the addition of combined heat and power units.
Aquifer Protection Area Land Use Regulations (Connecticut) Connecticut Siting and Permitting Yes State/Province These regulations describe allowable activities within aquifer protection areas, the procedure by which such areas are delineated, and relevant permit requirements. The regulations also describe application procedures for requesting an exemption for a given activity. Regulated activities include the storage of hazardous material; repair or maintenance requiring the use, storage, or disposal of hazardous materials; wastewater discharges other than domestic sewage water and stormwater; generation of electrical power with fossil fuels other than natural gas or propane; and storage, handling, recycling, disposal, reduction, processing, or composting of solid waste.
Atlantic Interstate Low-Level Radioactive Waste Management Compact (Multiple States) South Carolina
Connecticut
New Jersey
Environmental Regulations
Siting and Permitting
Yes State/Province The Atlantic (Northeast) Interstate Low-Level Radioactive Waste Management Compact is a cooperative effort to plan, regulate, and administer the disposal of low-level radioactive waste in the region. The states of Connecticut, New Jersey, and South Carolina are party to this compact.
CT Clean Energy Communities (Connecticut) Connecticut Green Power Purchasing Yes Local The Clean Energy Communities program, offered by the Clean Energy Finance and Investment Authority and the Connecticut Energy Efficiency Fund, offers incentives for communities that pledge their support for energy efficiency and clean, renewable energy.

In order to participate in the program, a municipality must meet three requirements:

1. The municipality must make the Municipal Energy Efficiency Pledge and reduce municipal building energy consumption 20% from baseline levels by 2018.

2. Commit to the Municipal Clean, Renewable Energy Pledge and purchase 20% of municipal buildings’ energy use by 2018 from renewable sources;

3. Achieve milestones in support of energy efficiency and clean, renewable energy. Communities receive energy efficiency points or renewable energy points depending on the milestones achieved.

Once communities earn 100 energy efficiency points, they are eligible for a Bright Idea Grant ranging from $5,000 to $15,000. Once they earn 100 renewable energy points, they are eligible for a clean energy system equivalent to 1 kilowatt (kW) of solar PV.

* Additional criteria apply. See the program web site for details.
CT Solar Loan (Connecticut) Connecticut State Loan Program Yes State/Territory NOTE: Solar Loan program is being updated and not currently offered.


The Clean Energy Finance and Investment Authority is offering a pilot loan program, CT Solar Loan, to provide homeowners with 15-year loans for solar PV equipment. The loans are administered through Sungage. Interested residents must apply online to be pre-qualified for the loan. Once the loan is in place, an approved installer files permits, order equipment, and installs the system on behalf of the resident. See the program web site for application materials.
Clean Energy On-Bill Financing (Connecticut) Connecticut State Loan Program Yes State/Territory By April 1, 2014, the Energy Conservation Management Board and the Clean Energy Finance and Investment Authority (CEFIA) must consult with electric distribution companies and gas companies to develop a residential clean energy on-bill repayment program. The program will be financed by third-party, private capital and managed by CEFIA. The program will prioritize projects by cost-effectiveness, and the repayment term of any project cannot exceed the expected life of the improvements. Monthly payments cannot exceed the amount of the customer's bill before the project was installed. Residential customers of any electric distribution company or gas company will be eligible for the program.
Climate Action Plan (Connecticut) Connecticut Climate Policies Yes State/Province Connecticut’s climate change initiative is led and directed by the Governor’s Steering Committee on Climate Change (GSC). The GSC is made up of leaders from key state agencies including the Departments of Environmental Protection, Public Utility Control, Transportation, and Administrative Services, the Office of Policy and Management, and the Connecticut Clean Energy Fund.
Community Development Block Grant/Economic Development Infrastructure Financing (United States) United States Grant Program
Loan Program
Yes Federal Community Development Block Grant/Economic Development Infrastructure Financing (CDBG/EDIF) provides public infrastructure financing to help communities grow jobs, enable new business startups and expansions for existing businesses. State programs help achieve the national objective of CDBG by funding projects in which at least 51 percent of the new jobs created are made available to low and moderate income individuals. The maximum amounts awarded under the program are $1 million for new businesses locating to the state and $500,000 for existing businesses expanding in the state.
Community Innovations Grant Program (Connecticut) Connecticut State Grant Program Yes State/Territory The Community Innovations Grants Program provides funding for communities to increase voluntary support for clean energy and to build model sustainable communities.

Cities, towns and municipalities are eligible to receive a grant of $4,000, which they will disperse to local groups and individuals as "micro-grants" of $250 to $2,000. To be eligible, cities or towns must commit to the state's "20% by 2010 Campaign" and the EPA Community Energy Challenge. Municipalities that have previously received a Community Innovations Grant are not eligible for this grant. At least 10 "at-large" recipients may receive a micro-grant of up to $1,000. “At-large” recipients include individuals who live in cities and towns that have not yet committed to the “20% by 2010” campaign, as well as non-profit organizations based in Connecticut.

The grants are awarded to eligible communities, and the funds are managed by a local energy task force in each participating community. In turn, these energy task forces, through a grant-giving process, provide micro-grants to organizations and citizens to start local projects that support clean-energy awareness and education within their communities. Applicants for individual micro-grants may apply to the local energy task force for funds ranging from $250 to $2,000 to support a public-awareness project or education project addressing the benefits and availability of clean energy.

The Clean Energy Finance and Investment Authority community search tool will let interested users know whether or not specific communities are eligible for a Community Innovations Grant or not.

This program is supported by the Clean Energy Finance and Investment Authority (CEFIA), which is funded via a surcharge on electric ratepayers’ utility bills.
Competitive Bidding Process for Electric Distribution Companies’ Procurement of Default and Back-up Electric Generation Services (Connecticut) Connecticut Generation Disclosure Yes State/Province Electric distribution companies shall utilize a competitive bidding process for electric generation services. The Department of Public Utility Control will be responsible for setting the criteria for this bidding process, which may include an evaluation of the cost of service, risk analysis, and use of renewable energy resources.
Connecticut Clean Energy Fund (Connecticut) Connecticut Public Benefits Fund Yes State/Territory Note: Connecticut's 2013 Budget Bill, enacted in June 2013, transfers a total of $25.4 million out of the Clean Energy Finance and Investment Authority into the General Fund - $6.2 million in FY 2014 and $19.2 million in FY 2015.

Connecticut's 1998 electric restructuring legislation (Public Act 98-28) created separate funds to support energy efficiency and renewable energy.* This information summarizes the renewable energy fund.**

A surcharge on Connecticut ratepayers' utility bills provides the funding for the renewables fund. In 2000-2001 the charge was set at $0.0005 per kilowatt-hour (0.5 mill per kWh), rising to $0.00075 per kWh (0.75 mill per kWh) in 2002-2003 and "not less than" $0.001 per kWh (1 mill per kWh) beginning July 1, 2004. The fund is administered and governed by the Clean Energy Finance and Investment Authority, a quasi-governmental investment organization granted a significant amount of flexibility by the Connecticut General Assembly to develop programs and fund projects that meet the fund's mission. The Clean Energy Finance and Investment Authority receives guidance from a board of directors, whose members include the Commissioner of the Department of Energy and Environmental Protection, additional members are appointed by the Connecticut General Assembly, and the Connecticut's governor. The Department of Energy and Environmental Protection is required to approve a comprehensive plan for the fund and review annual reports. The fund is to be audited annually.

The fund is authorized to invest in solar-electric energy, solar-thermal energy, wind energy, ocean-thermal energy, wave or tidal energy, fuel cells, landfill gas, hydrogen production and hydrogen conversion technologies, low-impact hydropower, low-emission advanced biomass conversion technologies, alternative fuels produced in Connecticut and used for electricity generation (including ethanol and biodiesel), usable electricity from combined heat and power (CHP) systems with waste-heat recovery systems, thermal storage systems, geothermal, and "other energy resources and emerging technologies which have significant potential for commercialization and which do not involve the combustion of coal, petroleum or petroleum products, municipal solid waste or nuclear fission, financing of energy efficiency projects, and projects that seek to deploy electric, electric hybrid, natural gas or alternative fuel vehicles and associated infrastructure and any related storage, distribution, manufacturing technologies or facilities."

Programs began in earnest in January 2000. For details on existing programs -- including funding amounts per program -- see the most recent annual report and the individual program records on DSIRE.

In addition, each of Connecticut's municipal electric utilities is required by statute to establish a fund to provide renewable energy, energy efficiency, conservation and load-management programs (Conn. Gen. Stat. § 7-233y). To support these funds, a surcharge is imposed on the customers of electric municipal utilities according to the following schedule: 1.0 mills on and after January 1, 2006; 1.3 mills on and after January 1, 2007; 1.6 mills on and after January 1, 2008; 1.9 mills on and after January 1, 2009; 2.2 mills on and after January 1, 2010; and 2.5 mills on and after January 1, 2011. Municipal electric utilities must adopt a comprehensive plan for the spending the money collected, and the plans must be consistent with the comprehensive plan of the state's Energy Conservation Management Board (ECMB).

* Connecticut's restructuring legislation also created a systems benefits charge to fund public education, weatherization and energy conservation measures for low-income residents, storage and disposal costs for spent nuclear fuel, and post-retirement costs for decommissioned nuclear reactors.

** Legislation passed in July 2011 completely restructured the Clean Energy Fund and created the Clean Energy Finance and Investment Authority. Under this new structure, the rate payer funds can be leveraged to raise private investment and further support renewable and clean energy development in the state.
Connecticut Environmental Policy Act (Connecticut) Connecticut Siting and Permitting Yes State/Province Environmental impact reports must be prepared for all proposed projects initiated by state agencies or funded in whole or in part by the state. Reports will assess the likely direct, indirect, and cumulative impacts of a proposed project; will be subject to a state review; and will be distributed publicly. The sponsoring agency must use the impact reports to make a final decision on whether to sponsor the proposed project.
Connecticut Light & Power - Small ZREC Tariff (Connecticut) Connecticut Performance-Based Incentive Yes Utility In July 2011, Connecticut enacted legislation amending the state's Renewables Portfolio Standard (RPS) and creating two new classes of renewable energy credits (RECs): Zero Emission Renewable Energy Credits (ZRECs) and Low Emission Renewable Energy Credits (LRECs). A Zero Emission Renewable Energy Facility is one that produces no emissions, such as solar, wind, or hydro. Owners of these facilities now have an opportunity to sell their ZRECs to the utility.


In coordination with the state's other investor-owned utility, Connecticut Light & Power offers owners of small ZREC projects (less than or equal to 100 kW) the opportunity to enroll in the Small ZREC Tariff Program. Current CL&P Small ZREC Tariff rate is $80.97 per REC.


The program is available on a first-come, first-served basis. Sellers must register with NEPOOL Generation Information System and must apply to the Public Utilities Regulatory Authority (PURA) and be qualified as a RPS Class 1 generator. Equipment must be located behind the meter and have a dedicated ZREC meter. Customers may not have received funding or grants for the system from the state's Clean Energy Finance and Investment Authority (although customers that have received low cost financing are eligible).
Connecticut Light & Power - ZREC and LREC Long Term Contracts (Connecticut) Connecticut Performance-Based Incentive Yes Utility In July 2011, Connecticut enacted legislation amending the state's Renewables Portfolio Standard and creating two new classes of renewable energy credits (RECs): Zero Emission Renewable Energy Credits (ZRECs) and Low Emission Renewable Energy Credits (LRECs).


The state's two investor-owned electric utilities, United Illuminating (UI) and Connecticut Light & Power (CL&P) must enter into 15-year contracts for RECs from zero-emission "Class I" renewable energy facilities (on the customer side of the meter) larger than 100 kilowatts (kW) but not larger than one megawatt (MW). Zero-emission Class I facilities include solar, wind and hydro generators. Resulting zero emission RECs (ZRECs) may be used for RPS compliance during the year of generation or the subsequent year. Utilities are required to spend $8 million on ZREC contracts annually.* The price cap of one ZREC in 2012 was $350 and $325.50 in 2013. The Connecticut Public Utilities Regulatory Authority (PURA) may reduce the ZREC price cap annually by 3% to 7%.


The two utilities also must enter into 15-year contracts for RECs from low-emission Class I renewable energy facilities (on the customer side of the meter) up to 2 MW. The law establishes the emission criteria required to achieve "low-emission facility" status, but this category could include facilities that generate electricity using fuel cells, biomass or landfill gas. Resulting low-emission RECs (LRECs) may be used for RPS compliance during the year of generation or the subsequent year. Utilities are required to spend up to $4 million on LREC contracts annually.* The price cap of one LREC was $200 in 2012 and 2013.


The utilities jointly submitted their six-year solicitation plan in December 2011 and issued their first request for proposals (RFP) in May 2012. Winning bids are evaluated based on project quality, proposed ZREC or LREC price, and compliance with the RFP process. Bids are submitted online. Projects must be located in CL&P's or UI's service territory.


  • PURA is authorized to review this budget and make adjustments after Year 3 for LRECs and Year 4 for ZRECs. It may terminate the program entirely if technology costs do not continue to fall. Because the utilities must spend $8 million per year on new 15-year ZREC contracts and $4 million per year on new 15-year LREC contracts, the total value of the annual solicitation is $120 million for ZRECs and $60 million for LRECs.
Connecticut Water Diversion Policy Act (Connecticut) Connecticut Siting and Permitting Yes State/Province This section describes regulations and permit requirements for projects or activities which may lead to water diversion; however, many exemptions apply. Regulated activities include large withdrawals from groundwater resources, collection or discharge of runoff, water transfer, and relocation, retention, detention, bypass, channelization, piping, culverting, ditching, or damming of waters where the drainage area tributary to such waters is 100 acres or greater.
Dam Safety Regulations (Connecticut) Connecticut Siting and Permitting Yes State/Province All dams, except those owned by the U.S., are under the jurisdiction of these regulations. These dams will be classified by hazard rating, and may be subject to periodic inspections. The construction of new dams is also subject to inspection throughout and following the building process.
Direct Loan Program (Connecticut) Connecticut Loan Program Yes State/Province The Connecticut Development Authority’s Direct Loan Program provides direct senior and subordinated loans and mezzanine investments to companies creating or maintaining jobs. Up to $20,000 per job is available and proceeds may be used for working capital, equipment purchase, mortgage payments, or Brownfield remediation or redevelopment. The program provides access to loan funds that are otherwise unavailable to the borrower.
EXP Job Creation Incentive Program (Connecticut) Connecticut Loan Program Yes State/Province The EXP Job Creation Incentive Program provides loans towards expenditures related to training, marketing, working capital, or other Connecticut Department of Economic and Community Development-authorized expenses. Loan amounts range from $10,000 to $300,000 with a 4% interest rate. DECD may choose to defer loan payments or forgive up to 50% of the loan if job creation goals are met. DECD offers a matching grant program to small businesses that are likely to maintain job growth.
EXP Revolving Loan Fund (Connecticut) Connecticut Loan Program Yes State/Province The EXP Revolving Loan Fund provides loans between $10,000 and $100,000 with a 4% interest rate for a maximum ten-year term. The loans may be used to purchase machinery and equipment, for construction or relocation costs, working capital, or other business-related expenses authorized by the Connecticut Department of Economic and Community Development.
Economic Inducement Financing Program (Connecticut) Connecticut Loan Program No State/Province Companies relocating to or expanding within the state are eligible for CDA direct loans up to $5 million through its Economic Inducement Financing Program. proceeds may be used for working capital, equipment, facilities, or mortgages. Eligible companies must contribute to Connecticut’s technology base, intellectual capital, urban infrastructure, economic base, employment, tax revenues, or export of products and services.
Endangered, Threatened, and Species of Special Concern (Connecticut) Connecticut Environmental Regulations Yes State/Province This document lists endangered, threatened, and species of special concern in Connecticut, along with procedures for petitioning to add or remove a species from these lists and to add or remove an area identified as an essential habitat. Such areas are identified by the Commissioner.
Energy Conservation Loan (Connecticut) Connecticut State Loan Program Yes State/Territory Energy Conservation Loans are available through the Connecticut Housing Investment Fund, Inc. (CHIF) to owners of one- to four-family homes who meet established income limits for family size and location. Interest rates vary in accordance with the borrower's family size and income, and the loan may be repaid over 10 years. Single-family homes can receive a 0% interest rate if the family has below a 50% Median Income, or if the loan is for a furnace/boiler that is ENERGY STAR rated.


Loans for large residential properties are available through the Multi-Family Energy Conservation Loan Program. The terms of this loan are similar to loans for single-family dwellings, with a higher principal available on the loan.

Applications for these programs are available from the program web site above. In addition to the application, the borrower must submit copies of the past two years' federal tax returns (with schedules) and a copy of a monthly mortgage statement (or a release of mortgage or deed).
Energy Project Financing (Connecticut) Connecticut Loan Program Yes State/Province CDA, in collaboration with the Connecticut Energy, Finance and Investment Authority (CEFIA), provides Energy Project Financing to promote advancements in energy technologies which will create business and job growth. CDA helps to provide investment capital through its loan and loan guarantee programs, attracting additional lenders who can help lower risks and costs.
Environmental Land Use Restriction (Connecticut) Connecticut Siting and Permitting Yes State/Province This section governs the implementation and enforcement of environmental land use restrictions. These restrictions can only be requested by the property owner for remediation purposes, and are designed to minimize the risk of human exposure to pollutants and to protect a given area from residential or groundwater use, soil disturbance, and construction.
Exemption from Electric Generation Tax (Connecticut) Connecticut Sales Tax Incentive Yes State/Territory NOTE: Electric Generation Tax expired on October 1, 2013. Electric generation facilities are no longer required to pay generation tax.


In 2011, Connecticut created a new tax requiring electric power plants in the state that generate and upload electricity to the regional bulk power grid to pay $2.50 per megawatt hour. Renewable energy facilities, resource recovery facility, and customer-sited facilities are exempt from the tax. The tax and related exemptions are scheduled to sunset October 1, 2013.
Fixed Capital Investment Tax Credit (Connecticut) Connecticut Corporate Tax Incentive Yes State/Province The Fixed Capital Investment Tax Credit allows a tax credit of 5% of the amount paid for any new fixed capital investment. Companies with fewer than 800 full-time employees may take a tax credit for machinery and equipment purchased and installed in a facility. The credit is based on a percentage of the amount spent on machinery that exceeds the amount spend on machinery in the preceding income year. A tax credit of 5% of the incremental increase is available for companies with 251 to 800 full-time employees. Companies with fewer than 250 full-time employees may take a tax credit equal to 10% of the incremental increase.
Forestry Policies (Connecticut) Connecticut Environmental Regulations Yes State/Province The state of Connecticut is home to a large area of productive forested lands. These forests are managed primarily by the Division of Forestry, under the State Department of Energy and Environmental Protection (DEEP). In 2010, The State issued its Forest Resource Assessment and Strategy document:

http://www.ct.gov/deep/lib/deep/forestry/assessment_and_strategy/assessment__strategy.pdf

The Resource Assessment and Strategy document discusses a proposed Harvesting Guidelines study that is still under development, in the interim the State is considering using the Forest Guild Northeast Region's guidelines: http://www.forestguild.org/publications/research/2010/FG_Biomass_Guidelines_NE.pdf

The Resource Assessment and Strategy document also discusses concerns over biomass energy in general as well as with specific regard to forest residues, and references Vermont's programs as a potential model for developing a sustainable woody biomass supply in the state.

The Connecticut DEEP offers informational resources and review of biomass energy in the state through its website:

http://www.ct.gov/dep/cwp/view.asp?a=2708&q=323872&depNav_GID=1763
Gas Code of Conduct (Connecticut) Connecticut Safety and Operational Guidelines Yes State/Province The Gas Code of Conduct sets forth the standard of conduct for transactions, direct or indirect, between gas companies and their affiliates. The purpose of these regulations is to promote competitive markets and ensure that a gas company does not subsidize or provide an unauthorized benefit to its affiliates.
Gas Companies Operating Within the State of Connecticut (Connecticut) Connecticut Safety and Operational Guidelines Yes State/Province These regulations apply a broad definition of “gas company”, which includes any person or entity involved in the manufacture or transportation of gas within Connecticut. The regulations set standards for the operation of gas companies, including for the continuity of service, quality control, metering, testing, recording, and reporting, customer relations, and facility construction and operation.
General Conditions Applicable to Water Discharge Permits and Procedures and Criteria for Issuing Water Discharge Permits (Connecticut) Connecticut Siting and Permitting Yes State/Province These regulations describe permit and facility requirements for facilities which discharge wastewater. Facility construction, expansion, alteration, production increases, or process modifications may require permits under this section. The regulations also discuss monitoring, recording, and reporting requirements for wastewater discharges. With regards to conservation, facilities are required to minimize wastewater discharges and prohibited from diluting effluents or using excess water.
Green Power Purchase Plan (Connecticut) Connecticut Green Power Purchasing Yes State/Territory In April 2004, Connecticut's governor signed an executive order directing state-government agencies and universities to purchase an increasing amount of electricity generated by renewable resources. Under terms of the order, the state government has a goal to increase "Class I" renewable energy purchases to 20% of electricity used in 2010, 50% in 2020 and 100% in 2050. The order also authorizes the use of savings generated by state energy efficiency and conservation projects to fund green power purchases.

Class I renewable energy resources include solar, wind, new sustainable biomass, landfill gas, fuel cells (using renewable or non-renewable fuels), ocean thermal power, wave or tidal power, low-emission advanced renewable-energy conversion technologies, and new run-of-the-river hydropower facilities with a maximum capacity of five megawatts (MW).

In 2006, Governor Rell issued Connecticut's Energy Vision for a Cleaner, Greener State, which sets a separate set of goals for the state. Specifically, it states that by 2020, 20% of all energy used and sold in the State will come from renewable (clean) resources. See the Energy Vision for additional goals.

The State of Connecticut has made the Environmental Protection Agency's National Top 50 Green Power Partnership (R) list from 2009-2012. Contracts in place for 2012 represent 107,618,005 kWh of green power, or 17% of Connecticut state government’s electric load. See EPA Green Power Partnership for more information.
Guaranteed Loan Program (Connecticut) Connecticut Loan Program No State/Province The Guaranteed Loan Program also helps private-sector lenders meet their client’s financing needs. CDA guarantees can cover up to 40% of the principal balance in case of a loss. Proceeds may be used the same as above, and also for performance guarantees and to finance foreign trade or receivables.
Hazardous Waste Facilities Siting (Connecticut) Connecticut Siting and Permitting Yes State/Province These regulations describe the siting and permitting process for hazardous waste facilities and reference rules for construction, operation, closure, and post-closure of these facilities.
Hazardous Waste Minimum Distance Requirements (Connecticut) Connecticut Siting and Permitting Yes State/Province These regulations set minimum distance requirements between certain types of facilities that generate, process, store, and dispose of hazardous waste and other land uses. The regulations require an applicant for a proposed hazardous waste facility to demonstrate that the health and safety of all persons in schools, hospitals, nursing homes, and occupied dwellings within 2000 feet of the proposed facility will not be threatened. The minimum required distance to the nearest land uses may be reduced if the applicant sufficiently demonstrates that it will not pose an increased risk to the public.
Hazardous Waste Transporter Permits (Connecticut) Connecticut Siting and Permitting Yes State/Province Transportation of hazardous wastes into or through the State of Connecticut requires a permit. Some exceptions apply. The regulations provide information about obtaining permits and other permit-related procedures.
ISO New England Forward Capacity Market (Multiple States) Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont
Generating Facility Rate-Making Yes Non-Profit Under the Forward Capacity Market (FCM), ISO New England projects the capacity needs of the region’s power system three years in advance and then holds an annual auction to purchase the power resources that will satisfy those future regional requirements. Resources that clear in the auction are obligated to provide power or curtail demand when called upon by the ISO. The Forward Capacity Market was developed by ISO New England, the six New England states, and industry stakeholders to promote investment in generation and demand-response resources to meet future demand. The results ensure that the region will have sufficient resources to meet future demand. Resources that clear in the auction are committed to provide power or curtail demand when called upon by the ISO, or risk financial penalties.
Inland Wetlands and Water Courses Regulations (Connecticut) Connecticut Environmental Regulations Yes State/Province Regulated activities in or near inland wetlands and water courses include the removal or depositing of material, land or water obstruction or alteration, construction, pollution, or water diversion. This section describes permitting and review requirements for such activities. This section also contains information on procedures to dispute the designation of any land as a wetland or a water course.
Interconnection Standards (Connecticut) Connecticut Interconnection Yes State/Territory In December 2007, the Connecticut Department of Public Utility Control (DPUC) now called the Public Utilities Regulatory Authority (PURA) approved new interconnection guidelines for distributed energy systems up to 20 megawatts (MW) in capacity. Connecticut's interconnection guidelines apply to the state's two investor-owned utilities -- Connecticut Light and Power Company (CL&P) and United Illuminating Company (UI) -- and are modeled on the Federal Energy Regulatory Commission's (FERC) interconnection standards for small generators.*

Connecticut's interconnection guidelines, like FERC's standards, include provisions for three levels of systems:

  • Certified, inverter-based systems no larger than 10 kilowatts (kW) in capacity (application fees: $100);
  • Certified systems no larger than 2 megawatts (MW) in capacity (application fees: $500); and
  • All other systems no larger than 20 MW in capacity. Note that the guidelines include "additional process steps" for generators greater than 5 MW (application fees: $1000, study fees will also apply).

Connecticut's guidelines include a standard interconnection agreement and application fees that vary by system type. However, Connecticut's guidelines are stricter than FERC's standards, differing from the federal standards in several significant ways:

  • Customers are required to install an external disconnect switch and an interconnection transformer.
  • Customers must indemnify their utility against "all causes of action," including personal injury or property damage to third parties.
  • Customers are required to maintain liability insurance in specified amounts based on the system's capacity.
  • In addition, the utilities were required to collaboratively submit to the PURA a status report on the research and development of area network interconnection standards. This report was completed in December 2009, and the PURA has reached a final decision (03-01-15RE02) on the docket. The PURA has determined that the utilities can interconnect inverter-based generators (up to 50 kW) on area networks.

The guidelines address requirements for study fees and include technical screens for each level of interconnection. Utilities and customers must follow general procedural timelines.

* FERC's interconnection standards are applicable to generator interconnections subject to FERC jurisdiction, whereas Connecticut's interconnection guidelines apply to state-jurisdiction interconnections, which typically occur at the distribution level. FERC standards were implemented by ISO-New England (ISO) in ISO Schedule 23, which is applicable to FERC-jurisdictional interconnections.
Job Expansion Tax Credit (Connecticut) Connecticut Corporate Tax Incentive Yes State/Province The Job Expansion Tax Credit allows eligible businesses to receive tax credits for each new full-time position created. Up to $500 per month per employee is available for up to three years. The credit can be applies against a variety of taxes. Businesses must hire a pre-determined number of employees per company size threshold to qualify for the credits.
Line-of-Credit to Term Loans (Connecticut) Connecticut Loan Program Yes State/Province CDA’s Line-of-Credit to Term Loans good for one year for capital expenditures, converting to a fully amortizing term loan. Funds may be used for building expansion, equipment, or IT upgrades.
Litchfield Hills Region - Business Energy Efficiency Program (Connecticut) Connecticut Local Rebate Program No Local This program ends June 30, 2012. Funds have been fully committed.

Litchfield Hills provides incentives to regional businesses which invest in energy efficient or renewable energy improvements. Businesses located in 11 towns throughout the region are eligible to participate in the Business Energy Efficiency Program (BEEP). Eligible communities include Barkhamsted, Colebrook, Goshen, Hartland, Harwinton, Litchfield, Morris, New Hartford, Norfolk, Torrington and Winchester.

Owners of existing commercially owned structures in these municipalities may participate. Private, non-profit organizations that serve regional economic development interests are also eligible to receive incentives. Incentives of up to $16,000 are intended for improvements to building insulation, window replacements, weather stripping, lighting upgrades, photovoltaic (PV) systems, and solar thermal installations. Participating customers may begin project after receiving approval from the local BEEP committee and regional BEEP committee. Rebates are available after project financial documentation is reviewed and approved. View the program web site listed above to see program application and brochure with instructions.

  • Note: The original maximum rebate amount was $7500, and that was raised to $16,000 in 2012.
Local Option - Building Permit Fee Waivers for Renewable Energy Projects (Connecticut) Connecticut Solar/Wind Permitting Standards Yes State/Territory As of July 2011, Connecticut authorizes municipalities to pass a local ordinance to exempt "Class I" renewable energy projects from paying building permit fees. Class I renewable energy projects include energy derived from solar power, wind power, fuel cells (using renewable or non-renewable fuels), methane gas from landfills, ocean thermal power, wave or tidal power, low-emission advanced renewable energy conversion technologies, certain newer run-of-the-river hydropower facilities not exceeding five megawatts (MW) in capacity, and sustainable biomass facilities. (Emissions limits apply to electricity generated by sustainable biomass facilities.)
Local Option - Commercial PACE Financing (Connecticut) Connecticut PACE Financing Yes State/Territory NOTE: In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENow for more information about PACE financing and a comprehensive list of all PACE programs across the country.


In June 2012, Connecticut passed legislation enabling Commercial Property Assessed Clean Energy financing (C-PACE), targeting commercial, industrial and multifamily property owners. C-PACE is a financial policy tool that allows property owners to finance qualifying energy efficiency and clean energy improvements on their properties through a special assessment on the property tax bill, which is repaid over a period of years (up to 20 years). Connecticut's C-PACE program is “owner-arranged,” meaning the property owner contracts directly with a private capital provider to obtain financing. The special assessment (also called a lien) on the property automatically transfers to the next owner in the event of a sale or transfer of ownership. The lien is senior to a mortgage, although it is non-accelerated, meaning in the event of default, only the payments in arrears would come due.


To participate in C-PACE financing, interested property owners must:


  • Be located in a participating municipality. C-PACE maintains a list of participating municipalities. Interested property owners should contact CEFIA if their municipality is not on the list of participating municipalities.
  • Work with an approved energy professional (such as an auditor or contractor) to identify eligible projects. CEFIA will maintain a list of approved contractors. In general, improvements must be permanently affixed to the property and should either lower the building’s energy consumption or produce clean energy.
  • Apply for financing via CEFIA's C-PACE web site. If approved, CEFIA will place a lien on the property and financing will become available. Property owners repay the financing via the local property tax bills over the course of 20 years.
  • Obtain written consent of existing mortgage holders.
While there is no financing minimum, PACE financing is best suited for capital improvements above $150,000, due to transaction costs. Please see C-PACE Program Guidebook for more information about the program.
Local Option - Property Tax Exemption for Renewable Energy Systems (Connecticut) Connecticut Property Tax Incentive Yes State/Territory Connecticut municipalities are authorized, but not required, to offer a property tax exemption lasting up to 15 years for qualifying cogeneration systems installed on or after July 1, 2007 (see Conn. Gen. Stat. § 12-81 (63)). Municipalities that adopt an ordinance to provide such an exemption may require a payment in lieu of taxes from the property owner.


Beginning in October 2013, a municipality may also adopt an ordinance to exempt commercial or industrial Class I renewable resources*, certain hydropower facilities**, or solar thermal or geothermal renewable energy resources. Only facilities installed between January 1, 2010 and December 31, 2013 are eligible for the exemption, and a facility capacity may not exceed the electricity load for the location. Systems installed after 2013 will be eligible for a statewide exemption.


An exemption claim must be filed with the assessor or board of assessors in the town in which the property is placed on or before the first day of November in the applicable assessment year. Applications are not required each year as long as no major alterations are made to the renewable energy system. Contact your local tax assessor's office for more information.

* A "Class I renewable energy source" is defined as “(A) energy derived from solar power, wind power, a fuel cell, methane gas from landfills, ocean thermal power, wave or tidal power, low emission advanced renewable energy conversion technologies, a run-of-the-river hydropower facility provided such facility has a generating capacity of not more than five megawatts, does not cause an appreciable change in the river flow, and began operation after July 1, 2003, or a sustainable biomass facility with an average emission rate of equal to or less than .075 pounds of nitrogen oxides per million BTU of heat input for the previous calendar quarter, except that energy derived from a sustainable biomass facility with a capacity of less than five hundred kilowatts that began construction before July 1, 2003, may be considered a Class I renewable energy source, or (B) any electrical generation, including distributed generation, generated from a Class I renewable energy source.


**Eligible hydropower facilities include "run-of-the-river hydropower facilities provided such a facility has a generating capacity of not more than 5 MW, does not cause an appreciable change in the riverflow, and began operation prior to July 1, 2003."
Minimum Stream Flow Standards (Connecticut) Connecticut Siting and Permitting Yes State/Province These regulations apply to all dams and structures which impound or divert waters on rivers or their tributaries, with some exceptions. The regulations set standards for minimum flow (listed in the document) to be met by such structures.
Moratorium on Construction of Nuclear Power Facilities (Connecticut) Connecticut Siting and Permitting Yes State/Province No construction shall commence on a fifth nuclear power facility until the Commissioner of Environmental Protection finds that the United States Government, through its authorized agency, has identified and approved a demonstrable technology or means for the disposal of high level nuclear waste.
Natural Gas Pipe Line Companies (Connecticut) Connecticut Siting and Permitting Yes State/Province These regulations list standards and considerations for the design, construction, compression, metering, operation, and maintenance of natural gas pipelines, along with procedures for records, complaints, and service interruptions.
Net Metering (Connecticut) Connecticut Net Metering Yes State/Territory Connecticut's two investor-owned utilities -- Connecticut Light and Power Company (CL&P) and United Illuminating Company (UI) -- are required to provide net metering to customers that generate electricity using "Class I" renewable-energy resources, which include solar, wind, landfill gas, fuel cells, sustainable biomass, ocean-thermal power, wave or tidal power, low-emission advanced renewable-energy conversion technologies, and hydropower facilities up to two megawatts (MW) in capacity.

There is no stated limit on the aggregate capacity of net-metered systems in a utility's service territory. Any net excess generation (NEG) during a monthly billing period is carried over to the following month as a kilowatt-hour (kWh) credit for one year. At the end of the year (March 31), the utility pays the customer for any remaining NEG at the "avoided cost of wholesale power." (See specific utility rate tariffs for details).

Virtual Net Metering

Connecticut allows virtual net metering for state, municipal, and agricultural customers. A virtual net metering facility, must generate electricity using either Class I or Class III* resources from facilities of up to 3 MW. Systems can be owned by the customer, leased by the customers, or owned by a third-party on a customer's property. The system may serve the electricity needs of the municipal host customer and additional beneficial accounts as long as the beneficial accounts and host account are within the same electric distribution company's service territory. A municipal or state customer can host up to 5 additional municipal or state accounts, and 5 additional non-state or -municipal buildings if those accounts are critical facilities** and connected to a microgrid. An agricultural customer can host up to 10 beneficial accounts as long as those accounts either use electricity for agricultural purposes, or are municipal or noncommercial critical facilities. In addition, all virtual net metering hosts can aggregate all of the meters owned by that customer host.

If a host customer produces more electricity than it consumes, the excess electricity will be credited to the beneficial accounts for the next billing period at the retail rate against the generation service component and a declining percentage of the transmission and distribution charges that are billed to the beneficial accounts. The declining percentages are as follows:

  • First year of commercial operation: 80% of transmission and distribution charges
  • Second year of commercial operation: 60% of transmission and distribution charges
  • Third year of commercial operation and after: 40% of transmission and distribution charges.

Excess credits rollover monthly for one year. The electric distribution company is to compensate the municipal or state host customer for excess virtual net metering credits remaining at the end of the calendar, if any, at the retail generation rate and the above declining percentage of transmission and distribution charges.

  • Class III resources are defined as "the electricity output from combined heat and power systems with an operating efficiency level of no less than fifty per cent that are part of customer-side distributed resources developed at commercial and industrial facilities in this state on or after January 1, 2006, a waste heat recovery system installed on or after April 1, 2007, that produces electrical or thermal energy by capturing preexisting waste heat or pressure from industrial or commercial processes, or the electricity savings created in this state from conservation and load management programs begun on or after January 1, 2006."
    • Critical Facilities are defined as a hospital, police station, fire station, water treatment plant, sewage treatment plant, public shelter, correctional facility, production and transmission facilities of a television or radio station, commercial area of a municipality, municipal center, or any other area identified by the Department of Energy and Environmental Protection as critical.
New England Power Pool (Multiple States) Maine
New Hampshire
Vermont
Massachusetts
Rhode Island
Connecticut
Interconnection Yes Non-Profit Independent System Operator (ISO) New England helps protect the health of New England's economy and the well-being of its people by ensuring the constant availability of electricity, today and for future generations. ISO New England meets this obligation in three ways: by ensuring the day-to-day reliable operation of New England's bulk power generation and transmission system, by overseeing and ensuring the fair administration of the region's wholesale electricity markets, and by managing comprehensive, regional planning processes.
Oil and Gas Exploration (Connecticut) Connecticut Siting and Permitting Yes State/Province These regulations apply to activities conducted for the purpose of obtaining geological, geophysical, or geochemical information about oil or gas including seismic activities but excluding exploratory well drilling or aerial surveys. Such exploration for oil or gas must be registered with the Commissioner of Environmental Protection; requirements for registration are listed in these regulations. The regulations also discuss well drilling activities and abandonment requirements.
On-Site Renewable DG Program (Connecticut) Connecticut State Grant Program No State/Territory Note: This program is no longer open. The most recent RFP closed March 30, 2012. It is not likely that this program will be re-opened in the future. This summary is for information only.

Connecticut's On-Site Renewable Distributed Generation (DG) Photovoltaic Program is open to for-profit and non-profit entities, municipalities, school districts, and state and federal government agencies located within the Connecticut Light and Power (CL&P) and United Illuminating (UI) utility territories.

Incentive amounts are not set; rather they are designed to help applicants "break even" with a "reasonable rate of return" on their renewable energy investment. Projects must be utilizing commercially available technologies (no prototypes). Projects should be in development phase (not construction phase) and should have made progress in permitting as well as site control (most likely through ownership). Projects owned by third-parties are eligible. Projects that incorporate an educational component (such as disseminating lessons learned or how to overcome obstacles or what the benefits of the clean energy project are) will be preferred. Only projects developed for on-site use are eligible (net metered systems are allowed for occasional exports, but the grant will be reduced if the system is oversized and significant excess energy is expected). Projects that require minimal support from this grant will be given priority. Projects must have a minimum peak demand of 10 kilowatts to qualify.

Projects will be evaluated on four major criteria:

  • PV Project Economics
  • Technology Appropriateness (“Deployment of the Technology”)
  • Feasibility and Probability of Completion
  • Societal Benefits (such as in-state job creation, dissemination efforts, project diversity)

Incentive amounts are calculated based on the project specifics, but the maximum incentive is $3.60/Watt (PTC) for systems 100 kW (AC) and smaller and $3.30/Watt (PTC) for systems greater than 100 kW up to 250 kW.

Applicants that receive funding under this solicitation will not be eligible for future “zero-emission” renewable energy credits (ZRECs) or low-emission renewable energy credits (LRECs) (see DSIRE’s summary of the Connecticut Renewables Portfolio Standard for more information), but they may retain ownership of the Class I renewable energy credits (RECs), retire the RECs or sell them to CEFIA for $10.00 per Megawatt hour for 15 years.

There is $4,500,000 for solar, $2,500,000 for fuel cells, and $1,000,000 for other technologies available under the current RFPs.

History

Connecticut's On-Site Renewable Distributed Generation (DG) Program has provided grants to support the installation of systems that generate electricity at commercial, industrial and institutional buildings. Systems utilizing solar photovoltaics (PV), wind, fuel cells, landfill gas, low-emission advanced biomass-conversion technologies, run-of-the-river hydropower, wave or tidal power, or ocean-thermal power have been eligible. In the past, most program support has targeted PV and fuel-cell projects. This program was supported by the Connecticut Clean Energy Fund (CCEF), which, after exceeding -- by four megawatts (MW) -- its objective of incentivizing the installation of 5 MW of customer-side DG projects by mid-2007, committed to adding 16.5 MW to Connecticut’s renewable generating capacity by 2010. The total funding allocated for all selected projects under the On-Site Renewable DG Program through fiscal year 2010 was $66.24 million. In 2011, the CCEF became the Clean Energy Finance and Investment Authority (CEFIA).
Operational Demonstration Program (Connecticut) Connecticut Industry Recruitment/Support No State/Territory This program is currently closed. Applications were due in February 2012. Additional funding rounds have not yet been announced. Check the program web site for the latest available information.


The Clean Energy Finance and Investment Authority (CEFIA), formerly the Connecticut Clean Energy Fund (CCEF), created the Operational Demonstration (Op Demo) Program in August 2005 to enable early-stage companies to demonstrate the effectiveness of their own near-commercial, clean-energy technologies.

The program supports proposals for demonstration projects that have a high likelihood of developing into a commercial product within a reasonable period of time -- generally, five years for fuel cells and three years for most other clean-energy technologies. Eligible resources include solar, wind, ocean thermal, wave or tidal, run-of-the-river hydro, fuel cells, hydrogen generation and storage technologies, landfill gas, low-emission advanced biomass-conversion technologies, and usable electricity from combined heat and power (CHP) systems with waste-heat recovery systems. Additionally, the CEFIA's authorizing statute includes a provision allowing the fund to support "other energy resources and emerging technologies which do not involve the combustion of coal, petroleum or petroleum products, municipal solid waste or nuclear fission."

Funding for the Operational Demonstration Program will be provided in the form of an unsecured loan, with repayment contingent upon the product achieving "commercial success." The CEFIA will also collect an additional percentage of product revenues for products that exceed a higher revenue threshold. The fund requires a front-loaded one-third cash cost-share for any funding provided. Connecticut companies may contribute 40% of the funding match through in-kind contributions, while out-of-state companies must contribute the entire funding match as a cash contribution. The maximum amount of funding for each individual award is $500,000.

Applicants must be entrepreneurs, developers or integrators of the technology they hope to commercialize, and must have a demonstrated long-term interest in commercializing the technology. The applicant must be a company in Connecticut or meet the test of having or intent to have a "significant Connecticut presence." The CEFIA accepts applications twice a year, and evaluates project proposals based on technology viability, business plan strength, short-term and long-term market opportunities, and other criteria. Applicants must demonstrate benefits to the state of Connecticut as well.


History
The CCEF was created in April 1998 as part of legislation deregulating the state's electric-utility industry. In 2011, the CCEF became the Clean Energy Finance Investment Authority (CEFIA). CEFIA seeks to accelerate Connecticut’s technology economy by investing to develop clean-energy technologies, supporting the creation of clean-energy supply and educating Connecticut’s residents about the importance of clean energy to the state's energy future. The CEFIA is financed by a surcharge on ratepayers' electric bills, and is managed and administered by Connecticut Innovations. The Operational Demonstration Program provided a total of $4 million in funding for projects installed in Connecticut from inception through January 2010. The current program budget is another $4 million through June 2012.
Participating Loan Program (Connecticut) Connecticut Loan Program Yes State/Province CDA’s Participating Loan Program provides junior participating loans with private-sector lenders, contributing up to 50% of the principal balance, to companies unable to satisfy a lender’s standard loan underwriting criteria. Proceeds may be used the same as above. This program helps banks meet their client’s financing needs.
Permit Fees for Hazardous Waste Material Management (Connecticut) Connecticut Fees Yes State/Province These regulations describe applicable fees for permit application, modification, and transfer for permits related to hazardous waste management.
Property Tax Exemption for Renewable Energy Systems (Connecticut) Connecticut Property Tax Incentive Yes State/Territory Connecticut provides a property tax exemption for "Class I" renewable energy systems* and hydropower facilities** that generate electricity for private residential use. The exemption is available for systems installed on or after October 1, 2007, that serve farms, single-family homes or multi-family dwellings limited to four units. In addition, "any passive or active solar water or space heating system or geothermal energy resource" is exempt from property taxes, regardless of the type of facility the system serves.


Beginning in October 2014, commercial and industrial systems (meeting the same technology requirements as above) are also eligible for the property tax exemption. The exemption is available for properties installed on or after January 1, 2014, and the nameplate capacity cannot exceed the load for the location where the system is installed. Before October 2014, municipalities can choose to offer such an exemption (See a Local Option Property Tax Exemption). Commercial and industrial systems installed after Janury 1, 2010 and located in a "distressed municipality" with a population between 125,000 and 135,000 are eligible for the property tax exemption beginning in October 2013.



An exemption claim must be filed with the assessor or board of assessors in the town in which the property is placed on or before the first day of November in the applicable assessment year. Applications are not required each year as long as no major alterations are made to the renewable energy system. Contact your local tax assessor's office for more information.

* A "Class I renewable energy source" is defined as “(A) energy derived from solar power, wind power, a fuel cell, methane gas from landfills, ocean thermal power, wave or tidal power, low emission advanced renewable energy conversion technologies, a run-of-the-river hydropower facility provided such facility has a generating capacity of not more than five megawatts, does not cause an appreciable change in the river flow, and began operation after July 1, 2003, or a sustainable biomass facility with an average emission rate of equal to or less than .075 pounds of nitrogen oxides per million BTU of heat input for the previous calendar quarter, except that energy derived from a sustainable biomass facility with a capacity of less than five hundred kilowatts that began construction before July 1, 2003, may be considered a Class I renewable energy source, or (B) any electrical generation, including distributed generation, generated from a Class I renewable energy source.”


**Eligible hydropower facilities include "run-of-the-river hydropower facilities provided such a facility has a generating capacity of not more than 5 MW, does not cause an appreciable change in the riverflow, and began operation prior to July 1, 2003."
Qualified Small Business Job Creation Tax Credit (Connecticut) Connecticut Corporate Tax Incentive Yes State/Province The Qualified Small Business Job Creation Tax Credit provides tax incentives for Connecticut based-businesses with less than 50 employees. The tax credit is equal to $200 per month for each new full-time employee. The program expires January 1, 2013.
Qualifying RPS State Export Markets (Connecticut) Connecticut Renewables Portfolio Standards and Goals Yes State/Province This entry lists the states with Renewable Portfolio Standard (RPS) policies that accept generation located in Connecticut as eligible sources towards their RPS targets or goals. For specific information with regard to eligible technologies or other restrictions which may vary by state, see the RPS policy entries for the individual states, shown below in the Authority listings. Typically energy must be delivered to an in-state utility or Load Serving Entity, and often only a portion of compliance targets may be met by out-of-state generation. In addition to geographic and energy delivery requirements, ownership, registry, and other requirements may apply, such as resource eligibility, generator vintage and capacity limitations, as well as limits on Renewable Energy Certificate (REC) vintage. The listing applies to RPS Main Tiers only, and excludes solar or distributed generation that may require interconnection only within the RPS state. This assessment is based on energy delivery requirements and reasonable transmission availability. Acceptance of unbundled RECs varies. There may be additional sales opportunities in RPS states outside the Eastern Interconnection. REC prices in markets with voluntary goals (North Dakota, South Dakota, Vermont) may be lower.
Radiation Sources and Radioactive Materials (Connecticut) Connecticut Environmental Regulations Yes State/Province These regulations apply to persons who receive, transfer, possess, manufacture, use, store, handle, transport or dispose of radioactive materials and/or sources of ionizing radiation. Some exemptions apply. The regulations describe registration, labeling, reporting, and disposal requirements and maximum allowed radiation doses.
Reduction of Greenhouse Gas Emissions (Connecticut) Connecticut Climate Policies Yes State/Province This section sets state goals to reduce greenhouse gas emissions to 10 percent below 1990 levels by 2020 and 80 percent below 1990 levels by 2050.
Registration of Electric Generators (Connecticut) Connecticut Generation Disclosure Yes State/Province All electric generating facilities operating in the state, with the exception of hydroelectric and nuclear facilities, must obtain a certificate of registration from the Department of Public Utility Control prior to operation. An application may be denied if it is incomplete or if the Department determines that the liability insurance policy or terms of coverage for the subject electric generating facility is not commercially reasonable and customary within the industry.
Regulations Establishing Restricted Zones for the Transportation of Hazardous Materials (Connecticut) Connecticut Environmental Regulations Yes State/Province These regulations establish a Shore Clearance Line which cannot be crossed except in an emergency by any vessel transporting oil or hazardous materials in bulk in Long Island Sound. For the purpose of these regulations, hazardous substance means any liquid cargo which is inflammable or combustible or which, when discharged in any quantity into or upon the waters of Connecticut causes or is likely to cause significant damage to the environmental resources of Connecticut.
Renewables Portfolio Standard (Connecticut) Connecticut Renewables Portfolio Standard Yes State/Territory Established in 1998 and subsequently revised several times, Connecticut's renewables portfolio standard (RPS) requires each electric supplier and each electric distribution company wholesale supplier to obtain at least 23% of its retail load by using renewable energy by January 1, 2020. The RPS also requires each electric supplier and each electric distribution company wholesale supplier to obtain at least 4% of its retail load by using combined heat and power (CHP) systems and energy efficiency by 2010.

Separate portfolio standards are required for energy resources classified as "Class I," "Class II," or "Class III." Class I resources include electricity derived from solar power, wind power, fuel cells (using renewable or non-renewable fuels), geothermal, landfill methane gas, anaerobic digestion or other biogas derived from biological sources, ocean thermal power, wave or tidal power, low-emission advanced renewable energy conversion technologies, certain run-of-the-river hydropower facilities not exceeding 30 megawatts (MW) in capacity, and biomass facilities that use sustainable biomass fuel and meet certain emissions requirements. Electricity produced by end-user distributed generation (DG) systems using Class I resources also qualifies. Class II resources include trash-to-energy facilities, certain biomass facilities not included in Class I, and certain older run-of-the-river hydropower facilities.

Class III resources include: (1) customer-sited CHP systems, with a minimum operating efficiency of 50%, installed at commercial or industrial facilities in Connecticut on or after January 1, 2006; (2) electricity savings from conservation and load management programs that started on or after January 1, 2006, provided that on or after January 1, 2014, no such programs supported by ratepayers shall be eligible; and (3) systems that recover waste heat or pressure from commercial and industrial processes installed on or after April 1, 2007. The revenue from these credits must be divided between the customer and the state Conservation and Load Management Fund, depending on when the Class III systems are installed, whether the owner is residential or nonresidential, and whether the resources received state support.

Electric providers must meet the standard with at least 20% Class I resources and 3% Class I or II resources by January 1, 2020, and 4% Class III sources by 2010, and thereafter, according to the following schedule:

  • On and after 1/1/2006: 2.0% Class I + 3% Class I or II
  • On and after 1/1/2007: 3.5% Class I + 3% Class I or II + 1% Class III
  • On and after 1/1/2008: 5.0% Class I + 3% Class I or II + 2% Class III
  • On and after 1/1/2009: 6.0% Class I + 3% Class I or II + 3% Class III
  • On and after 1/1/2010: 7.0% Class I + 3% Class I or II + 4% Class III
  • On and after 1/1/2011: 8.0% Class I + 3% Class I or II + 4% Class III
  • On and after 1/1/2012: 9.0% Class I + 3% Class I or II + 4% Class III
  • On and after 1/1/2013: 10.0% Class I + 3% Class I or II + 4% Class III
  • On and after 1/1/2014: 11.0% Class I + 3% Class I or II + 4% Class III
  • On and after 1/1/2015: 12.5% Class I + 3% Class I or II + 4% Class III
  • On and after 1/1/2016: 14.0% Class I + 3% Class I or II + 4% Class III
  • On and after 1/1/2017: 15.5% Class I + 3% Class I or II + 4% Class III
  • On and after 1/1/2018: 17.0% Class I + 3% Class I or II + 4% Class III
  • On and after 1/1/2019: 19.5% Class I + 3% Class I or II + 4% Class III
  • On and after 1/1/2020: 20.0% Class I + 3% Class I or II + 4% Class III

RPS requirements may be satisfied by purchasing electricity generated using Class I or Class II resources within the jurisdiction of the regional independent system operator (ISO New England). Renewable energy credit trades and purchases are tracked through the NEPOOL Generation Information System (NEPOOL-GIS). Renewables within the jurisdiction of New York, Pennsylvania, New Jersey, Maryland, and Delaware are also eligible, provided that the Connecticut Public Utilities Regulatory Authority (PURA)* determines these states have an RPS comparable to Connecticut's.

Electric providers that fail to comply with the RPS during an annual period must pay $0.055 per kWh to the PURA; these payments will be allocated to the Connecticut Clean Energy Fund (CCEF) for the development of Class I renewables. The PURA Renewable Energy web site provides additional documents related to its RPS.

Beginning in 2015, REC values for Class I biomass and landfill methane gas (not including anaerobic digestion and other biogas facilities) will gradually decrease per a schedule established by the Department of Energy and Environmental Protection (DEEP). Any facility that has entered into a power purchase agreement before June 5, 2013 will not be effected by the decreasing REC values.

Public Act 11-80 of 2011 requires the Clean Energy Finance and Investment Authority to develop a residential solar incentive program that will result in a minimum 30 megawatts of new residential solar by December 31, 2022, and will be funded by the state's existing public benefits fund. Energy produced from systems funded in this way help reduce utility RPS obligations.

Public Act 11-80 of 2011 also requires that utilities enter into long-term contracts (15 years) for renewable energy credits from zero emission Class I renewable energy facilities (on the customer side of the meter) up to 1 MW. Zero emission Class I facilities include solar, wind, and hydro generators. Resulting zero emission renewable energy credits (ZRECs) may be used for RPS compliance during the year of generation or the subsequent year. Utilities are required to spend $8 million on contracts in year one, $16 million in year two, $24 million in year three, and $32 million in year four -- at which point the PURA will conduct a review. The maximum payment per ZREC authorized during the first year is $350. PURA may reduce this maximum per ZREC price yearly by 3-7%. The electric distribution companies submitted their six-year solicitation plan to PURA in December 2011. A Request for Proposal will be issued in the first half of 2012. See PURA docket 11-12-06 for additional details.

Public Act 11-80 of 2011 also requires that utilities enter into long-term contracts (15 years) for renewable energy credits from low emission Class I renewable energy facilities (on the customer side of the meter) up to 2 MW. The law establishes the emission criteria required to achieve "low emission facility" status, but could include facilities that generate using fuel cells, biomass, and landfill gas. Resulting low emission renewable energy credits (LRECs) may be used for RPS compliance during the year of generation or the subsequent year. Utilities are required to spend up to $4 million on contracts in year one, and an additional $4 million in subsequent years. PURA will conduct a review in year three. The maximum payment per LREC authorized during year one is $200. As part of the six-year solicitation plan for ZRECs, the utilities companies also included their solicitation plan for LRECs. The RFP for ZRECs will also solicit LRECs.

Public Act 13-303 also allows the DEEP commissioner to issue RFPs and require electric companies to enter into contracts with renewable energy system owners. All RECs will be sold in the regional REC market to be used by suppliers or electric companies to meet RPS obligations. RFPs may be issued for (1) Class I resources built on or after January 1, 2013 (limited to 4% of power distributed by electric companies); (2) Class I resources built before January 1, 2013 and hydropower over 30 MW built on or after January 1, 2003 in the New England REC market area (limited to 5% of the load distributed by electric companies); (3) Class I hydropower, landfill methane gas, and biomass (limited to 4% of the load distributed by electric companies).

*Previously known as the Connecticut Department of Public Utilities (DPUC).
Reporting of Nuclear Incidents (Connecticut) Connecticut Safety and Operational Guidelines Yes State/Province Each operator of a nuclear power generating facility shall notify the Commissioner of Environmental Protection or his designee, which may be another State Agency, as soon as possible but in all cases within one hour, by telephone, of the occurrence of significant events as defined by the U.S. Nuclear Regulatory Commission.
Residential Solar Investment Program (Connecticut) Connecticut State Rebate Program Yes State/Territory In March 2012, the Clean Energy Finance and Investment Authority (CEFIA) unveiled its new solar photovoltaics residential investment program. The ultimate goal of the program is to support 30 megawatts of residential solar photovoltaics (PV). There is $40 million allocated to the program. This residential program is limited to owner-occupied homes. Only customers of Connecticut Light & Power and United Illuminating are eligible.


There are two incentive types available, depending on the ownership of the PV system. For consumers who purchase a solar PV system for their residence directly, systems up to 5 kilowatts (kW) receive a maximum $1.25/W. Systems greater than 5 kW and up to 10 kW receive a $0.75/W rebate. Systems greater than 10 kW are allowed, but the incentive is only paid on the first 10 kW. Systems with a calculated “design factor” greater than or equal to 87% will receive the full incentive amount. Systems with a calculated “design factor” less than 87% will receive a rebate discounted according to calculated design factor.


For consumers who do not purchase a solar PV system directly but enter into a contract with a company that owns/operates the system, there is a performance-based incentive (PBI) available to that third party owner. Currently, it is $0.18 for six years and is paid on actual performance of the PV system. In both cases, there is a bonus for using components manufactured in Connecticut. All systems must be installed with a CEFIA Performance Data Provider approved monitoring system (the cost of this system has been taken into account in designing the incentive levels).


Systems installed in a Solarize Connecticut community will receive different incentives. See program website for more information.


Interested customers are required to have a home energy audit first then select a contractor from a CEFIA approved list. The contractor is responsible for completing all the paperwork and application materials, which are all completed online. Additional details are available on the web site.
Small Business Express Program (EXP) (Connecticut) Connecticut Loan Program Yes State/Province The Small Business Express Program (EXP) provides loans and grants to small businesses (not more than 100 employees) to spur job creation and growth. The Program provides access to capital through a revolving loan fund, and provides loans and grants through two job creation incentive programs.
Soil Erosion and Sediment Control Act, Soil and Water Conservation District, and Council on Soil and Water Conservation Regulations (Connecticut) Connecticut Siting and Permitting Yes Local These regulations establish Soil and Water Conservation Districts throughout the State of Connecticut. Each district has its own Board of Directors; membership and election procedures are defined in these regulations. Each Board will oversee issues related to soil and water conservation in its district, and may choose to review local projects that could impact soil and water conservation. The Council of Soil and Water Conservation will oversee the Boards and prepare an annual report regarding soil and water conservation.
Solid Waste Management (Connecticut) Connecticut Siting and Permitting Yes State/Province Solid waste facilities operating in Connecticut must abide by these regulations, which describe requirements and procedures for issuing construction and operating permits; environmental considerations; restrictions; and requirements for the disposal of special waste (incl. sewage treatment or industrial sludges, liquids, solids, and contained gases).
Solid Waste Management Services Act (Connecticut) Connecticut Environmental Regulations Yes State/Province This Act affirms the commitment of the state government to the development of systems and facilities and technology necessary to initiate large-scale processing of solid wastes and resource recovery. By this Act, maximum resource recovery from solid waste and maximum recycling and reuse of resources is set as an environmental goal of the State. Long-term negotiated contracts between the state and private persons and industries may be utilized as an incentive for the development of industrial and commercial enterprise based on resources recovery within the state. The Act provides regulations for the use of bonds to fund resource recovery projects, and establishes the Connecticut Resources Recovery Authority to oversee the planning, design, construction, financing, management, ownership, operation and maintenance of solid waste disposal, volume reduction, recycling, intermediate processing and resources recovery facilities and all related solid waste reception, storage, transportation and waste-handling and general support facilities.
State Agency Energy Efficiency or Renewable Energy Technology Test Program (Connecticut) Connecticut Green Building Incentive Yes State/Province The State of Connecticut has an established pathway to test new energy efficiency or renewable energy technologies in state offices. The technology, product or process must be presently available for commercial sale and distribution or have the potential for commercialization not later than two years following the completion of any test program by a state agency. If the test is successful, the Commissioner of Administrative Services may procure such technology for use by any or all state agencies.
Stream Flow Standards and Regulations (Connecticut) Connecticut Environmental Regulations Yes State/Province These regulations apply to all rivers and streams in Connecticut. Dam owners need to comply with these regulations unless the dam is principally used for hydroelectric power generation and is under the jurisdiction of the Federal Energy Regulatory Commission. Some other exemptions apply. The regulations describe river and stream classifications and prescribes standards for dam operation.
Tax Incremental Financing (Connecticut) Connecticut Bond Program Yes State/Province CDA provides Tax Incremental Financing for significant economic projects―these may be able to receive funds from tax-exempt or taxable bonds. The incremental taxes generated by the project service the bond debt.
The United Illuminating Company - Small ZREC Tariff (Connecticut) Connecticut Performance-Based Incentive Yes Utility In July 2011, Connecticut enacted legislation amending the state's Renewables Portfolio Standard and creating two new classes of renewable energy credits (RECs): Zero Emission Renewable Energy Credits (ZRECs) and Low Emission Renewable Energy Credits (LRECs). A Zero Emission Renewable Energy Facility is one that produces no emissions, such as solar, wind, or hydro. Owners of these facilities now have an opportunity to sell their ZRECs to the utility.


In coordination with the state's other investor-owned utility, the United Illuminating (UI) Company offers owners of small ZREC projects (less than or equal to 100 kW) the opportunity to enroll in the Small ZREC Tariff Program. The UI Small ZREC Tariff rate was set at $112.54 for Year 2 of the program. The program is available on a first-come, first-served basis. Sellers must register with NEPOOL Generation Information System and must apply to the Public Utilities Regulatory Authority (PURA) and be qualified as a RPS Class 1 generator. Equipment must be located behind the meter and have a dedicated ZREC meter. Customers may not have received funding or grants for the system from the state's Clean Energy Finance and Investment Authority (although customers that have received low cost financing are eligible).
The United Illuminating Company - ZREC and LREC Long Term Contracts (Connecticut) Connecticut Performance-Based Incentive Yes Utility NOTE:'' Next round of solicitation is expected to open on July 1st, 2015.


In July 2011, Connecticut enacted legislation amending the state's Renewables Portfolio Standard and creating two new classes of renewable energy credits (RECs): Zero Emission Renewable Energy Credits (ZRECs) and Low Emission Renewable Energy Credits (LRECs).

The state's two investor-owned electric utilities, United Illuminating (UI) and Connecticut Light & Power (CL&P) must enter into 15-year contracts for RECs from zero-emission "Class I" renewable energy facilities (on the customer side of the meter) larger than 100 kilowatts (kW) but not larger than one megawatt (MW). Zero-emission Class I facilities include solar, wind and hydro generators. Resulting zero emission RECs (ZRECs) may be used for RPS compliance during the year of generation or the subsequent year. Utilities are required to spend $8 million on ZREC contracts annually.* The price cap of one ZREC in 2012 was $350, $325.50 in 2013, and $302.71 in 2014. The Connecticut Public Utilities Regulatory Authority (PURA) may reduce the ZREC price cap annually by 3% to 7%.

The two utilities also must enter into 15-year contracts for RECs from low-emission Class I renewable energy facilities (on the customer side of the meter) up to 2 MW. The law establishes the emission criteria required to achieve "low-emission facility" status, but this category could include facilities that generate electricity using fuel cells, biomass or landfill gas. Resulting low-emission RECs (LRECs) may be used for RPS compliance during the year of generation or the subsequent year. Utilities are required to spend up to $4 million on LREC contracts annually.* The price cap of one LREC was $200 in 2012 and 2013.

The utilities jointly submitted their six-year solicitation plan in December 2011 and issued their first request for proposals (RFP) in May 2012. Winning bids are evaluated based on project quality, proposed ZREC or LREC price, and compliance with the RFP process. Bids must be submitted by email. Projects must be located in CL&P's or UI's service territory.


* PURA is authorized to review this budget and make adjustments after Year 3 for LRECs and Year 4 for ZRECs. It may terminate the program entirely if technology costs do not continue to fall. Because the utilities must spend $8 million per year on new 15-year ZREC contracts and $4 million per year on new 15-year LREC contracts, the total value of the annual solicitation is $120 million for ZRECs and $60 million for LRECs.

Tidal Wetlands Regulations (Connecticut) Connecticut Siting and Permitting Yes State/Province Most activities occurring in or near tidal wetlands are regulated, and this section contains information on such activities and required permit applications for proposed activities. Applications will be reviewed based on the activity's potential impact(s) on the wetlands of the state, adjoining coastal and tidal resources, navigation, recreation, erosion, sedimentation, water quality and circulation, fisheries, shellfisheries, wildlife, flooding and other natural disasters and water dependent use opportunities.
Urban and Industrial Sites Reinvestment Tax Credit Program (Connecticut) Connecticut Corporate Tax Incentive Yes State/Province The Urban and Industrial Sites Reinvestment Tax Credit Program provides up to $100 million in tax credits over a ten-year period to support projects that create jobs and capital investment in under-served areas. An Urban Site Investment Project is eligible if it creates significant economic activity and if it is located in a designated community. Eligible Industrial Site Investment Projects must have made an investment in or improvement to real property that has been subject to environmental contamination.