BUILDINGS

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BUILDINGS FACILITIES

• Fossil Fuel Energy
• March 3, 2005

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CONNECTICUT PROPOSALS

• Environment Northeast
• Introduced in legislature
• 3 surcharge based on level of electric SBC
• Applied to
• Natural gas
• Heating oil

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CONNECTICUT PROPOSAL -- gas

• ENE estimates EACH 1 million of annual funding
  for gas energy efficiency would yield
• 2.9 million lifetime energy cost savings, BC
  ratio almost 31
• Yield GHG and air emissions benefits
• Help mitigate price pressures on gas

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CT. PROPOSAL -- HEATING OIL

• ENE estimates EACH 1 million of annual funding
  for heating oil conservation would yield
• 3.9 million lifetime energy cost savings, BC
  ratio about 3.81
• GHG and air emissions benefits

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DRAFT RI APPROACH

• Surcharge on fossil fuel usage
• Natural gas
• Heating oil
• Propane
• Dedicated fund for oil/gas energy efficiency and
  renewables (like biodiesel)
• Illustrative funding level
• 0.5 percent
• 1.0 percent
• 2.0 percent

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ONE PERCENT SURCHARGE
FUEL TYPE ANNUAL FUNDING (000) LIFETIME SAVINGS (000) NET BENEFITS(000) ANNUAL SAVINGS (000) LT GHG SAVINGS
GAS 4,360 13,080 8,720 1,920 THERMS 56,800 MT
OIL 2,820 8,450 5,630 1,240 GAL. 67,900 MT
TOTAL 7,450 22,350 14,900 128,200 MT
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FEEDBACK FromBF Working Group

• Any new revenue source is politically difficult
  in the current year and
• Look at other ways of structuring funding for
  future discussion

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1 - base surcharge on Btu content of fuel

• Instead of of price, have a flat fee per Btu
  that is applied to each fuel
• This approach was looked at last year when BF WG
  initially considered these surcharges
• Natural gas -- 0.009/therm
• Propane -- 0.008/gallon
• Heating oil -- 0.012/gallon

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2- use a per-customer charge

• For example, a fixed charge/month for 6 major
  customer groups
• Residential natural gas
• Residential fuel oil
• Small/medium C/I gas
• Small/medium C/I oil
• Large C/I gas
• Large C/I oil

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3 - start with a small funding level

• For example, the 0.5 of retail price scenario

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4 - focus on lower-income households in the near
term

• Fund energy-efficiency and alternative energy in
  lower-income households only, through
• Charge on all gas and oil users or
• Charge on residential gas and oil users only

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Other Ideas

• Impose surcharges at the wholesale level
• Does the state have the authority to do this?
• Create a 3rd electric SBC, which would be devoted
  to fossil fuel programs

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NEXT STEPS

• Developing program resources to reduce buildings
  sector fossil fuel growth is important to
  achieving GHG savings

• How can the GHG process and its stakeholders
  carry this issue forward from here?