{"id":462,"date":"2018-07-23T15:55:28","date_gmt":"2018-07-23T15:55:28","guid":{"rendered":"http:\/\/efficiencyforall.org\/wordpress\/?p=462"},"modified":"2022-09-16T15:32:03","modified_gmt":"2022-09-16T15:32:03","slug":"legislative-theft-of-efficiency-funds-moves-forward-as-legal-briefs-filed","status":"publish","type":"post","link":"https:\/\/efficiencyforall.org\/wordpress\/2018\/07\/23\/legislative-theft-of-efficiency-funds-moves-forward-as-legal-briefs-filed\/","title":{"rendered":"Legislative Theft of Efficiency Funds Moves Forward as Legal Briefs Filed – Immediate Release 7\/23\/2018"},"content":{"rendered":"

Immediate Release<\/strong><\/span>
\nJuly 23, 2018<\/h1>\n

Contacts:
\nMelissa Schlag, CT Fund for the Environment (Plaintiff), 860-398-0569<\/a>
\nLeticia Colon de Mejias (Plaintiff), 860-690-5522<\/a><\/p>\n

Legislative Theft of Efficiency Funds Moves Forward as Legal Briefs Filed<\/strong><\/p>\n

Electric ratepayers, efficiency employers, environmental organizations, file for restoration of efficiency, clean energy funds<\/em><\/p>\n

Hartford, Conn. \u2013 The next step in a lawsuit to restore Connecticut\u2019s ratepayer energy funds took place on Friday, July 20, as attorneys for both sides filed briefs in federal court. Energy efficiency businesses, clean energy businesses, environmental nonprofits, and utility ratepayer organizations filed a federal lawsuit on May 15<\/span> to repeal the legislative sweep of Connecticut\u2019s energy efficiency and clean energy plan funds, and to prevent future diversions of ratepayer funds.<\/p>\n

Attorneys from the firms of Holland & Knight in New York City and Hartford-based Feiner Wolfson, representing the Plaintiffs, filed papers Friday<\/span> enabling U.S. District Judge Janet C. Hall in New Haven to render a speedy decision on the merits. State attorneys for the Defendants have filed their own summary judgment motion papers as well.<\/p>\n

In attempting to justify the illegal sweeps, the Defendant’s brief points to a $30 million sweep that took place in 2003 and a $12 million sweep that happened in 2005, arguing that because they raided the fund before, they have the right to do it again.<\/p>\n

\u201cA few prior acts of petty theft do not justify grand larceny,\u201d said Attorney Stephen J. Humes, partner at Holland & Knight. <\/strong>\u201cGiven the magnitude and brazen nature of the sweeps, recognized and acknowledged by legislators, it should come as no surprise that this time Defendants got caught with their hand in the till. As the state capitol floor debates made clear, the legislature knew it was stretching the bounds of its authority.\u201d<\/p>\n

Last year, Connecticut\u2019s legislature directed the Defendants\u2014the governor, the treasurer, and the comptroller of the State of Connecticut\u2014to divert $175 million from the Conservation & Load Management Charge, Renewable Energy Investment Charge, and Regional Greenhouse Gas Initiative (RGGI) funds to the State\u2019s General Tax Fund to fill a budget gap over two years. Much of that funding is collected from a small charge on Eversource and UI electric bills, paid by ratepayers and then returned back to the ratepayers as discounts on energy efficiency products, services, low interest financing, and solar panels. The legislature voted in May to restore $10 million of the Conservation & Load Management fund in fiscal year 2019, leaving a gap of $165 million from the state\u2019s demand reduction plan crippling efficiency programs, jobs, services, and financing for ratepayers who need help with efficiency or installing renewable resources. ($137 million in unlawfully seized ratepayer funds and $28 million in RGGI funds)<\/p>\n

 <\/strong>Plaintiffs are Leticia Colon de Mejias of Windsor; The Connecticut Fund for the Environment, Inc.; New Haven-based Fight the Hike; Energy Efficiencies Solutions, LLC; Best Home Performance of CT, LLC; Connecticut Citizen Action Group; New England Smart Energy Group, LLC; CT Weatherproof Insulation, LLC; Steven C. Osuch of East Windsor; Jonathan Casiano of Windsor; and Bright Solutions, LLC.<\/p>\n

The lawsuit argues that using ratepayer funding for other than its intended purpose violates the Contracts Clause of the United States Constitution and functions as an illegal tax on tax-exempt organizations. The Plaintiffs\u2019 motion filed Friday<\/span> requests that the court declare the funding sweeps null and void, and issue an injunction requiring the swept funds be replaced immediately and forbidding the State from sweeping the funds in the future.<\/p>\n

The first transfer of $73.5 million of ratepayer dollars and $14 million of RGGI funds into the state\u2019s General Fund took place on June 25, 2018. An additional transfer of $63.5 million of ratepayer dollars and $14 million of RGGI funds are scheduled to be made in June 2019.<\/p>\n

\u201cThe State of Connecticut took $137 million in funds paid by residents on their electric bills for specific energy efficiency and clean energy services, and used that money to plug an unrelated budget hole instead. That was illegal and unconstitutional. We\u2019re demanding the funds be returned and used for their intended purpose: projects that reduce home heating and electric bills, generate economic activity and jobs, and slash air pollution,\u201d said Roger Reynolds, chief legal director at Connecticut Fund for the Environment, a plaintiff in the case<\/strong>. \u201cWe are gratified the court accepted our request and put this on a remarkably expedited schedule, as time is of the essence if we are to prevent severe damage.\u201d<\/p>\n

Plaintiffs argue that the raided funds have created more than 34,000 local energy efficiency jobs, increased state GSP, and added millions to the green energy economy. They further state the energy efficiency program consistently reduces energy demand year after year, lowering air pollution, water pollution, and strengthening the energy grid to protect vulnerable populations.<\/p>\n

\u201cAs a residential and business ratepayer, and as an environmental activist, employer, and concerned mother, I stand strongly against the politics behind this illegal state action to tax our electric and gas bills, tax nonprofits, and misdirect ratepayer money into general state coffers,\u201d said Leticia Colon de Mejias, chair of Efficiency For All (EFA)<\/strong>. \u201cThis theft has undermined our state energy demand reduction plan and has already resulted in thousands of Connecticut layoffs and several business closures\u2014leaders must be held accountable. I have personally been forced to lay off several employees due to this irresponsible action by our state leaders. If the legislators were my children I would be telling them, \u2018Just because you snuck two cookies and we didn\u2019t notice, does not mean that we won’t punish you when we find the cookie jar two-thirds empty.\u2019\u201d<\/p>\n

\u201cTop state lawmakers have said that forcing Eversource and UI customers to pay more than their fair share to balance lawmakers\u2019 state budget is perfectly defensible, and that people who pay Eversource or UI electric bills should get used to paying what one legislative leader says is a new electric bill tax,\u201d said Mike Trahan, executive director of Solar Connecticut<\/strong>, the state\u2019s solar energy business group. \u201cIt’s remarkable that we’ve had to drag state legislators into federal court where a judge will decide if lawmakers scammed consumers out of $165 million.\u201d<\/p>\n

\u201cWe are now seeing the real life fall-out of this misguided, irresponsible decision by the state to divert funds that wasn\u2019t theirs to take; we are not only losing valuable, skilled technicians but we are losing entire companies,\u201d said Stephanie Weiner, CEO and founder of New England Smart Energy Group, LLC<\/strong>. \u201cIf these funds are not restored in the very near future, we will see a once thriving and growing Connecticut industry, that actually helped all the residents of Connecticut save money on their energy bills, disappear forever.\u201d<\/p>\n

\u201cIt breaks my heart, when we receive a call from a client whose house is drafty and leaky and who needs new windows and\/or insulation. And the efficiency charge money they have been contributing on a monthly basis towards the plan is no longer there for them,\u201d saidVivian Perez, co-owner of HE-Energy Solutions, LLC<\/strong>.<\/p>\n

\u201cAs a result of the sweeps, Plaintiffs no longer get what they paid for,\u201d said Attorney Humes<\/strong> \u201cWhile the Plaintiffs will continue to pay surcharges into the funds, they will no longer receive the benefits of their payments, nor will they be able to access energy efficiency services or clean energy investments like before. The State has violated the public trust. In light of the ongoing harm caused by the transfer of these funds, we\u2019re pleased the federal court has set an aggressive schedule to resolve the matter in a timely way.\u201d ###<\/p>\n

Background:<\/strong><\/p>\n

Motion for Summary Judgment<\/a><\/p>\n

May 15<\/span> Complaint<\/a><\/p>\n

Press release on filing of lawsuit<\/a><\/p>\n

Summary of case and background<\/a><\/u><\/p>\n

More information can be found at www.efficiencyforall.org<\/a><\/u> and www.ctenvironment.org<\/a><\/u>.<\/p>\n

Quotes from Senate leaders defending<\/em> the sweeps:<\/p>\n

\u201cI believe it\u2019s defensible, what we\u2019ve done,\u201d the Senate\u2019s top Democratic leader, Martin M. Looney<\/a> of New Haven, said of the legislature\u2019s move to sweep up those energy conservation monies. – Hartford Courant, May 16, 2018.<\/p>\n

In a letter from Senate Republican President Leonard A. Fasano to the Connecticut Green Bank\u2019s President and CEO, Bryan Garcia, Senator Fasano wrote, \u201cAlthough some may argue that the money you receive is \u2018ratepayer dollars,\u2019 I would argue those funds are taxpayer dollars.\u201d – March 16, 2018.<\/p>\n

To speak with contractors who are experiencing direct harm or staff who were let go please contact Leticia Colon de Mejias<\/strong> at 860-690-5522<\/a>.<\/strong><\/p>\n

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Additional News Articles:<\/strong><\/div>\n
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