Energy Efficient Tax Incentive and Building Electrification Hearing

HOUSING COMMITTEE, THURSDAY, MARCH 10, 2022, 12PM

• Individuals who wish to testify via Zoom must register using the On-line Testimony Registration Form.  Registration will close on Wednesday, March 9, 2022 at 3:00 P.M.  Speaker order of approved registrants will be posted on the Housing Committee website on Wednesday, March 9, 2022 at 6:00 P.M. under Public Hearing Testimony.
• Please email written testimony in Word or PDF format to HSGtestimony@cga.ct.gov.

S.B. No. 292 AN ACT CONCERNING HEATING EFFICIENCY IN NEW RESIDENTIAL CONSTRUCTION AND MAJOR ALTERATIONS OF RESIDENTIAL BUILDINGS.

Bill Summary:

• The State Building Inspector and the Codes and Standards Committee shall, in the adoption of the 2024 International Energy Conservation Code and subsequent versions, prohibit the use of any electric resistance or fossil fuel combustion system as the primary source of heating, ventilation and air conditioning or water heating in new residential construction or in major alterations of residential buildings.
• The Department of Energy and Environmental Protection shall, within available appropriations, develop a program for the training and education of engineers, builders, contractors or superintendents of construction doing business in this state on the mechanics and application of thermal space and water heating systems other than electric resistance or fossil fuel combustion

TALKING POINTS:

• We support transitioning away from fossil fuel combustion in our housing stock. We need to stop expanding our gas infrastructure if we are to meet our state's climate targets identified in the Global Warming Solutions Act Public Act 08-98 of 45% reduction in greenhouse gas emissions by 2030 and 80% by 2050, and high efficiency all-electric construction generates much fewer emissions with our current electric grid, which will only get cleaner over time.
• Fossil fuel combustion inside our homes creates harmful indoor air pollution. A recent study estimated that burning fossil fuels in buildings led to 318 additional deaths and $3.567 billion in health impact costs in 2017 in Connecticut alone. One study showed that children living in homes with gas stovetops are 42 percent more likely to develop asthma than in homes without, and asthma rates in the state of Connecticut are currently higher than the national average. Newer construction codes are requiring higher levels of air sealing and greater energy efficiency, which means the pollution we make inside our home will have a higher impact.
• Electric heating using heat pumps is more than 3 times more energy-efficient than fossil fuel appliances. This is because it moves heat instead of generating it. Heat pumps have demonstrated success in colder climates than ours. Maine is well on its way to meet its goal to install 100,000 heat pumps by 2025. Heat pumps are a proven and reliable technology in Canada.
• There are many precedents of demonstrated success for cost-effective all-electric residential construction including in the Northeast.
• The cost of electric heating can be offset with onsite renewable energy such as solar panels, unlike fossil fuel heating.
• Energize CT recognizes the benefits and offers an incentive for all-electric construction through its residential new construction program, and the Connecticut Housing Finance Authority provides additional points for all-electric affordable housing.
• We support the addition of workforce training in this bill because although many in the industry have already embraced all-electric construction, this training will help those that haven't had the bandwidth or means to make the transition.
• We think combining it with the adoption of the 2024 International Energy Conservation Code (anticipated to happen in 2025) will give the industry adequate time to prepare.

S.B. No. 295 AN ACT CONCERNING TAX CREDITS FOR ENERGY-EFFICIENT HOMES.

Bill Summary:

• Between Jan 1, 2022 and Jan1, 2026, A tax credit of $2500 for an individual taxpayer or $5,000 for taxpayers filing jointly for purchasing a newly constructed energy efficient home.
• The home must serve as a principal residence for a minimum of five years, and the tax credit can be carried forward for those five years.
• An "energy-efficient home" means a newly constructed home with a score of fifty or less on the Home Energy Rating System Index.

TALKING POINTS:

• Energy-efficient housing has many benefits to the state of Connecticut including lower carbon emissions, reduced health impacts, reduced energy assistance, and the creation of high quality jobs.
• This tax credit will help to offset the minimally higher cost of construction related to better energy-efficiency.
• Energy efficiency is extremely important in Connecticut due to our high energy burden, and our above average asthma rates.
• The physical attributes of a home that impact energy cost also directly tie to occupant health such as adequate ventilation, moisture, and thermal comfort. An energy-efficient home is a healthier home.
• Investments made in energy-efficiency will yield economic, health, and climate benefits for years to come.
• We need to increase the energy efficiency of our building stock to meet our state's climate targets identified in the Global Warming Solutions Act Public Act 08-98 of 45% reduction in greenhouse gas emissions by 2030 and 80% by 2050.
• We would recommend that the HERS rating used to confirm eligibility not include onsite renewable energy.

Testimony should clearly state testifier name and related Bills.  The Committee requests that testimony be limited to matters related to the items on the Agenda.  The first hour of the hearing is reserved for Legislators, Constitutional Officers, State Agency Heads and Chief Elected Municipal Officials.  Speakers will be limited to three minutes of testimony.  The Committee encourages witnesses to submit a written statement and to condense oral testimony to a summary of that statement.  All public hearing testimony, written and spoken, is public information.  As such, it will be made available on the CGA website and indexed by internet search engines.

The Housing Committee will hold a public hearing on Thursday, March 10, 2022 at 12:00 P.M. via Zoom.  The public hearing can be viewed via YouTube Live.  In addition, the public hearing may be recorded and broadcast live on CT-N.com.    If you do not have internet access, you may provide testimony via telephone.  To register to testify by phone, call the Phone Registrant Line at (860) 240-8876 to leave your contact information.