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H.289 would reallocate energy-efficiency funds, earmark money for thermal programs and EV incentives
Summary
The committee reviewed sections of H.289 that would shift energy-efficiency charge revenues to thermal-efficiency programs, allocate specific yearly amounts to community programs and weatherization, and route certain RGGI proceeds toward electric-efficiency and electric-vehicle incentive programs.
Legislative counsel walked the House Energy and Digital Infrastructure Committee through draft H.289 language that would move existing energy-efficiency funds into the fuel-efficiency fund and direct proceeds from RGGI (the Regional Greenhouse Gas Initiative) toward electric-efficiency and electric-vehicle programs.
Ellen Tchaikovsky, Office of Legislative Council, described the bill as “moving funds around that are currently for different programs,” and warned the committee that annual appropriations and future legislatures will still control final budget outcomes.
Key allocations described in the draft:
- For calendar years 2025 and 2026, up to $7,000,000 of revenues collected by the energy-efficiency charge would be allocated to the fuel-efficiency fund. For calendar years 2027, 2028 and 2029, $15,000,000 per year of energy-efficiency charge revenue would be allocated to the fuel-efficiency fund (the draft refers to moving electric-efficiency dollars to thermal-efficiency projects).
- From the funds described above, $900,000 per year would be allocated to fund “Energy Navigators” delivered through the community action agencies, and $750,000 per year would be allocated to the Department for Children and Families to support heat-pump deployment through the weatherization assistance program.
- The bill would cap the total amount collected from the energy-efficiency charge in 2027–2029 at no more than the amount authorized to be collected in 2026, per the draft.
Tchaikovsky said the bill also proposes RGGI-related allocations: for calendar years 2025–2029, net proceeds from the sale of carbon credits up to $6,000,000 would be deposited into the electric-efficiency fund. Any proceeds above that amount would be allocated to electric-vehicle incentive programs, including a new or existing set of programs described in statute (plug-in incentives, mileage-based programs and vehicle-replacement programs cited in draft statutory cross-references).
Committee members pressed for more specifics on the mechanics of moving money mid-year, whether the allocations represent new net spending versus reclassification of funds, and the legislative role in annual appropriations. Tchaikovsky recommended the committee hear from the Public Utility Commission and agencies that administer efficiency and weatherization programs to explain existing fund flows and how the proposed reallocations would operate in practice.
The committee did not vote on the language and asked for further fiscal and administrative detail from agencies.
