In last year's Budget Reconciliation and Financing Act (SB 166/HB 101), funding raised in Regional Greenhouse Gas Initiative (RGGI) auctions was diverted away from energy efficiency programs into the Electric Universal Service Program (EUSP) for two years.
All the businesses and organizations listed above urge you to reject any proposal to extend that diversion beyond the two years. After the diversion expires, the RGGI funding formula will return to the original numbers, specifically:
- 17% for EUSP and other electricity assistance programs
- at least 46% for energy efficiency and conservation programs, of which at least half is targeted to the low- and moderate-income residential sector
Federal stimulus dollars are serving as a backstop for these two years to fill the hole. As soon as the federal stimulus money dries up, however, energy efficiency funding would again drop precipitously. Clean energy businesses have been able to grow thanks to the programs funded with federal stimulus dollars. If those programs disappear, some of those businesses are likely to fail.
In such difficult economic times, it is especially critical to lay strong foundations for sustained economic prosperity in the years to come. Investments in energy efficiency programs should be part of that foundation. Efficiency programs reduce electricity bills for homeowners and small businesses as well as create green jobs and careers right here in Maryland. At the same time, energy efficiency is our best tool in achieving the state’s bold goals for reduced energy consumption and greenhouse gas emissions.
Energy efficiency programs are smart now and in the long-run. Every dollar invested in these programs means reduced energy usage, reduced pollution, money saved, and jobs created in Maryland. Direct assistance serves an important purpose, but throwing clean energy money at bill-paying assistance is a short-sighted strategy. More families will fall into arrears on their utility bills if we do not help them reduce actual energy usage, especially in low-income neighborhoods. While bill-paying assistance provides temporary relief, energy efficiency will provide lasting benefits to families through lower energy bills each month.
