Elimination of Energy Conservation Improvement Fund considered

The Energy Conservation Improvement Fund would lapse to the general fund under a bill heard by the Revenue Committee March 9.

The fund currently provides grants for public and nonprofit electric utilities with matching funds to complete energy conservation improvements for Nebraska homeowners whose income is at or below 150 percent of the federal poverty level. The fund receives revenues from state sales taxes collected on electric bills.

LB385, introduced by Hastings Sen. Dennis Utter at the request of the governor, would terminate the fund on June 30, 2012.

Utter said the energy conservation program has been underutilized and its elimination would provide an increase of $4.7 million to the general fund.

Ginger Willson, director of the Nebraska Energy Office, testified in support of LB385. She said the energy conservation program duplicates efforts of the Low Income Weatherization Assistance Program administered by her office.

Tom Richards, representing the Nebraska Power Association, testified in opposition to the bill. Electric utilities absorb most of the costs of the energy conservation program, he said, adding that federal stimulus funding that supports the Low Income Weatherization Assistance Program will expire soon.

“When federal stimulus dollars run out in the state of Nebraska, there will be an increase in demand for the [Energy Conservation Improvement Fund],” he said.

The committee advanced the bill to general file 8-0.