Bill terminating Energy Conservation Improvement Fund advances

Revenues from designated sales tax revenues deposited to the Energy Conservation Improvement Fund would transfer to the general fund under a bill advanced from general file March 17.

The fund supports the Low-Income Home Energy Conservation Act, which offers grants to public and nonprofit electric utilities providing 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 up to 5 percent of state sales taxes collected on electric bills of participating utilities.

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

Utter said the fund has been underutilized and the conservation program duplicates other energy efficiency programs that receive federal funding, such as the Low Income Home Energy Assistance Program and the Low Income Weatherization Assistance Program. LB385 could result in a savings of $4.6 million to the general fund, he said, adding that the fund could be resurrected if needed.

“There are other programs out there that will provide weatherization programs for low-income residents in the state of Nebraska,” Utter said. “I don’t think state government needs a pile of unused programs in storage.”

Omaha Sen. Heath Mello spoke in opposition to the bill, saying the program was just created in 2008 and will become more important when federal funds for energy efficiency programs expire or diminish.

Further, he said, the Low-Income Home Energy Conservation Act grants fund larger energy efficiency projects such as heat pumps, while alternative programs presented by Utter focus more on smaller projects such as caulking, weather stripping and insulating.

Mello offered an amendment that he later withdrew to cap the sales tax revenue deposited to the fund at the amount established by the Legislature’s Appropriations Committee as part of the state budget. He also offered and withdrew a motion to bracket the bill.

LB385 advanced from general file 29-0.