Energy performance based connection fees : A case study in New York State

Energy connection fees and rebates, based on the projected energy load or efficiency of new buildings are currently being considered as a policy option for promoting greater energy efficiency in new construction. In theory, a well designed system of connection fees and rebates could provide states and utilities with a revenue neutral means of creating direct financial incentives for the construction of more energy-efficient buildings. However, a recent case study in New York State found that, in practice, many of the most important features affecting building energy efficiency could not be easily incorporated in connection fee programmes, and that implementation of even a scaled down programme would require a level of administrative commitment and resources which would be difficult to maintain. Instead of implementing connection fee programmes, the authors recommend devoting more resources to an approach based on the combined use of building energy rating systems, enhanced codes with better enforcement, and strategically placed financial incentives and design assistance.