How Your Tax Dollars Secretly Bailed Out a Private Agency

There was no debate on $11 million added to last year’s Bond Bill even though it was the second line item on the budget.  If it is for something as worthwhile as energy efficiency how could it be a bad thing?  In reality the money was used to cover up an embarrassing situation for the Markell Administration and a powerful state senator. 

By Executive Order in 2008, Governor Markell established a goal of reducing energy usage by state agencies by 30% by 2013.  Just the year before, legislation created a target of reducing statewide electric power demand by 15% by 2015 using efficiency programs to be run by the Sustainable Energy Utility (SEU).  The SEU was set up as a private non-profit with its $3.5 million a year operations budget funded by the state.  The SEU was also given the authority to issue tax free bonds to pay for energy efficiency projects so no general revenue tax money would be used.  The lead proponent, Joint Finance Committee Co-Chair Senator Harris McDowell, became the Co-Chair of the SEU Oversight Board.  A powerful bias to maximize energy efficiency gains, regardless of cost, was created.

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