National Leader, Connecticut Green Bank Reaches Milestone in Project Financing

The Connecticut Green Bank’s C-PACE program recently surpassed $100 million in closed project financing. Out of the 19 states with C-PACE (Commercial Property Assessed Clean Energy) programs, this project financing level is second only to California, according to officials. The Connecticut Green Bank’s C-PACE program reached the milestone of $100 million in total closed project financing. The solar photovoltaic (PV) and energy efficiency projects, which vary in size and scope, are saving more than $9.29 million annually in energy costs for nearly 170 building owners across multiple sectors. 

The Green Bank, which administers the C-PACE program, seeks to make green energy more accessible and affordable to commercial and industrial property owners by providing no money down long-term financing for meaningful energy upgrades to their buildings.

C-PACE enables building owners to finance qualifying energy efficiency and renewable energy improvements through a voluntary assessment on their property tax bill. As the program grows, more Connecticut businesses can achieve lower energy costs. Reaching $100 million in closed project financing reaffirms Connecticut’s program as a national leader, officials indicated.

Since its inception in 2011, 166 C-PACE projects have been closed in 69 of the 128 municipalities that have opted into the program. C-PACE funds have been used in manufacturing facilities, non-profits, houses of worship, retail establishments, office buildings, and other business entities.  The projects consist of solar installations, new boilers, energy efficiency lighting measures, HVAC systems, and other energy improvements that help building owners to take control of their energy costs.

“Connecticut’s Green Bank has really been the national leader for C-PACE,” said David Gabrielson, the Executive Director of PACENation, the national non-profit that supports development of PACE programs nationwide. “The way they administer their program has really served as a great example for other program administrators throughout the U.S., and we congratulate the entire Green Bank team on this impressive milestone.”

The project that propelled the Green Bank over this milestone will be installed at Farmington Sports Arena (FSA). FSA is a 130,000-square foot modern indoor sports facility that is home to four indoor and three outdoor artificial turf fields as well as four natural grass outdoor fields. The project, which will be installed by 64 Solar, consists of two solar PV systems (170 kW total).

Connecticut’s C-PACE program maintains an open market approach, allowing private capital providers to finance projects for building owners, and, in 2015, the Green Bank reached an agreement that provided it access to up to $100 million in private funding for C-PACE projects. Today, nearly 70% of the funding in the program consists of private capital.

“The Connecticut Green Bank is a leader in the green energy movement, but the rapid growth of C-PACE wouldn’t be possible without the support of our contractors, capital providers, municipal officials, and other stakeholders who have contributed to the C-PACE movement,” said Mackey Dykes, Vice President of Commercial, Industrial and Institutional programs at the Connecticut Green Bank. “There is still significant potential for energy improvements for Connecticut businesses and non-profits, and we look forward to bringing cleaner and cheaper energy to more building owners across the state.”

The website Energy Collective noted recently that “states have and will continue to play a key role in leading the clean energy transition,” highlighting the work in Connecticut as among the national models.

“Connecticut has found a way to make the financing of clean energy deployment more accessible and affordable for consumers and businesses. In 2011 the state legislature created the Connecticut Green Bank, the nation’s first green bank. It uses public funds to attract private capital investment in green energy projects. By leveraging private investment, the Green Bank significantly increases the total amount of financing available for clean energy projects.

The site highlighted that “Among the Green Bank’s most successful initiatives is the Commercial Property Assessed Clean Energy (C-PACE) program, which allows commercial property owners to pay for clean energy or efficiency upgrades over time through their property taxes.

The Connecticut Green Bank is the nation’s first green bank. Established by the Connecticut General Assembly on July 1, 2011 as a part of Public Act 11-80, the Connecticut Green Bank evolved from the Connecticut Clean Energy Fund (CCEF) and the Clean Energy Finance and Investment Authority (CEFIA), which was given a broader mandate in 2011 to become the Connecticut Green Bank.

https://youtu.be/kPqO4QlTkDU

Immigration May Be Key to Connecticut's Economic Future (Again)

Immigrants may be a pivotal component in Connecticut’s economic strength – or weakness – in the coming decade, according to recent statistics.  Population projections from the University of Virginia’s Demographics Research Group, reported by the American Immigration Council, show that in many states in the Northeast and Midwest, including Connecticut, growth of the working-age population is slowing due to aging, lower fertility rates, and people moving out of the state. The aging of the workforce in the working-age population can mean shrinking workforces and potential economic problems, the Council reported recently. As a result, “states need to think about how immigration can ameliorate impending trouble.”

By 2020, the number of working age adults (age 25-54) is expected to decline in 16 states. For example, in Maine, while the overall population is expected to decrease by about two percent, the working age population will decline by 16 percent. Vermont and West Virginia can also expect declines of more than 10 percent, while Connecticut, Illinois, Michigan, New Hampshire, Ohio, Pennsylvania, Rhode Island and Wisconsin can expect more than five percent decline, according to the data.

Those states “will become less attractive to the people who are already there, and less attractive to newcomers,” according to UC-Berkeley demographer Ronald Lee, who explained that a shrinking working-age population can hurt a state’s economy: businesses close due to a lack of workers and customers, housing prices drop, schools close, and tax revenue declines.

The decline in the working-age population will not be offset by births, the Council reported, citing data the projects the current total fertility rate is about 1.86 children per woman and would need to be at least 2.08 for the population to replenish itself. At the same time, the U.S. population is getting older and living longer. The Bureau of Labor Statistics (BLS) projects that by 2024, Americans age 55 and older will increase by 18.2 million—reaching 102.9 million, or 38.2 percent of all people in the country.

Reliance on immigrants is nothing new for Connecticut.  The Connecticut Business and Industry Association recently cited statistics from the New American Economy, which indicated that 494,059 Connecticut residents were born abroad.  That is 14 percent of the state’s population, compared to 13 percent across the United States.

For example, almost a quarter (23%) of Connecticut workers in science, technology, engineering, and math fields such as healthcare and bioscience were immigrants.  Over 36,000 foreign-born Connecticut residents are self-employed, with immigrant-owned businesses generating $1.1 billion income in 2014 while employing 73,047 people. “Immigrants are already playing a huge part ensuring that Connecticut remains a leading innovator in industries like healthcare and bioscience,” according to the analysis.

The report also notes that foreign-born workers currently make up 21.3 percent of all entrepreneurs in the state, despite accounting for 13.7 percent of Connecticut’s population.

Immigration mitigates the downward population trends that are anticipated, in Connecticut and beyond. In many areas of the country, the foreign born have accounted for more than 20 percent of the growth of the adult population since 1990. In some areas – mainly in the Midwest – overall adult population would have declined if not for an increase in the foreign born population. Almost half of immigrants admitted between 2003 and 2012 were between the ages of 20 and 40, while only 5 percent were ages 65 or older, the Council reported.

Rebuffed Again in CT, Tesla Explores Growth in Westchester

Tesla’s goal of selling vehicles direct to consumers in Connecticut remains elusive, dismissed out of hand by Connecticut’s legislature this year, as last year and the year before.  Even the sole “gallery” the electric car manufacturer and retailer has been operating in the state, in Greenwich, has been ordered by the Connecticut Department of Motor Vehicles to “cease all functions.” Within a stone’s throw of the state line, in Westchester County, NY, the company is actively exploring potential locations for a new car dealership and customer education center, according to published reports. Under Connecticut’s dealer franchise law, automobiles may only be purchased through independent car dealerships.  Tesla’s business model relies on direct-to-consumer sales.

Both a retail center and warehouse in the town of Greenburgh are currently under consideration, Westfair Publications reported this week.  “We’ve been working with Tesla for quite some time now in searching for a proper facility in the area where they can house both sales and service,” said James MacDonald of Simone Development Cos., a Bronx-based company that owns both potential Tesla properties, Westfair reported.

In June, as the Connecticut legislature’s regular session concluded, a proposal that would have permitted Tesla to sell cars directly to consumers was never raised for debate. It made it through the Transportation and Finance, Revenue, and Bonding Committees, but was never called for a vote in either chamber.

House Speaker Joe Aresimowicz said at the time that he was reluctant to say that it was the objections of the state’s car dealers, who are subject to the regulations under the state’s motor vehicle franchise system, that killed the Tesla bill, CTNewsJunkie reported.  The Connecticut Automobile Retailers Association strongly advocated for defeat of the proposed legislation this year, as in previous years.

In New York, Tesla is currently limited to five sales locations, in accordance with a law passed in that state in 2014.  Efforts are underway in New York to increase that number.

A spokesman for Tesla said in June that the company wasn’t quite ready to give up on Connecticut.  Diarmuid O'Connell, Tesla's vice president of business development, said in an interview with the Hartford Business Journal in May that the company hoped to open 10 stores if the legislation was approved, which would "conservatively" employ 25 full-time workers.

"We're talking 250 jobs in the near term," O'Connell said, adding that some locations could employ as many as 50 people, the newspaper reported. The company also released a Greenberg Quinlan Rosner poll showing that 74 percent of Connecticut residents "strongly" or "somewhat" support allowing direct sales in Connecticut.

Tesla is prohibited from selling directly in Connecticut, Michigan, Texas, and West Virginia, according to the company. There are about 1,300 Teslas registered in Connecticut, nearly two-thirds of the electric vehicles in the state, according to the state Department of Motor Vehicles.

In a recent op-ed published in New York, Nick Sibilla of the Institute for Justice, a libertarian public interest law firm, indicated that in a review of employment figures for car dealerships in Massachusetts, New Jersey and New York, the Acadia Center, a nonprofit focused on creating a clean energy economy, concluded that “there has been no negative impact on auto dealer job levels or trends” in nearby states that allow direct sales of electric vehicles.  The Union of Concerned Scientists recently pointed out that “between January and June of 2016, dealers in the Bridgeport to New York City metro area had 90 percent fewer electric vehicles listed for sale than Oakland, when adjusted for relative car ownership.”

Tesla is currently in the midst of raising $1.5 billion as it ramps up production of the Model 3 sedan, its first mass market electric car, with an anticipated pricetag hovering around $35,000, about half the cost of Tesla's previous models, and thought to be more attractive to consumers.  The loss in sales tax revenue to Connecticut could be substantial if sales of the Tesla are not permitted in the state, according to some estimates.

Will the company’s plans impact legislatures in Connecticut or New York?  Back in June, CTNewsJunkie reported Connecticut House Majority Leader Matt Ritter said he thought the issue might be resolved “when you see more Teslas” on the road.  That day may be coming, emanating from Greenburgh if not Greenwich.

Knowledge Corridor to Gain Boost as More Frequent Rail Runs Through It

For years, the tag line has been “innovation runs through it.”  In the coming year, there will also be more frequent rail service running through it, and that may make all the difference in the world. When proponents of economic development in what’s known as “New England’s Knowledge Corridor” get together for a conference this fall, it will be with the backdrop of the three anchor cities that span two states – New Haven, Hartford, and Springfield – being more connected than ever, with the start of the new regular rail service between the cities just months away.

The half-day conference, “Leveraging the Knowledge Corridor’s Transportation Assets and Investments to Drive Economic Progress,” will be held at Union Station in Springfield on October 18.  It will serve as the coalition’s 2017 “State of the Region” conference.

The keynote speaker will be Robert Puentes, President/CEO of the Eno Center for Transportation.  Panelists will include five members of Congress from the region:  Richard Neal and James McGovern from Massachusetts and John Larson, Rosa DeLauro, and Elizabeth Esty from Connecticut.

Plans also include talks by Connecticut Commissioner of Transportation James Redeker and his counterpart in the Bay State, Stephanie Pollack, Secretary/CEO of the Massachusetts Department of Transportation.  Officials also anticipate releasing the results of the 2017 New England Knowledge Corridor Business Survey.

"In the Knowledge Corridor, we’re convinced that the transportation assets we have; new ones that will be coming online in the  next year or two, plus; those we are planning to see realized over a longer range time line constitute the bedrock of a competitive 21^st century economy that enables ready and affordable access to skilled workers, attractive markets and motivated consumers on a global scale," Tim Brennan, Chairman of New England Knowledge Corridor Partnership and Executive Director of the Pioneer Valley Planning Commission, told CT by the Numbers.

On Monday, Governor Dannel P. Malloy announced that a joint venture of TransitAmerica Services and Alternate Concepts has been selected as the service provider that will operate and manage service on the Hartford Line – which is expected to launch in May 2018.

Work is continuing throughout the summer, including grade crossing upgrades in Wallingford this month, as part of the overall upgrade of the New Haven-Hartford-Springfield rail line – now branded as the CTrail Hartford Line, with expanded service scheduled to being in 2018, according to transportation officials.  Last month, construction in Meriden and Windsor included track construction upgrades.

New England’s Knowledge Corridor is an interstate partnership of regional economic development, planning, business, tourism and educational institutions that work together to advance the region’s economic progress. The region “transcends political boundaries,” officials point out, and it comprises the Hartford, Springfield and New Haven metro areas and is centered on seven counties in the two states, underscoring the area’s “rich tradition of inventions, research and higher education.”

The New Haven-Hartford-Springfield (NHHS) Rail Program is a partnership between the State of Connecticut, Amtrak and the Federal Railroad Administration.  The goal is to provide those living, working or traveling between New Haven, Hartford and Springfield with high speed rail service equal to the nation’s best rail passenger service, officials emphasize.

The Hartford Line will act as a regional link with connections to existing rail services, including Metro-North, Shoreline East, and Amtrak Acela high-speed rail services on both the New Haven Line to New York and on the Northeast Corridor to New London and Boston. There will also be direct bus connections to the Bradley Airport Flyer and to CTfastrak.  With a heightened level of direct and connecting service linking the region, the hope is that towns along the future Hartford Line will become magnets for growth – ideal places to live and to relocate businesses that depend on regional markets and travel.

All of which dovetails perfectly with the “selling points” routinely used to promote the Corridor:

• Academic Powerhouse – One of the country’s highest academic concentrations and largest capacities for research, with 41 colleges and universities and 215,000 students
• Exceptional Achievement – Consistently among the nation’s top 10 in percentage of the population with advanced degrees, science-engineering doctorates and new patents registered
• Big, Concentrated Market – The nation’s 20th largest metro region, with over 2.77 million people, is comparable to Denver and St. Louis, but with twice their population density, which means ready access to labor and consumers
• Large Workforce – A labor force of 1.34 million, 50% larger than the Charlotte metro area
• Business Hub – 64,000 businesses – 60 percent more than the Austin metro

"Providing frequent, reliable, commuter rail service connecting New Haven-Hartford-Springfield, the three major cities that anchor the Knowledge Corridor and its over 2.7 million people, will be nothing short of a game changer enabling the cross border region’s to reach its potential as an economic powerhouse within New England while simultaneously linking it to the white hot economies found in the Boston and New York City mega regions," Brennan added.

The CTrail Hartford Line rail service will operate at speeds up to 110 mph, cutting travel time between Springfield and New Haven to as little as 81 minutes. Travelers at New Haven, Wallingford, Meriden, Berlin, Hartford, Windsor, Windsor Locks and Springfield will be able to board trains approximately every 30 minutes during the peak morning and evening rush hour and hourly during the rest of day, with direct or connecting service to New York City and multiple frequencies to Boston or Vermont (via Springfield).  New train stations also are in various stages of development in North Haven, Newington, West Hartford and Enfield.

Also, very much a part of the strengthening transportation options with the potential to spur economic development is Bradley International Airport, which recently has added international flights on Aer Lingus (last year) and Norwegian Air (last month) and a direct-to-San Francisco route via United Airlines.

Connecticut Airport Authority Executive Director Kevin A. Dillon said the aim is to “build on Bradley’s strengths and continue our focus to deliver more convenience and connectivity for our region.  Flying to Europe from Bradley has never been easier and more affordable.”

The Connecticut Department of Transportation (CTDOT) conducted a bidding process and cost-benefit analysis for the Hartford Line program and selected TransitAmerica Services and Alternate Concepts, which are forming a joint venture solely for the purpose of serving the Hartford Line. This marks the first time that CTDOT has been able to select and contract with an experienced service provider for a major transportation program, a more cost-efficient alternative to the agency creating a separate internal unit and hiring employees to manage the Hartford Line, according to state officials.

Consumer Protection, Or Not - Malloy Veto Draws Industry Praise

The Northeastern Retail Lumber Association (NRLA) and Lumber Dealers Association of Connecticut (LDAC) are applauding Governor Dannel Malloy’s decision to veto Senate Bill 821, which would have affected consumer warranties for windows, roofing, and siding. The legislation was strongly opposed by LDAC since its introduction in February. Despite that opposition, the bill was passed unanimously on the consent calendar by the Senate, after a revising amendment was approved, on May 17.  The House passed it 80-70, as amended, on the last day of the regular session, June 7.  An earlier version was passed unanimously by both the General Law committee and the Appropriations Committee.

In a veto message on the bill, Malloy explained “This bill, while intended to add additional layers of consumer protections to the warranty process, would instead harm consumers due to its detrimental impact to the marketplace.”  The Governor described the bill as “simply unworkable,” adding that “the detrimental impact of this bill would be very real to Connecticut consumers: businesses could decide to not offer their products in our state, or to tailor their warranties in Connecticut by adding in extra fees…”

The association recruited other organizations to help fight aggressively against the bill – unsuccessfully - in the final days of the legislative session.  The full court press at the Governor’s door then began.  LDAC and industry partners “quickly mobilized to urge Gov. Malloy to veto this legislation,” the organization pointed out in a press release. “After a meeting with the Governor’s staff and more than 40 industry letters, the Governor decided to veto S.B. 821.”

Described as “a huge victory for the industry,” the legislation, according to opposing organizations,  would have been “overly burdensome for manufacturers of windows, roofing, and siding – leading to potentially devastating outcomes for independent building material dealers across Connecticut.”

The Window & Door Manufacturers Association (WDMA) is among the organizations praising the veto.

"WDMA commends Gov. Malloy for vetoing this unprecedented and problematically-vague legislation," said Michael O'Brien, WDMA President and CEO.  "The bill would have changed existing law without any justification or public hearing, harmed manufacturers, dealers and consumers and created legal uncertainty and needless litigation."

A sweeping mandate for these manufacturers to cover all labor and replacement costs associated with warranty claims would have led to higher prices, they explain, along with weakened consumer protections, and fewer products available to consumers. The legislation would have also required manufacturers to address warranty claims within 30 days’ receipt of a claim – which industry officials say would have been “an unreasonable timeframe” to comply with.

The Northeastern Retail Lumber Association (NRLA) was established in New York in 1894 and today is an 1,150 member association representing independent lumber and building material suppliers and associated businesses in New York, New Jersey, and the six New England states. The Window & Door Manufacturers Association is the premier trade association representing the leading manufacturers of residential and commercial window, door and skylight products for the domestic and export markets.

A year ago, the state legislature voted to override three vetos by Malloy, the only three since he was elected Governor. Three more bills passed by the legislature have been vetoed thus far this year.

CBIA to Women: Drive a Truck

The Connecticut Business and Industry Association’s Education and Workforce Partnership is turning its attention to the state’s increasing demand for drivers of trucks, buses, and heavy equipment – a demand which is expected to grow to 30,000 by 2024. And the focus of their attention is women, urging them to consider careers in transportation. In an effort to showcase well-paying jobs in the industry, the partnership teamed up with Workforce Solutions Collaborative of Metro Hartford to create a video that highlights this growing industry.

Ellen Underwood, who now drives for the state Department of Transportation’s bridge crew, explains in the video that driving was a “natural pathway” because she enjoyed being outdoors, and driving.  She’s been at it for 20 years, with a number of different employers, including a local municipality.  She says state polices “make it easier for a woman to be treated as an equal,” adding that “if you’re willing to work hard and learn new things, you can do anything.”

A contract driver for CNS Transportation, Karen Roderick, says her career began “as a challenge to see if I could do it.”  She recalls being “the only female” in truck-driving school.  She has since earned Connecticut Driver of the Year, the only woman to do so.

CBIA notes some key facts about women in transportation:

• Women in historically male-dominated jobs earn an average of 25 percent more than women in historically female-dominated jobs.
• Women consistently do better with their paperwork, take better care of their trucks, and are often better with their customers.
• Women, especially when compared with young men, are generally safer drivers.
• There’s a huge shortage of heavy and tractor trailer drivers yet only 6 percent of truck drivers are female.

Daiana Soto, featured in the video, drives a big rig, and launched her career just four months ago.  “My truck is my office,” she explains. The limited number of women in the field is quite evident, and Soto says it is a challenge she’s ready to take on. “You can do the same job (as men)… and maybe better.”

Ezzie Williams, a professional motorcoach driver for Town & Country in New Britain, began as a school bus driver. She says young people should consider the field, so that they can “get a career and make money.”

Two versions of the video are available—one a full-length video with interviews with six women in six different transportation careers and the other is a one-minute highlight reel.  The project was supported by the Walmart Foundation. The Transportation partnership (Transportation, Logistics, and Distribution Partnership – TDL), convened by the CBIA Education & Workforce Partnership, aims to strengthens the transportation workforce pipeline, support on-the-job training, and improve retention rates among new hires.

https://youtu.be/pNRpQ16ZRNU

Florida vs. Connecticut - Mixed Bag of Growth and Opportunity

Florida Governor Rick Scott spent much of Monday in Connecticut, urging businesses here to relocate to the Sunshine State. There’s no question that Florida has attracted some Connecticut residents and created jobs in recent years, but recent published reports highlight more of a mixed bag that appearances may suggest at first glance.

Chris McCarty, the director of the University of Florida's Bureau of Economic and Business Research, said in a PolitiFact.com article earlier this year that the state has yet to regain the construction jobs that were lost in the recession. McCarty said these jobs are important to note because they are high-paying. Prior to the recession (2006), there were about 668,700 construction jobs and in November 2016 there were only 461,800.

Scott, elected at the start of this decade, pledged to create 700,000 jobs (on top of what the state would have created anyway) in seven years, according to PolitiFact, has “more work to do before Scott hits the jobs total that he promised,” McCarty noted.

PolitiFact Florida is a partnership of the Tampa Bay Times and the Miami Herald, “to help you find the truth in politics.”

Scott’s office announced last month that Florida tied Georgia for the fastest private-sector job growth rate of the 10 largest states in the nation during the past year, when Florida added 233,800 new private-sector jobs, the second-most in the nation.

Scott is a former resident of Stamford.  He has made similar trips to California, Illinois, Kentucky, Maryland and Minnesota, according to the Miami Herald.  The paper reported that Scott brought chief of staff Jackie Schutz Zeckman to Connecticut, but none of his economic development experts joined him. Scott has previously urged GE and Yale University to relocate to Florida.

The Connecticut foray comes a week after he gained legislative approval of a “growth fund” for infrastructure and job training meant to create new jobs, the Orlando Sentinel reported.

The new fund cannot be used for direct payments to businesses, according to published reports, but can be tapped to build roads or other infrastructure and improve job skills to benefit citizens at large, rather than just one company. Local governments and state colleges can apply for money for specific projects from the fund.  It was the result of a compromise with legislative leaders in Florida, who had been critical of what was described as “corporate welfare.”

Job-poaching trips to other states had been routine for Scott, the Sentinel reported, but were cut back last year when lawmakers eliminated funding for direct incentive payments to businesses. Florida legislators have set aside $1.6 billion for business incentives over the past seven years but have become increasingly wary of their effectiveness in light of high-profile projects such as the Orlando biotech firm Sanford Burnham, which is leaving the state after failing to meet its job creation goal, set more than a decade ago. The company had been approved for $350 million in incentives.

A recent United Way report in Florida shows that nearly 70 percent of jobs in the state pay less than $20 an hour, the state’s public radio station, WFSU, recently reported. The most common job in Florida is a retail sales position paying an average of $10 an hour. Next are food preparers and cashiers, according to the report.  An economic analysis compiled for the Miami Herald/Tampa Bay Times Tallahassee Bureau by Florida International University Metropolitan Center last fall showed that although many jobs have returned since the Great Recession, the new jobs are paying workers significantly less than the jobs they replaced, and the rebound has been dramatically uneven across the state.

Last month, Scott announced the unemployment rate in Florida stood at 4.5 percent in April, the lowest it had been since September 2017 and just above the national unemployment rate of 4.4 percent. Connecticut’s unemployment rate rose from 4.8 to 4.9 percent in April as the state lost 1,500 non-farm jobs, according to the state Department of Labor.  The jobless rate was 0.5 percentage points lower than a one year ago and the state added 5,500 jobs during the previous 12 months, with private sector employment increasing by 9,900 positions during the previous year.

Earlier this month, Scott signed a state worker pay raise into law, marking the first time in over a decade that Florida state employees will receive an across-the-board raise. All employees who earn $40,000 a year or less will get a $1,400 raise, and employees who earn more than $40,000 a year will get a $1,000 raise. Most state law enforcement officers will get a 5 percent raise and most correctional officers will get a $2,500 raise, and judges, elected state attorneys and public defenders will get 10 percent pay hikes, the Tampa Bay Times reported.  In addition, state group health insurance will begin moving toward a four tier system, and most public sector employees will default into a 401-k style retirement program.

Connecticut and TESLA: The Battle Lines Expand

It was a one-two punch from Connecticut aimed at Tesla, in the marketplace and in the boardroom. On Tuesday, at the company’s annual shareholder meeting at the Computer History Museum in Mountain view, CA, a shareholder resolution advocated by the Office of State Treasurer Denise Nappier was on the agenda.

And on Wednesday, the Connecticut legislature concluded the 2017 regular session, leaving behind a proposal that would have enabled Tesla to sell cars directly to Connecticut consumers, as is done in many other states.  It was the third consecutive year that the plan did not receive approval from legislators, in the face of strong opposition from the Connecticut Automotive Trades Association.

The Tesla proposal was approved by two legislative committees - Transportation and Finance, Revenue, and Bonding - but was never voted on by House or Senate members in their respective chambers.  The bill pitted the state’s longstanding car dealers against the new model that Tesla prefers.

The Connecticut Retirement Plans and Trust Funds shareholder resolution called for the declassification of Tesla’s board and for the annual election of all of Tesla’s directors.  The $32 billion Connecticut Retirement Plans and Trust Funds (“CRPTF”), of which Treasurer Nappier is principal fiduciary, owned 32,837 shares of Tesla, Inc. common stock with a market value of $11.6 million as of June 6, 2017.

Tesla’s board currently is classified, which means that each year only a portion of the directors are elected by shareholders.  This year shareholders had the opportunity to vote on three of Tesla’s seven directors. The company’s board recommended that “our stockholders vote against this proposal.”

“Independent shareholders gave Tesla a clear message: it's time to sharpen the company's governance profile and strengthen board member accountability to shareholders, whose interests they are elected to represent,” Nappier said after the shareholder vote.

Connecticut’s resolution, the first ever filed to declassify Tesla’s board, received an estimated 47 percent of the votes not controlled by directors and officers, indicating strong support for the annual election of directors, according to the Treasurer’s Office.  Representing the Connecticut Treasurer’s Office at the annual meeting, and presenting the proposal, was Aeisha Mastagni, a Portfolio Manager in the Corporate Governance Unit of the California State Teachers’ Retirement System. Overall, according to a U.S. Securities & Exchange Commission filing, 74.7 million shareholders voted against the proposal, with 32.7 million voting in favor.

“And now that Tesla has joined the ranks of the Fortune 500, we encourage the company to take particular heed of the recent vote,” Nappier added, “given that most of its largest U.S. company peers have already embraced annual election of directors.  It should reconsider its opposition to this fundamental provision of good governance.”

“At the end of the day, Tesla has and will continue to develop and deploy new technologies and products that will be an important part of the global economy’s clean energy future.   The company’s corporate structure should likewise evolve toward a more accountable governance framework that will fortify its bottom line and sustainable value,” said Nappier, a veteran shareholder activist.

In the aftermath of the Connecticut legislative session, a spokesman for Tesla told CT NewsJunkie that the company wasn’t quite ready to give up on the state. Tesla is allowed to sell direct to consumers in most jurisdictions in the U.S. and around the world. They are prohibited from selling directly in Connecticut, Michigan, Texas, and West Virginia, according to the company.

“The residents of Connecticut overwhelmingly want Tesla to be able to freely operate in the state, and despite inaction during this session,” a company spokesman said.  There are approximately 1,300 Tesla vehicles registered in Connecticut.

Innovative Start-Up Companies Seek State Funds to Propel Growth

CTNext will bring together start-up businesses seeking the financing to move forward, providing the opportunity for them  to pitch at the next Entrepreneur Innovation Awards (EIA) event scheduled for Thursday, June 15 at the LOFT at Chelsea Piers in Stamford. Connecticut's "innovation ecosystem" will be highlighted as the nine companies, from all across the state, will be competing for $10,000 grants.  The competitors include:

• Deo2go (Fairfield): Creating a topical delivery device that can be filled with a variety of products including, but not limited to deodorant, lip balms, and sunscreen
• Egghead (Danbury): Developing a new way to package and sell ice cream that brings new revenue to a mature market
• FallCall Solutions (Trumbull): Creating a tele-monitoring system for the Apple watch and other mobile systems for elders and caregivers
• Fjord Weather Systems (Wilton): Developing a way to turn every boat on the water into a weather-monitoring system
• LiquidSphere (New Haven): Creating an interactive app that will connect people who struggle with stress, anxiety, depression and addiction with therapists via text and video sessions
• Lucca Ventures (Southington): Developing a Bluetooth-enabled microphone attachment to a full-face oxygen mask, letting patients communicate clearly while wearing it
• Obvia (West Hartford): Manufacturing dual-winglet blades and semi-shroud power upgrade for Sunforce Wind Turbines that will improve efficiency and scalability for the turbines
• Sweet Equations (East Hartford): Making custom candy cakes, edible cupcake displays and other desserts through the development of an on-demand decorating device
• Trekeffect (Lyme): Developing a system to let individual travel planners buy and sell their itineraries.

To determine the finalist pool, each company’s application was vetted by a separate and independent team of reviewers who deemed their products, services and/or business ideas worthy of consideration for an EIA. Each finalist will have an opportunity to compete for a $10,000 grant as well as the judges’ and crowd favorite awards, each in the amount of $2,000 each.

The judges who will hear the company pitches and determine the winners include:

• Elena Cahill: Senior Lecturer, University of Bridgeport, Entrepreneurship Department
• Jim Kern: Co-founder, COMRADITY
• Greg Kivenzor: Associate Professor of Marketing, Director of Experiential Learning Collaborative, UCONN- Stamford
• Mark Lasoff: Founder, LearnToProgram
• Mike Roer: President, The Entrepreneurship Foundation

Throughout the year, CTNext hosts the EIA, a Shark Tank–style pitch event where Connecticut-based startups and entrepreneurs compete for grants that can be applied toward a specific project that will help accelerate growth.

CT Next support the success of companies and entrepreneurs by providing guidance, resources, and networks to accelerate their growth. CT Next is a wholly-owned subsidiary of Connecticut Innovations, described as "a network of passionate people who offer services to busy entrepreneurs." Launched in 2012, there are now more than 1,500 members. Since its inception in 2014, CTNext has held 11 total events in cities and towns all over Connecticut, awarding $544,000 to 52 unique companies.

https://youtu.be/Au4ULyo5L1g

More Daughters Mean More Venture Capital Investment, More Success, Study Shows

As the growing number of Connecticut start-up firms seek to attract venture capital funds to propel their growth, a newly published study may suggest some surprising influences on the investment decisions – and ultimately the success of venture capital investments. A National Bureau of Economic Research (NBER) working paper by Paul A. Gompers and Sophie Q. Wang from Harvard University says that gender diversity may boost performance of venture capital firms.  But it is not the gender diversity of the start-up firms leaders, or the gender diversity of the venture capitalists, who tend to predominantly be white males.

It is the gender diversity of the children of venture capitalists that appears to make the difference.

The paper, “And the Children Shall Lead: Gender Diversity and Performance in Venture Capital,” is based on a study of a dataset of gender of venture capital partners’ children. It finds that partners with more daughters than sons were more likely to hire female partners. But that’s not all.

The study also finds that having more girl children had a positive effect on deal and fund performance of these partners.  The authors indicate that the effects concentrate overwhelmingly on the daughters of senior partners than junior partners.

“Taken together, our findings have profound implications on how the capital markets could function better with improved diversity,” they say in the paper’s abstract.

Venture capital firms are typically deep-pocketed, small companies that bet on startup success by investing millions in exchange for an ownership interest and hopes of high returns.  Published reports indicate that according to the study, firms that increased their gender diversity by hiring more women saw their deal success rate increase by nearly 3 percent. Their profitability, as measured by internal rates of return, rose by more than 3 percent.

Venture capital in Connecticut is available from a range of private and quasi-public sources, including Connecticut Innovations.

The 62-page paper was posted last week; Paul Gompers is Professor of Business Administration and Director of research for the Harvard Business School Finance Unit.  Sophie Q. Wang is a PhD student in the Department of Economics at Harvard University. They based their results on some 12,000 venture-capital investments made between 1990 and 2016, primarily by U.S.-based firms.  They also studied personal information obtained from some 1,400 investing partners.

The NBER is a private, non-profit, non-partisan organization dedicated to conducting economic research and to disseminating research findings among academics, public policy makers, and business professionals.