Connecticut House Bill HB05477

Connecticut 2019 Regular Session

• Introduced: 1/17/19
• Refer: 1/17/19

Caption

An Act Exempting Certain Facilities Owned By Nonprofit Organizations From The Natural Gas Demand Use Charge.

Impact

Under this proposed legislation, nonprofit organizations would benefit from reduced operating costs associated with natural gas usage, particularly for large rooms that are not heavily used throughout the year. For example, facilities that utilize the large room for only one day per week, not exceeding seventy days per calendar year, or that utilize it for a maximum of two hundred hours in a calendar year, qualify for this exemption. This aligns with the state's ongoing support for nonprofit organizations and their role in community service and welfare.

Summary

House Bill 05477 proposes an exemption for certain facilities owned by nonprofit organizations from the natural gas demand use charge. This charge is typically applied based on the demand of natural gas usage, and the bill aims to alleviate some financial pressure on nonprofit entities that operate facilities utilizing natural gas for heating purposes. Specifically, the bill exempts those facilities that contain at least one large room, which must constitute at least twenty-five percent of the total square footage of the facility.

Contention

While the bill appears to provide necessary support to nonprofit organizations, it may face scrutiny regarding the definition of qualifying facilities and the broader implications for natural gas revenue. Some stakeholders might argue that exemptions could lead to a loss of revenue for the state, which could impact funding for public services. Additionally, there could be debates about equity; specifically, how this exemption could affect for-profit entities that utilize similar facilities but do not receive the same consideration under the law.