LCO \\PRDFS1\SCOUSERS\KEHOET\WS\2019SB-00232-R02- SB.docx 1 of 2 General Assembly Substitute Bill No. 232 January Session, 2019 AN ACT CONCERNING TH E ALLOWABLE PERCENTA GE OF LEAKAGE FROM GAS PIP ELINES. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 16-34a of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective October 1, 2019): 2 (a) Not later than July 1, 2015, and annually thereafter, the Public 3 Utilities Regulatory Authority shall submit a report, in accordance 4 with the provisions of section 11-4a, to the joint standing committee of 5 the General Assembly having cognizance of matters relating to energy. 6 Such report shall include (1) a description of the reasons for each gas 7 company's percentage of lost and unaccounted for gas, (2) 8 recommendations for each gas company's gas leak reduction strategy, 9 (3) a description of each gas company's current gas leak monitoring 10 system program, and (4) the number of leaks and causes of such leaks 11 throughout the entire gas distribution system in the state and any 12 other information the authority determines to be relevant. 13 (b) The authority shall initiate a docket to investigate the lost and 14 unaccounted for gas of a gas company if the percentage of the leaked 15 gas component of the lost and unaccounted for gas of such gas 16 company in any calendar year exceeds a total of [three] one per cent. In 17 such docket, a gas company shall report (1) leak detection and 18 Substitute Bill No. 232 LCO {\\PRDFS1\SCOUSERS\KEHOET\WS\2019SB-00232- R02-SB.docx } 2 of 2 monitoring procedures, (2) emissions reduction strategies in addition 19 to leak repair, and (3) any additional requirements the authority 20 determines to be relevant. In such docket, the authority shall establish 21 a cost mechanism to comply with long-term emissions reductions 22 required by section 22a-200a and to incentivize a gas company to (A) 23 reduce lost and unaccounted for gas, including the number of leaks 24 throughout the entire gas distribution system in the state, (B) replace 25 aging infrastructure, and (C) comply with any additional requirements 26 the authority determines to be relevant. Such cost mechanism may be 27 incorporated in the purchased gas adjustment clause pursuant to 28 section 16-19b. 29 (c) No gas company may recover costs associated with the leaked 30 gas component of any lost and unaccounted for gas. 31 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2019 16-34a ENV Joint Favorable Subst.