Connecticut 2021 Regular Session

Connecticut House Bill HB06412 Compare Versions

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Version 2 (New)

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	7	+	General Assembly Substitute Bill No. 6412
	8	+	January Session, 2021
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4		-	Substitute House Bill No. 6412
5		-
6		-	Public Act No. 21-181
7	12
8	13
9		-	AN ACT CONCERNING A LOW -CARBON FUEL ~~BLEND~~ OF
10		-	~~HEATING OIL~~.
	14	+	AN ACT CONCERNING A LOW-CARBON FUEL BLEN D OF HEATING
	15	+	OIL AND THE ESTABLISHMENT OF A BIOHEAT ADVISORY BOARD.
11	16		Be it enacted by the Senate and House of Representatives in General
12	17		Assembly convened:
13	18
14		-	Section 1. Section 16a-21b of the general statutes is repealed and the
15		-	following is substituted in lieu thereof (Effective July 1, 2021):
16		-	(a) For purposes of this section:
17		-	(1) "Heating oil" means heating fuel that meets the American Society
18		-	of Testing Materials or "ASTM" standard D396 or the "ASTM" standard
19		-	D6751;
20		-	(2) ["Biodiesel blend" means a fuel comprised of mono-alkyl esters of
21		-	long chain fatty acids derived from vegetable oils or animal fats that
22		-	meets the most recent version of ASTM International designation
23		-	D6751;] "Low-carbon fuel blend" means a fuel meeting the standards for
24		-	advanced biofuels under the federal Renewable Fuel Standard Program,
25		-	requiring a fifty per cent reduction in lifecycle greenhouse gas
26		-	emissions, including, but not limited to, qualifying biodiesel meeting
27		-	the most recent version of ASTM International designation D6751; ~~and~~
28		-	(3) "Sold" means the wholesale sale made to a retailer or the retail sale
29		-	made to an end-user consumer~~. [;]~~ Substitute ~~House~~ Bill No. 6412
	19	+	Section 1. Section 16a-21b of the general statutes is repealed and the 1
	20	+	following is substituted in lieu thereof (Effective July 1, 2021): 2
	21	+	(a) For purposes of this section: 3
	22	+	(1) "Heating oil" means heating fuel that meets the American Society 4
	23	+	of Testing Materials or "ASTM" standard D396 or the "ASTM" standard 5
	24	+	D6751; 6
	25	+	(2) ["Biodiesel blend" means a fuel comprised of mono-alkyl esters of 7
	26	+	long chain fatty acids derived from vegetable oils or animal fats that 8
	27	+	meets the most recent version of ASTM International designation 9
	28	+	D6751;] "Low-carbon fuel blend" means a fuel meeting the standards for 10
	29	+	advanced biofuels under the federal Renewable Fuel Standard Program, 11
	30	+	requiring a fifty per cent reduction in lifecycle greenhouse gas 12
	31	+	emissions, including, but not limited to, qualifying biodiesel meeting 13
	32	+	the most recent version of ASTM International designation D6751; 14
	33	+	(3) "Sold" means the wholesale sale made to a retailer or the retail sale 15
	34	+	made to an end-user consumer; and 16 Substitute Bill No. 6412
30	35
31		-	Public Act No. 21-181 2 of 6
32	36
33		-	[(4) "Commissioner" means the Commissioner of Consumer
34		-	Protection, or the commissioner's designee; and
35		-	(5) "Sufficient in-state production of biodiesel" means fifty per cent of
36		-	the annual mandated volume of biodiesel, as determined by the most
37		-	recent data available from the Energy Information Administration of the
38		-	United States Department of Energy, is available from in-state
39		-	producers based upon the combined nameplate capacity of such
40		-	producers.]
41		-	(b) [(1)] Subject to the provisions of [subdivision (2) of this subsection
42		-	and subsections (d) and (f)] subsection (d) of this section, [(A)] (1) not
43		-	later than July 1, [2011] 2022, all heating oil sold in this state shall be a
44		-	[biodiesel blend] low-carbon fuel blend containing not less than [two]
45		-	five per cent biodiesel, [(B)] (2) not later than July 1, [2012] 2025, all
46		-	heating oil sold in this state shall be a [biodiesel blend] low-carbon fuel
47		-	blend containing not less than [five] ten per cent biodiesel, [(C)] (3) not
48		-	later than July 1, [2015] 2030, all heating oil sold in this state shall be a
49		-	[biodiesel blend] low-carbon fuel blend containing not less than [ten]
50		-	fifteen per cent biodiesel, [(D)] (4) not later than July 1, [2017] 2034, all
51		-	heating oil sold in this state shall be a [biodiesel blend] low-carbon fuel
52		-	blend containing not less than [fifteen] twenty per cent biodiesel, and
53		-	[(E)] (5) not later than July 1, [2020] 2035, all heating oil sold in this state
54		-	shall be a [biodiesel blend] low-carbon fuel blend containing not less
55		-	than [twenty] fifty per cent biodiesel.
56		-	[(2) The provisions of subparagraphs (A) to (E), inclusive, of
57		-	subdivision (1) of this subsection shall not take effect until the states of
58		-	New York, Massachusetts and Rhode Island each have adopted
59		-	requirements that are substantially similar to the provisions of
60		-	subparagraphs (A) to (E), inclusive, of subdivision (1) of this
61		-	subsection.]
62		-	(c) Unless the [commissioner issues a waiver] Commissioner of Substitute House Bill No. 6412
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64		-	Public Act No. 21-181 3 of 6
	41	+	(4) "Commissioner" means the Commissioner of Consumer 17
	42	+	Protection, or the commissioner's designee. [; and] 18
	43	+	[(5) "Sufficient in-state production of biodiesel" means fifty per cent 19
	44	+	of the annual mandated volume of biodiesel, as determined by the most 20
	45	+	recent data available from the Energy Information Administration of the 21
	46	+	United States Department of Energy, is available from in-state 22
	47	+	producers based upon the combined nameplate capacity of such 23
	48	+	producers.] 24
	49	+	(b) [(1)] Subject to the provisions of [subdivision (2) of this subsection 25
	50	+	and subsections (d) and (f)] subsection (e) of this section, [(A)] (1) not 26
	51	+	later than July 1, [2011] 2022, all heating oil sold in this state shall be a 27
	52	+	[biodiesel blend] low-carbon fuel blend containing not less than [two] 28
	53	+	five per cent biodiesel, [(B)] (2) not later than July 1, [2012] 2025, all 29
	54	+	heating oil sold in this state shall be a [biodiesel blend] low-carbon fuel 30
	55	+	blend containing not less than [five] ten per cent biodiesel, [(C)] (3) not 31
	56	+	later than July 1, [2015] 2030, all heating oil sold in this state shall be a 32
	57	+	[biodiesel blend] low-carbon fuel blend containing not less than [ten] 33
	58	+	fifteen per cent biodiesel, [(D)] (4) not later than July 1, [2017] 2034, all 34
	59	+	heating oil sold in this state shall be a [biodiesel blend] low-carbon fuel 35
	60	+	blend containing not less than [fifteen] twenty per cent biodiesel, and 36
	61	+	[(E)] (5) not later than July 1, [2020] 2035, all heating oil sold in this state 37
	62	+	shall be a [biodiesel blend] low-carbon fuel blend containing not less 38
	63	+	than [twenty] fifty per cent biodiesel. 39
	64	+	[(2) The provisions of subparagraphs (A) to (E), inclusive, of 40
	65	+	subdivision (1) of this subsection shall not take effect until the states of 41
	66	+	New York, Massachusetts and Rhode Island each have adopted 42
	67	+	requirements that are substantially similar to the provisions of 43
	68	+	subparagraphs (A) to (E), inclusive, of subdivision (1) of this 44
	69	+	subsection.] 45
	70	+	(c) Unless the commissioner issues a waiver pursuant to subsection 46
	71	+	[(f)] (e) of this section, any [biodiesel] low-carbon fuel blended with 47
	72	+	heating oil shall be produced in accordance with industry-accepted 48 Substitute Bill No. 6412
65	73
66		-	Energy and Environmental Protection waives the requirements of
67		-	subsection (b) of this section pursuant to subsection [(f)] (d) of this
68		-	section, any [biodiesel] low-carbon fuel blended with heating oil shall
69		-	be produced in accordance with industry-accepted quality control
70		-	standards. A certificate of analysis that verifies conformity with the
71		-	critical specifications of designation D6751 of ASTM International, as
72		-	defined by the National Biodiesel Accreditation Program, or other
73		-	applicable ASTM specification for low-carbon fuel blends, shall be
74		-	provided by the marketers or producers of any such [biodiesel] low-
75		-	carbon fuel prior to the blending of such [biodiesel] low-carbon fuel
76		-	with heating oil. [The Department of Consumer Protection, within
77		-	available appropriations, shall verify that biodiesel offered for sale in
78		-	this state conforms to the critical specifications of designation D6751 of
79		-	ASTM International, as defined by the National Biodiesel Accreditation
80		-	Program, and to the biodiesel fuel quality compliance protocol currently
81		-	accepted by the Department of Consumer Protection.]
82		-	(d) The Commissioner of Energy and Environmental Protection may
83		-	temporarily waive the requirements of subsection (b) of this section if
84		-	the commissioner determines that, at any time, such requirements (1)
85		-	are not feasible due to a lack of adequate supply of biodiesel, or (2)
86		-	would result in a financial hardship to consumers.
87		-	(e) Not later than July 1, 2022, the Commissioner of Energy and
88		-	Environmental Protection may adopt regulations, in accordance with
89		-	chapter 54, concerning the requirement of retailers of heating oil to
90		-	disclose the percentage of low-carbon fuel blend contained in the home
91		-	heating oil delivered to consumers or an approximate range of such
92		-	percentage.
93		-	[(d) On or before April 1, 2011, and on or before April 1, 2012, the
94		-	Commissioner of Consumer Protection, in consultation with the
95		-	Distillate Advisory Board established pursuant to subsection (e) of this
96		-	section, shall, within available appropriations, determine whether there Substitute House Bill No. 6412
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98		-	Public Act No. 21-181 4 of 6
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100		-	is sufficient in-state production of biodiesel, to comply with the
101		-	provisions of subparagraphs (A) and (B) of subdivision (1) of subsection
102		-	(b) of this section, respectively. If the commissioner determines that such
103		-	production is not sufficient, the commissioner, in consultation with the
104		-	board, may delay the implemen tation date contained in said
105		-	subparagraph until July 1, 2012, or earlier, and July 1, 2013, or earlier,
106		-	respectively, provided the commissioner: (1) Not later than three
107		-	business days after such determination, posts a notice specifying the
108		-	duration of such delay on the department's Internet web site, and (2) not
109		-	later than thirty days after such posting, reports, in accordance with the
110		-	provisions of section 11-4a, the reasons for such delay to the joint
111		-	standing committees of the General Assembly having cognizance of
112		-	matters relating to the environment, general law and energy and
113		-	technology.
114		-	(e) (1) There is established a Distillate Advisory Board. Such board
115		-	shall be located in the Department of Consumer Protection and shall
116		-	consist of the following members appointed by the Commissioner of
117		-	Consumer Protection: (A) Two representatives of the producers or
118		-	suppliers of biodiesel in this state, (B) two representatives of the retail
119		-	heating oil industry in this state, and (C) two representatives of the
120		-	wholesale distillate supply industry in this state. Each member of the
121		-	board shall serve at the pleasure of the commissioner and without
122		-	compensation. No funds shall be allocated or made available to the
123		-	board.
124		-	(2) The board shall advise the commissioner on industry and market
125		-	progress in meeting and enabling compliance with the requirements of
126		-	subsections (b) and (c) of this section.
127		-	(f) (1) The Commissioner of Consumer Protection, upon the receipt of
128		-	a petition submitted by the Distillate Advisory Board in compliance
129		-	with the provisions of subdivision (2) of this subsection, shall
130		-	temporarily waive the requirements of subsections (b) and (c) of this Substitute House Bill No. 6412
	79	+	quality control standards. A certificate of analysis that verifies 49
	80	+	conformity with the critical specifications of designation D6751 of 50
	81	+	ASTM International, as defined by the National Biodiesel Accreditation 51
	82	+	Program, or other applicable ASTM specification for low-carbon fuel 52
	83	+	blends, shall be provided by the marketers or producers of any such 53
	84	+	[biodiesel] low-carbon fuel prior to the blending of such [biodiesel] low-54
	85	+	carbon fuel with heating oil. The Department of Consumer Protection, 55
	86	+	within available appropriations, shall verify that [biodiesel] low-carbon 56
	87	+	fuel offered for sale in this state conforms to the critical specifications of 57
	88	+	designation D6751 of ASTM International, as defined by the National 58
	89	+	Biodiesel Accreditation Program for biodiesel, or other applicable 59
	90	+	ASTM standards for low-carbon fuel blends, and to the [biodiesel] fuel 60
	91	+	quality compliance protocol currently accepted by the Department of 61
	92	+	Consumer Protection. 62
	93	+	[(d) On or before April 1, 2011, and on or before April 1, 2012, the 63
	94	+	Commissioner of Consumer Protection, in consultation with the 64
	95	+	Distillate Advisory Board established pursuant to subsection (e) of this 65
	96	+	section, shall, within available appropriations, determine whether there 66
	97	+	is sufficient in-state production of biodiesel, to comply with the 67
	98	+	provisions of subparagraphs (A) and (B) of subdivision (1) of subsection 68
	99	+	(b) of this section, respectively. If the commissioner determines that such 69
	100	+	production is not sufficient, the commissioner, in consultation with the 70
	101	+	board, may delay the implementation date contained in said 71
	102	+	subparagraph until July 1, 2012, or earlier, and July 1, 2013, or earlier, 72
	103	+	respectively, provided the commissioner: (1) Not later than three 73
	104	+	business days after such determination, posts a notice specifying the 74
	105	+	duration of such delay on the department's Internet web site, and (2) not 75
	106	+	later than thirty days after such posting, reports, in accordance with the 76
	107	+	provisions of section 11-4a, the reasons for such delay to the joint 77
	108	+	standing committees of the General Assembly having cognizance of 78
	109	+	matters relating to the environment, general law and energy and 79
	110	+	technology.] 80
	111	+	[(e)] (d) (1) There is established a [Distillate] Bioheat Advisory Board. 81 Substitute Bill No. 6412
131	112
132		-	Public Act No. 21-181 5 of 6
133	113
134		-	section when: (A) The United States Department of Energy authorizes a
135		-	release from the Northeast Heating Oil Reserve, (B) there is an
136		-	inadequate supply of low-sulfur distillate products, or (C) there is an
137		-	inadequate supply of biodiesel blending stocks or an operational
138		-	problem that affects the supply of biodiesel blending stocks. Any such
139		-	waiver shall be for a period of not less than thirty days and not more
140		-	than forty-five days, provided such waiver may be renewed after the
141		-	expiration of such period of time.
142		-	(2) Any petition from the Distillate Advisory Board that requests a
143		-	waiver of any requirement of subsection (b) or (c) of this section shall
144		-	include, at a minimum: (A) A statement of the immediate threat to the
145		-	health and safety of the citizens of this state posed by the inadequate
146		-	supply of low-sulfur distillate products, biodiesel blending stocks or
147		-	operational problems that affect the supply of biodiesel blending stocks,
148		-	as applicable, (B) the cause and nature of such inadequate supply or
149		-	operational problem, as applicable, (C) the expected duration of such
150		-	inadequate supply or operational problem, and (D) as applicable, a
151		-	description of any alternative distillate supply that temporarily is
152		-	needed to take the place of the applicable distillate supply described in
153		-	subsection (b) or (c) of this section. Not later than three business days
154		-	after receipt of any such petition, the commissioner shall issue a waiver
155		-	of the requirements of subsection (b) or (c) of this section, as applicable.
156		-	(g) Not later than February 1, 2012, and each year thereafter, the
157		-	Commissioner of Consumer Protection, in consultation with the
158		-	Distillate Advisory Board, shall submit a report, in accordance with the
159		-	provisions of section 11-4a, to the joint standing committees of the
160		-	General Assembly having cognizance of matters relating to energy and
161		-	the environment on the progress in meeting the requirements of this
162		-	section and on any effect that such requirements may have on the price
163		-	or supply of heating oil in this state.]
164		-	Sec. 2. Section 16a-3d of the general statutes is amended by adding Substitute House Bill No. 6412
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166		-	Public Act No. 21-181 6 of 6
	118	+	Such board shall be located in the Department of Consumer Protection 82
	119	+	and shall consist of the following members appointed by the 83
	120	+	Commissioner of Consumer Protection: (A) Two representatives of the 84
	121	+	producers or suppliers of biodiesel in this state, (B) two representatives 85
	122	+	of the retail heating oil industry in this state, and (C) two representatives 86
	123	+	of the wholesale distillate supply industry in this state. Each member of 87
	124	+	the board shall serve at the pleasure of the commissioner and without 88
	125	+	compensation. No funds shall be allocated or made available to the 89
	126	+	board. 90
	127	+	(2) The board shall advise the commissioner on industry and market 91
	128	+	[progress in meeting and enabling compliance with the requirements of 92
	129	+	subsections (b) and (c) of this section] capabilities concerning the 93
	130	+	blending of home heating oil and identify opportunities for, or barriers 94
	131	+	to, increasing the low-carbon fuel blend requirements of this section. 95
	132	+	[(f)] (e) (1) The Commissioner of Consumer Protection, upon the 96
	133	+	receipt of a petition submitted by the [Distillate] Bioheat Advisory 97
	134	+	Board in compliance with the provisions of subdivision (2) of this 98
	135	+	subsection, shall temporarily waive the requirements of subsections (b) 99
	136	+	and (c) of this section when: (A) The United States Department of 100
	137	+	Energy authorizes a release from the Northeast Heating Oil Reserve, (B) 101
	138	+	there is an inadequate supply of low-sulfur distillate products, [or] (C) 102
	139	+	there is an inadequate supply of [biodiesel] low-carbon fuel blending 103
	140	+	stocks or an operational problem that affects the supply of [biodiesel] 104
	141	+	low-carbon fuel blending stocks, or (D) the cost of low-carbon fuel 105
	142	+	blends, relative to traditional distillate fuels, is such that achieving the 106
	143	+	minimum low-carbon fuel blends required by this section materially 107
	144	+	increases, on an annual basis, the heating fuel cost for consumers. Any 108
	145	+	such waiver shall be for a period of not less than thirty days and not 109
	146	+	more than forty-five days, provided such waiver may be renewed after 110
	147	+	the expiration of such period of time. 111
	148	+	(2) Any petition from the [Distillate] Bioheat Advisory Board that 112
	149	+	requests a waiver of any requirement of subsection (b) or (c) of this 113
	150	+	section shall include, at a minimum: (A) A statement of the immediate 114 Substitute Bill No. 6412
167	151
168		-	subsection (e) as follows (Effective July 1, 2021):
169		-	(NEW) (e) For the Comprehensive Energy Strategy next approved
170		-	after October 1, 2021, and every Comprehensive Energy Strategy
171		-	prepared thereafter, the Commissioner of Energy and Environmental
172		-	Protection shall consider (1) the reductions in greenhouse gas emissions
173		-	resulting from low-carbon fuel blends used in home heating oil on a life-
174		-	cycle basis, (2) possible contributions to the state's greenhouse gas
175		-	emissions mandated levels, pursuant to section 22a-200a, in connection
176		-	with the reduction of greenhouse gas emissions on a life-cycle basis, (3)
177		-	the ability of a thermal portfolio standard to further reductions in
178		-	greenhouse gas emissions on a life-cycle basis, and (4) the relative value
179		-	of the reductions in greenhouse gas emissions on a life-cycle basis
180		-	achieved by biodiesel and other low-carbon fuel blends used currently
181		-	in the state compared with the value of future projected greenhouse gas
182		-	emissions reductions achieved by the retail heating oil industry on a life-
183		-	cycle basis five, ten, and twenty years into the future using the
184		-	Department of Energy and Environmental Protections'
185		-	contemporaneous projection of renewable energy utilized.
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	156	+
	157	+	threat to the health and safety of the citizens of this state posed by the 115
	158	+	inadequate supply of low-sulfur distillate products, [biodiesel] low-116
	159	+	carbon fuel blending stocks or operational problems that affect the 117
	160	+	supply of [biodiesel] low-carbon fuel blending stocks, as applicable, (B) 118
	161	+	the cause and nature of such inadequate supply or operational problem, 119
	162	+	as applicable, (C) the expected duration of such inadequate supply or 120
	163	+	operational problem, and (D) as applicable, a description of any 121
	164	+	alternative distillate supply that temporarily is needed to take the place 122
	165	+	of the applicable distillate supply described in subsection (b) or (c) of 123
	166	+	this section. Not later than three business days after receipt of any such 124
	167	+	petition, the commissioner shall issue a waiver of the requirements of 125
	168	+	subsection (b) or (c) of this section, as applicable. 126
	169	+	[(g)] (f) Not later than February 1, [2012] 2022, and each year 127
	170	+	thereafter, the Commissioner of Consumer Protection, in consultation 128
	171	+	with the [Distillate] Bioheat Advisory Board, shall submit a report, in 129
	172	+	accordance with the provisions of section 11-4a, to the joint standing 130
	173	+	committees of the General Assembly having cognizance of matters 131
	174	+	relating to energy and the environment on (1) the status and progress in 132
	175	+	meeting the requirements of this section, [and on] (2) any effect that such 133
	176	+	requirements may have on the price or supply of heating oil in this state, 134
	177	+	and (3) opportunities for, or barriers to, increasing the low-carbon fuel 135
	178	+	blend requirements of this section. 136
	179	+	(g) Not later than July 1, 2022, the Commissioner of Consumer 137
	180	+	Protection shall adopt regulations, in accordance with chapter 54, 138
	181	+	concerning the requirement of retailers of heating oil to disclose the 139
	182	+	percentage of low-carbon fuel blend contained in the home heating oil 140
	183	+	delivered to consumers or an approximate range of such percentage. 141
	184	+	Sec. 2. Section 16a-3d of the general statutes is amended by adding 142
	185	+	subsection (e) as follows (Effective July 1, 2021): 143
	186	+	(NEW) (e) For the Comprehensive Energy Strategy next approved 144
	187	+	after October 1, 2021, and every Comprehensive Energy Strategy 145
	188	+	prepared thereafter, the Commissioner of Energy and Environmental 146 Substitute Bill No. 6412
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	194	+
	195	+	Protection shall consider (1) the reductions in greenhouse gas emissions 147
	196	+	resulting from low-carbon fuel blends used in home heating oil on a life-148
	197	+	cycle basis, (2) possible contributions to the state's greenhouse gas 149
	198	+	emissions mandated levels, pursuant to section 22a-200a, in connection 150
	199	+	with the reduction of greenhouse gas emissions on a life-cycle basis, (3) 151
	200	+	the ability of a thermal portfolio standard to further reductions in 152
	201	+	greenhouse gas emissions on a life-cycle basis, and (4) the relative value 153
	202	+	of the reductions in greenhouse gas emissions on a life-cycle basis 154
	203	+	achieved by biodiesel and other low-carbon fuel blends used currently 155
	204	+	in the state compared with the value of future projected greenhouse gas 156
	205	+	emissions reductions achieved by the retail heating oil industry on a life-157
	206	+	cycle basis five, ten, and twenty years into the future using the 158
	207	+	Department of Energy and Environmental Protections' 159
	208	+	contemporaneous projection of renewable energy utilized. 160
	209	+	This act shall take effect as follows and shall amend the following
	210	+	sections:
	211	+
	212	+	Section 1 July 1, 2021 16a-21b
	213	+	Sec. 2 July 1, 2021 16a-3d
	214	+
	215	+	ET Joint Favorable Subst.
	216	+	APP Joint Favorable
186	217