Substitute House Bill No. 6412 Public Act No. 21-181 AN ACT CONCERNING A LOW -CARBON FUEL BLEND OF HEATING OIL. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 16a-21b of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2021): (a) For purposes of this section: (1) "Heating oil" means heating fuel that meets the American Society of Testing Materials or "ASTM" standard D396 or the "ASTM" standard D6751; (2) ["Biodiesel blend" means a fuel comprised of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats that meets the most recent version of ASTM International designation D6751;] "Low-carbon fuel blend" means a fuel meeting the standards for advanced biofuels under the federal Renewable Fuel Standard Program, requiring a fifty per cent reduction in lifecycle greenhouse gas emissions, including, but not limited to, qualifying biodiesel meeting the most recent version of ASTM International designation D6751; and (3) "Sold" means the wholesale sale made to a retailer or the retail sale made to an end-user consumer. [;] Substitute House Bill No. 6412 Public Act No. 21-181 2 of 6 [(4) "Commissioner" means the Commissioner of Consumer Protection, or the commissioner's designee; and (5) "Sufficient in-state production of biodiesel" means fifty per cent of the annual mandated volume of biodiesel, as determined by the most recent data available from the Energy Information Administration of the United States Department of Energy, is available from in-state producers based upon the combined nameplate capacity of such producers.] (b) [(1)] Subject to the provisions of [subdivision (2) of this subsection and subsections (d) and (f)] subsection (d) of this section, [(A)] (1) not later than July 1, [2011] 2022, all heating oil sold in this state shall be a [biodiesel blend] low-carbon fuel blend containing not less than [two] five per cent biodiesel, [(B)] (2) not later than July 1, [2012] 2025, all heating oil sold in this state shall be a [biodiesel blend] low-carbon fuel blend containing not less than [five] ten per cent biodiesel, [(C)] (3) not later than July 1, [2015] 2030, all heating oil sold in this state shall be a [biodiesel blend] low-carbon fuel blend containing not less than [ten] fifteen per cent biodiesel, [(D)] (4) not later than July 1, [2017] 2034, all heating oil sold in this state shall be a [biodiesel blend] low-carbon fuel blend containing not less than [fifteen] twenty per cent biodiesel, and [(E)] (5) not later than July 1, [2020] 2035, all heating oil sold in this state shall be a [biodiesel blend] low-carbon fuel blend containing not less than [twenty] fifty per cent biodiesel. [(2) The provisions of subparagraphs (A) to (E), inclusive, of subdivision (1) of this subsection shall not take effect until the states of New York, Massachusetts and Rhode Island each have adopted requirements that are substantially similar to the provisions of subparagraphs (A) to (E), inclusive, of subdivision (1) of this subsection.] (c) Unless the [commissioner issues a waiver] Commissioner of Substitute House Bill No. 6412 Public Act No. 21-181 3 of 6 Energy and Environmental Protection waives the requirements of subsection (b) of this section pursuant to subsection [(f)] (d) of this section, any [biodiesel] low-carbon fuel blended with heating oil shall be produced in accordance with industry-accepted quality control standards. A certificate of analysis that verifies conformity with the critical specifications of designation D6751 of ASTM International, as defined by the National Biodiesel Accreditation Program, or other applicable ASTM specification for low-carbon fuel blends, shall be provided by the marketers or producers of any such [biodiesel] low- carbon fuel prior to the blending of such [biodiesel] low-carbon fuel with heating oil. [The Department of Consumer Protection, within available appropriations, shall verify that biodiesel offered for sale in this state conforms to the critical specifications of designation D6751 of ASTM International, as defined by the National Biodiesel Accreditation Program, and to the biodiesel fuel quality compliance protocol currently accepted by the Department of Consumer Protection.] (d) The Commissioner of Energy and Environmental Protection may temporarily waive the requirements of subsection (b) of this section if the commissioner determines that, at any time, such requirements (1) are not feasible due to a lack of adequate supply of biodiesel, or (2) would result in a financial hardship to consumers. (e) Not later than July 1, 2022, the Commissioner of Energy and Environmental Protection may adopt regulations, in accordance with chapter 54, concerning the requirement of retailers of heating oil to disclose the percentage of low-carbon fuel blend contained in the home heating oil delivered to consumers or an approximate range of such percentage. [(d) On or before April 1, 2011, and on or before April 1, 2012, the Commissioner of Consumer Protection, in consultation with the Distillate Advisory Board established pursuant to subsection (e) of this section, shall, within available appropriations, determine whether there Substitute House Bill No. 6412 Public Act No. 21-181 4 of 6 is sufficient in-state production of biodiesel, to comply with the provisions of subparagraphs (A) and (B) of subdivision (1) of subsection (b) of this section, respectively. If the commissioner determines that such production is not sufficient, the commissioner, in consultation with the board, may delay the implemen tation date contained in said subparagraph until July 1, 2012, or earlier, and July 1, 2013, or earlier, respectively, provided the commissioner: (1) Not later than three business days after such determination, posts a notice specifying the duration of such delay on the department's Internet web site, and (2) not later than thirty days after such posting, reports, in accordance with the provisions of section 11-4a, the reasons for such delay to the joint standing committees of the General Assembly having cognizance of matters relating to the environment, general law and energy and technology. (e) (1) There is established a Distillate Advisory Board. Such board shall be located in the Department of Consumer Protection and shall consist of the following members appointed by the Commissioner of Consumer Protection: (A) Two representatives of the producers or suppliers of biodiesel in this state, (B) two representatives of the retail heating oil industry in this state, and (C) two representatives of the wholesale distillate supply industry in this state. Each member of the board shall serve at the pleasure of the commissioner and without compensation. No funds shall be allocated or made available to the board. (2) The board shall advise the commissioner on industry and market progress in meeting and enabling compliance with the requirements of subsections (b) and (c) of this section. (f) (1) The Commissioner of Consumer Protection, upon the receipt of a petition submitted by the Distillate Advisory Board in compliance with the provisions of subdivision (2) of this subsection, shall temporarily waive the requirements of subsections (b) and (c) of this Substitute House Bill No. 6412 Public Act No. 21-181 5 of 6 section when: (A) The United States Department of Energy authorizes a release from the Northeast Heating Oil Reserve, (B) there is an inadequate supply of low-sulfur distillate products, or (C) there is an inadequate supply of biodiesel blending stocks or an operational problem that affects the supply of biodiesel blending stocks. Any such waiver shall be for a period of not less than thirty days and not more than forty-five days, provided such waiver may be renewed after the expiration of such period of time. (2) Any petition from the Distillate Advisory Board that requests a waiver of any requirement of subsection (b) or (c) of this section shall include, at a minimum: (A) A statement of the immediate threat to the health and safety of the citizens of this state posed by the inadequate supply of low-sulfur distillate products, biodiesel blending stocks or operational problems that affect the supply of biodiesel blending stocks, as applicable, (B) the cause and nature of such inadequate supply or operational problem, as applicable, (C) the expected duration of such inadequate supply or operational problem, and (D) as applicable, a description of any alternative distillate supply that temporarily is needed to take the place of the applicable distillate supply described in subsection (b) or (c) of this section. Not later than three business days after receipt of any such petition, the commissioner shall issue a waiver of the requirements of subsection (b) or (c) of this section, as applicable. (g) Not later than February 1, 2012, and each year thereafter, the Commissioner of Consumer Protection, in consultation with the Distillate Advisory Board, shall submit a report, in accordance with the provisions of section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to energy and the environment on the progress in meeting the requirements of this section and on any effect that such requirements may have on the price or supply of heating oil in this state.] Sec. 2. Section 16a-3d of the general statutes is amended by adding Substitute House Bill No. 6412 Public Act No. 21-181 6 of 6 subsection (e) as follows (Effective July 1, 2021): (NEW) (e) For the Comprehensive Energy Strategy next approved after October 1, 2021, and every Comprehensive Energy Strategy prepared thereafter, the Commissioner of Energy and Environmental Protection shall consider (1) the reductions in greenhouse gas emissions resulting from low-carbon fuel blends used in home heating oil on a life- cycle basis, (2) possible contributions to the state's greenhouse gas emissions mandated levels, pursuant to section 22a-200a, in connection with the reduction of greenhouse gas emissions on a life-cycle basis, (3) the ability of a thermal portfolio standard to further reductions in greenhouse gas emissions on a life-cycle basis, and (4) the relative value of the reductions in greenhouse gas emissions on a life-cycle basis achieved by biodiesel and other low-carbon fuel blends used currently in the state compared with the value of future projected greenhouse gas emissions reductions achieved by the retail heating oil industry on a life- cycle basis five, ten, and twenty years into the future using the Department of Energy and Environmental Protections' contemporaneous projection of renewable energy utilized.