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General Assembly Raised Bill No. 5456
February Session, 2022
LCO No. 3036
Referred to Committee on GOVERNMENT
ADMINISTRATION AND ELECTIONS
Introduced by:
(GAE)
AN ACT AUTHORIZING THE PURCHASE OF THE CAPITOL DISTRICT
ENERGY CENTER COGENERATION ASSOCIATES ENERGY
PRODUCTION PLANT.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 4b-17 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective from passage): 2
(a) (1) The Commissioner of Administrative Services, on behalf of the 3
state, may purchase from TEN Companies, Inc., in accordance with the 4
Asset Purchase Agreement dated November 4, 2008, by and [among] 5
between the state, acting by and through the Commissioner of 6
Administrative Services, and TEN Companies, Inc., which Asset 7
Purchase Agreement is hereby ratified and approved, the district 8
heating and cooling system that provides heating and cooling service to 9
state facilities within the Capitol District and to other nonstate facilities, 10
as listed in the Asset Purchase Agreement dated November 4, 2008, and 11
which is known as the Capitol Area System, including all assets and 12
property necessary for the operation of said system, as described in the 13 Raised Bill No. 5456
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Asset Purchase Agreement dated November 4, 2008. The commissioner 14
may assume all vendor contracts, customer contracts, supplier 15
agreements [,] and third-party contracts with regard to said system. The 16
commissioner may undertake any obligation and enter into any 17
agreement to accomplish any transaction that is necessary to carry out 18
the provisions of this section or said Asset Purchase Agreement, 19
including the grant or acceptance of any release set forth in said Asset 20
Purchase Agreement. 21
(2) The Commissioner of Administrative Services, on behalf of the 22
state, may purchase from CDECCA Property Company, LLC, in 23
accordance with the Purchase and Sale Agreement dated ____, 2022, by 24
and between the state, acting by and through the Commissioner of 25
Administrative Services, and CDECCA Property Company, LLC, which 26
Purchase and Sale Agreement is hereby ratified and approved as 27
necessary for the operation of the Capitol Area System, the energy 28
production plant located at 490 Capitol Avenue in the city of Hartford, 29
including the related land, buildings, improvements, equipment and 30
fixtures, that produces and provides steam and heated and chilled water 31
to the Capitol Area System for heating and cooling service to state and 32
nonstate facilities, together with all assets and property described in the 33
Purchase and Sale Agreement dated ____, 2022. The commissioner may 34
assume all vendor contracts, customer contracts, supplier agreements 35
and third-party contracts with regard to said system. The commissioner 36
may undertake any obligation and enter into any agreement to 37
accomplish any transaction that is necessary to carry out the provisions 38
of this section or said Purchase and Sale Agreement. 39
(b) To the extent any provision in an agreement executed or assumed 40
by the [commissioner] Commissioner of Administrative Services 41
pursuant to subsection (a) of this section may be interpreted as waiving 42
the sovereign immunity of the state, including, without limitation, 43
indemnification provisions, such provision is effective and enforceable 44
against the state solely in accordance with its specific terms. Nothing in 45
this subsection shall be construed as a waiver of the sovereign immunity 46 Raised Bill No. 5456
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of the state in any other context. 47
(c) In order to operate the Capitol Area System, the [commissioner] 48
Commissioner of Administrative Services may: (1) [Furnish, from] 49
Construct or acquire energy production plants located in the city of 50
Hartford [,] for the purpose of furnishing heat or air conditioning, or 51
both, by means of steam, heated or chilled water or other medium; (2) 52
lay and maintain mains, pipes or other conduits; (3) erect such other 53
fixtures as are, or may be, necessary or convenient in and on the streets, 54
highways and public grounds of said city, for the purpose of carrying 55
steam, heated or chilled water or other medium from such plants to the 56
location to be served and returning the same; and (4) lease to one or 57
more corporations formed or specially chartered for the purpose of 58
furnishing heat or air conditioning, or both, one or more of such plants 59
or distribution systems owned by it and constructed or adapted for 60
either or both such purposes. 61
(d) The Commissioner of Administrative Services may perform all 62
obligations of the state relating to or arising from any agreement 63
between the state and TEN Companies, Inc., or the state and CDECCA 64
Property Company, LLC. 65
(e) The Commissioner of Administrative Services may (1) enter into 66
contracts with third parties for the procurement of energy products and 67
services or for the operation and maintenance of, and repairs and 68
improvements to, the Capitol Area System; (2) provide energy products 69
and services, as produced from said system or distributed by said 70
system, to any buildings owned by, or leased to, the state or any 71
instrumentality of the state; (3) sell energy products and services, as 72
produced from said system or distributed by said system, to the owners 73
or tenants of buildings not owned by the state; (4) occupy and use rights-74
of-way necessary to own, maintain, repair, improve and operate said 75
system in and on the streets, highways and public grounds of the city of 76
Hartford, on all property owned by the state and on property where 77
[the] said system is located, and to serve public and private end use 78
customers; (5) lay and maintain mains, pipes or other conduits, and erect 79 Raised Bill No. 5456
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such other fixtures as are, or may be, necessary or convenient in and on 80
the streets, highways and public grounds of said city, for the purpose of 81
carrying energy products to the location to be served and returning the 82
same; and (6) enter into contracts with third parties for the procurement 83
of other products and services, and provide or sell other products or 84
services to the state or to the owners or tenants of buildings not owned 85
by the state, that are being produced, provided or distributed through 86
said system, or any part thereof, prior to, or as of, April 23, 2009. 87
(f) The Commissioner of Administrative Services may: (1) Grant 88
easements with respect to land owned by the state in connection with 89
the operation of the Capitol Area System, subject to the approval of the 90
agency having supervision of the care and control of such land and the 91
State Properties Review Board; (2) acquire easements with respect to 92
land not owned by the state in connection with said system, subject to 93
the approval of the State Properties Review Board; (3) enter into leases 94
for any type of space or facility necessary to meet the needs of operating 95
said system, subject to the approval of the State Properties Review 96
Board; and (4) when the General Assembly is not in session, the 97
commissioner may, subject to the provisions of section 4b-23, purchase 98
or acquire for the state any land, or interest therein, if such action is 99
necessary for the operation of said system. The commissioner shall 100
provide notice of any easement granted pursuant to subdivision (1) of 101
this subsection to the chief elected official of the municipality and the 102
members of the General Assembly representing the municipality, in 103
which such land is located. 104
(g) The Commissioner of Administrative Services may establish and 105
administer an account to be known as the public works heating and 106
cooling energy revolving account, which shall be used for: (1) The 107
deposit of receipts from the sale of Capitol Area System energy products 108
and services to state agencies or to the owners or tenants of buildings 109
not owned by the state; and (2) for the payment of expenses related to 110
the operation, maintenance, repair and improvement of the Capitol 111
Area System and the energy production plant located at 490 Capitol 112 Raised Bill No. 5456
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Avenue in the city of Hartford that provides steam and heated and 113
chilled water for said system. The commissioner may expend funds 114
necessary for all reasonable direct expenses related to said account. 115
(h) For the provision of energy products and services, the 116
Commissioner of Administrative Services shall periodically invoice and 117
collect a pro rata share of the costs described in this subsection from each 118
state agency and owner or tenant of the buildings on the Capitol Area 119
System that are not owned by the state, to the extent not prohibited by 120
contracts in effect as of November 4, 2008. The [Commissioner of 121
Administrative Services] commissioner shall periodically submit 122
proposed rate setting methods and proposed rates to the Secretary of 123
the Office of Policy and Management for the secretary's approval. No 124
such method or rate shall be effective without the secretary's approval. 125
Rates shall be based on: (1) A pro rata share of all costs, including for 126
legal and consultant services, of acquiring [the] said system [, including 127
all costs for legal and consultant services] and the energy production 128
plant located at 490 Capitol Avenue in the city of Hartford, including 129
the related land, buildings, improvements, equipment and fixtures; (2) 130
a pro rata share of the cost of such energy products or services, whether 131
produced by the state or purchased from third parties; (3) a pro rata 132
share of [any and] all costs, including for services provided by vendors 133
and for equipment, of operating, maintaining and repairing said system 134
[, including the cost of services provided by vendors and the cost of 135
equipment] and said energy production plant, including the related 136
land, buildings, improvements, equipment and fixtures; (4) a pro rata 137
share of an amount determined to be necessary for long-term capital 138
improvements or replacement, which amount shall be specifically 139
identified in the public works heating and cooling energy revolving 140
account, and allocated for long-term capital improvements or 141
replacement; (5) a pro rata share of the Department of Administrative 142
Services' personnel costs related to the operation, maintenance, repair 143
and improvement of [the Capitol Area System] said system, provided 144
not more than one full-time employee of the department shall be 145
allocated to [the] said system; and (6) a pro rata share of the cost of other 146 Raised Bill No. 5456
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products or services incurred and permitted by this section. Not more 147
than forty-five days after receipt of a proposed rate setting method or a 148
proposed rate from the commissioner, the [Secretary of the Office of 149
Policy and Management] secretary shall approve or disapprove such 150
proposed method or rate. If the secretary fails to act on such proposed 151
method or rate within such period, the commissioner's proposal shall be 152
deemed to have been approved. On a quarterly basis, the 153
[Commissioner of Administrative Services] commissioner shall transmit 154
to the General Fund any portion of the costs that are attributable to the 155
provisions of subdivision (1) of this subsection. 156
(i) Nothing in this section shall be construed to limit the state's use of 157
the Capitol Area System [by the state to its use or functional capacity as 158
of the date of its purchase] or the energy production plant located at 490 159
Capitol Avenue in the city of Hartford to their respective uses or 160
functional capacities as of the date of their respective purchases by the 161
state. 162
(j) Except as expressly required by the provisions of this section, the 163
acquisition of the Capitol Area System by the Commissioner of 164
Administrative Services, and any transaction necessary for such 165
acquisition, shall not be subject to any other review, approval or 166
authorization by any other state agency, board, department or 167
instrumentality and shall not be subject to any otherwise applicable 168
sales or conveyance tax or taxes. 169
(k) Nothing in this section shall be construed to prohibit the state 170
from reselling the Capitol Area System to a third party if it is determined 171
that such resale is in the best interest of the state. 172
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage 4b-17
GAE Joint Favorable Raised Bill No. 5456
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