Connecticut 2022 Regular Session

Connecticut House Bill HB05456 Compare Versions

Version 1 (Old)

Version 2 (New)

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	4	+	LCO No. 3036 1 of 7
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7	6		General Assembly Raised Bill No. 5456
8	7		February Session, 2022
9	8		LCO No. 3036
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11	10
12		-	Referred to Committee on GOVERNMENT
13		-	~~ADMINISTRATION~~ AND ELECTIONS
	11	+	Referred to Committee on GOVERNMENT ADMINISTRATION
	12	+	AND ELECTIONS
14	13
15	14
16	15		Introduced by:
17	16		(GAE)
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21	21		AN ACT AUTHORIZING THE PURCHASE OF THE CAPITOL DISTRICT
22	22		ENERGY CENTER COGENERATION ASSOCIATES ENERGY
23	23		PRODUCTION PLANT.
24	24		Be it enacted by the Senate and House of Representatives in General
25	25		Assembly convened:
26	26
27	27		Section 1. Section 4b-17 of the general statutes is repealed and the 1
28	28		following is substituted in lieu thereof (Effective from passage): 2
29	29		(a) (1) The Commissioner of Administrative Services, on behalf of the 3
30	30		state, may purchase from TEN Companies, Inc., in accordance with the 4
31	31		Asset Purchase Agreement dated November 4, 2008, by and [among] 5
32	32		between the state, acting by and through the Commissioner of 6
33	33		Administrative Services, and TEN Companies, Inc., which Asset 7
34	34		Purchase Agreement is hereby ratified and approved, the district 8
35	35		heating and cooling system that provides heating and cooling service to 9
36	36		state facilities within the Capitol District and to other nonstate facilities, 10
37	37		as listed in the Asset Purchase Agreement dated November 4, 2008, and 11
38	38		which is known as the Capitol Area System, including all assets and 12
39		-	property necessary for the operation of said system, as described in the 13 Raised Bill No. 5456
	39	+	property necessary for the operation of said system, as described in the 13
	40	+	Asset Purchase Agreement dated November 4, 2008. The commissioner 14
	41	+	LCO No. 3036 2 of 7
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46		-	Asset Purchase Agreement dated November 4, 2008. The commissioner 14
47	43		may assume all vendor contracts, customer contracts, supplier 15
48	44		agreements [,] and third-party contracts with regard to said system. The 16
49	45		commissioner may undertake any obligation and enter into any 17
50	46		agreement to accomplish any transaction that is necessary to carry out 18
51	47		the provisions of this section or said Asset Purchase Agreement, 19
52	48		including the grant or acceptance of any release set forth in said Asset 20
53	49		Purchase Agreement. 21
54	50		(2) The Commissioner of Administrative Services, on behalf of the 22
55	51		state, may purchase from CDECCA Property Company, LLC, in 23
56	52		accordance with the Purchase and Sale Agreement dated ____, 2022, by 24
57	53		and between the state, acting by and through the Commissioner of 25
58	54		Administrative Services, and CDECCA Property Company, LLC, which 26
59	55		Purchase and Sale Agreement is hereby ratified and approved as 27
60	56		necessary for the operation of the Capitol Area System, the energy 28
61	57		production plant located at 490 Capitol Avenue in the city of Hartford, 29
62	58		including the related land, buildings, improvements, equipment and 30
63	59		fixtures, that produces and provides steam and heated and chilled water 31
64	60		to the Capitol Area System for heating and cooling service to state and 32
65	61		nonstate facilities, together with all assets and property described in the 33
66	62		Purchase and Sale Agreement dated ____, 2022. The commissioner may 34
67	63		assume all vendor contracts, customer contracts, supplier agreements 35
68	64		and third-party contracts with regard to said system. The commissioner 36
69	65		may undertake any obligation and enter into any agreement to 37
70	66		accomplish any transaction that is necessary to carry out the provisions 38
71	67		of this section or said Purchase and Sale Agreement. 39
72	68		(b) To the extent any provision in an agreement executed or assumed 40
73	69		by the [commissioner] Commissioner of Administrative Services 41
74	70		pursuant to subsection (a) of this section may be interpreted as waiving 42
75	71		the sovereign immunity of the state, including, without limitation, 43
76	72		indemnification provisions, such provision is effective and enforceable 44
77	73		against the state solely in accordance with its specific terms. Nothing in 45
78		-	this subsection shall be construed as a waiver of the sovereign immunity 46 Raised Bill No. 5456
	74	+	this subsection shall be construed as a waiver of the sovereign immunity 46
	75	+	of the state in any other context. 47
	76	+	LCO No. 3036 3 of 7
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85		-	of the state in any other context. 47
86	78		(c) In order to operate the Capitol Area System, the [commissioner] 48
87	79		Commissioner of Administrative Services may: (1) [Furnish, from] 49
88	80		Construct or acquire energy production plants located in the city of 50
89	81		Hartford [,] for the purpose of furnishing heat or air conditioning, or 51
90	82		both, by means of steam, heated or chilled water or other medium; (2) 52
91	83		lay and maintain mains, pipes or other conduits; (3) erect such other 53
92	84		fixtures as are, or may be, necessary or convenient in and on the streets, 54
93	85		highways and public grounds of said city, for the purpose of carrying 55
94	86		steam, heated or chilled water or other medium from such plants to the 56
95	87		location to be served and returning the same; and (4) lease to one or 57
96	88		more corporations formed or specially chartered for the purpose of 58
97	89		furnishing heat or air conditioning, or both, one or more of such plants 59
98	90		or distribution systems owned by it and constructed or adapted for 60
99	91		either or both such purposes. 61
100	92		(d) The Commissioner of Administrative Services may perform all 62
101	93		obligations of the state relating to or arising from any agreement 63
102	94		between the state and TEN Companies, Inc., or the state and CDECCA 64
103	95		Property Company, LLC. 65
104	96		(e) The Commissioner of Administrative Services may (1) enter into 66
105	97		contracts with third parties for the procurement of energy products and 67
106	98		services or for the operation and maintenance of, and repairs and 68
107	99		improvements to, the Capitol Area System; (2) provide energy products 69
108	100		and services, as produced from said system or distributed by said 70
109	101		system, to any buildings owned by, or leased to, the state or any 71
110	102		instrumentality of the state; (3) sell energy products and services, as 72
111	103		produced from said system or distributed by said system, to the owners 73
112	104		or tenants of buildings not owned by the state; (4) occupy and use rights-74
113	105		of-way necessary to own, maintain, repair, improve and operate said 75
114	106		system in and on the streets, highways and public grounds of the city of 76
115	107		Hartford, on all property owned by the state and on property where 77
116	108		[the] said system is located, and to serve public and private end use 78
117		-	customers; (5) lay and maintain mains, pipes or other conduits, and erect 79 Raised Bill No. 5456
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	109	+	customers; (5) lay and maintain mains, pipes or other conduits, and erect 79
124	110		such other fixtures as are, or may be, necessary or convenient in and on 80
125	111		the streets, highways and public grounds of said city, for the purpose of 81
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126	114		carrying energy products to the location to be served and returning the 82
127	115		same; and (6) enter into contracts with third parties for the procurement 83
128	116		of other products and services, and provide or sell other products or 84
129	117		services to the state or to the owners or tenants of buildings not owned 85
130	118		by the state, that are being produced, provided or distributed through 86
131	119		said system, or any part thereof, prior to, or as of, April 23, 2009. 87
132	120		(f) The Commissioner of Administrative Services may: (1) Grant 88
133	121		easements with respect to land owned by the state in connection with 89
134	122		the operation of the Capitol Area System, subject to the approval of the 90
135	123		agency having supervision of the care and control of such land and the 91
136	124		State Properties Review Board; (2) acquire easements with respect to 92
137	125		land not owned by the state in connection with said system, subject to 93
138	126		the approval of the State Properties Review Board; (3) enter into leases 94
139	127		for any type of space or facility necessary to meet the needs of operating 95
140	128		said system, subject to the approval of the State Properties Review 96
141	129		Board; and (4) when the General Assembly is not in session, the 97
142	130		commissioner may, subject to the provisions of section 4b-23, purchase 98
143	131		or acquire for the state any land, or interest therein, if such action is 99
144	132		necessary for the operation of said system. The commissioner shall 100
145	133		provide notice of any easement granted pursuant to subdivision (1) of 101
146	134		this subsection to the chief elected official of the municipality and the 102
147	135		members of the General Assembly representing the municipality, in 103
148	136		which such land is located. 104
149	137		(g) The Commissioner of Administrative Services may establish and 105
150	138		administer an account to be known as the public works heating and 106
151	139		cooling energy revolving account, which shall be used for: (1) The 107
152	140		deposit of receipts from the sale of Capitol Area System energy products 108
153	141		and services to state agencies or to the owners or tenants of buildings 109
154	142		not owned by the state; and (2) for the payment of expenses related to 110
155	143		the operation, maintenance, repair and improvement of the Capitol 111
156		-	Area System and the energy production plant located at 490 Capitol 112 Raised Bill No. 5456
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	144	+	Area System and the energy production plant located at 490 Capitol 112
163	145		Avenue in the city of Hartford that provides steam and heated and 113
164	146		chilled water for said system. The commissioner may expend funds 114
165	147		necessary for all reasonable direct expenses related to said account. 115
	148	+	LCO No. 3036 5 of 7
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166	150		(h) For the provision of energy products and services, the 116
167	151		Commissioner of Administrative Services shall periodically invoice and 117
168	152		collect a pro rata share of the costs described in this subsection from each 118
169	153		state agency and owner or tenant of the buildings on the Capitol Area 119
170	154		System that are not owned by the state, to the extent not prohibited by 120
171	155		contracts in effect as of November 4, 2008. The [Commissioner of 121
172	156		Administrative Services] commissioner shall periodically submit 122
173	157		proposed rate setting methods and proposed rates to the Secretary of 123
174	158		the Office of Policy and Management for the secretary's approval. No 124
175	159		such method or rate shall be effective without the secretary's approval. 125
176	160		Rates shall be based on: (1) A pro rata share of all costs, including for 126
177	161		legal and consultant services, of acquiring [the] said system [, including 127
178	162		all costs for legal and consultant services] and the energy production 128
179	163		plant located at 490 Capitol Avenue in the city of Hartford, including 129
180	164		the related land, buildings, improvements, equipment and fixtures; (2) 130
181	165		a pro rata share of the cost of such energy products or services, whether 131
182	166		produced by the state or purchased from third parties; (3) a pro rata 132
183	167		share of [any and] all costs, including for services provided by vendors 133
184	168		and for equipment, of operating, maintaining and repairing said system 134
185	169		[, including the cost of services provided by vendors and the cost of 135
186	170		equipment] and said energy production plant, including the related 136
187	171		land, buildings, improvements, equipment and fixtures; (4) a pro rata 137
188	172		share of an amount determined to be necessary for long-term capital 138
189	173		improvements or replacement, which amount shall be specifically 139
190	174		identified in the public works heating and cooling energy revolving 140
191	175		account, and allocated for long-term capital improvements or 141
192	176		replacement; (5) a pro rata share of the Department of Administrative 142
193	177		Services' personnel costs related to the operation, maintenance, repair 143
194	178		and improvement of [the Capitol Area System] said system, provided 144
195	179		not more than one full-time employee of the department shall be 145
196		-	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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	180	+	allocated to [the] said system; and (6) a pro rata share of the cost of other 146
203	181		products or services incurred and permitted by this section. Not more 147
204	182		than forty-five days after receipt of a proposed rate setting method or a 148
205	183		proposed rate from the commissioner, the [Secretary of the Office of 149
206	184		Policy and Management] secretary shall approve or disapprove such 150
	185	+	LCO No. 3036 6 of 7
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207	187		proposed method or rate. If the secretary fails to act on such proposed 151
208	188		method or rate within such period, the commissioner's proposal shall be 152
209	189		deemed to have been approved. On a quarterly basis, the 153
210	190		[Commissioner of Administrative Services] commissioner shall transmit 154
211	191		to the General Fund any portion of the costs that are attributable to the 155
212	192		provisions of subdivision (1) of this subsection. 156
213	193		(i) Nothing in this section shall be construed to limit the state's use of 157
214	194		the Capitol Area System [by the state to its use or functional capacity as 158
215	195		of the date of its purchase] or the energy production plant located at 490 159
216	196		Capitol Avenue in the city of Hartford to their respective uses or 160
217	197		functional capacities as of the date of their respective purchases by the 161
218	198		state. 162
219	199		(j) Except as expressly required by the provisions of this section, the 163
220	200		acquisition of the Capitol Area System by the Commissioner of 164
221	201		Administrative Services, and any transaction necessary for such 165
222	202		acquisition, shall not be subject to any other review, approval or 166
223	203		authorization by any other state agency, board, department or 167
224	204		instrumentality and shall not be subject to any otherwise applicable 168
225	205		sales or conveyance tax or taxes. 169
226	206		(k) Nothing in this section shall be construed to prohibit the state 170
227	207		from reselling the Capitol Area System to a third party if it is determined 171
228	208		that such resale is in the best interest of the state. 172
229	209		This act shall take effect as follows and shall amend the following
230	210		sections:
231	211
232	212		Section 1 from passage 4b-17
233	213
234		-	GAE Joint Favorable Raised Bill No. 5456
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	214	+	Statement of Purpose:
	215	+	To authorize the purchase of the Capitol District Energy Center
	216	+	Cogeneration Associates energy production plant located at 490 Capitol
	217	+	Avenue in the city of Hartford.
	218	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	219	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	220	+	underlined.]
	221	+	LCO No. 3036 7 of 7
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