LCO No. 5210 1 of 5 General Assembly Raised Bill No. 6851 January Session, 2023 LCO No. 5210 Referred to Committee on ENERGY AND TECHNOLOGY Introduced by: (ET) AN ACT IMPLEMENTING RECOMMENDATIONS OF THE HYDROGEN TASK FORCE. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective July 1, 2023) (a) On or before December 31, 1 2024, the Department of Energy and Environmental Protection shall 2 develop and approve a clean hydrogen strategic plan. The clean 3 hydrogen strategic plan shall include recommendations for policies, 4 programs and regulations to grow the state's clean hydrogen economy, 5 consistent with the greenhouse gas reduction goals established in 6 section 22a-200a of the general statutes, the Integrated Resources Plan 7 approved pursuant to section 16a-3a of the general statutes and the 8 Comprehensive Energy Strategy prepared pursuant to section 16a-3d of 9 the general statutes. The strategic plan shall (1) prioritize the application 10 of clean hydrogen for end uses and sectors within the state that are the 11 most difficult to transition to being operated using electricity, and (2) 12 describe the current and projected cost differences between powering 13 such end uses and sectors with clean hydrogen compared to fossil fuels. 14 (b) Not later than December 31, 2024, the Department of Energy and 15 Raised Bill No. 6851 LCO No. 5210 2 of 5 Environmental Protection shall adopt regulations in accordance with 16 the provisions of chapter 54 of the general statutes defining "clean 17 hydrogen" for purposes of this section. 18 Sec. 2. Subsection (a) of section 31-53d of the general statutes is 19 repealed and the following is substituted in lieu thereof (Effective July 1, 20 2023): 21 (a) As used in this section, unless the context otherwise requires: 22 (1) "Covered project" means a renewable energy project that is 23 situated on land in this state, commences construction on or after July 1, 24 2021, and has a total nameplate capacity of two megawatts or more, or 25 a clean hydrogen project. "Covered project" does not include (A) any 26 renewable energy project (i) selected in a competitive solicitation 27 conducted by (I) the Department of Energy and Environmental 28 Protection, or (II) an electric distribution company, as defined in section 29 16-1, and (ii) approved by the Public Utilities Regulatory Authority 30 prior to January 1, 2022, or (B) any renewable energy project under 31 contract with another entity and approved by the relevant regulatory 32 authority, as applicable, prior to January 1, 2022; 33 (2) "Renewable energy project" means a Class I renewable energy 34 source, as defined in section 16-1. "Renewable energy project" does not 35 include any offshore wind facility procured pursuant to section 16a-3h, 36 16a-3m or 16a-3n; 37 (3) "Clean hydrogen project" means any project that produces, 38 processes, transports, stores or uses clean hydrogen, as defined in 39 regulations adopted by the Department of Energy and Environmental 40 Protection pursuant to section 1 of this act; 41 [(3)] (4) "Community benefits agreement" means an agreement 42 between (A) the developer of a covered project, and (B) community-43 based organizations or a coalition of such organizations, that details the 44 project's contributions to the community in which it is or will be sited 45 and the aspects of the project that will mitigate adverse conditions of 46 Raised Bill No. 6851 LCO No. 5210 3 of 5 such community and create opportunities for local businesses, 47 communities and workers; 48 [(4)] (5) "Labor organization" means any organization, other than a 49 company union, that exists for the purpose, in whole or in part, of 50 collective bargaining or of dealing with employers concerning 51 grievances, terms or conditions of employment, or of other mutual aid 52 or protection, including, but not limited to, (A) bona fide labor 53 organizations that are certified or recognized as the organization of 54 jurisdiction representing the workers involved, (B) bona fide building 55 and construction trades councils or district councils, and (C) state and 56 local labor federations comprised of local unions certified or recognized 57 as the representative of the workers; and 58 [(5)] (6) "Workforce development program" means a program 59 pursuant to which newly hired employees and existing employees are 60 given the opportunity to develop skills that will enable such employees 61 to qualify for higher paying jobs on a covered project. A workforce 62 development program includes: (A) Apprenticeship training through 63 an apprenticeship program registered with the Labor Department or a 64 federally recognized state apprenticeship agency that complies with the 65 requirements under 29 CFR 29 and 29 CFR 30, as each may be amended 66 from time to time, and (B) [preapprenticeship] pre-apprenticeship 67 training that will enable students to qualify for registered 68 apprenticeship training. 69 Sec. 3. (NEW) (Effective from passage) (a) The Commissioner of Energy 70 and Environmental Protection shall, in consultation with the Governor, 71 Lieutenant Governor, Secretary of the State, Comptroller and Attorney 72 General, seek opportunities for federal funding of projects or activities 73 that advance clean hydrogen in the state. 74 (b) If the Department of Energy and Environmental Protection 75 accepts an award of federal funds to implement projects or activities that 76 advance clean hydrogen in the state, the Commissioner of Energy and 77 Environmental Protection, or the commissioner's designee, shall notify 78 Raised Bill No. 6851 LCO No. 5210 4 of 5 the Commissioner of Economic and Community Development of such 79 acceptance. Not later than ninety days after receiving such notice, the 80 Commissioner of Economic and Community Development shall award 81 a grant to the Department of Energy and Environmental Protection in 82 an amount equal to not more than twenty million dollars, or the state's 83 share of the programs or activities, as determined by the Commissioner 84 of Economic and Community Development, required to meet the 85 matching requirements of the federal acts making the funds available to 86 the state, whichever is less. 87 Sec. 4. Subdivision (117) of section 12-412 of the general statutes is 88 repealed and the following is substituted in lieu thereof (Effective July 1, 89 2023): 90 (117) (A) Sales and use of solar energy electricity generating systems, 91 [and] passive or active solar water or space heating systems, [and] 92 geothermal resource systems, and clean hydrogen projects, as defined 93 in section 31-53d, as amended by this act, including equipment related 94 to such systems or projects, and sales of services relating to the 95 installation of such systems or projects. 96 (B) Sales of and the storage, use or other consumption of machinery, 97 equipment, tools, materials, supplies and fuel used directly in the 98 renewable energy and clean energy technology industries. As used in 99 this subdivision, "renewable energy and clean energy technology 100 industries" means industries that apply technologies to produce, 101 improve or develop solar energy electricity generating systems, passive 102 or active solar water or space heating systems, geothermal resource 103 systems, [and] wind power electric generation systems, or clean 104 hydrogen projects, as defined in section 31-53d, as amended by this act, 105 including equipment related to such systems or projects. 106 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2023 New section Sec. 2 July 1, 2023 31-53d(a) Raised Bill No. 6851 LCO No. 5210 5 of 5 Sec. 3 from passage New section Sec. 4 July 1, 2023 12-412(117) Statement of Purpose: To implement recommendations of the hydrogen task force. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]