OFFICE OF FISCAL ANALYSIS Legislative Office Building, Room 5200 Hartford, CT 06106 (860) 240-0200 http://www.cga.ct.gov/ofa sHB-6851 AN ACT IMPLEMENTING RECOMMENDATIONS OF THE HYDROGEN TASK FORCE. Primary Analyst: MT 3/29/23 Contributing Analyst(s): Reviewer: EW OFA Fiscal Note State Impact: Agency Affected Fund-Effect FY 24 $ FY 25 $ Department of Energy and Environmental Protection FF - Potential Revenue Gain See Below See Below Department of Energy and Environmental Protection GF - Potential Cost See Below See Below Note: GF=General Fund; FF=Federal Funds Municipal Impact: None Explanation The bill would result in both a potential cost to the Department of Energy and Environmental Protection (DEEP) in the form of additional labor costs, and a potential gain of federal fund revenue. This would require DEEP to develop a hydrogen strategic plan to advance clean hydrogen energy in state. The bill requires DEEP to find additional funding for these projects through existing federal resources. This would be done in part through the Department of Economic and Community Development (DECD) and would feature no additional cost to create. There is a potential cost in the additional labor provisions that are provided by the bill. The extension of the usage of the "standard wage" requirement to hydrogen projects may lead to higher bid costs if they contractors and companies impacted choose to pass those costs onto the state. 2023HB-06851-R000335-FN.DOCX Page 2 of 2 The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.