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OLR Bill Analysis
sSB 979
AN ACT CONCERNING THE ESTABLISHMENT OF THE
CONNECTICUT HOME ENERGY LABEL AND THE TREE CANOPY
OF CERTAIN MUNICIPALITIES.
SUMMARY
This bill requires landlords, when listing or offering certain dwelling
units for rent, to provide a “Connecticut home energy label” for the
units, which the Department of Energy and Environmental Protection
(DEEP) commissioner must develop. The label must be provided before
a prospective tenant signs a lease for the unit or at their request.
With certain exceptions, the requirement is phased-in based on the
average percentage of gross household income spent on home heating
and electricity costs (i.e., average energy burden) in the municipality
where the unit is located. Under the bill’s schedule, the requirement
generally applies to certain municipalities beginning July 1, 2024, and
then, eventually, to all municipalities by July 1, 2027. The bill exempts
units with rent that includes a fixed amount for all electricity, natural
gas, or heating fuel costs. It also exempts units in a building (1) built
since January 1, 2000, or (2) in which the building’s landlord resides, but
only through July 1, 2027.
The bill allows municipalities to establish, by ordinance, a civil
penalty of up to $500 for a first violation and $1,000 for subsequent
violations. It explicitly provides that it does not limit or restrict a state
or local housing or health code enforcement agency’s authority.
Lastly, the bill makes it a state goal to increase the percentage of
environmental justice communities (see BACKGROUND) and
municipalities with a population of at least 100,000 that are covered by
tree canopy to at least 5% of their total area by January 1, 2024. It does
so to ensure all state residents equitably enjoy open space and tree cover 2023SB-00979-R000244-BA.DOCX
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benefits. Based on 2020 U.S. census data, Bridgeport, Hartford, New
Haven, Stamford, and Waterbury have populations of at least 100,000.
EFFECTIVE DATE: January 1, 2024, except the tree canopy provision
takes effect October 1, 2023.
HOME ENERGY LABEL
Label Development
Under the bill, the home energy label shows an energy efficiency
score for a residence. It must be consistent with all nationally recognized
ratings, including the U.S. Department of Energy (DOE) Home Energy
score, the Home Energy Rating System Index score, and the Energy Star
score.
The bill requires the DEEP commissioner to consider the following
factors when developing the label:
1. cost effectiveness of the labeling process;
2. ability to conduct the labeling process and generate a label
without outside or professional help;
3. clarity of the label’s information on the unit’s estimated energy
efficiency;
4. label standardization, accuracy, and reliability; and
5. the label’s ability to integrate information from existing
nationally recognized ratings.
Under the bill, the commissioner must allow an opportunity for
public comment during the label’s development.
Municipal Phase-In Schedule
The table below shows the bill’s schedule through which the home
energy label requirement applies to a unit if a census tract within the
municipality where it is located has the requisite average energy
burden.
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Table: Home Energy Label Municipal Phase-In Schedule
Effective Date
Municipalities Subject to Home Energy
Label Requirements
The later of (1) on and after
July 1, 2024, or (2) 30 days
after DEEP’s public release of
the label
Those with a census tract in which the average
energy burden is at least 10%
On or after July 1, 2025 Those with a census tract in which the average
energy burden is at least 6%
On or after July 1, 2026 Those with a census tract in which the average
energy burden is at least 4%
On or after July 1, 2027 All municipalities
The bill requires the Department of Housing and DEEP
commissioners, annually by March 1, to publish on their agencies’
websites a list of municipalities that meet the above schedule criteria
based on DOE’s Low-Income Energy Affordability Data Tool, or a
successor tool.
Providing the Label
Under the bill, if a landlord is subject to the home energy label
requirement and lists or offers a unit for rent by using a service,
organization, or facility involved in the business of selling or renting
dwelling units (e.g., a multiple listing service or real estate brokers’
organization), then the landlord must provide the label to a prospective
tenant at his or her request or before signing a lease for the unit through
the listing business used.
Enforcement and Penalty
The bill allows a municipality containing a census tract with the
requisite average energy burden under the bill’s phase-in schedule to
establish a civil penalty for violations by ordinance. The penalty,
payable to the municipality, is up to $500 for the first violation and
$1,000 for subsequent violations.
The bill allows landlords, within 30 days after the violation notice’s
mailing date, to appeal in Superior Court and receive a hearing. To do
so, a landlord must file a petition to reopen the assessment and pay an
entry fee to the court that equals the entry fee for a small claims case 2023SB-00979-R000244-BA.DOCX
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(currently, $95). Under the bill, these remedies are in addition to any
other remedies available at law or in equity.
BACKGROUND
Environmental Justice Communities
By law, an “environmental justice community” is (a) any U.S. census
block group, as determined by the most recent census, for which at least
30% of the population consists of low-income people who are not
institutionalized and have an income below 200% of the federal poverty
level or (b) a distressed municipality (CGS § 22a-20a).
The Department of Economic and Community Development
annually designates distressed municipalities based on high
unemployment and poverty, aging housing stock, and low or declining
rates of job, population, and per capita income growth (CGS § 32-9p).
The current (2022) distressed municipalities are Ansonia, Bridgeport,
Bristol, Chaplin, Derby, East Hartford, East Haven, Griswold, Groton,
Hartford, Meriden, Montville, New Britain, New London, North
Stonington, Norwich, Plainfield, Putnam, Sprague, Sterling, Torrington,
Waterbury, West Haven, Winchester, and Windham.
Towns with current designated census blocks (that are not also
distressed municipalities) are Bethel, Bloomfield, Branford, Brooklyn,
Canaan, Clinton, Columbia, Coventry, Cromwell, Danbury, East
Haddam, East Lyme, East Windsor, Ellington, Enfield, Essex, Fairfield,
Farmington, Glastonbury, Greenwich, Haddam, Hamden, Killingly,
Ledyard, Lisbon, Manchester, Mansfield, Middletown, Milford,
Naugatuck, New Fairfield, New Haven, New Milford, Newington,
North Canaan, Norwalk, Plainville, Portland, Preston, Ridgefield,
Rocky Hill, Sharon, Shelton, Simsbury, Southington, Stafford, Stamford,
Stonington, Stratford, Thomaston, Thompson, Vernon, Wallingford,
Waterford, Watertown, West Hartford, Wethersfield, Willington,
Windsor Locks, and Windsor.
COMMITTEE ACTION
Environment Committee
Joint Favorable Substitute
Yea 22 Nay 11 (03/10/2023)