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OLR Bill Analysis
sHB 5004
AN ACT CONCERNING THE IMPLEMENTATION OF CERTAIN
CLIMATE CHANGE MEASURES.
TABLE OF CONTENTS:
SUMMARY
§ 1 — CLIMATE CRISIS DECLARATION
Declares that there is a climate crisis to (1) show urgency to enact meaningful climate
legislation and (2) support efforts for federal funds to respond to the crisis
§§ 2-6 — GREENHOUSE GAS EMISSIONS REDUCTION AND ZERO-
CARBON GOALS
Establishes new state GHG emissions reduction levels under the GWSA; requires a
consultant-prepared report on strategies to meet the new state reduction goals; for state
agencies, sets new GHG reduction goals and a goal to use only zero-carbon generating
electricity; includes carbon sequestration as a strategy for reducing emissions that may be
included in certain DEEP reports on the reductions; requires PURA to initiate a related
docket on the future of natural gas in the state
§ 7 — PERMITS OF FOSSIL-FUELED ELECTRICITY GENERATING
UNITS
Requires DEEP to require an evaluation on replacing fossil-fueled electricity-generating
capacity with no-emission energy or energy storage when it considers an application for a
permit or permit modification for a fossil-fueled electricity-generating unit
§ 8 — DEEP ENERGY INFORMATION WEBSITE
Requires DEEP to publish on its website certain information about (1) costs and sources
of electricity and (2) EV power source information
§ 9 — JOBSCT TAX REBATE PROGRAM
Requires the DECD commissioner to give a preference to applications under the JobsCT
tax rebate program that (1) make significant investments in environmentally sustainable
practices; (2) are in economic sectors like renewable energy, energy efficiency, and zero-
emission vehicles; or (3) are for sustainable farming operations
§ 10 — DRS FEE WAIVER FOR CERTAIN BUSINESSES
Requires the DRS commissioner to (1) identify business fees that are appropriate to be
waived for environmentally sustainable certified B corporations and farms and (2) submit
a list of the fees to the Environment Committee by January 1, 2025
§ 11 — CONNECTICUT CLEAN ECONOMY COUNCIL
Establishes a Connecticut Clean Economy Council to advise on strategies and policies to
further climate mitigation, clean energy, resilience, and sustainability efforts; requires the 2024HB-05004-R000321-BA.DOCX
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council to develop a plan to transition workers away from fossil-fuel-based jobs to those in
clean energy; requires an annual report of its work to be submitted to the Environment,
Energy and Technology, and Commerce committees
§ 12 — CI INVESTMENT REPORT
Requires CI to annually report to the Environment and Energy and Technology
committees on investments and assistance for companies engaged in climate change
mitigation matters
§ 13 — PURA ENERGY STORAGE PROGRAM
Requires PURA to expand its statewide energy storage program by increasing its (1) total
storage deployment targets to 1,000 MW and (2) size of incentives under certain
circumstances
§ 14 — SCHOOL BUILDING PROJECT REIMBURSEMENT RATE
Gives public school building projects that include installing a renewable energy or energy
efficiency project a 10-percetage point increase to the state grant reimbursement rate
§ 15 — ENERGY EFFICIENCY PRODUCT STANDAR DS REPORT
Requires DEEP to submit a report to the Environment Committee by January 1, 2025, on
recommendations for changing the product energy efficiency standards law to provide for
the sale and installation of certain heating and cooling systems that do not emit GHG
§ 16 — RESIDENTIAL HEAT PUMP SYSTEMS PLAN
Requires the DEEP commissioner, with the Green Bank, to develop a plan to install at
least 310,000 residential heat pumps, and report on the plan to the Environment and
Energy and Technology committees by January 1, 2026
§ 17 — LOCAL PLANS OF CONSERVATION AND DEVELOPMENT
Requires municipal conservation and development plans scheduled for adoption beginning
January 1, 2025, to evaluate environmental sustainability and climate resiliency
§§ 18 & 19 — ENVIRONMENTALLY SUSTAINABLE PURCHASING
MODEL POLICY
Requires OPM to develop a model policy for environmentally sustainable purchasing that
municipalities can use; for FY 25, requires the OPM secretary to authorize LoCIP
funding to municipalities that implement the model policy
§ 20 — STATE BUILDING ELECTRICAL SYSTEMS
Requires state building construction, renovation, and retrofitting to use electrical systems
that do not rely on fossil fuels or GHG emissions if there is available funding
§ 21 — NATURE-BASED SOLUTIONS REPORT
Requires DEEP to submit a report to the Environment Committee by December 31, 2025,
that outlines a proposed plan and program to advance nature-based solutions that support
climate mitigation and adaptation
BACKGROUND
SUMMARY
This bill establishes various requirements related to its climate crisis 2024HB-05004-R000321-BA.DOCX
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declaration (see § 1), as described in the section-by-section analysis
below.
EFFECTIVE DATE: Upon passage, except as noted below.
§ 1 — CLIMATE CRISIS DECLARATION
Declares that there is a climate crisis to (1) show urgency to enact meaningful climate
legislation and (2) support efforts for federal funds to respond to the crisis
The bill makes a declaration that there is a climate crisis to (1) show
the urgency to enact meaningful climate legislation and (2) support
increased efforts to secure federal funds to respond to the crisis. It also
states that the state recognizes the (1) urgency and need to mitigate
climate impacts and prepare for and manage disaster risk from climate
change and (2) urgency to decrease significantly and rapidly
greenhouse gas (GHG) emissions, and increase community coping
capacities to handle climate change impacts.
As part of the declaration, the bill states that the crisis threatens the
following:
1. the state’s communities’ resilience, regardless of zip code;
2. multiple aspects of the state’s natural resource and infrastructure
assets; and
3. the state’s economy and quality of life for younger generations of
state residents.
It specifies that the declaration does not permit the governor to use
its statements to operate the government by executive order.
§§ 2-6 — GREENHOUSE GAS EMISSIONS REDUCTION AND ZERO-
CARBON GOALS
Establishes new state GHG emissions reduction levels under the GWSA; requires a
consultant-prepared report on strategies to meet the new state reduction goals; for state
agencies, sets new GHG reduction goals and a goal to use only zero-carbon generating
electricity; includes carbon sequestration as a strategy for reducing emissions that may be
included in certain DEEP reports on the reductions; requires PURA to initiate a related
docket on the future of natural gas in the state
Connecticut Goals (§§ 3 & 4) 2024HB-05004-R000321-BA.DOCX
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The bill generally requires the state to reach an economy-wide net
zero GHG emission reduction level by January 1, 2050. It establishes this
requirement as part of the state’s Global Warming Solutions Act
(GWSA).
Under current law, the GWSA requires the state to reduce GHG
emissions from all sources to a level at least (1) 10% below 1990 emission
levels by January 1, 2020; (2) 45% below 2001 emission levels by January
1, 2030; and (3) 80% below 2001 emission levels by January 1, 2050. There
is also a requirement for the state to reduce GHG emissions from
electricity supplied to electric customers in the state to zero percent by
January 1, 2040.
The bill sets a new GHG reduction level requirement of 65% of 2001
emission levels January 1, 2040. It also requires that, by January 1, 2050,
the state be at an economy-wide net-zero level, considering carbon
sequestration, as long as direct (e.g., factory stacks, manufacturing
processes, company-owned or leased vehicles) and indirect (e.g.,
emissions from purchased electricity consumption, steam, or heating
and cooling) GHG emissions are at least 80% below the 2001 level.
Under the bill, “net-zero” is the level of GHG reduction from a
complete offset of emitted GHGs by GHG reduction and carbon
sequestration. “Carbon sequestration” is the removal of GHGs from the
atmosphere through (1) nature-based solutions like soils, forests,
wetlands, or working or natural lands and (2) technological solutions
with the primary purpose of removing GHGs from the atmosphere.
By law, the Department of Energy and Environmental Protection
(DEEP) commissioner determines emission levels. GHG includes any
chemical or physical substance emitted into the air that the DEEP
commissioner reasonably anticipates will cause or contribute to climate
change (e.g., carbon dioxide, methane, nitrous oxide,
hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride).
Consultant Report (§ 4)
The bill requires the DEEP commissioner to contract with a 2024HB-05004-R000321-BA.DOCX
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consultant to prepare a report that includes:
1. strategies to achieve the above GHG emissions reductions;
2. whether or not a strategy to achieve these reductions should
include sector-specific emission reduction targets and, if so, the
way and priority order to implement the targets; and
3. an evaluation of the adequacy of the state renewable portfolio
standards, which are requirements for electricity providers to get
part of their power from renewable sources.
The consultant’s report must be submitted to the Energy and
Technology and Environment committees by January 1, 2026. Under the
bill, the recommendations cannot be implemented unless approved by
each legislative chamber.
State Agency Goals (§§ 2 & 3)
The bill establishes the following GHG emissions reduction goals for
state agencies:
1. 45% from 2001 levels by 2030,
2. 70% from 2016 levels by 2040, and
3. reaching a level determined to be net-zero by 2050.
The bill sets a separate goal for state agencies to use only zero-carbon
generating electricity by 2030.
Periodic Reporting (§§ 4 & 5)
Existing law requires the DEEP commissioner, every three years and
with help from a nonprofit association with northeastern state air
quality and climate program expertise, to develop, with opportunity for
public comment, a schedule of recommended regulatory actions by
relevant agencies, policies, and other actions needed to further progress
towards achieving the GHG reduction levels. The bill (1) specifies that
schedule must be developed so as to attain the reduction levels by the
listed dates and (2) allows the regulatory actions to include carbon 2024HB-05004-R000321-BA.DOCX
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sequestration.
The bill similarly includes carbon sequestration as a proposed
regulation, policy, and strategy option to achieve the emissions
reduction limits that the DEEP commissioner may include in her
triennial report on achieved emissions reductions to the Environment,
Energy and Technology, and Transportation committees.
PURA Docket: Future of Natural Gas (§ 6)
The bill requires the Public Utilities Regulatory Authority (PURA) to
initiate a docket, by January 1, 2025, on the future of natural gas use in
the state in relation to the state’s GHG emission reduction levels
described above. After completing the docket, PURA must submit a
report to the Environment and Energy and Technology committees on
any recommendations for legislative changes needed to implement its
findings.
§ 7 — PERMITS OF FOSSIL-FUELED ELECTRICITY GENERATING
UNITS
Requires DEEP to require an evaluation on replacing fossil-fueled electricity-generating
capacity with no-emission energy or energy storage when it considers an application for a
permit or permit modification for a fossil-fueled electricity-generating unit
The bill requires the DEEP commissioner, when considering a permit
application (either a new one or a modification) from a fossil-fueled
electricity-generating unit, to require an evaluation of replacing some or
all of the generating capacity with energy or energy storage that does
not involve emissions. It does this regardless of any existing state
environmental protection laws.
Under the bill, the evaluation must be prepared by an independent
contractor at the permit applicant’s expense. It must include the (1)
technical feasibility of replacing or supplementing the fossil-fueled
electricity-generating capacity with renewable energy or energy storage
that is already in commercial use and (2) total project cost of doing so.
If the commissioner determines replacing at least some of the
generators is technically and economically feasible, the bill allows her to
require the permit applicant to include the no-emission energy or 2024HB-05004-R000321-BA.DOCX
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energy storage as a condition of granting or modifying an air pollution
permit or air pollution exemption permit.
§ 8 — DEEP ENERGY INFORMATION WEBSITE
Requires DEEP to publish on its website certain information about (1) costs and sources
of electricity and (2) EV power source information
The bill requires DEEP, by October 1, 2025, to publish on its website
consolidated information on the (1) cost and sources of electricity in the
state and (2) electric vehicle (EV) power source information, including
EV service and supply equipment.
The posted information must include the following:
1. Class I renewable energy (e.g., wind and solar) deployments and
other distributed energy resources in the state;
2. energy storage deployment in the state;
3. electricity, natural gas, and heating fuel (by fuel type)
consumption; and
4. participation information for energy efficiency, federal
weatherization, and efficiency barrier remediation programs.
§ 9 — JOBSCT TAX REBATE PROGRAM
Requires the DECD commissioner to give a preference to applications under the JobsCT
tax rebate program that (1) make significant investments in environmentally sustainable
practices; (2) are in economic sectors like renewable energy, energy efficiency, and zero-
emission vehicles; or (3) are for sustainable farming operations
By law, the Department of Economic and Community Development’s
(DECD) JobsCT tax rebate program gives companies in specified
industries rebates against the insurance premiums, corporation
business, and pass-through entity taxes for reaching certain job creation
targets.
The bill requires the DECD commissioner to give a preference to
applications for the program that:
1. make significant investments in environmentally sustainable
practices (e.g., zero-carbon energy and energy efficiency); 2024HB-05004-R000321-BA.DOCX
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2. are in sectors of the economy such as renewable energy, energy
efficiency, and zero-emission vehicles; or
3. are for farming operations that are sustainable from a climate
perspective.
EFFECTIVE DATE: July 1, 2024
§ 10 — DRS FEE WAIVER FOR CERTAIN BUSINESSES
Requires the DRS commissioner to (1) identify business fees that are appropriate to be
waived for environmentally sustainable certified B corporations and farms and (2) submit
a list of the fees to the Environment Committee by January 1, 2025
The bill requires the Department of Revenue Services (DRS)
commissioner, in collaboration with the DECD commissioner, to
identify business fees that are appropriate for waiver for
environmentally sustainable certified B corporations and farms. The
DRS commissioner must submit a list of these fees to the Environment
Committee by January 1, 2025.
§ 11 — CONNECTICUT CLEAN ECONOMY COUNCIL
Establishes a Connecticut Clean Economy Council to advise on strategies and policies to
further climate mitigation, clean energy, resilience, and sustainability efforts; requires the
council to develop a plan to transition workers away from fossil-fuel-based jobs to those in
clean energy; requires an annual report of its work to be submitted to the Environment,
Energy and Technology, and Commerce committees
The bill establishes a Connecticut Clean Economy Council to advise
on strategies and policies to strengthen the state’s climate mitigation,
clean energy, resilience, and sustainability programs to lower emissions
and advance economic and environmental justice for Connecticut
residents.
Duties and Reporting Requirements
Under the bill, the council has the following duties:
1. identify opportunities to (a) leverage state and federal funding to
scale economic opportunities related to clean energy, climate,
and sustainability investments and (b) maximize local economic
benefits from investments needed to meet the state’s climate and
sustainability goals; 2024HB-05004-R000321-BA.DOCX
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2. ensure the state’s workforce is trained to deliver climate and
sustainability solutions;
3. support equitable and diverse participation in climate and
sustainability economic development opportunities from diverse
employers and job seekers;
4. work with the Office of Workforce Strategy (OWS) to increase
workforce training in the clean energy sector, with a goal to
create opportunities for populations underrepresented in the
workforce (e.g., environmental justice community residents,
women, minorities, and formerly incarcerated people); and
5. consult with the governor and DECD commissioner on any
statewide economic action plan.
The bill requires the council to develop a plan to transition workers
from fossil-fuel-based jobs to clean energy jobs, which must be
submitted to the Commerce, Energy and Technology, and Environment
committees by February 1, 2026. It also requires, beginning by February
1, 2025, the council to submit an annual report to these same three
committees, the governor, and the Office of Policy and Management
(OPM), on its work, findings, and recommendations.
The bill allows the council to form working groups to address
workforce development in specific sectors in the clean energy and
sustainability fields.
Membership and Meetings
Under the bill, the council consists of the following members:
1. the DECD, DEEP, Department of Transportation, and OWS
commissioners, or their designees;
2. the OPM secretary or his designee;
3. the Connecticut Green Bank and Connecticut Innovations, Inc.
(CI) chief executive officers, or their designees; 2024HB-05004-R000321-BA.DOCX
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4. a representative from the governor’s office; and
5. any other members the cochairpersons designate.
The council cochairpersons are the DECD and DEEP commissioners,
or their designees. A majority of the members of the council constitutes
a quorum. Additional members designated by the cochairpersons serve
at their pleasure.
§ 12 — CI INVESTMENT REPORT
Requires CI to annually report to the Environment and Energy and Technology
committees on investments and assistance for companies engaged in climate change
mitigation matters
By January 1, 2025, the bill requires CI to begin annually reporting to
the Environment and Energy and Technology committees on
investments and assistance given to companies that are engaged in
climate change mitigation matters. CI is a quasi-public agency that gives
financing and support to businesses in the state.
§ 13 — PURA ENERGY STORAGE PROGRAM
Requires PURA to expand its statewide energy storage program by increasing its (1) total
storage deployment targets to 1,000 MW and (2) size of incentives under certain
circumstances
The bill requires PURA to expand its statewide energy storage
program by increasing its (1) cumulative storage deployment targets to
1,000 megawatts (MW) and (2) size of incentives if PURA concludes that
it is reasonable and prudent to do so and provides value to ratepayers.
Currently the program is designed with an end goal of deploying 580
MW of electric storage by 2030 and provides up-front and performance-
based incentives. Energy storage systems are generally technology
capable of absorbing energy, storing it, and then dispatching it (CGS §
16-1(48)).
EFFECTIVE DATE: July 1, 2024
§ 14 — SCHOOL BUILDING PROJECT REIMBURSE MENT RATE
Gives public school building projects that include installing a renewable energy or energy
efficiency project a 10-percetage point increase to the state grant reimbursement rate
The bill makes local or regional boards of education eligible for a 10- 2024HB-05004-R000321-BA.DOCX
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percentage point increase to their state grant reimbursement rate for
school building projects, including renovations, that involve the
installation of a renewable energy or energy efficiency project.
EFFECTIVE DATE: July 1, 2024
§ 15 — ENERGY EFFICIENCY PRODUCT STANDAR DS REPORT
Requires DEEP to submit a report to the Environment Committee by January 1, 2025, on
recommendations for changing the product energy efficiency standards law to provide for
the sale and installation of certain heating and cooling systems that do not emit GHG
The bill requires the DEEP commissioner to submit a report to the
Environment Committee by January 1, 2025, on recommendations for
changing the product energy efficiency standards law to provide for the
sale and installation of heating, ventilation, and air conditioning
systems, hot water heating systems, and geothermal systems that do not
emit GHGs. The recommendations must include suggested
implementation dates and proposed consumer education efforts.
EFFECTIVE DATE: October 1, 2024
§ 16 — RESIDENTIAL HEAT PUMP SYSTEMS PLA N
Requires the DEEP commissioner, with the Green Bank, to develop a plan to install at
least 310,000 residential heat pumps, and report on the plan to the Environment and
Energy and Technology committees by January 1, 2026
The bill requires the DEEP commissioner, together with the
Connecticut Green Bank, to develop a plan to install, within available
resources, at least 310,000 heat pumps for residential heating systems
through the existing multifamily retrofit pilot program for homes in
environmental justice communities and low interest energy efficiency
loan, residential heating equipment financing, and affordable housing
energy efficiency retrofit grant programs.
Under the bill, the commissioner must submit a report to the
Environment and Energy and Technology committees by January 1,
2026, on the plan’s status to reach the goal and any related
recommendations to expand or revise the plan.
EFFECTIVE DATE: October 1, 2024 2024HB-05004-R000321-BA.DOCX
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§ 17 — LOCAL PLANS OF CONSERVATION AND D EVELOPMENT
Requires municipal conservation and development plans scheduled for adoption beginning
January 1, 2025, to evaluate environmental sustainability and climate resiliency
The bill requires municipal plans of conservation and development
that are scheduled for adoption beginning January 1, 2025, to evaluate
the municipality’s environmental sustainability and climate resiliency.
By law, each municipality must have a plan of conservation and
development. Plans of conservation and development are statements of
development, resource management, and investment policies.
Municipalities must update their plans at least every 10 years.
§§ 18 & 19 — ENVIRONMENTALLY SUSTAINABLE PURCHASING
MODEL POLICY
Requires OPM to develop a model policy for environmentally sustainable purchasing that
municipalities can use; for FY 25, requires the OPM secretary to authorize LoCIP
funding to municipalities that implement the model policy
The bill requires OPM, in consultation with the Department of
Administrative Services, to develop a model policy for environmentally
sustainable purchasing that municipalities can use and implement if
they so choose.
Additionally, by law, the Local Capital Improvement Program
(LoCIP), administered by OPM, provides funding to municipalities for
the cost of eligible local capital improvement projects. OPM distributes
LoCIP funds to municipalities based on a statutory formula. In addition
to the distribution, the bill requires OPM, for FY 25, to authorize funding
for municipalities that implement the model policy from funds
appropriated to OPM for this purpose.
EFFECTIVE DATE: Effective upon passage, except the LoCIP
provision is effective July 1, 2024.
§ 20 — STATE BUILDING ELECTRICAL SYSTEMS
Requires state building construction, renovation, and retrofitting to use electrical systems
that do not rely on fossil fuels or GHG emissions if there is available funding
The bill requires, if funding is available, new or existing state
buildings to be constructed, or retrofitted during a major renovation,
with electrical systems that do not rely on fossil fuels or GHG emissions 2024HB-05004-R000321-BA.DOCX
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to operate. It requires this regardless of the state’s real property laws.
§ 21 — NATURE-BASED SOLUTIONS REPORT
Requires DEEP to submit a report to the Environment Committee by December 31, 2025,
that outlines a proposed plan and program to advance nature-based solutions that support
climate mitigation and adaptation
The bill requires the DEEP commissioner to prepare a report
outlining a proposed plan and program to advance nature-based
solutions in the state that support climate mitigation and adaptation. By
December 31, 2025, the commissioner must submit the report to the
Environment Committee.
Plan Contents
Under the bill, the report must (1) include an analysis of the plan’s
associated funding needs; (2) identify potential federal, state, and other
funding sources; and (3) have a proposed timeline to implement the
plan no later than July 1, 2026.
Program Provisions
Under the bill, the nature-based solutions program must include:
1. increasing carbon sequestration through increased forest extent
(e.g., reforestation) and growing forests to greater maturity;
2. controlling invasive species;
3. protecting carbon stocks by avoiding conversion of forests and
wetlands to other purposes;
4. restoring coastal habitats; and
5. increasing climate-smart agriculture and soil conservation to
reduce GHG emissions while improving habitat and protecting
biodiversity.
The bill also allows the program to include provisions on the
following:
1. land and conservation easement acquisition (a) for upslope 2024HB-05004-R000321-BA.DOCX
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advance zones next to tidal marshes or (b) in riparian areas next
to cold water streams;
2. a comprehensive modeling assessment of inland migration of
tidal marshes needed to inform adaptation decisions;
3. regulation adoption or amendments that provide necessary
stream flow levels to ensure resilience and ecological integrity of
cold water streams;
4. increases in active upland forest management to improve
regeneration, diversity, and resilience;
5. collaboration with other northeastern states and federal agencies
to develop a coordinated regional adaptation approach to
conserve habitats and species at risk; and
6. increases in connectivity among habitats.
BACKGROUND
Related Bills
sSB 11 (File 198), favorably reported by the Environment Committee,
among other things, requires local plans of conservation and
development to also include a climate change vulnerability assessment
and other information related to threats and vulnerabilities from
hazards, natural disasters, and climate change (§§ 11 & 12).
sHB 5356, favorably reported by the Energy and Technology
Committee, among other things, requires the DEEP commissioner to
study the state’s natural gas capacity, including ways to expand it, and
report her findings and recommendations to the Energy and
Technology Committee by January 1, 2025.
COMMITTEE ACTION
Environment Committee
Joint Favorable Substitute
Yea 23 Nay 11 (03/20/2024)