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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 — PURA DOCKET ON THE FUTURE OF NATURAL GAS
Requires PURA to initiate a related docket on the future of natural gas in the state
§ 3 — 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
§ 4 — 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
§ 5 — 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
§ 6 — ENERGY EFFICIENCY PRODUCT STANDARD S 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
§ 7 — 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
§§ 8 & 9 — ENVIRONMENTALLY SUSTAINABLE PURCHASING
MODEL POLICY 2024HB-05004-R010613-BA.DOCX
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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
BACKGROUND
SUMMARY
This bill establishes various requirements related to its climate crisis
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 significantly and rapidly decrease
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. 2024HB-05004-R010613-BA.DOCX
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§ 2 — PURA DOCKET ON THE FUTURE OF NATUR AL GAS
Requires PURA to initiate a related docket on the future of natural gas in the state
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 level reduction goals.
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.
§ 3 — 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 their insurance premiums, corporation
business taxes, 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);
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
§ 4 — DRS FEE WAIVER FOR CERTAIN BUSINES SES
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 2024HB-05004-R010613-BA.DOCX
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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.
§ 5 — 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 Connecticut Innovations, Inc. (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.
§ 6 — ENERGY EFFICIENCY PRODUCT STANDARD S 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 Department of Energy and Environmental
Protection (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
§ 7 — 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
The bill requires the DEEP commissioner, together with the
Connecticut Green Bank, to develop a plan to install, within available 2024HB-05004-R010613-BA.DOCX
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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 in reaching the goal and any related
recommendations to expand or revise the plan.
EFFECTIVE DATE: October 1, 2024
§§ 8 & 9 — ENVIRONMENTALLY SUSTAINABLE P URCHASING
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 the Office of Policy and Management (OPM), in
consultation with the Department of Administrative Services, to
develop a model policy for environmentally sustainable purchasing that
municipalities can use and implement.
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: Upon passage, except the LoCIP provision is
effective July 1, 2024.
BACKGROUND
Legislative History
The House referred the bill (File 321) to the Appropriations
Committee, which reported a substitute that eliminates provisions in the 2024HB-05004-R010613-BA.DOCX
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bill on (1) GHG emission reduction goals, (2) permits for fossil-fueled
electricity generators, (3) electricity and electric vehicle power source
and cost posting requirements for DEEP, (4) a new Connecticut Clean
Economy Council, (5) PURA’s energy storage program, (6) school
building project grant percentages, (7) local plans of conservation and
development, (8) state building electrical systems, and (9) a report about
nature-based solutions to support climate mitigation and adaptation.
Related Bill
sHB 5356 (File 363), 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)
Appropriations Committee
Joint Favorable Substitute
Yea 37 Nay 16 (04/22/2024)