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General Assembly Substitute Bill No. 5004
January Session, 2025
AN ACT CONCERNING THE PROTECTION OF THE ENVIRONMENT
AND THE DEVELOPMENT OF RENEWABLE ENERGY SOURCES AND
ASSOCIATED JOB SECTORS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective from passage) (a) In the aggregate, state 1
agencies shall have the following greenhouse gas emissions reduction 2
goals: (1) A forty-five per cent reduction from 2001 levels by 2030; (2) a 3
seventy per cent reduction from 2016 levels by 2040; and (3) achieving a 4
level determined to be net-zero by 2050. 5
(b) Such state agencies shall have the goal of only utilizing zero-6
carbon generating electricity by 2030. 7
(c) Such state agencies may use the social cost of greenhouse gas 8
emissions when evaluating the costs and benefits of activities and 9
improvements to the facilities of such agencies to meet the goals in this 10
section. For purposes of this section, "social cost" includes, but is not 11
limited to, net agricultural productivity, harms to human health, 12
property damage and the value of ecosystem services. 13
(d) Not later than January 1, 2026, the Commissioner of Energy and 14
Environmental Protection shall publish guidelines for such state 15
agencies on the social cost of greenhouse gas emissions on the 16 Substitute Bill No. 5004
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department's Internet web site. 17
Sec. 2. Section 22a-200a of the general statutes is repealed and the 18
following is substituted in lieu thereof (Effective from passage): 19
(a) The state shall reduce the level of emissions of greenhouse gas: 20
(1) Not later than January 1, 2020, to a level at least ten per cent below 21
the level emitted in 1990; 22
(2) Not later than January 1, 2030, to a level at least forty-five per cent 23
below the level emitted in 2001; 24
(3) Not later than January 1, 2040, to a level at least sixty-five per cent 25
below the level emitted in 2001, including to a level of zero per cent from 26
electricity supplied to electric customers in the state; 27
(4) Not later than January 1, 2050, to [a level] an economy-wide net-28
zero level, provided direct and indirect emissions of greenhouse gases 29
are at least eighty per cent below the level emitted in 2001; and 30
(5) All of the levels referenced in this subsection shall be determined 31
by the Commissioner of Energy and Environmental Protection. 32
(b) On or before January 1, 2010, and biannually thereafter, the state 33
agencies that are members of the Governor's Steering Committee on 34
Climate Change shall submit a report to the Secretary of the Office of 35
Policy and Management and the Commissioner of Energy and 36
Environmental Protection. The report shall identify existing and 37
proposed activities and improvements to the facilities of such agencies 38
that are designed to meet state agency energy savings goals established 39
by the Governor. The report shall also identify policies and regulations 40
that could be adopted in the near future by such agencies to reduce 41
greenhouse gas emissions in accordance with subsection (a) of this 42
section. 43
(c) [Not later than January 1, 2012, and every three years thereafter, 44
the Commissioner of Energy and Environmental Protection shall, in 45 Substitute Bill No. 5004
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consultation with the Secretary of the Office of Policy and Management 46
and the Governor's Steering Committee on Climate Change, report, in 47
accordance with the provisions of section 11-4a, to the joint standing 48
committees of the General Assembly having cognizance of matters 49
relating to the environment, energy and transportation on the 50
quantifiable emissions reductions achieved pursuant to subsection (a) 51
of this section. The report shall include a schedule of proposed 52
regulations, policies and strategies designed to achieve the limits of 53
greenhouse gas emissions imposed by said subsection, an assessment of 54
the latest scientific information and relevant data regarding global 55
climate change and the status of greenhouse gas emission reduction 56
efforts in other states and countries.] The Commissioner of Energy and 57
Environmental Protection shall, not later than January 1, 2026, and 58
annually thereafter, publish an inventory of greenhouse gas emissions 59
sources and carbon sequestered to (1) establish a baseline for such 60
emissions for the state, and (2) report on the quantifiable emissions 61
reductions and carbon sequestration achieved in pursuit of the 62
greenhouse gas emissions levels specified in this section. 63
(d) The Commissioner of Energy and Environmental Protection shall, 64
not later than January 1, 2026, and not more than every three years 65
thereafter, in consultation with the Secretary of the Office of Policy and 66
Management and the Governor's Council on Climate Change, produce 67
a report, with an opportunity for public comment, on the quantifiable 68
emissions reductions and carbon sequestration achieved in pursuit of 69
the greenhouse gas emissions levels specified in this section. The report 70
shall include (1) a schedule of proposed regulations, policies and 71
strategies designed to achieve the limits of greenhouse gas emissions 72
specified in this section, by the relevant date provided, (2) an assessment 73
of the latest scientific information and relevant data regarding global 74
climate change, and (3) the status of greenhouse gas emission reduction 75
efforts in other states and countries. Such proposed regulations, policies 76
and strategies may include carbon sequestration. The commissioner 77
may engage a consultant to assist in preparing such report or portions 78
of such report. The commissioner shall submit such report, in 79 Substitute Bill No. 5004
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accordance with the provisions of section 11-4a, to the joint standing 80
committees of the General Assembly having cognizance of matters 81
relating to the environment, energy and technology and transportation. 82
[(d)] (e) At least one year prior to the effective date of any federally 83
mandated greenhouse cap and trade program including greenhouse gas 84
emissions subject to any state cap and trade requirements adopted 85
pursuant to this section, the Commissioner of Energy and 86
Environmental Protection and the Secretary of the Office of Policy and 87
Management shall report, in accordance with the provisions of section 88
11-4a, to the joint standing committees of the General Assembly having 89
cognizance of matters relating to the environment, energy and 90
technology and transportation. Such report shall explain the differences 91
between such federal and state requirements and shall identify any 92
further regulatory or legislative actions needed to achieve consistency 93
with such federal program. 94
Sec. 3. Section 22a-200b of the general statutes is repealed and the 95
following is substituted in lieu thereof (Effective from passage): 96
[(a) The Commissioner of Energy and Environmental Protection 97
shall, with the advice and assistance of a nonprofit association 98
organized to provide scientific, technical, analytical and policy support 99
to the air quality and climate programs of northeastern states: (1) Not 100
later than December 1, 2009, publish an inventory of greenhouse gas 101
emissions to establish a baseline for such emissions for the state and 102
publish a summary of greenhouse gas emission reduction strategies on 103
the Department of Energy and Environmental Protection's Internet web 104
site, (2) not later than July 1, 2010, publish results of various modeling 105
scenarios concerning greenhouse gas emissions, including, but not 106
limited to, an evaluation of the potential economic and environmental 107
benefits and opportunities for economic growth based on such 108
scenarios, (3) not later than July 1, 2011, analyze greenhouse gas 109
emission reduction strategies and, after an opportunity for public 110
comment, make recommendations on which such strategies will achieve 111
the greenhouse gas emission levels specified in section 22a-200a, and (4) 112 Substitute Bill No. 5004
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not later than July 1, 2012, and every three years thereafter, develop, 113
with an opportunity for public comment, a schedule of recommended 114
regulatory actions by relevant agencies, policies and other actions 115
necessary to show reasonable further progress towards achieving the 116
greenhouse gas emission levels specified in section 22a-200a.] 117
[(b)] The commissioner may adopt regulations, in accordance with 118
the provisions of chapter 54, to implement the provisions of [this 119
section] subsection (d) of section 22a-200a, as amended by this act. 120
Nothing in section 4a-67h, 22a-200 or 22a-200a, as amended by this act, 121
or this section shall limit a state agency from adopting any regulation 122
within its authority in accordance with the provisions of chapter 54. 123
Sec. 4. (NEW) (Effective from passage) Not later than January 1, 2026, 124
the Public Utilities Regulatory Authority shall initiate an uncontested 125
proceeding regarding the future of the natural gas distribution system 126
in the state in relation to the provisions of section 22a-200a of the general 127
statutes, as amended by this act. Such proceeding shall include, but need 128
not be limited to, the consideration and implementation of beneficial 129
electrification measures such as geothermal systems and heat pumps, 130
the integration of natural gas and electric company joint planning 131
processes, transparent accounting for the full costs and benefits of 132
energy systems infrastructure, consideration of the disproportionate 133
burdens placed on environmental justice communities, as defined in 134
section 22a-20a of the general statutes, and consideration of ratepayer 135
impacts presented in any scenario. Such proceeding shall also give 136
consideration to maximizing the efficiency, ratepayer value and other 137
benefits of the existing natural gas distribution system. Upon 138
completion of such uncontested proceeding, said authority shall submit 139
a report, in accordance with the provisions of section 11-4a of the general 140
statutes, to the joint standing committees of the General Assembly 141
having cognizance of matters relating to the environment and energy 142
and technology on any recommendations for legislative changes 143
necessary to implement the findings of such docket. 144
Sec. 5. Subdivision (3) of subsection (c) of section 32-7t of the general 145 Substitute Bill No. 5004
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statutes is repealed and the following is substituted in lieu thereof 146
(Effective July 1, 2025): 147
(3) The commissioner, upon consideration of an application and any 148
additional information, may approve an application in whole or in part 149
or may approve an application with amendments, provided the 150
commissioner may give preference to applications that: (A) Make 151
significant investments in environmentally sustainable practices, 152
including, but not limited to, zero-carbon energy and energy efficiency, 153
(B) are in sectors of the economy such as renewable energy, energy 154
efficiency and zero-emission vehicles, or (C) are for farming operations 155
that are sustainable from a climate perspective. If the commissioner 156
disapproves an application, the commissioner shall identify the defects 157
in such application and explain the specific reasons for the disapproval. 158
The commissioner shall render a decision on an application not later 159
than ninety days after the date of its receipt by the commissioner. 160
Sec. 6. (NEW) (Effective from passage) The Secretary of the State shall 161
provide a voucher for the amount of any registration or renewal fee for 162
a benefit corporation, as defined in section 33-1351 of the general 163
statutes, provided such corporation submits proof to the secretary that 164
the corporation meets the parameters of a benefit corporation, as 165
defined in section 33-1351 of the general statutes. 166
Sec. 7. (NEW) (Effective from passage) (a) There is established a 167
Connecticut Clean Economy Council that shall advise on economic 168
development strategies and policies that strengthen the state's climate 169
mitigation, clean energy, resilience and sustainability programs, in 170
particular for vulnerable communities, as defined in section 16-243y of 171
the general statutes. 172
(b) Such council shall meet not less than quarterly, at dates, times and 173
locations to be established by the cochairpersons of such council. The 174
council shall: (1) Identify opportunities to leverage state and federal 175
funding to scale economic development and workforce opportunities 176
associated with climate mitigation, clean energy, resilience and 177 Substitute Bill No. 5004
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sustainability investments, (2) serve as a central coordinating body for 178
climate mitigation, clean energy, resilience and sustainability workforce 179
efforts and opportunities state wide for a technically advanced, 180
enduring labor force, (3) develop economic development and workforce 181
strategies that support investment and growth of climate mitigation, 182
clean energy, resilience and sustainability job growth, and (4) advise the 183
Governor on any state-wide economic or workforce action plan in clean 184
energy, climate and sustainability. 185
(c) Such council shall develop a plan to facilitate the transition of 186
workers from fossil-fuel-based employment to clean economy jobs 187
consistent with the provisions of subsection (b) of this section. Such plan 188
shall be submitted not later than July 1, 2026, to the joint standing 189
committees of the General Assembly having cognizance of matters 190
relating to the environment, energy and technology and commerce, in 191
accordance with the provisions of section 11-4a of the general statutes. 192
(d) Such council shall be composed of the following members: (1) The 193
Commissioner of Economic and Community Development, or the 194
commissioner's designee, who shall also serve as a cochairperson of the 195
council, (2) the Chief Workforce Officer, or said officer's designee, who 196
shall also serve as a cochairperson of the council, (3) the Commissioner 197
of Energy and Environmental Protection, or the commissioner's 198
designee, who shall also serve as cochairperson of the council, (4) the 199
Commissioner of Transportation, or the commissioner's designee, (5) 200
the Secretary of the Office of Policy and Management, or the secretary's 201
designee, (6) a representative from the office of the Governor, (7) the 202
chief executive officer of the Connecticut Green Bank, or the chief 203
executive officer's designee, (8) the chief executive officer of Connecticut 204
Innovations, Incorporated, or the chief executive officer's designee, (9) 205
the Labor Commissioner, or the commissioner's designee, (10) the 206
Commissioner of Consumer Protection, or the commissioner's designee, 207
(11) one member appointed by the Chief Workforce Officer who shall 208
be a representative of a regional workforce development board, (12) one 209
member appointed by the speaker of the House of Representatives, (13) 210
one member appointed by the president pro tempore of the Senate, (14) 211 Substitute Bill No. 5004
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one member appointed by the majority leader of the Senate, (15) one 212
member appointed by the majority leader of the House of 213
Representatives, (16) one member appointed by the minority leader of 214
the Senate, (17) one member appointed by the minority leader of the 215
House of Representatives, and (18) any other member so designated by 216
the cochairpersons. Members appointed pursuant to subdivisions (12) 217
to (17), inclusive, of this subsection shall have one or more of the 218
following backgrounds or qualifications: (A) Be a member of the 219
Connecticut Technical Education Career System, (B) be a representative 220
of a nonprofit organization that focuses on helping people overcome 221
barriers to workforce participation, (C) have expertise in hiring and 222
training employees in the trades related to green technologies, (D) be a 223
representative of a higher education institution and have expertise in 224
technical education, or (E) be a member of the Connecticut State 225
Building Trades Council. Any member appointed pursuant to 226
subdivision (18) of this subsection shall serve at the pleasure of the 227
cochairpersons of the council. 228
(e) A majority of the members of the council shall constitute a 229
quorum. 230
(f) The cochairpersons shall, in addition to their general duties, have 231
the following specific responsibilities: The cochairperson from the 232
Department of Economic and Community Development shall lead the 233
activities specified in subdivision (1) of subsection (b) of this section and 234
the cochairperson from the Office of Workforce Strategy shall lead the 235
activities specified in subdivision (2) of subsection (b) of this section. 236
(g) Not later than February 15, 2026, and biannually thereafter, the 237
council shall report on its work, findings and recommendations to the 238
Governor, the Office of Policy and Management, and the joint standing 239
committees of the General Assembly having cognizance of matters 240
relating to the environment, energy and technology, higher education 241
and commerce, in accordance with the provisions of section 11-4a of the 242
general statutes. 243 Substitute Bill No. 5004
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Sec. 8. Section 31-3rr of the general statutes is repealed and the 244
following is substituted in lieu thereof (Effective from passage): 245
(a) As used in this section and section 10a-55g: 246
(1) "Green jobs" has the same meaning as provided in section 10a-55d; 247
(2) "Green technology" has the same meaning as provided in section 248
10a-55d; and 249
(3) "Career ladder" means a description of the progression from an 250
entry level position to higher levels of pay, skill, responsibility or 251
authority. 252
(b) Not later than January 1, 2020, the Connecticut Clean Economy 253
Council, in consultation with the Office of Higher Education, 254
Department of Education, Labor Department, Department of Energy 255
and Environmental Protection, regional workforce development boards 256
and employers, shall, within available appropriations, identify a career 257
ladder for jobs in the green technology industry, including, but not 258
limited to, a listing of (1) careers at each level of the green technology 259
industry and the requisite level of education and the salary offered for 260
such career, (2) all course, certificate and degree programs in green jobs 261
offered by technical education and career schools within the Technical 262
Education and Career System and institutions of higher education in the 263
state, and (3) jobs available in the green technology industry in the state. 264
The Connecticut Clean Economy Council shall update the green jobs 265
career ladder established pursuant to this section on an as needed basis. 266
[(c) Not later than January 1, 2024, the Connecticut Clean Economy 267
Council shall develop a plan for green jobs workforce training to 268
accomplish the greenhouse gas emissions goals set forth in subsection 269
(a) of section 22a-200a. Such plan shall include, but need not be limited 270
to, (1) development of work-based learning programs for green jobs 271
with workforce shortages; (2) development of certificate and degree 272
programs related to the green technology industry at technical 273
education and career schools and institutions of higher education in the 274 Substitute Bill No. 5004
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state; (3) identification of available funding, whether from a public or 275
private source, to fund the development of such work-based learning 276
and certificate and degree programs and provide grants to apprentices 277
and students; and (4) a strategy to market and recruit individuals, 278
especially from underrepresented populations, to existing and newly 279
developed green jobs work-based learning programs and certificate and 280
degree programs related to the green technology industry at job centers, 281
technical education and career schools and institutions of higher 282
education. Not later than January 1, 2025, and annually thereafter, said 283
council shall update such plan as necessary. 284
(d) Not later than February 1, 2024, and annually thereafter, the 285
Connecticut Clean Economy Council shall submit, in accordance with 286
the provisions of section 11-4a, to the joint standing committee of the 287
General Assembly having cognizance of matters relating to higher 288
education and employment advancement the plan developed or 289
updated pursuant to subsection (c) of this section.] 290
Sec. 9. Subsection (b) of section 10-283 of the general statutes is 291
repealed and the following is substituted in lieu thereof (Effective July 1, 292
2025): 293
(b) Notwithstanding the application date requirements of this 294
section, at any time within the limit of available grant authorization and 295
within the limit of appropriated funds, the Commissioner of 296
Administrative Services, in consultation with the Commissioner of 297
Education, may approve applications for grants and make payments for 298
such grants, for any of the following reasons: [(A)] (1) To assist school 299
building projects to remedy damage from fire and catastrophe, [(B)] (2) 300
to correct safety, health and other code violations, [(C)] (3) to replace 301
roofs, including the replacement or installation of skylights as part of 302
the roof replacement project, [(D)] (4) to remedy a certified school 303
indoor air quality emergency, [(E)] (5) to install insulation for exterior 304
walls and attics, or [(F)] (6) to purchase and install a limited use and 305
limited access elevator, windows, photovoltaic panels, air source or 306
ground source heat pumps, wind generation systems, building 307 Substitute Bill No. 5004
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management systems or portable classroom buildings, provided 308
portable classroom building projects shall not create a new facility or 309
cause an existing facility to be modified so that the portable buildings 310
comprise a substantial percentage of the total facility area, as 311
determined by the commissioner. 312
Sec. 10. (NEW) (Effective October 1, 2025) (a) The Commissioner of 313
Energy and Environmental Protection shall develop a plan for the 314
installation of efficient heat pumps for affordable heating and cooling 315
systems in the state. 316
(b) Such plan shall provide for the availability of affordable heat 317
pump options, with a focus on heat pump applications that have the 318
greatest potential benefits, including, but not limited to, lowering 319
consumers' energy costs, reducing impacts to the electric grid, and 320
improving building resilience, including, but not limited to: (1) 321
Residences in environmental justice communities, as defined in section 322
22a-20a of the general statutes, and long-term care facilities where not 323
less than eighty per cent of such residents are Medicaid recipients in 324
good financial standing with the state, (2) access to energy efficient, 325
affordable air conditioning for residents experiencing high energy bills 326
and health risks during heat waves, (3) increased resilience during 327
extreme heat events for homes and businesses, (4) improved flood 328
resilience for homes and businesses by enabling home heating systems 329
to be located above ground, (5) low or no interest loans to replace 330
heating, ventilation and air conditioning equipment to residences 331
impacted by extreme weather events, (6) cost savings and potential 332
benefits for transitioning from electric resistance heating, (7) analysis of 333
accelerating the adoption of heat pump water heaters, including public 334
education and the possible need for contractor incentives, and (8) 335
potential for a demand response program. Such plan shall describe how 336
the state could best utilize any available or future grant or loan funding. 337
Not later than January 1, 2027, the commissioner shall submit a report, 338
in accordance with the provisions of section 11-4a of the general statutes, 339
to the joint standing committees of the General Assembly having 340
cognizance of matters relating to the environment and energy and 341 Substitute Bill No. 5004
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technology on the status of such plan and any recommendations for 342
expanding or revising such plan. 343
Sec. 11. (NEW) (Effective from passage) The Commissioner of 344
Administrative Services, in consultation with the Secretary of the Office 345
of Policy and Management, shall develop a model policy or guidelines 346
for environmentally sustainable purchasing that municipalities may 347
voluntarily utilize and implement. Such policy or guidelines shall 348
include, but need not be limited to, a list of any state contracts for 349
sustainable purchasing that allow for municipal participation. The 350
Commissioner of Administrative Services shall post such policy or 351
guidelines on the Internet web site of the Department of Administrative 352
Services not later than January 1, 2026. 353
Sec. 12. (NEW) (Effective from passage) (a) Not later than January 1, 354
2026, the Department of Administrative Services, in consultation with 355
the Office of Policy and Management, the Departments of Energy and 356
Environmental Protection and Transportation, and any other state 357
agency deemed necessary by the Commissioner of Administrative 358
Services, shall establish a process for said commissioner to consider 359
when making any decision to remodel, alter, repair, construct or enlarge 360
any state real asset, pursuant to section 4b-51 of the general statutes, the 361
capability of such state real asset to: (1) Increase energy efficiency, (2) 362
utilize zero-carbon heating and cooling and water heating alternatives, 363
(3) utilize Class I renewable energy, as defined in section 16-1 of the 364
general statutes, (4) facilitate electric vehicle charging, (5) reduce energy 365
use, and (6) serve as a resilience hub. 366
(b) Not later than July 1, 2027, the Department of Administrative 367
Services, in consultation with the Office of Policy and Management and 368
the Department of Energy and Environmental Protection, shall develop 369
a plan and a budget to retrofit existing fossil fuel-based heating and 370
cooling systems at state buildings to systems capable of being operated 371
without carbon-emitting fuels. Such plan and budget shall be submitted, 372
in accordance with the provisions of section 11-4a of the general statutes, 373
to the joint standing committees of the General Assembly having 374 Substitute Bill No. 5004
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cognizance of matters relating to the environment and energy and 375
technology. 376
Sec. 13. (NEW) (Effective from passage) (a) The Commissioner of 377
Energy and Environmental Protection shall evaluate how to integrate 378
and advance nature-based solutions in the state that support climate 379
change mitigation, climate change adaptation, ecosystem resilience and 380
biodiversity through (1) the microgrid and resilience grant and loan 381
pilot program authorized pursuant to section 16-243y of the general 382
statutes, (2) the open space and watershed land acquisition program 383
authorized pursuant to sections 7-131d to 7-131k, inclusive, of the 384
general statutes, as amended by this act, and (3) other applicable state 385
and federal programs administered by the Department of Energy and 386
Environmental Protection that advance nature-based solutions, 387
including, but not limited to, (A) federal Clean Water Act programs, (B) 388
the Long Island Sound Study program, and (C) the Urban Forestry 389
program. The department's efforts to advance such nature-based 390
solutions shall be known as the nature-based solutions initiative. 391
(b) The commissioner shall, as part of such evaluation, consider best 392
practices that encourage the use of the state's ecosystems to naturally 393
sequester and store carbon, reduce greenhouse gas emissions, increase 394
biodiversity and protect against climate change impacts including: (1) 395
Increasing carbon sequestration through increased forest acreage, 396
including reforestation, (2) controlling invasive species, (3) encouraging 397
soil health across all landscapes, (4) protecting carbon stocks through 398
avoiding the conversion of forests and wetlands to other purposes, (5) 399
restoring habitats to improve biodiversity, (6) increasing climate-smart 400
agriculture and soil conservation to reduce greenhouse gas emissions 401
while improving habitat and protecting biodiversity, (7) increasing 402
community resilience by improving water quality and addressing 403
flooding and drought through nature-based stormwater management 404
and shoreline protection that uses nature-based approaches such as 405
living shorelines, (8) improving air quality and reducing urban heat 406
island effects through urban forestry and increasing green spaces, and 407
(9) increase access to open space for public health benefits. 408 Substitute Bill No. 5004
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(c) Not later than July 1, 2026, the commissioner shall post such 409
nature-based solutions initiative program evaluation on the 410
department's Internet web site for review and written comment. As part 411
of that evaluation, the commissioner shall seek review and input from 412
the Departments of Agriculture, Public Health, Housing, 413
Transportation, the Insurance Department, the Connecticut Green Bank 414
and the Office of Policy and Management. In addition, the 415
commissioner shall host one listening session before such nature-based 416
solutions initiative is so posted in order to seek public comment. 417
Sec. 14. (Effective from passage) Not later than January 15, 2027, the 418
chairperson of the Public Utilities Regulatory Authority shall submit, in 419
accordance with the provisions of section 11-4a of the general statutes, 420
the results of a study to develop a solar canopy strategic plan and 421
program design to the joint standing committee of the General 422
Assembly having cognizance of matters relating to energy and 423
technology. The plan shall identify opportunities for solar canopies in 424
the state and shall prioritize the development of solar canopies in 425
environmental justice communities, as defined in section 22a-20a of the 426
general statutes. The plan shall include an examination of different ways 427
to promote solar canopies and shall include recommendations for 428
policies, programs or regulations to promote the construction of solar 429
canopies in the state, consistent with the greenhouse gas reduction goals 430
established in section 22a-200a of the general statutes, as amended by 431
this act. 432
Sec. 15. (Effective from passage) The Commissioner of Energy and 433
Environmental Protection shall, in accordance with the provisions of 434
section 11-4a of the general statutes, not later than February 1, 2026, 435
submit to the joint standing committees of the General Assembly having 436
cognizance of matters relating to the environment and energy and 437
technology, a report with recommended regulations, policies and 438
strategies that can significantly lower energy costs for families and 439
businesses, increase community resilience to extreme weather events, 440
including, but not limited to, flooding and extreme heat and contribute 441
to the greenhouse gas emissions reductions required in section 22a-200a 442 Substitute Bill No. 5004
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of the general statutes, as amended by this act. Such report may utilize 443
modeling scenarios concerning greenhouse gas emissions. The 444
commissioner may engage a consultant to assist in preparing the report 445
or portions thereof. 446
Sec. 16. (NEW) (Effective from passage) (a) For the purposes of this 447
section: 448
(1) "Utility-scale renewable thermal energy network" means 449
distribution infrastructure (A) established for the purpose of providing 450
thermal energy for space heating and cooling, domestic hot water 451
production, refrigeration, thermal energy storage or commercial and 452
industrial processes requiring heating or cooling, and (B) effected 453
through interconnections between one or more renewable thermal 454
energy resources, which may be owned by multiple parties, and 455
between these resources and heat pumps in multiple buildings owned 456
by multiple parties; and 457
(2) "Renewable thermal energy" means (A) ambient heating or 458
cooling provided, absorbed or stored by geothermal wells, boreholes or 459
other noncombusting, non-fossil-fuel-consuming, nonnuclear thermal 460
resources, or (B) thermal energy otherwise lost to the atmosphere or 461
other environmental compartment as waste heat. 462
(b) Notwithstanding the provisions of title 16 of the general statutes, 463
not later than twelve months after passage of this section, the Public 464
Utilities Regulatory Authority shall initiate a proceeding to establish a 465
program for development of utility-scale renewable thermal energy 466
networks by gas companies, as defined in section 16-1 of the general 467
statutes. In establishing such program, the authority shall develop 468
parameters for such networks, procedures or filing proposals for such 469
networks and a standardized data collection system enabling the 470
authority and the public to track the status and performance of utility-471
scale renewable thermal energy networks developed pursuant to this 472
section. 473
(c) The authority shall structure the utility-scale renewable thermal 474 Substitute Bill No. 5004
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energy network program in the best interest of ratepayers of public 475
service companies, as defined in section 16-1 of the general statutes. For 476
purposes of this section, a determination of the best interest of 477
ratepayers shall be based on an analysis of the reasonableness of the 478
size, scope, scale and character of the project and related budget and the 479
costs and benefits of the project, including, but not limited to: (1) 480
Avoided long-term energy and infrastructure investments in extending 481
or maintaining gas infrastructure; (2) the anticipated contribution of 482
such projects to alleviation of seasonal strains on the state's natural gas 483
supply and electric distribution system; (3) consumer protections and 484
benefits for end users of the project; (4) adherence to best practices 485
emerging from thermal energy network programs and project designs 486
developed in other states or elsewhere in the state; (5) adherence to 487
workforce development practices, including the adoption of wage 488
standards pursuant to section 31-53 of the general statutes, and the use 489
of registered apprentice programs approved by the Labor Department; 490
(6) potential for accrual of capital and operational cost savings via 491
interconnection with other existing or future thermal energy networks; 492
(7) improvements in air quality in the buildings and neighborhoods 493
served by the project; (8) reductions in greenhouse gas emissions to 494
contribute to achieving the emissions reductions set forth in section 22a-495
200a of the general statutes, as amended by this act; and (9) the potential 496
rate impact on any class of ratepayers, including a distributional equity 497
analysis that details the benefits and burdens on any such class of 498
ratepayers. The authority may approve a utility-scale renewable 499
thermal energy network proposal that meets the parameters established 500
under the program. 501
(d) The authority shall create a pilot component of the utility-scale 502
renewable thermal energy network program that requires each gas 503
company to file with the authority, for its review and approval, 504
proposals for not less than one and not more than two pilot projects for 505
the development of utility-scale renewable thermal energy networks 506
that meet the program parameters established in subsection (c) of this 507
section. The authority shall review a proposal for a pilot project based 508 Substitute Bill No. 5004
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on the program parameters contained in subsection (c) of this section 509
and on the basis of the project's ability to provide insights into the 510
potential for scaling up future deployment of thermal energy networks 511
in the state, for improving the performance of such networks, and for 512
bringing down the cost of broader deployment of such networks. 513
(e) The authority shall require projects submitted to the utility-scale 514
renewable thermal energy network program for approval to include a 515
proposed rate structure for thermal energy services supplied to network 516
end users as well as consumer-protection plans for end users. The 517
authority may approve the proposed rate structure if the projected 518
heating and cooling costs for end users is not greater than the heating 519
and cooling costs the end users would be projected to incur if they had 520
not participated. 521
(f) The Public Utilities Regulatory Authority shall consider the 522
appropriate cost recovery methodology for incentives established 523
pursuant to this section as part of the proceeding established pursuant 524
to section 4 of this act. 525
(g) A gas company may meet its obligation under subsection (b) of 526
section 16-20 of the general statutes through a project approved by the 527
authority pursuant to this section. 528
(h) The authority shall ensure transparency and validity of the 529
outcomes of the projects developed pursuant to this section through 530
third-party evaluation of the data the authority collects through its 531
standardized data collection requirement. 532
(i) Nothing in this section shall prohibit a municipality from 533
developing, owning or maintaining a utility-scale renewable thermal 534
energy network. 535
(j) As part of the utility-scale renewable thermal energy network 536
program, the authority shall establish a working group on thermal 537
energy networks, comprising representatives of the staffs of the 538
authority, the Department of Energy and Environmental Protection, the 539 Substitute Bill No. 5004
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Connecticut Green Bank, the gas and electric companies, the 540
Connecticut State Building Trades Council and environmental 541
nongovernmental organizations. 542
(k) As part of the utility-scale renewable thermal energy network 543
program, the authority shall, through the working group established 544
under subsection (j) of this section, undertake a study or studies 545
assessing the potential breadth of deployment of thermal energy 546
networks in the state. Such study shall address factors including, but not 547
limited to: (1) Technical feasibility; (2) economic feasibility, taking into 548
account the potential for: (A) Reduction in energy costs of the customer 549
that is the off-taker of the system, (B) reduction in network capital costs 550
as the scale of deployments increases, (C) reduction in capital and 551
operating costs as thermal energy networks are interconnected, (D) 552
avoided cost of expanding and maintaining portions of the gas-553
distribution system, (E) minimization of the cost of expanding the 554
electricity-distribution system to facilitate increasing electrification of 555
thermal loads, (F) reduction in per-kilowatt-hour cost of supplying 556
electricity as more electricity is sold, (G) state and federal financial 557
incentives available, (H) employing and advancing the skills of gas-558
utility workers, (I) providing the gas utility companies a business model 559
not dependent on continued use of combustion of fossil fuels, and (J) 560
improvement of air quality; (3) deployment strategies to maximize the 561
scope, minimize the cost, and equitably allocate the cost of thermal 562
energy networks, including systematic identification of significant 563
sources of waste heat across the state; (4) considerations regarding: (A) 564
Deployment in low and moderate-income communities, (B) deployment 565
in environmental justice communities, (C) deployment in new 566
residential and commercial construction versus deployment in 567
retrofitting existing residential and commercial buildings, (D) 568
deployment in urban versus rural communities, (E) deployment in areas 569
with existing gas service versus areas without, and (F) ownership and 570
business models; and (5) appropriate parameters for broader 571
deployment in the near and medium term, including site selection, 572
network design, interactions with and impacts on the gas and electricity 573 Substitute Bill No. 5004
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distribution systems, ratepayer protections, billing models, consumer 574
protections, data collection, community engagement, and deployment 575
in low-and moderate-income communities and environmental justice 576
communities, as defined in section 22a-20a of the general statutes. 577
Sec. 17. (NEW) (Effective from passage) (a) For the purposes of this 578
section: 579
(1) "Renewable thermal energy network" means distribution 580
infrastructure (A) established for the purpose of providing thermal 581
energy for space heating and cooling, domestic hot water production, 582
refrigeration, thermal energy storage or commercial and industrial 583
processes requiring heating or cooling, and (B) effected through 584
interconnections between one or more renewable thermal energy 585
resources, which may be owned by multiple parties, and between these 586
resources and heat pumps in multiple buildings owned by multiple 587
parties; and 588
(2) "Renewable thermal energy" means (A) ambient heating or 589
cooling provided, absorbed or stored by geothermal wells, boreholes or 590
other noncombusting, non-fossil-fuel-consuming, nonnuclear thermal 591
resources, or (B) thermal energy otherwise lost to the atmosphere or 592
other environmental compartment as waste heat. 593
(b) Notwithstanding the provisions of title 16 of the general statutes, 594
each gas company, as defined in section 16-1 of the general statutes, shall 595
develop an incentive program for renewable thermal energy networks 596
to be owned by municipalities, a municipal utility, as defined in section 597
12-265 of the general statutes, a municipal electric energy cooperative, 598
as defined in section 7-233b of the general statutes, or an entity that has 599
a contractual obligation to a municipality to construct, operate and 600
maintain a renewable thermal network for the purpose of reducing 601
natural gas and electric demand in the state. Such program shall provide 602
an incentive payment to such entities to connect end-use customers to 603
the renewable thermal energy network. Such incentive payment shall be 604
based on the projected natural gas and electric demand reduction of 605 Substitute Bill No. 5004
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contractually obligated demand for a period of twenty years. The 606
projected natural gas and electric demand reduction shall be based on 607
the expected gas or electric demand that the renewable thermal loop is 608
displacing. 609
(c) A gas company shall design its renewable thermal energy network 610
program in the best interest of ratepayers of public service companies, 611
as defined in section 16-1 of the general statutes, and submit its program 612
design for review and approval by the Public Utilities Regulatory 613
Authority. For purposes of this section, a determination of the best 614
interest of ratepayers shall be based on an analysis of the reasonableness 615
of the size, scope, scale and character of the project and related budget 616
and the costs and benefits of the project, including, but not limited to: 617
(1) Avoided long-term energy and infrastructure investments in 618
extending or maintaining gas infrastructure; (2) the anticipated 619
contribution of such projects to alleviation of seasonal strains on the 620
state's natural gas supply and electric distribution system; (3) consumer 621
protections and benefits for end users of the project; (4) adherence to 622
best practices emerging from thermal energy network programs and 623
project designs developed in other states or elsewhere in the state; (5) 624
potential for accrual of capital and operational cost savings via 625
interconnection with other existing or future thermal energy networks; 626
(6) improvements in air quality in the buildings and neighborhood 627
served by the project; and (7) reductions in greenhouse gas emissions to 628
contribute to achieving the emissions reductions set forth in section 22a-629
200a of the general statutes, as amended by this act. 630
(d) The Public Utilities Regulatory Authority shall consider the 631
appropriate cost recovery methodology for incentives established 632
pursuant to this section as part of the proceeding established pursuant 633
to section 4 of this act. 634
(e) The owners of the renewable thermal energy network shall ensure 635
transparency and validity of the outcomes of the networks developed 636
pursuant to this section through submitting data to track the status and 637
performance of said network, which data shall be submitted to the 638 Substitute Bill No. 5004
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authority. 639
Sec. 18. Section 16a-3j of the general statutes is repealed and the 640
following is substituted in lieu thereof (Effective from passage): 641
(a) In order to secure cost-effective resources to provide more reliable 642
electric or gas service for the benefit of the state's electric or gas 643
ratepayers and to meet the state's energy and environmental goals and 644
policies established in the Integrated Resources Plan, pursuant to 645
section 16a-3a, and the Comprehensive Energy Strategy, pursuant to 646
section 16a-3d, the Commissioner of Energy and Environmental 647
Protection, in consultation with the procurement manager identified in 648
subsection (l) of section 16-2, the Office of Consumer Counsel and the 649
Attorney General, may, in coordination with other states in the control 650
area of the regional independent system operator, as defined in section 651
16-1, or on behalf of Connecticut alone, issue multiple solicitations for 652
long-term contracts from providers of resources described in 653
subsections (b), (c) and (d) of this section. 654
(b) In any solicitation for resources to reduce electric or gas demand 655
and improve resiliency and electric or gas grid reliability in the state, 656
issued pursuant to this subsection, the commissioner shall seek 657
proposals for (1) active or passive demand response measures, 658
including, but not limited to, energy efficiency, load management, and 659
the state's conservation and load management programs, pursuant to 660
section 16-245m; [, that are capable, either singly or through 661
aggregation, of reducing electric demand by one megawatt or more;] 662
and (2) Class I renewable energy sources and Class III sources, as 663
defined in section 16-1, provided any such project proposal is for a 664
facility that has a nameplate capacity rating of more than two megawatts 665
and less than twenty megawatts. The commissioner may also seek 666
proposals for energy storage systems, as defined in section 16-1, that are 667
capable of storing up to twenty megawatts of energy. Proposals 668
pursuant to this subsection shall not have a contract term exceeding 669
twenty years. Each electric distribution company and gas company, as 670
defined in section 16-1, shall, in consultation with the Energy 671 Substitute Bill No. 5004
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Conservation Management Board established pursuant to section 16-672
245m, assess whether the submission of a proposal for active and 673
passive demand response measures is feasible pursuant to any 674
solicitation issued pursuant to subdivision (1) of this subsection, 675
provided such proposal only includes electric or gas demand reductions 676
that are in addition to existing and projected demand reductions 677
obtained through the conservation and load management programs. 678
(c) In any solicitation issued pursuant to this subsection, the 679
commissioner shall seek proposals from (1) Class I renewable energy 680
sources, as defined in section 16-1, having a nameplate capacity rating 681
of twenty megawatts or more, and any associated transmission; and (2) 682
verifiable large-scale hydropower, as defined in section 16-1, and any 683
associated transmission. The commissioner may also seek proposals for 684
energy storage systems, as defined in section 16-1, having a nameplate 685
capacity rating of twenty megawatts or more. Proposals under this 686
subsection shall not have a contract term exceeding twenty years. In 687
soliciting Class I renewable energy sources, and any associated 688
transmission, pursuant to this subsection, the commissioner may, for the 689
purpose of balancing such Class I energy deliveries and improving the 690
economic viability of such proposals, also seek proposals for electricity 691
and capacity from Class II renewable energy sources, as defined in 692
section 16-1, and existing hydropower resources other than those 693
described under section 16-1, provided such resources are 694
interconnected to such associated transmission and are located in the 695
control area of the regional independent system operator or imported 696
into the control area of the regional independent system operator from 697
resources located in an adjacent regional independent system operator's 698
control area. 699
(d) In any solicitation for natural gas resources issued pursuant to this 700
subsection, the commissioner shall seek proposals for (1) interstate 701
natural gas transportation capacity, (2) liquefied natural gas, (3) 702
liquefied natural gas storage, and (4) natural gas storage, or a 703
combination of any such resources, provided such proposals provide 704
incremental capacity, gas, or storage that has a firm delivery capability 705 Substitute Bill No. 5004
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to transport natural gas to natural gas-fired generating facilities located 706
in the control area of the regional independent system operator. 707
Proposals under this subsection shall not have a contract term exceeding 708
a period of twenty years. 709
(e) The Commissioner of Energy and Environmental Protection, in 710
consultation with the procurement manager identified in subsection (l) 711
of section 16-2, the Office of Consumer Counsel and the Attorney 712
General, shall evaluate project proposals received under any solicitation 713
issued pursuant to subsection (b), (c) or (d) of this section, based on 714
factors including, but not limited to, (1) improvements to the reliability 715
of the electric system, including during winter peak demand; (2) 716
whether the benefits of the proposal outweigh the costs to ratepayers; 717
(3) fuel diversity; (4) the extent to which the proposal contributes to 718
meeting the requirements to reduce greenhouse gas emissions and 719
improve air quality in accordance with sections 16-245a, 22a-174 [,] and 720
22a-200a, as amended by this act; (5) whether the proposal is in the best 721
interest of ratepayers; and (6) whether the proposal is aligned with the 722
policy goals outlined in the Integrated Resources Plan, pursuant to 723
section 16a-3a, and the Comprehensive Energy Strategy, pursuant to 724
section 16a-3d, including, but not limited to, environmental impacts. In 725
conducting such evaluation, the commissioner may also consider the 726
extent to which project proposals provide economic benefits for the 727
state. In evaluating project proposals received under any solicitation 728
issued pursuant to subsection (b), (c) or (d) of this section, the 729
commissioner shall compare the costs and benefits of such proposals 730
relative to the expected or actual costs and benefits of other resources 731
eligible to respond to the other procurements authorized pursuant to 732
this section. 733
(f) The commissioner may hire consultants with expertise in 734
quantitative modeling of electric and gas markets, and physical gas and 735
electric system modeling, as applicable, to assist in implementing this 736
section, including, but not limited to, the evaluation of proposals 737
submitted pursuant to this section. All reasonable costs, not exceeding 738
one million five hundred thousand dollars, associated with the 739 Substitute Bill No. 5004
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commissioner's solicitation and review of proposals pursuant to this 740
section shall be recoverable through the nonbypassable federally 741
mandated congestion charge, as defined in subsection (a) of section 16-742
1. Such costs shall be recoverable even if the commissioner does not 743
select any proposals pursuant to solicitations issued pursuant to this 744
section. 745
(g) If the commissioner finds proposals received pursuant to this 746
section to be in the best interest of [electric] ratepayers, in accordance 747
with the provisions of subsection (e) of this section, the commissioner 748
may select any such proposal or proposals, provided the total capacity 749
of the resources selected under all solicitations issued pursuant to this 750
section in the aggregate do not exceed three hundred seventy-five 751
million cubic feet per day of natural gas capacity, or the equivalent 752
megawatts of electricity, electric demand reduction or combination 753
thereof. Any proposals selected pursuant to subsections (b) and (c) of 754
this section shall not, in the aggregate, exceed ten per cent of the load 755
distributed by the state's electric distribution companies or ten per cent 756
of the load distributed by the state's gas companies. The commissioner 757
may, on behalf of all customers of electric distribution companies, direct 758
the electric distribution companies to enter into long-term contracts for 759
active or passive demand response measures that result in electric 760
savings, electricity time-of-use shifts, electricity, electric capacity, 761
environmental attributes, energy storage, interstate natural gas 762
transportation capacity, liquefied natural gas, liquefied natural gas 763
storage, and natural gas storage, or any combination thereof, from 764
proposals submitted pursuant to this section, provided the benefits of 765
such contracts to customers of electric distribution companies outweigh 766
the costs to such companies' customers. The commissioner may, on 767
behalf of all customers of gas companies, direct the gas companies to 768
enter into long-term contracts for active or passive demand response 769
measures that result in gas savings or time-of-use shifts from proposals 770
submitted pursuant to this section, provided the benefits of such 771
contracts to customers of gas companies outweigh the costs to such 772
companies' customers. 773 Substitute Bill No. 5004
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(h) Any agreement entered into pursuant to this section shall be 774
subject to review and approval by the Public Utilities Regulatory 775
Authority. The electric distribution company or gas company shall file 776
an application for the approval of any such agreement with the 777
authority. The authority shall approve such agreement if it is cost 778
effective and in the best interest of electric or gas ratepayers. The 779
authority shall issue a decision not later than ninety days after such 780
filing. If the authority does not issue a decision within ninety days after 781
such filing, the agreement shall be deemed approved. Where an electric 782
distribution company or gas company both apply for recovery of net 783
costs of the same such agreement, the authority shall determine which 784
net costs are attributable to each company. The net costs of any such 785
agreement, including costs incurred by the electric distribution 786
company or gas company under the agreement and reasonable costs 787
incurred by the electric distribution company or gas company in 788
connection with the agreement, shall be recovered on a timely basis 789
through a fully reconciling component of electric rates or gas rates for 790
all customers of the electric distribution company or gas company. Any 791
net revenues from the sale of products purchased in accordance with 792
long-term contracts entered into pursuant to this section shall be 793
credited to customers through the same fully reconciling rate 794
component for all customers of the contracting electric distribution 795
company or gas company. For any contract for interstate natural gas 796
transportation capacity, liquefied natural gas, liquefied natural gas 797
storage or natural gas storage entered into pursuant to this section, the 798
electric distribution company may contract with a gas supply manager 799
to sell such interstate natural gas transportation capacity, liquefied 800
natural gas, liquefied natural gas storage or natural gas storage, or a 801
combination thereof, into the wholesale markets at the best available 802
price in a manner that meets all applicable requirements pursuant to all 803
applicable regulations of the Federal Energy Regulatory Commission. 804
(i) Certificates issued by the New England Power Pool Generation 805
Information System for any Class I renewable energy source or Class III 806
source procured by an electric distribution company pursuant to this 807 Substitute Bill No. 5004
LCO 26 of 34
section may be: (1) Sold into the New England Power Pool Generation 808
Information System renewable energy credit market to be used by any 809
electric supplier or electric distribution company to meet the 810
requirements of section 16-245a, so long as the revenues from such sale 811
are credited to electric distribution company customers as described in 812
this subsection; or (2) retained by the electric distribution company to 813
meet the requirements of section 16-245a. In considering whether to sell 814
or retain such certificates the company shall select the option that is in 815
the best interest of such company's ratepayers. 816
Sec. 19. Subsections (a) to (e), inclusive, of section 8-240a of the 817
general statutes are repealed and the following is substituted in lieu 818
thereof (Effective from passage): 819
(a) As used in this section, [: 820
(1) "Alliance district" has the same meaning as provided in section 10-821
262u; 822
(2) "Environmental justice community" has the same meaning as 823
provided in section 22a-20a; and 824
(3) "Low-income resident"] "low-income resident" means, after 825
adjustments for family size, individuals or families whose income is not 826
greater than [(A)] (1) sixty per cent of the state median income, [(B)] (2) 827
eighty per cent of the area median income for the area in which the 828
resident resides, as determined by the United States Department of 829
Housing and Urban Development, or [(C)] (3) any other definition of 830
"low-income resident" included in any program in the state that utilizes 831
federal funding, as determined by the Commissioner of Energy and 832
Environmental Protection. 833
(b) There is established a revolving loan and grant fund to be known 834
as the "Housing Environmental Improvement Revolving Loan and 835
Grant Fund". The fund may be funded from the proceeds of bonds 836
issued pursuant to section 8-240b or from any moneys available to the 837
Commissioner of Energy and Environmental Protection or from other 838 Substitute Bill No. 5004
LCO 27 of 34
sources. Investment earnings credited to the fund shall become part of 839
the assets of the fund. Any balance remaining in the fund at the end of 840
any fiscal year shall be carried forward in the fund for the next fiscal 841
year. Payments of principal or interest on a low interest loan made 842
pursuant to this section shall be paid to the State Treasurer for deposit 843
in the Housing Environmental Improvement Revolving Loan and Grant 844
Fund. The fund shall be used to make grants or low interest loans 845
pursuant to this section to pay reasonable and necessary fees incurred 846
in administering loans under this section. The Commissioner of Energy 847
and Environmental Protection may enter into contracts with quasi-848
public agencies, [or] nonprofit corporations, or electric distribution or 849
gas companies, as such terms are defined in section 16-1, to provide for 850
the administration of the Housing Environmental Improvement 851
Revolving Loan and Grant Fund by such entity or entities, provided no 852
grant or low interest loan shall be made from the fund without the 853
authorization of the commissioner as provided in this section. 854
(c) The Commissioner of Energy and Environmental Protection, in 855
collaboration with the Commissioner of Housing, shall establish a pilot 856
program or programs to provide financing or grants from the fund 857
established in subsection (b) of this section for retrofitting projects for 858
single and multifamily residences located in environmental justice 859
communities or alliance districts that (1) improve the energy efficiency 860
of such residences, which may include, but need not be limited to, the 861
installation of heat pumps, solar power generating systems, improved 862
roofing, exterior doors and windows, improved insulation, air sealing, 863
improved ventilation, appliance upgrades and any electric system or 864
wiring upgrades necessary for such retrofit, (2) remediate health and 865
safety concerns that are barriers to any such retrofit, including, but not 866
limited to, mold, vermiculite, asbestos, lead and radon, [or] (3) add 867
resilience measures to such residences, which may include, but need not 868
be limited to, flood mitigation, (4) provide services to assist residents 869
and building owners to access and implement the programs established 870
pursuant to this section or other available state or federal programs that 871
enable the implementation of energy efficiency retrofitting, or (5) 872 Substitute Bill No. 5004
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replace heating, ventilation and air conditioning equipment to 873
residences impacted by extreme weather events. 874
(d) On and after July 1, 2025, the Commissioner of Energy and 875
Environmental Protection, or any program administrator the 876
commissioner may designate, shall accept applications, in a form 877
specified by the commissioner, from any owner of a residential dwelling 878
unit for financing or a grant under the program or programs. Any such 879
financing or grant may be awarded to an owner of a residential dwelling 880
unit, as defined in section 47a-1. 881
(e) The Commissioner of Energy and Environmental Protection shall 882
[prioritize] limit the awarding of financing or grants [for] to projects that 883
benefit any resident or prospective resident who is a low-income 884
resident. 885
Sec. 20. Section 7-131d of the general statutes is repealed and the 886
following is substituted in lieu thereof (Effective from passage): 887
(a) There is established the protected open space and watershed land 888
acquisition grant program. The program shall provide grants to 889
municipalities and nonprofit land conservation organizations to acquire 890
land or permanent interests in land for open space and watershed 891
protection and to water companies, as defined in section 25-32a, to 892
acquire and protect land which is eligible to be classified as class I or 893
class II land, as defined in section 25-37c, after acquisition. All lands or 894
interests in land acquired under this program shall be preserved in 895
perpetuity predominantly in their natural scenic and open condition for 896
the protection of natural resources while allowing for recreation 897
consistent with such protection and, for lands acquired by water 898
companies, allowing for the improvements necessary for the protection 899
or provision of potable water. 900
(b) Grants may be made under the protected open space and 901
watershed land acquisition grant program established under subsection 902
(a) of this section or under the Charter Oak open space grant program 903
established under section 7-131t to match funds for the purchase of land 904 Substitute Bill No. 5004
LCO 29 of 34
or permanent interests in land which purchase meets one of the 905
following criteria: (1) Protects land identified as being especially 906
valuable for recreation, forestry, fishing, conservation of wildlife or 907
natural resources; (2) protects land which includes or contributes to a 908
prime natural feature of the state's landscape, including, but not limited 909
to, a shoreline, a river, its tributaries and watershed, an aquifer, 910
mountainous territory, ridgelines, an inland or coastal wetland, a 911
significant littoral or estuarine or aquatic site or other important 912
geological feature; (3) protects habitat for native plant or animal species 913
listed as threatened or endangered or of special concern, as defined in 914
section 26-304; (4) protects a relatively undisturbed outstanding 915
example of a native ecological community which is now uncommon; (5) 916
enhances and conserves water quality of the state's lakes, rivers and 917
coastal water; (6) preserves local agricultural heritage; or (7) in the case 918
of grants to water companies, protects land which is eligible to be 919
classified as class I land or class II land after acquisition. 920
(c) Grants may be made under the protected open space and 921
watershed land acquisition grant program established under subsection 922
(a) of this section for restoration or protection of natural features or 923
habitats on open space already owned by a (1) distressed municipality, 924
as defined in section 32-9p, (2) targeted investment community, as 925
defined in section 32-222, (3) municipality, provided such open space is 926
located in an environmental justice community, as defined in section 927
22a-20a, or (4) nonprofit land conservation organization, provided such 928
open space is located in a distressed municipality, targeted investment 929
community or environmental justice community. Such restoration or 930
protection may include, but need not be limited to, wetland, wildlife or 931
plant habitat restoration or restoration of other sites to a more natural 932
condition or replacement of vegetation. Such grants may also fund the 933
development of urban agricultural sites on such open space for 934
nonprofit or commercial use. The total amount of grants made pursuant 935
to this subsection shall not exceed twenty per cent of the total amount 936
of grants made pursuant to the open space and watershed land 937
acquisition grant program in any fiscal year. 938 Substitute Bill No. 5004
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(d) (1) Except as provided in subdivision (2) of this subsection, no 939
grant may be made under the protected open space and watershed land 940
acquisition grant program established under subsection (a) of this 941
section or under the Charter Oak open space grant program established 942
under section 7-131t for: (A) Land to be used for commercial purposes 943
or for recreational purposes requiring intensive development, 944
including, but not limited to, golf courses, driving ranges, tennis courts, 945
ballfields, swimming pools and uses by motorized vehicles other than 946
vehicles needed by water companies to carry out their purposes, 947
provided trails or pathways for pedestrians, motorized wheelchairs or 948
nonmotorized vehicles shall not be considered intensive development; 949
(B) land with environmental contamination over a significant portion of 950
the property provided grants for land requiring remediation of 951
environmental contamination may be made if remediation will be 952
completed before acquisition of the land or any interest in the land and 953
an environmental assessment approved by the Commissioner of Energy 954
and Environmental Protection has been completed and no 955
environmental use restriction applies to the land; (C) land which has 956
already been committed for public use, except as provided in subsection 957
(c) of section 7-131g; (D) development costs, including, but not limited 958
to, construction of ballfields, tennis courts, parking lots or roadways; (E) 959
land to be acquired by eminent domain; or (F) reimbursement of in-kind 960
services or incidental expenses associated with the acquisition of land. 961
This subsection shall not prohibit the continuation of agricultural 962
activity, the activities of a water company for public water supply 963
purposes or the selling of timber incidental to management of the land 964
which management is in accordance with approved forest management 965
practices provided any proceeds of such timber sales shall be used for 966
management of the land. In the case of land acquired under this section 967
which is designated as a state park, any fees charged by the state for use 968
of such land shall be used by the state in accordance with the provisions 969
of title 23. 970
(2) Grants in a total amount not exceeding five per cent of the total 971
amount of grants made pursuant to the open space and watershed land 972 Substitute Bill No. 5004
LCO 31 of 34
acquisition grant program in any fiscal year may be made to distressed 973
municipalities, as defined in section 32-9p, targeted investment 974
communities, as defined in section 32-222, nonprofit land conservation 975
organizations and municipalities, for the purpose of reimbursement for 976
in-kind services or incidental expenses associated with the acquisition 977
of land, including, but not limited to, survey fees, appraisal costs and 978
legal fees, provided such land is located in a distressed municipality, 979
targeted investment community or environmental justice community, 980
as defined in section 22a-20a. 981
(e) Any municipality or group of contiguous municipalities may 982
apply to the Commissioner of Energy and Environmental Protection for 983
a grant-in-aid of a program established to preserve or restrict to 984
conservation or recreation purposes the use of open space land. Such 985
grant shall be used for the acquisition of land, or easements, interests or 986
rights therein, or for the development of such land, or easements, 987
interests or rights therein, for purposes set forth in this section, or both, 988
in accordance with a plan of development adopted by the municipal 989
planning commission of the municipality within which the land is 990
located. Any application for a grant-in-aid relating to land located 991
beyond the territorial limits of the applying municipality shall be subject 992
to approval of the legislative body of the municipality within whose 993
territorial limits the land is located. A municipality applying for aid 994
under this section, may designate its conservation commission as its 995
agent to make such application. 996
(f) At closing, a permanent conservation easement, as defined in 997
section 47-42, shall be executed for any property purchased with grant 998
funds, which conservation easement shall provide that the property 999
shall remain forever predominantly in its natural and open condition 1000
for the specific conservation, open space or water supply purposes for 1001
which it was acquired provided any improvements or changes to the 1002
property shall be supportive of such condition or purposes. The 1003
permanent conservation easement shall be in favor of the state acting 1004
through the Commissioner of Energy and Environmental Protection, or 1005
his designee, which may be a municipality or a land conservation 1006 Substitute Bill No. 5004
LCO 32 of 34
organization. In the case of land acquired for water supply protection, a 1007
water company may hold an easement in conjunction with the state or 1008
a nonprofit entity to protect the water supply. Such permanent 1009
conservation easement shall also include a requirement that the 1010
property be made available to the general public for appropriate 1011
recreational purposes, the maintenance of which recreational access 1012
shall be the responsibility of the grantee provided such access shall not 1013
be required for land which will be classified as class I or class II land by 1014
a water company if such access is inconsistent with the provision of pure 1015
drinking water to the public. An exception to the provision of public 1016
recreational access may be made at the discretion of the Commissioner 1017
of Energy and Environmental Protection when provision for public 1018
access would be unreasonably detrimental to the wildlife or plant 1019
habitat or other natural features of the property or, for land where 1020
development rights have been purchased, would be disruptive of 1021
agricultural activity occurring on the land. Any instrument conveying 1022
an interest in land less than fee which interest is purchased under this 1023
section shall provide for the permanent preservation of the land and 1024
public access consistent with the land's use or protection and with any 1025
restrictions prescribed by the Department of Public Health in order to 1026
protect a public drinking water source. 1027
(g) (1) Notwithstanding the provisions of subsection (a) of this 1028
section, not more than ten per cent of the funds authorized for the open 1029
space and watershed land acquisition program may be allocated by the 1030
commissioner for the purpose of mitigating wildfire risks on properties 1031
acquired or protected through the program, including properties 1032
already protected by the program, through the management of 1033
vegetative fuel loads. 1034
(2) Not later than January 15, 2026, the commissioner shall establish 1035
criteria and guidelines for the allocation and use of funds under this 1036
subsection, ensuring that such funds are used efficiently and in 1037
alignment with the program's overarching goals of protecting open 1038
space and natural resources while reducing wildfire risk. 1039 Substitute Bill No. 5004
LCO 33 of 34
Sec. 21. (Effective from passage) The Department of Energy and 1040
Environmental Protection shall conduct a study on renter utilization of 1041
state energy efficiency and clean energy programs for which such 1042
department can obtain data, including, but not limited to, any barriers 1043
for renters to access such programs and any attendant 1044
recommendations for addressing any such barriers. Not later than July 1045
1, 2026, the department shall submit a report to the joint standing 1046
committees of the General Assembly having cognizance of matters 1047
relating to the environment and energy and technology, in accordance 1048
with section 11-4a of the general statutes, that contains any such 1049
recommendations. 1050
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage New section
Sec. 2 from passage 22a-200a
Sec. 3 from passage 22a-200b
Sec. 4 from passage New section
Sec. 5 July 1, 2025 32-7t(c)(3)
Sec. 6 from passage New section
Sec. 7 from passage New section
Sec. 8 from passage 31-3rr
Sec. 9 July 1, 2025 10-283(b)
Sec. 10 October 1, 2025 New section
Sec. 11 from passage New section
Sec. 12 from passage New section
Sec. 13 from passage New section
Sec. 14 from passage New section
Sec. 15 from passage New section
Sec. 16 from passage New section
Sec. 17 from passage New section
Sec. 18 from passage 16a-3j
Sec. 19 from passage 8-240a(a) to (e)
Sec. 20 from passage 7-131d
Sec. 21 from passage New section
ENV Joint Favorable Subst. Substitute Bill No. 5004
LCO 34 of 34