| 24 | | - | Section 1. (NEW) (Effective July 1, 2025) (a) For purposes of this 1 |
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| 25 | | - | section: 2 |
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| 26 | | - | (1) "Department" means the Department of Energy and 3 |
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| 27 | | - | Environmental Protection; 4 |
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| 28 | | - | (2) "Climate change adaptation project" means a project designed to 5 |
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| 29 | | - | respond to, avoid, moderate, repair or adapt to negative impacts caused 6 |
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| 30 | | - | by climate change and to assist human and natural communities, 7 |
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| 31 | | - | households and businesses in preparing for future climate-change-8 |
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| 32 | | - | driven disruptions. "Climate change adaptation project" includes 9 |
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| 33 | | - | implementing nature-based solutions and flood protections, home 10 |
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| 34 | | - | buyouts, upgrading stormwater drainage systems, making defensive 11 |
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| 35 | | - | upgrades to roads, bridges, railroads and transit systems, preparing for 12 |
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| 36 | | - | and recovering from extreme weather events, undertaking preventive 13 |
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| 37 | | - | health care programs and providing medical care to treat illness or 14 |
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| 38 | | - | injury caused by the effects of climate change, relocating, elevating or 15 |
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| 39 | | - | Committee Bill No. 6280 |
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| 40 | | - | |
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| 41 | | - | |
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| 42 | | - | LCO No. 4800 2 of 10 |
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| 43 | | - | |
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| 44 | | - | retrofitting sewage treatment plants and other infrastructure vulnerable 16 |
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| 45 | | - | to flooding, installing energy-efficient cooling systems and other 17 |
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| 46 | | - | weatherization and energy-efficiency upgrades and retrofits in public 18 |
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| 47 | | - | and private buildings, including schools and public housing, designed 19 |
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| 48 | | - | to reduce the public health effects of more frequent heat waves and 20 |
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| 49 | | - | forest fire smoke, upgrading parts of the electrical grid to increase 21 |
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| 50 | | - | stability and resilience, including supporting the creation of self-22 |
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| 51 | | - | sufficient microgrids, and responding to toxic algae blooms, loss of 23 |
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| 52 | | - | agricultural topsoil, crop loss and other climate-driven ecosystem 24 |
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| 53 | | - | threats to forests, farms, fisheries and food systems; 25 |
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| 54 | | - | (3) "Climate Superfund Cost Recovery Program" or "program" means 26 |
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| 55 | | - | the program established pursuant to this section; 27 |
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| 56 | | - | (4) "Coal" means bituminous coal, anthracite coal and lignite; 28 |
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| 57 | | - | (5) "Controlled group" means two or more entities treated as a single 29 |
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| 58 | | - | employer under 26 USC 52(a) or (b), without regard to 26 USC 30 |
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| 59 | | - | 1563(b)(2)(C), or, alternatively, 26 USC 414(m) or (o), provided for 31 |
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| 60 | | - | purposes of this section, entities in a controlled group shall be treated as 32 |
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| 61 | | - | a single entity for purposes of meeting the definition of responsible 33 |
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| 62 | | - | party and shall be jointly and severally liable for payment of any cost 34 |
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| 63 | | - | recovery demand owed by any entity in the controlled group; 35 |
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| 64 | | - | (6) "Cost recovery demand" means a charge asserted against a 36 |
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| 65 | | - | responsible party for cost recovery payments under the program for 37 |
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| 66 | | - | payment to the fund; 38 |
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| 67 | | - | (7) "Covered greenhouse gas emissions" means the total quantity of 39 |
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| 68 | | - | greenhouse gases released into the atmosphere during the covered 40 |
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| 69 | | - | period, expressed in metric tons of carbon dioxide equivalent, resulting 41 |
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| 70 | | - | from the use of fossil fuels extracted or refined by an entity; 42 |
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| 71 | | - | (8) "Covered period" means the period that began on January 1, 1995, 43 |
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| 72 | | - | and ended on December 31, 2025; 44 |
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| 73 | | - | (9) "Crude oil" means oil or petroleum of any kind and in any form, 45 |
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| 74 | | - | Committee Bill No. 6280 |
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| 75 | | - | |
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| 76 | | - | |
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| 77 | | - | LCO No. 4800 3 of 10 |
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| 78 | | - | |
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| 79 | | - | including bitumen, oil sands, heavy oil, conventional and 46 |
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| 80 | | - | unconventional oil, shale oil, natural gas liquids, condensates and 47 |
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| 81 | | - | related fossil fuels; 48 |
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| 82 | | - | (10) "Entity" means any individual, trustee, agent, partnership, 49 |
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| 83 | | - | association, corporation, company, municipality, political subdivision 50 |
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| 84 | | - | or other legal organization, including a foreign nation, that holds or held 51 |
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| 85 | | - | an ownership interest in a fossil fuel business during the covered period; 52 |
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| 86 | | - | (11) "Environmental justice community" has the same meaning as 53 |
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| 87 | | - | provided in section 22a-20a of the general statutes; 54 |
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| 88 | | - | (12) "Fossil fuel" means coal, petroleum products or fuel gases; 55 |
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| 89 | | - | (13) "Fossil fuel business" means a business engaging in the extraction 56 |
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| 90 | | - | of fossil fuels or the refining of petroleum products; 57 |
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| 91 | | - | (14) "Fuel gas" means: (A) Methane, (B) natural gas, (C) liquified 58 |
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| 92 | | - | natural gas, or (D) manufactured fuel gases; 59 |
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| 93 | | - | (15) "Fund" means the Climate Superfund Cost Recovery Program 60 |
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| 94 | | - | Fund established pursuant to this section; 61 |
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| 95 | | - | (16) "Greenhouse gas" has the same meaning as provided in section 62 |
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| 96 | | - | 22a-200 of the general statutes; 63 |
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| 97 | | - | (17) "Nature-based solutions" means projects that utilize or mimic 64 |
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| 98 | | - | nature or natural processes and functions and that may also offer 65 |
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| 99 | | - | environmental, economic and social benefits while increasing resilience. 66 |
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| 100 | | - | "Nature-based solutions" includes both green and natural 67 |
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| 101 | | - | infrastructure; 68 |
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| 102 | | - | (18) "Notice of cost recovery demand" means the written 69 |
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| 103 | | - | communication from the department informing a responsible party of 70 |
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| 104 | | - | the amount of the cost recovery demand payable to the fund; 71 |
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| 105 | | - | (19) "Petroleum product" means any product refined or re-refined 72 |
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| 106 | | - | from: (A) Synthetic or crude oil, or (B) crude oil extracted from natural 73 |
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| 107 | | - | Committee Bill No. 6280 |
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| 108 | | - | |
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| 109 | | - | |
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| 110 | | - | LCO No. 4800 4 of 10 |
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| 111 | | - | |
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| 112 | | - | gas liquids or other sources; 74 |
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| 113 | | - | (20) "Qualifying expenditure" means an authorized payment from 75 |
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| 114 | | - | the fund to pay reasonable expenses associated with the administration 76 |
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| 115 | | - | of the fund and the program and to pay for a climate change adaptation 77 |
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| 116 | | - | project, including such project's operation, monitoring and 78 |
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| 117 | | - | maintenance; 79 |
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| 118 | | - | (21) "Responsible party" means any entity or a successor in interest to 80 |
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| 119 | | - | an entity that during any part of the covered period was engaged in the 81 |
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| 120 | | - | trade or business of extracting fossil fuel or refining crude oil and that 82 |
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| 121 | | - | is determined by the department to be attributable for more than one 83 |
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| 122 | | - | billion metric tons of covered greenhouse gas emissions during the 84 |
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| 123 | | - | covered period. "Responsible party" does not include any person who 85 |
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| 124 | | - | lacks sufficient connection with the state to satisfy the nexus 86 |
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| 125 | | - | requirements of the Constitution of the United States; and 87 |
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| 126 | | - | (22) "Strategy" means the resilience implementation strategy adopted 88 |
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| 127 | | - | by the department. 89 |
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| 128 | | - | (b) There is established the Climate Superfund Cost Recovery 90 |
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| 129 | | - | Program administered by the Department of Energy and Environmental 91 |
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| 130 | | - | Protection. The purpose of the program shall be to: (1) Secure 92 |
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| 131 | | - | compensatory payments from responsible parties based on a standard 93 |
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| 132 | | - | of strict liability to provide a source of revenue for climate change 94 |
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| 133 | | - | adaptation projects within the state, (2) determine proportional liability 95 |
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| 134 | | - | of responsible parties, (3) impose cost recovery demands on responsible 96 |
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| 135 | | - | parties and issue notices of cost recovery demands, (4) accept and collect 97 |
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| 136 | | - | payment from responsible parties, (5) develop, adopt, implement and 98 |
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| 137 | | - | update the strategy that will identify and prioritize climate change 99 |
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| 138 | | - | adaptation projects, and (6) disperse funds to implement climate change 100 |
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| 139 | | - | adaptation projects identified in the strategy. 101 |
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| 140 | | - | (c) Each responsible party shall be strictly liable for a share of the costs 102 |
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| 141 | | - | of climate change adaptation projects and all qualifying expenditures 103 |
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| 142 | | - | supported by the fund. For purposes of this section, entities in a 104 |
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| 143 | | - | Committee Bill No. 6280 |
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| 144 | | - | |
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| 145 | | - | |
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| 146 | | - | LCO No. 4800 5 of 10 |
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| 147 | | - | |
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| 148 | | - | controlled group shall be: (1) Treated by the department as a single 105 |
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| 149 | | - | entity for the purpose of identifying responsible parties; and (2) jointly 106 |
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| 150 | | - | and severally liable for payment of any cost recovery demand owed by 107 |
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| 151 | | - | any entity in the controlled group. For any responsible party, the cost 108 |
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| 152 | | - | recovery demand shall be equal to an amount that bears the same ratio 109 |
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| 153 | | - | to the cost to the state and the state's residents, as calculated by the State 110 |
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| 154 | | - | Treasurer pursuant to this section, from the emission of covered 111 |
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| 155 | | - | greenhouse gases during the covered period as the responsible party's 112 |
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| 156 | | - | applicable share of covered greenhouse gas emissions bears to the 113 |
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| 157 | | - | aggregate applicable shares of covered greenhouse gas emissions 114 |
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| 158 | | - | resulting from the use of fossil fuels extracted or refined during the 115 |
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| 159 | | - | covered period. If a responsible party owns a minority interest of ten per 116 |
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| 160 | | - | cent or more in another entity, the responsible party's applicable share 117 |
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| 161 | | - | of covered greenhouse gas emissions shall be increased by the 118 |
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| 162 | | - | applicable share of covered greenhouse gas emissions for the entity in 119 |
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| 163 | | - | which the responsible party holds a minority interest multiplied by the 120 |
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| 164 | | - | percentage of the minority interest held by the responsible party. The 121 |
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| 165 | | - | department shall use the United States Environmental Protection 122 |
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| 166 | | - | Agency's Emissions Factors for Greenhouse Gas Inventories as applied 123 |
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| 167 | | - | to the fossil fuel volume data for the purpose of determining the amount 124 |
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| 168 | | - | of covered greenhouse gas emissions attributable to any entity from the 125 |
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| 169 | | - | fossil fuels attributable to the entity. 126 |
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| 170 | | - | (d) The department may adjust the cost recovery demand amount of 127 |
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| 171 | | - | a responsible party who refined petroleum products or who is a 128 |
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| 172 | | - | successor in interest to an entity that refines petroleum products if the 129 |
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| 173 | | - | responsible party establishes to the satisfaction of the department that: 130 |
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| 174 | | - | (1) A portion of the cost recovery demand amount was attributable to 131 |
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| 175 | | - | the refining of crude oil extracted by another responsible party, and (2) 132 |
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| 176 | | - | the crude oil extracted by the other entity was accounted for when the 133 |
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| 177 | | - | department determined the cost recovery demand amount for the other 134 |
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| 178 | | - | entity or a successor in interest of the other entity. 135 |
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| 179 | | - | (e) The department shall issue the cost recovery demands required 136 |
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| 180 | | - | under this section not later than six months following the adoption of 137 |
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| 181 | | - | Committee Bill No. 6280 |
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| 182 | | - | |
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| 183 | | - | |
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| 184 | | - | LCO No. 4800 6 of 10 |
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| 185 | | - | |
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| 186 | | - | the regulations required pursuant to this section. 138 |
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| 187 | | - | (f) (1) Except as provided in subdivision (2) of this subsection, a 139 |
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| 188 | | - | responsible party shall pay the cost recovery demand amount in full not 140 |
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| 189 | | - | later than six months following the department's issuance of the cost 141 |
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| 190 | | - | recovery demand. 142 |
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| 191 | | - | (2) A responsible party may elect to pay the cost recovery demand 143 |
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| 192 | | - | amount in nine annual installments in accordance with this subdivision, 144 |
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| 193 | | - | provided the first installment shall be paid not later than six months 145 |
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| 194 | | - | following the department's issuance of the cost recovery demand and 146 |
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| 195 | | - | shall be equal to twenty per cent of the total cost recovery demand 147 |
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| 196 | | - | amount. Each subsequent installment shall be paid one year from the 148 |
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| 197 | | - | initial payment each subsequent year and shall be equal to ten per cent 149 |
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| 198 | | - | of the total cost recovery demand amount. The department may charge 150 |
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| 199 | | - | reasonable interest on each installment payment or a payment delayed 151 |
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| 200 | | - | for any other reason and may adjust the amount of a subsequent 152 |
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| 201 | | - | installment payment or a payment delayed for any other reason to 153 |
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| 202 | | - | reflect increases or decreases in the consumer price index. The unpaid 154 |
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| 203 | | - | balance of all remaining installments shall become due immediately if: 155 |
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| 204 | | - | (A) The responsible party fails to pay any installment in a timely 156 |
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| 205 | | - | manner, as specified in regulations adopted pursuant to this section; (B) 157 |
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| 206 | | - | there is a liquidation or sale of substantially all the assets of the 158 |
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| 207 | | - | responsible party; or (C) the responsible party ceases to do business. In 159 |
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| 208 | | - | the case of a sale of substantially all the assets of a responsible party, the 160 |
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| 209 | | - | remaining installments shall not become due immediately if the buyer 161 |
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| 210 | | - | enters into an agreement with the department under which the buyer 162 |
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| 211 | | - | assumes liability for the remaining installments due under this 163 |
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| 212 | | - | subdivision in the same manner as if the buyer were the responsible 164 |
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| 213 | | - | party. 165 |
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| 214 | | - | (g) The department shall deposit cost recovery payments collected 166 |
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| 215 | | - | under this section in the Climate Superfund Cost Recovery Program 167 |
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| 216 | | - | Fund established pursuant to this section. 168 |
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| 217 | | - | (h) Any responsible party aggrieved by the issuance of a notice of cost 169 |
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| 218 | | - | Committee Bill No. 6280 |
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| 219 | | - | |
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| 220 | | - | |
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| 221 | | - | LCO No. 4800 7 of 10 |
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| 222 | | - | |
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| 223 | | - | recovery demand shall exhaust administrative remedies by filing a 170 |
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| 224 | | - | request for reconsideration with the department not later than thirty 171 |
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| 225 | | - | days following issuance of the notice of cost recovery demand. A 172 |
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| 226 | | - | request for reconsideration shall state grounds for the request and 173 |
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| 227 | | - | include supporting documentation. The department shall notify the 174 |
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| 228 | | - | responsible party of the final decision by issuing a subsequent notice of 175 |
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| 229 | | - | cost recovery demand. A responsible party aggrieved by the issuance of 176 |
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| 230 | | - | a final notice of cost recovery demand may bring an action in the 177 |
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| 231 | | - | Superior Court. 178 |
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| 232 | | - | (i) There is created the Climate Superfund Cost Recovery Program 179 |
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| 233 | | - | Fund to be administered by the Commissioner of Energy and 180 |
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| 234 | | - | Environmental Protection to provide funding for climate change 181 |
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| 235 | | - | adaptation projects in the state. The fund shall consist of: (1) Cost 182 |
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| 236 | | - | recovery payments deposited in the fund pursuant to this section, (2) 183 |
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| 237 | | - | moneys from time to time appropriated to the fund by the General 184 |
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| 238 | | - | Assembly, and (3) other gifts, donations or other moneys received from 185 |
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| 239 | | - | any source, public or private, dedicated for deposit into the fund. 186 |
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| 240 | | - | (j) The fund may be used only: (1) To pay qualified expenditures for 187 |
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| 241 | | - | climate change adaptation projects identified by the department in the 188 |
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| 242 | | - | strategy, and (2) for reasonable administrative expenses of the program, 189 |
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| 243 | | - | including the cost to the state Auditors of Public Accounts associated 190 |
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| 244 | | - | with the hiring of technical expertise necessary to complete the audits 191 |
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| 245 | | - | required under this section. 192 |
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| 246 | | - | (k) On or before February 15, 2026, the department, in consultation 193 |
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| 247 | | - | with the State Treasurer, shall submit a report to the joint standing 194 |
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| 248 | | - | committee of the General Assembly having cognizance of matters 195 |
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| 249 | | - | relating to the environment detailing the feasibility and progress of 196 |
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| 250 | | - | carrying out the requirements of this section, including any 197 |
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| 251 | | - | recommendations for improving the administration of the program. 198 |
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| 252 | | - | (l) The department, in accordance with the provisions of chapter 54 199 |
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| 253 | | - | of the general statutes, shall adopt regulations necessary to implement 200 |
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| 254 | | - | the requirements of this section, including, but not limited to: (1) 201 |
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| 255 | | - | Committee Bill No. 6280 |
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| 256 | | - | |
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| 257 | | - | |
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| 258 | | - | LCO No. 4800 8 of 10 |
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| 259 | | - | |
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| 260 | | - | Adopting methodologies using available science and publicly available 202 |
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| 261 | | - | data to identify responsible parties and determine their applicable share 203 |
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| 262 | | - | of covered greenhouse gas emissions; (2) requirements for registering 204 |
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| 263 | | - | entities that are responsible parties and issuing notices of cost recovery 205 |
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| 264 | | - | demands under the program; and (3) the resilience implementation 206 |
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| 265 | | - | strategy, which shall include: (A) Practices utilizing nature-based 207 |
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| 266 | | - | solutions intended to stabilize floodplains, riparian zones, lake 208 |
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| 267 | | - | shoreland, wetlands and similar lands, (B) practices to adapt 209 |
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| 268 | | - | infrastructure to the impacts of climate change, (C) practices needed to 210 |
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| 269 | | - | build out early warning mechanisms and support fast, effective 211 |
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| 270 | | - | response to climate-related threats, (D) practices that support economic 212 |
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| 271 | | - | and environmental sustainability in the face of changing climate 213 |
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| 272 | | - | conditions, and (E) criteria and procedures for prioritizing climate 214 |
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| 273 | | - | change adaptation projects eligible to receive moneys from the program. 215 |
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| 274 | | - | (m) In adopting the strategy, the department shall: (1) Consult with 216 |
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| 275 | | - | other state agencies and departments to assess the adaptation needs and 217 |
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| 276 | | - | vulnerabilities of various areas vital to the state's economy, normal 218 |
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| 277 | | - | functioning and the health and well-being of residents of the state; (2) 219 |
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| 278 | | - | identify major potential, proposed and ongoing climate change 220 |
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| 279 | | - | adaptation projects throughout the state; (3) identify opportunities for 221 |
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| 280 | | - | alignment with existing federal, state and local funding streams; (4) 222 |
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| 281 | | - | consult with stakeholders, including local governments, businesses, 223 |
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| 282 | | - | environmental advocates, relevant subject area experts and 224 |
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| 283 | | - | representatives of environmental justice communities; and (5) conduct 225 |
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| 284 | | - | public engagement in areas and communities that have the most 226 |
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| 285 | | - | significant exposure to the impacts of climate change, including 227 |
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| 286 | | - | disadvantaged, low-income and rural communities and areas. 228 |
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| 287 | | - | (n) Beginning on January 1, 2031, and every five years thereafter, the 229 |
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| 288 | | - | state Auditors of Public Accounts shall evaluate the operation and 230 |
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| 289 | | - | effectiveness of the Climate Superfund Cost Recovery Program. The 231 |
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| 290 | | - | auditors shall make recommendations to the department on ways to 232 |
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| 291 | | - | increase program efficacy and cost-effectiveness. The auditors shall 233 |
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| 292 | | - | submit the results of the audit to the joint standing committee of the 234 |
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| 293 | | - | Committee Bill No. 6280 |
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| 294 | | - | |
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| 295 | | - | |
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| 296 | | - | LCO No. 4800 9 of 10 |
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| 297 | | - | |
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| 298 | | - | General Assembly having cognizance of matters relating to the 235 |
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| 299 | | - | environment. The auditors shall be reimbursed from the fund for any 236 |
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| 300 | | - | costs associated with hiring technical expertise necessary to complete 237 |
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| 301 | | - | the audits required under this section. 238 |
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| 302 | | - | (o) On or before January 1, 2027, the State Treasurer, after 239 |
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| 303 | | - | consultation with the department for the purpose of obtaining and 240 |
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| 304 | | - | utilizing credible data or methodologies that the Treasurer determines 241 |
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| 305 | | - | may aid in making the assessments and estimates required by this 242 |
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| 306 | | - | section, shall submit to the joint standing committee of the General 243 |
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| 307 | | - | Assembly having cognizance of matters relating to the environment an 244 |
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| 308 | | - | assessment of the cost to the state and its residents of the emission of 245 |
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| 309 | | - | covered greenhouse gases for the period that began on January 1, 1995, 246 |
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| 310 | | - | and ended on December 31, 2025. The assessment shall include: (1) A 247 |
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| 311 | | - | summary of the various cost-driving effects of covered greenhouse gas 248 |
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| 312 | | - | emissions on the state, including effects on public health, natural 249 |
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| 313 | | - | resources, biodiversity, agriculture, economic development, flood 250 |
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| 314 | | - | preparedness and safety, housing and any other effect that the 251 |
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| 315 | | - | Treasurer, in consultation with the department, determines is relevant, 252 |
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| 316 | | - | (2) a categorized calculation of the costs that have been incurred and are 253 |
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| 317 | | - | projected to be incurred in the future within the state for each of the 254 |
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| 318 | | - | effects identified under subdivision (1) of this subsection, and (3) a 255 |
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| 319 | | - | categorized calculation of the costs that have been incurred and are 256 |
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| 320 | | - | projected to be incurred in the future within the state to abate the effects 257 |
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| 321 | | - | of covered greenhouse gas emissions between January 1, 1995, and 258 |
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| 322 | | - | December 31, 2025, on the state and its residents. 259 |
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| 323 | | - | This act shall take effect as follows and shall amend the following |
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| 324 | | - | sections: |
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| 325 | | - | |
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| 326 | | - | Section 1 July 1, 2025 New section |
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| 327 | | - | |
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| 28 | + | That the general statutes be amended to establish a climate change 1 |
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| 29 | + | superfund that is funded by costs recovered from companies that have 2 |
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| 30 | + | contributed significantly to climate change and that is used for the 3 |
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| 31 | + | purpose of funding climate mitigation, resiliency and adaptation 4 |
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| 32 | + | projects. 5 |
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