LCO 1 of 7 General Assembly Substitute Bill No. 6868 January Session, 2025 AN ACT ENHANCING ENVIRONMENTAL PERMITTING PREDICTABILITY. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 22a-6aa of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective October 1, 2025): 2 The Commissioner of Energy and Environmental Protection may 3 continue in effect any general permit issued by the commissioner 4 pursuant to the provisions of this title [for a period of twelve months 5 beyond the expiration date for such permit] until a new general permit 6 is issued, or the commissioner makes a determination not to issue a new 7 general permit, provided the commissioner publishes notice, not later 8 than one hundred eighty days prior to the expiration date of such 9 general permit of the intent to renew such general permit in accordance 10 with any applicable provision of this title. Any such general permit 11 continued in effect beyond its expiration date shall remain in effect until 12 the commissioner makes a final decision on the renewal of such general 13 permit, in accordance with the provisions of this title. [, provided such 14 final decision is made on or before the twelfth month after the expiration 15 date. If no final decision is made within such time period, such general 16 permit shall expire.] The commissioner may require the remittance of a 17 registration fee in an amount not to exceed the existing registration fee 18 for such general permit whenever a general permit is continued in effect 19 Substitute Bill No. 6868 LCO 2 of 7 beyond its expiration date in accordance with the provisions of this 20 section. Nothing in this section shall affect the obligation of any person 21 to register for a general permit pursuant to the provisions of this title in 22 a timely fashion or to comply with any general permit issued by the 23 commissioner pursuant to the provisions of this title. 24 Sec. 2. (NEW) (Effective July 1, 2025) (a) (1) Notwithstanding the 25 provisions of chapters 440 and 444 of the general statutes and sections 26 22a-361 and 22a-363b of the general statutes, the Commissioner of 27 Energy and Environmental Protection may require, as a condition of any 28 permit issued pursuant to section 22a-32, 22a-42, 22a-361 or 22a-363b of 29 the general statutes, or as a condition of any certification regarding 30 water quality pursuant to 33 USC 1341, watershed-level compensatory 31 mitigation to offset impacts to water resources caused by any regulated 32 activity (A) that is authorized under permit actions and conducted by 33 any department, agency or instrumentality of the state, except any local 34 or regional board of education, or (B) that is authorized under permit 35 actions for activities within the public trust, including, but not limited 36 to, impacts to inland wetlands and watercourses, tidal wetlands and 37 coastal waters. 38 (2) The commissioner may include conditions for any license or 39 certification referenced in subsection (a) of this section only if the 40 commissioner determines that the applicant has demonstrated that: (A) 41 It is not prudent to further minimize impacts of the regulated activity, 42 and (B) for licensees or certificates that authorize actions for activities 43 within the public trust, the commissioner additionally determines that 44 the applicant has demonstrated that the watershed-level mitigation 45 project will provide substantial public benefit. 46 (3) The commissioner may enter into any contract or agreement with 47 any contractor, state agency or federal agency in order to implement the 48 provisions of this section. 49 (b) Provided the requirements of subdivision (2) of subsection (a) of 50 this section are met, the commissioner may require one or both of the 51 Substitute Bill No. 6868 LCO 3 of 7 following actions by the permittee: (1) The purchasing of resource 52 credits to provide compensation, in an amount established by the 53 commissioner, to fund compensatory mitigation projects, or (2) 54 participation in a compensatory mitigation project in lieu of a fee 55 program or mitigation bank that has been approved for use by the 56 United States Army Corps of Engineers and the Department of Energy 57 and Environmental Protection. 58 (c) Any land purchase, conservation easement or other protective 59 instrument used as a compensatory mitigation project pursuant to this 60 section shall be held by a third party, unless the commissioner 61 determines it is in the interest of the state for the state to hold the asset. 62 All lands or interests in land acquired pursuant to this section shall be 63 preserved in perpetuity for the protection of the wetland and 64 hydrological functioning. 65 (d) Any watershed-level mitigation project pursued in accordance 66 with this section shall create, restore or enhance the same or similar 67 types of water resource to be impacted by the regulated activity and 68 such compensation shall be proportional to the impacts caused by the 69 proposed regulated activity. 70 (e) All watershed-level compensation resources acquired pursuant to 71 this section shall be adequately protected, in perpetuity, to protect the 72 water resources subject to mitigation under this section. 73 (f) (1) The commissioner shall issue, and may periodically reissue, a 74 request for proposals for contractors who will develop a watershed-75 level mitigation program. Any such selected contractor shall be 76 responsible for identifying potential watershed-level mitigation project 77 locations for the commissioner's approval and performing wetland and 78 water resource creation, restoration or enhancement projects, including 79 providing for such project's long-term management. The request for 80 proposals may include any elements necessary for operation of the 81 watershed-level mitigation program, as determined by the 82 commissioner. In evaluating contractors for selection under any such 83 Substitute Bill No. 6868 LCO 4 of 7 request for proposals, the commissioner shall evaluate contractor 84 qualifications that include, but are not limited to, sufficient financial 85 resources to monitor and maintain any mitigation project for the 86 appropriate time periods and sufficient and reliable demonstration of 87 financial controls to administer the accounts necessary to conduct, 88 monitor and maintain any such projects. The commissioner may select 89 one or more contractors to carry out the purposes of this section. 90 (2) Any contractor selected pursuant to subdivision (1) of this 91 subsection shall seek the commissioner's approval for any project 92 location or scope before initiating such a compensatory mitigation 93 project. 94 (3) Each such contractor may accept other federal, state or private 95 funding for such projects in order to enhance or expand the 96 compensatory mitigation project. 97 Sec. 3. (NEW) (Effective from passage) (a) The Commissioner of Energy 98 and Environmental Protection shall prepare a report that evaluates 99 potential improvements to environmental reviews undertaken 100 pursuant to the state Endangered Species Act. Such report shall include: 101 (1) Recommendations for improvements to the processing of such 102 environmental reviews that will increase the efficiency, transparency, 103 and predictability of such reviews, (2) an assessment of similar 104 environmental review programs in other states, (3) recommendations 105 concerning qualifications and proficiencies of third-party consultants 106 that prepare mitigation plans and other materials required by the 107 Department of Energy and Environmental Protection's Natural 108 Diversity Data Base review process, (4) a description of the required 109 components of a Natural Diversity Data Base review request, (5) the 110 outcomes of a stakeholder engagement process that compiles public 111 opinions on Natural Diversity Data Base review program 112 improvements, and (6) a prioritized list of additional scientific and 113 communications resources that would increase the efficiency and 114 predictability of the environmental review process. 115 Substitute Bill No. 6868 LCO 5 of 7 (b) The commissioner may, within existing resources, hire a 116 consultant to assist in preparing the report or portions thereof. 117 (c) Not later than February 1, 2026, the commissioner shall submit 118 said report, in accordance with the provisions of section 11-4a of the 119 general statutes, to the joint standing committee of the General 120 Assembly having cognizance of matters relating to the environment and 121 shall post said report on the Department of Energy and Environmental 122 Protection's Internet web site. 123 Sec. 4. (NEW) (Effective from passage) (a) For any license, as defined in 124 section 4-166 of the general statutes, that requires a hearing upon receipt 125 of a petition by the Commissioner of Energy and Environmental 126 Protection pursuant to any provision of title 22a of the general statutes 127 or section 25-68d of the general statutes, or the regulations of 128 Connecticut state agencies under the authority of the Department of 129 Energy and Environmental Protection, such hearing shall be a public 130 informational hearing and shall not be subject to the requirements of 131 chapter 54 of the general statutes unless such petition alleges 132 aggrievement or unreasonable pollution, impairment or destruction of 133 the public trust in accordance with the provisions of subsection (b) of 134 this section. At such public informational hearing, the Commissioner of 135 Energy and Environmental Protection shall accept written and verbal 136 comments regarding the license that is the subject of such informational 137 hearing. Before issuing any final decision on a license that is the subject 138 of such a public informational hearing, the commissioner shall respond 139 to comments received at such informational hearing by posting a 140 written response on the Department of Energy and Environmental 141 Protection's Internet web site. 142 (b) For purposes of subsection (a) of this section, a petition alleges 143 aggrievement or unreasonable pollution, impairment or destruction of 144 the public trust if the petition sets forth specific facts that: (1) 145 Demonstrate that the legal rights, duties or privileges of at least one 146 person who signed the petition will be, or may reasonably be expected 147 to be, affected by the decision, or (2) allege that the proceeding involves 148 Substitute Bill No. 6868 LCO 6 of 7 conduct that has, or is reasonably likely to have, the effect of 149 unreasonably polluting, impairing or destroying the public trust in the 150 air, water or other natural resources of the state. The commissioner shall 151 provide a copy of any such petition to the person seeking such license 152 not later than ten business days after receipt of such petition. Such 153 person may object to such petition on the basis that such petition fails to 154 contain the specific factual demonstration required by this subsection. 155 Not later than thirty days after a petition is submitted pursuant to 156 subsection (a) of this subsection that purports to allege aggrievement or 157 unreasonable pollution or destruction of such public trust, the 158 commissioner shall determine whether the petition satisfies the 159 requirements of this section and send notice of such determination, in 160 writing, to the person seeking such license. If such petition request is 161 granted by the commissioner, the petitioner shall be granted intervening 162 party status and a hearing shall be held pursuant to the requirements of 163 chapter 54 of the general statutes. 164 (c) No provision of subsection (a) or (b) of this section shall be 165 construed to require a public informational hearing or contested case 166 hearing in lieu of the public hearing prerequisites established in 167 subdivisions (1) and (2) of subsection (b) of section 22a-32 of the general 168 statutes, subdivisions (2) and (3) of subsection (k) of section 22a-39 of 169 the general statutes, subdivisions (2) and (3) of subsection (b) of section 170 22a-361 of the general statutes or subdivisions (3) and (4) of subsection 171 (d) of section 25-68d of the general statutes. 172 (d) No provision of this section shall be construed to prevent the 173 commissioner from holding a hearing prior to approving or denying 174 any application if the commissioner determines that the public interest 175 will be best served by holding a hearing and if another provision of the 176 general statutes provides the commissioner the discretion to hold such 177 a hearing. Any hearing held pursuant to this subsection shall not be 178 subject to the requirements of chapter 54 of the general statutes. 179 Substitute Bill No. 6868 LCO 7 of 7 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2025 22a-6aa Sec. 2 July 1, 2025 New section Sec. 3 from passage New section Sec. 4 from passage New section Statement of Legislative Commissioners: In Section 4(c), reference to section "25-68" was changed to "25-68d", for accuracy. ENV Joint Favorable Subst. -LCO