LCO 1 of 28 General Assembly Substitute Bill No. 4 January Session, 2025 AN ACT CONCERNING ENERGY AFFORDABILITY, ACCESS AND ACCOUNTABILITY. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 22a-136 of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective October 1, 2025): 2 (a) As used in this section: (1) "Advanced nuclear reactor" has the 3 same meaning as provided in 42 USC 16271, as amended from time to 4 time, and (2) "high level nuclear waste" means those aqueous wastes 5 resulting from the operation of the first cycle of the solvent extraction 6 system or equivalent and the concentrated wastes of the subsequent 7 extraction cycles or equivalent in a facility for reprocessing irradiated 8 reactor fuel and includes spent fuel assemblies prior to fuel 9 reprocessing. 10 (b) No construction shall commence on a [fifth] new nuclear power 11 facility [until the] in the state unless: 12 (1) The Commissioner of Energy and Environmental Protection finds 13 that the United States Government, through its authorized agency, has 14 identified and approved a demonstrable technology or means for the 15 disposal of high level nuclear waste; [. The provisions of this section 16 shall not apply to construction at any nuclear power generating facility 17 Substitute Bill No. 4 LCO 2 of 28 operating in the state as of October 1, 2022. As used in this section, "high 18 level nuclear waste" means those aqueous wastes resulting from the 19 operation of the first cycle of the solvent extraction system or equivalent 20 and the concentrated wastes of the subsequent extraction cycles or 21 equivalent in a facility for reprocessing irradiated reactor fuel and shall 22 include spent fuel assemblies prior to fuel reprocessing.] 23 (2) The nuclear power facility is proposed to be sited at a nuclear 24 power generating facility operating in the state as of October 1, 2022; or 25 (3) The construction is for an advanced nuclear reactor facility and 26 (A) such facility is sited in a municipality that has consented to such 27 facility's development through the affirmative vote of such 28 municipality's legislative body or a referendum held in such 29 municipality, and (B) any additional municipality within the emergency 30 planning zone, as determined by the Nuclear Regulatory Commission, 31 of the proposed facility consents to such facility's development through 32 the affirmative vote of such municipality's legislative body or a 33 referendum held in such municipality. 34 (c) The entity proposing such new nuclear power facility, including 35 advanced nuclear reactors, shall obtain all permits, licenses, permissions 36 or approvals governing the construction, operation and funding of 37 decommissioning of such nuclear power facility as required by: (1) Any 38 applicable federal statutes, including, but not limited to, the Atomic 39 Energy Act of 1954, the Energy Reorganization Act of 1974, the Low-40 Level Radioactive Waste Policy Amendments Act of 1985 and the 41 Energy Policy Act of 1992, as amended from time to time; (2) any 42 regulations promulgated or enforced by the United States Nuclear 43 Regulatory Commission, including, but not limited to, those codified at 44 Title X, Parts 20, 30, 40, 50, 52, 53, 70 and 72 of the Code of Federal 45 Regulations, as amended from time to time; and (3) any other federal or 46 state statute, rule or regulation governing the permitting, licensing, 47 construction, operation or decommissioning of such facility. 48 Sec. 2. (NEW) (Effective July 1, 2025) (a) As used in this section, (1) 49 Substitute Bill No. 4 LCO 3 of 28 "eligible recipient" means (A) a regional governmental entity, 50 municipality, regional council of governments, public authority, state or 51 federally recognized tribe or municipal electric utility or cooperative 52 with a demonstrated interest in hosting advanced nuclear reactors or 53 offshore wind energy facilities, as determined by the Commissioner of 54 Energy and Environmental Protection, (B) a private entity partnering or 55 interested in partnering with said entities for the development of 56 advanced nuclear reactors or offshore wind energy facilities, or (C) an 57 institution of higher education in the state; and (2) "advanced nuclear 58 reactor" has the same meaning as provided in 42 USC 16271, as amended 59 from time to time. 60 (b) The Commissioner of Energy and Environmental Protection shall 61 establish a competitive advanced nuclear reactor and offshore wind 62 energy site readiness funding program. The commissioner may provide 63 funding through the program in the form of grants or loans to eligible 64 recipients in support of: 65 (1) Environmental and technical studies required for early site 66 permitting for advanced nuclear reactors or offshore wind energy 67 facilities; 68 (2) Local and regional infrastructure assessments to support the 69 development of advanced nuclear reactors or offshore wind energy 70 facilities; 71 (3) Community engagement and planning initiatives related to 72 hosting advanced nuclear reactors or offshore wind energy facilities; 73 and 74 (4) Other necessary expenses identified by the commissioner to 75 advance site readiness for advanced nuclear reactors or offshore wind 76 energy facilities. 77 (c) The commissioner may use bond funds authorized in support of 78 the program or federal funds allocated to the state in support of the 79 program established under this section. In the case of federal funds 80 Substitute Bill No. 4 LCO 4 of 28 allocated for such purposes, the commissioner may revise its advanced 81 nuclear reactor and offshore wind and energy site readiness grant 82 program criteria to be consistent with the requirements of the federal 83 funding program criteria. The commissioner may use said funds to hire 84 a technical consultant to support the implementation of this section. 85 Sec. 3. (NEW) (Effective July 1, 2025) (a) For the purposes described in 86 subsection (b) of this section, the State Bond Commission shall have the 87 power from time to time to authorize the issuance of bonds of the state 88 in one or more series and in principal amounts not exceeding in the 89 aggregate five million dollars. 90 (b) The proceeds of the sale of such bonds shall be used by the 91 Department of Energy and Environmental Protection for the purpose of 92 funding grants or loans through the advanced nuclear reactor and 93 offshore wind energy facility site readiness funding program 94 established pursuant to section 2 of this act. 95 Sec. 4. Subsection (a) of section 16a-102 of the general statutes is 96 repealed and the following is substituted in lieu thereof (Effective October 97 1, 2025): 98 (a) The Commissioner of Energy and Environmental Protection shall 99 coordinate all atomic development activities in the state. Said 100 commissioner or [his] the commissioner's designee shall (1) advise the 101 Governor with respect to atomic industrial development within the 102 state; (2) act as coordinator of the development and regulatory activities 103 of the state relating to the industrial and commercial uses of atomic 104 energy; (3) act as the Governor's designee in matters relating to atomic 105 energy, including participation in the activities of any committee 106 formed by the New England states to represent their interests in such 107 matters and also cooperation with other states and with the government 108 of the United States; (4) coordinate the studies, recommendations and 109 proposals of the several departments and agencies of the state required 110 by section 16a-103 with each other and also with the programs and 111 activities of the development commission; and (5) act as a point of 112 Substitute Bill No. 4 LCO 5 of 28 contact for public and private stakeholders to assist in compliance with 113 federal, state and local requirements relevant to atomic development, 114 including, but not limited to, siting considerations and permitting 115 requirements. The commissioner shall consult with and review 116 regulations and procedures of the agencies of the state with respect to 117 the regulation of sources of radiation to assure consistency and to 118 prevent unnecessary duplication, inconsistencies or gaps in regulatory 119 requirements. 120 Sec. 5. Section 16a-3j of the general statutes is repealed and the 121 following is substituted in lieu thereof (Effective October 1, 2025): 122 (a) In order to secure cost-effective resources to provide more reliable 123 electric or gas service for the benefit of the state's electric ratepayers and 124 to meet the state's energy and environmental goals and policies 125 established in the Integrated Resources Plan, pursuant to section 16a-3a, 126 and the Comprehensive Energy Strategy, pursuant to section 16a-3d, the 127 Commissioner of Energy and Environmental Protection, in consultation 128 with the procurement manager identified in subsection (l) of section 16-129 2, the Office of Consumer Counsel and the Attorney General, may, in 130 coordination with other states in the control area of the regional 131 independent system operator, as defined in section 16-1, or on behalf of 132 [Connecticut] the state alone, issue multiple solicitations for long-term 133 contracts from providers of resources described in subsections (b), (c) 134 and (d) of this section. 135 (b) In any solicitation for resources to reduce electric or gas demand 136 and improve resiliency and electric or gas grid reliability in the state, 137 issued pursuant to this subsection, the commissioner shall seek 138 proposals for (1) passive demand response measures, including, but not 139 limited to, energy efficiency, load management, and the state's 140 conservation and load management programs, pursuant to section 16-141 245m; [, that are capable, either singly or through aggregation, of 142 reducing electric demand by one megawatt or more;] and (2) Class I 143 renewable energy sources and Class III sources, as defined in section 16-144 1, provided any such project proposal is for a facility that has a 145 Substitute Bill No. 4 LCO 6 of 28 nameplate capacity rating of more than two megawatts and less than 146 twenty megawatts. The commissioner may also seek proposals for 147 energy storage systems, as defined in section 16-1, that are capable of 148 storing up to twenty megawatts of energy. Proposals pursuant to this 149 subsection shall not have a contract term exceeding twenty years. Each 150 electric distribution company, as defined in section 16-1, and gas 151 company, as defined in section 16-1, shall, in consultation with the 152 Energy Conservation Management Board established pursuant to 153 section 16-245m, assess whether the submission of a proposal for 154 passive and active demand response measures is feasible pursuant to 155 any solicitation issued pursuant to subdivision (1) of this subsection, 156 provided such proposal only includes electric or gas demand reductions 157 that are in addition to existing and projected demand reductions 158 obtained through the conservation and load management programs. 159 (c) In any solicitation issued pursuant to this subsection, the 160 commissioner shall seek proposals from (1) Class I renewable energy 161 sources, as defined in section 16-1, having a nameplate capacity rating 162 of twenty megawatts or more, and any associated transmission; and (2) 163 verifiable large-scale hydropower, as defined in section 16-1, and any 164 associated transmission. The commissioner may also seek proposals for 165 energy storage systems, as defined in section 16-1, having a nameplate 166 capacity rating of twenty megawatts or more. Proposals under this 167 subsection shall not have a contract term exceeding twenty years. In 168 soliciting Class I renewable energy sources, and any associated 169 transmission, pursuant to this subsection, the commissioner may, for the 170 purpose of balancing such Class I energy deliveries and improving the 171 economic viability of such proposals, also seek proposals for electricity 172 and capacity from Class II renewable energy sources, as defined in 173 section 16-1, and existing hydropower resources other than those 174 described under section 16-1, provided such resources are 175 interconnected to such associated transmission and are located in the 176 control area of the regional independent system operator or imported 177 into the control area of the regional independent system operator from 178 resources located in an adjacent regional independent system operator's 179 Substitute Bill No. 4 LCO 7 of 28 control area. 180 (d) In any solicitation for natural gas resources issued pursuant to this 181 subsection, the commissioner shall seek proposals for (1) interstate 182 natural gas transportation capacity, (2) liquefied natural gas, (3) 183 liquefied natural gas storage, and (4) natural gas storage, or a 184 combination of any such resources, provided such proposals provide 185 incremental capacity, gas, or storage that has a firm delivery capability 186 to transport natural gas to natural gas-fired generating facilities located 187 in the control area of the regional independent system operator. 188 Proposals under this subsection shall not have a contract term exceeding 189 a period of twenty years. 190 (e) The Commissioner of Energy and Environmental Protection, in 191 consultation with the procurement manager identified in subsection (l) 192 of section 16-2, the Office of Consumer Counsel and the Attorney 193 General, shall evaluate project proposals received under any solicitation 194 issued pursuant to subsection (b), (c) or (d) of this section, based on 195 factors including, but not limited to, (1) improvements to the reliability 196 of the electric system, including during winter peak demand; (2) 197 whether the benefits of the proposal outweigh the costs to ratepayers; 198 (3) fuel diversity; (4) the extent to which the proposal contributes to 199 meeting the requirements to reduce greenhouse gas emissions and 200 improve air quality in accordance with sections 16-245a, 22a-174 [,] and 201 22a-200a; (5) whether the proposal is in the best interest of ratepayers; 202 and (6) whether the proposal is aligned with the policy goals outlined 203 in the Integrated Resources Plan, pursuant to section 16a-3a, and the 204 Comprehensive Energy Strategy, pursuant to section 16a-3d, including, 205 but not limited to, environmental impacts. In conducting such 206 evaluation, the commissioner may also consider the extent to which 207 project proposals provide economic benefits for the state. In evaluating 208 project proposals received under any solicitation issued pursuant to 209 subsection (b), (c) or (d) of this section, the commissioner shall compare 210 the costs and benefits of such proposals relative to the expected or actual 211 costs and benefits of other resources eligible to respond to the other 212 procurements authorized pursuant to this section. 213 Substitute Bill No. 4 LCO 8 of 28 (f) The commissioner may hire consultants with expertise in 214 quantitative modeling of electric and gas markets, and physical gas and 215 electric system modeling, as applicable, to assist in implementing this 216 section, including, but not limited to, the evaluation of proposals 217 submitted pursuant to this section. All reasonable costs, not exceeding 218 one million five hundred thousand dollars, associated with the 219 commissioner's solicitation and review of proposals pursuant to this 220 section shall be recoverable through the nonbypassable federally 221 mandated congestion charge, as defined in subsection (a) of section 16-222 1. Such costs shall be recoverable even if the commissioner does not 223 select any proposals pursuant to solicitations issued pursuant to this 224 section. 225 (g) If the commissioner finds proposals received pursuant to this 226 section to be in the best interest of [electric] ratepayers, in accordance 227 with the provisions of subsection (e) of this section, the commissioner 228 may select any such proposal or proposals, provided the total capacity 229 of the resources selected under all solicitations issued pursuant to this 230 section in the aggregate do not exceed three hundred seventy-five 231 million cubic feet per day of natural gas capacity, or the equivalent 232 megawatts of electricity, electric demand reduction or combination 233 thereof. Any proposals selected pursuant to subsections (b) and (c) of 234 this section shall not, in the aggregate, exceed ten per cent of the load 235 distributed by the state's electric distribution companies or ten per cent 236 of the load distributed by the state's gas companies. The commissioner 237 may, on behalf of all customers of electric distribution companies, direct 238 the electric distribution companies to enter into long-term contracts for 239 active or passive demand response measures that result in electric 240 savings, electricity time-of-use shifts, electricity, electric capacity, 241 environmental attributes, energy storage, interstate natural gas 242 transportation capacity, liquefied natural gas, liquefied natural gas 243 storage [,] and natural gas storage, or any combination thereof, from 244 proposals submitted pursuant to this section, provided the benefits of 245 such contracts to customers of electric distribution companies outweigh 246 the costs to such companies' customers. The commissioner may, on 247 Substitute Bill No. 4 LCO 9 of 28 behalf of the customers of gas companies, direct the gas companies to 248 enter into long-term contracts for active or passive demand response 249 measures that result in gas savings or time-of-use shifts from proposals 250 submitted pursuant to this section, provided the benefits of such 251 contracts to customers of gas companies outweigh the costs to such 252 companies' customers. 253 (h) Any agreement entered into pursuant to this section shall be 254 subject to review and approval by the Public Utilities Regulatory 255 Authority. The electric distribution company or gas company shall file 256 an application for the approval of any such agreement with the 257 authority. The authority shall approve such agreement if it is cost 258 effective and in the best interest of electric or gas ratepayers. The 259 authority shall issue a decision not later than ninety days after such 260 filing. If the authority does not issue a decision within ninety days after 261 such filing, the agreement shall be deemed approved. When an electric 262 distribution company or gas company both apply for recovery of net 263 costs of the same such agreement, the authority shall determine which 264 net costs are attributable to each company. The net costs of any such 265 agreement, including costs incurred by the electric distribution 266 company or gas company under the agreement and reasonable costs 267 incurred by the electric distribution company in connection with the 268 agreement, shall be recovered on a timely basis through a fully 269 reconciling component of electric rates or gas rates for all customers of 270 the electric distribution company or gas company. Any net revenues 271 from the sale of products purchased in accordance with long-term 272 contracts entered into pursuant to this section shall be credited to 273 customers through the same fully reconciling rate component for all 274 customers of the contracting electric distribution company. For any 275 contract for interstate natural gas transportation capacity, liquefied 276 natural gas, liquefied natural gas storage or natural gas storage entered 277 into pursuant to this section, the electric distribution company may 278 contract with a gas supply manager to sell such interstate natural gas 279 transportation capacity, liquefied natural gas, liquefied natural gas 280 storage or natural gas storage, or a combination thereof, into the 281 Substitute Bill No. 4 LCO 10 of 28 wholesale markets at the best available price in a manner that meets all 282 applicable requirements pursuant to all applicable regulations of the 283 Federal Energy Regulatory Commission. 284 (i) Certificates issued by the New England Power Pool Generation 285 Information System for any Class I renewable energy source or Class III 286 source procured by an electric distribution company pursuant to this 287 section may be: (1) Sold into the New England Power Pool Generation 288 Information System renewable energy credit market to be used by any 289 electric supplier or electric distribution company to meet the 290 requirements of section 16-245a, so long as the revenues from such sale 291 are credited to electric distribution company customers as described in 292 this subsection; or (2) retained by the electric distribution company to 293 meet the requirements of section 16-245a. In considering whether to sell 294 or retain such certificates the company shall select the option that is in 295 the best interest of such company's ratepayers. 296 Sec. 6. Section 16a-3m of the general statutes is repealed and the 297 following is substituted in lieu thereof (Effective October 1, 2025): 298 (a) For the purposes of this section: 299 (1) "Best interest of ratepayers" means the benefits of a contract or 300 proposal outweigh the costs to electric ratepayers, based on whether the 301 delivered prices of sources included in such contract or proposal are less 302 than the forecasted price of energy and capacity, as determined by the 303 commissioner or the commissioner's designee, and based on a 304 consideration of the following factors, as determined by the 305 commissioner or the commissioner's designee: (A) Impacts on electric 306 system operations and reliability; (B) the extent to which such contract 307 or proposal will contribute to (i) the local sourcing requirement set by 308 the regional independent system operator, as defined in section 16-1, 309 and (ii) meeting the requirements to reduce greenhouse gas emissions 310 and improve air quality in accordance with sections 16-245a, 22a-174 311 and 22a-200a; (C) fuel diversity; and (D) whether the proposal is aligned 312 with the policy goals outlined in the Integrated Resources Plan 313 Substitute Bill No. 4 LCO 11 of 28 developed pursuant to section 16a-3a and the Comprehensive Energy 314 Strategy developed pursuant to section 16a-3d, including, but not 315 limited to, environmental impacts; and 316 (2) "Eligible nuclear power generating facility" means a nuclear 317 power generating facility that is located in the control area of the 318 regional independent system operator, as defined in section 16-1, and is 319 licensed to operate through January 1, 2030, or later. 320 (b) The Commissioner of Energy and Environmental Protection and 321 the Public Utilities Regulatory Authority shall (1) conduct an appraisal 322 regarding nuclear power generating facilities in accordance with 323 subsection (c) of this section, and (2) determine whether a solicitation 324 process for nuclear power generating facilities shall be conducted 325 pursuant to subsection (d) of this section. On or before February 1, 2018, 326 the commissioner and the authority shall report, in accordance with 327 section 11-4a, the results of the appraisal and the selection conducted 328 pursuant to subsection (d) of this section to the General Assembly. If the 329 General Assembly does not reject such results by a simple majority vote 330 in each house on or before March 1, 2018, such results shall be deemed 331 approved. 332 (c) The appraisal conducted pursuant to subdivision (1) of subsection 333 (b) of this section shall assess: (1) The current economic condition of 334 nuclear generating facilities located in the control area of the regional 335 independent system operator, as defined in section 16-1; (2) the 336 projected economic condition of nuclear power generating facilities 337 located in the control area of the regional independent system operator, 338 as defined in section 16-1; (3) the impact on the following considerations 339 if such nuclear power generating facilities retire before July 1, 2027: (A) 340 Electric markets, fuel diversity, energy security and grid reliability, (B) 341 the state's greenhouse gas emissions mandated levels established 342 pursuant to section 22a-200a, and (C) the state, regional and local 343 economy. 344 (d) After completing the appraisal, if the results of such appraisal 345 Substitute Bill No. 4 LCO 12 of 28 demonstrate that action is necessary, the commissioner shall act and 346 may issue one or more solicitations, in consultation with the 347 procurement manager identified in subsection (l) of section 16-2 and the 348 Office of Consumer Counsel established in section 16-2a, for zero-349 carbon electricity generating resources, including, but not limited to, 350 eligible nuclear power generating facilities, hydropower, Class I 351 renewable energy sources, as defined in section 16-1, and energy storage 352 systems, provided (1) the total annual energy output of any proposals 353 selected, in the aggregate, shall be not more than twelve million 354 megawatt hours of electricity, (2) any agreement entered into pursuant 355 to this subdivision with an eligible nuclear power generating facility or 356 hydropower shall be for a period of not less than three years and not 357 more than ten years, and (3) any agreement entered into pursuant to this 358 subdivision with Class I renewable energy sources, as defined in section 359 16-1, and energy storage systems shall be for a period of not more than 360 twenty years. On or before May 1, 2018, if the results of such appraisal 361 demonstrate that one or more solicitations pursuant to this subsection 362 are necessary, the commissioner shall initiate such solicitation process 363 pursuant to this subsection, in accordance with subsection (e) of this 364 section, provided any changes made, contracts entered into or 365 agreements entered into are in the best interest of ratepayers. 366 (e) (1) Any solicitation issued pursuant to subsection (d) of this 367 section for zero-carbon electricity generating resources, including, but 368 not limited to, eligible nuclear power generating facilities, hydropower, 369 Class I renewable energy sources, as defined in section 16-1, and energy 370 storage systems, shall be for resources delivered into the control area of 371 the regional independent system operator, as defined in section 16-1, 372 and any agreement entered into pursuant to subdivision (2) of this 373 subsection shall be in the best interest of ratepayers. If the commissioner 374 finds proposals received pursuant to such solicitations to be in the best 375 interest of ratepayers, the commissioner may select any such proposal 376 or proposals, provided (A) the total annual energy output of any 377 proposals selected, in the aggregate, shall be not more than twelve 378 million megawatt hours of electricity, (B) any agreement entered into 379 Substitute Bill No. 4 LCO 13 of 28 pursuant to this subdivision with an eligible nuclear power generating 380 facility or hydropower shall be for a period of not less than three years 381 and not more than ten years, and (C) any agreement entered into 382 pursuant to this subdivision with Class I renewable energy sources, as 383 defined in section 16-1, and energy storage systems shall be for a period 384 of not more than twenty years. 385 (2) If the commissioner has made the determination and finding 386 pursuant to subdivision (1) of this subsection, the commissioner shall, 387 on behalf of all customers of electric distribution companies, direct the 388 electric distribution companies to enter into agreements for energy, 389 capacity and any environmental attributes, or any combination thereof, 390 from proposals submitted pursuant to this subdivision. 391 (3) Any agreement entered into pursuant to subdivision (2) of this 392 subsection shall be subject to review and approval by the Public Utilities 393 Regulatory Authority. The electric distribution company shall file an 394 application for the approval of any such agreement with the authority. 395 The authority's review shall commence upon the filing of the signed 396 power purchase agreement with the authority. The authority shall 397 approve agreements that it determines (A) provide for the delivery of 398 adequate and reliable products and services, for which there is a clear 399 public need, at a just and reasonable price, (B) are prudent and cost 400 effective, and (C) that the respondent to the solicitation has the technical, 401 financial and managerial capabilities to perform pursuant to such 402 agreement. For any eligible nuclear power generating facility selected in 403 any solicitation described in subsection (g) of this section, the authority 404 shall require any such agreement to be conditioned upon the approval 405 of such a power purchase agreement or other agreement for energy, 406 capacity and any environmental attributes, or any combination thereof, 407 with such eligible nuclear power generating facility, in at least two other 408 states, by the applicable officials of such states or by electric utilities or 409 other entities designated by the applicable officials of such states. The 410 authority shall issue a decision not later than one hundred eighty days 411 after such filing. If the authority does not issue a decision within one 412 hundred eighty days after such filing, the agreement shall be deemed 413 Substitute Bill No. 4 LCO 14 of 28 approved. The net costs of any such agreement, including costs incurred 414 by the electric distribution company under the agreement and 415 reasonable costs incurred by the electric distribution company in 416 connection with the agreement, but excluding costs associated with the 417 provision of standard service pursuant to subsection (h) of this section, 418 shall be recovered on a timely basis through a nonbypassable fully 419 reconciling component of electric rates for all customers of the electric 420 distribution company. Any net revenues from the sale of products 421 purchased in accordance with long-term contracts entered into pursuant 422 to this subsection, except any such net revenues associated with the 423 provision of standard service pursuant to subsection (h) of this section, 424 shall be credited to customers through the same nonbypassable fully 425 reconciling rate component for all customers of the contracting electric 426 distribution company. 427 (f) Each person owning and operating a nuclear power generating 428 facility in the state shall pay a pro rata share of all reasonable costs 429 associated with the department's appraisal pursuant to subsection (c) of 430 this section, determination pursuant to subsection (d) of this section, 431 and actions taken pursuant to subsection (e) of this section in an amount 432 not to exceed one million dollars. 433 (g) Any solicitation issued pursuant to this section on or after July 1, 434 2024, for eligible nuclear power generating facilities shall be conducted 435 in coordination with two or more other states in the control area of the 436 regional independent system operator, as defined in section 16-1. The 437 commissioner may not direct any electric distribution company to enter 438 into an agreement with an eligible nuclear power generating facility 439 pursuant to this section unless the applicable officials of at least two 440 such states select a proposal for energy, capacity and any environmental 441 attributes, or any combination thereof, from an eligible nuclear power 442 generating facility in response to such coordinated solicitation. The 443 commissioner may revise the appraisal conducted pursuant to 444 subsections (b) and (c) of this section in a manner determined by the 445 commissioner and in furtherance of any such solicitation, at the 446 commissioner's discretion. 447 Substitute Bill No. 4 LCO 15 of 28 (h) (1) Notwithstanding the provisions of subsections (a) to (g), 448 inclusive, of this section, subsection (a) of section 16-244c and section 16-449 244m, an electric distribution company may request the procurement 450 manager of the Public Utilities Regulatory Authority to authorize such 451 company to use any portion of the energy, capacity or other energy 452 products, or any combination thereof, that such company purchases 453 from an eligible nuclear power generating facility pursuant to an 454 agreement entered into pursuant to subsection (e) of this section for the 455 purpose of providing electric generation services for standard service. 456 Not later than fifteen days after receiving such request, the procurement 457 manager shall, in consultation with the Office of Consumer Counsel, 458 approve or deny such request. The procurement manager may approve 459 such a request only if the procurement manager concludes that such 460 request is in the best interest of standard service customers. 461 (2) For any request that the procurement manager approves pursuant 462 to this subsection, the procurement manager shall establish: (A) The 463 time period during which such company shall use such energy, capacity 464 or other energy products to provide electric generation services for 465 standard service; (B) the quantity of energy, capacity or other energy 466 products that such company shall use to provide electric generation 467 services for standard service; and (C) the price that standard service 468 customers shall pay for such energy, capacity and other energy 469 products, provided the procurement manager may not establish a price 470 that is higher than the applicable price specified in the agreement that 471 such company entered into pursuant to subsection (e) of this section. 472 (3) If the procurement manager approves such request and 473 authorizes such company to use such portion of the energy, capacity or 474 other energy products to provide electric generation services for 475 standard service, the cost of such portion of energy, capacity or other 476 energy products shall be paid solely by standard service customers, in 477 accordance with the quantity and price established by the procurement 478 manager pursuant to subdivision (2) of this subsection. 479 (4) No person owning and operating a nuclear power generating 480 Substitute Bill No. 4 LCO 16 of 28 facility in the state shall pay any administrative costs associated with the 481 procurement manager's actions pursuant to this subsection. 482 (5) Nothing in this subsection or subsection (g) of this section shall be 483 construed to amend or alter the terms or conditions of any agreement 484 that an electric distribution company entered into pursuant to 485 subsection (e) of this section. 486 Sec. 7. (NEW) (Effective from passage) (a) For the purposes of this 487 section: 488 (1) "Utility-scale renewable thermal energy network" means 489 distribution infrastructure (A) established for the purpose of providing 490 thermal energy for space heating and cooling, domestic hot water 491 production, refrigeration, thermal energy storage or commercial and 492 industrial processes requiring heating or cooling, and (B) implemented 493 through interconnections between one or more renewable thermal 494 energy resources, which may be owned by multiple parties, and 495 between these resources and heat pumps in multiple buildings owned 496 by multiple parties; and 497 (2) "Renewable thermal energy" means (A) ambient heating or 498 cooling provided, absorbed or stored by geothermal well boreholes or 499 other noncombusting, non-fossil-fuel-consuming, nonnuclear thermal 500 resources, or (B) thermal energy otherwise lost to the atmosphere or 501 other environmental compartment as waste heat. 502 (b) Notwithstanding the provisions of title 16 of the general statutes, 503 not later than twelve months after the effective date of this section, the 504 Public Utilities Regulatory Authority shall initiate a proceeding to 505 establish a program for development of utility-scale renewable thermal 506 energy networks by gas companies, as defined in section 16-1 of the 507 general statutes. In establishing said program, the authority shall 508 develop parameters for such networks, procedures for filing proposals 509 for such networks and a standardized data collection system enabling 510 the authority and the public to track the status and performance of 511 utility-scale renewable thermal energy networks developed pursuant to 512 Substitute Bill No. 4 LCO 17 of 28 this section. 513 (c) The authority shall structure the utility-scale renewable thermal 514 energy network program in the best interest of ratepayers of public 515 service companies, as defined in section 16-1 of the general statutes. For 516 purposes of this section, a determination of the best interest of 517 ratepayers shall be based on an analysis of the reasonableness of the 518 size, scope, scale and character of the project and related budget and the 519 costs and benefits of the project, including, but not limited to: (1) 520 Avoided long-term energy and infrastructure investments in extending 521 or maintaining gas infrastructure; (2) the anticipated contribution of 522 such projects to alleviation of seasonal strains on the state's natural gas 523 supply and electric distribution system; (3) consumer protections and 524 benefits for end users of the project; (4) adherence to best practices 525 emerging from thermal energy network programs and project designs 526 developed in other states or elsewhere in the state; (5) potential for 527 accrual of capital and operational cost savings via interconnection with 528 other existing or future thermal energy networks; (6) improvements in 529 air quality in the buildings and neighborhood served by the project; and 530 (7) reductions in greenhouse gas emissions that contribute to achieving 531 the emissions reductions set forth in section 22a-200a of the general 532 statutes. The authority may approve a utility-scale renewable thermal 533 energy network proposal that meets the parameters established under 534 the program. 535 (d) The authority shall create a pilot component of the utility-scale 536 renewable thermal energy network program that requires each gas 537 company to file with the authority, for the authority's review and 538 approval, proposals for not less than one and not more than two pilot 539 projects for the development of utility-scale renewable thermal energy 540 networks that meet the program parameters established in subsection 541 (c) of this section. The authority shall review a proposal for a pilot 542 project based on the program parameters and on the basis of the 543 project's ability to provide insights into the potential for scaling up 544 future deployment of thermal energy networks in Connecticut, for 545 improving the performance of these networks and for bringing down 546 Substitute Bill No. 4 LCO 18 of 28 the cost of broader deployment of these networks. 547 (e) The authority shall require projects submitted to the utility-scale 548 renewable thermal energy network program for approval to include a 549 proposed rate structure for thermal energy services supplied to network 550 end users and consumer-protection plans for end users. The authority 551 may approve the proposed rate structure if the projected heating and 552 cooling costs for end users is not greater than the heating and cooling 553 costs the end users would be projected to incur if had they not 554 participated. 555 (f) The authority shall approve the recovery of prudent costs incurred 556 by a gas company for the development and construction of projects 557 approved pursuant to the utility-scale renewable thermal energy 558 program through a nonbypassable and fully reconciling component of 559 gas rates for all customers of the gas company. 560 (g) A gas company may meet its obligation under subsection (b) of 561 section 16-20 of the general statutes through a project approved by the 562 authority pursuant to this section. 563 (h) The authority shall ensure the transparency and validity of the 564 outcomes of the projects developed pursuant to this section through 565 third-party evaluation of the data the authority collects through its 566 standardized data collection requirement. 567 (i) Nothing in this section shall prohibit a municipality from 568 developing, owning or maintaining a utility-scale renewable thermal 569 energy network. 570 (j) As part of the utility-scale renewable thermal energy network 571 program, the authority shall establish a working group to study thermal 572 energy networks comprising representatives of the staffs of the 573 authority, the Department of Energy and Environmental Protection, the 574 Connecticut Green Bank, the gas and electric companies and 575 nongovernmental environmental organizations. 576 Substitute Bill No. 4 LCO 19 of 28 (k) As part of the utility-scale renewable thermal energy network 577 program, the authority shall, through the working group established 578 under subsection (j) of this section, undertake a study or studies 579 assessing the potential breadth of deployment of thermal energy 580 networks in the state. Such study shall address factors including, but not 581 limited to: (1) Technical feasibility; (2) economic feasibility, taking into 582 account the potential for (A) reduction in energy costs of the customer 583 that is the off-taker of the system; (B) reduction in network capital costs 584 as the scale of deployments increases; (C) reduction in capital and 585 operating costs as thermal energy networks are interconnected; (D) 586 avoided cost of expanding and maintaining portions of the gas-587 distribution system; (E) minimization of the cost of expanding the 588 electricity distribution system to facilitate increasing electrification of 589 thermal loads; (F) reduction in per-kilowatt-hour cost of supplying 590 electricity as more electricity is sold; (G) state and federal financial 591 incentives available; (H) employing and advancing the skills of gas-592 utility workers; (I) providing the gas utility companies a business model 593 not dependent on continued use of combustion of fossil fuels; and (J) 594 improvement of air quality; (3) deployment strategies to maximize the 595 scope, minimize the cost and equitably allocate the cost of thermal 596 energy networks, including systematic identification of significant 597 sources of waste heat across the state; (4) considerations regarding 598 deployment in (A) low and moderate income communities, (B) 599 environmental justice communities, (C) new residential and commercial 600 construction versus retrofitting existing residential and commercial 601 buildings, (D) urban versus rural communities, (E) areas with existing 602 gas service versus areas without, and (F) ownership and business 603 models; and (5) appropriate parameters for broader deployment in the 604 near and medium term, including site selection, network design, 605 interactions with, and impacts on, the gas and electricity distribution 606 systems, ratepayer protections, billing models, consumer protections, 607 data collection, community engagement and deployment in low and 608 moderate income communities and environmental justice communities. 609 Sec. 8. Section 16-32e of the general statutes is repealed and the 610 Substitute Bill No. 4 LCO 20 of 28 following is substituted in lieu thereof (Effective October 1, 2025): 611 (a) As used in this section, "emergency" means any (1) hurricane, 612 tornado, storm, flood, high water, wind-driven water, tidal wave, 613 tsunami, earthquake, volcanic eruption, landslide, mudslide, 614 snowstorm, drought or fire explosion, or (2) attack or series of attacks 615 by an enemy of the United States causing, or which may cause, 616 substantial damage or injury to civilian property or persons in the 617 United States in any manner by sabotage or by the use of bombs, 618 shellfire or atomic, radiological, chemical, bacteriological or biological 619 means or other weapons or processes. 620 (b) Not later than July 1, 2012, and every two years thereafter, each 621 public service company, as defined in section 16 -1, each 622 telecommunications company, as defined in section 16-1, that installs, 623 maintains, operates or controls poles, wires, conduits or other fixtures 624 under or over any public highway for the provision of 625 telecommunications service authorized by section 16-247c, each voice 626 over Internet protocol service provider, as defined in section 28-30b, and 627 each municipal utility furnishing electric, gas or water service shall file 628 with the Public Utilities Regulatory Authority, the Department of 629 Emergency Services and Public Protection and each municipality 630 located within the service area of the public service company, 631 telecommunications company, voice over Internet protocol service 632 provider or municipal utility an updated plan for restoring service 633 which is interrupted as a result of an emergency, except no such plan 634 shall be required of a public service company or municipal utility that 635 submits a water supply plan pursuant to section 25-32d. Plans filed by 636 public service companies and municipal utilities furnishing water shall 637 be prepared in accordance with the memorandum of understanding 638 entered into pursuant to section 4-67e. 639 (c) (1) Each company, provider or utility required to file a plan for 640 restoring service pursuant to subsection (b) of this section shall establish 641 an emergency service restoration planning committee to prepare such 642 plan. Not less than fifty per cent of the members of such committee shall 643 Substitute Bill No. 4 LCO 21 of 28 be line and restoration crew members employed by such company, 644 provider or utility. The balance of the members appointed to such 645 committee shall be appointed by such company, provider or utility. 646 (2) If line and restoration crew members employed by such company, 647 provider or utility are members of a collective bargaining unit, the 648 collective bargaining unit shall select the line and restoration crew 649 members appointed to such committee. If such line and restoration crew 650 members are not members of a collective bargaining unit, the line and 651 crew members appointed to such committee shall be selected through a 652 process determined by the line and crew members employed by such 653 company, provider or utility. 654 (3) A committee established pursuant to this subsection shall have 655 two cochairpersons, one of whom shall be a line and restoration crew 656 member employed by such company, provider or utility elected by the 657 members of the committee who are line and restoration crew members, 658 and one of whom shall be elected by the members of the committee who 659 are not line and restoration crew members. 660 (4) A committee established pursuant to this subsection shall take 661 minutes of each meeting, make such minutes available to any employee 662 of such company, provider or utility upon request and submit such 663 minutes to the Public Utilities Regulatory Authority and the 664 Department of Emergency Services and Public Protection upon request. 665 A majority of the members of the committee shall constitute a quorum 666 for the transaction of committee business. Decisions of the committee 667 shall be made by majority vote of the members present at any meeting. 668 (d) Each such plan for restoring service which is interrupted as a 669 result of an emergency shall include measures for (1) communication 670 and coordination with state officials, municipalities and other public 671 service companies and telecommunications companies during a major 672 disaster, as defined in section 28-1, or an emergency; [and] (2) 673 participation in training exercises as directed by the Commissioner of 674 Emergency Services and Public Protection; (3) measures to protect the 675 Substitute Bill No. 4 LCO 22 of 28 health and safety of line and restoration crews during an emergency and 676 during the restoration of service, including the provision of appropriate 677 personal protective equipment; (4) measures to protect the health and 678 safety of household and community members during an emergency and 679 during the restoration of service; and (5) a training and skills plan for 680 line and restoration workers. If line and restoration crew members are 681 members of a collective bargaining unit, such training and skills plan 682 shall be jointly developed by the company, provider or utility and such 683 collective bargaining unit. Each such plan shall include such company's, 684 provider's or municipal utility's response for service outages affecting 685 more than ten per cent, thirty per cent, fifty per cent and seventy per 686 cent of such company's, provider's or municipal utility's customers. On 687 or before September 1, 2012, and biannually thereafter, the authority 688 shall submit a report, in accordance with section 11-4a, to the joint 689 standing committee of the General Assembly having cognizance of 690 matters relating to public utilities summarizing such plans. Not later 691 than September 15, 2012, and every two years thereafter, the Public 692 Utilities Regulatory Authority may conduct public hearings on such 693 plans and, in consultation with the Department of Emergency Services 694 and Public Protection, the Department of Public Health and the joint 695 standing committee of the General Assembly having cognizance of 696 matters relating to public utilities, revise such plans to the extent 697 necessary to provide properly for the public convenience, necessity and 698 welfare. If the Public Utilities Regulatory Authority revises the 699 emergency plan of a public service company, telecommunications 700 company, voice over Internet protocol service provider or municipal 701 utility, such company, provider or municipal utility shall file a copy of 702 the revised plan with each municipality located within the service area 703 of the company, provider or municipal utility. Any information 704 provided in any such plan shall be considered confidential, not subject 705 to disclosure under the Freedom of Information Act, as defined in 706 section 1-200, and any such information shall not be transmitted to any 707 person except as needed to comply with this section. 708 [(c)] (e) At the discretion of the Commissioner of Emergency Services 709 Substitute Bill No. 4 LCO 23 of 28 and Public Protection or after an emergency or major disaster is declared 710 in the state by the Governor under the laws of this state or by the 711 President of the United States under federal law, each telephone 712 company, certified telecommunications provider, holder of a certificate 713 of video franchise authority or holder of a certificate of cable franchise 714 authority, as those terms are defined in section 16-1, with more than 715 twenty-five thousand subscribers, shall provide a representative to staff 716 the emergency operations center of an affected electric distribution 717 company, as defined in section 16 -1, as needed to ensure 718 communication and coordination during emergency response and 719 restoration efforts. 720 Sec. 9. Section 16-32l of the general statutes is repealed and the 721 following is substituted in lieu thereof (Effective October 1, 2025): 722 (a) For the purposes of this section: 723 (1) "Emergency" means any hurricane, tornado, storm, flood, high 724 water, wind-driven water, tidal wave, earthquake, landslide, mudslide, 725 snowstorm, drought or fire explosion that results in sixty-nine per cent 726 or less of the electric distribution company's customers experiencing an 727 outage at the period of peak electrical demand; 728 (2) "Electric distribution company" has the same meaning as 729 provided in section 16-1; and 730 (3) "After the occurrence of an emergency" means the conclusion of 731 the emergency, as determined by the authority in its discretion, through 732 a review of the following: (A) The time when the electric distribution 733 company could first deploy resources safely in its service territory; (B) 734 the first of any official declarations concerning the end of the emergency; 735 or (C) the expiration of the first of any National Weather Service 736 warning applicable to the service territory. 737 (b) Notwithstanding any other provision of the general statutes, on 738 and after July 1, 2021, each electric distribution company shall provide 739 to residential customers of such company a credit of twenty-five dollars, 740 Substitute Bill No. 4 LCO 24 of 28 on the balance of such customer's account, for each day of distribution-741 system service outage that occurs for such customers for more than 742 ninety-six consecutive hours after the occurrence of an emergency. 743 (c) Any costs incurred by an electric distribution company pursuant 744 to this section shall not be recoverable. 745 (d) Not later than fourteen calendar days after the occurrence of an 746 emergency, an electric distribution company may petition the authority 747 for a waiver of the requirements of this section. Any petition for a waiver 748 made under this subsection shall include the severity of the emergency, 749 line and restoration crew safety issues and conditions on the ground, 750 and shall be conducted as a contested case proceeding. The burden of 751 proving that such waiver is reasonable and warranted shall be on the 752 electric distribution company. In determining whether to grant such 753 waiver, the authority shall consider whether the electric distribution 754 company received approval and reasonable funding allowances, as 755 determined by the authority, to meet infrastructure resiliency efforts to 756 improve such company's performance. 757 (e) No electric distribution company shall require any line and 758 restoration crew member to work in unsafe conditions to avoid 759 providing credits to customer accounts pursuant to subsection (b) of this 760 section or for any other reason. 761 (f) No electric distribution company shall discipline, terminate, 762 withhold wages from or otherwise retaliate against any line and 763 restoration crew member for failing to restore a distribution system 764 outage within the ninety-six-hour period specified in subsection (b) of 765 this section. 766 [(e)] (g) On or before January 1, 2021, the Public Utilities Regulatory 767 Authority shall initiate a proceeding to consider the implementation of 768 the residential customer credit and waiver provisions of this section and 769 establish circumstances, standards and methodologies applicable to 770 each electric distribution company and necessary to implement the 771 provisions of this section, including any modifications to the ninety-six-772 Substitute Bill No. 4 LCO 25 of 28 consecutive-hour standard in subsection (b) of this section. The 773 authority shall issue a final decision in such proceeding on or before July 774 1, 2021. 775 Sec. 10. Section 16-32m of the general statutes is repealed and the 776 following is substituted in lieu thereof (Effective October 1, 2025): 777 (a) For the purposes of this section: 778 (1) "Emergency" means any hurricane, tornado, storm, flood, high 779 water, wind-driven water, tidal wave, earthquake, landslide, mudslide, 780 snowstorm, drought or fire explosion that results in sixty-nine per cent 781 or less of the electric distribution company's customers experiencing an 782 outage at the period of peak electrical demand; 783 (2) "Electric distribution company" has the same meaning as 784 provided in section 16-1; and 785 (3) "After the occurrence of an emergency" means the conclusion of 786 the emergency, as determined by the authority in its discretion, through 787 a review of the following: (A) The time when the electric distribution 788 company could first deploy resources safely in its service territory; (B) 789 the first of any official declarations concerning the end of the emergency; 790 or (C) the expiration of the first of any National Weather Service 791 warning applicable to the service territory. 792 (b) On and after July 1, 2021, each electric distribution company shall 793 provide to each residential customer compensation in an amount of two 794 hundred fifty dollars, in the aggregate, for any medication and food that 795 expires or spoils due to a distribution-system service outage that lasts 796 more than ninety-six consecutive hours in duration after the occurrence 797 of an emergency. 798 (c) Any costs incurred by an electric distribution company pursuant 799 to this section shall not be recoverable. 800 (d) Not later than fourteen calendar days after the occurrence of an 801 emergency, an electric distribution company may petition the authority 802 Substitute Bill No. 4 LCO 26 of 28 for a waiver of the requirements of this section. Any petition for a waiver 803 made under this subsection shall include the severity of the emergency, 804 line and restoration crew safety issues and conditions on the ground, 805 and shall be conducted as a contested case proceeding. The burden of 806 proving that such waiver is reasonable and warranted shall be on the 807 electric distribution company. In determining whether to grant such 808 waiver, the authority shall consider whether the electric distribution 809 company received approval and reasonable funding allowances, as 810 determined by the authority, to meet infrastructure resiliency efforts to 811 improve such company's performance. 812 (e) No electric distribution company shall require any line and 813 restoration crew member to work in unsafe conditions to avoid 814 providing credits to customer accounts pursuant to subsection (b) of this 815 section or for any other reason. 816 (f) No electric distribution company shall discipline, terminate, 817 withhold wages from or otherwise retaliate against any line and 818 restoration crew member for failing to restore a distribution system 819 outage within the ninety-six-hour period specified in subsection (b) of 820 this section. 821 [(e)] (g) On or before January 1, 2021, the Public Utilities Regulatory 822 Authority shall initiate a proceeding to consider the implementation of 823 the compensation reimbursement and waiver provisions of this section 824 and establish circumstances, standards and methodologies applicable to 825 each electric distribution company and necessary to implement the 826 provisions of this section, including any modifications to the ninety-six-827 consecutive-hour standard in subsection (b) of this section. The 828 authority shall issue a final decision in such proceeding on or before July 829 1, 2021. 830 Sec. 11. (NEW) (Effective from passage) (a) Not later than July 1, 2025, 831 the Public Utilities Regulatory Authority shall open an uncontested 832 proceeding, or amend the notice of proceeding in an active proceeding, 833 to evaluate the criteria and standards related to appropriate protections 834 Substitute Bill No. 4 LCO 27 of 28 from service termination for customers of a regulated gas company or 835 electric distribution company, as those terms are defined in section 16-1 836 of the general statutes, with a serious illness or life-threatening medical 837 condition. Such evaluation shall include, but need not be limited to: 838 (1) Reviewing protections for customers with a serious illness or life-839 threatening medical condition, and making recommendations on 840 appropriate standards for conditioning protections to such customers 841 on their ability to pay; 842 (2) Evaluating whether additional notice requirements prior to 843 shutoff would be appropriate for customers with a serious illness and 844 life-threatening medical condition; 845 (3) Evaluating the current procedures and practices and the relevant 846 information collected for verification of hardship status; 847 (4) Evaluating the impact on the ratepayers; and 848 (5) Evaluating the requirement for a medical hardship customer to 849 enroll in a payment plan. 850 (b) Not later than February 4, 2026, the chairperson of the Public 851 Utilities Regulatory Authority shall submit a report, in accordance with 852 the provisions of section 11-4a of the general statutes, to the joint 853 standing committee of the General Assembly having cognizance of 854 matters relating to energy and technology, summarizing the results of 855 such proceeding and providing recommendations regarding service 856 termination policies, and procedures evaluated in such proceeding. 857 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2025 22a-136 Sec. 2 July 1, 2025 New section Sec. 3 July 1, 2025 New section Sec. 4 October 1, 2025 16a-102(a) Sec. 5 October 1, 2025 16a-3j Substitute Bill No. 4 LCO 28 of 28 Sec. 6 October 1, 2025 16a-3m Sec. 7 from passage New section Sec. 8 October 1, 2025 16-32e Sec. 9 October 1, 2025 16-32l Sec. 10 October 1, 2025 16-32m Sec. 11 from passage New section Statement of Legislative Commissioners: In Section 4(a), "his" was changed to "[his] the commissioner's" for consistency with the general statutes; and in Section 7(k), "Said" was changed to "Such" for proper form. ET Joint Favorable Subst.