Bill Text: CT SB00839 | 2013 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: An Act Concerning Statutory Changes To Advance Connecticut's Energy Policies.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2013-06-04 - Senate Recommitted to Energy and Technology [SB00839 Detail]

Download: Connecticut-2013-SB00839-Introduced.html

General Assembly

 

Governor's Bill No. 839

January Session, 2013

 

LCO No. 3005

 

*03005__________*

Referred to Committee on ENERGY AND TECHNOLOGY

 

Introduced by:

 

SEN. WILLIAMS, 29th Dist.

SEN. LOONEY, 11th Dist.

REP. SHARKEY, 88th Dist.

REP. ARESIMOWICZ, 30th Dist.

 

AN ACT CONCERNING STATUTORY CHANGES TO ADVANCE CONNECTICUT'S ENERGY POLICIES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subdivision (2) of subsection (a) of section 16-1 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(2) ["Director"] "Utility commissioner" means a member of [said authority] the Public Utilities Regulatory Authority;

Sec. 2. Subdivision (52) of subsection (a) of section 16-1 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(52) "Commissioner of Energy and Environmental Protection" means the Commissioner of Energy and Environmental Protection appointed pursuant to title 4, or the commissioner's designee.

Sec. 3. Section 16-2 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) There shall continue to be a Public Utilities Regulatory Authority within the Department of Energy and Environmental Protection, which shall consist of three electors of this state, appointed by the Governor with the advice and consent of both houses of the General Assembly. Not more than two members of said authority in office at any one time shall be members of any one political party. On or before July 1, 2011, the Governor shall appoint three members to the authority. The first [director] utility commissioner appointed by the Governor on or before July 1, 2011, who is of the same political party as that of the Governor shall serve a term of five years. The second [director] utility commissioner appointed by the Governor on or before July 1, 2011, who is of the same political party as that of the Governor shall serve a term of four years. The first [director] utility commissioner appointed by the Governor on or before July 1, 2011, who is of a different political party as that of the Governor shall serve a term of three years. Any [director] utility commissioner appointed on or after January 1, 2014, shall serve a term of four years. The procedure prescribed by section 4-7 shall apply to such appointments, except that the Governor shall submit each nomination on or before May first, and both houses shall confirm or reject it before adjournment sine die. The [directors] utility commissioners shall be sworn to the faithful performance of their duties. The term of any [commissioner] utility commissioner serving on June 30, 2011, shall be terminated.

(b) The authority shall elect a chairperson and vice-chairperson each June for one-year terms starting on July first of the same year. The vice-chairperson shall perform the duties of the chairperson in his or her absence.

(c) Any matter coming before the authority may be assigned by the chairperson to a panel of one or more [directors] utility commissioners. Except as otherwise provided by statute or regulation, the panel shall determine whether a public hearing shall be held on the matter, and may designate one or two of its members to conduct such hearing or [request the appointment of] may assign a hearing officer to ascertain the facts and report thereon to the panel. The decision of the panel, if unanimous, shall be the decision of the authority. If the decision of the panel is not unanimous, the matter shall be approved by a majority vote of the [panel] utility commissioners.

(d) The [directors] utility commissioners of the [authority] Public Utilities Regulatory Authority shall serve full time and shall make full public disclosure of their assets, liabilities and income at the time of their appointment, and thereafter each member of the authority shall make such disclosure on or before July thirtieth of each year of such member's term, and shall file such disclosure with the office of the Secretary of the State. Each [director] utility commissioner shall receive annually a salary equal to that established for management pay plan salary group seventy-five by the Commissioner of Administrative Services, except that the chairperson shall receive annually a salary equal to that established for management pay plan salary group seventy-seven.

(e) To insure the highest standard of public utility regulation, on and after October 1, 2007, any newly appointed [director] utility commissioner of the authority shall have education or training and three or more years of experience in one or more of the following fields: Economics, engineering, law, accounting, finance, utility regulation, public or government administration, consumer advocacy, business management, and environmental management. On and after July 1, 1997, at least three of these fields shall be represented on the authority by individual directors at all times. Any time a [director] utility commissioner is newly appointed, at least one of the [directors] utility commissioners shall have experience in utility customer advocacy.

(f) (1) The chairperson of the authority, with the approval of the Commissioner of Energy and Environmental Protection, shall prescribe the duties of the staff assigned to the authority in order to [(1)] (A) conduct comprehensive planning with respect to the functions of the authority; [(2) coordinate the activities of the authority; (3)] (B) cause the administrative organization of the authority to be examined with a view to promoting economy and efficiency; [(4)] and (C) organize the authority into such divisions, bureaus or other units as necessary for the efficient conduct of the business of the authority and may from time to time make recommendations to the [commissioner] Commissioner of Energy and Environmental Protection regarding staff and resources. [; (5)]

(2) The chairperson of the Public Utilities Regulatory Authority, in order to implement the comprehensive planning and organizational structure established pursuant to subdivision (1) of subsection (f) of this section, shall (A) coordinate the activities of the authority and prescribe the duties of the staff assigned to the authority; (B) for any proceeding on a proposed rate amendment in which staff of the authority are to be made a party pursuant to section 16-19j, determine which staff shall appear and participate in the proceedings and which shall serve the members of the authority; [(6)] (C) enter into such contractual agreements, in accordance with established procedures, as may be necessary for the discharge of the authority's duties; [(7)] (D) subject to the provisions of section 4-32, and unless otherwise provided by law, receive any money, revenue or services from the federal government, corporations, associations or individuals, including payments from the sale of printed matter or any other material or services; and [(8)] (E) require the staff of the authority to have expertise in public utility engineering and accounting, finance, economics, computers and rate design.

(g) No [director] utility commissioner of the [authority] Public Utilities Regulatory Authority or employee of the Department of Energy and Environmental Protection assigned to work with the authority shall [, while serving as such or during such assignment,] have any interest, financial or otherwise, direct or indirect, or engage in any business, employment, transaction or professional activity, or incur any obligation of any nature, which is in substantial conflict with the proper discharge of his or her duties or employment in the public interest and of his or her responsibilities as prescribed in the laws of this state, as defined in section 1-85, concerning any matter within the jurisdiction of the authority; provided, no such substantial conflict shall be deemed to exist solely by virtue of the fact that a director of the authority or employee of the department assigned to work with the authority, or any business in which such a person has an interest, receives utility service from one or more Connecticut utilities under the normal rates and conditions of service.

(h) No [member] utility commissioner of the [authority] Public Utilities Regulatory Authority or employee of the [department] Department of Energy and Environmental Protection assigned to work with the authority, during such assignment, shall accept other employment which will either impair his or her independence of judgment as to his or her official duties or employment or require him or her, or induce him or her, to disclose confidential information acquired by him or her in the course of and by reason of his or her official duties.

(i) No [director] utility commissioner of the [authority] Public Utilities Regulatory Authority or employee of the [department] Department of Energy and Environmental Protection assigned to work with the authority, during such assignment, shall wilfully and knowingly disclose, for pecuniary gain, to any other person, confidential information acquired by him or her in the course of and by reason of his or her official duties or employment or use any such information for the purpose of pecuniary gain.

(j) No [director] utility commissioner of the [authority] Public Utilities Regulatory Authority or employee of the [department] Department of Energy and Environmental Protection assigned to work with the authority, during such assignment, shall agree to accept, or be in partnership or association with any person, or a member of a professional corporation or in membership with any union or professional association which partnership, association, professional corporation, union or professional association agrees to accept any employment, fee or other thing of value, or portion thereof, in consideration of his or her appearing, agreeing to appear, or taking any other action on behalf of another person before the authority, the Connecticut Siting Council, the Office of Policy and Management or the Commissioner of Energy and Environmental Protection.

(k) No [director] utility commissioner of the [authority] Public Utilities Regulatory Authority shall, for a period of one year following the termination of his or her service as a director, accept employment: (1) By a public service company or by any person, firm or corporation engaged in lobbying activities with regard to governmental regulation of public service companies; (2) by a certified telecommunications provider or by any person, firm or corporation engaged in lobbying activities with regard to governmental regulation of persons, firms or corporations so certified; or (3) by an electric supplier or by any person, firm or corporation engaged in lobbying activities with regard to governmental regulation of electric suppliers. No such [director] utility commissioner who is also an attorney shall in any capacity, appear or participate in any matter, or accept any compensation regarding a matter, before the authority, for a period of one year following the termination of his or her service as a [director] utility commissioner.

(l) The Public Utilities Regulatory Authority shall include a procurement manager whose duties shall include, but not be limited to, overseeing the procurement of electricity for standard service and who shall have experience in energy markets and procuring energy on a commercial scale.

(m) Notwithstanding any provision of the general statutes, the decisions of the Public Utilities Regulatory Authority, including, but not limited to, decisions relating to rate amendments arising from the Comprehensive Energy Strategy, the Integrated Resources Plan, the Conservation Load Management Plan and policies established by the Department of Energy and Environmental Protection, shall be guided by such strategy, plans and policies.

Sec. 4. Section 16-3 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

If any vacancy of a utility commissioner occurs in [said] the Public Utilities Regulatory Authority at any time when the General Assembly is not in session, the Governor shall appoint a [director] utility commissioner to fill such vacancy until such vacancy is filled at the next session of the General Assembly. [Any other vacancy shall be filled, for the unexpired portion of the term, in the manner provided in section 16-2.]

Sec. 5. Section 16-6b of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

The Public Utilities Regulatory Authority [, in consultation with the Department of Energy and Environmental Protection,] may, in accordance with chapter 54, adopt such regulations with respect to: [rates] (1) Rates and charges, services, accounting practices, safety and the conduct of operations generally of public service companies subject to its jurisdiction as it deems reasonable and necessary; [. The department in consultation with the authority may, in accordance with chapter 54, adopt such regulations with respect to] (2) services, accounting practices, safety and the conduct of operations generally of electric suppliers subject to its jurisdiction as it deems reasonable and necessary; [. After consultation with the Secretary of the Office of Policy and Management, the department may also adopt regulations, in accordance with chapter 54,] and (3) establishing standards for systems utilizing cogeneration technology and renewable fuel resources, in accordance with the Department of Energy and Environmental Protection's policies.

Sec. 6. Section 16-7 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

The [directors and any employees of the department assigned to] utility commissioners of the Public Utilities Regulatory Authority, or their designees, while engaged in the performance of their duties may, at all reasonable times, enter any premises, buildings, cars or other places belonging to or controlled by any public service company or electric supplier, and any person obstructing or in any way causing to be obstructed or hindered any [member] utility commissioner of the Public Utilities Regulatory Authority or employee of the [department] Department of Energy and Environmental Protection in the performance of his or her duties shall be fined not more than two hundred dollars or imprisoned not more than six months, or both.

Sec. 7. Section 16-19e of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) In the exercise of its powers under the provisions of this title, the Public Utilities Regulatory Authority shall examine and regulate the transfer of existing assets and franchises, the expansion of the plant and equipment of existing public service companies, the operations and internal workings of public service companies and the establishment of the level and structure of rates in accordance with the following principles: (1) That there is a clear public need for the service being proposed or provided; (2) that the public service company shall be fully competent to provide efficient and adequate service to the public in that such company is technically, financially and managerially expert and efficient; (3) that the authority and all public service companies shall perform all of their respective public responsibilities with economy, efficiency and care for public safety and energy security, and so as to promote economic development within the state with consideration for energy and water conservation, energy efficiency and the development and utilization of renewable sources of energy and for the prudent management of the natural environment; (4) that the level and structure of rates be sufficient, but no more than sufficient, to allow public service companies to cover their operating costs including, but not limited to, appropriate staffing levels, and capital costs, to attract needed capital and to maintain their financial integrity, and yet provide appropriate protection to the relevant public interests, both existing and foreseeable which shall include, but not be limited to, reasonable costs of security of assets, facilities and equipment that are incurred solely for the purpose of responding to security needs associated with the terrorist attacks of September 11, 2001, and the continuing war on terrorism; (5) that the level and structure of rates charged customers shall reflect prudent and efficient management of the franchise operation; and (6) that the rates, charges, conditions of service and categories of service of the companies not discriminate against customers which utilize renewable energy sources or cogeneration technology to meet a portion of their energy requirements.

(b) The Public Utilities Regulatory Authority shall promptly undertake a separate, general investigation of, and shall hold at least one public hearing on new pricing principles and rate structures for electric companies and for gas companies to consider, without limitation, long run incremental cost of marginal cost pricing, peak load or time of day pricing and proposals for optimizing the utilization of energy and restraining its wasteful use and encouraging energy conservation, and any other matter with respect to pricing principles and rate structures as the authority shall deem appropriate. The authority shall determine whether existing or future rate structures place an undue burden upon those persons of poverty status and shall make such adjustment in the rate structure as is necessary or desirable to take account of their indigency. The authority shall require the utilization of such new principles and structures to the extent that the authority determines that their implementation is in the public interest, as identified by the Department of Energy and Environmental Protection in the Integrated Resources Plan and the Comprehensive Energy Strategy, and necessary or desirable to accomplish the purposes of this provision without being unfair or discriminatory or unduly burdensome or disruptive to any group or class of customers, and determines that such principles and structures are capable of yielding required revenues. In reviewing the rates and rate structures of electric and gas companies, the authority shall [take into consideration appropriate energy policies, including those of the state as expressed in subsection (c) of this section] be guided by the goals of the Department of Energy and Environmental Protection, as described in section 22a-2d, the Comprehensive Energy Strategy, the Integrated Resources Plan and the Conservation and Load Management Plan. The authority shall issue its initial findings on such investigation by December 1, 1976, and its final findings and order by June 1, 1977; provided that after such final findings and order are issued, the authority shall at least once every two years undertake such further investigations as it deems appropriate with respect to new developments or desirable modifications in pricing principles and rate structures and, after holding at least one public hearing thereon, shall issue its findings and order thereon.

(c) The Department of Energy and Environmental Protection shall coordinate and integrate its actions, decisions and policies pertaining to gas and electric companies, so far as possible, with the actions, decisions and policies of other agencies and instrumentalities in order to further the development and optimum use of the state's energy resources and conform to the greatest practicable extent with the state energy policy as stated in [section] sections 16a-35k, 16a-3a, as amended by this act, and 16a-3d, as amended by this act, taking into account prudent management of the natural environment and continued promotion of economic development within the state. The department shall defer, as appropriate, to any actions taken by other agencies and instrumentalities on matters within their respective jurisdictions.

(d) The Commissioner of Energy and Environmental Protection, the Commissioner of Economic and Community Development, and the Connecticut Siting Council may be made parties to each proceeding on a rate amendment proposed by a gas, electric or electric distribution company [based upon an alleged need for increased revenues to finance an expansion of capital equipment and facilities,] and shall participate in such proceedings to the extent necessary.

(e) The Public Utilities Regulatory Authority, in a proceeding on a rate amendment proposed by an electric distribution company based upon an alleged need for increased revenues to finance an expansion of the capacity of its electric distribution system, shall determine whether demand-side management would be more cost-effective in meeting any demand for electricity for which the increase in capacity is proposed.

(f) The provisions of this section shall not apply to the regulation of a telecommunications service which is a competitive service, as defined in section 16-247a, or to a telecommunications service to which an approved plan for an alternative form of regulation applies, pursuant to section 16-247k.

(g) The authority may, upon application of any gas or electric public service company, which has, as part of its existing rate plan, an earnings sharing mechanism, modify such rate plan to allow the gas or electric public service company, after a hearing that is conducted as a contested case, in accordance with chapter 54, to include in its rates the reasonable costs of security of assets, facilities, and equipment, both existing and foreseeable, that are incurred solely for the purpose of responding to security needs associated with the terrorist attacks of September 11, 2001, and the continuing war on terrorism.

Sec. 8. Section 16-245ee of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

Before approving any plan for energy conservation and load management and [renewable] clean energy projects issued to [it] the Commissioner of Energy and Environmental Protection by the Energy Conservation and Management Board, the board of directors of the Connecticut Clean Energy Finance and Investment Authority or an electric distribution company, [the Department of Energy and Environmental Protection] such commissioner shall determine that an equitable amount of the funds administered by each such board are to be deployed among small and large customers with a maximum average monthly peak demand of one hundred kilowatts in census tracts in which the median income is not more than sixty per cent of the state median income. The [department] Commissioner of Energy and Environmental Protection shall determine such equitable share and such projects may include a mentoring component for such communities. On and after January 1, 2012, and annually thereafter, the [department] Commissioner of Energy and Environmental Protection shall report, in accordance with the provisions of section 11-4a, to the joint standing committee of the General Assembly having cognizance of matters relating to energy regarding the distribution of funds to such communities. Any such report may be submitted electronically.

Sec. 9. Section 16-2c of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

There is established a Division of Adjudication within the [Department of Energy and Environmental Protection] Public Utilities Regulatory Authority. The staff of the division shall include, but not be limited to, hearing officers appointed pursuant to subsection (c) of section 16-2, as amended by this act. The responsibilities of the division shall include, but not be limited to, hearing matters assigned under said subsection and advising the [commissioner and the] Public Utilities Regulatory Authority concerning legal issues. The [commissioner] chairperson of the Public Utilities Regulatory Authority shall appoint such hearing officers pursuant to section 16-2, as amended by this act, and assign such other staff as are necessary to advise the chairperson of the authority.

Sec. 10. Section 16a-3a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) The Department of Energy and Environmental Protection, in consultation with the Connecticut Energy Advisory Board and the electric distribution companies, shall review the state's energy and capacity resource assessment and develop [an integrated resources plan] the Integrated Resources Plan for the procurement of energy resources, including, but not limited to, conventional and renewable generating facilities, energy efficiency, load management, demand response, combined heat and power facilities, distributed generation and other emerging energy technologies to meet the projected requirements of their customers in a manner that minimizes the cost of such resources to customers over time and maximizes consumer benefits consistent with the state's environmental goals and standards. [Such integrated resources] Said plan shall seek to lower the cost of electricity.

(b) On or before January 1, 2012, and biennially thereafter, the Department of Energy and Environmental Protection, in consultation with the Connecticut Energy Advisory Board and the electric distribution companies, shall prepare an assessment of (1) the energy and capacity requirements of customers for the next three, five and ten years, (2) the manner of how best to eliminate growth in electric demand, (3) how best to level electric demand in the state by reducing peak demand and shifting demand to off-peak periods, (4) the impact of current and projected environmental standards, including, but not limited to, those related to greenhouse gas emissions and the federal Clean Air Act goals and how different resources could help achieve those standards and goals, (5) energy security and economic risks associated with potential energy resources, and (6) the estimated lifetime cost and availability of potential energy resources.

(c) Resource needs shall first be met through all available energy efficiency and demand reduction resources that are cost-effective, reliable and feasible. The projected customer cost impact of any demand-side resources considered pursuant to this subsection shall be reviewed on an equitable basis with nondemand-side resources. The [integrated resources plan] Integrated Resources Plan shall specify (1) the total amount of energy and capacity resources needed to meet the requirements of all customers, (2) the extent to which demand-side measures, including efficiency, conservation, demand response and load management can cost-effectively meet these needs in a manner that ensures equity in benefits and cost reduction to all classes and subclasses of consumers, (3) needs for generating capacity and transmission and distribution improvements, (4) how the development of such resources will reduce and stabilize the costs of electricity to each class and subclass of consumers, and (5) the manner in which each of the proposed resources should be procured, including the optimal contract periods for various resources.

(d) The [integrated resources plan] Integrated Resources Plan shall consider: (1) Approaches to maximizing the impact of demand-side measures; (2) the extent to which generation needs can be met by renewable and combined heat and power facilities; (3) the optimization of the use of generation sites and generation portfolio existing within the state; (4) fuel types, diversity, availability, firmness of supply and security and environmental impacts thereof, including impacts on meeting the state's greenhouse gas emission goals; (5) reliability, peak load and energy forecasts, system contingencies and existing resource availabilities; (6) import limitations and the appropriate reliance on such imports; (7) the impact of the [procurement] plan on the costs of electric customers; and (8) the effects on participants and nonparticipants. [Such plan] The Integrated Resources Plan shall include options for lowering the rates and cost of electricity. [The Department of Energy and Environmental Protection shall hold a public hearing on such integrated resources plan pursuant to chapter 54. The commissioner may approve or reject such plan with comments.]

(e) The procurement manager of the Public Utilities Regulatory Authority, in consultation with the electric distribution companies, the regional independent system operator, and the Connecticut Energy Advisory Board, shall develop a procurement plan and hold public hearings on the proposed plan. Such hearings shall not constitute a contested case and shall be held in accordance with chapter 54. The Public Utilities Regulatory Authority shall give not less than fifteen days' notice of such proceeding by electronic publication on the department's Internet web site. Notice of such hearing may also be published in one or more newspapers if deemed necessary by the [commissioner] Commissioner of Energy and Environmental Protection. Such notice shall state the date, time, and place of the hearing, the subject matter of the hearing, the statutory authority for the proposed [integrated resources plan] Integrated Resources Plan and the location where a copy of the proposed [integrated resources plan] Integrated Resources Plan may be obtained or examined in addition to posting the plan on the department's Internet web site. The [commissioner] Commissioner of Energy and Environmental Protection shall provide a time period of not less than forty-five days from the date the notice is published on the department's Internet web site for public review and comment. The [commissioner] Commissioner of Energy and Environmental Protection shall consider fully, after all public meetings, all written and oral comments concerning the proposed [integrated resources plan] Integrated Resources Plan and shall post on the department's Internet web site and notify by electronic mail each person who requests such notice. The [commissioner] Commissioner of Energy and Environmental Protection shall make available the electronic text of the final [integrated resources plan] Integrated Resources Plan or an Internet web site where the final [integrated resources plan] Integrated Resources Plan is posted, and a report summarizing (1) all public comments, and (2) the changes made to the final [integrated resources plan] Integrated Resources Plan in response to such comments and the reasons therefor. The [commissioner] Commissioner of Energy and Environmental Protection shall submit the final [integrated resources plan] Integrated Resources Plan by electronic means, or as requested, to the joint standing committees of the General Assembly having cognizance of matters relating to energy and the environment. The department's Bureau of Energy shall, after the public hearing, make recommendations to the Commissioner of Energy and Environmental Protection regarding plan modifications. Said commissioner shall approve or reject the plan with comments.

(f) On or before March 1, 2012, and every two years thereafter, the Department of Energy and Environmental Protection shall report to the joint standing committees of the General Assembly having cognizance of matters relating to energy and the environment regarding goals established and progress toward implementation of the [integrated resources plan] Integrated Resources Plan established pursuant to this section, as well as any recommendations for the process.

(g) All costs associated with the development of the resource assessment and the development of the [integrated resources plan] Integrated Resources Plan and the procurement plan shall be recoverable through the assessment in section 16-49.

[(h) The decisions of the Public Utilities Regulatory Authority shall be guided by the goals of the Department of Energy and Environmental Protection, as described in section 22a-2d, and with the goals of the integrated resources plan approved pursuant to this section and the comprehensive energy plan developed pursuant to section 16a-3d and shall be based on the evidence in the record of each proceeding.]

Sec. 11. Section 16a-3d of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) On or before July 1, 2012, and every three years thereafter, the Commissioner of Energy and Environmental Protection, in consultation with the Connecticut Energy Advisory Board, shall prepare [a comprehensive energy plan] the Comprehensive Energy Strategy. Such plan shall reflect the legislative findings and policy stated in section 16a-35k and shall incorporate (1) an assessment and plan for all energy needs in the state, including, but not limited to, electricity, heating, cooling, and transportation, (2) the findings of the [integrated resources plan] Integrated Resources Plan, (3) the findings of the plan for energy efficiency adopted pursuant to section 16-245m, and (4) the findings of the plan for renewable energy adopted pursuant to section 16-245n. Such plan shall further include, but not be limited to, (A) an assessment of current energy supplies, demand and costs, (B) identification and evaluation of the factors likely to affect future energy supplies, demand and costs, (C) a statement of progress made toward achieving the goals and milestones set in the preceding [comprehensive energy plan] Comprehensive Energy Strategy, (D) a statement of energy policies and long-range energy planning objectives and strategies appropriate to achieve, among other things, a sound economy, the least-cost mix of energy supply sources and measures that reduce demand for energy, giving due regard to such factors as consumer price impacts, security and diversity of fuel supplies and energy generating methods, protection of public health and safety, environmental goals and standards, conservation of energy and energy resources and the ability of the state to compete economically, (E) recommendations for administrative and legislative actions to implement such policies, objectives and strategies, (F) an assessment of the potential costs savings and benefits to ratepayers, including, but not limited to, carbon dioxide emissions reductions or voluntary joint ventures to repower some or all of the state's coal-fired and oil-fired generation facilities built before 1990, and (G) the benefits, costs, obstacles and solutions related to the expansion and use and availability of natural gas in Connecticut. If the [department] Department of Energy and Environmental Protection finds that such expansion is in the public interest, it shall develop a plan to increase the use and availability of natural gas. [for transportation purposes.]

(b) In adopting the [comprehensive energy plan] Comprehensive Energy Strategy, the Commissioner of Energy and Environmental Protection, or the commissioner's designee, shall conduct a proceeding and such proceeding shall not be considered a contested case under chapter 54, provided a hearing pursuant to chapter 54 shall be held. The [commissioner] Commissioner of Energy and Environmental Protection shall give not less than fifteen days' notice of such proceeding by electronic publication on the department's Internet web site. Notice of such hearing may also be published in one or more newspapers if deemed necessary by the [commissioner] Commissioner of Energy and Environmental Protection. Such notice shall state the date, time, and place of the meeting, the subject matter of the meeting, the statutory authority for the proposed plan and the location where a copy of the proposed plan may be obtained or examined in addition to posting the plan on the department's Internet web site. [The Public Utilities Regulatory Authority shall comment on the plan's impact on ratepayers and any other person may comment on the proposed plan.] The [commissioner] Commissioner of Energy and Environmental Protection shall provide a time period of not less than forty-five days from the date the notice is published on the department's Internet web site for public review and comment. The [commissioner] Commissioner of Energy and Environmental Protection shall consider fully, after all public meetings, all written and oral comments concerning the proposed plan and shall post on the department's Internet web site and notify by electronic mail each person who requests such notice. The [commissioner] Commissioner of Energy and Environmental Protection shall make available the electronic text of the final plan or an Internet web site where the final plan is posted, and a report summarizing (1) all public comments, and (2) the changes made to the final plan in response to such comments and the reasons [therefore.] therefor. The Public Utilities Regulatory Authority shall comment on the plan's impact on natural gas and electric rates.

(c) The [commissioner] Commissioner of Energy and Environmental Protection shall submit the final plan electronically to the joint standing committees of the General Assembly having cognizance of matters relating to energy and the environment.

(d) The [commissioner] Commissioner of Energy and Environmental Protection may, in consultation with the Connecticut Energy Advisory Board, modify the [comprehensive energy plan] Comprehensive Energy Strategy in accordance with the procedures outlined in subsections (b) and (c) of this section. The [commissioner] Commissioner of Energy and Environmental Protection may approve or reject such plan with comments.

(e) The decisions of the Public Utilities Regulatory Authority shall be guided by the goals of the Department of Energy and Environmental Protection, as listed in section 22a-2d, and by the goals of the [comprehensive energy plan] Comprehensive Energy Strategy and the [integrated resources plan] Integrated Resources Plan approved pursuant to section 16a-3a, as amended by this act, and shall be based on the evidence in the record of each proceeding.

[(f) All electric distribution companies' reasonable costs associated with the development of the resource assessment shall be recoverable through the systems benefits charge.]

Sec. 12. Section 16a-13b of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) The [commissioner] Commissioner of Energy and Environmental Protection shall: (1) Be responsible for the conduct and administration of energy emergency planning and preparedness activities generally, including the coordination of such activities under this title with other state emergency planning conducted under any other provisions of the general statutes or special acts and with energy emergency planning or preparedness activities undertaken by the federal government, other states and regional or interstate organizations, and (2) coordinate, under the direction of the office of the Governor, the adoption and implementation of emergency measures by state departments during any energy emergency proclaimed under section 16a-11 or section 16a-12, including the coordination of state, federal, regional and interstate activities.

(b) In exercising the responsibilities under subsection (a) of this section, the [commissioner] Commissioner of Energy and Environmental Protection shall consult with the Department of Emergency Services and Public Protection, the Public Utilities Regulatory Authority, the Department of Transportation and such other state agencies as the [commissioner] Commissioner of Energy and Environmental Protection deems appropriate. Each state agency shall assist the commissioner in carrying out the responsibilities assigned by sections 16a-9 to 16a-13d, inclusive, as amended by this act.

Sec. 13. Section 16a-37c of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) The Commissioner of Energy and Environmental Protection shall establish a program to provide incentives to agencies that achieve savings through energy conservation. The program shall allow any state agency to request from the Department of Energy and Environmental Protection a statement of the agency's energy cost savings achieved through conservation measures during the preceding fiscal year. The Department of Energy and Environmental Protection, in consultation with the Public Utilities Regulatory Authority, shall provide any agency with the requested statement. Based upon said statement the [commissioner] Commissioner of Energy and Environmental Protection shall allow a portion of the energy savings accumulated during any fiscal year to be retained by the agency and used for future energy costs or energy conservation related activities. Said portion shall not be less than fifty per cent of the energy savings and shall accrue to the agency annually for a period equal to the useful life of the conservation measures.

(b) The Commissioner of Energy and Environmental Protection, in consultation with the Public Utilities Regulatory Authority, shall adopt regulations, in accordance with chapter 54, to carry out the purposes of this section.

Sec. 14. Section 16a-40k of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) The Commissioner of Economic and Community Development shall establish a home heating system loan fund and make low-cost loans from such fund for three years to persons in the state residing in dwellings constructed not later than December 31, 1979, and for which the primary source of heating since such date has been electricity. Any such loan may be used to (1) purchase a secondary heating system using a source of heat other than electricity, or (2) convert a primary electric heating system to a system using a source of heat other than electricity.

(b) Any loan under subdivision (1) of subsection (a) of this section shall be not more than two thousand dollars and any loan under subdivision (2) of said subsection shall be not more than four thousand dollars. Any loan under said subsection shall be made only to an applicant who submits evidence, satisfactory to the [commissioner] Commissioner of Economic and Community Development, that the adjusted gross income of the household member or members who contribute to the support of his household was not in excess of forty-five thousand dollars as an average amount per year in the last two reported filings of income by such household member or members. Repayment of all loans made under this section shall be subject to such rate of interest, terms and conditions as the [commissioner] Commissioner of Economic and Community Development may establish, provided [the] such commissioner, in consultation with the Public Utilities Regulatory Authority, shall, not later than July first and January first, annually, establish a range of rates of interest payable on all loans to be made during the succeeding six months and shall apply the range to applicants in accordance with a formula which reflects their income. Such range shall be not less than zero per cent for any applicant in the lowest income class and not more than one per cent above the rate of interest borne by the general obligation bonds of the state last issued prior to the most recent date such range was established for any applicant for whom the adjusted gross income of the household member or members who contribute to support of his household was at least thirty-three thousand dollars as an average amount per year in the last two reported filings of income by such household member or members.

(c) Not later than August 1, 1984, the [commissioner] Commissioner of Economic and Community Development shall calculate an amount equal to the difference between the rate of interest payable on all loans made on and after July 1, 1983, and the rate of interest on any outstanding bonds and notes used to fund such loans, multiplied by the outstanding amount of all such loans, or such lesser amount as may be required under Section 103(c) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended. Such amount shall not exceed six per cent of the sum of the outstanding principal amount at the end of each fiscal year of all loans made on or after July 1, 1983, from the Home Heating System Loan Fund and the amount remaining in such fund. Not later than September 1, 1984, the Public Utilities Regulatory Authority shall allocate such amount among each electric company, as defined in section 16-1, as amended by this act, having at least seventy-five thousand customers in accordance with a formula taking into account, without limitation, the average number of residential customers of each company. Not later than October 1, 1984, each such company shall pay its assessed amount to the [commissioner. The] Commissioner of Economic and Community Development. Such commissioner shall pay to the State Treasurer for deposit in the General Fund all such payments from electric companies, and shall adopt procedures to assure that such payments are not used for purposes other than those specifically provided in this section. The authority shall include each company's payment as an operating expense of the company for the purposes of rate-making under section 16-19.

(d) The [commissioner] Commissioner of Economic and Community Development shall adopt regulations, in accordance with the provisions of chapter 54, (1) concerning qualifications for such loans, requirements and limitations as to adjustments of terms and conditions of repayment and any additional requirements deemed necessary to carry out the provisions of this section and to assure that any bonds and notes used to fund such loans qualify for exemption from federal income taxation, (2) providing for the maximum feasible availability of such loans for dwelling units owned or occupied by persons of low and moderate income, and (3) establishing procedures to inform such persons of the availability of such loans and to encourage and assist them to apply for such loans.

(e) Notwithstanding the provisions of subsections (a) to (d), inclusive, of this section, on and after July 1, 1985, no loans shall be authorized under said subsections and, not later than July 15, 1985, the State Treasurer shall terminate the Home Heating System Loan Fund and transfer the proceeds of such fund to the Energy Conservation Loan Fund established under section 16a-40a.

Sec. 15. Section 22a-66k of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) Each electric company, as defined in section 16-1, as amended by this act, shall submit a utilities pesticide management plan to the Commissioner of Energy and Environmental Protection for approval with the concurrence of the Public Utilities Regulatory Authority. A plan shall be revised at such time as the electric company filing the plan or the [commissioner] Commissioner of Energy and Environmental Protection determines provided such plan shall be revised not less than once every five years.

(b) Any electric company, as defined in section 16-1, as amended by this act, telephone company, as defined in section 16-1, as amended by this act, or telecommunications company, as defined in section 16-1, as amended by this act, which provides for the application of a pesticide within a right-of-way maintained by such company shall ensure that owners, occupants or tenants of buildings or dwellings that are located on property which abuts such right-of-way, or property within which such right-of-way lies, are notified at least forty-eight hours prior to the application. Notice may be made by any method, including telephone, mail or personal notification. Any such company which provides for the application of pesticides in connection with removal of trees or brush from private property shall obtain the consent of the owner, occupant or tenant of such property prior to the application. Notwithstanding the provisions of section 23-65, any such company which provides for the application of pesticides to any utility pole, after it has been installed, for purposes of maintaining, preserving or extending the useful life of the pole shall post notice of such application on each such pole.

(c) The [commissioner] Commissioner of Energy and Environmental Protection shall adopt regulations in accordance with the provisions of chapter 54 setting forth the contents of a pesticide management plan. Such regulations shall include provisions for the on-site posting of a notice of a pesticide application. A notice required by such regulations may be posted at the time of or after the application, provided the time of such posting shall be sufficient to protect persons engaged in a lawful public recreational use of any unimproved real property in which such application is made.

Sec. 16. Subsection (f) of section 22a-198 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(f) The Commissioner of Energy and Environmental Protection, in consultation with the chairperson of the Public Utilities Regulatory Authority, may suspend the prohibition of subsection (b) of this section for a Title IV source if it is determined that the application of the prohibition established under subsection (b) of this section adversely affects the ability to meet the reliability standards, as defined by the New England Power Pool or its successor organization, and the suspension thereof is intended to mitigate such reliability problems. The Commissioner of Energy and Environmental Protection, in consultation with the chairperson of the Public Utilities Regulatory Authority, shall specify in writing the reasons for such suspension and the period of time that such suspension shall be in effect and shall provide notice of such suspension at the time of issuance, or the next business day, to the joint standing committees of the General Assembly having cognizance of matters relating to the environment and energy and technology. No such waiver shall last more than thirty days. The [commissioner] Commissioner of Energy and Environmental Protection may reissue additional waivers for such source after said initial waiver has expired. Within ten days of receipt of the commissioner's notice of suspension, the committees having cognizance of matters relating to the environment and energy and technology may hold a joint public hearing and meeting of the committees to either modify or reject the commissioner's suspension by a majority vote. If the committees do not meet, the commissioner's suspension shall be deemed approved.

Sec. 17. Section 22a-354w of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

The Commissioner of Energy and Environmental Protection, in consultation with the Commissioner of Public Health and the chairperson of the Public Utilities Regulatory Authority, shall prepare guidelines for acquisition of lands surrounding existing or proposed public water supply well fields. In preparing such guidelines the [commissioner] Commissioner of Energy and Environmental Protection shall consider economic implications for mandating land acquisition including, but not limited to, the effect on land values and the ability of small water companies to absorb the cost of acquisition.

Sec. 18. Subsections (c) and (d) of section 22a-368a of the general statutes are repealed and the following is substituted in lieu thereof (Effective from passage):

(c) Any person or municipality maintaining a diversion that was eligible for registration in accordance with section 22a-368 but failed to so register, which diversion continues to be in use as of July 1, 2001, shall report to the [commissioner] Commissioner of Energy and Environmental Protection the operating data for such diversion not later than six months after the publication of notice pursuant to subsection (a) of this section. Such data shall be provided on a form developed by the Commissioner of Energy and Environmental Protection, in consultation with the Commissioners of Public Health and Agriculture and the chairperson of the Public Utilities Regulatory Authority. Such data shall include (1) the location, capacity, frequency and rate of withdrawals or discharges of such diversion as of July 1, 1982, (2) a description of the water use and water system on or before July 1, 1982, including information to evidence its operation at that time, and (3) the monthly data for the calendar years 1997 to 2001, inclusive, (A) for the actual frequency and actual rate of water withdrawals or discharges of such diversion if such diversion is metered, or (B) that estimates the withdrawals or discharges in the absence of a meter. A person or municipality maintaining a diversion exclusively for agricultural purposes may report estimated water use for the reporting period in subdivision (3) of this subsection.

(d) Any person or municipality maintaining a diversion that was not eligible for registration in accordance with section 22a-368 and is not currently authorized by permit issued by the [commissioner] Commissioner of Energy and Environmental Protection pursuant to said section, which diversion is in use as of July 1, 2001, shall report to the Commissioner of Energy and Environmental Protection operating data for the diversion not later than six months after the publication of notice pursuant to subsection (a) of this section. Such data shall be provided on a form developed by the Commissioner of Energy and Environmental Protection, in consultation with the Commissioners of Public Health and Agriculture and the chairperson of the Public Utilities Regulatory Authority. Such data shall include (1) information as to when the diversion was initiated, (2) a description of the water use and water system operation, and (3) the monthly data for the calendar years 1997 to 2001, inclusive, (A) for the location, capacity, actual frequency and actual rate of water withdrawals or discharges of said diversion if such diversion is metered, or (B) that estimates the withdrawals or discharges in the absence of a meter. A person or municipality maintaining a diversion used exclusively for agricultural purposes may report estimated water use for the reporting period in subdivision (3) of this subsection.

Sec. 19. Section 22a-371 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) Within one hundred eighty days of receipt of an application for a permit, the [commissioner] Commissioner of Energy and Environmental Protection shall determine if there is any additional information that he deems necessary to carry out the purposes of sections 22a-365 to 22a-378, inclusive, as amended by this act. The applicant shall provide such information to the commissioner upon request.

(b) If the applicant does not furnish the requested information, the [commissioner] Commissioner of Energy and Environmental Protection shall publish notice of his tentative determination on the application in accordance with section 22a-6h and shall hold or waive a public hearing in accordance with the provisions of subsection (f) of this section.

(c) If the [commissioner] Commissioner of Energy and Environmental Protection finds that an application is complete, he shall notify the applicant by certified mail, return receipt requested. The commissioner shall also notify the applicant of the time, date and location of any public hearing to be held on the application.

(d) Upon notifying the applicant in accordance with subsection (c) of this section that the application is complete, the [commissioner] Commissioner of Energy and Environmental Protection shall immediately provide notice of the application and a concise description of the proposed diversion to the Governor, the Attorney General, the speaker of the House of Representatives, the president pro tempore of the Senate, the Secretary of the Office of Policy and Management, the Commissioners of Public Health and Economic and Community Development, the chairperson of the Public Utilities Regulatory Authority, the chief executive officer and chairmen of the conservation commission and wetlands agency of the municipality or municipalities in which the proposed diversion will take place or have effect, and any person who has requested notice of such activities.

(e) As used in this section, "municipality" means a city, town or borough of the state.

(f) The [commissioner] Commissioner of Energy and Environmental Protection shall hold a public hearing before approving or denying an application, except that, when the commissioner determines that the proposed diversion (1) is necessary, (2) will not significantly affect long-range water resource management or the environment, and (3) will not impair proper management and use of the water resources of the state, he may waive the requirement for a hearing after publishing notice of his tentative decision regarding the application and of his intent to waive the requirement for a hearing in a newspaper having general circulation in the area where the proposed diversion will take place or have effect; provided the [commissioner] Commissioner of Energy and Environmental Protection shall hold a hearing upon receipt, within thirty days after such notice is published or mailed, of a petition signed by at least twenty-five persons. If a hearing is to be held, the commissioner, at the applicant's expense, shall (A) cause notice of the time, date and location of the commencement of the hearing, a concise description of the proposed diversion, and the commissioner's tentative determination regarding the application to be published not less than thirty days prior to the commencement of the hearing in a newspaper having a general circulation in the area where the proposed diversion will take place or have effect, and (B) provide the same notice to the officials listed in subsection (d) of this section not less than thirty days prior to the commencement of the hearing.

Sec. 20. Section 22a-475 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

As used in this section and sections 22a-476 to 22a-483, inclusive, as amended by this act, the following terms shall have the following meanings unless the context clearly indicates a different meaning or intent:

(1) "Bond anticipation note" means a note issued by a municipality in anticipation of the receipt of the proceeds of a project loan obligation or a grant account loan obligation.

(2) "Clean Water Fund" means the fund created under section 22a-477.

(3) "Combined sewer projects" means any project undertaken to mitigate pollution due to combined sewer and storm drain systems, including, but not limited to, components of regional water pollution control facilities undertaken to prevent the overflow of untreated wastes due to collection system inflow, provided the state share of the cost of such components is less than the state share of the estimated cost of eliminating such inflow by means of physical separation at the sources of such inflow.

(4) "Commissioner" means the Commissioner of Energy and Environmental Protection.

(5) "Department" means the Department of Energy and Environmental Protection.

(6) "Disadvantaged communities" means the service area of a public water system that meets affordability criteria established by the Office of Policy and Management in accordance with applicable federal regulations.

(7) "Drinking water federal revolving loan account" means the drinking water federal revolving loan account of the Clean Water Fund created under section 22a-477.

(8) "Drinking water state account" means the drinking water state account of the Clean Water Fund created under section 22a-477.

(9) "Eligible drinking water project" means the planning, design, development, construction, repair, extension, improvement, remodeling, alteration, rehabilitation, reconstruction or acquisition of all or a portion of a public water system approved by the Commissioner of Public Health, under sections 22a-475 to 22a-483, inclusive, as amended by this act.

(10) "Eligible project" means an eligible drinking water project or an eligible water quality project, as applicable.

(11) "Eligible water quality project" means the planning, design, development, construction, repair, extension, improvement, remodeling, alteration, rehabilitation, reconstruction or acquisition of a water pollution control facility approved by the [commissioner] Commissioner of Energy and Environmental Protection under sections 22a-475 to 22a-483, inclusive, as amended by this act.

(12) "Eligible project costs" means the total costs of an eligible project which are determined by (A) the [commissioner] Commissioner of Energy and Environmental Protection, or (B) if the project is an eligible drinking water project, the Commissioner of Public Health, and in consultation with the Public Utilities Regulatory Authority when the recipient is a water company, as defined in section 16-1, as amended by this act, to be necessary and reasonable. The total costs of a project may include the costs of all labor, materials, machinery and equipment, lands, property rights and easements, interest on project loan obligations and bond anticipation notes, including costs of issuance approved by the [commissioner] Commissioner of Energy and Environmental Protection or by the Commissioner of Public Health if the project is an eligible drinking water project, plans and specifications, surveys or estimates of costs and revenues, engineering and legal services, auditing and administrative expenses, and all other expenses approved by the [commissioner] Commissioner of Energy and Environmental Protection or by the Commissioner of Public Health if the project is an eligible drinking water project, which are incident to all or part of an eligible project.

(13) "Eligible public water system" means a water company, as defined in section 25-32a, serving twenty-five or more persons or fifteen or more service connections year round and nonprofit noncommunity water systems.

(14) "Grant account loan" means a loan to a municipality by the state from the water pollution control state account of the Clean Water Fund.

(15) "Grant account loan obligation" means bonds or other obligations issued by a municipality to evidence the permanent financing by such municipality of its indebtedness under a project funding agreement with respect to a grant account loan, made payable to the state for the benefit of the water pollution control state account of the Clean Water Fund and containing such terms and conditions and being in such form as may be approved by the commissioner.

(16) "Grant anticipation note" means any note or notes issued in anticipation of the receipt of a project grant.

(17) "Interim funding obligation" means any bonds or notes issued by a recipient in anticipation of the issuance of project loan obligations, grant account loan obligations or the receipt of project grants.

(18) "Intended use plan" means a document if required, prepared by the Commissioner of Public Health, in accordance with section 22a-478.

(19) "Municipality" means any metropolitan district, town, consolidated town and city, consolidated town and borough, city, borough, village, fire and sewer district, sewer district or public authority and each municipal organization having authority to levy and collect taxes or make charges for its authorized function.

(20) "Pollution abatement facility" means any equipment, plant, treatment works, structure, machinery, apparatus or land, or any combination thereof, which is acquired, used, constructed or operated for the storage, collection, reduction, recycling, reclamation, disposal, separation or treatment of water or wastes, or for the final disposal of residues resulting from the treatment of water or wastes, and includes, but is not limited to: Pumping and ventilating stations, facilities, plants and works; outfall sewers, interceptor sewers and collector sewers; and other real or personal property and appurtenances incident to their use or operation.

(21) "Priority list of eligible drinking water projects" means the priority list of eligible drinking water projects established by the Commissioner of Public Health in accordance with the provisions of sections 22a-475 to 22a-483, inclusive, as amended by this act.

(22) "Priority list of eligible projects" means the priority list of eligible drinking water projects or the priority list of eligible water quality projects, as applicable.

(23) "Priority list of eligible water quality projects" means the priority list of eligible water quality projects established by the [commissioner] Commissioner of Energy and Environmental Protection in accordance with the provisions of sections 22a-475 to 22a-483, inclusive, as amended by this act.

(24) "Program" means the municipal water quality financial assistance program, including the drinking water financial assistance program, created under sections 22a-475 to 22a-483, inclusive, as amended by this act.

(25) "Project grant" means a grant made to a municipality by the state from the water pollution control state account of the Clean Water Fund or the Long Island Sound clean-up account of the Clean Water Fund.

(26) "Project loan" means a loan made to a recipient by the state from the Clean Water Fund.

(27) "Project funding agreement" means a written agreement between the state, acting by and through the [commissioner] Commissioner of Energy and Environmental Protection or, if the project is an eligible drinking water project, acting by and through the Commissioner of Public Health, in consultation with the Public Utilities Regulatory Authority when the recipient is a water company, as defined in section 16-1, as amended by this act, and a recipient with respect to a project grant, a grant account loan and a project loan as provided under sections 22a-475 to 22a-483, inclusive, as amended by this act, and containing such terms and conditions as may be approved by the [commissioner] Commissioner of Energy and Environmental Protection or, if the project is an eligible drinking water project, by the Commissioner of Public Health.

(28) "Project obligation" or "project loan obligation" means bonds or other obligations issued by a recipient to evidence the permanent financing by such recipient of its indebtedness under a project funding agreement with respect to a project loan, made payable to the state for the benefit of the water pollution control federal revolving loan account, the drinking water federal revolving loan account or the drinking water state account, as applicable, of the Clean Water Fund and containing such terms and conditions and being in such form as may be approved by the [commissioner] Commissioner of Energy and Environmental Protection or, if the project is an eligible drinking water project, by the Commissioner of Public Health.

(29) "Public water system" means a public water system, as defined for purposes of the federal Safe Drinking Water Act, as amended or superseded.

(30) "Recipient" means a municipality or eligible public water system, as applicable.

(31) "State bond anticipation note" means any note or notes issued by the state in anticipation of the issuance of bonds.

(32) "State grant anticipation note" means any note or notes issued by the state in anticipation of the receipt of federal grants.

(33) "Water pollution control facility" means a pollution abatement facility which stores, collects, reduces, recycles, reclaims, disposes of, separates or treats sewage, or disposes of residues from the treatment of sewage.

(34) "Water pollution control state account" means the water pollution control state account of the Clean Water Fund created under section 22a-477.

(35) "Water pollution control federal revolving loan account" means the water pollution control federal revolving loan account of the Clean Water Fund created under section 22a-477.

(36) "Long Island Sound clean-up account" means the Long Island Sound clean-up account created under section 22a-477.

Sec. 21. Section 22a-479 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) A municipality may authorize and approve (1) the execution and delivery of project funding agreements, and (2) the issuance and sale of project obligations, grant account loan obligations and interim funding obligations, in accordance with such statutory and charter requirements as govern the authorization and approval of borrowings and the making of contracts generally by the municipality or in accordance with the provisions of subsection (e) of this section. Project loan obligations, grant account loan obligations and interim funding obligations shall be duly executed and accompanied by an approving legal opinion of bond counsel of recognized standing in the field of municipal law whose opinions are generally accepted by purchasers of municipal bonds and shall be subject to the debt limitation provisions of section 7-374; except that project loan obligations, grant account loan obligations and interim funding obligations issued in order to meet the requirements of any abatement order of the [commissioner] Commissioner of Energy and Environmental Protection shall not be subject to the debt limitation provisions of section 7-374, provided the municipality files a certificate, signed by its chief fiscal officer, with the commissioner demonstrating to the satisfaction of the commissioner that the municipality has a plan for levying a system of charges, assessments or other revenues which are sufficient, together with other available funds of the municipality, to repay such obligations as the same become due and payable.

(b) Each recipient which enters into a project funding agreement shall protect, defend and hold harmless the state, its agencies, departments, agents and employees from and against any and all claims, suits, actions, demands, costs and damages arising from or in connection with the performance or nonperformance by the recipient, or any of its officers, employees or agents, of the recipient's obligations under any project funding agreement as such project funding agreement may be amended or supplemented from time to time. Each such recipient may insure against the liability imposed by this subsection through any insurance company organized within or without this state authorized to write such insurance in this state or may elect to act as self-insurer of such liability, provided such indemnity shall not be limited by any such insurance coverage.

(c) Whenever a recipient has entered into a project funding agreement and has authorized the issuance of project loan obligations or grant account loan obligations, it may authorize the issuance of interim funding obligations. Proceeds from the issuance and sale of interim funding obligations shall be used to temporarily finance an eligible project pending receipt of the proceeds of a project loan obligation, a grant account loan obligation or project grant. Such interim funding obligations may be issued and sold to the state for the benefit of the Clean Water Fund or issued and sold to any other lender on such terms and in such manner as shall be determined by a recipient. Such interim funding obligations may be renewed from time to time by the issuance of other notes, provided the final maturity of such notes shall not exceed six months from the date of completion of the planning and design phase or the construction phase, as applicable, of an eligible project, as determined by the [commissioner] Commissioner of Energy and Environmental Protection or, if the project is an eligible drinking water project, by the Commissioner of Public Health. Such notes and any renewals of a municipality shall not be subject to the requirements and limitations set forth in sections 7-378, 7-378a and 7-264. The provisions of section 7-374 shall apply to such notes and any renewals thereof of a municipality; except that project loan obligations, grant account loan obligations and interim funding obligations issued in order to meet the requirements of an abatement order of the [commissioner] Commissioner of Energy and Environmental Protection shall not be subject to the debt limitation provisions of section 7-374, provided the municipality files a certificate, signed by its chief fiscal officer, with the commissioner demonstrating to the satisfaction of the commissioner that the municipality has a plan for levying a system of charges, assessments or other revenues sufficient, together with other available funds of the municipality, to repay such obligations as the same become due and payable. The officer or agency authorized by law or by vote of the recipient to issue such interim funding obligations shall, within any limitation imposed by such law or vote, determine the date, maturity, interest rate, form, manner of sale and other details of such obligations. Such obligations may bear interest or be sold at a discount and the interest or discount on such obligations, including renewals thereof, and the expense of preparing, issuing and marketing them may be included as a part of the cost of an eligible project. Upon the issuance of a project loan obligation or grant account loan obligation, the proceeds thereof, to the extent required, shall be applied forthwith to the payment of the principal of and interest on all interim funding obligations issued in anticipation thereof and upon receipt of a project grant, the proceeds thereof, to the extent required, shall be applied forthwith to the payment of the principal of and interest on all grant anticipation notes issued in anticipation thereof or, in either case, shall be deposited in trust for such purpose with a bank or trust company, which may be the bank or trust company, if any, at which such obligations are payable.

(d) Project loan obligations, grant account loan obligations, interim funding obligations or any obligation of a municipality that satisfies the requirements of Title VI of the federal Water Pollution Control Act or the federal Safe Drinking Water Act or other related federal act may, as determined by the [commissioner] Commissioner of Energy and Environmental Protection or, if the project is an eligible drinking water project, by the Commissioner of Public Health, be general obligations of the issuing municipality and in such case each such obligation shall recite that the full faith and credit of the issuing municipality are pledged for the payment of the principal thereof and interest thereon. To the extent a municipality is authorized pursuant to sections 22a-475 to 22a-483, inclusive, as amended by this act, to issue project loan obligations or interim funding obligations, such obligations may be secured by a pledge of revenues and other funds derived from its sewer system or public water supply system, as applicable. Each pledge and agreement made for the benefit or security of any of such obligations shall be in effect until the principal of, and interest on, such obligations have been fully paid, or until provision has been made for payment in the manner provided in the resolution authorizing their issuance or in the agreement for the benefit of the holders of such obligations. In any such case, such pledge shall be valid and binding from the time when such pledge is made. Any revenues or other receipts, funds or moneys so pledged and thereafter received by the municipality shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act. The lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the municipality, irrespective of whether such parties have notice thereof. Neither the project loan obligation, interim funding obligation, project funding agreement nor any other instrument by which a pledge is created need be recorded. All securities or other investments of moneys of the state permitted or provided for under sections 22a-475 to 22a-483, inclusive, as amended by this act, may, upon the determination of the State Treasurer, be purchased and held in fully marketable form, subject to provision for any registration in the name of the state. Securities or other investments at any time purchased, held or owned by the state may, upon the determination of the State Treasurer and upon delivery to the state, be accompanied by such documentation, including approving bond opinion, certification and guaranty as to signatures and certification as to absence of litigation, and such other or further documentation as shall from time to time be required in the municipal bond market or required by the state.

(e) Notwithstanding the provisions of the general statutes, any special act or any municipal charter governing the authorization of bonds, notes or obligations or the appropriation of funds, or governing the application for, and expenditure of, grants or loans, or governing the authorization of contracts or financing agreements or governing the pledging of sewer or water revenues or funds, a municipality may, by resolution approved by its legislative body and by (1) its water pollution control authority or sewer authority, if any, authorize a project loan and project grant agreement between the municipality and the state pursuant to sections 22a-475 to 22a-483, inclusive, as amended by this act, and appropriate funds and authorize project loan obligations and interim funding obligations of the municipality paid and secured solely by a pledge of revenues, funds and moneys of the municipality and the water pollution control authority or sewer authority, if any, derived from its sewer system, to pay for and finance the total project costs of an eligible water quality project, pursuant to a project loan and project grant agreement between the municipality and the state pursuant to sections 22a-475 to 22a-483, inclusive, as amended by this act, or (2) by its water authority, if any, authorize a project loan and project grant agreement between the municipality and the state pursuant to sections 22a-475 to 22a-483, inclusive, as amended by this act, and appropriate funds and authorize project loan obligations and interim funding obligations of the municipality paid and secured solely by a pledge of revenues, funds and moneys of the municipality and the water authority, if any, derived from its public water supply system, to pay for and finance the total project costs of an eligible water quality project, pursuant to a project loan agreement between the municipality and the state pursuant to sections 22a-475 to 22a-483, inclusive, as amended by this act. The provisions of chapter 103 shall apply to the obligations authorized by this section, to the extent such section is not inconsistent with this subsection. A project loan and project grant agreement authorized by such resolution may contain covenants and agreements with respect to, and may pledge the revenues, funds and moneys derived from, the sewer system or public water system to secure such project loan obligations and interim funding obligations, including, but not limited to, covenants and agreements with respect to holding or depositing such revenues, funds and moneys in separate accounts and agreements described in section 7-266. As used in this subsection, "legislative body" means (A) the board of selectmen in a town that does not have a charter, special act or home rule ordinance relating to its government, (B) the council, board of aldermen, representative town meeting, board of selectmen or other elected legislative body described in a charter, special act or home rule ordinance relating to government in a city, consolidated town and city, consolidated town and borough or a town having a charter, special act, consolidation ordinance or home rule ordinance relating to its government, (C) the board of burgesses or other elected legislative body in a borough, or (D) the district committee or other elected legislative body in a district, metropolitan district or other municipal corporation.

(f) Any recipient which is not a municipality shall execute and deliver project loan obligations and interim financing obligations in accordance with applicable law and in such form and with such requirements as may be determined by the [commissioner] Commissioner of Energy and Environmental Protection or by the Commissioner of Public Health if the project is an eligible drinking water project. The Commissioner of Public Health and the Public Utilities Regulatory Authority as required by section 16-19e, as amended by this act, shall review and approve all costs that are necessary and reasonable prior to the award of the project funding agreement with respect to an eligible drinking water project. The Public Utilities Regulatory Authority, where appropriate, shall include these costs in the recipient's rate structure in accordance with section 16-19e, as amended by this act.

Sec. 22. Subsection (d) of section 25-32d of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(d) The Commissioner of Public Health, in consultation with the Commissioner of Energy and Environmental Protection and the Public Utilities Regulatory Authority, shall adopt regulations in accordance with the provisions of chapter 54. Such regulations shall include a method for calculating safe yield, the contents of emergency contingency plans and water conservation plans, the contents of an evaluation of source water protection measures, a process for approval, modification or rejection of plans submitted pursuant to this section, a schedule for submission of the plans and a mechanism for determining the completeness of the plan. The plan shall be deemed complete if the [commissioner] Commissioner of Public Health does not request additional information within ninety days after the date on which the plan was submitted or, in the event that additional information has been requested, within forty-five days after the submission of such information, except that the commissioner may request an additional thirty days beyond the time in which the application is deemed complete to further determine completeness. In determining whether the water supply plan is complete, the commissioner may request only information that is specifically required by regulation. The Department of Energy and Environmental Protection and the Public Utilities Regulatory Authority, in the case of any plan which may impact any water company regulated by that agency, shall have ninety days upon notice that a plan is deemed complete to comment on the plan.

Sec. 23. Section 25-33e of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) Not more than six months after July 1, 1985, the Commissioner of Public Health, in consultation with the Public Utilities Regulatory Authority, the Commissioner of Energy and Environmental Protection and the Secretary of the Office of Policy and Management, shall delineate the preliminary boundaries of public water supply management areas and establish preliminary priorities for initiation in such areas of the planning process established in sections 25-33f to 25-33h, inclusive. Not more than one year after July 1, 1985, the [commissioner] Commissioner of Public Health, after a hearing, shall delineate the final boundaries of such areas. In making such delineation, the commissioner shall consider the following: (1) The similarity of water supply problems among water companies operating in the preliminary management area; (2) population density and distribution in the area; (3) the location of existing sources of public water supply, service areas or franchise areas; (4) existing interconnections between public water systems; (5) municipal and regional planning agency boundaries; (6) natural drainage basins; (7) topographic and geologic characteristics; and (8) any other factor he deems relevant.

(b) Not more than one year after July 1, 1985, the [commissioner] Commissioner of Public Health, after hearing, shall establish the final priorities, for initiation of the planning process. In establishing such priorities, the commissioner shall consider the existence and severity of the following in each management area: (1) Uncoordinated planning, (2) inadequate water supply, (3) unreliable water service, and (4) any other factor he deems relevant.

Sec. 24. Subsection (d) of section 25-33l of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(d) The water company desiring to acquire the interest in the source, potential source or abandoned source of water supply shall acquire such interest within twelve months of the determination by the [commissioner] Commissioner of Public Health of which water company shall be allowed to acquire such source. If the rates of the water company acquiring such source are regulated by the Public Utilities Regulatory Authority, the source acquired may be included in the rate base of such company at the acquisition price.

Sec. 25. Section 25-37e of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

Within sixty days after the receipt of a complete permit application, the Commissioner of Public Health shall issue a written decision granting or denying the permit and setting forth the reasons for his decision, provided, if the commissioner has utilized the services of a consultant or a professional review team as provided for by section 25-37d, such consultant or review team shall submit to said commissioner, within ninety days of his receipt of such application, a written report of its findings, and said commissioner shall issue his decision within one hundred twenty days of his receipt of such application or within one hundred sixty-five days of the initial submission of the application. The [commissioner] Commissioner of Public Health shall forward a copy of his decision to the applicant, the Public Utilities Regulatory Authority, the Department of Energy and Environmental Protection and the chief executive officer of the town in which the land is located. If no decision is issued within one hundred twenty days after receipt of a complete application or within one hundred sixty-five days of the initial submission of the application, the applicant may submit a written request to the [commissioner] Commissioner of Public Health to issue the permit. If the commissioner does not issue a decision within forty-five days after the submission of such a request, the permit shall be deemed to have been granted.

Sec. 26. Subsection (c) of section 28-24 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(c) Within a time period determined by the [commissioner] Commissioner of Emergency Services and Public Protection to ensure the availability of funds for the fiscal year beginning July 1, 1997, to the regional public safety emergency telecommunications centers within the state, and not later than April first of each year thereafter, the commissioner shall determine the amount of funding needed for the development and administration of the enhanced emergency 9-1-1 program. The commissioner shall specify the expenses associated with (1) the purchase, installation and maintenance of new public safety answering point terminal equipment, (2) the implementation of the subsidy program, as described in subdivision (2) of subsection (a) of this section, (3) the implementation of the transition grant program, described in subdivision (2) of subsection (a) of this section, (4) the implementation of the regional emergency telecommunications service credit, as described in subdivision (2) of subsection (a) of this section, provided, for the fiscal year ending June 30, 2001, and each fiscal year thereafter, such credit for coordinated medical emergency direction services as provided in regulations adopted under this section shall be based upon the factor of thirty cents per capita and shall not be reduced each year, (5) the training of personnel, as necessary, (6) recurring expenses and future capital costs associated with the telecommunications network used to provide emergency 9-1-1 service and the public safety services data networks, (7) for the fiscal year ending June 30, 2001, and each fiscal year thereafter, the collection, maintenance and reporting of emergency medical services data, as required under subparagraph (A) of subdivision (8) of section 19a-177, provided the amount of expenses specified under this subdivision shall not exceed two hundred fifty thousand dollars in any fiscal year, (8) for the fiscal year ending June 30, 2001, and each fiscal year thereafter, the initial training of emergency medical dispatch personnel, the provision of an emergency medical dispatch priority reference card set and emergency medical dispatch training and continuing education pursuant to subdivisions (3) and (4) of subsection (g) of section 28-25b, (9) the administration of the enhanced emergency 9-1-1 program by the Office of State-Wide Emergency Telecommunications, as the [commissioner] Commissioner of Emergency Services and Public Protection determines to be reasonably necessary, and (10) the implementation and maintenance of the public safety data network established pursuant to section 29-1j. The [commissioner] Commissioner of Emergency Services and Public Protection shall communicate [the commissioner's] his or her findings to the Public Utilities Regulatory Authority not later than April first of each year.

This act shall take effect as follows and shall amend the following sections:

Section 1

from passage

16-1(a)(2)

Sec. 2

from passage

16-1(a)(52)

Sec. 3

from passage

16-2

Sec. 4

from passage

16-3

Sec. 5

from passage

16-6b

Sec. 6

from passage

16-7

Sec. 7

from passage

16-19e

Sec. 8

from passage

16-245ee

Sec. 9

from passage

16-2c

Sec. 10

from passage

16a-3a

Sec. 11

from passage

16a-3d

Sec. 12

from passage

16a-13b

Sec. 13

from passage

16a-37c

Sec. 14

from passage

16a-40k

Sec. 15

from passage

22a-66k

Sec. 16

from passage

22a-198(f)

Sec. 17

from passage

22a-354w

Sec. 18

from passage

22a-368a(c) and (d)

Sec. 19

from passage

22a-371

Sec. 20

from passage

22a-475

Sec. 21

from passage

22a-479

Sec. 22

from passage

25-32d(d)

Sec. 23

from passage

25-33e

Sec. 24

from passage

25-33l(d)

Sec. 25

from passage

25-37e

Sec. 26

from passage

28-24(c)

Statement of Purpose:

To implement the Governor's budget recommendations.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]

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