LEGISLATIVE COMMITTEES;

You asked for a summary of bills favorably reported by the Energy and Technology Committee that have been referred to the Finance, Revenue and Bonding Committee. Please note that the committee favorably reported HB 6441 to the Commerce and Exportation Committee, which then favorably reported it to the Finance Committee.

SB 636 — AAC THE AUTHORIZATION OF BONDS OF THE STATE FOR THE RELOCATION OF THE SOUTHINGTON WATER DEPARTMENT

This bill authorizes up to $ 3 million in bonding for the Department of Economic and Community Development to provide a grant to Southington for the relocation of the administrative offices of its water department.

Effective Date: July 1, 2003

HB 6441 — AAC THE FINANCING OF RENEWABLE ENERGY PROJECTS

This bill expands the powers of Connecticut Innovations, Inc. (CII) in its administration of the Renewable Energy Investment Fund. It allows CII to make advance commitments backed by its revenue, including the charge on electric bills for renewable energy that by law goes into the fund. It allows the advance commitments to take several forms, including grants, loans, and guarantees. It also allows CII to make advance commitments to the Connecticut Development Authority (CDA), and allows CDA to issue bonds backed by these commitments. CDA can use the bond proceeds to fund renewable energy projects or lend them back to CII. The bill contains provisions to protect the rights of holders and transferees of the commitments. The commitments, including any repayment obligation to CDA in connection with the bonds, are CII's special obligations payable solely from its revenue pledged to them. The commitments are not liabilities of the state or its political subdivisions, including CII.

The bill allows CII to establish subsidiaries to promote the development of renewable energy resources. The subsidiaries have the same powers and exemptions as CII, including the power to make advance commitments.

By law, CII can use the Renewable Energy Investment Fund to provide several other forms of assistance to promote the development of renewable energy. The bill specifically allows CII to use the fund to provide loans, lease or guarantee payments, and other forms of financial assistance. It requires that the following be returned to the fund:

1. any interest, income, or dividends from investments of the fund's resources and

2. any application or license fees, royalty payments, investment income, loan repayments, or other returns of expenditures from the fund.

The bill allows CII to use the fund to pay its or its subsidiaries' administrative expenses to the extent that they have not been covered by other designated sources such as application fees.

Effective Date: Upon Passage

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