File No. 153

Senate, March 27, 2007

The Committee on Environment reported through SEN. FINCH of the 22nd Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.

AN ACT CONCERNING ENVIRONMENTALLY FRIENDLY URBAN DEVELOPMENT.

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

Section 1. (NEW) (Effective July 1, 2007) If any person builds or substantially renovates a commercial or mixed-use building in a municipality with a population of fifty thousand or more as shown in the most recent federal decennial census, and such building meets construction standards that are consistent with or exceed the silver building rating of the Leadership in Energy and Environmental Design's rating system for new commercial or mixed-use construction and major commercial or mixed-use renovation projects, as established by the United States Green Building Council or an equivalent standard including, but not limited to, a two-globe rating in the Green Globes USA design program, such person may apply to the Secretary of the Office of Policy and Management for a grant equal to the amount of municipal real estate property taxes paid for such building for the first year after a certificate of occupancy is issued for the building. Upon receipt of such application and any supporting materials required by the secretary, the secretary shall disburse such amount to the applicant. A grant made pursuant to this section by the Secretary of the Office of Policy and Management may not exceed two hundred fifty thousand dollars.

The following fiscal impact statement and bill analysis are prepared for the benefit of members of the General Assembly, solely for the purpose of information, summarization, and explanation, and do not represent the intent of the General Assembly or either chamber thereof for any purpose:

OFA Fiscal Note

State Impact:

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill requires the Office of Policy and Management to provide a one-time grant of up to $250,000 for property tax costs to those who build or substantially renovate a commercial or mixed use building, up to certain environmental standards, if the property is located in a municipality with a population of 50,000 or more. There are 17 municipalities with a population of 50,000 or more, but it is unknown how many construction or renovation projects will meet or exceed the environmental standards in these towns. It is anticipated that this will result in significant costs, which will be in the millions of dollars, the magnitude of these costs are contingent on the volume of buildings which are built or substantially renovated that meet the environment standards. There are no funds in the current services budget, or in the Governor's recommended biennial budget for these costs.

Municipalities with Populations More than 50,000

Bridgeport, Bristol, Danbury, Fairfield, Greenwich, Hamden, Hartford, Manchester, Meriden, Milford, New Britain, New Haven, Norwalk, Stamford, Waterbury, West Hartford and West Haven.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.



OLR Bill Analysis

sSB 1333

AN ACT CONCERNING ENVIRONMENTALLY FRIENDLY URBAN DEVELOPMENT.

SUMMARY:

This bill requires the Office of Policy and Management (OPM) secretary to award grants of up to $250,000 to people who build or substantially renovate commercial or mixed-use buildings to certain environmental standards.

To be eligible, (1) the building must be in a municipality with 50,000 or more people. It also must meet or exceed (1) the silver building rating of the United States Green Building Council's Leadership in Energy and Environmental Design (LEED) rating system for new commercial construction and major renovation projects, (2) the two-globe rating of the Green Globes USA design program, or (3) an equivalent standard.

Anyone seeking a grant may apply to the OPM secretary for an amount equal to the amount of municipal real estate property taxes paid on the building in the first year after it receives a certificate of occupancy. The secretary must disburse the grant upon receipt of the application and any supporting material he requires.

EFFECTIVE DATE: July 1, 2007

BACKGROUND

LEED Rating System

The LEED rating system rates commercial and institutional projects according to their performance in the areas of sustainable site development, water savings, energy efficiency, material selection, and indoor environmental quality.

Green Globes USA

Green Globes generates an on–line report using a confidential questionnaire to help property owners measure a building's environmental performance in such areas as energy, water, hazardous material, waste management, and indoor environment.

COMMITTEE ACTION

Environment Committee

Joint Favorable Substitute