AN ACT CONCERNING CONNECTICUT'S ENERGY VISION.

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

Section 1. (NEW) (Effective July 1, 2007) (a) There is established a biofuel crops grant program, which shall be administered by the Department of Agriculture. Matching grants shall be made to farmers, agricultural not-for-profit organizations and agricultural cooperatives for the cultivation and production of crops used to generate biofuels.

(b) The Commissioner of Agriculture shall adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, for the administration of the program established by this section.

Sec. 2. (NEW) (Effective July 1, 2007) (a) There is established a biofuel production incentive program, which shall be administered by the Department of Economic and Community Development to provide low interest loans for the construction of processing facilities for local biofuel feedstock crops and production plants.

(b) The Commissioner of Economic and Community Development shall adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, for the administration of the program established by this section.

Sec. 3. (NEW) (Effective July 1, 2007) (a) There is established a low interest forgiveable loan program for service stations, which shall be administered by the Department of Economic and Community Development to reduce or eliminate the upfront costs of installing new alternative fuel pumps or converting gas or diesel pumps to dispense alternative fuels.

(b) The Commissioner of Economic and Community Development shall adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, for the administration of the program established by this section.

Sec. 4. (NEW) (Effective July 1, 2007) (a) For the purposes of this section:

(1) "Office" means the "Office of Small Business Affairs", as defined in section 32-9n of the general statutes, as amended by this act;

(2) "Small business" means a business that (A) is independently owned and operated, (B) is headquartered in Connecticut, and (C) employs no more than one hundred twenty full-time employees;

(3) "Loan fund" means the "Small Business Energy Loan Program" established pursuant to this section; and

(4) "Energy efficient products" means any products or alternative energy devices, energy conservation materials and replacement furnaces and boilers that meet federal Energy Star standards and are approved in accordance with regulations adopted by the Secretary of the Office of Policy and Management.

(b) The Commissioner of Economic and Community Development, in consultation with the Commissioner of Energy, shall establish a small business energy loan program to provide zero or low interest loans and loan interest rate reductions to small businesses for energy efficiency projects and advanced energy technologies.

(c) To be eligible to participate in the loan program established in subsection (b) of this section, small businesses shall have an energy audit provided through an authorized energy audit program. Technologies identified in such audit shall become eligible technologies for the loan program.

(d) The commissioner may provide zero or low interest loans from the loan fund for eligible improvements. To be eligible for such  loans, a small business shall identify an eligible improvement project and provide necessary documentation.

(e) The commissioner may provide loan interest rate reductions from the loan fund for eligible improvements. To be eligible for an interest rate reduction, a small business shall: (1) Identify an eligible improvement project and provide documentation deemed sufficient by the commissioner, and (2) receive a loan commitment from a participating lender, including a bank, credit union, community development financial institution or farm credit association.

(f) The commissioner may buy down the participating lender's interest rate by up to four hundred basis points or four per cent  through the loan fund. Such interest rate reductions shall be available for ten years or the life of the loan, whichever period is shorter.

(g) Any loans provided by the commissioner or issued by a participating lender shall not exceed one hundred thousand dollars.

(h) Energy efficiency improvements eligible for zero or low interest loans or loan interest rate reductions through the loan fund shall include, but not be limited to: (1) Prequalified measures that are proven cost effective investments which reduce energy use, as determined by the Commissioner of Energy; (2) custom measures that pay for themselves in ten years through reduced energy use, as determined by the commissioner; (3) process improvement measures that reduce manufacturing energy use on a cost-per-unit basis, as determined by the commissioner; and (4) renewable technologies that use the sun, wind, water or ground to generate heat or power.

(i) The commissioner shall review and evaluate applications for assistance pursuant to this section using eligibility requirements and criteria set forth in regulations adopted by the Commissioner of Energy.

(j) The commissioner shall submit an annual report on the loan fund as part of the annual report prepared pursuant to section 32-1m of the general statutes. Said report shall identify the number of businesses serviced by the loan fund program, the types of improvements implemented and energy cost savings realized by such small businesses.

Sec. 5. (NEW) (Effective from passage) On or before January 1, 2008, the Conservation Advisory Board, in consultation with the electric distribution companies, shall develop and establish a program to provide grants of no more than one hundred fifty dollars to residential customers of electric distribution companies who replace an existing central or window air conditioning unit that does not meet the federal Energy Star standard with a unit that does meet said standard. The grant program shall be funded by the Energy Conservation and Load Management Funds established by the electric distribution companies pursuant to section 16-245m of the general statutes.

Sec. 6. (NEW) (Effective July 1, 2007, and applicable to assessment years commencing on and after October 1, 2006) There shall be a state grant to each municipality, as defined in this section, for the revenue loss the municipality sustains as a result of exemptions approved under the provisions of section 12-81 of the general statutes, as amended by this act. On or before September 1, 2007, the tax collector of each municipality shall certify to the secretary of the Office of Policy and Management, on a form furnished by said secretary, the amount of such revenue loss for the assessment list of October 1, 2006. On or before July first, annually, commencing July 1, 2008, the tax collector shall certify to said secretary, the amount of such revenue loss for the assessment list of the preceding October first, and the amount of such revenue loss for the supplemental assessment list for which taxes were due on the preceding January first. The secretary shall prescribe the form of such certification and shall require the tax collector to provide, with such certification, the number of taxpayers with approved claims under said section 12-81 and a copy of the applications such taxpayers filed. The secretary shall review such claims and shall notify each claimant of the modification or denial of the claimant's exemption, in accordance with section 12-120b of the general statutes. The secretary shall complete such review on or before the following July first, unless the secretary receives any such application after July first, in which case, the secretary shall have no more than twelve months to review such application. Any claimant aggrieved by the results of the secretary's review shall have the rights of appeal as set forth in section 12-120b of the general statutes. The secretary shall, on or before December fifteenth, annually, certify to the Comptroller the amount due each municipality as a grant under this section, reflecting any modification to a claimant's exemption made before December fifteenth, and the Comptroller shall draw an order on the Treasurer on or before the following December twenty-fourth and the Treasurer shall pay the amount thereof to such municipality on or before the following December thirty-first. If the secretary modifies a claimant's exemption on or after the December fifteenth following the date on which the tax collector certifies the revenue loss for said exemption, the secretary shall reflect such modification in the next payment the Treasurer shall make to such municipality pursuant to this section. The amount of the grant payable to each municipality in any year in accordance with this section shall be reduced proportionately in the event that the total of such grants in such year exceeds the amount appropriated for the purposes of this section with respect to such year. Any tax collector who fails to comply with the requirements of this section shall forfeit one hundred dollars to the state, provided the secretary may waive such forfeiture, upon receiving a written request from the tax collector not later than thirty days after the date any such certification to the secretary is required, if in the secretary's opinion there appears to be reasonable cause for the tax collector's failure to comply with the requirements of this section. As used in this section, "municipality" means each town, city, borough, consolidated town and city and consolidated town and borough, each district, as defined in section 7-324 of the general statutes, and each special services district created concurrent with, or as a result of, the dissolution of a city or borough.

Sec. 7. (NEW) (Effective from passage) The provisions of this section shall apply to each person, firm or corporation licensed, pursuant to section 14-15 of the general statutes, that executes a written agreement to lease a motor vehicle to a person, if such agreement assigns property tax payment responsibility for such leased motor vehicle to the lessee of such vehicle and the periodic fee the licensee collects from such lessee includes an amount for such property tax payment. No more than thirty days after receiving notice from the lessee of the approval of such lessee's application for the exemption pursuant to section 12-81 of the general statutes, as amended by this act, the licensee shall return, or cause to be credited to any periodic fee remaining under such agreement, any amount collected for the payment of the property tax that such exemption eliminates.

Sec. 8. (NEW) (Effective July 1, 2007, and applicable to income years commencing on or after January 1, 2007) (a) Each company, as defined in subdivision (1) of subsection (a) of section 12-213 of the general statutes, producing one hundred per cent pure biodiesel fuel, commonly known as "B100" that is a distributor, as defined in subsection (a) of section 12-455a of the general statutes, shall be entitled to a credit against the tax imposed by chapter 208 of the general statutes in an amount equal to fifty cents per gallon of such biodiesel produced in this state by such company, provided such biodiesel meets American Society for Testing and Materials specifications of ASTM D 6751, "Standard Specification for Biodiesel Fuel Blend Stock (B100) for Middle Distillate Fuels", and the registration requirements for fuels and fuel additives established by the United States Environmental Protection Agency under Section 211 of the Clean Air Act, 42 USC 7545.

(b) If, after taking into account the provisions of section 12-217zz of the general statutes, the amount of the credit to which a company is entitled under this section for the income year exceeds the allowable credit to the company for that income year, then such excess may be carried forward for the five succeeding income years.

(c) A credit under this section may be granted to a taxpayer for not more than four successive income years.

(d) A company shall not be entitled to a credit under this section with respect to its production of biodiesel as described in subsection (a) of this section during any income year commencing on or after January 1, 2020.

Sec. 9. (NEW) (Effective October 1, 2007) An electric supplier or an electric distribution company shall waive a demand charge for an operator of a fuel cell during a loss of power due to problems at an electric generation facility or with the electric transmission or distribution infrastructure or a scheduled or unscheduled shutdown of the fuel cell if said shutdown occurs during off-peak hours.

Sec. 10. (NEW) (Effective October 1, 2007) On or after October 1, 2008, any electric generating unit in the state that is fueled by either oil or natural gas and has a rating of not less than sixty-five megawatts shall have dual fuel capacity.

Sec. 11. (NEW) (Effective from passage) On or before September 1, 2007, the Department of Energy shall conduct a contested case proceeding, in accordance with the provisions of chapter 54 of the general statutes, to analyze the current compliance status of electric generation facilities with on-site fuel storage requirements, to determine how much fuel storage is necessary to operate an electric generation facility at peak load for a forty-eight-hour period and to analyze what on-site fuel storage resources are currently available in the state. Not later than January 1, 2008, the department shall submit a report with the results of such proceeding to the joint standing committee of the General Assembly having cognizance of matters relating to energy in accordance with the provisions of section 11-4a of the general statutes.

Sec. 12. (NEW) (Effective from passage) On or before September 1, 2007, the Department of Energy shall conduct a contested case proceeding, in accordance with the provisions of chapter 54 of the general statutes, to analyze (1) the appropriate number of linemen necessary for an electric distribution company to maintain, repair and extend its electric distribution lines by region under normal circumstances and under extraordinary circumstances, including, but not limited to, storm conditions, (2) whether the consolidation or centralization of line repair facilities and personnel results in longer response times to affected areas, (3) whether greater use of shield wire or other technologies may reduce power outages, and (4) the most efficacious way to notify the public regarding an electric power outage and the status of an electric distribution company's efforts to restore electricity to a particular area of the state. On or before January 1, 2008, the department shall submit a report with the results of such analysis to the joint standing committee of the General Assembly having cognizance of matters relating to energy in accordance with the provisions of section 11-4a of the general statutes.

Sec. 13. (NEW) (Effective from passage) On or before July 1, 2007, the Department of Energy shall initiate a contested case proceeding, in accordance with the provisions of chapter 54 of the general statutes, to assess how the state can ensure and enhance the reliability of electric generating facilities in the state during periods of peak electric demand. Said proceeding shall include, but not be limited to, an examination of (1) the current compliance status of electric generation facilities with existing on-site dual fuel storage and operational requirements, (2) the existing inventory of fuel storage and fuel delivery resources available to supply electric generating facilities in the state, (3) the amount of fuel delivery and storage infrastructure that would be necessary to ensure the reliable operation of in-state generating facilities during periods of peak electric demand, and (4) the types of incentives that can be offered to electric and gas market participants to enhance the reliability of electric service during periods of peak electric demand. In conducting the proceeding, the department shall seek the input of interested persons and entities, including, but not limited to, the Office of Consumer Counsel, the Secretary of the Office of Policy and Management, the state's electric and gas distribution companies, the state's electric generators, owners of natural gas pipeline facilities in the state, and the regional independent system operator. On or before January 1, 2008, the department shall submit a report containing its findings and recommendations to the joint standing committee of the General Assembly having cognizance of matters relating to energy in accordance with the provisions of section 11-4a of the general statutes.

Sec. 14. (NEW) (Effective July 1, 2007) (a) A municipal electric energy cooperative, created pursuant to chapter 101a of the general statutes, shall submit a comprehensive report on the activities of the municipal electric utilities with regard to promotion of renewable energy resources. Such report shall identify the standards and activities of municipal electric utilities to promote, encourage and expand the deployment and use of renewable energy sources within the service areas of the municipal electric utilities for all electric customer classes for the previous calendar year. The cooperative shall submit the report to the Secretary of the Office of Policy and Management and the Commissioner of Energy on or before April first of each calendar year.

(b) Such cooperative shall develop standards for the promotion of renewable resources that apply to each municipal electric utility. On or before January 1, 2007, and annually thereafter, such cooperative shall submit such standards to the Secretary of the Office of Policy and Management and the Commissioner of Energy.

Sec. 15. (NEW) (Effective from passage) (a) On or before January 1, 2009, the Commissioner of Consumer Protection shall determine whether the state's diesel fuel supply is comprised of at least ten per cent biodiesel made predominantly from materials grown in Connecticut.

(b) On or before January 1, 2009, the Commissioner of Environmental Protection shall determine whether the state's gasoline fuel supply is comprised of at least five per cent ethanol made predominantly from materials grown in Connecticut and whether such percentage jeopardizes continued attainment of the federal Clean Air Act's national ambient air quality standard for ozone pollution.

(c) On or before January 1, 2009, the Commissioners of Consumer Protection and Environmental Protection shall report to the joint standing committees of the General Assembly having cognizance of matters relating to energy, consumer protection and the environment with regard to subsections (a) and (b) of this section in accordance with the provisions of section 11-4a of the general statutes.

Sec. 16. (NEW) (Effective July 1, 2007) (a) On or before August 1, 2007, the Department of Energy shall conduct a study on the efficacy, innovativeness and customer focus of electric conservation programs. The department shall hold a public hearing on such matters. In the study, the department shall investigate the options of (1) selecting a state-wide provider of conservation programs through a competitive process open to electric distribution companies, the Connecticut Municipal Electrical Energy Cooperative and other entities; (2) retaining the current delivery system for conservation programs; or (3) having a nonprofit organization provide the conservation programs.

(b) On or before August 1, 2007, the Department of Energy shall conduct a study of, and hold a public hearing on, the effectiveness of the Renewable Energy Investment Fund, established pursuant to section 16-245n of the general statutes. Such study shall include, but not be limited to, (1) the selection of clean energy production projects and rates of success, (2) the actual megawatts of renewable power in operation in this state funded by Renewable Energy Investment Fund programs, (3) the efficacy of Renewable Energy Investment Fund technology commercialization plans and strategies, (4) the cost and cost trends of procuring clean energy options, and (5) the program's overall cost-effectiveness.

(c) The department shall submit a report containing its findings with regard to subsections (a) and (b) of this section to the joint standing committee of the General Assembly having cognizance of matters relating to energy and technology on or before January 1, 2008.

Sec. 17. (NEW) (Effective October 1, 2007) On or before January 1, 2008, the Department of Public Utility Control shall conduct a contested case proceeding to review the performance of last resort service provided pursuant to subsection (e) of section 16-244c of the general statutes, as amended by this act, including, but not limited to, the service's effect on commercial and industrial customers and the development of a competitive electric supply marketplace with competitive suppliers and products, and the performance of standard service pursuant to subsection (c) of section 16-224c of the general statutes, as amended by this act, including, but not limited to, the service's performance with respect to the standards set forth in section 56 of this act.

Sec. 18. (Effective from passage) On or before September 1, 2007, the Department of Energy shall conduct a contested case proceeding to determine how and whether to bid competitively for the aggregation and procurement of contracts for the customers receiving standard service pursuant to section 16-244c of the general statutes, as amended by this act. The department's decision shall be based on the standards set forth in section 56 of this act.

Sec. 19. Section 4a-67c of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2007):

The Department of Administrative Services and each other budgeted agency, as defined in section 4-69, exercising procurement authority shall procure equipment and appliances for state use [which] that meet or exceed the federal energy conservation standards set forth in the Energy Policy and Conservation Act, 42 USC 6295, any federal regulations adopted thereunder, [and] any applicable energy performance standards established in accordance with subsection (j) of section 16a-38 and the federal Energy Star standards. Purchases of equipment and appliances for which energy performance standards have been established pursuant to subsection (j) of section 16a-38 shall be (1) made from among those specific models of equipment and appliances which meet such standards, and (2) based, when possible, on competitive bids. Such bids shall be evaluated on the basis of the life-cycle cost standards, if any, established pursuant to subsection (b) of section 16a-38.

Sec. 20. Subsection (a) of section 4a-67d of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2008):

(a) The fleet average for cars or light duty trucks purchased by the state shall: (1) On and after October 1, 2001, have a United States Environmental Protection Agency estimated highway gasoline mileage rating of at least thirty-five miles per gallon and on and after January 1, 2003, have a United States Environmental Protection Agency estimated highway gasoline mileage rating of at least forty miles per gallon, (2) comply with the requirements set forth in 10 CFR 490 concerning the percentage of alternative-fueled vehicles required in the state motor vehicle fleet, and (3) obtain the best achievable mileage per pound of carbon dioxide emitted in its class. The alternative-fueled vehicles purchased or leased by the state to comply with said requirements shall be capable of operating on natural gas or electricity or any other system acceptable to the United States Department of Energy that operates on fuel that is available in the state, including, but not limited to, ethanol and biodiesel fuels.

Sec. 21. Section 5 of public act 05-2 of the October 25 special session is repealed and the following is substituted in lieu thereof (Effective from passage):

Notwithstanding the provisions of section 16a-40b of the general statutes, as amended by section 5 of public act 05-191, for the fiscal year ending June 30, [2006] 2008, the range of rates of interest payable on all loans pursuant to subsection (b) of said section 16a-40b for purchases set forth in subsection (a) of said section 16a-40b, except for goods or services relating to aluminum or vinyl siding, replacement central air conditioning, replacement roofs, heat pumps or solar systems and passive solar additions, shall be not less than zero per cent for any applicant in the lowest income class and not more than three per cent for any applicant for whom the adjusted gross income of the household member or members who contribute to the support of the household was at least one hundred fifteen per cent of the median area income by household size.

Sec. 22. Subsection (b) of section 2 of public act 05-4 of the October 25 special session, as amended by section 18 of public act 06-187, is repealed and the following is substituted in lieu thereof (Effective July 1, 2007, and applicable to sales made on or after July 1, 2007, and prior to July 1, 2010):

(b) Notwithstanding the provisions of the general statutes, from November 25, 2005, to April 1, 2006, and from June 1, 2006, to June 30, [2007] 2010, the provisions of chapter 219 of the general statutes shall not apply to sales of any residential weatherization products.

Sec. 23. Section 70 of public act 06-187 is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(a) Notwithstanding any provision of the general statutes, any new construction of a state facility, except salt sheds, parking garages [,] or maintenance facilities, [or school construction,] that is projected to cost five million dollars or more, and is approved and funded on or after [January] July 1, 2007, shall comply with the regulations adopted pursuant to subsection (b) of this section. The Secretary of the Office of Policy and Management, in consultation with the Commissioner of Energy and the Commissioner of Public Works, [and the Institute for Sustainable Energy,] shall exempt any facility from complying with said regulations if said secretary finds, in a written analysis, that the cost of such compliance significantly outweighs the benefits.

(b) Not later than January 1, 2007, the Commissioner of Energy, in consultation with the Secretary of the Office of Policy and Management, [in consultation with the Commissioner of Public Works, the Commissioner of Environmental Protection and the Commissioner of Public Safety,] shall adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, to adopt building 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 construction and major 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, and thereafter update such regulations as the [secretary] commissioner deems necessary.

Sec. 24. Section 10a-180 of the general statutes is amended by adding subsections (w) and (x) as follows (Effective from passage):

(NEW) (w) To act on behalf of two or more institutions for higher education, health care institutions, nursing homes, child care or child development facilities, or qualified nonprofit organizations as an electric aggregator, within the meaning of subdivision (31) of subsection (a) of section 16-1, as amended by this act, in connection with the negotiation and purchase of electric generation services from an electric supplier, and as an aggregator in connection with the negotiation and purchase of natural gas for heat or power from a person authorized to sell natural gas to end users in the state, provided the authority is not engaged in the purchase or resale of electric generation services or natural gas and provided such customers contract for the purchase of electric generation services or natural gas directly with such authorized seller.

(NEW) (x) To make grants or provide other forms of financial assistance to any institution for higher education, to any health care institution, to any nursing home, to any child care or child development facility and to any qualified nonprofit organization, for energy efficient construction or renovation projects in such amounts and subject to such eligibility and other requirements the authority establishes pursuant to written procedures adopted by the board of directors pursuant to subsection (h) of section 10a-179.

Sec. 25. Section 12-412 of the general statutes is amended by adding subdivisions (117) to (119), inclusive, as follows (Effective July 1, 2007, and applicable to sales occurring on or after July 1, 2007, and prior to July 1, 2010):

(NEW) (117) Sales of and the storage, use or other consumption of machinery and equipment used for blending renewable fuels. For purposes of this subdivision, "renewable fuels" means a blended product the components of which individually meet the specifications of the American Society of Testing and Materials (ASTM) designation D 396, D 975 or D 6751 and at least five per cent by volume of such blended product is fuel meeting the ASTM designation D 6751.

(NEW) (118) Sales of and the storage, use or other consumption of room air conditioners that meet the federal Energy Star standard.

(NEW) (119) Sales or installation, storage, use or other consumption of renewable energy systems, including their parts and components, for residential use, the primary purpose of which is reducing the use of conventional energy sources. The Commissioner of Revenue Services shall, in consultation with the Secretary of the Office of Policy and Management, adopt regulations in accordance with the provisions of chapter 54, prescribing the procedure for qualifying for this exemption and establishing standards and specifications for qualifying systems. For purposes of this subsection, "renewable energy" means energy derived from solar power, water power, wind power, fuel cells, or geothermal systems and "renewable energy system" means a system of related equipment, including structural components of a building specifically designed to retain heat derived from solar energy, which system is designed for the collection, transfer, storage, conversion and use of renewable energy, for the purpose of space heating or cooling, water heating, or generation of electricity, or any other application that, in the absence of such system, would require the use of a conventional energy source. Renewable energy system shall not include wood-burning or wood pellet-burning stoves.

Sec. 26. Subdivision (3) of section 12-412 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to sales occurring on or after July 1, 2007):

(3) (A) The sale, furnishing or service of gas, including bottled gas, and electricity when delivered to consumers through mains, lines, pipes or bottles for use (i) in any residential dwelling, or (ii) directly in agricultural production, fabrication of a finished product to be sold or an industrial manufacturing plant, provided the exemption under this subdivision (ii) shall only be allowed with respect to a metered building, location or premise at which not less than seventy-five per cent of the gas, including bottled gas, or electricity consumed at such metered building, location or premise is used for the purpose of such production, fabrication or manufacturing. Bottled gas as used in this subsection means L.P. (propane) gas.

(B) The sale or furnishing of telephone service and community antenna television and cable service, provided the exemption for services described in this subparagraph shall not be applicable to any such service rendered on or after January 1, 1990.

(C) The sale, furnishing or service of water, steam and telegraph when delivered to consumers through mains, lines, pipes or bottles.

(D) The sale or furnishing of electricity, not subject to the exemption under subparagraph (A) of this subsection. [, with respect to that portion of the charges applicable to such electricity for any month of service which is not in excess of one hundred fifty dollars.]

(E) The sale, furnishing or service of gas, water, steam or electricity for use directly in the furnishing of gas, water, steam or electricity delivered to consumers through mains, lines or pipes.

Sec. 27. Section 12-587 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(a) As used in this chapter: (1) "Company" includes a corporation, partnership, limited partnership, limited liability company, limited liability partnership, association, individual or any fiduciary thereof; (2) "quarterly period" means a period of three calendar months commencing on the first day of January, April, July or October and ending on the last day of March, June, September or December, respectively; (3) "gross earnings" means all consideration received from the first sale within this state of a petroleum product; (4) "petroleum products" means those products which contain or are made from petroleum or a petroleum derivative; (5) "first sale of petroleum products within this state" means the initial sale of a petroleum product delivered to a location in this state; (6) "export" or "exportation" means the conveyance of petroleum products from within this state to a location outside this state for the purpose of sale or use outside this state; and (7) "sale for exportation" means a sale of petroleum products to a purchaser which itself exports such products.

(b) (1) Except as otherwise provided in subdivision (2) of this subsection, any company which is engaged in the refining or distribution, or both, of petroleum products and which distributes such products in this state shall pay a quarterly tax on its gross earnings derived from the first sale of petroleum products within this state. Each company shall on or before the last day of the month next succeeding each quarterly period render to the commissioner a return on forms prescribed or furnished by the commissioner and signed by the person performing the duties of treasurer or an authorized agent or officer, including the amount of gross earnings derived from the first sale of petroleum products within this state for the quarterly period and such other facts as the commissioner may require for the purpose of making any computation required by this chapter. Except as otherwise provided in subdivision (3) of this subsection, the rate of tax shall be (A) five per cent with respect to calendar quarters prior to July 1, 2005; (B) five and eight-tenths per cent with respect to calendar quarters commencing on or after July 1, 2005, and prior to July 1, 2006; (C) six and three-tenths per cent with respect to calendar quarters commencing on or after July 1, 2006, and prior to July 1, 2007; (D) seven per cent with respect to calendar quarters commencing on or after July 1, 2007, and prior to July 1, 2008; (E) seven and one-half per cent with respect to calendar quarters commencing on or after July 1, 2008, and prior to July 1, 2013; and (F) eight and one-tenth per cent with respect to calendar quarters commencing on or after July 1, 2013.

(2) Gross earnings derived from the first sale of the following petroleum products within this state shall be exempt from tax: (A) Any petroleum products sold for exportation from this state for sale or use outside this state; (B) the product designated by the American Society for Testing and Materials as "Specification for Heating Oil D396-69", commonly known as number 2 heating oil, to be used exclusively for heating purposes or to be used in a commercial fishing vessel, which vessel qualifies for an exemption pursuant to section 12-412; (C) kerosene, commonly known as number 1 oil, to be used exclusively for heating purposes, provided delivery is of both number 1 and number 2 oil, and via a truck with a metered delivery ticket to a residential dwelling or to a centrally metered system serving a group of residential dwellings; (D) the product identified as propane gas, to be used exclusively for heating purposes; (E) bunker fuel oil, intermediate fuel, marine diesel oil and marine gas oil to be used in any vessel having a displacement exceeding four thousand dead weight tons; (F) for any first sale occurring prior to July 1, 2008, propane gas to be used as a fuel for a motor vehicle; (G) for any first sale occurring on or after July 1, 2002, grade number 6 fuel oil, as defined in regulations adopted pursuant to section 16a-22c, to be used exclusively by a company which, in accordance with census data contained in the Standard Industrial Classification Manual, United States Office of Management and Budget, 1987 edition, is included in code classifications 2000 to 3999, inclusive, or in Sector 31, 32 or 33 in the North American Industrial Classification System United States Manual, United States Office of Management and Budget, 1997 edition; (H) for any first sale occurring on or after July 1, 2002, number 2 heating oil to be used exclusively in a vessel primarily engaged in interstate commerce, which vessel qualifies for an exemption under section 12-412; (I) for any first sale occurring on or after July 1, 2000, paraffin or microcrystalline waxes; (J) for any first sale occurring prior to July 1, 2008, petroleum products to be used as a fuel for a fuel cell, as defined in subdivision (113) of section 12-412; or (K) a commercial heating oil blend containing not less than ten per cent of alternative fuels derived from agricultural produce, food waste, waste vegetable oil or municipal solid waste, including, but not limited to, biodiesel or low sulfur dyed diesel fuel.

(3) The rate of tax on gross earnings derived from the first sale of grade number 6 fuel oil, as defined in regulations adopted pursuant to section 16a-22c, to be used exclusively by a company which, in accordance with census data contained in the Standard Industrial Classification Manual, United States Office of Management and Budget, 1987 edition, is included in code classifications 2000 to 3999, inclusive, or in Sector 31, 32 or 33 in the North American Industrial Classification System United States Manual, United States Office of Management and Budget, 1997 edition, or number 2 heating oil used exclusively in a vessel primarily engaged in interstate commerce, which vessel qualifies for an exemption under section 12-412 shall be: (A) Four per cent with respect to calendar quarters commencing on or after July 1, 1998, and prior to July 1, 1999; (B) three per cent with respect to calendar quarters commencing on or after July 1, 1999, and prior to July 1, 2000; (C) two per cent with respect to calendar quarters commencing on or after July 1, 2000, and prior to July 1, 2001; and (D) one per cent with respect to calendar quarters commencing on or after July 1, 2001, and prior to July 1, 2002.

(4) Any company subject to tax under this subsection that receives in excess of one dollar and seventy-five cents per gallon from the first sale of gasoline, gasohol or diesel fuel within the state shall be deemed to have received one dollar and seventy-five cents per gallon.

(c) (1) Any company which imports or causes to be imported into this state petroleum products for sale, use or consumption in this state, other than a company subject to and having paid the tax on such company's gross earnings from first sales of petroleum products within this state, which earnings include gross earnings attributable to such imported or caused to be imported petroleum products, in accordance with subsection (b) of this section, shall pay a quarterly tax on the consideration given or contracted to be given for such petroleum product if the consideration given or contracted to be given for all such deliveries during the quarterly period for which such tax is to be paid exceeds three thousand dollars. Except as otherwise provided in subdivision (3) of this subsection, the rate of tax shall be (A) five per cent with respect to calendar quarters commencing prior to July 1, 2005; (B) five and eight-tenths per cent with respect to calendar quarters commencing on or after July 1, 2005, and prior to July 1, 2006; (C) six and three-tenths per cent with respect to calendar quarters commencing on or after July 1, 2006, and prior to July 1, 2007; (D) seven per cent with respect to calendar quarters commencing on or after July 1, 2007, and prior to July 1, 2008; (E) seven and one-half per cent with respect to calendar quarters commencing on or after July 1, 2008, and prior to July 1, 2013; and (F) eight and one-tenth per cent with respect to calendar quarters commencing on or after July 1, 2013. Fuel in the fuel supply tanks of a motor vehicle, which fuel tanks are directly connected to the engine, shall not be considered a delivery for the purposes of this subsection.

(2) Consideration given or contracted to be given for petroleum products, gross earnings from the first sale of which are exempt from tax under subdivision (2) of subsection (b) of this section, shall be exempt from tax.

(3) The rate of tax on consideration given or contracted to be given for grade number 6 fuel oil, as defined in regulations adopted pursuant to section 16a-22c, to be used exclusively by a company which, in accordance with census data contained in the Standard Industrial Classification Manual, United States Office of Management and Budget, 1987 edition, is included in code classifications 2000 to 3999, inclusive, or in Sector 31, 32 or 33 in the North American Industrial Classification System United States Manual, United States Office of Management and Budget, 1997 edition, or number 2 heating oil used exclusively in a vessel primarily engaged in interstate commerce, which vessel qualifies for an exemption under section 12-412 shall be: (A) Four per cent with respect to calendar quarters commencing on or after July 1, 1998, and prior to July 1, 1999; (B) three per cent with respect to calendar quarters commencing on or after July 1, 1999, and prior to July 1, 2000; (C) two per cent with respect to calendar quarters commencing on or after July 1, 2000, and prior to July 1, 2001; and (D) one per cent with respect to calendar quarters commencing on or after July 1, 2001, and prior to July 1, 2002.

(4) Any person subject to tax under this subsection who gives consideration or contracts to give consideration in excess of one dollar and seventy-five cents per gallon for such gasoline, gasohol or diesel fuel shall be deemed to have given one dollar and seventy-five cents per gallon. The provisions of this subdivision shall not apply in determining whether the consideration given or contracted to be given by such person for all deliveries of imported petroleum products or caused to be imported petroleum products during the quarterly period for which such tax is to be paid exceeds three thousand dollars.

(d) The amount of tax reported to be due on such return shall be due and payable on or before the last day of the month next succeeding the quarterly period. The tax imposed under the provisions of this chapter shall be in addition to any other tax imposed by this state on such company.

(e) For the purposes of this chapter, the gross earnings of any producer or refiner of petroleum products operating a service station along the highways or interstate highways within the state pursuant to a contract with the Department of Transportation or operating a service station which is used as a training or test marketing center under the provisions of subsection (b) of section 14-344d, shall be calculated by multiplying the volume of petroleum products delivered by any producer or refiner to any such station by such producer's or refiner's dealer tank wagon price or dealer wholesale price in the area of the service station.

Sec. 28. Section 12-81 of the general statutes is amended by adding subdivision (77) as follows (Effective from passage and applicable to assessment years commencing on and after October 1, 2006):

(NEW) (77) (A) Effective for assessment years commencing on and after October 1, 2006, and for a period not to exceed three assessment years following the assessment year in which it is first registered, any hybrid motor vehicle. For purposes of this subdivision, "hybrid motor vehicle" means a car or light duty truck, as defined in subsection (c) of section 4a-67d, that: (i) Draws acceleration energy from two onboard sources of stored energy, which are both an internal combustion or heat engine using combustible fuel and a rechargeable energy storage system; (ii) has a United States Environmental Protection Agency estimated highway gasoline mileage rating of no less than forty miles per gallon; and (iii) for any car or light duty truck with a model year of 2004 or later, is certified to meet or exceed the tier II bin 5 low emission vehicle classification.

(B) The exemption in this subdivision may be claimed by a person who (i) holds title to or is the registrant of a hybrid motor vehicle, or (ii) leases a hybrid motor vehicle from a licensee, under section 14-15, pursuant to a written lease agreement that assigns property tax payment responsibility for such leased hybrid motor vehicle to the lessee of such vehicle, regardless of the method of such assignment. Any person who desires to claim the exemption in this subdivision shall file a written application for such exemption, with the assessor of the town in which such hybrid motor vehicle is subject to taxation, on a form the Secretary of the Office of Policy and Management prescribes. Such application shall include, but not be limited to, the make, model, year and vehicle identification number of the hybrid motor vehicle for which the person is claiming the exemption in this subdivision, and any other information regarding such vehicle that the secretary may require. If the person is claiming an exemption for a hybrid motor vehicle registered on the first day of October in any assessment year, such person shall file an application not later than the first day of November in such year, except that for a hybrid motor vehicle registered on October 1, 2006, a person may file such application on or before August 1, 2007. With respect to any hybrid motor vehicle registered subsequent to the first day of October in any assessment year but before the first day of August in said assessment year, a person shall file such application on or before the November first of the following assessment year. Failure to file such application in the manner and form and within the time limit prescribed shall constitute a waiver of the right to the exemption under this subdivision for the assessment list for which such exemption would be applicable.

(C) For purposes of the exemption in this subdivision, the value of a hybrid motor vehicle registered on the first day of October in any assessment year shall be determined in accordance with section 12-71d, and the value of any such vehicle registered subsequent to the first day of October in any assessment year but before the first day of August in said assessment year, shall be a pro rata portion of the value determined in accordance with section 12-71d, to be determined by a ratio, the numerator of which shall be the number of months from the date of such registration, including the month in which registration occurs, to the first day of October next following and the denominator of which shall be twelve.

Sec. 29. Section 14-327c of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

The commissioner shall adopt regulations in accordance with the provisions of chapter 54 establishing standards for the quality of motor fuels sold or offered for sale in this state, including biodiesel fuel or fuel blended with biodiesel fuel. The regulations shall be consistent with standards established by the American Society for Testing and Materials, unless otherwise required by federal statute or regulation. For biodiesel fuel, the commissioner shall adopt regulations that are also consistent with standards set forth in the National Institute of Standards and Technology Handbook 130, Uniform Laws and Regulations, in the areas of legal metrology and engine fuel quality rules and any supplements, amendments or revisions thereof.

Sec. 30. Subdivision (31) of subsection (a) of section 16-1 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(31) "Electric aggregator" means (A) a person, municipality or regional water authority that gathers together electric customers for the purpose of negotiating the purchase of electric generation services from an electric supplier, [or] (B) the Connecticut Resources Recovery Authority, if it gathers together electric customers for the purpose of negotiating the purchase of electric generation services from an electric supplier, or (C) the Connecticut Health and Educational Facilities Authority, if it gathers together electric customers for the purpose of negotiating the purchase of electric generation services from an electric supplier, provided such person, municipality or authority is not engaged in the purchase or resale of electric generation services, and provided further such customers contract for electric generation services directly with an electric supplier, and may include an electric cooperative established pursuant to chapter 597.

Sec. 31. Subsection (e) of section 16-2 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2007):

(e) To insure the highest standard of public utility regulation, on and after July 1, 1997, at least three of the commissioners 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 commissioners at all times. On and after October 1, 2007, one of the commissioners shall have experience in utility customer advocacy.

Sec. 32. Subsection (a) of section 16a-15 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) Each person shall publicly display and maintain on each pump or other dispensing device from which any gasoline or other product intended as a fuel for aircraft, motor boats or motor vehicles is sold by such person, such signs as the Commissioner of Consumer Protection, by regulation adopted pursuant to chapter 54, may require to inform the public of the octane rating and price of such gasoline or other product. Each person selling biodiesel or ethanol blends shall inform the public of the percentage of such biodiesel or ethanol blends by displaying on the pump or other dispensing device the percentage of biodiesel or ethanol blends. Each person selling such gasoline or other product on both a full-serve and self-serve basis and displaying the price of such gasoline or other product at a location on the premises other than at a pump or other dispensing device shall include in such display both the full-serve and self-serve prices of such gasoline or other product, in such manner as the commissioner, by regulation, may require. All signs as to price shall be the per-gallon price and shall not be the price of less or more than one gallon.

Sec. 33. Subsection (a) of section 16-19e of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2007):

(a) In the exercise of its powers under the provisions of this title, the Department of Public Utility Control 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 department and all public service companies shall perform all of their respective public responsibilities with economy, efficiency and care for [the] 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.

Sec. 34. Section 16a-23 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(a) No person engaged in the business of refining petroleum into gasoline and furnishing gasoline to retail distributors of gasoline for sale to the public in this state shall fail to furnish gasoline to independent retail distributors of gasoline in this state, whether or not franchised by such person, at wholesale prices in reasonable quantities as long as [he] such person continues to furnish gasoline to retail distributors of gasoline in this state which are wholly owned by [him] such person or operated under a franchise granted by [him] such person.

(b) It shall constitute, prima facie, a violation of the provisions of subsection (a) of this section for any such person (1) during any calendar month beginning after July 1, 1973, to deliver to independent retail distributors of gasoline in this state a percentage of the total gallons of gasoline delivered by [him] such person to all retail distributors of gasoline in this state during that month which is lower than the percentage of the total gallons of gasoline delivered by [him] such person to all retail distributors of gasoline in this state during the period from July 1, 1971, to June 30, 1972, which was delivered by [him] such person to independent retail distributors of gasoline in this state during that period, or (2) to sell gasoline to independent retail distributors of gasoline in this state at a price during any such month which is greater than (A) the average price at which [he] such person sold gasoline to such distributors during the period from July 1, 1971, to June 30, 1972, increased by (B) a percentage equal to the percentage by which the average price for gasoline sold during that month to retail distributors of gasoline which are wholly owned by, or operated under a franchise granted by [,] that person exceeds the average price for gasoline sold to such distributors during the period from July 1, 1971, to June 30, 1972.

(c) No producer or refiner of petroleum products who is subject to the provisions of section 14-344a and furnishes gasoline to a person that sells gasoline at retail in this state shall use a pricing system under which the wholesale price paid for such gasoline by such retail seller is determined based on the geographic location of such retail seller in any geographic zone in this state or any other system that would prevent retail sellers of gasoline from paying lower prices on an equal basis with other retail sellers of gasoline in this state. Such producer or refiner shall sell such gasoline at the posted rack price of such producer or refiner. For purposes of this subsection, "posted rack price" means the price of each brand and grade of gasoline offered for sale by such producer and refiner. The posted rack price shall be promulgated by such producer or refiner at six o'clock p.m. each day. Such posted rack price shall be the controlling price for the twenty-four-hour period commencing the following twelve o'clock midnight. Such producer or refiner shall promulgate the posted rack price by: (1) Posting a sign conspicuously listing such price at the point of sale, and (2) sending notices to all franchisees and, upon request, to other retail sellers, by facsimile, electronic mail or other means. Such producer and refiner shall not discriminate in the price of such gasoline charged to retail sellers of gasoline in this state, except to charge the actual cost of transportation for gasoline delivered in this state or to offer discounts or rebates that may be determined by such producer or refiner from time to time. Such discounts or rebates shall be disclosed by the producer or refiner to the retail sellers and shall be offered by the producer or refiner to all of its retail sellers on equal terms and conditions. When offered, all such discounts or rebates and the time period they are offered shall be listed as a separate line item entry on each invoice.

[(c)] (d) A violation of the provisions of subsection (a) or (c) of this section constitutes an unfair trade practice [within the provisions of chapter 735a] under subsection (a) of section 42-110b.

(e) The provisions of subsection (c) of this section shall expire two years from the effective date of this section.

Sec. 35. Section 16-32g of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2007):

Not later than January 1, [1988] 2008, each electric or electric distribution company shall submit to the Department of Public Utility Control a plan for the maintenance of poles, wires, conduits or other fixtures, along public highways or streets for the transmission or distribution of electric current, owned, operated, managed or controlled by such company, in such format as the department shall prescribe. Such plan shall include a summary of appropriate staffing levels necessary for the maintenance of said fixtures and a program for the trimming of tree branches and limbs located in close proximity to overhead electric wires where such branches and limbs may cause damage to such electric wires. The department shall review each plan and may issue such orders as may be necessary to ensure compliance with this section. The department may require each electric or electric distribution company to submit an updated plan at such time and containing such information as the department may prescribe. The department shall adopt regulations, in accordance with the provisions of chapter 54, to carry out the provisions of this section.

Sec. 36. Section 16a-41a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(a) The Commissioner of Social Services shall submit to the joint standing committees of the General Assembly having cognizance of energy planning and activities, appropriations, and human services the following on the implementation of the block grant program authorized under the Low-Income Home Energy Assistance Act of 1981, as amended:

(1) Not later than August first, annually, a Connecticut energy assistance program annual plan which establishes guidelines for the use of funds authorized under the Low-Income Home Energy Assistance Act of 1981, as amended, and includes the following:

(A) Criteria for determining which households are to receive emergency and weatherization assistance;

(B) A description of systems used to ensure referrals to other energy assistance programs and the taking of simultaneous applications, as required under section 16a-41;

(C) A description of outreach efforts;

(D) Estimates of the total number of households eligible for assistance under the program and the number of households in which one or more elderly or physically disabled individuals eligible for assistance reside; and

(E) Design of a basic grant for eligible households that does not discriminate against such households based on the type of energy used for heating;

(2) Not later than January thirtieth, annually, a report covering the preceding months of the program year, including:

(A) In each community action agency geographic area and Department of Social Services region, the number of fuel assistance applications filed, approved and denied, the number of emergency assistance requests made, approved and denied and the number of households provided weatherization assistance;

(B) In each such area and district, the total amount of fuel, emergency and weatherization assistance, itemized by such type of assistance, and total expenditures to date; and

(C) For each state-wide office of each state agency administering the program, each community action agency and each Department of Social Services region, administrative expenses under the program, by line item, and an estimate of outreach expenditures; and

(3) Not later than November first, annually, a report covering the preceding twelve calendar months, including:

(A) In each community action agency geographic area and Department of Social Services region, (i) seasonal totals for the categories of data submitted under subdivision (1) of this subsection, (ii) the number of households receiving fuel assistance in which elderly or physically disabled individuals reside, and (iii) the average combined benefit level of fuel, emergency and renter assistance;

(B) Types of weatherization assistance provided;

(C) Percentage of weatherization assistance provided to tenants;

(D) The number of homeowners and tenants whose heat or total energy costs are not included in their rent receiving fuel and emergency assistance under the program by benefit level;

(E) The number of homeowners and tenants whose heat is included in their rent and who are receiving assistance, by benefit level; and

(F) The number of households receiving assistance, by energy type and total expenditures for each energy type.

(b) The Commissioner of Social Services shall implement a program to purchase [number two home heating oil at a reduced rate for low-income households participating in the Connecticut energy assistance program and the state-appropriated fuel assistance program. Each agency administering a fuel assistance program shall submit reports, as requested by the commissioner, concerning pricing information from vendors of number two home heating oil participating in the program. Such information shall include, but not be limited to, a vendor's regular retail price per gallon of number two home heating oil, the reduced price per gallon paid by the state for the heating oil, the number of gallons delivered to the state under the program and the total savings under the program due to the purchase of number two home heating oil at a reduced rate] deliverable fuel for low income households participating in the Connecticut energy assistance program. The commissioner shall ensure that all fuel assistance recipients are treated the same as any other similarly situated customer and that no fuel vendor discriminates against fuel assistance program recipients who are under the vendor's standard payment, delivery, service or other similar plans. The commissioner shall take advantage of programs offered by fuel vendors that reduce the cost of the fuel purchased, including, but not limited to, fixed price, capped price, prepurchase or summer-fill programs that reduce program cost and that make the maximum use of program revenues. The commissioner shall ensure that all agencies administering the fuel assistance program shall make payments to program fuel vendors in advance of the delivery of energy where vendor provided price-management strategies require payments in advance.

(c) Each community action agency administering a fuel assistance program shall submit reports, as requested by the Commissioner of Social Services, concerning pricing information from vendors of deliverable fuel participating in the program. Such information shall include, but not be limited to, the state-wide or regional retail price per unit of deliverable fuel, the reduced price per unit paid by the state for the deliverable fuel in using price management strategies offered by program vendors for all consumers, the number of units delivered to the state under the program and the total savings under the program due to the purchase of deliverable fuel using price-management strategies offered by program vendors for all consumers.

(d) Each community action agency administering a fuel assistance program shall begin accepting applications for the program on or before September first of each year.

Sec. 37. Subdivision (16) of subsection (a) of section 16a-48 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2007):

(16) "Commercial refrigerators and freezers" means reach-in cabinets, pass-through cabinets, roll-in cabinets and roll-through cabinets that have less than eighty-five feet of capacity [. "Commercial refrigerators and freezers" does not include walk-in models or consumer products regulated under the federal National Appliance Energy Conservation Act of 1987] designed for the refrigerated or frozen storage of food and food products.

Sec. 38. Subsection (a) of section 16a-48 of the general statutes is amended by adding subdivisions (23) to (41), inclusive, as follows (Effective October 1, 2007):

(NEW) (23) "Electricity ratio" means the ratio of furnace electricity use to total furnace energy use;

(NEW) (24) "Boiler" means a space heater that is a self-contained appliance for supplying steam or hot water primarily intended for space-heating. "Boiler" does not include hot water supply boilers;

(NEW) (25) "Central furnace" means a self-contained space heater designed to supply heated air through ducts of more than ten inches in length;

(NEW) (26) "Residential furnace or boiler" means a product that uses only single-phase electric current, or single-phase electric current or DC current in conjunction with natural gas, propane or home heating oil, and which (A) is designed to be the principal heating source for the living space of a residence; (B) is not contained in the same cabinet with a central air conditioner with a rated cooling capacity of not less than sixty-five thousand BTUs per hour; (C) is an electric central furnace, electric boiler, forced-air central furnace, gravity central furnace, or low pressure steam or hot water boiler; and (D) has a heat input rate of less than three hundred thousand BTUs per hour for electric boilers and low pressure steam or hot water boilers and less than two hundred twenty-five thousand BTUs per hour for forced-air central furnaces, gravity central furnaces and electric central furnaces;

(NEW) (27) "Furnace air handler" means the section of the furnace that includes the fan, blower and housing, generally upstream of the burners and heat exchanger. The furnace air handler may include a filter and a cooling coil;

(NEW) (28) "High-intensity discharge lamp" means a lamp in which light is produced by the passage of an electric current through a vapor or gas, and in which the bulb wall temperature stabilizes the light-producing arc and the arc tube has a bulb wall loading in excess of three watts per square centimeter;

(NEW) (29) "Medium voltage dry-type distribution transformer" means a transformer that (A) has an input voltage of not less than six hundred volts but not more than thirty-four thousand five hundred volts; (B) is air-cooled; (C) does not use oil as a coolant; and (D) is rated for operation at a frequency of sixty Hertz. "Medium voltage dry-type distribution transformer" does not mean devices with multiple voltage taps, with the highest voltage tap not less than twenty per cent more than the lowest voltage tap, or devices that are designed to be used in a special purpose application and are unlikely to be used in general purpose applications including drive transformers, rectifier transformers, auto transformers, uninterruptible power system transformers, impedance transformers, regulating transformers, sealed and nonventilating transformers, machine tool transformers, welding transformers, grounding transformers or testing transformers;

(NEW) (30) "Metal halide lamp" means a high intensity discharge lamp in which the major portion of the light is produced by radiation of metal halides and their products of dissociation, possibly in combination with metallic vapors;

(NEW) (31) "Metal halide lamp fixture" means a light fixture designed to be operated with a metal halide lamp and a ballast for a metal halide lamp;

(NEW) (32) "Probe start metal halide ballast" means a ballast used to operate metal halide lamps that does not contain an ignitor and that instead starts lamps by using a third starting electrode probe in the arc tube;

(NEW) (33) "Single voltage external AC to DC power supply" means a device that (A) is designed to convert line voltage AC input into lower voltage DC output; (B) is able to convert to only one DC output voltage at a time; (C) is sold with, or intended to be used with, a separate end-use product that constitutes the primary power load; (D) is contained within a separate physical enclosure from the end-use product; (E) is connected to the end-use product in a removable or hard-wired male and female electrical connection, cable, cord or other wiring; (F) does not have batteries or battery packs, including those that are removable or that physically attach directly to the power supply unit; (G) does not have a battery chemistry or type selector switch and indicator light, or does not have a battery chemistry or type selector switch and a state of charge meter; and (H) has a nameplate output power less than or equal to two hundred fifty watts;

(NEW) (34) "State regulated incandescent reflector lamp" means a lamp that is not colored or designed for rough or vibration service applications, that has an inner reflective coating on the outer bulb to direct the light, has a E26 medium screw base, has a rated voltage or voltage range that lies at least partially within one hundred fifteen to one hundred thirty volts, and that falls into one of the following categories: (A) A bulged reflector or elliptical reflector or a blown parabolic aluminized reflector bulb shape and that has a diameter that equals or exceeds two and one-quarter inches, or (B) a reflector, parabolic aluminized reflector, bulged reflector or similar bulb shape and that has a diameter of two and one-quarter to two and three-quarter inches. "State regulated incandescent reflector lamp" does not include ER30, BR30, BR40 and ER40 lamps of not more than fifty watts, BR30, BR40 and ER40 lamps of sixty-five watts and R20 lamps of not more than forty-five watts;

(NEW) (35) "Bottle-type water dispenser" means a water dispenser that uses a bottle or reservoir as the source of potable water;

(NEW) (36) "Commercial hot food holding cabinet" means a heated, fully-enclosed compartment with one or more solid or partial glass doors that is designed to maintain the temperature of hot food that has been cooked in a separate appliance. "Commercial hot food holding cabinet" does not include heated glass merchandizing cabinets, drawer warmers or cook-and-hold appliances;

(NEW) (37) "Pool heater" means an appliance designed for heating nonpotable water contained at atmospheric pressure for swimming pools, spas, hot tubs and similar applications, including natural gas, heat pump, oil and electric resistance pool heaters;

(NEW) (38) "Portable electric spa" means a factory-built electric spa or hot tub, supplied with equipment for heating and circulating water;

(NEW) (39) "Residential pool pump" means a pump used to circulate and filter pool water in order to maintain clarity and sanitation;

(NEW) (40) "Walk-in refrigerator" means a space refrigerated to temperatures at or above thirty-two degrees Fahrenheit that can be walked into and is designed for the refrigerated storage of food and food products;

(NEW) (41) "Walk-in freezer" means a space refrigerated to temperatures below thirty-two degrees Fahrenheit that can be walked into and is designed for the frozen storage of food and food products.

Sec. 39. Subsection (b) of section 16a-48 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2007):

(b) The provisions of this section apply to the testing, certification and enforcement of efficiency standards for the following types of new products sold, offered for sale or installed in the state: (1) Commercial clothes washers; (2) commercial refrigerators and freezers; (3) illuminated exit signs; (4) large packaged air-conditioning equipment; (5) low voltage dry-type distribution transformers; (6) torchiere lighting fixtures; (7) traffic signal modules; (8) unit heaters; (9) residential furnaces and boilers; (10) medium voltage dry-type transformers; (11) metal halide lamp fixtures; (12) single voltage external AC to DC power supplies; (13) state regulated incandescent reflector lamps; (14) bottle-type water dispensers; (15) commercial hot food holding cabinets; (16) portable electric spas; (17) walk-in refrigerators and walk-in freezers; (18) pool heaters; and [(9)] (19) any other products as may be designated by the department in accordance with subdivision (3) of subsection (d) of this section.

Sec. 40. Subsection (g) of section 16a-48 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2007):

(g) Manufacturers of new products set forth in subsection (b) of this section or designated by the department shall certify to the secretary that such products are in compliance with the provisions of this section, except that certification is not required for single voltage external AC to DC power supplies and walk-in refrigerators and walk-in freezers. All single voltage external AC to DC power supplies shall be labeled as described in the January 2006 California Code of Regulations, Title 20, Section 1607(9). The department, in consultation with the secretary, shall promulgate regulations governing the certification of such products. The secretary shall publish an annual list of such products.

Sec. 41. Subsection (a) of section 16-50k of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2007):

(a) Except as provided in subsection (b) of section 16-50z, no person shall exercise any right of eminent domain in contemplation of, commence the preparation of the site for, or commence the construction or supplying of a facility, or commence any modification of a facility, that may, as determined by the council, have a substantial adverse environmental effect in the state without having first obtained a certificate of environmental compatibility and public need, hereinafter referred to as a "certificate", issued with respect to such facility or modification by the council, except fuel cells with a generating capacity of ten kilowatts or less which shall not require such certificate. Any facility with respect to which a certificate is required shall thereafter be built, maintained and operated in conformity with such certificate and any terms, limitations or conditions contained therein. Notwithstanding the provisions of this chapter or title 16a, the council shall, in the exercise of its jurisdiction over the siting of generating facilities, approve by declaratory ruling (1) the construction of a facility solely for the purpose of generating electricity, other than an electric generating facility that uses nuclear materials or coal as fuel, at a site where an electric generating facility operated prior to July 1, 2004, (2) the construction or location of any fuel cell, unless the council finds a substantial adverse environmental effect, or of any customer-side distributed resources project or facility or grid-side distributed resources project or facility with a capacity of not more than sixty-five megawatts, as long as such project meets air and water quality standards of the Department of Environmental Protection, and (3) the siting of temporary generation solicited by the Department of Public Utility Control pursuant to section 16-19ss.

Sec. 42. Subdivision (2) of subsection (a) of section 16-50l of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(2) On or after December 1, 2004, the filing of an application pursuant to subdivision (1) of this subsection shall initiate the request-for-proposal process, except for an application for a facility described in subdivision (5) or (6) of subsection (a) of section 16-50i and subject to any Connecticut Energy Advisory Board determination pursuant to subsection (b) of section 16a-7c.

Sec. 43. Section 16-243h of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2007):

On and after January 1, 2000, each electric supplier or any electric distribution company providing standard offer, transitional standard offer, standard service or back-up electric generation service, pursuant to section 16-244c, as amended by this act, shall give a credit for any electricity generated by a residential or commercial customer from a Class I renewable energy source or a hydropower facility that has a nameplate capacity rating of one megawatt or less. The electric distribution company providing electric distribution services to such a customer shall make such interconnections necessary to accomplish such purpose. An electric distribution company, at the request of any residential customer served by such company and if necessary to implement the provisions of this section, shall provide for the installation of metering equipment that (1) measures electricity consumed by such customer from the facilities of the electric distribution company, (2) deducts from the measurement the amount of electricity produced by the customer and not consumed by the customer, and (3) registers, for each billing period, the net amount of electricity either (A) consumed and produced by the customer, or (B) the net amount of electricity produced by the customer. If the customer is a net producer over the billing period, the electric distribution company shall pay such customer in the following billing period for the excess that was generated in the previous billing period at the avoided rate for the previous billing period, as determined by the regional independent system operator. A residential or commercial customer who generates electricity from a generating unit with a name plate capacity of more than ten kilowatts of electricity pursuant to the provisions of this section shall be assessed for the competitive transition assessment, pursuant to section 16-245g and the systems benefits charge, pursuant to section 16-245l based on the amount of electricity consumed by the customer from the facilities of the electric distribution company without netting any electricity produced by the customer. [For purposes of this section, "residential customer" means a customer of a single-family dwelling or multifamily dwelling consisting of two to four units.]

Sec. 44. Subsection (c) of section 16-244c of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(c) (1) On and after January 1, 2007, each electric distribution company shall provide electric generation services through standard service to any customer who (A) does not arrange for or is not receiving electric generation services from an electric supplier, and (B) [does not use a demand meter or] has a maximum demand of less than five hundred kilowatts.

(2) Not later than [October 1, 2006] December 1, 2007, and [periodically as required by subdivision (3) of this subsection, but not more often than every calendar quarter] annually thereafter, the Department of Public Utility Control shall establish the standard service price for such customers pursuant to [subdivision (3) of] this subsection, except the department may adjust the price more frequently if it determines that such adjustment would be in the best interest of ratepayers, but not more than once per calendar quarter. Said price shall reflect the cost of electricity purchased for current and former customers for which the electric distribution companies procured contracts for electric generation services provided the department shall establish rates for electric generation services to assure that customers who leave standard service continue to pay an appropriate amount of the costs of electricity commitments for such service. Each electric distribution company shall recover the actual net costs of procuring and providing electric generation services pursuant to this subsection, provided such company mitigates the costs it incurs for the procurement of electric generation services for customers who are no longer receiving service pursuant to this subsection.

(3) An electric distribution company providing electric generation services pursuant to this subsection shall mitigate the variation of the price of the service offered to its customers by procuring electric generation services contracts in the manner prescribed in a plan approved by the department. Such plan shall require the procurement of a portfolio of service contracts sufficient to meet the projected load of the electric distribution company. Such plan shall require that the portfolio of service contracts be procured in an overlapping pattern of fixed periods at such times and in such manner and duration as the department determines to be most likely to produce just, reasonable and reasonably stable retail rates while reflecting underlying wholesale market prices over time. The portfolio of contracts shall be assembled in such manner as to invite competition; guard against favoritism, improvidence, extravagance, fraud and corruption; and secure a reliable electricity supply while avoiding unusual, anomalous or excessive pricing. The portfolio of contracts procured under such plan shall be for terms of not less than six months, provided contracts for shorter periods may be procured under such conditions as the department shall prescribe to (A) ensure the lowest rates possible for end-use customers; (B) ensure reliable service under extraordinary circumstances; and (C) ensure the prudent management of the contract portfolio. An electric distribution company may receive a bid for an electric generation services contract from any of its generation entities or affiliates, provided such generation entity or affiliate submits its bid the business day preceding the first day on which an unaffiliated electric supplier may submit its bid and further provided the electric distribution company and the generation entity or affiliate are in compliance with the code of conduct established in section 16-244h.

(4) The department, in consultation with the Office of Consumer Counsel, shall retain the services of a third-party entity with expertise in the area of energy procurement to oversee the initial development of the request for proposals and the procurement of contracts by an electric distribution company for the provision of electric generation services offered pursuant to this subsection. Costs associated with the retention of such third-party entity shall be included in the cost of electric generation services that is included in such price.

(5) Each bidder for a standard service contract shall submit its bid to the electric distribution company and the third-party entity who shall jointly review the bids, conduct a cost-based analysis of such bids and submit an overview of all bids together with a joint recommendation to the department as to the preferred bidders. The Department of Energy shall make available to the Office of Consumer Counsel and the Attorney General all bids it receives pursuant to this subsection, provided the Office of Consumer Counsel and the Attorney General shall not make the bids available to the public until the department does so pursuant to subdivision (6) of this subsection. The department may, within ten business days of submission of the overview, reject the recommendation regarding preferred bidders if the bids are not in the best interest of the customer. In analyzing the bids, the Department of Energy shall determine if they are consistent with the approved integrated resource plan pursuant to section 56 of this act. In the event that the department rejects the preferred bids, the electric distribution company and the third-party entity shall rebid the service pursuant to this subdivision.

(6) Upon approval of the preferred bids by the Department of Energy, the respective electric distribution company shall enter into contracts with approved bidders. All bids received by the Department of Energy during the procurement process shall be available for public review six months after department approval or rejection.

(7) Not later than October 1, 2009, and biennially thereafter, the department shall conduct a contested case proceeding in accordance with chapter 54 to review the efficacy of the process of procuring contracts pursuant to this subsection including an assessment of the extent to which the standards set forth in section 56 of this act is met.

Sec. 45. Subsection (d) of section 16-244c of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(d) (1) [Notwithstanding] On or before January 1, 2008, and on a continuing basis, notwithstanding the provisions of this section regarding the electric generation services component of the transitional standard offer or the procurement of electric generation services under standard service, section 16-244h or 16-245o, the Department of Public Utility Control [may, from time to time, direct an electric distribution company] shall direct the electric distribution companies to offer, through an electric supplier or electric suppliers, [before January 1, 2007, one or more alternative transitional standard offer options or, on or after January 1, 2007,] one or more [alternative standard] renewable service options. Such [alternative] renewable service options shall include, but not be limited to, an option that consists of the provision of electric generation services that exceed the renewable portfolio standards established in section 16-245a and may include an option that utilizes strategies or technologies that reduce the overall consumption of electricity of the customer.

(2) (A) The department shall develop such [alternative] renewable service option or options in [a] contested [case] cases, as necessary, conducted in accordance with the provisions of chapter 54. The department shall determine the terms and conditions of such [alternative] renewable service option or options, including, but not limited to, (i) the minimum contract terms, including pricing, length and termination of the contract, and (ii) the minimum percentage of electricity derived from Class I or Class II renewable energy sources, if applicable. The electric distribution [company] companies shall, under the supervision of the department, subsequently conduct a bidding process in order to solicit electric suppliers to provide such [alternative] renewable service option or options.

(B) The department may reject some or all of the bids received pursuant to the bidding process.

(3) The department may require an electric supplier to provide forms of assurance to satisfy the department that the contracts resulting from the bidding process will be fulfilled.

(4) An electric supplier who fails to fulfill its contractual obligations resulting from this subdivision shall be subject to civil penalties, in accordance with the provisions of section 16-41, or the suspension or revocation of such supplier's license or a prohibition on the acceptance of new customers, following a hearing that is conducted as a contested case, in accordance with the provisions of chapter 54.

Sec. 46. Subsection (e) of section 16-244c of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(e) (1) On and after January 1, 2007, an electric distribution company shall serve customers that are not eligible to receive standard service pursuant to subsection (c) of this section as the supplier of last resort. This subsection shall not apply to customers purchasing power under contracts entered into pursuant to section 16-19hh. Any customer previously receiving electric generation services from an electric supplier shall not be eligible to receive supplier of last resort service pursuant to this subsection unless such customer agrees to receive supplier of last resort service for a period of not less than one year.

(2) An electric distribution company shall procure electricity semiannually to provide electric generation services to customers pursuant to this subsection. On or before July 1, 2007, an electric distribution company shall commence securing contracts to serve said customers. The Department of Public Utility Control shall determine a price for such customers that reflects the full cost of providing the electricity on a monthly basis and that is consistent with the approved integrated resource plan pursuant to section 56 of this act or, on an alternative basis as determined pursuant to subsection (3) of this subsection. All six months of prices shall be published before any customer receives generation services pursuant to this subsection. Each electric distribution company shall recover the actual net costs of procuring and providing electric generation services pursuant to this subsection, provided such company mitigates the costs it incurs for the procurement of electric generation services for customers that are no longer receiving service pursuant to this subsection.

(3) On or after July 1, 2008, the Department of Public Utility Control may conduct a contested case proceeding, in accordance with the provisions of chapter 54, to study the frequency with which it should determine the price for supplier of last resort service.

Sec. 47. Subdivision (2) of subsection (l) of section 16-245 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(2) No electric aggregator shall negotiate a contract for the purchase of electric generation services from an electric supplier unless such aggregator has (A) obtained a certificate of registration from the Department of Public Utility Control in accordance with this subsection, or (B) in the case of a municipality, regional water authority, the Connecticut Health and Educational Facilities Authority and the Connecticut Resources Recovery Authority, registered in accordance with section 16-245b. An electric aggregator that was licensed pursuant to this section prior to July 1, 2003, shall receive a certificate of registration on July 1, 2003.

Sec. 48. Section 16-245b of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

Notwithstanding the provisions of subsection (a) of section 16-245, the provisions of said section shall not apply to (1) any municipality or regional water authority that aggregates the sale of electric generation services, [or to] the Connecticut Resources Recovery Authority if such authority aggregates the sale of electric generation services, for end use customers located within the boundaries of such municipality or regional water authority, or the Connecticut Health and Educational Facilities Authority if such authority aggregates the sale of electric generation services for two or more health care institutions, institutions for higher education, nursing homes, child care or child care development facility, or qualified nonprofit organizations, or any combination thereof, each as described in section 10a-178, or the employees or residents of any institution for higher education, health care institution, nursing home, child care or child development facility, or qualified nonprofit organization, in each case as end use customers in the state, (2) any municipality that joins together with other municipalities to aggregate the sale of electric generation services for end use customers located within the boundaries of such municipalities, or (3) any municipality or regional water authority that aggregates the purchase of electric generation services for municipal facilities, street lighting, boards of education and other publicly-owned facilities within (A) the municipality for which the municipality is financially responsible, or (B) the municipalities that are within the authorized service area of the regional water authority. Any municipality or regional water authority that aggregates in accordance with this section shall register not less than annually with the Department of Public Utility Control on a form prescribed by the department.

Sec. 49. Subsection (a) of section 16-245n of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2007):

(a) For purposes of this section, "renewable energy" means solar energy, wind, ocean thermal energy, wave or tidal energy, fuel cells, landfill gas, hydropower that will meet the low-impact standards of the Low-Impact Hydropower Institute, hydrogen production and hydrogen conversion technologies, low emission advanced biomass conversion technologies, alternative fuel, including ethanol, biodiesel, or other fuel derived from agricultural produce, food waste, waste vegetable oil or municipal solid waste, usable electricity from combined heat and power systems with waste heat recovery systems, thermal storage systems and other energy resources and emerging technologies which have significant potential for commercialization and which do not involve the combustion of coal, petroleum or petroleum products, municipal solid waste or nuclear fission.

Sec. 50. Section 16-262c of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2007):

(a) Notwithstanding any other provision of the general statutes no electric, electric distribution, gas, telephone or water company, no electric supplier or certified telecommunications provider, and no municipal utility furnishing electric, gas, telephone or water service shall cause cessation of any such service by reason of delinquency in payment for such service (1) on any Friday, Saturday, Sunday, legal holiday or day before any legal holiday, provided such a company, electric supplier, certified telecommunications provider or municipal utility may cause cessation of such service to a nonresidential account on a Friday which is not a legal holiday or the day before a legal holiday when the business offices of the company, electric supplier, certified telecommunications provider or municipal utility are open to the public the succeeding Saturday, (2) at any time during which the business offices of said company, electric supplier, certified telecommunications provider or municipal utility are not open to the public, or (3) within one hour before the closing of the business offices of said company, electric supplier or municipal utility.

(b) (1) From November first to [April fifteenth] May first, inclusive, no electric or electric distribution company, as defined in section 16-1, no electric supplier and no municipal utility furnishing electricity shall terminate or refuse to reinstate residential electric service in hardship cases where the customer lacks the financial resources to pay his or her entire account. From November first to [April fifteenth] May first, inclusive, no gas company and no municipal utility furnishing gas shall terminate or refuse to reinstate residential gas service in hardship cases where the customer uses such gas for heat and lacks the financial resources to pay his or her entire account, except a gas company that, between [April sixteenth] May second and October thirty-first, terminated gas service to a residential customer who uses gas for heat and who, during the previous period of November first to [April fifteenth] May first, had gas service maintained because of hardship status, may refuse to reinstate the gas service from November first to [April fifteenth] May first, inclusive, only if the customer has failed to pay, since the preceding November first, the lesser of: (A) Twenty per cent of the outstanding principal balance owed the gas company as of the date of termination, (B) one hundred dollars, or (C) the minimum payments due under the customer's amortization agreement. Notwithstanding any other provision of the general statutes to the contrary, no electric, electric distribution or gas company, no electric supplier and no municipal utility furnishing electricity or gas shall terminate or refuse to reinstate residential electric or gas service where the customer lacks the financial resources to pay his or her entire account and for which customer or a member of the customer's household the termination or failure to reinstate such service would create a life-threatening situation.

(2) During any period in which a residential customer is subject to termination, an electric, electric distribution or gas company, an electric supplier or a municipal utility furnishing electricity or gas shall provide such residential customer whose account is delinquent an opportunity to enter into a reasonable amortization agreement with such company, electric supplier or utility to pay such delinquent account and to avoid termination of service. Such amortization agreement shall allow such customer adequate opportunity to apply for and receive the benefits of any available energy assistance program. An amortization agreement shall be subject to amendment on customer request if there is a change in the customer's financial circumstances.

(3) As used in this section, (A) "household income" means the combined income over a twelve-month period of the customer and all adults, except children of the customer, who are and have been members of the household for six months or more, and (B) "hardship case" includes, but is not limited to: (i) A customer receiving local, state or federal public assistance; (ii) a customer whose sole source of financial support is Social Security, Veterans' Administration or unemployment compensation benefits; (iii) a customer who is head of the household and is unemployed, and the household income is less than three hundred per cent of the poverty level determined by the federal government; (iv) a customer who is seriously ill or who has a household member who is seriously ill; (v) a customer whose income falls below one hundred twenty-five per cent of the poverty level determined by the federal government; and (vi) a customer whose circumstances threaten a deprivation of food and the necessities of life for himself or dependent children if payment of a delinquent bill is required.

(4) In order for a residential customer of a gas or electric distribution company using gas or electricity for heat to be eligible to have any moneys due and owing deducted from the customer's delinquent account pursuant to this subdivision, the company furnishing gas or electricity shall require that the customer (A) apply and be eligible for benefits available under the Connecticut energy assistance program or state appropriated fuel assistance program; (B) authorize the company to send a copy of the customer's monthly bill directly to any energy assistance agency for payment; (C) enter into and comply with an amortization agreement, which agreement is consistent with decisions and policies of the Department of Public Utility Control. Such an amortization agreement shall reduce a customer's payment by the amount of the benefits reasonably anticipated from the Connecticut energy assistance program, state appropriated fuel assistance program or other energy assistance sources. Unless the customer requests otherwise, the company shall budget a customer's payments over a twelve-month period with an affordable increment to be applied to any arrearage, provided such payment plan will not result in loss of any energy assistance benefits to the customer. If a customer authorizes the company to send a copy of his monthly bill directly to any energy assistance agency for payment, the energy assistance agency shall make payments directly to the company. If, on April thirtieth, a customer has been in compliance with the requirements of subparagraphs (A) to (C), inclusive, of this subdivision, during the period starting on the preceding November first, or from such time as the customer's account becomes delinquent, the company shall deduct from such customer's delinquent account an additional amount equal to the amount of money paid by the customer between the preceding November first and April thirtieth and paid on behalf of the customer through the Connecticut energy assistance program and state appropriated fuel assistance program. Any customer in compliance with the requirements of subparagraphs (A) to (C), inclusive, of this subdivision, on April thirtieth who continues to comply with an amortization agreement through the succeeding October thirty-first, shall also have an amount equal to the amount paid pursuant to such agreement and any amount paid on behalf of such customer between May first and the succeeding October thirty-first deducted from the customer's delinquent account. In no event shall the deduction of any amounts pursuant to this subdivision result in a credit balance to the customer's account. No customer shall be denied the benefits of this subdivision due to an error by the company. The Department of Public Utility Control shall allow the amounts deducted from the customer's account pursuant to the implementation plan, described in subdivision (5) of this subsection, to be recovered by the company in its rates as an operating expense, pursuant to said implementation plan. If the customer fails to comply with the terms of the amortization agreement or any decision of the department rendered in lieu of such agreement and the requirements of subparagraphs (A) to (C), inclusive, of this subdivision, the company may terminate service to the customer, pursuant to all applicable regulations, provided such termination shall not occur between November first and April fifteenth.

(5) Each gas and electric distribution company shall submit to the Department of Public Utility Control annually, on or before July first, an implementation plan which shall include information concerning amortization agreements, counseling, reinstatement of eligibility, rate impacts and any other information deemed relevant by the department. The Department of Public Utility Control may, in consultation with the Office of Policy and Management, approve or modify such plan within ninety days of receipt of the plan. If the department does not take any action on such plan within ninety days of its receipt, the plan shall automatically take effect at the end of the ninety-day period, provided the department may extend such period for an additional thirty days by notifying the company before the end of the ninety-day period. Any amount recovered by a company in its rates pursuant to this subsection shall not include any amount approved by the Department of Public Utility Control as an uncollectible expense. The department may deny all or part of the recovery required by this subsection if it determines that the company seeking recovery has been imprudent, inefficient or acting in violation of statutes or regulations regarding amortization agreements.

(6) On or after January 1, 1993, the Department of Public Utility Control may require gas companies to expand the provisions of subdivisions (4) and (5) of this subsection to all hardship customers. Any such requirement shall not be effective until November 1, 1993.

(7) (A) All electric, electric distribution and gas companies, electric suppliers and municipal utilities furnishing electricity or gas shall collaborate in developing, subject to approval by the Department of Public Utility Control, standard provisions for the notice of delinquency and impending termination under subsection (a) of section 16-262d. Each such company and utility shall place on the front of such notice a provision that the company, electric supplier or utility shall not effect termination of service to a residential dwelling for nonpayment of disputed bills during the pendency of any complaint. In addition, the notice shall state that the customer must pay current and undisputed bill amounts during the pendency of the complaint. (B) At the beginning of any discussion with a customer concerning a reasonable amortization agreement, any such company or utility shall inform the customer (i) of the availability of a process for resolving disputes over what constitutes a reasonable amortization agreement, (ii) that the company, electric supplier or utility will refer such a dispute to one of its review officers as the first step in attempting to resolve the dispute and (iii) that the company, electric supplier or utility shall not effect termination of service to a residential dwelling for nonpayment of a delinquent account during the pendency of any complaint, investigation, hearing or appeal initiated by the customer, unless the customer fails to pay undisputed bills, or undisputed portions of bills, for service received during such period. (C) Each such company, electric supplier and utility shall inform and counsel all customers who are hardship cases as to the availability of all public and private energy conservation programs, including programs sponsored or subsidized by such companies and utilities, eligibility criteria, where to apply, and the circumstances under which such programs are available without cost.

(8) The Department of Public Utility Control shall adopt regulations in accordance with chapter 54 to carry out the provisions of this subsection. Such regulations shall include, but not be limited to, criteria for determining hardship cases and for reasonable amortization agreements, including appeal of such agreements, for categories of customers. Such regulations may include the establishment of a reasonable rate of interest which a company may charge on the unpaid balance of a customer's delinquent bill and a description of the relationship and responsibilities of electric suppliers to customers.

(c) Each electric, electric distribution and gas company, electric supplier and municipal utility shall, not later than December first, annually, submit a report to the department and the General Assembly indicating (1) the number of customers in each of the following categories and the total delinquent balances for such customers as of the preceding April fifteenth: (A) Customers who are hardship cases and (i) who made arrangements for reasonable amortization agreements, (ii) who did not make such arrangements and (B) customers who are nonhardship cases and who made arrangements for reasonable amortization, (2) (A) the number of heating customers receiving energy assistance during the preceding heating season and the total amount of such assistance and (B) the total balance of the accounts of such customers after all energy assistance is applied to the accounts, (3) the number of hardship cases reinstated between November first of the preceding year and [April fifteenth] May first of the same year, the number of hardship cases terminated between [April fifteenth] May first of the same year and November first and the number of hardship cases reinstated during each month from [April] May to November, inclusive, of the same year, (4) the number of reasonable amortization agreements executed and the number breached during the same year by (A) hardship cases and (B) nonhardship cases and (5) the number of accounts of (A) hardship cases and (B) nonhardship cases for which part or all of the outstanding balance is written off as uncollectible during the preceding year and the total amount of such uncollectibles.

(d) Nothing in this section shall (1) prohibit a public service company, electric supplier or municipal utility from terminating residential utility service upon request of the customer or in accordance with section 16-262d upon default by the customer on an amortization agreement or collecting delinquent accounts through legal processes, including the processes authorized by section 16-262f, or (2) relieve such company, electric supplier or municipal utility of its responsibilities set forth in sections 16-262d and 16-262e to occupants of residential dwellings or, with respect to a public service company or electric supplier, the responsibilities set forth in section 19a-109.

(e) No provision of the Freedom of Information Act, as defined in section 1-200, shall be construed to require or permit a municipal utility furnishing electric, gas or water service, a municipality furnishing water or sewer service, a district established by special act or pursuant to chapter 105 and furnishing water or sewer service or a regional authority established by special act to furnish water or sewer service to disclose records under the Freedom of Information Act, as defined in section 1-200, which identify or could lead to identification of the utility usage or billing information of individual customers, to the extent such disclosure would constitute an invasion of privacy.

(f) If an electric supplier suffers a loss of revenue by operation of this section, the supplier may make a claim for such revenue to the department. The electric distribution company shall reimburse the electric supplier for such losses found to be reasonable by the department at the lower of (1) the price of the contract between the supplier and the customer, or (2) the electric distribution company's price to customers for default service, as determined by the department. The electric distribution company may recover such reimbursement, along with transaction costs, through the systems benefits charge.

Sec. 51. Subsection (a) of section 22a-6 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2007):

(a) The commissioner may: (1) Adopt, amend or repeal, in accordance with the provisions of chapter 54, such environmental standards, criteria and regulations, and such procedural regulations as are necessary and proper to carry out his functions, powers and duties; (2) enter into contracts with any person, firm, corporation or association to do all things necessary or convenient to carry out the functions, powers and duties of the department; (3) initiate and receive complaints as to any actual or suspected violation of any statute, regulation, permit or order administered, adopted or issued by him. The commissioner shall have the power to hold hearings, administer oaths, take testimony and subpoena witnesses and evidence, enter orders and institute legal proceedings including, but not limited to, suits for injunctions, for the enforcement of any statute, regulation, order or permit administered, adopted or issued by him; (4) in accordance with regulations adopted by him, require, issue, renew, revoke, modify or deny permits, under such conditions as he may prescribe, governing all sources of pollution in Connecticut within his jurisdiction; (5) in accordance with constitutional limitations, enter at all reasonable times, without liability, upon any public or private property, except a private residence, for the purpose of inspection and investigation to ascertain possible violations of any statute, regulation, order or permit administered, adopted or issued by him and the owner, managing agent or occupant of any such property shall permit such entry, and no action for trespass shall lie against the commissioner for such entry, or he may apply to any court having criminal jurisdiction for a warrant to inspect such premises to determine compliance with any statute, regulation, order or permit administered, adopted or enforced by him, provided any information relating to secret processes or methods of manufacture or production ascertained by the commissioner during, or as a result of, any inspection, investigation, hearing or otherwise shall be kept confidential and shall not be disclosed except that, notwithstanding the provisions of subdivision (5) of subsection (b) of section 1-210, such information may be disclosed by the commissioner to the United States Environmental Protection Agency pursuant to the federal Freedom of Information Act of 1976, (5 USC 552) and regulations adopted thereunder or, if such information is submitted after June 4, 1986, to any person pursuant to the federal Clean Water Act (33 USC 1251 et seq.); (6) undertake any studies, inquiries, surveys or analyses he may deem relevant, through the personnel of the department or in cooperation with any public or private agency, to accomplish the functions, powers and duties of the commissioner; (7) require the posting of sufficient performance bond or other security to assure compliance with any permit or order; (8) provide by notice printed on any form that any false statement made thereon or pursuant thereto is punishable as a criminal offense under section 53a-157b; (9) construct or repair or contract for the construction or repair of any dam or flood and erosion control system under his control and management, make or contract for the making of any alteration, repair or addition to any other real asset under his control and management, including rented or leased premises, involving an expenditure of five hundred thousand dollars or less, and, with prior approval of the Commissioner of Public Works, make or contract for the making of any alteration, repair or addition to such other real asset under his control and management involving an expenditure of more than five hundred thousand dollars but not more than one million dollars; (10) enter into a lease agreement with a private entity to allow such private entity to generate hydroelectricity on property under  the commissioner's control and management; (11) by regulations adopted in accordance with the provisions of chapter 54 require the payment of a fee sufficient to cover the reasonable cost of the search, duplication and review of records requested under the Freedom of Information Act, as defined in section 1-200, and the reasonable cost of reviewing and acting upon an application for and monitoring compliance with the terms and conditions of any state or federal permit, license, registration, order, certificate or approval required pursuant to subsection (i) of section 22a-39, subsections (c) and (d) of section 22a-96, subsections (h), (i) and (k) of section 22a-424, and sections 22a-6d, 22a-32, 22a-134a, 22a-134e, 22a-135, 22a-148, 22a-150, 22a-174, 22a-208, 22a-208a, 22a-209, 22a-342, 22a-345, 22a-354i, 22a-361, 22a-363c, 22a-368, 22a-372, 22a-379, 22a-403, 22a-409, 22a-416, 22a-428 to 22a-432, inclusive, 22a-449 and 22a-454 to 22a-454c, inclusive, and Section 401 of the federal Clean Water Act, (33 USC 1341). Such costs may include, but are not limited to the costs of (A) public notice, (B) reviews, inspections and testing incidental to the issuance of and monitoring of compliance with such permits, licenses, orders, certificates and approvals, and (C) surveying and staking boundary lines. The applicant shall pay the fee established in accordance with the provisions of this section prior to the final decision of the commissioner on the application. The commissioner may postpone review of an application until receipt of the payment. Payment of a fee for monitoring compliance with the terms or conditions of a permit shall be at such time as the commissioner deems necessary and is required for an approval to remain valid; and [(11)] (12) by regulations adopted in accordance with the provisions of chapter 54, require the payment of a fee sufficient to cover the reasonable cost of responding to requests for information concerning the status of real estate with regard to compliance with environmental statutes, regulations, permits or orders. Such fee shall be paid by the person requesting such information at the time of the request. Funds not exceeding two hundred thousand dollars received by the commissioner pursuant to subsection (g) of section 22a-174, during the fiscal year ending June 30, 1985, shall be deposited in the General Fund and credited to the appropriations of the Department of Environmental Protection in accordance with the provisions of section 4-86, and such funds shall not lapse until June 30, 1986. In any action brought against any employee of the department acting within his scope of delegated authority in performing any of the above-listed duties, the employee shall be represented by the Attorney General.

Sec. 52. Subsection (d) of section 22a-200a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(d) Not later than [December 1, 2005] October 1, 2008, and [annually] biennially thereafter, the Commissioner of Environmental Protection, in collaboration with the commissioners of other state agencies and the steering committee, shall submit a report to the joint standing committee of the General Assembly having cognizance of matters relating to the environment on the progress made in achieving the goals established in subsection (a) of this section and to evaluate the appropriateness of the climate change action plans developed pursuant to subsections (b) and (c) of this section in achieving such goals, which plans shall be consistent with the comprehensive energy plan developed pursuant to section 16a-14c.

Sec. 53. Section 32-9n of the general statutes is repealed and the following is inserted in lieu thereof (Effective July 1, 2007):

(a) There is established within the Department of Economic and Community Development an Office of Small Business Affairs. Such office shall aid and encourage small business enterprises, particularly those owned and operated by minorities and other socially or economically disadvantaged individuals in Connecticut. As used in this section, minority means: (1) Black Americans, including all persons having origins in any of the Black African racial groups not of Hispanic origin; (2) Hispanic Americans, including all persons of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish culture or origin, regardless of race; (3) all persons having origins in the Iberian Peninsula, including Portugal, regardless of race; (4) women; (5) Asian Pacific Americans and Pacific islanders; or (6) American Indians and persons having origins in any of the original peoples of North America and maintaining identifiable tribal affiliations through membership and participation or community identification.

(b) Said Office of Small Business Affairs shall: (1) Administer the small business development center program run by the Department of Economic and Community Development; (2) coordinate the flow of information within the technical and management assistance program run by the Department of Economic and Community Development; (3) encourage the Connecticut Development Authority to grant loans to small businesses, particularly those owned and operated by minorities and other socially or economically disadvantaged individuals; (4) coordinate and serve as a liaison between all federal, state, regional and municipal agencies and programs affecting small business affairs; [and] (5) administer any business management training program established under section 32-352 or section 32-355 as the Commissioner of Economic and Community Development may determine; and (6) administer an energy efficiency resource center for small businesses.

(c) The Commissioner of Administrative Services, in consultation with the Commissioner of Economic and Community Development, shall develop state employee classifications for staff positions for the Office of Small Business Affairs.

Sec. 54. Section 42-133bb of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(a) No manufacturer or distributor shall require that a dealer:

(1) Order or accept delivery of any new motor vehicle, part or accessory, equipment or any other commodity not required by law in connection with warranty service or a recall campaign or voluntarily ordered by the dealer, except that the provisions of this subdivision shall not affect terms or provisions of a franchise requiring dealers to market a representative line of motor vehicles which the manufacturer or distributor is publicly advertising;

(2) Order or accept delivery of any new motor vehicle with special features, accessories or equipment not included in the list price of such motor vehicles as publicly advertised by the manufacturer or distributor;

(3) Pay all or part of the cost of an advertising campaign or contest, or purchase any promotional materials, training material, showroom or other display decorations or materials at the expense of the new motor vehicle dealer without the consent of the new motor vehicle dealer;

(4) Enter into any agreement with the manufacturer or distributor or do any other act prejudicial to the dealer under threat of termination or cancellation of a franchise or agreement between the dealer and the manufacturer or distributor, except that this subdivision shall not preclude the manufacturer or distributor from insisting on compliance with the reasonable terms or provisions of the franchise or agreement, and notice in good faith to any dealer of the dealer's violation of such terms or provisions shall not constitute a violation of sections 42-133r to 42-133ee, inclusive;

(5) Change the capital structure of the dealer or the means by which the dealer finances the operation of the dealership provided that the dealer meets reasonable capital standards established by the manufacturer or distributor in accordance with uniformly applied criteria, and provided further that no change in the capital structure shall cause a change in the principal management or have the effect of a sale of the franchise without the consent of the manufacturer or distributor and such consent shall not be unreasonably withheld;

(6) Refrain from participation in the management of, investment in, or acquisition of any other line of new motor vehicles or related products, provided that this subdivision shall not apply unless the dealer maintains a reasonable line of credit for each line make of new motor vehicle, the dealer remains in compliance with any reasonable facilities requirements of the manufacturer or distributor, and no change is made in the principal management of the dealer;

(7) Prospectively assent to a release, assignment, novation, waiver or estoppel which would relieve any person from liability to be imposed by sections 42-133r to 42-133ee, inclusive, or require any controversy between a dealer and a manufacturer or distributor, to be referred to any forum other than the Superior Court or the United States District Court;

(8) Refrain from purchasing or selling any of the alternative fuels set forth in subsection (b) of this section from a person or firm other than the distributor, or limit the quantity of such motor fuel to be purchased from such other person or firm, or directly or indirectly discourage a dealer from purchasing or selling such alternative motor fuels from such other person or firm.

(b) For purposes of this section, the term "alternative fuel" shall mean any of the following: (1) A blend of eighty-five per cent ethanol and fifteen per cent gasoline; (2) a blend of at least two per cent methyl-ester, commonly referred to as "biodiesel", and diesel motor fuel; (3) motor fuel comprised primarily of methane, stored in either a gaseous or liquid state and suitable for use and consumption in the engine of a motor vehicle, commonly referred to as "compressed natural gas"; or (4) hydrogen.

(c) Any person or firm who is a distributor, or an officer, agent or employee of a distributor, who threatens, harasses, coerces or attempts to coerce a dealer for the purpose of compelling such dealer from purchasing or selling alternative fuel from a person or firm other than the distributor shall be guilty of a violation and be subject to a fine in an amount of not more than one thousand dollars for each violation.

Sec. 55. Subdivision (115) of section 12-412 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(115) On and after October 1, 2004, and prior to [October 1, 2008] June 30, 2010, the sale of any hybrid passenger car that has a United States Environmental Protection Agency estimated highway gasoline mileage rating of at least forty miles per gallon. For purposes of this subdivision, "hybrid passenger car" means a passenger car that draws acceleration energy from two onboard sources of stored energy, which are both an internal combustion or heat engine using combustible fuel and a rechargeable energy storage system and, for a passenger car or light truck with a model year of 2004 or later, is certified to meet or exceed the tier II bin 5 low emission vehicle classification.

Sec. 56. (NEW) (Effective from passage) Not later than January 1, 2008, and annually thereafter, the electric distribution companies, in consultation with the regional system operator, the Connecticut Energy Advisory Board, and entities in the state that own electric generating facilities, shall develop and submit a revised integrated resource plan to the Department of Public Utility Control that analyzes, over the short term and long term, the state's electricity generation and transmission, and specifies for the subsequent ten years: (1) the total amount of resources that need to be procured, (2) the location, fuel source and type of resources, including, but not limited to, demand side measures, including demand response, conservation measures, efficiency and load management, peaking, intermediate and baseload generation, that need to be procured, and (3) how procurement of said resources will reduce or stabilize rates. The plan shall consider: (A) Types and locations for generation that will optimize the generation portfolio within the state; (B) the mix of baseload, cycling and peaking generation; (C) fuel types, diversity, availability, firmness of supply, and security and environmental impacts thereof; (D) reliability, peak load and energy forecasts, system contingencies, and existing resource availabilities; (E) import limitations and the appropriate reliance on such imports; (F) if it is in the best interest of customers, how the new resources would be integrated into the standard service power supply for customers; and (G) the impact of the plan on the rates of electric customers, including, but not limited to, effects on capacity and energy costs, rate stability, affordability for low-income customers, the potential to displace reliability-must-run contracts, locational installed capacity, and other federally mandated congestion charges. The department shall provide an opportunity for interested parties to submit comments to the department regarding said plan. Not later than one hundred twenty days after submission of the plan, the department shall approve or modify and approve the plan and shall determine the amount, location and type of resources to be procured.

Sec. 57. (Effective from passage) (a) The sum of twenty-six million five hundred thousand dollars shall be transferred to the Energy Conservation and Load Management Fund, established pursuant to section 16-245m of the general statutes, from the General Fund for each of the fiscal years ending June 30, 2008, June 30, 2009, and June 30, 2010; and the sum of eleven million three hundred thousand dollars shall be transferred to the Energy Conservation and Load Management Fund from the General Fund for the fiscal year ending June 30, 2011. Such transfers shall be made in quarterly installments.

(b) The sum of eight million eight hundred thousand dollars shall be transferred to the Renewable Energy Investment Fund, established pursuant to section 16-245n of the general statutes, from the General Fund for each of the fiscal years ending June 30, 2008, June 30, 2009, and June 30, 2010; and the sum of three million nine hundred thousand dollars shall be transferred to the Renewable Energy Investment Fund from the General Fund for the fiscal year ending June 30, 2011. Such transfers shall be made in quarterly installments.

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.]