CHAPTER 296
OPERATION OF FUEL SUPPLY BUSINESS

Table of Contents

Sec. 16a-18. Illegal creation of fuel shortage. Penalty. Extradition.
Sec. 16a-22k. Unfair trade practices in the business of selling fuel oil.
Sec. 16a-22l. Fuel oil conservation and energy efficiency programs. Fuel Oil Conservation Board. Fuel oil conservation plan.

      Sec. 16a-18. Illegal creation of fuel shortage. Penalty. Extradition. (a) No person, firm, corporation, business or combination thereof shall individually perform any act, or conspire to perform any act, which act creates a shortage of fuel or a probable shortage of fuel in this state with the intent to raise fuel prices or energy prices, adversely affect competition in this state or in any way violate the antitrust laws of the state of Connecticut or other laws of this state regulating illegal business practices.

      (b) Any person, firm, corporation, business or combination thereof violating any provision of subsection (a) of this section shall be fined not more than two hundred fifty thousand dollars or imprisoned not more than five years, or both.

      (c) If any person violates sections 16a-17 to 16a-20, inclusive, and subsequently leaves the jurisdiction of this state, the Chief State's Attorney shall seek extradition of such individual. If any individual violates any provision of said sections while physically present in another state, the Chief State's Attorney or his designee shall seek extradition of said individual under a like provision of section 54-162 of the Uniform Criminal Extradition Act, as it may appear in other jurisdictions or under any other applicable law of such other jurisdictions.

      (P.A. 74-208, S. 2, 5; P.A. 07-217, S. 66.)

      History: P.A. 07-217 made technical changes in Subsec. (b), effective July 12, 2007.

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      Sec. 16a-22k. Unfair trade practices in the business of selling fuel oil. (a) No person, firm or corporation or any officers, agents or employees thereof, shall condition the availability of fuel oil burner maintenance or repair service upon the agreement of any purchaser or potential purchaser to purchase fuel oil from such person, firm or corporation, provided, any person, firm or corporation may give priority for service to any person who has an oil delivery contract with such person, firm or corporation.

      (b) Any person, firm or corporation who sells at retail fuel oil or propane gas to be used for residential space heating and who has established a schedule of payments plan with a retail customer, shall, upon notice of termination of future oil deliveries, return to such customer, within ten days of receiving any such notice, any moneys collected in excess of the retail price for fuel actually delivered, provided, this subsection shall not apply to a schedule of payment plan in which a specific product unit price is agreed upon for the length of the plan.

      (c) Each person, firm or corporation who sells under a trade name at retail fuel oil or propane gas to be used for residential space heating or who provides service for fuel oil or propane burners shall disclose to any customer or potential customer on any communication and invoice and in any advertising, the name of the person or entity which has filed a certificate to use such a trade name, as required by and pursuant to section 35-1.

      (d) Any violation of subsections (a) to (c), inclusive, of this section shall be deemed an unfair or deceptive trade practice under section 42-110b.

      (P.A. 90-304, S. 3; P.A. 07-217, S. 67.)

      History: P.A. 07-217 made a technical change in Subsec. (d), effective July 12, 2007.

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      Sec. 16a-22l. Fuel oil conservation and energy efficiency programs. Fuel Oil Conservation Board. Fuel oil conservation plan. (a) For purposes of this section, "fuel oil" means the product designated by the American Society for Testing and Materials as "Specifications for Heating Oil D396-69", commonly known as number 2 heating oil, and grade number 4, grade number 5 and grade number 6 fuel oil, provided such heating and fuel oil are used for purposes other than the generation of power to propel motor vehicles or for the generation of electricity.

      (b) On or before November 1, 2007, the Fuel Oil Conservation Board shall, after issuing a request for proposals, select an entity qualified to administer and implement conservation and energy efficiency programs for fuel oil customers, as described in this section, to act as the program administrator for such programs and shall enter into a contract not to exceed three years in duration for such purpose. At the expiration of the contract, the board may renew the contract if it finds that the administrator's performance has been satisfactory, or the board may issue a new request for proposals.

      (c) On or before March 1, 2008, the program administrator shall submit to the Energy Conservation Management Board a fuel oil conservation plan in accordance with the provisions of this section for the balance of 2008. On or before October 1, 2008, and annually thereafter, the program administrator shall submit to the Fuel Oil Conservation Board and the Energy Conservation Management Board a fuel oil conservation plan for the next calendar year in accordance with the provisions of this section. The board shall hold a public hearing on each such plan.

      (d) (1) The Fuel Oil Conservation Board shall advise and assist the program administrator in the development and implementation of a comprehensive plan, which shall be approved by the board, that implements cost-effective fuel oil energy conservation programs and market transformation initiatives for residential, commercial and industrial fuel oil customers. The board shall, as part of its review, examine opportunities to offer joint programs providing similar efficiency measures that save more than one fuel resource or to otherwise coordinate programs targeted at saving more than one fuel resource.

      (2) Program cost-effectiveness shall be reviewed annually by the Fuel Oil Conservation Board, or otherwise as practicable. Programs included in the plan shall be evaluated as to cost-effectiveness by comparing the value and payback period of the program benefits to the program costs to ensure that the programs are designed to obtain fuel oil savings, the value of which are greater than the costs of the program. If the board determines that a program fails such cost-effectiveness test, the board shall modify the program to meet the test or terminate the program. On or before January 1, 2009, and annually thereafter, the Fuel Oil Conservation Board shall provide a report to the joint standing committees of the General Assembly having cognizance of matters relating to energy and the environment, in accordance with the provisions of section 11-4a, that documents expenditures and fund balances and evaluates the cost-effectiveness of such programs conducted in the preceding year, including any increased cost-effectiveness due to offering programs that save more than one fuel resource.

      (3) Programs included in the plan may include, but not be limited to: (A) Conservation programs, including programs that benefit low-income persons; (B) research, development and commercialization of products or processes that are more energy-efficient than those generally available; (C) development of markets for such products and processes; (D) support for energy use assessment, engineering studies and services related to new construction or major building renovations; (E) the design, manufacture, commercialization and purchase of energy-efficient appliances and heating devices; (F) program planning and evaluation; (G) joint fuel conservation initiatives and programs targeted at saving more than one fuel resource; and (H) public education regarding conservation. Such support may be by direct funding, manufacturers' rebates, sale price and loan subsidies, leases and promotional and educational activities. The plan shall also provide for expenditures by the Fuel Oil Conservation Board for the retention of expert consultants and reasonable administrative costs, provided such consultants shall not be employed by, or have any contractual relationship with, a fuel oil company or the program administrator. Such costs shall not exceed five per cent of the total cost of the plan.

      (e) (1) There is established a Fuel Oil Conservation Board consisting of thirteen members, including:

      (A) One member representing dealers with retail oil heat sales in excess of fifteen million gallons in the state, appointed by the president pro tempore of the Senate;

      (B) One member representing dealers with retail oil heat sales of less than fifteen million gallons in the state, appointed by the speaker of the House of Representatives;

      (C) One member representing the heating, ventilation and air-conditioning trades licensed under chapter 393, appointed by the majority leader of the Senate;

      (D) One member representing wholesale heating distributors operating within the state, appointed by the majority leader of the House of Representatives;

      (E) One member representing a state-wide environmental advocacy group, appointed by the minority leader of the Senate;

      (F) The chairperson of the Heating, Piping, Cooling and Sheet Metal Work Board established under chapter 393;

      (G) One member from a state-wide retail oil dealer trade association, appointed by the minority leader of the House of Representatives;

      (H) Six members of the public appointed by the Governor, of which one shall be a representative of an environmental organization knowledgeable in energy efficiency programs, one shall be a representative of in-state generators, one shall be a representative of a consumer advocacy organization, one shall be a representative of the business community, one shall be a representative of low-income ratepayers and one shall be a representative of state residents, in general, and all of whom shall have expertise in energy issues, and

      (I) All appointed members of the board shall serve in accordance with section 4-1a.

      (2) The Fuel Oil Conservation Board shall establish itself as a tax exempt organization in accordance with the provisions of Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended. Not later than July 1, 2008, and biennially thereafter, a third party selected by the Attorney General shall audit the activities of the board. The results of such audit shall be submitted in a report to the joint standing committees of the General Assembly having cognizance of matters relating to energy and the environment, in accordance with the provisions of section 11-4a.

      (3) The Fuel Oil Conservation Board shall establish a fuel oil conservation account. The account shall be a separate, nonlapsing accounting within the General Fund and shall be funded by annual revenue from the tax imposed by section 12-587 on the sale of petroleum products gross earnings that is in excess of said revenue collected during fiscal 2006, provided the amount of such revenue that shall be allocated to said account in the fiscal year commencing July 1, 2007, shall not exceed ten million dollars, and the amount of such revenue that shall be allocated to said account in fiscal years commencing on and after July 1, 2008, shall not exceed five million dollars. Before the accounts for the General Fund have been closed for each fiscal year, said funds shall be deposited by the Comptroller into the fuel oil conservation account.

      (4) The Fuel Oil Conservation Board shall authorize specific amounts from the fuel oil conservation account established pursuant to subdivision (3) of this subsection to the program administrator selected to implement an approved plan under this section. Such amounts shall be in the form of grants, which the board shall award twice a year. Any moneys left in the account at the end of each fiscal year shall be transferred outright to the General Fund.

      (P.A. 07-242, S. 116; June Sp. Sess. P.A. 07-1, S. 131.)

      History: P.A. 07-242 effective July 1, 2007; June Sp. Sess. P.A. 07-1 amended Subsec. (e)(3) to specify "fiscal" 2006, to set caps for revenue allocated to the fund at $10,000,000 for fiscal year commencing July 1, 2007, and $5,000,000 for fiscal years commencing on and after July 1, 2008, and to require Comptroller to deposit funds into the account before accounts for the General Fund have been closed for each fiscal year, effective July 1, 2007.

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