CHAPTER 588p
ENERGY CONSERVATION LOANS
AND INVESTMENT IN ALTERNATIVE FUELS

Table of Contents

Secs. 32-315 to 32-318. Definitions. Energy conservation revolving loan account. Energy conservation loan program. Bond authorization.
Secs. 32-319 to 32-323.
Sec. 32-324. Definitions.
Sec. 32-324a. Connecticut qualified biodiesel producer incentive account. Agreement.
Sec. 32-324b. Grants to qualified biodiesel producers. Grant amounts.
Sec. 32-324c. Application for grant.
Sec. 32-324d. One-time grant for biodiesel producers not yet actively engaged in production of biodiesel. Amount. Awarding of grant.
Sec. 32-324e. Grants to qualified biodiesel distributors: Permitted purposes. Amounts.
Sec. 32-324f. Guidelines for grant program.
Sec. 32-324g. Fuel diversification grant program. Agreement. Guidelines.
Sec. 32-324h. Institute for Sustainable Energy to educate consumers re biodiesel. Connecticut biodiesel link program. Posting of information on Internet.

      Secs. 32-315 to 32-318. Definitions. Energy conservation revolving loan account. Energy conservation loan program. Bond authorization. Sections 32-315 to 32-318, inclusive, are repealed, effective October 1, 2007.

      (P.A. 92-208, S. 2-6; May Sp. Sess. P.A. 92-7, S. 32-34, 36; P.A. 93-382, S. 17, 69; P.A. 95-217, S. 4; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 3, 5, 6; P.A. 97-173, S. 3; P.A. 98-28, S. 106, 117; P.A. 07-64, S. 2.)

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      Secs. 32-319 to 32-323. Reserved for future use.

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      Sec. 32-324. Definitions. For the purposes of this section and sections 32-324a to 32-324f, inclusive:

      (1) "Biodiesel" means a fuel comprised of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, designated B100, and meeting the requirements of designation D6751 of the American Society for Testing and Materials.

      (2) "Qualified biodiesel producer" means an entity that is registered with the state of Connecticut, is domiciled in Connecticut and is actively engaged in, or intends to actively engage in, the production of biodiesel in Connecticut for commercial purposes.

      (3) "Qualified biodiesel distributor" means an entity that is registered with the state of Connecticut, is domiciled in Connecticut and is actively engaged in, or intends to actively engage in, the storage and distribution of biodiesel in Connecticut for commercial purposes.

      (June Sp. Sess. P.A. 07-4, S. 51; P.A. 10-64, S. 1.)

      History: June Sp. Sess. P.A. 07-4 effective July 1, 2007; P.A. 10-64 redefined "qualified biodiesel producer" in Subdiv. (2) and "qualified biodiesel distributor" in Subdiv. (3), effective May 18, 2010.

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      Sec. 32-324a. Connecticut qualified biodiesel producer incentive account. Agreement. (a) There is established an account to be known as the "Connecticut qualified biodiesel producer incentive account", which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account. The account may contain any moneys available from any agency or department of the federal government or any state agency for the purpose described in subsection (b) of this section. Such account shall not terminate upon the lack of any funds in such account.

      (b) The moneys in said account shall be expended by the Department of Economic and Community Development for the purpose of administration of the program and providing grants to qualified biodiesel producers and qualified biodiesel distributors pursuant to sections 32-324b to 32-324f, inclusive. For the purposes of implementing this grant, the Commissioner of Economic and Community Development may enter into an agreement, in accordance with the provisions of chapter 55a, with a person, firm, corporation or other entity.

      (June Sp. Sess. P.A. 07-4, S. 52; P.A. 10-64, S. 2.)

      History: June Sp. Sess. P.A. 07-4 effective July 1, 2007; P.A. 10-64 amended Subsec. (a) by adding provision allowing account to contain any moneys available from any agency or department of federal government or any state agency for purpose described in Subsec. (b) and prohibiting termination of account for lack of funds, effective May 18, 2010.

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      Sec. 32-324b. Grants to qualified biodiesel producers. Grant amounts. (a) A qualified biodiesel producer shall be eligible for not more than sixty monthly grants from the Connecticut qualified biodiesel producer incentive account, established pursuant to section 32-324a. The Department of Economic and Community Development, in consultation with the person, firm, corporation or entity selected to implement the grant pursuant to subsection (b) of section 32-324a, if applicable, shall determine monthly grant amounts by calculating the estimated gallons of biodiesel produced during the preceding month, as certified by the Commissioner of Economic and Community Development, or a designee, and applying such figure to the per gallon incentive credit established in subsection (b) of this section. For such certification purposes, a qualified biodiesel producer shall be required to provide the Commissioner of Economic and Community Development only with a certificate of analysis that documents compliance with the critical specifications of the American Society of Testing and Materials or "ASTM" standard D6751, including, but not limited to, the Tier II biodiesel fuel quality protocol accepted by the Commissioner of Consumer Protection.

      (b) Each qualified biodiesel producer shall be eligible for a total grant in any fiscal year equal to the following amounts: (1) For the first five million gallons of biodiesel produced, thirty cents per gallon; (2) for the second five million gallons of biodiesel produced, twenty cents per gallon; and (3) for the third five million gallons of biodiesel produced, ten cents per gallon, except in the event that all moneys available for such grant program total: (A) Two hundred thousand dollars or less, not more than twenty cents per gallon regardless of the number of gallons of biodiesel produced, and (B) one hundred thousand dollars or less, not more than ten cents per gallon, regardless of the total number of gallons of biodiesel produced.

      (c) Biodiesel produced by a qualified biodiesel producer in excess of fifteen million gallons in any fiscal year shall not be eligible for a grant pursuant to this section.

      (June Sp. Sess. P.A. 07-4, S. 53; P.A. 08-124, S. 34; P.A. 10-64, S. 3.)

      History: June Sp. Sess. P.A. 07-4 effective July 1, 2007; P.A. 08-124 amended Subsec. (a) to replace "account" with "Connecticut qualified biodiesel producer incentive account", effective June 2, 2008 (Revisors note: In 2009, a reference to "section 32-324b" in Subsec. (a) was changed editorially by the Revisors to "section 32-324a" for accuracy); P.A. 10-64 amended Subsec. (a) by adding provision requiring qualified biodiesel producer to provide commissioner only with a certificate of analysis that documents compliance with critical specifications of American Society of Testing and Materials for certification purposes and amended Subsec. (b)(3) by adding exception re total moneys available for grant program, effective May 18, 2010.

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      Sec. 32-324c. Application for grant. To receive a grant pursuant to section 32-324b, a qualified biodiesel producer shall file an application for such funds not later than fifteen days after the last day of the month for which the grant is sought. The application shall include, but not be limited to: (1) The location of the qualified biodiesel producer; (2) the number of Connecticut citizens employed by the biodiesel producer in the preceding month; (3) the number of gallons of biodiesel produced during the month for which the grant is sought; (4) a copy of the qualified biodiesel producer's Connecticut registration; (5) any other information deemed necessary by the Commissioner of Economic and Community Development to ensure that such grants shall be made only to qualified biodiesel producers; and (6) satisfactory documentation that the biodiesel has a net carbon energy benefit when compared to the fuel it will replace. For purposes of compliance with subdivisions (5) and (6) of this section, a qualified biodiesel producer shall be required to provide the Commissioner of Economic and Community Development only with a certificate of analysis that documents compliance with the critical specifications of the American Society of Testing and Materials or "ASTM" standard D6751, including, but not limited to, the Tier II biodiesel fuel quality protocol accepted by the Commissioner of Consumer Protection.

      (June Sp. Sess. P.A. 07-4, S. 54; P.A. 10-64, S. 4.)

      History: June Sp. Sess. P.A. 07-4 effective July 1, 2007; P.A. 10-64 added provision requiring qualified biodiesel producer to provide commissioner only with a certificate of analysis that documents compliance with critical specifications of American Society of Testing and Materials for purposes of compliance with Subdivs. (5) and (6), effective May 18, 2010.

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      Sec. 32-324d. One-time grant for biodiesel producers not yet actively engaged in production of biodiesel. Amount. Awarding of grant. A qualified biodiesel producer that is not yet actively engaged in the production of biodiesel shall be eligible for a one-time grant pursuant to section 32-324a to assist with the initial purchase of biodiesel production equipment or with the construction, modification or retrofitting of biodiesel production facilities. Such grant shall be administered to provide such qualified biodiesel producer with such initial financial assistance and shall not be administered as a reimbursement program. The amount of such grant shall not exceed three million dollars regardless of the number of facilities owned by the qualified biodiesel producer. The Department of Economic and Community Development, in consultation with the person, firm, corporation or entity selected to implement the grant, shall award such grant to any such qualified biodiesel producer that is not yet actively engaged in the production of biodiesel upon the request of such qualified biodiesel producer provided such qualified biodiesel producer has a contract or an approved application pending with such department, person, firm, corporation or entity on May 18, 2010.

      (June Sp. Sess. P.A. 07-4, S. 55; P.A. 10-64, S. 5.)

      History: June Sp. Sess. P.A. 07-4 effective July 1, 2007; P.A. 10-64 replaced former provisions with provisions re one-time grant to qualified biodiesel producer not yet actively engaged in production of biodiesel for equipment purchase, construction, modification or retrofitting of biodiesel production facilities, effective May 18, 2010.

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      Sec. 32-324e. Grants to qualified biodiesel distributors: Permitted purposes. Amounts. A qualified biodiesel distributor shall not be eligible for a grant pursuant to section 32-324a for purposes other than to assist with purchasing equipment or constructing, modifying or retrofitting facilities, including, but not limited to, the actual costs of creating storage and distribution capacity for biodiesel during the month. No grant issued pursuant to said section 32-324a shall exceed fifty thousand dollars for any one distributor at any one site. The Department of Economic and Community Development, in consultation with the person, firm, corporation or entity selected to implement the grant pursuant to subsection (b) of section 32-324a, if applicable, shall create an application process and guidelines for the administration of this grant provision.

      (June Sp. Sess. P.A. 07-4, S. 56; June Sp. Sess. P.A. 07-5, S. 19.)

      History: June Sp. Sess. P.A. 07-4 effective July 1, 2007; June Sp. Sess. P.A. 07-5 substituted "shall not be eligible" for "shall be eligible" re distributors and purposes of grants, and made a technical change, effective October 6, 2007.

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      Sec. 32-324f. Guidelines for grant program. The Department of Economic and Community Development, in consultation with the person, firm, corporation or entity selected to implement the grant pursuant to subsection (b) of section 32-324a, if applicable, shall create guidelines necessary for the administration of the provisions of this section on the progress of the grant programs administered pursuant to sections 32-324a to 32-324e, inclusive.

      (June Sp. Sess. P.A. 07-4, S. 57; P.A. 09-234, S. 6.)

      History: June Sp. Sess. P.A. 07-4 effective July 1, 2007; P.A. 09-234 deleted requirement re annual report to General Assembly, effective July 1, 2009.

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      Sec. 32-324g. Fuel diversification grant program. Agreement. Guidelines. The Department of Economic and Community Development shall administer a fuel diversification grant program to provide funding to Connecticut institutions of higher education or Connecticut institutions of agricultural research for purposes which may include, but are not limited to (1) research to promote biofuel production from agricultural products, algae and waste grease, and (2) biofuel quality testing. Said department may enter into an agreement, in accordance with the provisions of chapter 55a, with a person, firm, corporation or other entity to administer such program. The Department of Economic and Community Development, in consultation with such person, firm, corporation or entity, if applicable, shall create guidelines necessary for the administration of the provisions of this section.

      (June Sp. Sess. P.A. 07-4, S. 61; P.A. 09-234, S. 7.)

      History: June Sp. Sess. P.A. 07-4 effective July 1, 2007; P.A. 09-234 deleted requirement re annual report to commissioner by selected person, firm, corporation or other entity, effective July 1, 2009.

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      Sec. 32-324h. Institute for Sustainable Energy to educate consumers re biodiesel. Connecticut biodiesel link program. Posting of information on Internet. (a) The Institute for Sustainable Energy shall (1) compile and distribute educational materials regarding biodiesel to municipalities, local boards of education and private commercial entities to educate future consumers, and (2) establish and administer a Connecticut biodiesel link program to establish a database of schools, restaurants, institutional cafeterias and other institutions and businesses in the state that produce waste vegetable oil or other comparable food product suitable for conversion to biodiesel. The database shall be maintained by the Institute for Sustainable Energy and shall be made available to the public on said institute's Internet web site. Businesses interested in selling their waste vegetable oil or other comparable food product to producers of biodiesel heating and motor vehicle fuel may notify the Institute for Sustainable Energy and have their names, contact information and intentions regarding such businesses placed on said web site. The Institute for Sustainable Energy shall make reasonable efforts to facilitate contact between parties with similar interests.

      (b) The Institute for Sustainable Energy shall post educational materials regarding the Connecticut biofuel link program on said institute's Internet web site, and such information shall be posted as a link on the Internet web sites of the Department of Economic and Community Development, the Department of Agriculture, The Connecticut Agricultural Experiment Station, The University of Connecticut Biofuel Consortium and The University of Connecticut Cooperative Extension System, including, but not limited to, information regarding the starting of a waste vegetable oil business and strategies for conducting such business.

      (June Sp. Sess. P.A. 07-4, S. 59.)

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