OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

SB-357

AN ACT CONCERNING REVISIONS TO ENERGY STATUTES.

AMENDMENT

LCO No.: 5133

File Copy No.: 285

Senate Calendar No.: 198


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 15 $

FY 16 $

Department of Energy and Environmental Protection

GF - Cost

600,000

None

Department of Energy and Environmental Protection

GF - Potential Cost

See Below

See Below

CEFIA

Other - Cost

Less than $30,000

Less than $30,000

Siting Council, CT

Other - Revenue Loss

See Below

See Below

Municipal Impact:

Municipalities

Effect

FY 15 $

FY 16 $

Various Municipalities

Revenue Loss

See Below

See Below

Various Municipalities

Potential Revenue Gain

See Below

See Below

Explanation

The amendment strikes the underlying bill and its associated fiscal impact.

The amendment requires the Department of Energy and Environmental Protection (DEEP) to revise the state's solid waste management plan to (1) expand the strategies covered by the plan and (2) increase the state's solid waste diversion rate.  sHB 5030, the FY 15 revised budget bill, as favorably reported by the Appropriations Committee, carries forward $600,000 for this purpose.

The amendment allows the agency to make grants to municipalities that participate in the electricity purchasing pool and commit to the states revised diversion goals. This may result in costs to DEEP and a revenue gain to various municipalities, in the same amount, to the extent DEEP awards to municipalities who commit to the state's revised diversion goals.

The amendment also renames Clean Energy Finance and Investment Authority (CEFIA) the Connecticut Green Bank. It is expected to cost less than $30,000 to replace signage, stationary, and other office materials. CEFIA is primarily funded through a surcharge on electric utility bills.

In addition, the amendment eliminates the requirement that entity's submitting certain applications to the Siting Council pay a filing fee of up to $25,000 and a municipal participation fee of $25,000. This is expected to result in a minimal revenue loss to the state and certain municipalities.

The amendment also limits the property tax value of exemptions on solar thermal and geothermal energy systems to apply to only the difference between the value of the property with the installed system and the value of the property with the conventional portion of the system. To the extent that systems have previously had full exemption will now have limited exemption, there may be an increase of revenue to various municipalities' as their tax levy is increased.

The amendment also makes various changes which are not anticipated to result in a fiscal impact.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.