SB 453 — AN ACT CONCERNING A CLIMATE CHANGE RELATED SURCHARGE ON CERTAIN INSURANCE POLICIES.

Senate General Assembly FileSubstitute Bill No.

477453 February Session, 2026 SubstituteAN SenateACT BillCONCERNING No.A CLIMATE CHANGE RELATED SURCHARGE ON CERTAIN INSURANCE POLICIES.

453 Senate, April 7, 2026 The Committee on Environment reported through SEN.

LOPES of the 6th Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.

AN ACT CONCERNING A CLIMATE CHANGE RELATED SURCHARGE ON CERTAIN INSURANCE POLICIES.

sSB453Such /account Filemay No.receive any funds required to be deposited in such account, including, but not limited to, any surcharge described in subsection (a) of this section and any other funds, gift or donation appropriated for or made to such account for the purposes described in subsection (c) of this section.

477The funds in such account shall not lapse at the end of any fiscal year and shall be available for the purposes LCO 1 sSB453of File2 Substitute Bill No.

477453 Such account may receive any funds required to be deposited in such account, including, but not limited to, any surcharge described in subsection (a) of this section and any other funds, gift or donation appropriated for or made to such account for the purposes described in subsection (c) of this section.

The funds in such account shall not lapse at the end of any fiscal year and shall be available for the purposes described in subsection (c) of this section.

Section 1 October 1, 2026 New section StatementENV ofJoint LegislativeFavorable Commissioners:Subst.

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(b), reference to the General Fund was deleted, in accordance with standard drafting conventions.

ENV Joint Favorable Subst.

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477 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do 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.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 27 $ FY 28 $ Insurance Dept.

1 IF - Cost 120,000 157,000 Note:

IF=Insurance Fund Municipal Impact:

Municipalities Effect FY 27 $ FY 28 $ Various Municipalities Potential None Potential Revenue Gain Explanation The bill results in a cost to the Insurance Fund of $120,000 in FY 27 and $157,000 annually thereafter associated with one new position for an administrative officer.

The bill creates a nonlapsing climate resilience account and requires the Insurance Department to collect a 5% surcharge on fossil fuel infrastructure insurance policies for deposit into theaccount,necessitatinganadditionalposition.Thebillmayalsoresult in a potentialrevenue gain to municipalities for climate resilience grants from the account, beginning in FY 28.

The annualized cost for the new Insurance Department position is anticipated to be $84,000 in salary and $73,000 in fringe benefits 1The fringe benefit costs for employees funded out of other appropriated funds are budgeted within the fringe benefit account of those funds, as opposed to the fringe benefit accounts within the Office of the State Comptroller.

The estimated active employee fringe benefit cost associated with most personnel changes for other appropriated fund employees is 85.92% of payroll in FY 27.

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477 beginning in FY 28.

Partial-year personnel costs in FY 27 are anticipated to be $63,000 and $55,000 respectively, reflecting an October 1, 2026 start date.

Other expenses for the new position are expected to total $2,000 in FY 27 for a laptop and related supplies.

The bill requires the Commissioner of the Department of Energy and Environmental Protection to establish the account and administer the disbursement of funds, resulting in no cost to the state, as the department has sufficient resources to meet the bill’s requirements.

To the extent that the account provides grant funding to municipalities for climate resilience infrastructure, the bill may result in a revenue gain to municipalities that apply for the funding, beginning in FY 28.

The magnitude and timing of any revenue gain is dependent on the funds disbursed.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation and grants disbursed from the account.

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477 OLR Bill Analysis sSB 453 AN ACT CONCERNING A CLIMATE CHANGE RELATED SURCHARGE ON CERTAIN INSURANCE POLICIES.

SUMMARY Beginning January 1, 2027, this bill creates a 5% surcharge on new or renewed property or casualty insurance policies (including captive insurance policies) in Connecticut for fossil fuel infrastructure that facilitates or expands oil, methane gas, or coal processing, exporting, or transporting.

This includes infrastructure related to wells, pipelines, terminals, refineries, or utility-scale generation facilities.