SB 927 — AN ACT CREATING THE ENVIRONMENTAL INFRASTRUCTURE FUND WITHIN THE CONNECTICUT GREEN BANK.

General Assembly RaisedSubstitute Bill No.

927 January Session, 2019 LCOAN No.ACT CREATING THE ENVIRONMENTAL INFRASTRUCTURE FUND WITHIN THE CONNECTICUT GREEN BANK.

4297 Referred to Committee on BANKING Introduced by:

(BA) AN ACT CREATING THE ENVIRONMENTAL INFRASTRUCTURE FUND WITHIN THE CONNECTICUT GREEN BANK.

[, "clean energy"] (1) "Clean energy" means solar photovoltaic energy, solar thermal, geothermal energy, wind, ocean thermal energy, wave or tidal energy, fuel cells, landfill gas, hydropower that meets the low-impact standards of the Low-Impact Hydropower Institute, hydrogen production and hydrogen conversion technologies, low emission advanced biomass conversion technologies, alternative fuels, used for electricity generation including ethanol, biodiesel or other fuel produced in Connecticut and derived from agricultural produce, food waste or waste vegetable oil, provided the Commissioner of Energy and Environmental Protection determines that such fuels provide net reductions in greenhouse gas emissions and fossil fuel consumption, usable electricity from combined heat and power systems with waste heat recovery systems, thermal storage systems, other energy resources and emerging technologies which have significant potential for commercialization and which do not involve the combustion of LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00927-R1 of 15 SB.docx Substitute Bill No.

4297927 1 of 15 Raised Bill No.927 usable electricity from combined heat and power systems with waste heat recovery systems, thermal storage systems, 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, financing of energy efficiency projects, projects that seek to deploy electric, electric hybrid, natural gas or alternative fuel vehicles and associated infrastructure, any related storage, distribution, manufacturing technologies or facilities and any Class I renewable energy source, as defined in section 16-1;

[.] and (2) "Environmental infrastructure" means infrastructure, facilitiesfacilities, services and improvement projects related to water, waste and recycling, zero-zero-emission emission vehicle refueling, climate adaptation and resiliency, agriculture, land conservation, parks and recreation, and other environmental markets.

Upon authorization of the Connecticut Green Bank established pursuant to subsection (d) of this section, any amount in said fund may be used for expenditures that promote investment in clean energy in accordance with a comprehensive plan developed by it to foster the growth, development and commercialization of clean energy sources, related enterprises and stimulate demand for clean energy and deployment of clean energy sources that serve end use customers in this state and for the further purpose of supporting operational demonstration projects for advanced technologies that LCOreduce No.energy use from traditional sources.

4297Such 2expenditures ofmay 15include, Raisedbut Billnot No.927be reducelimited to, providing low-cost financing and credit enhancement mechanisms for clean energy useprojects fromand traditionaltechnologies, sources.reimbursement of the operating expenses, including administrative LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0092 of 15 R02-SB.docx } Substitute Bill No.

Such927 expenditures may include, but not be limited to, providing low-cost financing and credit enhancement mechanisms for clean energy projects and technologies, reimbursement of the operating expenses, including administrative expenses incurred by the Connecticut Green Bank and Connecticut Innovations, Incorporated, and capital costs incurred by the Connecticut Green Bank in connection with the operation of the fund, the implementation of the plan developed pursuant to subsection (d) of this section or the other permitted activities of the Connecticut Green Bank, disbursements from the fund to develop and carry out the plan developed pursuant to subsection (d) of this section, grants, direct or equity investments, contracts or other actions which support research, development, manufacture, commercialization, deployment and installation of clean energy technologies, and actions which expand the expertise of individuals, businesses and lending institutions with regard to clean energy technologies.

Such expenditures may include, but not be limited to, providing low-cost financing and credit enhancement mechanisms for environmental infrastructure projects and technologies, reimbursement of the operating expenses, including administrative expenses incurred by the Connecticut Green Bank, and capital costs incurred by the Connecticut Green Bank in connection with the operation of the fund, the implementation of the plan developed pursuant to subsection (d) of this section or the other permitted activities of the Connecticut Green Bank, disbursements from the fund to develop and carry out the plan developed pursuant to subsection (d) of this section, grants, direct or equity investments, contracts or other actions which support research, development, manufacture, LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0093 of 15 R02-SB.docx } Substitute Bill No.

4297927 3 of 15 Raised Bill No.927 from the fund to develop and carry out the plan developed pursuant to subsection (d) of this section, grants, direct or equity investments, contracts or other actions which support research, development, manufacture, commercialization, deployment and installation of environmental infrastructure, and actions which expand the expertise of individuals, businesses and lending institutions with regard to environmental infrastructure.

No ratepayer or Regional Greenhouse Gas EmissionInitiative funds shall be deposited into such Environmental Infrastructure Fund.

The Connecticut Green Bank shall constitute a successor agency to the Clean Energy Finance and Investment Authority for purposes of administering the Clean Energy LCOFund No.in accordance with section 4-38d.

4297 4 of 15 Raised Bill No.927 Fund in accordance with section 4-38d and for the purpose of administering the Environmental Infrastructure Fund.

The Connecticut Green Bank shall be subject to suit and liabilityLCO solely{\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0094 from the assets, revenues and resources of said15 bankR02-SB.docx and} withoutSubstitute recourseBill toNo. the general funds, revenues, resources or other assets of Connecticut Innovations, Incorporated.

927 liability solely from the assets, revenues and resources of said bank and without recourse to the general funds, revenues, resources or other assets of Connecticut Innovations, Incorporated.

The Connecticut Green Bank shall administer the Environmental Infrastructure Fund.

(D) In addition to, and not in limitation of, any other power of the Connecticut Green Bank set forth in this section or any other provision of the general statutes, said bank shall have and may exercise the LCOfollowing No.powers in furtherance of or in carrying out its purposes:

4297(i) 5To ofhave 15perpetual Raisedsuccession Billas No.927a followingbody powerscorporate inand furtheranceto ofadopt orbylaws, inpolicies carryingand outprocedures for the regulation of its purposes:affairs and the LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0095 of 15 R02-SB.docx } Substitute Bill No.

(i)927 To have perpetual succession as a body corporate and to adopt bylaws, policies and procedures for the regulation of its affairs and the conduct of its business;

(ix) To enter into joint ventures and invest in, and participate with any person, including, without limitation, government entities and private corporations, in the formation, ownership, management and operation of business entities, including stock and nonstock corporations, limited liability companies and general or limited partnerships, formed to advance the purposes of said bank, provided LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0096 of 15 R02-SB.docx } Substitute Bill No.

4297927 6 of 15 Raised Bill No.927 operation of business entities, including stock and nonstock corporations, limited liability companies and general or limited partnerships, formed to advance the purposes of said bank, provided members of the board of directors or officers or employees of said bank may serve as directors, members or officers of any such business entity, and such service shall be deemed to be in the discharge of the duties or within the scope of the employment of any such director, officer or employee, as the case may be, so long as such director, officer or employee does not receive any compensation or financial benefit as a result of serving in such role;

The governing documents of any such LCOsubsidiary No.shall provide for the dissolution of such subsidiary upon the completion of the purpose for which such subsidiary was formed.

4297Each 7such ofsubsidiary 15may Raisedsue Billand No.927 subsidiary shall providebe forsubject theto dissolutionsuit, ofprovided suchits subsidiaryLCO upon{\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0097 the completion of the15 purposeR02-SB.docx for} whichSubstitute suchBill subsidiaryNo. was formed.

Each927 such subsidiary may sue and shall be subject to suit, provided its liability shall be limited solely to the assets, revenues and resources of the subsidiary and without recourse to the general funds, revenues, resources or any other assets of said bank.

(v) The Connecticut Green Bank, or such subsidiary, may take such actions as are necessary to comply with the provisions of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, to qualify and maintain any such subsidiary as a corporation exempt LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0098 of 15 R02-SB.docx } Substitute Bill No.

4297927 8 of 15 Raised Bill No.927 Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, to qualify and maintain any such subsidiary as a corporation exempt from taxation under said code.

(i) Funds repurposed from existing programs providing financing support for clean energy and environmental infrastructure projects, provided any transfer of funds from such existing programs shall be subject to approval by the General Assembly and shall be used for expenses of financing, grants and loans;

(iii) Charitable gifts, grants, contributions as well as loans from individuals, corporations, university endowments and philanthropic LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0099 of 15 R02-SB.docx } Substitute Bill No.

4297927 9 of 15 Raised Bill No.927 (iii) Charitable gifts, grants, contributions as well as loans from individuals, corporations, university endowments and philanthropic foundations;

(F) The Connecticut Green Bank shall make information regarding the rates, terms and conditions for all of its financing support transactions available to the public for inspection, including formal annual reviews by both a private auditor conducted pursuant to subdivision (2) of subsection (f) of this section and the Comptroller, and providing details to the public on the Internet, provided public disclosure shall be restricted for patentable ideas, trade secrets, proprietary or confidential commercial or financial information, LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0010 of 15 R02-SB.docx } Substitute Bill No.

4297927 10 of 15 Raised Bill No.927 disclosure shall be restricted for patentable ideas, trade secrets, proprietary or confidential commercial or financial information, disclosure of which may cause commercial harm to a nongovernmental recipient of such financing support and for other information exempt from public records disclosure pursuant to section 1-210.

one for four years who LCOshall No.be a representative of a labor organization;

4297and 11one ofwho 15shall RaisedLCO Bill{\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0011 No.927of shall15 beR02-SB.docx a} representativeSubstitute ofBill aNo. labor organization;

and927 one who shall have experience in research and development or manufacturing of clean energy.

(3) No member of the board of directors of the Connecticut Green LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0012 of 15 R02-SB.docx } Substitute Bill No.

4297927 12 of 15 Raised Bill No.927 Bank shall be a trustee, director, partner or officer of any person, firm or corporation, or have a financial interest in a person, firm or corporation that participates in or otherwise receives support from programs developed, administered or otherwise supported by the Connecticut Green Bank.

(f) (1) The board shall issue annually a report to the Department of Energy and Environmental Protection reviewing the activities of the Connecticut Green Bank in detail and shall provide a copy of such report, in accordance with the provisions of section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to energy, the environment and commerce.

(3) Any entity that receives financing for a clean energy or environmental infrastructure project from the [fund] Clean Energy Fund or the Environmental Infrastructure Fund shall provide the board an annual statement, certified as correct by the chief financial officer of the recipient of such financing, setting forth all sources and uses of funds in such detail as may be required by the bank for such LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0013 of 15 R02-SB.docx } Substitute Bill No.