Connecticut 2021 Regular Session Status: In Committee 1 D cosponsors

SB 993 — AN ACT ASSESSING AN ANNUAL FEE AGAINST CERTAIN CLASS I RENEWABLE ENERGY SOURCE INSTALLATIONS.

Last action — FILE NO. 292

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2021 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

104 added · 116 removed

104 line(s) added, 116 removed.

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General Assembly Raised Bill No.
Senate General Assembly File No.
993 January Session, 2021 LCO No.
292 January Session, 2021 Substitute Senate Bill No.
4233 Referred to Committee on ENERGY AND TECHNOLOGY Introduced by:
993 Senate, April 6, 2021 The Committee on Energy and Technology reported through SEN.
(ET) AN ACT REMOVING THE PROPERTY TAX EXEMPTION FOR SOLAR PROJECTS AND RECLASSIFYING THE TAX CALCULATION OF SOLAR PROJECTS ON SINGLE PARCELS OF LAND.
NEEDLEMAN of the 33rd Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.
AN ACT ASSESSING AN ANNUAL FEE AGAINST CERTAIN CLASS I RENEWABLE ENERGY SOURCE INSTALLATIONS.
Subdivision (57) of section 12-81 of the general statutes is repealed andthefollowing issubstituted inlieuthereof(EffectiveOctober 1, 2021, and applicable to tax assessment years commencing on and after October 1, 2021):
(NEW) (Effective July 1, 2021) (a) As used in this section:
(57) (A) (i) Any Class I renewable energy source, as defined in section 16-1, or hydropower facility described in subdivision (21) of subsection (a) of section 16-1, installed for the generation of electricity capacity greater than seven megawatts for private residential use or on a farm, as defined in subsection (q) of section 1-1, provided such installation occursonorafterOctober1,2007,andfurtherprovidedsuchinstallation is for a single family dwelling, a multifamily dwelling consisting of two to four units or a farm, (ii) any passive or active solar water or space heating system, or (iii) any geothermal energy resource.
(1) "Class I renewable energy source" has the same meaning as provided in section 16-1 of the general statutes;
In the case of clause (i) of this subparagraph, such installations occurring on a single LCO No.
(2) "Person" has the same meaning as provided in section 16-1 of the general statutes;
4233 1 of 4 Raised Bill No.993 parcel oflandshallaggregatethenameplatecapacity ofeachinstallation in the written application pursuant to subparagraph (E) of this section.
(3) "Plant capacity" means a non-solar plant's rated electrical nameplate capacity;
In the case of clause (ii) or (iii) of this subparagraph, such exemption shall apply only to the amount by which the assessed valuation of the real property equipped with such system or resource exceeds the assessed valuation of such real property equipped with the conventional portion of the system or resource;
and (4) "Solar energy plant capacity" means a solar energy plant's aggregate alternating current nameplate capacity for all inverters used to convert said plant's energy output to alternating current.
(B) For assessment years commencing on and after October 1, 2013, any Class I renewable energy source, as defined in section 16-1, hydropower facility described in subdivision (21) of subsection (a) of section 16-1, or solar thermal or geothermal renewable energy source, installed for generation or displacement of energy, provided (i) such installation occurs on or after January 1, 2010, (ii) such installation is for commercial or industrial purposes, (iii) the nameplate capacity of such source or facility does not exceed the load for the location where such generation or displacement is located, and (iv) such source or facility is located in a distressed municipality, as defined in section 32-9p, with a population between one hundred twenty-five thousand and one hundred thirty-five thousand;
sSB993 / File No.
(C) For assessment years commencing on and after October 1, 2013, any municipality may, upon approval by its legislative body or in any town in which the legislative body is a town meeting, by the board of selectmen, abate up to one hundred per cent of property tax for any Class I renewable energy source, as defined in section 16-1, hydropower facility described in subdivision (21) of subsection (a) of section 16-1, or solar thermal or geothermal renewable energy source, installed for generation or displacement of energy, provided (i) such installation occurs between January 1, 2010, and December 31, 2013, (ii) such installation is for commercial or industrial purposes, (iii) the nameplate capacity of such source or facility does not exceed the load for the location where such generation or displacement is located, and (iv) such source or facility is not located in a municipality described in subparagraph (B) of this subdivision;
292 1 sSB993 File No.
LCO No.
292 (b) (1) Any person who installs a Class I renewable energy source for generation or displacement of energy shall pay an annual assessment fee of five dollars per kilowatt of plant capacity or solar energy plant capacity to the municipality where such installation is located, provided (A) such installation is completed on or after July 1, 2021, (B) the annual production in kilowatt-hours of such source or facility is designed to exceed the annual load for the location where such generation or displacement is located, and (C) such source or facility has a plant capacity or solar energy plant capacity greater than fifty kilowatts.
4233 2 of 4 Raised Bill No.993 (D) For assessment years commencing on and after October 1, 2014, any (i) Class I renewable energy source, as defined in section 16-1, (ii) hydropower facility described in subdivision (21) of subsection (a) of section 16-1, or (iii) solar thermal or geothermal renewable energy source, installed for generation or displacement of energy, provided (I) such installation occurs on or after January 1, 2014, (II) is for commercial or industrial purposes, (III) the nameplate capacity of such source or facility does not exceed the load for the location where such generation or displacement is located or the aggregated load of the beneficial accountsfor any ClassI renewableenergysourceparticipatinginvirtual net metering pursuant to section 16-244u, and (IV) in the case of clause (iii) of this subparagraph, such exemption shall apply only to the amount by which the assessed valuation of the real property equipped with such source exceeds the assessed valuation of such real property equipped with the conventional portion of the source;
(2) Any person subject to subdivision (1) of subsection (b) of this section shall file with the tax collector of such municipality where such installation is located, in such form and manner as the tax collector prescribes, an annual declaration stating the amount of kilowatt plant capacity or solar energy plant capacity and the fee amount calculated thereon.
(E) Any person claiming the exemption provided in this subdivision for any assessment year shall, on or before the first day of November in such assessment year, file with the assessor or board of assessors in the town in which such hydropower facility, Class I renewable energy source, solar thermal or geothermal renewable energy source or passive or active solar water or space heating system or geothermal energy resource is located, a written application claiming such exemption.
Such fee shall be due and payable and collectible as municipal taxes and subject to the same liens and processes of collection.
Failure to file such application in the manner and form as provided by such assessor or board within the time limit prescribed shall constitute a waiver of the right to such exemption for such assessment year.
Such application shall not be required for any assessment year following that for which the initial application is filed, provided if such hydropower facility, Class I renewable energy source, solar thermal or geothermal renewable energy source or passive or active solar water or space heating system or geothermal energy resource is altered in a manner which would require a building permit, such alteration shall be deemed a waiver of the right to such exemption until a new application, applicable with respect to such altered source, is filed and the right to such exemption is established as required initially;
LCO No.
4233 3 of 4 Raised Bill No.
993 (F) For assessment years commencing on and after October 1, 2015, any municipality may, by vote of its legislative body or, in a municipality where the legislative body is a town meeting, by vote of the boardofselectmen,abate upto onehundredper cent oftheproperty taxes due for any tax year, for not longer than the term of the power purchase agreement, with respect to any Class I renewable energy source, as defined in section 16-1, that is the subject of such power purchase agreement approved by the Public Utilities Regulatory Authority pursuant to section 16a-3f;
Section 1 October 1, 2021, and 12-81(57) applicable to tax assessment years commencing on and after October 1, 2021 Statement of Purpose:
Section 1 July 1, 2021 New section ET Joint Favorable Subst.
To remove the property tax exemption for solar projects under seven megawatts and reclassify the tax calculation of solar projects on single parcels of land.
sSB993 / File No.
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.
292 2 sSB993 File No.
4233 4 of 4
292 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:
None Municipal Impact:
Municipalities Effect FY 22 $ FY 23 $ Various Municipalities Revenue Approximately Approximately Gain $250,000 $300,000 Explanation The bill requires that Class I renewable energy projects with a capacity greater than 50 kilowatts pay a $5 fee per kilowatt to the municipality they are located in.
The provisions of the bill only apply to such projects installed after July 1, 2021.
The bill is anticipated to result in a revenue gain to municipalities of approximately $250,000 in FY 22 and increase into the future as capacity limits are increased.
Based on historical averages, it is anticipated that the bill would initially apply to approximately 50 megawatts in aggregate capacity across all related projects and increase incrementally in FY 23.
The Out Years The annualized ongoing fiscal impact identified above would continue subject to the growth in capacity of Class I projects that exceed kilowatts.
sSB993 / File No.
292 3 sSB993 File No.
292 OLR Bill Analysis sSB 993 AN ACT ASSESSING AN ANNUAL FEE AGAINST CERTAIN CLASS I RENEWABLE ENERGY SOURCE INSTALLATIONS.
SUMMARY This bill requires developers of certain Class I renewable energy source projects (e.g., wind or solar) to pay an annual assessment to the municipality where the project is located.
The assessment is $5 per kilowatt of capacity.
For solar projects, capacity is measured as “solar energy plant capacity,” meaning the aggregate alternating current nameplate capacity for all inverters used to convert the plant’s energy output to alternating current.
For all other projects, “plant capacity” is the plant’s rated electrical nameplate capacity.
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(Generally, a system’s rated nameplate capacity is its maximum output under optimal conditions.) The bill’s annual assessment requirement applies to facilities (1) installed on or after July 1, 2021;
(2) designed to generate more energy annually than their location’s annual load;
and (3) with a plant capacity or solar energy plant capacity over 50 kilowatts.
Under the bill, anyone required to pay the assessment must file an annual declaration with the municipality’s tax collector, in a form and manner the collector prescribes, stating the (1) amount of plant capacity orsolarenergyplantcapacityinkilowattsand(2)calculatedfeeamount.
The bill provides that the fee is due, payable, and collectible as municipal taxes, subject to the same liens and collection processes.
EFFECTIVE DATE:
July 1, 2021 COMMITTEE ACTION Energy and Technology Committee Joint Favorable Substitute sSB993 / File No.
292 4 sSB993 File No.
292 Yea 26 Nay 0 (03/18/2021) sSB993 / File No.
292 5
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Action History

  1. FILE NO. 292

  2. SENATE CALENDAR NUMBER 183

  3. FAV. RPT., TAB. FOR CAL., SEN.

  4. RPTD. OUT OF LCO

  5. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 04/06/21

  6. FILED WITH LCO

  7. Joint Favorable Substitute

  8. PUBLIC HEARING 0309

  9. REF. TO JOINT COMM. ON Energy and Technology

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 186 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (186)

186 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors SB 993?
SB 993 is sponsored by Catherine A. Osten (Democratic).
What is the current status of SB 993?
This bill died with 2021 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 993?
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