HB 6280 — AN ACT CONCERNING THE ESTABLISHMENT OF A CLIMATE CHANGE SUPERFUND.

The purpose of the program shall be to:

(1) Secure compensatory payments from responsible parties based on a standard of strict liability to provide a source of revenue for climate change adaptation projects within the state, (2) determine proportional liability of responsible parties, (3) impose cost recovery demands on responsible partiesandissuenoticesofcost recovery demands,(4)accept andcollect payment from responsible parties, (5) develop, adopt, implement and update the strategy that will identify and prioritize climate change adaptation projects, and (6) disperse funds to implement climate change adaptation projects identified in the strategy.

(c)Eachresponsiblepartyshallbestrictlyliableforashareofthecosts of climate change adaptation projects and all qualifying expenditures supported by the fund.

For purposes of this section, entities in a LCO No.

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(1) Treated by the department as a single entity for the purpose of identifying responsible parties;

and (2) jointly and severally liable for payment of any cost recovery demand owed by any entity in the controlled group.

For any responsible party, the cost recovery demand shall be equal to an amount that bears the same ratio to the cost to the state and the state's residents, as calculated by the State Treasurer pursuant to this section, from the emission of covered greenhouse gases during the covered period as the responsible party's applicable share of covered greenhouse gas emissions bears to the aggregate applicable shares of covered greenhouse gas emissions resulting from the use of fossil fuels extracted or refined during the covered period.If a responsibleparty ownsaminority interest oftenper cent or more in another entity, the responsible party's applicable share of covered greenhouse gas emissions shall be increased by the applicable share of covered greenhouse gas emissions for the entity in which the responsible party holds a minority interest multiplied by the percentage of the minority interest held by the responsible party.

The department shall use the United States Environmental Protection Agency's Emissions Factors for Greenhouse Gas Inventories as applied to thefossilfuel volume datafor thepurpose ofdetermining theamount of covered greenhouse gas emissions attributable to any entity from the fossil fuels attributable to the entity.

(d) The department may adjust the cost recovery demand amount of a responsible party who refined petroleum products or who is a successor in interest to an entity that refines petroleum products if the responsible party establishes to the satisfaction of the department that:

(1) A portion of the cost recovery demand amount was attributable to the refining of crude oil extracted by another responsible party, and (2) the crude oil extracted by the other entity was accounted for when the department determined the cost recovery demand amount for the other entity or a successor in interest of the other entity.

(e) The department shall issue the cost recovery demands required under this section not later than six months following the adoption of LCO No.

4800 5 of 10 Committee Bill No.6280 the regulations required pursuant to this section.

(f) (1) Except as provided in subdivision (2) of this subsection, a responsible party shall pay the cost recovery demand amount in full not later than six months following the department's issuance of the cost recovery demand.

(2) A responsible party may elect to pay the cost recovery demand amount in nine annual installments in accordance with this subdivision, provided the first installment shall be paid not later than six months following the department's issuance of the cost recovery demand and shall be equal to twenty per cent of the total cost recovery demand amount.

Each subsequent installment shall be paid one year from the initial payment each subsequent year and shall be equal to ten per cent of the total cost recovery demand amount.

The department may charge reasonable interest on each installment payment or a payment delayed for any other reason and may adjust the amount of a subsequent installment payment or a payment delayed for any other reason to reflect increases or decreases in the consumer price index.

The unpaid balance of all remaining installments shall become due immediately if:

(A) The responsible party fails to pay any installment in a timely manner, as specified in regulations adopted pursuant to this section;

(B) there is a liquidation or sale of substantially all the assets of the responsible party;

or (C) the responsible party ceases to do business.

In the case of a sale of substantially all the assets of a responsible party, the remaining installments shall not become due immediately if the buyer enters into an agreement with the department under which the buyer assumes liability for the remaining installments due under this subdivision in the same manner as if the buyer were the responsible party.

(g) The department shall deposit cost recovery payments collected under this section in the Climate Superfund Cost Recovery Program Fund established pursuant to this section.

(h)Any responsible partyaggrievedbytheissuance ofa notice ofcost LCO No.

4800 6 of 10 Committee Bill No.6280 recovery demand shall exhaust administrative remedies by filing a request for reconsideration with the department not later than thirty days following issuance of the notice of cost recovery demand.

A request for reconsideration shall state grounds for the request and include supporting documentation.

The department shall notify the responsible party of the final decision by issuing a subsequent notice of cost recovery demand.

A responsible party aggrieved by the issuance of a final notice of cost recovery demand may bring an action in the Superior Court.

(i) There is created the Climate Superfund Cost Recovery Program Fund to be administered by the Commissioner of Energy and Environmental Protection to provide funding for climate change adaptation projects in the state.

The fund shall consist of:

(1) Cost recovery payments deposited in the fund pursuant to this section, (2) moneys from time to time appropriated to the fund by the General Assembly, and (3) other gifts, donations or other moneys received from any source, public or private, dedicated for deposit into the fund.

(j) The fund may be used only:

(1) To pay qualified expenditures for climate change adaptation projects identified by the department in the strategy, and (2) for reasonable administrative expenses of the program, including the cost to the state Auditors of Public Accounts associated with the hiring of technical expertise necessary to complete the audits required under this section.

(k) On or before February 15, 2026, the department, in consultation with the State Treasurer, shall submit a report to the joint standing committee of the General Assembly having cognizance of matters relating to the environment detailing the feasibility and progress of carrying out the requirements of this section, including any recommendations for improving the administration of the program.

(l) The department, in accordance with the provisions of chapter 54 of the general statutes, shall adopt regulations necessary to implement the requirements of this section, including, but not limited to:

(1) LCO No.

4800 7 of 10 Committee Bill No.6280 Adopting methodologies using available science and publicly available data to identify responsible parties and determine their applicable share of covered greenhouse gas emissions;

(2) requirements for registering entities that are responsible parties and issuing notices of cost recovery demands under the program;

and (3) the resilience implementation strategy, which shall include:

(A) Practices utilizing nature-based solutions intended to stabilize floodplains, riparian zones, lake shoreland, wetlands and similar lands, (B) practices to adapt infrastructure to the impacts of climate change, (C) practices needed to build out early warning mechanisms and support fast, effective response to climate-related threats, (D) practices that support economic and environmental sustainability in the face of changing climate conditions, and (E) criteria and procedures for prioritizing climate changeadaptationprojectseligibletoreceive moneysfromtheprogram.

(m) In adopting the strategy, the department shall:

(1) Consult with other state agencies and departments to assess the adaptation needsand vulnerabilities of various areas vital to the state's economy, normal functioning and the health and well-being of residents of the state;

(2) identify major potential, proposed and ongoing climate change adaptation projects throughout the state;

(3) identify opportunities for alignment with existing federal, state and local funding streams;

(4) consult with stakeholders, including local governments, businesses, environmental advocates, relevant subject area experts and representatives of environmental justice communities;

and (5) conduct public engagement in areas and communities that have the most significant exposure to the impacts of climate change, including disadvantaged, low-income and rural communities and areas.

(n) Beginning on January 1, 2031, and every five years thereafter, the state Auditors of Public Accounts shall evaluate the operation and effectiveness of the Climate Superfund Cost Recovery Program.

The auditors shall make recommendations to the department on ways to increase program efficacy and cost-effectiveness.

The auditors shall submit the results of the audit to the joint standing committee of the LCO No.

4800 8 of 10 Committee Bill No.6280 General Assembly having cognizance of matters relating to the environment.

The auditors shall be reimbursed from the fund for any costs associated with hiring technical expertise necessary to complete the audits required under this section.

(o) On or before January 1, 2027, the State Treasurer, after consultation with the department for the purpose of obtaining and utilizing credible data or methodologies that the Treasurer determines may aid in making the assessments and estimates required by this section, shall submit to the joint standing committee of the General Assembly having cognizance of matters relating to the environment an assessment of the cost to the state and its residents of the emission of covered greenhouse gases for the period that began on January 1, 1995, and ended on December 31, 2025.

The assessment shall include:

(1) A summary of the various cost-driving effects of covered greenhouse gas emissions on the state, including effects on public health, natural resources, biodiversity, agriculture, economic development, flood preparedness and safety, housing and any other effect that the Treasurer, in consultation with the department, determines is relevant, (2) a categorized calculation of the costs that have been incurred and are projected to be incurred in the future within the state for each of the effects identified under subdivision (1) of this subsection, and (3) a categorized calculation of the costs that have been incurred and are projected to be incurred in the future within the state to abate the effects of covered greenhouse gas emissions between January 1, 1995, and December 31, 2025, on the state and its residents.

This act shall take effect as follows and shall amend the following sections:

Section 1 July 1, 2025 New section Statement of Purpose:

26824800 19 of 110 Committee Bill No.

6280 [Proposed deletions are enclosed in brackets.

Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] REP.

WINTER, 94th Dist.;

REP.

MUSHINSKY, 85th Dist.

Co-Sponsors:

REP.

SHANNON, 117th Dist.

H.B.

6280 LCO No.

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