HB 5004 — AN ACT CONCERNING THE PROTECTION OF THE ENVIRONMENT AND THE DEVELOPMENT OF RENEWABLE ENERGY SOURCES AND ASSOCIATED JOB SECTORS.

821 sHB5004 File No.

821 General Assembly having cognizance of matters relating to higher education and employment advancement the plan developed or updated pursuant to subsection (c) of this section.] Sec.

[(A)] (1) To assist school building projects to remedy damage from fire and catastrophe, [(B)] (2) to correct safety, health and other code violations, [(C)] (3) to replace roofs, including the replacement or installation of skylights as part of the roof replacement project, [(D)] (4) to remedy a certified school indoor air quality emergency, [(E)] (5) to install insulation for exterior walls and attics, or [(F)] (6) to purchase and install a limited use and limited access elevator, windows, photovoltaic panels, air source or ground source heat pumps, wind generation systems, building managementPublic systemsAct orNo. portable classroom buildings, provided portable classroom building projects shall not create a new facility or cause an existing facility to be modified so that the portable buildings comprise a substantial percentage of the total facility area, as determined by the commissioner.

25-125 10 of 22 Substitute House Bill No.

5004 management systems or portable classroom buildings, provided portable classroom building projects shall not create a new facility or cause an existing facility to be modified so that the portable buildings comprise a substantial percentage of the total facility area, as determined by the commissioner.

(b) Such plan shall provide for the availability of affordable heat pump options, with a focus on heat pump applications that have the greatest potential benefits, including, but not limited to, lowering sHB5004consumers' /energy Filecosts, No.reducing impacts to the electric grid, and improving building resilience, including, but not limited to:

821 sHB5004 File No.

821 consumers' energy costs, reducing impacts to the electric grid, and improving building resilience, including, but not limited to:

Not later than January 1, 2027, the commissioner shall submit a report, inaccordancewiththeprovisionsofsection11-4aofthegeneralstatutes,Public toAct theNo. joint standing committees of the General Assembly having cognizance of matters relating to the environment and energy and technology on the status of such plan and any recommendations for expanding or revising such plan.

25-125 11 of 22 Substitute House Bill No.

5004 inaccordancewiththeprovisionsofsection11-4aofthegeneralstatutes, to the joint standing committees of the General Assembly having cognizance of matters relating to the environment and energy and technology on the status of such plan and any recommendations for expanding or revising such plan.

sHB5004Sec. / File No.

821 sHB5004 File No.

821 Sec.

(b) Not later than July 1, 2027, the Department of Administrative Services, in consultation with the Office of Policy and Management and the Department of Energy and Environmental Protection, shall develop aPublic planAct andNo. a budget to retrofit existing fossil fuel-based heating and cooling systems at state buildings to systems capable of being operated withoutcarbon-emittingfuels.Suchplanandbudgetshallbesubmitted, inaccordancewiththeprovisionsofsection11-4aofthegeneralstatutes, to the joint standing committees of the General Assembly having cognizance of matters relating to the environment and energy and technology.

25-125 12 of 22 Substitute House Bill No.

5004 a plan and a budget to retrofit existing fossil fuel-based heating and cooling systems at state buildings to systems capable of being operated withoutcarbon-emittingfuels.Suchplanandbudgetshallbesubmitted, inaccordancewiththeprovisionsofsection11-4aofthegeneralstatutes, to the joint standing committees of the General Assembly having cognizance of matters relating to the environment and energy and technology.

(NEW) (Effective from passage) (a) The Commissioner of Energy and Environmental Protection shall evaluate how to integrate and advance nature-based solutions in the state that support climate change mitigation, climate change adaptation, ecosystem resilience and biodiversity through (1) the microgrid and resilience grant and loan pilot program authorized pursuant to section 16-243y of the general statutes, (2) the open space and watershed land acquisition program authorized pursuant to sections 7-131d to 7-131k, inclusive, of the general statutes, as amended by this act, and (3) other applicable state and federal programs administered by the Department of Energy and Environmental Protection that advance nature-based solutions, sHB5004including, /but Filenot No.limited to, (A) federal Clean Water Act programs, (B) the Long Island Sound Study program, and (C) the Urban Forestry program.

821 sHB5004 File No.

821 including, but not limited to, (A) federal Clean Water Act programs, (B) the Long Island Sound Study program, and (C) the Urban Forestry program.

(1) Increasing carbon sequestration through increased forest acreage, including reforestation, (2) controlling invasive species, (3) encouraging soil health across all landscapes, (4) protecting carbon stocks through avoiding the conversion of forests and wetlands to other purposes, (5) restoring habitats to improve biodiversity, (6) increasing climate-smart agriculturePublic andAct soilNo. conservation to reduce greenhouse gas emissions while improving habitat and protecting biodiversity, (7) increasing community resilience by improving water quality and addressing flooding and drought through nature-based stormwater management and shoreline protection that uses nature-based approaches such as living shorelines, (8) improving air quality and reducing urban heat island effects through urban forestry and increasing green spaces, and (9) increase access to open space for public health benefits.

(c)25-125 Not13 laterof than22 JulySubstitute 1,House 2026,Bill theNo. commissioner shall post such nature-based solutions initiativeprogram evaluation on the department's Internet web site for review and written comment.

5004 agriculture and soil conservation to reduce greenhouse gas emissions while improving habitat and protecting biodiversity, (7) increasing community resilience by improving water quality and addressing flooding and drought through nature-based stormwater management and shoreline protection that uses nature-based approaches such as living shorelines, (8) improving air quality and reducing urban heat island effects through urban forestry and increasing green spaces, and (9) increase access to open space for public health benefits.

(c) Not later than July 1, 2026, the commissioner shall post such nature-based solutions initiative program evaluation on the department's Internet web site for review and written comment.

(Effective from passage) Not later than January 15, 2027, the chairperson of the Public Utilities Regulatory Authority shall submit, in accordance with the provisions of section 11-4a of the general statutes, sHB5004the /results Fileof No.a study to develop a solar canopy strategic plan and program design to the joint standing committee of the General Assembly having cognizance of matters relating to energy and technology.

821The sHB5004plan Fileshall identify opportunities for solar canopies in the state and shall prioritize the development of solar canopies in environmental justice communities, as defined in section 22a-20a of the generalstatutes.Theplanshallincludeanexaminationofdifferentways to promote solar canopies and shall include recommendations for policies, programs or regulations to promote the construction of solar canopiesin thestate, consistent withthegreenhouse gasreductiongoals established in section 22a-200a of the general statutes, as amended by Public Act No.

82125-125 the14 results of a22 studySubstitute toHouse developBill aNo. solar canopy strategic plan and program design to the joint standing committee of the General Assembly having cognizance of matters relating to energy and technology.

The5004 plan shall identify opportunities for solar canopies in the state and shall prioritize the development of solar canopies in environmental justice communities, as defined in section 22a-20a of the generalstatutes.Theplanshallincludeanexaminationofdifferentways to promote solar canopies and shall include recommendations for policies, programs or regulations to promote the construction of solar canopiesin thestate, consistent withthegreenhouse gasreductiongoals established in section 22a-200a of the general statutes, as amended by this act.

(1) "Alliance district" has the same meaning asprovided in section10- sHB5004262u; / File No.

821 sHB5004 File No.

821 262u;

and (3) "Low-income resident"] "low-income resident" means, after adjustments for family size, individuals or families whose income is not greater than [(A)] (1) sixty per cent of the state median income, [(B)] (2) eighty per cent of the area median income for the area in which the resident resides, as determined by the United States Department of HousingPublic andAct UrbanNo. Development, or [(C)] (3) any other definition of "low-income resident" included in any program in the state that utilizes federal funding, as determined by the Commissioner of Energy and Environmental Protection.

25-125 15 of 22 Substitute House Bill No.

5004 Housing and Urban Development, or [(C)] (3) any other definition of "low-income resident" included in any program in the state that utilizes federal funding, as determined by the Commissioner of Energy and Environmental Protection.

sHB5004(c) /The FileCommissioner of Energy and Environmental Protection, in collaboration with the Commissioner of Housing, shall establish a pilot program or programs to provide financing or grants from the fund established in subsection (b) of this section for retrofitting projects for single and multifamily residences [located in environmental justice communities or alliance districts] that (1) improve the energy efficiency Public Act No.

82125-125 sHB500416 Fileof 22 Substitute House Bill No.

8215004 (c) The Commissioner of Energy and Environmental Protection, in collaboration with the Commissioner of Housing, shall establish a pilot program or programs to provide financing or grants from the fund established in subsection (b) of this section for retrofitting projects for single and multifamily residences [located in environmental justice communities or alliance districts] that (1) improve the energy efficiency of such residences, which may include, but need not be limited to, the installation of heat pumps, solar power generating systems, improved roofing, exterior doors and windows, improved insulation, air sealing, improved ventilation, appliance upgrades and any electric system or wiring upgrades necessary for such retrofit, (2) remediate health and safety concerns that are barriers to any such retrofit, including, but not limited to, mold, vermiculite, asbestos, lead and radon, [or] (3) add resilience measures to such residences, which may include, but need not be limited to, flood mitigation, (4) provide services to assist residents and building owners to access and implement the programs established pursuant to this section or other available state or federal programs that enable the implementation of energy efficiency retrofitting, or (5) replace heating, ventilation and air conditioning equipment to residences impacted by extreme weather events.

sHB5004(a) /There Fileis No.established the protected open space and watershed land acquisition grant program.

821The sHB5004program Fileshall provide grants to municipalities and nonprofit land conservation organizations to acquire Public Act No.

82125-125 (a)17 Thereof is22 establishedSubstitute theHouse protectedBill openNo. space and watershed land acquisition grant program.

The5004 program shall provide grants to municipalities and nonprofit land conservation organizations to acquire land or permanent interests in land for open space and watershed protection and to water companies, as defined in section 25-32a, to acquire and protect land which is eligible to be classified as class I or class II land, as defined in section 25-37c, after acquisition.

(c) Grants may be made under the protected open space and sHB5004Public /Act File No.

82125-125 sHB500418 Fileof 22 Substitute House Bill No.

8215004 watershed land acquisition grant program established under subsection (a) of this section for restoration or protection of natural features or habitats of, or for repurposing for urban agricultural use on, open space already owned by a (1) distressed municipality, as defined in section 32- 9p, (2) targeted investment community, as defined in section 32-222, (3) municipality, provided such open space is located in an environmental justice community, as defined in section 22a-20a, or (4) nonprofit land conservation organization, provided such open space is located in a distressed municipality, targeted investment community or environmental justice community.

(B) land with environmental contamination over a significant portion of the property provided grants for land requiring remediation of environmental contamination may be made if remediation will be completed before acquisition of the land or any interest in the land and an environmental assessment approved by the Commissioner of Energy andPublic EnvironmentalAct ProtectionNo. has been completed and no environmental use restriction applies to the land;

(C)25-125 land19 whichof has22 sHB5004Substitute /House FileBill No.

8215004 sHB5004and FileEnvironmental No.Protection has been completed and no environmental use restriction applies to the land;

821(C) land which has already been committed for public use, except as provided in subsection (c) of section 7-131g;

Such grantPublic shallAct be used for the acquisition of land, or easements, interests or rights therein, or for the development of such land, or easements, interests or rights therein, for purposes set forth in this section, or both, in accordance with a plan of development adopted by the municipal planning commission of the municipality within which the land is sHB5004 / File No.

82125-125 sHB500420 Fileof 22 Substitute House Bill No.

8215004 grant shall be used for the acquisition of land, or easements, interests or rights therein, or for the development of such land, or easements, interests or rights therein, for purposes set forth in this section, or both, in accordance with a plan of development adopted by the municipal planning commission of the municipality within which the land is located.

Such permanent conservation easement shall also include a requirement that the property be made available to the general public for appropriate recreational purposes, the maintenance of which recreational access shall be the responsibility of the grantee provided such access shall not be required for land which will be classified as class I or class II land by awatercompanyifsuchaccessisinconsistent withtheprovisionofpurewith theprovisionofpure drinking water to the public.

An exception to the provision of public recreational access may be made at the discretion of the Commissioner ofPublic EnergyAct andNo. Environmental Protection when provision for public access would be unreasonably detrimental to the wildlife or plant habitat or other natural features of the property or, for land where development rights have been purchased, would be disruptive of agricultural activity occurring on the land.

Any25-125 instrument21 conveying an interest in land less than fee which interest is purchased under this section shall provide for the permanent preservation of the22 landSubstitute andHouse sHB5004Bill / File No.

8215004 sHB5004of FileEnergy No.and Environmental Protection when provision for public access would be unreasonably detrimental to the wildlife or plant habitat or other natural features of the property or, for land where development rights have been purchased, would be disruptive of agricultural activity occurring on the land.

821Any instrument conveying an interest in land less than fee which interest is purchased under this section shall provide for the permanent preservation of the land and public access consistent with the land's use or protection and with any restrictions prescribed by the Department of Public Health in order to protect a public drinking water source.

ThisGovernor's actAction: shall take effect as follows and shall amend the following sections:

SectionApproved 1July from1, passage2025 NewPublic sectionAct Sec.No.

225-125 from22 passageof 22a-200a22 Sec.

3 from passage 22a-200b Sec.

4 July 1, 2025 32-7t(c)(3) Sec.

5 from passage New section Sec.

6 from passage New section Sec.

7 from passage 31-3rr Sec.

8 July 1, 2025 10-283(b) Sec.

9 October 1, 2025 New section Sec.

10 from passage New section Sec.

11 from passage New section Sec.

12 from passage New section Sec.

13 from passage New section Sec.

14 from passage New section Sec.

15 from passage 8-240a(a) to (e) Sec.

16 from passage 7-131d Sec.

17 from passage New section sHB5004 / File No.

821 sHB5004 File No.

821 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 26 $ FY 27 $ Secretary of the State GF - Revenue Minimal Minimal Loss Treasurer, Debt Serv.

GF - Cost See Below See Below Note:

GF=General Fund Municipal Impact:

Municipalities Effect FY 26 $ FY 27 $ Local and Regional School Potential See Below See Below Districts;

All Municipalities Revenue Gain/ Potential Cost Explanation Sections 1 - 3 set new state targets for greenhouse gas (GHG) emissions to reach an economy-wide net zero GHG emission reduction level by January 1, 2050.

The requirements contained in these sections do not result in a cost to the state, as they either codify existing practice or are non-binding planning GHG targets with proposals for regulations, policies, and strategies to achieve various targets.

The additional requirements included in Sections 1 - 3 that specifically target the Department of Energy and Environmental Protection (DEEP) do not result in an additional cost, as DEEP has the staff and expertise necessary to complete them.

Section 4 allows the Department of Economic and Community Development to give a preference to certain applications under the sHB5004 / File No.

821 sHB5004 File No.

821 JobsCT tax rebate program.

This does not result in any fiscal impact as it does not change the existing aggregate credit cap of $40 million annually.

Section 5 requires the Secretary of the State to waive any registration or renewal fees for any benefit corporation in the state resulting in a minimal revenue loss to the Secretary of the State.

As of March 21, 2025, there are approximately 70 certified benefit corporations operating in Connecticut.

Sections 6 and 7 have no fiscal impact by establishing the Connecticut Clean Economy Council with the Commissioner of Economic and Community Development and the Chief Workforce Officer as co-chairpersons of the Council.

The Department of Economic and Community Development and the Office of Workforce Strategy have the expertise necessary to fulfill the Council's duties as required by the bill.

Section 8 expands the list of allowable non-priority list projects to include certain school air quality projects and is anticipated to increase long-term state spending under the school construction program.

The state’s share of costs for the school construction program is funded using General Obligation (GO) bonds, which are in turn repaid through General Fund debt service payments.

The bill does not change bond authorization levels for the program.

The increased GO bond spending will finance revenue gains to municipalities and school districts for those projects that would not have otherwise been funded as part of larger school construction projects.

Section 9 requires DEEP to develop a plan and report on various issues related to heat pumps.

This is not anticipated to result in a fiscal impact as DEEP has the staff and expertise necessary to complete both the plan and report.

Section10 requirestheDepartment ofAdministrativeServices(DAS) to develop policy guidelines for environmentally sustainable purchasing for municipalities, which results in no fiscal impact to the sHB5004 / File No.

821 23 sHB5004 File No.

821 state.

Section 11 requires DAS to develop a plan to consider energy efficient options when repairing or building real assets and retrofitting existing fossil fuel based heating and cooling systems, which codifies current practice and does not result in any fiscal impact.

Section 12 requires DEEP to evaluate various nature-based solutions and to consider best practices when identifying the best solutions.

This is not anticipated to result in a cost to DEEP as they have the staff and expertise necessaryto complete thenature-basedsolutionrequirements.

Section 13 requires the Public Utilities Regulatory Authority (PURA) to submit a report on a solar canopy strategy and is not anticipated to result in a fiscal impact as PURA has the staff and expertise necessary to do so.

Section 14 requires DEEP to submit a report on various issues related to energy and is not anticipated to result in a fiscal impact as DEEP has the staff and expertise necessary to do so.

Section 15 alters eligible uses of funding under the Housing Environmental Improvement Revolving Loan and Grant program, which is funded through General Obligation (GO) bond funds.

Future General Fund debt service costs may be incurred or incurred soonerdue to the program’s changes to the degree that it causes authorized GO bond funds to be expended or to be expended more quickly than they otherwise would have been.

As of March 1, 2025, there is an unallocated bond balance of $125 million for the program.

The bill does not change GO bond authorizations.

Section 16 expands eligible projects under the protected open space and watershed land acquisition grant program.

These changes are not anticipated to result in additional costs to the state, as no new funding is designated for the program.

However, these changes could result in a sHB5004 / File No.

821 24 sHB5004 File No.

821 redistribution of funds, which could impact grant recipients.

Section 17 requires DEEP to study renters’ use of the state energy efficiency and clean energy programs, which is not anticipated to result in a fiscal impact as DEEP has the staff and expertise necessary to complete the study.

House "A" strikes the underlying bill and its associated fiscal impact and replaces it with the fiscal impact described above.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation and the terms of any bonds issued and future grant awards.

sHB5004 / File No.

821 25 sHB5004 File No.

821 OLR Bill Analysis sHB 5004 (as amended by House "A")* AN ACT CONCERNING THE PROTECTION OF THE ENVIRONMENT AND THE DEVELOPMENT OF RENEWABLE ENERGY SOURCES AND ASSOCIATED JOB SECTORS.

TABLE OF CONTENTS:

SUMMARY §§ 1-3 — GREENHOUSE GAS EMISSIONS REDUCTION AND ZERO- CARBON GOALS Establishes new state GHG emissions reduction levels;

for state agencies, sets new GHG emissions reduction goals and a goal to use only zero-carbon generating electricity;

modifies DEEP reporting requirements on GHG emissions and reduction progress reports § 4 — JOBSCT TAX REBATE PROGRAM Allows the DECD commissioner to give a preference to applications under the JobsCT tax rebate program that (1) make significant investments in environmentally sustainable practices;

(2) are in economic sectors like renewable energy, energy efficiency, and zero- emission vehicles;

or (3) are for sustainable farming § 5 — BENEFIT CORPORATION REGISTRATION AND RENEWAL VOUCHERS Provides vouchers for qualifying benefit corporations for registration and renewal fees §§ 6 & 7 — CONNECTICUT CLEAN ECONOMY COUNCIL Establishes a Connecticut Clean Economy Council to advise on strategies and policies to further climate mitigation, clean energy, resilience, and sustainability efforts;

requires the council to (1) develop a plan to transition workers away from fossil-fuel-based jobs to those in clean energy and (2) submit an annual report of its work to the governor, OPM, and four legislative committees sHB5004 / File No.

821 26 sHB5004 File No.

821 § 8 — SCHOOL BUILDING CONSTRUCTION GRANTS Adds air source and ground source heat pump projects to the list of school construction project grant applications that the DAS commissioner can approve at any time § 9 — RESIDENTIAL HEAT PUMP SYSTEMS PLAN & REBATE PROGRAM Requires the DEEP commissioner to (1) develop a plan for installing affordable heat pumps and (2) report on the plan to the Environment and Energy and Technology committees by January 1, 2027 § 10 — ENVIRONMENTALLY SUSTAINABLE PURCHASING BY MUNICIPALITIES Requires DAS to (1) create a model policy or guidelines for environmentally sustainable purchasing that municipalities can use and (2) post it on the agency’s website by January 1, 2026 § 11 — STATE BUILDING ENERGY EFFICIENCY AND HEATING AND COOLING SYSTEMS Requires DAS to develop a (1) process for considering certain energy- relatedaspectswhendecidingtorepairorbuildstaterealassetsunder its authority and (2) plan and budget to retrofit existing fossil fuel- based heating and cooling systems to those that operate without carbon-emitting fuels § 12 — NATURE-BASED SOLUTIONS INITIATIVE Requires DEEP to (1) evaluate how to integrate and advance nature- based solutions in specified programs to support climate change mitigation and adaptation, ecosystem resilience, and biodiversity;

(2) consider specifiedbest practicesaspartofthisevaluation;and(3)post the evaluation on its website, hold a listening session for public comment, and give it to specified state agencies for their review and input § 13 — SOLAR CANOPY STRATEGIC PLAN Requires PURA to report to the Energy and Technology Committee on a solar canopy strategy and program design § 14 — ENERGY COSTS REPORT Requires DEEP, in consultation with the Office of Consumer Counsel, to report to the Environment and Energy and Technology committees on lowering energy costs, increasing community extreme weather resilience, and contributing to GHG emission reductions sHB5004 / File No.

821 27 sHB5004 File No.

821 § 15 — HOUSING ENVIRONMENTAL IMPROVEMENT REVOLVING LOAN AND GRANT FUND REVISIONS Makes various changes to the existing Housing Environmental Improvement Revolving Loan and Grant Fund and related program to, among other things, allow (1) the program to finance qualifying projects located anywhere, rather than just in targeted areas, and (2) DEEP to enter into contracts with electrical distribution and gas companies to administer the fund § 16 — OPEN SPACE AND WATERSHED LAND ACQUISITION GRANT PROGRAM GRANTS FOR URBAN AGRICULTURE USE Broadens the purposes for which certain OSWA grants may be used to include repurposing open space land for urban agricultural use § 17 — RENTER UTILIZATION STUDY Requires DEEP to study renters’ use of certain state energy efficiency and clean energy programs and report its findings and recommendations to the Environment and Energy and Technology committees by July 1, 2026 SUMMARY This bill establishes various requirements relating broadly to energy efficiency and greenhouse gas emissions reduction goals, as described in the section-by-section analysis below.

*HouseAmendment“A”eliminatesprovisionsintheunderlyingbill:

1.

requiring the Public Utilities Regulatory Authority (PURA) to open an uncontested proceeding on the future of the natural gas distribution system in the state in relation to the state’s emission reduction levels;

2.

requiring PURA to establish a utility-scale renewable thermal energy network program, including a pilot component, working group, and study;

3.

requiring gas companies to develop incentive programs for connecting customers to municipally owned renewable thermal energy networks;

sHB5004 / File No.

821 sHB5004 File No.

821 4.

expanding an existing Department of Energy and Environmental Protection (DEEP) procurement authorization to include active demand response projects and gas demand response projects;

and 5.

authorizing DEEP to allot up to 10% of Open Space and Watershed Land Acquisition Program (OSWA) funding for mitigating wildfire risks on certain properties and relatedly requiring DEEP to develop criteria and guidelines for these funds.

The amendment also:

1.

expands the benefit corporations that may receive vouchers under the bill to include certain certified corporations (§ 5), 2.

specifies that DEEP must consult with the Office of Consumer Counsel in preparing an energy costs report to the legislature (§ 14), 3.

eliminates the requirement that qualifying projects be located in targeted areas to qualify under DEEP’s retrofitting project funding pilot program (§ 15), and 4.

changes the types of urban agricultural projects that qualify for OSWA grants (§ 16).

EFFECTIVE DATE:

Upon passage, except as noted below.

§§ 1-3 — GREENHOUSE GAS EMISSIONS REDUCTION AND ZERO- CARBON GOALS Establishes new state GHG emissions reduction levels;

for state agencies, sets new GHG emissions reduction goals and a goal to use only zero-carbon generating electricity;

modifies DEEP reporting requirements on GHG emissions and reduction progress reports Connecticut Goals (§ 2) The bill generally requires the state to reach an economy-wide net zero greenhouse gas (GHG) emission level by January 1, 2050.

It establishes this requirement as part of the state’s Global Warming sHB5004 / File No.

821 29 sHB5004 File No.

821 Solutions Act (GWSA).

Under current law, the GWSA requires the state to reduce GHG emissions from all sources to a level at least:

1.

10% below the 1990 emission level by 2020, 2.

45% below the 2001 emission level by 2030, and 3.

80% below the 2001 emission level by 2050.

It also requires the state to reduce GHG emissions from electricity supplied to electric customers in the state to zero by 2040.

The bill sets a new GHG reduction level requirement of 65% below the 2001 emission level by 2040.

It also requires that, by 2050, the state be at an economy-wide net-zero level, if direct and indirect GHG emissions are at least 80% below the 2001 level.

(Direct emissions include those from manufacturing processes and factory stacks.

Indirect emissions include those from electricity consumed by commercial and industrial businesses.) By law, the DEEP commissioner determines emission levels.

GHG includes any chemical or physical substance emitted into the air that the DEEP commissioner reasonably anticipates will cause or contribute to climate change (e.g., carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride).

State Agency Goals (§ 1) The bill establishes the following GHG emission reduction goals for all state agencies, as a whole:

1.

45% from 2001 levels by 2030, 2.

70% from 2016 levels by 2040, and 3.

a level determined to be net-zero by 2050.

It sets a separate goal for the agencies to use only zero-carbon sHB5004 / File No.

821 30 sHB5004 File No.

821 generating electricity by 2030.

The bill allows agencies to consider the socialcosts of GHG emissions (e.g., net agricultural productivity, harms to human health, property damage, and the value of ecosystem services) when evaluating the costs and benefits of their activities and facility improvements to meet these GHG reduction goals.

By January 1, 2026, the DEEP commissioner must publishguidelinesforstateagenciesonthesocialcostofGHGemissions on the department’s website.

Periodic Reporting (§§ 2 & 3) GHG Emissions Inventory.

The bill requires the DEEP commissioner to annually publish, beginning January 1, 2026, an inventory on GHG emission sources and carbon sequestered to (1) set an emissions baseline, and (2) report on the quantifiable GHG emission reductions and carbon sequestration achieved.

GHG Reduction Progress Reports.

Under existing law, the DEEP commissioner, in consultation with the Office of Policy and Management (OPM) secretary and the Governor’s Council on Climate Change, must report to the Energy and Technology, Environment, and Transportation committees every three years on quantifiable GHG reductionsto achieve theemissionreduction goalsdescribedabove.

The bill (1) moves the deadline for the next report, from January 1, 2027, to January 1, 2026;

(2) requires the report to additionally include quantifiable carbon sequestration (undefined by the bill) achieved;

and (3) requires DEEP to produce the report with an opportunity for public comment.

The bill allows the DEEP commissioner to contract with a consultant to help prepare the report.

As under existing law, the report must include:

1.

a schedule of proposed regulations, policies, and strategies (which, under the bill, may include carbon sequestration) designed to achieve the reduction levels;

sHB5004 / File No.

821 31 sHB5004 File No.

821 2.

an assessment of the latest scientific information and relevant data on global climate change;

and 3.

the status of other states’ and countries’ GHG emission reduction efforts.

The bill also eliminates a requirement under current law that DEEP, every three years and with help from a nonprofit association with northeastern state air quality and climate program expertise, develop a schedule of recommended regulatory actions by relevant agencies, policies, and other actions needed to further progress toward achieving the GHG reduction levels.

§ 4 — JOBSCT TAX REBATE PROGRAM Allows the DECD commissioner to give a preference to applications under the JobsCT tax rebate program that (1) make significant investments in environmentally sustainable practices;

(2) are in economic sectors like renewable energy, energy efficiency, and zero- emission vehicles;

or (3) are for sustainable farming Bylaw,theDepartmentofEconomicandCommunityDevelopment’s (DECD) JobsCT tax rebate program gives companies in specified industries rebates against insurance premiums, corporation business taxes, and pass-through entity taxes for reaching certain job creation targets.

The bill allows the DECD commissioner to give a preference to applications for the program that:

1.

make significant investments in environmentally sustainable practices (e.g., zero-carbon energy and energy efficiency);

2.

are in economic sectors such as renewable energy, energy efficiency, and zero-emission vehicles;

or 3.

are for farming operations that are sustainable from a climate perspective.

EFFECTIVE DATE:

July 1, 2025 sHB5004 / File No.

821 32 sHB5004 File No.

821 § 5 — BENEFIT CORPORATION REGISTRATION AND RENEWAL VOUCHERS Provides vouchers for qualifying benefit corporations for registration and renewal fees The bill requires the secretary of the state to give benefit corporations (b-corps) vouchers for their registration and renewal fees.

(It is unclear which fees qualify for a voucher.) To receive a voucher, the b-corp must (1) give the secretary evidence that it meets state law’s requirements for a b-corp or (2) be certified by an entity the secretary of state recognizes for the certification process.

By law, b-corps are business corporations (1) that elect to become subject to the Connecticut Benefit Corporation Act and (2) whose status as a benefit corporation has not been terminated under the act (e.g., by amending its certificate of incorporation to delete any provision stating that thecorporationisa b-corp).Among otherthings,b-corpsmust have a purpose of creating a “general public benefit,” which generally means having a material positive impact on both society and the environment.

§§ 6 & 7 — CONNECTICUT CLEAN ECONOMY COUNCIL Establishes a Connecticut Clean Economy Council to advise on strategies and policies to further climate mitigation, clean energy, resilience, and sustainability efforts;

requires the council to (1) develop a plan to transition workers away from fossil-fuel-based jobs to those in clean energy and (2) submit an annual report of its work to the governor, OPM, and four legislative committees The bill establishes a statutory Connecticut Clean Economy Council to advise on strategies and policies to strengthen the state’s climate mitigation, clean energy, resilience, and sustainability programs, particularly for vulnerable communities (i.e.

populations that may be disproportionately affected by climate change).

(Executive Order (EO) 21-3 created an advisory council of the same name to give input on strategies and policies to strengthen climate mitigation, clean energy, resilience, and sustainability programs.) Duties and Reporting Requirements Under the bill, the council has the following duties:

1.

identify opportunities to leverage state and federal funding to sHB5004 / File No.

821 33 sHB5004 File No.

821 scale economic development and workforce opportunities associated with climate mitigation, clean energy, and resilience and sustainability investments (this must be led by the co- chairperson from DECD);

2.

serve as a central coordinating body for (a) climate mitigation, (b) clean energy, (c) resilience and sustainability workforce efforts, and (d) statewide opportunities for a technically advanced, enduring labor force (this must be led by the co-chairperson from the Office of Workforce Strategy);

3.

develop economic development and workforce strategies that support investment and growth of climate mitigation, clean energy, resilience, and sustainability job growth;

and 4.

advise the governor on any statewide economic or workforce action plan in clean energy, climate, and sustainability.

The bill requires the council to develop a plan to transition workers from fossil-fuel-based jobs to clean economy jobs, which must be submitted to the Commerce, Energy and Technology, and Environment committees by July 1, 2026.

(It correspondingly eliminates similar requirements for the advisory council created under EO 21-3 to develop and annually update a plan for worker transition to clean energy jobs and annually report on it to the Higher Education and Employment Advancement Committee.) Starting by February 15, 2026, the council must biennially submit a report to the governor, OPM, and the Commerce, Environment, Energy andTechnology,andHigherEducationandEmploymentAdvancement committees on its work, findings, and recommendations.

Membership and Meetings Under the bill, the council consists of the following members:

1.

the commissioners of the departments of Economic and Community Development, Energy and Environmental sHB5004 / File No.

821 34 sHB5004 File No.

821 Protection, Transportation, Labor, and Consumer Protection, or their designees;

2.

theChiefWorkforce Officer orher designee,andonemember she appoints to represent a regional workforce development board;

3.

the OPM secretary or his designee;

4.

the Connecticut Green Bank and Connecticut Innovations, Inc.

chief executive officers, or their designees;

5.

a representative of the governor’s office;

6.

any other members the co-chairpersons designate, who serve at the co-chairpersons’ pleasure;

7.

one member appointed by each of the six legislative leaders.

Members appointed by the legislative leaders must have at least one of the following qualifications or backgrounds:

1.

being a Connecticut TechnicalEducationCareer Systemmember, 2.

being a representative of a nonprofit organization that focuses on helping people overcome barriers to workforce participation, 3.

having expertise in hiring and training employees in green technology-related trades, 4.

being a representative of a higher education institution who has expertise in technical education, or 5.

being a Connecticut State Building Trades Council member.

Under the bill, the council co-chairpersons are the DECD and DEEP commissioners and the Chief Workforce Officer, or their designees.

The bill requires the council to meet at least quarterly, with the co- chairpersons setting the dates, times, and locations for the meetings.

A majority of the council members constitutes a quorum.

sHB5004 / File No.

821 35 sHB5004 File No.

821 § 8 — SCHOOL BUILDING CONSTRUCTION GRANTS Adds air source and ground source heat pump projects to the list of school construction project grant applications that the DAS commissioner can approve at any time The bill adds air source and ground source heat pump purchase and installation to the list of school construction project grant applications that the Department of Administrative Services (DAS) commissioner can approve at any time without putting them on an annual school construction priority list for the legislature’s approval.

The commissioner may already approve applications for grants to do things likeremedycodeviolationsandfiredamage;replaceroofs;fixacertified school indoor air quality emergency;

or purchase or install solar panels, wind generation systems, and windows.

EFFECTIVE DATE:

July 1, 2025 § 9 — RESIDENTIAL HEAT PUMP SYSTEMS PLAN & REBATE PROGRAM Requires the DEEP commissioner to (1) develop a plan for installing affordable heat pumps and (2) report on the plan to the Environment and Energy and Technology committees by January 1, 2027 The bill requires the DEEP commissioner to develop a plan for installing efficient heat pumps for affordable heating and cooling systems in the state.

The plan must (1) provide for making affordable heat pump options available and (2) describe how the state could best use any available or future grant or loan funding.

The plan must focus on heat pump applications with the greatest potential benefits, including lowering consumers’ energy costs, reducing electric grid impacts, and improving building resilience.

At a minimum, these affordable heat pump options must include the following:

1.

heat pump installations in residences in environmental justice communities and long-term care facilities where at least 80% of the residents are Medicaid recipients in good financial standing with the state;

sHB5004 / File No.

821 36 sHB5004 File No.

821 2.

access to energy efficient, affordable air conditioning for residents experiencing high energy bills and health risks during heat waves;

3.

increased resilience during extreme heat events for homes and businesses;

4.

improved flood resilience for homes and businesses by enabling home heating systems to be located above ground;

5.

low- or no-interest loans to replace heating, ventilation, and air conditioning equipment in residences impacted by extreme weather events;

6.

cost savings and potential benefits for transitioning from electric resistance heating;

7.

analysis of accelerating the adoption of heat pump water heaters, including public education and the possible need for contractor incentives;

and 8.

potential for a demand response program.

By January 1, 2027, the DEEP commissioner must report to the Environment and Energy and Technology committees on the plan’s status and any recommendations for expanding or revising the plan.

EFFECTIVE DATE:

October 1, 2025 § 10 — ENVIRONMENTALLY SUSTAINABLE PURCHASING BY MUNICIPALITIES Requires DAS to (1) create a model policy or guidelines for environmentally sustainable purchasing that municipalities can use and (2) post it on the agency’s website by January 1, 2026 The bill requires DAS, in consultation with the OPM secretary, to develop a model policy or guidelines for environmentally sustainable purchasing that municipalities may use and implement.

The policy or guidelines must include a list of any state contracts for sustainable purchasing that allow for municipal participation.

The DAS sHB5004 / File No.

821 37 sHB5004 File No.

821 commissioner must post the policy or guidelines on the agency’s website by January 1, 2026.

§ 11 — STATE BUILDING ENERGY EFFICIENCY AND HEATING AND COOLING SYSTEMS Requires DAS to develop a (1) process for considering certain energy-related aspects when deciding to repair or build state real assets under its authority and (2) plan and budget to retrofit existing fossil fuel-based heating and cooling systems to those that operate without carbon-emitting fuels The bill requires DAS,by January 1, 2026, to establish a process for its commissioner to consider certain energy-related aspects when deciding to remodel, alter, repair, construct, or enlarge any state real asset under its existing property authority.

Specifically, it must consider the asset’s capability to increase energy efficiency, reduce energy use, use Class I renewable energy, use zero-carbon heating and cooling and water heating alternatives, support electric vehicle charging, and act as a resilience hub.

DAS must do this in consultation with OPM, DEEP, the Department of Transportation, and any other state agency its commissioner deems necessary.

The bill also requires DAS, by July 1, 2027, and in consultation with OPM and DEEP, to develop a plan and budget to retrofit existing fossil fuel-based heating and cooling systems at state buildings to systems able to operate without carbon-emitting fuels.

The plan and budget must be submitted to the Environment and Energy and Technology committees.

§ 12 — NATURE-BASED SOLUTIONS INITIATIVE Requires DEEP to (1) evaluate how to integrate and advance nature-based solutions in specified programs to support climate change mitigation and adaptation, ecosystem resilience, and biodiversity;

(2) consider specified best practices as part of this evaluation;

and (3) post the evaluation on its website, hold a listening session for public comment, and give it to specified state agencies for their review and input The billrequirestheDEEPcommissioner to evaluate howto integrate and advance nature-based solutions in specified programs to support (1) climate change mitigation and adaptation, (2) ecosystem resilience, and (3) biodiversity.

It requires that DEEP’s efforts to advance nature- based solutions be known as the nature-based solutions initiative.

sHB5004 / File No.

821 38 sHB5004 File No.

821 Under the bill, the evaluation must examine the potential for using nature-based solutions in the following programs:

1.

the microgrid and resilience grant and loan pilot program;

2.

the open space and watershed land acquisition program;

and 3.

other applicable state and federal programs administered by DEEP that advance nature-based solutions, including (a) federal Clean Water Act programs, (b) the Long Island Sound Study program, and (c) the Urban Forestry program.

Evaluation Development The bill requires the commissioner, as part of the evaluation, to consider best practices to encourage the use of the state’s ecosystems to naturally sequester and store carbon, reduce GHG emissions, increase biodiversity, and protect against climate change impacts.

These best practices include the following:

1.

increasing carbon sequestration through increased forest acreage (e.g., by reforestation);

2.

controlling invasive species;

3.

encouraging soil health across all landscapes;

4.

protecting carbon stocks by avoiding conversion of forests and wetlands to other purposes;

5.

restoring habitats to improve biodiversity;

6.

increasing climate-smart agriculture and soil conservation to reduce GHG emissions while improving habitat and protecting biodiversity;

7.

increasing community resilience by improving water quality and addressing flooding and drought through nature-based stormwater management and shoreline protection that uses sHB5004 / File No.

821 sHB5004 File No.

821 nature-based approaches (e.g., living shorelines);

8.

improving air quality and reducing urban heat island effects through urban forestry and increasing green spaces;

and 9.

increasing access to open spaces for public health benefits.

Under the bill, the commissioner must (1) post the nature-based solutions initiative program evaluation on DEEP’s website by July 1, 2026, for review and written comment and (2) hold a listening session after the report is posted to obtain public comment.

She must also give it to the following agencies for review and input:

the Agriculture, Housing, Insurance, Public Health, and Transportation departments;

the Connecticut Green Bank;

and OPM.

§ 13 — SOLAR CANOPY STRATEGIC PLAN Requires PURA to report to the Energy and Technology Committee on a solar canopy strategy and program design The bill requires the PURA chairperson, by January 15, 2027, to submit a report to the Energy and Technology Committee on the results of a study to develop a solar canopy strategic plan and program design.

The plan must:

1.

identify opportunities for solar canopies in the state and examine different methods to promote them;

2.

prioritize their development in environmental justice communities;

and 3.

recommend policies, programs, or regulations that would promote their construction according to GHG reduction goals.

§ 14 — ENERGY COSTS REPORT Requires DEEP, in consultation with the Office of Consumer Counsel, to report to the Environment and Energy and Technology committees on lowering energy costs, increasing community extreme weather resilience, and contributing to GHG emission reductions The bill requires DEEP, by February 1, 2026, and in consultation with the Office of Consumer Counsel, or the office’s designee, to submit a sHB5004 / File No.

821 40 sHB5004 File No.

821 report to the Environment and Energy and Technology committees on recommended regulations, policies, and strategies to (1) significantly lower energy costs for families and businesses, (2) increase community resilience to extreme weather events (e.g., flooding and extreme heat), and (3) contribute to GHG emission reductions.

The report may use modeling scenarios for GHG emissions, and the commissioner may engage a consultant to help prepare all or part of it.

§ 15 — HOUSING ENVIRONMENTAL IMPROVEMENT REVOLVING LOAN AND GRANT FUND REVISIONS Makes various changes to the existing Housing Environmental Improvement Revolving Loan and Grant Fund and related program to, among other things, allow (1) the program to finance qualifying projects located anywhere, rather than just in targeted areas, and (2) DEEP to enter into contracts with electrical distribution and gas companies to administer the fund Current law requires DEEP, in collaboration with the Department of Housing, to start one or more pilot programs that provide financing to qualifying retrofit projects in multifamily homes located in environmental justice communities or alliance districts (e.g., energy efficiency projects or projects to address health concerns).

The financing is funded through the Housing Environmental Improvement Revolving Loan and Grant Fund, with $125 million in general obligation bonds authorized to capitalize the fund.

The bill makes the following changes to the program:

1.

eliminates the requirement that the retrofit projects be located in environmental justice communities or alliance districts to qualify for the financing;

2.

allows the program to provide financing to single-family homes in addition to multifamily homes;

3.

expands the list of qualifying retrofit projects to include (a) adding resilience measures (e.g., flood protection) and (b) replacing heating, ventilation, and air conditioning systems of homes impacted by extreme weather events;

sHB5004 / File No.

821 41 sHB5004 File No.

821 4.

allows DEEP to enter contracts with electrical distribution or gas companies, in addition to quasi-public agencies and nonprofits as existing law allows, to administer the fund;

and 5.

limits the projects DEEP may approve for financing under the program to those benefiting current or prospective low-income residents, rather than requiring DEEP to prioritize projects benefiting these residents.

§ 16 — OPEN SPACE AND WATERSHED LAND ACQUISITION GRANT PROGRAM GRANTS FOR URBAN AGRICULTURE USE Broadens the purposes for which certain OSWA grants may be used to include repurposing open space land for urban agricultural use The Open Space and Watershed Land Acquisition Program (OSWA), which DEEP administers, generally gives state grants to municipalities, land trusts, and water companies to buy land to be preserved as open space in perpetuity.

Existing law allows DEEP, under OSWA, to award grants to certain municipalities and land trusts to restore or protect open space land they already own.

The bill additionally allows DEEP to award these grants for repurposing the open space land for urban agricultural use.

It also expands the types of restoration or protection for which DEEP may award the grants to include urban agricultural use.

As under existing law, restoration or protection may also include restoring wetland, wildlife, or plant habitats or replacing vegetation.

By law, unchanged by the bill, DEEP may award these grants to distressed municipalities, targeted investment communities, municipalities seeking to restore or protect open space in an environmental justice community, and land trusts seeking to restore or protect open space in these municipalities.

§ 17 — RENTER UTILIZATION STUDY Requires DEEP to study renters’ use of certain state energy efficiency and clean energy programs and report its findings and recommendations to the Environment and Energy and Technology committees by July 1, 2026 sHB5004 / File No.

821 42 sHB5004 File No.

821 The bill requires DEEP to study renters’ use of the state energy efficiency and clean energy programs for which it can obtain data, including any barriers renters experience accessing the programs and any recommendations for addressing them.

DEEP must report on its recommendations to the Environment and Energy and Technology committees by July 1, 2026.

COMMITTEE ACTION Environment Committee Joint Favorable Substitute Yea 23 Nay 10 (03/14/2025) sHB5004 / File No.

821 43