AN ACT CONCERNING A CLIMATE CHANGE SUPERFUND.

House of Representatives
sHB5156 / File No. 104 1

General Assembly File No. 104
February Session, 2026 Substitute House Bill No. 5156

House of Representatives, March 23, 2026

The Committee on Environment reported through REP.
PARKER of the 101st Dist., Chairperson of the Committee on
the part of the House, that the substitute bill ought to pass.

AN ACT CONCERNING A CLIMATE CHANGE SUPERFUND.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. (NEW) ( Effective October 1, 2026 ) (a) For purposes of this 1
section: 2
(1) "Department" means the Department of Energy and 3
Environmental Protection; 4
(2) "Climate change adaptive infrastructure project" means an 5
infrastructure project designed to avoid, moderate, repair or adapt to 6
negative impacts caused by climate change and to assist communities, 7
households and businesses in preparing for future climate change -8
driven disruptions, including, but not limited to, restoring coastal 9
wetlands and developing other nature -based solutions and coastal 10
protections, upgrading stormwater drainage systems, making defensive 11
upgrades to roads, bridges, railroads and transit systems, preparing for 12
and recovering from extreme weather events, undertaking preventive 13
health care programs and providing medical care to treat illness or 14
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injury caused by the effects of climate change, relocating, elevating or 15
retrofitting sewage treatment plants and other infrastructure vulnerable 16
to flooding, installing energy -efficient cooling systems and other 17
weatherization and energy -efficiency upgrades and retrofits in public 18
and private buildings, including schools and public housing, upgrading 19
parts of the electrical grid to increase reliability and resilience, including 20
supporting the creation of self -sufficient microgrids, addressing urban 21
heat island effects through green spaces, urban forestry and other 22
interventions and responding to toxic algae blooms, loss of agricultural 23
topsoil, crop loss and other climate-driven ecosystem threats to forests, 24
farms, fisheries and food systems; 25
(3) "Climate superfund cost recovery program" or "program" means 26
the climate adaptation cost recovery program established pursuant to 27
this section; 28
(4) "Climate Superfund Cost Recovery Program Fund" or "fund" 29
means the climate change adaptation fund established pursuant to this 30
section; 31
(5) "Coal" means bituminous coal, anthracite coal and lignite; 32
(6) "Commissioner" means the Commissioner of Energy and 33
Environmental Protection; 34
(7) "Controlled group" means two or more entities treated as a single 35
employer under 26 USC 52(a) or (b), without regard to 26 USC 36
1563(b)(2)(C), or, alternatively, 26 USC 414(m) or (o), provided for 37
purposes of this section, entities in a controlled group shall be treated as 38
a single entity for purposes of meeting the definition of "responsible 39
party" and shall be jointly and severally liable for payment of any cost 40
recovery demand owed by any entity in the controlled group; 41
(8) "Cost recovery demand" means a charge asserted against a 42
responsible party for cost recovery payments under the program for 43
payment to the fund; 44
(9) "Covered greenhouse gas emissions" means, with respect to any 45
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entity, the total quantity of greenhouse gases released into the 46
atmosphere during the covered period, expressed in metric tons of 47
carbon dioxide equivalent, including, but not limited to, releases of 48
greenhouse gases resulting from the extraction, storage, production, 49
refinement, transport, manufacture, distribution, sale and use of fossil 50
fuels, that are extracted, produced, refined or sold by an entity; 51
(10) "Covered period" means the period that began on January 1, 52
1995, and ended on December 31, 2024; 53
(11) "Crude oil" means oil or petroleum of any kind and in any form, 54
including bitumen, oil sands, heavy oil, conventional and 55
unconventional oil, shale oil, natural gas liquids, condensates and 56
related fossil fuels; 57
(12) "Entity" means any individual, trustee, agent, partnership, 58
association, corporation, company, municipality, political subdivision 59
or other legal organization that holds or held an ownership interest in a 60
fossil fuel business during the covered period; 61
(13) "Environmental justice community" has the same meaning as 62
provided in section 22a-20a of the general statutes; 63
(14) "Fossil fuel" means coal, crude oil, fuel gases or petroleum 64
products; 65
(15) "Fossil fuel business" means a business engaged in the extraction 66
of fossil fuels or the refining of petroleum products; 67
(16) "Fuel gas" means methane, natural gas, liquified natural gas or 68
manufactured fuel gases; 69
(17) "Greenhouse gas" has the same meaning as provided in section 70
22a-200 of the general statutes; 71
(18) "Nature-based solutions" means projects that utilize or mimic 72
nature or natural processes and functions and that may also offer 73
environmental, economic and social benefits while increasing resilience. 74
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"Nature-based solutions" includes both green and natural 75
infrastructure; 76
(19) "Notice of cost recovery demand" means the written 77
communication from the department informing a responsible party of 78
the amount of the cost recovery demand payable to the fund; 79
(20) "Notice of intent" means the written communication from the 80
department informing a responsible party of such party's potential 81
liability for such party's share of emissions during the covered period; 82
(21) "Petroleum product" means any product refined or re -refined 83
from synthetic or crude oil or crude oil extracted from natural gas 84
liquids or other sources; 85
(22) "Qualified expenditure" means an authorized payment from the 86
fund to pay reasonable expenses associated with the administration of 87
the program and to pay for a climate change adaptation project, 88
including such project's operation, monitoring and maintenance; 89
(23) "Public registry" means the official database maintained by the 90
department to collect and store information about responsible parties 91
solely for the purposes of the program; and 92
(24) "Responsible party" means any entity, or a successor in interest 93
to any entity, that, during any part of the covered period, was engaged 94
in the trade or business of extracting fossil fuel or refining crude oil and 95
is determined by the department to be attributable for more than one 96
billion metric tons of covered greenhouse gas emissions during the 97
covered period. "Responsible party" does not include any person who 98
lacks sufficient connection with the state to satisfy the nexus 99
requirements of the Constitution of the United States. 100
(b) There is established the climate superfund cost recovery program 101
administered by the Department of Energy and Environmental 102
Protection. The purpose of the program shall be to: (1) Secure 103
compensatory payments from responsible parties based on a standard 104
of strict liability to provide a source of revenue for climate change 105
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adaptive infrastructure projects within the state; (2) determine 106
proportional liability of responsible parties pursuant to this section; (3) 107
impose cost recovery demands on responsible parties and issue notices 108
of cost recovery demands; (4) accept and collect payment from 109
responsible parties; (5) identify climate change adaptative infrastructure 110
projects; (6) disperse funds to implement climate change adaptive 111
infrastructure projects; and (7) allocate funds in a way to achieve a goal 112
of not less than forty per cent of the qualified expenditures from the 113
program being expended on climate change adaptive infrastructure 114
projects that directly benefit environmental justice communities. 115
(c) Not later than six months after the effective date of this section, 116
the department shall determine, by order, the complete list of projects 117
that constitute climate change adaptive infrastructure projects, in 118
accordance with the provisions of this section. 119
(d) (1) Not later than six months after the effective date of this section, 120
the department shall adopt regulations, in accordance with the 121
provisions of chapter 54 of the general statutes, to establish the 122
methodology for obtaining and utilizing credible data that will aid the 123
department in making the assessments and estimates required by this 124
section; 125
(2) Not later than six months after the adoption of the regulations 126
described in subdivision (1) of this subsection, the department shall 127
issue notices of intent to responsible parties and create a registry of 128
responsible parties. Any such notice shall inform such party of their 129
status and shall include the following information: 130
(A) The definition of "responsible party", as defined in this section; 131
(B) The responsible party's total covered greenhouse gas emissions 132
for the covered period; 133
(C) The responsible party's rights to contest their status; and 134
(D) Information regarding the public registry of responsible partes; 135
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(3) Not later than six months after the issuance of such notices 136
pursuant to subdivision (2) of this subsection, the department shall issue 137
notices of cost recovery demand to responsible parties informing such 138
parties of: 139
(A) The cost recovery demand amount; 140
(B) How and where cost recovery demands can be paid; 141
(C) The potential consequences of nonpayment and late payment; 142
and 143
(D) The responsible party's right to contest such an assessment; and 144
(4) Not later than three months after the issuance of cost recovery 145
demands pursuant to subdivision (3) of this subsection, the department 146
shall accept payments from, pursue collection efforts against and 147
negotiate settlements with responsible parties. 148
(e) Not later than eighteen months after the effective date of this 149
section, the department shall submit to the joint standing committee of 150
the General Assembly having cognizance of matters relating to the 151
environment an assessment of the cost to the state and its residents of 152
covered greenhouse gas emissions during the covered period. The 153
department shall hold not less than one in-person and one virtual public 154
hearing concerning this assessment, with a minimum thirty day public 155
notice prior to such hearings. Such assessment shall include: 156
(1) A summary of the cost-driving effects of covered greenhouse gas 157
emissions in the state, including any effects on public health, natural 158
resources, biodiversity, agriculture, economic development, flood 159
preparedness and safety, housing and any other effect that the 160
department determines is relevant; 161
(2) A categorized calculation of the costs incurred and that are 162
projected to be incurred in the future within the state of each of the 163
effects identified in subdivision (1) of this subsection; and 164
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(3) A categorized calculation of the costs incurred and that are 165
projected to be incurred in the state to abate the effects of covered 166
greenhouse gas emissions from the covered period. 167
(f) Not later than two years after the effective date of this section, the 168
department, in consultation with Connecticut Equity and 169
Environmental Justice Advisory Council, shall adopt regulations, in 170
accordance with the provisions of chapter 54 of the general statutes, for 171
identifying and selecting climate change adaptive infrastructure 172
projects eligible to receive qualified expenditures and for the related 173
issuance of requests for proposals from municipalities and nonprofit 174
and community organizations and the provision of grants to private 175
individuals, or other methods as determined by the department, for 176
dispersing revenues from the fund for qualified expenditures. The 177
department shall hold not less than three public hearings in the state 178
regarding the regulations proposed pursuant to this subsection, 179
including not less than one virtual hearing, with a minimum of thirty 180
days' public notice prior to such public hearings. 181
(g) Not later than thirty months after the effective date of this section, 182
the department shall complete a state -wide climate change adaptation 183
master plan for the purpose of guiding the dispersal of funds in a timely, 184
efficient and equitable manner to all regions of the state in accordance 185
with the provisions of this section. In completing such plan, the 186
department shall: 187
(1) Identify and consult relevant state agencies and offices, including, 188
but not limited to, the Connecticut Equity and Environmental Justice 189
Advisory Council and the Departments of Administrative Services, 190
Agriculture, Economic and Community Development, Housing, Public 191
Health and Transportation; 192
(2) Assess the adaptation needs and vulnerabilities of areas vital to 193
the state's economy, normal functioning and the health and well -being 194
of state residents, including, but not limited to, agriculture, biodiversity, 195
ecosystem services, education, finance, healthcare, manufacturing, 196
housing and real estate, retail, tourism, transportation and municipal 197
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government; 198
(3) Identify major potential, proposed and ongoing climate adaptive 199
infrastructure projects throughout the state; 200
(4) Identify opportunities for alignment with existing federal, state 201
and local funding streams; 202
(5) Consult with stakeholders, including local governments, 203
businesses, environmental advocates, relevant subject area experts and 204
environmental justice communities; and 205
(6) Provide opportunities for public engagement in all regions of the 206
state consistent with the provisions of section 22a -20a of the general 207
statutes, including, but not limited to, environmental justice 208
communities and other communities that have the most significant 209
exposure to the impacts of climate change. 210
(h) The department shall conduct an independent evaluation of the 211
program to determine the effectiveness of the program in achieving its 212
purposes as described in this section. Such evaluation shall be provided 213
to the Governor, the president pro tempore of the Senate, and speaker 214
of the House of Representatives, on or before January first of the second 215
calendar year following the effective date of this section and annually, 216
on or before, January first thereafter. Any entity contracted by the 217
department to conduct such evaluation shall receive prompt payment 218
of all moneys due upon completion of the evaluation from the fund. 219
(i) Each responsible party shall be strictly liable, without regard to 220
fault, for a share of the costs of climate change adaptive infrastructure 221
projects, including such party's operation and maintenance, and all 222
qualified expenditures supported by the fund. 223
(j) For the purposes of this section, entities in a controlled group: 224
(1) Shall be treated by the department as a single entity for the 225
purpose of identifying responsible parties; and 226
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(2) Are jointly and severally liable for payment of any cost recovery 227
demand owed by an entity in the controlled group. 228
(k) With respect to each responsible party: 229
(1) The cost recovery demand shall be equal to an amount that bears 230
the same ratio to the cost to the state, as calculated by the department 231
pursuant to this section, from the emission of covered greenhouse gases 232
during the covered period as the responsible party's applicable share of 233
covered greenhouse gas emissions bears to the aggregate applicable 234
shares of covered greenhouse gas emissions resulting from the use of 235
fossil fuels extracted or refined during the covered period; 236
(2) The applicable share of covered greenhouse gas emissions taken 237
into account under this section for any responsible party shall be the 238
amount by which the covered greenhouse gas emissions attributable to 239
such responsible party exceeds one billion metric tons; and 240
(3) Whenever an entity owns a minority interest in another entity of 241
ten per cent or more, the calculation of the entity's applicable share of 242
greenhouse gas emissions taken into account under this section shall 243
include the applicable share of greenhouse gas emissions taken into 244
account under this section by the entity in which the responsible party 245
holds a minority interest, multiplied by the percentage of minority 246
interest held. 247
(l) In determining the amount of greenhouse gas emissions 248
attributable to any entity: 249
(1) An amount equivalent to nine hundred forty -two and one -half 250
metric tons of carbon dioxide equivalent shall be treated by the 251
department as released for every million pounds of coal attributable to 252
such entity; 253
(2) An amount equivalent to four hundred thirty -two thousand one 254
hundred eighty metric tons of carbon dioxide equivalent shall be treated 255
by the department as released for every million barrels of crude oil 256
attributable to such entity; 257
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(3) An amount equivalent to fifty-three thousand four hundred forty 258
metric tons of carbon dioxide equivalent shall be treated by the 259
department as released for every million cubic feet of fuel gases 260
attributable to such entity; and 261
(4) The department shall have the authority to issue information 262
requests to responsible parties for any calculation undertaken by the 263
department pursuant to this section. 264
(m) The department may adjust the cost recovery demand amount of 265
a responsible party that refines petroleum products, or a successor in 266
interest to such an entity, if such responsible party establishes to the 267
satisfaction of the department that a portion of the cost recovery 268
demand amount was attributable to the refining of crude oil extracted 269
by another responsible party. 270
(n) Not later than two years after the effective date of this section, the 271
department shall issue all cost recovery demands required by this 272
section. 273
(o) Payment of a cost recovery demand shall be made in full not later 274
than six months following the commissioner's issuance of the cost 275
recovery demand, unless a responsible party elects to pay in 276
installments in accordance with the provisions of subsection (p) of this 277
section. 278
(p) Any responsible party may elect to pay a cost recovery demand 279
amount in nine annual installments, the first of which shall be due not 280
later than six months after the commissioner's issuance of the cost 281
recovery demand and subject to conditions established by the 282
department. 283
(1) The first of any such installments shall be equal to twenty per cent 284
of the total cost recovery demand amount. Each subsequent installment 285
shall be paid one year after the initial payment and shall be equal to ten 286
per cent of the total cost recovery demand amount. 287
(2) The commissioner may charge reasonable interest on each 288
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installment payment, or a payment delayed for any other reason, and, 289
at the commissioner's discretion, may adjust the amount of a subsequent 290
installment or a payment delayed for any other reason to reflect the 291
increases or decreases in the consumer price index. 292
(q) If there is: (1) Any addition to the original amount of the cost 293
recovery demand by the department for failure to timely pay any 294
installment required under this section, (2) a liquidation or sale of 295
substantially all the assets of the responsible party, including a 296
proceeding under USC Title 11, as amended from time to time, or 297
similar, (3) a cessation of business by the responsible party, or any 298
similar circumstance, the unpaid balance of all remaining installments 299
shall be due on the date of such event, or in the case of a proceeding 300
under USC Title 11, as amended from time to time, or similar, on the 301
day before the petition is filed. The provisions of this subsection shall 302
not apply to the sale of substantially all of the assets of a responsible 303
party to a buyer if such buyer enters into an agreement with the 304
department under which such buyer remains liable for the remaining 305
installments due as if such buyer were the responsible party. 306
(r) The department shall deposit cost recovery payments collected 307
under this section in the climate superfund cost recovery program fund. 308
(s) Any responsible party aggrieved by a notice of cost recovery 309
demand issued pursuant to this section may file a request for 310
reconsideration with the commissioner not later than thirty days after 311
the date of issuance of such notice. Any request for reconsideration shall 312
state the grounds for the request and include supporting 313
documentation. The commissioner shall notify the responsible party of 314
the final decision on any such request for reconsideration by issuing a 315
subsequent notice of cost recovery demand. Following any such request 316
for reconsideration, a responsible party may appeal a final decision of 317
the commissioner to the Superior Court. 318
(t) (1) There is created the Climate Superfund Cost Recovery Program 319
Fund to be administered by the commissioner to provide funding for 320
climate change adaptive infrastructure projects in the state. The fund 321
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shall be nonlapsing and consist of: 322
(A) Cost recovery demand payments paid to the fund; 323
(B) Any funds appropriated, from time to time, to the fund by the 324
General Assembly; and 325
(C) Any and all other gifts, donations or other funds received from 326
any source, public or private, dedicated for deposit into the fund and 327
approved by the Commissioner of Administrative Services. 328
(2) The fund may be used only to pay qualified expenditures for: 329
(A) Climate change adaptive infrastructure projects authorized by 330
the department; and 331
(B) The reasonable administrative expenses of the program. 332
(u) Nothing in this section shall be construed to preclude the pursuit 333
of any civil action or other remedy by any person. The remedies 334
provided in this section are in addition to those otherwise provided by 335
existing statutory or common law. 336
(v) Notwithstanding the authorized uses of the fund described in this 337
section, the first three hundred thousand dollars deposited into the fund 338
shall be used to reimburse the General Fund for the funds appropriated 339
to the fund pursuant to section 2 of this act. 340
(w) The provisions of this section, being necessary for the general 341
health, safety and welfare of the people of this state, shall be liberally 342
construed to effect its purpose. 343
Sec. 2. ( Effective July 1, 2026 ) The sum of three hundred thousand 344
dollars is appropriated to the Department of Energy and Environmental 345
Protection from the General Fund, for the fiscal year ending June 30, 346
2027, for the purpose of funding the Climate Superfund Cost Recovery 347
Program Fund established pursuant to section 1 of this act. 348
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This act shall take effect as follows and shall amend the following
sections:

Section 1 October 1, 2026 New section
Sec. 2 July 1, 2026 New section

Statement of Legislative Commissioners:
In Section 1(a)(6), "the Commissioner of the Department of Energy and
Environmental Protection" was changed to "the Commissioner of
Energy and Environmental Protection" for consistency with standard
drafting conventions.

ENV Joint Favorable Subst. -LCO

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The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of
the General Assembly, solely for purposes of information, summarization and explanation and do not
represent the intent of the General Assembly or either chamber thereof for any purpose. In general,
fiscal impacts are based upon a variety of informational sources, including the analyst’s professional
knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final
products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note

State Impact:
Agency Affected Fund-Effect FY 27 $ FY 28 $
Department of Energy and
Environmental Protection
GF - Cost 1,708,904 508,904
State Comptroller - Fringe
Benefits1
GF - Cost 171,004 171,004
Department of Energy and
Environmental Protection
Climate
Superfund/General
Fund - See Below
See Below See Below
Note: Various=Various; GF=General Fund

Municipal Impact: None
Explanation
The bill requires the Department of Energy and Environmental
Protection (DEEP) to establish a new cost recovery program to assess
certain businesses for Connecticut’s cost from specified greenhouse gas
(GHG) emissions. The bill results in a total cost to the state of
approximately $1,879,908 in FY 27 and $679,908 in FY 28 and annually
thereafter, to establish and administer the climate superfund cost
recovery program and meet the requirements contained within the bill.
DEEP will require five new positions to support the additional
requirements contained within the bill, including: securing
compensatory payments from responsible parties, determining
proportional liability, imposing cost recovery demands and issuing

1The fringe benefit costs for most state employees are budgeted centrally in accounts
administered by the Comptroller. The estimated active employee fringe benefit cost
associated with most personnel changes is 41.82% of payroll in FY 27.
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notices, accepting and collecting payments, identifying adaptive
infrastructure projects and allocating funds to identified projects.
The five new positions and corresponding salaries include:
Job Title Salary ($)
Associate Research Analyst 90,309
Research Analyst 78,296
Staff Attorney 99,570
Paralegal 74,750
Fiscal Administrative Assistant 65,979
Total 408,904

In addition to the annual salary costs of $408,904, corresponding
fringe benefit costs of $171,004 will be incurred, totaling annual salary
and fringe benefits costs of $579,908, beginning in FY 27.
It is estimated, based on previous contracts, that DEEP will require
approximately $1.3 million in FY 27 to contract with consultants to
submit an assessment on the cost s incurred, identify and select climate
change adaptive infrastructure projects ($700,000) and complete a
statewide climate master plan ($500,000). These consulting costs will be
one-time in nature. The bill also requires DEEP to conduct an annual
independent evaluation of the program to determine its effectiveness,
which is anticipated to cost $100,000 in consulting fees, annually.
Lastly, the bill appropriates $300,000 to DEEP from the General Fund,
in FY 27, and requires this money be repaid to the General Fund from
the first $300,000 deposited in the program fund. The climate superfund
cost recovery program fund will contain cost recovery demand
payments and be used to fund qualified projects based on the fund
balance.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation , except for the consulting
costs in FY 27, which are one-time in nature.
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OLR Bill Analysis
sHB 5156

AN ACT CONCERNING A CLIMATE CHANGE SUPERFUND.

SUMMARY
This bill establishes the climate superfund cost recovery program
designed to assess certain fossil fuel businesses and crude oil refiners
(responsible parties) for Connecticut’s cost from specified greenhouse
gas (GHG) emissions over a 30 -year period and use those payments to
fund climate change -related infrastructure improvements in the state.
Under the bill, responsible parties that produced over 1 billion metric
tons of GHG emissions from January 1, 1995, through December 31, 2024
(covered period) must pay for their proportional share of Connecticut’s
costs from the total GHG emissions over this period.
The Department of Energy and Environmental Protection ( DEEP)
must administer the program and a dedicated fund the bill establishes
for the required payments. Specifically, the program must:
1. secure compensatory payments from responsible parties, which
are generally the current or former people, businesses,
municipalities, and other entities that hold or held an ownership
in a fossil fuel business during the covered period that was
responsible for more than 1 billion metric tons of covered GHG
emissions;
2. determine the se responsible parties ’ proportional liability for
these payments;
3. impose cost recovery demands on these parties and issue notices
of these demands;

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4. accept and collect payment from responsible parties and deposit
the payments into the fund;
5. identify climate change adaptive infrastructure projects and
disperse funds to implement them; and
6. allocate funds to achieve the goal of spending at least 40% of the
qualified expenditures on climate change adaptive infrastructure
projects that directly benefit environmental justice communities
(see BACKGROUND — Environmental Justice Communities).
The bill requires DEEP to conduct an annual independent evaluation
of the program to determine its effectiveness and submit it to the
governor, Senate president pro tempore, and House speaker starting by
January 1, 2028. DEEP must promptly pay, from the program fund, any
entity contracted to conduct this evaluation when the evaluation is
completed.
The bill also appropriates $300,000 to DEEP from the General Fund
for FY 27 to fund the program fund, and requires this money to be
repaid to the General Fund from the first $300,000 deposited in the
program fund.
The bill also requires DEEP to (1) submit an assessment on the cost to
Connecticut and its residents of covered GHG emissions during the
covered period, (2) adopt regulations for identifying and selecting
climate change adaptive infrastructure projects to be funded under the
program, and (3) complete a statewide climate change adaptation plan.
Lastly, the bill specifies that its remedies are in addition to those
otherwise provided by law and its provisions should not be construed
as precluding any civil action or other remedy. It requires that its
provisions be liberally construed to achieve its purposes.
EFFECTIVE DATE: October 1, 2026, except the appropriation is
effective July 1, 2026.

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RESPONSIBLE PARTIES AND COST RECOVERY
Definition of Responsible Party and Covered GHG Emissions
Under the bill, a “responsible party” is (1) any entity, or successor to
that entity, that was engaged in the business of extracting “fossil fuels”
or refining “crude oil” during any part of the covered period and (2)
found responsible by DEEP for more than 1 billion metric tons of
“covered GHG emissions ” during the covered period. But it excludes
any person who lacks sufficient connection with the state under the U.S.
Constitution. An “entity” refers to any person, trustee, business,
municipality, political subdivision, or other legal organization that
holds or held an ownership interest during the covered period in a fossil
fuel business (a business engaged in the extraction of foss il fuels or
refining of petroleum products).
Under the bill, “covered GHG emissions” are the amount of GHG
released into the atmosphere during the covered period for any entity.
This amount is expressed in metric tons of carbon dioxide equivalent
(see Attributable Covered GHG Emissions) and includes releases of GHG
from fossil fuels extracted, produced, refined, or sold by an entity
through various means (for example, extracting, storing,
manufacturing, or distributing). “Greenhouse gases” are any chemical
or physical substance emitted into the air an d that DEEP may
reasonably anticipate will cause or contribute to climate change,
including (1) carbon dioxide, (2) methane, (3) nitrous oxide, (4)
hydrofluorocarbons, (5) perfluorocarbons, and (6) sulfur hexafluoride.
Under the bill, “fossil fuels” are coal, crude oil, methane, natural gas,
liquified natural gas, manufactured fuel gases, or petroleum products .
“Crude oil” is any oil or petroleum, including bitumen, oil sands, heavy
oil, conventional and unconventional oil, natural gas liquids,
condensates, and related fossil fuels.
Notices of Intent and Public Registry
Under the bill, by April 1, 2027, DEEP must adopt regulations to
establish a methodology for obtaining and using credible data to help it
make the bill’s required assessments and estimates. Within six months
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of adopting those regulations, DEEP must issue written notices to
responsible parties that inform them of their potential liability for their
share of emissions during the covered period (notices of intent).
DEEP must also create a responsible party registry within six months
of adopting these regulations. The registry is an official database
maintained by DEEP to collect and store information about responsible
parties only for the program’s purposes.
The notices must inform the responsible party of its status as a
responsible party and contain (1) the bill’s definition of responsible
party, as described above; (2) the responsible party’s total covered GHG
emissions for the covered period; (3) the respo nsible party’s rights to
contest its status; and (4) information on the responsible party registry.
Cost Recovery Demands and Payment
Notice of Cost Recovery Demand. Within six months of issuing the
notices of intent, DEEP must issue notices of “cost recovery demands”
to responsible parties, which are assessments on a responsible party for
cost recovery payments to the fund. These notices must include (1) the
cost rec overy demand amount, (2) how and where the cost recovery
demands may be paid, (3) the potential consequences of late or missed
payments, and (4) the party’s right to contest the assessment. DEEP
must issue all cost recovery demands by October 1, 2028.
Within three months after issuing cost recovery demands, DEEP
must accept payments from, pursue collections efforts against, and
negotiate settlements with, responsible parties. DEEP must deposit all
payments received into the program fund. Responsible parties must pay
the demands within six months of the cost recovery demand’s issuance
or in nine annual installments, as described below.
Installment Payments. Responsible parties paying in installments
must pay the first one within six months after the cost recovery
demand’s issuance, subject to DEEP’s conditions. The first installment
is 20% of the total demand, and each subsequent payment is 10% and
due one y ear after the initial payment date. DEEP may (1) charge
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reasonable interest on each installment payment, or any delayed
payment, and (2) at the commissioner’s discretion, adjust the amount of
subsequent installments or delayed payments to reflect changes in the
consumer price index.
Under the bill, unpaid installments are due sooner under specified
circumstances. Specifically, if (1) there are any additions to the amount
to be paid because of late payment; (2) substantially all of the
responsible party’s assets are liquidated or sold (including bankruptcy);
or (3) the responsible party ceases its business , or if a similar
circumstance occurs, the unpaid balance is due either the day of the
event, or a day before a bankruptcy petition is filed , where applicable.
This does not apply if a responsible party sells substantially all of its
assets and the buyer enters into an agreement with DEEP to assume the
liability for paying the remaining installments.
Aggrieved Responsible Parties. Responsible parties aggrieved by
a cost recovery demand notice may request the DEEP commissioner to
reconsider the demand within 30 days after its issuance. The request
must state the grounds and supporting information for the request.
DEEP must notify the party of its final decision by issuing a subsequent
notice of a cost recovery demand, and the responsible party may appeal
the final decision to Superior Court.
Cost Recovery Demand Calculations
Under the bill, each responsible party’s cost recovery demand is
based on its proportional share of covered GHG emissions during the
covered period, but only for attributable emissions (as described below)
that exceed 1 billion metric tons.
Specifically, DEEP must calculate the state’s cost from covered GHG
emissions during the covered period. A responsible party’s cost
recovery demand is its share of this cost, based on its applicable share
of the covered emissions from the use of fossil fuels extracted or refined
during the covered period. So, for example, if a responsible party’s
applicable share of covered GHG emissions was 1%, its cost recovery
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demand equals 1% of the total cost to the state of GHG emissions during
the covered period.
Entities that own a minority interest in another entity of 10% or more
are responsible for that same percentage of the entity’s emissions.
Attributable Covered GHG Emissions
Under the bill, DEEP must use the following benchmarks in
determining the amount of GHGs attributable to an entity:
1. 942.5 metric tons of carbon dioxide equivalent released for every
1 million pounds of coal (bituminous coal, anthracite coal, and
lignite) attributable to the entity;
2. 432,180 metric tons of carbon dioxide equivalent released for
every 1 million barrels of crude oil attributable to the entity; and
3. 53,440 metric tons of carbon dioxide equivalent released for every
million cubic feet of fuel gases (methane, natural gas, liquified
natural gas, or manufactured fuel gases) attributable to the entity.
The bill authorizes DEEP to issue information requests to responsible
parties for any calculations required under the bill. It also authorizes
DEEP to adjust cost recovery demands if the responsible party that
refines petroleum products, or is a successor to that party, establishes to
DEEP’s satisfaction that a portion of the cost recovery demand is
attributable to the refining of crude oil extracted by another responsible
party.
Controlled Groups
DEEP must treat entities in a controlled group as a single entity and
these entities are jointly and severally liable for payment of any cost
recovery demand owned by any entity in the controlled group. A
“controlled group” is two or more entities that are treated as a single
employer under specified federal tax laws and are treated as a single
entity in meeting the definition of “responsible party.” Controlled
groups are jointly and severally liable for cost recovery demand
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payments owed by any entity in the controlled group.
Strict Liability
Under the bill, responsible parties are strictly liable for a share of the
costs of the climate change adaptive infrastructure projects and
qualified fund expenditures. (Generally, strict liability means liability
regardless of fault.)
DEEP ASSESSMENT OF CONNECTICUT’S COSTS FROM
COVERED GHG EMISSIONS
By April 1, 2028, DEEP must submit an assessment to the
Environment Committee on the cost to the state and its residents of
covered GHG emissions during the covered period. DEEP must hold at
least one in -person and one virtual public hearing on the assessm ent
and give 30 days’ public notice of these meetings. The assessment must
include a:
1. summary of the cost -driving effects of covered GHG emissions
in the state, including any effects on public health, natural
resources, biodiversity, agriculture, economic development,
flood preparedness and safety, housing, and any other relevant
effect; and
2. categorized calculation of costs incurred and projected to be
incurred in Connecticut (a) for each of these effects and (b) to
abate them.
CLIMATE CHANGE ADAPTIVE INFRASTRUCTURE PROJECTS
Project List
By April 1, 2027, DEEP must determine, by order, a complete list of
climate change adaptive infrastructure projects. These projects must be
designed to avoid, moderate, repair, or adapt to negative impacts
caused by climate change and help communities, hou seholds, and
businesses prepare for future climate change driven disruptions. They
must include:
1. restoring coastal wetlands and developing other nature -based
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solutions (projects that use or mimic nature or natural processes
and functions that may also offer environmental, economic, and
social benefits while increasing resilience, including green and
natural infrastructure) and coastal protections;
2. upgrading stormwater drainage systems;
3. making defensive upgrades to roads, bridges, railroads, and
transit systems;
4. preparing for and recovering from extreme weather events;
5. undertaking preventive health care programs and providing
medical care to treat illness or injury caused by climate change’s
effects;
6. relocating, elevating, or retrofitting sewage treatment plants and
other infrastructure vulnerable to flooding;
7. installing energy -efficient cooling systems and other
weatherization and energy -efficiency upgrades and retrofits in
public and private buildings, including schools and public
housing;
8. upgrading parts of the electrical grid to increase reliability and
resilience, including supporting the creation of self -sufficient
microgrids;
9. addressing urban heat island effects through green spaces; and
10. urban forestry and other interventions and responding to toxic
algae blooms, loss of agricultural topsoil, crop loss and other
climate-driven ecosystem threats to forests, farms, fisheries, and
food systems.
Regulations
By October 1, 2028, DEEP, in consultation with the Connecticut
Equity and Environmental Justice Advisory Council (see
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BACKGROUND — Connecticut Equity and Environmental Justice Advisory
Council), must adopt regulations to:
1. identify and select climate change adaptive infrastructure
projects eligible to receive qualified expenditures and issue
related requests for proposals from municipalities and nonprofit
and community organizations, and
2. disperse revenue from the fund for qualified expenditures by
providing grants to private individuals or other methods
determined by DEEP.
DEEP must hold at least three public hearings on these regulations,
including at least one virtual hearing, with 30 days’ notice before each
public hearing.
Under the bill, “qualified expenditures” are authorized payments
from the fund to pay for a climate change adaptation project, including
the project’s operation, monitoring, and maintenance costs , as well as
the program’s reasonable administrative costs.
STATEWIDE CLIMATE CHANGE ADAPTATION MASTER PLAN
By April 1, 2029, DEEP must complete a statewide climate change
adaptation plan designed to guide the dispersal of funds in a timely,
efficient, and equitable way to the entire state. In completing the plan,
DEEP must:
1. identify and consult relevant state agencies and offices, including
the Connecticut Equity and Environmental Justice Advisory
Council and the Departments of Administrative Services,
Agriculture, Economic and Community Development, Housing,
Public Health, and Transportation;
2. assess the adaptation needs and vulnerabilities of areas vital to the
state’s economy; state residents’ normal functioning, health and
well-being (including agriculture, biodiversity, ecosystem
services, education, finance, healthcare, manufacturing, housi ng
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and real estate); and retail, tourism, transportation and municipal
government;
3. identify major potential, proposed, and ongoing climate change
adaptive infrastructure projects in the state;
4. identify ways to align with existing federal, state, and local
funding streams;
5. consult with stakeholders, such as local governments, businesses,
environmental advocates, relevant subject area experts and
environmental justice communities; and
6. provide opportunities for statewide public engagement,
including environmental justice communities and other
communities that have the most significant exposure to the
impacts of climate change.
CLIMATE SUPERFUND COST RECOVERY PROGRAM FUND
The bill creates a nonlapsing climate superfund cost recovery
program fund to provide funding for climate change adaptive
infrastructure projects in Connecticut. The fund must contain (1) cost
recovery demand payments; (2) any funds appropriated to it; and (3) all
other gifts, donations, and other funds received by any public or private
source and approved by the Department of Administrative Services
commissioner.
Qualified expenditures from the fund must be used for (1) climate
change adaptive infrastructure projects authorized by DEEP or (2) the
climate superfund program’s reasonable administrative expenses.
BACKGROUND
Environmental Justice Communities
By law, an environmental justice community (EJC) is a (1) U.S. census
block group in which at least 30% of the population consists of
noninstitutionalized, low -income people with income below 200% of
the federal poverty level or (2) distressed municipality (CGS § 22a-20a).
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Connecticut Equity and Environmental Justice Advisory Council
The Connecticut Equity and Environmental Justice Advisory Council
is an advisory council to DEEP that advises on the issues of current and
historic environmental injustice and inequities in Connecticut. It was
created by Executive Order 21-3, and its purposes include:
1. integrating environmental justice considerations into DEEP’s
programs, policies, and activities to improve the health and
environment of EJCs, including in rulemaking, permitting
standards and processes, compliance and enforcement, science
and data, and equitable program delivery;
2. providing mechanisms for EJCs to have a meaningful
opportunity to participate in decisions to place or expand certain
facilities in the EJC;
3. developing a model plan for community engagement and
stakeholder outreach; and
4. strengthening DEEP’s partnerships with other governmental
agencies, other states, tribal, local governments, and community
leaders and organizations on environmental justice issues.
COMMITTEE ACTION
Environment Committee
Joint Favorable
Yea 23 Nay 10 (03/04/2026)