AN ACT REQUIRING MUNICIPALITIES TO REPORT EXCESS WASTEWATER CAPACITY.

House of Representatives
HB5503 / File No. 256 1

General Assembly File No. 256
February Session, 2026 House Bill No. 5503

House of Representatives, March 30, 2026

The Committee on Planning and Development reported
through REP. KAVROS DEGRAW of the 17th Dist.,
Chairperson of the Committee on the part of the House, that the
bill ought to pass.

AN ACT REQUIRING MUNICIPALITIES TO REPORT EXCESS
WASTEWATER CAPACITY.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Section 7-246 of the general statutes is amended by adding 1
subsection (d) as follows (Effective October 1, 2026): 2
(NEW) (d) Not later than January 1, 2027, and annually thereafter, the 3
water pollution control authority for a municipality or, for a 4
municipality that has not established a water pollution control 5
authority, the board of selectmen, shall submit a report to the Secretary 6
of the Office of Policy and Management, in a form and manner 7
prescribed by the secretary, detailing the current wastewater capacity in 8
such municipality at the time such report is filed, and any expected 9
projected excess in such wastewater capacity for the year following such 10
report. If a water pollution control authority or a board of selectmen, as 11
applicable, fails to submit an annual report as required by this section, 12
the secretary may withhold any state funding allocated to such 13
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authority or municipality for wastewater infrastructure improvements 14
until such authority or board submits such report. 15
This act shall take effect as follows and shall amend the following
sections:

Section 1 October 1, 2026 7-246(d)

PD Joint Favorable

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HB5503 / File No. 256 3

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

OFA Fiscal Note

State Impact: None
Municipal Impact:
Municipalities Effect FY 27 $ FY 28 $
All Municipalities Potential
Cost
See Below See Below
All Municipalities Potential
Revenue
Loss
See Below See Below

Explanation
The bill requires all municipalities and water pollution control
authorities to annually report certain information on wastewater
capacity to the Office of Policy and Management (OPM) each year with
the first report being due by January 1, 2027. This resul ts in a potential
cost to municipalities beginning in FY 27 that is dependent on the
resources necessary to compile this information and submit the report
in the way OPM sets. This information is currently reported to the
Department of Energy and Environme ntal Protection (DEEP) on a
monthly basis. Any cost to municipalities is dependent on if OPM
requires the information to be submitted in a different format.
The bill also allows OPM to withhold any state funding allocated for
wastewater infrastructure improvements if and until such report is
submitted.1 To the extent allocation of future state funds is limited

1 The state's primary wastewater infrastructure funding comes through the Clean
Water Fund grants (which are funded through General Obligation bonds) and loans
(funded through Clean Water Fund revenue bonds), though other programs may be
used or awarded for wastewater infrastructure improvements. Most related programs
are bond -funded; the bill does not change overall General Obligation bond
authorization levels.
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because of failure to submit the report, this results in a potential revenue
loss to municipalities and water pollution control authorities beginning
in FY 27 that would have otherwise received funding if such funds are
ultimately withheld. This impact would be limited to a delay in funding,
rather than a loss, if reports are later submitted.
No state impact is expected as any funds withheld are likely to be
awarded to other eligible projects.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.

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OLR Bill Analysis
HB 5503

AN ACT REQUIRING MUNICIPALITIES TO REPORT EXCESS
WASTEWATER CAPACITY.

SUMMARY
This bill requires each municipality’s water pollution control
authority (WPCA) or, if it does not have one, its board of selectmen to
annually report to the Office of Policy and Management (OPM) on: (1)
the municipality’s current, at the time of the report, wastewater capacity
and (2) any excess capacity it expects to have the following year. The
first report is due by January 1, 2027, and reports must be submitted in
a way OPM sets.
Under the bill, if a WPCA or municipality does not report this
information, OPM may withhold any state funding for wastewater
infrastructure that was allocated to it until it complies.
EFFECTIVE DATE: October 1, 2026
COMMITTEE ACTION
Planning and Development Committee
Joint Favorable
Yea 14 Nay 7 (03/13/2026)