Environment Committee
JOINT FAVORABLE REPORT
Bill No.: HB-6441
Title: AN ACT CONCERNING CLIMATE CHANGE ADAPTATION.
Vote Date: 3/29/2021
Vote Action: Joint Favorable Substitute
PH Date: 3/8/2021
File No.:
Disclaimer: The following JOINT FAVORABLE Report is prepared for the benefit of the
members of the General Assembly, solely for purposes of information, summarization and
explanation and does not represent the intent of the General Assembly or either chamber
thereof for any purpose.
SPONSORS OF BILL:
Rep. David Michel, 146th Dist.
Rep. Greg S. Howard, 43rd Dist.
Rep. Jennifer Leeper, 132nd Dist.
Rep. Mary M. Mushinsky, 85th Dist.
Rep. Bobby G. Gibson, 15th Dist.
REASONS FOR BILL:
Connecticut will experience the effects of climate change between now and 2050. To
address the challenges of rising seas, frequent flooding and drought, Connecticut needs to
fund and finance climate adaptation and resilience at the state and local level. With legislation
Connecticut is well positioned to take advantage of federal grants for resilience projects.
Substitute Language LCO No. 6092
Sections 1 to 3 were replaced with the language of HB 6497 concerning stormwater
authorities and in section 4, subdivision (2) of subsection (b) was rewritten to restrict the use
of such conveyance fee revenues by certain municipalities that do not meet affordable
housing requirements or that are not distressed municipalities.
RESPONSE FROM ADMINISTRATION/AGENCY:
Katie Dykes, Commissioner, Department of Energy and Environmental Protection
The Governor developed four cornerstone principals recommended by the Governor's
Council on Climate Change (GC3) with the input of more than 230 stakeholders.
1. Authorizing the creation of municipal stormwater authorities statewide.
HB6441 expands the stormwater authority from New London to all municipalities
statewide. The stormwater authority is charged with establishing a fee considering the
amount of impervious surface area on the property, as this generates the stormwater
runoff.
2. Enabling municipalities to have the option to adopt a buyers conveyance fee.
Municipalities given the opportunity could use the conveyance fund to invest in specific
climate resiliency projects. The conveyance fee is structured between 0.5% to 1.5%.
3. Adding flood prevention and climate resilience to the purview of municipal flood and
erosion control boards and clarifying they can use funds to cover operations and
maintenance costs.
Allows boards to undertake greater latitude of projects to utilize nonstructural and
nature to include removal, relocation, or modification of structures for restoration and
maintenance of open flood plain or other water storage areas.
4. Expanding the Green Bank to include an Environmental Infrastructure Fund to finance
adaptation and resilience projects
The Green Bank can utilize bonding authority, seek federal funding and raise capital to
make investments in environmental infrastructure, facilities, systems, parks and
recreation and other similar projects.
Peter Hearn, Executive Director, Council on Environmental Quality
The Council on Environmental Quality (Council) supports the creation of municipal
stormwater boards to enhance the awareness of stormwater management, reducing runoff
and minimizing pollution. The Council supports the state acquisition of open space and new
financing of projects with the expansion of the Green Bank.
Bryan Hurlburt, Commissioner, Department of Agriculture
The Department of Agriculture (DOAG) supports HB6441. Legislation authorizes a real
estate conveyance fee. The dedicated fee is used to fund municipal conservation, climate
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resilience and other environmental projects. HB6441 defines "Environmental infrastructure"
to include facilities, systems and services related to agriculture. The change increases
funding access to farmers.
Kevin Dillon, Executive Director, Connecticut Airport Authority
The Connecticut Airport Authority (CAA) has tried to be a good environmental neighbor at the
six airports it runs. The majority of stormwater runoff at the airports is retained and filtered
prior to release. Resources are already strained at the airports due to the pandemic, HB6441
Sections 1 to 3 put an undue burden and significant cost to the airports. Municipal
stormwater authorities charge fees based upon the area, Connecticut's airports are
disproportionately affected. Federal law prohibits revenue diversion from US airports except
for limited services rendered. The CAA believes payment for municipal stormwater system
constitutes an unlawful revenue diversion. The CAA asks the Environment Committee to
exempt CAA airports with JFS language.
Connecticut Green Bank
HB6441 Sections 19 to 23 address Connecticut's Green Bank in climate resilience.
Extension of the Green Bank's business practices provide greater flexibility to private
investment in the green economy. The bill's changes require no support from taxpayers or a
request in state funding. The Green Bank can raise capital through the issuance of bonds
and seek federal funding. The Green Bank can use this capital to identify environmental
infrastructure.
NATURE AND SOURCES OF SUPPORT:
David Bingham, Co-Chair, CT League of Conservation Voters
HB6441 Section 3 starts immediate action to provide local level statewide help for disaffected
communities. Section 3 enhances the effectiveness of climate resilience of climate change
and provides local employment opportunities.
Alicea Charamut, Executive Director, Rivers Alliance of Connecticut
SB6441 provides a "toolbox of options" to directly or indirectly fund several recommendations
made by the Working and Natural Lands Report. Legislation addresses stormwater
management to establish infrastructure and nature-based solutions. Municipalities can
choose to establish a conveyance fee to fund local resilience programs. HB6441 provides
flexibility to establish regional flood an erosion control boards, climate change doesn't know
borders. The establishment of an environmental infrastructure fund to provide clean and
plentiful water is an investment in nature-based solutions.
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Danielle Chesebrough, First Selectman, Town of Stonington
HB6441 offers municipalities the tools to address climate resilience. The bill provides an
array of options to directly address climate related projects. The addition of the Connecticut's
Green Bank for clean energy investments, land conservation and agriculture, can attract
private and federal investments to the state. Under legislation, municipalities can create
stormwater authorities to address stormwater pollution and address MS4 requirements.
Lori Vitigliano, Government and Public Relations Specialist, Regional Water Authority
Connecticut's water authorities are responsible for infrastructure for the delivery of reliable,
safe drinking water. The Regional Water Authority (RWA) has approximately 1700 miles of
pipe and annually invests millions of dollars for infrastructure improvements. Enabling water
utilities to access funds improves RWA's ability to improve water quality, distribution and
service. Improvements state wide preserve the environment, support manufacturing and
create jobs.
David Mann, Deputy Mayor, Town of Bloomfield
Municipalities are short of funding for climate resilience and environmental maintenance is
hard to compete with other local priorities. Mr. Mann supports the actions of a limited
conveyance fee option, to set aside funds for a variety of environmental maintenance
projects.
The Environment Committee received more than 150 testimonials in support of HB6441.
NATURE AND SOURCES OF OPPOSITION:
Connecticut Realtors Association / CT Realtors (over 2300 signed the letter)
HB6441 Section 3 is a new real estate tax (conveyance fee) on Connecticut's real estate
buyers. The tax ranges from .5% for homes that exceed $150,000 and goes to 1.5% based
on the sales price. The new tax raises several issues:
1. Connecticut has an affordable housing problem. A new tax will put homes for first-time
home buyers out of the market.
2. Purchasers that cannot afford the new tax would add the tax to their mortgage and
they may not be able to.
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3. Real estate owners pay high costs for a home, inclusive of high property taxes.
Shoreline home owners pay high flood insurance costs. Do not add to home purchase
fees.
4. Connecticut has insufficient home inventory, inclusive of sellers who move within their
own community. People are less likely to move due to this new tax.
Real estate is important to Connecticut's economy. Municipalities already have the means t
fund climate initiatives and open space. The tax burden unfairly targets the home buyer
where municipalities choose to implement.
Jim Perras, CEO, Home Builders and Remodelers Association of Connecticut
The Home Builders and Remodelers Association of Connecticut (HBRA-CT) opposes
HB6441 Section 3. The HBRA-CT opposes a new tax and process for municipal open space
acquisition. Current processes already exist for the purchase of open space by
municipalities. HB6441 circumvents the town meeting for community to speak about
concerns to acquisition of open space purchases by the municipality. New buyers should not
have to pay the cost for open space acquisitions for the benefit of the municipality. The tax
would start with tax on the land purchased, cost passed on to the buyer and the buyer pays
an additional tax for the purchase of the home. The subsequent tax structure burdens the
residential construction industry leads to increased prices across the board and creates more
housing affordability issues. Housing affordability in Connecticut already affects the poor and
disenfranchised, this causes an increase in the existing affordability crisis. Connecticut
needs to address the issue of new fees that could put the state at economic disadvantage
with other states.
Connecticut Hospital Association
The Connecticut Hospital Association opposes HB6441 Sections 1 and 2. Hospitals that are
currently exempt under from taxation would need to pay the fees under these sections.
Payment of fees is contrary to the settlement agreement approved by the General Assembly
on December 19, 2019. Under the Agreement, Connecticut agreed not to impose any new
taxes or repeal or modify any tax exemptions per effective date of the agreement.
Reported by: Steve Smith Date: 4/6/2021
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Statutes affected:
Governor's Bill: 25-84, 25-85, 25-86, 25-87, 25-92, 25-94, 25-95, 25-97, 25-98, 7-326, 25-76
ENV Joint Favorable Substitute: 25-84, 25-85, 25-86, 25-87, 25-92, 25-94, 25-95, 25-97, 25-98, 7-326, 25-76
File No. 470: 25-84, 25-85, 25-86, 25-87, 25-92, 25-94, 25-95, 25-97, 25-98, 7-326, 25-76
File No. 750: 25-84, 25-85, 25-86, 25-87, 25-92, 25-94, 25-95, 25-97, 25-98, 7-326, 25-76
Public Act No. 21-115: 25-84, 25-85, 25-86, 25-87, 25-92, 25-94, 25-95, 25-97, 25-98, 7-326, 25-76