JOURNAL OF THE SENATE

Wednesday, May 7, 2008

The Senate was called to order at 1: 04 p. m. , the President in the Chair.

The prayer was offered by the Deputy Chaplain, Reverend Dr. Barbara Headley of Hartford, Connecticut.

The following is the prayer:

Gracious God, as our Senate body gathers today, we ask Your presence in their midst. We ask not only Your presence but Your guidance and direction for all that must be done to complete the work of this session. Grant this body continued perseverance and diligence. We acknowledge that there are issues that are complex and pressing and that require Your compassion, mercy and justice. Grant this body the ability to do that which is in the interest of others and in the common good of all the people of our state. May an atmosphere of collaboration and cooperation prevail as they work through the concerns impacting the lives of the people of our state. Eternal God, we also ask Your blessing upon each of our senators, their families and all the support staff and their families. We remember and ask Your blessing upon our Governor, our President and all leaders of our nation. May Your will be manifested in the work that is done here today. In Your Holy name we offer this prayer. Amen

NATIONAL ANTHEM

National Anthem, performed by Maureen Urso of Wethersfield, Connecticut.

PLEDGE

Senator Freedman of the 26th led the Senate in the pledge of Allegiance.

SENATOR GAFFEY OF THE 13TH IN THE CHAIR

ORDER OF THE DAY

BUSINESS ON THE CALENDAR

FAVORABLE REPORT OF THE JOINT STANDING COMMITTEE

BILL PASSED

The following favorable report was taken from the table, read the third time, the report of the Committee accepted and the bill passed.

FINANCE, REVENUE AND BONDING. Substitute for H. B. No. 5577 (RAISED) (File No. 114) AN ACT CONCERNING RESPONSIBLE LENDING AND ECONOMIC SECURITY. (As amended by House Amendment Schedule "A"(LCO 5938)).

Senator Duff of the 25th explained the bill as amended and moved passage.

Remarking were Senators Coleman of the 2nd, Handley of the 4th, Nickerson of the 36th, Kane of the 32nd. Stillman of the 20th, Prague of the 19th, Kissel of the 7th, Harp of the 10th, Debicella of the 21st, Cappiello of the 24th, Russo of the 22nd, Fasano of the 34th and McKinney of the 28th.

The chair ordered the vote be taken by roll call.

On the roll call vote House Bill No. 5577 as amended by House Amendment Schedule “A” (LCO 5938) was passed. In concurrence with the House.

BUSINESS ON THE CALENDAR

MATTERS RETURNED FROM COMMITTEE

FAVORABLE REPORTS OF THE JOINT STANDING COMMITTEES

BILLS PASSED

The following favorable reports were taken from the table, read the third time, the reports of the Committees accepted and the bills passed.

PLANNING AND DEVELOPMENT. S. B. No. 590 (RAISED) (File No. 278) AN ACT CONCERNING RENEWABLE ENERGY.

Senator Fonfara of the 1st explained the bill, offered Senate Amendment Schedule “A” (LCO 6394) and moved adoption.

Remarking were Senators Herlihy of the 8th, LeBeau of the 3rd and McKinney of the 28th.

On a voice vote the amendment was adopted.

The following is the Amendment.

Strike everything after the enacting clause and substitute the following in lieu thereof:

"Section 1. Section 16a-40b of the 2008 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) The commissioner, acting on behalf of the state, may, with respect to loans for which funds have been authorized by the State Bond Commission prior to July 1, 1992, in [his] the commissioner's discretion make low-cost loans or deferred loans to residents of this state for the purchase and installation in residential structures of insulation, alternative energy devices, energy conservation materials and replacement furnaces and boilers, approved in accordance with regulations to be adopted by the Secretary of the Office of Policy and Management. In the purchase and installation of insulation in new residential structures, only that insulation which exceeds the requirements of the State Building Code shall be eligible for such loans or deferred loans. The commissioner may also make low-cost loans or deferred loans to persons in the state residing in dwellings constructed not later than December 31, 1979, and for which the primary source of heating since such date has been electric resistance, for (1) the purchase and installation of a high-efficiency secondary heating system using a source of heat other than electric resistance, (2) the conversion of a primary electric heating system to a high-efficiency system using a source of heat other than electric resistance, or (3) the purchase and installation of a high-efficiency combination heating and cooling system. As used in this subsection, "high-efficiency" means having a seasonal energy efficiency ratio of 11. 0 or higher, or a heating season performance factor of 7. 2 or higher, as designated by the American Refrigeration Institute in the Directory of Certified Unitary Air Conditioners, Air Source Heat Pumps and Outdoor Unitary Equipment, as from time to time amended, or an equivalent ratio for a fossil fuel system.

(b) Any such loan or deferred loan shall be available only for a residential structure containing not more than four dwelling units, shall be not less than four hundred dollars and not more than twenty-five thousand dollars per structure and, with respect to any application received on or after November 29, 1979, shall be made only to an applicant who submits evidence, satisfactory to the commissioner, that the adjusted gross income of the household member or members who contribute to the support of his household was not in excess of [one] two hundred [fifty] per cent of the median area income by household size. In the case of a deferred loan, the contract shall require that payments on interest are due immediately but that payments on principal may be made at a later time. Repayment of all loans made under this subsection shall be subject to a rate of interest to be determined in accordance with subsection (t) of section 3-20 and such terms and conditions as the commissioner may establish. The State Bond Commission shall establish a range of rates of interest payable on all loans under this subsection and shall apply the range to applicants in accordance with a formula which reflects their income. Such range shall be not less than zero per cent for any applicant in the lowest income class and not more than one per cent above the rate of interest borne by the general obligation bonds of the state last issued prior to the most recent date such range was established for any applicant for whom the adjusted gross income of the household member or members who contribute to the support of his household does not exceed [one] two hundred [fifty] per cent of the median area income by household size.

(c) The commissioner shall establish a program under which [he] the commissioner shall make funds deposited in the Energy Conservation Loan Fund available for low-cost loans or deferred loans under [subsection] subsections (a) and (f) of this section for residential structures containing more than four dwelling units, or for contracts guaranteeing payment of loans or deferred loans provided by private institutions for such structures for the purposes specified under subsection (a) of this section. Any such loan or deferred loan shall be an amount equaling not more than two thousand dollars multiplied by the number of dwelling units in such structure, provided no such loan or deferred loan shall exceed sixty thousand dollars. If the applicant seeks a loan or deferred loan for a structure containing more than thirty dwelling units, [he] such applicant shall include in [his] the application a commitment to make comparable energy improvements of benefit to all dwelling units in the structure in addition to the thirty units which are eligible for the loan or deferred loan. Applications for contracts of guarantee shall be limited to structures containing not more than thirty dwelling units and the amount of the guarantee shall be not more than three thousand dollars for each dwelling unit benefiting from the loan or deferred loan. There shall not be an income eligibility limitation for applicants for such loans, deferred loans or guarantees, but the commissioner shall give preference to applications for loans, deferred loans or guarantees for such structures which are occupied by persons of low or moderate income. Repayment of such loans or deferred loans shall be subject to such rates of interest, terms and conditions as the commissioner shall establish. The state shall have a lien on each property for which a loan, deferred loan or guarantee has been made under this section to ensure compliance with such terms and conditions.

(d) With respect to [such] any loans made under this section on or after July 1, 1981, all repayments of principal shall be paid to the State Treasurer for deposit in the Housing Repayment and Revolving Loan Fund. The interest applicable to any such loans made shall be paid to the State Treasurer for deposit in the General Fund. After the close of each fiscal year, commencing with the close of the fiscal year ending June 30, 1992, and prior to the date of the calculation required under subsection [(f)] (g) of this section, the Commissioner of Economic and Community Development shall cause any balance of loan repayments under this section remaining in said fund to be transferred to the Energy Conservation Loan Fund created pursuant to section 16a-40a, as amended by this act.

(e) The commissioner shall adopt regulations in accordance with chapter 54, with respect to any loan made pursuant to subsections (a) to (c), inclusive, of this section, (1) concerning qualifications for such loans or deferred loans, requirements and limitations as to adjustments of terms and conditions of repayment and any additional requirements deemed necessary to carry out the provisions of this section and to assure that those tax-exempt bonds and notes used to fund such loans or deferred loans qualify for exemption from federal income taxation, (2) providing for the maximum feasible availability of such loans or deferred loans for dwelling units owned or occupied by persons of low and moderate income, (3) establishing procedures to inform such persons of the availability of such loans or deferred loans and to encourage and assist them to apply for such loans or deferred loans, and (4) providing that (A) the interest payments received from the recipients of loans or deferred loans made on and after July 1, 1982, less the expenses incurred by the commissioner in the implementation of the program of loans, deferred loans and loan guarantees under this section, and (B) the payments received from electric and gas companies under subsection [(f)] (g) of this section shall be applied to reimburse the General Fund for interest on the outstanding bonds and notes used to fund such loans or deferred loans made on or after July 1, 1982.

(f) (1) As used in this subsection, "energy-efficient improvements" means measures expected to lower homeowner energy consumption including high-efficiency furnaces and boilers. The commissioner shall, in consultation with the Energy Conservation Management Board, established pursuant to section 16-245m of the 2008 supplement to the general statutes, establish a program under which it makes funds available from the Energy Conservation Loan Fund to make low-interest loans to residents of this state, regardless of household income, for the purchase and installation in residential structures of energy-efficient improvements. The commissioner shall make such loans from funds allocated to the program.

(2) The commissioner may establish priorities for the low-interest loans provided pursuant to subdivision (1) of this subsection, including, but not limited to, types of improvements financed and the ability of owners to repay such loans. The term of such loans shall be up to ten years. Repayment of all loans made under this subsection shall be subject to a rate of interest to be determined in accordance with subsection (t) of section 3-20 and such terms and conditions as the commissioner may establish. The State Bond Commission shall establish a range of rates of interest payable on all loans under this subsection and shall apply the range to applicants in accordance with a formula which reflects their income.

[(f)] (g) Not later than August first, annually, the commissioner shall calculate the difference between (1) the weighted average of the percentage rates of interest payable on all subsidized loans made (A) after July 1, 1982, from the Energy Conservation Loan Fund, (B) from the Home Heating System Loan Fund established under section 16a-40k, and (C) from the Housing Repayment and Revolving Loan Fund pursuant to this section, and (2) the average of the percentage rates of interest on any bonds and notes issued pursuant to section 3-20, which have been dedicated to the energy conservation loan program and used to fund such loans, and multiply such difference by the outstanding amount of all such loans, or such lesser amount as may be required under Section 103(c) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended. The product of such difference and such applicable amount shall not exceed six per cent of the sum of the outstanding principal amount at the end of each fiscal year of all loans or deferred loans made (A) on or after July 1, 1982, from the Energy Conservation Loan Fund, (B) from the Home Heating System Loan Fund established under section 16a-40k, and (C) from the Housing Repayment and Revolving Loan Fund pursuant to this section, and the balance remaining in the Energy Conservation Loan Fund and the balance of energy conservation loan repayments in the Housing Repayment and Revolving Loan Fund. Not later than September first, annually, the Department of Public Utility Control shall allocate such product among each electric and gas company having at least seventy-five thousand customers, in accordance with a formula taking into account, without limitation, the average number of residential customers of each company. Not later than October first, annually, each such company shall pay its assessed amount to the commissioner. The commissioner shall pay to the State Treasurer for deposit in the General Fund all such payments from electric and gas companies, and shall adopt procedures to assure that such payments are not used for purposes other than those specifically provided in this section. The department shall include each company's payment as an operating expense of the company for the purposes of rate-making under section 16-19.

Sec. 2. (NEW) (Effective from passage) The Commissioner of Economic and Community Development shall, in consultation with the Energy Conservation Management Board, established pursuant to section 16-245m of the 2008 supplement to the general statutes, promote the programs established pursuant to section 16a-40b of the 2008 supplement to the general statutes, as amended by this act. The commissioner may use up to two per cent of the funds authorized to the Energy Conservation Loan Fund established pursuant to section 16a-40a of the general statutes for the purpose of marketing the loan programs pursuant to this section. Such marketing efforts may include, but not be limited to, partnering with professional trade organizations to educate said organizations' members about said loan programs.

Sec. 3. Subsection (e) of section 16-22l of the 2008 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2008):

(e) (1) There is established a Fuel Oil Conservation Board consisting of thirteen members, including:

(A) One member representing dealers with retail oil heat sales in excess of fifteen million gallons in the state, appointed by the president pro tempore of the Senate;

(B) One member representing dealers with retail oil heat sales of less than fifteen million gallons in the state, appointed by the speaker of the House of Representatives;

(C) One member representing the heating, ventilation and air-conditioning trades licensed under chapter 393, appointed by the majority leader of the Senate;

(D) One member representing wholesale heating distributors operating within the state, appointed by the majority leader of the House of Representatives;

(E) One member representing a state-wide environmental advocacy group, appointed by the minority leader of the Senate;

(F) The chairperson of the Heating, Piping, Cooling and Sheet Metal Work Board established under chapter 393;

(G) One member from a state-wide retail oil dealer trade association, appointed by the minority leader of the House of Representatives;

(H) Six members of the public appointed by the Governor, of which one shall be a representative of an environmental organization knowledgeable in energy efficiency programs, one shall be a representative of [in-state generators] an in-state biodiesel distributor, one shall be a representative of a consumer advocacy organization, one shall be a representative of the business community, one shall be a representative of low-income ratepayers and one shall be a representative of state residents, in general, and all of whom shall have expertise in energy issues, and

(I) All appointed members of the board shall serve in accordance with section 4-1a.

(2) The Fuel Oil Conservation Board shall be within the office of the State Comptroller for administrative purposes only and shall establish itself as a tax exempt organization in accordance with the provisions of Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended. Not later than July 1, 2008, and biennially thereafter, a third party selected by the Attorney General shall audit the activities of the board. The results of such audit shall be submitted in a report to the joint standing committees of the General Assembly having cognizance of matters relating to energy and the environment, in accordance with the provisions of section 11-4a.

(3) The Fuel Oil Conservation Board shall establish a fuel oil conservation account. The account shall be a separate, nonlapsing accounting within the [General Fund] restricted grant fund and shall be funded by annual revenue from the tax imposed by section 12-587 of the 2008 supplement to the general statutes on the sale of petroleum products gross earnings that is in excess of said revenue collected during fiscal 2006, provided the amount of such revenue that shall be allocated to said account in the fiscal year commencing July 1, 2007, shall not exceed ten million dollars, and the amount of such revenue that shall be allocated to said account in fiscal years commencing on and after July 1, 2008, shall not exceed five million dollars. [Before the accounts for the General Fund have been closed for each fiscal year, said funds shall be deposited by the Comptroller into the fuel oil conservation account. ] The Comptroller may deposit into the fuel oil conservation account up to two million five hundred thousand dollars upon the effective date of this section and any remaining balance for the fiscal year commencing July 1, 2007, shall be deposited as determined by the Comptroller upon the close of the fiscal year, but no later than October 1, 2008.

(4) The Fuel Oil Conservation Board shall authorize specific amounts from the fuel oil conservation account established pursuant to subdivision (3) of this subsection to the program administrator selected to implement an approved plan under this section. Such amounts shall be in the form of grants, which the board shall award twice a year. Any moneys left in the account at the end of each fiscal year shall be transferred outright to the General Fund. "

The chair ordered the vote be taken by roll call.

On the roll call vote Senate Bill No. 590 as amended by Senate Amendment Schedule “A” (LCO 6394) was passed.

IMMEDIATE TRANSMITTAL TO THE HOUSE

Senator Looney of the 11th moved immediate transmittal to the House.

FINANCE, REVENUE AND BONDING. Substitute for S. B. No. 317 (RAISED) (File Nos. 592 and 758) AN ACT CONCERNING FUNDING FOR AN EMINENT FACULTY RESEARCH TEAM AND NANOTECHNOLOGY.

Senator Hartley of the 15th explained the bill, offered Senate Amendment Schedule “A” (LCO 6153) and moved adoption.

On a voice vote the amendment was adopted.

The following is the Amendment.

Strike line 29 in its entirety and insert the following in lieu thereof: "Development, [to provide a] at Yale University and at The University of Connecticut, shared-use [laboratory in one or more sites"

In line 30, insert a closing bracket after "state" and after the closing bracket insert "laboratories"

In line 45, insert an opening bracket before "The"

In line 53, insert a closing bracket after "advancement. "

Strike lines 54 to 60, inclusive, in their entirety

Remarking were Senators LeBeau of the 3rd and Debicella of the 21st.

The chair ordered the vote be taken by roll call.

On the roll call vote Senate Bill No. 317 as amended by Senate Amendment Schedule “A” (LCO 6153) was passed.

IMMEDIATE TRANSMITTAL TO THE HOUSE

Senator Looney of the 11th moved immediate transmittal to the House.

GOVERNMENT ADMINISTRATION AND ELECTIONS. Substitute for S. B. No. 465 (RAISED) (File No. 598) AN ACT ESTABLISHING AN ADULT LITERACY BOARD. (As amended by Senate Amendment Schedule "A").

Senator Hartley of the 15th explained the bill as amended and moved passage.

The chair ordered the vote be taken by roll call.

On the roll call vote Senate Bill No. 465 as amended by Senate Amendment Schedule “A” (LCO 5768) was passed.