OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http: //www. cga. ct. gov/ofa

sSB-23

AN ACT ENHANCING EMERGENCY PREPAREDNESS AND RESPONSE.

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 13 $

FY 14 $

Department of Energy and Environmental Protection

CC&PUCF - Cost

190,000

190,000

Comptroller Misc. Accounts (Fringe Benefits)1

GF - Cost

55,518

55,518

Department of Energy and Environmental Protection

CC&PUCF - Cost

See Below

See Below

Note: CC&PUCF=Consumer Counsel and Public Utility Control Fund; GF=General Fund

Municipal Impact: None

Explanation

The bill requires the Public Utilities Regulatory Authority (PURA) to establish certain utility company performance standards for emergency preparation and service restoration. PURA will need to hire two engineers (total salary cost of $245,518 including fringe benefits) to establish standards and annually evaluate utility companies' performance. While this section of the bill is effective upon passage, it is not anticipated that PURA will incur any costs until FY 13.

The bill also requires the Department of Energy and Environmental Protection to establish a pilot program to fund local clean energy generation. The program is authorized to spend up to $5 million in total grants and loans, though no funding source is identified in the bill. 2 To the extent that these grants and loans are nonetheless provided, there is a cost of up to $5 million.

The bill also makes several regulatory changes that have no fiscal impact on PURA.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

1 The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller. The estimated non-pension fringe benefit cost associated with most personnel changes is 29. 22% of payroll in FY 13 and FY 14.

2 It should be noted that the bond bill approved by the Finance, Revenue and Bonding Committee (sSB 25, AA Authorizing and Adjusting Bonds of the State for Capital Improvements, Transportation and Other Purposes) does not authorize any bond funds for the local clean energy generation pilot program established in this bill.