(a) The Commissioner of Energy and Environmental Protection shall adopt regulations, in accordance with chapter 54, to implement the Regional Greenhouse Gas Initiative.

(b) The Department of Energy and Environmental Protection shall auction all emissions allowances and invest the proceeds, which shall be deposited into a Regional Greenhouse Gas account established by the Comptroller as a separate, nonlapsing account within the General Fund, on behalf of electric ratepayers in energy conservation, load management and Class I renewable energy programs. In making such investments, the Commissioner of Energy and Environmental Protection shall consider strategies that maximize cost effective reductions in greenhouse gas emission. Allowances shall be auctioned under the oversight of the Department of Energy and Environmental Protection by a contractor or trustee on behalf of the electric ratepayers. On or before July 1, 2015, notwithstanding subparagraph (C) of subdivision (5) of subsection (f) of section 22a-174-31 of the regulations of Connecticut state agencies, the commissioner may allocate to the Connecticut Green Bank any portion of auction proceeds in excess of the amounts budgeted by electric distribution companies in the plan submitted to the department on November 1, 2012, in accordance with section 16-245m, to support energy efficiency programs, provided any such excess proceeds may be calculated and allocated on a pro rata basis at the conclusion of any auction.

(c) The regulations adopted pursuant to subsection (a) of this section may include provisions to cover the reasonable administrative costs associated with the implementation of the Regional Greenhouse Gas Initiative in Connecticut and to fund assessment and planning of measures to reduce emissions, mitigate the impacts of climate change and to cover the reasonable administrative costs of state agencies associated with the adoption of regulations, plans and policies in accordance with section 22a-200a. Such costs shall not exceed seven and one-half per cent of the total projected allowance value. Such regulations may also set aside a portion of the allowances to support the voluntary renewable energy provisions of the Regional Greenhouse Gas Initiative model rule and combined heat and power.

(d) Any allowances or allowance value allocated to the energy conservation load management program on behalf of electric ratepayers shall be incorporated into the planning and procurement process in sections 16a-3a and 16a-3b.

(e) Beginning with the first auction occurring on or after January 1, 2017, and notwithstanding the provisions of subdivision (6) of subsection (f) of section 22a-174-31 of the regulations of Connecticut state agencies, auction proceeds totaling three million three hundred thousand dollars shall be diverted to the General Fund in the fiscal year ending June 30, 2017, provided all proceeds in excess of said amount in the auction or auctions where such diversion occurs, and all proceeds in all subsequent auctions, shall be calculated and allocated in accordance with subdivision (6) of subsection (f) of section 22a-174-31 of the regulations of Connecticut state agencies.

(P.A. 07-242, S. 93; P.A. 08-98, S. 4; Sept. Sp. Sess. P.A. 09-8, S. 36; P.A. 11-80, S. 1, 64; P.A. 13-247, S. 131; P.A. 14-94, S. 29; May Sp. Sess. P.A. 16-3, S. 181.)

History: P.A. 07-242 effective July 1, 2007; P.A. 08-98 amended Subsec. (c) to permit allowances to be used to cover certain administrative costs of state agencies; Sept. Sp. Sess. P.A. 09-8 amended Subsec. (b) to add provision re deposit into Regional Greenhouse Gas account, effective October 5, 2009; P.A. 11-80 changed “Commissioner of Environmental Protection” to “Commissioner of Energy and Environmental Protection” and “Department of Environmental Protection” to “Department of Energy and Environmental Protection” and deleted references to Department of Public Utility Control, effective July 1, 2011; P.A. 13-247 amended Subsec. (b) to add provision re allocation of excess auction proceeds to Clean Energy Finance and Investment Authority by commissioner, effective July 1, 2013; pursuant to P.A. 14-94, “Clean Energy Finance and Investment Authority” was changed editorially by the Revisors to “Connecticut Green Bank” in Subsec. (b), effective June 6, 2014; May Sp. Sess. P.A. 16-3 added Subsec. (e) re diversion of $3,300,000 of auction proceeds to General Fund in fiscal year ending June 30, 2017, and calculation and allocation of auction proceeds and diversion, effective June 2, 2016.