Sec. 22a-527. Annual value of equivalent nitrogen credits.
Sec. 22a-527. Annual value of equivalent nitrogen credits. (a) As used in this
section:
(1) "Eligible capital costs" means all costs associated with improvements beyond
local water quality needs (A) the actual planning, design and construction costs for a
nitrogen removal facility, except for costs related to the modification of a facility for
purposes other than the enhancement of the nitrogen treatment process, and (B) costs
of equipment and land that is necessary for nitrogen treatment. The Commissioner of
Environmental Protection, with the approval of the Nitrogen Credit Advisory Board,
may designate other eligible capital costs associated with the improvement of existing
secondary sewage treatment facilities;
(2) "Total eligible annual operation and maintenance cost" means the incremental
increase in the cost of labor administration, electricity, and chemicals to remove nitrogen;
(3) "Total eligible capital cost" means one hundred per cent of the eligible capital
costs, based on a thirty per cent grant provided to the facility pursuant to section 22a-478 and the loan to finance the remaining seventy per cent of the eligible capital costs;
(4) "Total annual capital cost" means the total amount of the facility's loan attributable to the total eligible capital cost divided by a twenty-year loan repayment period; and
(5) "Total annual project cost" means the total annual capital cost and the total
eligible annual operation and maintenance cost.
(b) The Nitrogen Credit Advisory Board, established pursuant to section 22a-523,
shall propose the annual value of equivalent nitrogen credits by dividing the total annual
project cost by the reduction of equivalent pounds of nitrogen. Upon proposing such
value, the board shall notify each municipality with sewage treatment facilities, in writing, of such proposal.
(c) The Commissioner of Environmental Protection shall issue a draft ruling on the
proposal pursuant to subsection (b) of this section. Such draft opinion shall become
final if no municipality or group of municipalities petition for a review of the proposal
pursuant to this section.
(d) No later than fifteen business days after the issuance of the draft ruling of the
commissioner, a municipality or a group of municipalities may petition the board to
review the proposed value of the credits.
(e) No later than ten business days following the submission of a petition for review,
the board shall appoint an arbitration panel comprised of (1) a municipal official from
a municipality that is expected to sell credits in the upcoming fiscal year, (2) a municipal
official from a municipality that is expected to purchase credits in the upcoming fiscal
year, and (3) a third member selected by mutual agreement by such officials.
(f) No later than ten business days after the appointing of an arbitration panel, the
board shall convene the arbitration meeting of the petitioners and the commissioner.
(g) No later than ten business days after the convening of the arbitration meeting,
the arbitration panel shall issue a final ruling on the annual value of equivalent nitrogen
credits.
(P.A. 01-180, S. 8, 9.)
History: P.A. 01-180 effective July 1, 2001.