The Connecticut General Assembly adjourned in June and now – 123 days later – Governor Dannel Malloy last Tuesday signed into law a two-year state budget. The governor did not adopt the budget, as passed overwhelmingly by both houses of the General Assembly, in its entirety. He exercised his line-item veto authority to eliminate appropriations in support of a proposed hospital tax. Other programs were not directly affected by the governor's line-item veto. Budget provisions of significance on the environmental front include:
Brownfields
The budget creates a new program supporting the remediation and reuse of properties meeting the definition of a brownfield. The newly created 7/7 Brownfields program, housed within the Connecticut Department of Economic and Community Development (DECD), will provide tax incentives for participating businesses that develop designated brownfields and other abandoned Connecticut properties. Participation in the program requires various state certifications and approvals, including the certification that the property is a qualifying brownfield or it has been underutilized or abandoned for at least 10 years. Additionally, the participating owner must commit to hiring at least 30 percent of its workforce from students enrolled in programs of study at area high schools and regional-community technical schools that were developed in response to the owner's plan identifying anticipated workforce needs and workforce training requirements. Once accepted into the 7/7 Brownfields program and following the completion of remediation, a participating owner will be eligible for tax benefits set forth in the legislation. The legislation directs DECD to adopt regulations applicable to the 7/7 Brownfields program, in consultation with the Connecticut Department of Revenue Services.
Permit Streamlining
The budget legislation requires that the Connecticut Department of Energy & Environmental Protection (DEEP) review and take final action on various types of permits and authorizations within 90 days of application. If final action is not taken within this 90 days, the application will be deemed approved. Applications and authorizations listed in the legislation include, among others:
Budget Transfers/Allocations Impacting Environmental and Energy Program Funding
Budget provisions direct to the General Fund more than $175 million in funds otherwise earmarked for environmental and energy programs.
The budget creates certain bonding authorization caps, in one instance reducing proceeds from the sale of bonds potentially available to the Connecticut Green Bank for purposes of the Green Connecticut Loan Guaranty Fund program.
All of the above-mentioned provisions became effective from passage. This includes the 7/7 Brownfields program, which is applicable to taxable and income years commencing on or after January 1, 2017. Should you have any questions regarding the budget provisions discussed above, please feel free to contact any of the attorneys listed in the sidebar.
Day Pitney Real Estate Partner Steven J. Wernick is featured in the South Florida Business Journal article "28-Story Tower With Over 100 Apartments Planned in Miami."
Day Pitney Alert
Day Pitney Real Estate, Environmental and Land Use practice co-chair Craig Gianetti was featured in Gothamist article "Court Tells Wealthy NJ Town: We'll Decide Where You'll Put Affordable Housing."
Day Pitney Press Release
Day Pitney Real Estate, Environmental and Land Use Partner Steven Wernick is featured in the Miami Herald article "The End of Single-Family-Only Home Suburbs? Miami-Dade Zoning Rule Impact Could Be 'Sweeping'."
Day Pitney Real Estate Partners Nicole Magdziak and Thomas Malman represented firm client Kushner, a real estate development and management firm headquartered in New York City, on a multimillion dollar mixed use residential and retail development in the Long Branch, NJ’s Lower Broadway redevelopment zone.
Day Pitney Real Estate, Environmental and Land Use practice co-chair Craig Gianetti was featured in Law360 article "NJ Bill Paves An Aggressive Affordable-Housing Path."
Day Pitney Real Estate, Environmental and Land Use Counsel Joseph A. Ruiz was featured in the South Florida Business Journal article "Local Distillery Proposes Location in Miami-Dade Warehouse."
Day Pitney Alert
Day Pitney Alert
Copyright © 2024 Day Pitney LLP, all rights reserved.