Sec. 16a-40k. Revolving loans for secondary heating systems and conversions of primary heating systems in dwellings heated primarily by electricity. Electric and gas company participation. Regulations - Connecticut Statutes

      Sec. 16a-40k. Revolving loans for secondary heating systems and conversions of primary heating systems in dwellings heated primarily by electricity. Electric and gas company participation. Regulations. Termination of loan authority. (a) The Commissioner of Economic and Community Development shall establish a home heating system loan fund and make low-cost loans from such fund for three years 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 electricity. Any such loan may be used to (1) purchase a secondary heating system using a source of heat other than electricity or (2) convert a primary electric heating system to a system using a source of heat other than electricity.

      (b) Any loan under subdivision (1) of subsection (a) of this section shall be not more than two thousand dollars and any loan under subdivision (2) of said subsection shall be not more than four thousand dollars. Any loan under said subsection 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 forty-five thousand dollars as an average amount per year in the last two reported filings of income by such household member or members. Repayment of all loans made under this section shall be subject to such rate of interest, terms and conditions as the commissioner may establish, provided the commissioner, in consultation with the Department of Public Utility Control, shall, not later than July first and January first, annually, establish a range of rates of interest payable on all loans to be made during the succeeding six months 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 support of his household was at least thirty-three thousand dollars as an average amount per year in the last two reported filings of income by such household member or members.

      (c) Not later than August 1, 1984, the commissioner shall calculate an amount equal to the difference between the rate of interest payable on all loans made on and after July 1, 1983, and the rate of interest on any outstanding bonds and notes used to fund such loans, multiplied 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. Such 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 made on or after July 1, 1983, from the Home Heating System Loan Fund and the amount remaining in such fund. Not later than September 1, 1984, the Department of Public Utility Control shall allocate such amount among each electric company, as defined in section 16-1, 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 1, 1984, 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 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.

      (d) The commissioner shall adopt regulations in accordance with the provisions of chapter 54, (1) concerning qualifications for such 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 any bonds and notes used to fund such loans qualify for exemption from federal income taxation, (2) providing for the maximum feasible availability of such loans for dwelling units owned or occupied by persons of low and moderate income and (3) establishing procedures to inform such persons of the availability of such loans and to encourage and assist them to apply for such loans.

      (e) Notwithstanding the provisions of subsections (a) to (d), inclusive, of this section, on and after July 1, 1985, no loans shall be authorized under said subsections and, not later than July 15, 1985, the State Treasurer shall terminate the Home Heating System Loan Fund and transfer the proceeds of such fund to the Energy Conservation Loan Fund established under section 16a-40a.

      (P.A. 83-549, S. 2, 4; 83-587, S. 90, 96; P.A. 85-601, S. 7, 8; P.A. 89-211, S. 29; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6.)

      History: P.A. 83-587 made a technical correction for purposes of consistency, deleting a provision in Subsec. (b) requiring repayment of loans to be deposited in general fund; P.A. 85-601 added Subsec. (e), terminating the program and loan fund; P.A. 89-211 clarified reference to the Internal Revenue Code of 1986; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Housing with Commissioner and Department of Economic and Community Development.