2023 Connecticut General Statutes › Title 4b - State Real Property › Chapter 59 - State Real Property › Section 4b-17. - Capitol Area System and energy production plant in Hartford. Purchase by state. Nonwaiver of sovereign immunity. Operation of system. Authority of Commissioner of Administrative Services. Public works heating and cooling energy revolving account. Invoice and collection of costs. Review of purchase. Resale to third party.

(a)(1) The Commissioner of Administrative Services, on behalf of the state, may purchase from TEN Companies, Inc., in accordance with the Asset Purchase Agreement dated November 4, 2008, by and between the state, acting by and through the Commissioner of Administrative Services, and TEN Companies, Inc., which Asset Purchase Agreement is hereby ratified and approved, the district heating and cooling system that provides heating and cooling service to state facilities within the Capitol District and to other nonstate facilities, as listed in the Asset Purchase Agreement dated November 4, 2008, and which is known as the Capitol Area System, including all assets and property necessary for the operation of said system, as described in the Asset Purchase Agreement dated November 4, 2008. The commissioner may assume all vendor contracts, customer contracts, supplier agreements and third-party contracts with regard to said system. The commissioner may undertake any obligation and enter into any agreement to accomplish any transaction that is necessary to carry out the provisions of this section or said Asset Purchase Agreement, including the grant or acceptance of any release set forth in said Asset Purchase Agreement.
(2) The Commissioner of Administrative Services, on behalf of the state, may purchase from CDECCA Property Company, LLC, in accordance with a purchase and sale agreement, by and between the state, acting by and through the Commissioner of Administrative Services, and CDECCA Property Company, LLC, for the operation of the Capitol Area System, the energy production plant located at 490 Capitol Avenue in the city of Hartford, including the related land, buildings, improvements, equipment and fixtures, that produces and provides steam and heated and chilled water to the Capitol Area System for heating and cooling service to state and nonstate facilities, together with all assets and property described in such purchase and sale agreement. The commissioner may assume all vendor contracts, customer contracts, supplier agreements and third-party contracts with regard to said system. The commissioner may undertake any obligation and enter into any agreement to accomplish any transaction that is necessary to carry out the provisions of this section or such purchase and sale agreement.
(b) To the extent any provision in an agreement executed or assumed by the Commissioner of Administrative Services pursuant to subsection (a) of this section may be interpreted as waiving the sovereign immunity of the state, including, without limitation, indemnification provisions, such provision is effective and enforceable against the state solely in accordance with its specific terms. Nothing in this subsection shall be construed as a waiver of the sovereign immunity of the state in any other context.
(c) In order to operate the Capitol Area System, the Commissioner of Administrative Services may: (1) Construct or acquire energy production plants located in the city of Hartford for the purpose of furnishing heat or air conditioning, or both, by means of steam, heated or chilled water or other medium; (2) lay and maintain mains, pipes or other conduits; (3) erect such other fixtures as are, or may be, necessary or convenient in and on the streets, highways and public grounds of said city, for the purpose of carrying steam, heated or chilled water or other medium from such plants to the location to be served and returning the same; and (4) lease to one or more corporations formed or specially chartered for the purpose of furnishing heat or air conditioning, or both, one or more of such plants or distribution systems owned by it and constructed or adapted for either or both such purposes.
(d) The Commissioner of Administrative Services may perform all obligations of the state relating to or arising from any agreement between the state and TEN Companies, Inc., or the state and CDECCA Property Company, LLC.
(e) The Commissioner of Administrative Services may (1) enter into contracts with third parties for the procurement of energy products and services or for the operation and maintenance of, and repairs and improvements to, the Capitol Area System; (2) provide energy products and services, as produced from said system or distributed by said system, to any buildings owned by, or leased to, the state or any instrumentality of the state; (3) sell energy products and services, as produced from said system or distributed by said system, to the owners or tenants of buildings not owned by the state; (4) occupy and use rights-of-way necessary to own, maintain, repair, improve and operate said system in and on the streets, highways and public grounds of the city of Hartford, on all property owned by the state and on property where said system is located, and to serve public and private end use customers; (5) lay and maintain mains, pipes or other conduits, and erect such other fixtures as are, or may be, necessary or convenient in and on the streets, highways and public grounds of said city, for the purpose of carrying energy products to the location to be served and returning the same; and (6) enter into contracts with third parties for the procurement of other products and services, and provide or sell other products or services to the state or to the owners or tenants of buildings not owned by the state, that are being produced, provided or distributed through said system, or any part thereof, prior to, or as of, April 23, 2009.
(f) The Commissioner of Administrative Services may: (1) Grant easements with respect to land owned by the state in connection with the operation of the Capitol Area System, subject to the approval of the agency having supervision of the care and control of such land and the State Properties Review Board; (2) acquire easements with respect to land not owned by the state in connection with said system, subject to the approval of the State Properties Review Board; (3) enter into leases for any type of space or facility necessary to meet the needs of operating said system, subject to the approval of the State Properties Review Board; and (4) when the General Assembly is not in session, the commissioner may, subject to the provisions of section 4b-23, purchase or acquire for the state any land, or interest therein, if such action is necessary for the operation of said system. The commissioner shall provide notice of any easement granted pursuant to subdivision (1) of this subsection to the chief elected official of the municipality and the members of the General Assembly representing the municipality, in which such land is located.
(g) The Commissioner of Administrative Services may establish and administer an account to be known as the public works heating and cooling energy revolving account, which shall be used for: (1) The deposit of receipts from the sale of Capitol Area System energy products and services to state agencies or to the owners or tenants of buildings not owned by the state; and (2) the payment of expenses related to the operation, maintenance, repair and improvement of the Capitol Area System and, if purchased pursuant to subdivision (2) of subsection (a) of this section, the energy production plant located at 490 Capitol Avenue in the city of Hartford that provides steam and heated and chilled water for said system. The commissioner may expend funds necessary for all reasonable direct expenses related to said account.
(h) For the provision of energy products and services, the Commissioner of Administrative Services shall periodically invoice and collect a pro rata share of the costs described in this subsection from each state agency and owner or tenant of the buildings on the Capitol Area System that are not owned by the state, to the extent not prohibited by contracts in effect as of November 4, 2008. The commissioner shall periodically submit proposed rate setting methods and proposed rates to the Secretary of the Office of Policy and Management for the secretary's approval. No such method or rate shall be effective without the secretary's approval. Rates shall be based on: (1) A pro rata share of all costs, including for legal and consultant services, of acquiring said system and, if applicable, the energy production plant located at 490 Capitol Avenue in the city of Hartford, including the related land, buildings, improvements, equipment and fixtures; (2) a pro rata share of the cost of such energy products or services, whether produced by the state or purchased from third parties; (3) a pro rata share of all costs, including for services provided by vendors and for equipment, of operating, maintaining and repairing said system and, if applicable, said energy production plant, including the related land, buildings, improvements, equipment and fixtures; (4) a pro rata share of an amount determined to be necessary for long-term capital improvements or replacement, which amount shall be specifically identified in the public works heating and cooling energy revolving account, and allocated for long-term capital improvements or replacement; (5) a pro rata share of the Department of Administrative Services' personnel costs related to the operation, maintenance, repair and improvement of said system, provided not more than one full-time employee of the department shall be allocated to said system; and (6) a pro rata share of the cost of other products or services incurred and permitted by this section. Not more than forty-five days after receipt of a proposed rate setting method or a proposed rate from the commissioner, the secretary shall approve or disapprove such proposed method or rate. If the secretary fails to act on such proposed method or rate within such period, the commissioner's proposal shall be deemed to have been approved. On a quarterly basis, the commissioner shall transmit to the General Fund any portion of the costs that are attributable to the provisions of subdivision (1) of this subsection.
(i) Nothing in this section shall be construed to limit the state's use of the Capitol Area System to its use or functional capacity as of the date of its purchase by the state or, if applicable, the state's use of the energy production plant located at 490 Capitol Avenue in the city of Hartford to its use or functional capacity as of the date of its purchase by the state.
(j) Except as expressly required by the provisions of this section, the acquisition of the Capitol Area System by the Commissioner of Administrative Services, and any transaction necessary for such acquisition, shall not be subject to any other review, approval or authorization by any other state agency, board, department or instrumentality and shall not be subject to any otherwise applicable sales or conveyance tax or taxes.
(k) Nothing in this section shall be construed to prohibit the state from reselling the Capitol Area System to a third party if it is determined that such resale is in the best interest of the state.
(P.A. 09-15, S. 1; P.A. 11-51, S. 44; P.A. 22-118, S. 169.)
History: P.A. 09-15 effective April 23, 2009; pursuant to P.A. 11-51, “Commissioner of Public Works” and “Department of Public Works” were changed editorially by the Revisors to “Commissioner of Administrative Services” and “Department of Administrative Services”, respectively, effective July 1, 2011; P.A. 22-118 amended Subsec. (a) to designate existing provisions as Subdiv. (1) and add Subdiv. (2) re Hartford energy production plant, amended Subsec. (c)(1) to authorize construction or acquisition of Hartford energy production plants, amended Subsec. (d) to add “, or the state and CDECCA Property Company, LLC”, amended Subsec. (g)(2) to add provision re Hartford energy production plant, amended Subsec. (h) to add provisions re Hartford energy production plant in Subdivs. (1) and (3), amended Subsec. (i) to add provision re Hartford energy production plant and made technical changes, effective May 7, 2022.