2023 Connecticut General Statutes › Title 16a - Planning and Energy Policy › Chapter 296a - Heating Fuel Sales › Section 16a-23m. - Definitions. Heating fuel dealer certificate of registration. Display of registration number. Insurance company notification of cancellation. Offering of prepaid guaranteed price plan to consumer. Disclosures.

(a) As used in this section, sections 16a-23n to 16a-23s, inclusive, and section 16a-23v:
(1) “Budget plan” means a type of contract offering heating fuel that may be paid for in advance of, on or after delivery and is paid for in not less than three installment payments over a period of at least one hundred twenty days, provided the amount required to be paid as the first payment under such contract is not greater than fifty per cent of the remaining amount due under such contract;
(2) “Capped price plan” means a contract which provides that the cost to the consumer for heating fuel shall not increase above a specified price per gallon and the consumer shall pay less than such specified price under circumstances specified in such contract;
(3) “Commissioner” means the Commissioner of Consumer Protection;
(4) “Consumer” means a direct purchaser of heating fuel from a heating fuel dealer for one or more dwelling units within a structure having not more than four dwelling units;
(5) “Forwards contract” means an agreement between two parties to buy or sell an asset at a certain future time for a certain price;
(6) “Futures contract” means a standardized, transferable, exchange-traded agreement that requires delivery of heating fuel at a specified price on a specified future date;
(7) “Gallon” means an accepted unit of measure consisting of two hundred thirty-one cubic inches, for all liquid or gaseous heating fuel, subject to modifications allowed under regulations adopted pursuant to section 43-42;
(8) “Guaranteed price plan”, also known as “guaranteed plan”, “fixed price”, “full price”, “lock in”, “capped”, “price cap”, or other similar terminology, when used to describe a contract, means a type of contract that is not paid in advance of delivery, offering heating fuel at a guaranteed future price or at a maximum future price;
(9) “Heating fuel” means any petroleum-based fuel, including any petroleum product regulated pursuant to chapter 250, used as a primary source of residential heating or domestic hot water;
(10) “Heating fuel dealer” or “dealer” means any individual or group of individuals who, or a cooperative, corporation, firm, limited liability company or partnership that, offers to sell, at retail, heating fuel to consumers;
(11) “Heating oil” means a petroleum product, including a petroleum product known as #1 oil (kerosene), #2 oil (heating oil), #4 oil, bio fuel or any bio fuel blended with conventionally refined fossil fuel commodities, that (A) is predominantly liquid at ambient temperatures, (B) is sold as a commodity, (C) is a primary source of residential heating or domestic hot water, and (D) meets the requirements of the American Society for Testing and Materials Standard D396, as amended from time to time;
(12) “Maintain” means retention of the balance, measured in gallons or other accepted units of measure, of heating fuel that remains to be delivered to consumers who are party to a guaranteed price plan contract;
(13) “Physical supply contract” means an agreement for wet barrels or gallons of heating fuel that is secured by a heating fuel dealer;
(14) “Prepaid guaranteed price plan”, also known as “buy ahead”, “prebuy”, “prebought” or other similar terminology, when used to describe a contract, means a type of contract offering heating fuel at a guaranteed price, paid for in advance of delivery, but does not include a budget plan;
(15) “Propane” or “liquefied petroleum gas (LPG)” means a petroleum product that (A) meets American Society for Testing and Materials specification D1835, as amended from time to time, (B) is composed predominantly of butanes (normal butane or isobutane), butylenes, propane, propylene or any mixture thereof, and (C) is intended for use, among other things, as a fuel for residential heating; and
(16) “Surety bond” means a bond, issued by a licensed insurance company or banking institution, as surety for a dealer and obligating surety to the commissioner, in a sum certain, in guaranty of the dealer's full and faithful performance of prepaid guaranteed price plan contracts entered into pursuant to this chapter.
(b) No heating fuel dealer shall engage in the sale of heating fuel without a certificate of registration as a heating fuel dealer issued pursuant to this section. No federally established heating assistance agency shall be required to register. Only one registration shall be required of a dealer to engage in both the retail sale of heating oil and propane. A separate certificate of registration is required for each name that a heating fuel dealer does business as or advertises.
(c) Each person, firm or corporation seeking registration as a heating fuel dealer shall apply annually for a certificate of registration with the Department of Consumer Protection on forms prescribed by the commissioner. Each heating fuel dealer shall disclose on such forms all affiliated companies registered with the department that are under common ownership or have interlocking boards of directors. Each applicant shall pay a registration fee of two hundred dollars. The commissioner shall require all applicants for registration as a heating fuel dealer to provide evidence of general liability insurance coverage and insurance to cover any potential environmental damage due to heating fuel spills or leaks caused by such applicant as a registered dealer which coverage shall be not less than one million dollars. Each registered dealer shall provide the department with evidence of each renewal of or change to such insurance coverage not later than five days after such renewal or change during the period of registration, which renewal or change shall meet the requirements of this subsection.
(d) Each registered dealer shall display its registration number in all advertisements and other materials prepared or issued by the dealer, which contain information regarding such dealer, including, but not limited to, all contracts, delivery tickets, letters and vehicle advertisements.
(e) The insurance company of a heating fuel dealer shall notify the commissioner, in writing, upon cancellation of insurance required by subsection (c) of this section by any heating fuel dealer. The commissioner shall revoke the registration of any such dealer without the insurance coverage required by subsection (c) of this section.
(f) Prior to offering a prepaid guaranteed price plan to a consumer, a dealer shall disclose the details of such offering, including such dealer's method of compliance with section 16a-23n, on a form prescribed by the commissioner.
(P.A. 01-46, S. 1, 7; June 30 Sp. Sess. P.A. 03-6, S. 146(c), (d); P.A. 04-169, S. 17; 04-189, S. 1; 04-194, S. 1; P.A. 06-65, S. 2; June Sp. Sess. P.A. 09-3, S. 162; P.A. 12-76, S. 5; P.A. 14-51, S. 2; P.A. 22-104, S. 40.)
History: P.A. 01-46 effective July 1, 2001; June 30 Sp. Sess. P.A. 03-6 and P.A. 04-169 replaced Commissioner and Department of Consumer Protection with Commissioner and Department of Agriculture and Consumer Protection, effective July 1, 2004; P.A. 04-189 repealed Sec. 146 of June 30 Sp. Sess. P.A. 03-6, thereby reversing the merger of the Departments of Agriculture and Consumer Protection, effective June 1, 2004; P.A. 04-194 added Subsec. (c) providing for display of a dealer's registration number, and Subsec. (d) providing for notification by insurance company of cancellation of insurance, and revocation of registration; P.A. 06-65 added propane gas dealers to requirements of Subsecs. (a), (b) and (d), amended Subsec. (a) to make a technical change and require only one registration for dealer engaged in both retail sale of heating oil and propane gas, and amended Subsec. (b) to require general liability insurance coverage for propane gas leaks caused by dealer; June Sp. Sess. P.A. 09-3 amended Subsec. (b) to increase registration fee from $100 to $200; P.A. 12-76 replaced former Subsec. (a) re registration with new Subsec. (a) re definitions, added new Subsec. (b) re registration requirements, redesignated existing Subsecs. (b), (c) and (d) as Subsecs. (c), (d) and (e), added affiliated company requirements in redesignated Subsec. (c), added registration number display requirements re contracts, delivery tickets, letters and vehicle advertisements in redesignated Subsec. (d) and made technical changes, effective July 1, 2013; P.A. 14-51 amended Subsec. (a) by adding references to Secs. 16a-23s and 16a-23v, adding new Subdiv. (1) defining “budget plan” and new Subdiv. (14) defining “prepaid guaranteed price plan”, redesignating existing Subdivs. (1) to (12) and (13) and (14) as Subdivs. (2) to (13) and (15) and (16), respectively, and redefining “guaranteed price plan” in redesignated Subdiv. (8), and added Subsec. (f) re dealer disclosure prior to offering prepaid guaranteed price plan to consumer, effective July 1, 2014; P.A. 22-104 amended Subsec. (a)(4) by deleting provision re when heating fuel purchased from heating fuel dealer is primary source of heating fuel for residential heating or domestic hot water, Subsec. (a)(11) by adding provisions re #1 oil, #2 oil, #4 oil, bio fuel and bio fuel blended with conventionally refined fossil fuel commodity and dividing existing provisions into Subparas. and Subsec. (a)(15) by dividing existing provisions into Subparas., and made technical and conforming changes in Subsec. (a), effective May 24, 2022.