When the Connecticut General Assembly kicked off in February, energy affordability was supposed to be the headline act. Democrats, Republicans, and the governor all agreed we have a serious problem with energy costs in this state.
And yet, three bills that just cleared legislative committees head in the exact opposite direction.
Call it a one, two, three punch in the gut to Connecticut consumers who are already struggling to make ends meet.
If these bills are signed into law, expect gasoline, diesel, home heating oil, propane, natural gas, and electricity prices to climb even higher on top of increases tied to the war in Iran. Another proposal opens the door to lawsuits targeting home heating oil companies, gas stations, utilities, and potentially even your neighbors over gas grills and gasoline-powered leaf blowers.
Yes, really.
It sounds absurd, but here we are. When it comes to lowering energy costs, Houston, we have a problem.
Let’s break it down.
A new $13 billion tax
HB 5156 would hold fossil fuel companies liable for alleged climate-related damages in Connecticut going back decades. Modeled after New York, we estimate it would generate 13 billion dollars in new taxes on Connecticut residents.
The result is simple: gasoline and home heating oil prices would rise by about 33 cents per gallon.
Our industry is already highly regulated and taxed at every level. These taxes include the state Excise Tax, federal Excise Tax, federal Superfund Tax, federal Leaking Underground Storage Tank Tax, Oil Spill Liability Trust Fund Tax, State Sales Tax, and the Petroleum Gross Earnings Tax —all of which appear on invoices, and all get passed directly to consumers. Our 600 family-owned businesses cannot absorb these costs. If they tried, they would not survive.
Supporters argue that global markets will prevent these costs from being passed on, so this will not matter. That is only part of the story. Connecticut courts have already settled this question. In a 1987 case involving Texaco and the state’s Department of Revenue Services, the Connecticut Superior Court confirmed these taxes can be passed on to consumers.
There is no mystery. These costs do not vanish.
Lawsuits that could hit your neighborhood
Senate Joint Resolution 37 proposes amending the state constitution to allow lawsuits over perceived environmental violations. Not just against companies or the state, but potentially against neighbors as well.
If someone does not like your gas grill or fire pit, it could become a legal issue. That gasoline-powered leaf blower in your garage could be next.
This creates a pathway for costly, drawn-out disputes while putting enormous pressure on the businesses that keep the state running. Home heating oil companies, gas stations, and utilities could face legal risks that current insurance policies simply do not cover.
When those risks cannot be insured, the costs do not disappear. They get passed along. That could mean higher electric bills or fewer local businesses willing to operate under that uncertainty.
Our industry powers the economy by keeping homes warm, cars moving, and businesses open. If legal and financial risks become too high, those services do not expand; they shrink.
Layering this kind of exposure onto one of the most heavily regulated and taxed industries in the state does not make Connecticut more affordable. It makes it more expensive and more complicated.
A new hidden public benefits surcharge
We all know how popular the public benefits charge on your electric bill has become. Naturally, the next idea is to bring something like it to your home heating oil bill. Yes, that was meant to sound a little snarky.
SB 453 would add a 5 percent surcharge on insurance policies held by companies that store and transport fuels like heating oil, diesel, gasoline, and propane, all to fund green energy programs.
Sound familiar? It should.
This is the same playbook that helped drive electric bills higher across Connecticut. It starts small, then grows. New initiatives get added, costs stack up, and consumers pay the price.
Based on our analysis, this surcharge would increase the cost of home heating fuel by $11 million per year.
Connecticut leaders began this session acknowledging that energy costs are too high. They were right. But these proposals move in the opposite direction. They raise prices, increase risk, and make it harder for businesses to operate and for families to afford the basics.
At some point, the question is not about intent. It is about impact.
If the goal is truly to make energy more affordable, these bills miss the mark. If the goal is something else, it is time to be honest.
Connecticut residents are not looking for more fees, more lawsuits, or more uncertainty. They are looking for relief. Right now, they are not getting it, and that needs to change by getting lawmakers to honor the commitment they made when the legislature convened, and they all agreed to prioritize energy affordability.
Chris Herb is President and CEO of the nonprofit Connecticut Energy Marketers Association (CEMA)