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Connecticut governor signs bill extending gas tax cuts and fare-free bus service, increasing funding for energy assistance and ‘hero pay’ program

HARTFORD, Conn. (WTNH) — Gov. Ned Lamont (D-Conn.) signed legislation Tuesday extending several cost-saving measures to help Connecticut residents.

Lamont signed House Bill 6001 into law after the General Assembly passed it during a special session Monday night.

“We’re extending the gas tax holiday a little bit longer, providing energy assistance for those in need, and increasing the amount of funding available for the pandemic pay program for the essential workers who’ve showed up to work every day throughout the pandemic,” Lamont said in a statement. “During the upcoming regular session, it is my goal to continue advancing more policy changes like these that will make a difference in the lives of the people who live here.”

The legislation extends the 25-cent-per-gallon gas tax holiday through Dec. 31. Starting Jan. 1, 2023, the state will add five cents to the cost of a gallon of gas over five months. Connecticut is one of three states with an active gas tax suspension.

The suspension of the collection of fares on public transit buses statewide will continue through March 31.

The legislation also increases energy assistance, supplementing this year’s $98.5 million of federal Low-Income Household Energy Assistance (LIHEAP) funding with an additional $30 million in American Rescue Plan Act funding to the Connecticut Department of Social Services. The governor’s office said the additional funding would help ensure that funding for the Connecticut Energy Assistance Program (CEAP) is available to low-income families.

An additional $75 million to the Premium Pay Program, established to give bonuses of up to $1,000 to essential employees who worked the frontlines through the COVID-19 pandemic, will bring funding for the program to a total of $105 million.

Earlier this month, Comptroller-elect Sean Scanlon said it would cost the state $122 million to pay the bonuses in full. If more funding were not made available, the comptroller’s office, by law, would prorate the bonus each worker would receive. The “hero pay” program is now being restructured.

“It is going to be structured in a progressive way that gives those who earn the least, the greatest amount, so anyone who is earning less than $50,000 will get about $1,000 hero pay bonus that others in a higher income, somewhat less,” said Senate President Pro Tempore Martin Looney (D-New Haven). “It is a recognition of the risks they took.”

The legislation also modifies the bottle bill to allow retailers, especially small retailers, to continue selling off their existing inventory without violating the changes scheduled to go into effect on Jan. 1, 2023.