Colon De Mejias v. Lamont

963 F.3d 196
CourtCourt of Appeals for the Second Circuit
DecidedJune 23, 2020
Docket18-3533
StatusPublished
Cited by13 cases

This text of 963 F.3d 196 (Colon De Mejias v. Lamont) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Colon De Mejias v. Lamont, 963 F.3d 196 (2d Cir. 2020).

Opinion

18-3533 Colon de Mejias v. Lamont

In the United States Court of Appeals For the Second Circuit

August Term, 2019

Argued: December 20, 2019 Decided: June 23, 2020

Docket No. 18-3533

LETICIA COLON DE MEJIAS, CONNECTICUT FUND FOR THE ENVIRONMENT, INC., FIGHT THE HIKE, ENERGY EFFICIENCIES SOLUTIONS, LLC, BEST HOME PERFORMANCE OF CT, LLC, CONNECTICUT CITIZEN ACTION GROUP, NEW ENGLAND SMART ENERGY GROUP, LLC, CT WEATHERPROOF INSULATION, LLC, STEVEN C OSUCH, ENERGY ESC, LLP, JONATHAN CASIANO, BRIGHT SOLUTIONS, LLC, Plaintiffs–Appellants,

V.

NED LAMONT, IN HIS OFFICIAL CAPACITY AS GOVERNOR OF THE STATE OF CONNECTICUT, SHAWN WOODEN, IN HIS OFFICIAL CAPACITY AS THE TREASURER OF THE STATE OF CONNECTICUT, KEVIN LEMBO, IN HIS OFFICIAL CAPACITY AS THE COMPTROLLER OF THE STATE OF CONNECTICUT, Defendants–Appellees. *

*Effective January 2019, Ned Lamont became Governor of the State of Connecticut, succeeding Daniel Malloy, and Shawn Wooden became Treasurer of the State of Connecticut, succeeding Denise Nappier. Under Federal Rule of Appellate Procedure 43(c)(2), Governor Lamont is automatically substituted for former Governor Malloy and 18-3533 Colon de Mejias v. Lamont

Appeal from the United States District Court for the District of Connecticut No. 3:18-cv-817 (JCH) – Janet C. Hall, Judge.

Before: WINTER, HALL, and SULLIVAN, Circuit Judges.

At issue in this case is (1) whether Connecticut’s Public Act 17-2, as amended by Public Act 18-81, (the “Act”), which transfers money from the state’s energy funds to the general purpose fund, violates the Contract Clause of the United States Constitution; and (2) whether the taxpayer standing doctrine bars Appellants’ Equal Protection claim. The district court (Janet C. Hall, J.) granted summary judgment to Appellees on both grounds, determining that Appellants had no contractual right to prevent the transfer of money to the general purpose fund and that the Act is an allocation of state revenue, not a tax, so that the taxpayer standing doctrine bars Appellants’ claim. We agree. The judgment of the district court is AFFIRMED.

BENJAMIN M. WATTENMAKER (Stephen J. Humes, Holland & Knight LLP, John M. Wolfson, Feiner Wolfson, LLC, Roger Reynolds, Connecticut Fund for the Environment, on the brief), Feiner Wolfson, LLC, Hartford, CT, for Plaintiffs-Appellants.

PHILLIP MILLER, Assistant Attorney General, for William Tong, Attorney General for the State of Connecticut, Hartford, CT, for Defendants- Appellees.

Treasurer Wooden is substituted for former Treasurer Nappier in this action. The Clerk of the Court is requested to amend the caption as above.

2 18-3533 Colon de Mejias v. Lamont

PETER W. HALL, Circuit Judge:

Plaintiffs-Appellants 1 appeal from the judgment of the United States District

Court for the District of Connecticut (Janet C. Hall, J.), dated October 25, 2018,

granting summary judgment in favor of Defendants-Appellees, the Governor,

Treasurer, and Comptroller of the State of Connecticut (collectively, “Appellees”).

The questions presented on appeal are (1) whether Connecticut’s Public Act 17-2,

as amended by Public Act 18-81, (the “Act”), which transfers money from the

state’s legislatively created energy funds (the “Energy Funds”) to the general

purpose fund (the “General Fund”), violates the Contract Clause of the United

States Constitution; and (2) whether the taxpayer standing doctrine bars

Appellants’ Equal Protection claim.

BACKGROUND

I. Facts

In Connecticut, two types of entities provide electricity: investor-owned

electric distribution companies (“EDCs”) and municipal utilities. There are two

1 Leticia Colon de Mejias; Connecticut Fund for the Environment, Inc.; Fight the Hike; Energy Efficiencies Solutions, LLC; Best Home Performance of CT, LLC; Connecticut Citizen Action Group; New England Smart Energy Group, LLC; CT Weatherproof Insulation, LLC; Steven C. Osuch; Energy ESC, LLP; Jonathan Casiano; and Bright Solutions, LLC (collectively, “Appellants”).

3 18-3533 Colon de Mejias v. Lamont

EDCs, Eversource and The United Illuminating Company, which serve

approximately 1.5 million customers. There are seven municipal utilities, which

serve approximately 125,000 customers.

The Public Utilities Regulatory Authority (“PURA”) regulates the rates and

services of the EDCs through the approval of “tariffs.” Each EDC operates

pursuant to these tariffs, which set forth “rate schedules[,] . . . terms of service,

rules and regulations of service, and standard template agreements the EDCs use

in operating their electric distribution systems.” J. App. 99. Individual customers

then enter into written contracts with the EDCs, in which the customers agree to

pay PURA-approved rates in exchange for electric service.

In 1998, the Connecticut General Assembly passed Public Act 98-28, An Act

Concerning Electric Restructuring (the “1998 Act”), to encourage EDCs to

restructure their power generation assets to favor more environmentally friendly

energy production. The 1998 Act directed PURA to impose additional charges on

electricity sold to EDC customers, which would be used to fund energy

“conservation and load management programs.” J. App. 92. The 1998 Act also

established the Energy Funds, which include the Energy Conservation and Load

Management Fund (the “C&LM Fund”) and the Clean Energy Fund (the “CE

4 18-3533 Colon de Mejias v. Lamont

Fund”) to be used to implement these programs. Because PURA only regulates

EDCs, customers of municipal utilities do not pay these charges and are not

entitled to take advantage the programs the charges are intended to support.

The C&LM Fund supports programs that provide financial incentives to

Connecticut customers to reduce energy consumption. See Conn. Gen. Stat. § 16-

245(m) (describing the purpose and management structure of the C&LM Fund). 2

The monies in the C&LM Fund are used to help businesses and residential

customers access renewable energy programs and to “promote electric reliability

and reduce peak power usage, create jobs, help businesses compete, and reduce

harmful greenhouse gas emissions that contribute to global warming.” J. App. 93.

In paying the charges passed along in their electricity bills, EDC customers

contribute approximately $156 million annually into the C&LM Fund.

The CE Fund is managed by the Connecticut Green Bank (the “Green

Bank”), which is a “quasi-public” financial institution that “uses innovative

financing techniques and market development tools” in partnerships with the

private clean-energy sector. J. App. 94–95. The Green Bank may use CE Funds for

approved projects that promote clean energy investments. See § 16-245n(c)

2Unless otherwise noted, all references to statutes are to the General Statutes of Connecticut.

5 18-3533 Colon de Mejias v. Lamont

(describing the purpose and management structure of the CE Fund). EDC

customers pay approximately $27 million annually into the CE Fund.

Pursuant to sections 16-245m and 245n of the Connecticut General Statutes,

PURA approves three charges for the Energy Funds: two charges to support the

C&LM Fund and one charge to support the CE Fund. PURA incorporates these

charges into the approved rates in the tariffs. In turn, the EDCs pass on these

charges to their customers.

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963 F.3d 196, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colon-de-mejias-v-lamont-ca2-2020.