Governor Vetoes Bill Allowing DEEP Permit Rejection

Gov. Ned Lamont issued his final veto of the 2025 legislative session this week for a bill that allowed some localities to reject Department of Energy and Environmental Protection permits.

Passed in the session’s days through a floor amendment—and without public input—HB 7004 let residents of environmental justice communities with populations of less than 16,000 petition for a referendum to reverse DEEP permit decisions.

Environmental justice communities are distressed municipalities or any U.S. census block group where at least 30% of the population who are not institutionalized has incomes 200% below the federal poverty level. 

Allowing permit rejections upends years of investments by businesses in the permitting process, with the additional potential for stripping existing permits that are essential for facility operations. 

While seldom invoked, current law allows referendums challenging DEEP permit denials in environmental justice communities located in towns with populations under 10,000.

‘Unintended Consequences’

HB 7004 expanded the law to include environmental justice communities with up to 16,000 residents and allowed for a referendum challenging not just the denial of a permit, but also the approval of a permit.

Under the bill, another two dozen communities could petition for a referendum.

Lamont noted that “all of DEEP’s permitting processes offer opportunities for the public to submit comments and request hearings.”

“The mechanism proposed in this bill could have unintended consequences that weaken critical protections for environmental justice communities.”

Gov. Ned Lamont

“It’s important to note that today’s permitting process offers extensive opportunity for public engagement,” he wrote in his veto letter.

“I am concerned that the mechanism proposed in this bill—allowing a local referendum to reverse certain permit approvals or denials issued by the Department of Energy and Environmental Protection—could have unintended consequences that weaken critical protections for environmental justice communities and create harmful uncertainty for our business community that could hamper investment in Connecticut.” 

Under existing law, applicants must already facilitate “meaningful public participation” in the regulatory process by conducting community engagement and an informal public hearing allowing for public comment that DEEP must consider.

‘Stifle Growth’

Additionally, existing law and regulations require DEEP’s careful consideration of cumulative impacts on public health and the environment in the state’s environment justice communities. 

CBIA joined member companies and the construction trade unions in opposing the bill and advocated for the governor to veto the legislation.  

“The uncertainty created by the proposed process and the potential for revoking long approved permits would stifle economic growth.”

CBIA’s Chris Davis

“Connecticut’s employers need predictability and a fair, objective review of all permit applications to make investments in our state,” said CBIA’s Chris Davis.

“HB 7004 undermined an already costly and lengthy permitting process, directly leading to less investment and halting many job-creating projects currently in the application process.

“We applaud the governor’s veto as the uncertainty created by the proposed process and the potential for revoking long approved permits would stifle economic growth.” 

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For more information, contact CBIA’s CBIA’s Chris Davis (860.244.1931).