Colorado 2024 2024 Regular Session

Colorado House Bill HB1370 Introduced / Bill

Filed 03/11/2024

                    Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
 
 
LLS NO. 24-0411.04 Clare Haffner x6137
HOUSE BILL 24-1370
House Committees Senate Committees
Energy & Environment
A BILL FOR AN ACT
C
ONCERNING MEASURES TO REDUCE THE COST OF USE OF NATURAL101
GAS INFRASTRUCTURE .102
Bill Summary
(Note:  This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill requires the Colorado energy office to issue a request for
information by December 1, 2024, to solicit interest from local
governments that are served by a dual-fuel utility (utility) in becoming a
gas planning priority community (community). A gas planning priority
community is defined in the bill as a local government in which
constituents have gas service provided by a dual-fuel utility that formally
HOUSE SPONSORSHIP
Kipp and Willford,
SENATE SPONSORSHIP
(None),
Shading denotes HOUSE amendment.  Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. indicates an interest in working with the utility to mutually explore
opportunities for neighborhood-scale alternatives projects. A
neighborhood-scale alternatives project geographically targets
decommissioning of a portion of the gas distribution system or avoids
expanding the gas distribution system in order to serve new construction
projects and provides substitute energy service to buildings within the
project area that is cost-effective and reduces future greenhouse gas
emissions required to serve buildings.
By April 30, 2025, the Colorado energy office and the utility must
jointly file with the public utilities commission (commission) the results
of the request for information, identifying any proposed communities.
The Colorado energy office and the utility must also file a draft
agreement between the utility and a proposed community to identify and
pursue a neighborhood-scale alternatives project. The commission must
approve or modify the list of proposed communities by June 30, 2025.
By October 1, 2025, a utility and each approved community must
enter into an agreement, and the utility must submit to the commission a
list of the communities with which the utility has entered into an
agreement. For each approved community, the utility is required to
disclose certain information to the Colorado energy office, the
commission, and the community, including a map with information
regarding the utility's gas distribution and electric systems and operations
within the community.
The bill requires the utility to work with an approved community
to rank neighborhood-scale alternatives projects and, before June 1, 2026,
to submit at least one neighborhood-scale alternatives project in each
community to the commission for approval or an explanation of why no
neighborhood-scale alternatives project will be pursued in a community. 
By June 1 of each year following approval of a neighborhood-scale
alternatives project, a utility is required to submit a report to the
commission on the implementation of any approved neighborhood-scale
alternatives projects. The commission must allow the utility to recover
costs incurred from the implementation of a neighborhood-scale
alternatives project.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add article 3.3 to title2
40 as follows:3
ARTICLE 3.34
Gas Infrastructure Planning5
HB24-1370-2- 40-3.3-101.  Definitions. A	S USED IN THIS ARTICLE 3.3, UNLESS1
THE CONTEXT OTHERWISE REQUIRES :2
(1)  "A
LTERNATIVE ENERGY SERVICE " MEANS A RESIDENTIAL OR3
COMMERCIAL ENERGY SERVICE THAT DOES NOT USE GAS BUT IS ABLE TO4
MEET A CUSTOMER'S END USE NEED AND DOES NOT COMBUST GAS ON SITE5
IN DOING SO.6
(2)  "C
OLORADO ENERGY OFFICE" MEANS THE COLORADO ENERGY7
OFFICE CREATED IN SECTION 24-38.5-101.8
(3)  "D
ISTRIBUTION SYSTEM" HAS THE MEANING SET FORTH IN9
SECTION 40-2-115 (2)(b) AND INCLUDES THE PIPING AND ASSOCIATED10
FACILITIES USED TO DELIVER GEOLOGICAL GAS OR RECOVERED METHANE .11
(4)  "D
UAL-FUEL UTILITY" MEANS AN INVESTOR-OWNED UTILITY IN12
WHICH ONE COMPANY OR A SUBSIDIARY OF THE SAME COMPANY OPERATES13
BOTH AN ELECTRIC AND A GAS UTILITY THAT HAVE SERVICE TERRITORIES14
IN THE STATE WITH GREATER THAN FIFTY PERCENT OF THE CUSTOMERS IN15
THOSE TERRITORIES RECEIVING BOTH GAS AND ELECTRIC SERVICE FROM A16
UTILITY OPERATED BY THE COMPANY OR A SUBSIDIARY OF THE SAME17
COMPANY.18
(5)  "G
AS" MEANS NATURAL OR GEOLOGICAL GAS , RECOVERED19
METHANE, OR ANY MIXTURE OF NATURAL OR GEOLOGICAL GAS OR20
RECOVERED METHANE THAT IS TRANSPORTED BY A COMMON CARRIER OR21
DEDICATED PIPELINE, INCLUDING FLAMMABLE GAS; MANUFACTURED GAS;22
PETROLEUM OR OTHER HYDROCARBON GASSES , SUCH AS PROPANE; OR ANY23
MIXTURE OF GASES THAT IS INJECTED INTO A PIPELINE AND TRANSMITTED	,24
DISTRIBUTED, OR FURNISHED BY A UTILITY.25
(6)  "G
AS INFRASTRUCTURE PLAN" MEANS A REQUIREMENT FOR GAS26
UTILITIES ESTABLISHED BY THE COMMISSION THAT IS DESIGNED TO27
HB24-1370
-3- ESTABLISH A PROCESS TO DETERMINE THE NEED FOR , AND POTENTIAL1
ALTERNATIVES TO, CAPITAL INVESTMENT , CONSISTENT WITH THE2
OBJECTIVES OF MAINTAINING JUST AND REASONABLE RATES ; ENSURING3
SYSTEM SAFETY, RELIABILITY, AND RESILIENCY; AND PROTECTING4
INCOME-QUALIFIED UTILITY CUSTOMERS AND DISPROPORTIONATELY5
IMPACTED COMMUNITIES.6
(7)  "G
AS PLANNING PRIORITY COMMUNITY " MEANS A LOCAL7
GOVERNMENT IN WHICH CONSTITUENTS HAVE GAS SERVICE PROVIDED BY8
A DUAL-FUEL UTILITY THAT FORMALLY INDICATES AN INTEREST IN9
WORKING WITH A DUAL -FUEL UTILITY TO MUTUALLY EXPLORE10
OPPORTUNITIES FOR NEIGHBORHOOD -SCALE ALTERNATIVES PROJECTS ,11
INCLUDING THROUGH THE EXC HANGE OF UTILITY GAS INFRASTRUCTURE12
DATA AND COMMUNITY DEVELOPMENT PLANS .13
(8)  "G
REENHOUSE GAS REDUCTION GOALS " MEANS THE STATE'S14
GREENHOUSE GAS REDUCTION GOALS DESCRIBED IN SECTION 	25-7-10215
(2)(g).16
(9)  "I
NCOME-QUALIFIED UTILITY CUSTOMER" HAS THE MEANING17
SET FORTH IN SECTION 40-3-106 (1)(d)(II).18
(10)  "L
OCAL GOVERNMENT" MEANS A HOME RULE OR STATUTORY19
COUNTY, CITY, OR CITY AND COUNTY.20
(11)  "N
EIGHBORHOOD-SCALE ALTERNATIVES PROJECT" MEANS A21
PROJECT THAT GEOGRAPHICALLY TARGETS DECOMMISSIONING OF A22
PORTION OF THE GAS DISTRIBUTION SYSTEM OR AVOIDS EXPANDING THE23
GAS DISTRIBUTION SYSTEM IN ORDER TO SERVE NEW CONSTRUCTION24
PROJECTS AND PROVIDES ALTERNATIVE ENERGY SERVICE TO BUILDINGS25
WITHIN THE PROJECT AREA THAT IS COST-EFFECTIVE AND REDUCES FUTURE26
GREENHOUSE GAS EMISSIONS REQUIRED TO SERVE BUILDINGS .27
HB24-1370
-4- (12)  "NONEMITTING THERMAL RESOURCE " MEANS EFFICIENT1
THERMAL ENERGY FOR HEATING , COOLING, OR HOT WATER, WHICH2
ENERGY DOES NOT REQUIRE COMBUSTION OF GAS , SUCH AS AN AIR-SOURCE3
HEAT PUMP, A GROUND-SOURCE HEAT PUMP, A HEAT PUMP WATER HEATER,4
A THERMAL ENERGY SYSTEM , OR A THERMAL ENERGY NETWORK .5
(13)  "P
IPELINE SEGMENT" MEANS A DISCRETE PORTION OF THE6
DISTRIBUTION SYSTEM AND ALL ANCILLARY STRUCTURES , VALVES, AND7
OTHER SYSTEMS NEEDED TO DISTRIBUTE GAS . A PIPELINE SEGMENT MUST8
BE THE SMALLEST INCREMENTAL UNIT POSSIBLE , AS DEFINED BY PIPELINE9
MATERIALS, GEOGRAPHICAL FEATURES , AND THE DESIGN OF THE10
DISTRIBUTION SYSTEM.11
(14)  "T
HERMAL ENERGY NETWORK " HAS THE MEANING SET FORTH12
IN SECTION 40-3.2-108 (2)(s).13
(15)  "T
HERMAL ENERGY SYSTEM " HAS THE MEANING SET FORTH14
IN SECTION 40-3.2-108 (2)(t).15
40-3.3-102.  Request for information - gas planning priority16
community - disclosures. (1) (a)  B
Y DECEMBER 1, 2024, THE COLORADO17
ENERGY OFFICE SHALL ISSUE A REQUEST FOR INFORMATION TO IDENTIFY18
LOCAL GOVERNMENTS WHOSE RESIDENTS ARE SERVED BY A DUAL -FUEL19
UTILITY THAT ARE INTERESTED IN BECOMING A GAS PLANNING PRIORITY20
COMMUNITY.21
(b)  T
HE COLORADO ENERGY OFFICE SHALL INCLUDE IN THE22
REQUEST FOR INFORMATION THE MINIMUM CRITERIA THAT A LOCAL23
GOVERNMENT MUST MEET IN ORDER TO BECOME A GAS PLANNING24
PRIORITY COMMUNITY, INCLUDING:25
(I)  A
 DEMONSTRATION THAT DESIGNATION AS A GAS PLANNING26
PRIORITY COMMUNITY WOULD ALIGN WITH THE LOCAL GOVERNMENT 'S27
HB24-1370
-5- CLIMATE AND ENERGY AFFORDABILITY GOALS ; AND1
(II)  A
 COMMITMENT OF INTERNAL OR EXTERNAL STAFF RESOURCES2
TO IDENTIFY AND IMPLEMENT NEIGHBORHOOD -SCALE ALTERNATIVES3
PROJECTS.4
(c)  A
T LEAST THIRTY DAYS PRIOR TO ISSUING THE REQUEST FOR5
INFORMATION, THE COLORADO ENERGY OFFICE SHALL PUBLISH A DRAFT6
OF THE REQUEST FOR INFORMATION ON ITS WEBSITE AND PROVIDE AN7
OPPORTUNITY FOR THE PUBLIC TO SUBMIT WRITTEN COMMENTS .8
(2) (a)  B
Y APRIL 30, 2025, THE COLORADO ENERGY OFFICE AND A9
DUAL-FUEL UTILITY SHALL JOINTLY FILE WITH THE COMMISSION THE10
RESULTS OF THE REQUEST FOR INFORMATION REQUIRED BY SUBSECTION11
(1)(a) 
OF THIS SECTION, IDENTIFYING ANY PROPOSED GAS PLANNING12
PRIORITY COMMUNITIES, AND A DRAFT AGREEMENT BETWEEN THE13
DUAL-FUEL UTILITY AND ANY PROPOSED GAS PLANNING PRIORITY14
COMMUNITY, WHICH DRAFT AGREEMENT MUST :15
(I)  I
DENTIFY THE ROLES AND RESPONSIBILITIES OF THE DUAL-FUEL16
UTILITY AND THE PROPOSED GAS PL ANNING PRIORITY COMMUNITY IN17
IDENTIFYING NEIGHBORHOOD -SCALE ALTERNATIVES PROJECTS;18
(II)  I
DENTIFY TIME FRAMES FOR EACH PARTY TO FURNISH DATA OR19
RESPOND TO REQUESTS FOR DATA FROM THE OTHER PARTY ;20
(III)  I
NCLUDE ANY NECESSARY WAIVERS OF COMMISSION RULES TO21
FACILITATE DATA TRANSFER BETWEEN THE PARTIES ; AND22
(IV)  I
NCLUDE A PROCESS TO ADDRESS CONFLICTS BETWEEN THE23
TWO PARTIES.24
(b)  T
HE COMMISSION SHALL PROVIDE AN OPPORTUNITY FOR THE25
PUBLIC TO SUBMIT WRITTEN COMMENTS ON THE FILING .26
(c)  B
Y JUNE 30, 2025, THE COMMISSION SHALL APPROVE OR27
HB24-1370
-6- MODIFY THE LIST OF PROPOSED GAS PLANNING PRIORITY COMMUNITIES .1
(3)  B
Y OCTOBER 1, 2025, A DUAL-FUEL UTILITY SHALL ENTER INTO2
AN AGREEMENT WITH EACH LOCAL GOVERNMENT THAT HAS BEEN3
APPROVED AS A GAS PLANNING PRIORITY COMMUNITY AND SHALL SUBMIT4
TO THE COMMISSION A LIST OF THE GAS PLANNING PRIORITY COMMUNITIES5
WITH WHICH THE DUAL-FUEL UTILITY HAS ESTABLISHED AN AGREEMENT .6
(4) (a)  U
NLESS OTHERWISE DIRECTED BY THE COMMISSION OR7
REQUESTED BY THE GAS PLANNING PRIORITY COMMUNITY , A DUAL-FUEL8
UTILITY SHALL PROVIDE EACH GAS PLANNING PRIORITY COMMUNITY , THE9
COMMISSION, AND THE COLORADO ENERGY OFFICE WITH A MAP THAT10
INCLUDES THE FOLLOWING INFORMATION ABOUT THE DUAL -FUEL UTILITY'S11
DISTRIBUTION AND ELECTRIC SYSTEMS AND OPERATIONS WITHIN THE GAS12
PLANNING PRIORITY COMMUNITY :13
(I)  T
HE LOCATION OF, AGE OF, AND MATERIAL TYPES OF THE14
DISTRIBUTION SYSTEM AT THE PIPELINE SEGMENT LEVEL ;15
(II)  T
HE LOCATIONS OF CUSTOMER-OWNED SERVICE LINES;16
(III)  T
HE LOCATIONS OF DISTRIBUTION SYSTEM PIPELINES THAT17
ARE IDENTIFIED BY THE DUAL-FUEL UTILITY FOR UPRATING OR EXPANSION18
OR THAT ARE TARGETED FOR REPL ACEMENT PURSUANT TO THE MOST19
RECENTLY APPROVED GAS INFRASTRUCTURE PLAN ;20
(IV)  T
HE CLASSIFICATION OF EACH PIPELINE SEGMENT LOCATION21
PURSUANT TO 49 CFR 192.5;22
(V)  T
HE NUMBER OF CUSTOMERS, DESIGN DAY PEAK DEMAND, AND23
ANNUAL THROUGHPUT , DISAGGREGATED BY CUSTOMER CLASS SERVED BY24
EACH PIPELINE SEGMENT; AND25
(VI)  T
HE LOCATIONS OF DISPROPORTIONATELY IMPACTED26
COMMUNITIES AND THE IDENTIFICATION OF DISPROPORTIONATELY27
HB24-1370
-7- IMPACTED COMMUNITIES SERVED BY EACH PIPELINE SEGMENT .1
(b)  A
 DUAL-FUEL UTILITY SHALL PROVIDE GAS PLANNING PRIORITY2
COMMUNITY STAFF AND CONSULTANTS WHO HAVE SIGNED APPROPRIATE3
NONDISCLOSURE AGREEMENTS WITH ALL REQUESTED GAS AND ELECTRIC4
CUSTOMER USAGE AND PEAK DEMAND DATA DISAGGREGATED TO THE5
INDIVIDUAL CUSTOMER. THE DUAL-FUEL UTILITY SHALL PROVIDE SUCH6
INFORMATION WITHIN THE TIME FRAME ESTABLISHED PURSUANT TO7
SUBSECTION (2)(a)(II) OF THIS SECTION.8
(c)  T
HE INFORMATION DESCRIBED IN SUBSECTIONS (4)(a) AND9
(4)(b) 
OF THIS SECTION IS EXEMPT FROM THE "COLORADO OPEN RECORDS10
A
CT", PART 2 OF ARTICLE 72 OF TITLE 24.11
40-3.3-103.  Neighborhood-scale alternatives projects - cost12
recovery - reporting requirement. (1)  A
 DUAL-FUEL UTILITY SHALL13
WORK WITH A GAS PLANNING PRIORITY COMMUNITY TO RANK14
NEIGHBORHOOD-SCALE ALTERNATIVES PROJECTS WITHIN EACH GAS15
PLANNING PRIORITY COMMUNITY BASED ON LOCAL GOVERNMENT INPUT16
AND CONSIDERATION OF:17
(a)  T
HE NUMBER AND CUSTOMER CLASS SERVED BY EACH PIPELINE18
SEGMENT INCLUDED IN A NEIGHBORHOOD -SCALE ALTERNATIVES PROJECT;19
(b)  T
HE COST-EFFECTIVENESS OF THE NEIGHBORHOOD -SCALE20
ALTERNATIVES PROJECT USING THE COST -BENEFIT HANDBOOK FROM THE21
DUAL-FUEL UTILITY'S MOST RECENT GAS INFRASTRUCTURE PLAN ;22
(c)  T
HE AVAILABILITY OF ALTERNATIVE ENERGY SERVICE ,23
INCLUDING FOR SCENARIOS WITH ENHANCED GAS AND ELECTRIC DEMAND24
RESPONSE OR DEMAND FLEXIBILITY ;25
(d)  T
HE ABILITY OF THERMAL ENERGY NETWORKS TO SERVE THE26
AREA COVERED BY THE NEIGHBORHOOD -SCALE ALTERNATIVES PROJECT;27
HB24-1370
-8- (e)  WHETHER THE NEIGHBORHOOD -SCALE ALTERNATIVES PROJECT1
IS PART OF A NEW DEVELOPMENT OR WOULD SERVE EXISTING CUSTOMERS ,2
OR BOTH;3
(f)  T
HE PRIORITIZATION OF PIPELINE SEGMENTS THAT ARE PART OF4
PROJECTS INCLUDED IN A DUAL -FUEL UTILITY'S GAS INFRASTRUCTURE5
PLAN; AND6
(g)  T
HE LOCATION OF ANY NEARBY DISPROPORTIONATELY7
IMPACTED COMMUNITY OR PIPELINE SEGMENTS THAT SERVE8
DISPROPORTIONATELY IMPACTED COMMUNITIES .9
(2) (a)  P
RIOR TO JUNE 1, 2026, A DUAL-FUEL UTILITY SHALL:10
(I)  S
UBMIT, AS A STAND-ALONE APPLICATION, ONE OR MORE11
NEIGHBORHOOD-SCALE ALTERNATIVES PROJECTS IN EACH GAS PLANNING12
PRIORITY COMMUNITY TO THE COMMISSION FOR APPROVAL ; OR13
(II)  I
F THE DUAL-FUEL UTILITY WILL NOT PURSUE A14
NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT IN ONE OR MORE GAS15
PLANNING PRIORITY COMMUNITIES , PROVIDE THE COMMISSION WITH AN16
EXPLANATION AS TO WHY A NEIGHBORHOOD -SCALE ALTERNATIVES17
PROJECT WILL NOT BE PURSUED IN THAT COMMUNITY .18
(b)  T
HE COMMISSION SHALL PROVIDE AN OPPORTUNITY FOR PUBLIC19
COMMENT REGARDING THE DUAL -FUEL UTILITY'S SUBMISSION PURSUANT20
TO SUBSECTION (2)(a)(II) OF THIS SECTION.21
(c)  T
HE COMMISSION SHALL APPROVE A NEIGHBORHOOD -SCALE22
ALTERNATIVES PROJECT APPLICATION SUBMITTED BY A DUAL -FUEL23
UTILITY IF:24
(I)  T
HE PROJECT IS SUPPORTED BY A LOCAL GOVERNMENT25
ORDINANCE, PROCLAMATION, OR RESOLUTION;26
(II)  T
HE COMMISSION FINDS THAT THE PROJECT IS:27
HB24-1370
-9- (A)  CONSISTENT WITH THE STATE'S GREENHOUSE GAS REDUCTION1
GOALS; AND2
(B)  I
N THE PUBLIC INTEREST; AND3
(III)  T
HE COMMISSION FINDS THAT ALTERNATIVE ENERGY SERVICE4
IS AVAILABLE TO ALL CUSTOMERS WITHIN THE PROJECT AREA . IN MAKING5
THIS FINDING, THE COMMISSION SHALL CONSIDER:6
(A)  T
HE COST OF END USES POWERED BY DIFFERENT FUELS ,7
IMPACTS ON INCOME-QUALIFIED UTILITY CUSTOMERS AND CUSTOMERS8
LIVING IN DISPROPORTIONATELY IMPACTED COMMUNITIES , AND THE9
STATE'S GREENHOUSE GAS EMISSION REDUCTION GOALS ; AND10
(B)  E
XISTING UTILITY OR OTHER INCENTIVES TO SUPPORT11
CUSTOMER ADOPTION OF THE ALTERNATIVE ENERGY SERVICE .12
(3) (a)  T
HE COMMISSION SHALL ALLOW A DUAL -FUEL UTILITY TO13
RECOVER THE COSTS INCURRED DURING THE DEVELOPMENT OF A14
NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT , INCLUDING COSTS TO15
TRANSITION THE DISTRIBUTION SYSTEM , INVEST IN ELECTRIC16
INFRASTRUCTURE, AND PROVIDE CUSTOMER INCENTIVES. SUCH COSTS ARE17
FULLY RECOVERABLE REGARDLESS OF THE PERFORMANCE OF THE18
ALTERNATIVE ENERGY SERVICE .19
(b)  T
HE DUAL-FUEL UTILITY SHALL PROPOSE TO THE COMMISSION20
HOW COSTS WILL BE RECOVERED ACROSS THE DUAL -FUEL UTILITY'S21
ELECTRIC AND GAS BUSINESS.22
(c)  F
OR COMMUNITIES THAT ARE SERVED BY A DUAL -FUEL UTILITY23
BUT ARE NOT SERVED BY THE ELECTRIC UTILITY THAT IS PART OF THE24
DUAL-FUEL UTILITY, THE COMMISSION SHALL CONSIDER A COST-SHARING25
AGREEMENT, TO BE PROPOSED BY THE DUAL-FUEL UTILITY AND A LOCAL26
COOPERATIVE ELECTRIC ASSOCIATION OR MUNICIPALLY OWNED ELECTRIC27
HB24-1370
-10- UTILITY, THAT MAKES THE INCUMBENT GAS UTILITY THAT IS PART OF THE1
DUAL-FUEL UTILITY AND ITS CUSTOMERS WHOLE FOR ANY PROJECTS2
APPROVED BY THE COMMISSION WHEN THERE IS A COST SHIFT .3
(4)
  IN APPROVING A NEIGHBORHOOD SCALE ALTERNATIVES4
PROJECT, THE COMMISSION MAY MODIFY THE GAS UTILITY 'S SERVICE5
REQUIREMENT FOR SELECT PREMISES WITH AN ALTERNATIVE ENERGY6
SERVICE REQUIREMENT. THE COMMISSION MAY GRANT AN ALTERNATIVE7
ENERGY SERVICE REQUIREMENT FOR ANY CERTIFICATE OF PUBLIC8
CONVENIENCE AND NECESSITY TO PROVIDE SERVICE TO THE TARGETED9
AREA THAT IS THE SUBJECT OF THE NEIGHBORHOOD -SCALE ALTERNATIVES10
PROJECT IF THE COMMISSION FINDS THAT ALTERNATIVE ENERGY SERVICE11
IS AVAILABLE.12
(5) (a)  A
S PART OF A NEIGHBORHOOD -SCALE ALTERNATIVES13
PROJECT, A UTILITY MAY PROPOSE TO FUND CONVERSION OF EXISTING GAS14
APPLIANCES OR EQUIPMENT TO NONEMITTING THERMAL RESOURCES ,15
INCLUDING OFFERING INCREMENTAL INCENTIVES , FINANCING ABOVE THAT16
APPROVED FOR CLEAN HEAT PLANS , AS DEFINED IN SECTION 40-3.2-108,17
BENEFICIAL ELECTRIFICATION PLANS, AS DEFINED IN SECTION 40-3.2-109,18
DEMAND-SIDE MANAGEMENT PROGRAMS , AS DEFINED IN SECTION19
40-1-102,
 OR OTHER RELATED FILINGS.20
(b)  A
 DUAL-FUEL UTILITY MAY ALSO PROPOSE TO OFFER NEW RATE21
STRUCTURES TO PAY FOR THERMAL ENERGY NETWORKS OR OTHER22
NONEMITTING THERMAL RESOURCES AS AN ALTERNATIVE ENERGY23
SERVICE, WHERE CUSTOMERS PAY THE UTILITY FOR THERMAL ENERGY24
NETWORK SERVICES TO OFFSET THE INITIAL COST OF NEW APPLIANCES OR25
OTHER EQUIPMENT. A DUAL-FUEL UTILITY SHALL HAVE THE RIGHT OF26
FIRST REFUSAL TO OFFER THERMAL ENERGY NETWORK SERVICE AS PART27
HB24-1370
-11- OF A NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT.1
(6)  I
N REVIEWING PROJECTS WITH GAS PLANNING PRIORITY2
COMMUNITIES, A DUAL-FUEL UTILITY SHALL WAIVE THE PROJECT3
THRESHOLDS BELOW THOSE ESTABLISHED IN THE COMMISSION 'S GAS4
INFRASTRUCTURE PLANNING RULES . THIS ARTICLE 3.3 DOES NOT CHANGE5
GAS INFRASTRUCTURE PLANNING RULES OR REQUIREMENTS FOR6
NONPARTICIPATING COMMUNITIES OR CLEAN HEAT OR RELATED INCENTIVE7
LEVELS.8
(7)  B
Y JUNE 1 OF EACH YEAR FOLLOWING APPROVAL OF A9
NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT , A DUAL-FUEL UTILITY10
SHALL SUBMIT A REPORT TO THE COMMISSION ON THE IMPLEMENTATION11
OF THE NEIGHBORHOOD -SCALE ALTERNATIVES PROJECT . THE REPORT12
MUST INCLUDE, AT A MINIMUM:13
(a)  A
N UPDATE ON PROJECT IMPLEMENTATION ;14
(b)  A
N EXPLANATION OF CUSTOMER SATISFACTION WITH15
ALTERNATIVE ENERGY SERVICE ;16
(c)  A
CTUAL PROJECT COSTS INCURRED ; AND17
(d)  A
NY OTHER INFORMATION REQUIRED BY THE COMMISSION .18
(8)  B
Y JUNE 30, 2026, THE COMMISSION SHALL OPEN A19
MISCELLANEOUS PROCEEDING TO ADDRESS , OR SHALL ADDRESS IN AN20
EXISTING MISCELLANEOUS PROCEEDING , THE PROCESS AND21
CIRCUMSTANCES TO INTEGRATE NEIGHBORHOOD -SCALE ALTERNATIVES22
PROJECTS INTO THE GAS INFRASTRUCTURE PLANNING PROCESS . THIS MUST23
INCLUDE THE CRITERIA TO EXPAND TO COMMUNITIES THAT RECEIVE GAS24
SERVICE, BUT NOT ELECTRIC SERVICE, FROM A DUAL-FUEL UTILITY AND25
GAS-ONLY UTILITIES, AND ALSO ASSESSING THE REQUIREMENTS FOR LOCAL26
GOVERNMENTS AND THE UTILITY TO BRING FORWARD AND ASSESS27
HB24-1370
-12- PROJECTS BEYOND THOSE WITHIN THE INITIAL GAS PLANNING PRIORITY1
COMMUNITIES.2
SECTION 2. Act subject to petition - effective date. This act3
takes effect at 12:01 a.m. on the day following the expiration of the4
ninety-day period after final adjournment of the general assembly; except5
that, if a referendum petition is filed pursuant to section 1 (3) of article V6
of the state constitution against this act or an item, section, or part of this7
act within such period, then the act, item, section, or part will not take8
effect unless approved by the people at the general election to be held in9
November 2024 and, in such case, will take effect on the date of the10
official declaration of the vote thereon by the governor.11
HB24-1370
-13-