Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 24-0411.04 Clare Haffner x6137
HOUSE BILL 24-1370
House Committees Senate Committees
Energy & Environment
Appropriations
A BILL FOR AN ACT
C
ONCERNING MEASURES TO REDUCE THE COST OF USE OF NATURAL101
GAS
INFRASTRUCTURE, AND, IN CONNECTION THEREWITH,102
MAKING AN APPROPRIATION .103
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
HOUSE
3rd Reading Unamended
April 25, 2024
HOUSE
Amended 2nd Reading
April 24, 2024
HOUSE SPONSORSHIP
Kipp and Willford, Boesenecker, Brown, Epps, Garcia, Herod, Jodeh, Joseph, Lindsay,
Mabrey, Marvin, Ortiz, Parenti, Ricks, Rutinel, Sirota, Story, Valdez, Vigil, Woodrow
SENATE SPONSORSHIP
Winter F.,
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. constituents have gas service provided by a dual-fuel utility that formally
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
1370-2- 40-3.3-101. Definitions. AS USED IN THIS ARTICLE 3.3, UNLESS1
THE CONTEXT OTHERWISE REQUIRES :2
(1) "ALTERNATIVE ENERGY SERVICE" MEANS A LOW- OR3
ZERO-CARBON RESIDENTIAL, COMMERCIAL, OR INDUSTRIAL ENERGY4
SERVICE THAT IS ABLE TO MEET A CUSTOMER'S END USE NEED AND DOES5
NOT COMBUST METHANE-, PROPANE-, OR PETROLEUM-DERIVED GAS ON6
SITE IN DOING SO.7
(2) "COLORADO ENERGY OFFICE" MEANS THE COLORADO ENERGY8
OFFICE CREATED IN SECTION 24-38.5-101.9
(3) "DISTRIBUTION SYSTEM" HAS THE MEANING SET FORTH IN10
SECTION 40-2-115 (2)(b) AND INCLUDES THE PIPING AND ASSOCIATED11
FACILITIES USED TO DELIVER GEOLOGICAL GAS OR RECOVERED METHANE.12
(4) "DUAL-FUEL UTILITY" MEANS AN INVESTOR-OWNED UTILITY IN13
WHICH ONE COMPANY OR A SUBSIDIARY OF THE SAME COMPANY OPERATES14
BOTH AN ELECTRIC AND A GAS UTILITY THAT HAVE SERVICE TERRITORIES15
IN THE STATE WHERE GREATER THAN FIFTY PERCENT OF ALL CUSTOMERS16
IN THOSE TERRITORIES RECEIVE BOTH GAS AND ELECTRIC SERVICE FROM17
A UTILITY OPERATED BY THAT COMPANY OR A SUBSIDIARY OF THE SAME18
COMPANY.19
(5) "GAS" MEANS NATURAL OR GEOLOGICAL GAS , RECOVERED20
METHANE, OR ANY MIXTURE OF NATURAL OR GEOLOGICAL GAS OR21
RECOVERED METHANE THAT IS TRANSPORTED BY A COMMON CARRIER OR22
DEDICATED PIPELINE, INCLUDING FLAMMABLE GAS; MANUFACTURED GAS;23
PETROLEUM OR OTHER HYDROCARBON GASES, SUCH AS PROPANE; OR ANY24
MIXTURE OF FOSSIL GASES THAT IS INJECTED INTO A PIPELINE AND25
TRANSMITTED, DISTRIBUTED, OR FURNISHED BY A UTILITY.26
(6) "GAS INFRASTRUCTURE PLAN" MEANS A REQUIREMENT FOR GAS27
1370
-3- UTILITIES ESTABLISHED BY THE COMMISSION THAT IS DESIGNED TO1
ESTABLISH A PROCESS TO DETERMINE THE NEED FOR , AND POTENTIAL2
ALTERNATIVES TO, CAPITAL INVESTMENT, CONSISTENT WITH THE3
OBJECTIVES OF MAINTAINING JUST AND REASONABLE RATES ; ENSURING4
SYSTEM SAFETY, RELIABILITY, AND RESILIENCY; AND PROTECTING5
INCOME-QUALIFIED UTILITY CUSTOMERS AND DISPROPORTIONATELY6
IMPACTED COMMUNITIES.7
(7) "GAS PLANNING PILOT COMMUNITY" MEANS A LOCAL8
GOVERNMENT IN WHICH CONSTITUENTS HAVE GAS SERVICE PROVIDED BY9
A DUAL-FUEL UTILITY AND AN ACTIVE FRANCHISE AGREEMENT WITH THE10
DUAL-FUEL UTILITY, WHICH LOCAL GOVERNMENT FORMALLY INDICATES11
AN INTEREST IN WORKING WITH THE DUAL-FUEL UTILITY TO MUTUALLY12
EXPLORE OPPORTUNITIES FOR NEIGHBORHOOD-SCALE ALTERNATIVES13
PROJECTS, INCLUDING THROUGH THE EXCHANGE OF UTILITY GAS14
INFRASTRUCTURE DATA AND COMMUNITY DEVELOPMENT PLANS .15
(8) "GREENHOUSE GAS REDUCTION GOALS" MEANS THE STATE'S16
GREENHOUSE GAS REDUCTION GOALS DESCRIBED IN SECTION 25-7-10217
(2)(g).18
(9) "INCOME-QUALIFIED UTILITY CUSTOMER" HAS THE MEANING19
SET FORTH IN SECTION 40-3-106 (1)(d)(II).20
(10) "LOCAL GOVERNMENT" MEANS A HOME RULE OR STATUTORY21
COUNTY, CITY, OR CITY AND COUNTY.22
(11) "NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT" MEANS A23
PROJECT IN A GAS PLANNING PILOT COMMUNITY :24
(a) WHERE A DUAL-FUEL UTILITY:25
(I) PROVIDES BOTH GAS AND ELECTRIC SERVICE ;26
(II) PROVIDES GAS SERVICE AND A MUNICIPALLY OWNED UTILITY27
1370
-4- OPERATED BY THE GAS PLANNING PILOT COMMUNITY PROVIDES ELECTRIC1
SERVICE; OR2
(III) PROVIDES GAS SERVICE AND A COOPERATIVE ELECTRIC3
ASSOCIATION THAT SERVES A GAS PLANNING PILOT COMMUNITY HAS4
VOLUNTARILY PARTNERED WITH THE DUAL -FUEL UTILITY; AND5
(b) THAT GEOGRAPHICALLY TARGETS DECOMMISSIONING A6
PORTION OF THE GAS DISTRIBUTION SYSTEM OR AVOIDS EXPANDING THE7
GAS DISTRIBUTION SYSTEM IN ORDER TO SERVE NEW CONSTRUCTION8
PROJECTS AND PROVIDES ALTERNATIVE ENERGY SERVICE TO BUILDINGS9
WITHIN THE PROJECT AREA THAT REDUCES FUTURE GREENHOUSE GAS10
EMISSIONS REQUIRED TO SERVE BUILDINGS .11
(12) "NONEMITTING THERMAL RESOURCE" MEANS EFFICIENT12
THERMAL ENERGY FOR HEATING, COOLING, OR HOT WATER, WHICH13
ENERGY DOES NOT REQUIRE COMBUSTION OF GAS , SUCH AS AN AIR-SOURCE14
HEAT PUMP, AS DEFINED IN SECTION 39-22-554 (2)(a); A GROUND-SOURCE15
HEAT PUMP, AS DEFINED IN SECTION 39-22-554 (2)(g); A HEAT PUMP16
WATER HEATER; A THERMAL ENERGY SYSTEM; OR A THERMAL ENERGY17
NETWORK.18
(13) "PIPELINE SEGMENT" MEANS A DISCRETE PORTION OF THE19
DISTRIBUTION SYSTEM AND ALL ANCILLARY STRUCTURES, VALVES, AND20
OTHER SYSTEMS NEEDED TO DISTRIBUTE GAS. A PIPELINE SEGMENT MUST21
BE THE SMALLEST INCREMENTAL UNIT POSSIBLE, AS DEFINED BY PIPELINE22
MATERIALS, GEOGRAPHICAL FEATURES, AND THE DESIGN OF THE23
DISTRIBUTION SYSTEM.24
(14) "THERMAL ENERGY NETWORK" HAS THE MEANING SET FORTH25
IN SECTION 40-3.2-108 (2)(s).26
(15) "THERMAL ENERGY SYSTEM" HAS THE MEANING SET FORTH27
1370
-5- IN SECTION 40-3.2-108 (2)(t).1
40-3.3-102. Request for information - gas planning pilot2
community - disclosures - repeal. (1) (a) BY DECEMBER 1, 2024, THE3
COLORADO ENERGY OFFICE SHALL ISSUE A REQUEST FOR INFORMATION TO4
IDENTIFY LOCAL GOVERNMENTS WHOSE RESIDENTS ARE SERVED BY A5
DUAL-FUEL UTILITY THAT ARE INTERESTED IN BECOMING A GAS PLANNING6
PILOT COMMUNITY.7
(b) THE COLORADO ENERGY OFFICE SHALL INCLUDE IN THE8
REQUEST FOR INFORMATION THE MINIMUM CRITERIA THAT A LOCAL9
GOVERNMENT MUST MEET IN ORDER TO BECOME A GAS PLANNING PILOT10
COMMUNITY, INCLUDING:11
(I) A DEMONSTRATION THAT DESIGNATION AS A GAS PLANNING12
PILOT COMMUNITY WOULD ALIGN WITH THE LOCAL GOVERNMENT'S13
CLIMATE AND ENERGY AFFORDABILITY GOALS ;14
(II) A WILLINGNESS TO PROMOTE NEIGHBORHOOD -SCALE15
ALTERNATIVES PROJECTS AND TO SUPPORT, ENGAGE, AND EDUCATE16
RESIDENTS WITHIN A COMMUNITY FOR WHICH A NEIGHBORHOOD -SCALE17
ALTERNATIVES PROJECT IS PROPOSED PRIOR TO APPROVAL BY THE18
COMMISSION; AND19
(III) A COMMITMENT OF INTERNAL OR EXTERNAL STAFF20
RESOURCES TO IDENTIFY AND IMPLEMENT NEIGHBORHOOD -SCALE21
ALTERNATIVES PROJECTS.22
(c) AT LEAST THIRTY DAYS PRIOR TO ISSUING THE REQUEST FOR23
INFORMATION, THE COLORADO ENERGY OFFICE SHALL PUBLISH A DRAFT24
OF THE REQUEST FOR INFORMATION ON ITS WEBSITE AND PROVIDE AN25
OPPORTUNITY FOR THE PUBLIC TO SUBMIT WRITTEN COMMENTS .26
(2) (a) BY APRIL 30, 2025, THE COLORADO ENERGY OFFICE AND A27
1370
-6- DUAL-FUEL UTILITY SHALL JOINTLY FILE WITH THE COMMISSION THE1
RESULTS OF THE REQUEST FOR INFORMATION REQUIRED BY SUBSECTION2
(1)(a) OF THIS SECTION, IDENTIFYING UP TO FIVE PROPOSED GAS PLANNING3
PILOT COMMUNITIES. IN IDENTIFYING PROPOSED GAS PLANNING PILOT4
COMMUNITIES, THE COLORADO ENERGY OFFICE AND A DUAL-FUEL UTILITY5
SHALL PRIORITIZE LOCAL GOVERNMENTS THAT ARE INTERESTED IN6
PURSUING THERMAL ENERGY NETWORK OR GEOTHERMAL ENERGY7
PROJECTS AS PART OF THE PROPOSED GAS PLANNING PILOT COMMUNITY'S8
EVALUATION OF ANY POTENTIAL NEIGHBORHOOD-SCALE ALTERNATIVES9
PROJECT PURSUANT TO SECTION 40-3.3-103. THE COLORADO ENERGY10
OFFICE AND THE DUAL-FUEL UTILITY SHALL ALSO JOINTLY FILE A DRAFT11
AGREEMENT BETWEEN THE DUAL -FUEL UTILITY AND ANY PROPOSED GAS12
PLANNING PILOT COMMUNITY , WHICH DRAFT AGREEMENT MUST :13
(I) IDENTIFY THE ROLES AND RESPONSIBILITIES OF THE DUAL-FUEL14
UTILITY AND THE PROPOSED GAS PLANNING PILOT COMMUNITY IN15
IDENTIFYING NEIGHBORHOOD -SCALE ALTERNATIVES PROJECTS;16
(II) IDENTIFY TIME FRAMES FOR EACH PARTY TO FURNISH DATA OR17
RESPOND TO REQUESTS FOR DATA FROM THE OTHER PARTY ;18
(III) INCLUDE ANY NECESSARY WAIVERS OF COMMISSION RULES TO19
FACILITATE DATA TRANSFER BETWEEN THE PARTIES ;20
(IV) INCLUDE A PROCESS TO ADDRESS CONFLICTS BETWEEN THE21
TWO PARTIES; AND22
(V) INDICATE WHETHER THE PROPOSED GAS PLANNING PILOT23
COMMUNITY HAS DEMONSTRATED AN INTEREST IN PURSUING THERMAL24
ENERGY NETWORK OR GEOTHERMAL ENERGY PROJECTS .25
(b) THE COMMISSION SHALL PROVIDE AN OPPORTUNITY FOR THE26
PUBLIC TO SUBMIT WRITTEN COMMENTS ON THE FILING .27
1370
-7- (c) BY JUNE 30, 2025, THE COMMISSION SHALL APPROVE OR1
MODIFY THE LIST OF PROPOSED GAS PLANNING PILOT COMMUNITIES;2
EXCEPT THAT THE COMMISSION SHALL NOT INCREASE THE NUMBER OF3
PROPOSED GAS PLANNING PILOT COMMUNITIES BEYOND FIVE .4
(3) BY OCTOBER 1, 2025, A DUAL-FUEL UTILITY SHALL ENTER INTO5
AN AGREEMENT WITH EACH LOCAL GOVERNMENT THAT HAS BEEN6
APPROVED AS A GAS PLANNING PILOT COMMUNITY AND SHALL SUBMIT TO7
THE COMMISSION A LIST OF THE GAS PLANNING PILOT COMMUNITIES WITH8
WHICH THE DUAL-FUEL UTILITY HAS ESTABLISHED AN AGREEMENT . THE9
DUAL-FUEL UTILITY AND LOCAL GOVERNMENT MAY AGREE TO EXTEND10
THIS DEADLINE.11
(4) SUBSECTIONS (1) TO (3) OF THIS SECTION ARE REPEALED,12
EFFECTIVE JUNE 1, 2028.13
(5) (a) UNLESS OTHERWISE DIRECTED BY THE COMMISSION OR14
REQUESTED BY THE GAS PLANNING PILOT COMMUNITY, A DUAL-FUEL15
UTILITY SHALL PROVIDE EACH GAS PLANNING PILOT COMMUNITY, THE16
COMMISSION, AND THE COLORADO ENERGY OFFICE WITH DATA AND17
INFORMATION TO INFORM THE EVALUATION OF POTENTIAL18
NEIGHBORHOOD-SCALE ALTERNATIVES PROJECTS THAT INCLUDES :19
(I) THE LOCATION OF ANY PLANNED GAS INFRASTRUCTURE20
PROJECTS IN THE GAS PLANNING PILOT COMMUNITY WITHIN THE SIX-YEAR21
GAS PROJECT PLANNING FORECAST IN THE DUAL -FUEL UTILITY'S MOST22
RECENTLY APPROVED GAS INFRASTRUCTURE PLAN OR IDENTIFIED BY THE23
DUAL-FUEL UTILITY FOR INCLUSION IN A FUTURE GAS INFRASTRUCTURE24
PLAN TO THE EXTENT AVAILABLE; AND25
(II) THE FOLLOWING INFORMATION REGARDING THE PLANNED GAS26
INFRASTRUCTURE PROJECTS DESCRIBED IN SUBSECTION (5)(a)(I) OF THIS27
1370
-8- SECTION:1
(A) THE PROJECT NAME;2
(B) THE PROJECT CATEGORY, CONSISTENT WITH THE PLANNED3
PROJECTS CATEGORIES DESCRIBED IN APPLICABLE COMMISSION RULES ;4
(C) A DESCRIPTION OF THE GENERAL SCOPE OF WORK AND AN5
EXPLANATION OF THE NEED FOR THE PROJECT, INCLUDING ANY6
APPLICABLE CODE REQUIREMENTS OF THE UNITED STATES DEPARTMENT7
OF TRANSPORTATION'S PIPELINE AND HAZARDOUS MATERIALS SAFETY8
ADMINISTRATION;9
(D) THE PROJECTED LIFE OF THE PROJECT;10
(E) AN INDICATION OF WHETHER THE PROJECT IS PRESENTED AS A11
GAS INFRASTRUCTURE PLAN ACTION PERIOD PROJECT OR A GAS12
INFRASTRUCTURE PLAN INFORMATIONAL PERIOD PROJECT PURSUANT TO13
APPLICABLE COMMISSION RULES ;14
(F) THE ANTICIPATED: CONSTRUCTION START DATE FOR THE15
PROJECT; CONSTRUCTION PERIOD FOR THE PROJECT, INCLUDING AN16
INDICATION OF ANY CONSTRUCTION PHASES; AND IN-SERVICE DATE FOR17
THE PROJECT;18
(G) THE COST-ESTIMATE CLASSIFICATION FOR THE PROJECT, USING19
THE DUAL-FUEL UTILITY'S OR AN INDUSTRY-ACCEPTED COST-ESTIMATE20
CLASSIFICATION INDEX ; SUPPORT FOR THE COST -ESTIMATE21
CLASSIFICATION; AND THE TOTAL COST ESTIMATE FOR THE PROJECT ;22
(H) THE TECHNICAL DETAILS OF THE PROJECT, SUCH AS THE23
PHYSICAL EQUIPMENT CHARACTERISTICS OF THE PROPOSED FACILITIES ,24
PIPELINE LENGTH, PIPELINE DIAMETER, PROJECT MATERIALS, AND25
MAXIMUM ALLOWABLE OPERATING PRESSURE ;26
(I) THE PROJECT LOCATION AND AN ILLUSTRATIVE MAP OF THE GAS27
1370
-9- DISTRIBUTION SYSTEM FACILITIES , SUBJECT TO NECESSARY1
CONFIDENTIALITY PROVISIONS, INCLUDING: THE PRESSURE DISTRICT OR2
GEOGRAPHIC AREA THAT REQUIRES THE PROPOSED FACILITIES, THE3
EXISTING AND PROPOSED REGULATOR STATIONS AND EXISTING AND4
PROPOSED DISTRIBUTION PIPING AND HIGHER CAPACITY PIPELINES SERVED5
BY OR REPRESENTING THE PROPOSED FACILITIES, THE LOCATIONS OF ANY6
NEARBY DISPROPORTIONATELY IMPACTED COMMUNITIES , AND ANY OTHER7
INFORMATION NECESSARY TO ALLOW THE LOCAL GOVERNMENT TO MAKE8
A THOROUGH EVALUATION OF THE PROJECT ;9
(J) TO THE EXTENT PRACTICABLE, THE NUMBER OF CUSTOMERS,10
ANNUAL SALES , AND DESIGN PEAK DEM AND REQUIREMENTS ,11
DISAGGREGATED BY CUSTOMER CLASS , POTENTIALLY DIRECTLY IMPACTED12
OR SERVED BY THE PROJECT;13
(K) ANY PERMITS REQUIRED FOR WORK ON THE PROJECT TO BEGIN;14
AND15
(L) ANY ENVIRONMENTAL REQUIREMENTS ASSOCIATED WITH16
COMPLETION OF THE PROJECT.17
(b) A DUAL-FUEL UTILITY SHALL PROVIDE GAS PLANNING PILOT18
COMMUNITY STAFF AND CONSULTANTS, WHO HAVE SIGNED APPROPRIATE19
NONDISCLOSURE AGREEMENTS, WITH ALL REQUESTED GAS AND ELECTRIC20
CUSTOMER USAGE AND DESIGN PEAK DEMAND DATA , TO THE EXTENT21
AVAILABLE AND DISAGGREGATED TO THE INDIVIDUAL CUSTOMER, FOR ALL22
PLANNED GAS INFRASTRUCTURE PROJECTS LOCATED IN A GAS PLANNING23
PILOT COMMUNITY WITHIN THE SIX-YEAR GAS PROJECT PLANNING24
FORECAST IN THE DUAL-FUEL UTILITY'S MOST RECENTLY APPROVED GAS25
INFRASTRUCTURE PLAN OR IDENTIFIED BY THE DUAL-FUEL UTILITY FOR26
INCLUSION IN A FUTURE GAS INFRASTRUCTURE PLAN. THE DUAL-FUEL27
1370
-10- UTILITY SHALL PROVIDE SUCH INFORMATION WITHIN THE RELEVANT TIME1
FRAME ESTABLISHED PURSUANT TO SUBSECTION (2)(a)(II) OF THIS2
SECTION.3
(c) THE INFORMATION DESCRIBED IN SUBSECTIONS (5)(a) AND4
(5)(b) OF THIS SECTION IS EXEMPT FROM THE "COLORADO OPEN RECORDS5
ACT", PART 2 OF ARTICLE 72 OF TITLE 24.6
40-3.3-103. Neighborhood-scale alternatives projects - cost7
recovery - reporting requirement. (1) A DUAL-FUEL UTILITY SHALL8
WORK WITH A GAS PLANNING PILOT COMMUNITY TO RANK AND PRIORITIZE9
NEIGHBORHOOD-SCALE ALTERNATIVES PROJECTS WITHIN EACH GAS10
PLANNING PILOT COMMUNITY BASED ON LOCAL GOVERNMENT INPUT AND11
CONSIDERATION OF:12
(a) THE NUMBER AND CUSTOMER CLASS SERVED BY EACH PIPELINE13
SEGMENT INCLUDED IN A NEIGHBORHOOD -SCALE ALTERNATIVES PROJECT;14
(b) THE DEGREE OF SUPPORT FOR THE NEIGHBORHOOD -SCALE15
ALTERNATIVES PROJECT FROM CUSTOMERS POTENTIALLY IMPACTED BY16
THE PROJECT, WITH PREFERENCE GIVEN TO THOSE PROJECTS THAT HAVE17
FULL SUPPORT FROM POTENTIA LLY IMPACTED CUSTOMERS ;18
(c) THE COST-EFFECTIVENESS OF THE NEIGHBORHOOD -SCALE19
ALTERNATIVES PROJECT, USING THE COST-BENEFIT HANDBOOK FROM THE20
DUAL-FUEL UTILITY'S MOST RECENT GAS INFRASTRUCTURE PLAN ;21
(d) THE NET COST TO CUSTOMERS POTENTIALLY PARTICIPATING IN22
THE NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT;23
(e) THE AVAILABILITY OF ALTERNATIVE ENERGY SERVICE,24
INCLUDING FOR SCENARIOS WITH ENHANCED GAS AND ELECTRIC DEMAND25
RESPONSE OR DEMAND FLEXIBILITY ;26
(f) THE ABILITY OF THERMAL ENERGY NETWORKS TO SERVE THE27
1370
-11- AREA COVERED BY THE NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT,1
WITH PRIORITY GIVEN TO PROJECTS THAT INCLUDE A THERMAL ENERGY2
NETWORK OR A GEOTHERMAL ENERGY PROJECT ;3
(g) WHETHER THE NEIGHBORHOOD -SCALE ALTERNATIVES PROJECT4
IS PART OF A NEW DEVELOPMENT OR WOULD SERVE EXISTING CUSTOMERS,5
OR BOTH;6
(h) THE PRIORITIZATION OF PIPELINE SEGMENTS THAT ARE PART OF7
PROJECTS INCLUDED IN A DUAL-FUEL UTILITY'S GAS INFRASTRUCTURE8
PLAN OR OTHERWISE IDENTIFIED BY THE DUAL -FUEL UTILITY FOR9
INCLUSION IN A FUTURE GAS INFRASTRUCTURE PLAN, TO THE EXTENT THIS10
INFORMATION IS AVAILABLE; AND11
(i) THE LOCATION OF ANY NEARBY DISPROPORTIONATELY12
IMPACTED COMMUNITY OR PIPELINE SEGMENTS THAT SERVE13
DISPROPORTIONATELY IMPACTED COMMUNITIES .14
(2) (a) (I) PRIOR TO JUNE 1, 2026, A DUAL-FUEL UTILITY AND15
LOCAL GOVERNMENT SHALL JOINTLY SUBMIT FOR APPR OVAL AT LEAST ONE16
INITIAL NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT, TO BE LOCATED17
WITHIN A GAS PLANNING PILOT COMMUNITY , TO THE COMMISSION IF THE18
NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT HAS THE FULL SUPPORT OF19
POTENTIALLY AFFECTED CUSTOMERS. THE FILING MUST ALSO CONTAIN A20
LIST OF POTENTIAL PROJECTS THAT ARE RANKED HIGHLY BUT DO NOT21
HAVE FULL CUSTOMER SUPPORT AT THE TIME OF THE FILING .22
(II) PRIOR TO JUNE 1, 2027, A DUAL-FUEL UTILITY AND A LOCAL23
GOVERNMENT SHALL JOINTLY SUBMIT FOR COMMISSION APPROVAL THE24
NEIGHBORHOOD-SCALE ALTERNATIVES PROJECTS INCLUDED ON THE LIST25
IN THE FILING SUBMITTED PURSUANT TO SUBSECTION (2)(a)(I) OF THIS26
SECTION AND THAT WILL BE PURSUED IN A GAS PLANNING PILOT27
1370
-12- COMMUNITY, WHICH PROJECTS MAY LACK FULL CUSTOMER SUPPORT IF THE1
LOCAL GOVERNMENT HAS D ETERMINED THAT A REASONABLE MAJORITY OF2
CUSTOMERS SUPPORTS THE PROJECT. THE LOCAL GOVERNMENT SHALL3
DETERMINE WHAT CONSTITUTES A REASONABLE MAJORITY. THE4
DETERMINATION OF A REASONABLE MAJORITY OF CUSTOMER SUPPORT AND5
EFFORTS TO OBTAIN CUSTOMER CONSENT MUST BE SUPPORTED BY A6
SWORN AFFIDAVIT OR TESTIMONY FROM AN OFFICIAL EMPLOYEE OF THE7
LOCAL GOVERNMENT AS PART OF THE JOINT APPLICATION TO THE8
COMMISSION. THE JOINT APPLICATION MUST ALSO INCLUDE THE NET COSTS9
OF THE PROJECTS, INCLUDING ANY:10
(A) STATE OR FEDERAL FUNDING OR TAX CREDITS ;11
(B) GAS PLANNING PILOT COMMUNITY INCENTIVES OR FUNDING ;12
(C) EXISTING DUAL-FUEL UTILITY PROGRAM FUNDING ;13
(D) ADDITIONAL DUAL-FUEL UTILITY INCENTIVES OR FUNDING;14
(E) CUSTOMER CONTRIBUTIONS ; AND15
(F) ANTICIPATED TOTAL CAPITAL EXPENDITURES BY THE16
DUAL-FUEL UTILITY AND CUSTOMERS, AVOIDED UTILITY CAPITAL17
EXPENDITURES, AND FUTURE DISCOUNTED CUSTOMER UTILITY BILL18
SAVINGS OR EXPENSES.19
(III) IF A DUAL-FUEL UTILITY WILL NOT PURSUE A20
NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT IN ONE OR MORE GAS21
PLANNING PILOT COMMUNITIES, THE DUAL-FUEL UTILITY AND LOCAL22
GOVERNMENT, PRIOR TO JUNE 1, 2027, SHALL JOINTLY FILE A REPORT WITH23
THE COMMISSION EXPLAINING WHY A NEIGHBORHOOD -SCALE24
ALTERNATIVES PROJECT WILL NOT BE PURSUED IN THAT COMMUNITY .25
(b) THE COMMISSION SHALL PROVIDE AN OPPORTUNITY FOR PUBLIC26
COMMENT REGARDING THE DUAL-FUEL UTILITY'S SUBMISSION PURSUANT27
1370
-13- TO SUBSECTION (2)(a)(III) OF THIS SECTION.1
(c) THE COMMISSION SHALL APPROVE A NEIGHBORHOOD-SCALE2
ALTERNATIVES PROJECT APPLICATION SUBMITTED BY A DUAL -FUEL3
UTILITY IF:4
(I) THE PROJECT IS SUPPORTED BY A LOCAL GOVERNMENT5
ORDINANCE, PROCLAMATION, OR RESOLUTION;6
(II) THE COMMISSION FINDS THAT THE PROJECT IS:7
(A) CONSISTENT WITH THE STATE'S GREENHOUSE GAS REDUCTION8
GOALS; AND9
(B) IN THE PUBLIC INTEREST, CONSIDERING COSTS AND BENEFITS10
TO THE GAS PLANNING PILOT COMMUNITY , PARTICIPATING CUSTOMERS,11
AND RATEPAYERS WITHIN THE DUAL-FUEL UTILITY'S GAS SERVICE12
TERRITORY AND ANY COST SHIFT BETWEEN PARTICIPATING CUSTOMERS13
AND ALL RATEPAYERS OF THE DUAL -FUEL UTILITY, WITH PREFERENCE14
GIVEN TO PROJECTS THAT RESULT IN NO COST SHIFT TO NONPARTICIPATING15
CUSTOMERS;16
(III) THE APPROVED PORTFOLIO OF NEIGHBORHOOD -SCALE17
ALTERNATIVES PROJECTS PROVIDES AN APPROPRIATE MIX OF18
TECHNOLOGIES, CUSTOMER CLASSES, AND NEW CONSTRUCTION AND19
EXISTING BUILDINGS AND INCLUDES THE USE OF THERMAL ENERGY20
NETWORKS OR GEOTHERMAL ENERGY PROJECTS ; AND21
(IV) THE COMMISSION FINDS THAT ALTERNATIVE ENERGY SERVICE22
IS AVAILABLE TO ALL CUSTOMERS WITHIN THE PROJECT AREA AND CAN23
REASONABLY BE IMPLEMENTED WITHIN THE PROJECT AREA. IN MAKING24
THIS FINDING, THE COMMISSION SHALL CONSIDER:25
(A) THE COST OF END USES POWERED BY DIFFERENT FUELS,26
IMPACTS ON INCOME-QUALIFIED UTILITY CUSTOMERS AND CUSTOMERS27
1370
-14- LIVING IN DISPROPORTIONATELY IMPACTED COMMUNITIES, AND THE1
STATE'S GREENHOUSE GAS EMISSION REDUCTION GOALS ;2
(B) EXISTING UTILITY OR OTHER INCENTIVES TO SUPPORT3
CUSTOMER ADOPTION OF THE ALTERNATIVE ENERGY SERVICE ; AND4
(C) THE DEGREE OF CUSTOMER SUPPORT FOR THE PROJECT ,5
CONSIDERING THE INFORMATION PROVIDED PURSUANT TO SUBSECTION6
(1)(b) OF THIS SECTION, AND WITH PRIORITY GIVEN TO PROJECTS THAT7
HAVE THE FULL SUPPORT OF POTENTIALLY AFFECTED CUSTOMERS .8
(3) (a) THE COMMISSION SHALL ALLOW A DUAL-FUEL UTILITY TO9
CURRENTLY RECOVER THE COSTS INCURRED DURING THE DEVELOPMENT10
OF A NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT, INCLUDING COSTS11
TO TRANSITION THE DISTRIBUTION SYSTEM, INVEST IN ELECTRIC12
INFRASTRUCTURE, AND PROVIDE CUSTOMER INCENTIVES. SUCH COSTS ARE13
FULLY RECOVERABLE REGARDLESS OF THE PERFORMANCE OF THE14
ALTERNATIVE ENERGY SERVICE. THE COMMISSION SHALL ALSO PERMIT15
COST RECOVERY FOR PERSONNEL TO WORK ON THE DEVELOPMENT, IN16
WHOLE OR IN PART, OF NEIGHBORHOOD-SCALE ALTERNATIVES PROJECTS.17
(b) THE DUAL-FUEL UTILITY SHALL PROPOSE TO THE COMMISSION18
HOW COSTS WILL BE RECOVERED ACROSS THE DUAL-FUEL UTILITY'S19
ELECTRIC AND GAS BUSINESS.20
(c) FOR GAS PLANNING PILOT COMMUNITIES THAT RECEIVE GAS21
SERVICE FROM A DUAL-FUEL UTILITY BUT ARE NOT SERVED BY THE22
ELECTRIC UTILITY THAT IS PART OF THE DUAL-FUEL UTILITY, THE23
COMMISSION SHALL CONSIDER A COST -SHARING AGREEMENT, AS24
NECESSARY TO IMPLEMENT A NEIGHBORHOOD-SCALE ALTERNATIVES25
PROJECT, WHICH AGREEMENT THE DUAL-FUEL UTILITY PROPOSES TO ENTER26
INTO WITH A LOCAL COOPERATIVE ELECTRIC ASSOCIATION OR27
1370
-15- MUNICIPALLY OWNED ELECTRIC UTILITY TO MAKE THE INCUMBENT GAS1
UTILITY THAT IS PART OF THE DUAL-FUEL UTILITY AND ITS CUSTOMERS2
WHOLE FOR ANY PROJECTS APPROVED BY THE COMMISSION WHEN THERE3
IS A COST SHIFT. THIS SUBSECTION (3)(c) SHALL NOT BE CONSTRUED TO4
SUBJECT A LOCAL COOPERATIVE ELECTRIC ASSOCIATION OR MUNICIPALLY5
OWNED ELECTRIC UTILITY ENTERING INTO SUCH AN AGREEMENT WITH A6
DUAL-FUEL UTILITY TO THE JURISDICTION OF THE COMMISSION. ANY7
FEDERAL, STATE, OR LOCAL FUNDING MADE AVAILABLE FOR A PROJECT8
SHALL BE APPLIED PRIOR TO APPLICATION OF UTILITY PROGRAMMATIC9
FUNDS, SUCH AS DEMAND -SIDE MANAGEMENT , BENEFICIAL10
ELECTRIFICATION, OR OTHER EXISTING OR FUTURE CUSTOMER-SITED11
PROGRAMS, INCENTIVES, REBATES, AND FINANCING.12
(4) IN APPROVING A NEIGHBORHOOD -SCALE ALTERNATIVES13
PROJECT IN A GAS PLANNING PILOT COMMUNITY, THE COMMISSION MAY14
MODIFY THE GAS UTILITY'S SERVICE REQUIREMENT FOR SELECT PREMISES15
WITH AN ALTERNATIVE ENERGY SERVICE REQUIREMENT .16
NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, NOTHING17
IN THIS SECTION AFFECTS OR ABRIDGES A DUAL-FUEL UTILITY'S SERVICE18
REQUIREMENTS IN AREAS OUTSIDE THE NEIGHBORHOOD -SCALE19
ALTERNATIVES PROJECT AREA. THE COMMISSION MAY IMPOSE AN20
ALTERNATIVE ENERGY SERVICE REQUIREMENT FOR ANY CERTIFICATE OF21
PUBLIC CONVENIENCE AND NECESSITY GRANTED TO THE GAS UTILITY TO22
PROVIDE SERVICE TO THE TARGETED AREA THAT IS THE SUBJECT OF THE23
NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT IF THE COMMISSION FINDS24
THAT ALTERNATIVE ENERGY SERVICE IS AVAILABLE .25
(5) (a) AS PART OF A NEIGHBORHOOD -SCALE ALTERNATIVES26
PROJECT, A DUAL-FUEL UTILITY MAY PROPOSE TO FUND CONVERSION OF27
1370
-16- EXISTING GAS APPLIANCES OR EQUIPMENT TO NONEMITTING THERMAL1
RESOURCES, INCLUDING OFFERING INCREMENTAL INCENTIVES OR2
FINANCING ABOVE THAT APPROVED FOR CLEAN HEAT PLANS, AS DEFINED3
IN SECTION 40-3.2-108; BENEFICIAL ELECTRIFICATION PLANS, AS DEFINED4
IN SECTION 40-3.2-109; DEMAND-SIDE MANAGEMENT PROGRAMS , AS5
DEFINED IN SECTION 40-1-102; OR OTHER RELATED FILINGS.6
(b) A DUAL-FUEL UTILITY MAY ALSO PROPOSE TO OFFER NEW RATE7
STRUCTURES TO PAY FOR THERMAL ENERGY NETWORKS OR OTHER8
NONEMITTING THERMAL RESOURCES AS AN ALTERNATIVE ENERGY9
SERVICE, UNDER WHICH RATE STRUCTURES CUSTOMERS PAY THE UTILITY10
FOR THERMAL ENERGY NETWORK SERVICES TO OFFSET THE INITIAL COST11
OF NEW APPLIANCES OR OTHER EQUIPMENT. IF A DUAL-FUEL UTILITY12
PROPOSES TO OFFER SUCH A RATE, THE COMMISSION SHALL NOT GRANT13
THE DUAL-FUEL UTILITY CURRENT COST RECOVERY PURSUANT TO14
SUBSECTION (3)(a) OF THIS SECTION. A DUAL-FUEL UTILITY SHALL HAVE15
THE RIGHT OF FIRST REFUSAL TO OFFER THERMAL ENERGY NETWORK16
SERVICE OR ALTERNATIVE ENERGY SERVICE AS PART OF A17
NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT, IF THE DUAL-FUEL18
UTILITY SETS FORTH ITS INTENTION TO EXERCISE ITS RIGHT OF FIRST19
REFUSAL AND DEFINES THE SCOPE OF SUCH EXERCISE IN THE APPLICATION20
TO THE COMMISSION AND SUCH RIGHT OF FIRST REFUSAL :21
(I) IS LIMITED TO NEIGHBORHOOD-SCALE ALTERNATIVES PROJECTS22
IN GAS PLANNING PILOT COMMUNITIES; AND23
(II) IS EXERCISED WITHIN TWO YEARS AFTER APPROVAL BY THE24
COMMISSION.25
(6) IF A NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT QUALIFIES26
AS AN ENERGY SECTOR PUBLIC WORKS PROJECT, AS DEFINED IN SECTION27
1370
-17- 24-92-303, A DUAL-FUEL UTILITY SHALL COMPLY WITH ALL1
REQUIREMENTS SET FORTH IN PART 3 OF ARTICLE 92 OF TITLE 24. THE2
DUAL-FUEL UTILITY SHALL UTILIZE UTILITY EMPLOYEES OR CONTRACTORS3
THAT MEET THE APPRENTICESHIP UTILIZATION REQUIREMENTS SET FORTH4
IN SECTION 24-92-115 TO SERVICE AND MAINTAIN ANY THERMAL ENERGY5
OR GEOTHERMAL ENERGY PROJECTS OWNED BY THE DUAL-FUEL UTILITY6
AND APPROVED BY THE COMMISSION UNDER THIS SECTION .7
(7) BY JUNE 1 OF EACH YEAR FOLLOWING APPROVAL OF A8
NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT, A DUAL-FUEL UTILITY9
SHALL SUBMIT A REPORT TO THE COMMISSION ON THE IMPLEMENTATION10
OF THE NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT. THE REPORT11
MUST INCLUDE, AT A MINIMUM:12
(a) AN UPDATE ON PROJECT IMPLEMENTATION , INCLUDING THE13
DEGREE OF CUSTOMER SUPPORT FOR THE PROJECT ;14
(b) AN EXPLANATION OF CUSTOMER SATISFACTION WITH15
ALTERNATIVE ENERGY SERVICE ;16
(c) ACTUAL NET PROJECT COSTS INCURRED , INCLUDING ANY:17
(I) STATE OR FEDERAL FUNDING OR TAX CREDITS ;18
(II) GAS PLANNING PILOT COMMUNITY INCENTIVES OR FUNDING ;19
(III) EXISTING DUAL-FUEL UTILITY PROGRAM FUNDING ;20
(IV) ADDITIONAL DUAL-FUEL UTILITY INCENTIVES OR FUNDING;21
(V) CUSTOMER CONTRIBUTIONS ;22
(VI) ANTICIPATED TOTAL CAPITAL EXPENDITURES BY THE23
DUAL-FUEL UTILITY AND CUSTOMERS, AVOIDED UTILITY CAPITAL24
EXPENDITURES, AND FUTURE DISCOUNTED CUSTOMER UTILITY BILL25
SAVINGS OR EXPENSES; AND26
(VII) ESTIMATED OVERALL PROJECT COSTS IF NO INCENTIVES OR27
1370
-18- TAX CREDITS HAD BEEN AVAILABLE FOR THE PROJECT ;1
(d) THE IMPACT ON TOTAL ENERGY BILL AND ENERGY RELIABILITY2
FOR CUSTOMERS RECEIVING ALTERNATIVE ENERGY SERVICE ;3
(e) ANY ENCOUNTERED BARRIERS TO PROJECT IMPLEMENTATION,4
INCLUDING TECHNOLOGICAL OR WORKFORCE BARRIERS , AND THE LESSONS5
LEARNED IN OVERCOMING THOSE BARRIERS ;6
(f) THE IMPACT ON INCOME-QUALIFIED UTILITY CUSTOMERS AND7
CUSTOMERS LIVING IN DISPROPORTIONATELY IMPACTED COMMUNITIES ;8
AND9
(g) ANY OTHER INFORMATION REQUIRED BY THE COMMISSION .10
(8) BY JULY 1, 2028, OR ANOTHER TIME DETERMINED BY THE11
COMMISSION, THE COMMISSION SHALL HIRE A THIRD-PARTY CONSULTANT12
TO CONDUCT AN ANALYSIS OF ALL APPROVED AND PROPOSED13
NEIGHBORHOOD-SCALE ALTERNATIVES PROJECTS AND PRESENT THE14
FINDINGS OF THE ANALYSIS TO THE COMMISSION AND THE GENERAL15
ASSEMBLY. THE ANALYSIS MUST INCLUDE:16
(a) FOR EACH PROJECT, THE INFORMATION SET FORTH IN17
SUBSECTION (7) OF THIS SECTION;18
(b) A COMPARATIVE ANALYSIS OF NET COSTS INCURRED BY ALL19
PARTIES IN A NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT, COMPARED20
WITH THE COST OF THE GAS INFRASTRUCTURE PROJECT THAT WAS21
AVOIDED, INCLUDING ANY:22
(I) STATE OR FEDERAL FUNDING OR TAX CREDITS ;23
(II) GAS PLANNING PILOT COMMUNITY INCENTIVES OR FUNDING ;24
(III) EXISTING DUAL-FUEL UTILITY PROGRAM FUNDING ;25
(IV) ADDITIONAL DUAL-FUEL UTILITY INCENTIVES OR FUNDING;26
(V) CUSTOMER CONTRIBUTIONS ;27
1370
-19- (VI) ANTICIPATED TOTAL CAPITAL EXPENDITURES BY THE1
DUAL-FUEL UTILITY AND CUSTOMERS, AVOIDED UTILITY CAPITAL2
EXPENDITURES, AND FUTURE DISCOUNTED CUSTOMER UTILITY BILL3
SAVINGS OR EXPENSES; AND4
(VII) ESTIMATED OVERALL PROJECT COSTS IF NO INCENTIVES OR5
TAX CREDITS HAD BEEN AVAILABLE FOR THE PROJECT ;6
(c) THE ABILITY OF EACH PROJECT TO DEFER OR AVOID GAS7
INFRASTRUCTURE INVESTMENTS ;8
(d) THE CUSTOMER ECONOMICS OF NON -EMITTING THERMAL9
RESOURCES COMPARED WITH GAS ALTERNATIVES ;10
(e) AN ANALYSIS OF ANY SUPPLY CHAIN CHALLENGES ;11
(f) THE OVERALL LESSONS LEARNED FROM THE PROJECTS ;12
(g) THE PERSPECTIVES OF THE GAS PLANNING PILOT COMMUNITIES13
REGARDING THE COLLABORATIVE PROCESS WITH A DUAL -FUEL UTILITY14
AND ANY LESSONS LEARNED FOR IMPROVING THE PROCESS ;15
(h) THE NET IMPACTS TO THE UTILITY WORKFORCE ; AND16
(i) ANY OTHER INFORMATION REQUIRED BY THE COMMISSION .17
SECTION 2. Appropriation. (1) For the 2024-25 state fiscal18
year, $43,650 is appropriated to the office of the governor for use by the19
Colorado energy office. This appropriation is from the general fund, and20
is based on an assumption that the office will require an additional 0.421
FTE. To implement this act, the office may use this appropriation for22
program administration.23
(2) For the 2024-25 state fiscal year, $29,678 is appropriated to24
the department of regulatory agencies for use by the public utilities25
commission. This appropriation is from the public utilities commission26
fixed utility fund created in section 40-2-114 (1)(b)(II), C.R.S. To27
1370
-20- implement this act, the commission may use this appropriation as follows:1
(a) $22,752 for personal services, which amount is based on an2
assumption that the commission will require an additional 0.2 FTE; and3
(b) $6,926 for operating expenses.4
SECTION 3. Act subject to petition - effective date. This act5
takes effect at 12:01 a.m. on the day following the expiration of the6
ninety-day period after final adjournment of the general assembly; except7
that, if a referendum petition is filed pursuant to section 1 (3) of article V8
of the state constitution against this act or an item, section, or part of this9
act within such period, then the act, item, section, or part will not take10
effect unless approved by the people at the general election to be held in11
November 2024 and, in such case, will take effect on the date of the12
official declaration of the vote thereon by the governor.13
1370
-21-