HOUSE BILL 24-1370
BY REPRESENTATIVE(S) Kipp and Willford, Boesenecker, Brown,
Epps, Garcia, Herod, Jodeh, Joseph, Lindsay, Mabrey, Marvin, Ortiz,
Parenti, Ricks, Rutinel, Sirota, Story, Valdez, Vigil, Woodrow;
also SENATOR(S) Winter F., Buckner, Cutter, Hansen, Jaquez Lewis,
Michaelson Jenet, Priola.
C
ONCERNING MEASURES TO REDUCE THE COST OF USE OF NATURAL GAS
INFRASTRUCTURE
, AND, IN CONNECTION THEREWITH , MAKING AN
APPROPRIATION
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, add article 3.3 to title
40 as follows:
ARTICLE 3.3
Gas Infrastructure Planning
40-3.3-101. Definitions. A
S USED IN THIS ARTICLE 3.3, UNLESS THE
CONTEXT OTHERWISE REQUIRES
:
(1) "A
LTERNATIVE ENERGY SERVICE " MEANS A LOW - OR
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. ZERO-CARBON RESIDENTIAL, COMMERCIAL, OR INDUSTRIAL ENERGY SERVICE
THAT IS ABLE TO MEET A CUSTOMER
'S END USE NEED AND DOES NOT
COMBUST METHANE
-, PROPANE-, OR PETROLEUM-DERIVED GAS ON SITE IN
DOING SO
.
(2) "C
OLORADO ENERGY OFFICE" MEANS THE COLORADO ENERGY
OFFICE CREATED IN SECTION
24-38.5-101.
(3) "D
ISTRIBUTION SYSTEM" HAS THE MEANING SET FORTH IN
SECTION
40-2-115 (2)(b) AND INCLUDES THE PIPING AND ASSOCIATED
FACILITIES USED TO DELIVER GEOLOGICAL GAS OR RECOVERED METHANE
.
(4) "D
UAL-FUEL UTILITY" MEANS AN INVESTOR-OWNED UTILITY IN
WHICH ONE COMPANY OR A SUBSIDIARY OF THE SAME COMPANY OPERATES
BOTH AN ELECTRIC AND A GAS UTILITY THAT HAVE SERVICE TERRITORIES IN
THE STATE WHERE GREATER THAN FIFTY PERCENT OF ALL CUSTOMERS IN
THOSE TERRITORIES RECEIVE BOTH GAS AND ELECTRIC SERVICE FROM A
UTILITY OPERATED BY THAT COMPANY OR A SUBSIDIARY OF THE SAME
COMPANY
.
(5) "G
AS" MEANS NATURAL OR GEOLOGICAL GAS , RECOVERED
METHANE
, OR ANY MIXTURE OF NATURAL OR GEOLOGICAL GAS OR
RECOVERED METHANE THAT IS TRANSPORTED BY A COMMON CARRIER OR
DEDICATED PIPELINE
, INCLUDING FLAMMABLE GAS ; MANUFACTURED GAS;
PETROLEUM OR OTHER HYDROCARBON GASES , SUCH AS PROPANE; OR ANY
MIXTURE OF FOSSIL GASES THAT IS INJECTED INTO A PIPELINE AND
TRANSMITTED
, DISTRIBUTED, OR FURNISHED BY A UTILITY.
(6) "G
AS INFRASTRUCTURE PLAN" MEANS A REQUIREMENT FOR GAS
UTILITIES ESTABLISHED BY THE COMMISSION THAT IS DESIGNED TO
ESTABLISH A PROCESS TO DETERMINE THE NEED FOR
, AND POTENTIAL
ALTERNATIVES TO
, CAPITAL INVESTMENT, CONSISTENT WITH THE OBJECTIVES
OF MAINTAINING JUST AND REASONABLE RATES
; ENSURING SYSTEM SAFETY,
RELIABILITY, AND RESILIENCY; AND PROTECTING INCOME-QUALIFIED UTILITY
CUSTOMERS AND DISPROPORTIONATELY IMPACTED COMMUNITIES
.
(7) "G
AS PLANNING PILOT COMMUNITY " MEANS A LOCAL
GOVERNMENT IN WHICH CONSTITUENTS HAVE GAS SERVICE PROVIDED BY A
DUAL
-FUEL UTILITY AND AN ACTIVE FRANCHISE AGREEMENT WITH THE
DUAL
-FUEL UTILITY, WHICH LOCAL GOVERNMENT FORMALLY INDICATES AN
PAGE 2-HOUSE BILL 24-1370 INTEREST IN WORKING WITH THE DUAL-FUEL UTILITY TO MUTUALLY EXPLORE
OPPORTUNITIES FOR NEIGHBORHOOD
-SCALE ALTERNATIVES PROJECTS ,
INCLUDING THROUGH THE EXCHANGE OF UTILITY GAS INFRASTRUCTURE
DATA AND COMMUNITY DEVELOPMENT PLANS
.
(8) "G
REENHOUSE GAS REDUCTION GOALS " MEANS THE STATE'S
GREENHOUSE GAS REDUCTION GOALS DESCRIBED IN SECTION
25-7-102
(2)(g).
(9) "I
NCOME-QUALIFIED UTILITY CUSTOMER" HAS THE MEANING SET
FORTH IN SECTION
40-3-106 (1)(d)(II).
(10) "L
OCAL GOVERNMENT " MEANS A HOME RULE OR STATUTORY
COUNTY
, CITY, OR CITY AND COUNTY.
(11) "N
EIGHBORHOOD-SCALE ALTERNATIVES PROJECT " MEANS A
PROJECT IN A GAS PLANNING PILOT COMMUNITY
:
(a) W
HERE A DUAL-FUEL UTILITY:
(I) P
ROVIDES BOTH GAS AND ELECTRIC SERVICE ;
(II) P
ROVIDES GAS SERVICE AND A MUNICIPALLY OWNED UTILITY
OPERATED BY THE GAS PLANNING PILOT COMMUNITY PROVIDES ELECTRIC
SERVICE
; OR
(III) PROVIDES GAS SERVICE AND A COOPERATIVE ELECTRIC
ASSOCIATION THAT SERVES A GAS PLANNING PILOT COMMUNITY HAS
VOLUNTARILY PARTNERED WITH THE DUAL
-FUEL UTILITY; AND
(b) THAT GEOGRAPHICALLY TARGETS DECOMMISSIONING A PORTION
OF THE GAS DISTRIBUTION SYSTEM OR AVOIDS EXPANDING THE GAS
DISTRIBUTION SYSTEM IN ORDER TO SERVE NEW CONSTRUCTION PROJECTS
AND PROVIDES ALTERNATIVE ENERGY SERVICE TO BUILDINGS WITHIN THE
PROJECT AREA THAT REDUCES FUTURE GREENHOUSE GAS EMISSIONS
REQUIRED TO SERVE BUILDINGS
.
(12) "N
ONEMITTING THERMAL RESOURCE " MEANS EFFICIENT
THERMAL ENERGY FOR HEATING
, COOLING, OR HOT WATER, WHICH ENERGY
DOES NOT REQUIRE COMBUSTION OF GAS
, SUCH AS AN AIR-SOURCE HEAT
PAGE 3-HOUSE BILL 24-1370 PUMP, AS DEFINED IN SECTION 39-22-554 (2)(a); A GROUND-SOURCE HEAT
PUMP
, AS DEFINED IN SECTION 39-22-554 (2)(g); A HEAT PUMP WATER
HEATER
; A THERMAL ENERGY SYSTEM ; OR A THERMAL ENERGY NETWORK .
(13) "P
IPELINE SEGMENT" MEANS A DISCRETE PORTION OF THE
DISTRIBUTION SYSTEM AND ALL ANCILLARY STRUCTURES
, VALVES, AND
OTHER SYSTEMS NEEDED TO DISTRIBUTE GAS
. A PIPELINE SEGMENT MUST BE
THE SMALLEST INCREMENTAL UNIT POSSIBLE
, AS DEFINED BY PIPELINE
MATERIALS
, GEOGRAPHICAL FEATURES , AND THE DESIGN OF THE
DISTRIBUTION SYSTEM
.
(14) "T
HERMAL ENERGY NETWORK " HAS THE MEANING SET FORTH
IN SECTION
40-3.2-108 (2)(s).
(15) "T
HERMAL ENERGY SYSTEM " HAS THE MEANING SET FORTH IN
SECTION
40-3.2-108 (2)(t).
40-3.3-102. Request for information - gas planning pilot
community - disclosures - repeal. (1) (a) B
Y DECEMBER 1, 2024, THE
COLORADO ENERGY OFFICE SHALL ISSUE A REQUEST FOR INFORMATION TO
IDENTIFY LOCAL GOVERNMENTS WHOSE RESIDENTS ARE SERVED BY A
DUAL
-FUEL UTILITY THAT ARE INTERESTED IN BECOMING A GAS PLANNING
PILOT COMMUNITY
.
(b) T
HE COLORADO ENERGY OFFICE SHALL INCLUDE IN THE REQUEST
FOR INFORMATION THE MINIMUM CRITERIA THAT A LOCAL GOVERNMENT
MUST MEET IN ORDER TO BECOME A GAS PLANNING PILOT COMMUNITY
,
INCLUDING:
(I) A
DEMONSTRATION THAT DESIGNATION AS A GAS PLANNING PILOT
COMMUNITY WOULD ALIGN WITH THE LOCAL GOVERNMENT
'S CLIMATE AND
ENERGY AFFORDABILITY GOALS
;
(II) A
WILLINGNESS TO PROMOTE NEIGHBORHOOD -SCALE
ALTERNATIVES PROJECTS AND TO SUPPORT
, ENGAGE, AND EDUCATE
RESIDENTS WITHIN A COMMUNITY FOR WHICH A NEIGHBORHOOD
-SCALE
ALTERNATIVES PROJECT IS PROPOSED PRIOR TO APPROVAL BY THE
COMMISSION
; AND
(III) A COMMITMENT OF INTERNAL OR EXTERNAL STAFF RESOURCES
PAGE 4-HOUSE BILL 24-1370 TO IDENTIFY AND IMPLEMENT NEIGHBORHOOD -SCALE ALTERNATIVES
PROJECTS
.
(c) A
T LEAST THIRTY DAYS PRIOR TO ISSUING THE REQUEST FOR
INFORMATION
, THE COLORADO ENERGY OFFICE SHALL PUBLISH A DRAFT OF
THE REQUEST FOR INFORMATION ON ITS WEBSITE AND PROVIDE AN
OPPORTUNITY FOR THE PUBLIC TO SUBMIT WRITTEN COMMENTS
.
(2) (a) B
Y APRIL 30, 2025, THE COLORADO ENERGY OFFICE AND A
DUAL
-FUEL UTILITY SHALL JOINTLY FILE WITH THE COMMISSION THE RESULTS
OF THE REQUEST FOR INFORMATION REQUIRED BY SUBSECTION
(1)(a) OF THIS
SECTION
, IDENTIFYING UP TO FIVE PROPOSED GAS PLANNING PILOT
COMMUNITIES
. IN IDENTIFYING PROPOSED GAS PLANNING PILOT
COMMUNITIES
, THE COLORADO ENERGY OFFICE AND A DUAL -FUEL UTILITY
SHALL PRIORITIZE LOCAL GOVERNMENTS THAT ARE INTERESTED IN PURSUING
THERMAL ENERGY NETWORK OR GEOTHERMAL ENERGY PROJECTS AS PART
OF THE PROPOSED GAS PLANNING PILOT COMMUNITY
'S EVALUATION OF ANY
POTENTIAL NEIGHBORHOOD
-SCALE ALTERNATIVES PROJECT PURSUANT TO
SECTION
40-3.3-103. THE COLORADO ENERGY OFFICE AND THE DUAL -FUEL
UTILITY SHALL ALSO JOINTLY FILE A DRAFT AGREEMENT BETWEEN THE
DUAL
-FUEL UTILITY AND ANY PROPOSED GAS PLANNING PILOT COMMUNITY ,
WHICH DRAFT AGREEMENT MUST :
(I) I
DENTIFY THE ROLES AND RESPONSIBILITIES OF THE DUAL -FUEL
UTILITY AND THE PROPOSED GAS PLANNING PILOT COMMUNITY IN
IDENTIFYING NEIGHBORHOOD
-SCALE ALTERNATIVES PROJECTS;
(II) I
DENTIFY TIME FRAMES FOR EACH PARTY TO FURNISH DATA OR
RESPOND TO REQUESTS FOR DATA FROM THE OTHER PARTY
;
(III) I
NCLUDE ANY NECESSARY WAIVERS OF COMMISSION RULES TO
FACILITATE DATA TRANSFER BETWEEN THE PARTIES
;
(IV) I
NCLUDE A PROCESS TO ADDRESS CONFLICTS BETWEEN THE TWO
PARTIES
; AND
(V) INDICATE WHETHER THE PROPOSED GAS PLANNING PILOT
COMMUNITY HAS DEMONSTRATED AN INTEREST IN PURSUING THERMAL
ENERGY NETWORK OR GEOTHERMAL ENERGY PROJECTS
.
PAGE 5-HOUSE BILL 24-1370 (b) THE COMMISSION SHALL PROVIDE AN OPPORTUNITY FOR THE
PUBLIC TO SUBMIT WRITTEN COMMENTS ON THE FILING
.
(c) B
Y JUNE 30, 2025, THE COMMISSION SHALL APPROVE OR MODIFY
THE LIST OF PROPOSED GAS PLANNING PILOT COMMUNITIES
; EXCEPT THAT
THE COMMISSION SHALL NOT INCREASE THE NUMBER OF PROPOSED GAS
PLANNING PILOT COMMUNITIES BEYOND FIVE
.
(3) B
Y OCTOBER 1, 2025, A DUAL-FUEL UTILITY SHALL ENTER INTO
AN AGREEMENT WITH EACH LOCAL GOVERNMENT THAT HAS BEEN APPROVED
AS A GAS PLANNING PILOT COMMUNITY AND SHALL SUBMIT TO THE
COMMISSION A LIST OF THE GAS PLANNING PILOT COMMUNITIES WITH WHICH
THE DUAL
-FUEL UTILITY HAS ESTABLISHED AN AGREEMENT . THE DUAL-FUEL
UTILITY AND LOCAL GOVERNMENT MAY AGREE TO EXTEND THIS DEADLINE
.
(4) S
UBSECTIONS (1) TO (3) OF THIS SECTION ARE REPEALED ,
EFFECTIVE JUNE 1, 2028.
(5) (a) U
NLESS OTHERWISE DIRECTED BY THE COMMISSION OR
REQUESTED BY THE GAS PLANNING PILOT COMMUNITY
, A DUAL-FUEL UTILITY
SHALL PROVIDE EACH GAS PLANNING PILOT COMMUNITY
, THE COMMISSION,
AND THE COLORADO ENERGY OFFICE WITH DATA AND INFORMATION TO
INFORM THE EVALUATION OF POTENTIAL NEIGHBORHOOD
-SCALE
ALTERNATIVES PROJECTS THAT INCLUDES
:
(I) T
HE LOCATION OF ANY PLANNED GAS INFRASTRUCTURE PROJECTS
IN THE GAS PLANNING PILOT COMMUNITY WITHIN THE SIX
-YEAR GAS PROJECT
PLANNING FORECAST IN THE DUAL
-FUEL UTILITY'S MOST RECENTLY
APPROVED GAS INFRASTRUCTURE PLAN OR IDENTIFIED BY THE DUAL
-FUEL
UTILITY FOR INCLUSION IN A FUTURE GAS INFRASTRUCTURE PLAN TO THE
EXTENT AVAILABLE
; AND
(II) THE FOLLOWING INFORMATION REGARDING THE PLANNED GAS
INFRASTRUCTURE PROJECTS DESCRIBED IN SUBSECTION
(5)(a)(I) OF THIS
SECTION
:
(A) T
HE PROJECT NAME;
(B) T
HE PROJECT CATEGORY , CONSISTENT WITH THE PLANNED
PROJECTS CATEGORIES DESCRIBED IN APPLICABLE COMMISSION RULES
;
PAGE 6-HOUSE BILL 24-1370 (C) A DESCRIPTION OF THE GENERAL SCOPE OF WORK AND AN
EXPLANATION OF THE NEED FOR THE PROJECT
, INCLUDING ANY APPLICABLE
CODE REQUIREMENTS OF THE
UNITED STATES DEPARTMENT OF
TRANSPORTATION
'S PIPELINE AND HAZARDOUS MATERIALS SAFETY
ADMINISTRATION
;
(D) T
HE PROJECTED LIFE OF THE PROJECT;
(E) A
N INDICATION OF WHETHER THE PROJECT IS PRESENTED AS A
GAS INFRASTRUCTURE PLAN ACTION PERIOD PROJECT OR A GAS
INFRASTRUCTURE PLAN INFORMATIONAL PERIOD PROJECT PURSUANT TO
APPLICABLE COMMISSION RULES
;
(F) T
HE ANTICIPATED: CONSTRUCTION START DATE FOR THE
PROJECT
; CONSTRUCTION PERIOD FOR THE PROJECT , INCLUDING AN
INDICATION OF ANY CONSTRUCTION PHASES
; AND IN-SERVICE DATE FOR THE
PROJECT
;
(G) T
HE COST-ESTIMATE CLASSIFICATION FOR THE PROJECT , USING
THE DUAL
-FUEL UTILITY'S OR AN INDUSTRY-ACCEPTED COST-ESTIMATE
CLASSIFICATION INDEX
; SUPPORT FOR THE COST-ESTIMATE CLASSIFICATION;
AND THE TOTAL COST ESTIMATE FOR THE PROJECT ;
(H) T
HE TECHNICAL DETAILS OF THE PROJECT , SUCH AS THE
PHYSICAL EQUIPMENT CHARACTERISTICS OF THE PROPOSED FACILITIES
,
PIPELINE LENGTH, PIPELINE DIAMETER, PROJECT MATERIALS, AND MAXIMUM
ALLOWABLE OPERATING PRESSURE
;
(I) T
HE PROJECT LOCATION AND AN ILLUSTRATIVE MAP OF THE GAS
DISTRIBUTION SYSTEM FACILITIES
, SUBJECT TO NECESSARY
CONFIDENTIALITY PROVISIONS
, INCLUDING: THE PRESSURE DISTRICT OR
GEOGRAPHIC AREA THAT REQUIRES THE PROPOSED FACILITIES
, THE EXISTING
AND PROPOSED REGULATOR STATIONS AND EXISTING AND PROPOSED
DISTRIBUTION PIPING AND HIGHER CAPACITY PIPELINES SERVED BY OR
REPRESENTING THE PROPOSED FACILITIES
, THE LOCATIONS OF ANY NEARBY
DISPROPORTIONATELY IMPACTED COMMUNITIES
, AND ANY OTHER
INFORMATION NECESSARY TO ALLOW THE LOCAL GOVERNMENT TO MAKE A
THOROUGH EVALUATION OF THE PROJECT
;
(J) T
O THE EXTENT PRACTICABLE , THE NUMBER OF CUSTOMERS ,
PAGE 7-HOUSE BILL 24-1370 ANNUAL SALES , AND DESIGN PEAK DEM AND REQUIREMENTS ,
DISAGGREGATED BY CUSTOMER CLASS , POTENTIALLY DIRECTLY IMPACTED
OR SERVED BY THE PROJECT
;
(K) A
NY PERMITS REQUIRED FOR WORK ON THE PROJECT TO BEGIN ;
AND
(L) ANY ENVIRONMENTAL REQUIREMENTS ASSOCIATED WITH
COMPLETION OF THE PROJECT
.
(b) A
DUAL-FUEL UTILITY SHALL PROVIDE GAS PLANNING PILOT
COMMUNITY STAFF AND CONSULTANTS
, WHO HAVE SIGNED APPROPRIATE
NONDISCLOSURE AGREEMENTS
, WITH ALL REQUESTED GAS AND ELECTRIC
CUSTOMER USAGE AND DESIGN PEAK DEMAND DATA
, TO THE EXTENT
AVAILABLE AND DISAGGREGATED TO THE INDIVIDUAL CUSTOMER
, FOR ALL
PLANNED GAS INFRASTRUCTURE PROJECTS LOCATED IN A GAS PLANNING
PILOT COMMUNITY WITHIN THE SIX
-YEAR GAS PROJECT PLANNING FORECAST
IN THE DUAL
-FUEL UTILITY'S MOST RECENTLY APPROVED GAS
INFRASTRUCTURE PLAN OR IDENTIFIED BY THE DUAL
-FUEL UTILITY FOR
INCLUSION IN A FUTURE GAS INFRASTRUCTURE PLAN
. THE DUAL-FUEL
UTILITY SHALL PROVIDE SUCH INFORMATION WITHIN THE RELEVANT TIME
FRAME ESTABLISHED PURSUANT TO SUBSECTION
(2)(a)(II) OF THIS SECTION.
(c) T
HE INFORMATION DESCRIBED IN SUBSECTIONS (5)(a) AND (5)(b)
OF THIS SECTION IS EXEMPT FROM THE "COLORADO OPEN RECORDS ACT",
PART 2 OF ARTICLE 72 OF TITLE 24.
40-3.3-103. Neighborhood-scale alternatives projects - cost
recovery - reporting requirement. (1) A
DUAL-FUEL UTILITY SHALL WORK
WITH A GAS PLANNING PILOT COMMUNITY TO RANK AND PRIORITIZE
NEIGHBORHOOD
-SCALE ALTERNATIVES PROJECTS WITHIN EACH GAS
PLANNING PILOT COMMUNITY BASED ON LOCAL GOVERNMENT INPUT AND
CONSIDERATION OF
:
(a) T
HE NUMBER AND CUSTOMER CLASS SERVED BY EACH PIPELINE
SEGMENT INCLUDED IN A NEIGHBORHOOD
-SCALE ALTERNATIVES PROJECT;
(b) T
HE DEGREE OF SUPPORT FOR THE NEIGHBORHOOD -SCALE
ALTERNATIVES PROJECT FROM CUSTOMERS POTENTIALLY IMPACTED BY THE
PROJECT
, WITH PREFERENCE GIVEN TO THOSE PROJECTS THAT HAVE FULL
PAGE 8-HOUSE BILL 24-1370 SUPPORT FROM POTENTIALLY IMPACTED CUSTOMERS ;
(c) T
HE COST-EFFECTIVENESS OF THE NEIGHBORHOOD -SCALE
ALTERNATIVES PROJECT
, USING THE COST-BENEFIT HANDBOOK FROM THE
DUAL
-FUEL UTILITY'S MOST RECENT GAS INFRASTRUCTURE PLAN ;
(d) T
HE NET COST TO CUSTOMERS POTENTIALLY PARTICIPATING IN
THE NEIGHBORHOOD
-SCALE ALTERNATIVES PROJECT;
(e) T
HE AVAILABILITY OF ALTERNATIVE ENERGY SERVICE ,
INCLUDING FOR SCENARIOS WITH ENHANCED GAS AND ELECTRIC DEMAND
RESPONSE OR DEMAND FLEXIBILITY
;
(f) T
HE ABILITY OF THERMAL ENERGY NETWORKS TO SERVE THE
AREA COVERED BY THE NEIGHBORHOOD
-SCALE ALTERNATIVES PROJECT ,
WITH PRIORITY GIVEN TO PROJECTS THAT INCLUDE A THERMAL ENERGY
NETWORK OR A GEOTHERMAL ENERGY PROJECT
;
(g) W
HETHER THE NEIGHBORHOOD -SCALE ALTERNATIVES PROJECT
IS PART OF A NEW DEVELOPMENT OR WOULD SERVE EXISTING CUSTOMERS
,
OR BOTH;
(h) T
HE PRIORITIZATION OF PIPELINE SEGMENTS THAT ARE PART OF
PROJECTS INCLUDED IN A DUAL
-FUEL UTILITY'S GAS INFRASTRUCTURE PLAN
OR OTHERWISE IDENTIFIED BY THE DUAL
-FUEL UTILITY FOR INCLUSION IN A
FUTURE GAS INFRASTRUCTURE PLAN
, TO THE EXTENT THIS INFORMATION IS
AVAILABLE
; AND
(i) THE LOCATION OF ANY NEARBY DISPROPORTIONATELY IMPACTED
COMMUNITY OR PIPELINE SEGMENTS THAT SERVE DISPROPORTIONATELY
IMPACTED COMMUNITIES
.
(2) (a) (I) P
RIOR TO JUNE 1, 2026, A DUAL-FUEL UTILITY AND LOCAL
GOVERNMENT SHALL JOINTLY SUBMIT FOR APPROVAL AT LEAST ONE INITIAL
NEIGHBORHOOD
-SCALE ALTERNATIVES PROJECT, TO BE LOCATED WITHIN A
GAS PLANNING PILOT COMMUNITY
, TO THE COMMISSION IF THE
NEIGHBORHOOD
-SCALE ALTERNATIVES PROJECT HAS THE FULL SUPPORT OF
POTENTIALLY AFFECTED CUSTOMERS
. THE FILING MUST ALSO CONTAIN A
LIST OF POTENTIAL PROJECTS THAT ARE RANKED HIGHLY BUT DO NOT HAVE
FULL CUSTOMER SUPPORT AT THE TIME OF THE FILING
.
PAGE 9-HOUSE BILL 24-1370 (II) PRIOR TO JUNE 1, 2027, A DUAL-FUEL UTILITY AND A LOCAL
GOVERNMENT SHALL JOINTLY SUBMIT FOR COMMISSION APPROVAL THE
NEIGHBORHOOD
-SCALE ALTERNATIVES PROJECTS INCLUDED ON THE LIST IN
THE FILING SUBMITTED PURSUANT TO SUBSECTION
(2)(a)(I) OF THIS SECTION
AND THAT WILL BE PURSUED IN A GAS PLANNING PILOT COMMUNITY
, WHICH
PROJECTS MAY LACK FULL CUSTOMER SUPPORT IF THE LOCAL GOVERNMENT
HAS DETERMINED THAT A REASONABLE MAJORITY OF CUSTOMERS SUPPORTS
THE PROJECT
. THE LOCAL GOVERNMENT SHALL DETERMINE WHAT
CONSTITUTES A REASONABLE MAJORITY
. THE DETERMINATION OF A
REASONABLE MAJORITY OF CUSTOMER SUPPORT AND EFFORTS TO OBTAIN
CUSTOMER CONSENT MUST BE SUPPORTED BY A SWORN AFFIDAVIT OR
TESTIMONY FROM AN OFFICIAL EMPLOYEE OF THE LOCAL GOVERNMENT AS
PART OF THE JOINT APPLICATION TO THE COMMISSION
. THE JOINT
APPLICATION MUST ALSO INCLUDE THE NET COSTS OF THE PROJECTS
,
INCLUDING ANY:
(A) S
TATE OR FEDERAL FUNDING OR TAX CREDITS ;
(B) G
AS PLANNING PILOT COMMUNITY INCENTIVES OR FUNDING ;
(C) E
XISTING DUAL-FUEL UTILITY PROGRAM FUNDING ;
(D) A
DDITIONAL DUAL-FUEL UTILITY INCENTIVES OR FUNDING;
(E) C
USTOMER CONTRIBUTIONS ; AND
(F) ANTICIPATED TOTAL CAPITAL EXPENDITURES BY THE DUAL -FUEL
UTILITY AND CUSTOMERS
, AVOIDED UTILITY CAPITAL EXPENDITURES , AND
FUTURE DISCOUNTED CUSTOMER UTILITY BILL SAVINGS OR EXPENSES
.
(III) I
F A DUAL-FUEL UTILITY WILL NOT PURSUE A
NEIGHBORHOOD
-SCALE ALTERNATIVES PROJECT IN ONE OR MORE GAS
PLANNING PILOT COMMUNITIES
, THE DUAL-FUEL UTILITY AND LOCAL
GOVERNMENT
, PRIOR TO JUNE 1, 2027, SHALL JOINTLY FILE A REPORT WITH
THE COMMISSION EXPLAINING WHY A NEIGHBORHOOD
-SCALE ALTERNATIVES
PROJECT WILL NOT BE PURSUED IN THAT COMMUNITY
.
(b) T
HE COMMISSION SHALL PROVIDE AN OPPORTUNITY FOR PUBLIC
COMMENT REGARDING THE DUAL
-FUEL UTILITY'S SUBMISSION PURSUANT TO
SUBSECTION
(2)(a)(III) OF THIS SECTION.
PAGE 10-HOUSE BILL 24-1370 (c) THE COMMISSION SHALL APPROVE A NEIGHBORHOOD -SCALE
ALTERNATIVES PROJECT APPLICATION SUBMITTED BY A DUAL
-FUEL UTILITY
IF
:
(I) T
HE PROJECT IS SUPPORTED BY A LOCAL GOVERNMENT
ORDINANCE
, PROCLAMATION, OR RESOLUTION;
(II) T
HE COMMISSION FINDS THAT THE PROJECT IS:
(A) C
ONSISTENT WITH THE STATE'S GREENHOUSE GAS REDUCTION
GOALS
; AND
(B) IN THE PUBLIC INTEREST, CONSIDERING COSTS AND BENEFITS TO
THE GAS PLANNING PILOT COMMUNITY
, PARTICIPATING CUSTOMERS, AND
RATEPAYERS WITHIN THE DUAL
-FUEL UTILITY'S GAS SERVICE TERRITORY AND
ANY COST SHIFT BETWEEN PARTICIPATING CUSTOMERS AND ALL RATEPAYERS
OF THE DUAL
-FUEL UTILITY, WITH PREFERENCE GIVEN TO PROJECTS THAT
RESULT IN NO COST SHIFT TO NONPARTICIPATING CUSTOMERS
;
(III) T
HE APPROVED PORTFOLIO OF NEIGHBORHOOD -SCALE
ALTERNATIVES PROJECTS PROVIDES AN APPROPRIATE MIX OF TECHNOLOGIES
,
CUSTOMER CLASSES, AND NEW CONSTRUCTION AND EXISTING BUILDINGS
AND INCLUDES THE USE OF THERMAL ENERGY NETWORKS OR GEOTHERMAL
ENERGY PROJECTS
; AND
(IV) THE COMMISSION FINDS THAT ALTERNATIVE ENERGY SERVICE
IS AVAILABLE TO ALL CUSTOMERS WITHIN THE PROJECT AREA AND CAN
REASONABLY BE IMPLEMENTED WITHIN THE PROJECT AREA
. IN MAKING THIS
FINDING
, THE COMMISSION SHALL CONSIDER:
(A) T
HE COST OF END USES POWERED BY DIFFERENT FUELS , IMPACTS
ON INCOME
-QUALIFIED UTILITY CUSTOMERS AND CUSTOMERS LIVING IN
DISPROPORTIONATELY IMPACTED COMMUNITIES
, AND THE STATE 'S
GREENHOUSE GAS EMISSION REDUCTION GOALS
;
(B) E
XISTING UTILITY OR OTHER INCENTIVES TO SUPPORT CUSTOMER
ADOPTION OF THE ALTERNATIVE ENERGY SERVICE
; AND
(C) THE DEGREE OF CUSTOMER SUPPORT FOR THE PROJECT ,
CONSIDERING THE INFORMATION PROVIDED PURSUANT TO SUBSECTION (1)(b)
PAGE 11-HOUSE BILL 24-1370 OF THIS SECTION, AND WITH PRIORITY GIVEN TO PROJECTS THAT HAVE THE
FULL SUPPORT OF POTENTIALLY AFFECTED CUSTOMERS
.
(3) (a) T
HE COMMISSION SHALL ALLOW A DUAL -FUEL UTILITY TO
CURRENTLY RECOVER THE COSTS INCURRED DURING THE DEVELOPMENT OF
A NEIGHBORHOOD
-SCALE ALTERNATIVES PROJECT , INCLUDING COSTS TO
TRANSITION THE DISTRIBUTION SYSTEM
, INVEST IN ELECTRIC
INFRASTRUCTURE
, AND PROVIDE CUSTOMER INCENTIVES . SUCH COSTS ARE
FULLY RECOVERABLE REGARDLESS OF THE PERFORMANCE OF THE
ALTERNATIVE ENERGY SERVICE
. THE COMMISSION SHALL ALSO PERMIT COST
RECOVERY FOR PERSONNEL TO WORK ON THE DEVELOPMENT
, IN WHOLE OR
IN PART
, OF NEIGHBORHOOD-SCALE ALTERNATIVES PROJECTS.
(b) T
HE DUAL-FUEL UTILITY SHALL PROPOSE TO THE COMMISSION
HOW COSTS WILL BE RECOVERED ACROSS THE DUAL
-FUEL UTILITY'S
ELECTRIC AND GAS BUSINESS
.
(c) F
OR GAS PLANNING PILOT COMMUNITIES THAT RECEIVE GAS
SERVICE FROM A DUAL
-FUEL UTILITY BUT ARE NOT SERVED BY THE ELECTRIC
UTILITY THAT IS PART OF THE DUAL
-FUEL UTILITY, THE COMMISSION SHALL
CONSIDER A COST
-SHARING AGREEMENT, AS NECESSARY TO IMPLEMENT A
NEIGHBORHOOD
-SCALE ALTERNATIVES PROJECT , WHICH AGREEMENT THE
DUAL
-FUEL UTILITY PROPOSES TO ENTER INTO WITH A LOCAL COOPERATIVE
ELECTRIC ASSOCIATION OR MUNICIPALLY OWNED ELECTRIC UTILITY TO MAKE
THE INCUMBENT GAS UTILITY THAT IS PART OF THE DUAL
-FUEL UTILITY AND
ITS CUSTOMERS WHOLE FOR ANY PROJECTS APPROVED BY THE COMMISSION
WHEN THERE IS A COST SHIFT
. THIS SUBSECTION (3)(c) SHALL NOT BE
CONSTRUED TO SUBJECT A LOCAL COOPERATIVE ELECTRIC ASSOCIATION OR
MUNICIPALLY OWNED ELECTRIC UTILITY ENTERING INTO SUCH AN
AGREEMENT WITH A DUAL
-FUEL UTILITY TO THE JURISDICTION OF THE
COMMISSION
. ANY FEDERAL, STATE, OR LOCAL FUNDING MADE AVAILABLE
FOR A PROJECT SHALL BE APPLIED PRIOR TO APPLICATION OF UTILITY
PROGRAMMATIC FUNDS
, SUCH AS DEMAND-SIDE MANAGEMENT, BENEFICIAL
ELECTRIFICATION
, OR OTHER EXISTING OR FUTURE CUSTOMER -SITED
PROGRAMS
, INCENTIVES, REBATES, AND FINANCING.
(4) I
N APPROVING A NEIGHBORHOOD -SCALE ALTERNATIVES PROJECT
IN A GAS PLANNING PILOT COMMUNITY
, THE COMMISSION MAY MODIFY THE
GAS UTILITY
'S SERVICE REQUIREMENT FOR SELECT PREMISES WITH AN
ALTERNATIVE ENERGY SERVICE REQUIREMENT
. NOTWITHSTANDING ANY
PAGE 12-HOUSE BILL 24-1370 PROVISION OF LAW TO THE CONTRARY , NOTHING IN THIS SECTION AFFECTS
OR ABRIDGES A DUAL
-FUEL UTILITY'S SERVICE REQUIREMENTS IN AREAS
OUTSIDE THE NEIGHBORHOOD
-SCALE ALTERNATIVES PROJECT AREA . THE
COMMISSION MAY IMPOSE AN ALTERNATIVE ENERGY SERVICE REQUIREMENT
FOR ANY CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY GRANTED
TO THE GAS UTILITY TO PROVIDE SERVICE TO THE TARGETED AREA THAT IS
THE SUBJECT OF THE NEIGHBORHOOD
-SCALE ALTERNATIVES PROJECT IF THE
COMMISSION FINDS THAT ALTERNATIVE ENERGY SERVICE IS AVAILABLE
.
(5) (a) A
S PART OF A NEIGHBORHOOD -SCALE ALTERNATIVES
PROJECT
, A DUAL-FUEL UTILITY MAY PROPOSE TO FUND CONVERSION OF
EXISTING GAS APPLIANCES OR EQUIPMENT TO NONEMITTING THERMAL
RESOURCES
, INCLUDING OFFERING INCREMENTAL INCENTIVES OR FINANCING
ABOVE THAT APPROVED FOR CLEAN HEAT PLANS
, AS DEFINED IN SECTION
40-3.2-108; BENEFICIAL ELECTRIFICATION PLANS, AS DEFINED IN SECTION
40-3.2-109; DEMAND-SIDE MANAGEMENT PROGRAMS , AS DEFINED IN
SECTION
40-1-102; OR OTHER RELATED FILINGS.
(b) A
DUAL-FUEL UTILITY MAY ALSO PROPOSE TO OFFER NEW RATE
STRUCTURES TO PAY FOR THERMAL ENERGY NETWORKS OR OTHER
NONEMITTING THERMAL RESOURCES AS AN ALTERNATIVE ENERGY SERVICE
,
UNDER WHICH RATE STRUCTURES CUSTOMERS PAY THE UTILITY FOR
THERMAL ENERGY NETWORK SERVICES TO OFFSET THE INITIAL COST OF NEW
APPLIANCES OR OTHER EQUIPMENT
. IF A DUAL-FUEL UTILITY PROPOSES TO
OFFER SUCH A RATE
, THE COMMISSION SHALL NOT GRANT THE DUAL -FUEL
UTILITY CURRENT COST RECOVERY PURSUANT TO SUBSECTION
(3)(a) OF THIS
SECTION
. A DUAL-FUEL UTILITY SHALL HAVE THE RIGHT OF FIRST REFUSAL
TO OFFER THERMAL ENERGY NETWORK SERVICE OR ALTERNATIVE ENERGY
SERVICE AS PART OF A NEIGHBORHOOD
-SCALE ALTERNATIVES PROJECT, IF
THE DUAL
-FUEL UTILITY SETS FORTH ITS INTENTION TO EXERCISE ITS RIGHT
OF FIRST REFUSAL AND DEFINES THE SCOPE OF SUCH EXERCISE IN THE
APPLICATION TO THE COMMISSION AND SUCH RIGHT OF FIRST REFUSAL
:
(I) I
S LIMITED TO NEIGHBORHOOD-SCALE ALTERNATIVES PROJECTS
IN GAS PLANNING PILOT COMMUNITIES
; AND
(II) IS EXERCISED WITHIN TWO YEARS AFTER APPROVAL BY THE
COMMISSION
.
(6) I
F A NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT QUALIFIES
PAGE 13-HOUSE BILL 24-1370 AS AN ENERGY SECTOR PUBLIC WORKS PROJECT , AS DEFINED IN SECTION
24-92-303, A DUAL-FUEL UTILITY SHALL COMPLY WITH ALL REQUIREMENTS
SET FORTH IN PART
3 OF ARTICLE 92 OF TITLE 24. THE DUAL-FUEL UTILITY
SHALL UTILIZE UTILITY EMPLOYEES OR CONTRACTORS THAT MEET THE
APPRENTICESHIP UTILIZATION REQUIREMENTS SET FORTH IN SECTION
24-92-115 TO SERVICE AND MAINTAIN ANY THERMAL ENERGY OR
GEOTHERMAL ENERGY PROJECTS OWNED BY THE DUAL
-FUEL UTILITY AND
APPROVED BY THE COMMISSION UNDER THIS SECTION
.
(7) B
Y JUNE 1 OF EACH YEAR FOLLOWING APPROVAL OF A
NEIGHBORHOOD
-SCALE ALTERNATIVES PROJECT , A DUAL-FUEL UTILITY
SHALL SUBMIT A REPORT TO THE COMMISSION ON THE IMPLEMENTATION OF
THE NEIGHBORHOOD
-SCALE ALTERNATIVES PROJECT . THE REPORT MUST
INCLUDE
, AT A MINIMUM:
(a) A
N UPDATE ON PROJECT IMPLEMENTATION , INCLUDING THE
DEGREE OF CUSTOMER SUPPORT FOR THE PROJECT
;
(b) A
N EXPLANATION OF CUSTOMER SATISFACTION WITH
ALTERNATIVE ENERGY SERVICE
;
(c) A
CTUAL NET PROJECT COSTS INCURRED , INCLUDING ANY:
(I) S
TATE OR FEDERAL FUNDING OR TAX CREDITS ;
(II) G
AS PLANNING PILOT COMMUNITY INCENTIVES OR FUNDING ;
(III) E
XISTING DUAL-FUEL UTILITY PROGRAM FUNDING ;
(IV) A
DDITIONAL DUAL-FUEL UTILITY INCENTIVES OR FUNDING;
(V) C
USTOMER CONTRIBUTIONS ;
(VI) A
NTICIPATED TOTAL CAPITAL EXPENDITURES BY THE
DUAL
-FUEL UTILITY AND CUSTOMERS , AVOIDED UTILITY CAPITAL
EXPENDITURES
, AND FUTURE DISCOUNTED CUSTOMER UTILITY BILL SAVINGS
OR EXPENSES
; AND
(VII) ESTIMATED OVERALL PROJECT COSTS IF NO INCENTIVES OR TAX
CREDITS HAD BEEN AVAILABLE FOR THE PROJECT
;
PAGE 14-HOUSE BILL 24-1370 (d) THE IMPACT ON TOTAL ENERGY BILL AND ENERGY RELIABILITY
FOR CUSTOMERS RECEIVING ALTERNATIVE ENERGY SERVICE
;
(e) A
NY ENCOUNTERED BARRIERS TO PROJECT IMPLEMENTATION ,
INCLUDING TECHNOLOGICAL OR WORKFORCE BARRIERS , AND THE LESSONS
LEARNED IN OVERCOMING THOSE BARRIERS
;
(f) T
HE IMPACT ON INCOME-QUALIFIED UTILITY CUSTOMERS AND
CUSTOMERS LIVING IN DISPROPORTIONATELY IMPACTED COMMUNITIES
; AND
(g) ANY OTHER INFORMATION REQUIRED BY THE COMMISSION .
(8) B
Y JULY 1, 2028, OR ANOTHER TIME DETERMINED BY THE
COMMISSION
, THE COMMISSION SHALL HIRE A THIRD-PARTY CONSULTANT TO
CONDUCT AN ANALYSIS OF ALL APPROVED AND PROPOSED
NEIGHBORHOOD
-SCALE ALTERNATIVES PROJECTS AND PRESENT THE
FINDINGS OF THE ANALYSIS TO THE COMMISSION AND THE GENERAL
ASSEMBLY
. THE ANALYSIS MUST INCLUDE:
(a) F
OR EACH PROJECT, THE INFORMATION SET FORTH IN SUBSECTION
(7) OF THIS SECTION;
(b) A
COMPARATIVE ANALYSIS OF NET COSTS INCURRED BY ALL
PARTIES IN A NEIGHBORHOOD
-SCALE ALTERNATIVES PROJECT , COMPARED
WITH THE COST OF THE GAS INFRASTRUCTURE PROJECT THAT WAS AVOIDED
,
INCLUDING ANY:
(I) S
TATE OR FEDERAL FUNDING OR TAX CREDITS ;
(II) G
AS PLANNING PILOT COMMUNITY INCENTIVES OR FUNDING ;
(III) E
XISTING DUAL-FUEL UTILITY PROGRAM FUNDING ;
(IV) A
DDITIONAL DUAL-FUEL UTILITY INCENTIVES OR FUNDING;
(V) C
USTOMER CONTRIBUTIONS ;
(VI) A
NTICIPATED TOTAL CAPITAL EXPENDITURES BY THE
DUAL
-FUEL UTILITY AND CUSTOMERS , AVOIDED UTILITY CAPITAL
EXPENDITURES
, AND FUTURE DISCOUNTED CUSTOMER UTILITY BILL SAVINGS
PAGE 15-HOUSE BILL 24-1370 OR EXPENSES; AND
(VII) ESTIMATED OVERALL PROJECT COSTS IF NO INCENTIVES OR TAX
CREDITS HAD BEEN AVAILABLE FOR THE PROJECT
;
(c) T
HE ABILITY OF EACH PROJECT TO DEFER OR AVOID GAS
INFRASTRUCTURE INVESTMENTS
;
(d) T
HE CUSTOMER ECONOMICS OF NONEMITTING THERMAL
RESOURCES COMPARED WITH GAS ALTERNATIVES
;
(e) A
N ANALYSIS OF ANY SUPPLY CHAIN CHALLENGES ;
(f) T
HE OVERALL LESSONS LEARNED FROM THE PROJECTS ;
(g) T
HE PERSPECTIVES OF THE GAS PLANNING PILOT COMMUNITIES
REGARDING THE COLLABORATIVE PROCESS WITH A DUAL
-FUEL UTILITY AND
ANY LESSONS LEARNED FOR IMPROVING THE PROCESS
;
(h) T
HE NET IMPACTS TO THE UTILITY WORKFORCE ; AND
(i) ANY OTHER INFORMATION REQUIRED BY THE COMMISSION .
SECTION 2. Appropriation. (1) For the 2024-25 state fiscal year,
$43,650 is appropriated to the office of the governor for use by the
Colorado energy office. This appropriation is from the general fund, and is
based on an assumption that the office will require an additional 0.4 FTE.
To implement this act, the office may use this appropriation for program
administration.
(2) For the 2024-25 state fiscal year, $29,678 is appropriated to the
department of regulatory agencies for use by the public utilities
commission. This appropriation is from the public utilities commission
fixed utility fund created in section 40-2-114 (1)(b)(II), C.R.S. To
implement this act, the commission may use this appropriation as follows:
(a) $22,752 for personal services, which amount is based on an
assumption that the commission will require an additional 0.2 FTE; and
(b) $6,926 for operating expenses.
PAGE 16-HOUSE BILL 24-1370 SECTION 3. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly; except
that, if a referendum petition is filed pursuant to section 1 (3) of article V
of the state constitution against this act or an item, section, or part of this act
within such period, then the act, item, section, or part will not take effect
unless approved by the people at the general election to be held in
November 2024 and, in such case, will take effect on the date of the official
declaration of the vote thereon by the governor.
____________________________ ____________________________
Julie McCluskie Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 17-HOUSE BILL 24-1370