Colorado 2024 Regular Session

Colorado House Bill HB1370 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	Second Regular Session
	2	+	Seventy-fourth General Assembly
	3	+	STATE OF COLORADO
	4	+	REREVISED
	5	+	This Version Includes All Amendments
	6	+	Adopted in the Second House
	7	+	LLS NO. 24-0411.04 Clare Haffner x6137
1	8		HOUSE BILL 24-1370
2		-	BY REPRESENTATIVE(S) Kipp and Willford, Boesenecker, Brown,
3		-	Epps, Garcia, Herod, Jodeh, Joseph, Lindsay, Mabrey, Marvin, Ortiz,
4		-	Parenti, Ricks, Rutinel, Sirota, Story, Valdez, Vigil, Woodrow;
5		-	also SENATOR(S) Winter F., Buckner, Cutter, Hansen, Jaquez Lewis,
6		-	Michaelson Jenet, Priola.
	9	+	House Committees Senate Committees
	10	+	Energy & Environment Transportation & Energy
	11	+	Appropriations Appropriations
	12	+	A BILL FOR AN ACT
7	13		C
8		-	ONCERNING MEASURES TO REDUCE THE COST OF USE OF NATURAL GAS
9		-	INFRASTRUCTURE
10		-	, AND, IN CONNECTION THEREWITH , MAKING AN
11		-	APPROPRIATION
12		-	.
13		-
14		-	Be it enacted by the General Assembly of the State of Colorado:
15		-	SECTION 1. In Colorado Revised Statutes, add article 3.3 to title
16		-	40 as follows:
17		-	ARTICLE 3.3
18		-	Gas Infrastructure Planning
19		-	40-3.3-101. Definitions. A
20		-	S USED IN THIS ARTICLE 3.3, UNLESS THE
21		-	CONTEXT OTHERWISE REQUIRES
22		-	:
23		-	(1) "A
24		-	LTERNATIVE ENERGY SERVICE " MEANS A LOW - OR
25		-	NOTE: This bill has been prepared for the signatures of the appropriate legislative
26		-	officers and the Governor. To determine whether the Governor has signed the bill
27		-	or taken other action on it, please consult the legislative status sheet, the legislative
28		-	history, or the Session Laws.
29		-	________
30		-	Capital letters or bold & italic numbers indicate new material added to existing law; dashes
31		-	through words or numbers indicate deletions from existing law and such material is not part of
32		-	the act. ZERO-CARBON RESIDENTIAL, COMMERCIAL, OR INDUSTRIAL ENERGY SERVICE
33		-	THAT IS ABLE TO MEET A CUSTOMER
34		-	'S END USE NEED AND DOES NOT
35		-	COMBUST METHANE
36		-	-, PROPANE-, OR PETROLEUM-DERIVED GAS ON SITE IN
37		-	DOING SO
38		-	.
39		-	(2) "C
40		-	OLORADO ENERGY OFFICE" MEANS THE COLORADO ENERGY
41		-	OFFICE CREATED IN SECTION
42		-	24-38.5-101.
43		-	(3) "D
44		-	ISTRIBUTION SYSTEM" HAS THE MEANING SET FORTH IN
45		-	SECTION
46		-	40-2-115 (2)(b) AND INCLUDES THE PIPING AND ASSOCIATED
47		-	FACILITIES USED TO DELIVER GEOLOGICAL GAS OR RECOVERED METHANE
48		-	.
49		-	(4) "D
50		-	UAL-FUEL UTILITY" MEANS AN INVESTOR-OWNED UTILITY IN
51		-	WHICH ONE COMPANY OR A SUBSIDIARY OF THE SAME COMPANY OPERATES
52		-	BOTH AN ELECTRIC AND A GAS UTILITY THAT HAVE SERVICE TERRITORIES IN
53		-	THE STATE WHERE GREATER THAN FIFTY PERCENT OF ALL CUSTOMERS IN
54		-	THOSE TERRITORIES RECEIVE BOTH GAS AND ELECTRIC SERVICE FROM A
55		-	UTILITY OPERATED BY THAT COMPANY OR A SUBSIDIARY OF THE SAME
56		-	COMPANY
57		-	.
58		-	(5) "G
59		-	AS" MEANS NATURAL OR GEOLOGICAL GAS , RECOVERED
60		-	METHANE
61		-	, OR ANY MIXTURE OF NATURAL OR GEOLOGICAL GAS OR
62		-	RECOVERED METHANE THAT IS TRANSPORTED BY A COMMON CARRIER OR
63		-	DEDICATED PIPELINE
64		-	, INCLUDING FLAMMABLE GAS ; MANUFACTURED GAS;
65		-	PETROLEUM OR OTHER HYDROCARBON GASES , SUCH AS PROPANE; OR ANY
66		-	MIXTURE OF FOSSIL GASES THAT IS INJECTED INTO A PIPELINE AND
67		-	TRANSMITTED
68		-	, DISTRIBUTED, OR FURNISHED BY A UTILITY.
69		-	(6) "G
70		-	AS INFRASTRUCTURE PLAN" MEANS A REQUIREMENT FOR GAS
71		-	UTILITIES ESTABLISHED BY THE COMMISSION THAT IS DESIGNED TO
72		-	ESTABLISH A PROCESS TO DETERMINE THE NEED FOR
73		-	, AND POTENTIAL
74		-	ALTERNATIVES TO
75		-	, CAPITAL INVESTMENT, CONSISTENT WITH THE OBJECTIVES
76		-	OF MAINTAINING JUST AND REASONABLE RATES
77		-	; ENSURING SYSTEM SAFETY,
78		-	RELIABILITY, AND RESILIENCY; AND PROTECTING INCOME-QUALIFIED UTILITY
79		-	CUSTOMERS AND DISPROPORTIONATELY IMPACTED COMMUNITIES
80		-	.
81		-	(7) "G
82		-	AS PLANNING PILOT COMMUNITY " MEANS A LOCAL
83		-	GOVERNMENT IN WHICH CONSTITUENTS HAVE GAS SERVICE PROVIDED BY A
84		-	DUAL
85		-	-FUEL UTILITY AND AN ACTIVE FRANCHISE AGREEMENT WITH THE
86		-	DUAL
87		-	-FUEL UTILITY, WHICH LOCAL GOVERNMENT FORMALLY INDICATES AN
88		-	PAGE 2-HOUSE BILL 24-1370 INTEREST IN WORKING WITH THE DUAL-FUEL UTILITY TO MUTUALLY EXPLORE
89		-	OPPORTUNITIES FOR NEIGHBORHOOD
90		-	-SCALE ALTERNATIVES PROJECTS ,
91		-	INCLUDING THROUGH THE EXCHANGE OF UTILITY GAS INFRASTRUCTURE
92		-	DATA AND COMMUNITY DEVELOPMENT PLANS
93		-	.
94		-	(8) "G
95		-	REENHOUSE GAS REDUCTION GOALS " MEANS THE STATE'S
96		-	GREENHOUSE GAS REDUCTION GOALS DESCRIBED IN SECTION
97		-	25-7-102
98		-	(2)(g).
99		-	(9) "I
100		-	NCOME-QUALIFIED UTILITY CUSTOMER" HAS THE MEANING SET
101		-	FORTH IN SECTION
102		-	40-3-106 (1)(d)(II).
103		-	(10) "L
104		-	OCAL GOVERNMENT " MEANS A HOME RULE OR STATUTORY
105		-	COUNTY
106		-	, CITY, OR CITY AND COUNTY.
107		-	(11) "N
108		-	EIGHBORHOOD-SCALE ALTERNATIVES PROJECT " MEANS A
109		-	PROJECT IN A GAS PLANNING PILOT COMMUNITY
110		-	:
111		-	(a) W
112		-	HERE A DUAL-FUEL UTILITY:
113		-	(I) P
114		-	ROVIDES BOTH GAS AND ELECTRIC SERVICE ;
115		-	(II) P
116		-	ROVIDES GAS SERVICE AND A MUNICIPALLY OWNED UTILITY
117		-	OPERATED BY THE GAS PLANNING PILOT COMMUNITY PROVIDES ELECTRIC
118		-	SERVICE
119		-	; OR
120		-	(III) PROVIDES GAS SERVICE AND A COOPERATIVE ELECTRIC
121		-	ASSOCIATION THAT SERVES A GAS PLANNING PILOT COMMUNITY HAS
122		-	VOLUNTARILY PARTNERED WITH THE DUAL
123		-	-FUEL UTILITY; AND
124		-	(b) THAT GEOGRAPHICALLY TARGETS DECOMMISSIONING A PORTION
125		-	OF THE GAS DISTRIBUTION SYSTEM OR AVOIDS EXPANDING THE GAS
126		-	DISTRIBUTION SYSTEM IN ORDER TO SERVE NEW CONSTRUCTION PROJECTS
127		-	AND PROVIDES ALTERNATIVE ENERGY SERVICE TO BUILDINGS WITHIN THE
128		-	PROJECT AREA THAT REDUCES FUTURE GREENHOUSE GAS EMISSIONS
129		-	REQUIRED TO SERVE BUILDINGS
130		-	.
131		-	(12) "N
132		-	ONEMITTING THERMAL RESOURCE " MEANS EFFICIENT
133		-	THERMAL ENERGY FOR HEATING
134		-	, COOLING, OR HOT WATER, WHICH ENERGY
135		-	DOES NOT REQUIRE COMBUSTION OF GAS
136		-	, SUCH AS AN AIR-SOURCE HEAT
137		-	PAGE 3-HOUSE BILL 24-1370 PUMP, AS DEFINED IN SECTION 39-22-554 (2)(a); A GROUND-SOURCE HEAT
138		-	PUMP
139		-	, AS DEFINED IN SECTION 39-22-554 (2)(g); A HEAT PUMP WATER
140		-	HEATER
141		-	; A THERMAL ENERGY SYSTEM ; OR A THERMAL ENERGY NETWORK .
142		-	(13) "P
143		-	IPELINE SEGMENT" MEANS A DISCRETE PORTION OF THE
144		-	DISTRIBUTION SYSTEM AND ALL ANCILLARY STRUCTURES
145		-	, VALVES, AND
146		-	OTHER SYSTEMS NEEDED TO DISTRIBUTE GAS
147		-	. A PIPELINE SEGMENT MUST BE
148		-	THE SMALLEST INCREMENTAL UNIT POSSIBLE
149		-	, AS DEFINED BY PIPELINE
150		-	MATERIALS
151		-	, GEOGRAPHICAL FEATURES , AND THE DESIGN OF THE
152		-	DISTRIBUTION SYSTEM
153		-	.
154		-	(14) "T
155		-	HERMAL ENERGY NETWORK " HAS THE MEANING SET FORTH
156		-	IN SECTION
157		-	40-3.2-108 (2)(s).
158		-	(15) "T
159		-	HERMAL ENERGY SYSTEM " HAS THE MEANING SET FORTH IN
160		-	SECTION
161		-	40-3.2-108 (2)(t).
162		-	40-3.3-102. Request for information - gas planning pilot
163		-	community - disclosures - repeal. (1) (a) B
164		-	Y DECEMBER 1, 2024, THE
165		-	COLORADO ENERGY OFFICE SHALL ISSUE A REQUEST FOR INFORMATION TO
166		-	IDENTIFY LOCAL GOVERNMENTS WHOSE RESIDENTS ARE SERVED BY A
167		-	DUAL
168		-	-FUEL UTILITY THAT ARE INTERESTED IN BECOMING A GAS PLANNING
169		-	PILOT COMMUNITY
170		-	.
171		-	(b) T
172		-	HE COLORADO ENERGY OFFICE SHALL INCLUDE IN THE REQUEST
173		-	FOR INFORMATION THE MINIMUM CRITERIA THAT A LOCAL GOVERNMENT
174		-	MUST MEET IN ORDER TO BECOME A GAS PLANNING PILOT COMMUNITY
175		-	,
176		-	INCLUDING:
177		-	(I) A
178		-	DEMONSTRATION THAT DESIGNATION AS A GAS PLANNING PILOT
179		-	COMMUNITY WOULD ALIGN WITH THE LOCAL GOVERNMENT
180		-	'S CLIMATE AND
181		-	ENERGY AFFORDABILITY GOALS
182		-	;
183		-	(II) A
184		-	WILLINGNESS TO PROMOTE NEIGHBORHOOD -SCALE
185		-	ALTERNATIVES PROJECTS AND TO SUPPORT
186		-	, ENGAGE, AND EDUCATE
187		-	RESIDENTS WITHIN A COMMUNITY FOR WHICH A NEIGHBORHOOD
188		-	-SCALE
189		-	ALTERNATIVES PROJECT IS PROPOSED PRIOR TO APPROVAL BY THE
190		-	COMMISSION
191		-	; AND
192		-	(III) A COMMITMENT OF INTERNAL OR EXTERNAL STAFF RESOURCES
193		-	PAGE 4-HOUSE BILL 24-1370 TO IDENTIFY AND IMPLEMENT NEIGHBORHOOD -SCALE ALTERNATIVES
194		-	PROJECTS
195		-	.
196		-	(c) A
197		-	T LEAST THIRTY DAYS PRIOR TO ISSUING THE REQUEST FOR
198		-	INFORMATION
199		-	, THE COLORADO ENERGY OFFICE SHALL PUBLISH A DRAFT OF
200		-	THE REQUEST FOR INFORMATION ON ITS WEBSITE AND PROVIDE AN
201		-	OPPORTUNITY FOR THE PUBLIC TO SUBMIT WRITTEN COMMENTS
202		-	.
203		-	(2) (a) B
204		-	Y APRIL 30, 2025, THE COLORADO ENERGY OFFICE AND A
205		-	DUAL
206		-	-FUEL UTILITY SHALL JOINTLY FILE WITH THE COMMISSION THE RESULTS
207		-	OF THE REQUEST FOR INFORMATION REQUIRED BY SUBSECTION
208		-	(1)(a) OF THIS
209		-	SECTION
210		-	, IDENTIFYING UP TO FIVE PROPOSED GAS PLANNING PILOT
211		-	COMMUNITIES
212		-	. IN IDENTIFYING PROPOSED GAS PLANNING PILOT
213		-	COMMUNITIES
214		-	, THE COLORADO ENERGY OFFICE AND A DUAL -FUEL UTILITY
215		-	SHALL PRIORITIZE LOCAL GOVERNMENTS THAT ARE INTERESTED IN PURSUING
216		-	THERMAL ENERGY NETWORK OR GEOTHERMAL ENERGY PROJECTS AS PART
217		-	OF THE PROPOSED GAS PLANNING PILOT COMMUNITY
218		-	'S EVALUATION OF ANY
219		-	POTENTIAL NEIGHBORHOOD
220		-	-SCALE ALTERNATIVES PROJECT PURSUANT TO
221		-	SECTION
222		-	40-3.3-103. THE COLORADO ENERGY OFFICE AND THE DUAL -FUEL
223		-	UTILITY SHALL ALSO JOINTLY FILE A DRAFT AGREEMENT BETWEEN THE
224		-	DUAL
225		-	-FUEL UTILITY AND ANY PROPOSED GAS PLANNING PILOT COMMUNITY ,
226		-	WHICH DRAFT AGREEMENT MUST :
227		-	(I) I
228		-	DENTIFY THE ROLES AND RESPONSIBILITIES OF THE DUAL -FUEL
229		-	UTILITY AND THE PROPOSED GAS PLANNING PILOT COMMUNITY IN
230		-	IDENTIFYING NEIGHBORHOOD
231		-	-SCALE ALTERNATIVES PROJECTS;
232		-	(II) I
233		-	DENTIFY TIME FRAMES FOR EACH PARTY TO FURNISH DATA OR
234		-	RESPOND TO REQUESTS FOR DATA FROM THE OTHER PARTY
235		-	;
236		-	(III) I
237		-	NCLUDE ANY NECESSARY WAIVERS OF COMMISSION RULES TO
238		-	FACILITATE DATA TRANSFER BETWEEN THE PARTIES
239		-	;
240		-	(IV) I
241		-	NCLUDE A PROCESS TO ADDRESS CONFLICTS BETWEEN THE TWO
242		-	PARTIES
243		-	; AND
244		-	(V) INDICATE WHETHER THE PROPOSED GAS PLANNING PILOT
245		-	COMMUNITY HAS DEMONSTRATED AN INTEREST IN PURSUING THERMAL
246		-	ENERGY NETWORK OR GEOTHERMAL ENERGY PROJECTS
247		-	.
248		-	PAGE 5-HOUSE BILL 24-1370 (b) THE COMMISSION SHALL PROVIDE AN OPPORTUNITY FOR THE
249		-	PUBLIC TO SUBMIT WRITTEN COMMENTS ON THE FILING
250		-	.
251		-	(c) B
252		-	Y JUNE 30, 2025, THE COMMISSION SHALL APPROVE OR MODIFY
253		-	THE LIST OF PROPOSED GAS PLANNING PILOT COMMUNITIES
254		-	; EXCEPT THAT
255		-	THE COMMISSION SHALL NOT INCREASE THE NUMBER OF PROPOSED GAS
256		-	PLANNING PILOT COMMUNITIES BEYOND FIVE
257		-	.
258		-	(3) B
259		-	Y OCTOBER 1, 2025, A DUAL-FUEL UTILITY SHALL ENTER INTO
260		-	AN AGREEMENT WITH EACH LOCAL GOVERNMENT THAT HAS BEEN APPROVED
261		-	AS A GAS PLANNING PILOT COMMUNITY AND SHALL SUBMIT TO THE
262		-	COMMISSION A LIST OF THE GAS PLANNING PILOT COMMUNITIES WITH WHICH
263		-	THE DUAL
264		-	-FUEL UTILITY HAS ESTABLISHED AN AGREEMENT . THE DUAL-FUEL
265		-	UTILITY AND LOCAL GOVERNMENT MAY AGREE TO EXTEND THIS DEADLINE
266		-	.
267		-	(4) S
268		-	UBSECTIONS (1) TO (3) OF THIS SECTION ARE REPEALED ,
269		-	EFFECTIVE JUNE 1, 2028.
270		-	(5) (a) U
271		-	NLESS OTHERWISE DIRECTED BY THE COMMISSION OR
272		-	REQUESTED BY THE GAS PLANNING PILOT COMMUNITY
273		-	, A DUAL-FUEL UTILITY
274		-	SHALL PROVIDE EACH GAS PLANNING PILOT COMMUNITY
275		-	, THE COMMISSION,
276		-	AND THE COLORADO ENERGY OFFICE WITH DATA AND INFORMATION TO
277		-	INFORM THE EVALUATION OF POTENTIAL NEIGHBORHOOD
278		-	-SCALE
279		-	ALTERNATIVES PROJECTS THAT INCLUDES
280		-	:
281		-	(I) T
282		-	HE LOCATION OF ANY PLANNED GAS INFRASTRUCTURE PROJECTS
283		-	IN THE GAS PLANNING PILOT COMMUNITY WITHIN THE SIX
284		-	-YEAR GAS PROJECT
285		-	PLANNING FORECAST IN THE DUAL
286		-	-FUEL UTILITY'S MOST RECENTLY
287		-	APPROVED GAS INFRASTRUCTURE PLAN OR IDENTIFIED BY THE DUAL
288		-	-FUEL
289		-	UTILITY FOR INCLUSION IN A FUTURE GAS INFRASTRUCTURE PLAN TO THE
290		-	EXTENT AVAILABLE
291		-	; AND
292		-	(II) THE FOLLOWING INFORMATION REGARDING THE PLANNED GAS
293		-	INFRASTRUCTURE PROJECTS DESCRIBED IN SUBSECTION
294		-	(5)(a)(I) OF THIS
295		-	SECTION
296		-	:
297		-	(A) T
298		-	HE PROJECT NAME;
299		-	(B) T
300		-	HE PROJECT CATEGORY , CONSISTENT WITH THE PLANNED
301		-	PROJECTS CATEGORIES DESCRIBED IN APPLICABLE COMMISSION RULES
302		-	;
303		-	PAGE 6-HOUSE BILL 24-1370 (C) A DESCRIPTION OF THE GENERAL SCOPE OF WORK AND AN
304		-	EXPLANATION OF THE NEED FOR THE PROJECT
305		-	, INCLUDING ANY APPLICABLE
306		-	CODE REQUIREMENTS OF THE
307		-	UNITED STATES DEPARTMENT OF
308		-	TRANSPORTATION
309		-	'S PIPELINE AND HAZARDOUS MATERIALS SAFETY
310		-	ADMINISTRATION
311		-	;
312		-	(D) T
313		-	HE PROJECTED LIFE OF THE PROJECT;
314		-	(E) A
315		-	N INDICATION OF WHETHER THE PROJECT IS PRESENTED AS A
316		-	GAS INFRASTRUCTURE PLAN ACTION PERIOD PROJECT OR A GAS
317		-	INFRASTRUCTURE PLAN INFORMATIONAL PERIOD PROJECT PURSUANT TO
318		-	APPLICABLE COMMISSION RULES
319		-	;
320		-	(F) T
321		-	HE ANTICIPATED: CONSTRUCTION START DATE FOR THE
322		-	PROJECT
323		-	; CONSTRUCTION PERIOD FOR THE PROJECT , INCLUDING AN
324		-	INDICATION OF ANY CONSTRUCTION PHASES
325		-	; AND IN-SERVICE DATE FOR THE
326		-	PROJECT
327		-	;
328		-	(G) T
329		-	HE COST-ESTIMATE CLASSIFICATION FOR THE PROJECT , USING
330		-	THE DUAL
331		-	-FUEL UTILITY'S OR AN INDUSTRY-ACCEPTED COST-ESTIMATE
332		-	CLASSIFICATION INDEX
333		-	; SUPPORT FOR THE COST-ESTIMATE CLASSIFICATION;
334		-	AND THE TOTAL COST ESTIMATE FOR THE PROJECT ;
335		-	(H) T
336		-	HE TECHNICAL DETAILS OF THE PROJECT , SUCH AS THE
337		-	PHYSICAL EQUIPMENT CHARACTERISTICS OF THE PROPOSED FACILITIES
338		-	,
339		-	PIPELINE LENGTH, PIPELINE DIAMETER, PROJECT MATERIALS, AND MAXIMUM
340		-	ALLOWABLE OPERATING PRESSURE
341		-	;
342		-	(I) T
343		-	HE PROJECT LOCATION AND AN ILLUSTRATIVE MAP OF THE GAS
344		-	DISTRIBUTION SYSTEM FACILITIES
345		-	, SUBJECT TO NECESSARY
346		-	CONFIDENTIALITY PROVISIONS
347		-	, INCLUDING: THE PRESSURE DISTRICT OR
348		-	GEOGRAPHIC AREA THAT REQUIRES THE PROPOSED FACILITIES
349		-	, THE EXISTING
350		-	AND PROPOSED REGULATOR STATIONS AND EXISTING AND PROPOSED
351		-	DISTRIBUTION PIPING AND HIGHER CAPACITY PIPELINES SERVED BY OR
352		-	REPRESENTING THE PROPOSED FACILITIES
353		-	, THE LOCATIONS OF ANY NEARBY
354		-	DISPROPORTIONATELY IMPACTED COMMUNITIES
355		-	, AND ANY OTHER
356		-	INFORMATION NECESSARY TO ALLOW THE LOCAL GOVERNMENT TO MAKE A
357		-	THOROUGH EVALUATION OF THE PROJECT
358		-	;
359		-	(J) T
360		-	O THE EXTENT PRACTICABLE , THE NUMBER OF CUSTOMERS ,
361		-	PAGE 7-HOUSE BILL 24-1370 ANNUAL SALES , AND DESIGN PEAK DEM AND REQUIREMENTS ,
362		-	DISAGGREGATED BY CUSTOMER CLASS , POTENTIALLY DIRECTLY IMPACTED
363		-	OR SERVED BY THE PROJECT
364		-	;
365		-	(K) A
366		-	NY PERMITS REQUIRED FOR WORK ON THE PROJECT TO BEGIN ;
367		-	AND
368		-	(L) ANY ENVIRONMENTAL REQUIREMENTS ASSOCIATED WITH
369		-	COMPLETION OF THE PROJECT
370		-	.
371		-	(b) A
372		-	DUAL-FUEL UTILITY SHALL PROVIDE GAS PLANNING PILOT
373		-	COMMUNITY STAFF AND CONSULTANTS
374		-	, WHO HAVE SIGNED APPROPRIATE
375		-	NONDISCLOSURE AGREEMENTS
376		-	, WITH ALL REQUESTED GAS AND ELECTRIC
377		-	CUSTOMER USAGE AND DESIGN PEAK DEMAND DATA
378		-	, TO THE EXTENT
379		-	AVAILABLE AND DISAGGREGATED TO THE INDIVIDUAL CUSTOMER
380		-	, FOR ALL
381		-	PLANNED GAS INFRASTRUCTURE PROJECTS LOCATED IN A GAS PLANNING
382		-	PILOT COMMUNITY WITHIN THE SIX
383		-	-YEAR GAS PROJECT PLANNING FORECAST
384		-	IN THE DUAL
385		-	-FUEL UTILITY'S MOST RECENTLY APPROVED GAS
386		-	INFRASTRUCTURE PLAN OR IDENTIFIED BY THE DUAL
387		-	-FUEL UTILITY FOR
388		-	INCLUSION IN A FUTURE GAS INFRASTRUCTURE PLAN
389		-	. THE DUAL-FUEL
390		-	UTILITY SHALL PROVIDE SUCH INFORMATION WITHIN THE RELEVANT TIME
391		-	FRAME ESTABLISHED PURSUANT TO SUBSECTION
392		-	(2)(a)(II) OF THIS SECTION.
393		-	(c) T
394		-	HE INFORMATION DESCRIBED IN SUBSECTIONS (5)(a) AND (5)(b)
395		-	OF THIS SECTION IS EXEMPT FROM THE "COLORADO OPEN RECORDS ACT",
396		-	PART 2 OF ARTICLE 72 OF TITLE 24.
397		-	40-3.3-103. Neighborhood-scale alternatives projects - cost
398		-	recovery - reporting requirement. (1) A
399		-	DUAL-FUEL UTILITY SHALL WORK
400		-	WITH A GAS PLANNING PILOT COMMUNITY TO RANK AND PRIORITIZE
401		-	NEIGHBORHOOD
402		-	-SCALE ALTERNATIVES PROJECTS WITHIN EACH GAS
403		-	PLANNING PILOT COMMUNITY BASED ON LOCAL GOVERNMENT INPUT AND
404		-	CONSIDERATION OF
405		-	:
406		-	(a) T
407		-	HE NUMBER AND CUSTOMER CLASS SERVED BY EACH PIPELINE
408		-	SEGMENT INCLUDED IN A NEIGHBORHOOD
409		-	-SCALE ALTERNATIVES PROJECT;
410		-	(b) T
411		-	HE DEGREE OF SUPPORT FOR THE NEIGHBORHOOD -SCALE
412		-	ALTERNATIVES PROJECT FROM CUSTOMERS POTENTIALLY IMPACTED BY THE
413		-	PROJECT
414		-	, WITH PREFERENCE GIVEN TO THOSE PROJECTS THAT HAVE FULL
415		-	PAGE 8-HOUSE BILL 24-1370 SUPPORT FROM POTENTIALLY IMPACTED CUSTOMERS ;
416		-	(c) T
417		-	HE COST-EFFECTIVENESS OF THE NEIGHBORHOOD -SCALE
418		-	ALTERNATIVES PROJECT
419		-	, USING THE COST-BENEFIT HANDBOOK FROM THE
420		-	DUAL
421		-	-FUEL UTILITY'S MOST RECENT GAS INFRASTRUCTURE PLAN ;
422		-	(d) T
423		-	HE NET COST TO CUSTOMERS POTENTIALLY PARTICIPATING IN
424		-	THE NEIGHBORHOOD
425		-	-SCALE ALTERNATIVES PROJECT;
426		-	(e) T
427		-	HE AVAILABILITY OF ALTERNATIVE ENERGY SERVICE ,
428		-	INCLUDING FOR SCENARIOS WITH ENHANCED GAS AND ELECTRIC DEMAND
429		-	RESPONSE OR DEMAND FLEXIBILITY
430		-	;
431		-	(f) T
432		-	HE ABILITY OF THERMAL ENERGY NETWORKS TO SERVE THE
433		-	AREA COVERED BY THE NEIGHBORHOOD
434		-	-SCALE ALTERNATIVES PROJECT ,
435		-	WITH PRIORITY GIVEN TO PROJECTS THAT INCLUDE A THERMAL ENERGY
436		-	NETWORK OR A GEOTHERMAL ENERGY PROJECT
437		-	;
438		-	(g) W
439		-	HETHER THE NEIGHBORHOOD -SCALE ALTERNATIVES PROJECT
440		-	IS PART OF A NEW DEVELOPMENT OR WOULD SERVE EXISTING CUSTOMERS
441		-	,
442		-	OR BOTH;
443		-	(h) T
444		-	HE PRIORITIZATION OF PIPELINE SEGMENTS THAT ARE PART OF
445		-	PROJECTS INCLUDED IN A DUAL
446		-	-FUEL UTILITY'S GAS INFRASTRUCTURE PLAN
447		-	OR OTHERWISE IDENTIFIED BY THE DUAL
448		-	-FUEL UTILITY FOR INCLUSION IN A
449		-	FUTURE GAS INFRASTRUCTURE PLAN
450		-	, TO THE EXTENT THIS INFORMATION IS
451		-	AVAILABLE
452		-	; AND
453		-	(i) THE LOCATION OF ANY NEARBY DISPROPORTIONATELY IMPACTED
454		-	COMMUNITY OR PIPELINE SEGMENTS THAT SERVE DISPROPORTIONATELY
455		-	IMPACTED COMMUNITIES
456		-	.
457		-	(2) (a) (I) P
458		-	RIOR TO JUNE 1, 2026, A DUAL-FUEL UTILITY AND LOCAL
459		-	GOVERNMENT SHALL JOINTLY SUBMIT FOR APPROVAL AT LEAST ONE INITIAL
460		-	NEIGHBORHOOD
461		-	-SCALE ALTERNATIVES PROJECT, TO BE LOCATED WITHIN A
462		-	GAS PLANNING PILOT COMMUNITY
463		-	, TO THE COMMISSION IF THE
464		-	NEIGHBORHOOD
465		-	-SCALE ALTERNATIVES PROJECT HAS THE FULL SUPPORT OF
466		-	POTENTIALLY AFFECTED CUSTOMERS
467		-	. THE FILING MUST ALSO CONTAIN A
468		-	LIST OF POTENTIAL PROJECTS THAT ARE RANKED HIGHLY BUT DO NOT HAVE
469		-	FULL CUSTOMER SUPPORT AT THE TIME OF THE FILING
470		-	.
471		-	PAGE 9-HOUSE BILL 24-1370 (II) PRIOR TO JUNE 1, 2027, A DUAL-FUEL UTILITY AND A LOCAL
472		-	GOVERNMENT SHALL JOINTLY SUBMIT FOR COMMISSION APPROVAL THE
473		-	NEIGHBORHOOD
474		-	-SCALE ALTERNATIVES PROJECTS INCLUDED ON THE LIST IN
475		-	THE FILING SUBMITTED PURSUANT TO SUBSECTION
476		-	(2)(a)(I) OF THIS SECTION
477		-	AND THAT WILL BE PURSUED IN A GAS PLANNING PILOT COMMUNITY
478		-	, WHICH
479		-	PROJECTS MAY LACK FULL CUSTOMER SUPPORT IF THE LOCAL GOVERNMENT
480		-	HAS DETERMINED THAT A REASONABLE MAJORITY OF CUSTOMERS SUPPORTS
481		-	THE PROJECT
482		-	. THE LOCAL GOVERNMENT SHALL DETERMINE WHAT
483		-	CONSTITUTES A REASONABLE MAJORITY
484		-	. THE DETERMINATION OF A
485		-	REASONABLE MAJORITY OF CUSTOMER SUPPORT AND EFFORTS TO OBTAIN
486		-	CUSTOMER CONSENT MUST BE SUPPORTED BY A SWORN AFFIDAVIT OR
487		-	TESTIMONY FROM AN OFFICIAL EMPLOYEE OF THE LOCAL GOVERNMENT AS
488		-	PART OF THE JOINT APPLICATION TO THE COMMISSION
489		-	. THE JOINT
490		-	APPLICATION MUST ALSO INCLUDE THE NET COSTS OF THE PROJECTS
491		-	,
492		-	INCLUDING ANY:
493		-	(A) S
494		-	TATE OR FEDERAL FUNDING OR TAX CREDITS ;
495		-	(B) G
496		-	AS PLANNING PILOT COMMUNITY INCENTIVES OR FUNDING ;
497		-	(C) E
498		-	XISTING DUAL-FUEL UTILITY PROGRAM FUNDING ;
499		-	(D) A
500		-	DDITIONAL DUAL-FUEL UTILITY INCENTIVES OR FUNDING;
501		-	(E) C
502		-	USTOMER CONTRIBUTIONS ; AND
503		-	(F) ANTICIPATED TOTAL CAPITAL EXPENDITURES BY THE DUAL -FUEL
504		-	UTILITY AND CUSTOMERS
505		-	, AVOIDED UTILITY CAPITAL EXPENDITURES , AND
506		-	FUTURE DISCOUNTED CUSTOMER UTILITY BILL SAVINGS OR EXPENSES
507		-	.
508		-	(III) I
509		-	F A DUAL-FUEL UTILITY WILL NOT PURSUE A
510		-	NEIGHBORHOOD
511		-	-SCALE ALTERNATIVES PROJECT IN ONE OR MORE GAS
512		-	PLANNING PILOT COMMUNITIES
513		-	, THE DUAL-FUEL UTILITY AND LOCAL
514		-	GOVERNMENT
515		-	, PRIOR TO JUNE 1, 2027, SHALL JOINTLY FILE A REPORT WITH
516		-	THE COMMISSION EXPLAINING WHY A NEIGHBORHOOD
517		-	-SCALE ALTERNATIVES
518		-	PROJECT WILL NOT BE PURSUED IN THAT COMMUNITY
519		-	.
520		-	(b) T
521		-	HE COMMISSION SHALL PROVIDE AN OPPORTUNITY FOR PUBLIC
522		-	COMMENT REGARDING THE DUAL
523		-	-FUEL UTILITY'S SUBMISSION PURSUANT TO
524		-	SUBSECTION
525		-	(2)(a)(III) OF THIS SECTION.
526		-	PAGE 10-HOUSE BILL 24-1370 (c) THE COMMISSION SHALL APPROVE A NEIGHBORHOOD -SCALE
527		-	ALTERNATIVES PROJECT APPLICATION SUBMITTED BY A DUAL
528		-	-FUEL UTILITY
529		-	IF
530		-	:
531		-	(I) T
532		-	HE PROJECT IS SUPPORTED BY A LOCAL GOVERNMENT
533		-	ORDINANCE
534		-	, PROCLAMATION, OR RESOLUTION;
535		-	(II) T
536		-	HE COMMISSION FINDS THAT THE PROJECT IS:
537		-	(A) C
538		-	ONSISTENT WITH THE STATE'S GREENHOUSE GAS REDUCTION
539		-	GOALS
540		-	; AND
541		-	(B) IN THE PUBLIC INTEREST, CONSIDERING COSTS AND BENEFITS TO
542		-	THE GAS PLANNING PILOT COMMUNITY
543		-	, PARTICIPATING CUSTOMERS, AND
544		-	RATEPAYERS WITHIN THE DUAL
545		-	-FUEL UTILITY'S GAS SERVICE TERRITORY AND
546		-	ANY COST SHIFT BETWEEN PARTICIPATING CUSTOMERS AND ALL RATEPAYERS
547		-	OF THE DUAL
548		-	-FUEL UTILITY, WITH PREFERENCE GIVEN TO PROJECTS THAT
549		-	RESULT IN NO COST SHIFT TO NONPARTICIPATING CUSTOMERS
550		-	;
551		-	(III) T
552		-	HE APPROVED PORTFOLIO OF NEIGHBORHOOD -SCALE
553		-	ALTERNATIVES PROJECTS PROVIDES AN APPROPRIATE MIX OF TECHNOLOGIES
554		-	,
555		-	CUSTOMER CLASSES, AND NEW CONSTRUCTION AND EXISTING BUILDINGS
556		-	AND INCLUDES THE USE OF THERMAL ENERGY NETWORKS OR GEOTHERMAL
557		-	ENERGY PROJECTS
558		-	; AND
559		-	(IV) THE COMMISSION FINDS THAT ALTERNATIVE ENERGY SERVICE
560		-	IS AVAILABLE TO ALL CUSTOMERS WITHIN THE PROJECT AREA AND CAN
561		-	REASONABLY BE IMPLEMENTED WITHIN THE PROJECT AREA
562		-	. IN MAKING THIS
563		-	FINDING
564		-	, THE COMMISSION SHALL CONSIDER:
565		-	(A) T
566		-	HE COST OF END USES POWERED BY DIFFERENT FUELS , IMPACTS
567		-	ON INCOME
568		-	-QUALIFIED UTILITY CUSTOMERS AND CUSTOMERS LIVING IN
569		-	DISPROPORTIONATELY IMPACTED COMMUNITIES
570		-	, AND THE STATE 'S
571		-	GREENHOUSE GAS EMISSION REDUCTION GOALS
572		-	;
573		-	(B) E
574		-	XISTING UTILITY OR OTHER INCENTIVES TO SUPPORT CUSTOMER
575		-	ADOPTION OF THE ALTERNATIVE ENERGY SERVICE
576		-	; AND
577		-	(C) THE DEGREE OF CUSTOMER SUPPORT FOR THE PROJECT ,
578		-	CONSIDERING THE INFORMATION PROVIDED PURSUANT TO SUBSECTION (1)(b)
579		-	PAGE 11-HOUSE BILL 24-1370 OF THIS SECTION, AND WITH PRIORITY GIVEN TO PROJECTS THAT HAVE THE
580		-	FULL SUPPORT OF POTENTIALLY AFFECTED CUSTOMERS
581		-	.
582		-	(3) (a) T
583		-	HE COMMISSION SHALL ALLOW A DUAL -FUEL UTILITY TO
584		-	CURRENTLY RECOVER THE COSTS INCURRED DURING THE DEVELOPMENT OF
585		-	A NEIGHBORHOOD
586		-	-SCALE ALTERNATIVES PROJECT , INCLUDING COSTS TO
587		-	TRANSITION THE DISTRIBUTION SYSTEM
588		-	, INVEST IN ELECTRIC
589		-	INFRASTRUCTURE
590		-	, AND PROVIDE CUSTOMER INCENTIVES . SUCH COSTS ARE
591		-	FULLY RECOVERABLE REGARDLESS OF THE PERFORMANCE OF THE
592		-	ALTERNATIVE ENERGY SERVICE
593		-	. THE COMMISSION SHALL ALSO PERMIT COST
594		-	RECOVERY FOR PERSONNEL TO WORK ON THE DEVELOPMENT
595		-	, IN WHOLE OR
596		-	IN PART
597		-	, OF NEIGHBORHOOD-SCALE ALTERNATIVES PROJECTS.
598		-	(b) T
599		-	HE DUAL-FUEL UTILITY SHALL PROPOSE TO THE COMMISSION
600		-	HOW COSTS WILL BE RECOVERED ACROSS THE DUAL
601		-	-FUEL UTILITY'S
602		-	ELECTRIC AND GAS BUSINESS
603		-	.
604		-	(c) F
605		-	OR GAS PLANNING PILOT COMMUNITIES THAT RECEIVE GAS
606		-	SERVICE FROM A DUAL
607		-	-FUEL UTILITY BUT ARE NOT SERVED BY THE ELECTRIC
608		-	UTILITY THAT IS PART OF THE DUAL
609		-	-FUEL UTILITY, THE COMMISSION SHALL
610		-	CONSIDER A COST
611		-	-SHARING AGREEMENT, AS NECESSARY TO IMPLEMENT A
612		-	NEIGHBORHOOD
613		-	-SCALE ALTERNATIVES PROJECT , WHICH AGREEMENT THE
614		-	DUAL
615		-	-FUEL UTILITY PROPOSES TO ENTER INTO WITH A LOCAL COOPERATIVE
616		-	ELECTRIC ASSOCIATION OR MUNICIPALLY OWNED ELECTRIC UTILITY TO MAKE
617		-	THE INCUMBENT GAS UTILITY THAT IS PART OF THE DUAL
618		-	-FUEL UTILITY AND
619		-	ITS CUSTOMERS WHOLE FOR ANY PROJECTS APPROVED BY THE COMMISSION
620		-	WHEN THERE IS A COST SHIFT
621		-	. THIS SUBSECTION (3)(c) SHALL NOT BE
622		-	CONSTRUED TO SUBJECT A LOCAL COOPERATIVE ELECTRIC ASSOCIATION OR
623		-	MUNICIPALLY OWNED ELECTRIC UTILITY ENTERING INTO SUCH AN
624		-	AGREEMENT WITH A DUAL
625		-	-FUEL UTILITY TO THE JURISDICTION OF THE
626		-	COMMISSION
627		-	. ANY FEDERAL, STATE, OR LOCAL FUNDING MADE AVAILABLE
628		-	FOR A PROJECT SHALL BE APPLIED PRIOR TO APPLICATION OF UTILITY
629		-	PROGRAMMATIC FUNDS
630		-	, SUCH AS DEMAND-SIDE MANAGEMENT, BENEFICIAL
631		-	ELECTRIFICATION
632		-	, OR OTHER EXISTING OR FUTURE CUSTOMER -SITED
633		-	PROGRAMS
634		-	, INCENTIVES, REBATES, AND FINANCING.
635		-	(4) I
636		-	N APPROVING A NEIGHBORHOOD -SCALE ALTERNATIVES PROJECT
637		-	IN A GAS PLANNING PILOT COMMUNITY
638		-	, THE COMMISSION MAY MODIFY THE
639		-	GAS UTILITY
640		-	'S SERVICE REQUIREMENT FOR SELECT PREMISES WITH AN
641		-	ALTERNATIVE ENERGY SERVICE REQUIREMENT
642		-	. NOTWITHSTANDING ANY
643		-	PAGE 12-HOUSE BILL 24-1370 PROVISION OF LAW TO THE CONTRARY , NOTHING IN THIS SECTION AFFECTS
644		-	OR ABRIDGES A DUAL
645		-	-FUEL UTILITY'S SERVICE REQUIREMENTS IN AREAS
646		-	OUTSIDE THE NEIGHBORHOOD
647		-	-SCALE ALTERNATIVES PROJECT AREA . THE
648		-	COMMISSION MAY IMPOSE AN ALTERNATIVE ENERGY SERVICE REQUIREMENT
649		-	FOR ANY CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY GRANTED
650		-	TO THE GAS UTILITY TO PROVIDE SERVICE TO THE TARGETED AREA THAT IS
651		-	THE SUBJECT OF THE NEIGHBORHOOD
652		-	-SCALE ALTERNATIVES PROJECT IF THE
653		-	COMMISSION FINDS THAT ALTERNATIVE ENERGY SERVICE IS AVAILABLE
654		-	.
655		-	(5) (a) A
656		-	S PART OF A NEIGHBORHOOD -SCALE ALTERNATIVES
657		-	PROJECT
658		-	, A DUAL-FUEL UTILITY MAY PROPOSE TO FUND CONVERSION OF
659		-	EXISTING GAS APPLIANCES OR EQUIPMENT TO NONEMITTING THERMAL
660		-	RESOURCES
661		-	, INCLUDING OFFERING INCREMENTAL INCENTIVES OR FINANCING
662		-	ABOVE THAT APPROVED FOR CLEAN HEAT PLANS
663		-	, AS DEFINED IN SECTION
664		-	40-3.2-108; BENEFICIAL ELECTRIFICATION PLANS, AS DEFINED IN SECTION
665		-	40-3.2-109; DEMAND-SIDE MANAGEMENT PROGRAMS , AS DEFINED IN
666		-	SECTION
667		-	40-1-102; OR OTHER RELATED FILINGS.
668		-	(b) A
669		-	DUAL-FUEL UTILITY MAY ALSO PROPOSE TO OFFER NEW RATE
670		-	STRUCTURES TO PAY FOR THERMAL ENERGY NETWORKS OR OTHER
671		-	NONEMITTING THERMAL RESOURCES AS AN ALTERNATIVE ENERGY SERVICE
672		-	,
673		-	UNDER WHICH RATE STRUCTURES CUSTOMERS PAY THE UTILITY FOR
674		-	THERMAL ENERGY NETWORK SERVICES TO OFFSET THE INITIAL COST OF NEW
675		-	APPLIANCES OR OTHER EQUIPMENT
676		-	. IF A DUAL-FUEL UTILITY PROPOSES TO
677		-	OFFER SUCH A RATE
678		-	, THE COMMISSION SHALL NOT GRANT THE DUAL -FUEL
679		-	UTILITY CURRENT COST RECOVERY PURSUANT TO SUBSECTION
680		-	(3)(a) OF THIS
681		-	SECTION
682		-	. A DUAL-FUEL UTILITY SHALL HAVE THE RIGHT OF FIRST REFUSAL
683		-	TO OFFER THERMAL ENERGY NETWORK SERVICE OR ALTERNATIVE ENERGY
684		-	SERVICE AS PART OF A NEIGHBORHOOD
685		-	-SCALE ALTERNATIVES PROJECT, IF
686		-	THE DUAL
687		-	-FUEL UTILITY SETS FORTH ITS INTENTION TO EXERCISE ITS RIGHT
688		-	OF FIRST REFUSAL AND DEFINES THE SCOPE OF SUCH EXERCISE IN THE
689		-	APPLICATION TO THE COMMISSION AND SUCH RIGHT OF FIRST REFUSAL
690		-	:
691		-	(I) I
692		-	S LIMITED TO NEIGHBORHOOD-SCALE ALTERNATIVES PROJECTS
693		-	IN GAS PLANNING PILOT COMMUNITIES
694		-	; AND
695		-	(II) IS EXERCISED WITHIN TWO YEARS AFTER APPROVAL BY THE
696		-	COMMISSION
697		-	.
698		-	(6) I
699		-	F A NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT QUALIFIES
700		-	PAGE 13-HOUSE BILL 24-1370 AS AN ENERGY SECTOR PUBLIC WORKS PROJECT , AS DEFINED IN SECTION
701		-	24-92-303, A DUAL-FUEL UTILITY SHALL COMPLY WITH ALL REQUIREMENTS
702		-	SET FORTH IN PART
703		-	3 OF ARTICLE 92 OF TITLE 24. THE DUAL-FUEL UTILITY
704		-	SHALL UTILIZE UTILITY EMPLOYEES OR CONTRACTORS THAT MEET THE
705		-	APPRENTICESHIP UTILIZATION REQUIREMENTS SET FORTH IN SECTION
706		-	24-92-115 TO SERVICE AND MAINTAIN ANY THERMAL ENERGY OR
707		-	GEOTHERMAL ENERGY PROJECTS OWNED BY THE DUAL
708		-	-FUEL UTILITY AND
709		-	APPROVED BY THE COMMISSION UNDER THIS SECTION
710		-	.
711		-	(7) B
712		-	Y JUNE 1 OF EACH YEAR FOLLOWING APPROVAL OF A
713		-	NEIGHBORHOOD
714		-	-SCALE ALTERNATIVES PROJECT , A DUAL-FUEL UTILITY
715		-	SHALL SUBMIT A REPORT TO THE COMMISSION ON THE IMPLEMENTATION OF
716		-	THE NEIGHBORHOOD
717		-	-SCALE ALTERNATIVES PROJECT . THE REPORT MUST
718		-	INCLUDE
719		-	, AT A MINIMUM:
720		-	(a) A
721		-	N UPDATE ON PROJECT IMPLEMENTATION , INCLUDING THE
722		-	DEGREE OF CUSTOMER SUPPORT FOR THE PROJECT
723		-	;
724		-	(b) A
725		-	N EXPLANATION OF CUSTOMER SATISFACTION WITH
726		-	ALTERNATIVE ENERGY SERVICE
727		-	;
728		-	(c) A
729		-	CTUAL NET PROJECT COSTS INCURRED , INCLUDING ANY:
730		-	(I) S
731		-	TATE OR FEDERAL FUNDING OR TAX CREDITS ;
732		-	(II) G
733		-	AS PLANNING PILOT COMMUNITY INCENTIVES OR FUNDING ;
734		-	(III) E
735		-	XISTING DUAL-FUEL UTILITY PROGRAM FUNDING ;
736		-	(IV) A
737		-	DDITIONAL DUAL-FUEL UTILITY INCENTIVES OR FUNDING;
738		-	(V) C
739		-	USTOMER CONTRIBUTIONS ;
740		-	(VI) A
741		-	NTICIPATED TOTAL CAPITAL EXPENDITURES BY THE
742		-	DUAL
743		-	-FUEL UTILITY AND CUSTOMERS , AVOIDED UTILITY CAPITAL
744		-	EXPENDITURES
745		-	, AND FUTURE DISCOUNTED CUSTOMER UTILITY BILL SAVINGS
746		-	OR EXPENSES
747		-	; AND
748		-	(VII) ESTIMATED OVERALL PROJECT COSTS IF NO INCENTIVES OR TAX
749		-	CREDITS HAD BEEN AVAILABLE FOR THE PROJECT
750		-	;
751		-	PAGE 14-HOUSE BILL 24-1370 (d) THE IMPACT ON TOTAL ENERGY BILL AND ENERGY RELIABILITY
752		-	FOR CUSTOMERS RECEIVING ALTERNATIVE ENERGY SERVICE
753		-	;
754		-	(e) A
755		-	NY ENCOUNTERED BARRIERS TO PROJECT IMPLEMENTATION ,
756		-	INCLUDING TECHNOLOGICAL OR WORKFORCE BARRIERS , AND THE LESSONS
757		-	LEARNED IN OVERCOMING THOSE BARRIERS
758		-	;
759		-	(f) T
760		-	HE IMPACT ON INCOME-QUALIFIED UTILITY CUSTOMERS AND
761		-	CUSTOMERS LIVING IN DISPROPORTIONATELY IMPACTED COMMUNITIES
762		-	; AND
763		-	(g) ANY OTHER INFORMATION REQUIRED BY THE COMMISSION .
764		-	(8) B
765		-	Y JULY 1, 2028, OR ANOTHER TIME DETERMINED BY THE
766		-	COMMISSION
767		-	, THE COMMISSION SHALL HIRE A THIRD-PARTY CONSULTANT TO
768		-	CONDUCT AN ANALYSIS OF ALL APPROVED AND PROPOSED
769		-	NEIGHBORHOOD
770		-	-SCALE ALTERNATIVES PROJECTS AND PRESENT THE
771		-	FINDINGS OF THE ANALYSIS TO THE COMMISSION AND THE GENERAL
772		-	ASSEMBLY
773		-	. THE ANALYSIS MUST INCLUDE:
774		-	(a) F
775		-	OR EACH PROJECT, THE INFORMATION SET FORTH IN SUBSECTION
776		-	(7) OF THIS SECTION;
777		-	(b) A
778		-	COMPARATIVE ANALYSIS OF NET COSTS INCURRED BY ALL
779		-	PARTIES IN A NEIGHBORHOOD
780		-	-SCALE ALTERNATIVES PROJECT , COMPARED
781		-	WITH THE COST OF THE GAS INFRASTRUCTURE PROJECT THAT WAS AVOIDED
782		-	,
783		-	INCLUDING ANY:
784		-	(I) S
785		-	TATE OR FEDERAL FUNDING OR TAX CREDITS ;
786		-	(II) G
787		-	AS PLANNING PILOT COMMUNITY INCENTIVES OR FUNDING ;
788		-	(III) E
789		-	XISTING DUAL-FUEL UTILITY PROGRAM FUNDING ;
790		-	(IV) A
791		-	DDITIONAL DUAL-FUEL UTILITY INCENTIVES OR FUNDING;
792		-	(V) C
793		-	USTOMER CONTRIBUTIONS ;
794		-	(VI) A
795		-	NTICIPATED TOTAL CAPITAL EXPENDITURES BY THE
796		-	DUAL
797		-	-FUEL UTILITY AND CUSTOMERS , AVOIDED UTILITY CAPITAL
798		-	EXPENDITURES
799		-	, AND FUTURE DISCOUNTED CUSTOMER UTILITY BILL SAVINGS
800		-	PAGE 15-HOUSE BILL 24-1370 OR EXPENSES; AND
801		-	(VII) ESTIMATED OVERALL PROJECT COSTS IF NO INCENTIVES OR TAX
802		-	CREDITS HAD BEEN AVAILABLE FOR THE PROJECT
803		-	;
804		-	(c) T
805		-	HE ABILITY OF EACH PROJECT TO DEFER OR AVOID GAS
806		-	INFRASTRUCTURE INVESTMENTS
807		-	;
808		-	(d) T
809		-	HE CUSTOMER ECONOMICS OF NONEMITTING THERMAL
810		-	RESOURCES COMPARED WITH GAS ALTERNATIVES
811		-	;
812		-	(e) A
813		-	N ANALYSIS OF ANY SUPPLY CHAIN CHALLENGES ;
814		-	(f) T
815		-	HE OVERALL LESSONS LEARNED FROM THE PROJECTS ;
816		-	(g) T
817		-	HE PERSPECTIVES OF THE GAS PLANNING PILOT COMMUNITIES
818		-	REGARDING THE COLLABORATIVE PROCESS WITH A DUAL
819		-	-FUEL UTILITY AND
820		-	ANY LESSONS LEARNED FOR IMPROVING THE PROCESS
821		-	;
822		-	(h) T
823		-	HE NET IMPACTS TO THE UTILITY WORKFORCE ; AND
824		-	(i) ANY OTHER INFORMATION REQUIRED BY THE COMMISSION .
825		-	SECTION 2. Appropriation. (1) For the 2024-25 state fiscal year,
826		-	$43,650 is appropriated to the office of the governor for use by the
827		-	Colorado energy office. This appropriation is from the general fund, and is
828		-	based on an assumption that the office will require an additional 0.4 FTE.
829		-	To implement this act, the office may use this appropriation for program
830		-	administration.
831		-	(2) For the 2024-25 state fiscal year, $29,678 is appropriated to the
832		-	department of regulatory agencies for use by the public utilities
833		-	commission. This appropriation is from the public utilities commission
834		-	fixed utility fund created in section 40-2-114 (1)(b)(II), C.R.S. To
835		-	implement this act, the commission may use this appropriation as follows:
836		-	(a) $22,752 for personal services, which amount is based on an
837		-	assumption that the commission will require an additional 0.2 FTE; and
838		-	(b) $6,926 for operating expenses.
839		-	PAGE 16-HOUSE BILL 24-1370 SECTION 3. Act subject to petition - effective date. This act
840		-	takes effect at 12:01 a.m. on the day following the expiration of the
841		-	ninety-day period after final adjournment of the general assembly; except
842		-	that, if a referendum petition is filed pursuant to section 1 (3) of article V
843		-	of the state constitution against this act or an item, section, or part of this act
844		-	within such period, then the act, item, section, or part will not take effect
845		-	unless approved by the people at the general election to be held in
846		-	November 2024 and, in such case, will take effect on the date of the official
847		-	declaration of the vote thereon by the governor.
848		-	____________________________ ____________________________
849		-	Julie McCluskie Steve Fenberg
850		-	SPEAKER OF THE HOUSE PRESIDENT OF
851		-	OF REPRESENTATIVES THE SENATE
852		-	____________________________ ____________________________
853		-	Robin Jones Cindi L. Markwell
854		-	CHIEF CLERK OF THE HOUSE SECRETARY OF
855		-	OF REPRESENTATIVES THE SENATE
856		-	APPROVED________________________________________
857		-	(Date and Time)
858		-	_________________________________________
859		-	Jared S. Polis
860		-	GOVERNOR OF THE STATE OF COLORADO
861		-	PAGE 17-HOUSE BILL 24-1370
	14	+	ONCERNING MEASURES TO REDUCE THE COST OF USE OF NATURAL101
	15	+	GAS
	16	+	INFRASTRUCTURE, AND, IN CONNECTION THEREWITH,102
	17	+	MAKING AN APPROPRIATION .103
	18	+	Bill Summary
	19	+	(Note: This summary applies to this bill as introduced and does
	20	+	not reflect any amendments that may be subsequently adopted. If this bill
	21	+	passes third reading in the house of introduction, a bill summary that
	22	+	applies to the reengrossed version of this bill will be available at
	23	+	http://leg.colorado.gov
	24	+	.)
	25	+	The bill requires the Colorado energy office to issue a request for
	26	+	information by December 1, 2024, to solicit interest from local
	27	+	governments that are served by a dual-fuel utility (utility) in becoming a
	28	+	gas planning priority community (community). A gas planning priority
	29	+	community is defined in the bill as a local government in which
	30	+	SENATE
	31	+	3rd Reading Unamended
	32	+	May 4, 2024
	33	+	SENATE
	34	+	2nd Reading Unamended
	35	+	May 3, 2024
	36	+	HOUSE
	37	+	3rd Reading Unamended
	38	+	April 25, 2024
	39	+	HOUSE
	40	+	Amended 2nd Reading
	41	+	April 24, 2024
	42	+	HOUSE SPONSORSHIP
	43	+	Kipp and Willford, Boesenecker, Brown, Epps, Garcia, Herod, Jodeh, Joseph, Lindsay,
	44	+	Mabrey, Marvin, Ortiz, Parenti, Ricks, Rutinel, Sirota, Story, Valdez, Vigil, Woodrow
	45	+	SENATE SPONSORSHIP
	46	+	Winter F., Buckner, Cutter, Hansen, Jaquez Lewis, Michaelson Jenet, Priola
	47	+	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
	48	+	Capital letters or bold & italic numbers indicate new material to be added to existing law.
	49	+	Dashes through the words or numbers indicate deletions from existing law. constituents have gas service provided by a dual-fuel utility that formally
	50	+	indicates an interest in working with the utility to mutually explore
	51	+	opportunities for neighborhood-scale alternatives projects. A
	52	+	neighborhood-scale alternatives project geographically targets
	53	+	decommissioning of a portion of the gas distribution system or avoids
	54	+	expanding the gas distribution system in order to serve new construction
	55	+	projects and provides substitute energy service to buildings within the
	56	+	project area that is cost-effective and reduces future greenhouse gas
	57	+	emissions required to serve buildings.
	58	+	By April 30, 2025, the Colorado energy office and the utility must
	59	+	jointly file with the public utilities commission (commission) the results
	60	+	of the request for information, identifying any proposed communities.
	61	+	The Colorado energy office and the utility must also file a draft
	62	+	agreement between the utility and a proposed community to identify and
	63	+	pursue a neighborhood-scale alternatives project. The commission must
	64	+	approve or modify the list of proposed communities by June 30, 2025.
	65	+	By October 1, 2025, a utility and each approved community must
	66	+	enter into an agreement, and the utility must submit to the commission a
	67	+	list of the communities with which the utility has entered into an
	68	+	agreement. For each approved community, the utility is required to
	69	+	disclose certain information to the Colorado energy office, the
	70	+	commission, and the community, including a map with information
	71	+	regarding the utility's gas distribution and electric systems and operations
	72	+	within the community.
	73	+	The bill requires the utility to work with an approved community
	74	+	to rank neighborhood-scale alternatives projects and, before June 1, 2026,
	75	+	to submit at least one neighborhood-scale alternatives project in each
	76	+	community to the commission for approval or an explanation of why no
	77	+	neighborhood-scale alternatives project will be pursued in a community.
	78	+	By June 1 of each year following approval of a neighborhood-scale
	79	+	alternatives project, a utility is required to submit a report to the
	80	+	commission on the implementation of any approved neighborhood-scale
	81	+	alternatives projects. The commission must allow the utility to recover
	82	+	costs incurred from the implementation of a neighborhood-scale
	83	+	alternatives project.
	84	+	Be it enacted by the General Assembly of the State of Colorado:1
	85	+	SECTION 1. In Colorado Revised Statutes, add article 3.3 to title2
	86	+	40 as follows:3
	87	+	ARTICLE 3.34
	88	+	Gas Infrastructure Planning5
	89	+	1370-2- 40-3.3-101. Definitions. AS USED IN THIS ARTICLE 3.3, UNLESS1
	90	+	THE CONTEXT OTHERWISE REQUIRES :2
	91	+	(1) "ALTERNATIVE ENERGY SERVICE" MEANS A LOW- OR3
	92	+	ZERO-CARBON RESIDENTIAL, COMMERCIAL, OR INDUSTRIAL ENERGY4
	93	+	SERVICE THAT IS ABLE TO MEET A CUSTOMER'S END USE NEED AND DOES5
	94	+	NOT COMBUST METHANE-, PROPANE-, OR PETROLEUM-DERIVED GAS ON6
	95	+	SITE IN DOING SO.7
	96	+	(2) "COLORADO ENERGY OFFICE" MEANS THE COLORADO ENERGY8
	97	+	OFFICE CREATED IN SECTION 24-38.5-101.9
	98	+	(3) "DISTRIBUTION SYSTEM" HAS THE MEANING SET FORTH IN10
	99	+	SECTION 40-2-115 (2)(b) AND INCLUDES THE PIPING AND ASSOCIATED11
	100	+	FACILITIES USED TO DELIVER GEOLOGICAL GAS OR RECOVERED METHANE.12
	101	+	(4) "DUAL-FUEL UTILITY" MEANS AN INVESTOR-OWNED UTILITY IN13
	102	+	WHICH ONE COMPANY OR A SUBSIDIARY OF THE SAME COMPANY OPERATES14
	103	+	BOTH AN ELECTRIC AND A GAS UTILITY THAT HAVE SERVICE TERRITORIES15
	104	+	IN THE STATE WHERE GREATER THAN FIFTY PERCENT OF ALL CUSTOMERS16
	105	+	IN THOSE TERRITORIES RECEIVE BOTH GAS AND ELECTRIC SERVICE FROM17
	106	+	A UTILITY OPERATED BY THAT COMPANY OR A SUBSIDIARY OF THE SAME18
	107	+	COMPANY.19
	108	+	(5) "GAS" MEANS NATURAL OR GEOLOGICAL GAS , RECOVERED20
	109	+	METHANE, OR ANY MIXTURE OF NATURAL OR GEOLOGICAL GAS OR21
	110	+	RECOVERED METHANE THAT IS TRANSPORTED BY A COMMON CARRIER OR22
	111	+	DEDICATED PIPELINE, INCLUDING FLAMMABLE GAS; MANUFACTURED GAS;23
	112	+	PETROLEUM OR OTHER HYDROCARBON GASES, SUCH AS PROPANE; OR ANY24
	113	+	MIXTURE OF FOSSIL GASES THAT IS INJECTED INTO A PIPELINE AND25
	114	+	TRANSMITTED, DISTRIBUTED, OR FURNISHED BY A UTILITY.26
	115	+	(6) "GAS INFRASTRUCTURE PLAN" MEANS A REQUIREMENT FOR GAS27
	116	+	1370
	117	+	-3- UTILITIES ESTABLISHED BY THE COMMISSION THAT IS DESIGNED TO1
	118	+	ESTABLISH A PROCESS TO DETERMINE THE NEED FOR , AND POTENTIAL2
	119	+	ALTERNATIVES TO, CAPITAL INVESTMENT, CONSISTENT WITH THE3
	120	+	OBJECTIVES OF MAINTAINING JUST AND REASONABLE RATES ; ENSURING4
	121	+	SYSTEM SAFETY, RELIABILITY, AND RESILIENCY; AND PROTECTING5
	122	+	INCOME-QUALIFIED UTILITY CUSTOMERS AND DISPROPORTIONATELY6
	123	+	IMPACTED COMMUNITIES.7
	124	+	(7) "GAS PLANNING PILOT COMMUNITY" MEANS A LOCAL8
	125	+	GOVERNMENT IN WHICH CONSTITUENTS HAVE GAS SERVICE PROVIDED BY9
	126	+	A DUAL-FUEL UTILITY AND AN ACTIVE FRANCHISE AGREEMENT WITH THE10
	127	+	DUAL-FUEL UTILITY, WHICH LOCAL GOVERNMENT FORMALLY INDICATES11
	128	+	AN INTEREST IN WORKING WITH THE DUAL-FUEL UTILITY TO MUTUALLY12
	129	+	EXPLORE OPPORTUNITIES FOR NEIGHBORHOOD-SCALE ALTERNATIVES13
	130	+	PROJECTS, INCLUDING THROUGH THE EXCHANGE OF UTILITY GAS14
	131	+	INFRASTRUCTURE DATA AND COMMUNITY DEVELOPMENT PLANS .15
	132	+	(8) "GREENHOUSE GAS REDUCTION GOALS" MEANS THE STATE'S16
	133	+	GREENHOUSE GAS REDUCTION GOALS DESCRIBED IN SECTION 25-7-10217
	134	+	(2)(g).18
	135	+	(9) "INCOME-QUALIFIED UTILITY CUSTOMER" HAS THE MEANING19
	136	+	SET FORTH IN SECTION 40-3-106 (1)(d)(II).20
	137	+	(10) "LOCAL GOVERNMENT" MEANS A HOME RULE OR STATUTORY21
	138	+	COUNTY, CITY, OR CITY AND COUNTY.22
	139	+	(11) "NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT" MEANS A23
	140	+	PROJECT IN A GAS PLANNING PILOT COMMUNITY :24
	141	+	(a) WHERE A DUAL-FUEL UTILITY:25
	142	+	(I) PROVIDES BOTH GAS AND ELECTRIC SERVICE ;26
	143	+	(II) PROVIDES GAS SERVICE AND A MUNICIPALLY OWNED UTILITY27
	144	+	1370
	145	+	-4- OPERATED BY THE GAS PLANNING PILOT COMMUNITY PROVIDES ELECTRIC1
	146	+	SERVICE; OR2
	147	+	(III) PROVIDES GAS SERVICE AND A COOPERATIVE ELECTRIC3
	148	+	ASSOCIATION THAT SERVES A GAS PLANNING PILOT COMMUNITY HAS4
	149	+	VOLUNTARILY PARTNERED WITH THE DUAL -FUEL UTILITY; AND5
	150	+	(b) THAT GEOGRAPHICALLY TARGETS DECOMMISSIONING A6
	151	+	PORTION OF THE GAS DISTRIBUTION SYSTEM OR AVOIDS EXPANDING THE7
	152	+	GAS DISTRIBUTION SYSTEM IN ORDER TO SERVE NEW CONSTRUCTION8
	153	+	PROJECTS AND PROVIDES ALTERNATIVE ENERGY SERVICE TO BUILDINGS9
	154	+	WITHIN THE PROJECT AREA THAT REDUCES FUTURE GREENHOUSE GAS10
	155	+	EMISSIONS REQUIRED TO SERVE BUILDINGS .11
	156	+	(12) "NONEMITTING THERMAL RESOURCE" MEANS EFFICIENT12
	157	+	THERMAL ENERGY FOR HEATING, COOLING, OR HOT WATER, WHICH13
	158	+	ENERGY DOES NOT REQUIRE COMBUSTION OF GAS , SUCH AS AN AIR-SOURCE14
	159	+	HEAT PUMP, AS DEFINED IN SECTION 39-22-554 (2)(a); A GROUND-SOURCE15
	160	+	HEAT PUMP, AS DEFINED IN SECTION 39-22-554 (2)(g); A HEAT PUMP16
	161	+	WATER HEATER; A THERMAL ENERGY SYSTEM; OR A THERMAL ENERGY17
	162	+	NETWORK.18
	163	+	(13) "PIPELINE SEGMENT" MEANS A DISCRETE PORTION OF THE19
	164	+	DISTRIBUTION SYSTEM AND ALL ANCILLARY STRUCTURES, VALVES, AND20
	165	+	OTHER SYSTEMS NEEDED TO DISTRIBUTE GAS. A PIPELINE SEGMENT MUST21
	166	+	BE THE SMALLEST INCREMENTAL UNIT POSSIBLE, AS DEFINED BY PIPELINE22
	167	+	MATERIALS, GEOGRAPHICAL FEATURES, AND THE DESIGN OF THE23
	168	+	DISTRIBUTION SYSTEM.24
	169	+	(14) "THERMAL ENERGY NETWORK" HAS THE MEANING SET FORTH25
	170	+	IN SECTION 40-3.2-108 (2)(s).26
	171	+	(15) "THERMAL ENERGY SYSTEM" HAS THE MEANING SET FORTH27
	172	+	1370
	173	+	-5- IN SECTION 40-3.2-108 (2)(t).1
	174	+	40-3.3-102. Request for information - gas planning pilot2
	175	+	community - disclosures - repeal. (1) (a) BY DECEMBER 1, 2024, THE3
	176	+	COLORADO ENERGY OFFICE SHALL ISSUE A REQUEST FOR INFORMATION TO4
	177	+	IDENTIFY LOCAL GOVERNMENTS WHOSE RESIDENTS ARE SERVED BY A5
	178	+	DUAL-FUEL UTILITY THAT ARE INTERESTED IN BECOMING A GAS PLANNING6
	179	+	PILOT COMMUNITY.7
	180	+	(b) THE COLORADO ENERGY OFFICE SHALL INCLUDE IN THE8
	181	+	REQUEST FOR INFORMATION THE MINIMUM CRITERIA THAT A LOCAL9
	182	+	GOVERNMENT MUST MEET IN ORDER TO BECOME A GAS PLANNING PILOT10
	183	+	COMMUNITY, INCLUDING:11
	184	+	(I) A DEMONSTRATION THAT DESIGNATION AS A GAS PLANNING12
	185	+	PILOT COMMUNITY WOULD ALIGN WITH THE LOCAL GOVERNMENT'S13
	186	+	CLIMATE AND ENERGY AFFORDABILITY GOALS ;14
	187	+	(II) A WILLINGNESS TO PROMOTE NEIGHBORHOOD -SCALE15
	188	+	ALTERNATIVES PROJECTS AND TO SUPPORT, ENGAGE, AND EDUCATE16
	189	+	RESIDENTS WITHIN A COMMUNITY FOR WHICH A NEIGHBORHOOD -SCALE17
	190	+	ALTERNATIVES PROJECT IS PROPOSED PRIOR TO APPROVAL BY THE18
	191	+	COMMISSION; AND19
	192	+	(III) A COMMITMENT OF INTERNAL OR EXTERNAL STAFF20
	193	+	RESOURCES TO IDENTIFY AND IMPLEMENT NEIGHBORHOOD -SCALE21
	194	+	ALTERNATIVES PROJECTS.22
	195	+	(c) AT LEAST THIRTY DAYS PRIOR TO ISSUING THE REQUEST FOR23
	196	+	INFORMATION, THE COLORADO ENERGY OFFICE SHALL PUBLISH A DRAFT24
	197	+	OF THE REQUEST FOR INFORMATION ON ITS WEBSITE AND PROVIDE AN25
	198	+	OPPORTUNITY FOR THE PUBLIC TO SUBMIT WRITTEN COMMENTS .26
	199	+	(2) (a) BY APRIL 30, 2025, THE COLORADO ENERGY OFFICE AND A27
	200	+	1370
	201	+	-6- DUAL-FUEL UTILITY SHALL JOINTLY FILE WITH THE COMMISSION THE1
	202	+	RESULTS OF THE REQUEST FOR INFORMATION REQUIRED BY SUBSECTION2
	203	+	(1)(a) OF THIS SECTION, IDENTIFYING UP TO FIVE PROPOSED GAS PLANNING3
	204	+	PILOT COMMUNITIES. IN IDENTIFYING PROPOSED GAS PLANNING PILOT4
	205	+	COMMUNITIES, THE COLORADO ENERGY OFFICE AND A DUAL-FUEL UTILITY5
	206	+	SHALL PRIORITIZE LOCAL GOVERNMENTS THAT ARE INTERESTED IN6
	207	+	PURSUING THERMAL ENERGY NETWORK OR GEOTHERMAL ENERGY7
	208	+	PROJECTS AS PART OF THE PROPOSED GAS PLANNING PILOT COMMUNITY'S8
	209	+	EVALUATION OF ANY POTENTIAL NEIGHBORHOOD-SCALE ALTERNATIVES9
	210	+	PROJECT PURSUANT TO SECTION 40-3.3-103. THE COLORADO ENERGY10
	211	+	OFFICE AND THE DUAL-FUEL UTILITY SHALL ALSO JOINTLY FILE A DRAFT11
	212	+	AGREEMENT BETWEEN THE DUAL -FUEL UTILITY AND ANY PROPOSED GAS12
	213	+	PLANNING PILOT COMMUNITY , WHICH DRAFT AGREEMENT MUST :13
	214	+	(I) IDENTIFY THE ROLES AND RESPONSIBILITIES OF THE DUAL-FUEL14
	215	+	UTILITY AND THE PROPOSED GAS PLANNING PILOT COMMUNITY IN15
	216	+	IDENTIFYING NEIGHBORHOOD -SCALE ALTERNATIVES PROJECTS;16
	217	+	(II) IDENTIFY TIME FRAMES FOR EACH PARTY TO FURNISH DATA OR17
	218	+	RESPOND TO REQUESTS FOR DATA FROM THE OTHER PARTY ;18
	219	+	(III) INCLUDE ANY NECESSARY WAIVERS OF COMMISSION RULES TO19
	220	+	FACILITATE DATA TRANSFER BETWEEN THE PARTIES ;20
	221	+	(IV) INCLUDE A PROCESS TO ADDRESS CONFLICTS BETWEEN THE21
	222	+	TWO PARTIES; AND22
	223	+	(V) INDICATE WHETHER THE PROPOSED GAS PLANNING PILOT23
	224	+	COMMUNITY HAS DEMONSTRATED AN INTEREST IN PURSUING THERMAL24
	225	+	ENERGY NETWORK OR GEOTHERMAL ENERGY PROJECTS .25
	226	+	(b) THE COMMISSION SHALL PROVIDE AN OPPORTUNITY FOR THE26
	227	+	PUBLIC TO SUBMIT WRITTEN COMMENTS ON THE FILING .27
	228	+	1370
	229	+	-7- (c) BY JUNE 30, 2025, THE COMMISSION SHALL APPROVE OR1
	230	+	MODIFY THE LIST OF PROPOSED GAS PLANNING PILOT COMMUNITIES;2
	231	+	EXCEPT THAT THE COMMISSION SHALL NOT INCREASE THE NUMBER OF3
	232	+	PROPOSED GAS PLANNING PILOT COMMUNITIES BEYOND FIVE .4
	233	+	(3) BY OCTOBER 1, 2025, A DUAL-FUEL UTILITY SHALL ENTER INTO5
	234	+	AN AGREEMENT WITH EACH LOCAL GOVERNMENT THAT HAS BEEN6
	235	+	APPROVED AS A GAS PLANNING PILOT COMMUNITY AND SHALL SUBMIT TO7
	236	+	THE COMMISSION A LIST OF THE GAS PLANNING PILOT COMMUNITIES WITH8
	237	+	WHICH THE DUAL-FUEL UTILITY HAS ESTABLISHED AN AGREEMENT . THE9
	238	+	DUAL-FUEL UTILITY AND LOCAL GOVERNMENT MAY AGREE TO EXTEND10
	239	+	THIS DEADLINE.11
	240	+	(4) SUBSECTIONS (1) TO (3) OF THIS SECTION ARE REPEALED,12
	241	+	EFFECTIVE JUNE 1, 2028.13
	242	+	(5) (a) UNLESS OTHERWISE DIRECTED BY THE COMMISSION OR14
	243	+	REQUESTED BY THE GAS PLANNING PILOT COMMUNITY, A DUAL-FUEL15
	244	+	UTILITY SHALL PROVIDE EACH GAS PLANNING PILOT COMMUNITY, THE16
	245	+	COMMISSION, AND THE COLORADO ENERGY OFFICE WITH DATA AND17
	246	+	INFORMATION TO INFORM THE EVALUATION OF POTENTIAL18
	247	+	NEIGHBORHOOD-SCALE ALTERNATIVES PROJECTS THAT INCLUDES :19
	248	+	(I) THE LOCATION OF ANY PLANNED GAS INFRASTRUCTURE20
	249	+	PROJECTS IN THE GAS PLANNING PILOT COMMUNITY WITHIN THE SIX-YEAR21
	250	+	GAS PROJECT PLANNING FORECAST IN THE DUAL -FUEL UTILITY'S MOST22
	251	+	RECENTLY APPROVED GAS INFRASTRUCTURE PLAN OR IDENTIFIED BY THE23
	252	+	DUAL-FUEL UTILITY FOR INCLUSION IN A FUTURE GAS INFRASTRUCTURE24
	253	+	PLAN TO THE EXTENT AVAILABLE; AND25
	254	+	(II) THE FOLLOWING INFORMATION REGARDING THE PLANNED GAS26
	255	+	INFRASTRUCTURE PROJECTS DESCRIBED IN SUBSECTION (5)(a)(I) OF THIS27
	256	+	1370
	257	+	-8- SECTION:1
	258	+	(A) THE PROJECT NAME;2
	259	+	(B) THE PROJECT CATEGORY, CONSISTENT WITH THE PLANNED3
	260	+	PROJECTS CATEGORIES DESCRIBED IN APPLICABLE COMMISSION RULES ;4
	261	+	(C) A DESCRIPTION OF THE GENERAL SCOPE OF WORK AND AN5
	262	+	EXPLANATION OF THE NEED FOR THE PROJECT, INCLUDING ANY6
	263	+	APPLICABLE CODE REQUIREMENTS OF THE UNITED STATES DEPARTMENT7
	264	+	OF TRANSPORTATION'S PIPELINE AND HAZARDOUS MATERIALS SAFETY8
	265	+	ADMINISTRATION;9
	266	+	(D) THE PROJECTED LIFE OF THE PROJECT;10
	267	+	(E) AN INDICATION OF WHETHER THE PROJECT IS PRESENTED AS A11
	268	+	GAS INFRASTRUCTURE PLAN ACTION PERIOD PROJECT OR A GAS12
	269	+	INFRASTRUCTURE PLAN INFORMATIONAL PERIOD PROJECT PURSUANT TO13
	270	+	APPLICABLE COMMISSION RULES ;14
	271	+	(F) THE ANTICIPATED: CONSTRUCTION START DATE FOR THE15
	272	+	PROJECT; CONSTRUCTION PERIOD FOR THE PROJECT, INCLUDING AN16
	273	+	INDICATION OF ANY CONSTRUCTION PHASES; AND IN-SERVICE DATE FOR17
	274	+	THE PROJECT;18
	275	+	(G) THE COST-ESTIMATE CLASSIFICATION FOR THE PROJECT, USING19
	276	+	THE DUAL-FUEL UTILITY'S OR AN INDUSTRY-ACCEPTED COST-ESTIMATE20
	277	+	CLASSIFICATION INDEX ; SUPPORT FOR THE COST -ESTIMATE21
	278	+	CLASSIFICATION; AND THE TOTAL COST ESTIMATE FOR THE PROJECT ;22
	279	+	(H) THE TECHNICAL DETAILS OF THE PROJECT, SUCH AS THE23
	280	+	PHYSICAL EQUIPMENT CHARACTERISTICS OF THE PROPOSED FACILITIES ,24
	281	+	PIPELINE LENGTH, PIPELINE DIAMETER, PROJECT MATERIALS, AND25
	282	+	MAXIMUM ALLOWABLE OPERATING PRESSURE ;26
	283	+	(I) THE PROJECT LOCATION AND AN ILLUSTRATIVE MAP OF THE GAS27
	284	+	1370
	285	+	-9- DISTRIBUTION SYSTEM FACILITIES , SUBJECT TO NECESSARY1
	286	+	CONFIDENTIALITY PROVISIONS, INCLUDING: THE PRESSURE DISTRICT OR2
	287	+	GEOGRAPHIC AREA THAT REQUIRES THE PROPOSED FACILITIES, THE3
	288	+	EXISTING AND PROPOSED REGULATOR STATIONS AND EXISTING AND4
	289	+	PROPOSED DISTRIBUTION PIPING AND HIGHER CAPACITY PIPELINES SERVED5
	290	+	BY OR REPRESENTING THE PROPOSED FACILITIES, THE LOCATIONS OF ANY6
	291	+	NEARBY DISPROPORTIONATELY IMPACTED COMMUNITIES , AND ANY OTHER7
	292	+	INFORMATION NECESSARY TO ALLOW THE LOCAL GOVERNMENT TO MAKE8
	293	+	A THOROUGH EVALUATION OF THE PROJECT ;9
	294	+	(J) TO THE EXTENT PRACTICABLE, THE NUMBER OF CUSTOMERS,10
	295	+	ANNUAL SALES , AND DESIGN PEAK DEM AND REQUIREMENTS ,11
	296	+	DISAGGREGATED BY CUSTOMER CLASS , POTENTIALLY DIRECTLY IMPACTED12
	297	+	OR SERVED BY THE PROJECT;13
	298	+	(K) ANY PERMITS REQUIRED FOR WORK ON THE PROJECT TO BEGIN;14
	299	+	AND15
	300	+	(L) ANY ENVIRONMENTAL REQUIREMENTS ASSOCIATED WITH16
	301	+	COMPLETION OF THE PROJECT.17
	302	+	(b) A DUAL-FUEL UTILITY SHALL PROVIDE GAS PLANNING PILOT18
	303	+	COMMUNITY STAFF AND CONSULTANTS, WHO HAVE SIGNED APPROPRIATE19
	304	+	NONDISCLOSURE AGREEMENTS, WITH ALL REQUESTED GAS AND ELECTRIC20
	305	+	CUSTOMER USAGE AND DESIGN PEAK DEMAND DATA , TO THE EXTENT21
	306	+	AVAILABLE AND DISAGGREGATED TO THE INDIVIDUAL CUSTOMER, FOR ALL22
	307	+	PLANNED GAS INFRASTRUCTURE PROJECTS LOCATED IN A GAS PLANNING23
	308	+	PILOT COMMUNITY WITHIN THE SIX-YEAR GAS PROJECT PLANNING24
	309	+	FORECAST IN THE DUAL-FUEL UTILITY'S MOST RECENTLY APPROVED GAS25
	310	+	INFRASTRUCTURE PLAN OR IDENTIFIED BY THE DUAL-FUEL UTILITY FOR26
	311	+	INCLUSION IN A FUTURE GAS INFRASTRUCTURE PLAN. THE DUAL-FUEL27
	312	+	1370
	313	+	-10- UTILITY SHALL PROVIDE SUCH INFORMATION WITHIN THE RELEVANT TIME1
	314	+	FRAME ESTABLISHED PURSUANT TO SUBSECTION (2)(a)(II) OF THIS2
	315	+	SECTION.3
	316	+	(c) THE INFORMATION DESCRIBED IN SUBSECTIONS (5)(a) AND4
	317	+	(5)(b) OF THIS SECTION IS EXEMPT FROM THE "COLORADO OPEN RECORDS5
	318	+	ACT", PART 2 OF ARTICLE 72 OF TITLE 24.6
	319	+	40-3.3-103. Neighborhood-scale alternatives projects - cost7
	320	+	recovery - reporting requirement. (1) A DUAL-FUEL UTILITY SHALL8
	321	+	WORK WITH A GAS PLANNING PILOT COMMUNITY TO RANK AND PRIORITIZE9
	322	+	NEIGHBORHOOD-SCALE ALTERNATIVES PROJECTS WITHIN EACH GAS10
	323	+	PLANNING PILOT COMMUNITY BASED ON LOCAL GOVERNMENT INPUT AND11
	324	+	CONSIDERATION OF:12
	325	+	(a) THE NUMBER AND CUSTOMER CLASS SERVED BY EACH PIPELINE13
	326	+	SEGMENT INCLUDED IN A NEIGHBORHOOD -SCALE ALTERNATIVES PROJECT;14
	327	+	(b) THE DEGREE OF SUPPORT FOR THE NEIGHBORHOOD -SCALE15
	328	+	ALTERNATIVES PROJECT FROM CUSTOMERS POTENTIALLY IMPACTED BY16
	329	+	THE PROJECT, WITH PREFERENCE GIVEN TO THOSE PROJECTS THAT HAVE17
	330	+	FULL SUPPORT FROM POTENTIA LLY IMPACTED CUSTOMERS ;18
	331	+	(c) THE COST-EFFECTIVENESS OF THE NEIGHBORHOOD -SCALE19
	332	+	ALTERNATIVES PROJECT, USING THE COST-BENEFIT HANDBOOK FROM THE20
	333	+	DUAL-FUEL UTILITY'S MOST RECENT GAS INFRASTRUCTURE PLAN ;21
	334	+	(d) THE NET COST TO CUSTOMERS POTENTIALLY PARTICIPATING IN22
	335	+	THE NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT;23
	336	+	(e) THE AVAILABILITY OF ALTERNATIVE ENERGY SERVICE,24
	337	+	INCLUDING FOR SCENARIOS WITH ENHANCED GAS AND ELECTRIC DEMAND25
	338	+	RESPONSE OR DEMAND FLEXIBILITY ;26
	339	+	(f) THE ABILITY OF THERMAL ENERGY NETWORKS TO SERVE THE27
	340	+	1370
	341	+	-11- AREA COVERED BY THE NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT,1
	342	+	WITH PRIORITY GIVEN TO PROJECTS THAT INCLUDE A THERMAL ENERGY2
	343	+	NETWORK OR A GEOTHERMAL ENERGY PROJECT ;3
	344	+	(g) WHETHER THE NEIGHBORHOOD -SCALE ALTERNATIVES PROJECT4
	345	+	IS PART OF A NEW DEVELOPMENT OR WOULD SERVE EXISTING CUSTOMERS,5
	346	+	OR BOTH;6
	347	+	(h) THE PRIORITIZATION OF PIPELINE SEGMENTS THAT ARE PART OF7
	348	+	PROJECTS INCLUDED IN A DUAL-FUEL UTILITY'S GAS INFRASTRUCTURE8
	349	+	PLAN OR OTHERWISE IDENTIFIED BY THE DUAL -FUEL UTILITY FOR9
	350	+	INCLUSION IN A FUTURE GAS INFRASTRUCTURE PLAN, TO THE EXTENT THIS10
	351	+	INFORMATION IS AVAILABLE; AND11
	352	+	(i) THE LOCATION OF ANY NEARBY DISPROPORTIONATELY12
	353	+	IMPACTED COMMUNITY OR PIPELINE SEGMENTS THAT SERVE13
	354	+	DISPROPORTIONATELY IMPACTED COMMUNITIES .14
	355	+	(2) (a) (I) PRIOR TO JUNE 1, 2026, A DUAL-FUEL UTILITY AND15
	356	+	LOCAL GOVERNMENT SHALL JOINTLY SUBMIT FOR APPR OVAL AT LEAST ONE16
	357	+	INITIAL NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT, TO BE LOCATED17
	358	+	WITHIN A GAS PLANNING PILOT COMMUNITY , TO THE COMMISSION IF THE18
	359	+	NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT HAS THE FULL SUPPORT OF19
	360	+	POTENTIALLY AFFECTED CUSTOMERS. THE FILING MUST ALSO CONTAIN A20
	361	+	LIST OF POTENTIAL PROJECTS THAT ARE RANKED HIGHLY BUT DO NOT21
	362	+	HAVE FULL CUSTOMER SUPPORT AT THE TIME OF THE FILING .22
	363	+	(II) PRIOR TO JUNE 1, 2027, A DUAL-FUEL UTILITY AND A LOCAL23
	364	+	GOVERNMENT SHALL JOINTLY SUBMIT FOR COMMISSION APPROVAL THE24
	365	+	NEIGHBORHOOD-SCALE ALTERNATIVES PROJECTS INCLUDED ON THE LIST25
	366	+	IN THE FILING SUBMITTED PURSUANT TO SUBSECTION (2)(a)(I) OF THIS26
	367	+	SECTION AND THAT WILL BE PURSUED IN A GAS PLANNING PILOT27
	368	+	1370
	369	+	-12- COMMUNITY, WHICH PROJECTS MAY LACK FULL CUSTOMER SUPPORT IF THE1
	370	+	LOCAL GOVERNMENT HAS D ETERMINED THAT A REASONABLE MAJORITY OF2
	371	+	CUSTOMERS SUPPORTS THE PROJECT. THE LOCAL GOVERNMENT SHALL3
	372	+	DETERMINE WHAT CONSTITUTES A REASONABLE MAJORITY. THE4
	373	+	DETERMINATION OF A REASONABLE MAJORITY OF CUSTOMER SUPPORT AND5
	374	+	EFFORTS TO OBTAIN CUSTOMER CONSENT MUST BE SUPPORTED BY A6
	375	+	SWORN AFFIDAVIT OR TESTIMONY FROM AN OFFICIAL EMPLOYEE OF THE7
	376	+	LOCAL GOVERNMENT AS PART OF THE JOINT APPLICATION TO THE8
	377	+	COMMISSION. THE JOINT APPLICATION MUST ALSO INCLUDE THE NET COSTS9
	378	+	OF THE PROJECTS, INCLUDING ANY:10
	379	+	(A) STATE OR FEDERAL FUNDING OR TAX CREDITS ;11
	380	+	(B) GAS PLANNING PILOT COMMUNITY INCENTIVES OR FUNDING ;12
	381	+	(C) EXISTING DUAL-FUEL UTILITY PROGRAM FUNDING ;13
	382	+	(D) ADDITIONAL DUAL-FUEL UTILITY INCENTIVES OR FUNDING;14
	383	+	(E) CUSTOMER CONTRIBUTIONS ; AND15
	384	+	(F) ANTICIPATED TOTAL CAPITAL EXPENDITURES BY THE16
	385	+	DUAL-FUEL UTILITY AND CUSTOMERS, AVOIDED UTILITY CAPITAL17
	386	+	EXPENDITURES, AND FUTURE DISCOUNTED CUSTOMER UTILITY BILL18
	387	+	SAVINGS OR EXPENSES.19
	388	+	(III) IF A DUAL-FUEL UTILITY WILL NOT PURSUE A20
	389	+	NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT IN ONE OR MORE GAS21
	390	+	PLANNING PILOT COMMUNITIES, THE DUAL-FUEL UTILITY AND LOCAL22
	391	+	GOVERNMENT, PRIOR TO JUNE 1, 2027, SHALL JOINTLY FILE A REPORT WITH23
	392	+	THE COMMISSION EXPLAINING WHY A NEIGHBORHOOD -SCALE24
	393	+	ALTERNATIVES PROJECT WILL NOT BE PURSUED IN THAT COMMUNITY .25
	394	+	(b) THE COMMISSION SHALL PROVIDE AN OPPORTUNITY FOR PUBLIC26
	395	+	COMMENT REGARDING THE DUAL-FUEL UTILITY'S SUBMISSION PURSUANT27
	396	+	1370
	397	+	-13- TO SUBSECTION (2)(a)(III) OF THIS SECTION.1
	398	+	(c) THE COMMISSION SHALL APPROVE A NEIGHBORHOOD-SCALE2
	399	+	ALTERNATIVES PROJECT APPLICATION SUBMITTED BY A DUAL -FUEL3
	400	+	UTILITY IF:4
	401	+	(I) THE PROJECT IS SUPPORTED BY A LOCAL GOVERNMENT5
	402	+	ORDINANCE, PROCLAMATION, OR RESOLUTION;6
	403	+	(II) THE COMMISSION FINDS THAT THE PROJECT IS:7
	404	+	(A) CONSISTENT WITH THE STATE'S GREENHOUSE GAS REDUCTION8
	405	+	GOALS; AND9
	406	+	(B) IN THE PUBLIC INTEREST, CONSIDERING COSTS AND BENEFITS10
	407	+	TO THE GAS PLANNING PILOT COMMUNITY , PARTICIPATING CUSTOMERS,11
	408	+	AND RATEPAYERS WITHIN THE DUAL-FUEL UTILITY'S GAS SERVICE12
	409	+	TERRITORY AND ANY COST SHIFT BETWEEN PARTICIPATING CUSTOMERS13
	410	+	AND ALL RATEPAYERS OF THE DUAL -FUEL UTILITY, WITH PREFERENCE14
	411	+	GIVEN TO PROJECTS THAT RESULT IN NO COST SHIFT TO NONPARTICIPATING15
	412	+	CUSTOMERS;16
	413	+	(III) THE APPROVED PORTFOLIO OF NEIGHBORHOOD -SCALE17
	414	+	ALTERNATIVES PROJECTS PROVIDES AN APPROPRIATE MIX OF18
	415	+	TECHNOLOGIES, CUSTOMER CLASSES, AND NEW CONSTRUCTION AND19
	416	+	EXISTING BUILDINGS AND INCLUDES THE USE OF THERMAL ENERGY20
	417	+	NETWORKS OR GEOTHERMAL ENERGY PROJECTS ; AND21
	418	+	(IV) THE COMMISSION FINDS THAT ALTERNATIVE ENERGY SERVICE22
	419	+	IS AVAILABLE TO ALL CUSTOMERS WITHIN THE PROJECT AREA AND CAN23
	420	+	REASONABLY BE IMPLEMENTED WITHIN THE PROJECT AREA. IN MAKING24
	421	+	THIS FINDING, THE COMMISSION SHALL CONSIDER:25
	422	+	(A) THE COST OF END USES POWERED BY DIFFERENT FUELS,26
	423	+	IMPACTS ON INCOME-QUALIFIED UTILITY CUSTOMERS AND CUSTOMERS27
	424	+	1370
	425	+	-14- LIVING IN DISPROPORTIONATELY IMPACTED COMMUNITIES, AND THE1
	426	+	STATE'S GREENHOUSE GAS EMISSION REDUCTION GOALS ;2
	427	+	(B) EXISTING UTILITY OR OTHER INCENTIVES TO SUPPORT3
	428	+	CUSTOMER ADOPTION OF THE ALTERNATIVE ENERGY SERVICE ; AND4
	429	+	(C) THE DEGREE OF CUSTOMER SUPPORT FOR THE PROJECT ,5
	430	+	CONSIDERING THE INFORMATION PROVIDED PURSUANT TO SUBSECTION6
	431	+	(1)(b) OF THIS SECTION, AND WITH PRIORITY GIVEN TO PROJECTS THAT7
	432	+	HAVE THE FULL SUPPORT OF POTENTIALLY AFFECTED CUSTOMERS .8
	433	+	(3) (a) THE COMMISSION SHALL ALLOW A DUAL-FUEL UTILITY TO9
	434	+	CURRENTLY RECOVER THE COSTS INCURRED DURING THE DEVELOPMENT10
	435	+	OF A NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT, INCLUDING COSTS11
	436	+	TO TRANSITION THE DISTRIBUTION SYSTEM, INVEST IN ELECTRIC12
	437	+	INFRASTRUCTURE, AND PROVIDE CUSTOMER INCENTIVES. SUCH COSTS ARE13
	438	+	FULLY RECOVERABLE REGARDLESS OF THE PERFORMANCE OF THE14
	439	+	ALTERNATIVE ENERGY SERVICE. THE COMMISSION SHALL ALSO PERMIT15
	440	+	COST RECOVERY FOR PERSONNEL TO WORK ON THE DEVELOPMENT, IN16
	441	+	WHOLE OR IN PART, OF NEIGHBORHOOD-SCALE ALTERNATIVES PROJECTS.17
	442	+	(b) THE DUAL-FUEL UTILITY SHALL PROPOSE TO THE COMMISSION18
	443	+	HOW COSTS WILL BE RECOVERED ACROSS THE DUAL-FUEL UTILITY'S19
	444	+	ELECTRIC AND GAS BUSINESS.20
	445	+	(c) FOR GAS PLANNING PILOT COMMUNITIES THAT RECEIVE GAS21
	446	+	SERVICE FROM A DUAL-FUEL UTILITY BUT ARE NOT SERVED BY THE22
	447	+	ELECTRIC UTILITY THAT IS PART OF THE DUAL-FUEL UTILITY, THE23
	448	+	COMMISSION SHALL CONSIDER A COST -SHARING AGREEMENT, AS24
	449	+	NECESSARY TO IMPLEMENT A NEIGHBORHOOD-SCALE ALTERNATIVES25
	450	+	PROJECT, WHICH AGREEMENT THE DUAL-FUEL UTILITY PROPOSES TO ENTER26
	451	+	INTO WITH A LOCAL COOPERATIVE ELECTRIC ASSOCIATION OR27
	452	+	1370
	453	+	-15- MUNICIPALLY OWNED ELECTRIC UTILITY TO MAKE THE INCUMBENT GAS1
	454	+	UTILITY THAT IS PART OF THE DUAL-FUEL UTILITY AND ITS CUSTOMERS2
	455	+	WHOLE FOR ANY PROJECTS APPROVED BY THE COMMISSION WHEN THERE3
	456	+	IS A COST SHIFT. THIS SUBSECTION (3)(c) SHALL NOT BE CONSTRUED TO4
	457	+	SUBJECT A LOCAL COOPERATIVE ELECTRIC ASSOCIATION OR MUNICIPALLY5
	458	+	OWNED ELECTRIC UTILITY ENTERING INTO SUCH AN AGREEMENT WITH A6
	459	+	DUAL-FUEL UTILITY TO THE JURISDICTION OF THE COMMISSION. ANY7
	460	+	FEDERAL, STATE, OR LOCAL FUNDING MADE AVAILABLE FOR A PROJECT8
	461	+	SHALL BE APPLIED PRIOR TO APPLICATION OF UTILITY PROGRAMMATIC9
	462	+	FUNDS, SUCH AS DEMAND -SIDE MANAGEMENT , BENEFICIAL10
	463	+	ELECTRIFICATION, OR OTHER EXISTING OR FUTURE CUSTOMER-SITED11
	464	+	PROGRAMS, INCENTIVES, REBATES, AND FINANCING.12
	465	+	(4) IN APPROVING A NEIGHBORHOOD -SCALE ALTERNATIVES13
	466	+	PROJECT IN A GAS PLANNING PILOT COMMUNITY, THE COMMISSION MAY14
	467	+	MODIFY THE GAS UTILITY'S SERVICE REQUIREMENT FOR SELECT PREMISES15
	468	+	WITH AN ALTERNATIVE ENERGY SERVICE REQUIREMENT .16
	469	+	NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, NOTHING17
	470	+	IN THIS SECTION AFFECTS OR ABRIDGES A DUAL-FUEL UTILITY'S SERVICE18
	471	+	REQUIREMENTS IN AREAS OUTSIDE THE NEIGHBORHOOD -SCALE19
	472	+	ALTERNATIVES PROJECT AREA. THE COMMISSION MAY IMPOSE AN20
	473	+	ALTERNATIVE ENERGY SERVICE REQUIREMENT FOR ANY CERTIFICATE OF21
	474	+	PUBLIC CONVENIENCE AND NECESSITY GRANTED TO THE GAS UTILITY TO22
	475	+	PROVIDE SERVICE TO THE TARGETED AREA THAT IS THE SUBJECT OF THE23
	476	+	NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT IF THE COMMISSION FINDS24
	477	+	THAT ALTERNATIVE ENERGY SERVICE IS AVAILABLE .25
	478	+	(5) (a) AS PART OF A NEIGHBORHOOD -SCALE ALTERNATIVES26
	479	+	PROJECT, A DUAL-FUEL UTILITY MAY PROPOSE TO FUND CONVERSION OF27
	480	+	1370
	481	+	-16- EXISTING GAS APPLIANCES OR EQUIPMENT TO NONEMITTING THERMAL1
	482	+	RESOURCES, INCLUDING OFFERING INCREMENTAL INCENTIVES OR2
	483	+	FINANCING ABOVE THAT APPROVED FOR CLEAN HEAT PLANS, AS DEFINED3
	484	+	IN SECTION 40-3.2-108; BENEFICIAL ELECTRIFICATION PLANS, AS DEFINED4
	485	+	IN SECTION 40-3.2-109; DEMAND-SIDE MANAGEMENT PROGRAMS , AS5
	486	+	DEFINED IN SECTION 40-1-102; OR OTHER RELATED FILINGS.6
	487	+	(b) A DUAL-FUEL UTILITY MAY ALSO PROPOSE TO OFFER NEW RATE7
	488	+	STRUCTURES TO PAY FOR THERMAL ENERGY NETWORKS OR OTHER8
	489	+	NONEMITTING THERMAL RESOURCES AS AN ALTERNATIVE ENERGY9
	490	+	SERVICE, UNDER WHICH RATE STRUCTURES CUSTOMERS PAY THE UTILITY10
	491	+	FOR THERMAL ENERGY NETWORK SERVICES TO OFFSET THE INITIAL COST11
	492	+	OF NEW APPLIANCES OR OTHER EQUIPMENT. IF A DUAL-FUEL UTILITY12
	493	+	PROPOSES TO OFFER SUCH A RATE, THE COMMISSION SHALL NOT GRANT13
	494	+	THE DUAL-FUEL UTILITY CURRENT COST RECOVERY PURSUANT TO14
	495	+	SUBSECTION (3)(a) OF THIS SECTION. A DUAL-FUEL UTILITY SHALL HAVE15
	496	+	THE RIGHT OF FIRST REFUSAL TO OFFER THERMAL ENERGY NETWORK16
	497	+	SERVICE OR ALTERNATIVE ENERGY SERVICE AS PART OF A17
	498	+	NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT, IF THE DUAL-FUEL18
	499	+	UTILITY SETS FORTH ITS INTENTION TO EXERCISE ITS RIGHT OF FIRST19
	500	+	REFUSAL AND DEFINES THE SCOPE OF SUCH EXERCISE IN THE APPLICATION20
	501	+	TO THE COMMISSION AND SUCH RIGHT OF FIRST REFUSAL :21
	502	+	(I) IS LIMITED TO NEIGHBORHOOD-SCALE ALTERNATIVES PROJECTS22
	503	+	IN GAS PLANNING PILOT COMMUNITIES; AND23
	504	+	(II) IS EXERCISED WITHIN TWO YEARS AFTER APPROVAL BY THE24
	505	+	COMMISSION.25
	506	+	(6) IF A NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT QUALIFIES26
	507	+	AS AN ENERGY SECTOR PUBLIC WORKS PROJECT, AS DEFINED IN SECTION27
	508	+	1370
	509	+	-17- 24-92-303, A DUAL-FUEL UTILITY SHALL COMPLY WITH ALL1
	510	+	REQUIREMENTS SET FORTH IN PART 3 OF ARTICLE 92 OF TITLE 24. THE2
	511	+	DUAL-FUEL UTILITY SHALL UTILIZE UTILITY EMPLOYEES OR CONTRACTORS3
	512	+	THAT MEET THE APPRENTICESHIP UTILIZATION REQUIREMENTS SET FORTH4
	513	+	IN SECTION 24-92-115 TO SERVICE AND MAINTAIN ANY THERMAL ENERGY5
	514	+	OR GEOTHERMAL ENERGY PROJECTS OWNED BY THE DUAL-FUEL UTILITY6
	515	+	AND APPROVED BY THE COMMISSION UNDER THIS SECTION .7
	516	+	(7) BY JUNE 1 OF EACH YEAR FOLLOWING APPROVAL OF A8
	517	+	NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT, A DUAL-FUEL UTILITY9
	518	+	SHALL SUBMIT A REPORT TO THE COMMISSION ON THE IMPLEMENTATION10
	519	+	OF THE NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT. THE REPORT11
	520	+	MUST INCLUDE, AT A MINIMUM:12
	521	+	(a) AN UPDATE ON PROJECT IMPLEMENTATION , INCLUDING THE13
	522	+	DEGREE OF CUSTOMER SUPPORT FOR THE PROJECT ;14
	523	+	(b) AN EXPLANATION OF CUSTOMER SATISFACTION WITH15
	524	+	ALTERNATIVE ENERGY SERVICE ;16
	525	+	(c) ACTUAL NET PROJECT COSTS INCURRED , INCLUDING ANY:17
	526	+	(I) STATE OR FEDERAL FUNDING OR TAX CREDITS ;18
	527	+	(II) GAS PLANNING PILOT COMMUNITY INCENTIVES OR FUNDING ;19
	528	+	(III) EXISTING DUAL-FUEL UTILITY PROGRAM FUNDING ;20
	529	+	(IV) ADDITIONAL DUAL-FUEL UTILITY INCENTIVES OR FUNDING;21
	530	+	(V) CUSTOMER CONTRIBUTIONS ;22
	531	+	(VI) ANTICIPATED TOTAL CAPITAL EXPENDITURES BY THE23
	532	+	DUAL-FUEL UTILITY AND CUSTOMERS, AVOIDED UTILITY CAPITAL24
	533	+	EXPENDITURES, AND FUTURE DISCOUNTED CUSTOMER UTILITY BILL25
	534	+	SAVINGS OR EXPENSES; AND26
	535	+	(VII) ESTIMATED OVERALL PROJECT COSTS IF NO INCENTIVES OR27
	536	+	1370
	537	+	-18- TAX CREDITS HAD BEEN AVAILABLE FOR THE PROJECT ;1
	538	+	(d) THE IMPACT ON TOTAL ENERGY BILL AND ENERGY RELIABILITY2
	539	+	FOR CUSTOMERS RECEIVING ALTERNATIVE ENERGY SERVICE ;3
	540	+	(e) ANY ENCOUNTERED BARRIERS TO PROJECT IMPLEMENTATION,4
	541	+	INCLUDING TECHNOLOGICAL OR WORKFORCE BARRIERS , AND THE LESSONS5
	542	+	LEARNED IN OVERCOMING THOSE BARRIERS ;6
	543	+	(f) THE IMPACT ON INCOME-QUALIFIED UTILITY CUSTOMERS AND7
	544	+	CUSTOMERS LIVING IN DISPROPORTIONATELY IMPACTED COMMUNITIES ;8
	545	+	AND9
	546	+	(g) ANY OTHER INFORMATION REQUIRED BY THE COMMISSION .10
	547	+	(8) BY JULY 1, 2028, OR ANOTHER TIME DETERMINED BY THE11
	548	+	COMMISSION, THE COMMISSION SHALL HIRE A THIRD-PARTY CONSULTANT12
	549	+	TO CONDUCT AN ANALYSIS OF ALL APPROVED AND PROPOSED13
	550	+	NEIGHBORHOOD-SCALE ALTERNATIVES PROJECTS AND PRESENT THE14
	551	+	FINDINGS OF THE ANALYSIS TO THE COMMISSION AND THE GENERAL15
	552	+	ASSEMBLY. THE ANALYSIS MUST INCLUDE:16
	553	+	(a) FOR EACH PROJECT, THE INFORMATION SET FORTH IN17
	554	+	SUBSECTION (7) OF THIS SECTION;18
	555	+	(b) A COMPARATIVE ANALYSIS OF NET COSTS INCURRED BY ALL19
	556	+	PARTIES IN A NEIGHBORHOOD-SCALE ALTERNATIVES PROJECT, COMPARED20
	557	+	WITH THE COST OF THE GAS INFRASTRUCTURE PROJECT THAT WAS21
	558	+	AVOIDED, INCLUDING ANY:22
	559	+	(I) STATE OR FEDERAL FUNDING OR TAX CREDITS ;23
	560	+	(II) GAS PLANNING PILOT COMMUNITY INCENTIVES OR FUNDING ;24
	561	+	(III) EXISTING DUAL-FUEL UTILITY PROGRAM FUNDING ;25
	562	+	(IV) ADDITIONAL DUAL-FUEL UTILITY INCENTIVES OR FUNDING;26
	563	+	(V) CUSTOMER CONTRIBUTIONS ;27
	564	+	1370
	565	+	-19- (VI) ANTICIPATED TOTAL CAPITAL EXPENDITURES BY THE1
	566	+	DUAL-FUEL UTILITY AND CUSTOMERS, AVOIDED UTILITY CAPITAL2
	567	+	EXPENDITURES, AND FUTURE DISCOUNTED CUSTOMER UTILITY BILL3
	568	+	SAVINGS OR EXPENSES; AND4
	569	+	(VII) ESTIMATED OVERALL PROJECT COSTS IF NO INCENTIVES OR5
	570	+	TAX CREDITS HAD BEEN AVAILABLE FOR THE PROJECT ;6
	571	+	(c) THE ABILITY OF EACH PROJECT TO DEFER OR AVOID GAS7
	572	+	INFRASTRUCTURE INVESTMENTS ;8
	573	+	(d) THE CUSTOMER ECONOMICS OF NON -EMITTING THERMAL9
	574	+	RESOURCES COMPARED WITH GAS ALTERNATIVES ;10
	575	+	(e) AN ANALYSIS OF ANY SUPPLY CHAIN CHALLENGES ;11
	576	+	(f) THE OVERALL LESSONS LEARNED FROM THE PROJECTS ;12
	577	+	(g) THE PERSPECTIVES OF THE GAS PLANNING PILOT COMMUNITIES13
	578	+	REGARDING THE COLLABORATIVE PROCESS WITH A DUAL -FUEL UTILITY14
	579	+	AND ANY LESSONS LEARNED FOR IMPROVING THE PROCESS ;15
	580	+	(h) THE NET IMPACTS TO THE UTILITY WORKFORCE ; AND16
	581	+	(i) ANY OTHER INFORMATION REQUIRED BY THE COMMISSION .17
	582	+	SECTION 2. Appropriation. (1) For the 2024-25 state fiscal18
	583	+	year, $43,650 is appropriated to the office of the governor for use by the19
	584	+	Colorado energy office. This appropriation is from the general fund, and20
	585	+	is based on an assumption that the office will require an additional 0.421
	586	+	FTE. To implement this act, the office may use this appropriation for22
	587	+	program administration.23
	588	+	(2) For the 2024-25 state fiscal year, $29,678 is appropriated to24
	589	+	the department of regulatory agencies for use by the public utilities25
	590	+	commission. This appropriation is from the public utilities commission26
	591	+	fixed utility fund created in section 40-2-114 (1)(b)(II), C.R.S. To27
	592	+	1370
	593	+	-20- implement this act, the commission may use this appropriation as follows:1
	594	+	(a) $22,752 for personal services, which amount is based on an2
	595	+	assumption that the commission will require an additional 0.2 FTE; and3
	596	+	(b) $6,926 for operating expenses.4
	597	+	SECTION 3. Act subject to petition - effective date. This act5
	598	+	takes effect at 12:01 a.m. on the day following the expiration of the6
	599	+	ninety-day period after final adjournment of the general assembly; except7
	600	+	that, if a referendum petition is filed pursuant to section 1 (3) of article V8
	601	+	of the state constitution against this act or an item, section, or part of this9
	602	+	act within such period, then the act, item, section, or part will not take10
	603	+	effect unless approved by the people at the general election to be held in11
	604	+	November 2024 and, in such case, will take effect on the date of the12
	605	+	official declaration of the vote thereon by the governor.13
	606	+	1370
	607	+	-21-