ENGROSSED ORIGINAL 1 A BILL 1 2 25-119 3 4 5 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 6 7 ____________________ 8 9 10 To amend the Clean and Affordable Energy Act of 2008 to create the Breathe Easy Program 11 within the Department of Energy and the Environment to provide residential 12 electrification retrofits for low-income and moderate-income households; to amend the 13 Green Building Act of 2006 to exempt the value of improvements made through the 14 Breathe Easy Program from the definition of “substantial improvement” for the purposes 15 of the Green Building Act of 2006, and to provide that the Green Building Advisory 16 Council shall advise the Mayor on implementation of the Breathe Easy Program; to 17 amend the Retail Competition and Consumer Protection Act of 1999 to exempt 18 subscribers of projects created through the Solar For All Program from limits on offsets 19 to costs of electricity consumption; and to amend section 47-1803.02 of the District of 20 Columbia Official Code to provide that the value of benefits received through the Breathe 21 Easy Program shall not be subject to District income tax. 22 23 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 24 act may be cited as the “Healthy Homes and Residential Electrification Amendment Act of 25 2024”. 26 Sec. 2. The Clean and Affordable Energy Act of 2008, effective October 22, 2008 (D.C. 27 Law 17-250; D.C. Official Code § 8-1773.01 et seq.), is amended by adding a new section 217 to 28 read as follows: 29 “Sec. 217. Breathe Easy Program established. 30 “(a)(1) There is established the Breathe Easy Program (“Program”) within DOEE that: 31 ENGROSSED ORIGINAL 2 “(A) Shall provide residential electrification retrofits to low-income 32 District households, including households in multi-unit residential buildings where at least 50% 33 of the occupied housing units are occupied by low-income households at the time of income 34 verification; 35 “(B) May provide residential electrification retrofits to moderate-income 36 District households; and 37 “(C) Shall provide training and education to contractors that provide 38 residential electrification retrofits through the Program. 39 “(2) The Program shall provide residential electrification retrofits at no cost to 40 low-income households, including households in multi-unit residential buildings where at least 41 50% of the units are occupied by low-income households in accordance with the following 42 timeline: 43 “(A) 2,500 shall be completed by December 31, 2027; 44 “(B) 10,000 shall be completed by December 31, 2032; 45 “(C) 20,000 shall be completed by December 31, 2037; and 46 “(D) 30,000 shall be completed by December 31, 2040. 47 “(3) The Program may provide residential electrification retrofits to moderate- 48 income households, subsidized in accordance with the sliding scale published pursuant to 49 subsection (b)(6) of this section; provided, that residential electrification retrofits made pursuant 50 ENGROSSED ORIGINAL 3 to this paragraph shall not be counted towards the requirements of paragraph (2) of this 51 subsection. 52 “(4) DOEE shall partner with nonprofit organizations to provide training and 53 education related to the provision of residential electrification retrofits for businesses and 54 individuals in accordance with the recommendations published pursuant to subsection (b)(7) of 55 this section. 56 “(b) By September 30, 2024, DOEE shall publish on its website and submit to the 57 Council a plan to administer the Program, which shall include: 58 “(1) A description of how residential electrification retrofits will be completed; 59 “(2) If DOEE proposes to partner with private contractors to make residential 60 electrification retrofits, a description of how DOEE will maximize participation of District 61 residents and businesses that are eligible to be certified as equity impact enterprises; 62 “(3) Eligibility criteria for: 63 “(A) Low-income and moderate-income households to receive a 64 residential 65 electrification retrofit through the Program, including a process for income verification; 66 “(B) Multi-unit residential buildings to receive a residential retrofit 67 through the Program, including a process for certifying that at least 50% of units are occupied by 68 low-income households; and 69 ENGROSSED ORIGINAL 4 “(C) Private contractors to provide residential electrification retrofits 70 through the Program; 71 “(4) A description of allowable appliances, methods, materials, and technology to 72 be used in residential electrification retrofits; 73 “(5) Strategies for: 74 “(A) Prioritizing residential electrification retrofits for households with the 75 lowest household incomes; and 76 “(B) Identifying and prioritizing low-income households that can receive 77 residential electrification retrofits most cost-effectively, including by combining electrification 78 retrofits with other services provided or subsidized by DOEE or other District agencies; 79 “(6) A sliding scale to be used when subsidizing the cost of providing residential 80 electrification retrofits to moderate-income households; 81 “(7) Recommendations to eliminate or reduce the cost to businesses and 82 individuals of providing training pursuant to subsection (a)(4) of this section in order to 83 maximize: 84 “(A) Participation in the Program of businesses that are eligible 85 to be certified as equity impact enterprises; and 86 “(B) Employment of District residents by businesses participating in the 87 Program; 88 ENGROSSED ORIGINAL 5 “(8) The estimated number of low-income and moderate-income households that 89 will receive residential electrification retrofits in each year of the Program; and 90 “(9) A description of how DOEE will coordinate with the Green Building 91 Advisory Council. 92 “(c) Beginning on January 1, 2025, and annually thereafter, DOEE shall publish on its 93 website and submit to the Council a report on progress toward meeting the requirements of 94 subsection (a)(1) and (2) of this section, including the number of residential electrification 95 retrofits completed in each calendar year of the Program’s operation and the number of 96 residential electrification retrofits planned to be completed in the following calendar year. 97 “(d) Participation in the Program shall not preclude a person from receiving other 98 improvements provided by DOEE or another District agency. 99 “(e)(1) The Mayor, pursuant to Title I of the District of Columbia Administrative 100 Procedure 101 Act, approved October 21, 1968 (82 Stat. 1204; D.C. Official Code § 2-501 et seq.), may issue 102 rules to implement the provisions of this section. The proposed rules shall be submitted to the 103 Council for a 45-day period of review, excluding Saturdays, Sundays, legal holidays, and days of 104 Council recess. If the Council does not approve or disapprove the proposed rules, in whole or in 105 part, by resolution within the 45-day review period, the proposed rules shall be deemed 106 approved. 107 ENGROSSED ORIGINAL 6 “(2) The rules issued pursuant to paragraph (1) of this subsection may include 108 rules to preserve the affordability of homes that receive residential electrification retrofits under 109 this section. 110 “(f) For purposes of this section, the term: 111 “(1) “Equity impact enterprise” shall have the same meaning as provided in 112 section 2302(8A) of the Small, Local, and Disadvantaged Business Enterprise Development and 113 Assistance Act of 2005, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code § 2-114 218.02(8A)). 115 “(2) “Low-income household” means a household with a total income less than 116 80% of the median family income for the metropolitan area that includes the District, as 117 published by the U.S. Department of Housing and Urban Development. 118 “(3) “Moderate-income household” means a household with a total income 119 equal to or greater than 80% but less than 150% of the median family income for the 120 metropolitan area that includes the District, as published by the U.S. Department of Housing and 121 Urban Development. 122 “(4) “Residential electrification retrofit” means replacement of all appliances or 123 other systems, such as an oven, water heater, or heating system, that combust fossil fuels on site 124 with appliances or other systems that perform the same function and that are powered 125 exclusively by electricity.”. 126 ENGROSSED ORIGINAL 7 Sec. 3. The Green Building Act of 2006, effective March 8, 2007 (D.C. Law 16-234; 127 D.C. Official Code § 6-1451.01 et seq.), is amended as follows: 128 (a) Section 2(40) (D.C. Official Code § 6-1451.01(40)) is amended by striking the phrase 129 “improvement of a building or structure, the cost of which equals or exceeds 50% of the market 130 value of the structure” and inserting the phrase “improvement of a building or structure, 131 excluding repairs, alterations, additions, or improvements of a building structure made through 132 the Breathe Easy Program, established by section 217 of the Clean and Affordable Energy Act of 133 2008, as approved by the Committee on Transportation and the Environment on March 4, 2024 134 (Committee print of Bill 25-119), the cost of which equals or exceeds 50% of the market value of 135 the structure” in its place. 136 (b) Section 10 (D.C. Official Code § 6-1451.09) is amended as follows: 137 (1) Subsection (c)(1) is amended as follows: 138 (A) The lead-in language is amended by striking the phrase “following 13 139 members” and inserting the phrase “following 15 members” in its place. 140 (B) Subparagraphs (G) is amended by striking the phrase “One member” 141 and inserting the phrase “Two members” in its place. 142 (C) Subparagraphs (H) is amended by striking the phrase “One member” 143 and inserting the phrase “Two members” in its place. 144 (2) Subsection (d) is amended as follows: 145 ENGROSSED ORIGINAL 8 (A) Paragraph (3) is amended by striking the phrase “; and” and inserting 146 a semicolon in its place. 147 (B) Paragraph (4) is amended by striking the period and inserting the 148 phrase “; and” in its place. 149 (C) A new paragraph (5) is added to read as follows: 150 “(5) Equitable implementation of the requirements of the Breathe Easy Program, 151 established by section 217 of the Clean and Affordable Energy Act of 2008, as approved by the 152 Committee on Transportation and the Environment on March 4, 2024 (Committee print of Bill 153 25-119).”. 154 Sec. 4. Section 118a(b) of the Retail Competition and Consumer Protection Act of 1999, 155 effective December 13, 2013 (D.C. Law 20-47; D.C. Official Code § 34–1518.01(b)), is 156 amended by striking the phrase “12 months.” and inserting the phrase “12 months; except, that 157 this subsection shall not apply to subscribers of a project constructed through the Solar for All 158 Program established by section 216 of the Clean and Affordable Energy Act of 2008, effective 159 October 8, 2016 (D.C. Law 21-154; D.C. Official Code § 8-1774.16).” in its place. 160 Sec. 5. Section 47-1803.02(a)(2) of the District of Columbia Official Code is amended by 161 adding a new subparagraph (AAA) to read as follows: 162 “(AAA) Benefits provided through the Breathe Easy Program, established 163 by section 217 of the Clean and Affordable Energy Act of 2008, as approved by the Committee 164 on Transportation and the Environment on March 4, 2024 (Committee print of Bill 25-119).”. 165 ENGROSSED ORIGINAL 9 Sec. 6. Fiscal impact statement. 166 The Council adopts the fiscal impact statement in the committee report as the fiscal 167 impact statement required by section 4a of the General Legislative Procedures Act of 1975, 168 approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 169 Sec. 7. Effective date. 170 This act shall take effect following approval by the Mayor (or in the event of veto by the 171 Mayor, action by the Council to override the veto), a 30-day period of congressional review as 172 provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 173 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)). 174