HB 21-1238: Modernization of Gas Energy Efficiency Programs

• Requires the Public Utilities Commission to incorporate the social costs of greenhouse gas emissions, including carbon dioxide and methane, into cost-effectiveness analyses for gas utility demand-side management (DSM) programs.

• Mandates gas utilities file DSM strategic issues applications beginning in 2022 and every four years thereafter, with the Commission establishing energy savings targets aligned with Colorado's greenhouse gas reduction goals.

• Requires at least 25 percent of residential gas DSM program expenditures be targeted to income-qualified households, or 15 percent for utilities with fewer than 50,000 customers.

• Establishes labor standards requiring utilities to use apprenticeship-registered contractors for gas DSM projects in commercial/industrial buildings over 20,000 square feet.

• Sets minimum social cost values of $68 per short ton for carbon dioxide and $1,756 per short ton for methane in utility planning analyses, with annual escalation adjustments.