Senate Bill 21-246 Summary

• Directs the Public Utilities Commission to approve cost-effective beneficial electrification plans that incentivize voluntary customer adoption of electric appliances (heat pumps, induction stoves, heat pump water heaters) to replace fossil fuel systems in residential, commercial, and industrial settings.

• Requires electric utilities to file beneficial electrification plans by July 1, 2022 (and every three years thereafter) with at least 20% of program funding targeted to low-income households and disproportionately impacted communities.

• Mandates utilities incorporate the social cost of carbon dioxide and methane emissions into cost-benefit analyses, using a minimum social cost of methane of $1,756 per short ton, based on federal interagency assessments.

• Establishes labor standards requiring utilities to use contractors from a certified list participating in registered apprenticeship programs for mechanical, plumbing, and electrical work on projects over 20,000 square feet receiving direct rebates.

• Appropriates $168,448 to the Public Utilities Commission and $73,351 to the Department of Labor and Employment for 2021-22 to implement the bill.