Senate Bill 21-264 Summary

• Establishes "clean heat targets" requiring gas utilities to reduce greenhouse gas emissions by 4% by 2025 and 22% by 2030 from a 2015 baseline, with recovered methane limited to 1% and 5% of reductions respectively.

• Gas distribution utilities must submit comprehensive "clean heat plans" to the Public Utilities Commission detailing how they will achieve targets using clean heat resources including energy efficiency, biomethane, hydrogen, beneficial electrification, and leak reductions.

• Sets a cost cap of 2.5% of annual gas bills for full-service customers to comply with emission reduction targets, with limited exceptions for plans exceeding the cap if they are in the public interest.

• Requires the Air Quality Control Commission to establish recovered methane protocols by February 1, 2023, and creates systems for municipal gas utilities to submit similar emission reduction plans to the Division of Administration by August 1, 2023.

• Appropriates $92,482 to the Public Utilities Commission, $199,111 to the Department of Public Health and Environment, $37,000 to the Governor's office, $21,268 to the Department of Law, and $49,362 to the Oil and Gas Conservation Commission for fiscal year 2021-22.