HF164 Summary: Energy Conservation and Optimization Act of 2021

• Increases statewide energy savings goal from 1.5% to 2.5% of annual retail electricity and natural gas sales through conservation improvements, rate design, efficiency standards, and other measures.

• Establishes new consumer-owned utility requirements (municipal/cooperative utilities over 1,000 customers) with annual energy savings goal of 1.5% of gross retail energy sales, with minimum 0.95% from direct energy conservation improvements.

• Raises public utility energy savings goals from 1.5% to 1.75% for electric service and maintains 1% for natural gas service, with minimum 1% from conservation improvements for electric utilities.

• Creates comprehensive definitions and criteria for "efficient fuel-switching improvements" (switching from one fuel type to another with net reductions in source energy and greenhouse gas emissions) and establishes technical guidelines for evaluating these programs.

• Increases low-income program spending requirements for public utilities and consumer-owned utilities (ranging from 0.2% to 0.6% of gross operating revenue from residential customers) and establishes new Healthy AIR account for asbestos remediation services.