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Adopt Programs Reduce Greenhouse Gas Emissions Utilities

Concerning the adoption of programs by gas utilities to reduce greenhouse gas emissions, and, in connection therewith, making an appropriation.
2021 Regular Session
Natural Resources & Environment
Bill Summary

Section 1 of the act defines a "gas distribution utility" (GDU) as a gas public utility with more than 90,000 retail customers. The bill requires each GDU to file a clean heat plan (plan) with the public utilities commission (PUC). A plan must demonstrate how the GDU will use clean heat resources to meet clean heat targets (targets) established by the act. The targets are a 4% reduction below 2015 greenhouse gas (GHG) emission levels by 2025 and 22% below 2015 GHG emission levels by 2030.

The PUC will initiate a rule-making proceeding by October 1, 2021, to update demand-side management rules. The PUC will establish a cost cap for each GDU's compliance with its plan. The cost cap is 2.5% of annual gas bills for all of a GDU's full-service customers. The PUC is directed to approve a plan if the PUC finds that doing so is in the public interest.

A municipal GDU must file a plan with the air quality control commission (AQCC) that demonstrates a 4% GHG emission reduction by 2025 and a 22% GHG emission reduction by 2030, both as compared with 2015 levels. Small GDUs may file a plan, which is subject to the cost cap and must contain its own targets.

Section 2 requires the AQCC to initiate a rule-making proceeding by September 1, 2022, to establish protocols for recovered methane that utilities must use in forecasting their emission reductions.

Section 3 directs the oil and gas conservation commission (commission) to conduct a study to evaluate the resources that would be needed to ensure the safe and effective regulation of injection wells used for sequestration of GHG.

Section 4 makes the following appropriations:

  • $92,482 and 1.0 FTE is appropriated from the public utilities commission fixed utility fund to the department of regulatory agencies for use by the PUC;
  • $199,111 and 1.6 FTE is appropriated from the general fund to the department of public health and environment;
  • From reappropriated funds received from the department of public health and environment, $37,000 is appropriated to the office of the governor for use by the office of information technology and $21,268 and 0.1 FTE is appropriated to the department of law; and
  • $49,362 and 0.5 FTE is appropriated from the oil and gas conservation and environmental response fund to the department of natural resources for use by the commission.
    (Note: This summary applies to this bill as enacted.)


Became Law


Bill Text

The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details