Clean Heat Targets

(a)Clean heat targets shall align with the statewide greenhouse gas emission reduction goals set forth in § 25-7-102(2)(g), C.R.S., and shall be consistent with § 40-3.2-108, C.R.S., et seq.#

(b)Baseline emissions, system-wide emissions, and reductions in emissions shall be calculated in accordance with rules 4525 through 4528.#

(c)Baseline.#

(I)The utility shall calculate a baseline level of emissions for calendar year 2015, calculated in accordance with rule 4527.#

(II)The utility shall exclude the emissions of customers, and to the extent practicable identify those customers and their associated load, that report their own greenhouse gas emissions to the United States Environmental Protection Agency under applicable federal law.#

(d)Targets.#

(I)The following clean heat targets apply for a gas distribution utility:#

(A)four percent reduction in greenhouse gas emissions in calendar year 2025 as compared to a 2015 baseline, of which not more than one percent (one-fourth of the emission reductions required to meet the 2025 target) can be from recovered methane;#

(B)22 percent reduction in greenhouse gas emissions in calendar year 2030 as compared to a 2015 baseline, of which not more than five percent (five-twenty seconds of the emission reductions required to meet the 2030 target) can be from recovered methane;#

(C)41 percent reduction in greenhouse gas emissions in calendar year 2035 as compared to a 2015 baseline; and#

(D)a jurisdictional gas utility's clean heat plan may exceed the recovered methane caps set forth above in subparagraphs (A) and#

(B)if the Commission finds that the utility otherwise could not cost- effectively meet the clean heat targets and that exceeding the recovered methane caps is in the public interest.#

(II)No later than December 1, 2032, the Commission, in consultation with the Air Pollution Control Division, shall determine the mass-based clean heat targets for years 2040, 2045, and 2050 using the 2015 baseline pursuant to § 40-3.2-108(11), C.R.S.#

(e)For clean heat targets beginning in year 2035, the maximum amount, if any, of each target reduction in greenhouse gas emissions that may be from recovered methane shall be determined by the Commission if such maximum levels promote investment in Colorado communities, reduce greenhouse gas emissions, are cost-effective, and are in the public interest.#