{"operation":"document","citation":"4 CCR 723-4 Rule 4731","title":"Clean Heat Plan Application Requirements","source_type":"regulation","agency":"Colorado Public Utilities Commission","status":"current","official":true,"published_on":null,"effective_on":null,"summary":"(a) Initial forecasts. (I) A utility shall present reference (base), low and high forecasts of sales, customer counts, system-wide capacity (design peak demand) requirements, throughput by Btus and volumes of green hydrogen, recovered methane, and total gas, and system-wide greenhouse gas emissions.","machine_formats":{"json":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4731.json","markdown":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4731.md"},"app_url":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4731","source_url":"https://www.sos.state.co.us/CCR/DisplayRule.do?action=ruleinfo&ruleId=2260&deptID=18&agencyID=96&deptName=Department%20of%20Regulatory%20Agencies&agencyName=Public%20Utilities%20Commission&seriesNum=4%20CCR%20723-4","body":"(a) Initial forecasts.\n\n(I) A utility shall present reference (base), low and high forecasts of sales,\ncustomer counts, system-wide capacity (design peak demand)\nrequirements, throughput by Btus and volumes of green hydrogen,\nrecovered methane, and total gas, and system-wide greenhouse gas\nemissions.\n(A) All forecast elements shall be provided for the total utility and by\ncustomer class, for each year of the clean heat plan action period\nand in five-year increments during the clean heat plan informational\nperiod.\n(B) Forecasts should be disaggregated by pressure district, unique\nplanning zones requiring a distinct design peak demand condition,\nor other geographical segmentation, as appropriate.\n(C) The utility shall fully explain, justify, and document the data,\nassumptions, methodologies, models, determinants, and any other\ninputs upon which it relied to develop forecasts pursuant to this\nrule.\n(D) The greenhouse gas emissions forecast should be based on the\nlatest Commission-approved workbook developed by the Air\nPollution Control Division, consistent with paragraph 4527(a),\nupdated for the most recent calendar year of data, and include the\nfactors identified in below in subparagraph (E).\n(E) Forecast(s) shall include consideration of the following factors, to\nthe extent practicable and applicable:\n(i) the effect of current and enacted state and local building\ncodes;\n(ii) changes in line extension policies, and the associated\npotential impact on gas customer growth, in the aggregate;\n(iii) building electrification programs or incentives offered by the\nlocal electric utility or local or federal entities that overlap\nwith a utility’s gas service territory;\n(iv) the price elasticity of demand; and\n(v) other known factors affecting sales and gas supply capacity\nneeds.\n\n(F) Low and high forecasts shall incorporate alternative projections of\ncustomer growth and sales, and any underlying supporting\nassumptions, to assess a reasonable range of variation\nsurrounding the reference (base) forecast.\n(b) Portfolios.\n(I) A utility shall present the following portfolios of clean heat resources:\n(A) at least one portfolio shall use the maximum amount of clean heat\nresources practicable and also comply with a 2.5 percent annual\nretail cost impact cap; This portfolio may or may not meet the clean\nheat target in the applicable plan period, but must demonstrate\nreductions in methane emissions;\n(B) at least one portfolio shall meet the clean heat target regardless of\nthe annual retail cost impact of such portfolio;\n(C) the utility may present other alternative portfolios;\n(D) the Commission may direct the utility to present additional\nalternative portfolios; and\n(E) the utility shall identify a preferred portfolio that best balances,\ngiven the information available, the goals of maintaining just and\nreasonable rates, maintaining system safety, reliability and\nresiliency, protecting disproportionately impacted communities, the\nlabor standards identified below in subparagraph (d)(II)(F), and\ncontribution to statewide progress on meeting the greenhouse gas\nemission reduction goals established in § 25-7-102(2)(g), C.R.S.,\nand the associated clean heat targets in rule 4728.\n(II) If a utility is unable to present portfolios that show compliance with the\ncost cap or compliance with the clean heat target, as described above, the\nutility must show that it has fully investigated all available categories of\nclean heat resources.\n(c) Portfolio forecasts.\n(I) For each portfolio presented, the utility shall provide the forecasts\nidentified above in subparagraph (a)(I), updated to include the set of\nactions proposed in the respective portfolio for each year of the clean heat\nplan action period and every fifth year during the clean heat plan\ninformational period.\n(d) Components of a portfolio.\n\n(I) For each portfolio presented, the utility shall provide, on a portfolio basis:\n(A) identification of the proposed clean heat resources;\n(B) the annual and total cost for implementing the portfolio;\n(C) the annual and total cost for implementing the portfolio in income-\nqualified or disproportionately impacted communities;\n(D) the annual and cumulative projected greenhouse gas emissions\nand reduction in emissions from the baseline emission level\ncalculated pursuant to rules 4525 through 4528;\n(E) an analysis of the projected costs and benefits of the portfolio:\n(i) the cost-benefit analysis shall include but not be limited to:\n(1) fuel costs;\n(2) non-fuel direct investment associated with the clean\nheat plan;\n(3) gas infrastructure costs;\n(4) gas system operations costs; and\n(5) the social cost of carbon and the social cost of\nmethane, consistent with rule 4528.\n(F) an analysis of the annual retail cost impact, which shall be\ncalculated:\n(i) net of the utility's approved gas demand side management\nprogram budgets, except for the costs of any incentive\nadopted or approved by the Commission associated with the\nutility’s demand side management programs; and\n(ii) net of the utility's approved beneficial electrification plan\nprogram budget if the clean heat plan application includes a\nrequest for approval of a beneficial electrification plan.\n(G) a description of the effects of the proposed actions and investments\nin the portfolio on the safety, reliability, and resilience of the utility's\ngas service.\n(II) For each portfolio presented, the utility shall provide and shall quantify, as\npracticable, on a clean heat resource category basis:\n(A) the annual and total cost for each clean heat resource category;\n\n(B) identification of any additional air quality, environmental, and health\nbenefits of each clean heat resource category in addition to the\ngreenhouse gas emission reductions;\n(C) the proportion of projects or programs that benefit\ndisproportionately impacted communities, or customers who meet\nthe requirements for income-qualified programs;\n(D) a reasonable estimate of the labor costs associated with\ndevelopment of the clean heat resources in each category that\nreflect compliance with all applicable labor standards set forth in §\n40-3.2-105.5, C.R.S., net of avoided capital infrastructure costs;\nand\n(F) an explanation of whether the portfolio incorporates projects\naddressed by § 40-3.2-108(8)(d), C.R.S., and how it satisfies the\nlabor standards under § 40-3.2-105.5, C.R.S., to the extent\napplicable. The utility shall also develop and provide an estimate of\nthe number of gas distribution jobs that may be affected by each\nclean heat plan portfolio and the pay and benefit levels of those\njobs.\n(e) Green hydrogen.\n(I) If one or more proposed portfolios include green hydrogen as a clean heat\nresource, the utility shall present an analysis demonstrating its distribution\nsystem can safely carry the expected concentrations and volumes of\nhydrogen, including the age and material of pipe, fittings, and other\nrelevant infrastructure, in the locations of the system where the green\nhydrogen is intended to be introduced and transported. The utility should\nalso present a plan to monitor and verify the impact of injecting and\ntransporting hydrogen over time to ensure the continued safety and\nreliability of the system.\n(f) Project-based information.\n(I) It is the Commission’s policy that utilities should acquire clean heat\nresources in the most cost-effective manner. To this end, the utility shall\nuse competitive solicitations to the maximum extent practical.\n(A) If a utility’s clean heat plan includes the purchase or development\nof green hydrogen, the utility must include the gross quantity of\ngreen hydrogen transported by a common carrier or dedicated\npipeline on an annual basis and the corresponding Btu content.\n(B) With the exception of a green hydrogen project proposed in\ncoordination with the State of Colorado, to secure benefits under a\nfederal law, or as part of a State of Colorado application for a\n\nhydrogen hub, a proposal for a green hydrogen project shall include\na competitive solicitation proposal, which shall include, at minimum,\nthe following information:\n(1) a copy of the request for proposals to be offered in the\ncompetitive solicitation;\n(2) an explanation of required milestones and development-\nrelated penalties;\n(3) the timing of the competitive solicitation and review and\nnegotiation processes;\n(4) a copy of the proposed contract to be signed by the utility\nand any third-party entity;\n(5) the utility’s standards for interconnection, including purity\nstandards and metering methods; and\n(6) an explanation of how Best Value Employment metrics, as\ndefined in paragraph 4211(a), will be evaluated in the utility’s\nreview of bids.\n(II) For all proposed projects, the utility shall identify any developer or\noperator, if not the utility, and any customers on whose property the\ninvestment will be placed.\n(III) The utility shall provide a map of disproportionately impacted communities\nlocated within the utility’s service territory. The map must show the\nlocation of any anticipated green hydrogen or recovered methane projects\nand identify any portions of the project that are located in\ndisproportionately impacted communities.\n(g) Cost recovery proposals.\n(I) The utility may propose a rate adjustment clause or structure that provides\nfor recovery of the utility’s clean heat plan costs, or any costs incurred to\nmeet additional emission reduction requirements under § 25-7-\n105(1)(e)(X.7), C.R.S.\n\n(II) The utility shall identify any potential changes to depreciation schedules or\nother actions to align the utility’s cost recovery with statewide policy goals,\nincluding reducing greenhouse gas emissions, minimizing costs, and\nminimizing risks to customers.","truncated":false,"body_characters":9681}