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Bill Detail: SB20-150

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Title Adopt Renewable Natural Gas Standard
Status Senate Committee on Appropriations Refer Amended to Senate Committee of the Whole (02/25/2020)
Bill Subjects
  • Energy
House Sponsors
Senate Sponsors C. Hansen (D)
House Committee
Senate Committee Transportation and Energy
Date Introduced 01/28/2020
Description

The bill requires the public utilities commission to adopt by rule,
no later than July 31, 2021, renewable natural gas programs for large
natural gas utilities (those that have at least 200,000 customer accounts
in Colorado) and small natural gas utilities (those that have fewer than
200,000 customer accounts in Colorado). The rules must include
reporting requirements and a process for natural gas utilities to fully
recover prudently incurred costs associated with the large and small
renewable natural gas programs.

Renewable natural gas is defined to mean any of the following
products processed to meet pipeline quality standards or transportation
fuel-grade requirements:
  • Biogas that is blended with, or substituted for, geologic
natural gas;
  • Hydrogen gas derived from renewable energy sources; or
  • Methane gas derived from any combination of biogas;
hydrogen gas or carbon oxides derived from renewable
energy sources; waste carbon dioxide; coalbed methane
resulting from human activity; naturally occurring coalbed
deposits; a municipal solid waste landfill; waste tire or
municipal solid waste pyrolysis; or biogas recovery from
manure management systems and anaerobic digesters.
If a large natural gas utility's total incremental annual cost to meet
the targets of the large renewable natural gas program exceeds 5% of the
large natural gas utility's total revenue requirement for a particular year,
the large natural gas utility shall not make additional qualified
investments under the large renewable natural gas program for that year
without approval from the commission. The bill establishes the following
portfolio targets for the percentage of gas purchased by large natural gas
utilities that is renewable natural gas:
  • By January 1, 2025, at least 5% must be renewable natural
gas;
  • By January 1, 2030, at least 10% must be renewable natural
gas; and
  • On and after January 1, 2035, at least 15% must be
renewable natural gas.
Small natural gas utilities may opt in to the small renewable
natural gas program as established by the commission by rule. The rule
must include a rate cap limiting the small natural gas utility's costs of
procuring renewable natural gas from third parties and qualified
investments in renewable natural gas infrastructure.

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Fiscal Notes Fiscal Notes (02/10/2020) (most recent)  
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