HB2586

HB2586 – Authorizes public utilities to support shifting homes and buildings from fossil fuels to electricity if it’s in the public interest.
Prime Sponsor – Representative Ramel (D; 40th District; San Juan Islands & Anacortes)
Current status – Had a hearing inĀ  the House Committee on Environment and Energy January 27th. An amended substitute passed out of committee February 4th; referred to Rules. Failed to pass out of the House by cutoff.
Next step would be – Dead bill.
Legislative tracking page for the bill.
SB6496 is a companion bill in the Senate,

Comments –
Currently, these utilities can provide incentives or programs to support shifting if there’s a direct economic benefit for customers or for them.

The substitute bill drops the original’s list of things a utility “may consider” in a plan. Instead it requires a plan to identify options and program schedules for electrifying various end-uses or other energy sources, and it specifies that a utility must determine that the sum of the benefits of a plan equals or exceeds the sum of its costs. It lists some benefits that may be included and some costs that must be. (It also says the utility may “differentiate the level of benefits and costs accrued to highly impacted communities and vulnerable populations” in this process; perhaps that implies it might proceed with a plan for that set of customers even if benefits didn’t exceed costs for all of its customer base…) It also simplifies the definition of beneficial electrification, but as I read the change, it doesn’t have practical implications.

The amendments require a utility to request the input of any natural gas company with customers in its service area on the development of a beneficial electrification plan, and require the cost analysis for a plan to demonstrate that the electricity serving the increased load will have a lower greenhouse gas emissions profile than direct use, highly efficient, gas.

Summary –
This bill authorizes municipal utilities and PUDs to fund incentives and programs to shift homes and buildings from fossil fuels to electricity if they have developed a beneficial electrification plan that would provide a net benefit to the utility or customers by improving the management of the grid, reducing customer costs, reducing greenhouse gas emissions, improving air quality, or providing other public interest benefits.

Plans can include consideration of multiple options for electrifying various energy uses; the impact of beneficial electrification on the utility’s load and whether demand response or other load management opportunities are operationally appropriate; an assessment of conservation measures to offset load impacts; system reliability and distribution system efficiencies; potential greenhouse gas emission reductions; potential indoor and outdoor air quality benefits; and the overall benefits and costs of planned action, including the cost of greenhouse gas emissions calculated according to a Federal estimate which works out to $62/metric ton this year. Plans have to prioritize allocating benefits to vulnerable populations in their service areas.

Shift Zero has a flyer about the bill.