Colorado legislators in 2021 passed a suite of laws that in various ways give state agencies new marching orders that this energy transition will reconcile past wrongs and put people on an equal footing. But there’s a lot to sort through in this.
by Allen Best
Now comes the part where the rhetoric about a just transition of the energy economy — paying special attention to disproportionately impacted communities and rectifying past wrongs with the word “equity” in mind — gets tested in the field.
In late July and early August, the three members of the Colorado Public Utilities Commission will take turns hosting six meetings from Lamar to Grand Junction, places selectively chosen because of evidence of disproportionate impacts from energy.
The meetings serve a dual purpose. The commissioners are gathering thoughts about how the state’s four regulated gas-distribution utilities will start changing how we heat buildings and water in order to reduce emissions. They are required to submit what are called clean-heat plans.
The four gas utilities —Xcel Energy, Black Hills Energy, Atmos Energy, and Colorado Natural Gas — must show how they will be able to reduce greenhouse gas emissions 4% by 2025 and 22% by 2030, based on a 2015 baseline.
But the commissioners are also very deliberately meeting in cities that have been identified by mapping tools as having, or being proximate to, disproportionately impacted communities.
Get accustomed to hearing that phrase, now used so often it has been reduced to an acronym in many documents: DIC. Among other things, the commissioners want to better understand how to define equity (as distinct from equality) and what constitutes a DIC community.
It’s an early milestone in Colorado’s difficult and still new process, one parallel to others underway in several states around the country.
Pushing their investigation are five laws passed by Colorado legislators in 2021 that collectively seek to put the hands of those communities on the steering wheel in ways that they have not before.
SB 21-272, “Modernize the Public Utilities Commission,” tells the PUC that it must adopt rules that “consider how best to provide equity, minimize impacts, and prioritize benefits to disproportionately impacted communities and address historical inequalities.”
What are disproportionately impacted communities? This law provides a glimpse:
“Certain communities, both in Colorado and internationally, have historically been forced to bear a disproportionate burden of adverse human health or environmental effects, as documented in numerous studies, while also facing systemic exclusion from environmental decision-making processes and enjoying fewer environmental benefits,” says SB21-272.
The law cites a 2021 report from the Goldman School of Public Policy at the University of California, Berkeley. The project, called Mapping for Environmental Justice, attempted to paint a holistic picture of intersecting environmental, social, and health impacts in individual states, including Colorado.
The study found that “communities of color breathe nearly twice as much diesel pollution and are 1.5 times more likely to live near a Superfund site than white communities. The disparity holds across an array of environmental hazards: from wastewater releases to air toxins, Coloradoans of color are consistently exposed to more pollution.”
This same law, SB 21-272, instructs the PUC to “identify disproportionately impacted communities” and host meetings and in other ways invite input from them to ensure that they will have at least proportionate access to the benefits of retail customer programs, incentives and investments.”
The PUC must go through a rule-making process that governs how the PUC reviews plans by utilities —including not just energy utilities, but also transportation and other sectors it regulates.
The goal is to deliver equity – which will be defined later – in programs and incentives that serve low-income customers and disproportionately impacted communities.
The second law of relevance, SB 21-264, the “Clean Heat Bill,” requires Colorado’s four natural gas utilities to start figuring out how to reduce fossil fuel combustion from buildings. It gives the largest gas utilities, including Xcel, various ways to achieve a 22% reduction in emissions by 2030. They can, for example, help customers convert to electricity through use of air-source heat pumps. Utilities are required to submit clean-heat plans.
This clean-heat bill also has an environmental justice component. That law also calls out the “historic injustices that impact lower-income Coloradans and black, indigenous, and other people of color who have borne a disproportionate share of environmental risks while also enjoying fewer environmental benefits.”
As the PUC goes about creating the rules for evaluating clean-heat plans, it must hold at least two meetings in disproportionately impacted communities.
In planning six meetings, not just two, the PUC obviously aims for a robust compliance with the letter of the law. The PUC has gone a step beyond, and we’ll explain that later in this article.
Yet a third law, HB 21-1266, called the “Environmental Justice Act,” takes direct aim and, unlike the others, delivers more explicit instructions for the Air Quality Control Commission – an agency within the state’s health department – to engage with disproportionately impacted communities.
The law incorporates demographic factors but delegated to a new Environmental Justice Action Task Force the work of defining what exactly constitutes a disproportionately impacted community. The law also added transition to a more equitable clean energy economy to the mission of the Colorado Energy Office.
Two more laws deserve mention.
SB 21-246, Promote Beneficial Electrification, requires investor-owned utilities to file plans with the PUC that must include “programs targeted to low-income housing or disproportionately impacted communities with at least 20% of the total beneficial electrification program funding” directed to those communities and income levels.
HB21-1105 modified the eligibility standards for low-income programs
Why did all of this come together in 2021?
Ean Tafoya, of GreenLatinos, who is co-chair of the new task force, says the thinking had been growing for years of the need to “redress” inequities.
In 2019, the first year that Democrats gained a majority in both chambers, as well as the governor’s mansion, the legislators who might have carried the bills were too new to the General Assembly to be effective.
Then came the killing of George Floyd by a Minneapolis police officer in 2020, spurring national protests, including in Denver. This was just months after the covid pandemic descended, hitting minority populations harder.
Those things “helped to galvanize the creation of a more formidable environmental justice coalition,” says Tafoya. This pressure seems to have created “more political room for the politicians to move forward.”
Tafoya also says that this powerful new environmental justice coalition wouldn’t settle for legislation that in early drafts didn’t initially include equity provisions.
In this, he refers to major bills driven by Sen. Chris Hansen of Denver and two Boulder County legislators, Sen. Steve Fenberg and Rep. Tracey Bernett, as well as Rep. Alex Valdez and Rep. Meg Froehlich.
A bill that started out as SB 200 was recreated in SB 1266 with Faith Winter as a primary author. She did not respond to several requests for an interview.
The Environmental Justice Act is sweeping. It requires the Air Quality Control Commission to adopt rules to reduce greenhouse gas emissions from oil and gas operations. It also requires that commission to adopt rules to reduce emissions from the industrial and manufacturing sector in Colorado by at least 20% by 2030 relative to 2015 levels.
This is from Big Pivots 59 (July 17, 2022). Please consider subscribing.
Environmental justice, though, is front and center in the law. It requires the Air Quality Control Commission to promote outreach to disproportionately impacted communities by creating new ways to gather input from communities across Colorado, using multiple languages and multiple formats.
The law also created the task force of which Tafoya is a member with the responsibility to make recommendations to legislators of “practical means to address environmental justice inequities” by Nov. 14.
That task force has met four times beginning in December, and it also has five subcommittees that meet monthly.
Pueblo’s Jamie Valdez, who is also on the task force, describes it as a “very difficult process.” But the goal is to avoid compromising as has occurred in the past.
Members have received much testimony “that there has not been enough consideration or responsiveness to community and too much to industry,” he says.
The table has been tilted heavily to a discussion between industry and regulators, to the exclusion of others, says Valdez, who is paid staff and a community organizer for southern Colorado on behalf of Mothers Outfront, a mothers-funded environmental justice organization whose mission is to work for a livable climate for all children.
Equity and equitable
The Colorado Public Utilities Commission has also been moving along. The commission held a workshop in February to get insights from participants about how to implement the environmental justice component of HB21-264, the law that requires the meetings in disproportionately impacted communities. In March, the PUC asked the states’ four natural gas utilities – Xcel, Black Hills Energy, Atmos, and Colorado Natural Gas – to identify three ideas for meeting locations.
Xcel identified Grand Junction, metro Denver, and Pueblo. Black Hills identified Montrose, Rocky Ford, and Yuma. Atmos Energy identified Greeley, Lamar, and Craig.
The utilities were advised to consult a data-rich mapping tool created by the Colorado Department of Public Health and Environment called EnviroScreen. This was a result of the Environmental Justice Bill. When I first looked at this a year ago, I found it primitive. It showed the Wildridge neighborhood north of Avon and the Singletree neighborhood of Edwards to be in an environmentally impacted tract. (That all of us should be so unfortunate as to live in such areas.)
A review for this article shows a sophisticated tool, if still not complete. A tutorial explains it was created “to help identify the relative health burdens and environmental risks facing different communities across Colorado.”
On June 1, the PUC hosted a session on equity initiatives. Kelly Crandell, of the PUC staff, explained the SB 21-272 requirement to promulgate rules that seek to “provide equity and minimize impacts and prioritizes benefits to disproportionately impacted communities that have experienced historical inequalities.”
During the next few months, she said, the PUC commissioners and staff will be focusing on learning things that can be used to shape these new rules, the ones being drawn up to govern how the PUC evaluates plans by utilities.
Crandell carefully distinguished between equality and equity. With the equality, the idea is to provide something to everyone equally. So, your residential rates for electricity will be the same as your neighbors’.
Equity as Crandell explained it has a historical dimension. It recognizes that things may need to change so that others can participate, that actions of the past such as redlining must be acknowledged to properly rectify going forward.
“It’s challenging to an agency such as ours because conversations more traditionally operated in the vein of equality,” she said.
The legislation, she explained, had three dimensions: 1) recognize why certain communities have suffered, such as because of redlining practices; 2) procedural inequalities. How can the PUC make its process more accessible to the public; and 3) broadly prioritizing the benefits of new energy programs to disproportionately impacted communities.
Different sorts of meetings
Most interesting of these meetings may be at Montbello, located in northeastern Denver on the north side of I-70. It will use a new format of outreach.
There, community members will be paid to attend and share their thoughts. The meeting will be led by the Denver Office of Climate Action, Sustainability and Resiliency. That municipal agency has been hosting community meetings. In this case two community-based organizations have been enlisted to put it together.
“The event will include a listening session on energy priorities within these neighborhoods in addition to a discussion about clean heat plans,” the decision notice issued by the PUC on July 6 says. The event will be presented in both English and Spanish.
Ah yes – the clean heat plans. The natural gas utilities must figure out how to reduce emissions from buildings. A small bit of this can be accomplished by augmenting supplies of methane distributed to homes for heating and cooking with what is called renewable natural gas, such as that harvested from landfills. But there are many other tools – including beneficial electrification, including the use of air source heat pumps to displace or at least augment natural gas furnaces. They’re still relatively expensive, though, with a payback that in most cases will take at least several years.
Tafoya observes that focus groups have already found that tax credits won’t work for lower-income residents. “It’s clear that people want down-payment assistance, not just tax credits.”
Colorado is far from alone in trying to look at utility decisions through the new lenses of equity. A report called “Advancing Equity in Utility Regulation” issued in November 2021 by Berkeley National Laboratory notes an effort in California in 2020 requiring “environmental justice” to be part of the state’s mission. New York and Washington also adopted legislation in 2019, the latter state charging the utilities commission with “ensuring that all customers are benefiting from the transition to clean energy.”
In 2021, Massachusetts, Oregon, Illinois, and Maine all passed somewhat parallel legislation along with Colorado.
Also worth checking out:
Colorado Department of Public Health & Environment Environmental Justice page
Colorado Public Utilities Commission Equity Initiatives page
July 21: Greeley, Greeley Recreation Center, 11:30 a.m. to 1 p.m.
July 21: Denver, Montebello Recreation Center, 5-7:30 p.m.
July 27: Grand Junction, Colorado Mesa University Center, 11:30 a.m.-1 p.m.
July 28: Montrose, Montrose Event Center, 11:30 a.m.-1 p.m.
Aug. 4: Pueblo, Bessemer Community Room at Steelworks Center for the West, 11:30 a.m.-1 p.m.
Aug. 4: Lamar Cultural Events Center, 4:30-6 p.m.
The 5 bills:
SB21-272 “Measures to Modernize the Public Utilities Commission.” Requires PUC to identify disproportionately impacted communities (DICs) and to reach out to let them help create new rules.
SB 21-264, “Clean Heat Bill.” Requires natural gas utilities to begin decarbonizing gas distributed to buildings. Requires PUC to hold at least two meetings in DICs.
HB 21-1266 “Environmental Justice Act.” Instructions specifically to Air Quality Control Commission.
SB 21-246, “Promote Beneficial Electrification.” Requires 20% of program funds be used for low-income households or disproportionately impacted communities.
HB21-1105, modifies eligibility standards for low-income programs.