Clean Energy DC Omnibus Act - Legislative Summary

Title I. 100% Green Electricity

• DC’s electricity will come from 100% renewable sources by 2032. Previously, DC’s Renewable Portfolio Standard (RPS) required 50% green electricity by 2032.
• The definition of what qualifies as renewable energy is strengthened to add additional renewable energy capacity in DC’s electric transmission area.
• The mission statement of the Public Service Commission, which regulates utilities in DC, is amended to include “the preservation of environmental quality, including effects on global climate change and the District’s public climate commitments.”
• This section of the bill will reduce DC's greenhouse gas emissions by 1.6 million metric tons annually, or 18.4% of DC’s total carbon pollution.

Title II. Energy Efficiency

• DC’s Sustainable Energy Trust Fund (SETF), an existing fee on electric and gas utility bills that funds energy efficiency programs, is increased for dirty fossil fuels like coal and gas. For the first time, the SETF fee is also assessed on heating and fuel oil. The additional revenue will be used to expand renewable energy and energy efficiency programs.
• Of the additional SETF revenue, at least 30% must go to programs to benefit low-income residents, such as energy bill assistance, weatherization, and efficiency upgrades to residential buildings.
• SETF revenue will also provide $70 million over six years to DC’s Green Bank, which will finance projects to expand solar power, improve building energy efficiency, lower energy costs, create green jobs and reduce greenhouse gas emissions.
• Starting in 2022 the SETF will fund energy efficiency upgrades for buildings that provide affordable housing or are rent-controlled.
• Electric and gas utilities may apply to the Public Service Commission to offer energy efficiency and demand reduction programs, which must have performance indicators and projections of costs and energy savings.


Title III. Building Energy Performance Standards

• DC will establish mandatory building energy efficiency standards that increase over time, applying to all privately-owned buildings of 50,000 square feet or more starting in 2021 and to all privately-owned buildings of 10,000 square feet or more by 2026.
• Buildings not in compliance will have five years to meet the standards, after which they could be subject to fines and penalties. Buildings that demonstrate financial or other hardships will have an additional three years to comply.
• The Green Bank and other programs funded by the SETF fee will provide building owners with financial assistance to make necessary energy efficiency upgrades.
• DC must establish a program to retrofit at least 9% of DC government-owned buildings to reduce energy use by 30% by 2024 and retrofit at least 12.5% of DC government-owned buildings to achieve net-zero energy use by 2032.
• This section of the bill will reduce DC's greenhouse gas emissions 939,000 metric tons annually, or 10.7% of DC’s total carbon pollution.

Title IV. Local Businesses & Sustainable Energy

• DC will establish the Sustainable Energy Infrastructure Capacity Building and Pipeline Program to help train local businesses to compete for the energy efficiency and renewable energy business opportunities resulting from new requirements in the law.

Title V. Transportation Emissions Reductions

• The vehicle excise tax will be tied to fuel efficiency, with more polluting vehicles paying a higher tax and less polluting vehicles paying a lower tax. Electric vehicles will be exempt from the excise tax.
• Public buses, taxis, and privately-owned vehicle fleets that carry more than 50 people must transition to zero-emission vehicles. Half of those vehicles will have to be electric by 2030, with the percentage increasing every five years until hitting 100% in 2045.
• DC must plan to stop buying fossil fuel-burning transit and school buses by 2021, with all buses purchased after 2021 powered by electricity.
• DC is authorized to join regional efforts to limit greenhouse gas emissions from the transportation sector.
• The vehicle excise tax changes will reduce DC's greenhouse gas emissions 76,500 metric tons annually, or 1% of DC’s total carbon pollution. Other provisions of this section have not been analyzed for greenhouse gas reductions.