Bill Summary – FastDemocracy

ENROLLED ORIGINAL

                                            AN ACT

                                      _________________

                   IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

                            ________________________________

To amend the Clean and Affordable Energy Act of 2008 to create the Breathe Easy Program

      within the Department of Energy and the Environment to provide residential

      electrification retrofits for low-income and moderate-income households; to amend the

      Green Building Act of 2006 to exempt the value of improvements made through the

      Breathe Easy Program from the definition of substantial improvement for the purposes of

      the Green Building Act of 2006, and to provide that the Green Building Advisory

      Council shall advise the Mayor on implementation of the Breathe Easy Program; to

      amend the Retail Competition and Consumer Protection Act of 1999 to exempt

      subscribers of projects created through the Solar For All Program from limits on offsets

      to costs of electricity consumption; and to amend section 47-1803.02 of the District of

      Columbia Official Code to provide that the value of benefits received through the Breathe

      Easy Program shall not be subject to District income tax.

       BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this

act may be cited as the “Healthy Homes and Residential Electrification Amendment Act of

2024”.

        Sec. 2. The Clean and Affordable Energy Act of 2008, effective October 22, 2008 (D.C.

Law 17-250; D.C. Official Code § 8-1773.01 et seq.), is amended by adding a new section 217 to

read as follows:

        “Sec. 217. Breathe Easy Program established.

        “(a)(1) There is established the Breathe Easy Program (“Program”) within DOEE that:

                         “(A) Shall provide residential electrification retrofits to low-income

District households, including households in multi-unit residential buildings where at least 50%

of the occupied housing units are occupied by low-income households at the time of income

verification;

                         “(B) May provide residential electrification retrofits to moderate-income

District households; and

                         “(C) Shall provide training and education to contractors that provide

residential electrification retrofits through the Program.

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                 “(2) The Program shall provide residential electrification retrofits at no cost to

low-income households, including households in multi-unit residential buildings where at least

50% of the units are occupied by low-income households in accordance with the following

timeline:

                         “(A) 2,500 shall be completed by December 31, 2027;

                         “(B) 10,000 shall be completed by December 31, 2032;

                         “(C) 20,000 shall be completed by December 31, 2037; and

                         “(D) 30,000 shall be completed by December 31, 2040.

                 “(3) The Program may provide residential electrification retrofits to moderate-

income households, subsidized in accordance with the sliding scale published pursuant to

subsection (b)(6) of this section; provided, that residential electrification retrofits made pursuant

to this paragraph shall not be counted towards the requirements of paragraph (2) of this

subsection.

                 “(4) DOEE shall partner with nonprofit organizations to provide training and

education related to the provision of residential electrification retrofits for businesses and

individuals in accordance with the recommendations published pursuant to subsection (b)(7) of

this section.

         “(b) By September 30, 2024, DOEE shall publish on its website and submit to the

Council a plan to administer the Program, which shall include:

                 “(1) A description of how residential electrification retrofits will be completed;

                 “(2) If DOEE proposes to partner with private contractors to make residential

electrification retrofits, a description of how DOEE will maximize participation of District

residents and businesses that are eligible to be certified as equity impact enterprises;

                 “(3) Eligibility criteria for:

                         “(A) Low-income and moderate-income households to receive a

residential electrification retrofit through the Program, including a process for income

verification;

                         “(B) Multi-unit residential buildings to receive a residential retrofit

through the Program, including a process for certifying that at least 50% of units are occupied by

low-income households; and

                         “(C) Private contractors to provide residential electrification retrofits

through the Program;

                 “(4) A description of allowable appliances, methods, materials, and technology to

be used in residential electrification retrofits;

                 “(5) Strategies for:

                         “(A) Prioritizing residential electrification retrofits for households with the

lowest household incomes; and

                         “(B) Identifying and prioritizing low-income households that can receive

residential electrification retrofits most cost-effectively, including by combining electrification

retrofits with other services provided or subsidized by DOEE or other District agencies;

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                 “(6) A sliding scale to be used when subsidizing the cost of providing residential

electrification retrofits to moderate-income households;

                 “(7) Recommendations to eliminate or reduce the cost to businesses and

individuals of providing training pursuant to subsection (a)(4) of this section in order to

maximize:

                         “(A) Participation in the Program of businesses that are eligible

to be certified as equity impact enterprises; and

                         “(B) Employment of District residents by businesses participating in the

Program;

                 “(8) The estimated number of low-income and moderate-income households that

will receive residential electrification retrofits in each year of the Program;

                 “(9) A description of how DOEE will coordinate with the Green Building

Advisory Council; and

                 “(10) An explanation of how DOEE will provide a written estimate or explanation

to each Program recipient that explains the estimated difference in annual energy costs between

electrification and the recipient’s current energy source.

         “(c) Beginning on January 1, 2025, and annually thereafter, DOEE shall publish on its

website and submit to the Council a report on progress toward meeting the requirements of

subsection (a)(1) and (2) of this section, including the number of residential electrification

retrofits completed in each calendar year of the Program’s operation and the number of

residential electrification retrofits planned to be completed in the following calendar year.

         “(d) Participation in the Program shall not preclude a person from receiving other

improvements provided by DOEE or another District agency.

         “(e)(1) The Mayor, pursuant to Title I of the District of Columbia Administrative

Procedure Act, approved October 21, 1968 (82 Stat. 1204; D.C. Official Code § 2-501 et seq.),

may issue rules to implement the provisions of this section. The proposed rules shall be

submitted to the Council for a 45-day period of review, excluding Saturdays, Sundays, legal

holidays, and days of Council recess. If the Council does not approve or disapprove the proposed

rules, in whole or in part, by resolution within the 45-day review period, the proposed rules shall

be deemed approved.

                 “(2) The rules issued pursuant to paragraph (1) of this subsection may include

rules to preserve the affordability of homes that receive residential electrification retrofits under

this section.

         “(f) For purposes of this section, the term:

                 “(1) “Equity impact enterprise” shall have the same meaning as provided in

section 2302(8A) of the Small, Local, and Disadvantaged Business Enterprise Development and

Assistance Act of 2005, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code § 2-

218.02(8A)).

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               “(2) “Low-income household” means a household with a total income less than

80% of the median family income for the metropolitan area that includes the District, as

published by the U.S. Department of Housing and Urban Development.

               “(3) “Moderate-income household” means a household with a total income

equal to or greater than 80% but less than 150% of the median family income for the

metropolitan area that includes the District, as published by the U.S. Department of Housing and

Urban Development.

               “(4) “Residential electrification retrofit” means replacement of all appliances or

other systems, such as an oven, water heater, or heating system, that combust fossil fuels on site

with appliances or other systems that perform the same function and that are powered

exclusively by electricity.”.

        Sec. 3. The Green Building Act of 2006, effective March 8, 2007 (D.C. Law 16-234;

D.C. Official Code § 6-1451.01 et seq.), is amended as follows:

        (a) Section 2(40) (D.C. Official Code § 6-1451.01(40)) is amended by striking the phrase

“improvement of a building or structure, the cost of which equals or exceeds 50% of the market

value of the structure” and inserting the phrase “improvement of a building or structure,

excluding repairs, alterations, additions, or improvements of a building structure made through

the Breathe Easy Program, established by section 217 of the Clean and Affordable Energy Act of

2008, passed on 2nd reading on May 7, 2024 (Enrolled version of Bill 25-119), the cost of which

equals or exceeds 50% of the market value of the structure” in its place.

        (b) Section 10 (D.C. Official Code § 6-1451.09) is amended as follows:

                (1) Subsection (c)(1) is amended as follows:

                        (A) The lead-in language is amended by striking the phrase “following 13

members” and inserting the phrase “following 15 members” in its place.

                        (B) Subparagraph (G) is amended by striking the phrase “One member”

and inserting the phrase “Two members” in its place.

                        (C) Subparagraph (H) is amended by striking the phrase “One member”

and inserting the phrase “Two members” in its place.

                (2) Subsection (d) is amended as follows:

                        (A) Paragraph (3) is amended by striking the phrase “; and” and inserting

a semicolon in its place.

                        (B) Paragraph (4) is amended by striking the period and inserting the

phrase “; and” in its place.

                        (C) A new paragraph (5) is added to read as follows:

                “(5) Equitable implementation of the requirements of the Breathe Easy Program,

established by section 217 of the Clean and Affordable Energy Act of 2008, passed on 2nd

reading on May 8, 2024 (Enrolled version of Bill 25-119).”.

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        Sec. 4. Section 118a(b) of the Retail Competition and Consumer Protection Act of 1999,

effective December 13, 2013 (D.C. Law 20-47; D.C. Official Code § 34–1518.01(b)), is

amended by striking the phrase “12 months.” and inserting the phrase “12 months; except, that

this subsection shall not apply to subscribers of a project constructed through the Solar for All

Program established by section 216 of the Clean and Affordable Energy Act of 2008, effective

October 8, 2016 (D.C. Law 21-154; D.C. Official Code § 8-1774.16).” in its place.

        Sec. 5. Section 47-1803.02(a)(2) of the District of Columbia Official Code is amended by

adding a new subparagraph (AAA) to read as follows:

                       “(AAA) Benefits provided through the Breathe Easy Program, established

by section 217 of the Clean and Affordable Energy Act of 2008, passed on 2nd reading on May

7, 2024 (Enrolled version of Bill 25-119).”.

       Sec. 6. Fiscal impact statement.

       The Council adopts the fiscal impact statement in the committee report as the fiscal

impact statement required by section 4a of the General Legislative Procedures Act of 1975,

approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a).

       Sec. 7. Effective date.

       This act shall take effect following approval by the Mayor (or in the event of veto by the

Mayor, action by the Council to override the veto), and a 30-day period of congressional review

as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December

24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)).

               ______________________________

               Chairman

               Council of the District of Columbia

_________________________________

Mayor

District of Columbia

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