Colorado 2022 Regular Session

Colorado House Bill HB1159 Latest Draft

Bill / Enrolled Version Filed 05/26/2022

                            HOUSE BILL 22-1159
BY REPRESENTATIVE(S) Cutter, Amabile, Bacon, Bernett, Bird,
Boesenecker, Caraveo, Duran, Exum, Froelich, Hooton, Kennedy, Kipp,
Lindsay, Lontine, McCluskie, McCormick, McLachlan, Ricks, Sirota,
Titone, Valdez A., Weissman, Woodrow;
also SENATOR(S) Priola and Winter, Jaquez Lewis, Lee, Moreno, Story,
Fenberg.
C
ONCERNING WASTE DIVERSION , AND, IN CONNECTION THEREWITH ,
CREATING THE CIRCULAR ECONOMY DEVELOPMENT CENTER IN THE
DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT
, ESTABLISHING
THE COSTS OF OPERATING THE CENTER AS A PERMISSIBLE USE OF
MONEY FROM THE FRONT RANGE WASTE DIVERSION CASH FUND AND
THE RECYCLING RESOURCES ECONOMIC OPPORTUNITY FUND
, AND
EXTENDING AND REMOVING CERTAIN REPEAL DATES ASSOCIATED
WITH EXISTING STATUTORY WASTE DIVERSION EFFORTS
.
 
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1.  Legislative declaration. (1)  The general assembly
finds that:
(a)  The recycling, remanufacturing, and reuse industry affects
NOTE:  This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. 86,000 jobs in Colorado, which is 2.7% of the state's overall employment;
(b)  In 2020, recycling in Colorado reduced greenhouse gas
emissions by more than 1,900,000 metric tons of carbon dioxide equivalent,
which is equal to removing more than 400,000 cars from our roads
annually. Recycling also saved more than 13,590,000 BTUs of energy,
which is equal to conserving the annual energy use of more than 148,000
Colorado households.
(c)  The recycling, remanufacturing, and reuse industry accounts for
3.1% of the state's gross state product;
(d)  Recovering and recycling materials provides bottom-line
benefits to Colorado in terms of people, the planet, and profits; and
(e)  Despite such benefits, the state's waste diversion rate has
stagnated at around 15%, which is well below the 2021 state goal of
achieving a 28% waste diversion rate.
(2)  The general assembly also finds that:
(a)  There is no singular solution to increasing diversion;
(b)  For Colorado to reach its goals, actions must be taken to improve
both the supply of materials collected and the demand for those recovered
materials; and
(c)  By growing existing regional markets or creating new end
markets for recycled commodities and compost, Colorado has the potential
to shift the demand curve.
(3)  The general assembly therefore declares that a circular economy
development center focused on growing existing markets and creating new
end markets for recycled commodities and compost in Colorado can
increase demand for recycled materials, moving Colorado closer to its waste
diversion and sustainability goals.
SECTION 2. In Colorado Revised Statutes, add part 6 to article 17
of title 25 as follows:
PAGE 2-HOUSE BILL 22-1159 PART 6
CIRCULAR ECONOMY DEVELOPMENT CENTER
25-17-601.  Definitions. A
S USED IN THIS PART 6, UNLESS THE
CONTEXT OTHERWISE REQUIRES
:
(1)  "A
DMINISTRATOR" MEANS THE THIRD-PARTY ADMINISTRATOR
WITH WHICH THE DEPARTMENT CONTRACTS PURSUANT TO SECTION
25-17-602 (2).
(2)  "C
IRCULAR ECONOMY" MEANS AN ECONOMY THAT USES A
SYSTEMS
-FOCUSED APPROACH AND INVOLVES INDUSTRIAL PROCESSES AND
ECONOMIC ACTIVITIES THAT
:
(a)  A
RE RESTORATIVE OR REGENERATIVE BY DESIGN ;
(b)  E
NABLE RESOURCES USED IN INDUSTRIAL PROCESSES AND
ECONOMIC ACTIVITIES TO MAINTAIN THEIR HIGHEST VALUES FOR AS LONG AS
POSSIBLE
; AND
(c)  AIM TO ELIMINATE WASTE THROUGH THE SUPERIOR DESIGN OF
MATERIALS
, PRODUCTS, AND SYSTEMS, INCLUDING BUSINESS MODELS.
(3)  "C
IRCULAR ECONOMY DEVELOPMENT CENTER " OR "CENTER"
MEANS THE CIRCULAR ECONOMY DEVELOPMENT CENTER CREATED IN
SECTION 
25-17-602.
(4)  "D
EPARTMENT" MEANS THE DEPARTMENT OF PUBLIC HEALTH
AND ENVIRONMENT CREATED IN SECTION 
24-1-119.
(5)  "E
ND MARKET BUSINESS" MEANS A BUSINESS, OR A PORTION OF
A BUSINESS
, THAT PROCESSES OR REUSES RECYCLABLE MATERIAL .
(6)  "E
XECUTIVE DIRECTOR" MEANS THE EXECUTIVE DIRECTOR OF
THE DEPARTMENT OR THE EXECUTIVE DIRECTOR
'S DESIGNEE.
25-17-602.  Circular economy development center - creation -
administration - reports - repeal. (1)  Creation. T
HE CIRCULAR ECONOMY
DEVELOPMENT CENTER IS HEREBY CREATED IN THE DEPARTMENT
. THE
PURPOSE OF THE CENTER IS TO GROW EXISTING MARKETS
, CREATE NEW
PAGE 3-HOUSE BILL 22-1159 MARKETS, AND PROVIDE NECESSARY INFRASTRUCTURE , SYSTEMS, LOGISTICS,
AND MARKETING TO CREATE A SUSTAINABLE CIRCULAR ECONOMY FOR
RECYCLED COMMODITIES AND COMPOST IN 
COLORADO. THE PRIMARY
ACTIVITIES OF THE CENTER ARE
:
(a)  C
ONNECTING END MARKETS TO EXISTING STATE GRANTS AND
INCENTIVES
;
(b)  W
ORKING WITH PROCESSORS AND MANUFACTURERS IN THE STATE
TO INCREASE THE USE OF RECYCLED CONTENT INPUTS
;
(c)  S
UPPORTING WASTE REDUCTION AND REUSE WITHIN SYSTEMS
THAT ADVANCE CIRCULARITY GOALS
;
(d)  M
ARKETING COLORADO RECYCLED MATERIALS AND RECRUITING
OUT
-OF-STATE RECYCLING END MARKETS , INCLUDING MANUFACTURERS , TO
COLORADO;
(e)  F
ACILITATING CONNECTIONS AMONG RECYCLERS , WASTE
HAULERS
, PROCESSORS, MANUFACTURERS, TRANSPORTERS, MUNICIPALITIES,
INVESTORS, HIGHER EDUCATION, AND OTHER ENTITIES;
(f)  S
UPPORTING END-MARKET-RELATED BUSINESSES AS THOSE
BUSINESSES LOOK TO SCALE OR GROW
; AND
(g)  EVALUATING COLORADO'S RECYCLING END MARKETS AND
SUPPLY CHAINS
.
(2)  Administration. (a)  O
N OR BEFORE JULY 1, 2023, SUBJECT TO
AVAILABLE APPROPRIATIONS
, THE DEPARTMENT SHALL CONTRACT WITH A
THIRD
-PARTY ADMINISTRATOR TO OPERATE THE CENTER .
(b)  I
N SOLICITING FOR A THIRD-PARTY ADMINISTRATOR OF THE
CENTER
, THE DEPARTMENT SHALL REQUIRE APPLICANTS TO SUBMIT A
PROPOSED WORK PLAN FOR THE CENTER
, WHICH WORK PLAN, AT A MINIMUM,
OUTLINES GOALS, STRATEGIES, ACTIVITIES, DELIVERABLES, AND EXPECTED
OUTCOMES
.
(c)  T
HE ADMINISTRATOR SHALL UPDATE THE WORK PLAN DESCRIBED
IN SUBSECTION
 (2)(b) OF THIS SECTION ANNUALLY, AND THE DEPARTMENT
PAGE 4-HOUSE BILL 22-1159 SHALL APPROVE OR DISAPPROVE THE WORK PLAN . IN SUBMITTING AN
UPDATED WORK PLAN PURSUANT TO THIS SUBSECTION
 (2)(c), THE
ADMINISTRATOR SHALL INCLUDE IN THE UPDATED WORK PLAN
RECOMMENDED ACTIONS FOR DEVELOPING MARKETS FOR COMMODITIES
COMPRISING A SIGNIFICANT PERCENTAGE OF THE WASTE STREAM AND
HAVING POTENTIAL FOR USE AS AN INDUSTRIAL OR COMMERCIAL
FEEDSTOCK
.
(d)  I
N ADMINISTERING THE CENTER, THE ADMINISTRATOR:
(I)  S
HALL SEEK AND CONSIDER THE INPUT OF:
(A)  T
HE DEPARTMENT;
(B)  T
HE OFFICE OF ECONOMIC DEVELOPMENT CREATED IN SECTION
24-48.5-101;
(C)  R
EPRESENTATIVES FROM THE PUBLIC AND PRIVATE SECTORS
ENGAGED IN WASTE DIVERSION OR ECONOMIC DEVELOPMENT ACTIVITIES ON
THE WESTERN SLOPE
, IN THE MOUNTAINS, ON THE FRONT RANGE, AND IN
EASTERN AND SOUTHEASTERN 
COLORADO; AND
(D)  TO THE EXTENT PRACTICABLE, REPRESENTATIVES OF NONPROFIT
ORGANIZATIONS AND INSTITUTIONS OF HIGHER EDUCATION
; AND
(II)  MAY SEEK AND SOLICIT ON BEHALF OF THE CENTER GIFTS ,
GRANTS, AND DONATIONS TO PAY FOR THE FUNCTIONS OF THE CENTER , AS
DESCRIBED IN SUBSECTION 
(6) OF THIS SECTION.
(3)  Web page. T
HE CENTER SHALL MAINTAIN A PUBLIC WEB PAGE .
(4)  Reports. (a) (I)  T
HE CENTER SHALL CONDUCT A STATEWIDE
END
-MARKET GAP ANALYSIS AND OPPORTUNITY ASSESSMENT AND SUBMIT
A FINAL REPORT OF THE ANALYSIS AND ASSESSMENT TO THE DEPARTMENT
BY 
AUGUST 1, 2024.
(II)  T
HIS SUBSECTION (4)(a) IS REPEALED, EFFECTIVE JULY 1, 2025.
(b) (I)  B
EGINNING SEPTEMBER 1, 2023, AND ON OR BEFORE EACH
SEPTEMBER 1 THEREAFTER, THE CENTER SHALL SUBMIT A REPORT TO THE
PAGE 5-HOUSE BILL 22-1159 DEPARTMENT DESCRIBING THE PROGRESS OF THE CENTER . THE REPORT MUST
INCLUDE THE FOLLOWING INFORMATION FROM THE PRECEDING STATE FISCAL
YEAR
:
(A)  A
 SUMMARY OF ACTIVITIES COMPLETED BY THE CENTER ;
(B)  T
HE RESULTS ACHIEVED AND PROGRESS MADE BY THE CENTER
ON ITS APPROVED WORK PLAN AND PROGRESS IN ACHIEVING ITS OBJECTIVE
OF COMPLETING CIRCULAR ECONOMIES FOR MATERIALS IN THE STATE
; AND
(C)  A SUMMARY OF ACTIVITIES AND OPPORTUNITIES THAT THE
CENTER PLANS TO ADDRESS IN THE FUTURE
.
(II)  T
HE DEPARTMENT SHALL INCLUDE THE REPORT DESCRIBED IN
SUBSECTION
 (4)(b)(I) OF THIS SECTION IN ITS ANNUAL PRESENTATION TO THE
GENERAL ASSEMBLY PURSUANT TO THE 
"STATE MEASUREMENT FOR
ACCOUNTABLE, RESPONSIVE, AND TRANSPARENT (SMART) GOVERNMENT
ACT", PART 2 OF ARTICLE 7 OF TITLE 2.
(5)  Costs. T
HE DIRECT AND INDIRECT COSTS ASSOCIATED WITH THE
DEPARTMENT
'S OVERSIGHT AND THE ADMINISTRATOR 'S OPERATION OF THE
CENTER SHALL BE PAID BY MONEY APPROPRIATED TO THE DEPARTMENT
FROM
:
(a)  T
HE FRONT RANGE WASTE DIVERSION CASH FUND , PURSUANT TO
SECTION 
25-16.5-111 (4)(b)(V); AND
(b)  THE RECYCLING RESOURCES ECONOMIC OPPORTUNITY FUND ,
PURSUANT TO SECTION 25-16.5-106.5 (2)(c).
(6)  Gifts, grants, and donations. T
HE CENTER MAY SEEK, SOLICIT,
ACCEPT, AND EXPEND GIFTS, GRANTS, AND DONATIONS FROM PUBLIC AND
PRIVATE SOURCES FOR THE PURPOSES OF THIS PART 
6.
25-17-603.  Repeal of part. T
HIS PART 6 IS REPEALED, EFFECTIVE
SEPTEMBER 1, 2030. BEFORE THE REPEAL, THE FUNCTIONS OF THE CENTER
ARE SCHEDULED FOR REVIEW IN ACCORDANCE WITH SECTION 
24-34-104.
SECTION 3. In Colorado Revised Statutes, 25-16.5-111, amend
(3)(c)(V), (4)(b)(III), and (6)(e)(II); repeal (6)(c)(II); and add (3)(c)(VII)
PAGE 6-HOUSE BILL 22-1159 and (4)(b)(V) as follows:
25-16.5-111.  Front range waste diversion enterprise - legislative
declaration - fund - goals - grant program - personal property tax
reimbursements - gifts, grants, or donations - definitions - repeal.
(3)  Enterprise. (c)  The enterprise's primary powers and duties are to:
(V)  Adopt, amend, or repeal policies for the regulation of its affairs
and the conduct of its business consistent with this section, including
establishing application, review, approval, reporting, and other requirements
for grants; and
(VII)  IN COORDINATION WITH THE DEPARTMENT , PAY THE DIRECT
AND INDIRECT COSTS ASSOCIATED WITH THE DEPARTMENT
'S OVERSIGHT AND
THE ADMINISTRATOR
'S OPERATION OF THE CIRCULAR ECONOMY
DEVELOPMENT CENTER CREATED IN SECTION 
25-17-602.
(4)  Fund. (b)  Money in the fund is continuously appropriated to the
enterprise to:
(III)  Provide technical assistance to eligible entities to promote
diversion, including through the development and implementation of policy;
and
(V)  PAY THE DIRECT AND INDIRECT COSTS ASSOCIATED WITH THE
DEPARTMENT
'S OVERSIGHT AND THE ADMINISTRATOR 'S OPERATION OF THE
CIRCULAR ECONOMY DEVELOPMENT CENTER CREATED IN SECTION
25-17-602.
(6)  Grant program. (c) (II)  The policies and procedures specified
by the board must include the following limitations for grant applicants that
are either a waste hauler or a landfill owner or operator, which the board
shall apply only to the portions of an application that relate to infrastructure
or equipment:
(A)  Only fifty percent of infrastructure or equipment can be funded
through the grant program;
(B)  If the board awards a grant to a waste hauler or landfill owner
or operator for infrastructure or equipment, the grantee is ineligible to
PAGE 7-HOUSE BILL 22-1159 receive a grant for the following five years.
(e)  The board shall:
(II)  Not allocate more than twenty FIFTY percent of the annual fund
revenue in any single grant award;
SECTION 4. In Colorado Revised Statutes, 25-16.5-106.5, amend
(2) as follows:
25-16.5-106.5.  Recycling resources economic opportunity fund
- creation - repeal. (2)  The money generated pursuant to subsection (1) of
this section shall be IS annually appropriated to the department:
(a)  For the purpose of funding the recycling resources economic
opportunity activities authorized by section 25-16.5-106.7, as well as any
administrative costs associated therewith, including the grants authorized
to be made under section 25-16.5-106.7 (3) and grant program oversight
authorized by section 25-16.5-105.5 (3); and
(b)  To fund studies pursuant to sections 25-16.5-105 (1)(i),
25-16.5-112 (2), and 25-16.5-113 
AND to make reimbursements pursuant to
section 25-16.5-106.7 (6.5); and to finance the statewide campaigndescribed in section 25-17-108.
(c)  TO PAY UP TO FORTY PERCENT OF THE DIRECT AND INDIRECT
COSTS ASSOCIATED WITH THE DEPARTMENT
'S OVERSIGHT AND THE
ADMINISTRATOR
'S OPERATION OF THE CIRCULAR ECONOMY DEVELOPMENT
CENTER CREATED IN SECTION 
25-17-602.
SECTION 5. In Colorado Revised Statutes, 25-16-104.5, repeal
(3.9)(c)(VII) and (6); and add (3.9)(d) as follows:
25-16-104.5.  Solid waste user fee - imposed - rate - legislative
declaration - repeal. (3.9) (c) (VII)  This subsection (3.9)(c) is repealed,
effective September 1, 2029.
(d)  THIS SUBSECTION (3.9) IS REPEALED, EFFECTIVE SEPTEMBER 1,
2030.
PAGE 8-HOUSE BILL 22-1159 (6)  This section is repealed, effective July 1, 2026.
SECTION 6. In Colorado Revised Statutes, 24-34-104, add
(31)(a)(VII) as follows:
24-34-104.  General assembly review of regulatory agencies and
functions for repeal, continuation, or reestablishment - legislative
declaration - repeal. (31) (a)  The following agencies, functions, or both,
are scheduled for repeal on September 1, 2030:
(VII)  T
HE FUNCTIONS OF THE CIRCULAR ECONOMY DEVELOPMENT
CENTER CREATED IN SECTION 
25-17-602.
SECTION 7. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly; except
that, if a referendum petition is filed pursuant to section 1 (3) of article V
of the state constitution against this act or an item, section, or part of this act
within such period, then the act, item, section, or part will not take effect
unless approved by the people at the general election to be held in
PAGE 9-HOUSE BILL 22-1159 November 2022 and, in such case, will take effect on the date of the official
declaration of the vote thereon by the governor.
____________________________ ____________________________
Alec Garnett Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________  ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
            APPROVED________________________________________
                                                        (Date and Time)
                              _________________________________________
                             Jared S. Polis
                             GOVERNOR OF THE STATE OF COLORADO
PAGE 10-HOUSE BILL 22-1159