Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 22-0346.01 Ed DeCecco x4216
SENATE BILL 22-118
Senate Committees House Committees
State, Veterans, & Military Affairs
A BILL FOR AN ACT
C
ONCERNING THE ENCOURAGEMENT OF THE USE OF GEOTHERMAL101
ENERGY BY PROVIDING SIMILAR TREATMENT TO SOLAR ENERGY .102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill modifies the following statutory provisions that apply to
solar energy so that they also apply to geothermal energy, which generally
is using the heat of the earth to generate electricity or to heat or cool
space or water:
! Section 1 of the bill requires the Colorado energy office
(office) to develop basic consumer education and guidance
SENATE SPONSORSHIP
Woodward, Hisey, Lundeen, Priola, Rankin, Scott, Sonnenberg
HOUSE SPONSORSHIP
Holtorf and Valdez D., Lynch, McKean, Pelton, Pico, Rich, Van Beber, Van Winkle, Will
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute. about leased or purchased geothermal installation, in
consultation with industries that offer these options to
consumers;
! Sections 2, 6, and 8 limit the aggregate of all charges or
other related or associated fees the state, a county, or a
municipality may impose or assess to install a geothermal
energy system;
! Section 3 specifies that geothermal equipment is a type of
pollution control equipment that the division of
administration in the department of public health and
environment may certify as pollution control equipment;
! Section 4 specifies that a "project" for purposes of the
"County and Municipality Development Revenue Bond
Act" includes capital improvements to existing
single-family residential, multi-family residential,
commercial, or industrial structures, to retrofit such
structures for installation of geothermal improvements;
! Section 5 permits a county board of commissioners or a
regional planning commission, and section 9 requires a
municipal development commission, to include methods
for assuring access to appropriate conditions for
geothermal energy sources in a master plan for
development;
! Section 7 specifies that the addition of a geothermal energy
device to a building is not necessarily considered a
structural alteration for purposes of continuing a
nonconforming use of a building, structure, or land under
a county zoning resolution;
! Section 10 permits the Colorado agricultural value-added
development board to use some of the money in the
agriculture value-added cash fund for geothermal energy
generation facilities that are colocated with agricultural
uses;
! Section 11 adds a geothermal energy device to the types of
renewable energy generation devices that cannot be
prohibited in legal instruments related to the transfer or sale
of, or interest in, real property;
! Section 13 includes an independently owned geothermal
energy system, which is defined in section 12, in the
property tax exemption for household furnishings;
! Section 14 creates community geothermal gardens, which
are analogous to community solar gardens; and
! Sections 15 and 16 create conforming amendments to the
definition of "qualified community location" to incorporate
community geothermal gardens for purposes of local
SB22-118
-2- improvement districts and municipal special improvement
districts.
Section 1 requires the office to update the greenhouse gas
pollution reduction roadmap to expressly include geothermal energy as
a renewable energy resource that qualifying retail utilities may use to
achieve the electric utility sector greenhouse gas pollution reduction goals
set forth in the roadmap.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 24-38.5-102, amend2
(1)(u); and add (4) as follows:3
24-38.5-102. Colorado energy office - duties and powers -4
definitions. (1) The Colorado energy office shall:5
(u) (I) Develop basic consumer education or guidance about6
leased solar
OR GEOTHERMAL installation and purchased solar OR7
GEOTHERMAL installation in consultation with industries that offer these8
options to consumers.9
(II) A
S USED IN THIS SUBSECTION (1)(u), "GEOTHERMAL10
INSTALLATION" MEANS THE INSTALLATION OF ANY EQUIPMENT THAT USES11
THE HEAT OF THE EARTH TO GENERATE ELECTRICITY OR TO HEAT OR COOL12
SPACE OR WATER.13
(4) T
HE COLORADO ENERGY OFFICE SHALL UPDATE THE14
GREENHOUSE GAS POLLUTION REDUCTION ROADMAP , PUBLISHED BY THE15
OFFICE AND DATED JANUARY 14, 2021, OR AS AMENDED THEREAFTER, TO16
EXPRESSLY INCLUDE GEOTHERMAL ENERGY AS A RENEWABLE ENERGY17
RESOURCE THAT QUALIFYING RETAIL UTILITIES MAY USE TO ACHIEVE THE18
ELECTRIC UTILITY SECTOR GREENHOUSE GAS POLLUTION REDUCTION19
GOALS SET FORTH IN THE GREENHOUSE GAS POLLUTION REDUCTION20
ROADMAP.21
SECTION 2. In Colorado Revised Statutes, 24-48.5-113, amend22
SB22-118-3- (1)(a) introductory portion and (1)(e) as follows:1
24-48.5-113. Limit on fees - active solar energy systems -2
geothermal systems - definitions - repeal. (1) (a) Except as otherwise3
provided in this section, the aggregate of all charges or other related or4
associated fees the state or any agency, institution, authority, or political5
subdivision of the state may impose or assess to install an active solar6
energy system
OR A GEOTHERMAL ENERGY SYSTEM shall not exceed:7
(e) As used in this subsection (1):8
(I) "Active solar energy system" means a single system that9
contains electric generation, a thermal device, or is an energy storage10
system as defined in section 40-2-202 (2).11
(II) "G
EOTHERMAL ENERGY SYSTEM " MEANS A SINGLE SYSTEM12
THAT USES THE HEAT OF THE EARTH TO GENERATE ELECTRICITY OR TO13
HEAT OR COOL SPACE OR WATER .14
SECTION 3. In Colorado Revised Statutes, 25-6.5-201, amend15
(2) as follows:16
25-6.5-201. Definitions. As used in this part 2, unless the context17
otherwise requires:18
(2) "Pollution control equipment" means any personal property,19
including, but not limited to, equipment, machinery, devices, systems,20
buildings, or structures, that is installed, constructed, or used in or as a21
part of a facility that creates a product in a manner that generates less22
pollution by the utilization of an alternative manufacturing or generating23
technology. "Pollution control equipment" includes, but is not limited to,24
gas or wind turbines and associated compressors or equipment; or
solar,25
thermal, or photovoltaic equipment;
OR GEOTHERMAL EQUIPMENT , WHICH26
IS ANY EQUIPMENT USED AS PART OF A SYSTEM THAT USES THE HEAT OF27
SB22-118
-4- THE EARTH TO GENERATE ELECTRICITY OR TO HEAT OR COOL SPACE OR1
WATER.2
SECTION 4. In Colorado Revised Statutes, 29-3-103, amend the3
introductory portion and (10)(m) as follows:4
29-3-103. Definitions. As used in this article ARTICLE 3, unless5
the context otherwise requires:6
(10) "Project" means any land, building, or other improvement7
and all real or personal properties, and any undivided or other interest in8
any of the foregoing, except inventories and raw materials, whether or not9
in existence, suitable or used for or in connection with any of the10
following:11
(m) Capital improvements to existing single-family residential,12
multi-family residential, commercial, or industrial structures, to retrofit13
such structures for significant energy savings or installation of14
GEOTHERMAL IMPROVEMENTS TO GENERATE ELECTRICITY OR TO HEAT OR15
COOL SPACE OR WATER OR solar or other alternative electrical16
energy-producing improvements to serve that structure or other structures17
on contiguous property under common ownership.18
SECTION 5. In Colorado Revised Statutes, 30-28-106, amend19
(3)(a)(VI) as follows:20
30-28-106. Adoption of master plan - contents. (3) (a) The21
master plan of a county or region, with the accompanying maps, plats,22
charts, and descriptive and explanatory matter, must show the county or23
regional planning commission's recommendations for the development of24
the territory covered by the plan. The master plan of a county or region is25
an advisory document to guide land development decisions; however, the26
plan or any part thereof may be made binding by inclusion in the county's27
SB22-118
-5- or region's adopted subdivision, zoning, platting, planned unit1
development, or other similar land development regulations after2
satisfying notice, due process, and hearing requirements for legislative or3
quasi-judicial processes as appropriate. After consideration of each of the4
following, where applicable or appropriate, the master plan may include:5
(VI) Methods for assuring access to appropriate conditions for6
solar, wind, or other alternative energy sources
OR FOR GEOTHERMAL7
ENERGY USED TO GENERATE ELECTRICITY OR TO HEAT OR COOL SPACE OR8
WATER;9
SECTION 6. In Colorado Revised Statutes, 30-28-113, amend10
(1)(b)(II)(A) and (1)(b)(II)(C) as follows:11
30-28-113. Regulation of size and use - districts - definitions -12
repeal. (1) (b) (II) (A) Except as otherwise provided in this section, the13
aggregate of all charges or other related or associated fees a county shall14
impose or assess to install an active solar energy system
OR GEOTHERMAL15
ENERGY SYSTEM, shall not exceed the lesser of the county's actual costs16
in issuing the permit or five hundred dollars for a residential application17
or one thousand dollars for a nonresidential application if the device or18
system produces fewer than two megawatts of direct current electricity or19
an equivalent-sized thermal energy system, or that exceed the county's20
actual costs in issuing the permit if the device or system produces at least21
two megawatts of direct current electricity or an equivalent-sized thermal22
energy system. A county may increase its fees or other charges as23
authorized by this subsection (1)(b)(II) by no more than five percent on24
an annual basis until the five hundred dollar limitation specified in this25
subsection (1)(b)(II) is achieved. The county shall clearly and individually26
identify all fees and taxes assessed on an application subject to this27
SB22-118
-6- subsection (1)(b)(II) on the invoice. The general assembly hereby finds1
that there is a statewide need for certainty regarding the fees that can be2
assessed for permitting such devices or systems, and therefore declares3
that this subsection (1)(b)(II) is a matter of statewide concern. This4
subsection (1)(b)(II) is repealed, effective December 31, 2029.5
(C) As used in this subsection (1)(b)(II), "active solar energy6
system" means a single system that contains electric generation, a thermal7
device, or is an energy storage system as defined in section 40-2-202 (2),8
AND "GEOTHERMAL ENERGY SYSTEM " MEANS A SINGLE SYSTEM THAT USES9
THE HEAT OF THE EARTH TO GENERATE ELECTRICITY OR TO HEAT OR COOL10
SPACE OR WATER.11
SECTION 7. In Colorado Revised Statutes, 38-20-120, amend12
(1) as follows:13
30-28-120. Existing structures - county property. (1) The14
lawful use of a building or structure or the lawful use of any land, as15
existing and lawful at the time of the adoption of a zoning resolution or,16
in the case of an amendment of a resolution, at the time of such17
amendment, may be continued, although such use does not conform with18
the provisions of such resolution or amendment, and such use may be19
extended throughout the same building if no structural alteration of such20
building is proposed or made for the purpose of such extension. The21
addition of a solar energy device
OR A GEOTHERMAL ENERGY DEVICE ,22
WHICH INCLUDES ANY DEVICE THAT USES THE HEAT OF THE EARTH TO23
GENERATE ELECTRICITY OR TO HEAT OR COOL SPACE OR WATER , to such24
building shall not necessarily be considered a structural alteration. The25
board of county commissioners may provide in any zoning resolution for26
the restoration, reconstruction, extension, or substitution of27
SB22-118
-7- nonconforming uses upon such terms and conditions as may be set forth1
in the zoning resolution. 2
SECTION 8. In Colorado Revised Statutes, 31-15-602, amend3
(4)(b)(I)(A) and (4)(b)(I)(C) as follows:4
31-15-602. Energy efficient building codes - legislative5
declaration - definitions - repeal. (4) (b) (I) (A) Except as otherwise6
provided in this section, the aggregate of all charges or other related or7
associated fees a municipality shall impose or assess to install an active8
solar electric or solar thermal device or system
OR A GEOTHERMAL9
ENERGY SYSTEM shall not exceed the lesser of the municipality's actual10
costs in issuing the permit or five hundred dollars for a residential11
application or one thousand dollars for a nonresidential application if the12
device or system produces fewer than two megawatts of direct current13
electricity or an equivalent-sized thermal energy system, or that exceed14
the municipality's actual costs in issuing the permit if the device or system15
produces at least two megawatts of direct current electricity or an16
equivalent-sized thermal energy system. A municipality may increase its17
fees or other charges as authorized by this subsection (4)(b)(I) by no more18
than five percent on an annual basis until the five hundred dollar19
limitation specified in this subsection (4)(b)(I) is achieved. The20
municipality shall clearly and individually identify all fees and taxes21
assessed on an application subject to this subsection (4)(b)(I) on the22
invoice. The general assembly hereby finds that there is a statewide need23
for certainty regarding the fees that can be assessed for permitting such24
devices or systems, and therefore declares that this subsection (4)(b) is a25
matter of statewide concern.26
(C) As used in this subsection (4)(b)(I), "active solar energy27
SB22-118
-8- system" means a single system that contains electric generation, a thermal1
device, or is an energy storage system as defined in section 40-2-202 (2),2
AND "GEOTHERMAL ENERGY SYSTEM " MEANS A SINGLE SYSTEM THAT USES3
THE HEAT OF THE EARTH TO GENERATE ELECTRICITY OR TO HEAT OR COOL4
SPACE OR WATER.5
SECTION 9. In Colorado Revised Statutes, 31-23-206, amend6
(1)(f) as follows:7
31-23-206. Master plan. (1) It is the duty of the commission to8
make and adopt a master plan for the physical development of the9
municipality, including any areas outside its boundaries, subject to the10
approval of the governmental body having jurisdiction thereof, that in the11
commission's judgment bear relation to the planning of the municipality.12
The master plan of a municipality is an advisory document to guide land13
development decisions; however, the plan or any part thereof may be14
made binding by inclusion in the municipality's adopted subdivision,15
zoning, platting, planned unit development, or other similar land16
development regulations after satisfying notice, due process, and hearing17
requirements for legislative or quasi-judicial processes as appropriate.18
When a commission decides to adopt a master plan, the commission shall19
conduct public hearings, after notice of such public hearings has been20
published in a newspaper of general circulation in the municipality in a21
manner sufficient to notify the public of the time, place, and nature of the22
public hearing, prior to final adoption of a master plan in order to23
encourage public participation in and awareness of the development of24
such plan and shall accept and consider oral and written public comments25
throughout the process of developing the plan. The plan, with the26
accompanying maps, plats, charts, and descriptive matter, must, after27
SB22-118
-9- consideration of each of the following, where applicable or appropriate,1
show the commission's recommendations for the development of the2
municipality and outlying areas, including:3
(f) A zoning plan for the control of the height, area, bulk, location,4
and use of buildings and premises. Such a zoning plan may protect and5
assure access to appropriate conditions for solar, wind, or other6
alternative energy sources
OR FOR GEOTHERMAL ENERGY USED TO7
GENERATE ELECTRICITY OR TO HEAT OR COOL SPACE OR WATER ; however,8
regulations and restrictions of the height, number of stories, size of9
buildings and other structures, and the height and location of trees and10
other vegetation shall not apply to existing buildings, structures, trees, or11
vegetation except for new growth on such vegetation.12
SECTION 10. In Colorado Revised Statutes, 35-75-205, amend13
(1) as follows:14
35-75-205. Grants, loans and loan guarantees, and equity15
investments - agriculture value-added cash fund - created - report -16
definition - repeal. (1) (a) Money received by the board from public or17
private gifts, grants, or donations or from any other source shall be18
forwarded to the state treasurer and shall be credited to the agriculture19
value-added cash fund, which fund is hereby created. Money in the fund20
is continuously appropriated to the board and shall be used for the21
purpose of preparing criteria and reviewing applications as provided in22
section 35-75-204 and for financial or technical assistance to agricultural23
projects, project concepts, and research as approved by the board. All24
interest earned on the investment of money in the fund shall be credited25
to the fund. The board may provide or facilitate grants, loans and loan26
guarantees, and equity investments for agricultural projects, project27
SB22-118
-10- concepts, or research; except that such grants, loans and loan guarantees,1
and equity investments shall be limited to two million dollars per project2
and, of the money transferred to the fund pursuant to subsection (4)(a) of3
this section, the board shall allocate at least one hundred fifty thousand4
dollars to research, guidance, technical assistance, feasibility studies, and5
projects related to agrivoltaics
OR GEOVOLTAICS. Grants, loans and loan6
guarantees, and equity investments may only be provided to feasible7
projects and for an amount that is the least amount necessary to cause the8
project to occur, as determined by the board. The board may structure the9
grants, loans and loan guarantees, and equity investments in a way that10
facilitates the project and also provides for a compensatory return on11
investment or loan payment to the board based on the risk of the project.12
Any money credited to the agriculture value-added cash fund and13
unexpended at the end of any given fiscal year shall remain in the fund14
and shall not revert to the general fund or any other fund.15
(b) As used in this section:16
(I) "Agrivoltaics" means one or more solar energy generation17
facilities colocated on the same parcel of land as agricultural production,18
including crop production, grazing, apiaries, or other production of19
agricultural commodities for sale in the retail or wholesale market.20
(II) "G
EOVOLTAICS" MEANS ONE OR MORE GEOTHERMAL ENERGY21
GENERATION FACILITIES COLOCATED ON THE SAME PARCEL OF LAND AS22
AGRICULTURAL PRODUCTION , INCLUDING CROP PRODUCTION , GRAZING23
APIARIES, OR OTHER PRODUCTION OF AGRICULTURAL COMMODITIES FOR24
SALE IN THE RETAIL OR WHOLESALE MARKET .25
SECTION 11. In Colorado Revised Statutes, 38-30-168, amend26
(1)(b) as follows:27
SB22-118
-11- 38-30-168. Unreasonable restrictions on renewable energy1
generation devices - definitions. (1) (b) As used in this section,2
"renewable energy generation device" means: either:3
(I) A solar energy device, as defined in section 38-32.5-100.3; or4
(II) A wind-electric generator that meets the interconnection5
standards established in rules promulgated by the public utilities6
commission pursuant to section 40-2-124; C.R.S. OR7
(III) A
GEOTHERMAL ENERGY DEVICE .8
SECTION 12. In Colorado Revised Statutes, 39-1-102, add (6.7)9
as follows:10
39-1-102. Definitions. As used in articles 1 to 13 of this title 39,11
unless the context otherwise requires:12
(6.7) "I
NDEPENDENTLY OWNED RESIDENTIAL GEOTHERMAL13
SYSTEM" MEANS PERSONAL PROPERTY THAT :14
(a) I
S LOCATED ON RESIDENTIAL REAL PROPERTY ;15
(b) I
S OWNED BY A PERSON OTHER THAN THE OWNER OF THE16
RESIDENTIAL REAL PROPERTY;17
(c) I
S USED ON THE RESIDENTIAL REAL PROPERTY ;18
(d) U
SES THE HEAT OF THE EARTH TO GENERATE ELECTRICITY OR19
TO HEAT OR COOL SPACE OR WATER ; AND20
(e) I
F THE SYSTEM GENERATES ELECTRICITY :21
(I) I
S INSTALLED ON THE CUSTOMER'S SIDE OF THE METER; AND 22
(II) H
AS A PRODUCTION CAPACITY OF NO MORE THAN ONE23
HUNDRED KILOWATTS.24
SECTION 13. In Colorado Revised Statutes, 39-3-102, amend25
(1) as follows:26
39-3-102. Household furnishings - exemption. (1) Household27
SB22-118
-12- furnishings, including free-standing household appliances, wall-to-wall1
carpeting, an independently owned residential solar electric generation2
facility,
AN INDEPENDENTLY OWNED RESIDENTIAL GEOTHERMAL SYSTEM ,3
and security devices and systems that are not used for the production of4
income at any time shall be exempt from the levy and collection of5
property tax. If any household furnishings are used for the production of6
income for any period of time during the taxable year, such household7
furnishings shall be taxable for the entire taxable year. An independently8
owned residential solar electric generation facility shall not be considered9
to be used for the production of income unless the facility produces10
income for the owner of the residential real property on which the facility11
is located. For property tax purposes only, rebates, offsets, credits, and12
reimbursements specified in section 40-2-124 C.R.S.,
shall not constitute13
the production of income. For purposes of this subsection (1), for14
property tax purposes only, security devices and systems shall include, but15
shall not be limited to, security doors, security bars, and alarm systems. 16
SECTION 14. In Colorado Revised Statutes, 40-2-127, amend17
(1), (2)(a), (2)(b)(II), (2)(b)(III), (3), (3.5) introductory portion, (3.5)(b)18
introductory portion, (4), (5)(a)(I), (5)(a)(IV), (5)(b), (5)(c), (5)(d), (5)(e),19
(5)(f), and (6); and add (2)(a.5) as follows:20
40-2-127. Community energy funds - community solar gardens21
- community geothermal gardens - definitions - rules - legislative22
declaration - repeal. (1) Legislative declaration. The general assembly23
hereby finds and declares that:24
(a) Local communities can benefit from the further development25
of renewable energy, energy efficiency, conservation, and environmental26
improvement projects, and the general assembly hereby encourages27
SB22-118
-13- electric utilities to establish community energy funds for the development1
of such projects;2
(b) It is in the public interest that broader participation in solar
OR3
GEOTHERMAL electric generation by Colorado residents and commercial4
entities be encouraged by the development and deployment of distributed5
solar electric generating facilities known as community solar gardens, in6
order to:7
(I) Provide Colorado residents and commercial entities with the8
opportunity to participate in solar
OR GEOTHERMAL generation in addition9
to the opportunities available for rooftop solar generation on homes and10
businesses;11
(II) Allow renters, low-income utility customers, and agricultural12
producers to own interests in solar
OR GEOTHERMAL generation facilities;13
(III) Allow interests in solar
AND GEOTHERMAL generation14
facilities to be portable and transferrable; and15
(IV) Leverage Colorado's solar
AND GEOTHERMAL generating16
capacity through economies of scale.17
(2) Definitions. As used in this section, unless the context18
otherwise requires:19
(a) The definitions in section 40-2-124 apply; and
20
(a.5) (I) "C
OMMUNITY GEOTHERMAL GARDEN " MEANS A21
GEOTHERMAL FACILITY THAT PRODUCES ELECTRICITY FROM THE EARTH 'S22
HEAT WITH A NAMEPLATE RATING WITHIN THE RANGE SPECIFIED UNDER23
SUBSECTION (2)(a.5)(IV) OF THIS SECTION THAT IS LOCATED IN OR NEAR24
A COMMUNITY SERVED BY A QUALIFYING RETAIL UTILITY WHERE THE25
BENEFICIAL USE OF THE ELECTRICITY GENERATED BY THE FACILITY26
BELONGS TO THE SUBSCRIBERS TO THE COMMUNITY GEOTHERMAL27
SB22-118
-14- GARDEN. THERE MUST BE AT LEAST TEN SUBSCRIBERS. THE OWNER OF THE1
COMMUNITY GEOTHERMAL GARDEN MAY BE THE QUALIFYING RETAIL2
UTILITY OR ANY OTHER FOR -PROFIT OR NONPROFIT ENTITY OR3
ORGANIZATION, INCLUDING A SUBSCRIBER ORGANIZATION ORGANIZED4
UNDER THIS SECTION, THAT CONTRACTS TO SELL THE OUTPUT FROM THE5
COMMUNITY GEOTHERMAL GARDEN TO THE QUALIFYING RETAIL UTILITY .6
A
COMMUNITY GEOTHERMAL GARDEN IS DEEMED TO BE "LOCATED ON THE7
SITE OF CUSTOMER FACILITIES".8
(II) A
GEOTHERMAL GARDEN CONSTITUTES "RETAIL DISTRIBUTED9
GENERATION" WITHIN THE MEANING OF SECTION 40-2-124.10
(III) N
OTWITHSTANDING ANY PROVISION OF THIS SECTION OR11
SECTION 40-2-124 TO THE CONTRARY , A COMMUNITY GEOTHERMAL12
GARDEN CONSTITUTES RETAIL DISTRIBUTED GENERATION FOR PURPOSES13
OF A COOPERATIVE ELECTRIC ASSOCIATION 'S COMPLIANCE WITH THE14
APPLICABLE RENEWABLE ENERGY STANDARD UNDER SECTION 40-2-124.15
(IV) A
COMMUNITY GEOTHERMAL GARDEN MUST HAVE A16
NAMEPLATE RATING OF FIVE MEGAWATTS OR LESS ; EXCEPT THAT THE17
COMMISSION MAY, IN RULES ADOPTED PURSUANT TO SUBSECTION (3)(b)18
OF THIS SECTION, APPROVE THE FORMATION OF A COMMUNITY19
GEOTHERMAL GARDEN WITH A NAMEPLATE RATING OF UP TO TEN20
MEGAWATTS ON OR AFTER JULY 1, 2023; AND21
(b) In addition:22
(II) "Subscriber" means a retail customer of a qualifying retail23
utility who owns a subscription and who has identified one or more24
physical locations to which the subscription is attributed. Such physical25
locations must be within the service territory of the same qualifying retail26
utility as the community solar garden
OR COMMUNITY GEOTHERMAL27
SB22-118
-15- GARDEN. The subscriber may change from time to time the premises to1
which the community solar garden
OR COMMUNITY GEOTHERMAL GARDEN2
electricity generation shall be
ARE attributed, so long as the premises are3
within the same service territory.4
(III) "Subscription" means a proportional interest in solar electric5
generation facilities installed at a community solar garden
OR6
GEOTHERMAL ELECTRIC GENERATION FACILITIES INSTALLED AT A7
COMMUNITY GEOTHERMAL GARDEN , together with the renewable energy8
credits associated with or attributable to such facilities under section9
40-2-124. Each subscription shall
MUST be sized to represent at least one10
kilowatt of the community solar garden's
OR COMMUNITY GEOTHERMAL11
GARDEN'S generating capacity and to supply no more than one hundred12
twenty percent of the average annual consumption of electricity by each13
subscriber at the premises to which the subscription is attributed, with a14
deduction for the amount of any existing solar
OR GEOTHERMAL facilities15
at such premises. Subscriptions in a community solar garden
OR16
GEOTHERMAL SOLAR GARDEN may be transferred or assigned to a17
subscriber organization or to any person or entity who qualifies to be a18
subscriber under this section.19
(3) Subscriber organization - subscriber qualifications -20
transferability of subscriptions. (a) The community solar garden
OR21
COMMUNITY GEOTHERMAL GARDEN may be owned by a subscriber22
organization, whose sole purpose shall be
IS beneficially owning and23
operating a community solar garden
OR COMMUNITY GEOTHERMAL24
GARDEN. The subscriber organization may be any for-profit or nonprofit25
entity permitted by Colorado law. The community solar garden
OR26
COMMUNITY GEOTHERMAL GARDEN may also be built, owned, and27
SB22-118
-16- operated by a third party under contract with the subscriber organization.1
(b) The commission shall adopt rules as necessary to implement2
this section, including rules to facilitate the financing of3
subscriber-owned community solar gardens
OR COMMUNITY GEOTHERMAL4
GARDENS. The rules must include:5
(I) Minimum capitalization;6
(II) The share of a community solar garden's eligible solar electric7
generation facilities
OR COMMUNITY GEOTHERMAL GARDEN 'S8
GEOTHERMAL ELECTRIC GENERATION FACILITIES that a subscriber9
organization may at any time own in its own name; and10
(III) Authorizing subscriber organizations to enter into leases,11
sale-and-leaseback transactions, operating agreements, and other12
ownership arrangements with third parties.13
(c) If a subscriber ceases to be a customer at the premises on14
which the subscription is based but, within a reasonable period as15
determined by the commission, becomes a customer at another premises16
in the service territory of the qualifying retail utility and within the17
geographic area served by the community solar garden
OR COMMUNITY18
GEOTHERMAL GARDEN , the subscription shall continue
CONTINUES in19
effect but the bill credit and other features of the subscription shall be ARE20
adjusted as necessary to reflect any differences between the new and21
previous premises' customer classification and average annual22
consumption of electricity.23
(3.5) Standards for construction and operation. The following24
requirements apply to any community solar garden
OR COMMUNITY25
GEOTHERMAL GARDEN exceeding two megawatts:26
(b) Following the development or acquisition by a qualifying retail27
SB22-118
-17- utility of a community solar garden OR COMMUNITY GEOTHERMAL1
GARDEN in which the qualifying retail utility retains ownership, the2
qualifying retail utility shall either use its own employees to operate and3
maintain the community solar garden
OR COMMUNITY GEOTHERMAL4
GARDEN or contract for operation and maintenance of the community5
solar garden
OR COMMUNITY GEOTHERMAL GARDEN by a contractor whose6
employees have access to an apprenticeship program registered with the7
United States department of labor's office of apprenticeship or with a8
state apprenticeship council recognized by that office; except that this9
apprenticeship requirement does not apply to:10
(4) Community solar gardens and community geothermal11
gardens not subject to regulation. Neither the owners of nor the12
subscribers to a community solar garden shall be
OR COMMUNITY13
GEOTHERMAL GARDEN ARE considered public utilities subject to14
regulation by the commission solely as a result of their interest in the15
community solar garden. Prices paid for subscriptions in community solar16
gardens
OR COMMUNITY GEOTHERMAL GARDENS shall not be subject to17
regulation by the commission.18
(5) Purchases of the output from community solar gardens or19
community geothermal gardens. (a) (I) Each qualifying retail utility20
shall set forth in its plan for acquisition of renewable resources a plan to21
purchase the electricity and renewable energy credits generated from one22
or more community solar gardens
OR COMMUNITY GEOTHERMAL GARDENS23
over the period covered by the plan.24
(IV) For each qualifying retail utility's compliance years25
commencing in 2014 and thereafter, the commission shall determine the26
minimum and maximum purchases of electrical output from newly27
SB22-118
-18- installed community solar gardens OR COMMUNITY GEOTHERMAL1
GARDENS of different output capacity that the qualifying retail utility shall2
plan to acquire, without regard to the six-megawatt ceiling of the first3
three compliance years. In addition, as necessary, the commission shall4
formulate and implement policies consistent with this section that5
simultaneously encourage:6
(A) The ownership by customers of subscriptions in community7
solar gardens
AND COMMUNITY GEOTHERMAL GARDENS and of other8
forms of distributed generation, to the extent the commission finds there9
to be customer demand for such ownership;10
(B) Ownership in community solar gardens
AND COMMUNITY11
GEOTHERMAL GARDENS by residential retail customers and agricultural12
producers, including low-income customers, to the extent the commission13
finds there to be demand for such ownership;14
(C) The development of community solar gardens
AND15
COMMUNITY GEOTHERMAL GARDENS with attributes that the commission16
finds result in lower overall total costs for the qualifying retail utility's17
customers;18
(D) Successful financing and operation of community solar19
gardens
AND COMMUNITY GEOTHERMAL GARDENS owned by subscriber20
organizations; and21
(E) The achievement of the goals and objectives of section22
40-2-124.23
(b) (I) (A) The output from a community solar garden shall
OR24
COMMUNITY GEOTHERMAL GARDEN MUST be sold only to the qualifying25
retail utility serving the geographic area where the community solar26
garden is located.27
SB22-118
-19- (B) Once a community solar garden OR COMMUNITY GEOTHERMAL1
GARDEN is part of a qualifying retail utility's plan for acquisition of2
renewable resources, as approved by the commission, the commission3
shall, by January 30, 2020, initiate a proceeding, or consider in an active4
proceeding, to determine whether the qualifying retail utility shall MUST5
purchase all of the electricity and renewable energy credits generated by6
the community solar garden
OR COMMUNITY GEOTHERMAL GARDEN or7
whether a subscriber may, upon becoming a subscriber, choose to retain8
or sell to the qualifying retail utility the subscriber's renewable energy9
credits.10
(C) The amount of electricity and renewable energy credits11
generated by each community solar garden shall be
OR COMMUNITY12
GEOTHERMAL GARDEN IS determined by a production meter installed by13
the qualifying retail utility or third-party system owner and paid for by the14
owner of the community solar garden
OR COMMUNITY GEOTHERMAL15
GARDEN.16
(II) The purchase of the output of a community solar garden
OR17
COMMUNITY GEOTHERMAL GARDEN by a qualifying retail utility shall take
18
TAKES the form of a net metering credit against the qualifying retail19
utility's electric bill to each community solar garden
OR COMMUNITY20
GEOTHERMAL GARDEN subscriber at the premises set forth in the21
subscriber's subscription. The net metering credit shall be
IS calculated by22
multiplying the subscriber's share of the electricity production from the23
community solar garden
OR COMMUNITY GEOTHERMAL GARDEN by the24
qualifying retail utility's total aggregate retail rate as charged to the25
subscriber, minus a reasonable charge as determined by the commission26
to cover the utility's costs of delivering to the subscriber's premises the27
SB22-118
-20- electricity generated by the community solar garden OR COMMUNITY1
GEOTHERMAL GARDEN , integrating the solar OR GEOTHERMAL generation2
with the utility's system, and administering the community solar garden's3
OR COMMUNITY GEOTHERMAL GARDEN 'S contracts and net metering4
credits. The commission shall ensure that this charge does not reflect5
costs that are already recovered by the utility from the subscriber through6
other charges. If, and to the extent that, a subscriber's net metering credit7
exceeds the subscriber's electric bill in any billing period, the net metering8
credit shall be
IS carried forward and applied against future bills. The9
qualifying retail utility and the owner of the community solar garden shall10
OR COMMUNITY GEOTHERMAL GARDEN MUST agree on whether the11
purchase of the renewable energy credits from subscribers will be12
accomplished through a credit on each subscriber's electricity bill or by13
a payment to the owner of the community solar garden
OR COMMUNITY14
GEOTHERMAL GARDEN .15
(c) The owner of the community solar garden
OR COMMUNITY16
GEOTHERMAL GARDEN shall provide real-time production data to the17
qualifying retail utility to facilitate incorporation of the community solar18
garden
OR COMMUNITY GEOTHERMAL GARDEN into the utility's operation19
of its electric system and to facilitate the provision of net metering20
credits.21
(d) The owner of the community solar garden shall be
OR22
COMMUNITY GEOTHERMAL GARDEN IS responsible for providing to the23
qualifying retail utility, on a monthly basis and within reasonable periods24
set by the qualifying retail utility, the percentage shares that should be25
used to determine the net metering credit to each subscriber. If the26
electricity output of the community solar garden
OR COMMUNITY27
SB22-118
-21- GEOTHERMAL GARDEN is not fully subscribed, the qualifying retail utility1
shall purchase the unsubscribed renewable energy and the renewable2
energy credits at a rate equal to the qualifying retail utility's average3
hourly incremental cost of electricity supply over the immediately4
preceding calendar year.5
(e) Each qualifying retail utility shall set forth in its plan for6
acquisition of renewable resources a proposal for including low-income7
customers as subscribers to a community solar garden. The utility may8
give preference to community solar gardens
OR COMMUNITY9
GEOTHERMAL GARDENS that have low-income subscribers.10
(f) Qualifying retail utilities shall be
ARE eligible for the11
incentives and subject to the ownership limitations set forth in section12
40-2-124 (1)(f) for utility investments in community solar gardens
OR13
COMMUNITY GEOTHERMAL GARDENS and may recover through rates a14
margin, in an amount determined by the commission, on all energy and15
renewable energy credits purchased from community solar gardens. Such16
incentive payments shall be
ARE excluded from the cost analysis required17
by section 40-2-124 (1)(g).18
(6) Nothing in this section shall be construed to waive or19
supersede WAIVES OR SUPERSEDES the retail rate impact limitations in20
section 40-2-124 (1)(g). Utility expenditures for unsubscribed energy and21
renewable energy credits generated by community solar gardens shall OR22
COMMUNITY GEOTHERMAL GARDENS MUST be included in the calculations23
of retail rate impact required by that section.24
SECTION 15. In Colorado Revised Statutes, 30-20-602, amend25
(4.3)(b) as follows:26
30-20-602. Definitions. As used in this part 6, unless the context27
SB22-118
-22- otherwise requires:1
(4.3) "Qualified community location" means:2
(b) If the affected local electric utility is an investor-owned utility,3
a community solar garden,
OR COMMUNITY GEOTHERMAL GARDEN as that
4
term is THOSE TERMS ARE defined in section 40-2-127 (2). C.R.S. If5
House Bill 10-1342 does not take effect, there shall be no qualified6
community locations in the service territories of investor-owned utilities.7
SECTION 16. In Colorado Revised Statutes, 31-25-501, amend8
(3.5)(b) as follows:9
31-25-501. Definitions. As used in this part 5, unless the context10
otherwise requires:11
(3.5) "Qualified community location" means:12
(b) If the affected local electric utility is an investor-owned utility,13
a community solar garden,
OR COMMUNITY GEOTHERMAL GARDEN as that
14
term is THOSE TERMS ARE defined in section 40-2-127 (2). C.R.S. If15
House Bill 10-1342 does not take effect, there shall be no qualified16
community locations in the service territories of investor-owned utilities.17
SECTION 17. Act subject to petition - effective date. This act18
takes effect at 12:01 a.m. on the day following the expiration of the19
ninety-day period after final adjournment of the general assembly; except20
that, if a referendum petition is filed pursuant to section 1 (3) of article V21
of the state constitution against this act or an item, section, or part of this22
act within such period, then the act, item, section, or part will not take23
effect unless approved by the people at the general election to be held in24
November 2022 and, in such case, will take effect on the date of the25
official declaration of the vote thereon by the governor.26
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