Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
LLS NO. 22-0346.01 Ed DeCecco x4216
SENATE BILL 22-118
Senate Committees House Committees
State, Veterans, & Military Affairs
Finance
Appropriations
A BILL FOR AN ACT
C
ONCERNING THE ENCOURAGEMENT OF THE USE OF GEOTHERMAL101
ENERGY BY PROVIDING SIMILAR TREATMENT TO SOLAR ENERGY ,
102
AND, IN CONNECTION THEREWITH , MAKING AN APPROPRIATION .103
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
SENATE
Amended 2nd Reading
April 1, 2022
SENATE SPONSORSHIP
Woodward and Hinrichsen, 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. (office) to develop basic consumer education and guidance
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
118
-2- community geothermal gardens for purposes of local
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, add
2
(1)(v) and (4) as follows:3
24-38.5-102. Colorado energy office - duties and powers -4
definitions. (1) The Colorado energy office shall:5
(v) I
N CONSULTATION WITH THE APPROPRIATE INDUSTRIES ,
6
DEVELOP BASIC CONSUMER EDUCAT ION OR GUIDANCE ABOUT PURCHASED7
OR, IF AVAILABLE, LEASED INSTALLATION OF A SYSTEM THAT USES8
GEOTHERMAL ENERGY FOR WATER HEATING OR SPACE HEATING OR9
COOLING IN A SINGLE BUILDING OR FOR SPACE HEATING FOR MORE THAN10
ONE BUILDING THROUGH A PIPELINE NETWORK .11
(4) T
HE COLORADO ENERGY OFFICE MAY
UPDATE THE12
GREENHOUSE GAS POLLUTION REDUCTION ROADMAP , PUBLISHED BY THE13
OFFICE AND DATED JANUARY 14, 2021, OR AS AMENDED THEREAFTER, TO14
EXPRESSLY INCLUDE GEOTHERMAL ENERGY AS A RENEWABLE ENERGY15
RESOURCE THAT QUALIFYING RETAIL UTILITIES MAY USE TO ACHIEVE THE16
ELECTRIC UTILITY SECTOR GREENHOUSE GAS POLLUTION REDUCTION17
GOALS SET FORTH IN THE GREENHOUSE GAS POLLUTION REDUCTION18
ROADMAP.19
SECTION 2. In Colorado Revised Statutes, 24-48.5-113, amend20
(1)(a) introductory portion and (1)(e) as follows:21
118-3- 24-48.5-113. Limit on fees - active solar energy systems -1
geothermal systems - definitions - repeal. (1) (a) Except as otherwise2
provided in this section, the aggregate of all charges or other related or3
associated fees the state or any agency, institution, authority, or political4
subdivision of the state may impose or assess to install an active solar5
energy system
OR A GEOTHERMAL ENERGY SYSTEM shall not exceed:6
(e) As used in this subsection (1):7
(I) "Active solar energy system" means a single system that8
contains electric generation, a thermal device, or is an energy storage9
system as defined in section 40-2-202 (2).10
(II) "G
EOTHERMAL ENERGY SYSTEM " MEANS A SYSTEM THAT USES
11
GEOTHERMAL ENERGY FOR WATER HEATING OR SPACE HEATING OR12
COOLING IN A SINGLE BUILDING, FOR SPACE HEATING FOR MORE THAN ONE13
BUILDING THROUGH A PIPELINE NETWORK , OR FOR ELECTRICITY14
GENERATION.15
SECTION 3. In Colorado Revised Statutes, 25-6.5-201, amend16
(2) as follows:17
25-6.5-201. Definitions. As used in this part 2, unless the context18
otherwise requires:19
(2) "Pollution control equipment" means any personal property,20
including, but not limited to, equipment, machinery, devices, systems,21
buildings, or structures, that is installed, constructed, or used in or as a22
part of a facility that creates a product in a manner that generates less23
pollution by the utilization of an alternative manufacturing or generating24
technology. "Pollution control equipment" includes, but is not limited to,25
gas or wind turbines and associated compressors or equipment; or solar,26
thermal, or photovoltaic equipment;
OR EQUIPMENT USED AS PART27
118
-4- OF A SYSTEM THAT USES GEOTHERMAL ENERGY FOR WATER HEATING OR1
SPACE HEATING OR COOLING IN A SINGLE BUILDING , FOR SPACE HEATING2
FOR MORE THAN ONE BUILDING THROUGH A PIPELINE NETWORK , OR FOR3
ELECTRICITY GENERATION.4
SECTION 4. In Colorado Revised Statutes, 29-3-103, amend the5
introductory portion and (10)(m) as follows:6
29-3-103. Definitions. As used in this article ARTICLE 3, unless7
the context otherwise requires:8
(10) "Project" means any land, building, or other improvement9
and all real or personal properties, and any undivided or other interest in10
any of the foregoing, except inventories and raw materials, whether or not11
in existence, suitable or used for or in connection with any of the12
following:13
(m) Capital improvements to existing single-family residential,14
multi-family residential, commercial, or industrial structures, to retrofit15
such structures for significant energy savings or installation of solar or16
other alternative electrical energy-producing improvements to serve that17
structure or other structures on contiguous property under common18
ownership
OR INSTALLATION OF A SYSTEM THAT USES GEOTHERMAL
19
ENERGY FOR WATER HEATING OR SPACE HEATING OR COOLING IN A SINGLE20
STRUCTURE.21
SECTION 5. In Colorado Revised Statutes, 30-28-106, amend22
(3)(a)(VI) as follows:23
30-28-106. Adoption of master plan - contents. (3) (a) The24
master plan of a county or region, with the accompanying maps, plats,25
charts, and descriptive and explanatory matter, must show the county or26
regional planning commission's recommendations for the development of27
118
-5- the territory covered by the plan. The master plan of a county or region is1
an advisory document to guide land development decisions; however, the2
plan or any part thereof may be made binding by inclusion in the county's3
or region's adopted subdivision, zoning, platting, planned unit4
development, or other similar land development regulations after5
satisfying notice, due process, and hearing requirements for legislative or6
quasi-judicial processes as appropriate. After consideration of each of the7
following, where applicable or appropriate, the master plan may include:8
(VI) Methods for assuring access to appropriate conditions for9
solar, wind, or other alternative energy sources, INCLUDING10
GEOTHERMAL ENERGY USED FOR WATER HEATING OR SPACE HEATING OR11
COOLING IN A SINGLE BUILDING, FOR SPACE HEATING FOR MORE THAN ONE12
BUILDING THROUGH A PIPELINE NETWORK , OR FOR ELECTRICITY13
GENERATION.14
SECTION 6. In Colorado Revised Statutes, 30-28-113, amend15
(1)(b)(II)(A) and (1)(b)(II)(C) as follows:16
30-28-113. Regulation of size and use - districts - definitions -17
repeal. (1) (b) (II) (A) Except as otherwise provided in this section, the18
aggregate of all charges or other related or associated fees a county shall19
impose or assess to install an active solar energy system
OR GEOTHERMAL20
ENERGY SYSTEM, shall not exceed the lesser of the county's actual costs21
in issuing the permit or five hundred dollars for a residential application22
or one thousand dollars for a nonresidential application if the device or23
system produces fewer than two megawatts of direct current electricity or24
an equivalent-sized thermal energy system, or that exceed the county's25
actual costs in issuing the permit if the device or system produces at least26
two megawatts of direct current electricity or an equivalent-sized thermal27
118
-6- energy system. A county may increase its fees or other charges as1
authorized by this subsection (1)(b)(II) by no more than five percent on2
an annual basis until the five hundred dollar limitation specified in this3
subsection (1)(b)(II) is achieved. The county shall clearly and individually4
identify all fees and taxes assessed on an application subject to this5
subsection (1)(b)(II) on the invoice. The general assembly hereby finds6
that there is a statewide need for certainty regarding the fees that can be7
assessed for permitting such devices or systems, and therefore declares8
that this subsection (1)(b)(II) is a matter of statewide concern. This9
subsection (1)(b)(II) is repealed, effective December 31, 2029.10
(C) As used in this subsection (1)(b)(II), "active solar energy11
system" means a single system that contains electric generation, a thermal12
device, or is an energy storage system as defined in section 40-2-202 (2),13
AND "GEOTHERMAL ENERGY SYSTEM " MEANS A SYSTEM THAT USES
14
GEOTHERMAL ENERGY FOR WATER HEATING OR SPACE HEATING OR15
COOLING IN A SINGLE BUILDING, FOR SPACE HEATING FOR MORE THAN ONE16
BUILDING THROUGH A PIPELINE NETWORK , OR FOR ELECTRICITY17
GENERATION.18
SECTION 7. In Colorado Revised Statutes, 38-20-120, amend19
(1) as follows:20
30-28-120. Existing structures - county property. (1) The21
lawful use of a building or structure or the lawful use of any land, as22
existing and lawful at the time of the adoption of a zoning resolution or,23
in the case of an amendment of a resolution, at the time of such24
amendment, may be continued, although such use does not conform with25
the provisions of such resolution or amendment, and such use may be26
extended throughout the same building if no structural alteration of such27
118
-7- building is proposed or made for the purpose of such extension. The1
addition of a solar energy device
OR A DEVICE USED AS PART OF A SYSTEM
2
THAT USES GEOTHERMAL ENERGY FOR WATER HEATING OR SPACE HEATING3
OR COOLING to such building shall not necessarily be considered a4
structural alteration. The board of county commissioners may provide in5
any zoning resolution for the restoration, reconstruction, extension, or6
substitution of nonconforming uses upon such terms and conditions as7
may be set forth in the zoning resolution.8
SECTION 8. In Colorado Revised Statutes, 31-15-602, amend9
(4)(b)(I)(A) and (4)(b)(I)(C) as follows:10
31-15-602. Energy efficient building codes - legislative11
declaration - definitions - repeal. (4) (b) (I) (A) Except as otherwise12
provided in this section, the aggregate of all charges or other related or13
associated fees a municipality shall impose or assess to install an active14
solar electric or solar thermal device or system
OR A GEOTHERMAL15
ENERGY SYSTEM shall not exceed the lesser of the municipality's actual16
costs in issuing the permit or five hundred dollars for a residential17
application or one thousand dollars for a nonresidential application if the18
device or system produces fewer than two megawatts of direct current19
electricity or an equivalent-sized thermal energy system, or that exceed20
the municipality's actual costs in issuing the permit if the device or system21
produces at least two megawatts of direct current electricity or an22
equivalent-sized thermal energy system. A municipality may increase its23
fees or other charges as authorized by this subsection (4)(b)(I) by no more24
than five percent on an annual basis until the five hundred dollar25
limitation specified in this subsection (4)(b)(I) is achieved. The26
municipality shall clearly and individually identify all fees and taxes27
118
-8- assessed on an application subject to this subsection (4)(b)(I) on the1
invoice. The general assembly hereby finds that there is a statewide need2
for certainty regarding the fees that can be assessed for permitting such3
devices or systems, and therefore declares that this subsection (4)(b) is a4
matter of statewide concern.5
(C) As used in this subsection (4)(b)(I), "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 SYSTEM THAT USES
9
GEOTHERMAL ENERGY FOR WATER HEATING OR SPACE HEATING OR10
COOLING IN A SINGLE BUILDING, FOR SPACE HEATING FOR MORE THAN ONE11
BUILDING THROUGH A PIPELINE NETWORK , OR FOR ELECTRICITY12
GENERATION.13
SECTION 9. In Colorado Revised Statutes, 31-23-206, amend14
(1)(f) as follows:15
31-23-206. Master plan. (1) It is the duty of the commission to16
make and adopt a master plan for the physical development of the17
municipality, including any areas outside its boundaries, subject to the18
approval of the governmental body having jurisdiction thereof, that in the19
commission's judgment bear relation to the planning of the municipality.20
The master plan of a municipality is an advisory document to guide land21
development decisions; however, the plan or any part thereof may be22
made binding by inclusion in the municipality's adopted subdivision,23
zoning, platting, planned unit development, or other similar land24
development regulations after satisfying notice, due process, and hearing25
requirements for legislative or quasi-judicial processes as appropriate.26
When a commission decides to adopt a master plan, the commission shall27
118
-9- conduct public hearings, after notice of such public hearings has been1
published in a newspaper of general circulation in the municipality in a2
manner sufficient to notify the public of the time, place, and nature of the3
public hearing, prior to final adoption of a master plan in order to4
encourage public participation in and awareness of the development of5
such plan and shall accept and consider oral and written public comments6
throughout the process of developing the plan. The plan, with the7
accompanying maps, plats, charts, and descriptive matter, must, after8
consideration of each of the following, where applicable or appropriate,9
show the commission's recommendations for the development of the10
municipality and outlying areas, including:11
(f) A zoning plan for the control of the height, area, bulk, location,12
and use of buildings and premises. Such a zoning plan may protect and13
assure access to appropriate conditions for solar, wind, or other alternate14
energy sources,
INCLUDING GEOTHERMAL ENERGY USED FOR WATER
15
HEATING OR SPACE HEATING OR COOLING IN A SINGLE BUILDING , FOR16
SPACE HEATING FOR MORE THAN ONE BUILDING THROUGH A PIPELINE17
NETWORK, OR FOR ELECTRICITY GENERATION; however, regulations and18
restrictions of the height, number of stories, size of buildings and other19
structures, and the height and location of trees and other vegetation shall20
not apply to existing buildings, structures, trees, or vegetation except for21
new growth on such vegetation.22
23
SECTION 10. In Colorado Revised Statutes, 38-30-168, amend24
(1)(b) as follows:25
38-30-168. Unreasonable restrictions on renewable energy26
generation devices - definitions. (1) (b) As used in this section,27
118
-10- "renewable energy generation device" means: either:1
(I) A solar energy device, as defined in section 38-32.5-100.3; or2
(II) A wind-electric generator that meets the interconnection3
standards established in rules promulgated by the public utilities4
commission pursuant to section 40-2-124; C.R.S. OR5
(III) A
GEOTHERMAL ENERGY DEVICE .6
SECTION 11. In Colorado Revised Statutes, add7
40-2-127.5 as follows:8
40-2-127.5. Community energy funds - community geothermal9
gardens - rules - legislative declaration - definitions - repeal.10
(1) Legislative declaration. T
HE GENERAL ASSEMBLY HEREBY FINDS AND
11
DECLARES THAT:12
(a) L
OCAL COMMUNITIES CAN BENEFIT FROM THE FURTHER
13
DEVELOPMENT OF RENEWABLE ENERGY , ENERGY EFFICIENCY ,14
CONSERVATION, AND ENVIRONMENTAL IMPROVEMENT PROJECTS , AND THE15
GENERAL ASSEMBLY HEREBY ENCOURAGES ELECTRIC UTILITIES TO16
ESTABLISH COMMUNITY ENERGY FUNDS FOR THE DEVELOPMENT OF SUCH17
PROJECTS;18
(b) I
T IS IN THE PUBLIC INTEREST THAT BROADER PARTICIPATION
19
IN GEOTHERMAL ELECTRIC GENERATION BY COLORADO RESIDENTS AND20
COMMERCIAL ENTITIES BE ENCOURAGED BY THE DEVELOPMENT AND21
DEPLOYMENT OF DISTRIBUTED GEOTHERMAL ELECTRIC GENERATING22
FACILITIES KNOWN AS COMMUNITY GEOTHERMAL GARDENS , IN ORDER TO:23
(I) P
ROVIDE COLORADO RESIDENTS AND COMMERCIAL ENTITIES
24
WITH THE OPPORTUNITY TO PARTICIPATE IN GEOTHERMAL ELECTRICITY25
GENERATION;26
(II) A
LLOW RENTERS, LOW-INCOME UTILITY CUSTOMERS , AND
27
118
-11- AGRICULTURAL PRODUCERS TO OWN INTERESTS IN SUCH GEOTHERMAL1
GENERATION FACILITIES;2
(III) A
LLOW INTERESTS IN SUCH GEOTHERMAL GENERATION
3
FACILITIES TO BE PORTABLE AND TRANSFERRABLE ; AND4
(IV) L
EVERAGE COLORADO'S GEOTHERMAL ELECTRICITY
5
GENERATING CAPACITY THROUGH ECONOMIES OF SCALE .6
(2) Definitions. A
S USED IN THIS SECTION, UNLESS THE CONTEXT
7
OTHERWISE REQUIRES, THE DEFINITIONS IN SECTION 40-2-124 APPLY, AND:8
(a) (I) "C
OMMUNITY GEOTHERMAL GARDEN " MEANS A
9
GEOTHERMAL FACILITY THAT PRODUCES ELECTRICITY FROM THE EARTH 'S10
HEAT WITH A NAMEPLATE RATING WITHIN THE RANGE SPECIFIED UNDER11
SUBSECTION (2)(b)(IV) OF THIS SECTION THAT IS LOCATED IN OR NEAR A12
COMMUNITY SERVED BY A QUALIFYING RETAIL UTILITY WHERE THE13
BENEFICIAL USE OF THE ELECTRICITY GENERATED BY THE FACILITY14
BELONGS TO THE SUBSCRIBERS TO THE COMMUNITY GEOTHERMAL15
GARDEN. THERE MUST BE AT LEAST TEN SUBSCRIBERS. THE OWNER OF THE16
COMMUNITY GEOTHERMAL GARDEN MAY BE THE QUALIFYING RETAIL17
UTILITY OR ANY OTHER FOR -PROFIT OR NONPROFIT ENTITY OR18
ORGANIZATION, INCLUDING A SUBSCRIBER ORGANIZATION ORGANIZED19
UNDER THIS SECTION, THAT CONTRACTS TO SELL THE OUTPUT FROM THE20
COMMUNITY GEOTHERMAL GARDEN TO THE QUALIFYING RETAIL UTILITY .21
A
COMMUNITY GEOTHERMAL GARDEN IS DEEMED TO BE "LOCATED ON THE
22
SITE OF CUSTOMER FACILITIES".23
(II) A
COMMUNITY GEOTHERMAL GARDEN CONSTITUTES "RETAIL
24
DISTRIBUTED GENERATION" WITHIN THE MEANING OF SECTION 40-2-124.25
(III) N
OTWITHSTANDING ANY PROVISION OF THIS SECTION OR
26
SECTION 40-2-124 TO THE CONTRARY , A COMMUNITY GEOTHERMAL27
118
-12- GARDEN CONSTITUTES RETAIL DISTRIBUTED GENERATION FOR PURPOSES1
OF A COOPERATIVE ELECTRIC ASSOCIATION 'S COMPLIANCE WITH THE2
APPLICABLE RENEWABLE ENERGY STANDARD UNDER SECTION 40-2-124.3
(IV) A
COMMUNITY GEOTHERMAL GARDEN MUST HAVE A
4
NAMEPLATE RATING OF FIVE MEGAWATTS OR LESS ; EXCEPT THAT THE5
COMMISSION MAY, IN RULES ADOPTED PURSUANT TO SUBSECTION (3)(b)6
OF THIS SECTION, APPROVE THE FORMATION OF A COMMUNITY7
GEOTHERMAL GARDEN WITH A NAMEPLATE RATING OF UP TO TEN8
MEGAWATTS.9
(b) "S
UBSCRIBER" MEANS A RETAIL CUSTOMER OF A QUALIFYING
10
RETAIL UTILITY WHO OWNS A SUBSCRIPTION AND WHO HAS IDENTIFIED ONE11
OR MORE PHYSICAL LOCATIONS TO WHICH THE SUBSCRIPTION IS12
ATTRIBUTED. SUCH PHYSICAL LOCATIONS MUST BE WITHIN THE SERVICE13
TERRITORY OF THE SAME QUALIFYING RETAIL UTILITY AS THE COMMUNITY14
GEOTHERMAL GARDEN . THE SUBSCRIBER MAY CHANGE FROM TIME TO15
TIME THE PREMISES TO WHICH THE COMMUNITY GEOTHERMAL GARDEN16
ELECTRICITY GENERATION IS ATTRIBUTED , SO LONG AS THE PREMISES ARE17
WITHIN THE SAME SERVICE TERRITORY .18
(c) "S
UBSCRIPTION" MEANS A PROPORTIONAL INTEREST IN
19
GEOTHERMAL ELECTRIC GENERATION FACILITIES INSTALLED AT A20
COMMUNITY GEOTHERMAL GARDEN , TOGETHER WITH THE RENEWABLE21
ENERGY CREDITS ASSOCIATED WITH OR ATTRIBUTABLE TO SUCH FACILITIES22
UNDER SECTION 40-2-124. EACH SUBSCRIPTION MUST BE SIZED TO23
REPRESENT AT LEAST ONE KILOWATT OF THE COMMUNITY GEOTHERMAL24
GARDEN'S GENERATING CAPACITY AND TO SUPPLY NO MORE THAN ONE25
HUNDRED TWENTY PERCENT OF THE AVERAGE ANNUAL CONSUMPTION OF26
ELECTRICITY BY EACH SUBSCRIBER AT THE PREMISES TO WHICH THE27
118
-13- SUBSCRIPTION IS ATTRIBUTED, WITH A DEDUCTION FOR THE AMOUNT OF1
ANY EXISTING GEOTHERMAL FACILITIES AT SUCH PREMISES .2
S
UBSCRIPTIONS IN A COMMUNITY GEOTHERMAL GARDEN MAY BE
3
TRANSFERRED OR ASSIGNED TO A SUBSCRIBER ORGANIZATION OR TO ANY4
PERSON OR ENTITY WHO QUALIFIES TO BE A SUBSCRIBER UNDER THIS5
SECTION.6
(3) Subscriber organization - subscriber qualifications -7
transferability of subscriptions. (a) T
HE COMMUNITY GEOTHERMAL
8
GARDEN MAY BE OWNED BY A SUBSCRIBER ORGANIZATION , WHOSE SOLE9
PURPOSE IS BENEFICIALLY OWNING AND OPERATING A COMMUNITY10
GEOTHERMAL GARDEN . THE SUBSCRIBER ORGANIZATION MAY BE ANY11
FOR-PROFIT OR NONPROFIT ENTITY PERMITTED BY COLORADO LAW. THE12
COMMUNITY GEOTHERMAL GARDEN MAY ALSO BE BUILT , OWNED, AND13
OPERATED BY A THIRD PARTY UNDER CONTRACT WITH THE SUBSCRIBER14
ORGANIZATION.15
(b) T
HE COMMISSION SHALL ADOPT RULES AS NECESSARY TO
16
IMPLEMENT THIS SECTION , INCLUDING RULES TO FACILITATE THE17
FINANCING OF SUBSCRIBER-OWNED COMMUNITY GEOTHERMAL GARDENS .18
T
HE RULES MUST INCLUDE:
19
(I) M
INIMUM CAPITALIZATION;
20
(II) T
HE SHARE OF A COMMUNITY GEOTHERMAL GARDEN 'S
21
GEOTHERMAL ELECTRIC GENERATION FACILITIES THAT A SUBSCRIBER22
ORGANIZATION MAY AT ANY TIME OWN IN ITS OWN NAME ; AND23
(III) A
UTHORIZING SUBSCRIBER ORGANIZATIONS TO ENTER INTO
24
LEASES, SALE-AND-LEASEBACK TRANSACTIONS, OPERATING AGREEMENTS,25
AND OTHER OWNERSHIP ARRANGEMENTS WITH THIRD PARTIES .26
(c) I
F A SUBSCRIBER CEASES TO BE A CUSTOMER AT THE PREMISES
27
118
-14- ON WHICH THE SUBSCRIPTION IS BASED BUT , WITHIN A REASONABLE1
PERIOD AS DETERMINED BY THE COMMISSION , BECOMES A CUSTOMER AT2
ANOTHER PREMISES IN THE SERVICE TERRITORY OF THE QUALIFYING3
RETAIL UTILITY AND WITHIN THE GEOGRAPHIC AREA SERVED BY THE4
COMMUNITY GEOTHERMAL GARDEN , THE SUBSCRIPTION CONTINUES IN5
EFFECT BUT THE BILL CREDIT AND OTHER FEATURES OF THE SUBSCRIPTION6
ARE ADJUSTED AS NECESSARY TO REFLECT ANY DIFFERENCES BETWEEN7
THE NEW AND PREVIOUS PREMISES ' CUSTOMER CLASSIFICATION AND8
AVERAGE ANNUAL CONSUMPTION OF ELECTRICITY .9
(4) Standards for construction and operation. T
HE FOLLOWING
10
REQUIREMENTS APPLY TO ANY COMMUNITY GEOTHERMAL GARDEN11
EXCEEDING TWO MEGAWATTS :12
(a) T
HE INITIAL INSTALLATION OF ANY ELECTRICAL EQUIPMENT
13
ASSOCIATED WITH THE COMMUNITY GEOTHERMAL GARDEN IS SUBJECT TO14
FINAL INSPECTION AND APPROVAL IN ACCORDANCE WITH SECTION15
12-115-120.16
(b) F
OLLOWING THE DEVELOPMENT OR ACQUISITION BY A
17
QUALIFYING RETAIL UTILITY OF A COMMUNITY GEOTHERMAL GARDEN IN18
WHICH THE QUALIFYING RETAIL UTILITY RETAINS OWNERSHIP , THE19
QUALIFYING RETAIL UTILITY SHALL EITHER USE ITS OWN EMPLOYEES TO20
OPERATE AND MAINTAIN THE COMMUNITY GEOTHERMAL GARDEN OR21
CONTRACT FOR OPERATION AND MAINTENANCE OF THE COMMUNITY22
GEOTHERMAL GARDEN BY A CONTRACTOR WHOSE EMPLOYEES HAVE23
ACCESS TO AN APPRENTICESHIP PROGRAM REGISTERED WITH THE UNITED24
S
TATES DEPARTMENT OF LABOR 'S OFFICE OF APPRENTICESHIP OR WITH A
25
STATE APPRENTICESHIP COUNCIL REC OGNIZED BY THAT OFFICE ; EXCEPT26
THAT THIS APPRENTICESHIP REQUIREMENT DOES NOT APPLY TO :27
118
-15- (I) THE DESIGN, PLANNING, OR ENGINEERING OF THE1
INFRASTRUCTURE;2
(II) M
ANAGEMENT FUNCTIONS TO OPERATE THE INFRASTRUCTURE ;
3
OR4
(III) A
NY WORK INCLUDED IN A WARRANTY .
5
(5) Community geothermal gardens not subject to regulation.6
N
EITHER THE OWNERS OF NOR THE SUBSCRIBERS TO A COMMUNITY
7
GEOTHERMAL GARDEN ARE CONSIDERED PUBLIC UTILITIES SUBJECT TO8
REGULATION BY THE COMMISSION SOLELY AS A RESULT OF THEIR INTEREST9
IN THE COMMUNITY GEOTHERMAL GARDEN . PRICES PAID FOR10
SUBSCRIPTIONS IN COMMUNITY GEOTHERMAL GARDENS SHALL NOT BE11
SUBJECT TO REGULATION BY THE COMMISSION .12
(6) Purchases of the output from community geothermal13
gardens. (a) (I) E
ACH QUALIFYING RETAIL UTILITY MAY SET FORTH IN ITS
14
PLAN FOR ACQUISITION OF RENEWABLE RESOURCES A PLAN TO PURCHASE15
THE ELECTRICITY AND RENEWABLE ENERGY CREDITS GENERATED FROM16
ONE OR MORE COMMUNITY GEOTHERMAL GARDENS OVER THE PERIOD17
COVERED BY THE PLAN.18
(II) F
OR EACH QUALIFYING RETAIL UTILITY'S COMPLIANCE YEARS
19
COMMENCING IN 2026 AND THEREAFTER, THE COMMISSION SHALL20
DETERMINE THE MINIMUM AND MAXIMUM PURCHASES OF ELECTRICAL21
OUTPUT FROM NEWLY INSTALLED COMMUNITY GEOTHERMAL GARDENS OF22
DIFFERENT OUTPUT CAPACITY THAT THE QUALIFYING RETAIL UTILITY MAY23
PLAN TO ACQUIRE. IN ADDITION, AS NECESSARY AND APPROPRIATE , THE24
COMMISSION SHALL FORMULATE AND IMPLEMENT POLICIES CONSISTENT25
WITH THIS SECTION THAT SIMULTANEOUSLY ENCOURAGE :26
(A) T
HE OWNERSHIP BY CUSTOMERS OF SUBSCRIPTIONS IN
27
118
-16- COMMUNITY GEOTHERMAL GARDENS AND OF OTHER FORMS OF1
DISTRIBUTED GENERATION, TO THE EXTENT THE COMMISSION FINDS THERE2
TO BE CUSTOMER DEMAND FOR SUCH OWNERSHIP ;3
(B) O
WNERSHIP IN COMMUNITY GEOTHERMAL GARDENS BY
4
RESIDENTIAL RETAIL CUSTOMERS AND AGRICULTURAL PRODUCERS ,5
INCLUDING LOW-INCOME CUSTOMERS, TO THE EXTENT THE COMMISSION6
FINDS THERE TO BE DEMAND FOR SUCH OWNERSHIP ;7
(C) T
HE DEVELOPMENT OF COMMUNITY GEOTHERMAL GARDENS
8
WITH ATTRIBUTES THAT THE COMMISSION FINDS RESULT IN LOWER9
OVERALL TOTAL COSTS FOR THE QUALIFYING RETAIL UTILITY 'S10
CUSTOMERS;11
(D) S
UCCESSFUL FINANCING AND OPERATION OF COMMUNITY
12
GEOTHERMAL GARDENS OWNED BY SUBSCRIBER ORGANIZATIONS ; AND13
(E) T
HE ACHIEVEMENT OF THE GOALS AND OBJECTIVES OF SECTION
14
40-2-124.15
(b) (I) (A) T
HE OUTPUT FROM A COMMUNITY GEOTHERMAL
16
GARDEN MUST BE SOLD ONLY TO THE QUALIFYING RETAIL UTILITY SERVING17
THE GEOGRAPHIC AREA WHERE THE COMMUNITY GEOTHERMAL GARDEN18
IS LOCATED.19
(B) O
NCE A COMMUNITY GEOTHERMAL GARDEN IS PART OF A
20
QUALIFYING RETAIL UTILITY'S PLAN FOR ACQUISITION OF RENEWABLE21
RESOURCES, AS APPROVED BY THE COMMISSION, THE COMMISSION SHALL22
INITIATE A PROCEEDING, OR CONSIDER IN AN ACTIVE PROCEEDING , TO23
DETERMINE WHETHER THE QUALIFYING RETAIL UTILITY MUST PURCHASE24
ALL OF THE ELECTRICITY AND RENEWABLE ENERGY CREDITS GENERATED25
BY THE COMMUNITY GEOTHERMAL GARDEN OR WHETHER A SUBSCRIBER26
MAY, UPON BECOMING A SUBSCRIBER, CHOOSE TO RETAIN OR SELL TO THE27
118
-17- QUALIFYING RETAIL UTILITY THE SUBSCRIBER 'S RENEWABLE ENERGY1
CREDITS.2
(C) T
HE AMOUNT OF ELECTRICITY AND RENEWABLE ENERGY
3
CREDITS GENERATED BY EACH COMMUNITY GEOTHERMAL GARDEN IS4
DETERMINED BY A PRODUCTION METER INSTALLED BY THE QUALIFYING5
RETAIL UTILITY OR THIRD-PARTY SYSTEM OWNER AND PAID FOR BY THE6
OWNER OF THE COMMUNITY GEOTHERMAL GARDEN .7
(II) T
HE PURCHASE OF THE OUTPUT OF A COMMUNITY
8
GEOTHERMAL GARDEN BY A QUALIFYING RETAIL UTILITY TAKES THE FORM9
OF A NET METERING CREDIT AGAINST THE QUALIFYING RETAIL UTILITY 'S10
ELECTRIC BILL TO EACH COMMUNITY GEOTHERMAL GARDEN SUBSCRIBER11
AT THE PREMISES SET FORTH IN THE SUBSCRIBER'S SUBSCRIPTION. THE NET12
METERING CREDIT IS CALCULATED BY MULTIPLYING THE SUBSCRIBER 'S13
SHARE OF THE ELECTRICITY PRODUCTION FROM THE COMMUNITY14
GEOTHERMAL GARDEN BY THE QUALIFYING RETAIL UTILITY 'S TOTAL15
AGGREGATE RETAIL RATE AS CHARGED TO THE SUBSCRIBER , MINUS A16
REASONABLE CHARGE AS DETERMINED BY THE COMMISSION TO COVER THE17
UTILITY'S COSTS OF DELIVERING TO THE SUBSCRIBER 'S PREMISES THE18
ELECTRICITY GENERATED BY THE COMMUNITY GEOTHERMAL GARDEN ,19
INTEGRATING THE GEOTHERMAL GENERATION WITH THE UTILITY 'S20
SYSTEM, AND ADMINISTERING THE COMMUNITY GEOTHERMAL GARDEN 'S21
CONTRACTS AND NET METERING CREDITS . THE COMMISSION SHALL ENSURE22
THAT THIS CHARGE DOES NOT REFLECT COSTS THAT ARE ALREADY23
RECOVERED BY THE UTILITY FROM THE SUBSCRIBER THROUGH OTHER24
CHARGES. IF, AND TO THE EXTENT THAT, A SUBSCRIBER'S NET METERING25
CREDIT EXCEEDS THE SUBSCRIBER'S ELECTRIC BILL IN ANY BILLING PERIOD,26
THE NET METERING CREDIT IS CARRIED FORWARD AND APPLIED AGAINST27
118
-18- FUTURE BILLS. THE QUALIFYING RETAIL UTILITY AND THE OWNER OF THE1
COMMUNITY GEOTHERMAL GARDEN MUST AGREE ON WHETHER THE2
PURCHASE OF THE RENEWABLE ENERGY CREDITS FROM SUBSCRIBERS WILL3
BE ACCOMPLISHED THROUGH A CREDIT ON EACH SUBSCRIBER 'S4
ELECTRICITY BILL OR BY A PAYMENT TO THE OWNER OF THE COMMUNITY5
GEOTHERMAL GARDEN .6
(c) T
HE OWNER OF THE COMMUNITY GEOTHERMAL GARDEN MUST
7
PROVIDE REAL-TIME PRODUCTION DATA TO THE QUALIFYING RETAIL8
UTILITY TO FACILITATE INCORPORATION OF THE COMMUNITY GEOTHERMAL9
GARDEN INTO THE UTILITY'S OPERATION OF ITS ELECTRIC SYSTEM AND TO10
FACILITATE THE PROVISION OF NET METERING CREDITS .11
(d) T
HE OWNER OF THE COMMUNITY GEOTHERMAL GARDEN IS
12
RESPONSIBLE FOR PROVIDING TO THE QUALIFYING RETAIL UTILITY , ON A13
MONTHLY BASIS AND WITHIN REASONABLE PERIODS SET BY THE14
QUALIFYING RETAIL UTILITY, THE PERCENTAGE SHARES THAT SHOULD BE15
USED TO DETERMINE THE NET METERING CREDIT TO EACH SUBSCRIBER . IF16
THE ELECTRICITY OUTPUT OF THE COMMUNITY GEOTHERMAL GARDEN IS17
NOT FULLY SUBSCRIBED , THE QUALIFYING RETAIL UTILITY SHALL18
PURCHASE THE UNSUBSCRIBED RENEWABLE ENERGY AND THE RENEWABLE19
ENERGY CREDITS AT A RATE EQUAL TO THE QUALIFYING RETAIL UTILITY 'S20
AVERAGE HOURLY INCREMENTAL COST OF ELECTRICITY SUPPLY OVER THE21
IMMEDIATELY PRECEDING CALENDAR YEAR .22
(e) I
F A QUALIFYING RETAIL UTILITY INCLUDES A PLAN TO
23
PURCHASE THE ELECTRICITY AND RENEWABLE ENERGY CREDITS24
GENERATED BY ONE OR MORE COMMUNITY GEOTHERMAL GARDENS , THEN25
THE QUALIFYING RETAIL UTILITY SHALL SET FORTH IN ITS PLAN FOR26
ACQUISITION OF RENEWABLE RESOURCES A PROPOSAL FOR INCLUDING27
118
-19- LOW-INCOME CUSTOMERS AS SUBSCRIBERS TO A COMMUNITY1
GEOTHERMAL GARDEN , IF POSSIBLE. THE UTILITY MAY GIVE PREFERENCE2
TO COMMUNITY GEOTHERMAL GARDENS THAT HAVE LOW -INCOME3
SUBSCRIBERS.4
(f) Q
UALIFYING RETAIL UTILITIES ARE ELIGIBLE FOR THE
5
INCENTIVES AND SUBJECT TO THE OWNERSHIP LIMITATIONS SET FORTH IN6
SECTION 40-2-124 (1)(f) FOR UTILITY INVESTMENTS IN COMMUNITY7
GEOTHERMAL GARDENS AND MAY RECOVER THROUGH RATES A MARGIN ,8
IN AN AMOUNT DETERMINED BY THE COMMISSION , ON ALL ENERGY AND9
RENEWABLE ENERGY CREDITS PURCHASED FROM COMMUNITY10
GEOTHERMAL GARDENS . SUCH INCENTIVE PAYMENTS ARE EXCLUDED11
FROM THE COST ANALYSIS REQUIRED BY SECTION 40-2-124 (1)(g).12
(6) N
OTHING IN THIS SECTION WAIVES OR SUPERSEDES THE RETAIL
13
RATE IMPACT LIMITATIONS IN SECTION 40-2-124 (1)(g). UTILITY14
EXPENDITURES FOR UNSUBSCRIBED ENERGY AND RENEWABLE ENERGY15
CREDITS GENERATED BY COMMUNITY GEOTHERMAL GARDENS MUST BE16
INCLUDED IN THE CALCULATIONS OF RETAIL RATE IMPACT REQUIRED BY17
THAT SECTION.18
(7) Applicability to cooperative electric associations and19
municipally owned utilities. T
HIS SECTION SHALL NOT APPLY TO
20
COOPERATIVE ELECTRIC ASSOCIATIONS OR TO MUNICIPALLY OWNED21
UTILITIES.22
SECTION 12. In Colorado Revised Statutes, 25-7-105, amend23
(1)(e)(VIII)(H) as follows:24
25-7-105. Duties of commission - rules - legislative declaration25
- definitions. (1) Except as provided in sections 25-7-130 and 25-7-131,26
the commission shall promulgate rules that are consistent with the27
118
-20- legislative declaration set forth in section 25-7-102 and necessary for the1
proper implementation and administration of this article 7, including:2
(e) (VIII) (H) In verifying clean energy plans or a wholesale3
generation and transmission cooperative electric resource plan submitted4
in accordance with subsection (1)(e)(VIII)(I) of this section, the division5
shall prevent double counting of emission reductions among utilities and6
shall consider electricity generated by renewable energy resources as7
having zero greenhouse gas emissions only if: The electricity is8
accompanied by any associated renewable energy credit, and the9
renewable energy credit is retired on behalf of the utility's customers in10
the year generated; or the electricity is generated by retail distributed11
generation, as defined in sections 40-2-124 (1)(a)(VIII), and 40-2-12712
(2)(b)(I)(A) and (2)(b)(I)(B),
AND 40-2-127.5 (2)(a)(I) AND (2)(a)(II), and
13
the retail customer retains the renewable energy credit as part of a14
voluntary renewable energy program.15
SECTION 13. In Colorado Revised Statutes, 30-20-602, amend16
(4.3)(b) as follows:17
30-20-602. Definitions. As used in this part 6, unless the context18
otherwise requires:19
(4.3) "Qualified community location" means:20
(b) If the affected local electric utility is an investor-owned utility,21
a community solar garden, as that term is defined in section 40-2-127 (2),22
C.R.S. If House Bill 10-1342 does not take effect, there shall be no23
qualified community locations in the service territories of investor-owned24
utilities. OR A COMMUNITY GEOTHERMAL GARDEN AS THAT TERM IS25
DEFINED IN SECTION 42-2-127.5 (2).26
SECTION 14. In Colorado Revised Statutes, 31-25-501, amend27
118
-21- (3.5)(b) as follows:1
31-25-501. Definitions. As used in this part 5, unless the context2
otherwise requires:3
(3.5) "Qualified community location" means:4
(b) If the affected local electric utility is an investor-owned utility,5
a community solar garden as that term is defined in section 40-2-127 (2),6
C.R.S. If House Bill 10-1342 does not take effect, there shall be no7
qualified community locations in the service territories of investor-owned8
utilities. OR A COMMUNITY GEOTHERMAL GARDEN AS THAT TERM IS9
DEFINED IN SECTION 42-2-127.5 (2).10
SECTION 15. In Colorado Revised Statutes, 40-2-129, amend11
(3) as follows:12
40-2-129. New resource acquisitions - factors in determination13
- local employment - "best value" metrics - performance audit.14
(3) The provisions of this section regarding "best value" employment15
metrics do not apply to projects involving retail distributed generation, as16
defined in section 40-2-124 (1)(a)(VIII), or 40-2-127 (2)(b)(I)(B), OR17
40-2-127.5 (2)(b)(II).18
SECTION 16. In Colorado Revised Statutes, 40-9.5-106, amend19
(2) as follows:20
40-9.5-106. Prohibited acts. (2) No cooperative electric21
association, as to rates, charges, service, or facilities or as to any other22
matter, shall make or grant any preference or advantage to any23
corporation or person or subject any corporation or person to any24
prejudice or disadvantage. No cooperative electric association shall25
establish or maintain any unreasonable difference as to rates, charges,26
service, or facilities or as to any other matter, either between localities or27
118
-22- between any class of service. Notwithstanding section 40-6-108 (1)(b),1
any complaint arising out of this subsection (2) signed by one or more2
customers of such association shall be resolved by the public utilities3
commission in accordance with the hearing and enforcement procedures4
established in articles 6 and 7 of this title. A cooperative electric5
association may approve any reasonable rate, charge, service,6
classification, or facility that establishes a graduated rate for increased7
energy consumption, for energy conservation and energy efficiency8
purposes, by residential customers that is revenue-neutral for the class,9
where revenue includes margins, expenses, riders, or charges as approved10
by the cooperative electric association. The implementation of such rate,11
charge, service, classification, or facility by a cooperative electric12
association shall not be deemed to subject any person or corporation to13
any prejudice, disadvantage, or undue discrimination. In adopting such14
rate, a cooperative electric association shall give due consideration to the15
impact of such rates on low-income customers. A cooperative electric16
association may utilize a community energy fund as contemplated by17
section 40-2-127 SECTIONS 40-2-127 AND 40-2-127.5 for energy18
efficiency, energy conservation, weatherization, and renewable energy19
purposes. A cooperative electric association shall not apply such rate to20
consumers that have single meters that record energy consumption for21
combined residential and agricultural uses.22
SECTION 17. Appropriation. For the 2022-23 state fiscal year,23
$15,000 is appropriated to the office of the governor for use by the24
colorado energy office. This appropriation is from the general fund. To25
implement this act, the office may use this appropriation for program26
administration.27
118
-23- SECTION 18. Act subject to petition - effective date. This act1
takes effect at 12:01 a.m. on the day following the expiration of the2
ninety-day period after final adjournment of the general assembly; except3
that, if a referendum petition is filed pursuant to section 1 (3) of article V4
of the state constitution against this act or an item, section, or part of this5
act within such period, then the act, item, section, or part will not take6
effect unless approved by the people at the general election to be held in7
November 2022 and, in such case, will take effect on the date of the8
official declaration of the vote thereon by the governor.9
118
-24-