Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 22-0335.01 Jennifer Berman x3286
SENATE BILL 22-138
Senate Committees House Committees
Transportation & Energy
Finance
Appropriations
A BILL FOR AN ACT
C
ONCERNING MEASURES TO PROMOTE REDUCTIONS IN GREENHOUSE101
GAS EMISSIONS IN COLORADO, AND, IN CONNECTION
102
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
.)
Section 1 of the bill requires each insurance company issued a
certificate of authority to transact insurance business to prepare and file
an annual report with the insurance commissioner providing a
climate-risk assessment for the insurance company's investment portfolio
SENATE
3rd Reading Unamended
April 22, 2022
SENATE
Amended 2nd Reading
April 21, 2022
SENATE SPONSORSHIP
Hansen and Priola, Buckner, Fenberg, Fields, Gonzales, Jaquez Lewis, Lee, Moreno,
Story
HOUSE SPONSORSHIP
Valdez A. and McCormick,
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. from the previous 12 months. The commissioner of insurance is required
to post the reports on the division of insurance's website. Section 1
defines "climate-risk assessment" as a determination of the economic and
business risks that climate change poses to an investment.
Section 2 requires the board of trustees of the public employees'
retirement association (PERA board) to prepare a similar annual report
and post it on the PERA board's website.
Section 3 updates the statewide greenhouse gas (GHG) emission
reduction goals to add a 40% reduction goal for 2028 compared to 2005
GHG pollution levels and a 75% reduction goal for 2040 compared to
2005 GHG pollution levels.
Section 4 defines a small off-road engine as a gasoline-powered
engine of 50 horsepower or less used to fuel small off-road equipment
like lawn mowers and leaf blowers. Section 4 phases out the use of small
off-road engines by prohibiting their sale in nonattainment areas of the
state on or after January 1, 2030, and by providing financial incentives to
promote the replacement of small off-road engines with electric-powered,
small off-road equipment before 2030.
Section 11 establishes a state income tax credit in an amount equal
to 30% of the purchase price for new, electric-powered, small off-road
equipment for purchases made in income tax years 2023 through 2029.
Section 6 gives the oil and gas conservation commission authority
over class VI injection wells used for sequestration of GHG, including
through the issuance and enforcement of permits.
Section 7 requires the commissioner of agriculture or the
commissioner's designee, in consultation with the Colorado energy office
and the air quality control commission, to conduct a study examining
carbon reduction and sequestration opportunities in the agricultural sector
in the state, including the potential development of certified carbon offset
programs or credit instruments. On or before December 15, 2022, the
commissioner of agriculture or the commissioner's designee is required
to submit a report summarizing the study, including any legislative
recommendations, to the general assembly.
In support of the use of agrivoltaics, which is the colocation of
solar energy generation facilities on a parcel of land with agricultural
activities, section 8 authorizes the Colorado agriculture value-added
development board (board) to provide financing, including grants or
loans, for agricultural research on the use of agrivoltaics. For a research
project for which the board awards money to study the use of agrivoltaics,
sections 5 and 8 require the director of the division of parks and wildlife
to consult on the research project regarding the wildlife impacts of
agrivoltaic use.
Section 9 authorizes the board to seek, accept, and expend gifts,
grants, and donations, including donations of in-kind resources such as
solar panels, for use in agricultural research projects. Section 9 also
138
-2- updates the statutory definition of "agrivoltaics" to list additional
agricultural activities on the parcel of land on which solar panel
generation facilities may be colocated, including animal husbandry, cover
cropping for soil health, and carbon sequestration.
Section 10 amends the statutory definition of "solar energy
facility" used in determining the valuation of public utilities for property
tax purposes to include agrivoltaics.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 10-3-244 as2
follows:3
10-3-244. Investment climate-risk assessment - reporting -
4
rules - definition. (1) T
HE COMMISSIONER SHALL ADOPT RULES
5
REQUIRING THAT, BEGINNING IN 2023, INSURERS ISSUED A CERTIFICATE OF6
AUTHORITY TO TRANSACT BUSINESS PURSUANT TO PART 1 OF THIS ARTICLE7
3
THAT REPORT MORE THAN ONE HUNDRED MILLION DOLLARS ON THEIR
8
ANNUAL NAIC SCHEDULE T FILING, OR SUCH OTHER THRESHOLD DOLLAR9
AMOUNT THAT THE NAIC ESTABLISHES IN SUBSEQUENT YEARS ,10
PARTICIPATE IN AND COMPLETE THE NAIC'S ANNUAL "INSURER CLIMATE11
R
ISK DISCLOSURE SURVEY", OR SUCH OTHER SURVEY OR REPORTING
12
MECHANISM THAT THE NAIC REQUIRES IN SUBSEQUENT YEARS . IF AN13
INSURER REPORTS LESS THAN ONE HUNDRED MILLION DOLLARS ON ITS14
ANNUAL NAIC SCHEDULE T FILING, OR SUCH OTHER THRESHOLD DOLLAR15
AMOUNT THAT THE NAIC ESTABLISHES IN SUBSEQUENT YEARS , THE16
INSURER MAY PARTICIPATE IN AND COMPLETE THE SURVEY VOLUNTARILY .17
(2) A
S USED IN THIS SECTION, "NAIC" MEANS THE NATIONAL
18
A
SSOCIATION OF INSURANCE COMMISSIONERS, AN ORGANIZATION OF
19
INSURANCE REGULATORS FROM THE FIFTY STATES , THE DISTRICT OF20
C
OLUMBIA, AND THE FOUR UNITED STATES TERRITORIES.
21
SECTION 2. In Colorado Revised Statutes, amend 24-51-220 as22
138-3- follows:1
24-51-220. Reports - periodic reports to general assembly -2
inclusion of climate risk assessment in annual stewardship report.3
(1) The association shall provide SUBMIT a report to the general assembly4
on January 1, 2016, and every five years thereafter, regarding the5
economic impact of the 2010 legislative changes to the annual increase6
provisions on the retirees and benefit recipients as compared to the actual7
rate of inflation and the progress made toward eliminating the unfunded8
liabilities of each division of the association.9
(2) O
N AND AFTER JANUARY 1, 2024, THE ASSOCIATION SHALL
10
INCLUDE, AS PART OF ITS ANNUAL INVESTMENT STEWARDSHIP REPORT11
THAT IT POSTS ON ITS WEBSITE, A DESCRIPTION OF:12
(a) T
HE ASSOCIATION'S PROCESS FOR IDENTIFYING CLIMATE
13
CHANGE-RELATED RISKS AND ASSESSING THE FINANCIAL IMPACT THAT THE14
CLIMATE CHANGE -RELATED RISKS HAVE ON THE ASSOCIATION 'S15
OPERATIONS;16
(b) T
HE CURRENT OR ANTICIPATED FUTURE RISKS THAT CLIMATE
17
CHANGE POSES TO THE ASSOCIATION 'S INVESTMENT PORTFOLIO , THE18
IMPACT THAT CLIMATE CHANGE HAS ON THE ASSOCIATION 'S INVESTMENT19
STRATEGIES, AND ANY STRATEGY CHANGES THAT THE ASSOCIATION HAS20
IMPLEMENTED IN RESPONSE TO SUCH IMPACT ;21
(c) A
CTIONS THAT THE ASSOCIATION IS TAKING TO MANAGE THE
22
RISKS THAT CLIMATE CHANGE POSES TO THE ASSOCIATION 'S OPERATIONS;23
AND24
(d) T
HE ASSOCIATION'S USE AND CONSIDERATION OF ANY
25
CLIMATE-RELATED REPORTING THAT THE FEDERAL SECURITIES AND26
EXCHANGE COMMISSION REQUIRES .27
138
-4- SECTION 3. In Colorado Revised Statutes, 25-6.5-201, amend1
(2); and add (3) as follows:2
25-6.5-201. Definitions. As used in this part 2, unless the context3
otherwise requires:4
(2) (a) "Pollution control equipment" means any personal5
property, including, but not limited to, equipment, machinery, devices,6
systems, buildings, or structures, that is installed, constructed, or used in7
or as a part of a facility that creates a product in a manner that generates8
less pollution by the utilization of an alternative manufacturing or9
generating technology.10
(b) "Pollution control equipment" includes, but is not limited to:11
(I) Gas or wind turbines and associated compressors or12
equipment; or13
(II) Solar, thermal, or photovoltaic equipment;
OR
14
(III) W
ASTEWATER THERMAL ENERGY EQUIPMENT .
15
(3) "W
ASTEWATER THERMAL ENERGY EQUIPMENT " MEANS
16
EQUIPMENT USED AS PART OF A SYSTEM THAT USES THERMAL ENERGY IN17
WASTEWATER TO GENERATE ELECTRICITY , TO HEAT OR COOL A SPACE, OR18
FOR ANY OTHER USEFUL THERMAL PURPOSE .19
SECTION 4. In Colorado Revised Statutes, 25-7-102, amend20
(2)(g) as follows:21
25-7-102. Legislative declaration. (2) It is further declared that:22
(g) (I) Accordingly, Colorado shall strive to increase renewable23
energy generation and eliminate statewide greenhouse gas pollution by24
the middle of the twenty-first century and have goals of achieving, at a25
minimum:26
(A) A twenty-six percent reduction in statewide greenhouse gas27
138
-5- pollution by 2025;1
2
(B) A fifty percent reduction in statewide greenhouse gas3
pollution by 2030;4
(C) A
SIXTY-FIVE PERCENT REDUCTION IN STATEWIDE
5
GREENHOUSE GAS POLLUTION BY 2035;6
(D) A
SEVENTY-FIVE PERCENT REDUCTION IN STATEWIDE7
GREENHOUSE GAS POLLUTION BY 2040; and8
(E) A ninety percent reduction in statewide greenhouse gas9
pollution by 2050.10
(II) The reductions identified in this subsection (2)(g) are11
measured relative to 2005 statewide greenhouse gas pollution levels.12
SECTION 5. In Colorado Revised Statutes, 25-7-105, amend
13
(1)(e)(XIII) introductory portion as follows:14
25-7-105. Duties of commission - rules - legislative declaration15
- definitions. (1) Except as provided in sections 25-7-130 and 25-7-131,16
the commission shall promulgate rules that are consistent with the17
legislative declaration set forth in section 25-7-102 and necessary for the18
proper implementation and administration of this article 7, including:19
(e) (XIII) In implementing this subsection (1)(e), the commission20
shall adopt rules to reduce statewide greenhouse gas emissions from the21
industrial and manufacturing sector in the state by at least twenty percent22
by 2030 below the 2015 baseline established pursuant to section 25-7-14023
(2)(a)(II), taking into account the factors set out in subsections (1)(e)(II)24
to (1)(e)(VI) of this section. The rules must include protections for25
disproportionately impacted communities and prioritize emission26
reductions that will reduce emissions of co-pollutants that adversely27
138
-6- affect disproportionately impacted communities, be designed to accelerate1
near-term reductions, and secure meaningful emission reductions from2
this sector to be realized beginning no later than September 30, 2024. O
N
3
OR BEFORE AUGUST 1, 2023, THE COMMISSION SHALL ADOPT RULES TO4
REDUCE GREENHOUSE GAS EMISSIONS FROM , AT A MINIMUM, SOURCES5
WITHIN THE INDUSTRIAL AND MANUFACTURING SECTOR THAT REPORTED6
GREENHOUSE GAS EMISSIONS GREATER THAN TWENTY -FIVE THOUSAND7
METRIC TONS FROM CALENDAR YEAR 2020, PURSUANT TO PART A OF 58
CCR
1001-26, KNOWN AS "REGULATION NUMBER 22", OR ANY
9
ANALOGOUS SUCCESSOR RULE . The rules must:10
11
SECTION 6. In Colorado Revised Statutes, 33-1-110, add (9) as12
follows:13
33-1-110. Duties of the director of the division. (9) F
OR14
RESEARCH PROJECTS FOR WHICH THE COLORADO AGRICULTURAL15
VALUE-ADDED DEVELOPMENT BOARD AWARDS MONEY PURSUANT TO16
SECTION 35-75-204 (1)(a)(II) TO STUDY THE USE OF AGRIVOLTAICS , AS17
DEFINED IN SECTION 35-75-205 (1)(c), THE DIRECTOR OR THE DIRECTOR'S18
DESIGNEE SHALL CONSULT ON THE RESEARCH PROJECT REGARDING THE19
WILDLIFE IMPACTS OF AGRIVOLTAIC USE.20
SECTION 7.
In Colorado Revised Statutes, 34-60-106, amend21
(9)(a); and add (9)(c) as follows:22
34-60-106. Additional powers of commission - rules -23
definitions. (9) (a) Notwithstanding section 34-60-120 or any other24
provision of law,
SUBJECT TO SUBSECTION (9)(c) OF THIS SECTION AND
25
ONLY AFTER THE GOVERNOR AND COMMISSION HAVE MADE AN26
AFFIRMATIVE DETERMINATION THAT THE STATE HAS SUFFICIENT27
138
-7- RESOURCES NECESSARY TO ENSURE THE SAFE AND EFFECTIVE REGULATION1
OF THE SEQUESTRATION OF GREENHOUSE GASES IN ACCORDANCE WITH2
FINDINGS FROM THE COMMISSION 'S STUDY CONDUCTED PURSUANT TO3
SUBSECTION (9)(b) OF THIS SECTION, the commission, as to class II AND4
CLASS VI injection wells classified in 40 CFR 144.6, may perform all acts5
for the purpose PURPOSES of protecting underground sources of drinking6
water in accordance with state programs authorized by 42 U.S.C. sec.7
300f et seq., and regulations under those sections, as amended,
AND8
ENSURING THE SAFE AND EFFECTIVE SEQUESTRATION OF GREENHOUSE9
GASES, AS THAT TERM IS DEFINED IN SECTION 25-7-140 (6).
10
(c) (I) T
HE COMMISSION MAY SEEK CLASS VI INJECTION WELL
11
PRIMACY UNDER THE FEDERAL "SAFE DRINKING WATER ACT", 42 U.S.C.12
SEC. 300f ET SEQ., AS AMENDED, AFTER OBTAINING AND PUBLICLY13
DETERMINING THAT THE COMMISSION HAS THE NECESSARY RESOURCES14
FOR THE APPLICATION OUTLINED IN THE COMMISSION 'S STUDY PERFORMED15
PURSUANT TO SUBSECTION (9)(b) OF THIS SECTION.16
(II) T
HE COMMISSION MAY ISSUE AND ENFORCE PERMITS AS
17
NECESSARY FOR THE PURPOSE SET FORTH IN THIS SUBSECTION (9)(c) AFTER18
THE DETERMINATION SET FORTH IN SUBSECTION (9)(c)(I) OF THIS SECTION19
HAS BEEN MADE AND THE REQUIREMENTS SET FORTH IN SUBSECTION (9)(a)20
OF THIS SECTION HAVE BEEN SATISFIED . IN ISSUING AND ENFORCING21
PERMITS PURSUANT TO THIS SUBSECTION (9)(c), THE COMMISSION SHALL22
ENSURE THAT THE PERMITTING OF CLASS VI INJECTION WELLS DOES NOT23
ADVERSELY AND DISPROPORTIONATELY AFFECT THE HEALTH AND24
WELL-BEING OF DISPROPORTIONATELY IMPACTED COMMUNITIES .25
(III) (A) T
HE COMMISSION SHALL REQUIRE EACH OPERATOR OF A
26
CLASS VI INJECTION WELL TO PROVIDE ADEQUATE FINANCIAL ASSURANCE27
138
-8- DEMONSTRATING THAT THE OPERATOR IS FINANCIALLY CAPABLE OF1
FULFILLING EVERY OBLIGATION IMPOSED ON THE OPERATOR UNDER THIS2
ARTICLE 60 AND UNDER RULES THAT THE COMMISSION ADOPTS PURSUANT3
TO THIS ARTICLE 60.4
(B) T
HE FINANCIAL ASSURANCE REQUIRED UNDER THIS
5
SUBSECTION (9)(c)(III) MUST COVER THE COST OF CORRECTIVE ACTION ,6
INJECTION WELL PLUGGING , POST-INJECTION SITE CARE, AND SITE7
CLOSURE, AS THOSE TERMS ARE DEFINED IN 40 CFR 146.81, AND THE COST8
OF ANY EMERGENCY AND REMEDIAL RESPONSE .9
(C) T
HE COMMISSION SHALL ADOPT RULES REQUIRING THAT
10
FINANCIAL ASSURANCE COVER THE COST OF OBLIGATIONS THAT ARE IN11
ADDITION TO THE OBLIGATIONS LISTED IN SUBSECTION (9)(c)(III)(B) OF12
THIS SECTION IF THE ADDITIONAL OBLIGATIONS ARE REASONABLY13
ASSOCIATED WITH CLASS VI INJECTION WELLS AND LOCATIONS.14
(D) A
N OPERATOR SHALL MAINTAIN THE FINANCIAL ASSURANCE
15
REQUIRED UNDER THIS SUBSECTION (9)(c)(III) OR UNDER ANY RULES16
ADOPTED PURSUANT TO THIS SUBSECTION (9)(c)(III) UNTIL THE17
COMMISSION APPROVES SITE CLOSURE, AS SPECIFIED IN RULES ADOPTED BY18
THE COMMISSION. COMMISSION APPROVAL OF A SITE CLOSURE DOES NOT19
OTHERWISE MODIFY AN OPERATOR 'S RESPONSIBILITY TO COMPLY WITH20
APPLICABLE LAWS.21
(E) F
INANCIAL ASSURANCE PROVIDED UNDER THIS SUBSECTION
22
(9)(c)(III)
MAY BE IN THE FORM OF A SURETY BOND , INSURANCE, OR ANY
23
OTHER INSTRUMENT THAT THE COMMISSION , BY RULE, DEEMS24
SATISFACTORY.25
(IV) A
S USED IN THIS SUBSECTION (9), "DISPROPORTIONATELY
26
IMPACTED COMMUNITY " HAS THE MEANING SET FORTH IN SECTION27
138
-9- 24-4-109 (2)(b)(II).1
SECTION 8. In Colorado Revised Statutes, add 35-1-116 as2
follows:3
35-1-116. Study of carbon reduction and sequestration4
opportunities in agriculture and land management - definition -5
reporting - rules. (1) (a) I
N CONSULTATION
WITH THE COLORADO6
ENERGY OFFICE CREATED IN SECTION 24-38.5-101 AND THE AIR QUALITY7
CONTROL COMMISSION CREATED IN SECTION 25-7-104 (1), THE8
COMMISSIONER OR THE COMMISSIONER 'S DESIGNEE, IN CONSULTATION9
WITH AN INSTITUTION OF HIGHER EDUCATION WITH EXPERTISE IN CLIMATE10
CHANGE MITIGATION , ADAPTATION BENEFITS , AND OTHER11
ENVIRONMENTAL BENEFITS RELATED TO AGRICULTURAL RESEARCH , SHALL12
CONDUCT A STUDY TO EXAMINE CARBON REDUCTION AND SEQUESTRATION13
OPPORTUNITIES IN THE AGRICULTURAL SECTOR AND IN LAND14
MANAGEMENT IN THE STATE, INCLUDING AN INVESTIGATION INTO THE15
POTENTIAL FOR CREATING AND OFFERING A CERTIFIED CARBON OFFSET16
PROGRAM AND CREDIT INSTRUMENTS TO PROVIDE FUNGIBLE CARBON17
OFFSETS FOR AGRICULTURAL PRODUCERS AND IN LAND MANAGEMENT . A18
CERTIFIED CARBON OFFSET PROGRAM AND CREDIT INSTRUMENTS OFFERED19
MUST REFLECT REAL , ADDITIONAL , QUANTIFIABLE, PERMANENT,20
VERIFIABLE, AND ENFORCEABLE REDUCTIONS IN GREENHOUSE GAS21
EMISSIONS THAT ARE EQUIVALENT TO THE OFFSETS PROVIDED .22
(b) C
ARBON OFFSETS DEVELOPED FOR AGRICULTURAL PRODUCERS
23
IN ACCORDANCE WITH THIS SECTION MAY BE :24
(I) I
NCORPORATED INTO THE AIR QUALITY CONTROL COMMISSION 'S
25
RULES, INCLUDING RULES ADOPTED UNDER SECTION 25-7-105 (1)(e) ,SUCH26
AS RULES CONCERNING COORDINATION WITH OTHER JURISDICTIONS27
138
-10- PURSUANT TO THE AUTHORITY GRANTED IN , AND THE CONSIDERATIONS1
REQUIRED UNDER, SECTION 25-7-105 (1)(e)(V); AND2
(II) U
SED AS COMPLIANCE INSTRUMENTS BY A SOURCE REGULATED
3
UNDER ARTICLE 7 OF TITLE 25 WITH EMISSION REDUCTION OBLIGATIONS4
THAT ENSURE THAT THE SOURCE 'S OVERALL, ABSOLUTE EMISSIONS5
DECLINE CONSISTENT WITH THE STATEWIDE GREENHOUSE GAS EMISSION6
REDUCTION GOALS SET FORTH IN SECTION 25-7-102 (2)(g).7
(c) (I) T
HE STUDY SHALL IDENTIFY POLICY MECHANISMS TO
8
MITIGATE THE IMPACTS THAT REGULATED SOURCES ' USE OF CARBON9
OFFSETS HAVE ON DISPROPORTIONATELY IMPACTED COMMUNITIES .10
(II) A
S USED IN THIS SUBSECTION (1)(c), "DISPROPORTIONATELY
11
IMPACTED COMMUNITY " HAS THE MEANING SET FORTH IN SECTION12
24-4-109 (2)(b)(II).13
(2) O
N OR BEFORE OCTOBER 1, 2024, THE COMMISSIONER OR
14
COMMISSIONER'S DESIGNEE SHALL SUBMIT TO THE GENERAL ASSEMBLY A15
REPORT SUMMARIZING THE STUDY , INCLUDING ANY LEGISLATIVE ,16
REGULATORY, OR OTHER RECOMMENDATIONS FOR DESIGNING AND17
IMPLEMENTING CARBON REDUCTION AND SEQUESTRATION OPPORTUNITIES18
FOR THE AGRICULTURAL SECTOR AND IN LAND MANAGEMENT IN THE19
STATE. THE COMMISSIONER OR COMMISSIONER 'S DESIGNEE SHALL SUBMIT20
TO THE GENERAL ASSEMBLY AN UPDATE ON THE PROGRESS OF THE STUDY21
ON OR BEFORE OCTOBER 1, 2023.22
(3) (a) U
PON CONCLUSION OF THE STUDY , WITH REGARD TO ANY
23
RECOMMENDATIONS OF THE ST UDY THAT DO NOT REQUIRE LEGISLATIVE24
CHANGES, THE COMMISSIONER, IN CONSULTATION WITH THE COLORADO25
ENERGY OFFICE AND THE AIR QUALITY CONTROL COMMISSION , MAY ADOPT26
RULES TO IMPLEMENT THE RECOMMENDATIONS .27
138
-11- (b) IF THE COMMISSIONER ADOPTS RULES PURSUANT TO1
SUBSECTION (3)(a) OF THIS SECTION, THE DEPARTMENT SHALL INCLUDE A2
SUMMARY OF THE RULES AS PART OF THE DEPARTMENT 'S REGULATORY3
AGENDA THAT IS FILED WITH THE STAFF OF LEGISLATIVE COUNCIL AND THE4
SECRETARY OF STATE PURSUANT TO SECTION 2-7-203 (4) AND THAT IS5
INCLUDED IN THE DEPARTMENT 'S "STATE MEASUREMENT FOR6
A
CCOUNTABLE, RESPONSIVE, AND TRANSPARENT (SMART)
7
G
OVERNMENT ACT" PRESENTATION REQUIRED UNDER SECTION 2-7-203
8
THAT IMMEDIATELY PRECEDES THE ADOPTION OF THE RULES .9
SECTION 9. In Colorado Revised Statutes, 35-75-204, amend10
(1) as follows:11
35-75-204. Duties of board - agriculture value-added grants,12
loans and loan guarantees, and equity investments - agrivoltaics -13
repeal. (1) (a) The board has the power to MAY make grants, loans and14
loan guarantees, and equity investments to any person, including eligible15
agricultural value-added cooperatives as defined in section 35-75-202 (4),16
for:17
(I) New or ongoing agricultural projects and research that add18
value to Colorado agricultural products and aid the economy of rural19
Colorado communities; and for20
(II) Agricultural projects
AND RESEARCH, INCLUDING RESEARCH21
ON THE USE, COSTS, AND BENEFITS
OF AGRIVOLTAICS, AS DEFINED IN22
SECTION 35-75-205 (1)(c), that will reduce energy costs for agricultural23
producers or businesses
OR PROVIDE OTHER ENVIRONMENTAL , SOCIAL, OR
24
ECONOMIC BENEFITS TO THE STATE . IN ALLOCATING MONEY FOR25
RESEARCH ON THE USE OF AGRIVOLTAICS , THE BOARD SHALL REQUIRE26
THAT A RECIPIENT CONSULT WITH THE DIRECTOR OF THE DIVISION OF27
138
-12- PARKS AND WILDLIFE OR THE DIRECTOR'S DESIGNEE REGARDING WILDLIFE1
IMPACTS OF AGRIVOLTAICS USE.2
(III) T
O IMPLEMENT SUBSECTION (1)(a)(II) OF THIS SECTION, THE
3
STATE TREASURER SHALL TRANSFER ONE MILLION EIGHT HUNDRED4
THOUSAND DOLLARS FROM THE GENERAL FUND TO THE AGRICULTURE5
VALUE-ADDED CASH FUND CREATED IN SECTION 35-75-205:6
(A) O
N THE EFFECTIVE DATE OF THIS SUBSECTION (1)(a)(III); AND
7
(B) O
N JULY 1, 2023, AND ON EACH JULY 1 THEREAFTER THROUGH
8
J
ULY 1, 2027.
9
(IV) S
UBSECTION (1)(a)(III) OF THIS SECTION AND THIS
10
SUBSECTION (1)(a)(IV) ARE REPEALED, EFFECTIVE JULY 1, 2028.11
(b) The board also has the power to MAY fund market promotion12
activities of the department pursuant to section 35-75-205 (2)(f).13
SECTION 10. In Colorado Revised Statutes, 35-75-205, amend14
(1)(b); and add (1)(c) as follows:15
35-75-205. Grants, loans and loan guarantees, and equity16
investments - agriculture value-added cash fund - created - gifts,17
grants, and donations - report - definition - repeal. (1) (b) As used in18
this section, "agrivoltaics" means one or more solar energy generation19
facilities colocated on the same parcel of land as agricultural production,20
including crop production, grazing, apiaries, or other production of21
agricultural commodities for sale in the retail or wholesale market THE22
BOARD MAY SEEK, ACCEPT, AND EXPEND GIFTS, GRANTS, OR DONATIONS23
FROM PRIVATE OR PUBLIC SOURCES FOR THE PURPOSES OF THIS PART 2,24
WHICH MONEY SHALL BE CREDITED TO THE AGRICULTURE VALUE -ADDED25
CASH FUND PURSUANT TO SUBSECTION (1)(a) OF THIS SECTION. THE BOARD26
MAY ALSO SEEK, ACCEPT, AND UTILIZE DONATIONS OF IN -KIND RESOURCES27
138
-13- SUCH AS SOLAR PANELS FOR USE IN AGRIVOLTAIC RESEARCH PROJECTS .1
(c) A
S USED IN THIS SECTION, "AGRIVOLTAICS" MEANS ONE OR
2
MORE SOLAR ENERGY GENERATION FACILITIES DIRECTLY INTEGRATED3
WITH AGRICULTURAL ACTIVITIES, INCLUDING CROP PRODUCTION, GRAZING,4
ANIMAL HUSBANDRY , APIARIES, COVER CROPPING FOR SOIL HEALTH5
BENEFITS OR CARBON SEQUESTRATION, OR PRODUCTION OF AGRICULTURAL6
COMMODITIES FOR SALE IN THE RETAIL OR WHOLESALE MARKET .7
SECTION 11. In Colorado Revised Statutes, 39-4-101, amend8
(3.5) as follows:9
39-4-101. Definitions. As used in this article 4, unless the context10
otherwise requires:11
(3.5) (a) "Solar energy facility" means a new facility first placed12
in production on or after January 1, 2009, that uses real and personal13
property, including but not limited to one or more solar energy devices as14
defined in section 38-32.5-100.3 (2), leaseholds, and easements, to15
generate and deliver to the interconnection meter any source of electrical,16
thermal, or mechanical energy in excess of two megawatts by harnessing17
the radiant energy of the sun, including any connected device for which18
the primary purpose is to store energy, and that is not primarily designed19
to supply electricity for consumption on site.20
(b) "S
OLAR ENERGY FACILITY" INCLUDES AGRIVOLTAICS AS21
DEFINED IN SECTION 35-75-205 (1)(c).22
SECTION 12.
In Colorado Revised Statutes, add 39-22-543 as23
follows:24
39-22-543. Tax credit for reducing emissions from small25
off-road engines - reports - definitions - legislative declaration - rules26
- repeal. (1) (a) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT :27
138
-14- (I) SMALL OFF-ROAD ENGINES USED PRIMARILY IN LAWN AND1
GARDEN EQUIPMENT, SUCH AS LAWN MOWERS , LEAF BLOWERS, HEDGE2
TRIMMERS, AND CHAINSAWS, EMIT HIGH LEVELS OF AIR POLLUTANTS ,3
INCLUDING OXIDES OF NITROGEN AND REACTIVE ORGANIC GASES THAT ,4
TOGETHER, FORM OZONE, AND PARTICULATE MATTER;5
(II) E
LECTRIFYING SMALL OFF-ROAD EQUIPMENT CAN REDUCE6
OZONE POLLUTION BY AS MUCH AS FOUR PARTS PER BILLION ; AND7
(III) T
HE PURPOSE OF THE TAX CREDIT IN SUBSECTION (2) OF THIS8
SECTION IS TO PROVIDE AN INCENTIVE FOR THE VOLUNTARY TRANSITION9
FROM GAS-POWERED TO ELECTRIC -POWERED SMALL OFF -ROAD10
EQUIPMENT.11
(b) I
N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH12
REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE13
A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY14
LEGISLATIVE DECLARATION, THE GENERAL ASSEMBLY FURTHER FINDS AND15
DECLARES THAT:16
(I) T
HE GENERAL LEGISLATIVE PURPOSE OF THE TAX CREDIT17
ALLOWED BY SUBSECTION (2) OF THIS SECTION IS TO INDUCE CERTAIN18
DESIGNATED BEHAVIORS BY TAXPAYERS , SPECIFICALLY THE PURCHASE OF19
ELECTRIC, SMALL OFF-ROAD EQUIPMENT; AND20
(II) I
N ORDER TO ALLOW THE GENERAL ASSEMBLY AND THE STATE21
AUDITOR TO MEASURE THE EFFECTIVENESS OF THE CREDIT , THE22
DEPARTMENT OF REVENUE SHALL SUBMIT TO THE GENERAL ASSEMBLY23
AND THE STATE AUDITOR AN ANNUAL REPORT IN ACCORDANCE WITH
24
SUBSECTION (4) OF THIS SECTION DETAILING THE SALES OF NEW ,25
ELECTRIC-POWERED, SMALL OFF-ROAD EQUIPMENT, AS REPORTED BY26
TAXPAYERS CLAIMING THE CREDIT AUTHORIZED UNDER SUBSECTION (2)27
138
-15- OF THIS SECTION.1
(2) (a) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER
2
J
ANUARY 1, 2023, BUT BEFORE JANUARY 1, 2030, A TAXPAYER IS
3
ALLOWED A CREDIT AGAINST THE TAX IMPOSED PURS UANT TO THIS4
ARTICLE 22 IN AN AMOUNT EQUAL TO THIRTY PERCENT OF THE AGGREGATE5
PURCHASE PRICE FOR ALL RETAIL SALES, AS THOSE TERMS ARE DEFINED IN6
SECTION 39-26-102, OF NEW, ELECTRIC-POWERED, SMALL OFF-ROAD7
EQUIPMENT THAT THE TAXPAYER SOLD IN THE STATE DURING THE TAX8
YEAR.9
(b) I
N ORDER TO QUALIFY FOR THE CREDIT ALLOWED UNDER THIS
10
SUBSECTION (2), THE TAXPAYER SHALL PROVIDE A PURCHASER OF A PIECE11
OF NEW, ELECTRIC-POWERED, SMALL OFF-ROAD EQUIPMENT, A THIRTY12
PERCENT DISCOUNT FROM THE PURCHASE PRICE OF THE PIECE OF NEW ,13
ELECTRIC-POWERED, SMALL OFF-ROAD EQUIPMENT AND SHALL SHOW THE14
DISCOUNT AS A SEPARATE ITEM ON THE RECEIPT OR INVOICE PROVIDED TO15
THE PURCHASER.16
(c) T
O DETERMINE WHETHER A TAXPAYER SOLD NEW ,
17
ELECTRIC-POWERED, SMALL OFF-ROAD EQUIPMENT IN THIS STATE , THE18
RULES OF SECTION 39-26-104 (3)(a) APPLY.19
(3) I
F THE AMOUNT OF A CREDIT UNDER SUBSECTION (2) OF THIS20
SECTION EXCEEDS A TAXPAYER'S ACTUAL TAX LIABILITY FOR AN INCOME21
TAX YEAR, THE AMOUNT OF THE CREDIT NOT USED TO OFFSET INCOME TAX22
LIABILITY FOR THE INCOME TAX YEAR IS NOT REFUNDED TO THE23
TAXPAYER. THE TAXPAYER MAY CARRY FORWARD AND APPLY THE24
UNUSED CREDIT AGAINST THE INCOME TAX DUE IN EACH OF THE FIVE25
SUCCEEDING INCOME TAX YEARS , BUT THE TAXPAYER SHALL APPLY THE26
CREDIT AGAINST THE INCOME TAX DUE FOR THE EARLIEST OF THE INCOME27
138
-16- TAX YEARS POSSIBLE. ANY AMOUNT OF THE TAX CREDIT THAT IS NOT USED1
AFTER THIS PERIOD IS NOT REFUNDABLE.2
(4) F
OR THE PURPOSE OF PROVIDING DATA THAT ALLOWS THE3
GENERAL ASSEMBLY AND THE STATE AUDITOR TO MEASURE THE4
EFFECTIVENESS OF THE TAX CREDIT CREATED IN SUBSECTION (2) OF THIS5
SECTION PURSUANT TO SECTION 39-21-304 (3), AND NOTWITHSTANDING6
SECTION 24-1-136 (11)(a)(I), THE DEPARTMENT OF REVENUE , ON OR7
BEFORE JANUARY 1, 2024, AND ON OR BEFORE JANUARY 1 OF EACH YEAR8
THEREAFTER, SHALL SUBMIT TO THE GENERAL ASSEMBLY AND THE STATE9
AUDITOR A REPORT DETAILING THE SALES OF NEW , ELECTRIC-POWERED,
10
SMALL OFF-ROAD EQUIPMENT, AS REPORTED BY TAXPAYERS CLAIMING THE11
CREDIT AUTHORIZED UNDER SUBSECTION (2) OF THIS SECTION. THE TAX12
CREDIT ESTABLISHED IN THIS SECTION WILL MEET ITS PURPOSE IF SALES OF13
ELECTRIC-POWERED, SMALL OFF -ROAD EQUIPMENT INCREASE14
SIGNIFICANTLY WITHIN FIVE YEARS AFTER THE TAX CREDIT BECOMES15
EFFECTIVE.16
(5) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE17
REQUIRES:18
(a) "S
MALL OFF-ROAD ENGINE" MEANS A GASOLINE-POWERED
19
ENGINE OF TEN HORSEPOWER OR LESS THAT IS USED TO FUEL SMALL20
OFF-ROAD EQUIPMENT.21
(b) "S
MALL OFF-ROAD EQUIPMENT" MEANS A LAWN MOWER, LEAF
22
BLOWER, OR TRIMMER.23
(c) "T
AXPAYER" HAS THE MEANING SET FORTH IN SECTION24
39-21-101
(4).25
(6) T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2039.26
SECTION 13. In Colorado Revised Statutes, 40-3.2-108, amend
27
138
-17- (2)(c)(V); and add (2)(c)(V.5) and (2)(r) as follows:1
40-3.2-108. Clean heat targets - legislative declaration -2
definitions - plans - rules - reports. (2) Definitions. As used in this3
section, unless the context otherwise requires:4
(c) "Clean heat resource" means any one or a combination of:5
(V) Pyrolysis of tires if the pyrolysis meets a recovered methane6
protocol; and7
(V.5) W
ASTEWATER THERMAL ENERGY ; AND
8
(r) "W
ASTEWATER THERMAL ENERGY " MEANS A SYSTEM THAT
9
USES THERMAL ENERGY IN WASTEWATER TO GENERATE ELECTRICITY , TO10
HEAT OR COOL A SPACE, OR FOR ANY OTHER USEFUL THERMAL PURPOSE .11
SECTION 14. Appropriation. (1) For the 2022-23 state fiscal12
year, $81,429 is appropriated to the department of natural resources for13
use by the oil and gas conservation commission. This appropriation is14
from the oil and gas conservation and environmental response fund15
created in section 34-60-122 (5)(a), C.R.S., and is based on an assumption16
that the commission will require an additional 0.8 FTE. To implement this17
act, the commission may use this appropriation for the underground18
injection program.19
(2) For the 2022-23 state fiscal year, $145,789 is appropriated to20
the department of public health and environment for use by the air21
pollution control division. This appropriation is from the general fund. To22
implement this act, the subdivision may use this appropriation as follows:23
(a) $131,094 for personal services related to stationary sources,24
which amount is based on an assumption that the division will require an25
additional 1.5 FTE; and26
(b) $14,695 for operating expenses related to stationary sources.27
138
-18- (3) For the 2022-23 state fiscal year, $2,098,784 is appropriated1
to the department of agriculture for use by the agricultural services2
division. This appropriation is from the general fund and is based on an3
assumption that the division will require an additional 0.8 FTE. To4
implement this act, the division may use this appropriation for5
conservation services.6
SECTION 15. Act subject to petition - effective date. This act7
takes effect at 12:01 a.m. on the day following the expiration of the8
ninety-day period after final adjournment of the general assembly; except9
that, if a referendum petition is filed pursuant to section 1 (3) of article V10
of the state constitution against this act or an item, section, or part of this11
act within such period, then the act, item, section, or part will not take12
effect unless approved by the people at the general election to be held in13
November 2022 and, in such case, will take effect on the date of the14
official declaration of the vote thereon by the governor.15
138
-19-