Colorado 2022 Regular Session

Colorado Senate Bill SB138 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		Second Regular Session
2	2		Seventy-third General Assembly
3	3		STATE OF COLORADO
4		-	~~REENGROSSED~~
5		-	This Version Includes All Amendments
6		-	~~Adopted~~ in the House of Introduction
	4	+	ENGROSSED
	5	+	This Version Includes All Amendments Adopted
	6	+	on Second Reading in the House of Introduction
7	7		LLS NO. 22-0335.01 Jennifer Berman x3286
8	8		SENATE BILL 22-138
9	9		Senate Committees House Committees
10	10		Transportation & Energy
11	11		Finance
12	12		Appropriations
13	13		A BILL FOR AN ACT
14	14		C
15	15		ONCERNING MEASURES TO PROMOTE REDUCTIONS IN GREENHOUSE101
16	16		GAS EMISSIONS IN COLORADO, AND, IN CONNECTION
17	17		102
18	18		THEREWITH, MAKING AN APPROPRIATION .103
19	19		Bill Summary
20	20		(Note: This summary applies to this bill as introduced and does
21	21		not reflect any amendments that may be subsequently adopted. If this bill
22	22		passes third reading in the house of introduction, a bill summary that
23	23		applies to the reengrossed version of this bill will be available at
24	24		http://leg.colorado.gov
25	25		.)
26	26		Section 1 of the bill requires each insurance company issued a
27	27		certificate of authority to transact insurance business to prepare and file
28	28		an annual report with the insurance commissioner providing a
29	29		climate-risk assessment for the insurance company's investment portfolio
30	30		SENATE
31		-	3rd Reading Unamended
32		-	April 22, 2022
33		-	SENATE
34	31		Amended 2nd Reading
35	32		April 21, 2022
36	33		SENATE SPONSORSHIP
37		-	Hansen and Priola, Buckner, Fenberg, Fields, Gonzales, Jaquez Lewis, Lee, Moreno,
38		-	Story
	34	+	Hansen and Priola,
39	35		HOUSE SPONSORSHIP
40	36		Valdez A. and McCormick,
41	37		Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
42	38		Capital letters or bold & italic numbers indicate new material to be added to existing statute.
43	39		Dashes through the words indicate deletions from existing statute. from the previous 12 months. The commissioner of insurance is required
44	40		to post the reports on the division of insurance's website. Section 1
45	41		defines "climate-risk assessment" as a determination of the economic and
46	42		business risks that climate change poses to an investment.
47	43		Section 2 requires the board of trustees of the public employees'
48	44		retirement association (PERA board) to prepare a similar annual report
49	45		and post it on the PERA board's website.
50	46		Section 3 updates the statewide greenhouse gas (GHG) emission
51	47		reduction goals to add a 40% reduction goal for 2028 compared to 2005
52	48		GHG pollution levels and a 75% reduction goal for 2040 compared to
53	49		2005 GHG pollution levels.
54	50		Section 4 defines a small off-road engine as a gasoline-powered
55	51		engine of 50 horsepower or less used to fuel small off-road equipment
56	52		like lawn mowers and leaf blowers. Section 4 phases out the use of small
57	53		off-road engines by prohibiting their sale in nonattainment areas of the
58	54		state on or after January 1, 2030, and by providing financial incentives to
59	55		promote the replacement of small off-road engines with electric-powered,
60	56		small off-road equipment before 2030.
61	57		Section 11 establishes a state income tax credit in an amount equal
62	58		to 30% of the purchase price for new, electric-powered, small off-road
63	59		equipment for purchases made in income tax years 2023 through 2029.
64	60		Section 6 gives the oil and gas conservation commission authority
65	61		over class VI injection wells used for sequestration of GHG, including
66	62		through the issuance and enforcement of permits.
67	63		Section 7 requires the commissioner of agriculture or the
68	64		commissioner's designee, in consultation with the Colorado energy office
69	65		and the air quality control commission, to conduct a study examining
70	66		carbon reduction and sequestration opportunities in the agricultural sector
71	67		in the state, including the potential development of certified carbon offset
72	68		programs or credit instruments. On or before December 15, 2022, the
73	69		commissioner of agriculture or the commissioner's designee is required
74	70		to submit a report summarizing the study, including any legislative
75	71		recommendations, to the general assembly.
76	72		In support of the use of agrivoltaics, which is the colocation of
77	73		solar energy generation facilities on a parcel of land with agricultural
78	74		activities, section 8 authorizes the Colorado agriculture value-added
79	75		development board (board) to provide financing, including grants or
80	76		loans, for agricultural research on the use of agrivoltaics. For a research
81	77		project for which the board awards money to study the use of agrivoltaics,
82	78		sections 5 and 8 require the director of the division of parks and wildlife
83	79		to consult on the research project regarding the wildlife impacts of
84	80		agrivoltaic use.
85	81		Section 9 authorizes the board to seek, accept, and expend gifts,
86	82		grants, and donations, including donations of in-kind resources such as
87	83		solar panels, for use in agricultural research projects. Section 9 also
88	84		138
89	85		-2- updates the statutory definition of "agrivoltaics" to list additional
90	86		agricultural activities on the parcel of land on which solar panel
91	87		generation facilities may be colocated, including animal husbandry, cover
92	88		cropping for soil health, and carbon sequestration.
93	89		Section 10 amends the statutory definition of "solar energy
94	90		facility" used in determining the valuation of public utilities for property
95	91		tax purposes to include agrivoltaics.
96	92		Be it enacted by the General Assembly of the State of Colorado:1
97	93		SECTION 1. In Colorado Revised Statutes, add 10-3-244 as2
98	94		follows:3
99	95		10-3-244. Investment climate-risk assessment - reporting -
100	96		4
101	97		rules - definition. (1) T
102	98		HE COMMISSIONER SHALL ADOPT RULES
103	99		5
104	100		REQUIRING THAT, BEGINNING IN 2023, INSURERS ISSUED A CERTIFICATE OF6
105	101		AUTHORITY TO TRANSACT BUSINESS PURSUANT TO PART 1 OF THIS ARTICLE7
106	102		3
107	103		THAT REPORT MORE THAN ONE HUNDRED MILLION DOLLARS ON THEIR
108	104		8
109	105		ANNUAL NAIC SCHEDULE T FILING, OR SUCH OTHER THRESHOLD DOLLAR9
110	106		AMOUNT THAT THE NAIC ESTABLISHES IN SUBSEQUENT YEARS ,10
111	107		PARTICIPATE IN AND COMPLETE THE NAIC'S ANNUAL "INSURER CLIMATE11
112	108		R
113	109		ISK DISCLOSURE SURVEY", OR SUCH OTHER SURVEY OR REPORTING
114	110		12
115	111		MECHANISM THAT THE NAIC REQUIRES IN SUBSEQUENT YEARS . IF AN13
116	112		INSURER REPORTS LESS THAN ONE HUNDRED MILLION DOLLARS ON ITS14
117	113		ANNUAL NAIC SCHEDULE T FILING, OR SUCH OTHER THRESHOLD DOLLAR15
118	114		AMOUNT THAT THE NAIC ESTABLISHES IN SUBSEQUENT YEARS , THE16
119	115		INSURER MAY PARTICIPATE IN AND COMPLETE THE SURVEY VOLUNTARILY .17
120	116		(2) A
121	117		S USED IN THIS SECTION, "NAIC" MEANS THE NATIONAL
122	118		18
123	119		A
124	120		SSOCIATION OF INSURANCE COMMISSIONERS, AN ORGANIZATION OF
125	121		19
126	122		INSURANCE REGULATORS FROM THE FIFTY STATES , THE DISTRICT OF20
127	123		C
128	124		OLUMBIA, AND THE FOUR UNITED STATES TERRITORIES.
129	125		21
130	126		SECTION 2. In Colorado Revised Statutes, amend 24-51-220 as22
131	127		138-3- follows:1
132	128		24-51-220. Reports - periodic reports to general assembly -2
133	129		inclusion of climate risk assessment in annual stewardship report.3
134	130		(1) The association shall provide SUBMIT a report to the general assembly4
135	131		on January 1, 2016, and every five years thereafter, regarding the5
136	132		economic impact of the 2010 legislative changes to the annual increase6
137	133		provisions on the retirees and benefit recipients as compared to the actual7
138	134		rate of inflation and the progress made toward eliminating the unfunded8
139	135		liabilities of each division of the association.9
140	136		(2) O
141	137		N AND AFTER JANUARY 1, 2024, THE ASSOCIATION SHALL
142	138		10
143	139		INCLUDE, AS PART OF ITS ANNUAL INVESTMENT STEWARDSHIP REPORT11
144	140		THAT IT POSTS ON ITS WEBSITE, A DESCRIPTION OF:12
145	141		(a) T
146	142		HE ASSOCIATION'S PROCESS FOR IDENTIFYING CLIMATE
147	143		13
148	144		CHANGE-RELATED RISKS AND ASSESSING THE FINANCIAL IMPACT THAT THE14
149	145		CLIMATE CHANGE -RELATED RISKS HAVE ON THE ASSOCIATION 'S15
150	146		OPERATIONS;16
151	147		(b) T
152	148		HE CURRENT OR ANTICIPATED FUTURE RISKS THAT CLIMATE
153	149		17
154	150		CHANGE POSES TO THE ASSOCIATION 'S INVESTMENT PORTFOLIO , THE18
155	151		IMPACT THAT CLIMATE CHANGE HAS ON THE ASSOCIATION 'S INVESTMENT19
156	152		STRATEGIES, AND ANY STRATEGY CHANGES THAT THE ASSOCIATION HAS20
157	153		IMPLEMENTED IN RESPONSE TO SUCH IMPACT ;21
158	154		(c) A
159	155		CTIONS THAT THE ASSOCIATION IS TAKING TO MANAGE THE
160	156		22
161	157		RISKS THAT CLIMATE CHANGE POSES TO THE ASSOCIATION 'S OPERATIONS;23
162	158		AND24
163	159		(d) T
164	160		HE ASSOCIATION'S USE AND CONSIDERATION OF ANY
165	161		25
166	162		CLIMATE-RELATED REPORTING THAT THE FEDERAL SECURITIES AND26
167	163		EXCHANGE COMMISSION REQUIRES .27
168	164		138
169	165		-4- SECTION 3. In Colorado Revised Statutes, 25-6.5-201, amend1
170	166		(2); and add (3) as follows:2
171	167		25-6.5-201. Definitions. As used in this part 2, unless the context3
172	168		otherwise requires:4
173	169		(2) (a) "Pollution control equipment" means any personal5
174	170		property, including, but not limited to, equipment, machinery, devices,6
175	171		systems, buildings, or structures, that is installed, constructed, or used in7
176	172		or as a part of a facility that creates a product in a manner that generates8
177	173		less pollution by the utilization of an alternative manufacturing or9
178	174		generating technology.10
179	175		(b) "Pollution control equipment" includes, but is not limited to:11
180	176		(I) Gas or wind turbines and associated compressors or12
181	177		equipment; or13
182	178		(II) Solar, thermal, or photovoltaic equipment;
183	179		OR
184	180		14
185	181		(III) W
186	182		ASTEWATER THERMAL ENERGY EQUIPMENT .
187	183		15
188	184		(3) "W
189	185		ASTEWATER THERMAL ENERGY EQUIPMENT " MEANS
190	186		16
191	187		EQUIPMENT USED AS PART OF A SYSTEM THAT USES THERMAL ENERGY IN17
192	188		WASTEWATER TO GENERATE ELECTRICITY , TO HEAT OR COOL A SPACE, OR18
193	189		FOR ANY OTHER USEFUL THERMAL PURPOSE .19
194	190		SECTION 4. In Colorado Revised Statutes, 25-7-102, amend20
195	191		(2)(g) as follows:21
196	192		25-7-102. Legislative declaration. (2) It is further declared that:22
197	193		(g) (I) Accordingly, Colorado shall strive to increase renewable23
198	194		energy generation and eliminate statewide greenhouse gas pollution by24
199	195		the middle of the twenty-first century and have goals of achieving, at a25
200	196		minimum:26
201	197		(A) A twenty-six percent reduction in statewide greenhouse gas27
202	198		138
203	199		-5- pollution by 2025;1
204	200		2
205	201		(B) A fifty percent reduction in statewide greenhouse gas3
206	202		pollution by 2030;4
207	203		(C) A
208	204		SIXTY-FIVE PERCENT REDUCTION IN STATEWIDE
209	205		5
210	206		GREENHOUSE GAS POLLUTION BY 2035;6
211	207		(D) A
212	208		SEVENTY-FIVE PERCENT REDUCTION IN STATEWIDE7
213	209		GREENHOUSE GAS POLLUTION BY 2040; and8
214	210		(E) A ninety percent reduction in statewide greenhouse gas9
215	211		pollution by 2050.10
216	212		(II) The reductions identified in this subsection (2)(g) are11
217	213		measured relative to 2005 statewide greenhouse gas pollution levels.12
218	214		SECTION 5. In Colorado Revised Statutes, 25-7-105, amend
219	215		13
220	216		(1)(e)(XIII) introductory portion as follows:14
221	217		25-7-105. Duties of commission - rules - legislative declaration15
222	218		- definitions. (1) Except as provided in sections 25-7-130 and 25-7-131,16
223	219		the commission shall promulgate rules that are consistent with the17
224	220		legislative declaration set forth in section 25-7-102 and necessary for the18
225	221		proper implementation and administration of this article 7, including:19
226	222		(e) (XIII) In implementing this subsection (1)(e), the commission20
227	223		shall adopt rules to reduce statewide greenhouse gas emissions from the21
228	224		industrial and manufacturing sector in the state by at least twenty percent22
229	225		by 2030 below the 2015 baseline established pursuant to section 25-7-14023
230	226		(2)(a)(II), taking into account the factors set out in subsections (1)(e)(II)24
231	227		to (1)(e)(VI) of this section. The rules must include protections for25
232	228		disproportionately impacted communities and prioritize emission26
233	229		reductions that will reduce emissions of co-pollutants that adversely27
234	230		138
235	231		-6- affect disproportionately impacted communities, be designed to accelerate1
236	232		near-term reductions, and secure meaningful emission reductions from2
237	233		this sector to be realized beginning no later than September 30, 2024. O
238	234		N
239	235		3
240	236		OR BEFORE AUGUST 1, 2023, THE COMMISSION SHALL ADOPT RULES TO4
241	237		REDUCE GREENHOUSE GAS EMISSIONS FROM , AT A MINIMUM, SOURCES5
242	238		WITHIN THE INDUSTRIAL AND MANUFACTURING SECTOR THAT REPORTED6
243	239		GREENHOUSE GAS EMISSIONS GREATER THAN TWENTY -FIVE THOUSAND7
244	240		METRIC TONS FROM CALENDAR YEAR 2020, PURSUANT TO PART A OF 58
245	241		CCR
246	242		1001-26, KNOWN AS "REGULATION NUMBER 22", OR ANY
247	243		9
248	244		ANALOGOUS SUCCESSOR RULE . The rules must:10
249	245		11
250	246		SECTION 6. In Colorado Revised Statutes, 33-1-110, add (9) as12
251	247		follows:13
252	248		33-1-110. Duties of the director of the division. (9) F
253	249		OR14
254	250		RESEARCH PROJECTS FOR WHICH THE COLORADO AGRICULTURAL15
255	251		VALUE-ADDED DEVELOPMENT BOARD AWARDS MONEY PURSUANT TO16
256	252		SECTION 35-75-204 (1)(a)(II) TO STUDY THE USE OF AGRIVOLTAICS , AS17
257	253		DEFINED IN SECTION 35-75-205 (1)(c), THE DIRECTOR OR THE DIRECTOR'S18
258	254		DESIGNEE SHALL CONSULT ON THE RESEARCH PROJECT REGARDING THE19
259	255		WILDLIFE IMPACTS OF AGRIVOLTAIC USE.20
260	256		SECTION 7.
261	257		In Colorado Revised Statutes, 34-60-106, amend21
262	258		(9)(a); and add (9)(c) as follows:22
263	259		34-60-106. Additional powers of commission - rules -23
264	260		definitions. (9) (a) Notwithstanding section 34-60-120 or any other24
265	261		provision of law,
266	262		SUBJECT TO SUBSECTION (9)(c) OF THIS SECTION AND
267	263		25
268	264		ONLY AFTER THE GOVERNOR AND COMMISSION HAVE MADE AN26
269	265		AFFIRMATIVE DETERMINATION THAT THE STATE HAS SUFFICIENT27
270	266		138
271	267		-7- RESOURCES NECESSARY TO ENSURE THE SAFE AND EFFECTIVE REGULATION1
272	268		OF THE SEQUESTRATION OF GREENHOUSE GASES IN ACCORDANCE WITH2
273	269		FINDINGS FROM THE COMMISSION 'S STUDY CONDUCTED PURSUANT TO3
274	270		SUBSECTION (9)(b) OF THIS SECTION, the commission, as to class II AND4
275	271		CLASS VI injection wells classified in 40 CFR 144.6, may perform all acts5
276	272		for the purpose PURPOSES of protecting underground sources of drinking6
277	273		water in accordance with state programs authorized by 42 U.S.C. sec.7
278	274		300f et seq., and regulations under those sections, as amended,
279	275		AND8
280	276		ENSURING THE SAFE AND EFFECTIVE SEQUESTRATION OF GREENHOUSE9
281	277		GASES, AS THAT TERM IS DEFINED IN SECTION 25-7-140 (6).
282	278		10
283	279		(c) (I) T
284	280		HE COMMISSION MAY SEEK CLASS VI INJECTION WELL
285	281		11
286	282		PRIMACY UNDER THE FEDERAL "SAFE DRINKING WATER ACT", 42 U.S.C.12
287	283		SEC. 300f ET SEQ., AS AMENDED, AFTER OBTAINING AND PUBLICLY13
288	284		DETERMINING THAT THE COMMISSION HAS THE NECESSARY RESOURCES14
289	285		FOR THE APPLICATION OUTLINED IN THE COMMISSION 'S STUDY PERFORMED15
290	286		PURSUANT TO SUBSECTION (9)(b) OF THIS SECTION.16
291	287		(II) T
292	288		HE COMMISSION MAY ISSUE AND ENFORCE PERMITS AS
293	289		17
294	290		NECESSARY FOR THE PURPOSE SET FORTH IN THIS SUBSECTION (9)(c) AFTER18
295	291		THE DETERMINATION SET FORTH IN SUBSECTION (9)(c)(I) OF THIS SECTION19
296	292		HAS BEEN MADE AND THE REQUIREMENTS SET FORTH IN SUBSECTION (9)(a)20
297	293		OF THIS SECTION HAVE BEEN SATISFIED . IN ISSUING AND ENFORCING21
298	294		PERMITS PURSUANT TO THIS SUBSECTION (9)(c), THE COMMISSION SHALL22
299	295		ENSURE THAT THE PERMITTING OF CLASS VI INJECTION WELLS DOES NOT23
300	296		ADVERSELY AND DISPROPORTIONATELY AFFECT THE HEALTH AND24
301	297		WELL-BEING OF DISPROPORTIONATELY IMPACTED COMMUNITIES .25
302	298		(III) (A) T
303	299		HE COMMISSION SHALL REQUIRE EACH OPERATOR OF A
304	300		26
305	301		CLASS VI INJECTION WELL TO PROVIDE ADEQUATE FINANCIAL ASSURANCE27
306	302		138
307	303		-8- DEMONSTRATING THAT THE OPERATOR IS FINANCIALLY CAPABLE OF1
308	304		FULFILLING EVERY OBLIGATION IMPOSED ON THE OPERATOR UNDER THIS2
309	305		ARTICLE 60 AND UNDER RULES THAT THE COMMISSION ADOPTS PURSUANT3
310	306		TO THIS ARTICLE 60.4
311	307		(B) T
312	308		HE FINANCIAL ASSURANCE REQUIRED UNDER THIS
313	309		5
314	310		SUBSECTION (9)(c)(III) MUST COVER THE COST OF CORRECTIVE ACTION ,6
315	311		INJECTION WELL PLUGGING , POST-INJECTION SITE CARE, AND SITE7
316	312		CLOSURE, AS THOSE TERMS ARE DEFINED IN 40 CFR 146.81, AND THE COST8
317	313		OF ANY EMERGENCY AND REMEDIAL RESPONSE .9
318	314		(C) T
319	315		HE COMMISSION SHALL ADOPT RULES REQUIRING THAT
320	316		10
321	317		FINANCIAL ASSURANCE COVER THE COST OF OBLIGATIONS THAT ARE IN11
322	318		ADDITION TO THE OBLIGATIONS LISTED IN SUBSECTION (9)(c)(III)(B) OF12
323	319		THIS SECTION IF THE ADDITIONAL OBLIGATIONS ARE REASONABLY13
324	320		ASSOCIATED WITH CLASS VI INJECTION WELLS AND LOCATIONS.14
325	321		(D) A
326	322		N OPERATOR SHALL MAINTAIN THE FINANCIAL ASSURANCE
327	323		15
328	324		REQUIRED UNDER THIS SUBSECTION (9)(c)(III) OR UNDER ANY RULES16
329	325		ADOPTED PURSUANT TO THIS SUBSECTION (9)(c)(III) UNTIL THE17
330	326		COMMISSION APPROVES SITE CLOSURE, AS SPECIFIED IN RULES ADOPTED BY18
331	327		THE COMMISSION. COMMISSION APPROVAL OF A SITE CLOSURE DOES NOT19
332	328		OTHERWISE MODIFY AN OPERATOR 'S RESPONSIBILITY TO COMPLY WITH20
333	329		APPLICABLE LAWS.21
334	330		(E) F
335	331		INANCIAL ASSURANCE PROVIDED UNDER THIS SUBSECTION
336	332		22
337	333		(9)(c)(III)
338	334		MAY BE IN THE FORM OF A SURETY BOND , INSURANCE, OR ANY
339	335		23
340	336		OTHER INSTRUMENT THAT THE COMMISSION , BY RULE, DEEMS24
341	337		SATISFACTORY.25
342	338		(IV) A
343	339		S USED IN THIS SUBSECTION (9), "DISPROPORTIONATELY
344	340		26
345	341		IMPACTED COMMUNITY " HAS THE MEANING SET FORTH IN SECTION27
346	342		138
347	343		-9- 24-4-109 (2)(b)(II).1
348	344		SECTION 8. In Colorado Revised Statutes, add 35-1-116 as2
349	345		follows:3
350	346		35-1-116. Study of carbon reduction and sequestration4
351	347		opportunities in agriculture and land management - definition -5
352	348		reporting - rules. (1) (a) I
353	349		N CONSULTATION
354	350		WITH THE COLORADO6
355	351		ENERGY OFFICE CREATED IN SECTION 24-38.5-101 AND THE AIR QUALITY7
356	352		CONTROL COMMISSION CREATED IN SECTION 25-7-104 (1), THE8
357	353		COMMISSIONER OR THE COMMISSIONER 'S DESIGNEE, IN CONSULTATION9
358	354		WITH AN INSTITUTION OF HIGHER EDUCATION WITH EXPERTISE IN CLIMATE10
359	355		CHANGE MITIGATION , ADAPTATION BENEFITS , AND OTHER11
360	356		ENVIRONMENTAL BENEFITS RELATED TO AGRICULTURAL RESEARCH , SHALL12
361	357		CONDUCT A STUDY TO EXAMINE CARBON REDUCTION AND SEQUESTRATION13
362	358		OPPORTUNITIES IN THE AGRICULTURAL SECTOR AND IN LAND14
363	359		MANAGEMENT IN THE STATE, INCLUDING AN INVESTIGATION INTO THE15
364	360		POTENTIAL FOR CREATING AND OFFERING A CERTIFIED CARBON OFFSET16
365	361		PROGRAM AND CREDIT INSTRUMENTS TO PROVIDE FUNGIBLE CARBON17
366	362		OFFSETS FOR AGRICULTURAL PRODUCERS AND IN LAND MANAGEMENT . A18
367	363		CERTIFIED CARBON OFFSET PROGRAM AND CREDIT INSTRUMENTS OFFERED19
368	364		MUST REFLECT REAL , ADDITIONAL , QUANTIFIABLE, PERMANENT,20
369	365		VERIFIABLE, AND ENFORCEABLE REDUCTIONS IN GREENHOUSE GAS21
370	366		EMISSIONS THAT ARE EQUIVALENT TO THE OFFSETS PROVIDED .22
371	367		(b) C
372	368		ARBON OFFSETS DEVELOPED FOR AGRICULTURAL PRODUCERS
373	369		23
374	370		IN ACCORDANCE WITH THIS SECTION MAY BE :24
375	371		(I) I
376	372		NCORPORATED INTO THE AIR QUALITY CONTROL COMMISSION 'S
377	373		25
378	374		RULES, INCLUDING RULES ADOPTED UNDER SECTION 25-7-105 (1)(e) ,SUCH26
379	375		AS RULES CONCERNING COORDINATION WITH OTHER JURISDICTIONS27
380	376		138
381	377		-10- PURSUANT TO THE AUTHORITY GRANTED IN , AND THE CONSIDERATIONS1
382	378		REQUIRED UNDER, SECTION 25-7-105 (1)(e)(V); AND2
383	379		(II) U
384	380		SED AS COMPLIANCE INSTRUMENTS BY A SOURCE REGULATED
385	381		3
386	382		UNDER ARTICLE 7 OF TITLE 25 WITH EMISSION REDUCTION OBLIGATIONS4
387	383		THAT ENSURE THAT THE SOURCE 'S OVERALL, ABSOLUTE EMISSIONS5
388	384		DECLINE CONSISTENT WITH THE STATEWIDE GREENHOUSE GAS EMISSION6
389	385		REDUCTION GOALS SET FORTH IN SECTION 25-7-102 (2)(g).7
390	386		(c) (I) T
391	387		HE STUDY SHALL IDENTIFY POLICY MECHANISMS TO
392	388		8
393	389		MITIGATE THE IMPACTS THAT REGULATED SOURCES ' USE OF CARBON9
394	390		OFFSETS HAVE ON DISPROPORTIONATELY IMPACTED COMMUNITIES .10
395	391		(II) A
396	392		S USED IN THIS SUBSECTION (1)(c), "DISPROPORTIONATELY
397	393		11
398	394		IMPACTED COMMUNITY " HAS THE MEANING SET FORTH IN SECTION12
399	395		24-4-109 (2)(b)(II).13
400	396		(2) O
401	397		N OR BEFORE OCTOBER 1, 2024, THE COMMISSIONER OR
402	398		14
403	399		COMMISSIONER'S DESIGNEE SHALL SUBMIT TO THE GENERAL ASSEMBLY A15
404	400		REPORT SUMMARIZING THE STUDY , INCLUDING ANY LEGISLATIVE ,16
405	401		REGULATORY, OR OTHER RECOMMENDATIONS FOR DESIGNING AND17
406	402		IMPLEMENTING CARBON REDUCTION AND SEQUESTRATION OPPORTUNITIES18
407	403		FOR THE AGRICULTURAL SECTOR AND IN LAND MANAGEMENT IN THE19
408	404		STATE. THE COMMISSIONER OR COMMISSIONER 'S DESIGNEE SHALL SUBMIT20
409	405		TO THE GENERAL ASSEMBLY AN UPDATE ON THE PROGRESS OF THE STUDY21
410	406		ON OR BEFORE OCTOBER 1, 2023.22
411	407		(3) (a) U
412	408		PON CONCLUSION OF THE STUDY , WITH REGARD TO ANY
413	409		23
414	410		RECOMMENDATIONS OF THE ST UDY THAT DO NOT REQUIRE LEGISLATIVE24
415	411		CHANGES, THE COMMISSIONER, IN CONSULTATION WITH THE COLORADO25
416	412		ENERGY OFFICE AND THE AIR QUALITY CONTROL COMMISSION , MAY ADOPT26
417	413		RULES TO IMPLEMENT THE RECOMMENDATIONS .27
418	414		138
419	415		-11- (b) IF THE COMMISSIONER ADOPTS RULES PURSUANT TO1
420	416		SUBSECTION (3)(a) OF THIS SECTION, THE DEPARTMENT SHALL INCLUDE A2
421	417		SUMMARY OF THE RULES AS PART OF THE DEPARTMENT 'S REGULATORY3
422	418		AGENDA THAT IS FILED WITH THE STAFF OF LEGISLATIVE COUNCIL AND THE4
423	419		SECRETARY OF STATE PURSUANT TO SECTION 2-7-203 (4) AND THAT IS5
424	420		INCLUDED IN THE DEPARTMENT 'S "STATE MEASUREMENT FOR6
425	421		A
426	422		CCOUNTABLE, RESPONSIVE, AND TRANSPARENT (SMART)
427	423		7
428	424		G
429	425		OVERNMENT ACT" PRESENTATION REQUIRED UNDER SECTION 2-7-203
430	426		8
431	427		THAT IMMEDIATELY PRECEDES THE ADOPTION OF THE RULES .9
432	428		SECTION 9. In Colorado Revised Statutes, 35-75-204, amend10
433	429		(1) as follows:11
434	430		35-75-204. Duties of board - agriculture value-added grants,12
435	431		loans and loan guarantees, and equity investments - agrivoltaics -13
436	432		repeal. (1) (a) The board has the power to MAY make grants, loans and14
437	433		loan guarantees, and equity investments to any person, including eligible15
438	434		agricultural value-added cooperatives as defined in section 35-75-202 (4),16
439	435		for:17
440	436		(I) New or ongoing agricultural projects and research that add18
441	437		value to Colorado agricultural products and aid the economy of rural19
442	438		Colorado communities; and for20
443	439		(II) Agricultural projects
444	440		AND RESEARCH, INCLUDING RESEARCH21
445	441		ON THE USE, COSTS, AND BENEFITS
446	442		OF AGRIVOLTAICS, AS DEFINED IN22
447	443		SECTION 35-75-205 (1)(c), that will reduce energy costs for agricultural23
448	444		producers or businesses
449	445		OR PROVIDE OTHER ENVIRONMENTAL , SOCIAL, OR
450	446		24
451	447		ECONOMIC BENEFITS TO THE STATE . IN ALLOCATING MONEY FOR25
452	448		RESEARCH ON THE USE OF AGRIVOLTAICS , THE BOARD SHALL REQUIRE26
453	449		THAT A RECIPIENT CONSULT WITH THE DIRECTOR OF THE DIVISION OF27
454	450		138
455	451		-12- PARKS AND WILDLIFE OR THE DIRECTOR'S DESIGNEE REGARDING WILDLIFE1
456	452		IMPACTS OF AGRIVOLTAICS USE.2
457	453		(III) T
458	454		O IMPLEMENT SUBSECTION (1)(a)(II) OF THIS SECTION, THE
459	455		3
460	456		STATE TREASURER SHALL TRANSFER ONE MILLION EIGHT HUNDRED4
461	457		THOUSAND DOLLARS FROM THE GENERAL FUND TO THE AGRICULTURE5
462	458		VALUE-ADDED CASH FUND CREATED IN SECTION 35-75-205:6
463	459		(A) O
464	460		N THE EFFECTIVE DATE OF THIS SUBSECTION (1)(a)(III); AND
465	461		7
466	462		(B) O
467	463		N JULY 1, 2023, AND ON EACH JULY 1 THEREAFTER THROUGH
468	464		8
469	465		J
470	466		ULY 1, 2027.
471	467		9
472	468		(IV) S
473	469		UBSECTION (1)(a)(III) OF THIS SECTION AND THIS
474	470		10
475	471		SUBSECTION (1)(a)(IV) ARE REPEALED, EFFECTIVE JULY 1, 2028.11
476	472		(b) The board also has the power to MAY fund market promotion12
477	473		activities of the department pursuant to section 35-75-205 (2)(f).13
478	474		SECTION 10. In Colorado Revised Statutes, 35-75-205, amend14
479	475		(1)(b); and add (1)(c) as follows:15
480	476		35-75-205. Grants, loans and loan guarantees, and equity16
481	477		investments - agriculture value-added cash fund - created - gifts,17
482	478		grants, and donations - report - definition - repeal. (1) (b) As used in18
483	479		this section, "agrivoltaics" means one or more solar energy generation19
484	480		facilities colocated on the same parcel of land as agricultural production,20
485	481		including crop production, grazing, apiaries, or other production of21
486	482		agricultural commodities for sale in the retail or wholesale market THE22
487	483		BOARD MAY SEEK, ACCEPT, AND EXPEND GIFTS, GRANTS, OR DONATIONS23
488	484		FROM PRIVATE OR PUBLIC SOURCES FOR THE PURPOSES OF THIS PART 2,24
489	485		WHICH MONEY SHALL BE CREDITED TO THE AGRICULTURE VALUE -ADDED25
490	486		CASH FUND PURSUANT TO SUBSECTION (1)(a) OF THIS SECTION. THE BOARD26
491	487		MAY ALSO SEEK, ACCEPT, AND UTILIZE DONATIONS OF IN -KIND RESOURCES27
492	488		138
493	489		-13- SUCH AS SOLAR PANELS FOR USE IN AGRIVOLTAIC RESEARCH PROJECTS .1
494	490		(c) A
495	491		S USED IN THIS SECTION, "AGRIVOLTAICS" MEANS ONE OR
496	492		2
497	493		MORE SOLAR ENERGY GENERATION FACILITIES DIRECTLY INTEGRATED3
498	494		WITH AGRICULTURAL ACTIVITIES, INCLUDING CROP PRODUCTION, GRAZING,4
499	495		ANIMAL HUSBANDRY , APIARIES, COVER CROPPING FOR SOIL HEALTH5
500	496		BENEFITS OR CARBON SEQUESTRATION, OR PRODUCTION OF AGRICULTURAL6
501	497		COMMODITIES FOR SALE IN THE RETAIL OR WHOLESALE MARKET .7
502	498		SECTION 11. In Colorado Revised Statutes, 39-4-101, amend8
503	499		(3.5) as follows:9
504	500		39-4-101. Definitions. As used in this article 4, unless the context10
505	501		otherwise requires:11
506	502		(3.5) (a) "Solar energy facility" means a new facility first placed12
507	503		in production on or after January 1, 2009, that uses real and personal13
508	504		property, including but not limited to one or more solar energy devices as14
509	505		defined in section 38-32.5-100.3 (2), leaseholds, and easements, to15
510	506		generate and deliver to the interconnection meter any source of electrical,16
511	507		thermal, or mechanical energy in excess of two megawatts by harnessing17
512	508		the radiant energy of the sun, including any connected device for which18
513	509		the primary purpose is to store energy, and that is not primarily designed19
514	510		to supply electricity for consumption on site.20
515	511		(b) "S
516	512		OLAR ENERGY FACILITY" INCLUDES AGRIVOLTAICS AS21
517	513		DEFINED IN SECTION 35-75-205 (1)(c).22
518	514		SECTION 12.
519	515		In Colorado Revised Statutes, add 39-22-543 as23
520	516		follows:24
521	517		39-22-543. Tax credit for reducing emissions from small25
522	518		off-road engines - reports - definitions - legislative declaration - rules26
523	519		- repeal. (1) (a) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT :27
524	520		138
525	521		-14- (I) SMALL OFF-ROAD ENGINES USED PRIMARILY IN LAWN AND1
526	522		GARDEN EQUIPMENT, SUCH AS LAWN MOWERS , LEAF BLOWERS, HEDGE2
527	523		TRIMMERS, AND CHAINSAWS, EMIT HIGH LEVELS OF AIR POLLUTANTS ,3
528	524		INCLUDING OXIDES OF NITROGEN AND REACTIVE ORGANIC GASES THAT ,4
529	525		TOGETHER, FORM OZONE, AND PARTICULATE MATTER;5
530	526		(II) E
531	527		LECTRIFYING SMALL OFF-ROAD EQUIPMENT CAN REDUCE6
532	528		OZONE POLLUTION BY AS MUCH AS FOUR PARTS PER BILLION ; AND7
533	529		(III) T
534	530		HE PURPOSE OF THE TAX CREDIT IN SUBSECTION (2) OF THIS8
535	531		SECTION IS TO PROVIDE AN INCENTIVE FOR THE VOLUNTARY TRANSITION9
536	532		FROM GAS-POWERED TO ELECTRIC -POWERED SMALL OFF -ROAD10
537	533		EQUIPMENT.11
538	534		(b) I
539	535		N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH12
540	536		REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE13
541	537		A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY14
542	538		LEGISLATIVE DECLARATION, THE GENERAL ASSEMBLY FURTHER FINDS AND15
543	539		DECLARES THAT:16
544	540		(I) T
545	541		HE GENERAL LEGISLATIVE PURPOSE OF THE TAX CREDIT17
546	542		ALLOWED BY SUBSECTION (2) OF THIS SECTION IS TO INDUCE CERTAIN18
547	543		DESIGNATED BEHAVIORS BY TAXPAYERS , SPECIFICALLY THE PURCHASE OF19
548	544		ELECTRIC, SMALL OFF-ROAD EQUIPMENT; AND20
549	545		(II) I
550	546		N ORDER TO ALLOW THE GENERAL ASSEMBLY AND THE STATE21
551	547		AUDITOR TO MEASURE THE EFFECTIVENESS OF THE CREDIT , THE22
552	548		DEPARTMENT OF REVENUE SHALL SUBMIT TO THE GENERAL ASSEMBLY23
553	549		AND THE STATE AUDITOR AN ANNUAL REPORT IN ACCORDANCE WITH
554	550		24
555	551		SUBSECTION (4) OF THIS SECTION DETAILING THE SALES OF NEW ,25
556	552		ELECTRIC-POWERED, SMALL OFF-ROAD EQUIPMENT, AS REPORTED BY26
557	553		TAXPAYERS CLAIMING THE CREDIT AUTHORIZED UNDER SUBSECTION (2)27
558	554		138
559	555		-15- OF THIS SECTION.1
560	556		(2) (a) F
561	557		OR INCOME TAX YEARS COMMENCING ON OR AFTER
562	558		2
563	559		J
564	560		ANUARY 1, 2023, BUT BEFORE JANUARY 1, 2030, A TAXPAYER IS
565	561		3
566	562		ALLOWED A CREDIT AGAINST THE TAX IMPOSED PURS UANT TO THIS4
567	563		ARTICLE 22 IN AN AMOUNT EQUAL TO THIRTY PERCENT OF THE AGGREGATE5
568	564		PURCHASE PRICE FOR ALL RETAIL SALES, AS THOSE TERMS ARE DEFINED IN6
569	565		SECTION 39-26-102, OF NEW, ELECTRIC-POWERED, SMALL OFF-ROAD7
570	566		EQUIPMENT THAT THE TAXPAYER SOLD IN THE STATE DURING THE TAX8
571	567		YEAR.9
572	568		(b) I
573	569		N ORDER TO QUALIFY FOR THE CREDIT ALLOWED UNDER THIS
574	570		10
575	571		SUBSECTION (2), THE TAXPAYER SHALL PROVIDE A PURCHASER OF A PIECE11
576	572		OF NEW, ELECTRIC-POWERED, SMALL OFF-ROAD EQUIPMENT, A THIRTY12
577	573		PERCENT DISCOUNT FROM THE PURCHASE PRICE OF THE PIECE OF NEW ,13
578	574		ELECTRIC-POWERED, SMALL OFF-ROAD EQUIPMENT AND SHALL SHOW THE14
579	575		DISCOUNT AS A SEPARATE ITEM ON THE RECEIPT OR INVOICE PROVIDED TO15
580	576		THE PURCHASER.16
581	577		(c) T
582	578		O DETERMINE WHETHER A TAXPAYER SOLD NEW ,
583	579		17
584	580		ELECTRIC-POWERED, SMALL OFF-ROAD EQUIPMENT IN THIS STATE , THE18
585	581		RULES OF SECTION 39-26-104 (3)(a) APPLY.19
586	582		(3) I
587	583		F THE AMOUNT OF A CREDIT UNDER SUBSECTION (2) OF THIS20
588	584		SECTION EXCEEDS A TAXPAYER'S ACTUAL TAX LIABILITY FOR AN INCOME21
589	585		TAX YEAR, THE AMOUNT OF THE CREDIT NOT USED TO OFFSET INCOME TAX22
590	586		LIABILITY FOR THE INCOME TAX YEAR IS NOT REFUNDED TO THE23
591	587		TAXPAYER. THE TAXPAYER MAY CARRY FORWARD AND APPLY THE24
592	588		UNUSED CREDIT AGAINST THE INCOME TAX DUE IN EACH OF THE FIVE25
593	589		SUCCEEDING INCOME TAX YEARS , BUT THE TAXPAYER SHALL APPLY THE26
594	590		CREDIT AGAINST THE INCOME TAX DUE FOR THE EARLIEST OF THE INCOME27
595	591		138
596	592		-16- TAX YEARS POSSIBLE. ANY AMOUNT OF THE TAX CREDIT THAT IS NOT USED1
597	593		AFTER THIS PERIOD IS NOT REFUNDABLE.2
598	594		(4) F
599	595		OR THE PURPOSE OF PROVIDING DATA THAT ALLOWS THE3
600	596		GENERAL ASSEMBLY AND THE STATE AUDITOR TO MEASURE THE4
601	597		EFFECTIVENESS OF THE TAX CREDIT CREATED IN SUBSECTION (2) OF THIS5
602	598		SECTION PURSUANT TO SECTION 39-21-304 (3), AND NOTWITHSTANDING6
603	599		SECTION 24-1-136 (11)(a)(I), THE DEPARTMENT OF REVENUE , ON OR7
604	600		BEFORE JANUARY 1, 2024, AND ON OR BEFORE JANUARY 1 OF EACH YEAR8
605	601		THEREAFTER, SHALL SUBMIT TO THE GENERAL ASSEMBLY AND THE STATE9
606	602		AUDITOR A REPORT DETAILING THE SALES OF NEW , ELECTRIC-POWERED,
607	603		10
608	604		SMALL OFF-ROAD EQUIPMENT, AS REPORTED BY TAXPAYERS CLAIMING THE11
609	605		CREDIT AUTHORIZED UNDER SUBSECTION (2) OF THIS SECTION. THE TAX12
610	606		CREDIT ESTABLISHED IN THIS SECTION WILL MEET ITS PURPOSE IF SALES OF13
611	607		ELECTRIC-POWERED, SMALL OFF -ROAD EQUIPMENT INCREASE14
612	608		SIGNIFICANTLY WITHIN FIVE YEARS AFTER THE TAX CREDIT BECOMES15
613	609		EFFECTIVE.16
614	610		(5) A
615	611		S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE17
616	612		REQUIRES:18
617	613		(a) "S
618	614		MALL OFF-ROAD ENGINE" MEANS A GASOLINE-POWERED
619	615		19
620	616		ENGINE OF TEN HORSEPOWER OR LESS THAT IS USED TO FUEL SMALL20
621	617		OFF-ROAD EQUIPMENT.21
622	618		(b) "S
623	619		MALL OFF-ROAD EQUIPMENT" MEANS A LAWN MOWER, LEAF
624	620		22
625	621		BLOWER, OR TRIMMER.23
626	622		(c) "T
627	623		AXPAYER" HAS THE MEANING SET FORTH IN SECTION24
628	624		39-21-101
629	625		(4).25
630	626		(6) T
631	627		HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2039.26
632	628		SECTION 13. In Colorado Revised Statutes, 40-3.2-108, amend
633	629		27
634	630		138
635	631		-17- (2)(c)(V); and add (2)(c)(V.5) and (2)(r) as follows:1
636	632		40-3.2-108. Clean heat targets - legislative declaration -2
637	633		definitions - plans - rules - reports. (2) Definitions. As used in this3
638	634		section, unless the context otherwise requires:4
639	635		(c) "Clean heat resource" means any one or a combination of:5
640	636		(V) Pyrolysis of tires if the pyrolysis meets a recovered methane6
641	637		protocol; and7
642	638		(V.5) W
643	639		ASTEWATER THERMAL ENERGY ; AND
644	640		8
645	641		(r) "W
646	642		ASTEWATER THERMAL ENERGY " MEANS A SYSTEM THAT
647	643		9
648	644		USES THERMAL ENERGY IN WASTEWATER TO GENERATE ELECTRICITY , TO10
649	645		HEAT OR COOL A SPACE, OR FOR ANY OTHER USEFUL THERMAL PURPOSE .11
650	646		SECTION 14. Appropriation. (1) For the 2022-23 state fiscal12
651	647		year, $81,429 is appropriated to the department of natural resources for13
652	648		use by the oil and gas conservation commission. This appropriation is14
653	649		from the oil and gas conservation and environmental response fund15
654	650		created in section 34-60-122 (5)(a), C.R.S., and is based on an assumption16
655	651		that the commission will require an additional 0.8 FTE. To implement this17
656	652		act, the commission may use this appropriation for the underground18
657	653		injection program.19
658	654		(2) For the 2022-23 state fiscal year, $145,789 is appropriated to20
659	655		the department of public health and environment for use by the air21
660	656		pollution control division. This appropriation is from the general fund. To22
661	657		implement this act, the subdivision may use this appropriation as follows:23
662	658		(a) $131,094 for personal services related to stationary sources,24
663	659		which amount is based on an assumption that the division will require an25
664	660		additional 1.5 FTE; and26
665	661		(b) $14,695 for operating expenses related to stationary sources.27
666	662		138
667	663		-18- (3) For the 2022-23 state fiscal year, $2,098,784 is appropriated1
668	664		to the department of agriculture for use by the agricultural services2
669	665		division. This appropriation is from the general fund and is based on an3
670	666		assumption that the division will require an additional 0.8 FTE. To4
671	667		implement this act, the division may use this appropriation for5
672	668		conservation services.6
673	669		SECTION 15. Act subject to petition - effective date. This act7
674	670		takes effect at 12:01 a.m. on the day following the expiration of the8
675	671		ninety-day period after final adjournment of the general assembly; except9
676	672		that, if a referendum petition is filed pursuant to section 1 (3) of article V10
677	673		of the state constitution against this act or an item, section, or part of this11
678	674		act within such period, then the act, item, section, or part will not take12
679	675		effect unless approved by the people at the general election to be held in13
680	676		November 2022 and, in such case, will take effect on the date of the14
681	677		official declaration of the vote thereon by the governor.15
682	678		138
683	679		-19-