First Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 23-0784.01 Pierce Lively x2059
HOUSE BILL 23-1210
House Committees Senate Committees
Energy & Environment
A BILL FOR AN ACT
C
ONCERNING CARBON MANAGEMENT , AND, IN CONNECTION101
THEREWITH, ENSURING THAT CARBON M ANAGEMENT PROJECTS102
ARE ELIGIBLE FOR GRANTS UNDER THE INDUSTRIAL AND103
MANUFACTURING OPERATIONS CLEAN AIR G RANT PROGRAM AND104
PROVIDING FOR THE CREATION OF A CARBON MANAGEMENT105
ROADMAP.106
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
.)
"Carbon management" is defined by the bill as any combination of
HOUSE SPONSORSHIP
Dickson,
SENATE SPONSORSHIP
Hansen,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. carbon dioxide removal, carbon storage, carbon capture, and carbon
utilization. The bill ensures that carbon management projects, except for
agricultural, forestry, and enhanced oil recovery projects, are eligible for
money under the industrial and manufacturing operations clean air grant
program.
The bill also requires the Colorado energy office (office) and the
office of economic development to contract with an organization for the
development of a carbon management roadmap for the state. After
receiving a draft of the roadmap, the office will solicit feedback on the
roadmap and the contracted organization will use that feedback to update
the roadmap. The office will present the updated roadmap to the relevant
committees in the general assembly and then later update the general
assembly on the implementation of the roadmap.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 24-38.5-116, add2
(3)(b)(VIII) as follows:3
24-38.5-116. Industrial and manufacturing operations clean4
air grant program - creation - eligibility - fund created - gifts, grants,5
or donations - transfer - legislative declaration - definitions -6
reporting - repeal. (3) Grant program. (b) In administering the grant7
program, the office shall:8
(VIII) (A) E
NSURE THAT ALL TYPES OF CARBON MANAGEMENT9
PROJECTS, WITH THE EXCEPTION OF AGRICULTURAL , FORESTRY, AND10
ENHANCED OIL RECOVERY PROJECTS , ARE ELIGIBLE FOR MONEY UNDER11
THE GRANT PROGRAM.12
(B) A
S USED IN THIS SUBSECTION (3)(b)(VIII), "CARBON13
MANAGEMENT" HAS THE SAME MEANING AS SET FORTH IN SECTION14
24-38.5-119 (1)(a),
AND "ENHANCED OIL RECOVERY " HAS THE SAME15
MEANING AS SET FORTH IN SECTION 24-38.5-119 (1)(b).16
SECTION 2. In Colorado Revised Statutes, add 24-38.5-119 as17
follows:18
HB23-1210-2- 24-38.5-119. Carbon management roadmap - creation -1
requirements - report - definitions - repeal. (1) A
S USED IN THIS2
SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :3
(a) "C
ARBON MANAGEMENT " MEANS ANY COMBINATION OF THE4
FOLLOWING:5
(I) C
ARBON DIOXIDE REMOVAL , WHICH MEANS THE REMOVAL OF6
CARBON DIOXIDE FROM THE ATMOSPHERE ;7
(II) C
ARBON CAPTURE, WHICH MEANS A PROCESS THAT CAPTURES8
CARBON DIOXIDE EMISSIONS BEFORE THEY ARE RELEASED INTO THE9
ATMOSPHERE AND DIVERTS THOSE EMISSIONS FOR USE OR STORAGE ;10
(III) C
ARBON STORAGE, WHICH MEANS VERIFIABLY STORING11
CARBON DIOXIDE IN NON-ATMOSPHERIC LOCATIONS IN SUCH A MANNER12
THAT THE CARBON DIOXIDE WILL NOT ENTER THE ATMOSPHERE FOR AT13
LEAST ONE HUNDRED YEARS ; AND14
(IV) C
ARBON UTILIZATION, WHICH MEANS A PROCESS BY WHICH15
CAPTURED OR REMOVED CARBON IS USED WITHOUT BEING RELEASED INTO16
THE ATMOSPHERE.17
(b) "E
NHANCED OIL RECOVERY " MEANS CARBON MANAGEMENT18
PROPOSALS THAT FACILITATE THE EXTRACTION , REFINEMENT, OR19
DELIVERY OF FOSSIL FUEL ENERGY SOURCES INCLUDING PETROLEUM ,20
NATURAL GAS, AND COAL.21
(c) "M
ONITORING AND REPORTING" MEANS THE MEASUREMENT22
AND REPORTING OF CARBON MANAGEMENT USING AN OBJECTIVE ,23
PEER-REVIEWED, AND SCIENTIFICALLY SUPPORTED METHODOLOGY THAT24
TAKES INTO ACCOUNT BOTH REGIONALLY APPROPRIATE SAMPLING AND25
DATA COLLECTION METHODS TO QUANTIFY EMISSIONS AND REMOVALS26
ASSOCIATED WITH THE CARBON MANAGEMENT PROCESS AND THE27
HB23-1210
-3- DURABILITY OF THE CARBON MANAGEMENT PROCESS . "MONITORING AND1
REPORTING" DOES NOT MEAN USING MODEL -BASED OR STATISTICAL2
METHODS OF MEASUREMENT AND REPORTING .3
(d) "O
FFICE" MEANS THE COLORADO ENERGY OFFICE.4
(e) "Q
UALIFIED ORGANIZATION" MEANS AN ORGANIZATION OR5
ORGANIZATIONS THAT HAVE ALL OF THE FOLLOWING TYPES OF EXPERTISE :6
(I) T
ECHNICAL AND RESEARCH EXPERTISE IN CARBON7
MANAGEMENT TECHNOLOGIES , INCLUDING BUT NOT LIMITED TO:8
(A) A
FFORESTATION, REFORESTATION, AND IMPROVED FOREST9
MANAGEMENT;10
(B) I
NORGANIC AND ORGANIC SOIL CARBON SEQUESTRATION ;11
(C) B
IOCHAR;12
(D) B
IO ENERGY WITH CARBON CAPTURE AND STORAGE ; 13
(E) D
IRECT AIR CAPTURE AND STORAGE;14
(F) B
IOMASS WITH CARBON REMOVAL AND STORAGE ;15
(G) E
NHANCED WEATHERING ;16
(H) C
ARBON MINERALIZATION;17
(I) D
URABLE GEOLOGICAL CARBON SEQUESTRATION ;18
(J) V
ERIFIABLE INDUSTRIAL CARBON CAPTURE PROCESSES ; AND19
(K) D
URABLE PROTEIN-BASED CARBON SEQUESTRATION ; AND20
(II) E
CONOMIC AND MARKET DEVELOPMENT EXPERTISE IN21
ASSESSING THE MARKET RISKS AND OPPORTUNITIES FOR CARBON22
MANAGEMENT PRODUCTS AND APPLICATIONS .23
(f) "R
OADMAP" MEANS THE CARBON MANAGEMENT ROADMAP FOR24
THE STATE OF COLORADO.25
(2) (a) O
N OR BEFORE JANUARY 1, 2024, THE OFFICE SHALL, IN26
COLLABORATION WITH THE COLORADO OFFICE OF ECONOMIC27
HB23-1210
-4- DEVELOPMENT, CONTRACT WITH A QUALIFIED ORGANIZATION FOR THE1
DEVELOPMENT OF A CARBON MANAGEMENT ROADMAP FOR THE STATE OF2
C
OLORADO.3
(b) O
N OR BEFORE SEPTEMBER 1, 2024, THE QUALIFIED4
ORGANIZATION SHALL PRESENT THE ROADMAP TO THE OFFICE AND THE5
C
OLORADO OFFICE OF ECONOMIC DEVELOPMENT . THE OFFICE SHALL6
SOLICIT FEEDBACK ON THE ROADMAP .7
(c) O
N OR BEFORE DECEMBER 1, 2024, THE OFFICE SHALL PRESENT8
THE FEEDBACK IT HAS COLLECTED ON THE ROADMAP TO THE QUALIFIED9
ORGANIZATION AND MAKE THE FEEDBACK AND THE ROADMAP AVAILABLE10
TO THE GENERAL ASSEMBLY .11
(d) O
N OR BEFORE FEBRUARY 28, 2025, THE QUALIFIED12
ORGANIZATION SHALL PRESENT AN UPDATED VERSION OF THE ROADMAP13
THAT CONSIDERS THE PUBLIC COMMENTS PROVIDED BY THE OFFICE . 14
(e) D
URING THE 2025 LEGISLATIVE SESSION, THE OFFICE SHALL15
PRESENT THE ROADMAP TO THE HOUSE OF REPRESENTATIVES ENERGY AND16
ENVIRONMENT COMMITTEE AND THE SENATE TRANSPORTATION AND17
ENERGY COMMITTEE OR THEIR SUCCESSOR COMMITTEES .18
(3) I
N CREATING THE ROADMAP , THE QUALIFIED ORGANIZATION19
SHALL ENSURE THAT THE ROADMAP IDENTIFIES :20
(a) T
HE CARBON MANAGEMENT , CLIMATE, AND ECONOMIC21
OPPORTUNITIES AVAILABLE IN COLORADO THAT BEST DRAW ON22
C
OLORADO'S NATURAL RESOURCES, INDUSTRY, TALENT, LABOR FORCE,23
AND ECONOMIC DEVELOPMENT CAPABILITIES . IN IDENTIFYING ECONOMIC24
OPPORTUNITIES, THE QUALIFIED ORGANIZATION MUST SPECIFICALLY25
INCLUDE THE FOLLOWING ECONOMIC SECTORS :26
(I) C
ONSTRUCTION;27
HB23-1210
-5- (II) AGRICULTURE;1
(III) F
OREST MANAGEMENT ;2
(IV) M
INE RECLAMATION;3
(V) I
NDUSTRIAL MANUFACTURING ;4
(VI) C
EMENT AND CONCRETE;5
(VII) F
OOD AND BEVERAGE; AND6
(VIII) E
XISTING OIL AND GAS INFRASTRUCTURE AND WORKFORCE ;7
(b) T
HE NECESSARY INFRASTRUCTURE TO SUPPORT CARBON8
MANAGEMENT, SUCH AS:9
(I) T
HE BEST RESERVOIRS FOR CARBON DIOXIDE STORAGE ;10
(II) E
XISTING CARBON DIOXIDE PIPELINES AND HOW THOSE11
PIPELINES CAN BEST BE CONNECTED WITH PIPELINES NEEDED FOR12
INDUSTRIAL CARBON MANAGEMENT TO MINIMIZE RISK , INCLUDING RISK TO13
DISPROPORTIONATELY IMPACTED COMMUNITIES ; AND 14
(III) I
NFRASTRUCTURE THAT ALLOWS ACCESS TO CLEAN ENERGY15
RESOURCES, AS THAT TERM IS DEFINED IN SECTION 40-2-125.5 (2)(b), FOR16
CARBON MANAGEMENT PROJECTS ;17
(c) (I) P
OLICIES AND INCENTIVES THAT WOULD :18
(A) A
TTRACT COMPANIES TO DEVELOP OR DEPLOY CARBON19
MANAGEMENT IN THE STATE ;20
(B) E
NCOURAGE THE DEVELOPMENT OF NEW CARBON21
MANAGEMENT TECHNOLOGIES ;22
(C) S
UPPORT THE EXPANSION OF CARBON MANAGEMENT23
COMPANIES IN THE STATE;24
(D) C
ATALYZE PRIVATE INVESTMENT AND MARKET DEVELOPMENT25
IN CARBON MANAGEMENT BY APPLYING GAP FUNDING OR OTHER SUPPORT26
FOR CARBON MANAGEMENT PROJECTS INVOLVING PRIVATE SECTOR27
HB23-1210
-6- PROVIDERS AND BUYERS; AND1
(E) F
OSTER CARBON MANAGEMENT PROJECTS IN THE STATE .2
(II) T
HE QUALIFIED ORGANIZATION SHALL ALSO RECOMMEND3
WHETHER THE POLICIES AND INCENTIVES THAT IT IDENTIFIES PURS UANT TO4
SUBSECTION (3)(c)(I) OF THIS SECTION SHOULD BE IMPLEMENTED5
THROUGH A COMPETITIVE PROCESS ;6
(d) P
UBLIC INTEREST GUARDRAILS INCLUDING :7
(I) E
XCLUDING OIL AND GAS EXTRACTION APPLICATIONS , SUCH AS8
ENHANCED OIL RECOVERY , FROM CARBON MANAGEMENT FUNDING ;9
(II) R
EQUIRING FAIR LABOR PRACTICES SUCH AS :10
(A) P
REVAILING WAGES WITH COMMENSURATE BENEFITS ;11
(B) A
PPRENTICESHIP UTILIZATION REQUIREMENTS ;12
(C) P
ROJECT LABOR AGREEMENTS ;13
(D) L
OCAL HIRE AND TARGETED HIRE PROVISIONS ; AND14
(E) O
RGANIZING RIGHTS; AND15
(III) A
PPLYING STRICT ENVIRONMENTAL JUSTICE STANDARDS SO16
THAT:17
(A) C
ARBON MANAGEMENT METHODS AND PROJECTS THAT POSE18
RISKS TO HEALTH , OPPORTUNITY, AND QUALITY OF LIFE IN19
DISPROPORTIONATELY IMPACTED COMMUNITIES ARE EXCLUDED FROM20
CARBON MANAGEMENT FUNDING ;21
(B) C
ARBON MANAGEMENT FUNDING IS NOT USED TO FUND22
COMPLIANCE MECHANISMS INVOLVING EXISTING FACILITIES OR FACILITIES23
THAT EITHER ARE NOT IN COMPLIANCE WITH AIR PERMITS OR HAVE A24
HISTORY OF PERMIT VIOLATIONS THAT IMPOSE HARMS AND RISKS ON25
COMMUNITIES WITHIN THE PREVIOUS FIVE YEARS ; AND26
(C) R
EPRESENTATIVES OF ENVIRONMENTAL JUSTICE ADVOCACY27
HB23-1210
-7- GROUPS, LABOR, JUST TRANSITION GROUPS, AND TRIBAL COMMUNITIES ARE1
INVOLVED IN THE CREATION OF THE ROADMAP ;2
(e) C
RITERIA FOR CARBON MANAGEMENT PROJECT SELECTION3
INCLUDING:4
(I) P
RIORITIZING:5
(A) C
ERTAIN ECONOMIC SECTORS SUCH AS AGRICULTURE ,6
CONSTRUCTION, MATERIALS MANUFACTURING , FOREST MANAGEMENT ,7
FOOD AND BEVERAGE, RECLAIMED MINING, AND HEAVY INDUSTRY;8
(B) E
MISSIONS REDUCTIONS;9
(C) D
URABILITY AND PERMANENCE ;10
(D) S
OCIAL AND ECONOMIC BENEFITS INCLUDING THE PROTECTION11
OF LABOR RIGHTS AND HIGH-QUALITY JOBS; AND12
(E) G
EOGRAPHIC DISTRIBUTION BY PROVIDING TECHNOLOGICAL13
SOLUTIONS AND SECTOR DIVERSIFICATION WITH THE EXPLICIT GOAL OF14
ENSURING THAT PROJECTS ARE DISTRIBUTED THROUGHOUT THE STATE ;15
(II) D
IVISION OF CARBON MANAGEMENT PROJECTS INTO TIERS OF16
PRIORITIZATION FOR PROJECTS THAT PROVIDE , IN INCREASING ORDER OF17
IMPORTANCE:18
(A) C
ARBON CAPTURE;19
(B) C
ARBON UTILIZATION;20
(C) C
ARBON DIOXIDE REMOVAL ;21
(D) C
ARBON STORAGE; AND22
(E) A
NY COMBINATION OF THE CARBON MANAGEMENT METHODS23
LISTED IN THIS SUBSECTION (3)(e)(II); AND24
(III) E
NSURING THAT PROJECT GOALS CAN BE VALIDATED BY25
RIGOROUS MONITORING AND REPORTING METHODS IN LINE WITH EMERGING26
INTERNATIONAL BEST PRACTICES AND STANDARDS ; AND27
HB23-1210
-8- (f) RECOMMENDATIONS , INCLUDING LEGISLATIVE1
RECOMMENDATIONS FOR THE GENERAL ASSEMBLY AND ADMINISTRATIVE2
RECOMMENDATIONS FOR STATE AGENCIES , ON ISSUES RELATED TO CARBON3
MANAGEMENT.4
(4) I
N CREATING THE ROADMAP, IN ADDITION TO SATISFYING THE5
REQUIREMENTS OF SUBSECTION (3) OF THIS SECTION, THE QUALIFIED6
ORGANIZATION SHALL GATHER :7
(a) W
HERE PRACTICABLE, PROJECT DATA ON THE AMOUNT OF8
CARBON CAPTURED, REMOVED, STORED, OR UTILIZED FOR THE PURPOSE OF:9
(I) H
ELPING TO ASSESS THE MARKET POTENTIAL FOR10
PERFORMANCE-BASED FINANCIAL INCENTIVES IN THE FUTURE ; AND11
(II) E
LEVATING THE CARBON MANAGEMENT POTENTIAL OF12
VARIOUS PROPOSALS AND TECHNOLOGIES ; AND13
(b) O
PERATIONAL DATA INCLUDING :14
(I) Q
UANTITIES AND TYPES OF MATERIALS NEEDED FOR CARBON15
MANAGEMENT FACILITY CONSTRUCTION AND OPERATION ;16
(II) T
HE NUMBER AND TYPES OF JOBS THAT WILL BE CREATED17
RELATED TO CARBON MANAGEMENT AS WELL AS THE TIMELINE OF JOB18
CREATION;19
(III) T
HE OPERATIONAL REQUIREMENTS FOR CARBON20
MANAGEMENT FACILITIES INCLUDING ENERGY INFRASTRUCTURE ,21
CONSTRUCTION COSTS, AND STAFFING; AND22
(IV) T
HE OPPORTUNITIES FOR SKILL MATCHING AMONG EXISTING23
PROFESSIONS.24
(5) I
N CREATING THE ROADMAP , THE QUALIFIED ORGANIZATION25
MAY REFERENCE OR RELY ON WORK DONE BY STATE AGENCIES OR LOCAL26
GOVERNMENTS.27
HB23-1210
-9- (6) (a) IN SOLICITING FEEDBACK ON THE ROADMAP PURSUANT TO1
SUBSECTION (2)(b) OF THIS SECTION, THE OFFICE SHALL CONDUCT2
STAKEHOLDER MEETINGS WITH INTER ESTED PERSONS THROUGHOUT THE3
STATE, INCLUDING:4
(I) L
ABOR ORGANIZATIONS;5
(II) E
NVIRONMENTAL ADVOCACY GROUPS ;6
(III) I
NDUSTRIES OR PROFESSIONS RELATED TO CARBON7
MANAGEMENT;8
(IV) S
TATEWIDE ASSOCIATIONS OF MECHANICAL , ELECTRICAL,9
AND PLUMBING CONTRACTORS ;10
(V) T
RIBAL GOVERNMENTS; AND 11
(VI) C
OMMUNITY LEADERS.12
(b) T
HE OFFICE SHALL ALSO SOLICIT FEEDBACK FROM : 13
(I) T
HE COLORADO OFFICE OF ECONOMIC DEVELOPMENT ; 14
(II) T
HE DEPARTMENT OF TRANSPORTATION ;15
(III) T
HE DEPARTMENT OF NATURAL RESOURCES ;16
(IV) T
HE DEPARTMENT OF AGRICULTURE ;17
(V) T
HE STATE ARCHITECT;18
(VI) T
HE GOVERNOR'S OFFICE;19
(VII) T
HE ENVIRONMENTAL JUSTICE OMBUDSPERSON IN THE20
DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT APPOINTED21
PURSUANT TO SECTION 25-1-134 (1) OR THE OMBUDSPERSON'S DESIGNEE;22
AND23
(VIII) T
HE DIRECTOR OF THE JUST TRANSITION OFFICE CREATED IN24
SECTION 8-83-503 OR THE DIRECTOR'S DESIGNEE.25
(7) D
URING THE 2026 AND 2027 LEGISLATIVE SESSIONS, THE26
OFFICE SHALL PRESENT TO THE HOUSE OF REPRESENTATIVES ENERGY AND27
HB23-1210
-10- ENVIRONMENT COMMITTEE AND THE SENATE TRANSPORTATION AND1
ENERGY COMMITTEE OR THEIR SUCCESSOR COMMITTEES :2
(a) T
HE PROGRESS MADE IN IMPLEMENTING THE GOALS IDENTIFIED3
IN THE ROADMAP; AND4
(b) A
NY RECOMMENDATIONS , INCLUDING LEGISLATIVE5
RECOMMENDATIONS FOR THE GENERAL ASSEMBLY AND ADMINISTRATIVE6
RECOMMENDATIONS FOR STATE AGENCIES , NECESSARY TO BETTER7
IMPLEMENT THE GOALS IDENTIFIED IN THE ROADMAP .8
SECTION 3. Act subject to petition - effective date. This act9
takes effect at 12:01 a.m. on the day following the expiration of the10
ninety-day period after final adjournment of the general assembly; except11
that, if a referendum petition is filed pursuant to section 1 (3) of article V12
of the state constitution against this act or an item, section, or part of this13
act within such period, then the act, item, section, or part will not take14
effect unless approved by the people at the general election to be held in15
November 2024 and, in such case, will take effect on the date of the16
official declaration of the vote thereon by the governor.17
HB23-1210
-11-