First Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 23-0918.01 Nicole Myers x4326
HOUSE BILL 23-1247
House Committees Senate Committees
Energy & Environment
A BILL FOR AN ACT
C
ONCERNING A REQUIREMENT THAT THE COLORADO ENERGY OFFICE101
CONDUCT STUDIES TO ASSESS ADVANCED ENERGY SOLUTIONS IN102
RURAL COLORADO.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 requires the director of the Colorado energy office or the
director's designee (director) to conduct studies to assess the use of
advanced energy solutions in rural Colorado. One study must consider
ways to assist northwestern and west end of Montrose county Colorado
as it transitions to producing advanced firm dispatchable energy
HOUSE SPONSORSHIP
Lukens and Winter T.,
SENATE SPONSORSHIP
Roberts and Pelton R.,
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. resources. The other study must consider the potential for the
development of new energy resources in southeastern Colorado. The bill
specifies information that the director is required to consider in both
studies.
On or before July 1, 2025, the director is required to submit the
director's findings and conclusions of both studies to the legislative
committees with jurisdiction over energy matters.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 24-38.5-119 as2
follows:3
24-38.5-119. Assessment of advanced energy solutions in rural4
Colorado - northwestern and west end of Montrose county Colorado5
study - southeastern Colorado study - report - legislative declaration6
- definitions - repeal. (1) (a) T
HE GENERAL ASSEMBLY HEREBY FINDS7
AND DECLARES THAT:8
(I) C
OLORADO IS UNDERGOING AN ENERGY TRANSITION ;9
(II) C
OLORADO'S ENERGY ECONOMY HAS TRADITIONALLY10
SUPPORTED GOOD-PAYING JOBS AND LOCAL COMMUNITIES , AND THE11
STUDY OF RELIABLE AND AFFORDABLE ENERGY TECHNOLOGIES ,12
INCLUDING GAS GENERATION WITH CARBON CAPTURE AND STORAGE ,13
GEOTHERMAL, CLEAN HYDROGEN, ADVANCED NUCLEAR , WIND, SOLAR14
COUPLED WITH STORAGE, LONG DURATION STORAGE, AND TRANSMISSION,15
IS NECESSARY TO HELP SUPPORT THE DEVELOPMENT OF RURAL ECONOMIES16
AND TO CREATE JOBS; AND17
(III) I
N ADDITION, FIRM ENERGY RESOURCES CAN HELP LOWER18
LONG-TERM ELECTRICITY COSTS AND IMPROVE SYSTEM RELIABILITY .19
(b) T
HE GENERAL ASSEMBLY FURTHER FINDS AND DECLARES THAT :20
(I) W
HILE THIS IS A STATEWIDE TRANSITION, THE COUNTIES OF21
M
OFFAT, RIO BLANCO, AND ROUTT IN NORTHWEST COLORADO, AND22
HB23-1247-2- ESPECIALLY THE MUNICIPALITIES OF CRAIG AND HAYDEN, HAVE PLAYED1
A PARTICULARLY IMPORTANT ROLE AS PRODUCERS OF ELECTRIC ENERGY2
POWERED BY THE BURNING OF COAL FROM NEARBY MINES AND WILL3
EXPERIENCE SIGNIFICANT LOSS OF GOOD JOBS AND PROPERTY TAX4
REVENUE. SIMILARLY, THE WEST END OF THE COUNTY OF MONTROSE IN5
WESTERN COLORADO, AND ESPECIALLY THE MUNICIPALITIES OF NATURITA6
AND NUCLA, UNTIL 2019 PLAYED AN IMPORTANT ROLE AS PRODUCERS OF7
ELECTRIC ENERGY POWERED BY THE BURNING OF COAL FROM A NEARBY8
MINE AND HAVE ALREADY EXPERIENCED THE LOSS OF GOOD JOBS AND9
PROPERTY TAX REVENUE AS A THE RESULT OF THIS TRANSITION .10
(II) A
S COLORADO ADVANCES ITS ENERGY TRANSITION , IT IS ALSO11
CONSIDERING THE EXPANSION OF TRANSMISSION THAT WILL UNLOCK12
INVESTMENT IN ENERGY SOLUTIONS IN SOUTHEASTERN COLORADO.13
R
ECENT CONSIDERATIONS OF THE EXPANSION OF TRANSMISSION IN14
SOUTHEASTERN COLORADO INCLUDE A PUBLIC UTILITIES COMMISSION15
DECISION APPROVING AN APPLICATION FOR AN ENERGY COMPANY TO16
BUILD ITS POWER PATHWAY PROJECT, INCLUDING PROVISIONAL APPROVAL17
OF A LINE INTO SOUTHEASTERN COLORADO, AND A RECENT AGREEMENT18
BY ANOTHER ENERGY COMPANY TO STUDY ADDITIONAL TRANSMISSION IN19
SOUTHEASTERN COLORADO AS PART OF ITS RESOURCE PLANNING .20
F
INALLY, THE OFFICE HAS WORKED WITH A BROAD RANGE OF21
STAKEHOLDERS TO SUBMIT A CONCEPT PAPER SEEKING FUNDING FROM THE22
U
NITED STATES DEPARTMENT OF ENERGY TO FUND STAKEHOLDER WORK23
AND STUDIES THAT WOULD, IF FUNDED, STUDY ADDITIONAL TRANSMISSION24
INTO THE SAN LUIS VALLEY AND SOUTHEASTERN COLORADO AS PART OF25
A REGIONAL TRANSMISSION PROJECT .26
(III) D
UE TO THE UNIQUE CIRCUMSTANCES IN NORTHWESTERN AND27
HB23-1247
-3- WEST END OF MONTROSE COUNTY COLORADO AND SOUTHEASTERN1
C
OLORADO AS DESCRIBED IN THIS SUBSECTION (1)(b), DIRECTING THE2
C
OLORADO ENERGY OFFICE TO CONDUCT STUDIES OF ELECTRIC3
TRANSMISSION AND ADVANCED ENERGY SOLUTIONS TECHNOLOGIES IN4
NORTHWESTERN AND WEST END OF MONTROSE COUNTY COLORADO AND5
IN SOUTHEASTERN COLORADO WILL HELP ADDRESS THE NEED FOR FIRM6
ENERGY GENERATION AND SUPPORT THE DEVELOPMENT OF RURAL7
ECONOMIES.8
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE9
REQUIRES:10
(a) "D
IRECTOR" MEANS THE DIRECTOR OF THE OFFICE OR THE11
DIRECTOR'S DESIGNEE.12
(b) "O
FFICE" MEANS THE COLORADO ENERGY OFFICE CREATED IN13
SECTION 24-38.5-101.14
(3) (a) T
HE DIRECTOR SHALL CONDUCT OR CAUSE TO BE15
CONDUCTED STUDIES OF ELECTRIC TRANSMISSION AND ADVANCED ENERGY16
SOLUTIONS TECHNOLOGIES, INCLUDING GEOTHERMAL, CLEAN HYDROGEN,17
ADVANCED NUCLEAR , AND LONG DURATION STORAGE . ONE STUDY MUST18
FOCUS ON NORTHWESTERN AND WEST END OF MONTROSE COUNTY19
C
OLORADO, AS SPECIFIED IN SUBSECTION (3)(b) OF THIS SECTION, AND ONE20
STUDY MUST FOCUS ON SOUTHEASTERN COLORADO, AS SPECIFIED IN21
SUBSECTION (3)(c) OF THIS SECTION.22
(b) Northwestern and west end of Montrose county Colorado23
study. I
N THE NORTHWESTERN AND WEST END OF MONTROSE COUNTY24
C
OLORADO STUDY, THE DIRECTOR MUST EXAMINE OR CAUSE TO BE25
EXAMINED A RANGE OF ADVANCED FIRM DISPATCHABLE ENERGY26
RESOURCES THAT CAN LEVERAGE EXISTING ENERGY INFRASTRUCTURE ,27
HB23-1247
-4- INCLUDING EXISTING SUBSTATION AND TRANSMISSION INFRASTRUCTURE ,1
TO ASSESS WHICH ALTERNATIVE FIRM ENERGY RESOURCES ,2
TECHNOLOGIES, OR COMBINATION OF RESOURCES , INCLUDING SKILLED3
WORKERS FROM THE RETIREMENT OF COAL -FIRED POWER PLANTS, MIGHT4
BEST PRESERVE OR REPLACE JOBS , PROVIDE NEW TAX REVENUE IN5
NORTHWESTERN AND WEST END OF MONTROSE COUNTY COLORADO, AND6
HELP ACHIEVE THE STATE'S ENERGY GOALS. THE OFFICE MUST ALSO7
ASSESS THE EFFECTS OF THOSE RESOURCES ON ELECTRICITY COSTS . IN8
ADDITION, THE NORTHWESTERN AND WEST END OF MONTROSE COUNTY9
C
OLORADO STUDY MUST EXAMINE THE ISSUES SPECIFIED IN SUBSECTION10
(4)
OF THIS SECTION.11
(c) Southeastern Colorado study. I
N THE SOUTHEASTERN12
C
OLORADO STUDY, THE DIRECTOR MUST ASSESS OR CAUSE TO BE13
ASSESSED THE POTENTIAL FOR THE DEVELOPMENT OF NEW ENERGY14
RESOURCES IN SOUTHEASTERN COLORADO. IN ADDITION TO ASSESSING15
THE DEVELOPMENT OF WIND , SOLAR, AND STORAGE, THE STUDY MUST16
ALSO CONSIDER A RANGE OF ADVANCED FIRM DISPATCHABLE ENERGY17
RESOURCES, INCLUDING RESOURCES THAT MAY USE NEW TRANSMISSION18
INVESTMENTS TO ASSESS WHICH ALTERNATIVE FIRM ENERGY RESOURCES ,19
TECHNOLOGIES, OR COMBINATIONS OF RESOURCES MIGHT BEST PRESERVE20
JOBS, PROVIDE NEW TAX REVENUE IN SOUTHEASTERN COLORADO, AND21
HELP ACHIEVE THE STATE 'S ENERGY GOALS . IN ADDITION, THE22
SOUTHEASTERN COLORADO STUDY MUST EXAMINE THE ISSUES SPECIFIED23
IN SUBSECTION (4) OF THIS SECTION.24
(4) T
HE NORTHWESTERN AND WEST END OF MONTROSE COUNTY25
C
OLORADO STUDY AND THE SOUTHEASTERN COLORADO STUDY REQUIRED26
PURSUANT TO SUBSECTION (3) OF THIS SECTION MUST BOTH INCLUDE AN27
HB23-1247
-5- INVESTIGATION INTO AND AN EVALUATION OF THE FOLLOWING :1
(a) T
HE ECONOMICS OF ADVANCED FIRM ENERGY RESOURCES IN2
THE REGION, INCLUDING:3
(I) T
HE ECONOMIC FORECASTS NEEDED TO SUPPORT ADVANCED4
ENERGY SOLUTIONS GENERATION INTEGRATED WITH OTHER ENERGY5
SOURCES IN THE REGION;6
(II) T
HE TIME FRAME FOR THE DEPLOYMENT OF ADVANCED7
ENERGY SOLUTIONS GENERATION ; AND8
(III) T
HE IMPACTS AND RISKS OF ADVANCED ENERGY SOLUTIONS9
GENERATION TO UTILITY RATEPAYERS ;10
(b) M
ETHODS TO PROVIDE NEW EMPLOYMENT OPPORTUNITIES FOR11
HIGHLY SKILLED WORKERS TO ASSIST THE REGION IN THE TRANSITION TO12
ENERGY SOLUTIONS FOR ELECTRICITY GENERATION , INCLUDING:13
(I) P
OTENTIAL JOB OPPORTUNITIES FOR HIGHLY SKILLED WORKERS ;14
(II) T
HE QUANTITY OF POTENTIAL JOBS FOR HIGHLY SKILLED15
WORKERS;16
(III) T
HE LIKELY COMPENSATION THAT THE JOBS WILL PROVIDE ;17
AND18
(IV) T
HE SKILL SETS THAT HIGHLY SKILLED WORKERS WOULD BE19
REQUIRED TO HAVE TO BE QUALIFIED TO PERFORM THE JOBS ;20
(c) T
HE ESTIMATED PROPERTY TAX REVENUE THAT WILL RESULT21
FROM FIRM ENERGY GENERATION IN THE REGION ;22
(d) T
HE WAYS IN WHICH THE TRANSITION TO NEW ENERGY23
RESOURCES CAN HELP UTILITY COMPANIES THAT OPERATE IN THE REGION24
USE EXISTING CAPITAL INVESTMENT IN PLANT AND TRANSMISSION LINES25
TO ADVANCE FIRM ENERGY GENERATION ;26
(e) T
HE REGULATORY AND LEGISLATIVE FRAMEWORK THAT IS27
HB23-1247
-6- NECESSARY TO SUPPORT THE TRANSITION TO FIRM POWER GENERATION IN1
THE REGION, INCLUDING THE USE OF FEDERAL FUNDING TO HELP SUPPORT2
THE DEVELOPMENT OF NEW ENERGY RESOURCES IN NORTHWESTERN AND3
WEST END OF MONTROSE COUNTY COLORADO, AND SOUTHEASTERN4
C
OLORADO;5
(f) T
HE POTENTIAL OPPORTUNITIES TO LEVERAGE FEDERAL TAX6
CREDITS, GRANTS, AND LOANS, INCLUDING PROGRAMS SPECIFICALLY7
TARGETED TOWARD ENERGY TRANSITION COMMUNITIES , TO SUPPORT8
ADVANCED ENERGY SOLUTIONS DEPLOYMENT ;9
(g) T
HE STEPS THAT SHOULD BE TAKEN IN THE REGION TO10
ADVANCE THE POSSIBILITY OF GEOTHERMAL , ADVANCED NUCLEAR, CLEAN11
HYDROGEN, CARBON CAPTURE NATURAL GAS POWER PLANTS , LONG12
DURATION ENERGY STORAGE , AND OTHER FIRM ENERGY SOURCES AS PART13
OF THE CARBON FREE GOALS SET BY COLORADO;14
(h) W
HETHER SCALABLE OR DISPATCHABLE ELECTRICITY FROM15
ADVANCED NUCLEAR AND OTHER FIRM ENERGY GENERATION SOURCES16
CAN ENSURE THAT THE ELECTRICAL GRID MAKES OPTIMAL USE OF17
INTERMITTENT RESOURCES;18
(i) T
HE COST IMPLICATIONS FOR POTENTIAL TECHNOLOGY19
PATHWAYS AND THE IMPACTS OF SUCH TECHNOLOGY PATHWAYS ON20
UTILITY RATEPAYERS; AND21
(j) A
NY OTHER INFORMATION THAT THE DIRECTOR DEEMS22
NECESSARY.23
(5) O
N OR BEFORE JULY 1, 2025, THE DIRECTOR SHALL SUBMIT THE24
FINDINGS AND CONCLUSIONS OF THE NORTHWESTERN AND WEST END OF25
M
ONTROSE COUNTY COLORADO STUDY AND THE SOUTHEASTERN26
C
OLORADO STUDY REQUIRED IN SUBSECTION (3) OF THIS SECTION TO THE27
HB23-1247
-7- HOUSE OF REPRESENTATIVES ENERGY AND ENVIRONMENT COMMITTEE AND1
THE SENATE TRANSPORTATION AND ENERGY COMMITTEE , OR THEIR2
SUCCESSOR COMMITTEES. THE FINDINGS AND CONCLUSIONS SUBMITTED3
MUST INCLUDE ANY RECOMMENDATIONS INCLUDING ADMINISTRATIVE OR4
LEGISLATIVE ACTION NEEDED TO ASSIST NORTHWESTERN AND WEST END5
OF MONTROSE COUNTY COLORADO IN THE TRANSITION TO FIRM ENERGY6
GENERATION SOURCES AND TO ASSIST SOUTHEASTERN COLORADO IN THE7
DEVELOPMENT OF NEW ENERGY RESOURCES .8
(6) T
HIS SECTION IS REPEALED, EFFECTIVE SEPTEMBER 1, 2026.9
SECTION 2. Act subject to petition - effective date. This act10
takes effect at 12:01 a.m. on the day following the expiration of the11
ninety-day period after final adjournment of the general assembly; except12
that, if a referendum petition is filed pursuant to section 1 (3) of article V13
of the state constitution against this act or an item, section, or part of this14
act within such period, then the act, item, section, or part will not take15
effect unless approved by the people at the general election to be held in16
November 2024 and, in such case, will take effect on the date of the17
official declaration of the vote thereon by the governor.18
HB23-1247
-8-