First Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 23-0918.01 Nicole Myers x4326
HOUSE BILL 23-1247
House Committees Senate Committees
Energy & Environment Transportation & Energy
Appropriations Appropriations
A BILL FOR AN ACT
C
ONCERNING A REQUIREMENT THAT THE COLORADO ENERGY OFFICE101
CONDUCT STUDIES TO ASSESS ADVANCED ENERGY SOLUTIONS IN102
RURAL
COLORADO, AND, IN CONNECTION THEREWITH, MAKING103
AN APPROPRIATION.104
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
SENATE
2nd Reading Unamended
May 2, 2023
HOUSE
3rd Reading Unamended
April 21, 2023
HOUSE
Amended 2nd Reading
April 19, 2023
HOUSE SPONSORSHIP
Lukens and Winter T., Amabile, Bockenfeld, Bradley, Brown, Daugherty, deGruy
Kennedy, Dickson, Duran, Evans, Joseph, Kipp, Lieder, Lindsay, Lindstedt, Lynch, Marshall,
McCluskie, McCormick, McLachlan, Michaelson Jenet, Pugliese, Soper, Taggart, Vigil,
Weinberg, Woodrow
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. ways to assist northwestern and west end of Montrose county Colorado
as it transitions to producing advanced firm dispatchable energy
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 TRADITI ONALLY10
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
1247-2- (I) WHILE THIS IS A STATEWIDE TRANSITION, THE COUNTIES OF1
M
OFFAT, RIO BLANCO, AND ROUTT IN NORTHWEST COLORADO, AND2
ESPECIALLY THE MUNICIPALITIES OF CRAIG AND HAYDEN, HAVE PLAYED3
A PARTICULARLY IMPORTANT ROLE AS PRODUCERS OF ELECTRIC ENERGY4
POWERED BY THE BURNING OF COAL FROM NEARBY MINES AND WILL5
EXPERIENCE SIGNIFICANT LOSS OF GOOD JOBS AND PROPERTY TAX6
REVENUE. SIMILARLY, THE WEST END OF THE COUNTY OF MONTROSE IN7
WESTERN COLORADO, AND ESPECIALLY THE MUNICIPALITIES OF NATURITA8
AND NUCLA, UNTIL 2019 PLAYED AN IMPORTANT ROLE AS PRODUCERS OF9
ELECTRIC ENERGY POWERED BY THE BURNING OF COAL FROM A NEARBY10
MINE AND HAVE ALREADY EXPERIENCED THE LOSS OF GOOD JOBS AND11
PROPERTY TAX REVENUE AS A THE RESULT OF THIS TRANSITION .12
(II) A
S COLORADO ADVANCES ITS ENERGY TRANSITION , IT IS ALSO13
CONSIDERING THE EXPANSION OF TRANSMISSION THAT WILL UNLOCK14
INVESTMENT IN ENERGY SOLUTIONS IN SOUTHEASTERN COLORADO.15
R
ECENT CONSIDERATIONS OF THE EXPANSION OF TRANSMISSION IN16
SOUTHEASTERN COLORADO INCLUDE A PUBLIC UTILITIES COMMISSION17
DECISION APPROVING AN APPLICATION FOR AN ENERGY COMPANY TO18
BUILD ITS POWER PATHWAY PROJECT, INCLUDING PROVISIONAL APPROVAL19
OF A LINE INTO SOUTHEASTERN COLORADO, AND A RECENT AGREEMENT20
BY ANOTHER ENERGY COMPANY TO STUDY ADDITIONAL TRANSMISSION IN21
SOUTHEASTERN COLORADO AS PART OF ITS RESOURCE PLANNING .22
F
INALLY, THE OFFICE HAS WORKED WITH A BROAD RANGE OF23
STAKEHOLDERS TO SUBMIT A CONCEPT PAPER SEEKING FUNDING FROM THE24
U
NITED STATES DEPARTMENT OF ENERGY TO FUND STAKEHOLDER WORK25
AND STUDIES THAT WOULD, IF FUNDED, STUDY ADDITIONAL TRANSMISSION26
INTO THE SAN LUIS VALLEY AND SOUTHEASTERN COLORADO AS PART OF27
1247
-3- A REGIONAL TRANSMISSION PROJECT .1
(III) D
UE TO THE UNIQUE CIRCUMSTANCES IN NORTHWESTERN AND2
WEST END OF MONTROSE COUNTY COLORADO AND SOUTHEASTERN3
C
OLORADO AS DESCRIBED IN THIS SUBSECTION (1)(b), DIRECTING THE4
C
OLORADO ENERGY OFFICE TO CONDUCT STUDIES OF ELECTRIC5
TRANSMISSION AND ADVANCED ENERGY SOLUTIONS TECHNOLOGIES IN6
NORTHWESTERN AND WEST END OF MONTROSE COUNTY COLORADO AND7
IN SOUTHEASTERN COLORADO WILL HELP ADDRESS THE NEED FOR FIRM8
ENERGY GENERATION AND SUPPORT THE DEVELOPMENT OF RURAL9
ECONOMIES.10
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE11
REQUIRES:12
(a) "D
IRECTOR" MEANS THE DIRECTOR OF THE OFFICE OR THE13
DIRECTOR'S DESIGNEE.14
(b) "O
FFICE" MEANS THE COLORADO ENERGY OFFICE CREATED IN15
SECTION 24-38.5-101.16
(3) (a) T
HE DIRECTOR SHALL CONDUCT OR CAUSE TO BE17
CONDUCTED STUDIES OF ELECTRIC TRANSMISSION AND ADVANCED ENERGY18
SOLUTIONS TECHNOLOGIES, INCLUDING GEOTHERMAL, CLEAN HYDROGEN,19
ADVANCED NUCLEAR ,
WIND AND SOLAR COUPLED WITH STORAGE, AND20
LONG DURATION STORAGE . ONE STUDY MUST FOCUS ON NORTHWESTERN21
AND WEST END OF MONTROSE COUNTY COLORADO, AS SPECIFIED IN22
SUBSECTION (3)(b) OF THIS SECTION, AND ONE STUDY MUST FOCUS ON23
SOUTHEASTERN COLORADO, AS SPECIFIED IN SUBSECTION (3)(c) OF THIS24
SECTION.25
(b) Northwestern and west end of Montrose county Colorado26
study. I
N THE NORTHWESTERN AND WEST END OF MONTROSE COUNTY27
1247
-4- COLORADO STUDY, THE DIRECTOR MUST EXAMINE OR CAUSE TO BE1
EXAMINED A RANGE OF ADVANCED FIRM DISPATCHABLE ENERGY2
RESOURCES THAT CAN LEVERAGE EXISTING ENERGY INFRASTRUCTURE ,3
INCLUDING EXISTING SUBSTATION AND TRANSMISSION INFRASTRUCTURE ,4
TO ASSESS WHICH ALTERNATIVE FIRM ENERGY RESOURCES ,5
TECHNOLOGIES, OR COMBINATION OF RESOURCES , INCLUDING SKILLED6
WORKERS FROM THE RETIREMENT OF COAL -FIRED POWER PLANTS, MIGHT7
BEST PRESERVE OR REPLACE JOBS , PROVIDE NEW TAX REVENUE IN8
NORTHWESTERN AND WEST END OF MONTROSE COUNTY COLORADO, AND9
HELP ACHIEVE THE STATE'S ENERGY GOALS. THE OFFICE MUST ALSO10
ASSESS THE EFFECTS OF THOSE RESOURCES ON ELECTRICITY COSTS AND ON11
DISPROPORTIONATELY IMPACTED COMMUNITIES. IN ADDITION, THE12
NORTHWESTERN AND WEST END OF MONTROSE COUNTY COLORADO13
STUDY MUST EXAMINE THE POTENTIAL FOR GREATER TRANSMISSION AND14
INTERCONNECTION WITH ENERGY RESOURCES ON THE WESTERN SLOPE OF15
COLORADO AND THE ISSUES SPECIFIED IN SUBSECTION (4) OF THIS16
SECTION.17
(c) Southeastern Colorado study. I
N THE SOUTHEASTERN18
C
OLORADO STUDY, THE DIRECTOR MUST ASSESS OR CAUSE TO BE19
ASSESSED THE POTENTIAL FOR THE DEVELOPMENT OF NEW ENERGY20
RESOURCES IN SOUTHEASTERN COLORADO. IN ADDITION TO ASSESSING21
THE DEVELOPMENT OF WIND , SOLAR, AND STORAGE, THE STUDY MUST22
ALSO CONSIDER A RANGE OF ADVANCED FIRM DISPATCHABLE ENERGY23
RESOURCES, INCLUDING RESOURCES THAT MAY USE NEW TRANSMISSION24
INVESTMENTS TO ASSESS WHICH ALTERNATIVE FIRM ENERGY RESOURCES ,25
TECHNOLOGIES, OR COMBINATIONS OF RESOURCES MIGHT BEST PRESERVE26
JOBS, PROVIDE NEW TAX REVENUE IN SOUTHEASTERN COLORADO, AND27
1247
-5- HELP ACHIEVE THE STATE 'S ENERGY GOALS . IN ADDITION, THE1
SOUTHEASTERN COLORADO STUDY MUST EXAMINE THE ISSUES SPECIFIED2
IN SUBSECTION (4) OF THIS SECTION.3
(4) T
HE NORTHWESTERN AND WEST END OF MONTROSE COUNTY4
C
OLORADO STUDY AND THE SOUTHEASTERN COLORADO STUDY REQUIRED5
PURSUANT TO SUBSECTION (3) OF THIS SECTION MUST BOTH INCLUDE AN6
INVESTIGATION INTO AND AN EVALUATION OF THE FOLLOWING :7
(a) T
HE ECONOMICS OF ADVANCED FIRM ENERGY RESOURCES IN8
THE REGION, INCLUDING:9
(I) T
HE ECONOMIC FORECASTS NEEDED TO SUPPORT ADVANCED10
ENERGY SOLUTIONS GENERATION INTEGRATED WITH OTHER ENERGY11
SOURCES IN THE REGION;12
(II) T
HE TIME FRAME FOR THE DEPLOYMENT OF ADVANCED13
ENERGY SOLUTIONS GENERATION ;
14
(III) T
HE IMPACTS AND RISKS OF ADVANCED ENERGY SOLUTIONS15
GENERATION TO UTILITY
RATEPAYERS AND TO DISPROPORTIONATELY16
IMPACTED COMMUNITIES; AND17
(IV) THE INCENTIVES THAT WOULD BE APPROPRIATE OR18
AVAILABLE TO ENCOURAGE THE DEVELOPMENT OF ADVANCED ENERGY19
GENERATION IN THE REGION;20
(b) M
ETHODS TO PROVIDE NEW EMPLOYMENT OPPORTUNITIES FOR21
HIGHLY SKILLED WORKERS TO ASSIST THE REGION IN THE TRANSITION TO22
ENERGY SOLUTIONS FOR ELECTRICITY GENERATION , INCLUDING:23
(I) P
OTENTIAL JOB OPPORTUNITIES FOR HIGHLY SKILLED WORKERS ;24
(II) T
HE QUANTITY OF POTENTIAL JOBS FOR HIGHLY SKILLED25
WORKERS;26
(III) T
HE LIKELY COMPENSATION THAT THE JOBS WILL PROVIDE ;27
1247
-6- AND1
(IV) T
HE SKILL SETS THAT HIGHLY SKILLED WORKERS WOULD BE2
REQUIRED TO HAVE TO BE QUALIFIED TO PERFORM THE JOBS ;3
(c) T
HE ESTIMATED PROPERTY TAX REVENUE THAT WILL RESULT4
FROM FIRM ENERGY GENERATION IN THE REGION ;5
(d) T
HE WAYS IN WHICH THE TRANSITION TO NEW ENERGY6
RESOURCES CAN HELP UTILITY COMPANIES THAT OPERATE IN THE REGION7
USE EXISTING CAPITAL INVESTMENT IN PLANT AND TRANSMISSION LINES8
TO ADVANCE FIRM ENERGY GENERATION ;9
(e) T
HE REGULATORY AND LEGISLATIVE FRAMEWORK THAT IS10
NECESSARY TO SUPPORT THE TRANSITION TO FIRM POWER GENERATION IN11
THE REGION, INCLUDING THE USE OF FEDERAL FUNDING TO HELP SUPPORT12
THE DEVELOPMENT OF NEW ENERGY RESOURCES IN NORTHWESTERN AND13
WEST END OF MONTROSE COUNTY COLORADO, AND SOUTHEASTERN14
C
OLORADO;15
(f) T
HE POTENTIAL OPPORTUNITIES TO LEVERAGE FEDERAL TAX16
CREDITS, GRANTS, AND LOANS, INCLUDING PROGRAMS SPECIFICALLY17
TARGETED TOWARD ENERGY TRANSITION COMMUNITIES , TO SUPPORT18
ADVANCED ENERGY SOLUTIONS DEPLOYMENT ;19
(g) T
HE STEPS THAT SHOULD BE TAKEN IN THE REGION TO20
ADVANCE THE POSSIBILITY OF GEOTHERMAL , ADVANCED NUCLEAR, CLEAN21
HYDROGEN, CARBON CAPTURE NATURAL GAS POWER PLANTS , LONG22
DURATION ENERGY STORAGE ,
WIND AND SOLAR COUPLED WITH STORAGE,23
AND OTHER FIRM ENERGY SOURCES AS PART OF THE CARBON FREE GOALS24
SET BY COLORADO;25
(h) W
HETHER SCALABLE OR DISPATCHABLE ELECTRICITY FROM26
ADVANCED NUCLEAR AND OTHER FIRM ENERGY GENERATION SOURCES27
1247
-7- CAN ENSURE THAT THE ELECTRICAL GRID MAKES OPTIMAL USE OF1
INTERMITTENT RESOURCES;2
(i) T
HE COST IMPLICATIONS FOR POTENTIAL TECHNOLOGY3
PATHWAYS AND THE IMPACTS OF SUCH TECHNOLOGY PATHWAYS ON4
UTILITY RATEPAYERS; AND5
(j) A
NY OTHER INFORMATION THAT THE DIRECTOR DEEMS6
NECESSARY.7
(5) O
N OR BEFORE JULY 1, 2025, THE DIRECTOR SHALL SUBMIT THE8
FINDINGS AND CONCLUSIONS OF THE NORTHWESTERN AND WEST END OF9
M
ONTROSE COUNTY COLORADO STUDY AND THE SOUTHEASTERN10
C
OLORADO STUDY REQUIRED IN SUBSECTION (3) OF THIS SECTION TO THE11
HOUSE OF REPRESENTATIVES ENERGY AND ENVIRONMENT COMMITTEE AND12
THE SENATE TRANSPORTATION AND ENERGY COMMITTEE , OR THEIR13
SUCCESSOR
COMMITTEES AND TO THE JUST TRANSITION OFFICE CREATED14
IN SECTION 8-83-503 (1). THE FINDINGS AND CONCLUSIONS SUBMITTED15
MUST INCLUDE ANY RECOMMENDATIONS INCLUDING ADMINISTRATIVE OR16
LEGISLATIVE ACTION NEEDED TO ASSIST NORTHWESTERN AND WEST END17
OF MONTROSE COUNTY COLORADO IN THE TRANSITION TO FIRM ENERGY18
GENERATION SOURCES AND TO ASSIST SOUTHEASTERN COLORADO IN THE19
DEVELOPMENT OF NEW ENERGY RESOURCES .20
(6) T
HIS SECTION IS REPEALED, EFFECTIVE SEPTEMBER 1, 2026.21 SECTION 2. Appropriation. (1) For the 2023-24 state fiscal22
year, $50,000 is appropriated to the office of the governor for use by the23
Colorado energy office. This appropriation is from revenue received 24
from the just transition cash fund created in section 8-83-504 (1), C.R.S.,25
that is appropriated to the department of labor and employment in26
subsection (1) of section 4 of House Bill 21-1290, and, as amended by27
1247
-8- section 4 of House Bill 22-1394, is further appropriated through the1
2023-24 state fiscal year. The appropriation to the Colorado energy office2
is based on an assumption that the office will require an additional 0.13
FTE. To implement this act, the Colorado energy office may use this4
appropriation for program administration.5
(2) For the 2023-24 state fiscal year, the general assembly6
anticipates that the office of the governor will receive $166,374 in federal7
funds for the Colorado energy office to implement this act. This figure is8
subject to the "(I)" notation as defined in the annual general appropriation9
act for the same fiscal year.10
SECTION 3. Act subject to petition - effective date. This act11
takes effect at 12:01 a.m. on the day following the expiration of the12
ninety-day period after final adjournment of the general assembly; except13
that, if a referendum petition is filed pursuant to section 1 (3) of article V14
of the state constitution against this act or an item, section, or part of this15
act within such period, then the act, item, section, or part will not take16
effect unless approved by the people at the general election to be held in17
November 2024 and, in such case, will take effect on the date of the18
official declaration of the vote thereon by the governor.19
1247
-9-