HOUSE BILL 23-1247
BY REPRESENTATIVE(S) Lukens and Winter T., Amabile, Bockenfeld,
Bradley, Brown, Daugherty, deGruy Kennedy, Dickson, Duran, Evans,
Joseph, Kipp, Lieder, Lindsay, Lindstedt, Lynch, Marshall, McCormick,
McLachlan, Michaelson Jenet, Pugliese, Soper, Taggart, Vigil, Weinberg,
Woodrow, McCluskie;
also SENATOR(S) Roberts and Pelton R., Bridges, Buckner, Coleman,
Exum, Hansen, Hinrichsen, Kirkmeyer, Marchman, Mullica, Pelton B.,
Priola, Simpson, Will.
C
ONCERNING A REQUIREMENT THAT THE COLORADO ENERGY OFFICE
CONDUCT STUDIES TO ASSESS ADVANCED ENERGY SOLUTIONS IN
RURAL
COLORADO, AND, IN CONNECTION THEREWITH, MAKING AN
APPROPRIATION
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, add 24-38.5-121 as
follows:
24-38.5-121. Assessment of advanced energy solutions in rural
Colorado - northwestern and west end of Montrose county Colorado
study - southeastern Colorado study - report - legislative declaration -
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. definitions - repeal. (1) (a) T HE GENERAL ASSEMBLY HEREBY FINDS AND
DECLARES THAT
:
(I) C
OLORADO IS UNDERGOING AN ENERGY TRANSITION ;
(II) C
OLORADO'S ENERGY ECONOMY HAS TRADITIONALLY
SUPPORTED GOOD
-PAYING JOBS AND LOCAL COMMUNITIES , AND THE STUDY
OF RELIABLE AND AFFORDABLE ENERGY TECHNOLOGIES
, INCLUDING GAS
GENERATION WITH CARBON CAPTURE AND STORAGE
, GEOTHERMAL, CLEAN
HYDROGEN
, ADVANCED NUCLEAR, WIND, SOLAR COUPLED WITH STORAGE ,
LONG DURATION STORAGE , AND TRANSMISSION, IS NECESSARY TO HELP
SUPPORT THE DEVELOPMENT OF RURAL ECONOMIES AND TO CREATE JOBS
;
AND
(III) IN ADDITION, FIRM ENERGY RESOURCES CAN HELP LOWER
LONG
-TERM ELECTRICITY COSTS AND IMPROVE SYSTEM RELIABILITY .
(b) T
HE GENERAL ASSEMBLY FURTHER FINDS AND DECLARES THAT :
(I) W
HILE THIS IS A STATEWIDE TRANSITION , THE COUNTIES OF
MOFFAT, RIO BLANCO, AND ROUTT IN NORTHWEST COLORADO, AND
ESPECIALLY THE MUNICIPALITIES OF
CRAIG AND HAYDEN, HAVE PLAYED A
PARTICULARLY IMPORTANT ROLE AS PRODUCERS OF ELECTRIC ENERGY
POWERED BY THE BURNING OF COAL FROM NEARBY MINES AND WILL
EXPERIENCE SIGNIFICANT LOSS OF GOOD JOBS AND PROPERTY TAX REVENUE
.
S
IMILARLY, THE WEST END OF THE COUNTY OF MONTROSE IN WESTERN
COLORADO, AND ESPECIALLY THE MUNICIPALITIES OF NATURITA AND
NUCLA, UNTIL 2019 PLAYED AN IMPORTANT ROLE AS PRODUCERS OF
ELECTRIC ENERGY POWERED BY THE BURNING OF COAL FROM A NEARBY
MINE AND HAVE ALRE ADY EXPERIENCED THE LOSS OF GOOD JOBS AND
PROPERTY TAX REVENUE AS A THE RESULT OF THIS TRANSITION
.
(II) A
S COLORADO ADVANCES ITS ENERGY TRANSITION , IT IS ALSO
CONSIDERING THE EXPANSION OF TRANSMISSION THAT WILL UNLOCK
INVESTMENT IN ENERGY SOLUTIONS IN SOUTHEASTERN
COLORADO. RECENT
CONSIDERATIONS OF THE EXPANSI ON OF TRANSMISSION IN SOUTHEASTERN
COLORADO INCLUDE A PUBLIC UTILITIES COMMISSION DECISION APPROVING
AN APPLICATION FOR AN ENERGY COMPANY TO BUILD ITS POWER PATHWAY
PROJECT
, INCLUDING PROVISIONAL APPROVAL OF A LINE INTO
SOUTHEASTERN
COLORADO, AND A RECENT AGREEMENT BY ANOTHER
PAGE 2-HOUSE BILL 23-1247 ENERGY COMPANY TO STUDY ADDITIONAL TRANSMISSION IN SOUTHEASTERN
COLORADO AS PART OF ITS RESOURCE PLANNING . FINALLY, THE OFFICE HAS
WORKED WITH A BROAD RANGE OF STAKEHOLDERS TO SUBMIT A CONCEPT
PAPER SEEKING FUNDING FROM THE
UNITED STATES DEPARTMENT OF
ENERGY TO FUND STAKEHOLDER WORK AND STUDIES THAT WOULD
, IF
FUNDED
, STUDY ADDITIONAL TRANSMISSION INTO THE SAN LUIS VALLEY
AND SOUTHEASTERN
COLORADO AS PART OF A REGIONAL TRANSMISSION
PROJECT
.
(III) D
UE TO THE UNIQUE CIRCUMSTANCES IN NORTHWESTERN AND
WEST END OF
MONTROSE COUNTY COLORADO AND SOUTHEASTERN
COLORADO AS DESCRIBED IN THIS SUBSECTION (1)(b), DIRECTING THE
COLORADO ENERGY OFFICE TO C ONDUCT STUDIES OF ELECTRIC
TRANSMISSION AND ADVANCED ENERGY SOLUTIONS TECHNOLOGIES IN
NORTHWESTERN AND WEST END OF
MONTROSE COUNTY COLORADO AND IN
SOUTHEASTERN
COLORADO WILL HELP ADDRESS THE NEED FOR FIRM ENERGY
GENERATION AND SUPPORT THE DEVELOPMENT OF RURAL ECONOMIES
.
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
REQUIRES
:
(a) "D
IRECTOR" MEANS THE DIRECTOR OF THE OFFICE OR THE
DIRECTOR
'S DESIGNEE.
(b) "O
FFICE" MEANS THE COLORADO ENERGY OFFICE CREATED IN
SECTION
24-38.5-101.
(3) (a) T
HE DIRECTOR SHALL CONDUCT OR CAUSE TO BE CONDUCTED
STUDIES OF ELECTRIC TRANSMISSION AND A DVANCED ENERGY SOLUTIONS
TECHNOLOGIES
, INCLUDING GEOTHERMAL, CLEAN HYDROGEN, ADVANCED
NUCLEAR
, WIND AND SOLAR COUPLED WITH STORAGE , AND LONG DURATION
STORAGE
. ONE STUDY MUST FOCUS ON NORTHWESTERN AND WEST END OF
MONTROSE COUNTY COLORADO, AS SPECIFIED IN SUBSECTION (3)(b) OF THIS
SECTION
, AND ONE STUDY MUST FOCUS ON SOUTHEASTERN COLORADO, AS
SPECIFIED IN SUBSECTION
(3)(c) OF THIS SECTION.
(b) Northwestern and west end of Montrose county Colorado
study. I
N THE NORTHWESTERN AND WEST END OF MONTROSE COUNTY
COLORADO STUDY, THE DIRECTOR MUST EXAMINE OR CAUSE TO BE
EXAMINED A RANGE OF ADVANCED FIRM DISPATCHABLE ENERGY RESOURCES
PAGE 3-HOUSE BILL 23-1247 THAT CAN LEVERAGE EXISTING ENERGY INFRASTRUCTURE , INCLUDING
EXISTING SUBSTATION AND TRANSMISSION INFRASTRUCTURE
, TO ASSESS
WHICH ALTERNATIVE FIRM ENERGY RESOURCES
, TECHNOLOGIES, OR
COMBINATION OF RESOURCES
, INCLUDING SKILLED WORKERS FROM THE
RETIREMENT OF COAL
-FIRED POWER PLANTS, MIGHT BEST PRESERVE OR
REPLACE JOBS
, PROVIDE NEW TAX REVENUE IN NORTHWESTERN AND WEST
END OF
MONTROSE COUNTY COLORADO, AND HELP ACHIEVE THE STATE'S
ENERGY GOALS
. THE OFFICE MUST ALSO ASSESS THE EFFECTS OF THOSE
RESOURCES ON ELECTRICITY COSTS AND ON DISPROPORTIONATELY IMPACTED
COMMUNITIES
. IN ADDITION, THE NORTHWESTERN AND WEST END OF
MONTROSE COUNTY COLORADO STUDY MUST EXAMINE THE POTENTIAL FOR
GREATER TRANSMISSION AND INTERCONNECTION WITH ENERGY RESOURCES
ON THE WESTERN SLOPE OF
COLORADO AND THE ISSUES SPECIFIED IN
SUBSECTION
(4) OF THIS SECTION.
(c) Southeastern Colorado study. I
N THE SOUTHEASTERN
COLORADO STUDY, THE DIRECTOR MUST ASSESS OR CAUSE TO BE ASSESSED
THE POTENTIAL FOR THE DEVELOPMENT OF NEW ENERGY RESOURCES IN
SOUTHEASTERN
COLORADO. IN ADDITION TO ASSESSING THE DEVELOPMENT
OF WIND
, SOLAR, AND STORAGE, THE STUDY MUST ALSO CONSIDER A RANGE
OF ADVANCED FIRM DISPATCHABLE ENERGY RESOURCES
, INCLUDING
RESOURCES THAT MAY USE NEW TRANSMISSION INVESTMENTS TO ASSESS
WHICH ALTERNATIVE FIRM ENERGY RESOURCES
, TECHNOLOGIES, OR
COMBINATIONS OF RESOURCES MIGHT BEST PRESERVE JOBS
, PROVIDE NEW
TAX REVENUE IN SOUTHEASTERN
COLORADO, AND HELP ACHIEVE THE
STATE
'S ENERGY GOALS. IN ADDITION, THE SOUTHEASTERN COLORADO
STUDY MUST EXAMINE THE ISSUES SPECIFIED IN SUBSECTION
(4) OF THIS
SECTION
.
(4) T
HE NORTHWESTERN AND WEST END OF MONTROSE COUNTY
COLORADO STUDY AND THE SOUTHEASTERN COLORADO STUDY REQUIRED
PURSUANT TO SUBSECTION
(3) OF THIS SECTION MUST BOTH INCLUDE AN
INVESTIGATION INTO AND AN EVALUATION OF THE FOLLOWING
:
(a) T
HE ECONOMICS OF ADVANCED FIRM ENERGY RESOURCES IN THE
REGION
, INCLUDING:
(I) T
HE ECONOMIC FORECASTS NEEDED TO SUPPORT ADVANCED
ENERGY SOLUTIONS GENERATION INTEGRATED WITH OTHER ENERGY
SOURCES IN THE REGION
;
PAGE 4-HOUSE BILL 23-1247 (II) THE TIME FRAME FOR THE DEPLOYMENT OF ADVANCED ENERGY
SOLUTIONS GENERATION
;
(III) T
HE IMPACTS AND RISKS OF ADVANCED ENERGY SOLUTIONS
GENERATION TO UTILITY RATEPAYERS AND TO DISPROPORTIONATELY
IMPACTED COMMUNITIES
; AND
(IV) THE INCENTIVES THAT WOULD BE APPROPRIATE OR AVAILABLE
TO ENCOURAGE THE DEVELOPMENT OF ADVANCED ENERGY GENERATION IN
THE REGION
;
(b) M
ETHODS TO PROVIDE NEW EMPLOYMENT OPPORTUNITIES FOR
HIGHLY SKILLED WORKERS TO ASSIST THE REGION IN THE TRANSITION TO
ENERGY SOLUTIONS FOR ELECTRICITY GENERATION
, INCLUDING:
(I) P
OTENTIAL JOB OPPORTUNITIES FOR HIGHLY SKILLED WORKERS ;
(II) T
HE QUANTITY OF POTENTIAL JOBS FOR HIGHLY SKILLED
WORKERS
;
(III) T
HE LIKELY COMPENSATION THAT THE JOBS WILL PROVIDE ; AND
(IV) THE SKILL SETS THAT HIGHLY SKILLED WORKERS WOULD BE
REQUIRED TO HAVE TO BE QUALIFIED TO PERFORM THE JOBS
;
(c) T
HE ESTIMATED PROPERTY TAX REVENUE THAT WILL RESULT
FROM FIRM ENERGY GENERATION IN THE REGION
;
(d) T
HE WAYS IN WHICH THE TRANSITION TO NEW ENERGY
RESOURCES CAN HELP UTILITY COMPANIES THAT OPERATE IN THE REGION
USE EXISTING CAPITAL INVESTMENT IN PLANT AND TRANSMISSION LINES TO
ADVANCE FIRM ENERGY GENERATION
;
(e) T
HE REGULATORY AND LEGISLATIVE FRAMEWORK THAT IS
NECESSARY TO SUPPORT THE TRANSITION TO FIRM POWER GENERATION IN
THE REGION
, INCLUDING THE USE OF FEDERAL FUNDING TO HELP SUPPORT
THE DEVELOPMENT OF NEW ENERGY RESOURCES IN NORTHWESTERN AND
WEST END OF
MONTROSE COUNTY COLORADO, AND SOUTHEASTERN
COLORADO;
PAGE 5-HOUSE BILL 23-1247 (f) THE POTENTIAL OPPORTUNITIES TO LEVERAGE FEDERAL TAX
CREDITS
, GRANTS, AND LOANS, INCLUDING PROGRAMS SPECIFICALLY
TARGETED TOWARD ENERGY TRANSITION COMMUNITIES
, TO SUPPORT
ADVANCED ENERGY SOLUTIONS DEPLOYMENT
;
(g) T
HE STEPS THAT SHOULD BE TAKEN IN THE REGION TO ADVANCE
THE POSSIBILITY OF GEOTHERMAL
, ADVANCED NUCLEAR, CLEAN HYDROGEN,
CARBON CAPTURE NATURAL GAS POWER PLANTS , LONG DURATION ENERGY
STORAGE
, WIND AND SOLAR COUPLED WITH STORAGE , AND OTHER FIRM
ENERGY SOURCES AS PART OF THE CARBON FREE GOALS SET BY
COLORADO;
(h) W
HETHER SCALABLE OR DISPATCHABLE ELECTRICITY FROM
ADVANCED NUCLEAR AND OTHER FIRM ENERGY GENERATION SOURCES CAN
ENSURE THAT THE ELECTRICAL GRID MAKES OPTIMAL USE OF INTERMITTENT
RESOURCES
;
(i) T
HE COST IMPLICATIONS FOR POTENTIAL TECHNOLOGY PATHWAYS
AND THE IMPACTS OF SUCH TECHNOLOGY PATHWAYS ON UTILITY
RATEPAYERS
; AND
(j) ANY OTHER INFORMATION THAT THE DIRECTOR DEEMS
NECESSARY
.
(5) O
N OR BEFORE JULY 1, 2025, THE DIRECTOR SHALL SUBMIT THE
FINDINGS AND CONCLUSIONS OF THE NORTHWESTERN AND WEST END OF
MONTROSE COUNTY COLORADO STUDY AND THE SOUTHEASTERN COLORADO
STUDY REQUIRED IN SUBSECTION
(3) OF THIS SECTION TO THE HOUSE OF
REPRESENTATIVES ENERGY AND ENVIRONMENT COMMITTEE AND THE
SENATE TRANSPORTATION AND ENERGY COMMITTEE
, OR THEIR SUCCESSOR
COMMITTEES AND TO THE JUST TRANSITION OFFICE CREATED IN SECTION
8-83-503 (1). THE FINDINGS AND CONCLUSIONS SUBMITTED MUST INCLUDE
ANY RECOMMENDATIONS INCLUDING ADMINISTRATIVE OR LEGISLATIVE
ACTION NEEDED TO ASSIST NORTHWESTERN AND WEST END OF
MONTROSE
COUNTY
COLORADO IN THE TRANSITION TO FIRM ENERGY GENERATION
SOURCES AND TO ASSIST SOUTHEASTERN
COLORADO IN THE DEVELOPMENT
OF NEW ENERGY RESOURCES
.
(6) T
HIS SECTION IS REPEALED, EFFECTIVE SEPTEMBER 1, 2026.
SECTION 2. Appropriation. (1) For the 2023-24 state fiscal year,
PAGE 6-HOUSE BILL 23-1247 $50,000 is appropriated to the office of the governor for use by the
Colorado energy office. This appropriation is from revenue received from
the just transition cash fund created in section 8-83-504 (1), C.R.S., that is
appropriated to the department of labor and employment in subsection (1)
of section 4 of House Bill 21-1290, and, as amended by section 4 of House
Bill 22-1394, is further appropriated through the 2023-24 state fiscal year.
The appropriation to the Colorado energy office is based on an assumption
that the office will require an additional 0.1 FTE. To implement this act, the
Colorado energy office may use this appropriation for program
administration.
(2) For the 2023-24 state fiscal year, the general assembly
anticipates that the office of the governor will receive $166,374 in federal
funds for the Colorado energy office to implement this act. This figure is
subject to the "(I)" notation as defined in the annual general appropriation
act for the same fiscal year.
SECTION 3. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly; except
that, if a referendum petition is filed pursuant to section 1 (3) of article V
of the state constitution against this act or an item, section, or part of this act
within such period, then the act, item, section, or part will not take effect
unless approved by the people at the general election to be held in
PAGE 7-HOUSE BILL 23-1247 November 2024 and, in such case, will take effect on the date of the official
declaration of the vote thereon by the governor.
____________________________ ____________________________
Julie McCluskie Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 8-HOUSE BILL 23-1247