First Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 23-0601.01 Jennifer Berman x3286
HOUSE BILL 23-1252
House Committees Senate Committees
Energy & Environment
A BILL FOR AN ACT
C
ONCERNING THE IMPLEMENTATION OF MEASURES TO ADVANCE101
THERMAL ENERGY SERVICE .102
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
.)
Section 2 of the bill authorizes the Colorado energy office to
award grants for retrofitting existing buildings for installation of a
geothermal system for heating and cooling under the single-structure
geothermal grant that the office administers and for generating
geothermal energy through direct air capture technology under the
geothermal electricity generation grant that the office administers.
HOUSE SPONSORSHIP
Lieder and Kipp,
SENATE SPONSORSHIP
(None),
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. Section 3 establishes labor standards for thermal energy public
projects that a state agency or a state institution of higher education
procures.
In Colorado, a gas distribution utility providing gas service to more
than 90,000 retail customers is required to file with the public utilities
commission (commission) a clean heat plan, which is a plan
demonstrating how the utility will use clean heat resources to meet clean
heat targets for reducing carbon dioxide and methane emissions. Section
4 adds thermal energy as an eligible clean heat resource for helping to
meet clean heat targets.
Section 5 authorizes a gas utility that is regulated by the
commission to apply for review and approval of the use of thermal energy
networks in the gas utility's service area. A gas utility that is regulated by
the commission and that serves more than 500,000 customers is required
to propose pilot thermal energy network projects for the commission's
review and approval. The commission shall initiate a proceeding on or
before January 1, 2025, to determine if rule-making or legislative changes
are needed to facilitate the development of thermal energy in the state.
Section 6 repeals the "Geothermal Heat Suppliers Act", which act
requires geothermal heat suppliers to obtain operating permits from the
commission.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
finds that:3
(a) Colorado adopted Senate Bill 21-264, enacted in 2021, that4
requires regulated gas utilities to develop a clean heat plan to meet a four5
percent reduction below 2015 greenhouse gas emission levels by 20256
and a twenty-two percent reduction below 2015 greenhouse gas emission7
levels by 2030;8
(b) The use of gas to heat and cool buildings and to heat water is9
a significant source of greenhouse gas emissions in the state. Shifting end10
uses to nonemitting thermal energy can help reduce greenhouse gas11
emissions from buildings.12
(c) The development of thermal energy in Colorado could help13
HB23-1252-2- reduce greenhouse gas emissions from buildings and stabilize energy bills1
by helping reduce utility customers' reliance on gas;2
(d) Gas utility workers have helped provide reliable energy3
throughout the state. Affording gas utilities a pathway to providing4
thermal energy service in the state also provides gas utility employees an5
opportunity to utilize many of their existing skills for clean energy jobs6
for the utility.7
(e) Colorado residential and business utility customers have been8
affected by recent trends in gas prices. Helping these utility customers9
shift from gas to clean thermal energy service could provide long-term10
price stability for heating and cooling their homes and businesses and for11
heating water in their homes and businesses.12
(f) The use of thermal energy networks can help reduce13
greenhouse gas emissions from buildings and enhance resilience while14
supporting load increases to the state's electric grid. Utility-scale thermal15
energy projects and investments can especially help the state achieve16
these goals.17
(2) The general assembly declares that:18
(a) Requiring gas utilities to present different approaches for cost19
recovery of investments in thermal energy service, and requiring the20
public utilities commission to consider the cost to customers under each21
approach presented, will help minimize the long-term cost to utility22
customers for the cost of transitioning to clean thermal energy service;23
(b) It is important to pursue the decarbonization of buildings in the24
state in a manner that:25
(I) Is affordable and accessible;26
(II) Preserves existing living-wage jobs while also creating new27
HB23-1252
-3- living-wage jobs; and1
(III) Retains the knowledge and experience of the existing utility2
union workforce;3
(c) Passage of this act is intended for the purposes of:4
(I) Removing the legal barriers to utilities' development of thermal5
energy networks;6
(II) Requiring the public utilities commission to evaluate utilities'7
development of thermal energy networks; and8
(III) Immediately commencing the piloting of thermal energy9
network projects by certain utilities; and10
(d) In evaluating a gas utility's application to provide thermal11
energy service, the public utilities commission should consider any12
potential that the utility may have to reuse existing infrastructure that13
otherwise would result in stranded assets.14
SECTION 2. In Colorado Revised Statutes, 24-38.5-118, amend15
(4)(a) introductory portion, (4)(a)(I), (4)(a)(II), (4)(a)(IV), and (4)(c)(II)16
as follows:17
24-38.5-118. Geothermal energy grant program - creation -18
procedures - fund - report - definitions - repeal. (4) Grants -19
limitations - qualifications. The grant program consists of three types of20
grants:21
(a) The single-structure geothermal grant, which is awarded to22
applicants that are constructing a new building
OR RETROFITTING AN23
EXISTING BUILDING, including a single-family or multifamily residence,24
and that are
installing a geothermal system for use as the primary heating25
and cooling system for the building. A single-structure geothermal grant26
is subject to the following limitations and qualifications:27
HB23-1252
-4- (I) A developer or geothermal installer is eligible for grants for the1
construction
OR RETROFITTING of no more than one hundred residential2
buildings;3
(II) Commercial buildings and state and local government4
buildings that are constructed
OR RETROFITTED using grant money must5
meet the standards of the 2021 International Energy Conservation Code,6
or subsequent edition of the code;7
(IV) The office shall determine the amount of each grant based on8
per-ton heating capacity as follows; except that the office may change a9
grant award amount after the first year if the office determines that10
changes are necessary to advance geothermal development:11
(A) A nonresidential building constructed
OR RETROFITTED by a12
for-profit entity qualifies for up to two thousand dollars per ton of heating13
capacity;14
(B) A nonresidential building constructed
OR RETROFITTED by a15
nonprofit entity qualifies for up to three thousand dollars per ton of16
heating capacity;17
(C) A multifamily residence constructed
OR RETROFITTED by a18
for-profit entity qualifies for up to two thousand dollars per ton of heating19
capacity;20
(D) A multifamily residence constructed
OR RETROFITTED by a21
nonprofit entity qualifies for up to three thousand dollars per ton of22
heating capacity; and23
(E) A single-family residence, including a residence within a24
townhome or condominium building, qualifies for two thousand dollars25
per ton of heating capacity; and26
(c) The geothermal electricity generation grant, which is awarded27
HB23-1252
-5- to support the development of geothermal electricity generation and1
projects that pair geothermal electricity generation with electrolyzers for2
the production of hydrogen from geothermal generation. A person may3
apply for more than one cost-matching grant in a year. A geothermal4
electricity generation grant is subject to the following limitations and5
qualifications:6
(II) For applications for a grant to help fund a study to identify7
and explore resources that may be suitable for geothermal electricity8
generation, costing up to one million dollars, the office may award a grant9
of up to fifty percent of the study cost; except that, if the project includes10
the production of hydrogen from electricity generated using geothermal11
energy
OR THE UTILIZATION OF DIRECT AIR CAPTURE TECHNOLOGY , the12
office may award a grant of up to sixty percent of the study cost;13
SECTION 3. In Colorado Revised Statutes, add 40-3.2-105.7 as14
follows:15
40-3.2-105.7. Labor standards for state thermal energy16
network and thermal energy system projects - definitions. (1) A
NY17
THERMAL ENERGY NETWORK OR THERMAL ENERGY SYSTEM PROJECT THAT18
AN AGENCY OF GOVERNMENT OR A STATE INSTITUTION OF HIGHER19
EDUCATION PROCURES AND THAT IS A PUBLIC PROJECT MUST COMPLY20
WITH:21
(a) T
HE APPRENTICESHIP REQUIREMENTS SET FORTH IN SECTION22
24-92-115
IF THE ESTIMATED CONTRACT COST FOR THE PUBLIC PROJECT IS23
ONE MILLION DOLLARS OR MORE ; AND24
(b) P
ART 2 OF ARTICLE 92 OF TITLE 24 CONCERNING PREVAILING25
WAGES FOR PUBLIC PROJECTS IF THE ESTIMATED CONTRACT COST FOR THE26
PUBLIC PROJECT IS FIVE HUNDRED THOUSAND DOLLARS OR MORE .27
HB23-1252
-6- (2) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE1
REQUIRES:2
(a) "A
GENCY OF GOVERNMENT " HAS THE MEANING SET FORTH IN3
SECTION 24-92-201 (1).4
(b) "P
UBLIC PROJECT" HAS THE MEANING SET FORTH IN SECTION5
24-92-201
(5).6
(c) "S
TATE INSTITUTION OF HIGHER EDUCATION " HAS THE7
MEANING SET FORTH IN SECTION 23-18-102 (10).8
(d) "T
HERMAL ENERGY NETWORK " HAS THE MEANING SET FORTH9
IN SECTION 40-3.2-108 (2)(s).10
(e) "T
HERMAL ENERGY SYSTEM " HAS THE MEANING SET FORTH IN11
SECTION 40-3.2-108 (2)(t).12
SECTION 4. In Colorado Revised Statutes, 40-3.2-108, amend13
(2)(c)(V); and add (2)(c)(V.5), (2)(h.5), (2)(r), (2)(s), (2)(t), and14
(4)(c)(XIV.5) as follows:15
40-3.2-108. Clean heat targets - legislative declaration -16
definitions - plans - rules - reports. (2) Definitions. As used in this17
section, unless the context otherwise requires:18
(c) "Clean heat resource" means any one or a combination of:19
(V) Pyrolysis of tires if the pyrolysis meets a recovered methane20
protocol; and
21
(V.5) T
HERMAL ENERGY; AND22
(h.5) "G
EOTHERMAL FLUID" HAS THE MEANING SET FORTH IN23
SECTION 37-90.5-103 (2).24
(r) (I) "T
HERMAL ENERGY" MEANS PIPED, NONCOMBUSTIBLE25
FLUIDS USED FOR ADDING OR REMOVING HEAT FROM BUILDINGS FOR THE26
PURPOSE OF EFFICIENT BUILDING TEMPERATURE CONTROL AND DOMESTIC27
HB23-1252
-7- HOT WATER, INCLUDING SPACE HEATING AND COOLING AND1
REFRIGERATION.2
(II) "T
HERMAL ENERGY" INCLUDES METHODS OF EXCHANGING THE3
PIPED, NONCOMBUSTIBLE FLUIDS THROUGH THE GROUND , WASTEWATER4
TREATMENT FACILITIES, OR OTHER SOURCES THAT ACHIEVE DESIRED FLUID5
TEMPERATURES; EXCEPT THAT ANY METHOD OF EXCHANGING THE PIPED ,6
NONCOMBUSTIBLE FLUIDS MUST NOT :7
(A) C
AUSE COMBUSTION OF ADDITIONAL FOSSIL FUEL ; OR8
(B) B
E DERIVED FROM A SYSTEM FOR WHICH THE PRIMARY9
PURPOSE IS TO GENERATE ELECTRICITY , INCLUDING ANY PROCESS10
INVOLVING ENGINE-DRIVEN GENERATION.11
(s) "T
HERMAL ENERGY NETWORK ":12
(I) M
EANS ALL REAL ESTATE, FIXTURES, AND PERSONAL PROPERTY13
THAT ARE OPERATED, OWNED, USED, OR INTENDED TO BE USED FOR, IN14
CONNECTION WITH, OR TO FACILITATE A DISTRIBUTION INFRASTRUCTURE15
PROJECT THAT SUPPLIES THERMAL ENERGY TO TWO OR MORE BUILDINGS16
THAT ARE NOT A CAMPUS, AS DEFINED IN SECTION 40-4-121 (1)(a), OR TO17
ONE OR MORE BUILDINGS THAT ARE MULTIFAMILY RESIDENCES WITH18
CENTRAL BUILDING HEATING AND COOLING OR WATER HEATING SYSTEMS19
AND THAT ASSISTS IN REDUCING GREENHOUSE GAS EMISSIONS IN THE20
STATE;21
(II) C
ONSISTS OF PIPE LOOPS BETWEEN MULTIPLE BUILDINGS AND22
ENERGY SOURCES CARRYING PIPED, NONCOMBUSTIBLE FLUIDS AT AMBIENT23
TEMPERATURE;24
(III) I
NCLUDES A NETWORK THAT CAN BE USED FOR HEATING ,25
COOLING, AND OTHER BUILDING SERVICES; AND26
(IV) M
AY ALSO BE KNOWN AS A GEOTHERMAL EXCHANGE27
HB23-1252
-8- DISTRICT, NETWORKED GEOTHERMAL SYSTEM , GEOEXCHANGE SYSTEM ,1
GEOGRID SYSTEM, COMMUNITY GEOTHERMAL HEATING AND COOLING2
DISTRICT, OR A GEOTHERMAL HEATING DISTRICT .3
(t) "T
HERMAL ENERGY SYSTEM" INCLUDES A GEOTHERMAL SYSTEM4
OR OTHER METHOD OF EXCHANGING THE PIPED , NONCOMBUSTIBLE FLUIDS5
THROUGH THE GROUND, WASTEWATER TREATMENT FACILITIES , OR OTHER6
SOURCES THAT ACHIEVE DESIRED FLUID TEMPERATURES .7
(4) Submission of clean heat plans. (c) A clean heat plan filed8
pursuant to this subsection (4) must:9
(XIV.5) D
EMONSTRATE THAT, WITH RESPECT TO ANY THERMAL10
ENERGY NETWORK THAT WILL BE USED AS A CLEAN HEAT RESOURCE , ANY11
GEOTHERMAL FLUID ASSOCIATED WITH THE THERMAL ENERGY SYSTEM OR12
THERMAL ENERGY NETWORK IS USED IN COMPLIANCE WITH THE13
PERMITTING REQUIREMENTS FOR PRODUCTION OF GEOTHERMAL FLUID SET14
FORTH IN ARTICLE 90.5 OF TITLE 37; AND15
SECTION 5. In Colorado Revised Statutes, add 40-4-121 as16
follows:17
40-4-121. Thermal energy network projects - pilot program18
for large gas utilities - application - commission proceeding -19
reporting - exemption from regulation for local government- or20
campus-owned thermal energy networks - definitions. (1) A
S USED IN21
THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :22
(a) (I) "C
AMPUS" MEANS A COLLECTION OF TWO OR MORE23
BUILDINGS THAT ARE OWNED AND OPERATED BY THE SAME PERSON AND24
THAT HAVE A SHARED PURPOSE AND FUNCTION AS A SINGLE PROPERTY .25
(II) "C
AMPUS" INCLUDES TWO OR MORE OF THE BUILDINGS THAT26
COMPRISE THE CAPITOL COMPLEX , AS DEFINED IN SECTION 24-82-10127
HB23-1252
-9- (3)(f).1
(b) "D
ISPROPORTIONATELY IMPACTED COMMUNITY " HAS THE2
MEANING SET FORTH IN SECTION 24-4-109 (2)(b)(II).3
(c) "G
AS UTILITY" MEANS A GAS UTILITY IN THE STATE THAT THE4
COMMISSION REGULATES WITH RESPECT TO RATES AND CHARGES .5
(d) "L
ARGE GAS UTILITY" MEANS A GAS UTILITY THAT SERVES6
MORE THAN FIVE HUNDRED THOUSAND CUSTOMERS .7
(e) "L
OCAL GOVERNMENT" MEANS A STATUTORY OR HOME -RULE8
CITY, TOWN, COUNTY, OR CITY AND COUNTY.9
(f) "T
HERMAL ENERGY" HAS THE MEANING SET FORTH IN SECTION10
40-3.2-108 (2)(r).11
(g) "T
HERMAL ENERGY NETWORK " HAS THE MEANING SET FORTH12
IN SECTION 40-3.2-108 (2)(s).13
(2) (a) E
XCEPT AS PROVIDED IN SUBSECTION (3) OF THIS SECTION,14
A GAS UTILITY THAT SEEKS TO OFFER THERMAL ENERGY NETWORK15
SERVICE TO ITS CUSTOMERS MUST PROPOSE DEVELOPING A THERMAL16
ENERGY NETWORK BY A SEPARATE APPLICATION TO THE COMMISSION17
THAT IS NOT INCLUDED IN THE GAS UTILITY 'S APPLICATION TO THE18
COMMISSION FOR APPROVAL OF A CLEAN HEAT PLAN PURSUANT TO19
SECTION 40-3.2-108 OR A GAS DEMAND-SIDE MANAGEMENT PROGRAM20
PLAN PURSUANT TO SECTION 40-3.2-103 (3) OR AS PART OF A STRATEGIC21
ISSUES APPLICATION.22
(b) I
N CONSIDERING WHETHER TO APPROVE A GAS UTILITY 'S23
APPLICATION TO OFFER THERMAL ENERGY NETWORK SERVICE , THE24
COMMISSION SHALL CONSIDER THE LONG -TERM EFFECTS THAT THE25
PROPOSED THERMAL ENERGY NETWORK WOULD HAVE ON THE STATE 'S26
UTILITY WORKFORCE.27
HB23-1252
-10- (3) (a) ON OR BEFORE SEPTEMBER 1, 2024, A LARGE GAS UTILITY1
SHALL SUBMIT TO THE COMMISSION FOR REVIEW AND APPROVAL AT LEAST2
ONE PILOT PROGRAM, CONSISTING OF ONE OR MORE PILOT PROJECTS , TO3
PROVIDE THERMAL ENERGY SERVICE IN ITS SERVICE AREA .4
(b) A
LARGE GAS UTILITY MAY PROPOSE MORE THAN ONE PILOT5
THERMAL ENERGY NETWORK PROGRAM PURSUANT TO THIS SUBSECTION (3)6
BY FILING SEPARATE APPLICATIONS FOR REVIEW AND APPROVAL OF7
ADDITIONAL PILOT PROGRAMS WITH THE COMMISSION ON OR BEFORE8
S
EPTEMBER 1, 2026.9
(c) I
N DEVELOPING A PILOT PROGRAM PROPOSAL , A LARGE GAS10
UTILITY SHALL PROPOSE AS PART OF THE PROPOSED PILOT PROGRAM AT11
LEAST ONE PILOT PROJECT THAT SERVES RESIDENTIAL CUSTOMERS12
LOCATED IN A:13
(I) D
ISPROPORTIONATELY IMPACTED COMMUNITY ;14
(II) M
OUNTAIN COMMUNITY SERVED BY THE LARGE GAS UTILITY ;15
OR16
(III) U
TILITY SERVICE AREA THAT THE COMMISSION HAS17
DETERMINED IS CAPACITY CONSTRAINED .18
(d) A
LARGE GAS UTILITY'S PILOT THERMAL ENERGY NETWORK19
PROGRAM PROPOSAL MUST :20
(I) I
NCLUDE SPECIFIC CUSTOMER PROTECTION PLANS THAT21
PROMOTE STABLE UTILITY RATES;22
(II) B
E MADE PUBLICLY AVAILABLE ON THE COMMISSION 'S23
WEBSITE; AND24
(III) I
F APPROVED, BE IMPLEMENTED IN COMPLIANCE WITH THE25
LABOR STANDARDS SET FORTH IN SECTION 40-3.2-105.7.26
(e) I
N CONSIDERING WHETHER TO APPROVE A LARGE GAS UTILITY 'S27
HB23-1252
-11- APPLICATION PROPOSING A PILOT THERMAL ENERGY NETWORK PROGRAM ,1
THE COMMISSION SHALL CONSIDER THE LONG -TERM EFFECTS THAT THE2
PROPOSED PILOT THERMAL ENERGY NETWORK PROGRAM WOULD HAVE ON3
THE STATE'S UTILITY WORKFORCE.4
(f) A
LARGE GAS UTILITY MAY PROPOSE A PILOT THERMAL ENERGY5
NETWORK PROGRAM AS PART OF THE LARGE GAS UTILITY 'S APPLICATION6
FOR APPROVAL OF A CLEAN HEAT PLAN PURSUANT TO SECTION 40-3.2-1087
OR A GAS DSM PROGRAM PLAN PURSUANT TO SECTION 40-3.2-103 (3) OR8
AS PART OF A STRATEGIC ISSUES APPLICATION ; EXCEPT THAT A PILOT9
THERMAL ENERGY NETWORK PROGRAM APPLIED FOR AS PART OF A CLEAN10
HEAT PLAN DOES NOT COUNT TOWARD THE CLEAN HEAT PLAN COST CAPS11
SET FORTH IN SECTION 40-3.2-108 (6)(a)(I).12
(g) I
N PROPOSING A PILOT THERMAL ENERGY NETWORK PROGRAM13
PURSUANT TO THIS SUBSECTION (3), A LARGE GAS UTILITY SHALL PRESENT14
TO THE COMMISSION OPTIONS FOR HOW THE LARGE GAS UTILITY MAY FUND15
THE PILOT PROGRAM, INCLUDING OPTIONS THAT INVOLVE THE USE OF ANY16
FEDERAL OR PRIVATE SOURCES OF FUNDING OR RATE RECOVERY FROM17
ONLY NONRESIDENTIAL CUSTOMERS . A PILOT THERMAL ENERGY NETWORK18
PROGRAM APPLICATION MUST INCLUDE A CURRENT OR FORWARD -LOOKING19
RATE STRUCTURE TO PROMOTE STABLE CUSTOMER BILLING .20
(4) A
LARGE GAS UTILITY THAT DEVELOPS A PILOT THERMAL21
ENERGY NETWORK PROGRAM SHALL REPORT TO THE COMMISSION IN THE22
FORM AND MANNER REQUIRED BY THE COMMISSION INFORMATION AND23
DATA REGARDING THE PILOT PROGRAM TO HELP FURTHER THE24
DEVELOPMENT OF FUTURE THERMAL ENERGY NETWORKS . THE LARGE GAS25
UTILITY'S REPORT MUST INCLUDE:26
(a) T
HE POTENTIAL FOR IMPLEMENTATION OF THERMAL ENERGY27
HB23-1252
-12- NETWORKS TO PROVIDE CONSUMER BILL STABILIZATION AND THE1
METHODS BY WHICH SUCH STABILIZATION MAY BE ACHIEVED ;2
(b) T
HE POTENTIAL FOR IMPLEMENTATION OF THERMAL ENERGY3
NETWORKS TO REDUCE CONSUMER BILL COSTS ;4
(c) T
HE POTENTIAL TO REUSE EXISTING GAS INFRASTRUCTURE FOR ,5
OR TO TIME END -OF-LIFE GAS INFRASTRUCTURE RETIREMENT OR6
REPLACEMENT WITH, IMPLEMENTATION OF THERMAL ENERGY NETWORKS ;7
(d) T
HE POTENTIAL FOR IMPLEMENTATION OF THERMAL ENERGY8
NETWORKS TO ASSIST THE LARGE GAS UTILITY IN AVOIDING STR ANDED GAS9
ASSETS;10
(e) A
N ESTIMATE OF AVOIDED EMISSIONS FROM IMPLEMENTATION11
OF THERMAL ENERGY NETWORKS ; AND12
(f) P
ROGRAMS, INCENTIVES, OR OTHER MECHANISMS THAT THE13
LARGE GAS UTILITY MAY EMPLOY TO MAKE WIDESPREAD THERMAL14
ENERGY NETWORK IMPLEMENTATION A VIABLE OPTION .15
(5) (a) O
N OR BEFORE JANUARY 1, 2025, THE COMMISSION SHALL16
INITIATE A PROCEEDING TO DETERMINE WHETHER COMMISSION17
RULE-MAKING OR ADDITIONAL LEGISLATIVE CHANGES ARE NEEDED TO18
FACILITATE THE DEVELOPMENT OF THERMAL ENERGY IN THE STATE .19
(b) (I) A
S PART OF THE PROCEEDING HELD PURSUANT TO THIS20
SUBSECTION (5), THE COMMISSION SHALL CONSIDER :21
(A) T
HE APPROPRIATE UTILITY OWNERSHIP MODELS FOR THERMAL22
ENERGY NETWORKS; AND23
(B) T
HE APPROPRIATE UTILITY RATE STRUCTURES FOR THERMAL24
ENERGY NETWORKS.25
(II) T
HE COMMISSION MAY ALSO CONSIDER DURING THE26
PROCEEDING WHETHER RULES ARE NECESSARY TO :27
HB23-1252
-13- (A) CREATE FAIR-MARKET ACCESS REQUIREMENTS FOR1
GAS-UTILITY-OWNED THERMAL ENERGY NETWORKS CONCERNING A LARGE2
GAS UTILITY'S ACCEPTANCE OF THERMAL ENERGY AS PART OF ITS SYSTEM3
AND A DETERMINATION OF THERMAL ENERGY SOURCES ALLOWABLE TO BE4
INCLUDED IN THE SYSTEM;5
(B) E
NSURE THAT ANY THERMAL ENERGY NETWORK6
INCORPORATED INTO A LARGE GAS UTILITY'S SYSTEM PROVIDES RELIABLE7
AND RESILIENT SERVICE;8
(C) P
ROMOTE TRAINING AND TRANSITION OF UTILITY WORKERS9
FOR THERMAL ENERGY JOBS;10
(D) A
DJUST A LARGE GAS UTILITY'S RATE RECOVERY MECHANISMS11
TO FURTHER SUPPORT THE DEVELOPMENT OF THERMAL ENERGY12
NETWORKS AS PART OF MEETING THE STATE 'S OVERALL ENERGY POLICY13
OBJECTIVES; AND14
(E) D
ETERMINE APPROPRIATE METHODS OF COST RECOVERY FOR15
THERMAL ENERGY NETWORKS , INCLUDING CONSIDERATION OF THE16
STABILITY OF UTILITY CUSTOMERS' BILLS.17
(6) A
LOCAL GOVERNMENT OR CAMPUS THAT DEVELOPS AND18
OPERATES A THERMAL ENERGY NETWORK THAT PROVIDES THERMAL19
ENERGY SERVICE TO BUILDINGS THAT THE LOCAL GOVERNMENT OR20
CAMPUS OWNS AND MANAGES IS NOT CONSIDERED A PUBLIC UTILITY AND21
IS NOT SUBJECT TO REGULATION BY THE COMMISSION .22
SECTION 6. In Colorado Revised Statutes, repeal article 40 of23
title 40.24
SECTION 7. In Colorado Revised Statutes, 30-20-603, amend25
(1)(a) as follows:26
30-20-603. Improvements and funding authorized - how27
HB23-1252
-14- instituted - conditions - definitions. (1) (a) (I) A district may be formed1
in accordance with the requirements of this part 6 for the purpose of2
constructing, installing, acquiring, or funding, in whole or in part, any3
public improvement, so long as the county that forms the district is4
authorized to provide such improvement or provide for such funding5
under the county's home rule charter, if any, or the laws of this state.6
Public improvements or the funding thereof shall OF PUBLIC7
IMPROVEMENTS MUST not include any facility identified in section8
30-20-101 (8) or (9). No such A district shall NOT provide the same9
improvement as an existing special district within the territory of such10
THE existing special district unless the existing special district consents.11
(II) The improvements authorized by this part 6 may consist,12
without limitation, of constructing, grading, paving, pouring, curbing,13
guttering, lining, or otherwise improving the whole or any part of any14
street or providing street lighting, drainage facilities, or service15
improvements in the unincorporated area of a county or wholly or partly16
within the boundaries of any municipality within the county if such17
municipality consents by ordinance to such THE improvements. If18
improvements within a municipality are so included in a county19
improvement district by municipal consent, the county shall have full20
authority to MAY construct or acquire such improvements, to assess21
property within such THE municipality benefited by such THE22
improvements, and to enforce and collect such assessments, in the manner23
provided in this part 6. The improvements authorized by this part 6 may24
include, without limitation, the construction of sidewalks adjacent to any25
such streets or maintenance roads adjacent to any such drainage facilities.26
(III) Prior to the establishment of any improvement district for the27
HB23-1252
-15- purpose of providing street lighting, arrangements, by contract or1
otherwise, must be established under which the owners of property2
included within such THE district shall be ARE responsible for the3
maintenance and operation of such street lighting improvement. The costs4
of maintenance and operation of such THE street lighting improvements5
shall not be paid from the county general fund.6
(IV) Drainage facilities shall not be provided in any area which7
THAT is within an existing drainage district organized or created pursuant8
to law without the approval of such THE district.9
(V) The term AS USED IN THIS SUBSECTION (1)(a), "service" as10
used in this paragraph (a) includes the services provided by a public11
utility as defined in section 40-1-103, C.R.S., as well as advanced service12
as defined in section 29-27-102 (1), C.R.S., cable television service as13
defined in section 29-27-102 (2), C.R.S., telecommunications service as14
defined in section 40-15-102 (29), C.R.S., geothermal heat suppliers, as15
defined in section 40-40-103, C.R.S., and information service as defined16
in 47 U.S.C. sec. 153 (20) (24), or any successor section.17
SECTION 8. Act subject to petition - effective date. This act18
takes effect at 12:01 a.m. on the day following the expiration of the19
ninety-day period after final adjournment of the general assembly; except20
that, if a referendum petition is filed pursuant to section 1 (3) of article V21
of the state constitution against this act or an item, section, or part of this22
act within such period, then the act, item, section, or part will not take23
effect unless approved by the people at the general election to be held in24
November 2024 and, in such case, will take effect on the date of the25
official declaration of the vote thereon by the governor.26
HB23-1252
-16-