Colorado 2023 Regular Session

Colorado House Bill HB1252 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	First Regular Session
	2	+	Seventy-fourth General Assembly
	3	+	STATE OF COLORADO
	4	+	REREVISED
	5	+	This Version Includes All Amendments
	6	+	Adopted in the Second House
	7	+	LLS NO. 23-0601.01 Jennifer Berman x3286
1	8		HOUSE BILL 23-1252
2		-	BY REPRESENTATIVE(S) Lieder and Kipp, Amabile, Bacon, Bird,
3		-	Boesenecker, Brown, Daugherty, deGruy Kennedy, Dickson, Hamrick,
4		-	Herod, Joseph, Lindsay, Lindstedt, Lynch, Mabrey, McCormick,
5		-	McLachlan, Michaelson Jenet, Parenti, Pugliese, Ricks, Snyder, Soper,
6		-	Story, Taggart, Titone, Valdez, Velasco, Vigil, Willford, Young,
7		-	McCluskie;
8		-	also SENATOR(S) Exum and Hansen, Ginal, Mullica, Priola, Sullivan,
9		-	Winter F.
	9	+	House Committees Senate Committees
	10	+	Energy & Environment Transportation & Energy
	11	+	Appropriations Appropriations
	12	+	A BILL FOR AN ACT
10	13		C
11		-	ONCERNING THE IMPLEMENTATION OF MEASURES TO ADVANCE THERMAL
12		-	ENERGY SERVICE
13		-	.
14		-
15		-	Be it enacted by the General Assembly of the State of Colorado:
16		-	SECTION 1. Legislative declaration. (1) The general assembly
17		-	finds that:
18		-	(a) Colorado adopted Senate Bill 21-264, enacted in 2021, that
19		-	requires regulated gas utilities to develop a clean heat plan to meet a four
20		-	percent reduction below 2015 greenhouse gas emission levels by 2025 and
21		-	a twenty-two percent reduction below 2015 greenhouse gas emission levels
22		-	by 2030;
23		-	NOTE: This bill has been prepared for the signatures of the appropriate legislative
24		-	officers and the Governor. To determine whether the Governor has signed the bill
25		-	or taken other action on it, please consult the legislative status sheet, the legislative
26		-	history, or the Session Laws.
27		-	________
28		-	Capital letters or bold & italic numbers indicate new material added to existing law; dashes
29		-	through words or numbers indicate deletions from existing law and such material is not part of
30		-	the act. (b) Gas utility workers have helped provide reliable energy
31		-	throughout the state. Affording gas utilities a pathway to providing thermal
32		-	energy service in the state also provides gas utility employees an
33		-	opportunity to utilize many of their existing skills for clean energy jobs for
34		-	the utility.
35		-	(c) Colorado residential and business utility customers have been
36		-	affected by recent trends in gas prices. Helping these utility customers shift
37		-	from gas to clean thermal energy service could provide long-term price
38		-	stability for heating and cooling their homes and businesses and for heating
39		-	water in their homes and businesses.
40		-	(d) The use of thermal energy networks can help reduce greenhouse
41		-	gas emissions from buildings and enhance resilience while supporting
42		-	beneficial electrification. Utility-scale thermal energy projects and
43		-	investments can especially help the state achieve these goals.
44		-	(2) The general assembly declares that:
45		-	(a) Requiring gas utilities to present different approaches for cost
46		-	recovery of investments in thermal energy service, and requiring the public
47		-	utilities commission to consider the cost to customers under each approach
48		-	presented, will help minimize the long-term cost to utility customers for the
49		-	cost of transitioning to clean thermal energy service;
50		-	(b) It is important to pursue the decarbonization of buildings in the
51		-	state in a manner that:
52		-	(I) Is affordable and accessible;
53		-	(II) Preserves existing living-wage jobs while also creating new
54		-	living-wage jobs; and
55		-	(III) Retains the knowledge and experience of the existing utility
56		-	union workforce;
57		-	(c) Passage of this act is intended for the purposes of:
58		-	(I) Removing the legal barriers to utilities' development of thermal
59		-	PAGE 2-HOUSE BILL 23-1252 energy networks;
60		-	(II) Requiring the public utilities commission to evaluate utilities'
61		-	development of thermal energy networks; and
62		-	(III) Immediately commencing the piloting of thermal energy
63		-	network projects by certain utilities; and
64		-	(d) In evaluating a gas utility's application to provide thermal energy
65		-	service, the public utilities commission should consider any potential that
66		-	the utility may have to reuse existing infrastructure that otherwise would
67		-	result in stranded assets.
68		-	SECTION 2. In Colorado Revised Statutes, 24-38.5-118, amend
69		-	(4)(a) introductory portion, (4)(a)(I), (4)(a)(II), (4)(a)(IV), and (4)(c)(II) as
70		-	follows:
71		-	24-38.5-118. Geothermal energy grant program - creation -
72		-	procedures - fund - report - definitions - repeal. (4) Grants - limitations
73		-	- qualifications. The grant program consists of three types of grants:
74		-	(a) The single-structure geothermal grant, which is awarded to
	14	+	ONCERNING THE IMPLEMENTATION OF MEASURES TO ADVANCE101
	15	+	THERMAL ENERGY SERVICE .102
	16	+	Bill Summary
	17	+	(Note: This summary applies to this bill as introduced and does
	18	+	not reflect any amendments that may be subsequently adopted. If this bill
	19	+	passes third reading in the house of introduction, a bill summary that
	20	+	applies to the reengrossed version of this bill will be available at
	21	+	http://leg.colorado.gov
	22	+	.)
	23	+	Section 2 of the bill authorizes the Colorado energy office to
	24	+	award grants for retrofitting existing buildings for installation of a
	25	+	geothermal system for heating and cooling under the single-structure
	26	+	geothermal grant that the office administers and for generating
	27	+	geothermal energy through direct air capture technology under the
	28	+	geothermal electricity generation grant that the office administers.
	29	+	SENATE
	30	+	3rd Reading Unamended
	31	+	May 3, 2023
	32	+	SENATE
	33	+	2nd Reading Unamended
	34	+	May 2, 2023
	35	+	HOUSE
	36	+	3rd Reading Unamended
	37	+	April 21, 2023
	38	+	HOUSE
	39	+	Amended 2nd Reading
	40	+	April 19, 2023
	41	+	HOUSE SPONSORSHIP
	42	+	Lieder and Kipp, Amabile, Bacon, Bird, Boesenecker, Brown, Daugherty, deGruy
	43	+	Kennedy, Dickson, Hamrick, Herod, Joseph, Lindsay, Lindstedt, Lynch, Mabrey, McCluskie,
	44	+	McCormick, McLachlan, Michaelson Jenet, Parenti, Pugliese, Ricks, Snyder, Soper, Story,
	45	+	Taggart, Titone, Valdez, Velasco, Vigil, Willford, Young
	46	+	SENATE SPONSORSHIP
	47	+	Exum and Hansen, Ginal, Mullica, Priola, Sullivan, Winter F.
	48	+	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
	49	+	Capital letters or bold & italic numbers indicate new material to be added to existing law.
	50	+	Dashes through the words or numbers indicate deletions from existing law. Section 3 establishes labor standards for thermal energy public
	51	+	projects that a state agency or a state institution of higher education
	52	+	procures.
	53	+	In Colorado, a gas distribution utility providing gas service to more
	54	+	than 90,000 retail customers is required to file with the public utilities
	55	+	commission (commission) a clean heat plan, which is a plan
	56	+	demonstrating how the utility will use clean heat resources to meet clean
	57	+	heat targets for reducing carbon dioxide and methane emissions. Section
	58	+	4 adds thermal energy as an eligible clean heat resource for helping to
	59	+	meet clean heat targets.
	60	+	Section 5 authorizes a gas utility that is regulated by the
	61	+	commission to apply for review and approval of the use of thermal energy
	62	+	networks in the gas utility's service area. A gas utility that is regulated by
	63	+	the commission and that serves more than 500,000 customers is required
	64	+	to propose pilot thermal energy network projects for the commission's
	65	+	review and approval. The commission shall initiate a proceeding on or
	66	+	before January 1, 2025, to determine if rule-making or legislative changes
	67	+	are needed to facilitate the development of thermal energy in the state.
	68	+	Section 6 repeals the "Geothermal Heat Suppliers Act", which act
	69	+	requires geothermal heat suppliers to obtain operating permits from the
	70	+	commission.
	71	+	Be it enacted by the General Assembly of the State of Colorado:1
	72	+	SECTION 1. Legislative declaration. (1) The general assembly2
	73	+	finds that:3
	74	+	(a) Colorado adopted Senate Bill 21-264, enacted in 2021, that4
	75	+	requires regulated gas utilities to develop a clean heat plan to meet a four5
	76	+	percent reduction below 2015 greenhouse gas emission levels by 20256
	77	+	and a twenty-two percent reduction below 2015 greenhouse gas emission7
	78	+	levels by 2030;
	79	+	and8
	80	+	9
	81	+	(b) Gas utility workers have helped provide reliable energy10
	82	+	throughout the state. Affording gas utilities a pathway to providing11
	83	+	thermal energy service in the state also provides gas utility employees an12
	84	+	opportunity to utilize many of their existing skills for clean energy jobs13
	85	+	1252-2- for the utility.1
	86	+	(c) Colorado residential and business utility customers have been2
	87	+	affected by recent trends in gas prices. Helping these utility customers3
	88	+	shift from gas to clean thermal energy service could provide long-term4
	89	+	price stability for heating and cooling their homes and businesses and for5
	90	+	heating water in their homes and businesses.6
	91	+	(d) The use of thermal energy networks can help reduce7
	92	+	greenhouse gas emissions from buildings and enhance resilience while8
	93	+	supporting beneficial electrification. Utility-scale thermal energy projects9
	94	+	and investments can especially help the state achieve these goals.10
	95	+	(2) The general assembly declares that:11
	96	+	(a) Requiring gas utilities to present different approaches for cost12
	97	+	recovery of investments in thermal energy service, and requiring the13
	98	+	public utilities commission to consider the cost to customers under each14
	99	+	approach presented, will help minimize the long-term cost to utility15
	100	+	customers for the cost of transitioning to clean thermal energy service;16
	101	+	(b) It is important to pursue the decarbonization of buildings in the17
	102	+	state in a manner that:18
	103	+	(I) Is affordable and accessible;19
	104	+	(II) Preserves existing living-wage jobs while also creating new20
	105	+	living-wage jobs; and21
	106	+	(III) Retains the knowledge and experience of the existing utility22
	107	+	union workforce;23
	108	+	(c) Passage of this act is intended for the purposes of:24
	109	+	(I) Removing the legal barriers to utilities' development of thermal25
	110	+	energy networks;26
	111	+	(II) Requiring the public utilities commission to evaluate utilities'27
	112	+	1252
	113	+	-3- development of thermal energy networks; and1
	114	+	(III) Immediately commencing the piloting of thermal energy2
	115	+	network projects by certain utilities; and3
	116	+	(d) In evaluating a gas utility's application to provide thermal4
	117	+	energy service, the public utilities commission should consider any5
	118	+	potential that the utility may have to reuse existing infrastructure that6
	119	+	otherwise would result in stranded assets.7
	120	+	SECTION 2. In Colorado Revised Statutes, 24-38.5-118, amend8
	121	+	(4)(a) introductory portion, (4)(a)(I), (4)(a)(II), (4)(a)(IV), and (4)(c)(II)9
	122	+	as follows:10
	123	+	24-38.5-118. Geothermal energy grant program - creation -11
	124	+	procedures - fund - report - definitions - repeal. (4) Grants -12
	125	+	limitations - qualifications. The grant program consists of three types of13
	126	+	grants:14
	127	+	(a) The single-structure geothermal grant, which is awarded to15
75	128		applicants that are constructing a new building
76		-	OR RETROFITTING AN
77		-	EXISTING BUILDING
78		-	, including a single-family or multifamily residence, and
79		-	that are
80		-	installing a geothermal system for use as the primary heating and
81		-	cooling system for the building. A single-structure geothermal grant is
82		-	subject to the following limitations and qualifications:
83		-	(I) A developer or geothermal installer is eligible for grants for the
	129	+	OR RETROFITTING AN16
	130	+	EXISTING BUILDING, including a single-family or multifamily residence,17
	131	+	and that are
	132	+	installing a geothermal system for use as the primary heating18
	133	+	and cooling system for the building. A single-structure geothermal grant19
	134	+	is subject to the following limitations and qualifications:20
	135	+	(I) A developer or geothermal installer is eligible for grants for the21
84	136		construction
85		-	OR RETROFITTING of no more than one hundred residential
86		-	buildings;
87		-	(II) Commercial buildings and state and local government buildings
88		-	that are constructed
89		-	OR RETROFITTED using grant money must meet the
90		-	standards of the 2021 International Energy Conservation Code, or
91		-	subsequent edition of the code;
92		-	(IV) The office shall determine the amount of each grant based on
93		-	per-ton heating capacity as follows; except that the office may change a
94		-	grant award amount after the first year if the office determines that changes
95		-	PAGE 3-HOUSE BILL 23-1252 are necessary to advance geothermal development:
	137	+	OR RETROFITTING of no more than one hundred residential22
	138	+	buildings;23
	139	+	(II) Commercial buildings and state and local government24
	140	+	buildings that are constructed
	141	+	OR RETROFITTED using grant money must25
	142	+	meet the standards of the 2021 International Energy Conservation Code,26
	143	+	or subsequent edition of the code;27
	144	+	1252
	145	+	-4- (IV) The office shall determine the amount of each grant based on1
	146	+	per-ton heating capacity as follows; except that the office may change a2
	147	+	grant award amount after the first year if the office determines that3
	148	+	changes are necessary to advance geothermal development:4
96	149		(A) A nonresidential building constructed
97		-	OR RETROFITTED by a
98		-	for-profit entity qualifies for up to two thousand dollars per ton of ~~heating~~
99		-	capacity;
	150	+	OR RETROFITTED by a5
	151	+	for-profit entity qualifies for up to two thousand dollars per ton of heating6
	152	+	capacity;7
100	153		(B) A nonresidential building constructed
101		-	OR RETROFITTED by a
102		-	nonprofit entity qualifies for up to three thousand dollars per ton ~~of heating~~
103		-	capacity;
	154	+	OR RETROFITTED by a8
	155	+	nonprofit entity qualifies for up to three thousand dollars per ton of9
	156	+	heating capacity;10
104	157		(C) A multifamily residence constructed
105		-	OR RETROFITTED by a
106		-	for-profit entity qualifies for up to two thousand dollars per ton of ~~heating~~
107		-	capacity;
	158	+	OR RETROFITTED by a11
	159	+	for-profit entity qualifies for up to two thousand dollars per ton of heating12
	160	+	capacity;13
108	161		(D) A multifamily residence constructed
109		-	OR RETROFITTED by a
110		-	nonprofit entity qualifies for up to three thousand dollars per ton of heating
111		-	capacity; and
112		-	(E) A single-family residence, including a residence within a
113		-	townhome or condominium building, qualifies for two thousand dollars per
114		-	ton of heating capacity; and
115		-	(c) The geothermal electricity generation grant, which is awarded to
116		-	support the development of geothermal electricity generation and projects
117		-	that pair geothermal electricity generation with electrolyzers for the
118		-	production of hydrogen from geothermal generation. A person may apply
119		-	for more than one cost-matching grant in a year. A geothermal electricity
120		-	generation grant is subject to the following limitations and qualifications:
121		-	(II) For applications for a grant to help fund a study to identify and
122		-	explore resources that may be suitable for geothermal electricity
123		-	AND
124		-	ENERGY
125		-	generation, costing up to one million dollars, the office may award
126		-	a grant of up to fifty percent of the study cost; except that, if the project
127		-	includes the production of hydrogen from electricity generated using
128		-	geothermal energy
129		-	OR THE UTILIZATION OF DIRECT AIR CAPTURE
130		-	TECHNOLOGY
131		-	, the office may award a grant of up to sixty percent of the
132		-	study cost. A
133		-	NY STUDY FUNDED PURSUANT TO THIS SUBSECTION (4)(c)(II)
134		-	MUST INCLUDE AN EVALUATION OF THE RESOURCES ' SAFETY, ECONOMIC
135		-	FEASIBILITY
136		-	, COST EFFICIENCY COMPARED TO RENEWABLE ENERGY
137		-	ALTERNATIVES
138		-	, ENVIRONMENTAL IMPACTS , GREENHOUSE GAS AND AIR
139		-	PAGE 4-HOUSE BILL 23-1252 POLLUTION EMISSIONS, QUALITY JOB CREATION OPPORTUNITIES , AND
140		-	IMPACTS TO NEIGHBORING COMMUNITIES
141		-	.
142		-	SECTION 3. In Colorado Revised Statutes, add 40-3.2-105.7 as
143		-	follows:
144		-	40-3.2-105.7. Labor standards for state thermal energy network
145		-	and thermal energy system projects - definitions. (1) A
146		-	NY THERMAL
147		-	ENERGY NETWORK OR THERMAL ENERGY SYSTEM PROJECT THAT AN AGENCY
148		-	OF GOVERNMENT OR A STATE INSTITUTION OF HIGHER EDUCATION PROCURES
149		-	AND THAT IS A PUBLIC PROJECT MUST COMPLY WITH
150		-	:
	162	+	OR RETROFITTED by a14
	163	+	nonprofit entity qualifies for up to three thousand dollars per ton of15
	164	+	heating capacity; and16
	165	+	(E) A single-family residence, including a residence within a17
	166	+	townhome or condominium building, qualifies for two thousand dollars18
	167	+	per ton of heating capacity; and19
	168	+	(c) The geothermal electricity generation grant, which is awarded20
	169	+	to support the development of geothermal electricity generation and21
	170	+	projects that pair geothermal electricity generation with electrolyzers for22
	171	+	the production of hydrogen from geothermal generation. A person may23
	172	+	apply for more than one cost-matching grant in a year. A geothermal24
	173	+	electricity generation grant is subject to the following limitations and25
	174	+	qualifications:26
	175	+	(II) For applications for a grant to help fund a study to identify27
	176	+	1252
	177	+	-5- and explore resources that may be suitable for geothermal electricity AND1
	178	+	ENERGY generation, costing up to one million dollars, the office may2
	179	+	award a grant of up to fifty percent of the study cost; except that, if the3
	180	+	project includes the production of hydrogen from electricity generated4
	181	+	using geothermal energy
	182	+	OR THE UTILIZATION OF DIRECT AIR CAPTURE5
	183	+	TECHNOLOGY, the office may award a grant of up to sixty percent of the6
	184	+	study
	185	+	cost. ANY STUDY FUNDED PURSUANT TO THIS SUBSECTION (4)(c)(II)7
	186	+	MUST INCLUDE AN EVALUATION OF THE RESOURCES ' SAFETY, ECONOMIC8
	187	+	FEASIBILITY, COST EFFICIENCY COMPARED TO RENEWABLE ENERGY9
	188	+	ALTERNATIVES, ENVIRONMENTAL IMPACTS, GREENHOUSE GAS AND AIR10
	189	+	POLLUTION EMISSIONS, QUALITY JOB CREATION OPPORTUNITIES, AND11
	190	+	IMPACTS TO NEIGHBORING COMMUNITIES .12
	191	+	SECTION 3. In Colorado Revised Statutes, add 40-3.2-105.7 as13
	192	+	follows:14
	193	+	40-3.2-105.7. Labor standards for state thermal energy15
	194	+	network and thermal energy system projects - definitions. (1) A
	195	+	NY16
	196	+	THERMAL ENERGY NETWORK OR THERMAL ENERGY SYSTEM PROJECT THAT17
	197	+	AN AGENCY OF GOVERNMENT OR A STATE INSTITUTION OF HIGHER18
	198	+	EDUCATION PROCURES AND THAT IS A PUBLIC PROJECT MUST COMPLY19
	199	+	WITH:20
151	200		(a) T
152		-	HE APPRENTICESHIP REQUIREMENTS SET FORTH IN SECTION
153		-	24-92-115 IF THE ESTIMATED CONTRACT COST FOR THE PUBLIC PROJECT IS
154		-	ONE MILLION DOLLARS OR MORE
155		-	; AND
156		-	(b) PART 2 OF ARTICLE 92 OF TITLE 24 CONCERNING PREVAILING
157		-	WAGES FOR PUBLIC PROJECTS IF THE ESTIMATED CONTRACT COST FOR THE
158		-	PUBLIC PROJECT IS FIVE HUNDRED THOUSAND DOLLARS OR MORE
159		-	.
160		-	(2) A
161		-	NY THERMAL ENERGY NETWORK OR THERMAL ENERGY SYSTEM
162		-	PLUMBING AND ELECTRICAL WORK PERFORMED IN THE STATE SHALL
163		-	:
164		-	(a) B
165		-	E PERFORMED BY LICENSED PLUMBERS , LICENSED
166		-	ELECTRICIANS
167		-	, OR SUPERVISED APPRENTICES AT A RATIO NO GREATER THAN
168		-	THREE APPRENTICES FOR EACH LICENSED MASTER OR JOURNEYMAN PLUMBER
169		-	OR ELECTRICIAN
170		-	, AS REQUIRED PURSUANT TO SECTION 12-115-115 (1) OR
171		-	12-155-124 (1); AND
172		-	(b) BE INSTALLED IN COMPLIANCE WITH THE RULES OF THE STATE
173		-	ELECTRICAL BOARD OR THE STATE PLUMBING BOARD AND IN ACCORDANCE
174		-	WITH THE ELECTRICAL AND PLUMBING CODES ADOPTED PURSUANT TO THOSE
175		-	RULES
176		-	.
177		-	(3) F
178		-	OR ANY THERMAL ENERGY NETWORK OR THERMAL ENERGY
179		-	SYSTEM THAT A UTILITY OWNS
180		-	, THE UTILITY SHALL USE UTILITY EMPLOYEES
181		-	OR QUALIFIED CONTRACTORS TO PERFORM ANY CONSTRUCTION TRADE WORK
182		-	DEEMED NECESSARY TO COMPLETE THE PROJECT
183		-	. A QUALIFIED CONTRACTOR
184		-	IS A CONTRACTOR WITH EMPLOYEES THAT HAVE ACCESS TO AN
185		-	APPRENTICESHIP PROGRAM AS DEFINED IN SECTION
186		-	8-83-308 (3)(a). ALL
187		-	PAGE 5-HOUSE BILL 23-1252 MECHANICAL, ELECTRICAL, AND PLUMBING CONTRACTORS AND
188		-	SUBCONTRACTORS MUST MEET THE APPRENTICESHIP UTILIZATION
189		-	REQUIREMENTS OF SECTION
190		-	24-92-115; EXCEPT THAT THE APPRENTICESHIP
191		-	UTILIZATION REQUIREMENTS DO NOT APPLY TO
192		-	:
	201	+	HE APPRENTICESHIP REQUIREMENTS SET FORTH IN SECTION21
	202	+	24-92-115
	203	+	IF THE ESTIMATED CONTRACT COST FOR THE PUBLIC PROJECT IS22
	204	+	ONE MILLION DOLLARS OR MORE ; AND23
	205	+	(b) P
	206	+	ART 2 OF ARTICLE 92 OF TITLE 24 CONCERNING PREVAILING24
	207	+	WAGES FOR PUBLIC PROJECTS IF THE ESTIMATED CONTRACT COST FOR THE25
	208	+	PUBLIC PROJECT IS FIVE HUNDRED THOUSAND DOLLARS OR MORE .26
	209	+	(2) ANY THERMAL ENERGY NETWORK OR THERMAL ENERGY27
	210	+	1252
	211	+	-6- SYSTEM PLUMBING AND ELECTRICAL WORK PERFORMED IN THE STATE1
	212	+	SHALL:2
	213	+	(a) BE PERFORMED BY LICENSED PLUMBERS , LICENSED3
	214	+	ELECTRICIANS, OR SUPERVISED APPRENTICES AT A RATIO NO GREATER4
	215	+	THAN THREE APPRENTICES FOR EACH LICENSED MASTER OR JOURNEYMAN5
	216	+	PLUMBER OR ELECTRICIAN, AS REQUIRED PURSUANT TO SECTION6
	217	+	12-115-115 (1) OR 12-155-124 (1); AND7
	218	+	(b) BE INSTALLED IN COMPLIANCE WITH THE RULES OF THE STATE8
	219	+	ELECTRICAL BOARD OR THE STATE PLUMBING BOARD AND IN ACCORDANCE9
	220	+	WITH THE ELECTRICAL AND PLUMBING CODES ADOPTED PURSUANT TO10
	221	+	THOSE RULES.11
	222	+	(3) FOR ANY THERMAL ENERGY NETWORK OR THERMAL ENERGY12
	223	+	SYSTEM THAT A UTILITY OWNS, THE UTILITY SHALL USE UTILITY13
	224	+	EMPLOYEES OR QUALIFIED CONTRACTORS TO PERFORM ANY14
	225	+	CONSTRUCTION TRADE WORK DEEMED NECESSARY TO COMPLETE THE15
	226	+	PROJECT. A QUALIFIED CONTRACTOR IS A CONTRACTOR WITH EMPLOYEES16
	227	+	THAT HAVE ACCESS TO AN APPRENTICESHIP PROGRAM AS DEFINED IN17
	228	+	SECTION 8-83-308 (3)(a). ALL MECHANICAL, ELECTRICAL, AND PLUMBING18
	229	+	CONTRACTORS AND SUBCONTRACTORS MUST MEET THE APPRENTICESHIP19
	230	+	UTILIZATION REQUIREMENTS OF SECTION 24-92-115; EXCEPT THAT THE20
	231	+	APPRENTICESHIP UTILIZATION REQUIREMENTS DO NOT APPLY TO :21
	232	+	(a) THE DESIGN, PLANNING, OR ENGINEERING OF INFRASTRUCTURE;22
	233	+	(b) MANAGEMENT FUNCTIONS FOR THE OPERATION OF23
	234	+	INFRASTRUCTURE; OR24
	235	+	(c) ANY WORK INCLUDED IN A WARRANTY .25
	236	+	(4) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE26
	237	+	REQUIRES:27
	238	+	1252
	239	+	-7- (a) "AGENCY OF GOVERNMENT " HAS THE MEANING SET FORTH IN1
	240	+	SECTION 24-92-201 (1).2
	241	+	(b) "LICENSED ELECTRICIAN" MEANS AN ELECTRICIAN LICENSED3
	242	+	PURSUANT TO SECTION 12-115-110.4
	243	+	(c) "LICENSED PLUMBER" MEANS A PLUMBER LICENSED PURSUANT5
	244	+	TO SECTION 12-155-108.6
	245	+	(d) "PUBLIC PROJECT" HAS THE MEANING SET FORTH IN SECTION7
	246	+	24-92-201
	247	+	(5).8 (e) "STATE INSTITUTION OF HIGHER EDUCATION " HAS THE9
	248	+	MEANING SET FORTH IN SECTION 23-18-102 (10).10
	249	+	(f) "THERMAL ENERGY NETWORK " HAS THE MEANING SET FORTH11
	250	+	IN SECTION 40-3.2-108 (2)(s).12
	251	+	(g) "THERMAL ENERGY SYSTEM " HAS THE MEANING SET FORTH IN13
	252	+	SECTION 40-3.2-108 (2)(t).14
	253	+	SECTION 4. In Colorado Revised Statutes, 40-3.2-108, amend15
	254	+	(2)(c)(V); and add (2)(c)(V.5), (2)(h.5), (2)(r), (2)(s), (2)(t), and16
	255	+	(4)(c)(XIV.5) as follows:17
	256	+	40-3.2-108. Clean heat targets - legislative declaration -18
	257	+	definitions - plans - rules - reports. (2) Definitions. As used in this19
	258	+	section, unless the context otherwise requires:20
	259	+	(c) "Clean heat resource" means any one or a combination of:21
	260	+	(V) Pyrolysis of tires if the pyrolysis meets a recovered methane22
	261	+	protocol; and23
	262	+	(V.5) T
	263	+	HERMAL ENERGY; AND24
	264	+	(h.5) "G
	265	+	EOTHERMAL FLUID" HAS THE MEANING SET FORTH IN25
	266	+	SECTION 37-90.5-103 (2).26
	267	+	(r) (I) "T
	268	+	HERMAL ENERGY" MEANS PIPED, NONCOMBUSTIBLE27
	269	+	1252
	270	+	-8- FLUIDS USED FOR ADDING OR REMOVING HEAT FROM BUILDINGS FOR THE1
	271	+	PURPOSE OF EFFICIENT BUILDING TEMPERATURE CONTROL AND DOMESTIC2
	272	+	HOT WATER, INCLUDING SPACE HEATING AND COOLING AND3
	273	+	REFRIGERATION.4
	274	+	(II) "T
	275	+	HERMAL ENERGY" INCLUDES METHODS OF EXCHANGING THE5
	276	+	PIPED, NONCOMBUSTIBLE FLUIDS THROUGH THE GROUND , WASTEWATER6
	277	+	TREATMENT FACILITIES, OR OTHER SOURCES THAT ACHIEVE DESIRED FLUID7 TEMPERATURES; EXCEPT THAT ANY SOURCE OF THERMAL ENERGY FOR8
	278	+	THIS PURPOSE MUST:9
	279	+	(A) NOT CAUSE INCREMENTAL GREENHOUSE GAS EMISSIONS OR10
	280	+	RELY ON INCREASED, LONG-TERM COMBUSTION OF FOSSIL FUELS; AND11
	281	+	(B) BE EVALUATED BY THE COMMISSION TO PROTECT AGAINST12
	282	+	INCREASED EMISSIONS OF HARMFUL CO-POLLUTANTS, NEGATIVE IMPACTS13
	283	+	TO COMMUNITIES INCLUDING TO DISPROPORTIONATELY IMPACTED14
	284	+	COMMUNITIES, AS DEFINED IN SECTION 24-4-109 (2)(b)(II), AND THE RISK15
	285	+	OF STRANDED ASSETS, IF THE THERMAL ENERGY IS FROM ANY INDUSTRIAL16
	286	+	SOURCE INCLUDING A SYSTEM FOR WHICH THE PRIMARY PURPOSE IS TO17
	287	+	GENERATE ELECTRICITY , INCLUDING ANY PROCESS INVOLVING18
	288	+	ENGINE-DRIVEN GENERATION.19
	289	+	(s) "T
	290	+	HERMAL ENERGY NETWORK ":20
	291	+	(I) M
	292	+	EANS ALL REAL ESTATE, FIXTURES, AND PERSONAL PROPERTY21
	293	+	THAT ARE OPERATED, OWNED, USED, OR INTENDED TO BE USED FOR, IN22
	294	+	CONNECTION WITH, OR TO FACILITATE A DISTRIBUTION INFRASTRUCTURE23
	295	+	PROJECT THAT SUPPLIES THERMAL ENERGY TO TWO OR MORE BUILDINGS24
	296	+	THAT ARE NOT A CAMPUS, AS DEFINED IN SECTION 40-4-121 (1)(a), AND25
	297	+	THAT ASSISTS IN REDUCING GREENHOUSE GAS EMISSIONS IN THE STATE ;26
	298	+	(II) C
	299	+	ONSISTS OF PIPE LOOPS BETWEEN MULTIPLE BUILDINGS AND27
	300	+	1252
	301	+	-9- ENERGY SOURCES CARRYING PIPED , NONCOMBUSTIBLE FLUIDS AT THE1
	302	+	DESIRED THERMAL TEMPERATURE ;2
	303	+	(III) I
	304	+	NCLUDES A NETWORK THAT CAN BE USED FOR HEATING ,3
	305	+	COOLING, AND OTHER BUILDING SERVICES; AND4
	306	+	(IV) M
	307	+	AY ALSO BE KNOWN AS A GEOTHERMAL EXCHANGE5
	308	+	DISTRICT, NETWORKED GEOTHERMAL SYSTEM , GEOEXCHANGE SYSTEM ,6
	309	+	GEOGRID SYSTEM, COMMUNITY GEOTHERMAL HEATING AND COOLING7
	310	+	DISTRICT, OR A GEOTHERMAL HEATING DISTRICT .8
	311	+	(t) "T
	312	+	HERMAL ENERGY SYSTEM" INCLUDES A GEOTHERMAL SYSTEM9
	313	+	OR OTHER METHOD OF EXCHANGING THE PIPED , NONCOMBUSTIBLE FLUIDS10
	314	+	THROUGH THE GROUND, WASTEWATER TREATMENT FACILITIES , OR OTHER11
	315	+	SOURCES
	316	+	OF THERMAL ENERGY THAT ACHIEVE DESIRED FLUID12
	317	+	TEMPERATURES.13
	318	+	(4) Submission of clean heat plans. (c) A clean heat plan filed14
	319	+	pursuant to this subsection (4) must:15
	320	+	(XIV.5) D
	321	+	EMONSTRATE THAT, WITH RESPECT TO ANY THERMAL16
	322	+	ENERGY NETWORK THAT WILL BE USED AS A CLEAN HEAT RESOURCE , ANY17
	323	+	GEOTHERMAL FLUID ASSOCIATED WITH THE THERMAL ENERGY SYSTEM OR18
	324	+	THERMAL ENERGY NETWORK IS USED IN COMPLIANCE WITH THE19
	325	+	PERMITTING REQUIREMENTS FOR PRODUCTION OF GEOTHERMAL FLUID SET20
	326	+	FORTH IN ARTICLE 90.5 OF TITLE 37; AND21
	327	+	SECTION 5. In Colorado Revised Statutes, add 40-4-121 as22
	328	+	follows:23
	329	+	40-4-121. Thermal energy network projects - pilot program24
	330	+	for large gas utilities - application - commission proceeding -25
	331	+	reporting - exemption from regulation for local government- or26
	332	+	campus-owned thermal energy networks - definitions. (1) A
	333	+	S USED IN27
	334	+	1252
	335	+	-10- THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :1
	336	+	(a) (I) "C
	337	+	AMPUS" MEANS A COLLECTION OF TWO OR MORE2
	338	+	BUILDINGS THAT ARE OWNED AND OPERATED BY THE SAME
	339	+	PERSON, THAT3
	340	+	HAVE A SHARED PURPOSE AND FUNCTION AS A SINGLE PROPERTY, THAT DO4
	341	+	NOT LEASE SPACE TO TENANTS, AND THAT DO NOT PROVIDE ENERGY OR5
	342	+	HEAT SERVICES FOR A FEE.6
	343	+	(II) "C
	344	+	AMPUS" INCLUDES TWO OR MORE OF THE BUILDINGS THAT7
	345	+	COMPRISE THE CAPITOL COMPLEX , AS DEFINED IN SECTION 24-82-1018
	346	+	(3)(f).9
	347	+	(b) "D
	348	+	ISPROPORTIONATELY IMPACTED COMMUNITY " HAS THE10
	349	+	MEANING SET FORTH IN SECTION 24-4-109 (2)(b)(II).11
	350	+	(c) "G
	351	+	AS UTILITY" MEANS A GAS UTILITY IN THE STATE THAT THE12
	352	+	COMMISSION REGULATES WITH RESPECT TO RATES AND CHARGES .13
	353	+	(d) "L
	354	+	ARGE GAS UTILITY" MEANS A GAS UTILITY THAT SERVES14
	355	+	MORE THAN FIVE HUNDRED THOUSAND CUSTOMERS .15
	356	+	(e) "L
	357	+	OCAL GOVERNMENT" MEANS A STATUTORY OR HOME -RULE16
	358	+	CITY, TOWN, COUNTY, OR CITY AND COUNTY.17
	359	+	(f) "T
	360	+	HERMAL ENERGY" HAS THE MEANING SET FORTH IN SECTION18
	361	+	40-3.2-108 (2)(r).19
	362	+	(g) "T
	363	+	HERMAL ENERGY NETWORK " HAS THE MEANING SET FORTH20
	364	+	IN SECTION 40-3.2-108 (2)(s).21
	365	+	(h) "THERMAL ENERGY SYSTEM" HAS THE MEANING SET FORTH IN22
	366	+	SECTION 40-3.2-108 (2)(t).23
	367	+	(2) (a) E
	368	+	XCEPT AS PROVIDED IN SUBSECTION (3) OF THIS SECTION,24
	369	+	A GAS UTILITY THAT SEEKS TO OFFER THERMAL ENERGY NETWORK25
	370	+	SERVICE TO ITS CUSTOMERS MUST PROPOSE DEVELOPING A THERMAL26
	371	+	ENERGY NETWORK BY A SEPARATE APPLICATION TO THE COMMISSION27
	372	+	1252
	373	+	-11- THAT IS NOT INCLUDED IN THE GAS UTILITY 'S APPLICATION TO THE1
	374	+	COMMISSION FOR APPROVAL OF A CLEAN HEAT PLAN PURSUANT TO2
	375	+	SECTION 40-3.2-108 OR A GAS DEMAND-SIDE MANAGEMENT PROGRAM3
	376	+	PLAN PURSUANT TO SECTION 40-3.2-103 (3) OR AS PART OF A DSM4
	377	+	STRATEGIC ISSUES APPLICATION PURSUANT TO SECTION 40-3.2-103 (1).5
	378	+	(b) I
	379	+	N CONSIDERING WHETHER TO APPROVE A GAS UTILITY 'S6
	380	+	APPLICATION TO OFFER THERMAL ENERGY NETWORK SERVICE , THE7
	381	+	COMMISSION SHALL CONSIDER THE LONG -TERM EFFECTS THAT THE8
	382	+	PROPOSED THERMAL ENERGY NETWORK WOULD HAVE ON THE STATE 'S9
	383	+	UTILITY WORKFORCE.10
	384	+	(3) (a) O
	385	+	N OR BEFORE SEPTEMBER 1, 2024, A LARGE GAS UTILITY11
	386	+	SHALL SUBMIT TO THE COMMISSION FOR REVIEW AND APPROVAL AT LEAST12
	387	+	ONE PILOT PROGRAM, CONSISTING OF ONE OR MORE PILOT PROJECTS , TO13
	388	+	PROVIDE THERMAL ENERGY SERVICE IN ITS SERVICE AREA .14
	389	+	(b) A
	390	+	LARGE GAS UTILITY MAY PROPOSE MORE THAN ONE PILOT15
	391	+	THERMAL ENERGY NETWORK PROGRAM PURSUANT TO THIS SUBSECTION (3)16
	392	+	BY FILING SEPARATE APPLICATIONS FOR REVIEW AND APPROVAL OF17
	393	+	ADDITIONAL PILOT PROGRAMS WITH THE COMMISSION ON OR BEFORE18
	394	+	S
	395	+	EPTEMBER 1, 2026.19
	396	+	(c) I
	397	+	N DEVELOPING A PILOT PROGRAM PROPOSAL , A LARGE GAS20
	398	+	UTILITY SHALL PROPOSE AS PART OF THE PROPOSED PILOT PROGRAM AT21
	399	+	LEAST ONE PILOT PROJECT THAT SERVES RESIDENTIAL CUSTOMERS22
	400	+	LOCATED IN A:23
	401	+	(I) D
	402	+	ISPROPORTIONATELY IMPACTED COMMUNITY ;24
	403	+	(II) M
	404	+	OUNTAIN COMMUNITY SERVED BY THE LARGE GAS UTILITY ;25
	405	+	OR26
	406	+	(III) U
	407	+	TILITY SERVICE AREA THAT THE COMMISSION HAS27
	408	+	1252
	409	+	-12- DETERMINED IS CAPACITY CONSTRAINED OR THAT IS TARGETED FOR1
	410	+	ELECTRIFICATION IN A UTILITY CLEAN HEAT PLAN OR BENEFICIAL2
	411	+	ELECTRIFICATION PLAN.3
	412	+	(d) A
	413	+	LARGE GAS UTILITY'S PILOT THERMAL ENERGY NETWORK4
	414	+	PROGRAM PROPOSAL MUST :5
	415	+	(I) I
	416	+	NCLUDE SPECIFIC CUSTOMER PROTECTION PLANS THAT6
	417	+	PROMOTE STABLE UTILITY RATES;7
	418	+	(II) B
	419	+	E MADE PUBLICLY AVAILABLE ON THE COMMISSION 'S8
	420	+	WEBSITE; AND9
	421	+	(III) I
	422	+	F APPROVED, BE IMPLEMENTED IN COMPLIANCE WITH THE10
	423	+	LABOR STANDARDS SET FORTH IN SECTION 40-3.2-105.7.11
	424	+	(e) I
	425	+	N CONSIDERING WHETHER TO APPROVE A LARGE GAS UTILITY 'S12
	426	+	APPLICATION PROPOSING A PILOT THERMAL ENERGY NETWORK PROGRAM ,13
	427	+	THE COMMISSION SHALL CONSIDER THE LONG -TERM EFFECTS THAT THE14
	428	+	PROPOSED PILOT THERMAL ENERGY NETWORK PROGRAM WOULD HAVE ON15
	429	+	THE STATE'S UTILITY WORKFORCE.16
	430	+	(f) A
	431	+	LARGE GAS UTILITY MAY PROPOSE A PILOT THERMAL ENERGY17
	432	+	NETWORK PROGRAM AS PART OF THE LARGE GAS UTILITY 'S APPLICATION18
	433	+	FOR APPROVAL OF A CLEAN HEAT PLAN PURSUANT TO SECTION 40-3.2-10819
	434	+	OR A GAS DSM PROGRAM PLAN PURSUANT TO SECTION 40-3.2-103 (3) OR20
	435	+	AS PART OF A STRATEGIC ISSUES APPLICATION ; EXCEPT THAT A PILOT21
	436	+	THERMAL ENERGY NETWORK PROGRAM APPLIED FOR AS PART OF A CLEAN22
	437	+	HEAT PLAN DOES NOT COUNT TOWARD THE CLEAN HEAT PLAN COST CAPS23
	438	+	SET FORTH IN SECTION 40-3.2-108 (6)(a)(I).24
	439	+	(g) I
	440	+	N PROPOSING A PILOT THERMAL ENERGY NETWORK PROGRAM25
	441	+	PURSUANT TO THIS SUBSECTION (3), A LARGE GAS UTILITY SHALL PRESENT26
	442	+	TO THE COMMISSION OPTIONS FOR HOW THE LARGE GAS UTILITY MAY FUND27
	443	+	1252
	444	+	-13- THE PILOT PROGRAM, INCLUDING OPTIONS THAT INVOLVE THE USE OF ANY1
	445	+	FEDERAL OR PRIVATE SOURCES OF FUNDING OR RATE RECOVERY FROM2
	446	+	NONRESIDENTIAL CUSTOMERS TO MANAGE IMPACTS UPON RESIDENTIAL3
	447	+	CUSTOMERS. A PILOT THERMAL ENERGY NETWORK PROGRAM APPLICATION4
	448	+	MUST INCLUDE A CURRENT OR FORWARD -LOOKING RATE STRUCTURE TO5
	449	+	PROMOTE STABLE CUSTOMER BILLING .6
	450	+	(4) A
	451	+	LARGE GAS UTILITY THAT DEVELOPS A PILOT THERMAL7
	452	+	ENERGY NETWORK PROGRAM SHALL REPORT TO THE COMMISSION IN THE8
	453	+	FORM AND MANNER REQUIRED BY THE COMMISSION INFORMATION AND9
	454	+	DATA REGARDING THE PILOT PROGRAM TO HELP FURTHER THE10
	455	+	DEVELOPMENT OF FUTURE THERMAL ENERGY NETWORKS . THE LARGE GAS11
	456	+	UTILITY'S REPORT MUST INCLUDE:12
193	457		(a) T
194		-	HE DESIGN, PLANNING, OR ENGINEERING OF INFRASTRUCTURE ;
195		-	(b) M
196		-	ANAGEMENT FUNCTIONS FOR THE OPERATION OF
197		-	INFRASTRUCTURE
198		-	; OR
199		-	(c) ANY WORK INCLUDED IN A WARRANTY .
200		-	(4) A
201		-	S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
202		-	REQUIRES
203		-	:
204		-	(a) "A
205		-	GENCY OF GOVERNMENT " HAS THE MEANING SET FORTH IN
206		-	SECTION
207		-	24-92-201 (1).
208		-	(b) "L
209		-	ICENSED ELECTRICIAN" MEANS AN ELECTRICIAN LICENSED
210		-	PURSUANT TO SECTION
211		-	12-115-110.
212		-	(c) "L
213		-	ICENSED PLUMBER" MEANS A PLUMBER LICENSED PURSUANT
214		-	TO SECTION
215		-	12-155-108.
216		-	(d) "P
217		-	UBLIC PROJECT" HAS THE MEANING SET FORTH IN SECTION
218		-	24-92-201 (5).
219		-	(e) "S
220		-	TATE INSTITUTION OF HIGHER EDUCATION " HAS THE MEANING
221		-	SET FORTH IN SECTION
222		-	23-18-102 (10).
223		-	(f) "T
224		-	HERMAL ENERGY NETWORK " HAS THE MEANING SET FORTH IN
225		-	SECTION
226		-	40-3.2-108 (2)(s).
227		-	(g) "T
228		-	HERMAL ENERGY SYSTEM " HAS THE MEANING SET FORTH IN
229		-	SECTION
230		-	40-3.2-108 (2)(t).
231		-	SECTION 4. In Colorado Revised Statutes, 40-3.2-108, amend
232		-	(2)(c)(V); and add (2)(c)(V.5), (2)(h.5), (2)(r), (2)(s), (2)(t), and
233		-	(4)(c)(XIV.5) as follows:
234		-	PAGE 6-HOUSE BILL 23-1252 40-3.2-108. Clean heat targets - legislative declaration -
235		-	definitions - plans - rules - reports. (2) Definitions. As used in this
236		-	section, unless the context otherwise requires:
237		-	(c) "Clean heat resource" means any one or a combination of:
238		-	(V) Pyrolysis of tires if the pyrolysis meets a recovered methane
239		-	protocol; and
240		-	(V.5) THERMAL ENERGY; AND
241		-	(h.5) "GEOTHERMAL FLUID" HAS THE MEANING SET FORTH IN
242		-	SECTION
243		-	37-90.5-103 (2).
244		-	(r) (I) "T
245		-	HERMAL ENERGY" MEANS PIPED, NONCOMBUSTIBLE FLUIDS
246		-	USED FOR ADDING OR REMOVING HEAT FROM BUILDINGS FOR THE PURPOSE
247		-	OF EFFICIENT BUILDING TEMPERATURE CONTROL AND DOMESTIC HOT WATER
248		-	,
249		-	INCLUDING SPACE HEATING AND COOLING AND REFRIGERATION .
250		-	(II) "T
251		-	HERMAL ENERGY" INCLUDES METHODS OF EXCHANGING THE
252		-	PIPED
253		-	, NONCOMBUSTIBLE FLUIDS THROUGH THE GROUND , WASTEWATER
254		-	TREATMENT FACILITIES
255		-	, OR OTHER SOURCES THAT ACHIEVE DESIRED FLUID
256		-	TEMPERATURES
257		-	; EXCEPT THAT ANY SOURCE OF THERMAL ENERGY FOR THIS
258		-	PURPOSE MUST
259		-	:
260		-	(A) N
261		-	OT CAUSE INCREMENTAL GREENHOUSE GAS EMISSIONS OR RELY
262		-	ON INCREASED
263		-	, LONG-TERM COMBUSTION OF FOSSIL FUELS; AND
264		-	(B) BE EVALUATED BY THE COMMISSION TO PROTECT AGAINST
265		-	INCREASED EMISSIONS OF HARMFUL CO
266		-	-POLLUTANTS, NEGATIVE IMPACTS TO
267		-	COMMUNITIES INCLUDING TO DISPROPORTIONATELY IMPACTED
268		-	COMMUNITIES
269		-	, AS DEFINED IN SECTION 24-4-109 (2)(b)(II), AND THE RISK OF
270		-	STRANDED ASSETS
271		-	, IF THE THERMAL ENERGY IS FROM ANY INDUSTRIAL
272		-	SOURCE INCLUDING A SYSTEM FOR WHICH THE PRIMARY PURPOSE IS TO
273		-	GENERATE ELECTRICITY
274		-	, INCLUDING ANY PROCESS INVOLVING
275		-	ENGINE
276		-	-DRIVEN GENERATION.
277		-	(s) "T
278		-	HERMAL ENERGY NETWORK ":
279		-	(I) M
280		-	EANS ALL REAL ESTATE, FIXTURES, AND PERSONAL PROPERTY
281		-	PAGE 7-HOUSE BILL 23-1252 THAT ARE OPERATED, OWNED, USED, OR INTENDED TO BE USED FOR , IN
282		-	CONNECTION WITH
283		-	, OR TO FACILITATE A DISTRIBUTION INFRASTRUCTURE
284		-	PROJECT THAT SUPPLIES THERMAL ENERGY TO TWO OR MORE BUILDINGS
285		-	THAT ARE NOT A CAMPUS
286		-	, AS DEFINED IN SECTION 40-4-121 (1)(a), AND
287		-	THAT ASSISTS IN REDUCING GREENHOUSE GAS EMISSIONS IN THE STATE
288		-	;
289		-	(II) C
290		-	ONSISTS OF PIPE LOOPS BETWEEN MULTIPLE BUILDINGS AND
291		-	ENERGY SOURCES CARRYING PIPED
292		-	, NONCOMBUSTIBLE FLUIDS AT THE
293		-	DESIRED THERMAL TEMPERATURE
294		-	;
295		-	(III) I
296		-	NCLUDES A NETWORK THAT CAN BE USED FOR HEATING ,
297		-	COOLING, AND OTHER BUILDING SERVICES; AND
298		-	(IV) MAY ALSO BE KNOWN AS A GEOTHERMAL EXCHANGE DISTRICT ,
299		-	NETWORKED GEOTHERMAL SYSTEM , GEOEXCHANGE SYSTEM , GEOGRID
300		-	SYSTEM
301		-	, COMMUNITY GEOTHERMAL HEATING AND COOLING DISTRICT , OR A
302		-	GEOTHERMAL HEATING DISTRICT
303		-	.
304		-	(t) "T
305		-	HERMAL ENERGY SYSTEM " INCLUDES A GEOTHERMAL SYSTEM
306		-	OR OTHER METHOD OF EXCHANGING THE PIPED
307		-	, NONCOMBUSTIBLE FLUIDS
308		-	THROUGH THE GROUND
309		-	, WASTEWATER TREATMENT FACILITIES , OR OTHER
310		-	SOURCES OF THERMAL ENERGY THAT ACHIEVE DESIRED FLUID
311		-	TEMPERATURES
312		-	.
313		-	(4) Submission of clean heat plans. (c) A clean heat plan filed
314		-	pursuant to this subsection (4) must:
315		-	(XIV.5) D
316		-	EMONSTRATE THAT, WITH RESPECT TO ANY THERMAL
317		-	ENERGY NETWORK THAT WILL BE USED AS A CLEAN HEAT RESOURCE
318		-	, ANY
319		-	GEOTHERMAL FLUID ASSOCIATED WITH THE THERMAL ENERGY SYSTEM OR
320		-	THERMAL ENERGY NETWORK IS USED IN COMPLIANCE WITH THE PERMITTING
321		-	REQUIREMENTS FOR PRODUCTION OF GEOTHERMAL FLUID SET FORTH IN
322		-	ARTICLE
323		-	90.5 OF TITLE 37; AND
324		-	SECTION 5. In Colorado Revised Statutes, add 40-4-121 as
325		-	follows:
326		-	40-4-121. Thermal energy network projects - pilot program for
327		-	large gas utilities - application - commission proceeding - reporting -
328		-	exemption from regulation for local government - or campus-owned
329		-	PAGE 8-HOUSE BILL 23-1252 thermal energy networks - definitions. (1) A S USED IN THIS SECTION,
330		-	UNLESS THE CONTEXT OTHERWISE REQUIRES :
331		-	(a) (I) "C
332		-	AMPUS" MEANS A COLLECTION OF TWO OR MORE BUILDINGS
333		-	THAT ARE OWNED AND OPERATED BY THE SAME PERSON
334		-	, THAT HAVE A
335		-	SHARED PURPOSE AND FUNCTION AS A SINGLE PROPERTY
336		-	, THAT DO NOT
337		-	LEASE SPACE TO TENANTS
338		-	, AND THAT DO NOT PROVIDE ENERGY OR HEAT
339		-	SERVICES FOR A FEE
340		-	.
341		-	(II) "C
342		-	AMPUS" INCLUDES TWO OR MORE OF THE BUILDINGS THAT
343		-	COMPRISE THE CAPITOL COMPLEX
344		-	, AS DEFINED IN SECTION 24-82-101 (3)(f).
345		-	(b) "D
346		-	ISPROPORTIONATELY IMPACTED COMMUNITY " HAS THE
347		-	MEANING SET FORTH IN SECTION
348		-	24-4-109 (2)(b)(II).
349		-	(c) "G
350		-	AS UTILITY" MEANS A GAS UTILITY IN THE STATE THAT THE
351		-	COMMISSION REGULATES WITH RESPECT TO RATES AND CHARGES
352		-	.
353		-	(d) "L
354		-	ARGE GAS UTILITY" MEANS A GAS UTILITY THAT SERVES MORE
355		-	THAN FIVE HUNDRED THOUSAND CUSTOMERS
356		-	.
357		-	(e) "L
358		-	OCAL GOVERNMENT " MEANS A STATUTORY OR HOME -RULE
359		-	CITY
360		-	, TOWN, COUNTY, OR CITY AND COUNTY.
361		-	(f) "T
362		-	HERMAL ENERGY" HAS THE MEANING SET FORTH IN SECTION
363		-	40-3.2-108 (2)(r).
364		-	(g) "T
365		-	HERMAL ENERGY NETWORK " HAS THE MEANING SET FORTH IN
366		-	SECTION
367		-	40-3.2-108 (2)(s).
368		-	(h) "T
369		-	HERMAL ENERGY SYSTEM " HAS THE MEANING SET FORTH IN
370		-	SECTION
371		-	40-3.2-108 (2)(t).
372		-	(2) (a) E
373		-	XCEPT AS PROVIDED IN SUBSECTION (3) OF THIS SECTION, A
374		-	GAS UTILITY THAT SEEKS TO OFFER THERMAL ENERGY NETWORK SERVICE TO
375		-	ITS CUSTOMERS MUST PROPOSE DEVELOPING A THERMAL ENERGY NETWORK
376		-	BY A SEPARATE APPLICATION TO THE COMMISSION THAT IS NOT INCLUDED IN
377		-	THE GAS UTILITY
378		-	'S APPLICATION TO THE COMMISSION FOR APPROVAL OF A
379		-	CLEAN HEAT PLAN PURSUANT TO SECTION
380		-	40-3.2-108 OR A GAS
381		-	DEMAND
382		-	-SIDE MANAGEMENT PROGRAM PLAN PURSUANT TO SECTION
383		-	PAGE 9-HOUSE BILL 23-1252 40-3.2-103 (3) OR AS PART OF A DSM STRATEGIC ISSUES APPLICATION
384		-	PURSUANT TO SECTION
385		-	40-3.2-103 (1).
386		-	(b) I
387		-	N CONSIDERING WHETHER TO APPROVE A GAS UTILITY 'S
388		-	APPLICATION TO OFFER THERMAL ENERGY NETWORK SERVICE
389		-	, THE
390		-	COMMISSION SHALL CONSIDER THE LONG
391		-	-TERM EFFECTS THAT THE PROPOSED
392		-	THERMAL ENERGY NETWORK WOULD HAVE ON THE STATE
393		-	'S UTILITY
394		-	WORKFORCE
395		-	.
396		-	(3) (a) O
397		-	N OR BEFORE SEPTEMBER 1, 2024, A LARGE GAS UTILITY
398		-	SHALL SUBMIT TO THE COMMISSION FOR REVIEW AND APPROVAL AT LEAST
399		-	ONE PILOT PROGRAM
400		-	, CONSISTING OF ONE OR MORE PILOT PROJECTS , TO
401		-	PROVIDE THERMAL ENERGY SERVICE IN ITS SERVICE AREA
402		-	.
403		-	(b) A
404		-	LARGE GAS UTILITY MAY PROPOSE MORE THAN ONE PILOT
405		-	THERMAL ENERGY NETWORK PROGRAM PURSUANT TO THIS SUBSECTION
406		-	(3)
407		-	BY FILING SEPARATE APPLICATIONS FOR REVIEW AND APPROVAL OF
408		-	ADDITIONAL PILOT PROGRAMS WITH THE COMMISSION ON OR BEFORE
409		-	SEPTEMBER 1, 2026.
410		-	(c) I
411		-	N DEVELOPING A PILOT PROGRAM PROPOSAL , A LARGE GAS
412		-	UTILITY SHALL PROPOSE AS PART OF THE PROPOSED PILOT PROGRAM AT
413		-	LEAST ONE PILOT PROJECT THAT SERVES RESIDENTIAL CUSTOMERS LOCATED
414		-	IN A
415		-	:
416		-	(I) D
417		-	ISPROPORTIONATELY IMPACTED COMMUNITY ;
418		-	(II) M
419		-	OUNTAIN COMMUNITY SERVED BY THE LARGE GAS UTILITY ; OR
420		-	(III) UTILITY SERVICE AREA THAT THE COMMISSION HAS
421		-	DETERMINED IS CAPACITY CONSTRAINED OR THAT IS TARGETED FOR
422		-	ELECTRIFICATION IN A UTILITY CLEAN HEAT PLAN OR BENEFICIAL
423		-	ELECTRIFICATION PLAN
424		-	.
	458	+	HE POTENTIAL FOR IMPLEMENTATION OF THERMAL ENERGY13
	459	+	NETWORKS TO PROVIDE CONSUMER BILL STABILIZATION AND THE14
	460	+	METHODS BY WHICH SUCH STABILIZATION MAY BE ACHIEVED ;15
	461	+	(b) T
	462	+	HE POTENTIAL FOR IMPLEMENTATION OF THERMAL ENERGY16
	463	+	NETWORKS TO REDUCE CONSUMER BILL COSTS ;17
	464	+	(c) T
	465	+	HE POTENTIAL TO REUSE EXISTING GAS INFRASTRUCTURE FOR ,18
	466	+	OR TO TIME END -OF-LIFE GAS INFRASTRUCTURE RETIREMENT OR19
	467	+	REPLACEMENT WITH, IMPLEMENTATION OF THERMAL ENERGY NETWORKS ;20
	468	+	(d) T
	469	+	HE POTENTIAL FOR IMPLEMENTATION OF THERMAL ENERGY21
	470	+	NETWORKS TO ASSIST THE LARGE GAS UTILITY IN AVOIDING STR ANDED GAS22
	471	+	ASSETS;23
	472	+	(e) A
	473	+	N ESTIMATE OF AVOIDED EMISSIONS FROM IMPLEMENTATION24
	474	+	OF THERMAL ENERGY NETWORKS ; AND25
	475	+	(f) P
	476	+	ROGRAMS, INCENTIVES, OR OTHER MECHANISMS THAT THE26
	477	+	LARGE GAS UTILITY MAY EMPLOY TO MAKE WIDESPREAD THERMAL27
	478	+	1252
	479	+	-14- ENERGY NETWORK IMPLEMENTATION A VIABLE OPTION .1
	480	+	(5) (a) O
	481	+	N OR BEFORE JANUARY 1, 2025, THE COMMISSION SHALL2
	482	+	INITIATE A PROCEEDING TO DETERMINE WHETHER COMMISSION3
	483	+	RULE-MAKING OR ADDITIONAL LEGISLATIVE CHANGES ARE NEEDED TO4
	484	+	FACILITATE THE DEVELOPMENT OF THERMAL ENERGY IN THE STATE .5
	485	+	(b) (I) A
	486	+	S PART OF THE PROCEEDING HELD PURSUANT TO THIS6
	487	+	SUBSECTION (5), THE COMMISSION SHALL CONSIDER :7
	488	+	(A) T
	489	+	HE APPROPRIATE UTILITY OWNERSHIP MODELS
	490	+	FOR8
	491	+	DEVELOPMENT, ACQUISITION, CUSTOMER SERVICE, AND COST RECOVERY9
	492	+	FOR THERMAL ENERGY NETWORKS ; AND10
	493	+	(B) T
	494	+	HE APPROPRIATE UTILITY RATE STRUCTURES FOR
	495	+	AND11
	496	+	CUSTOMER TYPES OR CLASSES SERVED BY THERMAL ENERGY NETWORKS .12
	497	+	(II) T
	498	+	HE COMMISSION MAY ALSO CONSIDER DURING THE13
	499	+	PROCEEDING WHETHER RULES ARE NECESSARY TO :14 (A) CREATE REQUIREMENTS FOR GAS-UTILITY-OWNED THERMAL15
	500	+	ENERGY NETWORKS CONCERNING A LARGE GAS UTILITY 'S ABILITY TO16
	501	+	PARTNER WITH QUALIFIED THIRD PARTIES THROUGH JOINT VENTURES,17
	502	+	ASSET DEVELOPMENT AND TRANSFERS, OR SIMILAR STRUCTURES AND18
	503	+	FACILITATE THE DEVELOPMENT OF THERMAL ENERGY NETWORKS ;19
	504	+	(B) E
	505	+	NSURE THAT ANY THERMAL ENERGY NETWORK20
	506	+	INCORPORATED INTO A LARGE GAS UTILITY'S SYSTEM PROVIDES RELIABLE21
	507	+	AND RESILIENT SERVICE;22
	508	+	(C) P
	509	+	ROMOTE TRAINING AND TRANSITION OF UTILITY WORKERS23
	510	+	FOR THERMAL ENERGY JOBS;24
425	511		(D) A
426		-	LARGE GAS UTILITY'S PILOT THERMAL ENERGY NETWORK
427		-	PROGRAM PROPOSAL MUST
428		-	:
429		-	(I) I
430		-	NCLUDE SPECIFIC CUSTOMER PROTECTION PLANS THAT PROMOTE
431		-	STABLE UTILITY RATES
432		-	;
433		-	PAGE 10-HOUSE BILL 23-1252 (II) BE MADE PUBLICLY AVAILABLE ON THE COMMISSION 'S WEBSITE;
434		-	AND
435		-	(III) IF APPROVED, BE IMPLEMENTED IN COMPLIANCE WITH THE
436		-	LABOR STANDARDS SET FORTH IN SECTION
437		-	40-3.2-105.7.
438		-	(e) I
439		-	N CONSIDERING WHETHER TO APPROVE A LARGE GAS UTILITY 'S
440		-	APPLICATION PROPOSING A PILOT THERMAL ENERGY NETWORK PROGRAM
441		-	,
442		-	THE COMMISSION SHALL CONSIDER THE LONG -TERM EFFECTS THAT THE
443		-	PROPOSED PILOT THERMAL ENERGY NETWORK PROGRAM WOULD HAVE ON
444		-	THE STATE
445		-	'S UTILITY WORKFORCE.
446		-	(f) A
447		-	LARGE GAS UTILITY MAY PROPOSE A PILOT THERMAL ENERGY
448		-	NETWORK PROGRAM AS PART OF THE LARGE GAS UTILITY
449		-	'S APPLICATION FOR
450		-	APPROVAL OF A CLEAN HEAT PLAN PURSUANT TO SECTION
451		-	40-3.2-108 OR A
452		-	GAS
453		-	DSM PROGRAM PLAN PURSUANT TO SECTION 40-3.2-103 (3) OR AS PART
454		-	OF A STRATEGIC ISSUES APPLICATION
455		-	; EXCEPT THAT A PILOT THERMAL
456		-	ENERGY NETWORK PROGRAM APPLIED FOR AS PART OF A CLEAN HEAT PLAN
457		-	DOES NOT COUNT TOWARD THE CLEAN HEAT PLAN COST CAPS SET FORTH IN
458		-	SECTION
459		-	40-3.2-108 (6)(a)(I).
460		-	(g) I
461		-	N PROPOSING A PILOT THERMAL ENERGY NETWORK PROGRAM
462		-	PURSUANT TO THIS SUBSECTION
463		-	(3), A LARGE GAS UTILITY SHALL PRESENT
464		-	TO THE COMMISSION OPTIONS FOR HOW THE LARGE GAS UTILITY MAY FUND
465		-	THE PILOT PROGRAM
466		-	, INCLUDING OPTIONS THAT INVOLVE THE USE OF ANY
467		-	FEDERAL OR PRIVATE SOURCES OF FUNDING OR RATE RECOVERY FROM
468		-	NONRESIDENTIAL CUSTOMERS TO MANAGE IMPACTS UPON RESIDENTIAL
469		-	CUSTOMERS
470		-	. A PILOT THERMAL ENERGY NETWORK PROGRAM APPLICATION
471		-	MUST INCLUDE A CURRENT OR FORWARD
472		-	-LOOKING RATE STRUCTURE TO
473		-	PROMOTE STABLE CUSTOMER BILLING
474		-	.
475		-	(4) A
476		-	LARGE GAS UTILITY THAT DEVELOPS A PILOT THERMAL ENERGY
477		-	NETWORK PROGRAM SHALL REPORT TO THE COMMISSION IN THE FORM AND
478		-	MANNER REQUIRED BY THE COMMISSION INFORMATION AND DATA
479		-	REGARDING THE PILOT PROGRAM TO HELP FURTHER THE DEVELOPMENT OF
480		-	FUTURE THERMAL ENERGY NETWORKS
481		-	. THE LARGE GAS UTILITY'S REPORT
482		-	MUST INCLUDE
483		-	:
484		-	(a) T
485		-	HE POTENTIAL FOR IMPLEMENTATION OF THERMAL ENERGY
486		-	NETWORKS TO PROVIDE CONSUMER BILL STABILIZATION AND THE METHODS
487		-	PAGE 11-HOUSE BILL 23-1252 BY WHICH SUCH STABILIZATION MAY BE ACHIEVED ;
488		-	(b) T
489		-	HE POTENTIAL FOR IMPLEMENTATION OF THERMAL ENERGY
490		-	NETWORKS TO REDUCE CONSUMER BILL COSTS
491		-	;
492		-	(c) T
493		-	HE POTENTIAL TO REUSE EXISTING GAS INFRASTRUCTURE FOR ,
494		-	OR TO TIME END -OF-LIFE GAS INFRASTRUCTURE RETIREMENT OR
495		-	REPLACEMENT WITH
496		-	, IMPLEMENTATION OF THERMAL ENERGY NETWORKS ;
497		-	(d) T
498		-	HE POTENTIAL FOR IMPLEMENTATION OF THERMAL ENERGY
499		-	NETWORKS TO ASSIST THE LARGE GAS UTILITY IN AVOIDING STRANDED GAS
500		-	ASSETS
501		-	;
502		-	(e) A
503		-	N ESTIMATE OF AVOIDED EMISSIONS FROM IMPLEMENTATION OF
504		-	THERMAL ENERGY NETWORKS
505		-	; AND
506		-	(f) PROGRAMS, INCENTIVES, OR OTHER MECHANISMS THAT THE
507		-	LARGE GAS UTILITY MAY EMPLOY TO MAKE WIDESPREAD THERMAL ENERGY
508		-	NETWORK IMPLEMENTATION A VIABLE OPTION
509		-	.
510		-	(5) (a) O
511		-	N OR BEFORE JANUARY 1, 2025, THE COMMISSION SHALL
512		-	INITIATE A PROCEEDING TO DETERMINE WHETHER COMMISSION
513		-	RULE
514		-	-MAKING OR ADDITIONAL LEGISLATIVE CHANGES ARE NEEDED TO
515		-	FACILITATE THE DEVELOPMENT OF THERMAL ENERGY IN THE STATE
516		-	.
517		-	(b) (I) A
518		-	S PART OF THE PROCEEDING HELD PURSUANT TO THIS
519		-	SUBSECTION
520		-	(5), THE COMMISSION SHALL CONSIDER:
521		-	(A) T
522		-	HE APPROPRIATE UTILITY OWNERSHIP MODELS FOR
523		-	DEVELOPMENT
524		-	, ACQUISITION, CUSTOMER SERVICE, AND COST RECOVERY FOR
525		-	THERMAL ENERGY NETWORKS
526		-	; AND
527		-	(B) THE APPROPRIATE UTILITY RATE STRUCTURES FOR AND
528		-	CUSTOMER TYPES OR CLASSES SERVED BY THERMAL ENERGY NETWORKS
529		-	.
530		-	(II) T
531		-	HE COMMISSION MAY ALSO CONSIDER DURING THE PROCEEDING
532		-	WHETHER RULES ARE NECESSARY TO
533		-	:
534		-	(A) C
535		-	REATE REQUIREMENTS FOR GAS -UTILITY-OWNED THERMAL
536		-	ENERGY NETWORKS CONCERNING A LARGE GAS UTILITY
537		-	'S ABILITY TO
538		-	PAGE 12-HOUSE BILL 23-1252 PARTNER WITH QUALIFIED THIRD PARTIES THR OUGH JOINT VENTURES , ASSET
539		-	DEVELOPMENT AND TRANSFERS
540		-	, OR SIMILAR STRUCTURES AND FACILITATE
541		-	THE DEVELOPMENT OF THERMAL ENERGY NETWORKS
542		-	;
543		-	(B) E
544		-	NSURE THAT ANY THERMAL ENERGY NETWORK INCORPORATED
545		-	INTO A LARGE GAS UTILITY
546		-	'S SYSTEM PROVIDES RELIABLE AND RESILIENT
547		-	SERVICE
548		-	;
549		-	(C) P
550		-	ROMOTE TRAINING AND TRANSITION OF UTILITY WORKERS FOR
551		-	THERMAL ENERGY JOBS
552		-	;
553		-	(D) A
554		-	DJUST A LARGE GAS UTILITY'S RATE RECOVERY MECHANISMS
555		-	TO FURTHER SUPPORT THE DEVELOPMENT OF THERMAL ENERGY NETWORKS
556		-	AS PART OF MEETING THE STATE
557		-	'S OVERALL ENERGY POLICY OBJECTIVES ;
558		-	AND
559		-	(E) DETERMINE APPROPRIATE METHODS OF COST RECOVERY FOR
560		-	THERMAL ENERGY NETWORKS
561		-	, INCLUDING CONSIDERATION OF THE
562		-	STABILITY OF UTILITY CUSTOMERS
563		-	' BILLS.
	512	+	DJUST A LARGE GAS UTILITY'S RATE RECOVERY MECHANISMS25
	513	+	TO FURTHER SUPPORT THE DEVELOPMENT OF THERMAL ENERGY26
	514	+	NETWORKS AS PART OF MEETING THE STATE 'S OVERALL ENERGY POLICY27
	515	+	1252
	516	+	-15- OBJECTIVES; AND1
	517	+	(E) D
	518	+	ETERMINE APPROPRIATE METHODS OF COST RECOVERY FOR2
	519	+	THERMAL ENERGY NETWORKS , INCLUDING CONSIDERATION OF THE3
	520	+	STABILITY OF UTILITY CUSTOMERS' BILLS.4
564	521		(6) A
565		-	LOCAL GOVERNMENT OR CAMPUS THAT DEVELOPS AND
566		-	OPERATES A THERMAL ENERGY SYSTEM THAT PROVIDES THERMAL ENERGY
567		-	SERVICE TO BUILDINGS THAT THE LOCAL GOVERNMENT OR CAMPUS OWNS
568		-	AND MANAGES IS NOT CONSIDERED A PUBLIC UTILITY AND IS NOT SUBJECT TO
569		-	REGULATION BY THE COMMISSION
570		-	.
571		-	SECTION 6. In Colorado Revised Statutes, repeal article 40 of title
572		-	40.
573		-	SECTION 7. In Colorado Revised Statutes, 30-20-603, amend
574		-	(1)(a) as follows:
575		-	30-20-603. Improvements and funding authorized - how
576		-	instituted - conditions - definitions. (1) (a) (I) A district may be formed
577		-	in accordance with the requirements of this part 6 for the purpose of
578		-	constructing, installing, acquiring, or funding, in whole or in part, any
579		-	public improvement, so long as the county that forms the district is
580		-	authorized to provide such improvement or provide for such funding under
581		-	the county's home rule charter, if any, or the laws of this state. Public
582		-	improvements or the funding thereof shall
583		-	OF PUBLIC IMPROVEMENTS MUST
584		-	PAGE 13-HOUSE BILL 23-1252 not include any facility identified in section 30-20-101 (8) or (9). No such
585		-	A district shall NOT provide the same improvement as an existing special
586		-	district within the territory of such THE existing special district unless the
587		-	existing special district consents.
588		-	(II) The improvements authorized by this part 6 may consist, without
589		-	limitation, of constructing, grading, paving, pouring, curbing, guttering,
590		-	lining, or otherwise improving the whole or any part of any street or
591		-	providing street lighting, drainage facilities, or service improvements in the
592		-	unincorporated area of a county or wholly or partly within the boundaries
593		-	of any municipality within the county if such municipality consents by
594		-	ordinance to such
595		-	THE improvements. If improvements within a
596		-	municipality are so included in a county improvement district by municipal
597		-	consent, the county shall have full authority to MAY construct or acquire
598		-	such improvements, to assess property within such THE municipality
599		-	benefited by such THE improvements, and to enforce and collect such
600		-	assessments, in the manner provided in this part 6. The improvements
601		-	authorized by this part 6 may include, without limitation, the construction
602		-	of sidewalks adjacent to any such streets or maintenance roads adjacent to
603		-	any such drainage facilities.
604		-	(III) Prior to the establishment of any improvement district for the
605		-	purpose of providing street lighting, arrangements, by contract or otherwise,
606		-	must be established under which the owners of property included within
607		-	such
608		-	THE district shall be ARE responsible for the maintenance and operation
609		-	of such street lighting improvement. The costs of maintenance and
610		-	operation of such
611		-	THE street lighting improvements shall not be paid from
612		-	the county general fund.
613		-	(IV) Drainage facilities shall not be provided in any area which
614		-	THAT is within an existing drainage district organized or created pursuant
615		-	to law without the approval of such THE district.
616		-	(V) The term AS USED IN THIS SUBSECTION (1)(a), "service" as used
617		-	in this paragraph (a) includes the services provided by a public utility as
618		-	defined in section 40-1-103, C.R.S., as well as advanced service as defined
619		-	in section 29-27-102 (1), C.R.S., cable television service as defined in
620		-	section 29-27-102 (2), C.R.S., telecommunications service as defined in
621		-	section 40-15-102 (29), C.R.S., geothermal heat suppliers, as defined in
622		-	section 40-40-103, C.R.S., and information service as defined in 47 U.S.C.
623		-	PAGE 14-HOUSE BILL 23-1252 sec. 153 (20) (24), or any successor section.
624		-	SECTION 8. Act subject to petition - effective date. This act
625		-	takes effect at 12:01 a.m. on the day following the expiration of the
626		-	ninety-day period after final adjournment of the general assembly; except
627		-	that, if a referendum petition is filed pursuant to section 1 (3) of article V
628		-	of the state constitution against this act or an item, section, or part of this act
629		-	within such period, then the act, item, section, or part will not take effect
630		-	unless approved by the people at the general election to be held in
631		-	PAGE 15-HOUSE BILL 23-1252 November 2024 and, in such case, will take effect on the date of the official
632		-	declaration of the vote thereon by the governor.
633		-	____________________________ ____________________________
634		-	Julie McCluskie Steve Fenberg
635		-	SPEAKER OF THE HOUSE PRESIDENT OF
636		-	OF REPRESENTATIVES THE SENATE
637		-	____________________________ ____________________________
638		-	Robin Jones Cindi L. Markwell
639		-	CHIEF CLERK OF THE HOUSE SECRETARY OF
640		-	OF REPRESENTATIVES THE SENATE
641		-	APPROVED________________________________________
642		-	(Date and Time)
643		-	_________________________________________
644		-	Jared S. Polis
645		-	GOVERNOR OF THE STATE OF COLORADO
646		-	PAGE 16-HOUSE BILL 23-1252
	522	+	LOCAL GOVERNMENT OR CAMPUS THAT DEVELOPS AND5
	523	+	OPERATES A THERMAL ENERGY
	524	+	SYSTEM THAT PROVIDES THERMAL ENERGY6
	525	+	SERVICE TO BUILDINGS THAT THE LOCAL GOVERNMENT OR CAMPUS OWNS7
	526	+	AND MANAGES IS NOT CONSIDERED A PUBLIC UTILITY AND IS NOT SUBJECT8
	527	+	TO REGULATION BY THE COMMISSION .9
	528	+	SECTION 6. In Colorado Revised Statutes, repeal article 40 of10
	529	+	title 40.11
	530	+	SECTION 7. In Colorado Revised Statutes, 30-20-603, amend12
	531	+	(1)(a) as follows:13
	532	+	30-20-603. Improvements and funding authorized - how14
	533	+	instituted - conditions - definitions. (1) (a) (I) A district may be formed15
	534	+	in accordance with the requirements of this part 6 for the purpose of16
	535	+	constructing, installing, acquiring, or funding, in whole or in part, any17
	536	+	public improvement, so long as the county that forms the district is18
	537	+	authorized to provide such improvement or provide for such funding19
	538	+	under the county's home rule charter, if any, or the laws of this state.20
	539	+	Public improvements or the funding thereof shall OF PUBLIC21
	540	+	IMPROVEMENTS MUST not include any facility identified in section22
	541	+	30-20-101 (8) or (9). No such A district shall NOT provide the same23
	542	+	improvement as an existing special district within the territory of such24
	543	+	THE existing special district unless the existing special district consents.25
	544	+	(II) The improvements authorized by this part 6 may consist,26
	545	+	without limitation, of constructing, grading, paving, pouring, curbing,27
	546	+	1252
	547	+	-16- guttering, lining, or otherwise improving the whole or any part of any1
	548	+	street or providing street lighting, drainage facilities, or service2
	549	+	improvements in the unincorporated area of a county or wholly or partly3
	550	+	within the boundaries of any municipality within the county if such4
	551	+	municipality consents by ordinance to such THE improvements. If5
	552	+	improvements within a municipality are so included in a county6
	553	+	improvement district by municipal consent, the county shall have full7
	554	+	authority to MAY construct or acquire such improvements, to assess8
	555	+	property within such THE municipality benefited by such THE9
	556	+	improvements, and to enforce and collect such assessments, in the manner10
	557	+	provided in this part 6. The improvements authorized by this part 6 may11
	558	+	include, without limitation, the construction of sidewalks adjacent to any12
	559	+	such streets or maintenance roads adjacent to any such drainage facilities.13
	560	+	(III) Prior to the establishment of any improvement district for the14
	561	+	purpose of providing street lighting, arrangements, by contract or15
	562	+	otherwise, must be established under which the owners of property16
	563	+	included within such THE district shall be ARE responsible for the17
	564	+	maintenance and operation of such street lighting improvement. The costs18
	565	+	of maintenance and operation of such THE street lighting improvements19
	566	+	shall not be paid from the county general fund.20
	567	+	(IV) Drainage facilities shall not be provided in any area which21
	568	+	THAT is within an existing drainage district organized or created pursuant22
	569	+	to law without the approval of such THE district.23
	570	+	(V) The term AS USED IN THIS SUBSECTION (1)(a), "service" as24
	571	+	used in this paragraph (a) includes the services provided by a public25
	572	+	utility as defined in section 40-1-103, C.R.S., as well as advanced service26
	573	+	as defined in section 29-27-102 (1), C.R.S., cable television service as27
	574	+	1252
	575	+	-17- defined in section 29-27-102 (2), C.R.S., telecommunications service as1
	576	+	defined in section 40-15-102 (29), C.R.S., geothermal heat suppliers, as2
	577	+	defined in section 40-40-103, C.R.S., and information service as defined3
	578	+	in 47 U.S.C. sec. 153 (20) (24), or any successor section.4
	579	+	SECTION 8. Act subject to petition - effective date. This act5
	580	+	takes effect at 12:01 a.m. on the day following the expiration of the6
	581	+	ninety-day period after final adjournment of the general assembly; except7
	582	+	that, if a referendum petition is filed pursuant to section 1 (3) of article V8
	583	+	of the state constitution against this act or an item, section, or part of this9
	584	+	act within such period, then the act, item, section, or part will not take10
	585	+	effect unless approved by the people at the general election to be held in11
	586	+	November 2024 and, in such case, will take effect on the date of the12
	587	+	official declaration of the vote thereon by the governor.13
	588	+	1252
	589	+	-18-