HOUSE BILL 23-1252
BY REPRESENTATIVE(S) Lieder and Kipp, Amabile, Bacon, Bird,
Boesenecker, Brown, Daugherty, deGruy Kennedy, Dickson, Hamrick,
Herod, Joseph, Lindsay, Lindstedt, Lynch, Mabrey, McCormick,
McLachlan, Michaelson Jenet, Parenti, Pugliese, Ricks, Snyder, Soper,
Story, Taggart, Titone, Valdez, Velasco, Vigil, Willford, Young,
McCluskie;
also SENATOR(S) Exum and Hansen, Ginal, Mullica, Priola, Sullivan,
Winter F.
C
ONCERNING THE IMPLEMENTATION OF MEASURES TO ADVANCE THERMAL
ENERGY SERVICE
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Legislative declaration. (1) The general assembly
finds that:
(a) Colorado adopted Senate Bill 21-264, enacted in 2021, that
requires regulated gas utilities to develop a clean heat plan to meet a four
percent reduction below 2015 greenhouse gas emission levels by 2025 and
a twenty-two percent reduction below 2015 greenhouse gas emission levels
by 2030;
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
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. (b) Gas utility workers have helped provide reliable energy
throughout the state. Affording gas utilities a pathway to providing thermal
energy service in the state also provides gas utility employees an
opportunity to utilize many of their existing skills for clean energy jobs for
the utility.
(c) Colorado residential and business utility customers have been
affected by recent trends in gas prices. Helping these utility customers shift
from gas to clean thermal energy service could provide long-term price
stability for heating and cooling their homes and businesses and for heating
water in their homes and businesses.
(d) The use of thermal energy networks can help reduce greenhouse
gas emissions from buildings and enhance resilience while supporting
beneficial electrification. Utility-scale thermal energy projects and
investments can especially help the state achieve these goals.
(2) The general assembly declares that:
(a) Requiring gas utilities to present different approaches for cost
recovery of investments in thermal energy service, and requiring the public
utilities commission to consider the cost to customers under each approach
presented, will help minimize the long-term cost to utility customers for the
cost of transitioning to clean thermal energy service;
(b) It is important to pursue the decarbonization of buildings in the
state in a manner that:
(I) Is affordable and accessible;
(II) Preserves existing living-wage jobs while also creating new
living-wage jobs; and
(III) Retains the knowledge and experience of the existing utility
union workforce;
(c) Passage of this act is intended for the purposes of:
(I) Removing the legal barriers to utilities' development of thermal
PAGE 2-HOUSE BILL 23-1252 energy networks;
(II) Requiring the public utilities commission to evaluate utilities'
development of thermal energy networks; and
(III) Immediately commencing the piloting of thermal energy
network projects by certain utilities; and
(d) In evaluating a gas utility's application to provide thermal energy
service, the public utilities commission should consider any potential that
the utility may have to reuse existing infrastructure that otherwise would
result in stranded assets.
SECTION 2. In Colorado Revised Statutes, 24-38.5-118, amend
(4)(a) introductory portion, (4)(a)(I), (4)(a)(II), (4)(a)(IV), and (4)(c)(II) as
follows:
24-38.5-118. Geothermal energy grant program - creation -
procedures - fund - report - definitions - repeal. (4) Grants - limitations
- qualifications. The grant program consists of three types of grants:
(a) The single-structure geothermal grant, which is awarded to
applicants that are constructing a new building
OR RETROFITTING AN
EXISTING BUILDING
, including a single-family or multifamily residence, and
that are
installing a geothermal system for use as the primary heating and
cooling system for the building. A single-structure geothermal grant is
subject to the following limitations and qualifications:
(I) A developer or geothermal installer is eligible for grants for the
construction
OR RETROFITTING of no more than one hundred residential
buildings;
(II) Commercial buildings and state and local government buildings
that are constructed
OR RETROFITTED using grant money must meet the
standards of the 2021 International Energy Conservation Code, or
subsequent edition of the code;
(IV) The office shall determine the amount of each grant based on
per-ton heating capacity as follows; except that the office may change a
grant award amount after the first year if the office determines that changes
PAGE 3-HOUSE BILL 23-1252 are necessary to advance geothermal development:
(A) A nonresidential building constructed
OR RETROFITTED by a
for-profit entity qualifies for up to two thousand dollars per ton of heating
capacity;
(B) A nonresidential building constructed
OR RETROFITTED by a
nonprofit entity qualifies for up to three thousand dollars per ton of heating
capacity;
(C) A multifamily residence constructed
OR RETROFITTED by a
for-profit entity qualifies for up to two thousand dollars per ton of heating
capacity;
(D) A multifamily residence constructed
OR RETROFITTED by a
nonprofit entity qualifies for up to three thousand dollars per ton of heating
capacity; and
(E) A single-family residence, including a residence within a
townhome or condominium building, qualifies for two thousand dollars per
ton of heating capacity; and
(c) The geothermal electricity generation grant, which is awarded to
support the development of geothermal electricity generation and projects
that pair geothermal electricity generation with electrolyzers for the
production of hydrogen from geothermal generation. A person may apply
for more than one cost-matching grant in a year. A geothermal electricity
generation grant is subject to the following limitations and qualifications:
(II) For applications for a grant to help fund a study to identify and
explore resources that may be suitable for geothermal electricity
AND
ENERGY
generation, costing up to one million dollars, the office may award
a grant of up to fifty percent of the study cost; except that, if the project
includes the production of hydrogen from electricity generated using
geothermal energy
OR THE UTILIZATION OF DIRECT AIR CAPTURE
TECHNOLOGY
, the office may award a grant of up to sixty percent of the
study cost. A
NY STUDY FUNDED PURSUANT TO THIS SUBSECTION (4)(c)(II)
MUST INCLUDE AN EVALUATION OF THE RESOURCES ' SAFETY, ECONOMIC
FEASIBILITY
, COST EFFICIENCY COMPARED TO RENEWABLE ENERGY
ALTERNATIVES
, ENVIRONMENTAL IMPACTS , GREENHOUSE GAS AND AIR
PAGE 4-HOUSE BILL 23-1252 POLLUTION EMISSIONS, QUALITY JOB CREATION OPPORTUNITIES , AND
IMPACTS TO NEIGHBORING COMMUNITIES
.
SECTION 3. In Colorado Revised Statutes, add 40-3.2-105.7 as
follows:
40-3.2-105.7. Labor standards for state thermal energy network
and thermal energy system projects - definitions. (1) A
NY THERMAL
ENERGY NETWORK OR THERMAL ENERGY SYSTEM PROJECT THAT AN AGENCY
OF GOVERNMENT OR A STATE INSTITUTION OF HIGHER EDUCATION PROCURES
AND THAT IS A PUBLIC PROJECT MUST COMPLY WITH
:
(a) T
HE APPRENTICESHIP REQUIREMENTS SET FORTH IN SECTION
24-92-115 IF THE ESTIMATED CONTRACT COST FOR THE PUBLIC PROJECT IS
ONE MILLION DOLLARS OR MORE
; AND
(b) PART 2 OF ARTICLE 92 OF TITLE 24 CONCERNING PREVAILING
WAGES FOR PUBLIC PROJECTS IF THE ESTIMATED CONTRACT COST FOR THE
PUBLIC PROJECT IS FIVE HUNDRED THOUSAND DOLLARS OR MORE
.
(2) A
NY THERMAL ENERGY NETWORK OR THERMAL ENERGY SYSTEM
PLUMBING AND ELECTRICAL WORK PERFORMED IN THE STATE SHALL
:
(a) B
E PERFORMED BY LICENSED PLUMBERS , LICENSED
ELECTRICIANS
, OR SUPERVISED APPRENTICES AT A RATIO NO GREATER THAN
THREE APPRENTICES FOR EACH LICENSED MASTER OR JOURNEYMAN PLUMBER
OR ELECTRICIAN
, AS REQUIRED PURSUANT TO SECTION 12-115-115 (1) OR
12-155-124 (1); AND
(b) BE INSTALLED IN COMPLIANCE WITH THE RULES OF THE STATE
ELECTRICAL BOARD OR THE STATE PLUMBING BOARD AND IN ACCORDANCE
WITH THE ELECTRICAL AND PLUMBING CODES ADOPTED PURSUANT TO THOSE
RULES
.
(3) F
OR ANY THERMAL ENERGY NETWORK OR THERMAL ENERGY
SYSTEM THAT A UTILITY OWNS
, THE UTILITY SHALL USE UTILITY EMPLOYEES
OR QUALIFIED CONTRACTORS TO PERFORM ANY CONSTRUCTION TRADE WORK
DEEMED NECESSARY TO COMPLETE THE PROJECT
. A QUALIFIED CONTRACTOR
IS A CONTRACTOR WITH EMPLOYEES THAT HAVE ACCESS TO AN
APPRENTICESHIP PROGRAM AS DEFINED IN SECTION
8-83-308 (3)(a). ALL
PAGE 5-HOUSE BILL 23-1252 MECHANICAL, ELECTRICAL, AND PLUMBING CONTRACTORS AND
SUBCONTRACTORS MUST MEET THE APPRENTICESHIP UTILIZATION
REQUIREMENTS OF SECTION
24-92-115; EXCEPT THAT THE APPRENTICESHIP
UTILIZATION REQUIREMENTS DO NOT APPLY TO
:
(a) T
HE DESIGN, PLANNING, OR ENGINEERING OF INFRASTRUCTURE ;
(b) M
ANAGEMENT FUNCTIONS FOR THE OPERATION OF
INFRASTRUCTURE
; OR
(c) ANY WORK INCLUDED IN A WARRANTY .
(4) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
REQUIRES
:
(a) "A
GENCY OF GOVERNMENT " HAS THE MEANING SET FORTH IN
SECTION
24-92-201 (1).
(b) "L
ICENSED ELECTRICIAN" MEANS AN ELECTRICIAN LICENSED
PURSUANT TO SECTION
12-115-110.
(c) "L
ICENSED PLUMBER" MEANS A PLUMBER LICENSED PURSUANT
TO SECTION
12-155-108.
(d) "P
UBLIC PROJECT" HAS THE MEANING SET FORTH IN SECTION
24-92-201 (5).
(e) "S
TATE INSTITUTION OF HIGHER EDUCATION " HAS THE MEANING
SET FORTH IN SECTION
23-18-102 (10).
(f) "T
HERMAL ENERGY NETWORK " HAS THE MEANING SET FORTH IN
SECTION
40-3.2-108 (2)(s).
(g) "T
HERMAL ENERGY SYSTEM " HAS THE MEANING SET FORTH IN
SECTION
40-3.2-108 (2)(t).
SECTION 4. In Colorado Revised Statutes, 40-3.2-108, amend
(2)(c)(V); and add (2)(c)(V.5), (2)(h.5), (2)(r), (2)(s), (2)(t), and
(4)(c)(XIV.5) as follows:
PAGE 6-HOUSE BILL 23-1252 40-3.2-108. Clean heat targets - legislative declaration -
definitions - plans - rules - reports. (2) Definitions. As used in this
section, unless the context otherwise requires:
(c) "Clean heat resource" means any one or a combination of:
(V) Pyrolysis of tires if the pyrolysis meets a recovered methane
protocol; and
(V.5) THERMAL ENERGY; AND
(h.5) "GEOTHERMAL FLUID" HAS THE MEANING SET FORTH IN
SECTION
37-90.5-103 (2).
(r) (I) "T
HERMAL ENERGY" MEANS PIPED, NONCOMBUSTIBLE FLUIDS
USED FOR ADDING OR REMOVING HEAT FROM BUILDINGS FOR THE PURPOSE
OF EFFICIENT BUILDING TEMPERATURE CONTROL AND DOMESTIC HOT WATER
,
INCLUDING SPACE HEATING AND COOLING AND REFRIGERATION .
(II) "T
HERMAL ENERGY" INCLUDES METHODS OF EXCHANGING THE
PIPED
, NONCOMBUSTIBLE FLUIDS THROUGH THE GROUND , WASTEWATER
TREATMENT FACILITIES
, OR OTHER SOURCES THAT ACHIEVE DESIRED FLUID
TEMPERATURES
; EXCEPT THAT ANY SOURCE OF THERMAL ENERGY FOR THIS
PURPOSE MUST
:
(A) N
OT CAUSE INCREMENTAL GREENHOUSE GAS EMISSIONS OR RELY
ON INCREASED
, LONG-TERM COMBUSTION OF FOSSIL FUELS; AND
(B) BE EVALUATED BY THE COMMISSION TO PROTECT AGAINST
INCREASED EMISSIONS OF HARMFUL CO
-POLLUTANTS, NEGATIVE IMPACTS TO
COMMUNITIES INCLUDING TO DISPROPORTIONATELY IMPACTED
COMMUNITIES
, AS DEFINED IN SECTION 24-4-109 (2)(b)(II), AND THE RISK OF
STRANDED ASSETS
, IF THE THERMAL ENERGY IS FROM ANY INDUSTRIAL
SOURCE INCLUDING A SYSTEM FOR WHICH THE PRIMARY PURPOSE IS TO
GENERATE ELECTRICITY
, INCLUDING ANY PROCESS INVOLVING
ENGINE
-DRIVEN GENERATION.
(s) "T
HERMAL ENERGY NETWORK ":
(I) M
EANS ALL REAL ESTATE, FIXTURES, AND PERSONAL PROPERTY
PAGE 7-HOUSE BILL 23-1252 THAT ARE OPERATED, OWNED, USED, OR INTENDED TO BE USED FOR , IN
CONNECTION WITH
, OR TO FACILITATE A DISTRIBUTION INFRASTRUCTURE
PROJECT THAT SUPPLIES THERMAL ENERGY TO TWO OR MORE BUILDINGS
THAT ARE NOT A CAMPUS
, AS DEFINED IN SECTION 40-4-121 (1)(a), AND
THAT ASSISTS IN REDUCING GREENHOUSE GAS EMISSIONS IN THE STATE
;
(II) C
ONSISTS OF PIPE LOOPS BETWEEN MULTIPLE BUILDINGS AND
ENERGY SOURCES CARRYING PIPED
, NONCOMBUSTIBLE FLUIDS AT THE
DESIRED THERMAL TEMPERATURE
;
(III) I
NCLUDES A NETWORK THAT CAN BE USED FOR HEATING ,
COOLING, AND OTHER BUILDING SERVICES; AND
(IV) MAY ALSO BE KNOWN AS A GEOTHERMAL EXCHANGE DISTRICT ,
NETWORKED GEOTHERMAL SYSTEM , GEOEXCHANGE SYSTEM , GEOGRID
SYSTEM
, COMMUNITY GEOTHERMAL HEATING AND COOLING DISTRICT , OR A
GEOTHERMAL HEATING DISTRICT
.
(t) "T
HERMAL ENERGY SYSTEM " INCLUDES A GEOTHERMAL SYSTEM
OR OTHER METHOD OF EXCHANGING THE PIPED
, NONCOMBUSTIBLE FLUIDS
THROUGH THE GROUND
, WASTEWATER TREATMENT FACILITIES , OR OTHER
SOURCES OF THERMAL ENERGY THAT ACHIEVE DESIRED FLUID
TEMPERATURES
.
(4) Submission of clean heat plans. (c) A clean heat plan filed
pursuant to this subsection (4) must:
(XIV.5) D
EMONSTRATE THAT, WITH RESPECT TO ANY THERMAL
ENERGY NETWORK THAT WILL BE USED AS A CLEAN HEAT RESOURCE
, ANY
GEOTHERMAL FLUID ASSOCIATED WITH THE THERMAL ENERGY SYSTEM OR
THERMAL ENERGY NETWORK IS USED IN COMPLIANCE WITH THE PERMITTING
REQUIREMENTS FOR PRODUCTION OF GEOTHERMAL FLUID SET FORTH IN
ARTICLE
90.5 OF TITLE 37; AND
SECTION 5. In Colorado Revised Statutes, add 40-4-121 as
follows:
40-4-121. Thermal energy network projects - pilot program for
large gas utilities - application - commission proceeding - reporting -
exemption from regulation for local government - or campus-owned
PAGE 8-HOUSE BILL 23-1252 thermal energy networks - definitions. (1) A S USED IN THIS SECTION,
UNLESS THE CONTEXT OTHERWISE REQUIRES :
(a) (I) "C
AMPUS" MEANS A COLLECTION OF TWO OR MORE BUILDINGS
THAT ARE OWNED AND OPERATED BY THE SAME PERSON
, THAT HAVE A
SHARED PURPOSE AND FUNCTION AS A SINGLE PROPERTY
, THAT DO NOT
LEASE SPACE TO TENANTS
, AND THAT DO NOT PROVIDE ENERGY OR HEAT
SERVICES FOR A FEE
.
(II) "C
AMPUS" INCLUDES TWO OR MORE OF THE BUILDINGS THAT
COMPRISE THE CAPITOL COMPLEX
, AS DEFINED IN SECTION 24-82-101 (3)(f).
(b) "D
ISPROPORTIONATELY IMPACTED COMMUNITY " HAS THE
MEANING SET FORTH IN SECTION
24-4-109 (2)(b)(II).
(c) "G
AS UTILITY" MEANS A GAS UTILITY IN THE STATE THAT THE
COMMISSION REGULATES WITH RESPECT TO RATES AND CHARGES
.
(d) "L
ARGE GAS UTILITY" MEANS A GAS UTILITY THAT SERVES MORE
THAN FIVE HUNDRED THOUSAND CUSTOMERS
.
(e) "L
OCAL GOVERNMENT " MEANS A STATUTORY OR HOME -RULE
CITY
, TOWN, COUNTY, OR CITY AND COUNTY.
(f) "T
HERMAL ENERGY" HAS THE MEANING SET FORTH IN SECTION
40-3.2-108 (2)(r).
(g) "T
HERMAL ENERGY NETWORK " HAS THE MEANING SET FORTH IN
SECTION
40-3.2-108 (2)(s).
(h) "T
HERMAL ENERGY SYSTEM " HAS THE MEANING SET FORTH IN
SECTION
40-3.2-108 (2)(t).
(2) (a) E
XCEPT AS PROVIDED IN SUBSECTION (3) OF THIS SECTION, A
GAS UTILITY THAT SEEKS TO OFFER THERMAL ENERGY NETWORK SERVICE TO
ITS CUSTOMERS MUST PROPOSE DEVELOPING A THERMAL ENERGY NETWORK
BY A SEPARATE APPLICATION TO THE COMMISSION THAT IS NOT INCLUDED IN
THE GAS UTILITY
'S APPLICATION TO THE COMMISSION FOR APPROVAL OF A
CLEAN HEAT PLAN PURSUANT TO SECTION
40-3.2-108 OR A GAS
DEMAND
-SIDE MANAGEMENT PROGRAM PLAN PURSUANT TO SECTION
PAGE 9-HOUSE BILL 23-1252 40-3.2-103 (3) OR AS PART OF A DSM STRATEGIC ISSUES APPLICATION
PURSUANT TO SECTION
40-3.2-103 (1).
(b) I
N CONSIDERING WHETHER TO APPROVE A GAS UTILITY 'S
APPLICATION TO OFFER THERMAL ENERGY NETWORK SERVICE
, THE
COMMISSION SHALL CONSIDER THE LONG
-TERM EFFECTS THAT THE PROPOSED
THERMAL ENERGY NETWORK WOULD HAVE ON THE STATE
'S UTILITY
WORKFORCE
.
(3) (a) O
N OR BEFORE SEPTEMBER 1, 2024, A LARGE GAS UTILITY
SHALL SUBMIT TO THE COMMISSION FOR REVIEW AND APPROVAL AT LEAST
ONE PILOT PROGRAM
, CONSISTING OF ONE OR MORE PILOT PROJECTS , TO
PROVIDE THERMAL ENERGY SERVICE IN ITS SERVICE AREA
.
(b) A
LARGE GAS UTILITY MAY PROPOSE MORE THAN ONE PILOT
THERMAL ENERGY NETWORK PROGRAM PURSUANT TO THIS SUBSECTION
(3)
BY FILING SEPARATE APPLICATIONS FOR REVIEW AND APPROVAL OF
ADDITIONAL PILOT PROGRAMS WITH THE COMMISSION ON OR BEFORE
SEPTEMBER 1, 2026.
(c) I
N DEVELOPING A PILOT PROGRAM PROPOSAL , A LARGE GAS
UTILITY SHALL PROPOSE AS PART OF THE PROPOSED PILOT PROGRAM AT
LEAST ONE PILOT PROJECT THAT SERVES RESIDENTIAL CUSTOMERS LOCATED
IN A
:
(I) D
ISPROPORTIONATELY IMPACTED COMMUNITY ;
(II) M
OUNTAIN COMMUNITY SERVED BY THE LARGE GAS UTILITY ; OR
(III) UTILITY SERVICE AREA THAT THE COMMISSION HAS
DETERMINED IS CAPACITY CONSTRAINED OR THAT IS TARGETED FOR
ELECTRIFICATION IN A UTILITY CLEAN HEAT PLAN OR BENEFICIAL
ELECTRIFICATION PLAN
.
(d) A
LARGE GAS UTILITY'S PILOT THERMAL ENERGY NETWORK
PROGRAM PROPOSAL MUST
:
(I) I
NCLUDE SPECIFIC CUSTOMER PROTECTION PLANS THAT PROMOTE
STABLE UTILITY RATES
;
PAGE 10-HOUSE BILL 23-1252 (II) BE MADE PUBLICLY AVAILABLE ON THE COMMISSION 'S WEBSITE;
AND
(III) IF APPROVED, BE IMPLEMENTED IN COMPLIANCE WITH THE
LABOR STANDARDS SET FORTH IN SECTION
40-3.2-105.7.
(e) I
N CONSIDERING WHETHER TO APPROVE A LARGE GAS UTILITY 'S
APPLICATION PROPOSING A PILOT THERMAL ENERGY NETWORK PROGRAM
,
THE COMMISSION SHALL CONSIDER THE LONG -TERM EFFECTS THAT THE
PROPOSED PILOT THERMAL ENERGY NETWORK PROGRAM WOULD HAVE ON
THE STATE
'S UTILITY WORKFORCE.
(f) A
LARGE GAS UTILITY MAY PROPOSE A PILOT THERMAL ENERGY
NETWORK PROGRAM AS PART OF THE LARGE GAS UTILITY
'S APPLICATION FOR
APPROVAL OF A CLEAN HEAT PLAN PURSUANT TO SECTION
40-3.2-108 OR A
GAS
DSM PROGRAM PLAN PURSUANT TO SECTION 40-3.2-103 (3) OR AS PART
OF A STRATEGIC ISSUES APPLICATION
; EXCEPT THAT A PILOT THERMAL
ENERGY NETWORK PROGRAM APPLIED FOR AS PART OF A CLEAN HEAT PLAN
DOES NOT COUNT TOWARD THE CLEAN HEAT PLAN COST CAPS SET FORTH IN
SECTION
40-3.2-108 (6)(a)(I).
(g) I
N PROPOSING A PILOT THERMAL ENERGY NETWORK PROGRAM
PURSUANT TO THIS SUBSECTION
(3), A LARGE GAS UTILITY SHALL PRESENT
TO THE COMMISSION OPTIONS FOR HOW THE LARGE GAS UTILITY MAY FUND
THE PILOT PROGRAM
, INCLUDING OPTIONS THAT INVOLVE THE USE OF ANY
FEDERAL OR PRIVATE SOURCES OF FUNDING OR RATE RECOVERY FROM
NONRESIDENTIAL CUSTOMERS TO MANAGE IMPACTS UPON RESIDENTIAL
CUSTOMERS
. A PILOT THERMAL ENERGY NETWORK PROGRAM APPLICATION
MUST INCLUDE A CURRENT OR FORWARD
-LOOKING RATE STRUCTURE TO
PROMOTE STABLE CUSTOMER BILLING
.
(4) A
LARGE GAS UTILITY THAT DEVELOPS A PILOT THERMAL ENERGY
NETWORK PROGRAM SHALL REPORT TO THE COMMISSION IN THE FORM AND
MANNER REQUIRED BY THE COMMISSION INFORMATION AND DATA
REGARDING THE PILOT PROGRAM TO HELP FURTHER THE DEVELOPMENT OF
FUTURE THERMAL ENERGY NETWORKS
. THE LARGE GAS UTILITY'S REPORT
MUST INCLUDE
:
(a) T
HE POTENTIAL FOR IMPLEMENTATION OF THERMAL ENERGY
NETWORKS TO PROVIDE CONSUMER BILL STABILIZATION AND THE METHODS
PAGE 11-HOUSE BILL 23-1252 BY WHICH SUCH STABILIZATION MAY BE ACHIEVED ;
(b) T
HE POTENTIAL FOR IMPLEMENTATION OF THERMAL ENERGY
NETWORKS TO REDUCE CONSUMER BILL COSTS
;
(c) T
HE POTENTIAL TO REUSE EXISTING GAS INFRASTRUCTURE FOR ,
OR TO TIME END -OF-LIFE GAS INFRASTRUCTURE RETIREMENT OR
REPLACEMENT WITH
, IMPLEMENTATION OF THERMAL ENERGY NETWORKS ;
(d) T
HE POTENTIAL FOR IMPLEMENTATION OF THERMAL ENERGY
NETWORKS TO ASSIST THE LARGE GAS UTILITY IN AVOIDING STRANDED GAS
ASSETS
;
(e) A
N ESTIMATE OF AVOIDED EMISSIONS FROM IMPLEMENTATION OF
THERMAL ENERGY NETWORKS
; AND
(f) PROGRAMS, INCENTIVES, OR OTHER MECHANISMS THAT THE
LARGE GAS UTILITY MAY EMPLOY TO MAKE WIDESPREAD THERMAL ENERGY
NETWORK IMPLEMENTATION A VIABLE OPTION
.
(5) (a) O
N OR BEFORE JANUARY 1, 2025, THE COMMISSION SHALL
INITIATE A PROCEEDING TO DETERMINE WHETHER COMMISSION
RULE
-MAKING OR ADDITIONAL LEGISLATIVE CHANGES ARE NEEDED TO
FACILITATE THE DEVELOPMENT OF THERMAL ENERGY IN THE STATE
.
(b) (I) A
S PART OF THE PROCEEDING HELD PURSUANT TO THIS
SUBSECTION
(5), THE COMMISSION SHALL CONSIDER:
(A) T
HE APPROPRIATE UTILITY OWNERSHIP MODELS FOR
DEVELOPMENT
, ACQUISITION, CUSTOMER SERVICE, AND COST RECOVERY FOR
THERMAL ENERGY NETWORKS
; AND
(B) THE APPROPRIATE UTILITY RATE STRUCTURES FOR AND
CUSTOMER TYPES OR CLASSES SERVED BY THERMAL ENERGY NETWORKS
.
(II) T
HE COMMISSION MAY ALSO CONSIDER DURING THE PROCEEDING
WHETHER RULES ARE NECESSARY TO
:
(A) C
REATE REQUIREMENTS FOR GAS -UTILITY-OWNED THERMAL
ENERGY NETWORKS CONCERNING A LARGE GAS UTILITY
'S ABILITY TO
PAGE 12-HOUSE BILL 23-1252 PARTNER WITH QUALIFIED THIRD PARTIES THR OUGH JOINT VENTURES , ASSET
DEVELOPMENT AND TRANSFERS
, OR SIMILAR STRUCTURES AND FACILITATE
THE DEVELOPMENT OF THERMAL ENERGY NETWORKS
;
(B) E
NSURE THAT ANY THERMAL ENERGY NETWORK INCORPORATED
INTO A LARGE GAS UTILITY
'S SYSTEM PROVIDES RELIABLE AND RESILIENT
SERVICE
;
(C) P
ROMOTE TRAINING AND TRANSITION OF UTILITY WORKERS FOR
THERMAL ENERGY JOBS
;
(D) A
DJUST A LARGE GAS UTILITY'S RATE RECOVERY MECHANISMS
TO FURTHER SUPPORT THE DEVELOPMENT OF THERMAL ENERGY NETWORKS
AS PART OF MEETING THE STATE
'S OVERALL ENERGY POLICY OBJECTIVES ;
AND
(E) DETERMINE APPROPRIATE METHODS OF COST RECOVERY FOR
THERMAL ENERGY NETWORKS
, INCLUDING CONSIDERATION OF THE
STABILITY OF UTILITY CUSTOMERS
' BILLS.
(6) A
LOCAL GOVERNMENT OR CAMPUS THAT DEVELOPS AND
OPERATES A THERMAL ENERGY SYSTEM THAT PROVIDES THERMAL ENERGY
SERVICE TO BUILDINGS THAT THE LOCAL GOVERNMENT OR CAMPUS OWNS
AND MANAGES IS NOT CONSIDERED A PUBLIC UTILITY AND IS NOT SUBJECT TO
REGULATION BY THE COMMISSION
.
SECTION 6. In Colorado Revised Statutes, repeal article 40 of title
40.
SECTION 7. In Colorado Revised Statutes, 30-20-603, amend
(1)(a) as follows:
30-20-603. Improvements and funding authorized - how
instituted - conditions - definitions. (1) (a) (I) A district may be formed
in accordance with the requirements of this part 6 for the purpose of
constructing, installing, acquiring, or funding, in whole or in part, any
public improvement, so long as the county that forms the district is
authorized to provide such improvement or provide for such funding under
the county's home rule charter, if any, or the laws of this state. Public
improvements or the funding thereof shall
OF PUBLIC IMPROVEMENTS MUST
PAGE 13-HOUSE BILL 23-1252 not include any facility identified in section 30-20-101 (8) or (9). No such
A district shall NOT provide the same improvement as an existing special
district within the territory of such THE existing special district unless the
existing special district consents.
(II) The improvements authorized by this part 6 may consist, without
limitation, of constructing, grading, paving, pouring, curbing, guttering,
lining, or otherwise improving the whole or any part of any street or
providing street lighting, drainage facilities, or service improvements in the
unincorporated area of a county or wholly or partly within the boundaries
of any municipality within the county if such municipality consents by
ordinance to such
THE improvements. If improvements within a
municipality are so included in a county improvement district by municipal
consent, the county shall have full authority to MAY construct or acquire
such improvements, to assess property within such THE municipality
benefited by such THE improvements, and to enforce and collect such
assessments, in the manner provided in this part 6. The improvements
authorized by this part 6 may include, without limitation, the construction
of sidewalks adjacent to any such streets or maintenance roads adjacent to
any such drainage facilities.
(III) Prior to the establishment of any improvement district for the
purpose of providing street lighting, arrangements, by contract or otherwise,
must be established under which the owners of property included within
such
THE district shall be ARE responsible for the maintenance and operation
of such street lighting improvement. The costs of maintenance and
operation of such
THE street lighting improvements shall not be paid from
the county general fund.
(IV) Drainage facilities shall not be provided in any area which
THAT is within an existing drainage district organized or created pursuant
to law without the approval of such THE district.
(V) The term AS USED IN THIS SUBSECTION (1)(a), "service" as used
in this paragraph (a) includes the services provided by a public utility as
defined in section 40-1-103, C.R.S., as well as advanced service as defined
in section 29-27-102 (1), C.R.S., cable television service as defined in
section 29-27-102 (2), C.R.S., telecommunications service as defined in
section 40-15-102 (29), C.R.S., geothermal heat suppliers, as defined in
section 40-40-103, C.R.S., and information service as defined in 47 U.S.C.
PAGE 14-HOUSE BILL 23-1252 sec. 153 (20) (24), or any successor section.
SECTION 8. 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 15-HOUSE BILL 23-1252 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 16-HOUSE BILL 23-1252