First Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 23-0894.01 Sarah Lozano x3858
HOUSE BILL 23-1281
House Committees Senate Committees
Energy & Environment
Finance
Appropriations
A BILL FOR AN ACT
C
ONCERNING MEASURES TO ADVANCE THE USE OF CLEAN HYDROGEN101
IN THE
STATE, AND, IN CONNECTION THEREWITH, MAKING AN102
APPROPRIATION.103
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 defines clean hydrogen (clean hydrogen) as
hydrogen that is:
! Derived from a clean energy resource that uses water as the
source of hydrogen; or
! Produced through a process that results in lifecycle
HOUSE
3rd Reading Unamended
May 1, 2023
HOUSE
Amended 2nd Reading
April 29, 2023
HOUSE SPONSORSHIP
Titone and Vigil, Amabile, Bird, Boesenecker, Dickson, Froelich, Herod, Jodeh, Joseph,
Kipp, Lindsay, Mauro, McCluskie, McCormick, Michaelson Jenet, Sharbini, Snyder, Story,
Valdez, Weinberg, Woodrow
SENATE SPONSORSHIP
Cutter and Priola,
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. greenhouse gas emissions rates that are less than 1.5
kilograms of carbon dioxide equivalent per kilogram of
hydrogen, as set forth in applicable federal law.
Section 2 also directs the public utilities commission (commission)
to establish a stand-alone application, review, and approval process for
investor-owned utility projects that result in the production of clean
hydrogen (clean hydrogen project). For a clean hydrogen project to be
approved by the commission, an investor-owned utility must submit an
application to the commission demonstrating that the clean hydrogen
project involves collaboration between the investor-owned utility and a
state or federal agency. Any application for a clean hydrogen project must
include:
! Best practices utilized by the investor-owned utility to
reduce air emissions and environmental impacts, conduct
leak detection monitoring, and increase public safety;
! If the investor-owned utility's clean hydrogen production
facilities are located in a disproportionately impacted
community, a cumulative impact analysis that evaluates
past, present, and future impacts; and
! An assessment of the annual volume of water used in
electrolysis of water to produce clean hydrogen for the
clean hydrogen project.
Section 2 also requires the commission to allow an investor-owned
utility to sell clean hydrogen to third parties under a clean hydrogen tariff.
For income tax years commencing on or after January 1, 2024, but
before January 1, 2033, section 3 creates a state income tax credit in
specified amounts per kilogram of clean hydrogen used for industrial
operations, for operating a heavy-duty vehicle, or for aviation (tax credit).
Any taxpayer seeking to claim the tax credit must first apply for and
receive a tax credit certificate from the Colorado energy office.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
finds and declares that:3
(a) In 2019, Colorado adopted the following goals for the4
statewide reduction of greenhouse gas pollution from a 2005 baseline:5
(I) Reducing greenhouse gas pollution by more than twenty-six6
percent by 2025;7
(II) Reducing greenhouse gas pollution by more than fifty percent8
1281-2- by 2030; and1
(III) Reducing greenhouse gas pollution by more than ninety2
percent by 2050;3
(b) The Colorado Greenhouse Gas Pollution Reduction Roadmap,4
published by the Colorado energy office and dated January 14, 2021,5
recognizes that:6
(I) Achieving the state's greenhouse gas pollution reduction goals7
from 2030 to 2050 will require further technical innovation and8
economies of scale to bring costs down for deployment of innovative9
technologies both for emission reductions of end uses and to generate10
energy through innovative methods such as clean hydrogen; and11
(II) Clean hydrogen may be an important resource to lower12
greenhouse gas emissions from sectors that are harder to decarbonize,13
such as heavy-duty transportation and heavy industry;14
(c) The federal government enacted the "Inflation Reduction Act15
of 2022", Pub.L. 117-169, which recognizes the importance of clean16
energy production in the fight against climate change and creates17
important incentives that make investments in clean hydrogen more18
affordable and attainable;19
(d) To support diversification of the state's energy production and20
create well-paid clean energy jobs, Colorado has joined three other21
regional states in a partnership to pursue funding from the United States22
department of energy for a regional hydrogen hub; 23
(e) As Colorado diversifies and decarbonizes its energy economy24
with clean energy sources, clean hydrogen may play an important role in25
the resilience of the state's electric grid and for dispatchable electricity26
generation that complements the use of wind and solar resources, while27
1281
-3- also helping achieve Governor Polis's goal of one hundred percent1
renewable electricity generation in the state by 2040; and2
(f) The inclusion of clean hydrogen as an element in3
decarbonization pathways should include comprehensive assessments of4
clean hydrogen in comparison to alternatives, including consideration of5
life cycle emissions, costs, impacts on communities, including6
disproportionately impacted communities, and environmental impacts on7
water, air, land, and biodiversity.8
(2) The general assembly therefore declares that state law should:9
(a) Provide for various methods to advance the use of clean10
hydrogen in the state;11
(b) Allow for agencies of the state and users of clean hydrogen in12
the state to coordinate with each other to take advantage of available13
federal funding and tax credits; and14
(c) Ensure that the use of clean hydrogen in the state is in15
alignment with the state's greenhouse gas emission reduction and16
environmental justice goals.17
SECTION 2. In Colorado Revised Statutes, add 40-2-138 as18
follows:19
40-2-138. Projects for the production of clean hydrogen20
- proceeding - hydrogen hub projects - rules - definitions. (1) AS USED21
IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :22
(a) "CLEAN HYDROGEN" MEANS:23
(I) GREEN HYDROGEN, AS DEFINED IN SECTION 40-3.2-108 (2)(j);24
OR25
(II) HYDROGEN THAT IS PRODUCED THROUGH A PROCESS THAT26
RESULTS IN LIFECYCLE GREENHOUSE GAS EMISSIONS RATES THAT ARE27
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-4- WITHIN THE LIFECYCLE GREENHOUSE GAS EMISSIONS RATE RANGES SET1
FORTH IN 26 U.S.C. SECS. 45V (b)(2)(C) AND 45V (b)(2)(D), AS2
AMENDED.3
(b) (I) "CLEAN HYDROGEN PROJECT" MEANS A PROJECT THAT4
RESULTS IN THE PRODUCTION OF CLEAN HYDROGEN BY AN5
INVESTOR-OWNED UTILITY.6
(II) "CLEAN HYDROGEN PROJECT " MAY INCLUDE PIPELINES,7
ELECTROLYZERS, ENVIRONMENTAL CONTROLS, MONITORING EQUIPMENT,8
DEDICATED RENEWABLE ENERGY SOURCES FOR ELECTROLYSIS , THE9
PURCHASE OF CLEAN HYDROGEN FROM THIRD PARTIES, AND AN UPGRADE10
TO A TURBINE AT AN ELECTRIC GENERATING STATION IF THAT UPGRADE IS11
PART OF A STATE OR FEDERAL APPLICATION FOR A REGIONAL CLEAN12
HYDROGEN HUB UNDER 42 U.S.C. 16161a.13
"(c) "CUMULATIVE IMPACTS" MEANS THE INCREMENTAL EFFECTS14
OF A CLEAN HYDROGEN PROJECT ON THE ENVIRONMENT , INCLUDING15
EFFECTS ON AIR QUALITY, WATER QUALITY, WATER RESOURCE16
AVAILABILITY, CLIMATE, AND PUBLIC HEALTH, THAT A CLEAN HYDROGEN17
PROJECT HAS WHEN ADDED TO THE IMPACTS FROM OTHER PAST, PRESENT,18
AND REASONABLY FORESEEABLE FUTURE DEVELOPMENT OF ANY TYPE ON19
THE RELEVANT AREA, INCLUDING AN AIRSHED OR WATERSHED , AS20
DETERMINED BY RULE BY THE COMMISSION , OR ON A21
DISPROPORTIONATELY IMPACTED COMMUNITY .22
(d) "DISPROPORTIONATELY IMPACTED COMMUNITY" HAS THE23
MEANING SET FORTH IN SECTION 24-4-109 (2)(b)(II).24
(e) (I) "HARD TO DECARBONIZE END USE" MEANS INDUSTRIAL USES25
THAT INCLUDE:26
(A) THE GENERATION OF HEAT OF AT LEAST ONE HUNDRED FIFTY27
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-5- DEGREES CELSIUS FOR INDUSTRIAL PURPOSES; AND1
(B) ADDITION AS FEEDSTOCK FOR INDUSTRIAL PURPOSES,2
INCLUDING MANUFACTURE OF STEEL, AMMONIA, FERTILIZER, AND3
CHEMICALS.4
(II) "HARD TO DECARBONIZE END USE" DOES NOT INCLUDE THE5
DIRECT USE OF HYDROGEN FOR RESIDENTIAL OR COMMERCIAL HEATING .6
(f) "HYDROGEN HUB PROJECT" MEANS A PROJECT THAT IS PART OF7
AN APPLICATION FOR FEDERAL FUNDING BY A PARTNERSHIP OF REGULATED8
UTILITIES, PRIVATE PARTNERS, AND COMPANIES AND MAY INCLUDE STATE9
OR FEDERAL GOVERNMENT AGENCIES IN COLLABORATION WITH OTHER10
STATES THAT IS DESIGNED TO UTILIZE AVAILABLE FEDERAL FUNDS AND11
TAX CREDITS, WHICH MAY INCLUDE THE PRODUCTION, TRANSPORT, AND12
USE OF CLEAN HYDROGEN.13
(g) "LIFECYCLE GREENHOUSE GAS EMISSIONS RATE " MEANS14
LIFECYCLE GREENHOUSE GAS EMISSIONS, AS DEFINED IN 26 U.S.C. SEC.15
45V (c)(1)(A), AS AMENDED, MEASURED IN ACCORDANCE WITH ANY16
APPLICABLE FEDERAL INTERNAL REVENUE SERVICE REGULATIONS OR17
GUIDANCE.18
(h) "OFFICE" MEANS THE COLORADO ENERGY OFFICE CREATED IN19
SECTION 24-38.5-101.20
(i) "QUALIFIED USE" MEANS THE USE OF CLEAN HYDROGEN IN THE21
STATE FOR:22
(I) HARD TO DECARBONIZE END USES;23
(II) THE OPERATION OF A HEAVY-DUTY MOTOR VEHICLE, AS24
DEFINED IN SECTION 25-7.5-102 (11); AND25
(III) AVIATION.26
(2) THE COMMISSION SHALL INITIATE AN INVESTIGATORY27
1281
-6- PROCEEDING, NO LATER THAN SEPTEMBER 1, 2023, TO CONSIDER:1
(a) THE POTENTIAL FOR CLEAN HYDROGEN PROJECTS OPERATED BY2
INVESTOR-OWNED UTILITIES SUBJECT TO REGULATION BY THE COMMISSION3
TO CONTRIBUTE TO MEETING THE GREENHOUSE GAS EMISSION REDUCTION4
GOALS DESCRIBED IN SECTION 25-7-102 (2)(g), INCLUDING LIFECYCLE5
GREENHOUSE GAS EMISSIONS RATES, WITH A PREFERENCE FOR QUALIFIED6
USES;7
(b) THE IMPACT OF CLEAN HYDROGEN PROJECTS ON THE EMISSION8
OF AIR POLLUTANTS OTHER THAN GREENHOUSE GASES AND HUMAN9
HEALTH;10
(c) POTENTIAL MARKETS FOR CLEAN HYDROGEN IN COLORADO;11
(d) THE IMPACT OF CLEAN HYDROGEN PRODUCTION ON WATER12
QUALITY AND QUANTITY IN COLORADO;13
(e) THE POTENTIAL IMPACTS OF PIPELINE LEAKAGE AND BEST14
PRACTICES FOR MITIGATION;15
(f) THE POTENTIAL FOR THE DEVELOPMENT OF CLEAN HYDROGEN16
TO HELP CREATE OR SUSTAIN JOBS IN COLORADO, INCLUDING UTILITY17
JOBS;18
(g) THE COST, CAPABILITIES, AND MARKET AVAILABILITY OF19
CLEAN HYDROGEN TECHNOLOGIES , INCLUDING PIPELINE INVESTMENTS;20
(h) THE APPROPRIATE ROLES FOR INVESTOR-OWNED UTILITIES IN21
THE PRODUCTION, SALE, OR USE OF CLEAN HYDROGEN, INCLUDING22
CONSIDERING WHETHER COSTS MAY BE RECOVERED FROM RATEPAYERS ;23
(i) THE POTENTIAL IMPACT OF INVESTOR-OWNED UTILITY24
INVESTMENTS IN A CLEAN HYDROGEN PROJECT ON RATEPAYERS,25
INCLUDING ON BILLS, RATES, AND RATE STABILITY, AND OPTIONS FOR26
AVOIDING POTENTIAL CROSS-SUBSIDIZATION AND COST SHIFTING ACROSS27
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-7- RATE CLASSES;1
(j) PRINCIPLES AND REQUIREMENTS FOR ANY TARIFFS FOR THE2
SALE OF CLEAN HYDROGEN TO THIRD PARTIES, INCLUDING PRINCIPLES AND3
REQUIREMENTS TO ENSURE THAT COSTS ARISING FROM THE DEVELOPMENT ,4
PRODUCTION, TRANSPORT, AND DELIVERY OF THE CLEAN HYDROGEN5
UNDER THOSE TARIFFS ARE NOT BORNE BY CUSTOMERS WHO DO NOT TAKE6
SERVICE FROM THOSE TARIFFS;7
(k) THE PROCESS AND DATA NECESSARY AND AVAILABLE TO8
IMPLEMENT A REQUIREMENT FOR THE ADOPTION OF METHODS FOR :9
(I) THE MEASUREMENT OF LIFECYCLE GREENHOUSE GAS EMISSIONS10
RATES, INCLUDING FOR HOURLY MATCHING OF ELECTRICITY USED ;11
(II) THE TRACKING OF THE DEPLOYMENT OF NEW RENEWABLE12
ENERGY RESOURCES OR USE OF CURTAILED RENEWABLE ENERGY TO MEET13
ELECTRICITY REQUIREMENTS FOR PRODUCTION OF CLEAN HYDROGEN IN14
THE SAME LOAD BALANCING AREA ; AND15
(III) THE COMMISSION TO DETERMINE WHEN AT LEAST TWO16
HUNDRED MEGAWATTS OF ELECTROLYZERS ARE OPERATIONAL IN THE17
STATE;18
(l) THE PROCESS AND DATA NECESSARY FOR AN INVESTOR-OWNED19
UTILITY TO CONDUCT A CUMULATIVE IMPACT ANALYSIS OF A CLEAN20
HYDROGEN PROJECT AND ANY PROCESS NECESSARY TO AVOID ADVERSE21
CUMULATIVE IMPACTS ON DISPROPORTIONATELY IMPACTED COMMUNITIES ,22
IF ANY, WHICH MAY INCLUDE THE COMMISSION CONSIDERING :23
(I) THE TIME FRAME OVER WHICH A CUMULATIVE IMPACT24
ANALYSIS SHOULD BE CONDUCTED ;25
(II) THE GEOGRAPHICAL SCOPE OF A CUMULATIVE IMPACT26
ANALYSIS; AND27
1281
-8- (III) WHETHER THE CUMULATIVE IMPACT ANALYSIS SHOULD BE1
COMPARED TO ALTERNATIVE PROJECTS ;2
(m) REQUIREMENTS FOR ANY APPLICATION FOR A CLEAN3
HYDROGEN PROJECT, IN ADDITION TO THE REQUIREMENTS DESCRIBED IN4
SUBSECTION (3)(a)(VI) OF THIS SECTION AND SUBJECT TO SUBSECTIONS (4)5
AND (5) OF THIS SECTION;6
(n) ANY DATA OR INFORMATION NECESSARY OR AVAILABLE TO7
EVALUATE A CLEAN HYDROGEN PROJECT AGAINST ALTERNATIVE8
PROJECTS, INCLUDING HOW TO MEASURE, TRACK, AND REPORT LIFECYCLE9
GREENHOUSE GAS EMISSIONS RATES, CUMULATIVE IMPACTS, AND THE10
CUMULATIVE IMPACTS AND INDIVIDUAL IMPACTS ON JOBS , LOCAL11
ECONOMIC BENEFITS, AND WATER USE BY CLEAN HYDROGEN PROJECTS12
UNDER THE COMMISSION'S JURISDICTION;13
(o) OPPORTUNITIES TO ENCOURAGE NON-UTILITY PRODUCTION OF14
CLEAN HYDROGEN IN COLORADO, INCLUDING OPPORTUNITIES FOR AN15
INVESTOR-OWNED UTILITY TO PROPOSE A TARIFF FOR THE SALE OF16
RENEWABLE ENERGY THAT WOULD OTHERWISE BE CURTAILED ; AND17
(p) ANY OTHER RELEVANT ISSUES THAT THE COMMISSION18
DETERMINES ARE NECESSARY TO CONSIDER .19
(3) (a) NO LATER THAN DECEMBER 1, 2024, UNLESS THE OFFICE20
FILES A NOTICE WITH THE COMMISSION STATING THAT THE FEDERAL21
DEPARTMENT OF ENERGY HAS EXTENDED OR OTHERWISE ALTERED THE22
DEADLINE REGARDING FUNDING FOR A HYDROGEN HUB PROJECT, THE23
COMMISSION SHALL ADOPT RULES THAT :24
(I) UNLESS THE COMMISSION DETERMINES THAT INVESTOR-OWNED25
UTILITIES SHOULD NOT DEVELOP CLEAN HYDROGEN PROJECTS FOR COST26
RECOVERY FROM RATEPAYERS, ESTABLISH REQUIREMENTS FOR THE27
1281
-9- PRESENTATION OF A CLEAN HYDROGEN PROJECT TO THE COMMISSION FOR1
THE COMMISSION'S APPROVAL;2
(II) ESTABLISH REQUIREMENTS FOR LIFECYCLE GREENHOUSE GAS3
EMISSIONS RATE ACCOUNTING FOR CLEAN HYDROGEN PROJECTS ;4
(III) ADDRESS THE APPROPRIATE ROLE OF INVESTOR-OWNED5
UTILITIES IN THE PRODUCTION, SALE, AND USE OF CLEAN HYDROGEN ,6
INCLUDING WHETHER AND HOW COSTS MAY BE RECOVERED FROM7
RATEPAYERS AND APPROPRIATE TREATMENT OF REVENUES FROM CLEAN8
HYDROGEN SALES;9
(IV) ADDRESS HOW INVESTOR-OWNED UTILITIES MAY USE10
COMPETITIVE SOLICITATIONS IN A CLEAN HYDROGEN PROJECT AND ANY11
LIMITATIONS FOR THE USE OF COMPETITIVE SOLICITATIONS TO DEVELOP12
THE CLEAN HYDROGEN PROJECT ;13
(V) ESTABLISH A REQUIREMENT THAT ANY PLANNED OR14
POTENTIAL USE FOR THE CLEAN HYDROGEN IN BUILDINGS OR GAS15
DISTRIBUTION SYSTEMS OF AN INVESTOR-OWNED UTILITY BE PROPOSED TO16
AND APPROVED BY THE COMMISSION THROUGH A CLEAN HEAT PLAN , AS17
DEFINED IN SECTION 40-3.2-108 (2)(b); AND18
(VI) ADDRESS WHAT IS REQUIRED IN AN APPLICATION BY AN19
INVESTOR-OWNED UTILITY FOR A CLEAN HYDROGEN PROJECT, SUBJECT TO20
SUBSECTIONS (4) AND (5) OF THIS SECTION, INCLUDING:21
(A) A COMPARISON OF A CLEAN HYDROGEN PROJECT TO22
ALTERNATIVE PROJECTS, INCLUDING AN ANALYSIS OF THE COSTS AND23
BENEFITS OF THE CLEAN HYDROGEN PROJECT COMPARED TO ALTERNATIVE24
PROJECTS;25
(B) A DESCRIPTION OF HOW THE INVESTOR-OWNED UTILITY WILL26
MEASURE AND TRACK THE ANNUAL AND CUMULATIVE LIFECYCLE27
1281
-10- GREENHOUSE GAS EMISSIONS RATES AND THE EMISSION OF OTHER AIR1
POLLUTANTS IN ACCORDANCE WITH THE RULES ADOPTED PURSUANT TO2
SUBSECTION (3)(a)(II) OF THIS SECTION;3
(C) A DESCRIPTION OF HOW THE INVESTOR-OWNED UTILITY WILL:4
MINIMIZE THE LIFECYCLE GREENHOUSE GAS EMISSIONS RATES OF THE5
CLEAN HYDROGEN PROJECT; CONDUCT LEAK DETECTION THROUGHOUT THE6
LIFE OF THE CLEAN HYDROGEN PROJECT; AND CONDUCT A CUMULATIVE7
IMPACT ANALYSIS OF THE CLEAN HYDROGEN PROJECT ;8
(D) AN ASSESSMENT OF THE ANNUAL WATER VOLUME THAT WILL9
BE USED IN THE CLEAN HYDROGEN PROJECT, INCLUDING THE SOURCE OF10
WATER TO BE USED;11
(E) A DESCRIPTION OF ANY PLANNED USES, INCLUDING POTENTIAL12
END USES BY THE INVESTOR-OWNED UTILITY'S CUSTOMERS, OF THE CLEAN13
HYDROGEN PRODUCED THROUGH THE CLEAN HYDROGEN PROJECT, WITH A14
PREFERENCE FOR QUALIFIED USES;15
(F) A DESCRIPTION OF ANY PLANNED SALES OF CLEAN HYDROGEN16
TO NON-UTILITY CUSTOMERS, WITH A PREFERENCE FOR QUALIFIED USES;17
(G) A DESCRIPTION OF THE PROPOSED METHOD OF COST RECOVERY18
FOR THE CLEAN HYDROGEN PROJECT, INCLUDING INFORMATION19
REGARDING WHICH RATE CLASSES WILL COVER THE COSTS OF THE CLEAN20
HYDROGEN PROJECT;21
(H) A DESCRIPTION OF THE TOTAL REVENUE REQUIREMENT FOR22
THE CLEAN HYDROGEN PROJECT ;23
(I) A DESCRIPTION OF THE RATE AND BILL IMPACTS OF THE CLEAN24
HYDROGEN PROJECT;25
(J) A DESCRIPTION OF ANY TARIFFS FOR THE SALE OF CLEAN26
HYDROGEN PRODUCED BY THE CLEAN HYDROGEN PROJECT ;27
1281
-11- (K) A PROPOSAL FOR THE ALLOCATION OF REVENUES RECEIVED1
FROM THE SALE OF CLEAN HYDROGEN PRODUCED BY THE CLEAN2
HYDROGEN PROJECT TO NON-UTILITY CUSTOMERS AMONG CUSTOMERS3
AND THE INVESTOR-OWNED UTILITY, INCLUDING WHICH PARTY BEARS THE4
RISK THAT THE AMOUNT OF REVENUE ANTICIPATED FROM THE CLEAN5
HYDROGEN PROJECT IS NOT ULTIMATELY RECEIVED ;6
(L) A CUMULATIVE IMPACT ANALYSIS FRAMEWORK ; AND7
(M) IF THE INVESTOR-OWNED UTILITY PLANS TO USE A8
COMPETITIVE SOLICITATION PROCESS AS PART OF THE CLEAN HYDROGEN9
PROJECT, A DESCRIPTION OF HOW THE PLANNED COMPETITIVE10
SOLICITATION PROCESS WILL BE USED AND IN WHAT CIRCUMSTANCES THE11
PROCESS WILL BE USED.12
(b) (I) THE RULES ADOPTED BY THE COMMISSION PURSUANT TO13
SUBSECTION (3)(a)(II) OF THIS SECTION MUST INCLUDE REQUIREMENTS14
FOR:15
(A) THE MATCHING OF ELECTROLYZER ENERGY CONSUMPTION16
WITH ELECTRICITY PRODUCTION ON AN HOURLY BASIS , IF THE17
TECHNOLOGY IS AVAILABLE;18
(B) IDENTIFYING THE APPLICABLE ENERGY SOURCE , IF THE19
INVESTOR-OWNED UTILITY IS REPORTING THE ENERGY SOURCE AS20
RESULTING IN ZERO EMISSIONS FOR CLEAN HYDROGEN PRODUCTION AND21
DEMONSTRATING THAT THE ELECTRICITY USED TO PRODUCE CLEAN22
HYDROGEN COMES FROM RENEWABLE ENERGY THAT WOULD OTHERWISE23
HAVE BEEN CURTAILED OR NOT DELIVERED TO LOAD OR FROM NEW ZERO24
CARBON GENERATION THAT BEGAN PRODUCTION NO MORE THAN25
THIRTY-SIX MONTHS BEFORE THE START OF THE OPERATIONS OF THE26
ELECTROLYZER; AND27
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-12- (C) THE DELIVERABILITY OF RENEWABLE ENERGY USED BY THE1
ELECTROLYZER INTO THE SAME LOAD BALANCING AREA AS THE2
ELECTROLYZER.3
(II) THE COMMISSION SHALL MAKE THE RULES ADOPTED BY THE4
COMMISSION PURSUANT TO SUBSECTION (3)(a)(II) OF THIS SECTION5
EFFECTIVE NO LATER THAN JANUARY 1, 2028, OR NO LATER THAN ONE6
YEAR AFTER THE DEPLOYMENT OF HYDROGEN ELECTROLYZERS IN THE7
STATE EXCEEDS TWO HUNDRED MEGAWATTS , WHICHEVER IS EARLIER.8
(c) (I) IN DEVELOPING THE RULES PURSUANT TO SUBSECTION (3)(a)9
OF THIS SECTION, THE COMMISSION SHALL CONSIDER THE POTENTIAL FOR10
FEDERAL FUNDING FOR CLEAN HYDROGEN PROJECTS AND THAT CLEAN11
HYDROGEN PROJECTS IMPLEMENTED BY INVESTOR-OWNED UTILITIES MAY12
BE NECESSARY TO SECURE FEDERAL FUNDING .13
(II) IN DEVELOPING THE RULES PURSUANT TO SUBSECTION14
(3)(a)(II) OF THIS SECTION, THE COMMISSION SHALL CONSIDER WHAT15
INFORMATION AND MARKET MECHANISMS ARE NECESSARY AND16
AVAILABLE FOR HYDROGEN PRODUCERS TO COMPLY WITH THE RULES. IF17
THE FEDERAL INTERNAL REVENUE SERVICE ISSUES GUIDANCE THAT MEETS18
OR EXCEEDS THE RULES, THE COMMISSION SHALL ADOPT RULES THAT19
COMPLY WITH THE GUIDANCE .20
(d) IF THE OFFICE FILES THE NOTICE DESCRIBED IN SUBSECTION21
(3)(a) OF THIS SECTION WITH THE COMMISSION, THE COMMISSION SHALL22
COORDINATE WITH THE OFFICE TO DETERMINE AN APPROPRIATE DATE FOR23
THE ADOPTION OF THE RULES DESCRIBED IN SUBSECTION (3)(a) OF THIS24
SECTION.25
(4) (a) THE COMMISSION SHALL ALLOW AN INVESTOR-OWNED26
UTILITY TO PRESENT TO THE COMMISSION A STAND-ALONE APPLICATION27
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-13- FOR A CLEAN HYDROGEN PROJECT FOR WHICH AN INVESTOR-OWNED1
UTILITY HAS APPLIED FOR FEDERAL FUNDING AS PART OF A HYDROGEN HUB2
PROJECT AT ANY TIME BEFORE JUNE 1, 2024, UNLESS THE OFFICE FILES A3
NOTICE WITH THE COMMISSION STATING THAT THE FEDERAL DEPARTMENT4
OF ENERGY HAS EXTENDED OR OTHERWISE ALTERED THE DEADLINE5
REGARDING FUNDING FOR A HYDROGEN HUB PROJECT . THE APPLICATION6
MAY ONLY ADDRESS ELEMENTS OF A HYDROGEN HUB PROJECT THAT ARE7
NOT LOCATED IN THE DENVER METROPOLITAN AREA .8
(b) THE APPLICATION PROCESS DESCRIBED IN SUBSECTION (4)(a)9
OF THIS SECTION MUST BE CONSISTENT WITH THE REQUIREMENTS OF10
SUBSECTION (3) OF THIS SECTION. AN INVESTOR-OWNED UTILITY SEEKING11
APPROVAL OF A CLEAN HYDROGEN PROJECT PURSUANT TO SUBSECTION12
(4)(a) OF THIS SECTION SHALL ALSO DEMONSTRATE THAT A13
TIME-SENSITIVE REVIEW OF THE INVESTOR-OWNED UTILITY'S APPLICATION14
IS NECESSARY BASED ON THE TIMING REQUIREMENTS FOR OBTAINING15
NECESSARY FUNDING, NOT INCLUDING TAX CREDITS , FROM, OR A16
PARTNERSHIP WITH, A FEDERAL OR STATE AGENCY FOR THE ACQUISITION17
OF NECESSARY FACILITIES AND THAT THE FUNDING OR PARTNERSHIP18
CANNOT BE ACCOMPLISHED THROUGH ANY PENDING OR FUTURE ELECTRIC19
RESOURCE PLANNING PROCESS .20
(c) IF THE FUNDING OR PARTNERSHIP DESCRIBED IN SUBSECTION21
(4)(b) OF THIS SECTION, INCLUDING ANY ASSOCIATED CONTRACTS ,22
AWARDS, OR TIMING REQUIREMENTS, ALLOWS FOR COMPETITIVE23
SOLICITATIONS AS PART OF THE DEVELOPMENT OF THE CLEAN HYDROGEN24
PROJECT, THE COMMISSION MAY DIRECT THE INVESTOR-OWNED UTILITY TO25
ISSUE A SOLICITATION TO ACQUIRE THE NECESSARY PROJECTS OR26
FACILITIES FOR THE CLEAN HYDROGEN PROJECT. THE COMMISSION SHALL27
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-14- REVIEW ANY APPROVED COMPETITIVE SOLICITATION PROCESS AND BIDS1
RECEIVED PRIOR TO THE INVESTOR-OWNED UTILITY'S ACQUISITION OF THE2
NECESSARY FACILITIES FOR THE CLEAN HYDROGEN PROJECT . AN3
INVESTOR-OWNED UTILITY THAT FILED THE CLEAN HYDROGEN PROJECT4
APPLICATION PURSUANT TO SUBSECTION (4)(a) OF THIS SECTION MAY5
SUBMIT A BID IN RESPONSE TO A SOLICITATION PURSUANT TO THIS6
SUBSECTION (4)(c).7
(5) (a) IN REVIEWING, APPROVING, DENYING, OR AMENDING AN8
APPLICATION PURSUANT TO THIS SECTION, THE COMMISSION SHALL9
CONSIDER, AT A MINIMUM:10
(I) WHETHER IT IS IN THE PUBLIC INTEREST FOR AN11
INVESTOR-OWNED UTILITY TO INVEST IN THE ELEMENTS OF THE CLEAN12
HYDROGEN PROJECT AS SET FORTH IN THE APPLICATION ;13
(II) THE POTENTIAL CONTRIBUTION OF THE CLEAN HYDROGEN14
PROJECT IN MEETING THE GREENHOUSE GAS EMISSION REDUCTION GOALS15
DESCRIBED IN SECTION 25-7-102 (2)(g), INCLUDING LIFECYCLE16
GREENHOUSE GAS EMISSIONS RATES ;17
(III) THE IMPACTS OF THE CLEAN HYDROGEN PROJECT COMPARED18
TO ALTERNATIVE PROJECTS, INCLUDING:19
(A) RATE AND BILL IMPACTS;20
(B) THE IMPACTS ON RATE STABILITY; AND21
(C) ANY OTHER IMPACTS IDENTIFIED BY THE COMMISSION22
PURSUANT TO THIS SUBSECTION (5)(a);23
(III) THE USE OF COMPETITIVE SOLICITATIONS, IF ANY;24
(IV) IF THE CLEAN HYDROGEN PROJECT CONTEMPLATES THE SALE25
OF CLEAN HYDROGEN, THE POTENTIAL FOR CROSS-SUBSIDIZATION AND26
COST SHIFTING ACROSS RATE CLASSES;27
1281
-15- (V) THE IMPACTS OF THE CLEAN HYDROGEN PROJECT ON THE1
UTILITY WORKFORCE IN THE STATE, INCLUDING THE USE OF "BEST VALUE"2
EMPLOYMENT METRICS PURSUANT TO SECTION 40-2-129;3
(VI) THE IMPACTS OF THE CLEAN HYDROGEN PROJECT ON A4
COMMUNITY'S TAX BASE AND REVENUES;5
(VII) THE USES OF THE CLEAN HYDROGEN PRODUCED BY THE6
CLEAN HYDROGEN PROJECT , WITH A PREFERENCE FOR QUALIFIED USES;7
(VIII) THE PUBLIC HEALTH AND SAFETY IMPACTS OF THE CLEAN8
HYDROGEN PROJECT; AND9
(IX) THE AVAILABILITY OF FEDERAL FUNDING FOR THE CLEAN10
HYDROGEN PROJECT.11
(b) THE COMMISSION SHALL REVIEW ANY CLEAN HYDROGEN12
PROJECT APPLICATION SUBMITTED PURSUANT TO THIS SECTION IN13
ACCORDANCE WITH ANY APPLICABLE ELECTRIC RESOURCE PLANNING14
RULES.15
(c) IN REVIEWING, APPROVING, DENYING, OR AMENDING AN16
APPLICATION PURSUANT TO THIS SECTION, IF THE CLEAN HYDROGEN17
PROJECT IS PROPOSED TO BE SITED IN AN AREA THAT WOULD AFFECT A18
DISPROPORTIONATELY IMPACTED COMMUNITY , THE COMMISSION SHALL19
WEIGH THE APPLICANT'S CUMULATIVE IMPACTS ANALYSIS AND DETERMINE20
WHETHER, ON BALANCE, THE CLEAN HYDROGEN PROJECT WILL HAVE A21
POSITIVE EFFECT ON THE DISPROPORTIONATELY IMPACTED COMMUNITY.22
ANY PROPOSAL THAT WILL HAVE NET NEGATIVE CUMULATIVE IMPACTS ON23
ANY DISPROPORTIONATELY IMPACTED COMMUNITY MUST BE DENIED. THE24
COMMISSION'S DETERMINATION MUST INCLUDE A PLAIN LANGUAGE25
SUMMARY OF ITS DETERMINATION .26
(6) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE27
1281
-16- CONTRARY, AN INVESTOR-OWNED UTILITY SHALL PROVIDE NOTICE TO THE1
COMMISSION OF ANY APPLICATION FOR FEDERAL FUNDING AS PART OF A2
HYDROGEN HUB PROJECT, INCLUDING:3
(a) ANY HYDROGEN HUB PROJECT MILESTONES ;4
(b) A DESCRIPTION OF ANY DEADLINES FOR SUBMISSION OF5
MATERIALS TO SUPPORT THE APPLICATION, INCLUDING WHETHER ANY6
ADDITIONAL FILINGS WILL BE REQUIRED; AND7
(c) TO THE EXTENT KNOWN OR CONSISTENT WITH ANY8
REQUIREMENTS OR LIMITATIONS OF THE FEDERAL DEPARTMENT OF ENERGY9
OR ANY RELATED JOINT MEMORANDUMS OF UNDERSTANDING OR OTHER10
CONTRACTS ENTERED INTO BY THE INVESTOR -OWNED UTILITY AND THE11
STATE, INFORMATION REGARDING WHEN FUNDING AWARDS WILL BE12
DETERMINED.13
(7) (a) AN INVESTOR-OWNED UTILITY THAT OPERATES A CLEAN14
HYDROGEN PROJECT APPROVED PURS UANT TO THIS SECTION SHALL SUBMIT15
TO THE COMMISSION AN ANNUAL REPORT THAT SHOWS :16
(I) THE LIFECYCLE GREENHOUSE GAS EMISSIONS RATES FROM THE17
CLEAN HYDROGEN PROJECT ;18
(II) THE GREENHOUSE GAS EMISSIONS FROM THE CLEAN HYDROGEN19
PROJECT;20
(III) ANY EMISSION OF OTHER AIR POLLUTANTS FROM THE CLEAN21
HYDROGEN PROJECT;22
(IV) THE WATER USE OF THE CLEAN HYDROGEN PROJECT ;23
(V) PRODUCTION VOLUMES AND SALES OF HYDROGEN, INCLUDING24
TYPES OF CUSTOMERS AND USES;25
(VI) PROJECT DEVELOPMENT AND COST UPDATES FOR PROJECTS26
WITH COST RECOVERY FROM RATEPAYERS ; AND27
1281
-17- (VII) NET CUMULATIVE IMPACT UPDATES FOR PROJECTS LOCATED1
IN DISPROPORTIONATELY IMPACTED COMMUNITIES .2
(b) IF THE CLEAN HYDROGEN PROJECT INCLUDES THE PRODUCTION3
AND THE USE OR CONSUMPTION OF CLEAN HYDROGEN BY THE4
INVESTOR-OWNED UTILITY, THE INVESTOR-OWNED UTILITY SHALL REPORT5
THE LIFECYCLE GREENHOUSE GAS EMISSIONS RATES OF THE CLEAN6
HYDROGEN PROJECT SEPARATELY BY EACH PRODUCTION FACILITY AND7
USE.8
(c) THE ANNUAL REPORT MUST INCLUDE INFORMATION THAT9
ALLOWS THE OFFICE TO MAKE THE VERIFICATIONS REQUIRED PURSUANT TO10
SECTION 39-22-549 (4)(a)(II).11
SECTION 3. In Colorado Revised Statutes, add 39-22-549 as12
follows:13
39-22-549. Clean hydrogen tax credit - qualified uses - tax14
preference performance statement - definitions - legislative15
declaration - repeal. (1) (a) I
N ACCORDANCE WITH SECTION 39-21-30416
(1),
WHICH REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE17
TO INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A18
STATUTORY LEGISLATIVE DECLARATION , THE GENERAL ASSEMBLY FINDS19
AND DECLARES THAT THE PURPOSE OF THE TAX CREDIT PROVIDED IN THIS20
SECTION IS TO INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS .21
S
PECIFICALLY, THE TAX EXPENDITURE IS INTENDED TO PROVIDE TAX22
RELIEF FOR CERTAIN BUSINESSES OR INDIVIDUALS FOR PURPOSES OF23
ENCOURAGING THEM TO ENGAGE IN CERTAIN QUALIFIED USES OF CLEAN24
HYDROGEN.25
(b) T
HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL26
MEASURE THE EFFECTIVENESS OF THE CREDIT IN ACHIEVING THE PURPOSE27
1281
-18- SPECIFIED IN SUBSECTION (1)(a) OF THIS SECTION BASED ON THE1
INFORMATION REQUIRED TO BE MAINTAINED BY AND REPORTED TO THE2
STATE AUDITOR BY THE OFFICE PURSUANT TO SUBSECTION (4)(b) OF THIS3
SECTION.4
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE5
REQUIRES:6
(a) "C
LEAN HYDROGEN" HAS THE MEANING SET FORTH IN SECTION7
40-2-138 (1)(a).8
(b) "D
EPARTMENT" MEANS THE DEPARTMENT OF REVENUE .9
(c) "HARD TO DECARBONIZE END USE" HAS THE MEANING SET10
FORTH IN SECTION 40-2-138 (1)(e).11
(d) "L
IFECYCLE GREENHOUSE GAS EMISSIONS RATE " MEANS12
LIFECYCLE GREENHOUSE GAS EMISSIONS , AS DEFINED IN 26 U.S.C. SEC.13
45V (c)(1)(A),
AS AMENDED, MEASURED IN ACCORDANCE WITH ANY14
APPLICABLE FEDERAL INTERNAL REVENUE SERVICE REGULATIONS OR15
GUIDANCE, SUBJECT TO THE RULES ADOPTED BY THE PUBLIC UTILITIES16
COMMISSION PURSUANT TO SECTION 40-2-138 (3)(a)(I).17
(e) "O
FFICE" MEANS THE COLORADO ENERGY OFFICE CREATED IN18
SECTION 24-38.5-101.19 (f) "QUALIFIED USE" HAS THE MEANING SET FORTH IN SECTION20
40-2-138 (1)(i).21
(g) "T
AXPAYER" MEANS A PERSON SUBJECT TO TAX PURSUANT TO22
THIS ARTICLE 22 OR A PERSON OR POLITICAL SUBDIVISION OF THE STATE23
THAT IS EXEMPT FROM TAX PURSUANT TO SECTION 39-22-112 (1).24
(h) "T
IER ONE GREENHOUSE GAS EMISSIONS RATE " MEANS A25
QUALIFIED USE OF HYDROGEN THAT RESULTS IN LIFECYCLE GREENHOUSE26
GAS EMISSIONS RATES THAT ARE WITHIN THE RANGE SET FORTH IN 2627
1281
-19- U.S.C. SEC. 45V (b)(2)(D), AS AMENDED.1
(i) "T
IER TWO GREENHOUSE GAS EMISSIONS RATE " MEANS A2
QUALIFIED USE OF HYDROGEN THAT RESULTS IN LIFECYCLE GREENHOUSE3
GAS EMISSIONS RATES THAT ARE WITHIN THE RANGE SET FORTH IN 264
U.S.C.
SEC. 45V (b)(2)(C), AS AMENDED.5
(3) (a) S
UBJECT TO THE LIMITATIONS SET FORTH IN SUBSECTION6
(3)(b)
OF THIS SECTION, FOR INCOME TAX YEARS COMMENCING ON OR7
AFTER JANUARY 1, 2024, BUT BEFORE JANUARY 1, 2033, A TAXPAYER IS8
ALLOWED A CREDIT AGAINST THE INCOME TAXES IMPOSED BY THIS9
ARTICLE 22 IN AN AMOUNT EQUAL TO:10
(I) O
NE DOLLAR PER KILOGRAM OF CLEAN HYDROGEN USED FOR A11
QUALIFIED USE THAT RESULTS IN A TIER ONE GREENHOUSE GAS EMISSIONS12
RATE IN THE INCOME TAX YEAR; OR13
(II)
THIRTY-THREE CENTS PER KILOGRAM OF CLEAN HYDROGEN14
USED FOR A QUALIFIED USE THAT RESULTS IN A TIER TWO GREENHOUSE15
GAS EMISSIONS RATE IN THE INCOME TAX YEAR .16
(b) I
N ORDER TO CLAIM THE CREDIT , THE TAXPAYER MUST17
ANNUALLY APPLY FOR AND RECEIVE A TAX CREDIT CERTIFICATE FROM THE18
OFFICE PURSUANT TO SUBSECTION (4) OF THIS SECTION. IF THE OFFICE19
DETERMINES THAT AN APPLICANT IS NOT ENTITLED TO A TAX CREDIT20
CERTIFICATE UNDER THIS SECTION , THE OFFICE SHALL NOTIFY THE21
APPLICANT OF ITS DISAPPROVAL IN WRITING.22
(c) (I) F
OR INCOME TAX YEARS COMMENCING ON AND AFTER23
J
ANUARY 1, 2024, BUT BEFORE JANUARY 1, 2026,
AND NOT BEFORE THE24
PUBLIC UTILITIES COMMISSION ADOPTS RULES PURSUANT TO SECTION25
40-2-138 (3)(a)(I), THE OFFICE SHALL NOT ISSUE A TAX CREDIT26
CERTIFICATE TO A TAXPAYER INDICATING ELIGIBILITY FOR A TAX CREDIT27
1281
-20- FOR AN AMOUNT EXCEEDING ONE MILLION DOLLARS IN A TAX YEAR .1
(II) F
OR INCOME TAX YEARS COMMENCING ON AND AFTER2
J
ANUARY 1, 2026, BUT BEFORE JANUARY 1, 2029, THE OFFICE SHALL NOT3
ISSUE A TAX CREDIT CERTIFICATE TO A TAXPAYER INDICATING ELIGIBILITY4
FOR A TAX CREDIT FOR AN AMOUNT EXCEEDING FIVE HUNDRED THOUSAND5
DOLLARS IN A TAX YEAR.6
(III) F
OR INCOME TAX YEARS COMMENCING ON AND AFTER7
J
ANUARY 1, 2029, BUT BEFORE JANUARY 1, 2033, THE OFFICE SHALL NOT8
ISSUE A TAX CREDIT CERTIFICATE TO A TAXPAYER INDICATING ELIGIBILITY9
FOR A TAX CREDIT FOR AN AMOUNT EXCEEDING TWO HUNDRED FIFTY10
THOUSAND DOLLARS IN A TAX YEAR .11
(4) (a)
(I) A TAXPAYER SHALL SUBMIT AN APPLICATION TO THE12
OFFICE FOR A TAX CREDIT CERTIFICATE TO CLAIM THE CREDIT ALLOWED BY13
THIS SECTION ON A FORM AND IN A MANNER PRESCRIBED BY THE OFFICE .14
T
HE APPLICATION MUST INCLUDE INFORMATION TO ALLOW THE OFFICE TO15
MAKE A DETERMINATION THAT THE USE IS A QUALIFIED
USE AND THAT THE16
HYDROGEN USED MEETS THE DEFINITION OF CLEAN HYDROGEN PURSUANT17
TO SUBSECTION (2)(a) OF THIS SECTION AND TO VERIFY THE AMOUNT FOR18
WHICH THE TAX CREDIT CERTIFICATE IS APPLIED. A TAXPAYER IS ENTITLED19
TO RECEIVE ONE TAX CREDIT CERTIFICATE PER INCOME TAX YEAR .20
(II) THE APPLICATION DESCRIBED IN SUBSECTION (4)(a)(I) OF THIS21
SECTION MUST ALSO INCLUDE VERIFICATION FROM THE HYDROGEN22
PRODUCER PASSED TO THE USER AT THE POINT OF SALE THAT THE23
HYDROGEN USED MEETS THE DEFINITION OF CLEAN HYDROGEN PURSUANT24
TO SUBSECTION (2)(a) OF THIS SECTION.25
(b) (I) T
HE OFFICE SHALL MAINTAIN A DATABASE OF ANY26
INFORMATION DETERMINED NECESSARY BY THE OFFICE TO EVALUATE THE27
1281
-21- EFFECTIVENESS OF THE INCOME TAX CREDIT ALLOWED IN THIS SECTION IN1
MEETING THE PURPOSE SET FORTH IN SUBSECTION (1)(a) OF THIS SECTION2
AND SHALL PROVIDE SUCH INFORMATION , AND ANY OTHER INFORMATION3
THAT MAY BE NEEDED, IF AVAILABLE, TO THE STATE AUDITOR AS PART OF4
THE STATE AUDITOR'S EVALUATION OF THIS TAX EXPENDITURE REQUIRED5
BY SECTION 39-21-305.6
(II) T
HE OFFICE SHALL, IN A SUFFICIENTLY TIMELY MANNER TO7
ALLOW THE DEPARTMENT TO PROCESS RETURNS CLAIMING THE INCOME8
TAX CREDIT ALLOWED IN THIS SECTION, PROVIDE THE DEPARTMENT WITH9
AN ELECTRONIC REPORT FOR THE PRECEDING TAX YEAR LISTING EACH10
TAXPAYER TO WHICH THE OFFICE ISSUED A TAX CREDIT CERTIFICATE AND11
THAT INCLUDES THE FOLLOWING INFORMATION :12
(A) T
HE TAXPAYER'S NAME;13
(B) T
HE AMOUNT OF THE INCOME TAX CREDIT THAT THE14
CERTIFICATE INDICATES THE TAXPAYER IS ELIGIBLE TO CLAIM ; AND15
(C) T
HE TAXPAYER'S SOCIAL SECURITY NUMBER OR THE16
TAXPAYER'S COLORADO ACCOUNT NUMBER AND FEDERAL EMPLOYER17
IDENTIFICATION NUMBER.18
(III) T
HE OFFICE SHALL DEVELOP STANDARDS FOR THE QUALIFIED19
USES FOR WHICH AN INCOME TAX CREDIT UNDER THIS SECTION IS20
ALLOWED. THE OFFICE SHALL POST THE STANDARDS ON THE OFFICE 'S21
WEBSITE.22
(5) I
N ORDER TO CLAIM THE CREDIT AUTHORIZED BY THIS SECTION ,23
A TAXPAYER SHALL FILE THE TAX CREDIT CERTIFICATE WITH THE24
TAXPAYER'S STATE INCOME TAX RETURN , AND, IF THE TAXPAYER IS25
EXEMPT FROM TAX PURSUANT TO SECTION 39-22-112 (1), THE TAXPAYER26
SHALL FILE A RETURN PURSUANT TO SECTION 39-22-601 (7)(b). THE27
1281
-22- AMOUNT OF THE CREDIT THAT THE TAXPAYER MAY CLAIM PURSUANT TO1
THIS SECTION IS THE AMOUNT STATED ON THE TAX CREDIT CERTIFICATE .2
(6) I
F AN INCOME TAX CREDIT AUTHORIZED IN THIS SECTION3
EXCEEDS THE INCOME TAX DUE ON THE INCOME OF THE TAXPAYER FOR4
THE TAXABLE YEAR, THE EXCESS CREDIT MAY NOT BE CARRIED FORWARD5
AND MUST BE REFUNDED TO THE TAXPAYER .6 7
(7) THIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2036.8
SECTION 4. Appropriation. (1) For the 2023-24 state fiscal9
year, $360,758 is appropriated to the department of reguatory agencies for10
use by the public utilities commission. This appropriation is from the11
public utilities commission fixed utility fund created in section 40-2-11412
(1)(b)(II), C.R.S. To implement this act, the department may use this13
appropriation as follows:14
(a) $241,532 for use by the public utilites commission for personal15
services, which amount is based on an assumption that the commission16
will require an additional 3.0 FTE;17
(b) $24,060 for use by the public utilities commission for18
operating expenses; and19
(c) $95,166 for legal services.20
(2) For the 2023-24 state fiscal year, $95,166 is appropriated to21
the department of law. This appropriation is from reappropriated funds22
received from the department of regulatory agencies under subsection23
(1)(c) of this section and is based on an assumption that the department24
of law will require an additional 0.5 FTE. To implement this act, the25
department of law may use this appropriation to provide legal services for26
the department of regulatory agencies.27
1281
-23- (3) For the 2023-24 state fiscal year, $12,861 is appropriated to1
the department of revenue for use by taxation services. This appropriation2
is from the general fund. To implement this act, the division may use this3
appropriation for the purchase of document management services.4
(4) For the 2023-24 state fiscal year, $12,861 is appropriated to5
the department of personnel. This appropriation is from reappropriated6
funds received from the department of revenue under subsection (3) of7
this section. To implement this act, the department of personnel may use8
this appropriation to provide document management services for the9
department of revenue.10
SECTION 5. Act subject to petition - effective date. This act11
takes effect at 12:01 a.m. on the day following the expiration of the12
ninety-day period after final adjournment of the general assembly; except13
that, if a referendum petition is filed pursuant to section 1 (3) of article V14
of the state constitution against this act or an item, section, or part of this15
act within such period, then the act, item, section, or part will not take16
effect unless approved by the people at the general election to be held in17
November 2024 and, in such case, will take effect on the date of the18
official declaration of the vote thereon by the governor.19
1281
-24-