Colorado 2023 Regular Session

Colorado House Bill HB1281 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	+	REVISED
	5	+	This Version Includes All Amendments Adopted
	6	+	on Second Reading in the Second House
	7	+	LLS NO. 23-0894.01 Sarah Lozano x3858
1	8		HOUSE BILL 23-1281
2		-	BY REPRESENTATIVE(S) Titone and Vigil, Amabile, Bird, Boesenecker,
3		-	Dickson, Froelich, Herod, Jodeh, Joseph, Kipp, Lindsay, Mauro,
4		-	McCormick, Michaelson Jenet, Sharbini, Snyder, Story, Valdez, Weinberg,
5		-	Woodrow, McCluskie;
6		-	also SENATOR(S) Cutter and Priola, Buckner, Jaquez Lewis, Kolker,
7		-	Marchman.
	9	+	House Committees Senate Committees
	10	+	Energy & Environment Finance
	11	+	Finance Appropriations
	12	+	Appropriations
	13	+	A BILL FOR AN ACT
8	14		C
9		-	ONCERNING MEASURES TO ADVANCE THE USE OF CLEAN HYDROGEN IN THE
10		-	STATE
11		-	, AND, IN CONNECTION THEREWITH , MAKING AN
12		-	APPROPRIATION
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 and declares that:
18		-	(a) In 2019, Colorado adopted the following goals for the statewide
19		-	reduction of greenhouse gas pollution from a 2005 baseline:
20		-	(I) Reducing greenhouse gas pollution by more than twenty-six
21		-	percent by 2025;
22		-	NOTE: This bill has been prepared for the signatures of the appropriate legislative
23		-	officers and the Governor. To determine whether the Governor has signed the bill
24		-	or taken other action on it, please consult the legislative status sheet, the legislative
25		-	history, or the Session Laws.
26		-	________
27		-	Capital letters or bold & italic numbers indicate new material added to existing law; dashes
28		-	through words or numbers indicate deletions from existing law and such material is not part of
29		-	the act. (II) Reducing greenhouse gas pollution by more than fifty percent
30		-	by 2030; and
31		-	(III) Reducing greenhouse gas pollution by more than ninety percent
32		-	by 2050;
33		-	(b) The Colorado Greenhouse Gas Pollution Reduction Roadmap,
34		-	published by the Colorado energy office and dated January 14, 2021,
35		-	recognizes that:
36		-	(I) Achieving the state's greenhouse gas pollution reduction goals
37		-	from 2030 to 2050 will require further technical innovation and economies
38		-	of scale to bring costs down for deployment of innovative technologies both
39		-	for emission reductions of end uses and to generate energy through
40		-	innovative methods such as clean hydrogen; and
41		-	(II) Clean hydrogen may be an important resource to lower
42		-	greenhouse gas emissions from sectors that are harder to decarbonize, such
43		-	as heavy-duty transportation and heavy industry;
44		-	(c) The federal government enacted the "Inflation Reduction Act of
45		-	2022", Pub.L. 117-169, which recognizes the importance of clean energy
46		-	production in the fight against climate change and creates important
47		-	incentives that make investments in clean hydrogen more affordable and
48		-	attainable;
49		-	(d) To support diversification of the state's energy production and
50		-	create well-paid clean energy jobs, Colorado has joined three other regional
51		-	states in a partnership to pursue funding from the United States department
52		-	of energy for a regional hydrogen hub;
53		-	(e) As Colorado diversifies and decarbonizes its energy economy
54		-	with clean energy sources, clean hydrogen may play an important role in the
55		-	resilience of the state's electric grid and for dispatchable electricity
56		-	generation that complements the use of wind and solar resources, while also
57		-	helping achieve Governor Polis's goal of one hundred percent renewable
58		-	electricity generation in the state by 2040; and
59		-	(f) The inclusion of clean hydrogen as an element in decarbonization
60		-	pathways should include comprehensive assessments of clean hydrogen in
61		-	PAGE 2-HOUSE BILL 23-1281 comparison to alternatives, including consideration of life cycle emissions,
62		-	costs, impacts on communities, including disproportionately impacted
63		-	communities, and environmental impacts on water, air, land, and
64		-	biodiversity.
65		-	(2) The general assembly therefore declares that state law should:
66		-	(a) Provide for various methods to advance the use of clean
67		-	hydrogen in the state;
68		-	(b) Allow for agencies of the state and users of clean hydrogen in
69		-	the state to coordinate with each other to take advantage of available federal
70		-	funding and tax credits; and
71		-	(c) Ensure that the use of clean hydrogen in the state is in alignment
72		-	with the state's greenhouse gas emission reduction and environmental
73		-	justice goals.
74		-	SECTION 2. In Colorado Revised Statutes, add 40-2-138 as
75		-	follows:
76		-	40-2-138. Projects for the production of clean hydrogen -
77		-	proceeding - hydrogen hub projects - rules - definitions. (1) A
78		-	S USED IN
79		-	THIS SECTION
80		-	, UNLESS THE CONTEXT OTHERWISE REQUIRES :
	15	+	ONCERNING MEASURES TO ADVANCE THE USE OF CLEAN HYDROGEN101
	16	+	IN THE
	17	+	STATE, AND, IN CONNECTION THEREWITH, MAKING AN102
	18	+	APPROPRIATION.103
	19	+	Bill Summary
	20	+	(Note: This summary applies to this bill as introduced and does
	21	+	not reflect any amendments that may be subsequently adopted. If this bill
	22	+	passes third reading in the house of introduction, a bill summary that
	23	+	applies to the reengrossed version of this bill will be available at
	24	+	http://leg.colorado.gov
	25	+	.)
	26	+	Section 2 of the bill defines clean hydrogen (clean hydrogen) as
	27	+	hydrogen that is:
	28	+	! Derived from a clean energy resource that uses water as the
	29	+	source of hydrogen; or
	30	+	! Produced through a process that results in lifecycle
	31	+	SENATE
	32	+	2nd Reading Unamended
	33	+	May 5, 2023
	34	+	HOUSE
	35	+	3rd Reading Unamended
	36	+	May 1, 2023
	37	+	HOUSE
	38	+	Amended 2nd Reading
	39	+	April 29, 2023
	40	+	HOUSE SPONSORSHIP
	41	+	Titone and Vigil, Amabile, Bird, Boesenecker, Dickson, Froelich, Herod, Jodeh, Joseph,
	42	+	Kipp, Lindsay, Mauro, McCluskie, McCormick, Michaelson Jenet, Sharbini, Snyder, Story,
	43	+	Valdez, Weinberg, Woodrow
	44	+	SENATE SPONSORSHIP
	45	+	Cutter and Priola,
	46	+	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
	47	+	Capital letters or bold & italic numbers indicate new material to be added to existing law.
	48	+	Dashes through the words or numbers indicate deletions from existing law. greenhouse gas emissions rates that are less than 1.5
	49	+	kilograms of carbon dioxide equivalent per kilogram of
	50	+	hydrogen, as set forth in applicable federal law.
	51	+	Section 2 also directs the public utilities commission (commission)
	52	+	to establish a stand-alone application, review, and approval process for
	53	+	investor-owned utility projects that result in the production of clean
	54	+	hydrogen (clean hydrogen project). For a clean hydrogen project to be
	55	+	approved by the commission, an investor-owned utility must submit an
	56	+	application to the commission demonstrating that the clean hydrogen
	57	+	project involves collaboration between the investor-owned utility and a
	58	+	state or federal agency. Any application for a clean hydrogen project must
	59	+	include:
	60	+	! Best practices utilized by the investor-owned utility to
	61	+	reduce air emissions and environmental impacts, conduct
	62	+	leak detection monitoring, and increase public safety;
	63	+	! If the investor-owned utility's clean hydrogen production
	64	+	facilities are located in a disproportionately impacted
	65	+	community, a cumulative impact analysis that evaluates
	66	+	past, present, and future impacts; and
	67	+	! An assessment of the annual volume of water used in
	68	+	electrolysis of water to produce clean hydrogen for the
	69	+	clean hydrogen project.
	70	+	Section 2 also requires the commission to allow an investor-owned
	71	+	utility to sell clean hydrogen to third parties under a clean hydrogen tariff.
	72	+	For income tax years commencing on or after January 1, 2024, but
	73	+	before January 1, 2033, section 3 creates a state income tax credit in
	74	+	specified amounts per kilogram of clean hydrogen used for industrial
	75	+	operations, for operating a heavy-duty vehicle, or for aviation (tax credit).
	76	+	Any taxpayer seeking to claim the tax credit must first apply for and
	77	+	receive a tax credit certificate from the Colorado energy office.
	78	+	Be it enacted by the General Assembly of the State of Colorado:1
	79	+	SECTION 1. Legislative declaration. (1) The general assembly2
	80	+	finds and declares that:3
	81	+	(a) In 2019, Colorado adopted the following goals for the4
	82	+	statewide reduction of greenhouse gas pollution from a 2005 baseline:5
	83	+	(I) Reducing greenhouse gas pollution by more than twenty-six6
	84	+	percent by 2025;7
	85	+	(II) Reducing greenhouse gas pollution by more than fifty percent8
	86	+	1281-2- by 2030; and1
	87	+	(III) Reducing greenhouse gas pollution by more than ninety2
	88	+	percent by 2050;3
	89	+	(b) The Colorado Greenhouse Gas Pollution Reduction Roadmap,4
	90	+	published by the Colorado energy office and dated January 14, 2021,5
	91	+	recognizes that:6
	92	+	(I) Achieving the state's greenhouse gas pollution reduction goals7
	93	+	from 2030 to 2050 will require further technical innovation and8
	94	+	economies of scale to bring costs down for deployment of innovative9
	95	+	technologies both for emission reductions of end uses and to generate10
	96	+	energy through innovative methods such as clean hydrogen; and11
	97	+	(II) Clean hydrogen may be an important resource to lower12
	98	+	greenhouse gas emissions from sectors that are harder to decarbonize,13
	99	+	such as heavy-duty transportation and heavy industry;14
	100	+	(c) The federal government enacted the "Inflation Reduction Act15
	101	+	of 2022", Pub.L. 117-169, which recognizes the importance of clean16
	102	+	energy production in the fight against climate change and creates17
	103	+	important incentives that make investments in clean hydrogen more18
	104	+	affordable and attainable;19
	105	+	(d) To support diversification of the state's energy production and20
	106	+	create well-paid clean energy jobs, Colorado has joined three other21
	107	+	regional states in a partnership to pursue funding from the United States22
	108	+	department of energy for a regional hydrogen hub; 23
	109	+	(e) As Colorado diversifies and decarbonizes its energy economy24
	110	+	with clean energy sources, clean hydrogen may play an important role in25
	111	+	the resilience of the state's electric grid and for dispatchable electricity26
	112	+	generation that complements the use of wind and solar resources, while27
	113	+	1281
	114	+	-3- also helping achieve Governor Polis's goal of one hundred percent1
	115	+	renewable electricity generation in the state by 2040; and2
	116	+	(f) The inclusion of clean hydrogen as an element in3
	117	+	decarbonization pathways should include comprehensive assessments of4
	118	+	clean hydrogen in comparison to alternatives, including consideration of5
	119	+	life cycle emissions, costs, impacts on communities, including6
	120	+	disproportionately impacted communities, and environmental impacts on7
	121	+	water, air, land, and biodiversity.8
	122	+	(2) The general assembly therefore declares that state law should:9
	123	+	(a) Provide for various methods to advance the use of clean10
	124	+	hydrogen in the state;11
	125	+	(b) Allow for agencies of the state and users of clean hydrogen in12
	126	+	the state to coordinate with each other to take advantage of available13
	127	+	federal funding and tax credits; and14
	128	+	(c) Ensure that the use of clean hydrogen in the state is in15
	129	+	alignment with the state's greenhouse gas emission reduction and16
	130	+	environmental justice goals.17
	131	+	SECTION 2. In Colorado Revised Statutes, add 40-2-138 as18
	132	+	follows:19
	133	+	40-2-138. Projects for the production of clean hydrogen20
	134	+	- proceeding - hydrogen hub projects - rules - definitions. (1) AS USED21
	135	+	IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :22
	136	+	(a) "CLEAN HYDROGEN" MEANS:23
	137	+	(I) GREEN HYDROGEN, AS DEFINED IN SECTION 40-3.2-108 (2)(j);24
	138	+	OR25
	139	+	(II) HYDROGEN THAT IS PRODUCED THROUGH A PROCESS THAT26
	140	+	RESULTS IN LIFECYCLE GREENHOUSE GAS EMISSIONS RATES THAT ARE27
	141	+	1281
	142	+	-4- WITHIN THE LIFECYCLE GREENHOUSE GAS EMISSIONS RATE RANGES SET1
	143	+	FORTH IN 26 U.S.C. SECS. 45V (b)(2)(C) AND 45V (b)(2)(D), AS2
	144	+	AMENDED.3
	145	+	(b) (I) "CLEAN HYDROGEN PROJECT" MEANS A PROJECT THAT4
	146	+	RESULTS IN THE PRODUCTION OF CLEAN HYDROGEN BY AN5
	147	+	INVESTOR-OWNED UTILITY.6
	148	+	(II) "CLEAN HYDROGEN PROJECT " MAY INCLUDE PIPELINES,7
	149	+	ELECTROLYZERS, ENVIRONMENTAL CONTROLS, MONITORING EQUIPMENT,8
	150	+	DEDICATED RENEWABLE ENERGY SOURCES FOR ELECTROLYSIS , THE9
	151	+	PURCHASE OF CLEAN HYDROGEN FROM THIRD PARTIES, AND AN UPGRADE10
	152	+	TO A TURBINE AT AN ELECTRIC GENERATING STATION IF THAT UPGRADE IS11
	153	+	PART OF A STATE OR FEDERAL APPLICATION FOR A REGIONAL CLEAN12
	154	+	HYDROGEN HUB UNDER 42 U.S.C. 16161a.13
	155	+	"(c) "CUMULATIVE IMPACTS" MEANS THE INCREMENTAL EFFECTS14
	156	+	OF A CLEAN HYDROGEN PROJECT ON THE ENVIRONMENT , INCLUDING15
	157	+	EFFECTS ON AIR QUALITY, WATER QUALITY, WATER RESOURCE16
	158	+	AVAILABILITY, CLIMATE, AND PUBLIC HEALTH, THAT A CLEAN HYDROGEN17
	159	+	PROJECT HAS WHEN ADDED TO THE IMPACTS FROM OTHER PAST, PRESENT,18
	160	+	AND REASONABLY FORESEEABLE FUTURE DEVELOPMENT OF ANY TYPE ON19
	161	+	THE RELEVANT AREA, INCLUDING AN AIRSHED OR WATERSHED , AS20
	162	+	DETERMINED BY RULE BY THE COMMISSION , OR ON A21
	163	+	DISPROPORTIONATELY IMPACTED COMMUNITY .22
	164	+	(d) "DISPROPORTIONATELY IMPACTED COMMUNITY" HAS THE23
	165	+	MEANING SET FORTH IN SECTION 24-4-109 (2)(b)(II).24
	166	+	(e) (I) "HARD TO DECARBONIZE END USE" MEANS INDUSTRIAL USES25
	167	+	THAT INCLUDE:26
	168	+	(A) THE GENERATION OF HEAT OF AT LEAST ONE HUNDRED FIFTY27
	169	+	1281
	170	+	-5- DEGREES CELSIUS FOR INDUSTRIAL PURPOSES; AND1
	171	+	(B) ADDITION AS FEEDSTOCK FOR INDUSTRIAL PURPOSES,2
	172	+	INCLUDING MANUFACTURE OF STEEL, AMMONIA, FERTILIZER, AND3
	173	+	CHEMICALS.4
	174	+	(II) "HARD TO DECARBONIZE END USE" DOES NOT INCLUDE THE5
	175	+	DIRECT USE OF HYDROGEN FOR RESIDENTIAL OR COMMERCIAL HEATING .6
	176	+	(f) "HYDROGEN HUB PROJECT" MEANS A PROJECT THAT IS PART OF7
	177	+	AN APPLICATION FOR FEDERAL FUNDING BY A PARTNERSHIP OF REGULATED8
	178	+	UTILITIES, PRIVATE PARTNERS, AND COMPANIES AND MAY INCLUDE STATE9
	179	+	OR FEDERAL GOVERNMENT AGENCIES IN COLLABORATION WITH OTHER10
	180	+	STATES THAT IS DESIGNED TO UTILIZE AVAILABLE FEDERAL FUNDS AND11
	181	+	TAX CREDITS, WHICH MAY INCLUDE THE PRODUCTION, TRANSPORT, AND12
	182	+	USE OF CLEAN HYDROGEN.13
	183	+	(g) "LIFECYCLE GREENHOUSE GAS EMISSIONS RATE " MEANS14
	184	+	LIFECYCLE GREENHOUSE GAS EMISSIONS, AS DEFINED IN 26 U.S.C. SEC.15
	185	+	45V (c)(1)(A), AS AMENDED, MEASURED IN ACCORDANCE WITH ANY16
	186	+	APPLICABLE FEDERAL INTERNAL REVENUE SERVICE REGULATIONS OR17
	187	+	GUIDANCE.18
	188	+	(h) "OFFICE" MEANS THE COLORADO ENERGY OFFICE CREATED IN19
	189	+	SECTION 24-38.5-101.20
	190	+	(i) "QUALIFIED USE" MEANS THE USE OF CLEAN HYDROGEN IN THE21
	191	+	STATE FOR:22
	192	+	(I) HARD TO DECARBONIZE END USES;23
	193	+	(II) THE OPERATION OF A HEAVY-DUTY MOTOR VEHICLE, AS24
	194	+	DEFINED IN SECTION 25-7.5-102 (11); AND25
	195	+	(III) AVIATION.26
	196	+	(2) THE COMMISSION SHALL INITIATE AN INVESTIGATORY27
	197	+	1281
	198	+	-6- PROCEEDING, NO LATER THAN SEPTEMBER 1, 2023, TO CONSIDER:1
	199	+	(a) THE POTENTIAL FOR CLEAN HYDROGEN PROJECTS OPERATED BY2
	200	+	INVESTOR-OWNED UTILITIES SUBJECT TO REGULATION BY THE COMMISSION3
	201	+	TO CONTRIBUTE TO MEETING THE GREENHOUSE GAS EMISSION REDUCTION4
	202	+	GOALS DESCRIBED IN SECTION 25-7-102 (2)(g), INCLUDING LIFECYCLE5
	203	+	GREENHOUSE GAS EMISSIONS RATES, WITH A PREFERENCE FOR QUALIFIED6
	204	+	USES;7
	205	+	(b) THE IMPACT OF CLEAN HYDROGEN PROJECTS ON THE EMISSION8
	206	+	OF AIR POLLUTANTS OTHER THAN GREENHOUSE GASES AND HUMAN9
	207	+	HEALTH;10
	208	+	(c) POTENTIAL MARKETS FOR CLEAN HYDROGEN IN COLORADO;11
	209	+	(d) THE IMPACT OF CLEAN HYDROGEN PRODUCTION ON WATER12
	210	+	QUALITY AND QUANTITY IN COLORADO;13
	211	+	(e) THE POTENTIAL IMPACTS OF PIPELINE LEAKAGE AND BEST14
	212	+	PRACTICES FOR MITIGATION;15
	213	+	(f) THE POTENTIAL FOR THE DEVELOPMENT OF CLEAN HYDROGEN16
	214	+	TO HELP CREATE OR SUSTAIN JOBS IN COLORADO, INCLUDING UTILITY17
	215	+	JOBS;18
	216	+	(g) THE COST, CAPABILITIES, AND MARKET AVAILABILITY OF19
	217	+	CLEAN HYDROGEN TECHNOLOGIES , INCLUDING PIPELINE INVESTMENTS;20
	218	+	(h) THE APPROPRIATE ROLES FOR INVESTOR-OWNED UTILITIES IN21
	219	+	THE PRODUCTION, SALE, OR USE OF CLEAN HYDROGEN, INCLUDING22
	220	+	CONSIDERING WHETHER COSTS MAY BE RECOVERED FROM RATEPAYERS ;23
	221	+	(i) THE POTENTIAL IMPACT OF INVESTOR-OWNED UTILITY24
	222	+	INVESTMENTS IN A CLEAN HYDROGEN PROJECT ON RATEPAYERS,25
	223	+	INCLUDING ON BILLS, RATES, AND RATE STABILITY, AND OPTIONS FOR26
	224	+	AVOIDING POTENTIAL CROSS-SUBSIDIZATION AND COST SHIFTING ACROSS27
	225	+	1281
	226	+	-7- RATE CLASSES;1
	227	+	(j) PRINCIPLES AND REQUIREMENTS FOR ANY TARIFFS FOR THE2
	228	+	SALE OF CLEAN HYDROGEN TO THIRD PARTIES, INCLUDING PRINCIPLES AND3
	229	+	REQUIREMENTS TO ENSURE THAT COSTS ARISING FROM THE DEVELOPMENT ,4
	230	+	PRODUCTION, TRANSPORT, AND DELIVERY OF THE CLEAN HYDROGEN5
	231	+	UNDER THOSE TARIFFS ARE NOT BORNE BY CUSTOMERS WHO DO NOT TAKE6
	232	+	SERVICE FROM THOSE TARIFFS;7
	233	+	(k) THE PROCESS AND DATA NECESSARY AND AVAILABLE TO8
	234	+	IMPLEMENT A REQUIREMENT FOR THE ADOPTION OF METHODS FOR :9
	235	+	(I) THE MEASUREMENT OF LIFECYCLE GREENHOUSE GAS EMISSIONS10
	236	+	RATES, INCLUDING FOR HOURLY MATCHING OF ELECTRICITY USED ;11
	237	+	(II) THE TRACKING OF THE DEPLOYMENT OF NEW RENEWABLE12
	238	+	ENERGY RESOURCES OR USE OF CURTAILED RENEWABLE ENERGY TO MEET13
	239	+	ELECTRICITY REQUIREMENTS FOR PRODUCTION OF CLEAN HYDROGEN IN14
	240	+	THE SAME LOAD BALANCING AREA ; AND15
	241	+	(III) THE COMMISSION TO DETERMINE WHEN AT LEAST TWO16
	242	+	HUNDRED MEGAWATTS OF ELECTROLYZERS ARE OPERATIONAL IN THE17
	243	+	STATE;18
	244	+	(l) THE PROCESS AND DATA NECESSARY FOR AN INVESTOR-OWNED19
	245	+	UTILITY TO CONDUCT A CUMULATIVE IMPACT ANALYSIS OF A CLEAN20
	246	+	HYDROGEN PROJECT AND ANY PROCESS NECESSARY TO AVOID ADVERSE21
	247	+	CUMULATIVE IMPACTS ON DISPROPORTIONATELY IMPACTED COMMUNITIES ,22
	248	+	IF ANY, WHICH MAY INCLUDE THE COMMISSION CONSIDERING :23
	249	+	(I) THE TIME FRAME OVER WHICH A CUMULATIVE IMPACT24
	250	+	ANALYSIS SHOULD BE CONDUCTED ;25
	251	+	(II) THE GEOGRAPHICAL SCOPE OF A CUMULATIVE IMPACT26
	252	+	ANALYSIS; AND27
	253	+	1281
	254	+	-8- (III) WHETHER THE CUMULATIVE IMPACT ANALYSIS SHOULD BE1
	255	+	COMPARED TO ALTERNATIVE PROJECTS ;2
	256	+	(m) REQUIREMENTS FOR ANY APPLICATION FOR A CLEAN3
	257	+	HYDROGEN PROJECT, IN ADDITION TO THE REQUIREMENTS DESCRIBED IN4
	258	+	SUBSECTION (3)(a)(VI) OF THIS SECTION AND SUBJECT TO SUBSECTIONS (4)5
	259	+	AND (5) OF THIS SECTION;6
	260	+	(n) ANY DATA OR INFORMATION NECESSARY OR AVAILABLE TO7
	261	+	EVALUATE A CLEAN HYDROGEN PROJECT AGAINST ALTERNATIVE8
	262	+	PROJECTS, INCLUDING HOW TO MEASURE, TRACK, AND REPORT LIFECYCLE9
	263	+	GREENHOUSE GAS EMISSIONS RATES, CUMULATIVE IMPACTS, AND THE10
	264	+	CUMULATIVE IMPACTS AND INDIVIDUAL IMPACTS ON JOBS , LOCAL11
	265	+	ECONOMIC BENEFITS, AND WATER USE BY CLEAN HYDROGEN PROJECTS12
	266	+	UNDER THE COMMISSION'S JURISDICTION;13
	267	+	(o) OPPORTUNITIES TO ENCOURAGE NON-UTILITY PRODUCTION OF14
	268	+	CLEAN HYDROGEN IN COLORADO, INCLUDING OPPORTUNITIES FOR AN15
	269	+	INVESTOR-OWNED UTILITY TO PROPOSE A TARIFF FOR THE SALE OF16
	270	+	RENEWABLE ENERGY THAT WOULD OTHERWISE BE CURTAILED ; AND17
	271	+	(p) ANY OTHER RELEVANT ISSUES THAT THE COMMISSION18
	272	+	DETERMINES ARE NECESSARY TO CONSIDER .19
	273	+	(3) (a) NO LATER THAN DECEMBER 1, 2024, UNLESS THE OFFICE20
	274	+	FILES A NOTICE WITH THE COMMISSION STATING THAT THE FEDERAL21
	275	+	DEPARTMENT OF ENERGY HAS EXTENDED OR OTHERWISE ALTERED THE22
	276	+	DEADLINE REGARDING FUNDING FOR A HYDROGEN HUB PROJECT, THE23
	277	+	COMMISSION SHALL ADOPT RULES THAT :24
	278	+	(I) UNLESS THE COMMISSION DETERMINES THAT INVESTOR-OWNED25
	279	+	UTILITIES SHOULD NOT DEVELOP CLEAN HYDROGEN PROJECTS FOR COST26
	280	+	RECOVERY FROM RATEPAYERS, ESTABLISH REQUIREMENTS FOR THE27
	281	+	1281
	282	+	-9- PRESENTATION OF A CLEAN HYDROGEN PROJECT TO THE COMMISSION FOR1
	283	+	THE COMMISSION'S APPROVAL;2
	284	+	(II) ESTABLISH REQUIREMENTS FOR LIFECYCLE GREENHOUSE GAS3
	285	+	EMISSIONS RATE ACCOUNTING FOR CLEAN HYDROGEN PROJECTS ;4
	286	+	(III) ADDRESS THE APPROPRIATE ROLE OF INVESTOR-OWNED5
	287	+	UTILITIES IN THE PRODUCTION, SALE, AND USE OF CLEAN HYDROGEN ,6
	288	+	INCLUDING WHETHER AND HOW COSTS MAY BE RECOVERED FROM7
	289	+	RATEPAYERS AND APPROPRIATE TREATMENT OF REVENUES FROM CLEAN8
	290	+	HYDROGEN SALES;9
	291	+	(IV) ADDRESS HOW INVESTOR-OWNED UTILITIES MAY USE10
	292	+	COMPETITIVE SOLICITATIONS IN A CLEAN HYDROGEN PROJECT AND ANY11
	293	+	LIMITATIONS FOR THE USE OF COMPETITIVE SOLICITATIONS TO DEVELOP12
	294	+	THE CLEAN HYDROGEN PROJECT ;13
	295	+	(V) ESTABLISH A REQUIREMENT THAT ANY PLANNED OR14
	296	+	POTENTIAL USE FOR THE CLEAN HYDROGEN IN BUILDINGS OR GAS15
	297	+	DISTRIBUTION SYSTEMS OF AN INVESTOR-OWNED UTILITY BE PROPOSED TO16
	298	+	AND APPROVED BY THE COMMISSION THROUGH A CLEAN HEAT PLAN , AS17
	299	+	DEFINED IN SECTION 40-3.2-108 (2)(b); AND18
	300	+	(VI) ADDRESS WHAT IS REQUIRED IN AN APPLICATION BY AN19
	301	+	INVESTOR-OWNED UTILITY FOR A CLEAN HYDROGEN PROJECT, SUBJECT TO20
	302	+	SUBSECTIONS (4) AND (5) OF THIS SECTION, INCLUDING:21
	303	+	(A) A COMPARISON OF A CLEAN HYDROGEN PROJECT TO22
	304	+	ALTERNATIVE PROJECTS, INCLUDING AN ANALYSIS OF THE COSTS AND23
	305	+	BENEFITS OF THE CLEAN HYDROGEN PROJECT COMPARED TO ALTERNATIVE24
	306	+	PROJECTS;25
	307	+	(B) A DESCRIPTION OF HOW THE INVESTOR-OWNED UTILITY WILL26
	308	+	MEASURE AND TRACK THE ANNUAL AND CUMULATIVE LIFECYCLE27
	309	+	1281
	310	+	-10- GREENHOUSE GAS EMISSIONS RATES AND THE EMISSION OF OTHER AIR1
	311	+	POLLUTANTS IN ACCORDANCE WITH THE RULES ADOPTED PURSUANT TO2
	312	+	SUBSECTION (3)(a)(II) OF THIS SECTION;3
	313	+	(C) A DESCRIPTION OF HOW THE INVESTOR-OWNED UTILITY WILL:4
	314	+	MINIMIZE THE LIFECYCLE GREENHOUSE GAS EMISSIONS RATES OF THE5
	315	+	CLEAN HYDROGEN PROJECT; CONDUCT LEAK DETECTION THROUGHOUT THE6
	316	+	LIFE OF THE CLEAN HYDROGEN PROJECT; AND CONDUCT A CUMULATIVE7
	317	+	IMPACT ANALYSIS OF THE CLEAN HYDROGEN PROJECT ;8
	318	+	(D) AN ASSESSMENT OF THE ANNUAL WATER VOLUME THAT WILL9
	319	+	BE USED IN THE CLEAN HYDROGEN PROJECT, INCLUDING THE SOURCE OF10
	320	+	WATER TO BE USED;11
	321	+	(E) A DESCRIPTION OF ANY PLANNED USES, INCLUDING POTENTIAL12
	322	+	END USES BY THE INVESTOR-OWNED UTILITY'S CUSTOMERS, OF THE CLEAN13
	323	+	HYDROGEN PRODUCED THROUGH THE CLEAN HYDROGEN PROJECT, WITH A14
	324	+	PREFERENCE FOR QUALIFIED USES;15
	325	+	(F) A DESCRIPTION OF ANY PLANNED SALES OF CLEAN HYDROGEN16
	326	+	TO NON-UTILITY CUSTOMERS, WITH A PREFERENCE FOR QUALIFIED USES;17
	327	+	(G) A DESCRIPTION OF THE PROPOSED METHOD OF COST RECOVERY18
	328	+	FOR THE CLEAN HYDROGEN PROJECT, INCLUDING INFORMATION19
	329	+	REGARDING WHICH RATE CLASSES WILL COVER THE COSTS OF THE CLEAN20
	330	+	HYDROGEN PROJECT;21
	331	+	(H) A DESCRIPTION OF THE TOTAL REVENUE REQUIREMENT FOR22
	332	+	THE CLEAN HYDROGEN PROJECT ;23
	333	+	(I) A DESCRIPTION OF THE RATE AND BILL IMPACTS OF THE CLEAN24
	334	+	HYDROGEN PROJECT;25
	335	+	(J) A DESCRIPTION OF ANY TARIFFS FOR THE SALE OF CLEAN26
	336	+	HYDROGEN PRODUCED BY THE CLEAN HYDROGEN PROJECT ;27
	337	+	1281
	338	+	-11- (K) A PROPOSAL FOR THE ALLOCATION OF REVENUES RECEIVED1
	339	+	FROM THE SALE OF CLEAN HYDROGEN PRODUCED BY THE CLEAN2
	340	+	HYDROGEN PROJECT TO NON-UTILITY CUSTOMERS AMONG CUSTOMERS3
	341	+	AND THE INVESTOR-OWNED UTILITY, INCLUDING WHICH PARTY BEARS THE4
	342	+	RISK THAT THE AMOUNT OF REVENUE ANTICIPATED FROM THE CLEAN5
	343	+	HYDROGEN PROJECT IS NOT ULTIMATELY RECEIVED ;6
	344	+	(L) A CUMULATIVE IMPACT ANALYSIS FRAMEWORK ; AND7
	345	+	(M) IF THE INVESTOR-OWNED UTILITY PLANS TO USE A8
	346	+	COMPETITIVE SOLICITATION PROCESS AS PART OF THE CLEAN HYDROGEN9
	347	+	PROJECT, A DESCRIPTION OF HOW THE PLANNED COMPETITIVE10
	348	+	SOLICITATION PROCESS WILL BE USED AND IN WHAT CIRCUMSTANCES THE11
	349	+	PROCESS WILL BE USED.12
	350	+	(b) (I) THE RULES ADOPTED BY THE COMMISSION PURSUANT TO13
	351	+	SUBSECTION (3)(a)(II) OF THIS SECTION MUST INCLUDE REQUIREMENTS14
	352	+	FOR:15
	353	+	(A) THE MATCHING OF ELECTROLYZER ENERGY CONSUMPTION16
	354	+	WITH ELECTRICITY PRODUCTION ON AN HOURLY BASIS , IF THE17
	355	+	TECHNOLOGY IS AVAILABLE;18
	356	+	(B) IDENTIFYING THE APPLICABLE ENERGY SOURCE , IF THE19
	357	+	INVESTOR-OWNED UTILITY IS REPORTING THE ENERGY SOURCE AS20
	358	+	RESULTING IN ZERO EMISSIONS FOR CLEAN HYDROGEN PRODUCTION AND21
	359	+	DEMONSTRATING THAT THE ELECTRICITY USED TO PRODUCE CLEAN22
	360	+	HYDROGEN COMES FROM RENEWABLE ENERGY THAT WOULD OTHERWISE23
	361	+	HAVE BEEN CURTAILED OR NOT DELIVERED TO LOAD OR FROM NEW ZERO24
	362	+	CARBON GENERATION THAT BEGAN PRODUCTION NO MORE THAN25
	363	+	THIRTY-SIX MONTHS BEFORE THE START OF THE OPERATIONS OF THE26
	364	+	ELECTROLYZER; AND27
	365	+	1281
	366	+	-12- (C) THE DELIVERABILITY OF RENEWABLE ENERGY USED BY THE1
	367	+	ELECTROLYZER INTO THE SAME LOAD BALANCING AREA AS THE2
	368	+	ELECTROLYZER.3
	369	+	(II) THE COMMISSION SHALL MAKE THE RULES ADOPTED BY THE4
	370	+	COMMISSION PURSUANT TO SUBSECTION (3)(a)(II) OF THIS SECTION5
	371	+	EFFECTIVE NO LATER THAN JANUARY 1, 2028, OR NO LATER THAN ONE6
	372	+	YEAR AFTER THE DEPLOYMENT OF HYDROGEN ELECTROLYZERS IN THE7
	373	+	STATE EXCEEDS TWO HUNDRED MEGAWATTS , WHICHEVER IS EARLIER.8
	374	+	(c) (I) IN DEVELOPING THE RULES PURSUANT TO SUBSECTION (3)(a)9
	375	+	OF THIS SECTION, THE COMMISSION SHALL CONSIDER THE POTENTIAL FOR10
	376	+	FEDERAL FUNDING FOR CLEAN HYDROGEN PROJECTS AND THAT CLEAN11
	377	+	HYDROGEN PROJECTS IMPLEMENTED BY INVESTOR-OWNED UTILITIES MAY12
	378	+	BE NECESSARY TO SECURE FEDERAL FUNDING .13
	379	+	(II) IN DEVELOPING THE RULES PURSUANT TO SUBSECTION14
	380	+	(3)(a)(II) OF THIS SECTION, THE COMMISSION SHALL CONSIDER WHAT15
	381	+	INFORMATION AND MARKET MECHANISMS ARE NECESSARY AND16
	382	+	AVAILABLE FOR HYDROGEN PRODUCERS TO COMPLY WITH THE RULES. IF17
	383	+	THE FEDERAL INTERNAL REVENUE SERVICE ISSUES GUIDANCE THAT MEETS18
	384	+	OR EXCEEDS THE RULES, THE COMMISSION SHALL ADOPT RULES THAT19
	385	+	COMPLY WITH THE GUIDANCE .20
	386	+	(d) IF THE OFFICE FILES THE NOTICE DESCRIBED IN SUBSECTION21
	387	+	(3)(a) OF THIS SECTION WITH THE COMMISSION, THE COMMISSION SHALL22
	388	+	COORDINATE WITH THE OFFICE TO DETERMINE AN APPROPRIATE DATE FOR23
	389	+	THE ADOPTION OF THE RULES DESCRIBED IN SUBSECTION (3)(a) OF THIS24
	390	+	SECTION.25
	391	+	(4) (a) THE COMMISSION SHALL ALLOW AN INVESTOR-OWNED26
	392	+	UTILITY TO PRESENT TO THE COMMISSION A STAND-ALONE APPLICATION27
	393	+	1281
	394	+	-13- FOR A CLEAN HYDROGEN PROJECT FOR WHICH AN INVESTOR-OWNED1
	395	+	UTILITY HAS APPLIED FOR FEDERAL FUNDING AS PART OF A HYDROGEN HUB2
	396	+	PROJECT AT ANY TIME BEFORE JUNE 1, 2024, UNLESS THE OFFICE FILES A3
	397	+	NOTICE WITH THE COMMISSION STATING THAT THE FEDERAL DEPARTMENT4
	398	+	OF ENERGY HAS EXTENDED OR OTHERWISE ALTERED THE DEADLINE5
	399	+	REGARDING FUNDING FOR A HYDROGEN HUB PROJECT . THE APPLICATION6
	400	+	MAY ONLY ADDRESS ELEMENTS OF A HYDROGEN HUB PROJECT THAT ARE7
	401	+	NOT LOCATED IN THE DENVER METROPOLITAN AREA .8
	402	+	(b) THE APPLICATION PROCESS DESCRIBED IN SUBSECTION (4)(a)9
	403	+	OF THIS SECTION MUST BE CONSISTENT WITH THE REQUIREMENTS OF10
	404	+	SUBSECTION (3) OF THIS SECTION. AN INVESTOR-OWNED UTILITY SEEKING11
	405	+	APPROVAL OF A CLEAN HYDROGEN PROJECT PURSUANT TO SUBSECTION12
	406	+	(4)(a) OF THIS SECTION SHALL ALSO DEMONSTRATE THAT A13
	407	+	TIME-SENSITIVE REVIEW OF THE INVESTOR-OWNED UTILITY'S APPLICATION14
	408	+	IS NECESSARY BASED ON THE TIMING REQUIREMENTS FOR OBTAINING15
	409	+	NECESSARY FUNDING, NOT INCLUDING TAX CREDITS , FROM, OR A16
	410	+	PARTNERSHIP WITH, A FEDERAL OR STATE AGENCY FOR THE ACQUISITION17
	411	+	OF NECESSARY FACILITIES AND THAT THE FUNDING OR PARTNERSHIP18
	412	+	CANNOT BE ACCOMPLISHED THROUGH ANY PENDING OR FUTURE ELECTRIC19
	413	+	RESOURCE PLANNING PROCESS .20
	414	+	(c) IF THE FUNDING OR PARTNERSHIP DESCRIBED IN SUBSECTION21
	415	+	(4)(b) OF THIS SECTION, INCLUDING ANY ASSOCIATED CONTRACTS ,22
	416	+	AWARDS, OR TIMING REQUIREMENTS, ALLOWS FOR COMPETITIVE23
	417	+	SOLICITATIONS AS PART OF THE DEVELOPMENT OF THE CLEAN HYDROGEN24
	418	+	PROJECT, THE COMMISSION MAY DIRECT THE INVESTOR-OWNED UTILITY TO25
	419	+	ISSUE A SOLICITATION TO ACQUIRE THE NECESSARY PROJECTS OR26
	420	+	FACILITIES FOR THE CLEAN HYDROGEN PROJECT. THE COMMISSION SHALL27
	421	+	1281
	422	+	-14- REVIEW ANY APPROVED COMPETITIVE SOLICITATION PROCESS AND BIDS1
	423	+	RECEIVED PRIOR TO THE INVESTOR-OWNED UTILITY'S ACQUISITION OF THE2
	424	+	NECESSARY FACILITIES FOR THE CLEAN HYDROGEN PROJECT . AN3
	425	+	INVESTOR-OWNED UTILITY THAT FILED THE CLEAN HYDROGEN PROJECT4
	426	+	APPLICATION PURSUANT TO SUBSECTION (4)(a) OF THIS SECTION MAY5
	427	+	SUBMIT A BID IN RESPONSE TO A SOLICITATION PURSUANT TO THIS6
	428	+	SUBSECTION (4)(c).7
	429	+	(5) (a) IN REVIEWING, APPROVING, DENYING, OR AMENDING AN8
	430	+	APPLICATION PURSUANT TO THIS SECTION, THE COMMISSION SHALL9
	431	+	CONSIDER, AT A MINIMUM:10
	432	+	(I) WHETHER IT IS IN THE PUBLIC INTEREST FOR AN11
	433	+	INVESTOR-OWNED UTILITY TO INVEST IN THE ELEMENTS OF THE CLEAN12
	434	+	HYDROGEN PROJECT AS SET FORTH IN THE APPLICATION ;13
	435	+	(II) THE POTENTIAL CONTRIBUTION OF THE CLEAN HYDROGEN14
	436	+	PROJECT IN MEETING THE GREENHOUSE GAS EMISSION REDUCTION GOALS15
	437	+	DESCRIBED IN SECTION 25-7-102 (2)(g), INCLUDING LIFECYCLE16
	438	+	GREENHOUSE GAS EMISSIONS RATES ;17
	439	+	(III) THE IMPACTS OF THE CLEAN HYDROGEN PROJECT COMPARED18
	440	+	TO ALTERNATIVE PROJECTS, INCLUDING:19
	441	+	(A) RATE AND BILL IMPACTS;20
	442	+	(B) THE IMPACTS ON RATE STABILITY; AND21
	443	+	(C) ANY OTHER IMPACTS IDENTIFIED BY THE COMMISSION22
	444	+	PURSUANT TO THIS SUBSECTION (5)(a);23
	445	+	(III) THE USE OF COMPETITIVE SOLICITATIONS, IF ANY;24
	446	+	(IV) IF THE CLEAN HYDROGEN PROJECT CONTEMPLATES THE SALE25
	447	+	OF CLEAN HYDROGEN, THE POTENTIAL FOR CROSS-SUBSIDIZATION AND26
	448	+	COST SHIFTING ACROSS RATE CLASSES;27
	449	+	1281
	450	+	-15- (V) THE IMPACTS OF THE CLEAN HYDROGEN PROJECT ON THE1
	451	+	UTILITY WORKFORCE IN THE STATE, INCLUDING THE USE OF "BEST VALUE"2
	452	+	EMPLOYMENT METRICS PURSUANT TO SECTION 40-2-129;3
	453	+	(VI) THE IMPACTS OF THE CLEAN HYDROGEN PROJECT ON A4
	454	+	COMMUNITY'S TAX BASE AND REVENUES;5
	455	+	(VII) THE USES OF THE CLEAN HYDROGEN PRODUCED BY THE6
	456	+	CLEAN HYDROGEN PROJECT , WITH A PREFERENCE FOR QUALIFIED USES;7
	457	+	(VIII) THE PUBLIC HEALTH AND SAFETY IMPACTS OF THE CLEAN8
	458	+	HYDROGEN PROJECT; AND9
	459	+	(IX) THE AVAILABILITY OF FEDERAL FUNDING FOR THE CLEAN10
	460	+	HYDROGEN PROJECT.11
	461	+	(b) THE COMMISSION SHALL REVIEW ANY CLEAN HYDROGEN12
	462	+	PROJECT APPLICATION SUBMITTED PURSUANT TO THIS SECTION IN13
	463	+	ACCORDANCE WITH ANY APPLICABLE ELECTRIC RESOURCE PLANNING14
	464	+	RULES.15
	465	+	(c) IN REVIEWING, APPROVING, DENYING, OR AMENDING AN16
	466	+	APPLICATION PURSUANT TO THIS SECTION, IF THE CLEAN HYDROGEN17
	467	+	PROJECT IS PROPOSED TO BE SITED IN AN AREA THAT WOULD AFFECT A18
	468	+	DISPROPORTIONATELY IMPACTED COMMUNITY , THE COMMISSION SHALL19
	469	+	WEIGH THE APPLICANT'S CUMULATIVE IMPACTS ANALYSIS AND DETERMINE20
	470	+	WHETHER, ON BALANCE, THE CLEAN HYDROGEN PROJECT WILL HAVE A21
	471	+	POSITIVE EFFECT ON THE DISPROPORTIONATELY IMPACTED COMMUNITY.22
	472	+	ANY PROPOSAL THAT WILL HAVE NET NEGATIVE CUMULATIVE IMPACTS ON23
	473	+	ANY DISPROPORTIONATELY IMPACTED COMMUNITY MUST BE DENIED. THE24
	474	+	COMMISSION'S DETERMINATION MUST INCLUDE A PLAIN LANGUAGE25
	475	+	SUMMARY OF ITS DETERMINATION .26
	476	+	(6) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE27
	477	+	1281
	478	+	-16- CONTRARY, AN INVESTOR-OWNED UTILITY SHALL PROVIDE NOTICE TO THE1
	479	+	COMMISSION OF ANY APPLICATION FOR FEDERAL FUNDING AS PART OF A2
	480	+	HYDROGEN HUB PROJECT, INCLUDING:3
	481	+	(a) ANY HYDROGEN HUB PROJECT MILESTONES ;4
	482	+	(b) A DESCRIPTION OF ANY DEADLINES FOR SUBMISSION OF5
	483	+	MATERIALS TO SUPPORT THE APPLICATION, INCLUDING WHETHER ANY6
	484	+	ADDITIONAL FILINGS WILL BE REQUIRED; AND7
	485	+	(c) TO THE EXTENT KNOWN OR CONSISTENT WITH ANY8
	486	+	REQUIREMENTS OR LIMITATIONS OF THE FEDERAL DEPARTMENT OF ENERGY9
	487	+	OR ANY RELATED JOINT MEMORANDUMS OF UNDERSTANDING OR OTHER10
	488	+	CONTRACTS ENTERED INTO BY THE INVESTOR -OWNED UTILITY AND THE11
	489	+	STATE, INFORMATION REGARDING WHEN FUNDING AWARDS WILL BE12
	490	+	DETERMINED.13
	491	+	(7) (a) AN INVESTOR-OWNED UTILITY THAT OPERATES A CLEAN14
	492	+	HYDROGEN PROJECT APPROVED PURS UANT TO THIS SECTION SHALL SUBMIT15
	493	+	TO THE COMMISSION AN ANNUAL REPORT THAT SHOWS :16
	494	+	(I) THE LIFECYCLE GREENHOUSE GAS EMISSIONS RATES FROM THE17
	495	+	CLEAN HYDROGEN PROJECT ;18
	496	+	(II) THE GREENHOUSE GAS EMISSIONS FROM THE CLEAN HYDROGEN19
	497	+	PROJECT;20
	498	+	(III) ANY EMISSION OF OTHER AIR POLLUTANTS FROM THE CLEAN21
	499	+	HYDROGEN PROJECT;22
	500	+	(IV) THE WATER USE OF THE CLEAN HYDROGEN PROJECT ;23
	501	+	(V) PRODUCTION VOLUMES AND SALES OF HYDROGEN, INCLUDING24
	502	+	TYPES OF CUSTOMERS AND USES;25
	503	+	(VI) PROJECT DEVELOPMENT AND COST UPDATES FOR PROJECTS26
	504	+	WITH COST RECOVERY FROM RATEPAYERS ; AND27
	505	+	1281
	506	+	-17- (VII) NET CUMULATIVE IMPACT UPDATES FOR PROJECTS LOCATED1
	507	+	IN DISPROPORTIONATELY IMPACTED COMMUNITIES .2
	508	+	(b) IF THE CLEAN HYDROGEN PROJECT INCLUDES THE PRODUCTION3
	509	+	AND THE USE OR CONSUMPTION OF CLEAN HYDROGEN BY THE4
	510	+	INVESTOR-OWNED UTILITY, THE INVESTOR-OWNED UTILITY SHALL REPORT5
	511	+	THE LIFECYCLE GREENHOUSE GAS EMISSIONS RATES OF THE CLEAN6
	512	+	HYDROGEN PROJECT SEPARATELY BY EACH PRODUCTION FACILITY AND7
	513	+	USE.8
	514	+	(c) THE ANNUAL REPORT MUST INCLUDE INFORMATION THAT9
	515	+	ALLOWS THE OFFICE TO MAKE THE VERIFICATIONS REQUIRED PURSUANT TO10
	516	+	SECTION 39-22-549 (4)(a)(II).11
	517	+	SECTION 3. In Colorado Revised Statutes, add 39-22-549 as12
	518	+	follows:13
	519	+	39-22-549. Clean hydrogen tax credit - qualified uses - tax14
	520	+	preference performance statement - definitions - legislative15
	521	+	declaration - repeal. (1) (a) I
	522	+	N ACCORDANCE WITH SECTION 39-21-30416
	523	+	(1),
	524	+	WHICH REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE17
	525	+	TO INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A18
	526	+	STATUTORY LEGISLATIVE DECLARATION , THE GENERAL ASSEMBLY FINDS19
	527	+	AND DECLARES THAT THE PURPOSE OF THE TAX CREDIT PROVIDED IN THIS20
	528	+	SECTION IS TO INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS .21
	529	+	S
	530	+	PECIFICALLY, THE TAX EXPENDITURE IS INTENDED TO PROVIDE TAX22
	531	+	RELIEF FOR CERTAIN BUSINESSES OR INDIVIDUALS FOR PURPOSES OF23
	532	+	ENCOURAGING THEM TO ENGAGE IN CERTAIN QUALIFIED USES OF CLEAN24
	533	+	HYDROGEN.25
	534	+	(b) T
	535	+	HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL26
	536	+	MEASURE THE EFFECTIVENESS OF THE CREDIT IN ACHIEVING THE PURPOSE27
	537	+	1281
	538	+	-18- SPECIFIED IN SUBSECTION (1)(a) OF THIS SECTION BASED ON THE1
	539	+	INFORMATION REQUIRED TO BE MAINTAINED BY AND REPORTED TO THE2
	540	+	STATE AUDITOR BY THE OFFICE PURSUANT TO SUBSECTION (4)(b) OF THIS3
	541	+	SECTION.4
	542	+	(2) A
	543	+	S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE5
	544	+	REQUIRES:6
81	545		(a) "C
82		-	LEAN HYDROGEN" MEANS:
83		-	(I) G
84		-	REEN HYDROGEN, AS DEFINED IN SECTION 40-3.2-108 (2)(j); OR
85		-	(II) HYDROGEN THAT IS PRODUCED THROUGH A PROCESS THAT
86		-	RESULTS IN LIFECYCLE GREENHOUSE GAS EMISSIONS RATES THAT ARE
87		-	WITHIN THE LIFECYCLE GREENHOUSE GAS EMISSIONS RATE RANGES SET
88		-	FORTH IN
89		-	26 U.S.C. SECS. 45V (b)(2)(C) AND 45V (b)(2)(D), AS AMENDED.
90		-	(b) (I) "C
91		-	LEAN HYDROGEN PROJECT " MEANS A PROJECT THAT
92		-	RESULTS IN THE PRODUCTION OF CLEAN HYDROGEN BY AN INVESTOR
93		-	-OWNED
94		-	UTILITY
95		-	.
96		-	(II) "C
97		-	LEAN HYDROGEN PROJECT " MAY INCLUDE PIPELINES ,
98		-	ELECTROLYZERS, ENVIRONMENTAL CONTROLS , MONITORING EQUIPMENT ,
99		-	PAGE 3-HOUSE BILL 23-1281 DEDICATED RENEWABLE ENERGY SOURCES FOR ELECTROLYSIS , THE
100		-	PURCHASE OF CLEAN HYDROGEN FROM THIRD PARTIES
101		-	, AND AN UPGRADE TO
102		-	A TURBINE AT AN ELECTRIC GENERATING STATION IF THAT UPGRADE IS PART
103		-	OF A STATE OR FEDERAL APPLICATION FOR A REGIONAL CLEAN HYDROGEN
104		-	HUB UNDER
105		-	42 U.S.C. SEC. 16161a.
106		-	(c) "C
107		-	UMULATIVE IMPACTS" MEANS THE INCREMENTAL EFFECTS OF
108		-	A CLEAN HYDROGEN PROJECT ON THE ENVIRONMENT
109		-	, INCLUDING EFFECTS ON
110		-	AIR QUALITY
111		-	, WATER QUALITY, WATER RESOURCE AVAILABILITY, CLIMATE,
112		-	AND PUBLIC HEALTH, THAT A CLEAN HYDROGEN PROJECT HAS WHEN ADDED
113		-	TO THE IMPACTS FROM OTHER PAST
114		-	, PRESENT, AND REASONABLY
115		-	FORESEEABLE FUTURE DEVELOPMENT OF ANY TYPE ON THE RELEVANT AREA
116		-	,
117		-	INCLUDING AN AIRSHED OR WATERSHED , AS DETERMINED BY RULE BY THE
118		-	COMMISSION
119		-	, OR ON A DISPROPORTIONATELY IMPACTED COMMUNITY .
120		-	(d) "D
121		-	ISPROPORTIONATELY IMPACTED COMMUNITY " HAS THE
122		-	MEANING SET FORTH IN SECTION
123		-	24-4-109 (2)(b)(II).
124		-	(e) (I) "H
125		-	ARD TO DECARBONIZE END USE" MEANS INDUSTRIAL USES
126		-	THAT INCLUDE
127		-	:
	546	+	LEAN HYDROGEN" HAS THE MEANING SET FORTH IN SECTION7
	547	+	40-2-138 (1)(a).8
	548	+	(b) "D
	549	+	EPARTMENT" MEANS THE DEPARTMENT OF REVENUE .9
	550	+	(c) "HARD TO DECARBONIZE END USE" HAS THE MEANING SET10
	551	+	FORTH IN SECTION 40-2-138 (1)(e).11
	552	+	(d) "L
	553	+	IFECYCLE GREENHOUSE GAS EMISSIONS RATE " MEANS12
	554	+	LIFECYCLE GREENHOUSE GAS EMISSIONS , AS DEFINED IN 26 U.S.C. SEC.13
	555	+	45V (c)(1)(A),
	556	+	AS AMENDED, MEASURED IN ACCORDANCE WITH ANY14
	557	+	APPLICABLE FEDERAL INTERNAL REVENUE SERVICE REGULATIONS OR15
	558	+	GUIDANCE, SUBJECT TO THE RULES ADOPTED BY THE PUBLIC UTILITIES16
	559	+	COMMISSION PURSUANT TO SECTION 40-2-138 (3)(a)(I).17
	560	+	(e) "O
	561	+	FFICE" MEANS THE COLORADO ENERGY OFFICE CREATED IN18
	562	+	SECTION 24-38.5-101.19 (f) "QUALIFIED USE" HAS THE MEANING SET FORTH IN SECTION20
	563	+	40-2-138 (1)(i).21
	564	+	(g) "T
	565	+	AXPAYER" MEANS A PERSON SUBJECT TO TAX PURSUANT TO22
	566	+	THIS ARTICLE 22 OR A PERSON OR POLITICAL SUBDIVISION OF THE STATE23
	567	+	THAT IS EXEMPT FROM TAX PURSUANT TO SECTION 39-22-112 (1).24
	568	+	(h) "T
	569	+	IER ONE GREENHOUSE GAS EMISSIONS RATE " MEANS A25
	570	+	QUALIFIED USE OF HYDROGEN THAT RESULTS IN LIFECYCLE GREENHOUSE26
	571	+	GAS EMISSIONS RATES THAT ARE WITHIN THE RANGE SET FORTH IN 2627
	572	+	1281
	573	+	-19- U.S.C. SEC. 45V (b)(2)(D), AS AMENDED.1
	574	+	(i) "T
	575	+	IER TWO GREENHOUSE GAS EMISSIONS RATE " MEANS A2
	576	+	QUALIFIED USE OF HYDROGEN THAT RESULTS IN LIFECYCLE GREENHOUSE3
	577	+	GAS EMISSIONS RATES THAT ARE WITHIN THE RANGE SET FORTH IN 264
	578	+	U.S.C.
	579	+	SEC. 45V (b)(2)(C), AS AMENDED.5
	580	+	(3) (a) S
	581	+	UBJECT TO THE LIMITATIONS SET FORTH IN SUBSECTION6
	582	+	(3)(b)
	583	+	OF THIS SECTION, FOR INCOME TAX YEARS COMMENCING ON OR7
	584	+	AFTER JANUARY 1, 2024, BUT BEFORE JANUARY 1, 2033, A TAXPAYER IS8
	585	+	ALLOWED A CREDIT AGAINST THE INCOME TAXES IMPOSED BY THIS9
	586	+	ARTICLE 22 IN AN AMOUNT EQUAL TO:10
	587	+	(I) O
	588	+	NE DOLLAR PER KILOGRAM OF CLEAN HYDROGEN USED FOR A11
	589	+	QUALIFIED USE THAT RESULTS IN A TIER ONE GREENHOUSE GAS EMISSIONS12
	590	+	RATE IN THE INCOME TAX YEAR; OR13
	591	+	(II)
	592	+	THIRTY-THREE CENTS PER KILOGRAM OF CLEAN HYDROGEN14
	593	+	USED FOR A QUALIFIED USE THAT RESULTS IN A TIER TWO GREENHOUSE15
	594	+	GAS EMISSIONS RATE IN THE INCOME TAX YEAR .16
	595	+	(b) I
	596	+	N ORDER TO CLAIM THE CREDIT , THE TAXPAYER MUST17
	597	+	ANNUALLY APPLY FOR AND RECEIVE A TAX CREDIT CERTIFICATE FROM THE18
	598	+	OFFICE PURSUANT TO SUBSECTION (4) OF THIS SECTION. IF THE OFFICE19
	599	+	DETERMINES THAT AN APPLICANT IS NOT ENTITLED TO A TAX CREDIT20
	600	+	CERTIFICATE UNDER THIS SECTION , THE OFFICE SHALL NOTIFY THE21
	601	+	APPLICANT OF ITS DISAPPROVAL IN WRITING.22
	602	+	(c) (I) F
	603	+	OR INCOME TAX YEARS COMMENCING ON AND AFTER23
	604	+	J
	605	+	ANUARY 1, 2024, BUT BEFORE JANUARY 1, 2026,
	606	+	AND NOT BEFORE THE24
	607	+	PUBLIC UTILITIES COMMISSION ADOPTS RULES PURSUANT TO SECTION25
	608	+	40-2-138 (3)(a)(I), THE OFFICE SHALL NOT ISSUE A TAX CREDIT26
	609	+	CERTIFICATE TO A TAXPAYER INDICATING ELIGIBILITY FOR A TAX CREDIT27
	610	+	1281
	611	+	-20- FOR AN AMOUNT EXCEEDING ONE MILLION DOLLARS IN A TAX YEAR .1
	612	+	(II) F
	613	+	OR INCOME TAX YEARS COMMENCING ON AND AFTER2
	614	+	J
	615	+	ANUARY 1, 2026, BUT BEFORE JANUARY 1, 2029, THE OFFICE SHALL NOT3
	616	+	ISSUE A TAX CREDIT CERTIFICATE TO A TAXPAYER INDICATING ELIGIBILITY4
	617	+	FOR A TAX CREDIT FOR AN AMOUNT EXCEEDING FIVE HUNDRED THOUSAND5
	618	+	DOLLARS IN A TAX YEAR.6
	619	+	(III) F
	620	+	OR INCOME TAX YEARS COMMENCING ON AND AFTER7
	621	+	J
	622	+	ANUARY 1, 2029, BUT BEFORE JANUARY 1, 2033, THE OFFICE SHALL NOT8
	623	+	ISSUE A TAX CREDIT CERTIFICATE TO A TAXPAYER INDICATING ELIGIBILITY9
	624	+	FOR A TAX CREDIT FOR AN AMOUNT EXCEEDING TWO HUNDRED FIFTY10
	625	+	THOUSAND DOLLARS IN A TAX YEAR .11
	626	+	(4) (a)
	627	+	(I) A TAXPAYER SHALL SUBMIT AN APPLICATION TO THE12
	628	+	OFFICE FOR A TAX CREDIT CERTIFICATE TO CLAIM THE CREDIT ALLOWED BY13
	629	+	THIS SECTION ON A FORM AND IN A MANNER PRESCRIBED BY THE OFFICE .14
	630	+	T
	631	+	HE APPLICATION MUST INCLUDE INFORMATION TO ALLOW THE OFFICE TO15
	632	+	MAKE A DETERMINATION THAT THE USE IS A QUALIFIED
	633	+	USE AND THAT THE16
	634	+	HYDROGEN USED MEETS THE DEFINITION OF CLEAN HYDROGEN PURSUANT17
	635	+	TO SUBSECTION (2)(a) OF THIS SECTION AND TO VERIFY THE AMOUNT FOR18
	636	+	WHICH THE TAX CREDIT CERTIFICATE IS APPLIED. A TAXPAYER IS ENTITLED19
	637	+	TO RECEIVE ONE TAX CREDIT CERTIFICATE PER INCOME TAX YEAR .20
	638	+	(II) THE APPLICATION DESCRIBED IN SUBSECTION (4)(a)(I) OF THIS21
	639	+	SECTION MUST ALSO INCLUDE VERIFICATION FROM THE HYDROGEN22
	640	+	PRODUCER PASSED TO THE USER AT THE POINT OF SALE THAT THE23
	641	+	HYDROGEN USED MEETS THE DEFINITION OF CLEAN HYDROGEN PURSUANT24
	642	+	TO SUBSECTION (2)(a) OF THIS SECTION.25
	643	+	(b) (I) T
	644	+	HE OFFICE SHALL MAINTAIN A DATABASE OF ANY26
	645	+	INFORMATION DETERMINED NECESSARY BY THE OFFICE TO EVALUATE THE27
	646	+	1281
	647	+	-21- EFFECTIVENESS OF THE INCOME TAX CREDIT ALLOWED IN THIS SECTION IN1
	648	+	MEETING THE PURPOSE SET FORTH IN SUBSECTION (1)(a) OF THIS SECTION2
	649	+	AND SHALL PROVIDE SUCH INFORMATION , AND ANY OTHER INFORMATION3
	650	+	THAT MAY BE NEEDED, IF AVAILABLE, TO THE STATE AUDITOR AS PART OF4
	651	+	THE STATE AUDITOR'S EVALUATION OF THIS TAX EXPENDITURE REQUIRED5
	652	+	BY SECTION 39-21-305.6
	653	+	(II) T
	654	+	HE OFFICE SHALL, IN A SUFFICIENTLY TIMELY MANNER TO7
	655	+	ALLOW THE DEPARTMENT TO PROCESS RETURNS CLAIMING THE INCOME8
	656	+	TAX CREDIT ALLOWED IN THIS SECTION, PROVIDE THE DEPARTMENT WITH9
	657	+	AN ELECTRONIC REPORT FOR THE PRECEDING TAX YEAR LISTING EACH10
	658	+	TAXPAYER TO WHICH THE OFFICE ISSUED A TAX CREDIT CERTIFICATE AND11
	659	+	THAT INCLUDES THE FOLLOWING INFORMATION :12
128	660		(A) T
129		-	HE GENERATION OF HEAT OF AT LEAST ONE HUNDRED FIFTY
130		-	DEGREES
131		-	CELSIUS FOR INDUSTRIAL PURPOSES; AND
132		-	(B) ADDITION AS FEEDSTOCK FOR INDUSTRIAL PURPOSES , INCLUDING
133		-	MANUFACTURE OF STEEL
134		-	, AMMONIA, FERTILIZER, AND CHEMICALS.
135		-	(II) "H
136		-	ARD TO DECARBONIZE END USE " DOES NOT INCLUDE THE
137		-	DIRECT USE OF HYDROGEN FOR RESIDENTIAL OR COMMERCIAL HEATING
138		-	.
139		-	(f) "H
140		-	YDROGEN HUB PROJECT" MEANS A PROJECT THAT IS PART OF AN
141		-	APPLICATION FOR FEDERAL FUNDING BY A PARTNERSHIP OF REGULATED
142		-	UTILITIES
143		-	, PRIVATE PARTNERS, AND COMPANIES AND MAY INCLUDE STATE OR
144		-	FEDERAL GOVERNMENT AGENCIES IN COLLABORATION WITH OTHER STATES
145		-	THAT IS DESIGNED TO UTILIZE AVAILABLE FEDERAL FUNDS AND TAX CREDITS
146		-	,
147		-	WHICH MAY INCLUDE THE PRODUCTION , TRANSPORT, AND USE OF CLEAN
148		-	HYDROGEN
149		-	.
150		-	(g) "L
151		-	IFECYCLE GREENHOUSE GAS EMISSIONS RATE " MEANS
152		-	LIFECYCLE GREENHOUSE GAS EMISSIONS
153		-	, AS DEFINED IN 26 U.S.C. SEC. 45V
154		-	PAGE 4-HOUSE BILL 23-1281 (c)(1)(A), AS AMENDED, MEASURED IN ACCORDANCE WITH ANY APPLICABLE
155		-	FEDERAL INTERNAL REVENUE SERVICE REGULATIONS OR GUIDANCE
156		-	.
157		-	(h) "O
158		-	FFICE" MEANS THE COLORADO ENERGY OFFICE CREATED IN
159		-	SECTION
160		-	24-38.5-101.
161		-	(i) "Q
162		-	UALIFIED USE" MEANS THE USE OF CLEAN HYDROGEN IN THE
163		-	STATE FOR
164		-	:
165		-	(I) H
166		-	ARD TO DECARBONIZE END USES;
167		-	(II) T
168		-	HE OPERATION OF A HEAVY-DUTY MOTOR VEHICLE, AS DEFINED
169		-	IN SECTION
170		-	25-7.5-102 (11); AND
171		-	(III) AVIATION.
172		-	(2) T
173		-	HE COMMISSION SHALL INITIATE AN INVESTIGATORY
174		-	PROCEEDING
175		-	, NO LATER THAN SEPTEMBER 1, 2023, TO CONSIDER:
176		-	(a) T
177		-	HE POTENTIAL FOR CLEAN HYDROGEN PROJECTS OPERATED BY
178		-	INVESTOR
179		-	-OWNED UTILITIES SUBJECT TO REGULATION BY THE COMMISSION
180		-	TO CONTRIBUTE TO MEETING THE GREENHOUSE GAS EMISSION REDUCTION
181		-	GOALS DESCRIBED IN SECTION
182		-	25-7-102 (2)(g), INCLUDING LIFECYCLE
183		-	GREENHOUSE GAS EMISSIONS RATES
184		-	, WITH A PREFERENCE FOR QUALIFIED
185		-	USES
186		-	;
	661	+	HE TAXPAYER'S NAME;13
187	662		(B) T
188		-	HE IMPACT OF CLEAN HYDROGEN PROJECTS ON THE EMISSION OF
189		-	AIR POLLUTANTS OTHER THAN GREENHOUSE GASES AND HUMAN HEALTH
190		-	;
191		-	(c) P
192		-	OTENTIAL MARKETS FOR CLEAN HYDROGEN IN COLORADO;
193		-	(d) T
194		-	HE IMPACT OF CLEAN HYDROGEN PRODUCTION ON WATER
195		-	QUALITY AND QUANTITY IN
196		-	COLORADO;
197		-	(e) T
198		-	HE POTENTIAL IMPACTS OF PIPELINE LEAKAGE AND BEST
199		-	PRACTICES FOR MITIGATION
200		-	;
201		-	(f) T
202		-	HE POTENTIAL FOR THE DEVELOPMENT OF CLEAN HYDROGEN TO
203		-	HELP CREATE OR SUSTAIN JOBS IN
204		-	COLORADO, INCLUDING UTILITY JOBS;
205		-	PAGE 5-HOUSE BILL 23-1281 (g) THE COST, CAPABILITIES, AND MARKET AVAILABILITY OF CLEAN
206		-	HYDROGEN TECHNOLOGIES
207		-	, INCLUDING PIPELINE INVESTMENTS;
208		-	(h) T
209		-	HE APPROPRIATE ROLES FOR INVESTOR-OWNED UTILITIES IN THE
210		-	PRODUCTION
211		-	, SALE, OR USE OF CLEAN HYDROGEN, INCLUDING CONSIDERING
212		-	WHETHER COSTS MAY BE RECOVERED FROM RATEPAYERS
213		-	;
214		-	(i) T
215		-	HE POTENTIAL IMPACT OF INVESTOR -OWNED UTILITY
216		-	INVESTMENTS IN A CLEAN HYDROGEN PROJECT ON RATEPAYERS
217		-	, INCLUDING
218		-	ON BILLS
219		-	, RATES, AND RATE STABILITY, AND OPTIONS FOR AVOIDING
220		-	POTENTIAL CROSS
221		-	-SUBSIDIZATION AND COST SHIFTING ACROSS RATE
222		-	CLASSES
223		-	;
224		-	(j) P
225		-	RINCIPLES AND REQUIREMENTS FOR ANY TARIFFS FOR THE SALE
226		-	OF CLEAN HYDROGEN TO THIRD PARTIES
227		-	, INCLUDING PRINCIPLES AND
228		-	REQUIREMENTS TO ENSURE THAT COSTS ARISING FROM THE DEVELOPMENT
229		-	,
230		-	PRODUCTION, TRANSPORT, AND DELIVERY OF THE CLEAN HYDROGEN UNDER
231		-	THOSE TARIFFS ARE NOT BORNE BY CUSTOMERS WHO DO NOT TAKE SERVICE
232		-	FROM THOSE TARIFFS
233		-	;
234		-	(k) T
235		-	HE PROCESS AND DATA NECESSARY AND AVAILABLE TO
236		-	IMPLEMENT A REQUIREMENT FOR THE ADOPTION OF METHODS FOR
237		-	:
238		-	(I) T
239		-	HE MEASUREMENT OF LIFECYCLE GREENHOUSE GAS EMISSIONS
240		-	RATES
241		-	, INCLUDING FOR HOURLY MATCHING OF ELECTRICITY USED ;
242		-	(II) T
243		-	HE TRACKING OF THE DEPLOYMENT OF NEW RENEWABLE
244		-	ENERGY RESOURCES OR USE OF CURTAILED RENEWABLE ENERGY TO MEET
245		-	ELECTRICITY REQUIREMENTS FOR PRODUCTION OF CLEAN HYDROGEN IN THE
246		-	SAME LOAD BALANCING AREA
247		-	; AND
248		-	(III) THE COMMISSION TO DETERMINE WHEN AT LEAST TWO HUNDRED
249		-	MEGAWATTS OF ELECTROLYZERS ARE OPERATIONAL IN THE STATE
250		-	;
251		-	(l) T
252		-	HE PROCESS AND DATA NECESSARY FOR AN INVESTOR -OWNED
253		-	UTILITY TO CONDUCT A CUMULATIVE IMPACT ANALYSIS OF A CLEAN
254		-	HYDROGEN PROJECT AND ANY PROCESS NECESSARY TO AVOID ADVERSE
255		-	CUMULATIVE IMPACTS ON DISPROPORTIONATELY IMPACTED COMMUNITIES
256		-	,
257		-	IF ANY, WHICH MAY INCLUDE THE COMMISSION CONSIDERING :
258		-	PAGE 6-HOUSE BILL 23-1281 (I) THE TIME FRAME OVER WHICH A CUMULATIVE IMPACT ANALYSIS
259		-	SHOULD BE CONDUCTED
260		-	;
261		-	(II) T
262		-	HE GEOGRAPHICAL SCOPE OF A CUMULATIVE IMPACT ANALYSIS ;
263		-	AND
264		-	(III) WHETHER THE CUMULATIVE IMPACT ANALYSIS SHOULD BE
265		-	COMPARED TO ALTERNATIVE PROJECTS
266		-	;
267		-	(m) R
268		-	EQUIREMENTS FOR ANY APPLICATION FOR A CLEAN HYDROGEN
269		-	PROJECT
270		-	, IN ADDITION TO THE REQUIREMENTS DESCRIBED IN SUBSECTION
271		-	(3)(a)(VI) OF THIS SECTION AND SUBJECT TO SUBSECTIONS (4) AND (5) OF
272		-	THIS SECTION
273		-	;
274		-	(n) A
275		-	NY DATA OR INFORMATION NECESSARY OR AVAILABLE TO
276		-	EVALUATE A CLEAN HYDROGEN PROJECT AGAINST ALTERNATIVE PROJECTS
277		-	,
278		-	INCLUDING HOW TO MEASURE, TRACK, AND REPORT LIFECYCLE GREENHOUSE
279		-	GAS EMISSIONS RATES
280		-	, CUMULATIVE IMPACTS , AND THE CUMULATIVE
281		-	IMPACTS AND INDIVIDUAL IMPACTS ON JOBS
282		-	, LOCAL ECONOMIC BENEFITS,
283		-	AND WATER USE BY CLEAN HYDROGEN PROJECTS UNDER THE COMMISSION 'S
284		-	JURISDICTION
285		-	;
286		-	(o) O
287		-	PPORTUNITIES TO ENCOURAGE NON -UTILITY PRODUCTION OF
288		-	CLEAN HYDROGEN IN
289		-	COLORADO, INCLUDING OPPORTUNITIES FOR AN
290		-	INVESTOR
291		-	-OWNED UTILITY TO PROPOSE A TARIFF FOR THE SALE OF
292		-	RENEWABLE ENERGY THAT WOULD OTHERWISE BE CURTAILED
293		-	; AND
294		-	(p) ANY OTHER RELEVANT ISSUES THAT THE COMMISSION
295		-	DETERMINES ARE NECESSARY TO CONSIDER
296		-	.
297		-	(3) (a) N
298		-	O LATER THAN DECEMBER 1, 2024, UNLESS THE OFFICE FILES
299		-	A NOTICE WITH THE COMMISSION STATING THAT THE FEDERAL DEPARTMENT
300		-	OF ENERGY HAS EXTENDED OR OTHERWISE ALTERED THE DEADLINE
301		-	REGARDING FUNDING FOR A HYDROGEN HUB PROJECT
302		-	, THE COMMISSION
303		-	SHALL ADOPT RULES THAT
304		-	:
305		-	(I) U
306		-	NLESS THE COMMISSION DETERMINES THAT INVESTOR -OWNED
307		-	UTILITIES SHOULD NOT DEVELOP CLEAN HYDROGEN PROJECTS FOR COST
308		-	RECOVERY FROM RATEPAYERS
309		-	, ESTABLISH REQUIREMENTS FOR THE
310		-	PRESENTATION OF A CLEAN HYDROGEN PROJECT TO THE COMMISSION FOR
311		-	PAGE 7-HOUSE BILL 23-1281 THE COMMISSION'S APPROVAL;
312		-	(II) E
313		-	STABLISH REQUIREMENTS FOR LIFECYCLE GREENHOUSE GAS
314		-	EMISSIONS RATE ACCOUNTING FOR CLEAN HYDROGEN PROJECTS
315		-	;
316		-	(III) A
317		-	DDRESS THE APPROPRIATE ROLE OF INVESTOR -OWNED
318		-	UTILITIES IN THE PRODUCTION
319		-	, SALE, AND USE OF CLEAN HYDROGEN ,
320		-	INCLUDING WHETHER AND HOW COSTS MAY BE RECOVERED FROM
321		-	RATEPAYERS AND APPROPRIATE TREATMENT OF REVENUES FROM CLEAN
322		-	HYDROGEN SALES
323		-	;
324		-	(IV) A
325		-	DDRESS HOW INVESTOR -OWNED UTILITIES MAY USE
326		-	COMPETITIVE SOLICITATIONS IN A CLEAN HYDROGEN PROJECT AND ANY
327		-	LIMITATIONS FOR THE USE OF COMPETITIVE SOLICITATIONS TO DEVELOP THE
328		-	CLEAN HYDROGEN PROJECT
329		-	;
330		-	(V) E
331		-	STABLISH A REQUIREMENT THAT ANY PLANNED OR POTENTIAL
332		-	USE FOR THE CLEAN HYDROGEN IN BUILDINGS OR GAS DISTRIBUTION
333		-	SYSTEMS OF AN INVESTOR
334		-	-OWNED UTILITY BE PROPOSED TO AND APPROVED
335		-	BY THE COMMISSION THROUGH A CLEAN HEAT PLAN
336		-	, AS DEFINED IN SECTION
337		-	40-3.2-108 (2)(b); AND
338		-	(VI) ADDRESS WHAT IS REQUIRED IN AN APPLICATION BY AN
339		-	INVESTOR
340		-	-OWNED UTILITY FOR A CLEAN HYDROGEN PROJECT , SUBJECT TO
341		-	SUBSECTIONS
342		-	(4) AND (5) OF THIS SECTION, INCLUDING:
343		-	(A) A
344		-	COMPARISON OF A CLEAN HYDROGEN PROJECT TO
345		-	ALTERNATIVE PROJECTS
346		-	, INCLUDING AN ANALYSIS OF THE COSTS AND
347		-	BENEFITS OF THE CLEAN HYDROGEN PROJECT COMPARED TO ALTERNATIVE
348		-	PROJECTS
349		-	;
350		-	(B) A
351		-	DESCRIPTION OF HOW THE INVESTOR -OWNED UTILITY WILL
352		-	MEASURE AND TRACK THE ANNUAL AND CUMULATIVE LIFECYCLE
353		-	GREENHOUSE GAS EMISSIONS RATES AND THE EMISSION OF OTHER AIR
354		-	POLLUTANTS IN ACCORDANCE WITH THE RULES ADOPTED PURSUANT TO
355		-	SUBSECTION
356		-	(3)(a)(II) OF THIS SECTION;
357		-	(C) A
358		-	DESCRIPTION OF HOW THE INVESTOR -OWNED UTILITY WILL:
359		-	M
360		-	INIMIZE THE LIFECYCLE GREENHOUSE GAS EMISSIONS RATES OF THE CLEAN
361		-	HYDROGEN PROJECT
362		-	; CONDUCT LEAK DETECTION THROUGHOUT THE LIFE OF
363		-	PAGE 8-HOUSE BILL 23-1281 THE CLEAN HYDROGEN PROJECT ; AND CONDUCT A CUMULATIVE IMPACT
364		-	ANALYSIS OF THE CLEAN HYDROGEN PROJECT
365		-	;
366		-	(D) A
367		-	N ASSESSMENT OF THE ANNUAL WATER VOLUME THAT WILL BE
368		-	USED IN THE CLEAN HYDROGEN PROJECT
369		-	, INCLUDING THE SOURCE OF WATER
370		-	TO BE USED
371		-	;
372		-	(E) A
373		-	DESCRIPTION OF ANY PLANNED USES, INCLUDING POTENTIAL
374		-	END USES BY THE INVESTOR
375		-	-OWNED UTILITY'S CUSTOMERS, OF THE CLEAN
376		-	HYDROGEN PRODUCED THROUGH THE CLEAN HYDROGEN PROJECT
377		-	, WITH A
378		-	PREFERENCE FOR QUALIFIED USES
379		-	;
380		-	(F) A
381		-	DESCRIPTION OF ANY PLANNED SALES OF CLEAN HYDROGEN TO
382		-	NON
383		-	-UTILITY CUSTOMERS, WITH A PREFERENCE FOR QUALIFIED USES;
384		-	(G) A
385		-	DESCRIPTION OF THE PROPOSED METHOD OF COST RECOVERY
386		-	FOR THE CLEAN HYDROGEN PROJECT
387		-	, INCLUDING INFORMATION REGARDING
388		-	WHICH RATE CLASSES WILL COVER THE COSTS OF THE CLEAN HYDROGEN
389		-	PROJECT
390		-	;
391		-	(H) A
392		-	DESCRIPTION OF THE TOTAL REVENUE REQUIREMENT FOR THE
393		-	CLEAN HYDROGEN PROJECT
394		-	;
395		-	(I) A
396		-	DESCRIPTION OF THE RATE AND BILL IMPACTS OF THE CLEAN
397		-	HYDROGEN PROJECT
398		-	;
399		-	(J) A
400		-	DESCRIPTION OF ANY TARIFFS FOR THE SALE OF CLEAN
401		-	HYDROGEN PRODUCED BY THE CLEAN HYDROGEN PROJECT
402		-	;
403		-	(K) A
404		-	PROPOSAL FOR THE ALLOCATION OF REVENUES RECEIVED
405		-	FROM THE SALE OF CLEAN HYDROGEN PRODUCED BY THE CLEAN HYDROGEN
406		-	PROJECT TO NON
407		-	-UTILITY CUSTOMERS AMONG CUSTOMERS AND THE
408		-	INVESTOR
409		-	-OWNED UTILITY, INCLUDING WHICH PARTY BEARS THE RISK THAT
410		-	THE AMOUNT OF REVENUE ANTICIPATED FROM THE CLEAN HYDROGEN
411		-	PROJECT IS NOT ULTIMATELY RECEIVED
412		-	;
413		-	(L) A
414		-	CUMULATIVE IMPACT ANALYSIS FRAMEWORK ; AND
415		-	(M) IF THE INVESTOR-OWNED UTILITY PLANS TO USE A COMPETITIVE
416		-	SOLICITATION PROCESS AS PART OF THE CLEAN HYDROGEN PROJECT
417		-	, A
418		-	PAGE 9-HOUSE BILL 23-1281 DESCRIPTION OF HOW THE PLANNED COMPETITIVE SOLICITATION PROCESS
419		-	WILL BE USED AND IN WHAT CIRCUMSTANCES THE PROCESS WILL BE USED
420		-	.
421		-	(b) (I) T
422		-	HE RULES ADOPTED BY THE COMMISSION PURSUANT TO
423		-	SUBSECTION
424		-	(3)(a)(II) OF THIS SECTION MUST INCLUDE REQUIREMENTS FOR :
425		-	(A) T
426		-	HE MATCHING OF ELECTROLYZER ENERGY CONSUMPTION WITH
427		-	ELECTRICITY PRODUCTION ON AN HOURLY BASIS
428		-	, IF THE TECHNOLOGY IS
429		-	AVAILABLE
430		-	;
431		-	(B) I
432		-	DENTIFYING THE APPLICABLE ENERGY SOURCE , IF THE
433		-	INVESTOR
434		-	-OWNED UTILITY IS REPORTING THE ENERGY SOURCE AS RESULTING
435		-	IN ZERO EMISSIONS FOR CLEAN HYDROGEN PR ODUCTION AND
436		-	DEMONSTRATING THAT THE ELECTRICITY USED TO PRODUCE CLEAN
437		-	HYDROGEN COMES FROM RENEWABLE ENERGY THAT WOULD OTHERWISE
438		-	HAVE BEEN CURTAILED OR NOT DELIVERED TO LOAD OR FROM NEW ZERO
439		-	CARBON GENERATION THAT BEGAN PRODUCTION NO MORE THAN THIRTY
440		-	-SIX
441		-	MONTHS BEFORE THE START OF THE OPERATIONS OF THE ELECTROLYZER
442		-	;
443		-	AND
444		-	(C) THE DELIVERABILITY OF RENEWABLE ENERGY USED BY THE
445		-	ELECTROLYZER INTO THE SAME LOAD BALANCING AREA AS THE
446		-	ELECTROLYZER
447		-	.
448		-	(II) T
449		-	HE COMMISSION SHALL MAKE THE RULES ADOPTED BY THE
450		-	COMMISSION PURSUANT TO SUBSECTION
451		-	(3)(a)(II) OF THIS SECTION
452		-	EFFECTIVE NO LATER THAN
453		-	JANUARY 1, 2028, OR NO LATER THAN ONE YEAR
454		-	AFTER THE DEPLOYMENT OF HYDROGEN ELECTROLYZERS IN THE STATE
455		-	EXCEEDS TWO HUNDRED MEGAWATTS
456		-	, WHICHEVER IS EARLIER.
457		-	(c) (I) I
458		-	N DEVELOPING THE RULES PURSUANT TO SUBSECTION (3)(a)
459		-	OF THIS SECTION, THE COMMISSION SHALL CONSIDER THE POTENTIAL FOR
460		-	FEDERAL FUNDING FOR CLEAN HYDROGEN PROJECTS AND THAT CLEAN
461		-	HYDROGEN PROJECTS IMPLEMENTED BY INVESTOR
462		-	-OWNED UTILITIES MAY BE
463		-	NECESSARY TO SECURE FEDERAL FUNDING
464		-	.
465		-	(II) I
466		-	N DEVELOPING THE RULES PURSUANT TO SUBSECTION (3)(a)(II)
467		-	OF THIS SECTION, THE COMMISSION SHALL CONSIDER WHAT INFORMATION
468		-	AND MARKET MECHANISMS ARE NECESSARY AND AVAILABLE FOR HYDROGEN
469		-	PRODUCERS TO COMPLY WITH THE RULES
470		-	. IF THE FEDERAL INTERNAL
471		-	PAGE 10-HOUSE BILL 23-1281 REVENUE SERVICE ISSUES GUIDANCE THAT MEETS OR EXCEEDS THE RULES ,
472		-	THE COMMISSION SHALL ADOPT RULES THAT COMPLY WITH THE GUIDANCE .
473		-	(d) I
474		-	F THE OFFICE FILES THE NOTICE DESCRIBED IN SUBSECTION (3)(a)
475		-	OF THIS SECTION WITH THE COMMISSION , THE COMMISSION SHALL
476		-	COORDINATE WITH THE OFFICE TO DETERMINE AN APPROPRIATE DATE FOR
477		-	THE ADOPTION OF THE RULES DESCRIBED IN SUBSECTION
478		-	(3)(a) OF THIS
479		-	SECTION
480		-	.
481		-	(4) (a) T
482		-	HE COMMISSION SHALL ALLOW AN INVESTOR -OWNED
483		-	UTILITY TO PRESENT TO THE COMMISSION A STAND
484		-	-ALONE APPLICATION FOR
485		-	A CLEAN HYDROGEN PROJECT FOR WHICH AN INVESTOR
486		-	-OWNED UTILITY HAS
487		-	APPLIED FOR FEDERAL FUNDING AS PART OF A HYDROGEN HUB PROJECT AT
488		-	ANY TIME BEFORE
489		-	JUNE 1, 2024, UNLESS THE OFFICE FILES A NOTICE WITH
490		-	THE COMMISSION STATING THAT THE FEDERAL DEPARTMENT OF ENERGY HAS
491		-	EXTENDED OR OTHERWISE ALTERED THE DEADLINE REGARDING FUNDING FOR
492		-	A HYDROGEN HUB PROJECT
493		-	. THE APPLICATION MAY ONLY ADDRESS
494		-	ELEMENTS OF A HYDROGEN HUB PROJECT THAT ARE NOT LOCATED IN THE
495		-	DENVER METROPOLITAN AREA .
496		-	(b) T
497		-	HE APPLICATION PROCESS DESCRIBED IN SUBSECTION (4)(a) OF
498		-	THIS SECTION MUST BE CONSISTENT WITH THE REQUIREMENTS OF
499		-	SUBSECTION
500		-	(3) OF THIS SECTION. AN INVESTOR-OWNED UTILITY SEEKING
501		-	APPROVAL OF A CLEAN HYDROGEN PROJECT PURS UANT TO SUBSECTION
502		-	(4)(a)
503		-	OF THIS SECTION SHALL ALSO DEMONSTRATE THAT A TIME -SENSITIVE
504		-	REVIEW OF THE INVESTOR
505		-	-OWNED UTILITY'S APPLICATION IS NECESSARY
506		-	BASED ON THE TIMING REQUIREMENTS FOR OBTAINING NECESSARY FUNDING
507		-	,
508		-	NOT INCLUDING TAX CREDITS, FROM, OR A PARTNERSHIP WITH, A FEDERAL OR
509		-	STATE AGENCY FOR THE ACQUISITION OF NECESSARY FACILITIES AND THAT
510		-	THE FUNDING OR PARTNERSHIP CANNOT BE ACCOMPLISHED THROUGH ANY
511		-	PENDING OR FUTURE ELECTRIC RESOURCE PLANNING PROCESS
512		-	.
513		-	(c) I
514		-	F THE FUNDING OR PARTNERSHIP DESCRIBED IN SUBSECTION
515		-	(4)(b) OF THIS SECTION, INCLUDING ANY ASSOCIATED CONTRACTS , AWARDS,
516		-	OR TIMING REQUIREMENTS, ALLOWS FOR COMPETITIVE SOLICITATIONS AS
517		-	PART OF THE DEVELOPMENT OF THE CLEAN HYDROGEN PROJECT
518		-	, THE
519		-	COMMISSION MAY DIRECT THE INVESTOR
520		-	-OWNED UTILITY TO ISSUE A
521		-	SOLICITATION TO ACQUIRE THE NECESSARY PROJECTS OR FACILITIES FOR THE
522		-	CLEAN HYDROGEN PROJECT
523		-	. THE COMMISSION SHALL REVIEW ANY
524		-	APPROVED COMPETITIVE SOLICITATION PROCESS AND BIDS RECEIVED PRIOR
525		-	PAGE 11-HOUSE BILL 23-1281 TO THE INVESTOR-OWNED UTILITY'S ACQUISITION OF THE NECESSARY
526		-	FACILITIES FOR THE CLEAN HYDROGEN PROJECT
527		-	. AN INVESTOR-OWNED
528		-	UTILITY THAT FILED THE CLEAN HYDROGEN PROJECT APPLICATION PURS UANT
529		-	TO SUBSECTION
530		-	(4)(a) OF THIS SECTION MAY SUBMIT A BID IN RESPONSE TO
531		-	A SOLICITATION PURSUANT TO THIS SUBSECTION
532		-	(4)(c).
533		-	(5) (a) I
534		-	N REVIEWING, APPROVING, DENYING, OR AMENDING AN
535		-	APPLICATION PURSUANT TO THIS SECTION
536		-	, THE COMMISSION SHALL
537		-	CONSIDER
538		-	, AT A MINIMUM:
539		-	(I) W
540		-	HETHER IT IS IN THE PUBLIC INTEREST FOR AN INVESTOR-OWNED
541		-	UTILITY TO INVEST IN THE ELEMENTS OF THE CLEAN HYDROGEN PROJECT AS
542		-	SET FORTH IN THE APPLICATION
543		-	;
544		-	(II) T
545		-	HE POTENTIAL CONTRIBUTION OF THE CLEAN HYDROGEN
546		-	PROJECT IN MEETING THE GREENHOUSE GAS EMISSION REDUCTION GOALS
547		-	DESCRIBED IN SECTION
548		-	25-7-102 (2)(g), INCLUDING LIFECYCLE GREENHOUSE
549		-	GAS EMISSIONS RATES
550		-	;
	663	+	HE AMOUNT OF THE INCOME TAX CREDIT THAT THE14
	664	+	CERTIFICATE INDICATES THE TAXPAYER IS ELIGIBLE TO CLAIM ; AND15
	665	+	(C) T
	666	+	HE TAXPAYER'S SOCIAL SECURITY NUMBER OR THE16
	667	+	TAXPAYER'S COLORADO ACCOUNT NUMBER AND FEDERAL EMPLOYER17
	668	+	IDENTIFICATION NUMBER.18
551	669		(III) T
552		-	HE IMPACTS OF THE CLEAN HYDROGEN PROJECT COMPARED TO
553		-	ALTERNATIVE PROJECTS
554		-	, INCLUDING:
555		-	(A) R
556		-	ATE AND BILL IMPACTS;
557		-	(B) T
558		-	HE IMPACTS ON RATE STABILITY; AND
559		-	(C) ANY OTHER IMPACTS IDENTIFIED BY THE COMMISSION PURSUANT
560		-	TO THIS SUBSECTION
561		-	(5)(a);
562		-	(IV) T
563		-	HE USE OF COMPETITIVE SOLICITATIONS, IF ANY;
564		-	(V) I
565		-	F THE CLEAN HYDROGEN PROJECT CONTEMPLATES THE SALE OF
566		-	CLEAN HYDROGEN
567		-	, THE POTENTIAL FOR CROSS-SUBSIDIZATION AND COST
568		-	SHIFTING ACROSS RATE CLASSES
569		-	;
570		-	(VI) T
571		-	HE IMPACTS OF THE CLEAN HYDROGEN PROJECT ON THE
572		-	UTILITY WORKFORCE IN THE STATE
573		-	, INCLUDING THE USE OF "BEST VALUE"
574		-	EMPLOYMENT METRICS PURSUANT TO SECTION 40-2-129;
575		-	(VII) T
576		-	HE IMPACTS OF THE CLEAN HYDROGEN PROJECT ON A
577		-	PAGE 12-HOUSE BILL 23-1281 COMMUNITY'S TAX BASE AND REVENUES;
578		-	(VIII) T
579		-	HE USES OF THE CLEAN HYDROGEN PRODUCED BY THE CLEAN
580		-	HYDROGEN PROJECT
581		-	, WITH A PREFERENCE FOR QUALIFIED USES;
582		-	(IX) T
583		-	HE PUBLIC HEALTH AND SAFETY IMPACTS OF THE CLEAN
584		-	HYDROGEN PROJECT
585		-	; AND
586		-	(X) THE AVAILABILITY OF FEDERAL FUNDING FOR THE CLEAN
587		-	HYDROGEN PROJECT
588		-	.
589		-	(b) T
590		-	HE COMMISSION SHALL REVIEW ANY CLEAN HYDROGEN PROJECT
591		-	APPLICATION SUBMITTED PURSUANT TO THIS SECTION IN ACCORDANCE WITH
592		-	ANY APPLICABLE ELECTRIC RESOURCE PLANNING RULES
593		-	.
594		-	(c) I
595		-	N REVIEWING, APPROVING, DENYING, OR AMENDING AN
596		-	APPLICATION PURSUANT TO THIS SECTION
597		-	, IF THE CLEAN HYDROGEN PROJECT
598		-	IS PROPOSED TO BE SITED IN AN AREA THAT WOULD AFFECT A
599		-	DISPROPORTIONATELY IMPACTED COMMUNITY
600		-	, THE COMMISSION SHALL
601		-	WEIGH THE APPLICANT
602		-	'S CUMULATIVE IMPACTS ANALYSIS AND DETERMINE
603		-	WHETHER
604		-	, ON BALANCE, THE CLEAN HYDROGEN PROJECT WILL HAVE A
605		-	POSITIVE EFFECT ON THE DISPROPORTIONATELY IMPACTED COMMUNITY
606		-	. ANY
607		-	PROPOSAL THAT WILL HAVE NET NEGATIVE CUMULATIVE IMPACTS ON ANY
608		-	DISPROPORTIONATELY IMPACTED COMMUNITY MUST BE DENIED
609		-	. THE
610		-	COMMISSION
611		-	'S DETERMINATION MUST INCLUDE A PLAIN LANGUAGE
612		-	SUMMARY OF ITS DETERMINATION
613		-	.
614		-	(6) N
615		-	OTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE
616		-	CONTRARY
617		-	, AN INVESTOR-OWNED UTILITY SHALL PROVIDE NOTICE TO THE
618		-	COMMISSION OF ANY APPLICATION FOR FEDERAL FUNDING AS PART OF A
619		-	HYDROGEN HUB PROJECT
620		-	, INCLUDING:
621		-	(a) A
622		-	NY HYDROGEN HUB PROJECT MILESTONES ;
623		-	(b) A
624		-	DESCRIPTION OF ANY DEADLINES FOR SUBMISSION OF
625		-	MATERIALS TO SUPPORT THE APPLICATION
626		-	, INCLUDING WHETHER ANY
627		-	ADDITIONAL FILINGS WILL BE REQUIRED
628		-	; AND
629		-	(c) TO THE EXTENT KNOWN OR CONSISTENT WITH ANY
630		-	REQUIREMENTS OR LIMITATIONS OF THE FEDERAL DEPARTMENT OF ENERGY
631		-	PAGE 13-HOUSE BILL 23-1281 OR ANY RELATED JOINT MEMORANDUMS OF UNDERSTANDING OR OTHER
632		-	CONTRACTS ENTERED INTO BY THE INVESTOR
633		-	-OWNED UTILITY AND THE
634		-	STATE
635		-	, INFORMATION REGARDING WHEN FUNDING AWARDS WILL BE
636		-	DETERMINED
637		-	.
638		-	(7) (a) A
639		-	N INVESTOR-OWNED UTILITY THAT OPERATES A CLEAN
640		-	HYDROGEN PROJECT APPROVED PURSUANT TO THIS SECTION SHALL SUBMIT
641		-	TO THE COMMISSION AN ANNUAL REPORT THAT SHOWS
642		-	:
643		-	(I) T
644		-	HE LIFECYCLE GREENHOUSE GAS EMISSIONS RATES FROM THE
645		-	CLEAN HYDROGEN PROJECT
646		-	;
647		-	(II) T
648		-	HE GREENHOUSE GAS EMISSIONS FROM THE CLEAN HYDROGEN
649		-	PROJECT
650		-	;
651		-	(III) A
652		-	NY EMISSION OF OTHER AIR POLLUTANTS FROM THE CLEAN
653		-	HYDROGEN PROJECT
654		-	;
655		-	(IV) T
656		-	HE WATER USE OF THE CLEAN HYDROGEN PROJECT ;
657		-	(V) P
658		-	RODUCTION VOLUMES AND SALES OF HYDROGEN , INCLUDING
659		-	TYPES OF CUSTOMERS AND USES
660		-	;
661		-	(VI) P
662		-	ROJECT DEVELOPMENT AND COST UPDATES FOR PROJECTS WITH
663		-	COST RECOVERY FROM RATEPAYERS
664		-	; AND
665		-	(VII) NET CUMULATIVE IMPACT UPDATES FOR PROJECTS LOCATED IN
666		-	DISPROPORTIONATELY IMPACTED COMMUNITIES
667		-	.
668		-	(b) I
669		-	F THE CLEAN HYDROGEN PROJECT INCLUDES THE PRODUCTION
670		-	AND THE USE OR CONSUMPTION OF CLEAN HYDROGEN BY THE
671		-	INVESTOR
672		-	-OWNED UTILITY, THE INVESTOR-OWNED UTILITY SHALL REPORT
673		-	THE LIFECYCLE GREENHOUSE GAS EMISSIONS RATES OF THE CLEAN
674		-	HYDROGEN PROJECT SEPARATELY BY EACH PRODUCTION FACILITY AND USE
675		-	.
676		-	(c) T
677		-	HE ANNUAL REPORT MUST INCLUDE INFORMATION THAT ALLOWS
678		-	THE OFFICE TO MAKE THE VERIFICATIONS REQUIRED PURSUANT TO SECTION
679		-	39-22-557 (4)(a)(II).
680		-	SECTION 3. In Colorado Revised Statutes, add 39-22-557 as
681		-	PAGE 14-HOUSE BILL 23-1281 follows:
682		-	39-22-557. Clean hydrogen tax credit - qualified uses - tax
683		-	preference performance statement - definitions - legislative declaration
684		-	- repeal. (1) (a) I
685		-	N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH
686		-	REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE
687		-	A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY
688		-	LEGISLATIVE DECLARATION
689		-	, THE GENERAL ASSEMBLY FINDS AND DECLARES
690		-	THAT THE PURPOSE OF THE TAX CREDIT PROVIDED IN THIS SECTION IS TO
691		-	INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS
692		-	. SPECIFICALLY, THE
693		-	TAX EXPENDITURE IS INTENDED TO PROVIDE TAX RELIEF FOR CERTAIN
694		-	BUSINESSES OR INDIVIDUALS FOR PURPOSES OF ENCOURAGING THEM TO
695		-	ENGAGE IN CERTAIN QUALIFIED USES OF CLEAN HYDROGEN
696		-	.
697		-	(b) T
698		-	HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL
699		-	MEASURE THE EFFECTIVENESS OF THE CREDIT IN ACHIEVING THE PURPOSE
700		-	SPECIFIED IN SUBSECTION
701		-	(1)(a) OF THIS SECTION BASED ON THE
702		-	INFORMATION REQUIRED TO BE MAINTAINED BY AND REPORTED TO THE
703		-	STATE AUDITOR BY THE OFFICE PURSUANT TO SUBSECTION
704		-	(4)(b) OF THIS
705		-	SECTION
706		-	.
707		-	(2) A
708		-	S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
709		-	REQUIRES
710		-	:
711		-	(a) "C
712		-	LEAN HYDROGEN" HAS THE MEANING SET FORTH IN SECTION
713		-	40-2-138 (1)(a).
714		-	(b) "D
715		-	EPARTMENT" MEANS THE DEPARTMENT OF REVENUE .
716		-	(c) "H
717		-	ARD TO DECARBONIZE END USE" HAS THE MEANING SET FORTH
718		-	IN SECTION
719		-	40-2-138 (1)(e).
720		-	(d) "L
721		-	IFECYCLE GREENHOUSE GAS EMISSIONS RATE " MEANS
722		-	LIFECYCLE GREENHOUSE GAS EMISSIONS
723		-	, AS DEFINED IN 26 U.S.C. SEC. 45V
724		-	(c)(1)(A),
725		-	AS AMENDED, MEASURED IN ACCORDANCE WITH ANY APPLICABLE
726		-	FEDERAL INTERNAL REVENUE SERVICE REGULATIONS OR GUIDANCE
727		-	, SUBJECT
728		-	TO THE RULES ADOPTED BY THE PUBLIC UTILITIES COMMISSION PURSUANT TO
729		-	SECTION
730		-	40-2-138 (3)(a)(I).
731		-	(e) "O
732		-	FFICE" MEANS THE COLORADO ENERGY OFFICE CREATED IN
733		-	PAGE 15-HOUSE BILL 23-1281 SECTION 24-38.5-101.
734		-	(f) "Q
735		-	UALIFIED USE" HAS THE MEANING SET FORTH IN SECTION
736		-	40-2-138 (1)(i).
737		-	(g) "T
738		-	AXPAYER" MEANS A PERSON SUBJECT TO TAX PURSUANT TO
739		-	THIS ARTICLE
740		-	22 OR A PERSON OR POLITICAL SUBDIVISION OF THE STATE
741		-	THAT IS EXEMPT FROM TAX PURSUANT TO SECTION
742		-	39-22-112 (1).
743		-	(h) "T
744		-	IER ONE GREENHOUSE GAS EMISSIONS RATE " MEANS A
745		-	QUALIFIED USE OF HYDROGEN THAT RESULTS IN LIFECYCLE GREENHOUSE GAS
746		-	EMISSIONS RATES THAT ARE WITHIN THE RANGE SET FORTH IN
747		-	26 U.S.C. SEC.
748		-	45V (b)(2)(D),
749		-	AS AMENDED.
750		-	(i) "T
751		-	IER TWO GREENHOUSE GAS EMISSIONS RATE " MEANS A
752		-	QUALIFIED USE OF HYDROGEN THAT RESULTS IN LIFECYCLE GREENHOUSE GAS
753		-	EMISSIONS RATES THAT ARE WITHIN THE RANGE SET FORTH IN
754		-	26 U.S.C. SEC.
755		-	45V (b)(2)(C),
756		-	AS AMENDED.
757		-	(3) (a) S
758		-	UBJECT TO THE LIMITATIONS SET FORTH IN SUBSECTION
759		-	(3)(b) OF THIS SECTION, FOR INCOME TAX YEARS COMMENCING ON OR AFTER
760		-	JANUARY 1, 2024, BUT BEFORE JANUARY 1, 2033, A TAXPAYER IS ALLOWED
761		-	A CREDIT AGAINST THE INCOME TAXES IMPOSED BY THIS ARTICLE
762		-	22 IN AN
763		-	AMOUNT EQUAL TO
764		-	:
765		-	(I) O
766		-	NE DOLLAR PER KILOGRAM OF CLEAN HYDROGEN USED FOR A
767		-	QUALIFIED USE THAT RESULTS IN A TIER ONE GREENHOUSE GAS EMISSIONS
768		-	RATE IN THE INCOME TAX YEAR
769		-	; OR
770		-	(II) THIRTY-THREE CENTS PER KILOGRAM OF CLEAN HYDROGEN USED
771		-	FOR A QUALIFIED USE THAT RESULTS IN A TIER TWO GREENHOUSE GAS
772		-	EMISSIONS RATE IN THE INCOME TAX YEAR
773		-	.
774		-	(b) I
775		-	N ORDER TO CLAIM THE CREDIT, THE TAXPAYER MUST ANNUALLY
776		-	APPLY FOR AND RECEIVE A TAX CREDIT CERTIFICATE FROM THE OFFICE
777		-	PURSUANT TO SUBSECTION
778		-	(4) OF THIS SECTION. IF THE OFFICE DETERMINES
779		-	THAT AN APPLICANT IS NOT ENTITLED TO A TAX CREDIT CERTIFICATE UNDER
780		-	THIS SECTION
781		-	, THE OFFICE SHALL NOTIFY THE APPLICANT OF ITS
782		-	DISAPPROVAL IN WRITING
783		-	.
784		-	PAGE 16-HOUSE BILL 23-1281 (c) (I) FOR INCOME TAX YEARS COMMENCING ON AND AFTER
785		-	JANUARY 1, 2024, BUT BEFORE JANUARY 1, 2026, AND NOT BEFORE THE
786		-	PUBLIC UTILITIES COMMISSION ADOPTS RULES PURSUANT TO SECTION
787		-	40-2-138 (3)(a)(I), THE OFFICE SHALL NOT ISSUE A TAX CREDIT CERTIFICATE
788		-	TO A TAXPAYER INDICATING ELIGIBILITY FOR A TAX CREDIT FOR AN AMOUNT
789		-	EXCEEDING ONE MILLION DOLLARS IN A TAX YEAR
790		-	.
791		-	(II) F
792		-	OR INCOME TAX YEARS COMMENCING ON AND AFTER JANUARY
793		-	1, 2026, BUT BEFORE JANUARY 1, 2029, THE OFFICE SHALL NOT ISSUE A TAX
794		-	CREDIT CERTIFICATE TO A TAXPAYER INDICATING ELIGIBILITY FOR A TAX
795		-	CREDIT FOR AN AMOUNT EXCEEDING FIVE HUNDRED THOUSAND DOLLARS IN
796		-	A TAX YEAR
797		-	.
798		-	(III) F
799		-	OR INCOME TAX YEARS COMMENCING ON AND AFTER JANUARY
800		-	1, 2029, BUT BEFORE JANUARY 1, 2033, THE OFFICE SHALL NOT ISSUE A TAX
801		-	CREDIT CERTIFICATE TO A TAXPAYER INDICATING ELIGIBILITY FOR A TAX
802		-	CREDIT FOR AN AMOUNT EXCEEDING TWO HUNDRED FIFTY THOUSAND
803		-	DOLLARS IN A TAX YEAR
804		-	.
805		-	(4) (a) (I) A
806		-	TAXPAYER SHALL SUBMIT AN APPLICATION TO THE
807		-	OFFICE FOR A TAX CREDIT CERTIFICATE TO CLAIM THE CREDIT ALLOWED BY
808		-	THIS SECTION ON A FORM AND IN A MANNER PRESCRIBED BY THE OFFICE
809		-	. THE
810		-	APPLICATION MUST INCLUDE INFORMATION TO ALLOW THE OFFICE TO MAKE
811		-	A DETERMINATION THAT THE USE IS A QUALIFIED USE AND THAT THE
812		-	HYDROGEN USED MEETS THE DEFINITION OF CLEAN HYDROGEN PURSUANT TO
813		-	SUBSECTION
814		-	(2)(a) OF THIS SECTION AND TO VERIFY THE AMOUNT FOR WHICH
815		-	THE TAX CREDIT CERTIFICATE IS APPLIED
816		-	. A TAXPAYER IS ENTITLED TO
817		-	RECEIVE ONE TAX CREDIT CERTIFICATE PER INCOME TAX YEAR
818		-	.
819		-	(II) T
820		-	HE APPLICATION DESCRIBED IN SUBSECTION (4)(a)(I) OF THIS
821		-	SECTION MUST ALSO INCLUDE VERIFICATION FROM THE HYDROGEN
822		-	PRODUCER PASSED TO THE USER AT THE POINT OF SALE THAT THE HYDROGEN
823		-	USED MEETS THE DEFINITION OF CLEAN HYDROGEN PURSUANT TO
824		-	SUBSECTION
825		-	(2)(a) OF THIS SECTION.
826		-	(b) (I) T
827		-	HE OFFICE SHALL MAINTAIN A DATABASE OF ANY
828		-	INFORMATION DETERMINED NECESSARY BY THE OFFICE TO EVALUATE THE
829		-	EFFECTIVENESS OF THE INCOME TAX CREDIT ALLOWED IN THIS SECTION IN
830		-	MEETING THE PURPOSE SET FORTH IN SUBSECTION
831		-	(1)(a) OF THIS SECTION
832		-	AND SHALL PROVIDE SUCH INFORMATION
833		-	, AND ANY OTHER INFORMATION
834		-	PAGE 17-HOUSE BILL 23-1281 THAT MAY BE NEEDED, IF AVAILABLE, TO THE STATE AUDITOR AS PART OF
835		-	THE STATE AUDITOR
836		-	'S EVALUATION OF THIS TAX EXPENDITURE REQUIRED BY
837		-	SECTION
838		-	39-21-305.
839		-	(II) T
840		-	HE OFFICE SHALL, IN A SUFFICIENTLY TIMELY MANNER TO
841		-	ALLOW THE DEPARTMENT TO PROCESS RETURNS CLAIMING THE INCOME TAX
842		-	CREDIT ALLOWED IN THIS SECTION
843		-	, PROVIDE THE DEPARTMENT WITH AN
844		-	ELECTRONIC REPORT FOR THE PRECEDING TAX YEAR LISTING EACH
845		-	TAXPAYER TO WHICH THE OFFICE ISSUED A TAX CREDIT CERTIFICATE AND
846		-	THAT INCLUDES THE FOLLOWING INFORMATION
847		-	:
848		-	(A) T
849		-	HE TAXPAYER'S NAME;
850		-	(B) T
851		-	HE AMOUNT OF THE INCOME TAX CREDIT THAT THE CERTIFICATE
852		-	INDICATES THE TAXPAYER IS ELIGIBLE TO CLAIM
853		-	; AND
854		-	(C) THE TAXPAYER'S SOCIAL SECURITY NUMBER OR THE TAXPAYER 'S
855		-	COLORADO ACCOUNT NUMBER AND FEDERAL EMPLOYER IDENTIFICATION
856		-	NUMBER
857		-	.
858		-	(III) T
859		-	HE OFFICE SHALL DEVELOP STANDARDS FOR THE QUALIFIED
860		-	USES FOR WHICH AN INCOME TAX CREDIT UNDER THIS SECTION IS ALLOWED
861		-	.
862		-	T
863		-	HE OFFICE SHALL POST THE STANDARDS ON THE OFFICE 'S WEBSITE.
	670	+	HE OFFICE SHALL DEVELOP STANDARDS FOR THE QUALIFIED19
	671	+	USES FOR WHICH AN INCOME TAX CREDIT UNDER THIS SECTION IS20
	672	+	ALLOWED. THE OFFICE SHALL POST THE STANDARDS ON THE OFFICE 'S21
	673	+	WEBSITE.22
864	674		(5) I
865		-	N ORDER TO CLAIM THE CREDIT AUTHORIZED BY THIS SECTION ,
866		-	A TAXPAYER SHALL FILE THE TAX CREDIT CERTIFICATE WITH THE
867		-	TAXPAYER
868		-	'S STATE INCOME TAX RETURN, AND, IF THE TAXPAYER IS EXEMPT
869		-	FROM TAX PURSUANT TO SECTION
870		-	39-22-112 (1), THE TAXPAYER SHALL FILE
871		-	A RETURN PURSUANT TO SECTION
872		-	39-22-601 (7)(b). THE AMOUNT OF THE
873		-	CREDIT THAT THE TAXPAYER MAY CLAIM PURSUANT TO THIS SECTION IS THE
874		-	AMOUNT STATED ON THE TAX CREDIT CERTIFICATE
875		-	.
	675	+	N ORDER TO CLAIM THE CREDIT AUTHORIZED BY THIS SECTION ,23
	676	+	A TAXPAYER SHALL FILE THE TAX CREDIT CERTIFICATE WITH THE24
	677	+	TAXPAYER'S STATE INCOME TAX RETURN , AND, IF THE TAXPAYER IS25
	678	+	EXEMPT FROM TAX PURSUANT TO SECTION 39-22-112 (1), THE TAXPAYER26
	679	+	SHALL FILE A RETURN PURSUANT TO SECTION 39-22-601 (7)(b). THE27
	680	+	1281
	681	+	-22- AMOUNT OF THE CREDIT THAT THE TAXPAYER MAY CLAIM PURSUANT TO1
	682	+	THIS SECTION IS THE AMOUNT STATED ON THE TAX CREDIT CERTIFICATE .2
876	683		(6) I
877		-	F AN INCOME TAX CREDIT AUTHORIZED IN THIS SECTION EXCEEDS
878		-	THE INCOME TAX DUE ON THE INCOME OF THE TAXPAYER FOR THE TAXABLE
879		-	YEAR
880		-	, THE EXCESS CREDIT MAY NOT BE CARRIED FORWARD AND MUST BE
881		-	REFUNDED TO THE TAXPAYER
882		-	.
883		-	(7) T
884		-	HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2036.
885		-	SECTION 4. Appropriation. (1) For the 2023-24 state fiscal year,
886		-	PAGE 18-HOUSE BILL 23-1281 $360,758 is appropriated to the department of reguatory agencies for use by
887		-	the public utilities commission. This appropriation is from the public
888		-	utilities commission fixed utility fund created in section 40-2-114 (1)(b)(II),
889		-	C.R.S. To implement this act, the department may use this appropriation as
890		-	follows:
891		-	(a) $241,532 for use by the public utilites commission for personal
892		-	services, which amount is based on an assumption that the commission will
893		-	require an additional 3.0 FTE;
894		-	(b) $24,060 for use by the public utilities commission for operating
895		-	expenses; and
896		-	(c) $95,166 for legal services.
897		-	(2) For the 2023-24 state fiscal year, $95,166 is appropriated to the
898		-	department of law. This appropriation is from reappropriated funds received
899		-	from the department of regulatory agencies under subsection (1)(c) of this
900		-	section and is based on an assumption that the department of law will
901		-	require an additional 0.5 FTE. To implement this act, the department of law
902		-	may use this appropriation to provide legal services for the department of
903		-	regulatory agencies.
904		-	(3) For the 2023-24 state fiscal year, $12,861 is appropriated to the
905		-	department of revenue for use by taxation services. This appropriation is
906		-	from the general fund. To implement this act, the division may use this
907		-	appropriation for the purchase of document management services.
908		-	(4) For the 2023-24 state fiscal year, $12,861 is appropriated to the
909		-	department of personnel. This appropriation is from reappropriated funds
910		-	received from the department of revenue under subsection (3) of this
911		-	section. To implement this act, the department of personnel may use this
912		-	appropriation to provide document management services for the department
913		-	of revenue.
914		-	SECTION 5. Act subject to petition - effective date. This act
915		-	takes effect at 12:01 a.m. on the day following the expiration of the
916		-	ninety-day period after final adjournment of the general assembly; except
917		-	that, if a referendum petition is filed pursuant to section 1 (3) of article V
918		-	of the state constitution against this act or an item, section, or part of this act
919		-	PAGE 19-HOUSE BILL 23-1281 within such period, then the act, item, section, or part will not take effect
920		-	unless approved by the people at the general election to be held in
921		-	November 2024 and, in such case, will take effect on the date of the official
922		-	declaration of the vote thereon by the governor.
923		-	____________________________ ____________________________
924		-	Julie McCluskie Steve Fenberg
925		-	SPEAKER OF THE HOUSE PRESIDENT OF
926		-	OF REPRESENTATIVES THE SENATE
927		-	____________________________ ____________________________
928		-	Robin Jones Cindi L. Markwell
929		-	CHIEF CLERK OF THE HOUSE SECRETARY OF
930		-	OF REPRESENTATIVES THE SENATE
931		-	APPROVED________________________________________
932		-	(Date and Time)
933		-	_________________________________________
934		-	Jared S. Polis
935		-	GOVERNOR OF THE STATE OF COLORADO
936		-	PAGE 20-HOUSE BILL 23-1281
	684	+	F AN INCOME TAX CREDIT AUTHORIZED IN THIS SECTION3
	685	+	EXCEEDS THE INCOME TAX DUE ON THE INCOME OF THE TAXPAYER FOR4
	686	+	THE TAXABLE YEAR, THE EXCESS CREDIT MAY NOT BE CARRIED FORWARD5
	687	+	AND MUST BE REFUNDED TO THE TAXPAYER .6 7
	688	+	(7) THIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2036.8
	689	+	SECTION 4. Appropriation. (1) For the 2023-24 state fiscal9
	690	+	year, $360,758 is appropriated to the department of reguatory agencies for10
	691	+	use by the public utilities commission. This appropriation is from the11
	692	+	public utilities commission fixed utility fund created in section 40-2-11412
	693	+	(1)(b)(II), C.R.S. To implement this act, the department may use this13
	694	+	appropriation as follows:14
	695	+	(a) $241,532 for use by the public utilites commission for personal15
	696	+	services, which amount is based on an assumption that the commission16
	697	+	will require an additional 3.0 FTE;17
	698	+	(b) $24,060 for use by the public utilities commission for18
	699	+	operating expenses; and19
	700	+	(c) $95,166 for legal services.20
	701	+	(2) For the 2023-24 state fiscal year, $95,166 is appropriated to21
	702	+	the department of law. This appropriation is from reappropriated funds22
	703	+	received from the department of regulatory agencies under subsection23
	704	+	(1)(c) of this section and is based on an assumption that the department24
	705	+	of law will require an additional 0.5 FTE. To implement this act, the25
	706	+	department of law may use this appropriation to provide legal services for26
	707	+	the department of regulatory agencies.27
	708	+	1281
	709	+	-23- (3) For the 2023-24 state fiscal year, $12,861 is appropriated to1
	710	+	the department of revenue for use by taxation services. This appropriation2
	711	+	is from the general fund. To implement this act, the division may use this3
	712	+	appropriation for the purchase of document management services.4
	713	+	(4) For the 2023-24 state fiscal year, $12,861 is appropriated to5
	714	+	the department of personnel. This appropriation is from reappropriated6
	715	+	funds received from the department of revenue under subsection (3) of7
	716	+	this section. To implement this act, the department of personnel may use8
	717	+	this appropriation to provide document management services for the9
	718	+	department of revenue.10
	719	+	SECTION 5. Act subject to petition - effective date. This act11
	720	+	takes effect at 12:01 a.m. on the day following the expiration of the12
	721	+	ninety-day period after final adjournment of the general assembly; except13
	722	+	that, if a referendum petition is filed pursuant to section 1 (3) of article V14
	723	+	of the state constitution against this act or an item, section, or part of this15
	724	+	act within such period, then the act, item, section, or part will not take16
	725	+	effect unless approved by the people at the general election to be held in17
	726	+	November 2024 and, in such case, will take effect on the date of the18
	727	+	official declaration of the vote thereon by the governor.19
	728	+	1281
	729	+	-24-