First Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 23-0213.01 Jennifer Berman x3286
SENATE BILL 23-016
Senate Committees House Committees
Transportation & Energy
A BILL FOR AN ACT
C
ONCERNING MEASURES TO PROMOTE REDUCTIONS IN GREENHOUSE101
GAS EMISSIONS IN COLORADO.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
Section 1 of the bill requires that, beginning in 2024, each
insurance company issued a certificate of authority to transact insurance
business that reports more than $100 million on its annual schedule T
filing with the National Association of Insurance Commissioners (NAIC)
must participate in and complete the NAIC's "Insurer Climate Risk
Disclosure Survey" or successor survey or reporting mechanism.
SENATE SPONSORSHIP
Hansen,
HOUSE SPONSORSHIP
McCormick and Sirota,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute. Section 2 requires the public employees' retirement association
(PERA) board, on or before June 1, 2024, to adopt proxy voting
procedures that ensure that the board's voting decisions align with, and
are supportive of, the statewide greenhouse gas (GHG) emission
reduction goals.
Section 3 requires PERA to include as part of its annual
investment stewardship report, which report is posted on the PERA
board's website, a description of climate-related investment risks,
impacts, and strategies.
Section 4 adds wastewater thermal energy equipment to the
definition of "pollution control equipment", which equipment may be
certified by the division of administration (division) in the department of
public health and environment (CDPHE). Similarly, section 5 adds
wastewater thermal energy to the definition of "clean heat resource",
which resource a gas distribution utility includes in its clean heat plan
filed with the public utilities commission.
Section 6 updates the statewide GHG emission reduction goals to
add a 65% reduction goal for 2035, an 80% reduction goal for 2040, and
a 90% reduction goal for 2045 when compared to 2005 GHG pollution
levels. Section 6 also increases the 2050 GHG emission reduction goal
from 90% of 2005 GHG pollution levels to 100%.
Section 7 gives the oil and gas conservation commission
(COGCC) authority over class VI injection wells used for sequestration
of GHG if the governor and COGCC determine, in accordance with a
study that the COGCC conducted in 2021, that the state has sufficient
resources to ensure the safe and effective regulation of the sequestration
of GHG. If the governor and the COGCC determine there are sufficient
resources, the COGCC may seek primacy under the federal "Safe
Drinking Water Act" and, when granted, may issue and enforce permits
for class VI injection wells. The COGCC shall require, as part of its
regulation of class VI injection wells, that operators of the wells maintain
adequate financial assurance until the COGCC approves the closure of a
class VI injection well site.
Section 8 establishes a state income tax credit in an amount equal
to 30% of the purchase price for new, electric-powered lawn equipment
for purchases made in income tax years 2024 through 2026. A seller of
new, electric-powered lawn equipment that demonstrates that it provided
a purchaser a 30% discount from the purchase price of new,
electric-powered lawn equipment may claim the tax credit.
Current law requires an electric retail utility (utility) to offer a net
metering credit as the means of purchasing output from a community
solar garden (CSG) located within the utility's service territory and
establishes the means of calculating the net metering credit. Section 9
maintains that calculation if the CSG indicates to the utility that the CSG's
subscribers' bill credits change annually. If the CSG indicates to the utility
SB23-016
-2- that the CSG's subscribers' bill credits remain fixed, however, section 9
provides a different calculation for determining the net metering credit.
Sections 10 through 12 incorporate projects to renovate or
recondition existing utility transmission lines into the "Colorado Electric
Transmission Authority Act", allowing the Colorado electric transmission
authority to finance and renovate, rebuild, or recondition existing
transmission lines in order to update and optimize the transmission lines.
Section 13 requires a local government to expedite its review of
a land use application that proposes a project to renovate, rebuild, or
recondition existing transmission lines.
Section 14 makes a conforming amendment regarding the updated
statewide GHG emission reduction goals set forth in section 6.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 10-3-244 as2
follows:3
10-3-244. Climate risk disclosure - insurer participation - rules4
- reporting - definition. (1) T
HE COMMISSIONER SHALL ADOPT RULES5
REQUIRING THAT, BEGINNING IN 2024, AN INSURER ISSUED A CERTIFICATE6
OF AUTHORITY TO TRANSACT BUSINESS PURSUANT TO PART 1 OF THIS7
ARTICLE 3 THAT REPORTS MORE THAN ONE HUNDRED MILLION DOLLARS ON8
ITS ANNUAL NAIC SCHEDULE T FILING, OR SUCH OTHER THRESHOLD9
DOLLAR AMOUNT THAT THE NAIC ESTABLISHES IN SUBSEQUENT YEARS,10
MUST PARTICIPATE IN AND COMPLETE THE NAIC'S ANNUAL "INSURER11
C
LIMATE RISK DISCLOSURE SURVEY", OR SUCH OTHER SURVEY OR12
REPORTING MECHANISM THAT THE NAIC ADOPTS IN SUBSEQUENT YEARS.13
I
F AN INSURER REPORTS LESS THAN ONE HUNDRED MILLION DOLLARS ON14
ITS ANNUAL NAIC SCHEDULE T FILING, OR SUCH OTHER THRESHOLD15
DOLLAR AMOUNT THAT THE NAIC ESTABLISHES IN SUBSEQUENT YEARS,16
THE INSURER MAY PARTICIPATE IN AND COMPLETE THE SURVEY17
VOLUNTARILY.18
(2) A
S USED IN THIS SECTION, "NAIC" MEANS THE NATIONAL19
SB23-016-3- ASSOCIATION OF INSURANCE COMMISSIONERS, AN ORGANIZATION OF1
INSURANCE REGULATORS FROM THE FIFTY STATES OF THE UNITED STATES,2
THE DISTRICT OF COLUMBIA, AND FIVE UNITED STATES TERRITORIES.3
SECTION 2. In Colorado Revised Statutes, 24-51-204, add (12)4
as follows:5
24-51-204. Duties of the board. (12) O
N OR BEFORE JUNE 1,6
2024,
THE BOARD SHALL ADOPT PROXY VOTING PROCEDURES THAT7
ENSURE THAT THE BOARD 'S VOTING DECISIONS ALIGN WITH, AND ARE8
SUPPORTIVE OF, THE STATEWIDE GREENHOUSE GAS POLLUTION REDUCTION9
GOALS SET FORTH IN SECTION 25-7-102 (2)(g).10
SECTION 3. In Colorado Revised Statutes, amend 24-51-220 as11
follows:12
24-51-220. Reporting to general assembly - inclusion of13
climate risk assessment in annual stewardship report. (1) The14
association shall provide
SUBMIT a report to the general assembly on15
January 1, 2016, and every five years thereafter, regarding the economic16
impact of the 2010 legislative changes to the annual increase provisions17
on the retirees and benefit recipients as compared to the actual rate of18
inflation and the progress made toward eliminating the unfunded19
liabilities of each division of the association.20
(2) O
N AND AFTER JANUARY 1, 2025, THE ASSOCIATION SHALL21
INCLUDE, AS PART OF ITS ANNUAL INVESTMENT STEWARDSHIP REPORT OR22
ANY SUCCESSOR ANNUAL REPORT REGARDING THE ASSOCIATION 'S23
INVESTMENTS THAT THE ASSOCIATION POSTS ON ITS WEBSITE OR24
OTHERWISE MAKES AVAILABLE TO THE PUBLIC , A DESCRIPTION OF:25
(a) T
HE ASSOCIATION 'S PROCESS FOR IDENTIFYING26
CLIMATE-CHANGE-RELATED RISKS AND ASSESSING THE FINANCIAL IMPACT27
SB23-016
-4- THAT THE CLIMATE-CHANGE-RELATED RISKS HAVE ON THE ASSOCIATION'S1
OPERATIONS;2
(b) T
HE CURRENT OR ANTICIPATED FUTURE RISKS THAT CLIMATE3
CHANGE POSES TO THE ASSOCIATION 'S INVESTMENT PORTFOLIO , THE4
IMPACT THAT CLIMATE CHANGE HAS ON THE ASSOCIATION 'S INVESTMENT5
STRATEGIES, AND ANY STRATEGY CHANGES THAT THE ASSOCIATION HAS6
IMPLEMENTED IN RESPONSE TO SUCH IMPACT ;7
(c) A
CTIONS THAT THE ASSOCIATION IS TAKING TO MANAGE THE8
RISKS THAT CLIMATE CHANGE POSES TO THE ASSOCIATION 'S OPERATIONS;9
AND10
(d) T
HE ASSOCIATION'S USE AND CONSIDERATION OF ANY11
CLIMATE-RELATED REPORTING THAT THE FEDERAL SECURITIES AND12
EXCHANGE COMMISSION REQUIRES .13
SECTION 4. In Colorado Revised Statutes, 25-6.5-201, amend14
(2); and add (3) as follows:15
25-6.5-201. Definitions. As used in this part 2, unless the context16
otherwise requires:17
(2) (a) "Pollution control equipment" means any personal18
property, including but not limited to,
equipment, machinery, devices,19
systems, buildings, or structures, that is installed, constructed, or used in20
or as a part of a facility that creates a product in a manner that generates21
less pollution by the utilization of an alternative manufacturing or22
generating technology.23
(b) "Pollution control equipment" includes: but is not limited to,24
(I) Gas or wind turbines and associated compressors or25
equipment;26
(II) Solar, thermal, or photovoltaic equipment; or27
SB23-016
-5- (III) Equipment used as part of a system that uses geothermal1
energy for water heating or space heating or cooling in a single building,2
for space heating for more than one building through a pipeline network,3
or for electricity generation;
OR4
(IV) W
ASTEWATER THERMAL ENERGY EQUIPMENT .5
(3) "W
ASTEWATER THERMAL ENERGY EQUIPMENT " MEANS6
EQUIPMENT USED AS PART OF A SYSTEM THAT USES THERMAL ENERGY IN7
WASTEWATER TO GENERATE ELECTRICITY , TO HEAT OR COOL A SPACE, OR8
FOR ANY OTHER USEFUL THERMAL PURPOSE .9
SECTION 5. In Colorado Revised Statutes, 40-3.2-108, amend10
(2)(c)(V); and add (2)(c)(V.5) and (2)(r) as follows:11
40-3.2-108. Clean heat targets - legislative declaration -12
definitions - plans - rules - reports. (2) Definitions. As used in this13
section, unless the context otherwise requires:14
(c) "Clean heat resource" means any one or a combination of:15
(V) Pyrolysis of tires if the pyrolysis meets a recovered methane16
protocol; and
17
(V.5) W
ASTEWATER THERMAL ENERGY ; AND18
(r) "W
ASTEWATER THERMAL ENERGY " MEANS A SYSTEM THAT19
USES THERMAL ENERGY IN WASTEWATER TO GENERATE ELECTRICITY , TO20
HEAT OR COOL A SPACE, OR FOR ANY OTHER USEFUL THERMAL PURPOSE .21
SECTION 6. In Colorado Revised Statutes, 25-7-102, amend22
(2)(g) as follows:23
25-7-102. Legislative declaration. (2) It is further declared that:24
(g) (I) Accordingly, Colorado shall strive to increase renewable25
energy generation and eliminate statewide greenhouse gas pollution by26
the middle of the twenty-first century and have goals of achieving, at a27
SB23-016
-6- minimum:1
(A) A twenty-six percent reduction in statewide greenhouse gas2
pollution by 2025;3
(B) A fifty percent reduction in statewide greenhouse gas4
pollution by 2030;5
(C) A
SIXTY-FIVE PERCENT REDUCTION IN STATEWIDE6
GREENHOUSE GAS POLLUTION BY 2035;7
(D) A
N EIGHTY PERCENT REDUCTION IN STATEWIDE GREENHOUSE8
GAS POLLUTION BY 2040;9
(E) A
NINETY PERCENT REDUCTION IN STATEWIDE GREENHOUSE10
GAS POLLUTION BY 2045; and11
(F) A ninety
ONE HUNDRED percent reduction in statewide12
greenhouse gas pollution by 2050.13
(II) The reductions identified in this subsection (2)(g) are14
measured relative to 2005 statewide greenhouse gas pollution levels.15
SECTION 7. In Colorado Revised Statutes, 34-60-106, amend16
(9)(a) and (9)(b)(I); and add (9)(c) and (9)(d) as follows:17
34-60-106. Additional powers of commission - rules -18
definitions - repeal. (9) (a) (I) Notwithstanding section 34-60-120 or any19
other provision of law
AND SUBJECT TO SUBSECTION (9)(a)(II) OF THIS20
SECTION, the commission, as to class II AND CLASS VI injection wells21
classified in 40 CFR 144.6, may perform all acts for the purpose
22
PURPOSES of protecting underground sources of drinking water in23
accordance with state programs authorized by
THE FEDERAL "SAFE24
D
RINKING WATER ACT", 42 U.S.C. sec. 300f et seq., and regulations25
under those sections, as amended,
AND ENSURING THE SAFE AND26
EFFECTIVE SEQUESTRATION OF GREENHOUSE GASES .27
SB23-016
-7- (II) IN PERFORMING ACTS FOR THE PURPOSE OF ENSURING THE SAFE1
AND EFFECTIVE SEQUESTRATION OF GREENHOUSE GASES PURSUANT TO2
SUBSECTION (9)(a)(I) OF THIS SECTION, THE COMMISSION SHALL ACT IN3
ACCORDANCE WITH SUBSECTION (9)(c) OF THIS SECTION AND ONLY AFTER4
THE GOVERNOR AND THE COMMISSION HAVE MADE AN AFFIRMATIVE5
DETERMINATION THAT THE STATE HAS SUFFICIENT RESOURCES NECESSARY6
TO ENSURE THE SAFE AND EFFECTIVE REGULATION OF THE SEQUESTRATION7
OF GREENHOUSE GASES IN ACCORDANCE WITH THE FINDINGS FROM THE8
COMMISSION'S STUDY CONDUCTED PURSUANT TO SUBSECTION (9)(b) OF9
THIS SECTION.10
(b) The commission shall:11
(I) Conduct a study to evaluate what resources are needed to12
ensure the safe and effective regulation of the sequestration of greenhouse13
gases as that term is defined in section 25-7-140 (6), and to identify and14
assess the applicable resources that the commission or other state15
agencies have; and16
(c) (I) T
HE COMMISSION MAY SEEK CLASS VI INJECTION WELL17
PRIMACY UNDER THE FEDERAL "SAFE DRINKING WATER ACT", 42 U.S.C.18
SEC. 300f ET SEQ., AS AMENDED, AFTER THE COMMISSION:19
(A) D
ETERMINES IT HAS THE NECESSARY RESOURCES FOR THE20
APPLICATION OUTLINED IN THE COMMISSION 'S STUDY PERFORMED21
PURSUANT TO SUBSECTION (9)(b) OF THIS SECTION; AND22
(B) H
OLDS A PUBLIC HEARING ON THE MATTER .23
(II) T
HE COMMISSION MAY ISSUE AND ENFORCE PERMITS AS24
NECESSARY FOR THE PURPOSE SET FORTH IN THIS SUBSECTION (9)(c) AFTER25
THE COMMISSION MAKES THE DETERMINATION AND HOLDS THE HEARING26
SET FORTH IN SUBSECTION (9)(c)(I) OF THIS SECTION AND THE COMMISSION27
SB23-016
-8- AND THE GOVERNOR SATISFY THE REQUIREMENTS SET FORTH IN1
SUBSECTION (9)(a) OF THIS SECTION. IN ISSUING AND ENFORCING PERMITS2
PURSUANT TO THIS SUBSECTION (9)(c), THE COMMISSION SHALL ENSURE3
THAT THE PERMITTING OF A CLASS VI INJECTION WELL DOES NOT4
DISPROPORTIONATELY AFFECT THE HEALTH AND WELL -BEING OF5
DISPROPORTIONATELY IMPACTED COMMUNITIES .6
(III) (A) T
HE COMMISSION SHALL REQUIRE EACH OPERATOR OF A7
CLASS VI INJECTION WELL TO PROVIDE ADEQUATE FINANCIAL ASSURANCE8
DEMONSTRATING THAT THE OPERATOR IS FINANCIALLY CAPABLE OF9
FULFILLING EVERY OBLIGATION IMPOSED ON THE OPERATOR UNDER THIS10
ARTICLE 60 AND UNDER RULES THAT THE COMMISSION ADOPTS PURSUANT11
TO THIS ARTICLE 60.12
(B) T
HE FINANCIAL ASSURANCE REQUIRED UNDER THIS13
SUBSECTION (9)(c)(III) MUST COVER THE COST OF CORRECTIVE ACTION ,14
INJECTION WELL PLUGGING, POST-INJECTION SITE CARE, SITE CLOSURE,15
AND ANY EMERGENCY AND REMEDIAL RESPONSE .16
(C) T
HE COMMISSION SHALL ADOPT RULES REQUIRING THAT THE17
FINANCIAL ASSURANCE COVER THE COST OF OBLIGATIONS THAT ARE IN18
ADDITION TO THE OBLIGATIONS LISTED IN SUBSECTION (9)(c)(III)(B) OF19
THIS SECTION IF THE ADDITIONAL OBLIGATIONS ARE REASONABLY20
ASSOCIATED WITH CLASS VI INJECTION WELLS AND LOCATIONS.21
(D) A
N OPERATOR SHALL MAINTAIN THE FINANCIAL ASSURANCE22
REQUIRED UNDER THIS SUBSECTION (9)(c)(III) OR UNDER ANY RULES23
ADOPTED PURS UANT TO THIS SUBSECTION (9)(c)(III) UNTIL THE24
COMMISSION APPROVES SITE CLOSURE, AS SPECIFIED IN RULES ADOPTED BY25
THE COMMISSION. COMMISSION APPROVAL OF A SITE CLOSURE DOES NOT26
OTHERWISE MODIFY AN OPERATOR 'S RESPONSIBILITY TO COMPLY WITH27
SB23-016
-9- APPLICABLE LAWS.1
(E) F
INANCIAL ASSURANCE PROVIDED UNDER THIS SUBSECTION2
(9)(c)(III)
MAY BE IN THE FORM OF A SURETY BOND , INSURANCE, OR ANY3
OTHER INSTRUMENT THAT THE COMMISSION , BY RULE, DEEMS4
SATISFACTORY.5
(d) A
S USED IN THIS SUBSECTION (9), UNLESS THE CONTEXT6
OTHERWISE REQUIRES:7
(I) "C
ORRECTIVE ACTION" HAS THE MEANING SET FORTH IN 40 CFR8
146.81.9
(II) "D
ISPROPORTIONATELY IMPACTED COMMUNITY " HAS THE10
MEANING SET FORTH IN SECTION 24-4-109 (2)(b)(II).11
(III) "G
REENHOUSE GAS" HAS THE MEANING SET FORTH IN SECTION12
25-7-140
(6).13
(IV) "P
OST-INJECTION SITE CARE" HAS THE MEANING SET FORTH14
IN 40 CFR 146.81.15
(V) "S
ITE CLOSURE" HAS THE MEANING SET FORTH IN 40 CFR16
146.81.17
SECTION 8. In Colorado Revised Statutes, add 39-22-549 as18
follows:19
39-22-549. Tax credit for reducing emissions from certain20
lawn equipment - report - legislative declaration - definitions - repeal.21
(1) (a) T
HE GENERAL ASSEMBLY FINDS AND DECLARES THAT :22
(I) G
ASOLINE-POWERED LAWN EQUIPMENT , SUCH AS LAWN23
MOWERS, LEAF BLOWERS, TRIMMERS, AND SNOWBLOWERS , EMITS HIGH24
LEVELS OF AIR POLLUTANTS, INCLUDING NITROGEN OXIDES AND VOLATILE25
ORGANIC COMPOUNDS THAT , TOGETHER, FORM OZONE AND PARTICULATE26
MATTER;27
SB23-016
-10- (II) REPLACING SUCH GASOLINE-POWERED LAWN EQUIPMENT WITH1
ELECTRIC-POWERED LAWN EQUIPMENT CAN REDUCE OZONE POLLUTION ;2
AND3
(III) T
HE PURPOSE OF THE TAX CREDIT IN SUBSECTION (3) OF THIS4
SECTION IS TO INCENTIVIZE THE VOLUNTARY TRANSITION FROM5
GASOLINE-POWERED TO ELECTRIC-POWERED LAWN EQUIPMENT .6
(b) I
N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH7
REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE8
A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY9
LEGISLATIVE DECLARATION, THE GENERAL ASSEMBLY FURTHER FINDS AND10
DECLARES THAT:11
(I) T
HE GENERAL LEGISLATIVE PURPOSE OF THE TAX CREDIT12
ALLOWED BY SUBSECTION (3) OF THIS SECTION IS TO INDUCE CERTAIN13
DESIGNATED BEHAVIORS BY TAXPAYERS , SPECIFICALLY THE PURCHASE OF14
ELECTRIC-POWERED LAWN EQUIPMENT ; AND15
(II) I
N ORDER TO ALLOW THE GENERAL ASSEMBLY AND THE STATE16
AUDITOR TO MEASURE THE EFFECTIVENESS OF THE TAX CREDIT , THE17
DEPARTMENT OF REVENUE SHALL SUBMIT TO THE GENERAL ASSEMBLY18
AND THE STATE AUDITOR AN ANNUAL REPORT IN ACCORDANCE WITH19
SUBSECTION (5) OF THIS SECTION DETAILING THE SALES OF NEW ,20
ELECTRIC-POWERED LAWN EQUIPMENT , AS REPORTED BY TAXPAYERS21
CLAIMING THE TAX CREDIT AUTHORIZED UNDER SUBSECTION (3) OF THIS22
SECTION.23
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE24
REQUIRES:25
(a) "L
AWN EQUIPMENT" MEANS A LAWN MOWER , LEAF BLOWER,26
TRIMMER, OR SNOWBLOWER.27
SB23-016
-11- (b) "PURCHASE PRICE" HAS THE MEANING SET FORTH IN SECTION1
39-26-102
(7).2
(c) "R
ETAIL SALE" HAS THE MEANING SET FORTH IN SECTION3
39-26-102
(9).4
(d) "T
AXPAYER" HAS THE MEANING SET FORTH IN SECTION5
39-21-101
(4).6
(3) (a) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER7
J
ANUARY 1, 2024, BUT BEFORE JANUARY 1, 2027, A TAXPAYER IS8
ALLOWED A TAX CREDIT AGAINST THE TAX IMPOSED PURSUANT TO THIS9
ARTICLE 22 IN AN AMOUNT EQUAL TO THIRTY PERCENT OF THE AGGREGATE10
PURCHASE PRICE FOR ALL RETAIL SALES OF NEW , ELECTRIC-POWERED11
LAWN EQUIPMENT THAT THE TAXPAYER SOLD IN THE STATE DURING THE12
TAX YEAR.13
(b) I
N ORDER TO QUALIFY FOR THE TAX CREDIT ALLOWED UNDER14
THIS SUBSECTION (3), THE TAXPAYER SHALL PROVIDE TO THE PURCHASER ,15
AT THE TIME OF THE RETAIL SALE OF NEW , ELECTRIC-POWERED LAWN16
EQUIPMENT, A DISCOUNT ON THE PURCHASE PRICE OF THE LAWN17
EQUIPMENT EQUAL TO THIRTY PERCENT OF THE PURCHASE PRICE AND18
SHALL SHOW THE DISCOUNT AS A SEPARATE ITEM ON THE RECEIPT OR19
INVOICE PROVIDED TO THE PURCHASER .20
(c) T
O DETERMINE WHETHER A TAXPAYER SOLD NEW ,21
ELECTRIC-POWERED LAWN EQUIPMENT IN THIS STATE , THE RULES OF22
SECTION 39-26-104 (3)(a) APPLY.23
(4) I
F THE AMOUNT OF A TAX CREDIT UNDER SUBSECTION (3) OF24
THIS SECTION EXCEEDS A TAXPAYER 'S ACTUAL TAX LIABILITY FOR AN25
INCOME TAX YEAR, THE AMOUNT OF THE TAX CREDIT NOT USED TO OFFSET26
INCOME TAX LIABILITY FOR THAT INCOME TAX YEAR IS NOT REFUNDED TO27
SB23-016
-12- THE TAXPAYER. THE TAXPAYER MAY CARRY FORWARD AND APPLY THE1
UNUSED TAX CREDIT AGAINST THE INCOME TAX THAT THE TAXPAYER2
OWES IN EACH OF THE FIVE SUCCEEDING INCOME TAX YEARS , BUT THE3
TAXPAYER SHALL APPLY THE TAX CREDIT AGAINST THE INCOME TAX DUE4
FOR THE EARLIEST OF THE INCOME TAX YEARS POSSIBLE . ANY AMOUNT OF5
THE TAX CREDIT THAT REMAINS AFTER THIS PERIOD IS NOT REFUNDABLE6
AND SHALL NOT BE CREDITED TO THE TAXPAYER .7
(5) P
URSUANT TO SECTION 39-21-304 (3), NOTWITHSTANDING8
SECTION 24-1-136 (11)(a)(I), AND FOR THE PURPOSE OF PROVIDING DATA9
THAT ALLOWS THE GENERAL ASSEMBLY AND THE STATE AUDITOR TO10
MEASURE THE EFFECTIVENESS OF THE TAX CREDIT CREATED IN11
SUBSECTION (3) OF THIS SECTION, THE DEPARTMENT OF REVENUE , ON OR12
BEFORE JANUARY 1, 2025, AND ON OR BEFORE JANUARY 1 OF EACH YEAR13
THEREAFTER THROUGH JANUARY 1, 2028, SHALL SUBMIT TO THE GENERAL14
ASSEMBLY AND THE STATE AUDITOR A REPORT DETAILING THE SALES OF15
NEW, ELECTRIC-POWERED LAWN EQUIPMENT , AS REPORTED BY TAXPAYERS16
CLAIMING THE TAX CREDIT AUTHORIZED UNDER SUBSECTION (3) OF THIS17
SECTION. THE TAX CREDIT ESTABLISHED IN THIS SECTION MEETS ITS18
PURPOSE IF SALES OF NEW, GASOLINE-POWERED LAWN EQUIPMENT ARE19
SIGNIFICANTLY REDUCED WITHIN FIVE YEARS AFTER THE TAX CREDIT20
BECOMES EFFECTIVE, AS DETERMINED BY THE GENERAL ASSEMBLY AND21
THE STATE AUDITOR PURSUANT TO SECTION 39-21-304 (3).22
(6) T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2033.23
SECTION 9. In Colorado Revised Statutes, 40-2-127, amend24
(5)(b)(II) as follows:25
40-2-127. Community energy funds - community solar26
gardens - definitions - rules - legislative declaration - repeal.27
SB23-016
-13- (5) Purchases of the output from community solar gardens.1
(b) (II) (A) The purchase of the output of a community solar garden by2
a qualifying retail utility shall MUST take the form of a net metering credit3
against the qualifying retail utility's electric bill to each community solar4
garden subscriber at the premises set forth in the subscriber's subscription.5
(B) F
OR A SUBSCRIBER ORGANIZATION THAT DIRECTS THE6
QUALIFYING RETAIL UTILITY TO PROVIDE THE SUBSCRIBER7
ORGANIZATION'S SUBSCRIBERS WITH A BILL CREDIT THAT CHANGES8
ANNUALLY, the net metering credit shall be
IS calculated by multiplying9
the subscriber's share of the electricity production from the community10
solar garden by the qualifying retail utility's total aggregate retail rate as11
charged to the subscriber, minus a reasonable charge as determined by the12
commission to cover the utility's costs of delivering to the subscriber's13
premises the electricity generated by the community solar garden,14
integrating the solar generation with the utility's system, and15
administering the community solar garden's contracts and net metering16
credits.17
(C) F
OR A SUBSCRIBER ORGANIZATION THAT DIRECTS THE18
QUALIFYING RETAIL UTILITY TO PROVIDE THE SUBSCRIBER19
ORGANIZATION'S SUBSCRIBERS WITH A FIXED BILL CREDIT , THE NET20
METERING CREDIT MUST COVER THE UTILITY 'S COSTS RELATED TO:21
D
ELIVERING TO THE SUBSCRIBER'S PREMISES THE ELECTRICITY GENERATED22
BY THE COMMUNITY SOLAR GARDEN , INTEGRATING THE SOLAR23
GENERATION WITH THE UTILITY 'S SYSTEM, AND ADMINISTERING24
CONTRACTS AND NET METERING CREDITS FOR THE COMMUNITY SOLAR25
GARDEN. THE NET METERING CREDIT IS CALCULATED BY MULTIPLYING THE26
SUBSCRIBER'S SHARE OF THE ELECTRICITY PRODUCTION FROM THE27
SB23-016
-14- COMMUNITY SOLAR GARDEN BY THE QUALIFYING RETAIL UTILITY 'S TOTAL1
AGGREGATE RETAIL RATE AS CHARGED TO THE SUBSCRIBER AT THE TIME2
THE SUBSCRIBER ORGANIZATION APPLIES FOR OR BIDS CAPACITY INTO A3
UTILITY COMMUNITY SOLAR GARDEN PROGRAM , MINUS A REASONABLE4
CHARGE, AS DETERMINED BY THE COMMISSION AT THE TIME THE5
SUBSCRIBER ORGANIZATION APPLIES FOR OR BIDS CAPACITY INTO A6
UTILITY COMMUNITY SOLAR PROGRAM .7
(D) F
OR COMMUNITY SOLAR GARDENS ELIGIBLE FOR A FIXED BILL8
CREDIT, AND SOLELY FOR THE PURPOSE OF APPLYING THE BILL CREDIT TO9
A SUBSCRIBER'S BILL, THE BILL CREDIT SHALL NOT BE APPLIED TOWARD10
THE FOLLOWING RATE RIDER CHARGES , UNLESS THE RATE RIDER CHARGES11
ARE INCLUDED IN THE REASONABLE CHARGE : RATE RIDER CHARGES THAT12
PROMOTE CLEAN ENERGY TECHNOLOGIES , INCLUDING BENEFICIAL13
ELECTRIFICATION; RATE RIDER CHARGES THAT PROVIDE LOW-INCOME BILL14
ASSISTANCE; OR RATE RIDER CHARGES THAT PROVIDE OTHER PUBLIC15
BENEFITS AS DETERMINED BY THE COMMISSION .16
(E) B
Y MARCH 1, 2024, THE COMMISSION SHALL ADOPT RULES TO17
IMPLEMENT THE FIXED BILL CREDIT . THE RULES MUST CONSIDER THE18
CHANGE OF VALUE TO COMMUNITY SOLAR GARDEN CUSTOMERS OF THE19
FIXED BILL CREDIT OVER TIME THROUGH RATE ADJUSTMENTS OR OTHER20
MECHANISMS.21
(F) The commission shall ensure that this charge
THE22
REASONABLE CHARGE THAT THE COMMISSION DETERMINES PURSUANT TO23
SUBSECTIONS (5)(b)(II)(B) AND (5)(b)(II)(C) OF THIS SECTION does not24
reflect costs that are already recovered by the utility from the subscriber25
through other charges.26
(G) If, and to the extent that, a subscriber's net metering credit27
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-15- exceeds the subscriber's electric bill in any billing period, the net metering1
credit shall be carried forward and applied against future bills.2
(H) The qualifying retail utility and the owner of the community3
solar garden shall agree on whether the purchase of the renewable energy4
credits from subscribers will be accomplished through a credit on each5
subscriber's electricity bill or by a payment to the owner of the community6
solar garden.7
SECTION 10. In Colorado Revised Statutes, 40-42-102, amend8
(14) as follows:9
40-42-102. Definitions. As used in this article 42, unless the10
context otherwise requires:11
(14) "Project" means an undertaking by the authority to finance12
or to:13
(a) Plan, acquire, maintain, and operate eligible facilities located14
partly or entirely within Colorado;
OR15
(b) R
ENOVATE, REBUILD, OR RECONDITION EXISTING ELIGIBLE16
FACILITIES LOCATED PARTLY OR ENTIRELY WITHIN COLORADO TO17
UPGRADE AND OPTIMIZE THE EXISTING FACILITIES .18
SECTION 11. In Colorado Revised Statutes, 40-42-104, amend19
(3) as follows:20
40-42-104. General and specific powers and duties of the21
authority. (3) In soliciting and entering into contracts for the22
transmission or storage of electricity, the authority and any person leasing23
or operating eligible facilities financed, or
acquired, RENOVATED,24
REBUILT, OR RECONDITIONED by the authority shall, if practicable, give25
priority to:26
(a) Those Contracts that will transmit or store electricity to be sold27
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-16- and consumed in Colorado; and1
(b) Electric utilities or other entities that demonstrate an interest2
in continuing an existing powerline trail established by the authority or3
constructing and maintaining a new powerline trail on the eligible4
facilities;
AND5
(c) C
ONTRACTS TO RENOVATE , REBUILD, OR RECONDITION6
EXISTING ELIGIBLE FACILITIES FOR THE PURPOSE OF UPDATING THE7
ELECTRIC GRID TO:8
(I) R
EDUCE GREENHOUSE GAS EMISSIONS CAUSED BY THE9
CONSTRUCTION OF NEW FACILITIES; AND10
(II) B
ETTER INCORPORATE DISTRIBUTED GENERATION AND11
RENEWABLE ENERGY FACILITIES INTO THE ELECTRIC GRID .12
SECTION 12. In Colorado Revised Statutes, 40-42-107, amend13
(1) introductory portion as follows:14
40-42-107. Labor standards - apprenticeship - supervision.15
(1) The authority shall ensure that, in any construction, expansion,16
RENOVATION, REBUILDING, RECONDITIONING, or maintenance of facilities17
undertaken in Colorado pursuant to this article 42, all labor is performed18
either by the employees of an electric utility, or
by qualified contractors,19
or
BY both, and that, except as otherwise provided in subsection (3) of20
this section, an electric utility
DOES not use a contractor unless:21
SECTION 13. In Colorado Revised Statutes, 29-20-108, add (7)22
as follows:23
29-20-108. Local government regulation - location,24
construction, or improvement of major electrical or natural gas25
facilities - powerline trail notification - expedited review for certain26
transmission line projects - legislative declaration - definitions. (7) A27
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-17- LOCAL GOVERNMENT SHALL EXPEDITE ITS REVIEW OF A LAND USE1
APPLICATION WITH REGARD TO A PROPOSED PROJECT TO RENOVATE ,2
REBUILD, OR RECONDITION A TRANSMISSION LINE IN ACCORDANCE WITH3
SECTION 40-42-104 (3)(c).4
SECTION 14. In Colorado Revised Statutes, 25-7-105, amend5
(1)(e)(II) as follows:6
25-7-105. Duties of commission - technical secretary - rules -7
legislative declaration - definitions. (1) Except as provided in sections8
25-7-130 and 25-7-131, the commission shall promulgate rules that are9
consistent with the legislative declaration set forth in section 25-7-10210
and necessary for the proper implementation and administration of this11
article 7, including:12
(e) (II) Consistent with section 25-7-102 (2)(g), the commission13
shall timely promulgate implementing rules and regulations. The14
implementing rules may take into account other relevant laws and rules,15
as well as voluntary actions taken by local communities and the private16
sector, to enhance efficiency and cost-effectiveness, and shall be revised17
as necessary over time to ensure timely progress toward the 2025, 2030,18
2035, 2040, 2045, and 2050 goals. The implementing rules shall MUST19
provide for ongoing tracking of emission sources that adversely affect20
disproportionately impacted communities and are subject to rules21
implemented pursuant to this subsection (1)(e) and must include strategies22
designed to achieve reductions in harmful air pollution affecting those23
communities.24
SECTION 15. Act subject to petition - effective date. This act25
takes effect at 12:01 a.m. on the day following the expiration of the26
ninety-day period after final adjournment of the general assembly; except27
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-18- that, if a referendum petition is filed pursuant to section 1 (3) of article V1
of the state constitution against this act or an item, section, or part of this2
act within such period, then the act, item, section, or part will not take3
effect unless approved by the people at the general election to be held in4
November 2024 and, in such case, will take effect on the date of the5
official declaration of the vote thereon by the governor.6
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