First Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
LLS NO. 23-0213.01 Jennifer Berman x3286
SENATE BILL 23-016
Senate Committees House Committees
Transportation & Energy
Finance
Appropriations
A BILL FOR AN ACT
C
ONCERNING MEASURES TO PROMOTE REDUCTIONS IN GREENHOUSE101
GAS EMISSIONS IN COLORADO, AND, IN CONNECTION
102
THEREWITH, MAKING AN APPROPRIATION .103
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
Section 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
SENATE
Amended 2nd Reading
April 13, 2023
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 law.
Dashes through the words or numbers indicate deletions from existing law. Disclosure Survey" or successor survey or reporting mechanism.
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
016
-2- subscribers' bill credits change annually. If the CSG indicates to the utility
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
016-3- (2) AS USED IN THIS SECTION, "NAIC" MEANS THE NATIONAL1
A
SSOCIATION OF INSURANCE COMMISSIONERS, AN ORGANIZATION OF2
INSURANCE REGULATORS FROM THE FIFTY STATES OF THE UNITED STATES,3
THE DISTRICT OF COLUMBIA, AND FIVE UNITED STATES TERRITORIES.4
SECTION 2. In Colorado Revised Statutes, 24-38.5-102 amend
5
(1) as follows:6
24-38.5-102. Colorado energy office - duties and powers.7
(1) The Colorado energy office shall:8
(a) Work with communities, utilities,
AND private and public
9
organizations and individuals to promote TO:10
(I) S
UPPORT ACHIEVING LEGISLATIVE GOALS TO REDUCE
11
STATEWIDE GREENHOUSE GAS POLLUTION , AS DEFINED IN SECTION12
25-7-103
(22.5);
13
(II) M
AKE PROGRESS TOWARD ELIMINATING GREENHOUSE GAS
14
POLLUTION FROM ELECTRICITY GENERATION , GAS UTILITIES, AND15
TRANSPORTATION;16
(I) (III) IMPLEMENT the renewable energy standard established in17
section 40-2-124;18
(II) Clean and (IV) SUPPORT THE DEPLOYMENT OF renewable19
energy, such as wind, hydroelectricity, solar,
CLEAN HYDROGEN, and
20
geothermal;21
(III) (V) EVALUATE, AND WHEN APPROPRIATE , SUPPORT THE22
DEPLOYMENT OF cleaner energy sources such as biogas, biomass, and23
CLEAN HYDROGEN, GEOTHERMAL, RECOVERED METHANE , RECOVERED24
HEAT, AND ADVANCED nuclear;25
(IV) Traditional energy sources such as oil and other petroleum26
products, coal, propane, and natural gas;27
016
-4- (V) (VI) SUPPORT THE DEPLOYMENT OF energy efficiency AND1
ENERGY LOAD MANAGEMENT technologies and practices;2
(VI) Cleaner technologies by utilizing traditional,3
Colorado-sourced energy;4
(VII) New EVALUATE, AND WHERE APPROPRIATE, SUPPORT THE5
DEPLOYMENT OF INNOVATIVE energy technologies as described in section6
40-2-123; and7
(VIII) S
UPPORT THE DEPLOYMENT OF energy storage systems,
8
INCLUDING BOTH LONG -DURATION AND SHORT -DURATION ENERGY9
STORAGE;10
(IX) S
UPPORT THE IMPLEMENTATION OF CLEAN HEAT PLANS
11
PURSUANT TO SECTION 40-3.2-108;12
(X) S
UPPORT WIDESPREAD TRANSPORTATION ELECTRIFICATION ;
13
(XI) S
UPPORT BENEFICIAL ELECTRIFICATION , AS DEFINED IN
14
SECTION 40-1-102 (1.2) IN THE BUILDING, INDUSTRIAL, AND OIL AND GAS15
SECTORS;16
(XII) S
UPPORT INDUSTRIAL EMISSIONS REDUCTIONS ;
17
(XIII) S
UPPORT POLLUTION REDUCTION THROUGH CARBON
18
CAPTURE AND SEQUESTRATION AND OTHER FORMS OF CARBON19
MANAGEMENT; AND20
(XIV) S
UPPORT SUSTAINABLE LAND-USE PATTERNS THAT REDUCE
21
ENERGY CONSUMPTION AND GREENHOUSE GAS POLLUTION .22
(b) Develop programs to promote high performance REDUCE23
ENERGY USE AND GREENHOUSE GAS POLLUTION FROM buildings for IN24
commercial and residential markets;25
(c) Make SUPPORT EFFORTS TO REDUCE GREENHOUSE GAS26
POLLUTION BY state government more THROUGH energy efficient27
016
-5- EFFICIENCY, LOAD MANAGEMENT, RENEWABLE ENERGY, TRANSPORTATION1
ELECTRIFICATION, AND CLEANER PROCUREMENT ;2
(d) Promote technology transfer and economic development;3
(e) Advance innovative energy efficiency, renewable energy, and4
efficiency throughout the state as specified in sections 24-38.5-102.4 and5
24-38.5-102.5;6
(f) to (i) Repealed.7
(j) (e) Ensure that information explaining the requirements of8
S
UPPORT THE ADOPTION AND IMPLEMENTATION OF ADVANCED energy
9
codes is available THAT REDUCE ENERGY USE AND GREENHOUSE GAS10
EMISSIONS and provide INFORMATION AND technical assistance concerning11
the implementation and enforcement of energy codes to both counties and12
municipalities,
INCLUDING as specified in sections 30-28-211 (7)
13
24-38.5-103, 24-38.5-401, 24-38.5-402, and 31-15-602 (7); C.R.S.;14
(k) (f) Collaborate with the state board of land commissioners15
regarding renewable energy resource development as specified in section16
36-1-147.5 (4); C.R.S.;17
(l) (g) Provide home energy efficiency improvements for18
low-income households,
INCLUDING THROUGH THE WEATHERIZATION
19
ASSISTANCE PROGRAM, as specified in section 40-8.7-112 (3)(b); C.R.S.,20
and prepare and submit to the general assembly an annual report as21
specified in section 40-8.7-112 (3)(f), C.R.S.;22
(m) Establish and manage a program to improve energy efficiency23
in public schools as provided in section 39-29-109.5, C.R.S.;24
(n) (I) Provide public utilities with reasonable assistance, if25
requested, in seeking and obtaining support and sponsorship for an IGCC26
project and manage and distribute to the utility some or all of any funds27
016
-6- provided by the state or by the United States government to the state for1
purposes of study or development of an IGCC project.2
(II) As used in this subsection (1)(n), "IGCC project" means an3
IGCC facility that:4
(A) Demonstrates the use of IGCC technology to generate5
electricity using Colorado or other western coal;6
(B) Does not exceed three hundred fifty megawatts nameplate7
capacity; except that it may exceed this capacity if the Colorado energy8
office determines that a larger size is necessary to obtain the benefits of9
federal cost sharing, financial grants or tax benefits, or other financial10
opportunities or arrangements benefitting the project, including11
opportunities to jointly develop the project with other electric utilities;12
(C) Demonstrates the capture and sequestration of a portion of the13
project's carbon dioxide emissions;14
(D) Includes methods and procedures to monitor the fate of the15
carbon dioxide captured and sequestered from the facility; and16
(E) Is located in Colorado.17
(III) As used in this subsection (1)(n), "IGCC facility" means an18
integrated gasification combined cycle generation facility that converts19
coal to a gaseous fuel from which impurities are removed prior to20
combustion, uses the gaseous fuel in a combustion turbine to produce21
electricity, and captures the waste heat from the combustion turbine to22
drive a steam turbine to produce more electricity. An IGCC facility may23
also use natural gas, in addition to gasified coal, as a fuel in the24
combustion turbine.25
(o) (h) Collaborate with stakeholders to develop and encourage26
increased utilization of energy curricula, including science, technology,27
016
-7- engineering, and math curricula, that will serve the work force1
WORKFORCE needs of all CLEAN energy industries. Such collaboration2
may include executive departments, research institutions, state colleges,3
community colleges, industry, and trade organizations in an effort to4
develop a means by which the state may address all facets of work force5
WORKFORCE demands in developing a balanced energy portfolio6
SUPPORTING A CLEAN ENERGY FUTURE . Institutions may also partner in the7
development of curricula with organizations that have existing energy8
curricula and training programs.9
(p) (i) Annually report to the senate agriculture, natural resources,10
TRANSPORTATION and energy committee and the house agriculture,11
livestock, and natural resources ENERGY AND ENVIRONMENT committee,12
or their successor committees;13
(q) (j) Administer the electric vehicle grant fund CREATED IN14
SECTION 24-38.5-103 (1)(a) AND THE COMMUNITY ACCESS ENTERPRISE15
CREATED IN SECTION 24-38.5-303 (1);16
(r) and (s) Repealed.17
(t) (k) Assist the executive director of the department of local18
affairs in allocating revenues from the geothermal resource leasing fund19
to eligible entities pursuant to section 34-63-105; C.R.S.;20
(u) (l) Develop basic consumer education or guidance about21
leased solar installation and purchased solar installation in consultation22
with industries that offer these options to consumers; and23
(v) (m) In consultation with the appropriate industries, develop24
basic consumer education or guidance about purchased or, if available,25
leased installation of a system that uses geothermal energy for water26
heating or space heating or cooling in a single building or for space27
016
-8- heating for more than one building through a pipeline network.1
2
SECTION 3. In Colorado Revised Statutes, amend 24-51-220 as3
follows:4
24-51-220. Reporting to general assembly - inclusion of5
climate risk assessment in annual stewardship report. (1) The6
association shall provide SUBMIT a report to the general assembly on7
January 1, 2016, and every five years thereafter, regarding the economic8
impact of the 2010 legislative changes to the annual increase provisions9
on the retirees and benefit recipients as compared to the actual rate of10
inflation and the progress made toward eliminating the unfunded11
liabilities of each division of the association.12
(2) O
N AND AFTER JANUARY 1, 2025, THE ASSOCIATION SHALL13
INCLUDE, AS PART OF ITS ANNUAL INVESTMENT STEWARDSHIP REPORT OR14
ANY SUCCESSOR ANNUAL REPORT REGARDING THE ASSOCIATION 'S15
INVESTMENTS THAT THE ASSOCIATION POSTS ON ITS WEBSITE OR16
OTHERWISE MAKES AVAILABLE TO THE PUBLIC , A DESCRIPTION OF:17
(a) T
HE ASSOCIATION'S PROCESS FOR IDENTIFYING18
CLIMATE-CHANGE-RELATED RISKS AND ASSESSING THE FINANCIAL IMPACT19
THAT THE CLIMATE-CHANGE-RELATED RISKS HAVE ON THE ASSOCIATION'S20
OPERATIONS;21
(b) T
HE CURRENT OR ANTICIPATED FUTURE RISKS THAT CLIMATE22
CHANGE POSES TO THE ASSOCIATION 'S INVESTMENT PORTFOLIO , THE23
IMPACT THAT CLIMATE CHANGE HAS ON THE ASSOCIATION 'S INVESTMENT24
STRATEGIES, AND ANY STRATEGY CHANGES THAT THE ASSOCIATION HAS25
IMPLEMENTED IN RESPONSE TO SUCH IMPACT ;26
(c) A
CTIONS THAT THE ASSOCIATION IS TAKING TO MANAGE THE27
016
-9- RISKS THAT CLIMATE CHANGE POSES TO THE ASSOCIATION 'S OPERATIONS;1
AND2
(d) T
HE ASSOCIATION'S USE AND CONSIDERATION OF ANY3
CLIMATE-RELATED REPORTING THAT THE FEDERAL SECURITIES AND4
EXCHANGE COMMISSION REQUIRES .5
SECTION 4.
In Colorado Revised Statutes, 25-6.5-201, amend6
(2); and add (3) as follows:7
25-6.5-201. Definitions. As used in this part 2, unless the context8
otherwise requires:9
(2) (a) "Pollution control equipment" means any personal10
property, including but not limited to, equipment, machinery, devices,11
systems, buildings, or structures, that is installed, constructed, or used in12
or as a part of a facility that creates a product in a manner that generates13
less pollution by the utilization of an alternative manufacturing or14
generating technology.15
(b) "Pollution control equipment" includes: but is not limited to,16
(I) Gas or wind turbines and associated compressors or17
equipment;18
(II) Solar, thermal, or photovoltaic equipment; or19
(III) Equipment used as part of a system that uses geothermal20
energy for water heating or space heating or cooling in a single building,21
for space heating for more than one building through a pipeline network,22
or for electricity generation;
OR23
(IV) W
ASTEWATER THERMAL ENERGY EQUIPMENT .24
(3) "W
ASTEWATER THERMAL ENERGY EQUIPMENT " MEANS25
EQUIPMENT USED AS PART OF A SYSTEM THAT USES THERMAL ENERGY IN26
WASTEWATER,
TO HEAT OR COOL A SPACE, OR FOR ANY OTHER USEFUL27
016
-10- THERMAL PURPOSE THAT REDUCES GREENHOUSE GAS EMISSIONS FROM THE1
COMBUSTION OF GAS IN CUSTOMER END USES .2
SECTION 5. In Colorado Revised Statutes, 25-7-114.7, amend3
(2)(a)(VII) as follows:4
25-7-114.7. Emission fees - fund - rules - definition - repeal.5
(2) (a) (VII) The commission shall establish, by rule, a fee per ton of6
greenhouse gas, in the form of carbon dioxide equivalent, that was7
reported in the most recent air pollutant emission notice on file with the8
division,
OR THAT WAS REPORTED TO THE DIVISION PURSUANT TO SECTION
9
25-7-140 (2)(a)(I), in an amount that is sufficient to cover the indirect and10
direct costs required to develop and administer the programs established11
pursuant to this article 7 that pertain to emissions of greenhouse gas. The12
commission may set thresholds of reported greenhouse gas below which13
no such fee shall be assessed. No more frequently than annually, the14
commission may adjust the fee for greenhouse gas by rule to cover the15
indirect and direct costs required to develop and administer the programs16
established pursuant to this article 7 that pertain to emissions of17
greenhouse gas.18
SECTION 6. In Colorado Revised Statutes, 40-3.2-108, amend19
(2)(c)(V); and add (2)(c)(V.5) and (2)(r) as follows:20
40-3.2-108. Clean heat targets - legislative declaration -21
definitions - plans - rules - reports. (2) Definitions. As used in this22
section, unless the context otherwise requires:23
(c) "Clean heat resource" means any one or a combination of:24
(V) Pyrolysis of tires if the pyrolysis meets a recovered methane25
protocol; and26
(V.5) W
ASTEWATER THERMAL ENERGY ; AND27
016
-11- (r) "WASTEWATER THERMAL ENERGY " MEANS A SYSTEM THAT1
USES THERMAL ENERGY IN WASTEWATER , TO HEAT OR COOL A SPACE, OR2
FOR ANY OTHER USEFUL THERMAL PURPOSE THAT REDUCES GREENHOUSE3
GAS EMISSIONS FROM THE COMBUSTION OF GAS IN CUSTOMER END USES .4
SECTION 7. In Colorado Revised Statutes, 25-7-102, amend5
(2)(g) as follows:6
25-7-102. Legislative declaration. (2) It is further declared that:7
(g) (I) Accordingly, Colorado shall strive to increase renewable8
energy generation and eliminate statewide greenhouse gas pollution by9
the middle of the twenty-first century and have goals of achieving, at a10
minimum:11
(A) A twenty-six percent reduction in statewide greenhouse gas12
pollution by 2025;13
(B) A fifty percent reduction in statewide greenhouse gas14
pollution by 2030;15
(C) A
SIXTY-FIVE PERCENT REDUCTION IN STATEWIDE16
GREENHOUSE GAS POLLUTION BY 2035;17
(D) A
N SEVENTY-FIVE
PERCENT REDUCTION IN STATEWIDE18
GREENHOUSE GAS POLLUTION BY 2040;19
(E) A
NINETY PERCENT REDUCTION IN STATEWIDE GREENHOUSE20
GAS POLLUTION BY 2045; and21
(F) A ninety
ONE HUNDRED percent reduction in statewide22
greenhouse gas pollution by 2050.23
(II) The reductions identified in this subsection (2)(g) are24
measured relative to 2005 statewide greenhouse gas pollution levels.25
SECTION 8. In Colorado Revised Statutes, 34-60-106, amend26
(9)(a) and (9)(b)(I); and add (9)(c) and (9)(d) as follows:27
016
-12- 34-60-106. Additional powers of commission - rules -1
definitions - repeal. (9) (a) (I) Notwithstanding section 34-60-120 or any2
other provision of law
AND SUBJECT TO SUBSECTION (9)(a)(II) OF THIS3
SECTION, the commission, as to class II AND CLASS VI injection wells4
classified in 40 CFR 144.6, may perform all acts for the purpose
5
PURPOSES of protecting underground sources of drinking water in6
accordance with state programs authorized by
THE FEDERAL "SAFE7
D
RINKING WATER ACT", 42 U.S.C. sec. 300f et seq., and regulations8
under those sections, as amended,
AND ENSURING THE SAFE AND9
EFFECTIVE SEQUESTRATION OF GREENHOUSE GASES IN A VERIFIABLE
10
MANNER THAT MEETS COLORADO'S SHORT- AND LONG-TERM GREENHOUSE11
GAS EMISSION REDUCTION GOALS , AS SET FORTH IN SECTION 25-7-10212
(2)(g).13
(II) I
N PERFORMING ACTS FOR THE PURPOSE OF ENSURING THE SAFE14
AND EFFECTIVE SEQUESTRATION OF GREENHOUSE GASES PURSUANT TO15
SUBSECTION (9)(a)(I) OF THIS SECTION, THE COMMISSION SHALL ACT IN16
ACCORDANCE WITH SUBSECTION (9)(c) OF THIS SECTION AND ONLY AFTER17
THE GOVERNOR AND THE COMMISSION HAVE MADE AN AFFIRMATIVE18
DETERMINATION THAT THE STATE HAS SUFFICIENT RESOURCES NECESSARY19
TO ENSURE THE SAFE AND EFFECTIVE REGULATION OF THE SEQUESTRATION20
OF GREENHOUSE GASES IN ACCORDANCE WITH THE FINDINGS FROM THE21
COMMISSION'S STUDY CONDUCTED PURSUANT TO SUBSECTION (9)(b) OF22
THIS SECTION.23
(b) The commission shall:24
(I) Conduct a study to evaluate what resources are needed to25
ensure the safe and effective regulation of the sequestration of greenhouse26
gases as that term is defined in section 25-7-140 (6),
and to identify and27
016
-13- assess the applicable resources that the commission or other state1
agencies have; and2
(c) (I) T
HE COMMISSION MAY SEEK CLASS VI INJECTION WELL3
PRIMACY UNDER THE FEDERAL "SAFE DRINKING WATER ACT", 42 U.S.C.4
SEC. 300f ET SEQ., AS AMENDED, AFTER THE COMMISSION:5
(A) D
ETERMINES IT HAS THE NECESSARY RESOURCES FOR THE6
APPLICATION OUTLINED IN THE COMMISSION 'S STUDY PERFORMED7
PURSUANT TO SUBSECTION (9)(b) OF THIS SECTION; AND8
(B) H
OLDS A PUBLIC HEARING ON THE MATTER .9
(II) T
HE COMMISSION MAY ISSUE AND ENFORCE PERMITS AS10
NECESSARY FOR THE PURPOSE SET FORTH IN THIS SUBSECTION (9)(c) AFTER11
THE COMMISSION MAKES THE DETERMINATION AND HOLDS THE HEARING12
SET FORTH IN SUBSECTION (9)(c)(I) OF THIS SECTION AND THE COMMISSION13
AND THE GOVERNOR SATISFY THE REQUIREMENTS SET FORTH IN14
SUBSECTION (9)(a) OF THIS SECTION. IN ISSUING AND ENFORCING PERMITS15
PURSUANT TO THIS SUBSECTION (9)(c), THE COMMISSION SHALL ENSURE16
THAT THE PERMITTING OF A CLASS VI INJECTION WELL:
17
(A) D
OES NOT DISPROPORTIONATELY AFFECT THE HEALTH AND
18
WELL-BEING OF DISPROPORTIONATELY IMPACTED COMMUNITIES ; AND19
(B) C
OMPLIES WITH A LOCAL GOVERNMENT 'S SITING OF THE
20
PROPOSED CLASS VI INJECTION WELL LOCATION.21
(III) (A) T
HE COMMISSION SHALL REQUIRE EACH OPERATOR OF A22
CLASS VI INJECTION WELL TO PROVIDE ADEQUATE FINANCIAL ASSURANCE23
DEMONSTRATING THAT THE OPERATOR IS FINANCIALLY CAPABLE OF24
FULFILLING EVERY OBLIGATION IMPOSED ON THE OPERATOR UNDER THIS25
ARTICLE 60 AND UNDER RULES THAT THE COMMISSION ADOPTS PURSUANT26
TO THIS ARTICLE 60.27
016
-14- (B) THE FINANCIAL ASSURANCE REQUIRED UNDER THIS1
SUBSECTION (9)(c)(III) MUST COVER THE COST OF CORRECTIVE ACTION ,2
INJECTION WELL PLUGGING, POST-INJECTION SITE CARE, SITE CLOSURE,3
AND ANY EMERGENCY AND REMEDIAL RESPONSE .4
(C) T
HE COMMISSION SHALL ADOPT RULES REQUIRING THAT THE5
FINANCIAL ASSURANCE COVER THE COST OF OBLIGATIONS THAT ARE IN6
ADDITION TO THE OBLIGATIONS LISTED IN SUBSECTION (9)(c)(III)(B) OF7
THIS SECTION IF THE ADDITIONAL OBLIGATIONS ARE REASONABLY8
ASSOCIATED WITH CLASS VI INJECTION WELLS AND LOCATIONS.9
(D) A
N OPERATOR SHALL MAINTAIN THE FINANCIAL ASSURANCE10
REQUIRED UNDER THIS SUBSECTION (9)(c)(III) OR UNDER ANY RULES11
ADOPTED PURSUANT TO THIS SUBSECTION (9)(c)(III) UNTIL THE12
COMMISSION APPROVES SITE CLOSURE , AS SPECIFIED IN RULES ADOPTED BY13
THE COMMISSION. COMMISSION APPROVAL OF A SITE CLOSURE DOES NOT14
OTHERWISE MODIFY AN OPERATOR 'S RESPONSIBILITY TO COMPLY WITH15
APPLICABLE LAWS.16
(E) F
INANCIAL ASSURANCE PROVIDED UNDER THIS SUBSECTION17
(9)(c)(III)
MAY BE IN THE FORM OF A SURETY BOND , INSURANCE, OR ANY18
OTHER INSTRUMENT THAT THE COMMISSION , BY RULE, DEEMS19
SATISFACTORY.20
(d) A
S USED IN THIS SUBSECTION (9), UNLESS THE CONTEXT21
OTHERWISE REQUIRES:22
(I) "C
ORRECTIVE ACTION" HAS THE MEANING SET FORTH IN 40 CFR23
146.81.24
(II) "D
ISPROPORTIONATELY IMPACTED COMMUNITY " HAS THE25
MEANING SET FORTH IN SECTION 24-4-109 (2)(b)(II).26
(III) "G
REENHOUSE GAS" HAS THE MEANING SET FORTH IN SECTION27
016
-15- 25-7-140 (6).1
(IV) "P
OST-INJECTION SITE CARE" HAS THE MEANING SET FORTH2
IN 40 CFR 146.81.3
(V) "S
ITE CLOSURE" HAS THE MEANING SET FORTH IN 40 CFR4
146.81.5
SECTION 9. In Colorado Revised Statutes, 38-30-168, amend
6
(1)(b)(II) and (1)(b)(III); and add (1)(b)(IV) as follows:7
38-30-168. Unreasonable restrictions on renewable energy8
generation devices - definitions. (1) (b) As used in this section,9
"renewable energy generation device" means:10
(II) A wind-electric generator that meets the interconnection11
standards established in rules promulgated by the public utilities12
commission pursuant to section 40-2-124; or13
(III) A geothermal energy device;
OR
14
(IV) A
HEAT PUMP SYSTEM, AS DEFINED IN SECTION 39-26-732
15
(2)(c).16
SECTION 10. In Colorado Revised Statutes, 38-33.3-106.7,17
amend (1)(b)(VI) as follows:18
38-33.3-106.7. Unreasonable restrictions on energy efficiency19
measures - definitions. (1) (b) As used in this section, "energy20
efficiency measure" means a device or structure that reduces the amount21
of energy derived from fossil fuels that is consumed by a residence or22
business located on the real property. "Energy efficiency measure" is23
further limited to include only the following types of devices or24
structures:25
(VI) A heat pump
SYSTEM, AS DEFINED IN SECTION 39-26-732
26
(2)(c).27
016
-16- SECTION 11. In Colorado Revised Statutes, add 39-22-549 as1
follows:2
39-22-549. Tax credit for reducing emissions from certain3
lawn equipment - report - legislative declaration - tax preference4
performance statement - definitions - repeal. (1) (a) T HE GENERAL5
ASSEMBLY FINDS AND DECLARES THAT :6
(I) G
ASOLINE-POWERED LAWN EQUIPMENT , SUCH AS LAWN7
MOWERS, LEAF BLOWERS, TRIMMERS, AND SNOWBLOWERS , EMITS HIGH8
LEVELS OF AIR POLLUTANTS, INCLUDING NITROGEN OXIDES AND VOLATILE9
ORGANIC COMPOUNDS THAT , TOGETHER, FORM OZONE AND PARTICULATE10
MATTER;11
(II) R
EPLACING SUCH GASOLINE-POWERED LAWN EQUIPMENT WITH12
ELECTRIC-POWERED LAWN EQUIPMENT CAN REDUCE OZONE POLLUTION ;13
AND14
(III) T
HE PURPOSE OF THE TAX CREDIT IN SUBSECTION (3) OF THIS15
SECTION IS TO INCENTIVIZE THE VOLUNTARY TRANSITION FROM16
GASOLINE-POWERED TO ELECTRIC-POWERED LAWN EQUIPMENT .17
(b) I
N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH18
REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE19
A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY20
LEGISLATIVE DECLARATION, THE GENERAL ASSEMBLY FURTHER FINDS AND21
DECLARES THAT:22
(I) T
HE GENERAL LEGISLATIVE PURPOSE OF THE TAX CREDIT23
ALLOWED BY SUBSECTION (3) OF THIS SECTION IS TO INDUCE CERTAIN24
DESIGNATED BEHAVIORS BY TAXPAYERS , SPECIFICALLY THE PURCHASE OF25
ELECTRIC-POWERED LAWN EQUIPMENT ; AND26
(II) I
N ORDER TO ALLOW THE GENERAL ASSEMBLY AND THE STATE27
016
-17- AUDITOR TO MEASURE THE EFFECTIVENESS OF THE TAX CREDIT , THE1
DEPARTMENT OF REVENUE SHALL SUBMIT TO THE GENERAL ASSEMBLY2
AND THE STATE AUDITOR AN ANNUAL REPORT IN ACCORDANCE WITH3
SUBSECTION (5) OF THIS SECTION DETAILING THE SALES OF NEW ,4
ELECTRIC-POWERED LAWN EQUIPMENT , AS REPORTED BY TAXPAYERS5
CLAIMING THE TAX CREDIT AUTHORIZED UNDER SUBSECTION (3) OF THIS6
SECTION.7
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE8
REQUIRES:9
(a) "L
AWN EQUIPMENT" MEANS A LAWN MOWER , LEAF BLOWER,10
TRIMMER, OR SNOWBLOWER.11
(b) "P
URCHASE PRICE" HAS THE MEANING SET FORTH IN SECTION12
39-26-102
(7).13
(c) "R
ETAILER" HAS THE MEANING SET FORTH IN SECTION
14
39-26-102
(8).
15
(d) "R
ETAIL SALE" HAS THE MEANING SET FORTH IN SECTION
16
39-26-102
(9).
17
(3) (a) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER18
J
ANUARY 1, 2024, BUT BEFORE JANUARY 1, 2027, A RETAILER QUALIFIED
19
PURSUANT TO SUBSECTION (3)(d)(III) OF THIS SECTION IS ALLOWED A TAX20
CREDIT AGAINST THE TAX IMPOSED PURSUANT TO THIS ARTICLE 22 IN AN21
AMOUNT EQUAL TO THIRTY PERCENT OF THE AGGREGATE PURCHASE PRICE22
FOR ALL RETAIL SALES OF NEW, ELECTRIC-POWERED LAWN EQUIPMENT23
THAT THE QUALIFIED RETAILER SOLD IN THE STATE DURING THE TAX YEAR.24
(b) I
N ORDER TO QUALIFY FOR THE TAX CREDIT ALLOWED UNDER25
THIS SUBSECTION (3), THE QUALIFIED RETAILER
SHALL PROVIDE TO THE26
PURCHASER, AT THE TIME OF THE RETAIL SALE OF NEW ,27
016
-18- ELECTRIC-POWERED LAWN EQUIPMENT , A DISCOUNT ON THE PURCHASE1
PRICE OF THE LAWN EQUIPMENT EQUAL TO THIRTY PERCENT OF THE2
PURCHASE PRICE AND SHALL SHOW THE DISCOUNT AS A SEPARATE ITEM ON3
THE RECEIPT OR INVOICE PROVIDED TO THE PURCHASER .4
(c) T
O DETERMINE WHETHER A QUALIFIED RETAILER
SOLD NEW,5
ELECTRIC-POWERED LAWN EQUIPMENT IN THIS STATE , THE RULES OF6
SECTION 39-26-104 (3)(a) APPLY.7
(d) (I) THE QUALIFIED RETAILER SHALL ELECTRONICALLY8
SUBMIT A REPORT TO THE DEPARTMENT OF REVENUE , ON A QUARTERLY9
BASIS AND IN THE FORM AND MANNER REQUIRED BY THE DEPARTMENT ,10
THAT DETAILS THE NUMBER OF PIECES OF NEW, ELECTRIC-POWERED LAWN11
EQUIPMENT SOLD BY THE QUALIFIED RETAILER IN THE REPORTING PERIOD12
FOR WHICH THE QUALIFIED RETAILER PROVIDED A DISC OUNT AS DESCRIBED13
IN SUBSECTION (3)(b) OF THIS SECTION. THE DEPARTMENT MAY REQUIRE14
THE QUALIFIED RETAILER TO INCLUDE ADDITIONAL INFORMATION IN THE15
REPORT.16
(II) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
17
1,
2025, THE QUALIFIED RETAILER MAY ELECT ADVANCE PAYMENTS OF THE
18
CREDIT ALLOWED PURSUANT TO THIS SECTION AS SPECIFIED IN SECTION19
39-22-629.20
(III) B
EFORE SELLING A PIECE OF NEW, ELECTRIC-POWERED LAWN
21
EQUIPMENT FOR WHICH A RETAILER INTENDS TO CLAIM A CREDIT22
PURSUANT TO THIS SECTION , THE RETAILER SHALL REGISTER AS A23
QUALIFIED RETAILER BY FILING WITH THE DEPARTMENT OF REVENUE A24
REGISTRATION STATEMENT IN THE FORM AND MANNER THAT THE25
DEPARTMENT PRESCRIBES.26
(4) I
F A CREDIT AUTHORIZED BY THIS SECTION EXCEEDS THE
27
016
-19- INCOME TAX DUE ON THE INCOME OF THE QUALIFIED RETAILER FOR THE1
TAXABLE YEAR, THE EXCESS CREDIT MAY NOT BE CARRIED FORWARD AND2
MUST BE REFUNDED TO THE QUALIFIED RETAILER .3
(5) P
URSUANT TO SECTION 39-21-304 (3), NOTWITHSTANDING4
SECTION 24-1-136 (11)(a)(I), AND FOR THE PURPOSE OF PROVIDING DATA5
THAT ALLOWS THE GENERAL ASSEMBLY AND THE STATE AUDITOR TO6
MEASURE THE EFFECTIVENESS OF THE TAX CREDIT CREATED IN7
SUBSECTION (3) OF THIS SECTION, THE DEPARTMENT OF REVENUE , ON OR8
BEFORE JANUARY 1, 2025, AND ON OR BEFORE JANUARY 1 OF EACH YEAR9
THEREAFTER THROUGH JANUARY 1, 2028, SHALL SUBMIT TO THE GENERAL10
ASSEMBLY AND THE STATE AUDITOR A REPORT DETAILING THE SALES OF11
NEW, ELECTRIC-POWERED LAWN EQUIPMENT , AS REPORTED BY A
12
QUALIFIED RETAILER CLAIMING THE TAX CREDIT AUTHORIZED UNDER13
SUBSECTION (3) OF THIS SECTION. THE TAX CREDIT ESTABLISHED IN THIS14
SECTION MEETS ITS PURPOSE IF SALES OF NEW, GASOLINE-POWERED LAWN15
EQUIPMENT ARE SIGNIFICANTLY REDUCED WITHIN FIVE YEARS AFTER THE16
TAX CREDIT BECOMES EFFECTIVE , AS DETERMINED BY THE GENERAL17
ASSEMBLY AND THE STATE AUDITOR PURS UANT TO SECTION 39-21-304 (3).18
(6) T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2033.19
SECTION 12. In Colorado Revised Statutes, 39-29-110, amend
20
(9)(b) as follows:21
39-29-110. Local government severance tax fund - creation -22
administration - definitions - repeal.23
(9) (b) This subsection (9) is repealed, effective July 1, 2023 JULY24
1,
2025.
25
SECTION 13. In Session Laws of Colorado 2021, amend section26
3 of chapter 225, (HB 21-1253), as follows:27
016
-20- Section 3. Appropriation. For the 2020-21 state fiscal year,1
$5,000,000 is appropriated to the department of local affairs for use by2
the division of local government. This appropriation is from the local3
government severance tax fund created in section 39-29-110 (1)(a)(I),4
C.R.S. To implement this act, the division of local government may use5
this appropriation for grants for renewable and clean energy6
implementation projects that meet the division's eligibility criteria for7
funding under the department's renewable and clean energy initiative8
program. Any money appropriated in this section not expended prior to9
July 1, 2021 JULY 1, 2025, is further appropriated to the division of local10
government for the 2021-22 and 2022-23 state fiscal years for the same11
purpose
UNTIL THE MONEY IS FULLY EXPENDED .
12
SECTION 14. In Colorado Revised Statutes, 39-22-629, amend13
as added by House Bill 23-1272 (1)(a) as follows:14
39-22-629. Advance payments of income tax credits -15
definitions - repeal. (1) As used in this section, unless the context16
otherwise requires:17
(a) "Applicable credit" means the credits allowed in sections18
39-22-516.7, 39-22-516.8, 39-22-549, and 39-22-553.19
SECTION 15. In Colorado Revised Statutes, 40-1-102, amend20
(1.3); and add (1.4), (8.2), and (8.3) as follows:21
40-1-102. Definitions. As used in articles 1 to 7 of this title 40,22
unless the context otherwise requires:23
(1.3) "Charge" includes any consideration, however denominated,24
paid or provided by a retail cooperative electric association to a wholesale25
electric cooperative in connection with an agreement by which the retail26
cooperative electric association terminates a wholesale electric service27
016
-21- contract with the wholesale electric cooperative "CERTIFICATE OF1
COMPLETION" MEANS AN ATTESTATION THAT AN INTERCONNECTION2
CUSTOMER SUBMITS TO A PUBLIC UTILITY TO CONFIRM THAT A RETAIL3
DISTRIBUTED GENERATION RESOURCE HAS BEEN PROPERLY INSPECTED OR4
OTHERWISE CERTIFIED TO MEET THE SAFE OPERATION REQUIREMENTS OF5
A LOCAL GOVERNMENT 'S BUILDING CODE ENFORCEMENT AUTHORITY .6
(1.4) "C
HARGE" INCLUDES ANY CONSIDERATION , HOWEVER
7
DENOMINATED, PAID OR PROVIDED BY A RETAIL COOPERATIVE ELECTRIC8
ASSOCIATION TO A WHOLESALE ELECTRIC COOPERATIVE IN CONNECTION9
WITH AN AGREEMENT BY WHICH THE RETAIL COOPERATIVE ELECTRIC10
ASSOCIATION TERMINATES A WHOLESALE ELECTRIC SERVICE CONTRACT11
WITH THE WHOLESALE ELECTRIC COOPERATIVE .12
(8.2) "I
NTERCONNECTION AGREEMENT " MEANS AN AGREEMENT
13
BETWEEN A PUBLIC UTILITY AND AN INTERCONNECTION CUSTOMER TO14
INTERCONNECT A RETAIL DISTRIBUTED GENERATION RESOURCE TO THE15
UTILITY SYSTEM.16
(8.3) (a) "I
NTERCONNECTION CUSTOMER " MEANS AN ENTITY THAT
17
PROPOSES TO INTERCONNECT A RETAIL DISTRIBUTED GENERATION18
RESOURCE ON THE DISTRIBUTION SYSTEM OF A PUBLIC UTILITY .19
(b) "I
NTERCONNECTION CUSTOMER " INCLUDES AN AFFILIATE OR A
20
SUBSIDIARY OF A PUBLIC UTILITY THAT PROPOSES TO INTERCONNECT A21
RETAIL DISTRIBUTED GENERATION RESOURCE TO THE PUBLIC UTILITY 'S22
SYSTEM.23
SECTION 16. In Colorado Revised Statutes, 40-1-126, add (2.5)24
as follows:25
40-2-126. Transmission facilities - biennial review - energy26
resource zones - definitions - plans - approval - cost recovery -27
016
-22- powerline trail consideration. (2.5) I N REVIEWING A PLAN THAT AN1
ELECTRIC UTILITY SUBMITS PURSUANT TO SUBSECTION (2)(b) OF THIS2
SECTION, THE COMMISSION SHALL CONSIDER THE NEED FOR EXPANDED3
TRANSMISSION CAPACITY IN THE STATE , INCLUDING THE ABILITY TO4
EXPAND CAPACITY THROUGH THE CONSTRUCTION OF NEW TRANSMISSION5
LINES, IMPROVEMENTS TO EXISTING TRANSMISSION LINES , AND6
CONNECTIONS TO ORGANIZED WHOLESALE MARKETS , AS DEFINED IN7
SECTION 40-5-108 (1)(a).8
9
SECTION 17. In Colorado Revised Statutes, 40-2-114, amend10
(2)(a)(III) as follows:11
40-2-114. Disposition of fees collected - telecommunications12
utility fund - fixed utility fund - appropriation. (2) (a) Money in the13
funds created in subsection (1) of this section shall be expended only to14
defray the full amount determined by the general assembly for:15
(III) With regard only to expenditures from the public utilities16
commission fixed utility fund created in subsection (1)(b) of this section,17
the administrative expenses, not to exceed five hundred thousand dollars18
annually, incurred by the Colorado electric transmission authority in19
carrying out its duties under article 42 of this title 40. The Colorado20
electric transmission authority shall remit to the
PUBLIC UTILITIES
21
COMMISSION fixed utility fund any amounts it receives in excess of its22
actual administrative expenses plus a fifteen FIFTY percent reserve23
margin.24
SECTION 18. In Colorado Revised Statutes, amend 40-2-135 as25
follows:26
40-2-135. Retail distributed generation - customers' rights -27
016
-23- rules. (1) A retail electric utility customer is entitled to generate,1
consume, store, and export electricity produced from eligible energy2
resources to the electric grid through the use of customer-sited retail3
distributed generation, as defined in section 40-2-124 (1)(a)(VIII), subject4
to reliability standards, interconnection rules, and procedures, as5
determined by the commission.6
(2) (a) A
RETAIL ELECTRIC UTILITY VIOLATES THIS SECTION IF THE
7
UTILITY FAILS TO PROVIDE REASONABLE , GOOD FAITH, AND TIMELY8
SERVICE TO AN INTERCONNECTION CUSTOMER AND SUCH VIOLATION MAY9
RESULT IN COMMISSION ACTION , INCLUDING THE ASSESSMENT OF10
MONETARY FINES AGAINST THE RETAIL ELECTRIC UTILITY . IF A RETAIL11
ELECTRIC UTILITY FAILS TO PROVIDE TIMELY SERVICE AND ADHERE TO12
TIMELINES THAT THE COMMISSION ESTABLISHES AS PART OF THE13
COMMISSION'S INTERCONNECTION RULES, THE RETAIL ELECTRIC UTILITY14
MAY BE SUBJECT TO PENALTIES OF UP TO TWO THOUSAND DOLLARS PER15
DAY FOR EACH DAY THAT THE VIOLATION OCCURRED .16
(b) T
HE COMMISSION SHALL ADOPT RULES TO ANNUALLY ADJUST
17
THE PENALTY AMOUNT SET FORTH IN SUBSECTION (2)(a) OF THIS SECTION18
BASED ON THE ANNUAL PERCENTAGE CHANGE IN THE UNITED STATES19
DEPARTMENT OF LABOR'S BUREAU OF LABOR STATISTICS CONSUMER PRICE20
INDEX FOR THE DENVER-AURORA-LAKEWOOD AREA FOR ALL ITEMS PAID21
BY ALL URBAN CONSUMERS , OR ITS SUCCESSOR INDEX.22
(c) (I) F
OR A RETAIL DISTRIBUTED GENERATION RESOURCE THAT
23
IS TWENTY-FIVE KILOWATTS OR LESS, A PUBLIC UTILITY SHALL PROVIDE AN24
INTERCONNECTION CUSTOMER AN EXECUTED INTERCONNECTION25
AGREEMENT NO MORE THAN THIRTY BUSINESS DAYS AFTER RECEIVING26
PAYMENT OF AN INTERCONNECTION FEE FROM THE INTERCONNECTION27
016
-24- CUSTOMER.1
(II) F
OLLOWING THE CONSTRUCTION OF A RETAIL DISTRIBUTED
2
GENERATION RESOURCE , A PUBLIC UTILITY MUST PROVIDE3
INTERCONNECTION OF THE CUSTOMER 'S RETAIL DISTRIBUTED GENERATION4
RESOURCE NO MORE THAN THIRTY BUSINESS DAYS AFTER THE5
INTERCONNECTION CUSTOMER SUBMITS TO THE PUBLIC UTILITY A6
CERTIFICATE OF COMPLETION.7
(III) I
F THE SUM OF A PUBLIC UTILITY'S COMPLIANCE WITH THESE
8
TIMES SET FORTH IN THIS SUBSECTION (2)(c) EXCEEDS SIXTY DAYS, THE9
PUBLIC UTILITY MAY BE SUBJECT TO PENALTIES CONSISTENT WITH THIS10
SUBSECTION (2).11
(d) A
PUBLIC UTILITY IS NOT SUBJECT TO PENALTIES UNDER THIS
12
SUBSECTION (2) IF THE PUBLIC UTILITY CAN DEMONSTRATE THAT :13
(I) T
HE INTERCONNECTION CUSTOMER FAILED TO TIMELY REMEDY
14
ANY MATERIAL DEFECTS IN THE COMPLETION OF THE INTERCONNECTION15
CUSTOMER'S APPLICATION FOR INTERCONNECTION AND THE PUBLIC16
UTILITY IDENTIFIED THE DEFECTS DURING ITS REVIEW OF THE17
APPLICATION;18
(II) T
HE RETAIL DISTRIBUTED GENERATION RESOURCE CANNOT BE
19
SAFELY INTERCONNECTED TO THE PUBLIC UTILITY 'S SYSTEM IN A MANNER20
CONSISTENT WITH THE COMMISSION 'S INTERCONNECTION RULES; OR21
(III) O
THER EXTENUATING CIRCUMSTANCES CAUSED A DELAY IN
22
INTERCONNECTION.23
(3) (a) A
N INTERCONNECTION CUSTOMER MAY FILE A COMPLAINT
24
WITH THE COMMISSION IN ACCORDANCE WITH SECTION 40-6-108 ALLEGING25
THAT A PUBLIC UTILITY HAS VIOLATED SUBSECTION (2) OF THIS SECTION.26
(b) I
N CONSIDERING A COMPLAINT FILED PURSUANT TO THIS
27
016
-25- SUBSECTION (3), THE COMMISSION MAY ORDER THE PUBLIC UTILITY TO1
REFUND INTERCONNECTION STUDY FEES CHARGED TO THE2
INTERCONNECTION CUSTOMER . IF A PUBLIC UTILITY IS ORDERED TO3
REFUND SUCH INTERCONNECTION STUDY FEES , SUCH REFUND IS NOT AN4
EXPENSE THAT THE PUBLIC UTILITY MAY RECOVER FROM ITS RATEPAYERS .5
(4) T
HE COMMISSION SHALL ONLY ASSESS THE PENALTIES SET
6
FORTH IN SUBSECTION (2)(a) OF THIS SECTION AGAINST A PUBLIC UTILITY7
IF:8
(a) A
N INTERCONNECTION CUSTOMER OR COMMISSION STAFF HAS
9
FILED, AND THE COMMISSION HAS ADJUDICATED , A COMPLAINT PURSUANT10
TO SECTION 40-6-108; AND11
(b) T
HE PUBLIC UTILITY HAS A TARIFF ON FILE WITH THE
12
COMMISSION THAT PROVIDES INCENTIVES AND PENALTIES TO PROVIDE13
INTERCONNECTION SERVICE AND THE PUBLIC UTILITY HAS EXCEEDED THE14
TIMELINES ESTABLISHED IN THE TARIFF FILING.15
(5) I
N JURISDICTIONS THAT ALLOW INTERCONNECTION WITHOUT A
16
PUBLIC UTILITY PRESENT, AN INTERCONNECTION CUSTOMER MAY INSTALL17
ALL NECESSARY METERING EQUIPMENT AND ENERGIZE THE SYSTEM18
FOLLOWING INSTALLATION IF:19
(a) T
HE INTERCONNECTION CUSTOMER HAS AN INTERCONNECTION
20
AGREEMENT WITH A PUBLIC UTILITY AND A CERTIFICATE OF COMPLETION21
FROM A LOCAL GOVERNMENT 'S BUILDING CODE ENFORCEMENT22
AUTHORITY; AND23
(b) T
HE INSTALLATION AND ENERGIZING WORK IS OVERSEEN BY A
24
LICENSED MASTER ELECTRICIAN.25
(6) A
PUBLIC UTILITY MAY RECOVER ITS PRUDENTLY INCURRED
26
COSTS TO FACILITATE A TIMELY INTERCONNECTION , WHICH COSTS MAY27
016
-26- INCLUDE THE COST OF EQUIPMENT THAT THE PUBLIC UTILITY PROCURES1
FOR FUTURE UPGRADES NEEDED TO INTERCONNECT RETAIL DISTRIBUTED2
GENERATION RESOURCES. A PUBLIC UTILITY MAY RECOVER THE COSTS OF3
ANY SUCH EQUIPMENT INVENTORY AS CAPITAL WORK IN PROGRESS IF THE4
INVENTORY IS PROJECTED TO BE USED WITHIN FIVE YEARS OF ITS5
PROCUREMENT AND WITH A RETURN AT THE MOST RECENTLY AUTHORIZED6
WEIGHTED AVERAGE COST OF CAPITAL .7
SECTION 19. In Colorado Revised Statutes, 40-7-105, amend8
(1); and add (1.5) and (4) as follows:9
40-7-105. Violations - penalty - separate offenses - rules.10
(1) Any public utility which THAT violates or fails to comply with any11
provision of the state constitution or of articles 1 to 7 of this title TITLE 4012
or which THAT fails, omits, or neglects to obey, observe, or comply with13
any order, decision, decree, rule, direction, demand, or requirement of the14
commission or any part or provision thereof, except an order for the15
payment of money, in a case in which a penalty has not been provided for16
such THE public utility, is subject to a penalty of not more than two17
TWENTY thousand dollars for each PER offense FOR EACH DAY THAT THE18
OFFENSE CONTINUES.19
(1.5) (a) A
NY PROPOSED PENALTY IS SUBJECT TO A FINDING BY THE
20
COMMISSION OF CUSTOMER HARM THAT IS COMMENSURATE WITH THE21
AMOUNT OF THE PENALTY LEVIED . IN DETERMINING THE AMOUNT OF A22
PENALTY OR WHETHER ANY PENALTY IS LEVIED , THE COMMISSION SHALL23
ALSO CONSIDER FACTORS INCLUDING :24
(I) T
HE SIZE OF THE UTILITY;
25
(II) F
ACTORS INFLUENCING THE VIOLATION ;
26
(III) T
HE UTILITY'S PREVIOUS HISTORY OF ANY SIMILAR
27
016
-27- VIOLATIONS;1
(IV) R
EMEDIAL MEASURES; AND
2
(V) A
NY OTHER FACTORS THAT MAY MITIGATE ANY HARM TO
3
CUSTOMERS.4
(b) T
HE COMMISSION SHALL ADOPT RULES TO ANNUALLY ADJUST
5
THE MAXIMUM PER-DAY PENALTY AMOUNT SET FORTH IN SUBSECTION (1)6
OF THIS SECTION BASED ON THE ANNUAL PERCENTAGE C HANGE IN THE7
U
NITED STATES DEPARTMENT OF LABOR 'S BUREAU OF LABOR STATISTICS
8
CONSUMER PRICE INDEX FOR THE DENVER-AURORA-LAKEWOOD AREA FOR9
ALL ITEMS PAID BY ALL URBAN CONSUMERS , OR ITS SUCCESSOR INDEX.10
(4) A
NY PENALTY THAT THE COMMISSION ASSESSES AGAINST A
11
UTILITY UNDER THIS SECTION IS NOT RECOVERABLE AS AN EXPENSE12
PAYABLE BY THE UTILITY'S RATEPAYERS.13
SECTION 20. In Colorado Revised Statutes, 40-3.2-108, amend14
(2)(a)(II) and (2)(p) introductory portion as follows:15
40-3.2-108. Clean heat targets - legislative declaration -16
definitions - plans - rules - reports. (2) Definitions. As used in this17
section, unless the context otherwise requires:18
(a) "Biomethane":19
(II) Includes biomethane recovered from manure management20
systems or anaerobic digesters,
INCLUDING FROM OPERATIONS FOR DAIRY
21
COWS, BEEF CATTLE, POULTRY, SWINE, OR SHEEP, that has been processed22
to meet pipeline quality.23
(p) "Recovered methane protocol" means a documented set of24
procedures and requirements established by the air quality control25
commission to quantify ongoing greenhouse gas emission reductions or26
greenhouse gas removal enhancements achieved by a recovered methane27
016
-28- project and to calculate the project baseline. A RECOVERED METHANE1
PROTOCOL THAT THE AIR QUALITY CONTROL COMMISSION ADOPTS FOR2
BIOMETHANE FROM MANURE MANAGEMENT SYSTEMS MUST ALLOW FOR3
THE USE OF MANURE FROM BEEF CATTLE OPERATIONS . THE AIR QUALITY4
CONTROL COMMISSION MAY ALSO ADOPT A RECOVERED METHANE5
PROTOCOL THAT IS SPECIFIC TO MANURE M ANAGEMENT FROM BEEF6
CATTLE OPERATIONS. A recovered methane protocol must:7
SECTION 21. 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, THAT ARE LOCATED PARTLY OR ENTIRELY WITHIN COLORADO
17
AND ARE APPROVED THROUGH A LOCAL GOVERNMENT 'S LAND-USE18
APPLICATION PROCESS, TO UPGRADE AND OPTIMIZE THE EXISTING19
FACILITIES.20
21
SECTION 22. In Colorado Revised Statutes, 40-42-107, amend22
(1) introductory portion as follows:23
40-42-107. Labor standards - apprenticeship - supervision.24
(1) The authority shall ensure that, in any construction, expansion,25
RENOVATION, REBUILDING, RECONDITIONING, or maintenance of facilities26
undertaken in Colorado pursuant to this article 42, all labor is performed27
016
-29- either by the employees of an electric utility, or by qualified contractors,1
or
BY both, and that, except as otherwise provided in subsection (3) of2
this section, an electric utility
DOES not use a contractor unless:3
SECTION 23. In Colorado Revised Statutes, add 40-42-109 as
4
follows:5
40-42-109. Study on expanding transmission capacity -6
reporting - repeal. (1) T
HE AUTHORITY SHALL EXPEND MONEY FROM THE
7
OPERATIONAL FUND CREATED IN SECTION 40-42-106 TO STUDY THE NEED8
FOR EXPANDED TRANSMISSION CAPACITY IN THE STATE , INCLUDING:9
(a) T
HE ABILITY TO EXPAND CAPACITY THROUGH THE
10
CONSTRUCTION OF NEW TRANSMISSION LINES , IMPROVEMENTS TO11
EXISTING TRANSMISSION LINES , AND CONNECTIONS TO ORGANIZED12
WHOLESALE MARKETS , AS DEFINED IN SECTION 40-5-108 (1)(a);13
(b) W
HETHER AND HOW EXPANDED TRANSMISSION CAPACITY WILL :
14
(I) I
MPROVE THE SYSTEM RELIABILITY OF THE ELECTRIC GRID AND
15
PROVIDE OPTIMAL UTILIZATION OF ELECTRICITY FLOWS IN THE STATE ;16
(II) S
UPPORT THE STATE'S EMISSION REDUCTION GOALS SET FORTH
17
IN SECTION 25-7-102 (2)(g);18
(III) S
UPPORT THE STATE'S FORECASTED ELECTRICITY NEEDS; AND
19
(IV) R
EDUCE LAND IMPACTS BY USING EXISTING RIGHTS -OF-WAY,
20
INCLUDING FOR LARGE CAPACITY TRANSMISSION LINES ; CO-LOCATING21
MULTIPLE TRANSMISSION LINES; RECONDUCTORING TRANSMISSION LINES ;22
AND STRATEGICALLY SITING NEW TRANSMISSION CORRIDORS .23
(2) T
HE AUTHORITY SHALL PREPARE :
24
(a) A
N INITIAL REPORT OF THE STUDY , INCLUDING ANY
25
RECOMMENDATIONS , AND PRESENT THE INITIAL REPORT TO THE26
COMMISSION ON OR BEFORE SEPTEMBER 1, 2024; AND27
016
-30- (b) A FINAL REPORT OF THE STUDY , INCLUDING ANY1
RECOMMENDATIONS , AND PRESENT THE FINAL REPORT TO THE JOINT2
COMMITTEE OF THE HOUSE OF REPRESENTATIVES ENERGY AND3
ENVIRONMENT COMMITTEE AND THE SENATE TRANSPORTATION AND4
ENERGY COMMITTEE, OR THEIR SUCCESSOR COMMITTEES , ON OR BEFORE5
J
ANUARY 31, 2025.
6
(3) T
HIS SECTION IS REPEALED, EFFECTIVE SEPTEMBER 1, 2025.
7
SECTION 24. In Colorado Revised Statutes, 29-20-108, add (7)8
as follows:9
29-20-108. Local government regulation - location,10
construction, or improvement of major electrical or natural gas11
facilities - powerline trail notification - expedited review for certain12
transmission line projects - legislative declaration - definitions. (7) A13
LOCAL GOVERNMENT SHALL EXPEDITE , AS PRACTICABLE,
ITS REVIEW OF A14
LAND USE APPLICATION WITH REGARD TO A PROPOSED PROJECT TO15
RENOVATE, REBUILD, OR RECONDITION A TRANSMISSION LINE IN16
ACCORDANCE WITH SECTION 40-42-104 (3)(c).17
SECTION 25. In Colorado Revised Statutes, 25-7-105, amend18
(1)(e)(II) as follows:19
25-7-105. Duties of commission - technical secretary - rules -20
legislative declaration - definitions. (1) Except as provided in sections21
25-7-130 and 25-7-131, the commission shall promulgate rules that are22
consistent with the legislative declaration set forth in section 25-7-10223
and necessary for the proper implementation and administration of this24
article 7, including:25
(e) (II) Consistent with section 25-7-102 (2)(g), the commission26
shall timely promulgate implementing rules and regulations. The27
016
-31- implementing rules may take into account other relevant laws and rules,1
as well as voluntary actions taken by local communities and the private2
sector, to enhance efficiency and cost-effectiveness, and shall be revised3
as necessary over time to ensure timely progress toward the 2025, 2030,4
2035, 2040, 2045, and 2050 goals. The implementing rules shall MUST5
provide for ongoing tracking of emission sources that adversely affect6
disproportionately impacted communities and are subject to rules7
implemented pursuant to this subsection (1)(e) and must include strategies8
designed to achieve reductions in harmful air pollution affecting those9
communities.10
SECTION 26. Appropriation. (1) For the 2023-24 state fiscal11
year, $191,790 is appropriated to the department of natural resources for12
use by the oil and gas conservation commission. This appropriation is13
from the oil and gas conservation and environmental response fund14
created in section 34-60-122 (5)(a), C.R.S. To implement this act, the15
commission may use this appropriation as follows:16
(a) $151,142 for program costs, which amount is based on an17
assumption that the commission will require an additional 1.6 FTE;18
(b) $19,500 for the underground injection program; and19
(c) $21,148 for the purchase of legal services.20
(2) For the 2023-24 state fiscal year, $288,016 is appropriated to21
the department of public health and environment for use by the air22
pollution control division. This appropriation is from the general fund. To23
implement this act, the division may use this appropriation as follows:24
(a) $135,054 for personal services related to stationary sources,25
which amount is based on an assumption that the subdivision will require26
an additional 1.4 FTE;27
016
-32- (b) $15,500 for operating expenses related to stationary sources;1
and2
(c) $137,462 for the purchase of legal services.3
(3) For the 2023-24 state fiscal year, $99,769 is appropriated to4
the department of revenue. This appropriation is from the general fund.5
To implement this act, the division may use this appropriation as follows:6
(a) $44,327 for use by taxation services for personal services,7
which amount is based on an assumption that the division will require an8
additional 0.7 FTE;9
(b) $15,007 for use by taxation services for operating expenses;10
and11
(c) $40,435 for use by administration for tax administration IT12
system (GenTax) support.13
(4) For the 2023-24 state fiscal year, $158,610 is appropriated to14
the department of law. This appropriation is from reappropriated funds15
received from the departments of natural resources and public health and16
environment under subsections (1)(c) and (2)(c) of this section and is17
based on an assumption that the department of law will require an18
additional 0.8 FTE. To implement this act, the department of law may use19
this appropriation to provide legal services for the departments of natural20
resources and public health and environment.21
SECTION 27. Act subject to petition - effective date.22
(1) Except as provided in subsection (2) of this section, this act takes23
effect at 12:01 a.m. on the day following the expiration of the ninety-day24
period after final adjournment of the general assembly; except that, if a25
referendum petition is filed pursuant to section 1 (3) of article V of the26
state constitution against this act or an item, section, or part of this act27
016
-33- within such period, then the act, item, section, or part will not take effect1
unless approved by the people at the general election to be held in2
November 2024 and, in such case, will take effect on the date of the3
official declaration of the vote thereon by the governor.4
(2) Section 39-22-549 (3)(d)(II), Colorado Revised Statutes, as5
enacted in section 8 of this act, and section 9 of this act take effect only6
if House Bill 23-1272 becomes law, in which case section 39-22-5497
(3)(d)(II), Colorado Revised Statutes, as enacted in section 8 of this act,8
and section 9 of this act take effect on the effective date of this act or9
House Bill 23-1272, whichever is later.10
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