First Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 23-0213.01 Jennifer Berman x3286
SENATE BILL 23-016
Senate Committees House Committees
Transportation & Energy Energy & Environment
Finance Finance
Appropriations 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
HOUSE
Amended 2nd Reading
April 26, 2023
SENATE
3rd Reading Unamended
April 14, 2023
SENATE
Amended 2nd Reading
April 13, 2023
SENATE SPONSORSHIP
Hansen, Buckner, Cutter, Danielson, Exum, Fenberg, Fields, Gonzales, Jaquez Lewis,
Kolker, Marchman, Moreno, Priola, Rodriguez, Winter F.
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, 25-7-142, amend19
(8)(c)(I) introductory portion and (8)(c)(II) introductory portion as20
follows:21
25-7-142. Energy benchmarking - data collection and access22
- utility requirements - task force - rules - reports - definitions -23
legislative declaration - repeal. (8) (c) (I) If at least two-thirds of the24
members appointed to the task force agree on recommendations pursuant25
to subsection (8)(a)(I) of this section, and the director of the office in26
consultation with the division determines that the recommendations meet27
016
-11- the greenhouse gas emission reduction requirements set forth in1
subsection (8)(a)(II) of this section, the division shall, on or before2
January 31, 2023, request that the commission publish a notice of3
proposed rule-making to adopt rules to implement performance standards.4
On or before June 1, 2023 SEPTEMBER 1, 2023, the commission, upon5
careful consideration of the recommendations of the task force as6
presented by the division, shall promulgate rules to establish performance7
standards. The commission shall also adopt rules regarding waivers and8
extensions of time regarding the performance standard requirements. The9
commission's rules must include a provision that an owner of a public10
building need only comply with performance standards with regard to11
work on a construction or renovation project that:12
(II) If two-thirds of the members of the task force cannot agree on13
recommendations or if the director of the office in consultation with the14
commission determines that the task force's recommendations do not meet15
the greenhouse gas emission reduction requirements set forth in16
subsection (8)(a)(II) of this section, the commission, on or before June 1,17
2023 SEPTEMBER 1, 2023, shall, by rule, adopt performance standards that18
meet the greenhouse gas emission reduction requirements set forth in19
subsection (8)(a)(II) of this section. The commission shall also adopt20
rules regarding waivers and extensions of time regarding the performance21
standard requirements. The commission's rules must include a provision22
that an owner of a public building need only comply with performance23
standards with regard to work on a construction or renovation project24
that:25
SECTION 7. In Colorado Revised Statutes, 40-3.2-108, amend26
(2)(c)(V); and add (2)(c)(V.5) and (2)(r) as follows:27
016
-12- 40-3.2-108. Clean heat targets - legislative declaration -1
definitions - plans - rules - reports. (2) Definitions. As used in this2
section, unless the context otherwise requires:3
(c) "Clean heat resource" means any one or a combination of:4
(V) Pyrolysis of tires if the pyrolysis meets a recovered methane5
protocol; and6
(V.5) W
ASTEWATER THERMAL ENERGY ; AND7
(r) "W
ASTEWATER THERMAL ENERGY " MEANS A SYSTEM THAT8
USES THERMAL ENERGY IN WASTEWATER ,
TO HEAT OR COOL A SPACE, OR9
FOR ANY OTHER USEFUL THERMAL PURPOSE THAT REDUCES GREENHOUSE10
GAS EMISSIONS FROM THE COMBUSTION OF GAS IN CUSTOMER END USES .11
SECTION 8. In Colorado Revised Statutes, 25-7-102, amend12
(2)(g) as follows:13
25-7-102. Legislative declaration. (2) It is further declared that:14
(g) (I) Accordingly, Colorado shall strive to increase renewable15
energy generation and eliminate statewide greenhouse gas pollution by16
the middle of the twenty-first century and have goals of achieving, at a17
minimum:18
(A) A twenty-six percent reduction in statewide greenhouse gas19
pollution by 2025;20
(B) A fifty percent reduction in statewide greenhouse gas21
pollution by 2030;22
(C) A
SIXTY-FIVE PERCENT REDUCTION IN STATEWIDE23
GREENHOUSE GAS POLLUTION BY 2035;24
(D)
A SEVENTY-FIVE PERCENT REDUCTION IN STATEWIDE25
GREENHOUSE GAS POLLUTION BY 2040;26
(E) A
NINETY PERCENT REDUCTION IN STATEWIDE GREENHOUSE27
016
-13- GAS POLLUTION BY 2045; and1
(F) A ninety ONE HUNDRED percent reduction in statewide2
greenhouse gas pollution by 2050.3
(II) The reductions identified in this subsection (2)(g) are4
measured relative to 2005 statewide greenhouse gas pollution levels.5
SECTION 9. In Colorado Revised Statutes, 34-60-106, amend6
(9)(a) and (9)(b)(I); and add (9)(c), (9)(d), (9)(e), (9.3), (9.5), and (9.7)7
as follows:8
34-60-106. Additional powers of commission - rules -9
definitions - repeal. (9) (a) (I) Notwithstanding section 34-60-120 or any10
other provision of law
AND SUBJECT TO SUBSECTION (9)(a)(II) OF THIS11
SECTION, the commission, as to class II AND CLASS VI injection wells12
classified in 40 CFR 144.6, may perform all acts for the purpose
13
PURPOSES of protecting underground sources of drinking water in14
accordance with state programs authorized by
THE FEDERAL "SAFE15
D
RINKING WATER ACT", 42 U.S.C. sec. 300f et seq., and regulations16
under those sections, as amended,
AND ENSURING THE SAFE AND17
EFFECTIVE SEQUESTRATION OF GREENHOUSE GASES IN A VERIFIABLE
18
MANNER THAT MEETS COLORADO'S SHORT- AND LONG-TERM GREENHOUSE19
GAS EMISSION REDUCTION GOALS , AS SET FORTH IN SECTION 25-7-10220
(2)(g).21
(II) I
N PERFORMING ACTS FOR THE PURPOSE OF ENSURING THE SAFE22
AND EFFECTIVE SEQUESTRATION OF GREENHOUSE GASES PURSUANT TO23
SUBSECTION (9)(a)(I) OF THIS SECTION, THE COMMISSION SHALL ACT IN24
ACCORDANCE WITH SUBSECTION (9)(c) OF THIS SECTION AND ONLY AFTER25
THE GOVERNOR AND THE COMMISSION HAVE MADE AN AFFIRMATIVE26
DETERMINATION THAT THE STATE HAS SUFFICIENT RESOURCES NECESSARY27
016
-14- TO ENSURE THE SAFE AND EFFECTIVE REGULATION OF THE SEQUESTRATION1
OF GREENHOUSE GASES IN ACCORDANCE WITH THE FINDINGS FROM THE2
COMMISSION'S STUDY CONDUCTED PURSUANT TO SUBSECTION (9)(b) OF3
THIS SECTION.4
(b) The commission shall:5
(I) Conduct a study to evaluate what resources are needed to6
ensure the safe and effective regulation of the sequestration of greenhouse7
gases as that term is defined in section 25-7-140 (6), and to identify and8
assess the applicable resources that the commission or other state9
agencies have; and10
(c) (I) T
HE COMMISSION MAY SEEK CLASS VI INJECTION WELL11
PRIMACY UNDER THE FEDERAL "SAFE DRINKING WATER ACT", 42 U.S.C.12
SEC. 300f ET SEQ., AS AMENDED, AFTER THE COMMISSION:13
(A) D
ETERMINES IT HAS THE NECESSARY RESOURCES FOR THE14
APPLICATION OUTLINED IN THE COMMISSION 'S STUDY PERFORMED15
PURSUANT TO SUBSECTION (9)(b) OF THIS SECTION; AND16
(B) H
OLDS A PUBLIC HEARING ON THE MATTER .17
(II) T
HE COMMISSION MAY ISSUE AND ENFORCE PERMITS AS18
NECESSARY FOR THE PURPOSE SET FORTH IN THIS SUBSECTION (9)(c) AFTER19
THE COMMISSION MAKES THE DETERMINATION AND HOLDS THE HEARING20
SET FORTH IN SUBSECTION (9)(c)(I) OF THIS SECTION AND THE COMMISSION21
AND THE GOVERNOR SATISFY THE REQUIREMENTS SET FORTH IN22
SUBSECTION (9)(a) OF THIS SECTION.23
(III) (A) IF THE CLASS VI INJECTION WELL IS PROPOSED TO BE24
SITED IN AN AREA THAT WOULD AFFECT A DISPROPORTIONATELY25
IMPACTED COMMUNITY , THE COMMISSION SHALL WEIGH THE GEOLOGIC26
STORAGE OPERATOR'S SUBMITTED CUMULATIVE IMPACTS ANALYSIS AND27
016
-15- DETERMINE WHETHER, ON BALANCE, THE CLASS VI INJECTION WELL WILL1
HAVE A POSITIVE EFFECT ON THE DISPROPORTIONATELY IMPACTED2
COMMUNITY. A PROPOSAL THAT WILL HAVE NEGATIVE NET CUMULATIVE3
IMPACTS ON ANY DISPROPORTIONATELY IMPACTED COMMUNITY MUST BE4
DENIED. THE COMMISSION'S DECISION MUST INCLUDE A PLAIN LANGUAGE5
SUMMARY OF ITS DETERMINATION .6
(B) THE COMMISSION MAY AMEND BY RULE THE CUMULATIVE7
EFFECTS ANALYSIS AND REQUIREMENTS SET FORTH IN THIS SUBSECTION8
(9)(c)(III) IF THE COMMISSION FINDS THE ANALYSIS AND REQUIREMENTS9
TO BE INCONSISTENT WITH, OR INCOMPLETE WITH RESPECT TO, THE10
FEDERAL ENVIRONMENTAL PROTECTION AGENCY 'S REQUIREMENTS FOR11
CLASS VI PRIMACY.12
(C) AS USED IN THIS SUBSECTION (9)(c)(III), "CUMULATIVE13
IMPACTS" MEANS THE EFFECT ON PUBLIC HEALTH AND THE ENVIRONMENT,14
INCLUDING THE EFFECT ON AIR QUALITY, WATER QUALITY, THE CLIMATE,15
NOISE, ODOR, WILDLIFE, AND BIOLOGICAL RESOURCES, CAUSED BY THE16
INCREMENTAL IMPACT THAT A PROPOSED NEW OR MODIFIED CLASS VI17
INJECTION WELL WOULD HAVE WHEN ADDED TO THE IMPACTS FROM OTHER18
PAST, PRESENT, AND REASONABLY FORESEEABLE FUTURE DEVELOPMENT19
OF ANY TYPE ON THE AFFECTED AREA, INCLUDING AN AIRSHED OR20
WATERSHED, OR ON A DISPROPORTIONATELY IMPACTED COMMUNITY .21
(IV) (A) THE 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
-16- (B) THE FINANCIAL ASSURANCE REQUIRED UNDER THIS1
SUBSECTION (9)(c)(IV) 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)(IV)(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)(IV) OR UNDER ANY RULES11
ADOPTED PURSUANT TO THIS SUBSECTION (9)(c)(IV) 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)(IV) MAY BE IN THE FORM OF A SURETY BOND, INSURANCE, OR ANY18
OTHER INSTRUMENT THAT THE COMMISSION , BY RULE, DEEMS19
SATISFACTORY.20
(d) IN ISSUING AND ENFORCING PERMITS PURSUANT TO SUBSECTION21
(9)(c) OF THIS SECTION, THE COMMISSION SHALL ENSURE, AFTER A PUBLIC22
HEARING, THAT:23
(I) THE PERMITTING OF A CLASS VI INJECTION WELL COMPLIES24
WITH A LOCAL GOVERNMENT'S SITING OF THE PROPOSED CLASS VI25
INJECTION WELL LOCATION;26
(II) THE PROPOSED NEW OR MODIFIED CLASS VI INJECTION WELL27
016
-17- HAS RECEIVED AN APPLICABLE AIR PERMIT FROM THE DIVISION OF1
ADMINISTRATION IN THE DEPARTMENT OF PUBLIC HEALTH AND2
ENVIRONMENT;3
(III) THE OPERATOR OF THE CLASS VI INJECTION WELL HAS4
RECEIVED THE CONSENT OF ANY SURFACE OWNER OR OWNERS OF THE5
LAND WHERE THE SURFACE DISTURBANCE WILL OCCUR AND HAS PROVIDED6
THE COMMISSION A WRITTEN CONTRACTUAL AGREEMENT THAT THE7
SURFACE OWNER OR OWNERS HAVE EXECUTED ; AND8
(IV) THE COMMISSION HAS EVALUATED AND ADDRESSED ANY9
CLASS VI INJECTION WELL IMPACTS FROM THE PROPOSED CLASS VI10
INJECTION WELL ON THE AFFECTED AREA TO ENSURE THE TERMS AND11
CONDITIONS OF ANY PERMIT ISSUED UNDER THIS SECTION ARE SUFFICIENT12
TO ENSURE THAT ANY CLASS VI INJECTION WELL IMPACTS ARE AVOIDED,13
MINIMIZED TO THE EXTENT PRACTICABLE, AND, TO THE EXTENT THAT ANY14
CLASS VI INJECTION WELL IMPACTS REMAIN, THAT THE IMPACTS ARE15
MITIGATED. THE COMMISSION SHALL PROVIDE A PLAIN LANGUAGE16
SUMMARY OF HOW THE NEGATIVE IMPACTS ARE AVOIDED OR , IF NOT17
AVOIDED, MINIMIZED AND MITIGATED AND, IF ANY, THE NEGATIVE18
IMPACTS THAT CANNOT BE MITIGATED .19
(e) AS USED IN THIS SUBSECTION (9), UNLESS THE CONTEXT20
OTHERWISE REQUIRES:21
(I) "CLASS VI INJECTION WELL IMPACTS" MEANS THE EFFECT ON22
THE PUBLIC HEALTH AND THE ENVIRONMENT, INCLUDING AIR, WATER AND23
SOIL, AND THE CLIMATE, CAUSED BY THE INCREMENTAL IMPACT THAT A24
PROPOSED NEW OR SIGNIFICANTLY MODIFIED CLASS VI INJECTION WELL25
AND ASSOCIATED INFRASTRUCTURE WOULD HAVE WHEN ADDED TO THE26
IMPACTS FROM OTHER DEVELOPMENT IN THE AFFECTED AREA .27
016
-18- (II) "CORRECTIVE ACTION" HAS THE MEANING SET FORTH IN 401
CFR
146.81.2 (III) "DISPROPORTIONATELY IMPACTED COMMUNITY " HAS THE3
MEANING SET FORTH IN SECTION 24-4-109 (2)(b)(II).4
(IV) "GREENHOUSE GAS" HAS THE MEANING SET FORTH IN SECTION5
25-7-140
(6).6 (V) "POST-INJECTION SITE CARE" HAS THE MEANING SET FORTH IN7
40
CFR 146.81.8 (VI) "SITE CLOSURE" HAS THE MEANING SET FORTH IN 40 CFR9
146.81.10
(9.3) (a) THE COMMISSION, IN CONSULTATION WITH THE11
DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT, MAY ADOPT RULES12
TO ESTABLISH A PROCESS TO CERTIFY THE QUANTITY AND DEMONSTRATED13
SECURITY OF CARBON DIOXIDE STORED IN A CLASS VI INJECTION WELL.14
(b) THE COMMISSION, IN CONSULTATION WITH THE DEPARTMENT15
OF PUBLIC HEALTH AND ENVIRONMENT, SHALL EVALUATE THE RISK OF16
CLASS VI INJECTION WELLS BY DETERMINING THE LIKELIHOOD AND17
SEVERITY OF AN INCIDENT INVOLVING A CLASS VI INJECTION WELL, THE18
POTENTIAL FOR EXPOSURE FROM SUCH INCIDENT, AND THE OVERALL19
EFFECT THAT SUCH INCIDENT COULD HAVE ON THE PUBLIC HEALTH ,20
SAFETY, AND WELFARE AND ON THE ENVIRONMENT .21
(9.5) (a) ON OR BEFORE FEBRUARY 1, 2024, THE COMMISSION, IN22
CONSULTATION WITH THE DEPARTMENT OF PUBLIC HEALTH AND23
ENVIRONMENT, SHALL CONDUCT A STUDY TO BETTER UNDERSTAND THE24
SAFETY OF CLASS VI INJECTION WELLS, THE POTENTIAL FOR CARBON25
DIOXIDE RELEASES FROM THE WELLS , AND METHODS TO LIMIT THE26
LIKELIHOOD OF A CARBON DIOXIDE RELEASE FROM A CLASS VI INJECTION27
016
-19- WELL OR CARBON DIOXIDE PIPELINE OR SEQUESTRATION FACILITY. THE1
STUDY MUST INCLUDE:2
(I) AN EVALUATION OF THE POTENTIAL AIR QUALITY IMPACTS OF3
CAPTURE TECHNOLOGY AT A CARBON DIOXIDE SOURCE FACILITY ;4
(II) CARBON DIOXIDE PIPELINE SAFETY CONSIDERATIONS ,5
INCLUDING COMPUTER MODELING TO SIMULATE CARBON DIOXIDE LEAKS6
FROM PIPELINES OF VARYING DIAMETERS AND LENGTHS ;7
(III) APPROPRIATE SAFETY PROTOCOLS IN THE OPERATION AND8
MAINTENANCE OF A CLASS VI INJECTION WELL;9
(IV) METHODS FOR DETERMINING THE STABILITY OF10
UNDERGROUND CARBON DIOXIDE STORAGE AND ESTIMATES OF THE TIME11
NEEDED FOR CARBON DIOXIDE PLUME STABILIZATION ; AND12
(V) RECOMMENDATIONS FOR SAFETY MEASURES TO PROTECT13
COMMUNITIES FROM CARBON DIOXIDE RELEASES , SUCH AS HAZARD ZONES,14
PUBLIC NOTIFICATION SYSTEMS, SETBACKS, ADDITIONAL MONITORING15
REQUIREMENTS, OR OTHER MEASURES.16
(b) ON OR BEFORE MARCH 1, 2024, THE COMMISSION SHALL17
PRESENT ITS FINDINGS AND CONCLUSIONS FROM THE STUDY, INCLUDING18
ANY RECOMMENDATIONS FOR LEGISLATION, TO THE HOUSE OF19
REPRESENTATIVES ENERGY AND ENVIRONMENT COMMITTEE AND THE20
SENATE TRANSPORTATION AND ENERGY COMMITTEE , OR THEIR SUCCESSOR21
COMMITTEES. THE COMMISSION SHALL NOT PERMIT A CLASS VI INJECTION22
WELL IN THE STATE UNTIL THE STUDY HAS BEEN COMPLETED AND23
PRESENTED TO THE GENERAL ASSEMBLY .24
(c) A CLASS VI INJECTION WELL SHALL NOT BE LOCATED WITHIN25
TWO THOUSAND FEET OF A RESIDENCE, SCHOOL, OR COMMERCIAL26
BUILDING. THE COMMISSION MAY ADJUST THE TWO-THOUSAND-FOOT27
016
-20- SETBACK BY RULE AFTER STUDYING AND EVALUATING THE SEVERITY OF1
IMPACTS ARISING FROM FOUR OR MORE CLASS VI INJECTION WELLS THAT2
HAVE BEEN IN PLACE IN THE STATE FOR AT LEAST FOUR YEARS .3
(9.7) (a) THE COMMISSION MAY CONDUCT A STUDY TO DETERMINE4
IF THE STATE SHOULD SEEK REGULATORY PRIMACY UNDER THE FEDERAL5
"SAFE DRINKING WATER ACT", 42 U.S.C. SEC. 300f ET SEQ., AS6
AMENDED, FOR ALL SUBSURFACE INJECTION CLASSES INCLUDED WITHIN7
THE FEDERAL ENVIRONMENTAL PROTECTION AGENCY'S UNDERGROUND8
INJECTION CONTROL PROGRAM , WHICH STUDY MUST INCLUDE9
RECOMMENDATIONS ON THE APPROPRIATE ADMINISTRATIVE STRUCTURE10
AND IDENTIFICATION OF OTHER STATE AGENCIES THAT ARE NECESSARY TO11
IMPLEMENT A SAFE AND EFFECTIVE PROGRAM .12
(b) IF THE COMMISSION CONDUCTS THE STUDY PURSUANT TO13
SUBSECTION (9.7)(a) OF THIS SECTION, THE COMMISSION SHALL, ON OR14
BEFORE DECEMBER 1, 2024:15
(I) COMPLETE A REPORT SUMMARIZING THE FINDINGS ,16
CONCLUSIONS, AND RECOMMENDATIONS FROM THE STUDY ;17
(II) POST A COPY OF THE COMPLETED REPORT ON THE18
COMMISSION'S WEBSITE; AND19
(III) SUBMIT COPIES OF THE COMPLETED REPORT TO THE HOUSE OF20
REPRESENTATIVES ENERGY AND ENVIRONMENT COMMITTEE AND THE21
SENATE TRANSPORTATION AND ENERGY COMMITTEE , OR THEIR SUCCESSOR22
COMMITTEES.23
(c) THIS SUBSECTION (9.7) IS REPEALED, EFFECTIVE JULY 1, 2025.24
SECTION 10. In Colorado Revised Statutes, 38-30-168, amend25
(1)(b)(II) and (1)(b)(III); and add (1)(b)(IV) as follows:26
38-30-168. Unreasonable restrictions on renewable energy27
016
-21- generation devices - definitions. (1) (b) As used in this section,1
"renewable energy generation device" means:2
(II) A wind-electric generator that meets the interconnection3
standards established in rules promulgated by the public utilities4
commission pursuant to section 40-2-124; or5
(III) A geothermal energy device;
OR
6
(IV) A
HEAT PUMP SYSTEM, AS DEFINED IN SECTION 39-26-732
7
(2)(c).8
SECTION 11. In Colorado Revised Statutes, 38-33.3-106.7,9
amend (1)(b)(VI) as follows:10
38-33.3-106.7. Unreasonable restrictions on energy efficiency11
measures - definitions. (1) (b) As used in this section, "energy12
efficiency measure" means a device or structure that reduces the amount13
of energy derived from fossil fuels that is consumed by a residence or14
business located on the real property. "Energy efficiency measure" is15
further limited to include only the following types of devices or16
structures:17
(VI) A heat pump
SYSTEM, AS DEFINED IN SECTION 39-26-732
18
(2)(c).19
SECTION 12. In Colorado Revised Statutes, add 39-22-549 as20
follows:21
39-22-549. Tax credit for reducing emissions from certain22
lawn equipment - report - legislative declaration - tax preference23
performance statement - definitions - repeal. (1) (a) T HE GENERAL24
ASSEMBLY FINDS AND DECLARES THAT :25
(I) G
ASOLINE-POWERED LAWN EQUIPMENT , SUCH AS LAWN26
MOWERS, LEAF BLOWERS, TRIMMERS, AND SNOWBLOWERS , EMITS HIGH27
016
-22- LEVELS OF AIR POLLUTANTS, INCLUDING NITROGEN OXIDES AND VOLATILE1
ORGANIC COMPOUNDS THAT , TOGETHER, FORM OZONE AND PARTICULATE2
MATTER;3
(II) R
EPLACING SUCH GASOLINE-POWERED LAWN EQUIPMENT WITH4
ELECTRIC-POWERED LAWN EQUIPMENT CAN REDUCE OZONE POLLUTION ;5
AND6
(III) T
HE PURPOSE OF THE TAX CREDIT IN SUBSECTION (3) OF THIS7
SECTION IS TO INCENTIVIZE THE VOLUNTARY TRANSITION FROM8
GASOLINE-POWERED TO ELECTRIC-POWERED LAWN EQUIPMENT .9
(b) I
N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH10
REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE11
A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY12
LEGISLATIVE DECLARATION, THE GENERAL ASSEMBLY FURTHER FINDS AND13
DECLARES THAT:14
(I) T
HE GENERAL LEGISLATIVE PURPOSE OF THE TAX CREDIT15
ALLOWED BY SUBSECTION (3) OF THIS SECTION IS TO INDUCE CERTAIN16
DESIGNATED BEHAVIORS BY TAXPAYERS , SPECIFICALLY THE PURCHASE OF17
ELECTRIC-POWERED LAWN EQUIPMENT ; AND18
(II) I
N ORDER TO ALLOW THE GENERAL ASSEMBLY AND THE STATE19
AUDITOR TO MEASURE THE EFFECTIVENESS OF THE TAX CREDIT , THE20
DEPARTMENT OF REVENUE SHALL SUBMIT TO THE GENERAL ASSEMBLY21
AND THE STATE AUDITOR AN ANNUAL REPORT IN ACCORDANCE WITH22
SUBSECTION (5) OF THIS SECTION DETAILING THE SALES OF NEW ,23
ELECTRIC-POWERED LAWN EQUIPMENT , AS REPORTED BY TAXPAYERS24
CLAIMING THE TAX CREDIT AUTHORIZED UNDER SUBSECTION (3) OF THIS25
SECTION.26
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE27
016
-23- REQUIRES:1
(a) "L
AWN EQUIPMENT" MEANS A LAWN MOWER , LEAF BLOWER,2
TRIMMER, OR SNOWBLOWER.3
(b) "P
URCHASE PRICE" HAS THE MEANING SET FORTH IN SECTION4
39-26-102
(7).5
(c) "QUALIFIED RETAILER" MEANS A RETAILER THAT SELLS LAWN6
EQUIPMENT AND:7
(I) HOLDS A STATE SALES TAX LICENSE;8
(II) HAS TIMELY FILED A MONTHLY SALES TAX RETURN SHOWING9
A TAX LIABILITY FOR AT LEAST TWELVE MONTHS ;10
(III) HAS PAID THE TAXES DUE ON THE MONTHLY SALES TAX11
RETURN; AND12
(IV) HAS REGISTERED WITH THE DEPARTMENT OF REVENUE13
PURSUANT TO SUBSECTION (3)(d)(III) OF THIS SECTION.14
(d) "RETAILER" HAS THE MEANING SET FORTH IN SECTION15
39-26-102
(8).
16
(e) "RETAIL SALE" HAS THE MEANING SET FORTH IN SECTION17
39-26-102
(9).
18
(3) (a) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER19
J
ANUARY 1, 2024, BUT BEFORE JANUARY 1, 2027, A RETAILER QUALIFIED
20
PURSUANT TO SUBSECTION (3)(d)(III) OF THIS SECTION IS ALLOWED A TAX21
CREDIT AGAINST THE TAX IMPOSED PURSUANT TO THIS ARTICLE 22 IN AN22
AMOUNT EQUAL TO THIRTY PERCENT OF THE AGGREGATE PURCHASE PRICE23
FOR ALL RETAIL SALES OF NEW, ELECTRIC-POWERED LAWN EQUIPMENT24
THAT THE QUALIFIED RETAILER SOLD IN THE STATE DURING THE TAX YEAR.25
(b) I
N ORDER TO QUALIFY FOR THE TAX CREDIT ALLOWED UNDER26
THIS SUBSECTION (3), THE QUALIFIED RETAILER
SHALL PROVIDE TO THE27
016
-24- PURCHASER, AT THE TIME OF THE RETAIL SALE OF NEW ,1
ELECTRIC-POWERED LAWN EQUIPMENT , A DISCOUNT ON THE PURCHASE2
PRICE OF THE LAWN EQUIPMENT EQUAL TO THIRTY PERCENT OF THE3
PURCHASE PRICE AND SHALL SHOW THE DISCOUNT AS A SEPARATE ITEM ON4
THE RECEIPT OR INVOICE PROVIDED TO THE PURCHASER .5
(c) T
O DETERMINE WHETHER A QUALIFIED RETAILER
SOLD NEW,6
ELECTRIC-POWERED LAWN EQUIPMENT IN THIS STATE , THE RULES OF7
SECTION 39-26-104 (3)(a) APPLY.8
(d) THE QUALIFIED RETAILER MAY RETAIN FROM THE CREDIT9
ALLOWED IN THIS SECTION AN ADMINISTRATIVE FEE NOT TO EXCEED THREE10
PERCENT OF THE PURCHASE PRICE OF THE NEW, ELECTRIC-POWERED LAWN11
EQUIPMENT SOLD.12
(e) (I) THE QUALIFIED RETAILER SHALL ELECTRONICALLY13
SUBMIT A REPORT TO THE DEPARTMENT OF REVENUE , ON A QUARTERLY14
BASIS AND IN THE FORM AND M ANNER REQUIRED BY THE DEPARTMENT ,15
THAT DETAILS THE NUMBER OF PIECES OF NEW, ELECTRIC-POWERED LAWN16
EQUIPMENT SOLD BY THE QUALIFIED RETAILER IN THE REPORTING PERIOD17
FOR WHICH THE QUALIFIED RETAILER PROVIDED A DISC OUNT AS DESCRIBED18
IN SUBSECTION (3)(b) OF THIS SECTION. THE DEPARTMENT MAY REQUIRE19
THE QUALIFIED RETAILER TO INCLUDE ADDITIONAL INFORMATION IN THE20
REPORT.21
(II) BEFORE SELLING A PIECE OF NEW, ELECTRIC-POWERED LAWN22
EQUIPMENT FOR WHICH A RETAILER INTENDS TO CLAIM A CREDIT23
PURSUANT TO THIS SECTION , THE RETAILER SHALL REGISTER AS A24
QUALIFIED RETAILER BY FILING WITH THE DEPARTMENT OF REVENUE A25
REGISTRATION STATEMENT IN THE FORM AND MANNER THAT THE26
DEPARTMENT PRESCRIBES.27
016
-25- (4) IF A CREDIT AUTHORIZED BY THIS SECTION EXCEEDS THE1
INCOME TAX DUE ON THE INCOME OF THE QUALIFIED RETAILER FOR THE2
TAXABLE YEAR, THE EXCESS CREDIT MAY NOT BE CARRIED FORWARD AND3
MUST BE REFUNDED TO THE QUALIFIED RETAILER .4
(5) P
URSUANT TO SECTION 39-21-304 (3), NOTWITHSTANDING5
SECTION 24-1-136 (11)(a)(I), AND FOR THE PURPOSE OF PROVIDING DATA6
THAT ALLOWS THE GENERAL ASSEMBLY AND THE STATE AUDITOR TO7
MEASURE THE EFFECTIVENESS OF THE TAX CREDIT CREATED IN8
SUBSECTION (3) OF THIS SECTION, THE DEPARTMENT OF REVENUE , ON OR9
BEFORE JANUARY 1, 2025, AND ON OR BEFORE JANUARY 1 OF EACH YEAR10
THEREAFTER THROUGH JANUARY 1, 2028, SHALL SUBMIT TO THE GENERAL11
ASSEMBLY AND THE STATE AUDITOR A REPORT DETAILING THE SALES OF12
NEW, ELECTRIC-POWERED LAWN EQUIPMENT , AS REPORTED BY A
13
QUALIFIED RETAILER CLAIMING THE TAX CREDIT AUTHORIZED UNDER14
SUBSECTION (3) OF THIS SECTION. THE TAX CREDIT ESTABLISHED IN THIS15
SECTION MEETS ITS PURPOSE IF SALES OF NEW, GASOLINE-POWERED LAWN16
EQUIPMENT ARE SIGNIFICANTLY REDUCED WITHIN FIVE YEARS AFTER THE17
TAX CREDIT BECOMES EFFECTIVE , AS DETERMINED BY THE GENERAL18
ASSEMBLY AND THE STATE AUDITOR PURS UANT TO SECTION 39-21-304 (3).19
(6) T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2033.20
SECTION
13. In Colorado Revised Statutes, 39-29-110, amend21
(9)(b) as follows:22
39-29-110. Local government severance tax fund - creation -23
administration - definitions - repeal.24
(9) (b) This subsection (9) is repealed, effective July 1, 2023 JULY25
1,
2025.
26
SECTION 14. In Session Laws of Colorado 2021, amend section27
016
-26- 3 of chapter 225, (HB 21-1253), as follows:1
Section 3. Appropriation. For the 2020-21 state fiscal year,2
$5,000,000 is appropriated to the department of local affairs for use by3
the division of local government. This appropriation is from the local4
government severance tax fund created in section 39-29-110 (1)(a)(I),5
C.R.S. To implement this act, the division of local government may use6
this appropriation for grants for renewable and clean energy7
implementation projects that meet the division's eligibility criteria for8
funding under the department's renewable and clean energy initiative9
program. Any money appropriated in this section not expended prior to10
July 1, 2021 JULY 1, 2025, is further appropriated to the division of local11
government for the 2021-22 and 2022-23 state fiscal years for the same12
purpose
UNTIL THE MONEY IS FULLY EXPENDED .
13
14
SECTION 15. In Colorado Revised Statutes, 40-1-102, amend15
(1.3); and add (1.4), (8.2), and (8.3) as follows:16
40-1-102. Definitions. As used in articles 1 to 7 of this title 40,17
unless the context otherwise requires:18
(1.3) "Charge" includes any consideration, however denominated,19
paid or provided by a retail cooperative electric association to a wholesale20
electric cooperative in connection with an agreement by which the retail21
cooperative electric association terminates a wholesale electric service22
contract with the wholesale electric cooperative "CERTIFICATE OF23
COMPLETION" MEANS AN ATTESTATION THAT AN INTERCONNECTION24
CUSTOMER SUBMITS TO A PUBLIC UTILITY TO CONFIRM THAT A RETAIL25
DISTRIBUTED GENERATION RESOURCE HAS BEEN PROPERLY INSPECTED OR26
OTHERWISE CERTIFIED TO MEET THE SAFE OPERATION REQUIREMENTS OF27
016
-27- A LOCAL GOVERNMENT 'S BUILDING CODE ENFORCEMENT AUTHORITY .1
(1.4) "C
HARGE" INCLUDES ANY CONSIDERATION , HOWEVER
2
DENOMINATED, PAID OR PROVIDED BY A RETAIL COOPERATIVE ELECTRIC3
ASSOCIATION TO A WHOLESALE ELECTRIC COOPERATIVE IN CONNECTION4
WITH AN AGREEMENT BY WHICH THE RETAIL COOPERATIVE ELECTRIC5
ASSOCIATION TERMINATES A WHOLESALE ELECTRIC SERVICE CONTRACT6
WITH THE WHOLESALE ELECTRIC COOPERATIVE .7
(8.2) "I
NTERCONNECTION AGREEMENT " MEANS AN AGREEMENT
8
BETWEEN A PUBLIC UTILITY AND AN INTERCONNECTION CUSTOMER TO9
INTERCONNECT A RETAIL DISTRIBUTED GENERATION RESOURCE TO THE10
UTILITY SYSTEM.11
(8.3) (a) "I
NTERCONNECTION CUSTOMER " MEANS AN ENTITY THAT
12
PROPOSES TO INTERCONNECT A RETAIL DISTRIBUTED GENERATION13
RESOURCE ON THE DISTRIBUTION SYSTEM OF A PUBLIC UTILITY .14
(b) "I
NTERCONNECTION CUSTOMER " INCLUDES AN AFFILIATE OR A
15
SUBSIDIARY OF A PUBLIC UTILITY THAT PROPOSES TO INTERCONNECT A16
RETAIL DISTRIBUTED GENERATION RESOURCE TO THE PUBLIC UTILITY 'S17
SYSTEM.18
SECTION 16. In Colorado Revised Statutes, 40-1-126, add (2.5)19
as follows:20
40-2-126. Transmission facilities - biennial review - energy21
resource zones - definitions - plans - approval - cost recovery -22
powerline trail consideration. (2.5) I
N REVIEWING A PLAN THAT AN
23
ELECTRIC UTILITY SUBMITS PURSUANT TO SUBSECTION (2)(b) OF THIS24
SECTION, THE COMMISSION SHALL CONSIDER THE NEED FOR EXPANDED25
TRANSMISSION CAPACITY IN THE STATE , INCLUDING THE ABILITY TO26
EXPAND CAPACITY THROUGH THE CONSTRUCTION OF NEW TRANSMISSION27
016
-28- LINES, IMPROVEMENTS TO EXISTING TRANSMISSION LINES , AND1
CONNECTIONS TO ORGANIZED WHOLESALE MARKETS , AS DEFINED IN2
SECTION 40-5-108 (1)(a).3
4
SECTION 17. In Colorado Revised Statutes, 40-2-114, amend5
(2)(a)(III) as follows:6
40-2-114. Disposition of fees collected - telecommunications7
utility fund - fixed utility fund - appropriation. (2) (a) Money in the8
funds created in subsection (1) of this section shall be expended only to9
defray the full amount determined by the general assembly for:10
(III) With regard only to expenditures from the public utilities11
commission fixed utility fund created in subsection (1)(b) of this section,12
the administrative expenses, not to exceed five hundred thousand dollars13
annually, incurred by the Colorado electric transmission authority in14
carrying out its duties under article 42 of this title 40. The Colorado15
electric transmission authority shall remit to the
PUBLIC UTILITIES
16
COMMISSION fixed utility fund any amounts it receives in excess of its17
actual administrative expenses plus a fifteen FIFTY percent reserve18
margin.19
SECTION 18. In Colorado Revised Statutes, amend 40-2-135 as20
follows:21
40-2-135. Retail distributed generation - customers' rights -22
rules. (1) A retail electric utility customer is entitled to generate,23
consume, store, and export electricity produced from eligible energy24
resources to the electric grid through the use of customer-sited retail25
distributed generation, as defined in section 40-2-124 (1)(a)(VIII), subject26
to reliability standards, interconnection rules, and procedures, as27
016
-29- determined by the commission.1
(2) (a) A
RETAIL ELECTRIC UTILITY VIOLATES THIS SECTION IF THE
2
UTILITY FAILS TO PROVIDE REASONABLE , GOOD FAITH, AND TIMELY3
SERVICE TO AN INTERCONNECTION CUSTOMER AND SUCH VIOLATION MAY4
RESULT IN COMMISSION ACTION , INCLUDING THE ASSESSMENT OF5
MONETARY FINES AGAINST THE RETAIL ELECTRIC UTILITY . IF A RETAIL6
ELECTRIC UTILITY FAILS TO PROVIDE TIMELY SERVICE AND ADHERE TO7
TIMELINES THAT THE COMMISSION ESTABLISHES AS PART OF THE8
COMMISSION'S INTERCONNECTION RULES, THE RETAIL ELECTRIC UTILITY9
MAY BE SUBJECT TO PENALTIES OF UP TO TWO THOUSAND DOLLARS PER10
DAY FOR EACH DAY THAT THE VIOLATION OCCURRED .11
(b) T
HE COMMISSION SHALL ADOPT RULES TO ANNUALLY ADJUST
12
THE PENALTY AMOUNT SET FORTH IN SUBSECTION (2)(a) OF THIS SECTION13
BASED ON THE ANNUAL PERCENTAGE CH ANGE IN THE UNITED STATES14
DEPARTMENT OF LABOR'S BUREAU OF LABOR STATISTICS CONSUMER PRICE15
INDEX FOR THE DENVER-AURORA-LAKEWOOD AREA FOR ALL ITEMS PAID16
BY ALL URBAN CONSUMERS , OR ITS SUCCESSOR INDEX.17
(c) (I) F
OR A RETAIL DISTRIBUTED GENERATION RESOURCE THAT
18
IS TWENTY-FIVE KILOWATTS OR LESS, A PUBLIC UTILITY SHALL PROVIDE AN19
INTERCONNECTION CUSTOMER AN EXECUTED INTERCONNECTION20
AGREEMENT NO MORE THAN THIRTY BUSINESS DAYS AFTER RECEIVING21
PAYMENT OF AN INTERCONNECTION FEE FROM THE INTERCONNECTION22
CUSTOMER.23
(II) F
OLLOWING THE CONSTRUCTION OF A RETAIL DISTRIBUTED
24
GENERATION RESOURCE , A PUBLIC UTILITY MUST PROVIDE25
INTERCONNECTION OF THE CUSTOMER 'S RETAIL DISTRIBUTED GENERATION26
RESOURCE NO MORE THAN THIRTY BUSINESS DAYS AFTER THE27
016
-30- INTERCONNECTION CUSTOMER SUBMITS TO THE PUBLIC UTILITY A1
CERTIFICATE OF COMPLETION.2
(III) I
F THE SUM OF A PUBLIC UTILITY'S COMPLIANCE WITH THESE
3
TIMES SET FORTH IN THIS SUBSECTION (2)(c) EXCEEDS SIXTY DAYS, THE4
PUBLIC UTILITY MAY BE SUBJECT TO PENALTIES CONSISTENT WITH THIS5
SUBSECTION (2).6
(d) A
PUBLIC UTILITY IS NOT SUBJECT TO PENALTIES UNDER THIS
7
SUBSECTION (2) IF THE PUBLIC UTILITY CAN DEMONSTRATE THAT :8
(I) T
HE INTERCONNECTION CUSTOMER FAILED TO TIMELY REMEDY
9
ANY MATERIAL DEFECTS IN THE COMPLETION OF THE INTERC ONNECTION10
CUSTOMER'S APPLICATION FOR INTERCONNECTION AND THE PUBLIC11
UTILITY IDENTIFIED THE DEFECTS DURING ITS REVIEW OF THE12
APPLICATION;13
(II) T
HE RETAIL DISTRIBUTED GENERATION RESOURCE CANNOT BE
14
SAFELY INTERCONNECTED TO THE PUBLIC UTILITY 'S SYSTEM IN A MANNER15
CONSISTENT WITH THE COMMISSION 'S INTERCONNECTION RULES; OR16
(III) O
THER EXTENUATING CIRCUMSTANCES CAUSED A DELAY IN
17
INTERCONNECTION.18
(3) (a) A
N INTERCONNECTION CUSTOMER MAY FILE A COMPLAINT
19
WITH THE COMMISSION IN ACCORDANCE WITH SECTION 40-6-108 ALLEGING20
THAT A PUBLIC UTILITY HAS VIOLATED SUBSECTION (2) OF THIS SECTION.21
(b) I
N CONSIDERING A COMPLAINT FILED PURSUANT TO THIS
22
SUBSECTION (3), THE COMMISSION MAY ORDER THE PUBLIC UTILITY TO23
REFUND INTERCONNECTION ST UDY FEES CHARGED TO THE24
INTERCONNECTION CUSTOMER . IF A PUBLIC UTILITY IS ORDERED TO25
REFUND SUCH INTERCONNECTION STUDY FEES , SUCH REFUND IS NOT AN26
EXPENSE THAT THE PUBLIC UTILITY MAY RECOVER FROM ITS RATEPAYERS .27
016
-31- (4) THE COMMISSION SHALL ONLY ASSESS THE PENALTIES SET1
FORTH IN SUBSECTION (2)(a) OF THIS SECTION AGAINST A PUBLIC UTILITY2
IF:3
(a) A
N INTERCONNECTION CUSTOMER OR COMMISSION STAFF HAS
4
FILED, AND THE COMMISSION HAS ADJUDICATED , A COMPLAINT PURSUANT5
TO SECTION 40-6-108; AND6
(b) T
HE PUBLIC UTILITY HAS A TARIFF ON FILE WITH THE
7
COMMISSION THAT PROVIDES INCENTIVES AND PENALTIES TO PROVIDE8
INTERCONNECTION SERVICE AND THE PUBLIC UTILITY HAS EXCEEDED THE9
TIMELINES ESTABLISHED IN THE TARIFF FILING.10
(5) I
N JURISDICTIONS THAT ALLOW INTERCONNECTION WITHOUT A
11
PUBLIC UTILITY PRESENT, AN INTERCONNECTION CUSTOMER MAY INSTALL12
ALL NECESSARY METERING EQUIPMENT AND ENERGIZE THE SYSTEM13
FOLLOWING INSTALLATION IF:14
(a) T
HE INTERCONNECTION CUSTOMER HAS AN INTERCONNECTION
15
AGREEMENT WITH A PUBLIC UTILITY AND A CERTIFICATE OF COMPLETION16
FROM A LOCAL GOVERNMENT 'S BUILDING CODE ENFORCEMENT17
AUTHORITY; AND18
(b) T
HE INSTALLATION AND ENERGIZING WORK IS OVERSEEN BY A
19
LICENSED MASTER ELECTRICIAN.20
(6) A
PUBLIC UTILITY MAY RECOVER ITS PRUDENTLY INCURRED
21
COSTS TO FACILITATE A TIMELY INTERCONNECTION , WHICH COSTS MAY22
INCLUDE THE COST OF EQUIPMENT THAT THE PUBLIC UTILITY PROCURES23
FOR FUTURE UPGRADES NEEDED TO INTERCONNECT RETAIL DISTRIBUTED24
GENERATION RESOURCES. A PUBLIC UTILITY MAY RECOVER THE COSTS OF25
ANY SUCH EQUIPMENT INVENTORY AS CAPITAL WORK IN PROGRESS IF THE26
INVENTORY IS PROJECTED TO BE USED WITHIN FIVE YEARS OF ITS27
016
-32- PROCUREMENT AND WITH A RETURN AT THE MOST RECENTLY AUTHORIZED1
WEIGHTED AVERAGE COST OF CAPITAL .2
SECTION 19. In Colorado Revised Statutes, 40-5-107, add (2.5)3
as follows:4
40-5-107. Electric vehicle programs - service connection cost5
recovery - definitions - repeal. (2.5) AN ELECTRIC PUBLIC UTILITY MAY6
RECOVER ITS PRUDENTLY INCURRED COSTS TO FACILITATE A TIMELY7
ELECTRIC VEHICLE CHARGING SERVICE CONNECTION , WHICH COSTS MAY8
INCLUDE THE COSTS OF EQUIPMENT THAT THE ELECTRIC PUBLIC UTILITY9
PROCURES FOR FUTURE UPGRADES NEEDED TO PROVIDE SERVICE10
CONNECTIONS FOR ELECTRIC VEHICLE CHARGING . AN ELECTRIC PUBLIC11
UTILITY MAY RECOVER THE COSTS OF ANY SUCH EQUIPMENT INVENTORY12
AS CAPITAL WORK IN PROGRESS IF THE INVENTORY IS PROJECTED TO BE13
USED WITHIN THREE YEARS OF ITS PROCUREMENT AND WITH A RETURN AT14
THE MOST RECENTLY AUTHORIZED WEIGHTED AVERAGE COST OF CAPITAL .15
SECTION 20. In Colorado Revised Statutes, 40-7-105, amend16
(1); and add (1.5) and (4) as follows:17
40-7-105. Violations - penalty - separate offenses - rules.18
(1) Any public utility which THAT violates or fails to comply with any19
provision of the state constitution or of articles 1 to 7 of this title TITLE 4020
or which THAT fails, omits, or neglects to obey, observe, or comply with21
any order, decision, decree, rule, direction, demand, or requirement of the22
commission or any part or provision thereof, except an order for the23
payment of money, in a case in which a penalty has not been provided for24
such THE public utility, is subject to a penalty of not more than two25
TWENTY thousand dollars for each PER offense FOR EACH DAY THAT THE26
OFFENSE CONTINUES.27
016
-33- (1.5) (a) ANY PROPOSED PENALTY IS SUBJECT TO A FINDING BY THE1
COMMISSION OF CUSTOMER HARM THAT IS COMMENSURATE WITH THE2
AMOUNT OF THE PENALTY LEVIED . IN DETERMINING THE AMOUNT OF A3
PENALTY OR WHETHER ANY PENALTY IS LEVIED , THE COMMISSION SHALL4
ALSO CONSIDER FACTORS INCLUDING :5
(I) T
HE SIZE OF THE UTILITY;
6
(II) F
ACTORS INFLUENCING THE VIOLATION ;
7
(III) T
HE UTILITY'S PREVIOUS HISTORY OF ANY SIMILAR
8
VIOLATIONS;9
(IV) R
EMEDIAL MEASURES; AND
10
(V) A
NY OTHER FACTORS THAT MAY MITIGATE ANY HARM TO
11
CUSTOMERS.12
(b) T
HE COMMISSION SHALL ADOPT RULES TO ANNUALLY ADJUST
13
THE MAXIMUM PER-DAY PENALTY AMOUNT SET FORTH IN SUBSECTION (1)14
OF THIS SECTION BASED ON THE ANNUAL PERCENTAGE CHANGE IN THE15
U
NITED STATES DEPARTMENT OF LABOR 'S BUREAU OF LABOR STATISTICS
16
CONSUMER PRICE INDEX FOR THE DENVER-AURORA-LAKEWOOD AREA FOR17
ALL ITEMS PAID BY ALL URBAN CONSUMERS , OR ITS SUCCESSOR INDEX.18
(4) A
NY PENALTY THAT THE COMMISSION ASSESSES AGAINST A
19
UTILITY UNDER THIS SECTION IS NOT RECOVERABLE AS AN EXPENSE20
PAYABLE BY THE UTILITY'S RATEPAYERS.21
SECTION 21. In Colorado Revised Statutes, 40-3.2-108, amend22
(2)(a)(II) and (2)(p) introductory portion as follows:23
40-3.2-108. Clean heat targets - legislative declaration -24
definitions - plans - rules - reports. (2) Definitions. As used in this25
section, unless the context otherwise requires:26
(a) "Biomethane":27
016
-34- (II) Includes biomethane recovered from manure management1
systems or anaerobic digesters,
INCLUDING FROM OPERATIONS FOR DAIRY
2
COWS, BEEF CATTLE, POULTRY, SWINE, OR SHEEP, that has been processed3
to meet pipeline quality.4
(p) "Recovered methane protocol" means a documented set of5
procedures and requirements established by the air quality control6
commission to quantify ongoing greenhouse gas emission reductions or7
greenhouse gas removal enhancements achieved by a recovered methane8
project and to calculate the project baseline. A
RECOVERED METHANE
9
PROTOCOL THAT THE AIR QUALITY CONTROL COMMISSION ADOPTS FOR10
BIOMETHANE FROM MANURE MANAGEMENT SYSTEMS MUST ALLOW FOR11
THE USE OF MANURE FROM BEEF CATTLE OPERATIONS . THE AIR QUALITY12
CONTROL COMMISSION MAY ALSO ADOPT A RECOVERED METHANE13
PROTOCOL THAT IS SPECIFIC TO MANURE MANAGEMENT FROM BEEF14
CATTLE OPERATIONS. A recovered methane protocol must:15
SECTION 22. In Colorado Revised Statutes, 40-42-102, amend16
(14) as follows:17
40-42-102. Definitions. As used in this article 42, unless the18
context otherwise requires:19
(14) "Project" means an undertaking by the authority to finance20
or to:21
(a) Plan, acquire, maintain, and operate eligible facilities located22
partly or entirely within Colorado;
OR23
(b) R
ENOVATE, REBUILD, OR RECONDITION EXISTING ELIGIBLE24
FACILITIES, THAT ARE LOCATED PARTLY OR ENTIRELY WITHIN COLORADO
25
AND ARE APPROVED THROUGH A LOCAL GOVERNMENT 'S LAND-USE26
APPLICATION PROCESS, TO UPGRADE AND OPTIMIZE THE EXISTING27
016
-35- FACILITIES.1
2
SECTION 23. In Colorado Revised Statutes, 40-42-104, add3
(4.5) as follows:4
40-42-104. General and specific powers and duties of the5
authority. (4.5) ON AND AFTER JULY 1, 2024, THE AUTHORITY SHALL6
OPERATE ON A FISCAL YEAR THAT ALIGNS WITH THE STATE FISCAL YEAR.7
SECTION 24. In Colorado Revised Statutes, 40-42-107, amend8
(1) introductory portion as follows:9
40-42-107. Labor standards - apprenticeship - supervision.10
(1) The authority shall ensure that, in any construction, expansion,11
RENOVATION, REBUILDING, RECONDITIONING, or maintenance of facilities12
undertaken in Colorado pursuant to this article 42, all labor is performed13
either by the employees of an electric utility, or
by qualified contractors,14
or
BY both, and that, except as otherwise provided in subsection (3) of15
this section, an electric utility
DOES not use a contractor unless:16
SECTION
25. In Colorado Revised Statutes, add 40-42-109 as17
follows:18
40-42-109. Study on expanding transmission capacity -19
reporting - repeal. (1) T
HE AUTHORITY SHALL EXPEND MONEY FROM THE
20
OPERATIONAL FUND CREATED IN SECTION 40-42-106 TO STUDY THE NEED21
FOR EXPANDED TRANSMISSION CAPACITY IN THE STATE , INCLUDING:22
(a) T
HE ABILITY TO EXPAND CAPACITY THROUGH THE
23
CONSTRUCTION OF NEW TRANSMISSION LINES , IMPROVEMENTS TO24
EXISTING TRANSMISSION LINES , AND CONNECTIONS TO ORGANIZED25
WHOLESALE MARKETS , AS DEFINED IN SECTION 40-5-108 (1)(a);26
(b) W
HETHER AND HOW EXPANDED TRANSMISSION CAPACITY WILL :
27
016
-36- (I) IMPROVE THE SYSTEM RELIABILITY OF THE ELECTRIC GRID AND1
PROVIDE OPTIMAL UTILIZATION OF ELECTRICITY FLOWS IN THE STATE ;2
(II) S
UPPORT THE STATE'S EMISSION REDUCTION GOALS SET FORTH
3
IN SECTION 25-7-102 (2)(g);4
(III) S
UPPORT THE STATE'S FORECASTED ELECTRICITY NEEDS; AND
5
(IV) R
EDUCE LAND IMPACTS BY USING EXISTING RIGHTS -OF-WAY,
6
INCLUDING FOR LARGE CAPACITY TRANSMISSION LINES ; CO-LOCATING7
MULTIPLE TRANSMISSION LINES; RECONDUCTORING TRANSMISSION LINES ;8
AND STRATEGICALLY SITING NEW TRANSMISSION CORRIDORS .9
(2) T
HE AUTHORITY SHALL PREPARE :
10
(a) A
N INITIAL REPORT OF THE STUDY , INCLUDING ANY
11
RECOMMENDATIONS , AND PRESENT THE INITIAL REPORT TO THE12
COMMISSION ON OR BEFORE SEPTEMBER 1, 2024; AND13
(b) A
FINAL REPORT OF THE STUDY , INCLUDING ANY
14
RECOMMENDATIONS , AND PRESENT THE FINAL REPORT TO THE JOINT15
COMMITTEE OF THE HOUSE OF REPRESENTATIVES ENERGY AND16
ENVIRONMENT COMMITTEE AND THE SENATE TRANSPORTATION AND17
ENERGY COMMITTEE, OR THEIR SUCCESSOR COMMITTEES , ON OR BEFORE18
J
ANUARY 31, 2025.
19
(3) T
HIS SECTION IS REPEALED, EFFECTIVE SEPTEMBER 1, 2025.
20
SECTION 26. In Colorado Revised Statutes, 29-20-104, amend21
(1)(h) introductory portion, (1)(h)(II), (2)(b), and (2)(c); and add (2)(d)22
as follows:23
29-20-104. Powers of local governments - definition.24
(1) Except as expressly provided in section 29-20-104.5, the power and25
authority granted by this section does not limit any power or authority26
presently exercised or previously granted. Each local government within27
016
-37- its respective jurisdiction has the authority to plan for and regulate the use1
of land by:2
(h) Regulating the surface impacts of oil and gas operations AND3
CLASS VI INJECTION WELLS in a reasonable manner to address matters4
specified in this subsection (1)(h) and to protect and minimize adverse5
impacts to public health, safety, and welfare and the environment.6
Nothing in this subsection (1)(h) is intended to alter, expand, or diminish7
the authority of local governments to regulate air quality under section8
25-7-128. For purposes of this subsection (1)(h), "minimize adverse9
impacts" means, to the extent necessary and reasonable, to protect public10
health, safety, and welfare and the environment by avoiding adverse11
impacts from oil and gas operations AND CLASS VI INJECTION WELLS and12
minimizing and mitigating the extent and severity of those impacts that13
cannot be avoided. The following matters are covered by this subsection14
(1)(h):15
(II) The location and siting of oil and gas facilities and oil and gas16
locations, as those terms are defined in section 34-60-103 (6.2) and (6.4)17
AND THE LOCATION AND SITING OF CLASS VI INJECTION WELLS;18
(2) To implement the powers and authority granted in subsection19
(1)(h) of this section, a local government within its respective jurisdiction20
has the authority to:21
(b) Impose fines for leaks, spills, and emissions; and22
(c) Impose fees on operators or owners to cover the reasonably23
foreseeable direct and indirect costs of permitting and regulation and the24
costs of any monitoring and inspection program necessary to address the25
impacts of development and to enforce local governmental requirements;26
AND27
016
-38- (d) IMPOSE FEES TO ENHANCE EMERGENCY PREPAREDNESS AND1
EMERGENCY RESPONSE CAPABILITIES IF A CARBON DIOXIDE RELEASE2
OCCURS. ALLOWABLE EXPENDITURES OF THE FEES COLLECTED INCLUDE:3
(I) PREPARING EMERGENCY RESPONSE PLANS FOR A CARBON4
DIOXIDE RELEASE;5
(II) PURCHASING ELECTRIC EMERGENCY RESPONSE VEHICLES ;6
(III) DEVELOPING OR MAINTAINING A TEXT MESSAGE OR OTHER7
EMERGENCY COMMUNICATION ALERT SYSTEM ;8
(IV) PURCHASING DEVICES THAT ASSIST IN THE DETECTION OF A9
CARBON DIOXIDE RELEASE;10
(V) EQUIPMENT FOR FIRST RESPONDERS, LOCAL RESIDENTS, AND11
MEDICAL FACILITIES THAT ASSIST IN THE PREPARATION FOR, DETECTION12
OF, OR RESPONSE TO THE RELEASE OF CARBON DIOXIDE OR OTHER TOXIC13
OR HAZARDOUS MATERIALS ; AND14
(VI) TRAINING AND TRAINING MATERIALS FOR FIRST RESPONDERS,15
LOCAL RESIDENTS, BUSINESSES, AND OTHER LOCAL ENTITIES TO PREPARE16
FOR AND RESPOND TO THE RELEASE OF CARBON DIOXIDE OR OTHER TOXIC17
OR HAZARDOUS MATERIALS .18
SECTION 27. In Colorado Revised Statutes, 29-20-108, add (7)19
as follows:20
29-20-108. Local government regulation - location,21
construction, or improvement of major electrical or natural gas22
facilities - powerline trail notification - expedited review for certain23
transmission line projects - legislative declaration - definitions. (7) A24
LOCAL GOVERNMENT SHALL EXPEDITE , AS PRACTICABLE,
ITS REVIEW OF A25
LAND USE APPLICATION WITH REGARD TO A PROPOSED PROJECT TO26
RENOVATE, REBUILD, OR RECONDITION A TRANSMISSION LINE IN27
016
-39- ACCORDANCE WITH SECTION 40-42-104 (3)(c).1
SECTION 28. In Colorado Revised Statutes, 25-7-105, amend2
(1)(e)(II) as follows:3
25-7-105. Duties of commission - technical secretary - rules -4
legislative declaration - definitions. (1) Except as provided in sections5
25-7-130 and 25-7-131, the commission shall promulgate rules that are6
consistent with the legislative declaration set forth in section 25-7-1027
and necessary for the proper implementation and administration of this8
article 7, including:9
(e) (II) Consistent with section 25-7-102 (2)(g), the commission10
shall timely promulgate implementing rules and regulations. The11
implementing rules may take into account other relevant laws and rules,12
as well as voluntary actions taken by local communities and the private13
sector, to enhance efficiency and cost-effectiveness, and shall be revised14
as necessary over time to ensure timely progress toward the 2025, 2030,15
2035, 2040, 2045, and 2050 goals. The implementing rules shall MUST16
provide for ongoing tracking of emission sources that adversely affect17
disproportionately impacted communities and are subject to rules18
implemented pursuant to this subsection (1)(e) and must include strategies19
designed to achieve reductions in harmful air pollution affecting those20
communities.21
SECTION 29. Appropriation. (1) For the 2023-24 state fiscal22
year, $338,270 is appropriated to the department of natural resources for23
use by the oil and gas conservation commission. This appropriation is24
from the oil and gas conservation and environmental response fund25
created in section 34-60-122 (5)(a), C.R.S. To implement this act, the26
commission may use this appropriation as follows:27
016
-40- (a) $317,122 for program costs, which amount is based on an1
assumption that the commission will require an additional 3.2 FTE; and2
(b) $21,148 for legal services.3
(2) For the 2023-24 state fiscal year, $14,706 is appropriated to4
the department of public health and environment for use by the air5
pollution control division. This appropriation is from the general fund,6
and is based on an assumption that the division will require an additional7
0.2 FTE. To implement this act, the division may use this appropriation8
for personal services related to stationary sources.9
(3) For the 2023-24 state fiscal year, $21,148 is appropriated to10
the department of law. This appropriation is from reappropriated funds11
received from the department of natural resources under subsection (1)(b)12
of this section and is based on an assumption that the department of law13
will require an additional 0.1 FTE. To implement this act, the department14
of law may use this appropriation to provide legal services for the15
department of natural resources.16
17
SECTION 30. Act subject to petition - effective date. This act18
takes effect at 12:01 a.m. on the day following the expiration of the19
ninety-day period after final adjournment of the general assembly; except20
that, if a referendum petition is filed pursuant to section 1 (3) of article V21
of the state constitution against this act or an item, section, or part of this22
act within such period, then the act, item, section, or part will not take23
effect unless approved by the people at the general election to be held in24
November 2024 and, in such case, will take effect on the date of the25
official declaration of the vote thereon by the governor.26
27
016
-41-