First Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 23-0514.01 Jennifer Berman x3286
SENATE BILL 23-092
Senate Committees House Committees
Agriculture & Natural Resources
A BILL FOR AN ACT
C
ONCERNING OPPORTUNITIES FOR VOLUNTARY EMISSION RE DUCTIONS101
IN AGRICULTURE.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
In support of the use of agrivoltaics, which is the integration of
solar energy generation facilities with agricultural activities, section 2 of
the bill authorizes the agricultural drought and climate resilience office
(office) to award grants for new or ongoing demonstration or research
projects that demonstrate or study the use of agrivoltaics. On or before
October 1, 2023, the office is required to convene a stakeholder group to
SENATE SPONSORSHIP
Simpson and Hansen,
HOUSE SPONSORSHIP
McCormick and Soper,
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. advise on whether the office should impose any operational requirements
for agrivoltaic projects that apply for grants.
Section 4 authorizes the Colorado water conservation board
(board) to finance a project to study the feasibility of using aquavoltaics,
which are solar energy generation facilities placed over, or floating on,
irrigation canals or reservoirs.
Section 1 requires the director of the division of parks and wildlife
to consult on the impacts on wildlife of:
! Any research projects for which the office awards money
to study the use of agrivoltaics; and
! The project that the board finances to study the feasibility
of using aquavoltaics in the state.
Section 5 amends the statutory definition of "solar energy facility",
used in determining the valuation of public utilities for property tax
purposes, to include agrivoltaics and aquavoltaics.
Section 3 requires the commissioner of agriculture or the
commissioner's designee (commissioner), in consultation with the
Colorado energy office, the air quality control commission, and an
institution of higher education with expertise in climate change
mitigation, adaptation benefits, and other environmental benefits related
to agricultural research, to examine greenhouse gas reduction and carbon
sequestration opportunities in the agricultural sector, including the use of
dry digesters and the potential for creating and offering a certified
greenhouse gas offset program and credit instruments in the agricultural
sector.
Section 3 requires the commissioner to submit a progress report
on the study to the general assembly on or before October 1, 2024, and a
final report, including any recommendations, on or before October 1,
2025.
Section 3 also authorizes the commissioner to adopt rules to
implement the recommendations, but requires that any greenhouse gas
offset program or other greenhouse gas reduction and carbon
sequestration program or mechanism established in rule not mandate
participation by agricultural producers.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 33-1-110, add (9) as2
follows:3
33-1-110. Duties of the director of the division - habitat4
partnership council, program, committee - created - duties. (9) T
HE5
SB23-092-2- DIRECTOR OR THE DIRECTOR'S DESIGNEE SHALL PROVIDE CONSULTATION1
REGARDING THE IMPACTS OF THE FOLLOWING RESEARCH PROJECTS ON2
WILDLIFE:3
(a) R
ESEARCH PROJECTS FOR WHICH THE AGRICULTURAL DROUGHT4
AND CLIMATE RESILIENCE OFFICE AWARDS MONEY TO STUDY THE USE OF5
AGRIVOLTAICS PURSUANT TO SECTION 35-1-114; AND6
(b) A
FEASIBILITY STUDY THROUGH WHICH THE COLORADO WATER7
CONSERVATION BOARD, CREATED IN SECTION 37-60-102, STUDIES THE USE8
OF AQUAVOLTAICS PURSUANT TO SECTION 37-60-115 (12).9
SECTION 2. In Colorado Revised Statutes, 35-1-114, amend (2)10
and (3); and add (4) and (5) as follows:11
35-1-114. Agricultural drought and climate resilience office -12
creation - grants for agrivoltaic demonstration and research projects13
- rules - definitions. (2) Office created. (a) (I) There is hereby
created14
in the department the agricultural drought and climate resilience office.15
referred to in this section as the "office". The office may provide16
voluntary technical assistance, nonregulatory programs, and incentives,17
INCLUDING GRANTS, that increase the ability to anticipate, prepare for,18
mitigate, adapt to, and respond to hazardous events, trends, or19
disturbances related to drought or the climate.20
(II) I
N AWARDING GRANTS IN ACCORDANCE WITH THE21
COMMISSIONER'S RULES ADOPTED PURSUANT TO SUBSECTION (3) OF THIS22
SECTION, THE OFFICE SHALL GIVE STRONG CONSIDERATION TO GRANT23
APPLICATIONS THAT PROPOSE USING GRANT MONEY TO CONDUCT A NEW24
OR ONGOING DEMONSTRATION OR RESEARCH PROJECT AS A MEANS TO25
STUDY THE USE OF AGRIVOLTAICS IN THE STATE .26
(b) The office shall advise the commissioner, the Colorado27
SB23-092
-3- agricultural value-added development board created in section 35-75-203,1
other state agencies, and the governor on the impact to agriculture of2
drought and climate policies and programs.3
(c) The commissioner shall appoint the head of the office.4
(3) (a) Rules. The commissioner may promulgate rules necessary5
for the administration of the office's assistance, programs, and incentives,6
including grants,
CONSISTENT WITH THIS SUBSECTION (3). Before7
promulgating the rules, the commissioner shall convene a stakeholder8
group, including representatives of organizations whose membership9
consists of agricultural producers engaged in the production of the top ten10
agricultural commodities produced in Colorado and members of the state11
conservation board created in section 35-70-103 (1)(a). The stakeholder12
group shall advise the commissioner as to the needs of the agriculture13
industry to respond to and mitigate the impacts of climate change on14
agricultural production. For the purpose of this section, "bona fide
15
agricultural producer" means an agricultural producer that receives a16
majority of the producer's annual income from agriculture, an agricultural17
producer that spends more than one thousand forty hours per year18
engaged in agricultural production, or a Colorado business that processes19
agricultural products.20
(b) Assistance, programs, and incentives. (I) Except for a21
program,
ASSISTANCE, INCENTIVE, or support administered by the office22
to address immediate needs as a result of disaster, including wildfire and23
drought, or a program
that was in existence on January 1, 2021,24
(a) a program, ASSISTANCE, INCENTIVE, OR SUPPORT administered25
by the office must be designed to benefit bona fide agricultural producers26
actively engaged in agriculture
AND MAY INCLUDE NEW OR ONGOING27
SB23-092
-4- DEMONSTRATION OR RESEARCH PROJECTS TO DEMONSTRATE OR STUDY1
THE USE OF AGRIVOLTAICS TO:2
(A) H
ELP PREPARE FOR AND MITIGATE THE IMPACTS THAT CLIMATE3
CHANGE OR DROUGHT HAVE ON AGRICULTURE ;4
(B) R
EDUCE ENERGY COSTS IN AGRICULTURE ; AND5
(C) P
ROVIDE OTHER STATEWIDE ENVIRONMENTAL BENEFITS , AS6
IDENTIFIED BY THE OFFICE.7
(II) Grants awarded by the office must pay for implementation of8
practices to address and mitigate the impacts of climate change or drought9
ON AGRICULTURE or to provide direct adaptation support for impacted10
agricultural communities, including mental health resources, conflict11
resolution assistance, and risk-management guidance. A grant award may12
pay no more than five percent of administrative expenses incurred by a13
bona fide agricultural producer to implement the practices.14
(b)
(III) The department shall, at least thirty days before opening15
the grant application process, make available, on its website, information16
related to the grant program available to bone BONA fide agricultural17
producers.18
(c) (IV) A grant authorized pursuant to this section must receive19
final approval by the commission before a final award can be issued. and20
(d) (V) The department shall post on its website all applications21
for grant awards. Within fifteen days after awarding a grant, the22
department shall post on its website the name of the individual or entity23
receiving a grant, the amount of the grant awarded, the project or projects24
to be funded by the grant, and the duration of the grant award.25
(4) (a) O
N OR BEFORE OCTOBER 1, 2023, THE OFFICE SHALL26
CONVENE A GROUP OF STAKEHOLDERS TO ADVISE ON :27
SB23-092
-5- (I) WHETHER THE OFFICE SHOULD IMPOSE ANY SIZE , OUTPUT, OR1
OTHER OPERATIONAL REQUIREMENTS FOR AGRIVOLTAIC PROJECTS THAT2
APPLY FOR A GRANT UNDER THIS SECTION ; AND3
(II) A
NY OTHER MATTER THAT THE OFFICE DEEMS NECESSARY4
WITH REGARD TO AWARDING GRANTS FOR AGRIVOLTAIC PROJECTS .5
(b) T
HE STAKEHOLDER GROUP CONVENED MUST INCLUDE ONE OR6
MORE REPRESENTATIVES OF EACH OF THE FOLLOWING :7
(I) A
GRICULTURAL PRODUCERS ;8
(II) U
TILITIES;9
(III) M
ANUFACTURERS OF SOLAR ENERGY GENERATION10
EQUIPMENT; AND11
(IV) E
NVIRONMENTAL ADVOCACY ORGANIZATIONS IN THE STATE .12
(5) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE13
REQUIRES:14
(a) "A
GRIVOLTAICS" MEANS ONE OR MORE SOLAR ENERGY15
GENERATION FACILITIES DIRECTLY INTEGRATED WITH AGRICULTURAL16
ACTIVITIES, INCLUDING CROP PRODUCTION , GRAZING, ANIMAL17
HUSBANDRY, APIARIES, COVER CROPPING FOR SOIL HEALTH BENEFITS OR18
CARBON SEQUESTRATION , OR PRODUCTION OF AGRICULTURAL19
COMMODITIES FOR SALE IN THE RETAIL OR WHOLESALE MARKET .20
(b) "B
ONA FIDE AGRICULTURAL PRODUCER " MEANS:21
(I) A
N AGRICULTURAL PRODUCER THAT :22
(A) R
ECEIVES A MAJORITY OF THE PRODUCER 'S ANNUAL INCOME23
FROM AGRICULTURE; OR24
(B) S
PENDS MORE THAN ONE THOUSAND FORTY HOURS PER YEAR25
ENGAGED IN AGRICULTURAL PRODUCTION ; OR26
(II) A
COLORADO BUSINESS THAT PROCESSES AGRICULTURAL27
SB23-092
-6- PRODUCTS.1
(c) "O
FFICE" MEANS THE AGRICULTURAL DROUGHT AND CLIMATE2
RESILIENCE OFFICE CREATED IN SUBSECTION (2) OF THIS SECTION.3
SECTION 3. In Colorado Revised Statutes, add 35-1-119 as4
follows:5
35-1-119. Study of greenhouse gas reduction and carbon6
sequestration opportunities in agriculture and agricultural land7
management - definitions - reporting - rules. (1) (a) (I) I
N8
ACCORDANCE WITH SUBSECTION (1)(a)(II) OF THIS SECTION, THE9
COMMISSIONER OR THE COMMISSIONER 'S DESIGNEE SHALL CONDUCT A10
STUDY TO EXAMINE GREENHOUSE GAS REDUCTION AND CARBON11
SEQUESTRATION OPPORTUNITIES IN THE AGRICULTURAL SECTOR AND IN12
AGRICULTURAL LAND MANAGEMENT IN THE STATE , INCLUDING:13
(A) T
HE USE OF DRY DIGESTERS; AND14
(B) A
N INVESTIGATION INTO THE POTENTIAL FOR CREATING AND15
OFFERING A CERTIFIED GREENHOUSE GAS OFFSET PROGRAM AND CREDIT16
INSTRUMENTS TO PROVIDE FUNGIBLE GREENHOUSE GAS OFFSETS FOR17
AGRICULTURAL PRODUCERS AND IN AGRICULTURAL LAND MANAGEMENT .18
(II) T
HE COMMISSIONER OR COMMISSIONER 'S DESIGNEE SHALL19
CONDUCT THE STUDY IN CONSULTATION WITH THE COLORADO ENERGY20
OFFICE CREATED IN SECTION 24-38.5-101, THE AIR QUALITY CONTROL21
COMMISSION CREATED IN SECTION 25-7-104 (1), AND AN INSTITUTION OF22
HIGHER EDUCATION WITH EXPERTISE IN CLIMATE CHANGE MITIGATION ,23
ADAPTATION BENEFITS, AND OTHER ENVIRONMENTAL BENEFITS RELATED24
TO AGRICULTURAL RESEARCH .25
(b) (I) A
NY CERTIFIED GREENHOUSE GAS OFFSET PROGRAM AND26
CREDIT INSTRUMENTS OFFERED MUST REFLECT REAL , ADDITIONAL,27
SB23-092
-7- QUANTIFIABLE, PERMANENT, VERIFIABLE, AND ENFORCEABLE REDUCTIONS1
IN GREENHOUSE GAS EMISSIONS THAT ARE EQUIVALENT TO THE OFFSETS2
PROVIDED AND MUST NOT REQUIRE AGRICULTURAL PRODUCERS '3
PARTICIPATION.4
(II) G
REENHOUSE GAS OFFSETS DEVELOPED FOR AGRICULTURAL5
PRODUCERS AND IN AGRICULTURAL LAND MANAGEMENT IN ACCORDANCE6
WITH THIS SECTION MAY BE:7
(A) I
NCORPORATED INTO THE AIR QUALITY CONTROL8
COMMISSION'S RULES, INCLUDING RULES ADOPTED UNDER SECTION9
25-7-105 (1)(e),
AND, SPECIFICALLY, RULES CONCERNING COORDINATION10
WITH OTHER JURISDICTIONS PURSUANT TO THE AUTHORITY GRANTED IN ,11
AND THE CONSIDERATIONS REQUIRED UNDER , SECTION 25-7-105 (1)(e)(V);12
AND13
(B) U
SED AS COMPLIANCE INSTRUMENTS BY A SOURCE REGULATED14
UNDER ARTICLE 7 OF TITLE 25, WITH EMISSION REDUCTION OBLIGATIONS15
THAT ENSURE THAT THE SOURCE 'S OVERALL, ABSOLUTE EMISSIONS16
DECLINE CONSISTENT WITH THE STATEWIDE GREENHOUSE GAS EMISSION17
REDUCTION GOALS SET FORTH IN SECTION 25-7-102 (2)(g).18
(c) T
HE STUDY MUST IDENTIFY POLICY MECHANISMS TO MITIGATE19
THE IMPACTS THAT THE USE OF GREENHOUSE GAS OFFSETS BY REGULATED20
SOURCES HAS ON DISPROPORTIONATELY IMPACTED COMMUNITIES .21
(2) T
HE COMMISSIONER OR THE COMMISSIONER 'S DESIGNEE SHALL22
SUBMIT TO THE GENERAL ASSEMBLY :23
(a) A
REPORT SUMMARIZING THE PROGRESS ON THE STUDY ON OR24
BEFORE OCTOBER 1, 2024; AND25
(b) A
FINAL REPORT ON THE STUDY ON OR BEFORE OCTOBER 1,26
2025.
THE FINAL REPORT MUST INCLUDE ANY LEGISLATIVE , REGULATORY,27
SB23-092
-8- OR OTHER RECOMMENDATIONS FOR DESIGNING AND IMPLEMENTING1
GREENHOUSE GAS REDUCTION AND CARBON SEQUESTRATION2
OPPORTUNITIES FOR THE AGRICULTURAL SECTOR AND IN AGRICULTURAL3
LAND MANAGEMENT IN THE STATE .4
(3) (a) (I) U
PON CONCLUSION OF THE STUDY, WITH REGARD TO ANY5
RECOMMENDATIONS IN THE STUDY THAT DO NOT REQUIRE LEGISLATIVE6
CHANGES, THE COMMISSIONER, IN CONSULTATION WITH THE COLORADO7
ENERGY OFFICE AND THE AIR QUALITY CONTROL COMMISSION , MAY ADOPT8
RULES TO IMPLEMENT THE RECOMMENDATIONS .9
(II) A
NY RULES ADOPTED PURSUANT TO THIS SUBSECTION (3)(a)10
MUST NOT MANDATE PARTICIPATION BY AGRICULTURAL PRODUCERS IN11
ANY GREENHOUSE GAS OFFSET PROGRAM OR ANY OTHER GREENHOUSE GAS12
REDUCTION AND CARBON SEQUESTRATI ON PROGRAMS OR MECHANISMS13
DEVELOPED IN RULE, BUT THE RULES MAY PROVIDE INCENTIVES TO14
AGRICULTURAL PRODUCERS FOR THEIR VOLUNTARY PARTICIPATION IN ANY15
PROGRAM OR MECHANISM DEVELOPED IN RULE PURSUANT TO THIS16
SUBSECTION (3)(a).17
(b) I
F THE COMMISSIONER ADOPTS RULES PURSUANT TO18
SUBSECTION (3)(a) OF THIS SECTION, THE DEPARTMENT SHALL INCLUDE A19
SUMMARY OF THE RULES AS PART OF THE DEPARTMENT 'S REGULATORY20
AGENDA THAT IT FILES PURSUANT TO SECTION 2-7-203 (4) AND THAT IS21
INCLUDED IN THE DEPARTMENT 'S "SMART ACT" PRESENTATION THAT22
IMMEDIATELY FOLLOWS THE ADOPTION OF THE RULES .23
(4) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE24
REQUIRES:25
(a) "A
NAEROBIC DIGESTER" MEANS A SEALED, OXYGEN-FREE TANK26
INTO WHICH FEEDSTOCK, SUCH AS FOOD WASTE, ANIMAL MANURE, OR27
SB23-092
-9- WASTEWATER SLUDGE , IS PLACED FOR ANAEROBIC DIGESTION BY1
MICROORGANISMS. AN ANAEROBIC DIGESTER CAN BE USED AS A MEANS OF2
WASTE DISPOSAL OR ENERGY PRODUCTION .3
(b) "D
ISPROPORTIONATELY IMPACTED COMMUNITIES " HAS THE4
MEANING SET FORTH IN SECTION 24-4-109 (2)(b)(II).5
(c) "D
RY DIGESTER" MEANS AN ANAEROBIC DIGESTER THAT6
PROCESSES FEEDSTOCK WITH A LOW MOISTURE CONTENT .7
SECTION 4. In Colorado Revised Statutes, 37-60-115, add (12)8
as follows:9
37-60-115. Water studies - rules - definitions - repeal.10
(12) (a) T
HE BOARD, IN CONSULTATION WITH THE STATE ENGINEER, SHALL11
CONDUCT A FEASIBILITY STUDY REGARDING THE USE OF AQUAVOLTAICS12
AS A MEANS OF INCREASING THE BENEFICIAL CONSUMPTIVE USE OF STATE13
WATERS BY REDUCING EVAPORATION FROM , AND LOWERING14
TEMPERATURES OF, IRRIGATION CANALS AND RESERVOIRS UPON WHICH15
AQUAVOLTAIC INFRASTRUCTURE IS PLACED . THE BOARD SHALL CONDUCT16
THE FEASIBILITY STUDY IN ACCORDANCE WITH THE REQUIREMENTS SET17
FORTH IN SECTION 37-60-121 (1)(b)(VIII) AND (1)(b)(IX).18
(b) T
HE BOARD SHALL MAKE GRANTS ASSOCIATED WITH19
PREPARING THE FEASIBILITY STUDY FROM MONEY IN THE FEASIBILITY20
STUDY SMALL GRANT FUND CREATED IN SECTION 37-60-122.7.21
(c) I
N STUDYING THE FEASIBILITY OF USING AQUAVOLTAICS , THE22
BOARD SHALL ENSURE THAT ANY AQUAVOLTAIC INFRASTRUCTURE USED23
IN THE STUDY DOES NOT INTERFERE WITH INSTREAM FLOWS , AS DESCRIBED24
IN SECTION 37-92-102 (3), OR WITH WATER RIGHTS OWNERS ' ABILITY TO25
DIVERT WATER FOR BENEFICIAL USE.26
(d) A
S USED IN THIS SUBSECTION (12), UNLESS THE CONTEXT27
SB23-092
-10- OTHERWISE REQUIRES:1
(I) "A
QUAVOLTAICS" MEANS ONE OR MORE SOLAR ENERGY2
GENERATION FACILITIES PLACED OVER , OR FLOATING ON, IRRIGATION3
CANALS OR RESERVOIRS IN THE STATE.4
(II) "B
ENEFICIAL USE" HAS THE MEANING SET FORTH IN SECTION5
37-92-103
(4).6
(III) "D
IVERT" HAS THE MEANING SET FORTH IN SECTION7
37-92-103
(7).8
(IV) "W
ATER RIGHT" HAS THE MEANING SET FORTH IN SECTION9
37-92-103
(12).10
(V) "W
ATERS OF THE STATE" HAS THE MEANING SET FORTH IN11
SECTION 37-92-103 (13).12
SECTION 5. In Colorado Revised Statutes, 39-4-101, amend13
(3.5) as follows:14
39-4-101. Definitions. As used in this article 4, unless the context15
otherwise requires:16
(3.5) (a) "Solar energy facility" means a new facility first placed17
in production on or after January 1, 2009, that uses real and personal18
property, including but not limited to
one or more solar energy devices,19
as defined in section 38-32.5-100.3 (2), leaseholds, and easements, to20
generate and,
EXCEPT AS PROVIDED IN SUBSECTION (3.5)(b) OF THIS21
SECTION, deliver to the interconnection meter any source of electrical,22
thermal, or mechanical energy in excess of two megawatts by harnessing23
the radiant energy of the sun, including any connected device for which24
the primary purpose is to store energy, and that is not primarily designed25
to supply electricity for consumption on site.26
(b) "S
OLAR ENERGY FACILITY " INCLUDES FACILITIES FOR27
SB23-092
-11- AGRIVOLTAICS, AS DEFINED IN SECTION 35-1-114 (4)(a), AND FOR1
AQUAVOLTAICS, AS DEFINED IN SECTION 37-60-115 (12)(d)(I), THAT2
DELIVER TO THE INTERCONNECTION METER ELECTRICAL ENERGY IN EXCESS3
OF FIVE HUNDRED KILOWATTS.4
SECTION 6. Act subject to petition - effective date. This act5
takes effect at 12:01 a.m. on the day following the expiration of the6
ninety-day period after final adjournment of the general assembly; except7
that, if a referendum petition is filed pursuant to section 1 (3) of article V8
of the state constitution against this act or an item, section, or part of this9
act within such period, then the act, item, section, or part will not take10
effect unless approved by the people at the general election to be held in11
November 2024 and, in such case, will take effect on the date of the12
official declaration of the vote thereon by the governor.13
SB23-092
-12-