First Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 23-0514.01 Jennifer Berman x3286
SENATE BILL 23-092
Senate Committees House Committees
Agriculture & Natural Resources
Appropriations
A BILL FOR AN ACT
C
ONCERNING OPPORTUNITIES FOR VOLUNTARY EMISSION RE DUCTIONS101
IN AGRICULTURE, AND, IN CONNECTION THEREWITH , MAKING AN
102
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
.)
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
SENATE
3rd Reading Unamended
April 24, 2023
SENATE
Amended 2nd Reading
April 21, 2023
SENATE SPONSORSHIP
Simpson and Hansen, Bridges, Buckner, Coleman, Cutter, Exum, Fenberg, Fields,
Gonzales, Hinrichsen, Jaquez Lewis, Marchman, Mullica, Pelton B., Pelton R., Priola,
Roberts, Will, Winter F.
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. October 1, 2023, the office is required to convene a stakeholder group to
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
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, amend10
(1)(c)(II), (2),
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. (1) Legislative declaration. The general assembly14
hereby:15
(c) Declares that:16
(II) The agricultural drought and climate resilience office can best17
address and mitigate agricultural climate-related issues on a wide scale by18
providing support to and assisting bona fide agricultural producers in19
implementing practices that minimize the impacts of climate change.20
(2) Office created. (a) (I) There is hereby created in the21
department the agricultural drought and climate resilience office. referred22
to in this section as the "office". The office may provide voluntary23
technical assistance, nonregulatory programs, and incentives,
INCLUDING24
GRANTS, that increase the ability to anticipate, prepare for, mitigate, adapt25
to, and respond to hazardous events, trends, or disturbances related to26
drought or the climate.27
092
-3- (II) IN AWARDING GRANTS IN ACCORDANCE WITH THE1
COMMISSIONER'S RULES ADOPTED PURSUANT TO SUBSECTION (3) OF THIS2
SECTION, THE OFFICE SHALL GIVE STRONG CONSIDERATION TO GRANT3
APPLICATIONS THAT PROPOSE USING GRANT MONEY TO CONDUCT A NEW4
OR ONGOING DEMONSTRATION OR RESEARCH PROJECT AS A MEANS TO5
STUDY THE POTENTIAL, BENEFITS, AND TRADEOFFS OF AGRIVOLTAICS IN6
THE STATE. ANY AGRIVOLTAIC STUDY AWARDED A GRANT PURSUANT TO7
THIS SUBSECTION (2)(a)(II) MUST INCLUDE FINDINGS ON THE ADDITIONAL8
COSTS, INCLUDING THE ADDITIONAL CAPITAL AND ONGOING MAINTENANCE9
COSTS, FOR THE USE OF AGRIVOLTAICS AS COMPARED TO TRADITIONAL10
PHOTOVOLTAICS. THE ADDITIONAL COSTS MUST BE QUANTIFIED ON BOTH11
A DOLLAR-PER-MEGAWATT AND A DOLLAR -PER-MEGAWATT-HOUR BASIS.12
(b) The office shall advise the commissioner, the Colorado13
agricultural value-added development board created in section 35-75-203,14
other state agencies, and the governor on the impact to agriculture of15
drought and climate policies and programs.16
(c) The commissioner shall appoint the head of the office.17
(3) (a) Rules. The commissioner may promulgate rules necessary18
for the administration of the office's assistance, programs, and incentives,19
including grants,
CONSISTENT WITH THIS SUBSECTION (3). Before20
promulgating the rules, the commissioner shall convene a stakeholder21
group, including representatives of organizations whose membership22
consists of agricultural producers engaged in the production of the top ten23
agricultural commodities produced in Colorado, and
members of the state24
conservation board created in section 35-70-103 (1)(a),
AND
25
REPRESENTATIVES OF THE SOLAR ENERGY DEVELOPMENT INDUSTRY . The26
stakeholder group shall advise the commissioner as to the needs of the27
092
-4- agriculture industry to respond to and mitigate the impacts of climate1
change on agricultural production For the purpose of this section, "bona2
fide agricultural producer" means an agricultural producer that receives3
a majority of the producer's annual income from agriculture, an4
agricultural producer that spends more than one thousand forty hours per5
year engaged in agricultural production, or a Colorado business that6
processes agricultural products AND SOLUTIONS FROM THE SOLAR ENERGY7
DEVELOPMENT INDUSTRY ON PROVIDING FEASIBLE SOLUTIONS FOR8
PRODUCING ELECTRICITY ON AGRICULTURAL LANDS WHILE CONTRIBUTING9
ECOLOGICAL AND AGRICULTURAL BENEFITS .10
(b) Assistance, programs, and incentives. (I) Except for a11
program,
ASSISTANCE, INCENTIVE, or support administered by the office12
to address immediate needs as a result of disaster, including wildfire and13
drought, or a program
that was in existence on January 1, 2021,14
(a) a program, ASSISTANCE, INCENTIVE, OR SUPPORT administered15
by the office must be designed to benefit bona fide agricultural producers16
actively engaged in agriculture INCLUDE NEW OR ONGOING17
DEMONSTRATION OR RESEARCH PROJECTS TO DEMONSTRATE OR STUDY18
THE USE OF AGRIVOLTAICS TO:19
(A) H
ELP PREPARE FOR AND MITIGATE THE IMPACTS THAT CLIMATE20
CHANGE OR DROUGHT HAVE ON AGRICULTURE ;21
(B) R
EDUCE ENERGY COSTS IN AGRICULTURE ;
22
(C) I
MPROVE THE ECONOMIC RESILIENCE OF AGRICULTURAL
23
PRODUCERS;24
(D) M
INIMIZE NEGATIVE ENVIRONMENTAL IMPACTS OF
25
PHOTOVOLTAIC ENERGY PRODUCTION FACILITIES ON SOIL HEALTH , NATIVE26
VEGETATION, STATE AND FEDERAL LISTED SPECIES, WILDLIFE MIGRATION27
092
-5- CORRIDORS, AND THE SPECIES, HABITATS, AND ECOSYSTEMS THAT ARE OF1
THE GREATEST CONSERVATION NEED ; AND2
(E) PROVIDE OTHER STATEWIDE ENVIRONMENTAL BENEFITS , AS3
IDENTIFIED BY THE OFFICE.4
(II) Grants awarded by the office must pay for implementation of5
practices to address and mitigate the impacts of climate change or drought6
ON AGRICULTURE or to provide direct adaptation support for impacted7
agricultural communities, including mental health resources, conflict8
resolution assistance, and risk-management guidance. A grant award may9
pay no more than five percent of administrative expenses incurred by a10
bona fide
AN agricultural producer to implement the practices.11
(b) (III) The department shall, at least thirty days before opening12
the grant application process, make available, on its website, information13
related to the grant program available to bone fide agricultural producers.14
(c) (IV) A grant authorized pursuant to this section must receive15
final approval by the commission before a final award can be issued. and16
(d) (V) The department shall post on its website all applications17
for grant awards. Within fifteen days after awarding a grant, the18
department shall post on its website the name of the individual or entity19
receiving a grant, the amount of the grant awarded, the project or projects20
to be funded by the grant, and the duration of the grant award.21
22
(4) Task force. (a) O
N OR BEFORE SEPTEMBER 1, 2023, THE
23
OFFICE SHALL CONVENE AN AGRIVOLTAICS TASK FORCE TO CONDUCT A24
STUDY IN CONSULTATION WITH THE DEPARTMENT , THE COLORADO25
ENERGY OFFICE CREATED IN SECTION 24-38.5-101 (1), AND THE DIVISION26
OF PARKS AND WILDLIFE IN THE DEPARTMENT OF NATURAL RESOURCES27
092
-6- CREATED IN SECTION 33-9-104 (1) TO EVALUATE THE OPPORTUNITIES AND1
CHALLENGES ASSOCIATED WITH AGRIVOLTAICS IN THE STATE , INCLUDING:2
(I) T
HE TECHNICAL, OPERATIONAL, ENVIRONMENTAL , OR
3
FINANCIAL BARRIERS TO AN EXPANSION OF THE ADOPTION OF4
AGRIVOLTAICS IN THE STATE; AND5
(II) P
OTENTIAL STATE-LEVEL POLICIES AND PROGRAMS TO
6
MINIMIZE THE BARRIERS.7
(b) T
HE TASK FORCE MUST INCLUDE ONE OR MORE
8
REPRESENTATIVES OF EACH OF THE FOLLOWING :9
(I) A
GRICULTURAL PRODUCERS AND AGRICULTURAL
10
ASSOCIATIONS;11
(II) U
TILITIES;
12
(III) D
EVELOPERS, OWNERS, OPERATORS, OR OTHER BUSINESSES
13
CRITICAL TO THE CREATION OR MANAGEMENT OF SOLAR ENERGY14
FACILITIES;15
(IV) A
RESEARCH INSTITUTION OR NATIONAL LAB, LOCATED IN THE
16
STATE, THAT HAS AGRIVOLTAIC EXPERIENCE ;17
(V) E
NVIRONMENTAL ADVOCACY ORGANIZATIONS IN THE STATE ;
18
AND19
(VI) I
NDEPENDENT POWER PRODUCERS .
20
(c) O
N OR BEFORE FEBRUARY 15, 2024, THE TASK FORCE SHALL
21
PRESENT THE RESULTS OF THE STUDY , INCLUDING ANY22
RECOMMENDATIONS FOR LEGISLATION , TO THE JOINT COMMITTEE OF THE23
HOUSE OF REPRESENTATIVES AGRICULTURE , WATER, AND NATURAL24
RESOURCES COMMITTEE AND THE SE NATE AGRICULTURE AND NATURAL25
RESOURCES COMMITTEE, OR THEIR SUCCESSOR COMMITTEES .26
(5) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE27
092
-7- REQUIRES:1
(a) "A
GRIVOLTAICS" MEANS ONE OR MORE SOLAR ENERGY2
GENERATION FACILITIES DIRECTLY INTEGRATED WITH AGRICULTURAL3
ACTIVITIES, INCLUDING CROP PRODUCTION , GRAZING, ANIMAL4
HUSBANDRY, APIARIES, COVER CROPPING TO IMPROVE SOIL HEALTH OR
5
INSECT HABITAT BENEFITS OR CARBON SEQUESTRATION , OR PRODUCTION6
OF AGRICULTURAL COMMODITIES FOR SALE IN THE RETAIL OR WHOLESALE7
MARKET.8
9
(b) "OFFICE" MEANS THE AGRICULTURAL DROUGHT AND CLIMATE10
RESILIENCE OFFICE CREATED IN SUBSECTION (2) OF THIS SECTION.11
SECTION 3. In Colorado Revised Statutes, add 35-1-119 as12
follows:13
35-1-119. Study of greenhouse gas reduction and carbon14
sequestration opportunities in agriculture and agricultural land15
management - definitions - reporting - rules. (1) (a) (I) I
N16
ACCORDANCE WITH SUBSECTION (1)(a)(II) OF THIS SECTION, THE17
COMMISSIONER OR THE COMMISSIONER 'S DESIGNEE SHALL CONDUCT A18
STUDY TO EXAMINE GREE NHOUSE GAS REDUCTION AND CARBON19
SEQUESTRATION OPPORTUNITIES IN THE AGRICULTURAL SECTOR AND IN20
AGRICULTURAL LAND MANAGEMENT IN THE STATE , INCLUDING:21
(A) S
OIL HEALTH MANAGEMENT PRACTICES , INCLUDING COVER
22
CROPPING, MANURE MANAGEMENT , SOIL AMENDMENTS, ROTATIONAL23
GRAZING, RANGELAND MANAGEMENT , LOW- AND NO-TILL PRACTICES, AND24
HEDGE GROWS;25
(B) T
HE USE OF DRY DIGESTERS; AND
26
(C) AN INVESTIGATION INTO THE POTENTIAL FOR CREATING AND27
092
-8- OFFERING A CERTIFIED GREENHOUSE GAS OFFSET PROGRAM AND CREDIT1
INSTRUMENTS TO PROVIDE FUNGIBLE GREENHOUSE GAS OFFSETS FOR2
AGRICULTURAL PRODUCERS AND IN AGRICULTURAL LAND MANAGEMENT .3
(II) T
HE COMMISSIONER OR COMMISSIONER 'S DESIGNEE SHALL4
CONDUCT THE STUDY IN CONSULTATION WITH THE COLORADO ENERGY5
OFFICE CREATED IN SECTION 24-38.5-101, THE AIR QUALITY CONTROL6
COMMISSION CREATED IN SECTION 25-7-104 (1), THE NATURAL AND
7
WORKING LANDS TASK FORCE CONVENED BY THE DEPARTMENT OF8
NATURAL RESOURCES, THE COLORADO STATE FOREST SERVICE , AND AN9
INSTITUTION OF HIGHER EDUCATION WITH EXPERTISE IN CLIMATE CHANGE10
MITIGATION, ADAPTATION BENEFITS , AND OTHER ENVIRONMENTAL11
BENEFITS RELATED TO AGRICULTURAL RESEARCH .12
(b) (I) A
NY CERTIFIED GREENHOUSE GAS OFFSET PROGRAM AND13
CREDIT INSTRUMENTS OFFERED MUST REFLECT REAL , ADDITIONAL,14
QUANTIFIABLE, PERMANENT, VERIFIABLE, AND ENFORCEABLE REDUCTIONS15
IN GREENHOUSE GAS EMISSIONS THAT ARE EQUIVALENT TO THE OFFSETS16
PROVIDED AND MUST NOT REQUIRE AGRICULTURAL PRODUCERS '17
PARTICIPATION.18
(II) G
REENHOUSE GAS OFFSETS DEVELOPED FOR AGRICULTURAL19
PRODUCERS AND IN AGRICULTURAL LAND MANAGEMENT IN ACCORDANCE20
WITH THIS SECTION:
21
(A) M
AY BE INCORPORATED INTO THE AIR QUALITY CONTROL
22
COMMISSION'S RULES, INCLUDING RULES ADOPTED UNDER SECTION23
25-7-105 (1)(e),
AND, SPECIFICALLY, RULES CONCERNING COORDINATION24
WITH OTHER JURISDICTIONS PURSUANT TO THE AUTHORITY GRANTED IN ,25
AND THE CONSIDERATIONS REQUIRED UNDER , SECTION 25-7-105 (1)(e)(V);26
(B) M
AY BE USED AS COMPLIANCE INSTRUMENTS BY A SOURCE
27
092
-9- REGULATED UNDER ARTICLE 7 OF TITLE 25, WITH EMISSION REDUCTION1
OBLIGATIONS ESTABLISHED BY THE AIR QUALITY CONTROL COMMISSION2
THAT ENSURE THAT THE ANNUAL , OVERALL, ABSOLUTE EMISSIONS FROM3
THE SOURCE, SECTOR, OR GROUP OF SOURCES DECLINE CONSISTENT WITH4
THE STATEWIDE GREENHOUSE GAS EMISSION REDUCTION GOALS SET FORTH5
IN SECTION 25-7-102 (2)(g), PROVIDED THAT THE SOURCE IS LOCATED IN6
A DISPROPORTIONATELY IMPACTED COMMUNITY . THE COMMISSION SHALL7
ESTABLISH BY RULE AN ANNUAL , ABSOLUTE EMISSION REDUCTION8
OBLIGATION SPECIFIC TO THE SOURCE.9
(C) M
UST NOT BE AVAILABLE AS AN INSTRUMENT FOR EMISSIONS
10
REDUCTION COMPLIANCE UNDER SECTION 25-7-105 (1)(e)(V) UNLESS THE11
COMMISSION HAS ADOPTED RULES ESTABLISHING AN ANNUAL , ABSOLUTE12
EMISSION REDUCTION OBLIGATION FOR THE RELEVANT SECTOR THAT IS13
CONSISTENT WITH THE STATEWIDE GREENHOUSE GAS EMISSION REDUCTION14
GOALS.15
(c) T
HE STUDY MUST IDENTIFY POLICY MECHANISMS TO AVOID
THE16
IMPACTS THAT THE USE OF GREENHOUSE GAS OFFSETS BY REGULATED17
SOURCES COULD HAVE ON DISPROPORTIONATELY IMPACTED COMMUNITIES .18
(2) T
HE COMMISSIONER OR THE COMMISSIONER 'S DESIGNEE SHALL19
SUBMIT TO THE GENERAL ASSEMBLY :20
(a) A
REPORT SUMMARIZING THE PROGRESS ON THE STUDY ON OR21
BEFORE OCTOBER 1, 2024; AND22
(b) A
FINAL REPORT ON THE STUDY ON OR BEFORE OCTOBER 1,23
2025.
THE FINAL REPORT MUST INCLUDE ANY LEGISLATIVE , REGULATORY,24
OR OTHER RECOMMENDATIONS FOR DESIGNING AND IMPLEMENTING25
GREENHOUSE GAS REDUCTION AND CARBON SEQUESTRATION26
OPPORTUNITIES FOR THE AGRICULTURAL SECTOR AND IN AGRICULTURAL27
092
-10- LAND MANAGEMENT IN THE STATE .1
(3) (a) (I) U
PON CONCLUSION OF THE STUDY, WITH REGARD TO ANY2
RECOMMENDATIONS IN THE STUDY THAT DO NOT REQUIRE LEGISLATIVE3
CHANGES, THE COMMISSIONER, IN CONSULTATION WITH THE COLORADO4
ENERGY OFFICE AND THE AIR QUALITY CONTROL COMMISSION , MAY ADOPT5
RULES TO IMPLEMENT THE RECOMMENDATIONS .6
(II) A
NY RULES ADOPTED PURSUANT TO THIS SUBSECTION (3)(a)7
MUST NOT MANDATE PARTICIPATION BY AGRICULTURAL PRODUCERS IN8
ANY GREENHOUSE GAS OFFSET PROGRAM OR ANY OTHER GREENHOUSE GAS9
REDUCTION AND CARBON SEQUESTRATION PROGRAMS OR MEC HANISMS10
DEVELOPED IN RULE, BUT THE RULES MAY PROVIDE INCENTIVES TO11
AGRICULTURAL PRODUCERS FOR THEIR VOLUNTARY PARTICIPATION IN ANY12
PROGRAM OR MECHANISM DEVELOPED IN RULE PURSUANT TO THIS13
SUBSECTION (3)(a).14
(b) I
F THE COMMISSIONER ADOPTS RULES PURSUANT TO15
SUBSECTION (3)(a) OF THIS SECTION, THE DEPARTMENT SHALL INCLUDE A16
SUMMARY OF THE RULES AS PART OF THE DEPARTMENT 'S REGULATORY17
AGENDA THAT IT FILES PURSUANT TO SECTION 2-7-203 (4) AND THAT IS18
INCLUDED IN THE DEPARTMENT 'S "SMART ACT" PRESENTATION THAT19
IMMEDIATELY FOLLOWS THE ADOPTION OF THE RULES .20
(4) N
OTHING IN THIS SECTION REQUIRES THE AIR QUALITY
21
CONTROL COMMISSION TO ADOPT RULES FOR GREENHOUSE GAS EMISSION22
OFFSETS OR CREDIT MECHANISMS OR TO ACCEPT ANY GREENHOUSE GAS23
EMISSION OFFSETS OR CREDIT MECHANISMS AS COMPLIANCE INSTRUMENTS24
FOR EMISSION REDUCTION COMPLIANCE OR VERIFICATION .25
(5) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE26
REQUIRES:27
092
-11- (a) "ANAEROBIC DIGESTER" MEANS A SEALED, OXYGEN-FREE TANK1
INTO WHICH FEEDSTOCK, SUCH AS FOOD WASTE, ANIMAL MANURE, OR2
WASTEWATER SLUDGE , IS PLACED FOR ANAEROBIC DIGESTION BY3
MICROORGANISMS. AN ANAEROBIC DIGESTER CAN BE USED AS A MEANS OF4
WASTE DISPOSAL OR ENERGY PRODUCTION .5
(b) "D
ISPROPORTIONATELY IMPACTED COMMUNITIES " HAS THE6
MEANING SET FORTH IN SECTION 24-4-109 (2)(b)(II).7
(c) "D
RY DIGESTER" MEANS AN ANAEROBIC DIGESTER THAT8
PROCESSES FEEDSTOCK WITH A LOW MOISTURE CONTENT .9
SECTION 4. In Colorado Revised Statutes, 37-60-115, add (12)10
as follows:11
37-60-115. Water studies - rules - reports - definitions - repeal.
12
(12) (a) Study. (I) T
HE BOARD, IN CONSULTATION WITH THE STATE
13
ENGINEER, THE COLORADO ENERGY OFFICE, AND THE INSTITUTE, SHALL14
CONDUCT A STUDY TO DETERMINE THE FEASIBILITY OF THE USE OF15
AQUAVOLTAICS AS A MEANS OF INCREASING THE BENEFICIAL16
CONSUMPTIVE USE OF STATE WATERS BY REDUCING EVAPORATION FROM ,17
AND LOWERING TEMPERATURES OF , IRRIGATION CANALS AND RESERVOIRS18
UPON WHICH AQUAVOLTAIC INFRASTRUCTURE IS PLACED . IN STUDYING19
THE FEASIBILITY OF USING AQUAVOLTAICS , THE BOARD SHALL ENSURE20
THAT ANY AQUAVOLTAIC INFRASTRUCTURE USED IN THE STUDY DOES NOT21
INTERFERE WITH INSTREAM FLOWS , AS DESCRIBED IN SECTION 37-92-10222
(3),
OR WITH WATER RIGHTS OWNERS ' ABILITY TO DIVERT WATER FOR23
BENEFICIAL USE.24
(II) T
HE BOARD MAY CONTRACT WITH THE INSTITUTE , A THIRD
25
PARTY, OR BOTH, TO DESIGN, CARRY OUT, AND ANALYZE THE RESULTS OF26
THE STUDY REQUIRED IN THIS SUBSECTION (12)(a). IF THE BOARD DEEMS27
092
-12- APPROPRIATE, THE STUDY MUST BE CONDUCTED IN CONSIDERATION OF1
AND RELIANCE ON RELEVANT STUDIES COMPL ETED IN THE STATE AND2
NATIONALLY.3
(b) Report. O
N OR BEFORE JANUARY 1, 2025, THE BOARD SHALL
4
SUBMIT A REPORT OF THE FINDINGS AND CONCLUSIONS OF THE STUDY TO5
THE HOUSE OF REPRESENTATIVES AGRICULTURE , WATER, AND NATURAL6
RESOURCES COMMITTEE AND THE SE NATE AGRICULTURE AND NATURAL7
RESOURCES COMMITTEE, OR THEIR SUCCESSOR COMMITTEES .8
(c) AS USED IN THIS SUBSECTION (12), UNLESS THE CONTEXT9
OTHERWISE REQUIRES:10
(I) "A
QUAVOLTAICS" MEANS ONE OR MORE SOLAR ENERGY11
GENERATION FACILITIES PLACED OVER , OR FLOATING ON, IRRIGATION12
CANALS OR RESERVOIRS IN THE STATE.13
(II) "B
ENEFICIAL USE" HAS THE MEANING SET FORTH IN SECTION14
37-92-103
(4).15
(III) "D
IVERT" HAS THE MEANING SET FORTH IN SECTION16
37-92-103
(7).17
(IV) "I
NSTITUTE" MEANS THE COLORADO WATER INSTITUTE
18
CREATED IN SECTION 23-31-801.19
(V) "WATER RIGHT" HAS THE MEANING SET FORTH IN SECTION20
37-92-103
(12).21
(VI)
"WATERS OF THE STATE" HAS THE MEANING SET FORTH IN22
SECTION 37-92-103 (13).23
SECTION 5. In Colorado Revised Statutes, 39-3-122, add (3)24
and (4) as follows:25
39-3-122. Agricultural equipment used in production of26
agricultural products - CEA facilities - exemption - definition. (3) O
N
27
092
-13- AND AFTER JANUARY 1, 2024, BUT BEFORE JANUARY 2, 2029, PERSONAL1
PROPERTY IS EXEMPTED FROM THE LEVY AND COLLECTION OF PROPERTY2
TAX IF THE PROPERTY IS MACHINERY OR EQUIPMENT THAT IS PART OF A3
SOLAR ENERGY GENERATING SYSTEM THAT IS USED FOR AGRIVOLTAICS ,4
AND IF THE PROPERTY:5
(a) I
NCORPORATES NOVEL DESIGNS , TECHNOLOGIES, OR
6
CONFIGURATIONS THAT SIGNIFICANTLY EXPAND THE POTENTIAL FOR7
AGRICULTURAL ACTIVITIES, INCLUDING BY:8
(I) E
LEVATING THE BOTTOM EDGE HEIGHT OF THE PANELS AT
9
LEAST SIX FEET ABOVE THE GROUND ;10
(II) U
TILIZING TRANSLUCENT PANELS;
11
(III) I
NCORPORATING ALTERNATIVE SOLAR TRACKING ALGORITHMS
12
THAT ARE TAILORED TO OPTIMIZE VEGETATIVE GROWTH ; OR13
(IV) I
NCORPORATING EXTENDED ROW OR PANEL SPACING IN A
14
MANNER THAT ENABLES AGRICULTURAL ACTIVITIES ;15
(b) I
S CONSTRUCTED IN A MANNER THAT MINIMIZES SOIL
16
COMPACTION UNDERNEATH AND IN BETWEEN PANELS ; AND17
(c) I
S CONSTRUCTED TO INCORPORATE DESIGN STRATEGIES THAT
18
MINIMIZE THE NEGATIVE ENVIRONMENTAL IMPACT OF PHOTOVOLTAIC19
ENERGY PRODUCTION FACILITIES ON ECOSYSTEMS , NATIVE VEGETATION,20
STATE AND FEDERALLY LISTED SPECIES, WILDLIFE MIGRATION CORRIDORS,21
AND THE SPECIES , HABITATS, AND ECOSYSTEMS OF GREATEST22
CONSERVATION NEED.23
(4) A
S USED IN THIS SECTION, "AGRIVOLTAICS" HAS THE MEANING
24
SET FORTH IN SECTION 35-1-114 (5)(a).25
SECTION 6. In Colorado Revised Statutes, 39-4-101, amend26
(3.5) as follows:27
092
-14- 39-4-101. Definitions. As used in this article 4, unless the context1
otherwise requires:2
(3.5) (a) "Solar energy facility" means a new facility first placed3
in production on or after January 1, 2009, that uses real and personal4
property, including but not limited to one or more solar energy devices,5
as defined in section 38-32.5-100.3 (2), leaseholds, and easements, to6
generate and,
EXCEPT AS PROVIDED IN SUBSECTION (3.5)(b) OF THIS7
SECTION, deliver to the interconnection meter any source of electrical,8
thermal, or mechanical energy in excess of two megawatts by harnessing9
the radiant energy of the sun, including any connected device for which10
the primary purpose is to store energy, and that is not primarily designed11
to supply electricity for consumption on site.12
(b) "S
OLAR ENERGY FACILITY " INCLUDES FACILITIES FOR13
AGRIVOLTAICS, AS DEFINED IN SECTION 35-1-114 (5)(a),
AND FOR14
AQUAVOLTAICS, AS DEFINED IN SECTION 37-60-115 (12)(c)(I), THAT15
DELIVER TO THE INTERCONNECTION METER ELECTRICAL ENERGY IN EXCESS16
OF FIVE HUNDRED KILOWATTS17
SECTION 7. In Colorado Revised Statutes, 39-27-102.5, add18
(11) as follows:19
39-27-102.5. Exemptions on tax imposed - ex-tax purchases -20
definitions - repeal. (11) (a) A
S USED IN THIS SUBSECTION (11), UNLESS
21
THE CONTEXT OTHERWISE REQUIRES :22
(I) "B
IODIESEL" MEANS A FUEL COMPRISED OF MONO -ALKYL
23
ESTERS OF LONG-CHAIN FATTY ACIDS GENERALLY DERIVED FROM24
VEGETABLE OILS OR ANIMAL FATS, DESIGNATED AS B100, AND MEETS THE25
REQUIREMENTS OF ASTM D6751, WHICH IS THE "STANDARD26
S
PECIFICATION FOR BIODIESEL FUEL BLEND STOCK (B100) FOR MIDDLE
27
092
-15- DISTILLATE FUELS".1
(II) "R
ENEWABLE DIESEL" MEANS A HYDROCARBON DIESEL
2
VEHICLE FUEL PRODUCED FROM NONPETROLEUM RENEWABLE RESOURCES3
SUCH AS VEGETABLE OILS, INCLUDING SOY, CORN, AND CANOLA, ANIMAL4
OR POULTRY FAT, USED COOKING OIL, MUNICIPAL SOLID WASTE, AND5
WASTEWATER SLUDGE AND OILS . "RENEWABLE DIESEL" MEETS OR6
EXCEEDS ALL MINIMUM STANDARDS SET FORTH IN ASTM D975, WHICH IS7
THE "STANDARD SPECIFICATION FOR DIESEL FUEL". "RENEWABLE DIESEL"8
IS NOT BIODIESEL.9
(b) (I) O
N AND AFTER JANUARY 1, 2024, THROUGH DECEMBER 31,
10
2029,
BIODIESEL AND RENEWABLE DIESEL BLENDS IN AMOUNTS OF FIVE
11
PERCENT (B5) BIODIESEL OR RENEWABLE DIESEL OR GREATER ARE EXEMPT12
FROM THE EXCISE TAX IMPOSED PURSUANT TO THIS PART 1. IN THE CASE13
OF A BLENDED SPECIAL FUEL THAT CONTAINS BIODIESEL OR RENEWABLE14
DIESEL, THE TAX IMPOSED UNDER SECTION 39-27-102 (1)(a)(II)(B) IS15
REDUCED BY THE PROPORTION THAT THE GALLONS OF BIODIESEL OR16
RENEWABLE DIESEL BEAR TO THE TOTAL GALLONS OF BLENDED SPECIAL17
FUEL.18
(II) A
LICENSED FUEL DISTRIBUTOR THAT IS RESPONSIBLE FOR
19
PAYING STATE EXCISE TAX ON THE UNDERLYING DIESEL PORTION OF THE20
FUEL IS ELIGIBLE FOR THE TAX EXEMPTION SET FORTH IN THIS SUBSECTION21
(11)(b)22
(c) (I) T
HE VOLUME OF BIODIESEL OR RENEWABLE DIESEL MUST BE
23
IDENTIFIED ON A SALES INVOICE FOR EACH SALES TRANSACTION AND MUST24
CONTINUE TO BE IDENTIFIED ON EACH SALES INVOICE UNTIL THE BLENDED25
BIODIESEL OR BLENDED RENEWABLE DIESEL FUEL PRODUCT IS SOLD TO THE26
END USER.27
092
-16- (II) A SALES INVOICE MUST:1
(A) I
DENTIFY A BIODIESEL, RENEWABLE DIESEL, BIODIESEL BLEND,
2
OR RENEWABLE DIESEL BLEND BY A COMMONLY ACCEPTED COMMERCIAL3
OR INDUSTRY NAME FOR THE BLENDED SPECIAL FUEL PRODUCT BEING4
SOLD, SUCH AS B100 FOR BIODIESEL OR B20 FOR A BIODIESEL BLEND THAT5
CONTAINS EIGHTY PERCENT TAXABLE PETROLEUM -BASED DIESEL FUEL6
AND TWENTY PERCENT BIODIESEL ;7
(B) L
IST THE VOLUME IN GALLONS, ROUNDED TO THE NEAREST
8
WHOLE GALLON, OR THE PERCENTAGE, ROUNDED TO THE NEAREST WHOLE9
PERCENTAGE, OF THE BIODIESEL OR RENEWABLE DIESEL OR TAXABLE10
PETROLEUM-BASED DIESEL FUEL CONTAINED IN THE BLENDED SPECIAL11
FUEL PRODUCT.12
(C) I
NCLUDE THE AMOUNT OF TAX PER GALLON THAT APPLIES TO
13
THE BIODIESEL BLEND OR RENEWABLE DIESEL BLEND .14
(d) (I) A
BLENDER MUST PROVIDE TO A PURCHASER OF BIODIESEL ,
15
RENEWABLE DIESEL, BLENDED BIODIESEL, OR BLENDED RENEWABLE16
DIESEL A CERTIFICATE, INVOICE, BILL OF SALE, OR OTHER WRITTEN17
STATEMENT THAT PROVIDES THE INFORMATION REQUIRED PURSUANT TO18
SUBSECTION (11)(c)(II) OF THIS SECTION AND THE FOLLOWING19
ADDITIONAL INFORMATION:20
(A) T
HE NAME OF THE SELLER;
21
(B) T
HE NAME OF THE PURCHASER; AND
22
(C) T
HE DATE OF TRANSFER OF THE BLENDED SPECIAL FUEL
23
PRODUCT.24
(II) A
NY PERSON CLAIMING THE TAX EXEMPTION PURSUANT TO
25
SUBSECTION (11)(b) OF THIS SECTION MUST MAINTAINS THE26
CERTIFICATION RECORDS REGARDING THE BIODIESEL , RENEWABLE DIESEL,27
092
-17- BLENDED BIODIESEL, OR BLENDED RENEWABLE DIESEL FUEL PRODUCT FOR1
AT LEAST FOUR YEARS.2
(e) O
N OR BEFORE SEPTEMBER 15, 2024, AND ON OR BEFORE
3
S
EPTEMBER 15 FOR EACH YEAR THEREAFTER THROUGH 2029, THE
4
DEPARTMENT SHALL REPORT TO THE STATE TREASURER ON THE AMOUNT5
OF SPECIAL FUEL TAX REVENUE LOST DUE TO THE TAX EXEMPTION SET6
FORTH IN THIS SUBSECTION (11) IN THE PREVIOUS STATE FISCAL YEAR.7
(f) T
HIS SUBSECTION (11) IS REPEALED, EFFECTIVE SEPTEMBER 1,
8
2030.9
SECTION 8. In Colorado Revised Statutes, 24-75-219, add (7)(i)10
as follows:11
24-75-219. Transfers - transportation - capital construction -12
definitions - repeal. (7) In addition to any other transfers required by13
this section:14
(i) (I) O
N OCTOBER 1, 2024, AND ON OCTOBER 1 OF EACH YEAR
15
THEREAFTER THROUGH 2029, THE STATE TREASURER SHALL TRANSFER16
FROM THE GENERAL FUND TO THE HIGHWAY USERS TAX FUND , CREATED IN17
SECTION 43-4-201, THE AMOUNT OF MONEY THAT THE DEPARTMENT OF18
REVENUE REPORTS TO THE STATE TREASURER PURSUANT TO SECTION19
39-27-102.5 (11)(e).20
(II) T
HIS SUBSECTION (7)(i) IS REPEALED, EFFECTIVE SEPTEMBER
21
1,
2030.
22
SECTION 9. In Colorado Revised Statutes, 43-4-205, amend23
(6.7) as follows:24
43-4-205. Allocation of fund. (6.7) Money transferred from the25
general fund to the highway users tax fund pursuant to section 24-75-21926
(5)(b.5)
AND (7)(i) must be allocated and expended in accordance with the
27
092
-18- formula specified in subsection (6)(b) of this section.1
SECTION 10. Appropriation. (1) For the 2023-24 state fiscal2
year, $4,516,267 General Fund is appropriated to the department of3
agriculture for use by the commissioner's office and administrative4
services. To implement this act, the office may use this appropriation as5
follows:6
(a) $412,680 for personal services, which amount is based on an7
assumption that the office will require an additional 1.0 FTE;8
(b) $186,665 for operating expenses;9
(c) $3,862,422 for agrivoltaics grants; and10
(e) $54,500 for the task force. 11
(2) Any money appropriated in subsection 1 of this section not12
expended prior to July 1, 2024, is further appropriated to the office for the13
same purpose until expended or June 30, 2026, whichever comes first.14
(3) For the 2023-24 state fiscal year, $30,322 General Fund is15
appropriated to the department of revenue. To implement this act, the16
department may use this appropriation as follows:17
(a) $7,392 for use by taxations services for personal services; and18
(b) $22,930 for tax administration IT system (GenTax) support.19
SECTION 11. Act subject to petition - effective date. This act20
takes effect at 12:01 a.m. on the day following the expiration of the21
ninety-day period after final adjournment of the general assembly; except22
that, if a referendum petition is filed pursuant to section 1 (3) of article V23
of the state constitution against this act or an item, section, or part of this24
act within such period, then the act, item, section, or part will not take25
effect unless approved by the people at the general election to be held in26
092
-19- November 2024 and, in such case, will take effect on the date of the1
official declaration of the vote thereon by the governor.2
092
-20-