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. 23-0514.01 Jennifer Berman x3286 SENATE BILL 23-092 Senate Committees House Committees Agriculture & Natural Resources Agri culture, Water & Natural Resources Appropriations 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 HOUSE Amended 2nd Reading May 7, 2023 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 FLOATOVOLTAICS 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) 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) AS USED IN THIS SECTION, UNLESS THE CONTEXT23 OTHERWISE REQUIRES:24 (a) "A GRIVOLTAICS" MEANS ONE OR MORE SOLAR ENERGY25 GENERATION FACILITIES DIRECTLY INTEGRATED WITH AGRICULTURAL26 ACTIVITIES, INCLUDING CROP PRODUCTION , GRAZING, ANIMAL27 092 -6- HUSBANDRY, APIARIES, COVER CROPPING TO IMPROVE SOIL HEALTH OR1 INSECT HABITAT BENEFITS OR CARBON SEQUESTRATION , OR PRODUCTION2 OF AGRICULTURAL COMMODITIES FOR SALE IN THE RETAIL OR WHOLESALE3 MARKET.4 5 (b) "OFFICE" MEANS THE AGRICULTURAL DROUGHT AND CLIMATE6 RESILIENCE OFFICE CREATED IN SUBSECTION (2) OF THIS SECTION.7 SECTION 3. In Colorado Revised Statutes, add 35-1-119 as8 follows:9 35-1-119. Study of greenhouse gas reduction and carbon10 sequestration opportunities in agriculture and agricultural land11 management - definitions - reporting - rules. (1) (a) (I) I N12 ACCORDANCE WITH SUBSECTION (1)(a)(II) OF THIS SECTION, THE13 COMMISSIONER OR THE COMMISSIONER 'S DESIGNEE SHALL CONDUCT A14 STUDY TO EXAMINE GREENHOUSE GAS REDUCTION AND CARBON15 SEQUESTRATION OPPORTUNITIES IN THE AGRICULTURAL SECTOR AND IN16 AGRICULTURAL LAND MANAGEMENT IN THE STATE , INCLUDING:17 (A) S OIL HEALTH MANAGEMENT PRACTICES , INCLUDING COVER 18 CROPPING, MANURE MANAGEMENT , SOIL AMENDMENTS, ROTATIONAL19 GRAZING, RANGELAND MANAGEMENT , LOW- AND NO-TILL PRACTICES, AND20 HEDGE GROWS;21 (B) T HE USE OF DRY DIGESTERS; AND 22 (C) AN INVESTIGATION INTO THE POTENTIAL FOR CREATING AND23 OFFERING A CERTIFIED GREENHOUSE GAS OFFSET PROGRAM AND CREDIT24 INSTRUMENTS TO PROVIDE FUNGIBLE GREENHOUSE GAS OFFSETS FOR25 AGRICULTURAL PRODUCERS AND IN AGRICULTURAL LAND MANAGEMENT .26 (II) T HE COMMISSIONER OR COMMISSIONER 'S DESIGNEE SHALL27 092 -7- CONDUCT THE STUDY IN CONSULTATION WITH THE COLORADO ENERGY1 OFFICE CREATED IN SECTION 24-38.5-101, THE AIR QUALITY CONTROL2 COMMISSION CREATED IN SECTION 25-7-104 (1), THE NATURAL AND3 WORKING LANDS TASK FORCE CONVENED BY THE DEPARTMENT OF4 NATURAL RESOURCES, THE COLORADO STATE FOREST SERVICE , AND AN5 INSTITUTION OF HIGHER EDUCATION WITH EXPERTISE IN CLIMATE CHANGE6 MITIGATION, ADAPTATION BENEFITS , AND OTHER ENVIRONMENTAL7 BENEFITS RELATED TO AGRICULTURAL RESEARCH .8 (b) (I) A NY CERTIFIED GREENHOUSE GAS OFFSET PROGRAM AND9 CREDIT INSTRUMENTS OFFERED MUST REFLECT REAL , ADDITIONAL,10 QUANTIFIABLE, PERMANENT, VERIFIABLE, AND ENFORCEABLE REDUCTIONS11 IN GREENHOUSE GAS EMISSIONS THAT ARE EQUIVALENT TO THE OFFSETS12 PROVIDED AND MUST NOT REQUIRE AGRICULTURAL PRODUCERS '13 PARTICIPATION.14 (II) G REENHOUSE GAS OFFSETS DEVELOPED FOR AGRICULTURAL15 PRODUCERS AND IN AGRICULTURAL LAND MANAGEMENT IN ACCORDANCE16 WITH THIS SECTION: 17 (A) M AY BE INCORPORATED INTO THE AIR QUALITY CONTROL 18 COMMISSION'S RULES, INCLUDING RULES ADOPTED UNDER SECTION19 25-7-105 (1)(e), AND, SPECIFICALLY, RULES CONCERNING COORDINATION20 WITH OTHER JURISDICTIONS PURSUANT TO THE AUTHORITY GRANTED IN ,21 AND THE CONSIDERATIONS REQUIRED UNDER , SECTION 25-7-105 (1)(e)(V);22 (B) M AY BE USED AS COMPLIANCE INSTRUMENTS BY A SOURCE 23 REGULATED UNDER ARTICLE 7 OF TITLE 25, WITH EMISSION REDUCTION24 OBLIGATIONS ESTABLISHED BY THE AIR QUALITY CONTROL COMMISSION25 THAT ENSURE THAT THE ANNUAL , OVERALL, ABSOLUTE EMISSIONS FROM26 THE SOURCE, SECTOR, OR GROUP OF SOURCES DECLINE CONSISTENT WITH27 092 -8- THE STATEWIDE GREENHOUSE GAS EMISSION REDUCTION GOALS SET FORTH1 IN SECTION 25-7-102 (2)(g); EXCEPT THAT, IF THE SOURCE IS LOCATED IN2 A DISPROPORTIONATELY IMPACTED COMMUNITY, THE COMMISSION SHALL3 ESTABLISH BY RULE AN ANNUAL , ABSOLUTE EMISSION REDUCTION4 OBLIGATION SPECIFIC TO THE SOURCE.5 (C) M UST NOT BE AVAILABLE AS AN INSTRUMENT FOR EMISSIONS 6 REDUCTION COMPLIANCE UNDER SECTION 25-7-105 (1)(e)(V) UNLESS THE7 COMMISSION HAS ADOPTED RULES ESTABLISHING AN ANNUAL , ABSOLUTE8 EMISSION REDUCTION OBLIGATION FOR THE RELEVANT SECTOR THAT IS9 CONSISTENT WITH THE STATEWIDE GREENHOUSE GAS EMISSION REDUCTION10 GOALS.11 (c) T HE STUDY MUST IDENTIFY POLICY MECHANISMS TO AVOID THE12 IMPACTS THAT THE USE OF GREENHOUSE GAS OFFSETS BY REGULATED13 SOURCES COULD HAVE ON DISPROPORTIONATELY IMPACTED COMMUNITIES .14 (2) T HE COMMISSIONER OR THE COMMISSIONER 'S DESIGNEE SHALL15 SUBMIT TO THE GENERAL ASSEMBLY :16 (a) A REPORT SUMMARIZING THE PROGRESS ON THE STUDY ON OR17 BEFORE OCTOBER 1, 2024; AND18 (b) A FINAL REPORT ON THE STUDY ON OR BEFORE OCTOBER 1,19 2025. THE FINAL REPORT MUST INCLUDE ANY LEGISLATIVE , REGULATORY,20 OR OTHER RECOMMENDATIONS FOR DESIGNING AND IMPLEMENTING21 GREENHOUSE GAS REDUCTION AND CARBON SEQUESTRATION22 OPPORTUNITIES FOR THE AGRICULTURAL SECTOR AND IN AGRICULTURAL23 LAND MANAGEMENT IN THE STATE .24 (3) (a) (I) U PON CONCLUSION OF THE STUDY, WITH REGARD TO ANY25 RECOMMENDATIONS IN THE STUDY THAT DO NOT REQUIRE LEGISLATIVE26 CHANGES, THE COMMISSIONER, IN CONSULTATION WITH THE COLORADO27 092 -9- ENERGY OFFICE AND THE AIR QUALITY CONTROL COMMISSION , MAY ADOPT1 RULES TO IMPLEMENT THE RECOMMENDATIONS .2 (II) A NY RULES ADOPTED PURSUANT TO THIS SUBSECTION (3)(a)3 MUST NOT MANDATE PARTICIPATION BY AGRICULTURAL PRODUCERS IN4 ANY GREENHOUSE GAS OFFSET PROGRAM OR ANY OTHER GREENHOUSE GAS5 REDUCTION AND CARBON SEQUESTRATI ON PROGRAMS OR MECHANISMS6 DEVELOPED IN RULE, BUT THE RULES MAY PROVIDE INCENTIVES TO7 AGRICULTURAL PRODUCERS FOR THEIR VOLUNTARY PARTICIPATION IN ANY8 PROGRAM OR MECHANISM DEVELOPED IN RULE PURSUANT TO THIS9 SUBSECTION (3)(a).10 (b) I F THE COMMISSIONER ADOPTS RULES PURSUANT TO11 SUBSECTION (3)(a) OF THIS SECTION, THE DEPARTMENT SHALL INCLUDE A12 SUMMARY OF THE RULES AS PART OF THE DEPARTMENT 'S REGULATORY13 AGENDA THAT IT FILES PURSUANT TO SECTION 2-7-203 (4) AND THAT IS14 INCLUDED IN THE DEPARTMENT 'S "SMART ACT" PRESENTATION THAT15 IMMEDIATELY FOLLOWS THE ADOPTION OF THE RULES .16 (4) N OTHING IN THIS SECTION REQUIRES THE AIR QUALITY 17 CONTROL COMMISSION TO ADOPT RULES FOR GREENHOUSE GAS EMISSION18 OFFSETS OR CREDIT MECHANISMS OR TO ACCEPT ANY GREENHOUSE GAS19 EMISSION OFFSETS OR CREDIT MECHANISMS AS COMPLIANCE INSTRUMENTS20 FOR EMISSION REDUCTION COMPLIANCE OR VERIFICATION .21 (5) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE22 REQUIRES:23 (a) "A NAEROBIC DIGESTER" MEANS A SEALED, OXYGEN-FREE TANK24 INTO WHICH FEEDSTOCK, SUCH AS FOOD WASTE, ANIMAL MANURE, OR25 WASTEWATER SLUDGE , IS PLACED FOR ANAEROBIC DIGESTION BY26 MICROORGANISMS. AN ANAEROBIC DIGESTER CAN BE USED AS A MEANS OF27 092 -10- WASTE DISPOSAL OR ENERGY PRODUCTION .1 (b) "D ISPROPORTIONATELY IMPACTED COMMUNITIES " HAS THE2 MEANING SET FORTH IN SECTION 24-4-109 (2)(b)(II).3 (c) "D RY DIGESTER" MEANS AN ANAEROBIC DIGESTER THAT4 PROCESSES FEEDSTOCK WITH A LOW MOISTURE CONTENT .5 SECTION 4. In Colorado Revised Statutes, 37-60-115, add (12)6 as follows:7 37-60-115. Water studies - rules - reports - definitions - repeal. 8 (12) (a) Study. (I) T HE BOARD, IN CONSULTATION WITH THE STATE 9 ENGINEER, THE COLORADO ENERGY OFFICE, AND THE INSTITUTE, SHALL10 CONDUCT A STUDY TO DETERMINE THE FEASIBILITY OF THE USE OF11 FLOATOVOLTAICS AS A MEANS OF INCREASING THE BENEFICIAL12 CONSUMPTIVE USE OF STATE WATERS BY REDUCING EVAPORATION FROM ,13 AND LOWERING TEMPERATURES OF , IRRIGATION CANALS AND RESERVOIRS14 UPON WHICH FLOATOVOLTAIC INFRASTRUCTURE IS PLACED . IN STUDYING15 THE FEASIBILITY OF USING FLOATOVOLTAICS, THE BOARD SHALL ENSURE16 THAT ANY FLOATOVOLTAIC INFRASTRUCTURE USED IN THE STUDY DOES17 NOT INTERFERE WITH INSTREAM FLOWS , AS DESCRIBED IN SECTION18 37-92-102 (3), OR WITH WATER RIGHTS OWNERS ' ABILITY TO DIVERT19 WATER FOR BENEFICIAL USE.20 (II) T HE BOARD MAY CONTRACT WITH THE INSTITUTE , A THIRD 21 PARTY, OR BOTH, TO DESIGN, CARRY OUT, AND ANALYZE THE RESULTS OF22 THE STUDY REQUIRED IN THIS SUBSECTION (12)(a). IF THE BOARD DEEMS23 APPROPRIATE, THE STUDY MUST BE CONDUCTED IN CONSIDERATION OF24 AND RELIANCE ON RELEVANT STUDIES COMPL ETED IN THE STATE AND25 NATIONALLY.26 (b) Report. O N OR BEFORE JANUARY 1, 2025, THE BOARD SHALL 27 092 -11- SUBMIT A REPORT OF THE FINDINGS AND CONCLUSIONS OF THE STUDY TO1 THE HOUSE OF REPRESENTATIVES AGRICULTURE , WATER, AND NATURAL2 RESOURCES COMMITTEE AND THE SENATE AGRICULTURE AND NATURAL3 RESOURCES COMMITTEE, OR THEIR SUCCESSOR COMMITTEES .4 (c) AS USED IN THIS SUBSECTION (12), UNLESS THE CONTEXT5 OTHERWISE REQUIRES:6 7 (I) "BENEFICIAL USE" HAS THE MEANING SET FORTH IN SECTION8 37-92-103 (4).9 (II) "DIVERT" HAS THE MEANING SET FORTH IN SECTION 37-92-10310 (7).11 (III) "FLOATOVOLTAICS" MEANS ONE OR MORE SOLAR ENERGY12 GENERATION FACILITIES PLACED OVER, NEAR, OR FLOATING ON IRRIGATION13 CANALS OR RESERVOIRS IN THE STATE.14 (IV) "I NSTITUTE" MEANS THE COLORADO WATER INSTITUTE 15 CREATED IN SECTION 23-31-801.16 (V) "WATER RIGHT" HAS THE MEANING SET FORTH IN SECTION17 37-92-103 (12).18 (VI) "WATERS OF THE STATE" HAS THE MEANING SET FORTH IN19 SECTION 37-92-103 (13).20 SECTION 5. In Colorado Revised Statutes, 39-3-122, add (3)21 and (4) as follows:22 39-3-122. Agricultural equipment used in production of23 agricultural products - CEA facilities - exemption - definition. (3) O N 24 AND AFTER JANUARY 1, 2024, BUT BEFORE JANUARY 2, 2029, PERSONAL25 PROPERTY IS EXEMPTED FROM THE LEVY AND COLLECTION OF PROPERTY26 TAX IF THE PROPERTY IS MACHINERY OR EQUIPMENT THAT IS PART OF A27 092 -12- SOLAR ENERGY GENERATING SYSTEM THAT IS USED FOR AGRIVOLTAICS ,1 AND IF THE PROPERTY:2 (a) I NCORPORATES NOVEL DESIGNS , TECHNOLOGIES, OR 3 CONFIGURATIONS THAT SIGNIFICANTLY EXPAND THE POTENTIAL FOR4 AGRICULTURAL ACTIVITIES, INCLUDING BY:5 (I) E LEVATING THE BOTTOM EDGE HEIGHT OF THE PANELS AT 6 LEAST SIX FEET ABOVE THE GROUND ;7 (II) UTILIZING TRANSLUCENT PANELS OR PANELS WITH TUBULAR8 OR OTHER INNOVATIVE PANEL GEOMETRY THAT SUPPORTS AGRIVOLTAICS;9 (III) INCORPORATING ALTERNATIVE SOLAR TRACKING ALGORITHMS10 THAT ARE TAILORED TO OPTIMIZE VEGETATIVE GROWTH ;11 (IV) I NCORPORATING EXTENDED ROW OR PANEL SPACING IN A 12 MANNER THAT ENABLES AGRICULTURAL ACTIVITIES ;13 (V) INCORPORATING MODIFIED WIRE MANAGEMENT SYSTEMS THAT14 SUPPORT LIVESTOCK, INCLUDING RAISING, LOWERING, OR BURYING15 WIRING;16 (VI) INCORPORATING INNOVATIVE PHOTOVOLTAIC RACKING17 STRUCTURES, INCLUDING TENSIONED WIRE RACKING SYSTEMS ,18 SUSPENSION-BASED SYSTEMS, OR OTHER DYNAMIC PHOTOVOLTAIC19 RACKING SYSTEMS OR ARRANGEMENTS ;20 (VII) INCORPORATING AGRICULTURAL INFRASTRUCTURE THAT IS21 TYPICALLY FOUND ON A FARM OR RANCH OPERATION, SUCH AS22 AGRICULTURAL FENCES, WATER SOURCES AND DISTRIBUTION, WATER23 TROUGHS AND TANKS, CORRALS, LIVESTOCK PENS, OR PRODUCE HANDLING24 EQUIPMENT; OR25 (VIII) INCORPORATING AGRICULTURAL STRUCTURES THAT ARE26 TYPICALLY FOUND ON AN AGRICULTURAL OPERATION , SUCH AS A TRACTOR27 092 -13- SHED, A BARN, OR STRUCTURES FOR EQUIPMENT STORAGE, PRODUCE1 WASHING, STORAGE, PROCESSING, OR CHILLING AND PACKAGING;2 (b) I S CONSTRUCTED IN A MANNER THAT MINIMIZES SOIL 3 COMPACTION UNDERNEATH AND IN BETWEEN PANELS ; AND4 (c) I S CONSTRUCTED TO INCORPORATE DESIGN STRATEGIES THAT 5 ARE PLANNED WITH THE INTENT TO MINIMIZE THE NEGATIVE6 ENVIRONMENTAL IMPACT OF PHOTOVOLTAIC ENERGY PRODUCTION7 FACILITIES ON ECOSYSTEMS, NATIVE VEGETATION, STATE AND FEDERALLY8 LISTED SPECIES, WILDLIFE MIGRATION CORRIDORS , AND THE SPECIES,9 HABITATS, AND ECOSYSTEMS OF GREATEST CONSERVATION NEED .10 (4) A S USED IN THIS SECTION, "AGRIVOLTAICS" HAS THE MEANING 11 SET FORTH IN SECTION 35-1-114 (4)(a).12 SECTION 6. 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 092 -14- AGRIVOLTAICS, AS DEFINED IN SECTION 35-1-114 (4)(a), AND FOR1 FLOATOVOLTAICS, AS DEFINED IN SECTION 37-60-115 (12)(c)(III).2 3 SECTION 7. Appropriation. (1) For the 2023-24 state fiscal4 year, $611,870 General Fund is appropriated to the department of5 agriculture for use by the commissioner's office and administrative6 services. To implement this act, the office may use this appropriation as7 follows:8 (a) $24,370 for personal services, which amount is based on an9 assumption that the office will require an additional 0.3 FTE;10 (b) $87,500 for operating expenses; and11 (c) $500,000 for agrivoltaics grants.12 13 SECTION 8. Act subject to petition - effective date. This act14 takes effect at 12:01 a.m. on the day following the expiration of the15 ninety-day period after final adjournment of the general assembly; except16 that, if a referendum petition is filed pursuant to section 1 (3) of article V17 of the state constitution against this act or an item, section, or part of this18 act within such period, then the act, item, section, or part will not take19 effect unless approved by the people at the general election to be held in20 November 2024 and, in such case, will take effect on the date of the21 official declaration of the vote thereon by the governor.22 092 -15-