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. 23-0302.01 Nicole Myers x4326 SENATE BILL 23-292 Senate Committees House Committees Business, Labor, & Technology State, Civic, Military, & Veterans Affairs Appropriations Appropriations A BILL FOR AN ACT C ONCERNING LABOR REQUIREMENTS FOR ENERGY SECTOR101 CONSTRUCTION, 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 .) Current labor requirements for public projects. In 2019, the general assembly adopted an apprenticeship utilization law (apprenticeship utilization law) that requires the general contractor for a public project that does not receive federal money, and that is in the amount of one million dollars or more, to submit, at the time a HOUSE 2nd Reading Unamended May 4, 2023 SENATE 3rd Reading Unamended May 1, 2023 SENATE Amended 2nd Reading April 28, 2023 SENATE SPONSORSHIP Hansen and Fenberg, Coleman, Danielson, Exum, Hinrichsen, Marchman, Mullica, Roberts, Rodriguez, Bridges, Buckner, Cutter, Fields, Gonzales, Jaquez Lewis, Kolker, Priola, Sullivan, Winter F. HOUSE SPONSORSHIP Duran and Bird, 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. mechanical, electrical, or plumbing subcontractor is put under contract, documentation to the contracting agency that identifies the contractors or subcontractors that will be used for specified aspects of the public project and certifies that all firms identified participate in specified apprenticeship programs. At the same time, the general assembly also adopted a prevailing wage law (prevailing wage law) that requires any contractor who is awarded a contract for a public project by an agency of government for $500,000 or more and that does not include federal money, and any subcontractors working on the public project, to pay their employees a prevailing wage at weekly intervals. The contractors and subcontractors are required to comply with prevailing wage enforcement provisions and requirements. Energy sector public works projects. The bill creates a new category of public works projects defined as "energy sector public works projects", and requires these projects to comply with the requirements of the apprenticeship utilization law and the prevailing wage law for energy sector public works projects. An "energy sector public works project" is any project that: ! Has the purpose of generating, transmitting, or distributing electricity or natural gas for the purpose of providing energy to Colorado individual consumers and businesses; or ! Has the purpose of generating or distributing electricity or natural gas for the purpose of providing energy to Colorado individual consumers and businesses from utility customer funding as approved by a cooperative electric association. With certain exceptions, the bill requires that a contract for an energy sector public works project include provisions that expressly require that all work performed under the contract comply with the state mechanical, electrical, and plumbing apprenticeship utilization law and the state prevailing wage law if the project is an electric power generation project with a nameplate generation capacity of one megawatt or higher or if the project is a project other than an electric power generation project with a total cost of one million dollars or more. All contracts with subcontractors on the project are also required to include such provisions. If the contract for an energy sector public works project does not include such provisions, the project will not be eligible to receive state funding or to receive required authorizations or approvals from the public utilities commission (PUC). The lead contractor for an energy sector public works project is required to: ! Prepare certified payroll records for workers directly employed by the contractor and any subcontractors on the project and submit the records to the public utility or other 292 -2- owner of the energy sector public works project weekly; and ! Prepare a quarterly craft labor certification that attests that the lead contractor and all subcontractors are compliant with the apprenticeship utilization law and the prevailing wage law. The public utility, cooperative electric association, independent power producer, or other owner of an energy sector public works project is required to maintain the records for all craft labor certifications and is required to either provide copies quarterly to the department of labor and employment or require the lead contractor to provide such copies. The state auditor's office, in conjunction with the PUC and the department of labor and employment, is required to conduct periodic random audits of the labor certifications for energy sector public works projects. Violations of the requirements for energy sector public works project contracts are subject to the penalties described in the apprenticeship utilization law and the prevailing wage law. For projects funded in whole or in part by the state, the requirements to comply with the apprenticeship utilization law and the prevailing wage law apply only when the total project cost is one million dollars or more and the aggregated public assistance from the state is $500,000 or more or when the project is a power generation project with a nameplate generation capacity of one megawatt or higher, and the aggregated public assistance from the state is $500,000 or more. The requirements to comply with the apprenticeship utilization law and the prevailing wage law do not apply to a project that is covered by a project labor agreement, work on an energy sector public works project performed by employees of a utility company, a utility-incentivized demand-side management or electrification program, a utility or state-funded building efficiency program, service agreements that were entered into on or before a certain date, projects that involve an electric distribution line with a specified capacity, work on an energy sector public works project put out to bid on or after January 1, 2024, that is qualified for and claims the increased federal production tax credit or investment tax credit amount, excluding any domestic content, energy community, or low-income community bonus credit, and projects that involve pipelines with a specified minimum yield strength. Project labor agreements. In lieu of compliance with the apprenticeship utilization law and the prevailing wage law, a public utility, cooperative electric association, or independent power producer may incorporate a project labor agreement requirement for an energy sector public works project. A project labor agreement is a prehire collective bargaining agreement that establishes the terms and conditions of employment of the construction workforce on an energy sector public 292 -3- works project. A project labor agreement is required to: ! Include provisions for resolving labor disputes and grievances; ! Guarantee against strikes and lockouts; ! Ensure a reliable source of trained and skilled labor; ! Further public policy objectives regarding improved employment opportunities for minorities, women, and other economically disadvantaged populations in the construction industry; ! Permit the selection of the lowest qualified responsible bidder or lowest qualified responsible offeror without regard to union or non-union status at other construction sites; and ! Bind all contractors and subcontractors on the energy sector public works project to the project labor agreement through the inclusion of appropriate bid specifications in all relevant bid documents. The PUC is prohibited from denying approval of an energy sector public works project solely because it uses a project labor agreement. The bill specifies which provisions of the apprenticeship utilization law for public projects apply to energy sector public works projects. Regarding "best value" employment metrics that the PUC is required to consider when it evaluates electric resource acquisitions and requests for certificates of public convenience and necessity for construction or expansion of generating facilities, the bill: ! Requires the PUC to promulgate rules requiring utilities, when submitting annual progress reports for an electric resource acquisition, to collect and provide to the PUC information concerning the implementation of "best value" employment metrics; ! Requires the PUC to report annually to committees of reference of the general assembly concerning the information that is reported; and ! Repeals obsolete language requiring the state auditor to conduct a performance audit. The bill adds enforcement mechanisms for the existing mechanical, electrical, and plumbing apprenticeship utilization requirements for gas demand-side management projects and beneficial electrification projects. In addition, the bill requires that projects undertaken pursuant to specified existing state laws comply with the state mechanical, electrical, and plumbing apprenticeship utilization law and the state prevailing wage law. 292 -4- Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, add part 3 to article2 92 of title 24 as follows:3 PART 34 ENERGY SECTOR PUBLIC WORKS PROJECTS5 CRAFT LABOR REQUIREMENTS6 24-92-301. Short title. T HE SHORT TITLE OF THIS PART 3 IS THE7 "C OLORADO ENERGY SECTOR PUBLIC WORKS PROJECT CRAFT LABOR8 R EQUIREMENTS ACT".9 24-92-302. Legislative declaration. (1) T HE GENERAL ASSEMBLY10 HEREBY FINDS AND DECLARES THAT :11 (a) T HE ENERGY INDUSTRY IN COLORADO IS UNDERGOING A12 HISTORIC TRANSFORMATION TO ADDRESS THREATS POSED BY CLIMATE13 CHANGE, WHICH INCLUDES EFFORTS TO DIVERSIFY CAPACITY , PROMOTE14 THE DEVELOPMENT OF RENEWABLE AND OTHER CLEAN , NON-CARBON15 GENERATION SOURCES, AND ELECTRIFY MAJOR SEGMENTS OF THE STATE 'S16 ECONOMY;17 (b) T HESE DEVELOPMENTS WILL REQUIRE MASSIVE INVESTMENTS18 OF RESOURCES FROM THE STATE AND PUBLIC UTILITY COMPANIES , WHICH19 WILL ULTIMATELY BE PAID BY RESIDENTS THROUGH FUTURE TAXES AND20 UTILITY BILLS;21 (c) T HE SAFE AND COST-EFFECTIVE DELIVERY OF THESE PROJECTS22 IS VITAL TO THE PUBLIC HEALTH AND WELFARE OF RESIDENTS AND THE23 ECONOMIC SECURITY OF THE STATE , AND CRITICAL TO ENSURE THAT24 ADEQUATE POWER IS PROVIDED TO COLORADO HOMES AND BUSINESSES ;25 (d) D EFICIENT PLANNING OF THESE RESOURCES CAN RESULT IN26 292-5- ESCALATING UTILITY BILLS AND DANGEROUS POWER OUTAGES IF POWER1 SUPPLY IS NOT MAINTAINED IN SUFFICIENT CAPACITY TO MEET FUTURE ,2 GROWING DEMAND. FOR THESE REASONS, APPROPRIATE MEASURES MUST3 BE TAKEN TO PROTECT FUTURE ENERGY INVESTMENTS , PROMOTE4 SUCCESSFUL CONSTRUCTION DELIVERY , AND PREVENT ERRORS IN THE5 PLANNING AND DELIVERY OF NEW FACILITIES .6 (e) O NE OF THE MOST CHALLENGING ASPECTS OF ENERGY FACILITY7 CONSTRUCTION IS ENSURING THAT PROJECTS ARE SUPPORTED BY CAPABLE8 CRAFT LABOR RESOURCES . IT IS ESSENTIAL FOR THESE PROJECTS TO BE9 STAFFED BY A RELIABLE AND ADEQUATE SUPPLY OF PROPERLY TRAINED10 WORKERS IN ALL APPLICABLE TRADES AND CRAFTS REQUIRED FOR THESE11 FACILITIES.12 (f) E NERGY SECTOR PUBLIC WORKS PROJECTS BUILT BY OR FOR THE13 USE OF REGULATED UTILITIES, LIKE TRADITIONAL PUBLIC PROJECTS, ARE14 OFTEN BUILT FOR THE COLLECTIVE BENEFIT OF ALL CITIZENS AND15 RESIDENTS OF COLORADO. THESE PROJECTS ARE OFTEN FUNDED THROUGH16 PUBLIC TAX DOLLARS OR THROUGH THE COLLECTIVE RESOURCES17 ACQUIRED THROUGH COLORADO UTILITIES BILLING CUSTOMERS. LIKE TAX18 DOLLARS, THESE RESOURCES ACQUIRED THROUGH UTILITY RATES S HOULD19 DEMAND A HIGHER ST ANDARD OF PUBLIC BENEFIT BACK TO THE20 CONSUMERS AND COMMUNITIES FROM WHICH THE RESOURCES WERE21 COLLECTED.22 (g) E XTENSIVE RESEARCH SHOWS THAT PREVAILING WAGE LAWS23 ARE EFFECTIVE IN ATTRACTING BETTER QUALIFIED WORKERS TO PROJECTS24 AND PROMOTING CRITICALLY NEEDED INVESTMENTS IN APPRENTICESHIP25 TRAINING REQUIRED TO ENSURE ADEQUATE CRAFT LABOR SKILL LEVELS26 AND PRODUCTIVITY. LIKEWISE, THE USE OF REGISTERED APPRENTICESHIP27 292 -6- TRAINING PROGRAMS AND PROJECT LABOR AGREEMENTS HAS BEEN1 PROVEN TO BE THE MOST EFFECTIVE STRATEGY FOR PROVIDING2 HIGH-LEVEL SKILLS TRAINING AND ENSURING NEEDED QUALIFICATION3 CREDENTIALING FOR WORKERS IN THE CONSTRUCTION INDUSTRY .4 (h) B Y PROVIDING PROJECT OWNERS , DEVELOPERS, AND5 CONTRACTORS UNIQUE AND UNPARALLELED ACCESS TO AN ADEQUATE6 SUPPLY OF WELL-TRAINED, HIGHLY SKILLED CRAFT LABOR IN AFFECTED7 PROJECT AREAS, CRAFT LABOR STANDARDS PROMOTE SUCCESSFUL8 PROJECT DELIVERY GOALS, INCLUDING QUALITY, SAFETY, TIMELINESS, AND9 COST-EFFICIENCY, BY PROVIDING EFFECTIVE QUALITY CONTROL OVER10 CRAFT LABOR SUPPLY CAPABILITIES , AS WELL AS RISK AVOIDANCE TO11 PREVENT DISRUPTIONS AND OTHER LABOR PERFORMANCE PROBLEMS12 CAUSED BY INADEQUATE CRAFT LABOR CAPABILITIES ;13 (i) F OR THESE REASONS, INCORPORATING PREVAILING WAGE14 STANDARDS AND APPRENTICESHIP REQUIREMENTS AND ENCOURAGING15 PROJECT LABOR AGREEMENTS FOR PUBLIC UTILITIES AND OTHER ENERGY16 FACILITY PLANNING AND CONSTRUCTION IS NECESSARY TO PROTECT AND17 PROMOTE THE PUBLIC'S INTEREST IN THESE PROJECTS;18 (j) B Y INCORPORATING WELL ESTABLISHED QUALITY CONTRACTING19 PROCUREMENT TOOLS , SUCH AS PREVAILING WAGES , APPRENTICESHIP20 UTILIZATION REQUIREMENTS, AND PROJECT LABOR AGREEMENTS INTO OUR21 ENERGY RESOURCE PLANNING , THE STATE OF COLORADO WILL HAVE THE22 CAPABILITIES TO BETTER PROTECT ITS ENERGY INVESTMENTS , IMPROVE23 CONSTRUCTION PROJECT DELIVERY IN THE ENERGY SECTOR , FULLY24 DOCUMENT AND EVALUATE THE DIRECTIVES SET FORTH IN SECTION25 40-2-129, AND CREATE A CLEAR SET OF STANDARDS FOR ENFORCEMENT TO26 ACHIEVE THE LAW'S INTENT FOR THE BENEFIT OF COLORADO WORKERS27 292 -7- AND THE COMMUNITIES WHERE THEY LIVE ;1 (k) U SE OF THESE QUALITY CONTRACTING TOOLS IS ALREADY2 INCORPORATED INTO COLORADO'S TRADITIONAL PUBLIC PROCUREMENT3 LAW AS PREVAILING WAGE AND APPRENTICESHIP POLICIES ADOPTED IN4 SECTIONS 24-92-115 (7) AND PART 2 OF THIS ARTICLE 92. IN ADDITION,5 PROJECT LABOR AGREEMENTS HAVE BEEN SUCCESSFULLY USED IN6 C OLORADO IN THE PAST FOR PROJECTS IN THE ENERGY SECTOR AND THE7 BROADER PRIVATE SECTOR CONSTRUCTION INDUSTRY . THESE8 AGREEMENTS HAVE ALSO BEEN UPHELD BY THE COURTS , FOR EXAMPLE, IN9 B LDG. & CONSTR. TRADES COUNCIL V. ASSOCIATED BUILDERS &10 C ONTRACTORS OF MASS./R.I., INC., 507 U.S. 230, 231 (1993), DUE TO THEIR11 ABILITY TO HELP SECURE RELIABLE CRAFT LABOR STAFFING AND PROMOTE12 TIMELY PROJECT DELIVERY.13 (l) D UE TO THEIR BENEFITS IN PROMOTING SUCCESSFUL PROJECT14 DELIVERY IN PROJECTS ASSISTED BY FEDERAL GRANTS AND TAX CREDITS ,15 THE FEDERAL GOVERNMENT IS STRONGLY ENCOURAGING THE USE OF16 THESE QUALITY CONTRACTING TOOLS GENERALLY , AND ESPECIALLY IN17 THE ENERGY SECTOR, WHERE MAJOR FEDERAL ASSISTANCE PROGRAMS18 UNDER THE RECENT FEDERAL "INFLATION REDUCTION ACT OF 2022", PUB.19 L. 117-169, ARE PROVIDING APPROXIMATELY THREE HUNDRED SEVENTY20 BILLION DOLLARS IN FUNDING TO PROMOTE CLEAN ENERGY SOURCES21 ACROSS THE COUNTRY.22 (2) T HE GENERAL ASSEMBLY FURTHER FINDS AND DECLARES THAT23 BECAUSE COST-EFFECTIVE, SAFE, AND EFFICIENT GENERATION ,24 TRANSMISSION, AND DISTRIBUTION SYSTEMS IN THE ENERGY SECTOR ARE25 VITAL TO THE STATE'S ECONOMY AND THE PUBLIC WELFARE AND SAFETY ,26 QUALITY CONTROL AND RISK AVOIDANCE MEASURES ARE NECESSARY TO27 292 -8- ENSURE THAT THE CONSTRUCTION OF PROJECTS NECESSARY FOR THESE1 SYSTEMS ARE ADEQUATELY STAFFED BY PROPERLY TRAINED AND2 QUALIFIED CRAFT LABOR PERSONNEL .3 24-92-303. Definitions. A S USED IN THIS PART 3, UNLESS THE4 CONTEXT OTHERWISE REQUIRES :5 (1) "C ONSTRUCTION" MEANS THE CONSTRUCTION, ALTERATION, OR6 REPAIR OF AN ENERGY SECTOR PUBLIC WORKS PROJECT , CONSISTENT WITH7 AND INCLUDING THE SAME LIMITATIONS AS THE DEFINITION OF8 CONSTRUCTION AS ESTABLISHED IN SECTION 45(b)(7)(a) OF THE FEDERAL9 "I NTERNAL REVENUE CODE OF 1986", AS AMENDED, AND AS DESCRIBED10 IN ALL RELATED OFFICIAL GUIDANCE FROM THE FEDERAL INTERNAL11 REVENUE SERVICE AND THE UNITED STATES DEPARTMENT OF LABOR12 IMPLEMENTING THE APPLICABLE SECTIONS OF THE FEDERAL "INFLATION13 R EDUCTION ACT".14 (2) "C OOPERATIVE ELECTRIC ASSOCIATION " HAS THE SAME15 MEANING AS SET FORTH IN SECTION 40-9.5-102 (1).16 (3) "C RAFT LABOR" MEANS EMPLOYEES WHO ARE ENGAGED IN THE17 CONSTRUCTION OF AN ENERGY SECTOR PUBLIC WORKS PROJECT ,18 INCLUDING ALL TRADES, CRAFTS, AND OCCUPATIONS, AND WHO ARE PAID19 HOURLY.20 (4) "C RAFT LABOR CERTIFICATION" MEANS ALL DOCUMENTATION21 AND CERTIFICATION OF PAYROLL REQUIRED FOR AN ENERGY SECTOR22 PUBLIC WORKS PROJECT IN ACCORDANCE WITH THE REQUIREMENTS OF23 SECTION 24-92-115 (7) AND PART 2 OF THIS ARTICLE 92.24 (5) (a) "E NERGY SECTOR PUBLIC WORKS PROJECT " MEANS ANY25 PROJECT IN THE STATE THAT:26 (I) H AS THE PURPOSE OF GENERATING , TRANSMITTING, OR27 292 -9- DISTRIBUTING ELECTRICITY OR NATURAL GAS TO PROVIDE ENERGY TO1 C OLORADO INDIVIDUAL CONSUMERS AND BUSINESSES , IS BUILT BY OR FOR2 A PUBLIC UTILITY, INCLUDING ANY PROJECT FOR WHICH ENERGY IS3 PURCHASED THROUGH A POWER PURCHASER OR SIMILAR AGREEMENT , AND4 IS FUNDED IN WHOLE OR IN PART BY:5 (A) T HE STATE, THROUGH DIRECT FUNDING , LOANS, LOAN6 GUARANTEES, LAND TRANSFERS, TAX ASSISTANCE, INCLUDING TAX7 CREDITS, DEDUCTIONS, OR INCENTIVES, OR OTHER ASSISTANCE ALLOCATED8 OR APPROPRIATED BY THE STATE; OR9 (B) U TILITY CUSTOMER FUNDING AS APPROVED IN ANY10 PROCEEDING CONDUCTED BY THE PUBLIC UTILITIES COMMISSION AS PART11 OF AN ELECTRIC RESOURCE ACQUISITION OR REQUESTS FOR CERTIFICATES12 OF CONVENIENCE AND NECESSITY FOR CONSTRUCTION OR EXPANSION OF13 A PROJECT, INCLUDING BUT NOT LIMITED TO POLLUTION CONTROL OR FUEL14 CONVERSION UPGRADES AND CONVERSION OF EXISTING COAL -FIRED15 PLANTS TO NATURAL GAS PLANTS ; OR16 (II) H AS THE PURPOSE OF GENERATING OR DISTRIBUTING17 ELECTRICITY OR NATURAL GAS FOR THE PURPOSES OF PROVIDING ENERGY18 TO COLORADO INDIVIDUAL CONSUMERS AND BUSINESSES FROM UTILITY19 CUSTOMER FUNDING AS APPROVED BY A COOPERATIVE ELECTRIC20 ASSOCIATION.21 (b) "E NERGY SECTOR PUBLIC WORKS PROJECT " INCLUDES THE 22 FOLLOWING PROJECT TYPES, SO LONG AS THEY SATISFY THE CRITERIA IN23 SUBSECTION (5)(a)(I) OR (5)(a)(II) OF THIS SECTION:24 (I) P OWER GENERATION WITH A NAMEPLATE GENERATION25 CAPACITY OF ONE MEGAWATT OR HIGHER , INCLUDING GENERATION26 SOURCED FROM WIND, SOLAR, GEOTHERMAL, HYDROGEN, NUCLEAR, OR27 292 -10- BIOENERGY, OR ANY PROJECT THAT GENERATES ELECTRICITY FROM THE1 COMBUSTION OF OIL, GAS, OR OTHER FOSSIL FUELS OR AN ENERGY2 STORAGE SYSTEM AS DEFINED BY SECTION 40-2-202 WITH AN ENERGY3 RATING OF ONE MEGAWATT OF POWER CAPACITY OR FOUR MEGAWATT4 HOURS OF USEABLE ENERGY CAPACITY OR HIGHER ; AND5 (II) O THER PROJECTS WITH A TOTAL PROJECT COST OF ONE MILLION6 DOLLARS OR MORE THAT INCLUDE :7 (A) P OLLUTION CONTROLS;8 (B) U TILITY GAS DISTRIBUTION;9 (C) E LECTRIC TRANSMISSION PROJECTS;10 (D) G EOTHERMAL SYSTEMS THAT ARE USED TO PROVIDE HEAT OR11 HEATED WATER OR THAT OPERATE AS THERMAL SYSTEMS OR THERMAL12 NETWORKS AS DEFINED IN LAW;13 (E) E LECTRIC VEHICLE CHARGING INFRASTRUCTURE 14 INSTALLATIONS;15 (F) H YDROGEN-RELATED INFRASTRUCTURE CONSTRUCTION16 PROJECTS;17 (G) A NY PROJECT THAT TRANSPORTS OR STORES CARBON DIOXIDE18 CAPTURED FROM POWER GENERATION ; AND19 (H) A NY OTHER CONSTRUCTION PROJECTS COVERED BY THIS PART20 3.21 (6) "F EDERAL PREVAILING WAGE AND APPRENTICESHIP22 REQUIREMENTS" MEANS THE REQUIREMENTS UNDER :23 (a) S ECTIONS 45(b)(7) AND (8) OF TITLE 26 OF THE UNITED STATES24 C ODE, WHETHER APPLICABLE DIRECTLY OR UNDER A PROVISION OF THE25 FEDERAL "INTERNAL REVENUE CODE OF 1986", AS AMENDED, THAT26 APPLIES SUCH SECTIONS OF THE UNITED STATES CODE; OR27 292 -11- (b) SECTIONS 48(a)(10) AND (11) OF TITLE 26 OF THE UNITED1 S TATES CODE, WHETHER APPLICABLE DIRECTLY OR UNDER A PROVISION2 OF THE FEDERAL "INTERNAL REVENUE CODE OF 1986", AS AMENDED THAT3 APPLIES SUCH SECTIONS OF THE UNITED STATES CODE.4 (7) "F EDERAL "INFLATION REDUCTION ACT"" MEANS THE FEDERAL5 "I NFLATION REDUCTION ACT OF 2022", UNITED STATES CODE, TITLE 26,6 INCLUDING BUT NOT LIMITED TO SECTIONS 30C, 45, 45B, 45L, 45Q, 45U,7 45V, 45X, 45Y, 45Z, 48, 48C, 48E, AND 179D, AND ASSOCIATED8 IMPLEMENTING RULES AND GUI DANCE PROMULGATED BY THE UNITED9 S TATES DEPARTMENT OF THE TREASURY AND THE UNITED STATES10 INTERNAL REVENUE SERVICE, AS THE STATUTE AND IMPLEMENTING RULES11 AND GUIDANCE MAY BE AMENDED FROM TIME TO TIME .12 (8) "L EAD CONTRACTOR" MEANS A GENERAL CONTRACTOR ,13 CONSTRUCTION MANAGER , DEVELOPER, DESIGN BUILDER, OR OTHER PARTY14 THAT IS PRIMARILY RESPONSIBLE TO A PUBLIC UTILITY OR INDEPENDENT15 POWER PRODUCER FOR PERFORMING CONSTRUCTION UNDER A CONTRACT16 FOR AN ENERGY SECTOR PUBLIC WORKS PROJECT .17 (9) "P ROJECT LABOR AGREEMENT " MEANS A PREHIRE COLLECTIVE18 BARGAINING AGREEMENT BETWEEN A LEAD CONTRACTOR AND19 CONSTRUCTION LABOR ORGANIZATIONS , INCLUDING BUT NOT LIMITED TO20 THE COLORADO BUILDING AND CONSTRUCTION TRADES COUNCIL AND ITS21 AFFILIATES OR A GROUP OF LABOR UNIONS COVERING THE AFFECTED22 TRADES NECESSARY TO PERFORM WORK ON A PROJECT , THAT ESTABLISHES23 THE TERMS AND CONDITIONS OF EMPLOYMENT OF THE CONSTRUCTION24 WORKFORCE ON AN ENERGY SECTOR PUBLIC WORKS PROJECT . A PROJECT25 LABOR AGREEMENT MUST INCLUDE PROVISIONS THAT :26 (a) S ET FORTH EFFECTIVE, IMMEDIATE, AND MUTUALLY BINDING27 292 -12- PROCEDURES FOR RESOLVING JURISDICTIONAL LABOR DISPUTES AND1 GRIEVANCES ARISING BEFORE THE COMPLETION OF WORK ;2 (b) C ONTAIN GUARANTEES AGAINST STRIKES , LOCKOUTS, OR3 SIMILAR ACTIONS;4 (c) E NSURE A RELIABLE SOURCE OF TRAINED , SKILLED, AND5 EXPERIENCED CONSTRUCTION CRAFT LABOR ;6 (d) F URTHER PUBLIC POLICY OBJECTIVES REGARDING IMPROVED7 EMPLOYMENT OPPORTUNITIES FOR MINORITIES , WOMEN, OR OTHER8 ECONOMICALLY DISADVANTAGED POPULATIONS IN THE CONSTRUCTION9 INDUSTRY, INCLUDING PERSONS FROM DISPROPORTIONATELY IMPACTED10 COMMUNITIES, TO THE EXTENT PERMITTED BY STATE AND FEDERAL LAW ;11 (e) P ERMIT THE SELECTION OF THE LOWEST QUALIFIED12 RESPONSIBLE BIDDER OR LOWEST QUALIFIED RESPONSIBLE OFFEROR13 WITHOUT REGARD TO UNION OR NON -UNION STATUS AT OTHER14 CONSTRUCTION SITES;15 (f) B IND ALL CONTRACTORS AND SUBCONTRACTORS ON THE16 ENERGY SECTOR PUBLIC WORKS PROJECT TO THE PROJECT LABOR17 AGREEMENT THROUGH THE INCLUSION OF APPROPRIATE BID18 SPECIFICATIONS IN ALL RELEVANT CONTRACT DOCUMENTS ; AND19 (g) I NCLUDE OTHER TERMS AS THE PARTIES DEEM APPROPRIATE .20 (10) "P UBLIC UTILITY" HAS THE SAME MEANING AS SET FORTH IN21 SECTION 40-1-103.22 24-92-304. Energy sector public works projects - craft labor23 employment - training - wage requirements. (1) (a) E XCEPT AS24 OTHERWISE PROVIDED IN SUBSECTIONS (1)(b) AND (1)(c) OF THIS SECTION,25 A CONTRACT BETWEEN PUBLIC UTILITIES , COOPERATIVE ELECTRIC26 ASSOCIATIONS, OR INDEPENDENT POWER PRODUCERS AND LEAD27 292 -13- CONTRACTORS FOR AN ENERGY SECTOR PUBLIC WORKS PROJECT MUST1 INCLUDE PROVISIONS EXPRESSLY REQUIRING THAT ALL WORK PERFORMED2 UNDER THE CONTRACT COMPLY WITH THE REQUIREMENTS OF SECTION3 24-92-115 (7) AND THE REQUIREMENTS OF PART 2 OF THIS ARTICLE 92 IF4 THE PROJECT IS AN ELECTRIC POWER GENERATION PROJECT WITH A5 NAMEPLATE GENERATION CAPACITY OF ONE MEGAWATT OF HIGHER OR IF6 THE PROJECT IS A PROJECT SPECIFIED IN SUBSECTION 24-92-303 (5)(b)(II)7 WITH A TOTAL PROJECT COST OF ONE MILLION DOLLARS OR MORE . THESE8 REQUIREMENTS CONSTITUTE MATERIAL TERMS OF SUCH CONTRACTS .9 (b) (I) F OR ENERGY SECTOR PUBLIC WORKS PROJECTS FUNDED 10 PURSUANT TO SECTION 24-92-303 (5)(a)(I)(A), THE REQUIREMENTS OF11 THIS PART 3 APPLY ONLY WHEN THE PROJECT IS A POWER GENERATION12 PROJECT WITH A NAMEPLATE GENERATION CAPACITY OF ONE MEGAWATT13 OR HIGHER OR AN ENERGY STORAGE SYSTEM AS DEFINED BY SECTION14 40-2-202 WITH AN ENERGY RATING OF ONE MEGAWATT OF POWER 15 CAPACITY OR FOUR MEGAWATT HOURS OF USEABLE ENERGY CAPACITY OR16 HIGHER AND THE AGGREGATED PUBLIC ASSISTANCE FROM THE STATE IS17 FIVE HUNDRED THOUSAND DOLLARS OR MORE .18 (II) F OR ENERGY SECTOR PUBLIC WORKS PROJECTS UNDER 19 24-92-303(5)(b)(II), THE REQUIREMENTS OF THIS PART 3 APPLY ONLY 20 WHEN THE TOTAL PROJECT COST IS ONE MILLION DOLLARS OR MORE , AND21 THE AGGREGATED PUBLIC ASSISTANCE FROM THE STATE , FUNDING FROM22 A PUBLIC UTILITY, OR FUNDING FROM A COOPERATIVE ELECTRIC23 ASSOCIATION IS FIVE HUNDRED THOUSAND DOLLARS OR MORE .24 (c) T HE REQUIREMENTS OF THIS PART 3 DO NOT APPLY TO:25 (I) A PROJECT THAT IS COVERED BY A PROJECT LABOR AGREEMENT ;26 (II) W ORK ON AN ENERGY SECTOR PUBLIC WORKS PROJECT27 292 -14- PERFORMED BY THE EMPLOYEES OF A UTILITY COMPANY ;1 (III) S O LONG AS COMPLIANCE WITH ANY APPLICABLE FEDERAL2 "I NFLATION REDUCTION ACT" QUALIFICATION REQUIREMENTS IS A3 MATERIAL TERM OF THE AGREEMENT WITH A PUBLIC UTILITY ,4 COOPERATIVE ELECTRIC ASSOCIATION , INDEPENDENT POWER PRODUCER ,5 OR THE STATE, WORK ON AN ENERGY SECTOR PUBLIC WORKS PROJECT PUT6 OUT TO BID ON OR AFTER JANUARY 1, 2024, THAT IS QUALIFIED FOR AND7 CLAIMS THE INCREASED FEDERAL PRODUCTION TAX CREDIT OR8 INVESTMENT TAX CREDIT AMOUNT , EXCLUDING ANY DOMESTIC CONTENT ,9 ENERGY COMMUNITY , OR LOW-INCOME COMMUNITY BONUS CREDIT , AS A10 RESULT OF:11 (A) SATISFYING THE PREVAILING WAGE AND APPRENTICESHIP12 REQUIREMENTS UNDER THE PROVISIONS OF THE FEDERAL "INFLATION13 R EDUCTION ACT"; OR14 (B) A CHIEVING THE START OF CONSTRUCTION PRIOR TO JANUARY15 29, 2023, PURSUANT TO THE PRINCIPLES OUTLINED IN THE FEDERAL16 INTERNAL REVENUE SERVICE GUIDANCE AND THE UNITED STATES17 DEPARTMENT OF LABOR GUIDANCE RELATED TO THE FEDERAL "INFLATION18 R EDUCTION ACT" AS AMENDED OR SUPPLEMENTED FROM TIME TO TIME ;19 (IV) A UTILITY-INCENTIVIZED DEMAND-SIDE MANAGEMENT OR20 ELECTRIFICATION PROGRAM PURSUANT TO SECTION 40-3.2-105.5 OR21 40-3.2-105.6;22 (V) U TILITY OR STATE-FUNDED BUILDING ENERGY EFFICIENCY23 PROGRAMS;24 (VI) S ERVICE AGREEMENTS THAT WERE ENTERED INTO BY A25 PUBLIC UTILITY, INDEPENDENT POWER PRODUCER , OR COOPERATIVE26 ELECTRIC ASSOCIATION ON OR BEFORE MARCH 1, 2023; EXCEPT THAT27 292 -15- UPON RENEWAL OR ISSUANCE OF A NEW REQUEST FOR PROPOSALS , THE1 SERVICE AGREEMENT MUST COME INTO COMPLIANCE WITH THE2 REQUIREMENTS OF THIS SECTION;3 (VII) P ROJECTS THAT INVOLVE AN ELECTRIC DISTRIBUTION LINE4 WITH A CAPACITY OF 69KV OR LESS; AND5 (VIII) P ROJECTS THAT INVOLVE PIPELINES WITH A SPECIFIED6 MINIMUM YIELD STRENGTH LESS THAN THIRTY PERCENT .7 (2) U NLESS THE CONTRACTUAL REQUIREMENTS SPECIFIED IN8 SUBSECTION (1) OF THIS SECTION ARE IN PLACE, AN AFFECTED PROJECT9 SHALL NOT BE ELIGIBLE TO:10 (a) R ECEIVE FUNDING FROM THE STATE THROUGH GENERAL FUND11 APPROPRIATIONS, TAX CREDITS, TAX DEDUCTIONS, LAND TRANSFERS, OR12 OTHER FUNDING OR ASSISTANCE PROVIDED BY THE GENERAL ASSEMBLY OR13 A GOVERNMENT AGENCY ; OR14 (b) R ECEIVE ANY APPROVALS OR AUTHORIZATIONS FROM THE15 PUBLIC UTILITIES COMMISSION, INCLUDING APPROVALS FOR UTILITY16 FUNDING OR FOR COMMENCEMENT OF THE PROJECT , INCLUDING A17 CERTIFICATE OF PUBLIC CONVENIENCE .18 (3) T HE LEAD CONTRACTOR ENGAGED TO PERFORM CONSTRUCTION19 SERVICES FOR AN ENERGY SECTOR PUBLIC WORKS PROJECT MUST REQUIRE20 ALL SUBCONTRACTORS USED ON THE PROJECT TO COMPLY WITH SECTION21 24-92-115 (7) AND PART 2 OF THIS ARTICLE 92 BY ENSURING THAT SUCH22 REQUIREMENTS ARE STIPULATED IN ALL SUBCONTRACTS . LEAD23 CONTRACTORS MUST TAKE ALL REASONABLY NECESSARY STEPS TO24 ENSURE COMPLIANCE BY MONITORING SUBCONTRACTORS .25 (4) T HE PUBLIC UTILITIES COMMISSION SHALL NOT FIND AN26 ENERGY SECTOR PUBLIC WORKS PROJECT TO BE IN COMPLIANCE WITH27 292 -16- SECTION 40-2-129 UNLESS THE CONSTRUCTION CONTRACT FOR THE1 PROJECT INCLUDES PROVISIONS EXPRESSLY REQUIRING THAT ALL WORK2 PERFORMED UNDER THE CONTRACT COMPLY WITH THE REQUIREMENTS OF3 SECTION 24-92-115 (7) AND PART 2 OF THIS ARTICLE 92. COMPLIANCE4 WITH THIS SUBSECTION (4) DOES NOT PREVENT THE COMMISSION FROM5 CONSIDERING ALL "BEST VALUE" EMPLOYMENT METRICS AS DEFINED IN6 SECTION 40-2-129, INCLUDING THOSE METRICS THAT ARE NOT DIRECTLY7 RELATED TO THE PROCUREMENT OF CRAFT LABOR AND APPRENTICESHIP8 TRAINING ON AN ENERGY SECTOR PUBLIC WORKS PROJECT .9 (5) C ONSISTENT WITH SECTION 24-92-203 (4), BIDDERS ON ENERGY10 SECTOR PUBLIC WORKS PROJECTS SHALL NOT ARTIFICIALLY DIVIDE THE11 OVERALL GENERATION CAPACITY OR OVERALL PROJECT COST OF AN12 ENERGY SECTOR PUBLIC WORKS PROJECT TO DELIBERATELY AVOID THE13 REQUIREMENTS TO COMPLY WITH SECTION 24-92-115 (7) AND PART 2 OF14 THIS ARTICLE 92. THE PUBLIC UTILITIES COMMISSION, THE STATE, A PUBLIC15 UTILITY, OR A COOPERATIVE ELECTRIC ASSOCIATION MAY STILL REQUIRE16 COMPLIANCE WITH PREVAILING WAGE AND APPRENTICESHIP UTILIZATION17 REQUIREMENTS IF THEY DETERMINE THAT A BIDDER HAS ARTIFICIALLY18 DIVIDED A PROJECT WITH THE INTENT OF AVOIDING THE REQUIREMENT TO19 COMPLY WITH THOSE SECTIONS.20 24-92-305. Energy sector public works projects - record21 keeping - reporting - craft labor certification - sanctions - compliance22 with best value employment metrics. (1) T HE LEAD CONTRACTOR FOR23 AN ENERGY SECTOR PUBLIC WORKS PROJECT SHALL PREPARE CERTIFIED24 PAYROLL RECORDS FOR CRAFT WORKERS DIRECTLY EMPLOYED BY THE25 CONTRACTOR, OBTAIN CERTIFIED PAYROLL RECORDS FROM ALL26 CONTRACTORS AND SUBCONTRACTORS ON THE PROJECTS , AND SUBMIT THE27 292 -17- RECORDS TO THE PUBLIC UTILITY OR OTHER OWNER OF THE ENERGY1 SECTOR PUBLIC WORKS PROJECT ON A WEEKLY BASIS . EACH LEAD2 CONTRACTOR AND SUBCONTRACTOR SHALL CERTIFY , UNDER THE PENALTY3 OF PERJURY, THAT THE RECORDS PROVIDE COMPLETE AND ACCURATE4 INFORMATION FOR ALL CRAFT WORKERS EMPLOYED ON THE PROJECT .5 (2) T HE LEAD CONTRACTOR FOR AN ENERGY SECTOR PUBLIC6 WORKS PROJECT SHALL PREPARE A CRAFT LABOR CERTIFICATION ON A7 QUARTERLY BASIS FOR WORK THAT IS BEING PERFORMED UNDER AFFECTED8 PROJECTS.9 (3) A CRAFT LABOR CERTIFICATION MUST INCLUDE THE10 FOLLOWING:11 (a) A SWORN ATTESTATION, UNDER THE PENALTY OF PERJURY ,12 THAT THE LEAD CONTRACTOR IS FULLY COMPLIANT WITH ALL13 EMPLOYMENT, TRAINING, AND WAGE REQUIREMENTS OF SECTION14 24-92-115 (7) AND PART 2 OF THIS ARTICLE 92; AND15 (b) A N IDENTICAL, EQUIVALENT CRAFT LABOR CERTIFICATION16 EXECUTED IN THE SAME MANNER BY ALL SUBCONTRACTORS17 PARTICIPATING IN THE ENERGY SECTOR PUBLIC WORKS PROJECT .18 (4) T HE PUBLIC UTILITY, COOPERATIVE ELECTRIC ASSOCIATION ,19 INDEPENDENT POWER PRODUCER , OR OTHER OWNER OF AN ENERGY20 SECTOR PUBLIC WORKS PROJECT IS RESPONSIBLE FOR MAINTENANCE OF21 RECORDS FOR ALL CRAFT LABOR CERTIFICATIONS . THE PUBLIC UTILITY, 22 COOPERATIVE ELECTRIC ASSOCIATION , INDEPENDENT POWER PRODUCER ,23 OR OTHER OWNER OF AN ENERGY SECTOR PUBLIC WORKS PROJECT SHALL24 EITHER PROVIDE COPIES QUARTERLY OR REQUIRE BY CONTRACT THAT THE25 LEAD CONTRACTOR PROVIDE COPIES QUARTERLY , TO THE DEPARTMENT OF26 LABOR AND EMPLOYMENT FOR REVIEW AND OVERSIGHT PURPOSES .27 292 -18- (5) NO LATER THAN JANUARY 1, 2029, AND AT LEAST FIVE YEARS1 THEREAFTER, THE STATE AUDITOR'S OFFICE SHALL CONDUCT AN AUDIT OF2 THE COMMISSION'S APPROVAL OF ENERGY SECTOR PUBLIC WORKS3 PROJECTS. THE PURPOSE OF THE AUDIT IS TO ESTABLISH OVERSIGHT AND4 ACCOUNTABILITY FOR COMPLIANCE WITH SECTION 40-2-129, AND TO5 DETERMINE WHETHER A SAMPLE OF PROJECTS THAT HAVE BEEN APPROVED6 BY THE COMMISSION ARE FULLY COMPLIANT WITH ALL EMPLOYMENT ,7 TRAINING, WAGE, AND APPRENTICESHIP REQUIREMENTS OF SECTION8 24-92-115 (7) AND PART 2 OF THIS ARTICLE 92. THE AUDIT MUST 9 CONSIDER INFORMATION AND RECORDS RELATED TO THE CRAFT LABOR10 CERTIFICATIONS THAT ARE COLLECTED AND MAINTAINED BY THE11 DEPARTMENT OF LABOR AND EMPLOYMENT . THE DEPARTMENT OF LABOR12 AND EMPLOYMENT SHALL PROVIDE ANY INFORMATION NEEDED TO13 PERFORM THE AUDIT AS REQUESTED BY THE STATE AUDITOR 'S OFFICE.14 (a) T HE AUDIT PROCESS MUST SELECT A SAMPLE OF PROJECTS FOR 15 REVIEW AND ENSURE THAT THE SCOPE OF THE AUDIT ENCOMPASSES THE16 BROAD TYPES OF ENERGY SECTOR PUBLIC WORKS PROJECTS .17 (b) U PON RELEASE OF THE AUDIT REPORT BY THE LEGISLATIVE 18 AUDIT COMMITTEE, THE STATE AUDITOR MUST MAKE THE RESULTS OF THE19 AUDIT AVAILABLE TO THE PUBLIC.20 (c) A FTER CONDUCTING TWO AUDITS UNDER THIS SUBSECTION (5), 21 THE STATE AUDITOR MAY CONDUCT ADDITIONAL AUDITS IN THE STATE22 AUDITOR'S DISCRETION.23 (6) V IOLATIONS OF THE REQUIREMENTS SPECIFIED IN THIS SECTION,24 INCLUDING WAGE AND HOUR VIOLATIONS , VIOLATIONS OF APPRENTICESHIP25 REQUIREMENTS , FALSIFICATION OF RECORDS , OR WILLFUL26 NON-COMPLIANCE, ARE SUBJECT TO THE PENALTIES AND ENFORCEMENT27 292 -19- RIGHTS AND REMEDIES DESCRIBED IN SECTIONS 24-92-115 (3), 24-92-209,1 24-92-210, AND 24-109-105.2 (7) I F AN ENERGY SECTOR PUBLIC WORKS PROJECT USES FEDERAL3 FUNDING THAT REQUIRES COMPLIANCE WITH THE FEDERAL "DAVIS-BACON4 A CT", 40 U.S.C. SEC. 3141 ET SEQ., OR RELATED STATUTES, THE OWNER5 OF THE ENERGY SECTOR PUBLIC WORKS PROJECT SHALL :6 (a) N OTIFY THE PUBLIC UTILITIES COMMISSION OF THEIR INTENT TO7 USE FEDERAL FUNDING TO FUND , IN WHOLE OR IN PART, THE ENERGY8 SECTOR PUBLIC WORKS PROJECT; AND9 (b) R EQUIRE THE LEAD CONTRACTORS AND ALL OTHER10 CONTRACTORS AND SUBCONTRACTORS WORKING ON THE ENERGY SECTOR11 PUBLIC WORKS PROJECT TO PAY APPLICABLE FEDERALLY STIPULATED12 WAGE AND BENEFIT RATES AND PROVIDE CERTIFIED PAYROLL REPORTS TO13 THE PUBLIC UTILITIES COMMISSION IN THE SAME MANNER REQUIRED BY14 SUBSECTION (1) OF THIS SECTION.15 24-92-306. Energy sector public works projects - use of project16 labor agreements. (1) A PUBLIC UTILITY, COOPERATIVE ELECTRIC17 ASSOCIATION, OR INDEPENDENT POWER PRODUCER IS AUTHORIZED TO18 INCORPORATE A PROJECT LABOR AGREEMENT REQUIREMENT FOR AN19 ENERGY SECTOR PUBLIC WORKS PROJECT IF THE PROJECT LABOR20 AGREEMENT WILL PROMOTE SUCCESSFUL PROJECT DELIVERY BY SECURING21 A SKILLED LABOR FORCE FOR THE PROJECT AND IF IT WILL PROMOTE22 COST-EFFICIENCY, SAFETY, QUALITY, AND TIMELY COMPLETION OF THE23 PROJECT.24 (2) I F ALL CONSTRUCTION WORK ON AN ENERGY SECTOR PUBLIC25 WORKS PROJECT IS COVERED BY A PROJECT LABOR AGREEMENT , THE26 REQUIREMENTS OF SECTIONS 24-92-304 AND 24-92-305 DO NOT APPLY TO27 292 -20- THE PROJECT.1 (3) T HE PUBLIC UTILITIES COMMISSION SHALL NOT DENY2 APPROVAL OF AN ENERGY SECTOR PUBLIC WORKS PROJECT SOLELY3 BECAUSE THE PROJECT OWNER VOLUNTARILY ELECTS TO USE A PROJECT4 LABOR AGREEMENT FOR THE PROJECT . THE PUBLIC UTILITIES COMMISSION5 MUST STATE ITS REASONS FOR DENIAL IN WRITING WHEN IT ISSUES6 THE DECISION.7 24-92-307. Energy sector public works projects - existing8 authority of the public utilities commission. N OTHING IN THIS SECTION9 CONTRAVENES THE STATUTORY AUTHORITY OF THE PUBLIC UTILITIES10 COMMISSION TO CONSIDER OVERALL PROJECT COSTS , THE IMPACT OF A11 PROJECT ON UTILITY CUSTOMERS , OR THE IMPACT OF PROJECT COST ON12 UTILITY RATES.13 SECTION 2. In Colorado Revised Statutes, 24-38.5-118, add14 (11) as follows:15 24-38.5-118. Geothermal energy grant program - creation -16 procedures - fund - report - definitions - repeal. (11) Grants awarded17 to energy sector public works projects - requirements. A NY PROJECT18 THAT IS FUNDED IN WHOLE OR IN PART BY A GRANT AWARDED PURSUANT19 TO THIS SECTION AND THAT IS AN ENERGY SECTOR PUBLIC WORKS PROJECT ,20 AS DEFINED IN SECTION 24-92-303 (5), MUST COMPLY WITH THE21 APPLICABLE REQUIREMENTS OF THE "COLORADO ENERGY SECTOR PUBLIC22 W ORKS PROJECT CRAFT LABOR REQUIREMENTS ACT", PART 3 OF ARTICLE23 92 OF THIS TITLE 24.24 SECTION 3. In Colorado Revised Statutes, 24-92-115, add (7)25 as follows:26 24-92-115. Apprenticeship utilization requirements -27 292 -21- mechanical, electrical, and plumbing contracts - public projects -1 definition. (7) (a) F OR AN ENERGY SECTOR PUBLIC WORKS PROJECT , AS2 DEFINED IN SECTION 24-92-303 (5), THE GENERAL CONTRACTOR OR3 OTHER FIRM TO WHICH THE CONTRACT IS AWARDED SHALL :4 (I) I DENTIFY, AT THE TIME THEY ARE PUT UNDER CONTRACT , ALL5 CONTRACTORS OR SUBCONTRACTORS REQUIRED FOR THE PROJECT , OTHER6 THAN THOSE USED FOR ALL MECHANICAL , SHEET METAL, FIRE7 SUPPRESSION, SPRINKLER FITTING, ELECTRICAL, PLUMBING WORK, AND8 CONSTRUCTION CRAFT LABOR ; AND9 (II) C ERTIFY THAT ALL CONTRACTORS OR SUBCONTRACTORS10 IDENTIFIED PARTICIPATE IN APPRENTICESHIP TRAINING PROGRAMS11 REGISTERED WITH THE UNITED STATES DEPARTMENT OF LABOR 'S12 EMPLOYMENT AND TRAINING ADMINISTRATION OR STATE APPRENTICESHIP13 AGENCIES RECOGNIZED BY THE UNITED STATES DEPARTMENT OF LABOR'S14 EMPLOYMENT AND TRAINING ADMINISTRATION AND HAVE A PROVEN15 RECORD OF GRADUATING APPRENTICES FOR AT LEAST THREE OF THE PAST16 FIVE YEARS.17 (b) S UBSECTIONS (1)(a) TO (1)(c) OF THIS SECTION APPLY TO18 MECHANICAL, ELECTRICAL, AND PLUMBING CONTRACTORS AND19 SUBCONTRACTORS SUBJECT TO THIS SUBSECTION (7).20 (c) C ONTRACTORS AND SUBCONTRACTORS THAT ARE SUBJECT TO21 THE REQUIREMENTS OF THIS SUBSECTION (7) AND THAT PROVIDE22 CONSTRUCTION CRAFT LABOR MUST CERTIFY THAT ALL FIRMS IDENTIFIED23 PARTICIPATE IN APPRENTICESHIP TRAINING PROGRAMS THAT ARE24 REGISTERED WITH THE UNITED STATES DEPARTMENT OF LABOR 'S25 EMPLOYMENT AND TRAINING ADMINISTRATION OR A STATE26 APPRENTICESHIP AGENCY RECOGNIZED BY THE UNITED STATES27 292 -22- DEPARTMENT OF LABOR'S EMPLOYMENT AND TRAINING ADMINISTRATION1 AND THAT:2 (I) S ATISFY TO THE GRADUATION REQUIREMENTS OF SUBSECTIONS3 (1)(a)(II)(A) TO(1)(a)(II)(C) OF THIS SECTION AT THE TIME THE CONTRACT 4 OR SUBCONTRACT WAS EXECUTED ; AND5 (II) P ROVIDE DOCUMENTATION REQUIRED IN SUBSECTION6 (1)(a)(III) OF THIS SECTION.7 (d) U PON EVALUATION OF THE SUBMITTED BIDS, A PUBLIC UTILITY,8 INDEPENDENT POWER PRODUCER , OR COOPERATIVE ELECTRIC9 ASSOCIATION MAY WAIVE THE REQUIREMENTS OF THIS SECTION IF IT10 DETERMINES THAT THERE IS SUBSTANTIAL EVIDENCE THAT THERE ARE NO11 RESPONSIVE ELIGIBLE CONTRACTORS OR SUBCONTRACTORS FOR ANY12 TRADES AVAILABLE TO FULFILL THE APPRENTICESHIP REQUIREMENTS FOR13 ONE OR MORE OF THE TRADES SUBJECT TO THIS SECTION . ANY PARTY14 EXERCISING A WAIVER PURSUANT TO THIS SUBSECTION (7)(d) SHALL15 DISCLOSE THE WAIVER ON A PUBLICLY ACCESSIBLE WEBSITE , INCLUDING16 THE CONTRACTOR OR SUBCONTRACTOR TO WHICH THE WAIVER APPLIES17 AND THE SPECIFIC RATIONALE FOR THE WAIVER .18 (e) I N THE EVENT OF AN EXTREME WEATHER EVENT , A WILDFIRE,19 OR AN EMERGENCY DECLARED BY THE STATE OF COLORADO OR THE20 FEDERAL GOVERNMENT , A PUBLIC UTILITY OR COOPERATIVE ELECTRIC21 ASSOCIATION MAY WAIVE THE REQUIREMENTS OF THIS SUBSECTION (7)22 WHEN PERFORMING REPAIR WORK TO RESTORE ELECTRIC SERVICE TO23 CUSTOMERS OR ASSOCIATION MEMBERS WHEN IT CAN REASONABLY24 DEMONSTRATE THAT:25 (I) T HE CAPACITY NEEDED TO RESTORE POWER EXCEEDS THE26 PUBLIC UTILITY'S OR COOPERATIVE ELECTRIC ASSOCIATION 'S AVAILABLE27 292 -23- CAPACITY FOR EMERGENCY REPAIRS THROUGH ITS EMPLOYEES , STANDBY1 CONTRACTOR CAPACITY, OR APPLICABLE MUTUAL AID AGREEMENTS ; AND 2 (II) A GOOD FAITH EFFORT TO IDENTIFY CONTRACTORS AND3 SUBCONTRACTORS THAT CAN COMPLY WITH THIS SUBSECTION (7) WAS4 MADE AND NO ELIGIBLE CONTRACTORS OR SUBCONTRACTORS WERE5 AVAILABLE FOR THE TIME FRAME FOR WHICH THE EMERGENCY CAPACITY6 WAS NEEDED.7 SECTION 4. In Colorado Revised Statutes, 40-2-123, add (5) as8 follows:9 40-2-123. Energy technologies - consideration by commission10 - incentives - demonstration projects - definitions - repeal. (5) A NY11 PROJECT APPROVED PURSUANT TO THIS SECTION THAT IS AN ENERGY12 SECTOR PUBLIC WORKS PROJECT , AS DEFINED IN SECTION 24-92-303 (5),13 MUST COMPLY WITH THE APPLICABLE REQUIREMENTS OF THE "COLORADO14 E NERGY SECTOR PUBLIC WORKS PROJECT CRAFT LABOR REQUIREMENTS15 A CT", PART 3 OF ARTICLE 92 OF TITLE 24.16 SECTION 5. In Colorado Revised Statutes, 40-2-127, add (3.7)17 as follows:18 40-2-127. Community energy funds - community solar19 gardens - definitions - rules - legislative declaration - repeal.20 (3.7) Energy sector public works projects. I F THE DEVELOPMENT OF A21 COMMUNITY SOLAR GARDEN IS AN ENERGY SECTOR PUBLIC WORKS22 PROJECT, AS DEFINED IN SECTION 24-92-303 (5), THEN THE PROJECT MUST23 COMPLY WITH THE APPLICABLE REQUIREMENTS OF THE "COLORADO24 E NERGY SECTOR PUBLIC WORKS PROJECT CRAFT LABOR REQUIREMENTS25 A CT", PART 3 OF ARTICLE 92 OF TITLE 24.26 SECTION 6. In Colorado Revised Statutes, 40-2-129, amend27 292 -24- (1)(a); repeal (4); and add (5) and (6) as follows:1 40-2-129. New resource acquisitions - factors in determination2 - local employment - "best value" employment metrics - performance3 audit. (1) (a) (I) When evaluating electric resource acquisitions and4 requests for a certificate of convenience and necessity for construction or5 expansion of generating facilities, including but not limited to pollution6 control or fuel conversion upgrades and conversion of existing coal-fired7 plants to natural gas plants, the commission shall consider, in all8 decisions involved in electric resource acquisition processes, best value9 regarding employment of Colorado labor, as defined in section 8-17-10110 (2)(a), and positive impacts on the long-term economic viability of11 Colorado communities. To this end, the commission shall require utilities12 to obtain and provide to the commission the following information13 regarding "best value" employment metrics:14 (A) The availability of training programs, including training15 through apprenticeship programs registered with the United States16 department of labor's office of apprenticeship or by state apprenticeship17 councils AGENCIES recognized by that office FOR ALL APPRENTICEABLE18 TRADES REQUIRED TO EFFECTIVELY DELIVER THE PROJECT TO19 COMPLETION;20 (B) Employment of Colorado labor as compared to importation of21 out-of-state workers;22 (C) T HE ABILITY OF THE PROJECT TO EMPLOY WORKERS FROM23 TRADITIONALLY UNDERSERVED COMMUNITIES OR DISPROPORTIONATELY24 IMPACTED COMMUNITIES AS DEFINED IN SECTION 24-4-109 (2)(b)(II);25 (D) H OW THE PROJECT SUPPORTS DOMESTIC MANUFACTURING26 THROUGH THE UTILIZATION OF COLORADO AND DOMESTICALLY PRODUCED27 292 -25- MATERIALS, INCLUDING CONSIDERATION OF THE POTENTIAL FOR1 DOMESTICALLY MANUFACTURED MATERIALS BEING UNAVAILABLE IN THE2 MARKETPLACE;3 (E) Long-term career opportunities; and4 (F) Industry-standard wages, health care, and pension benefits.5 (II) When a utility proposes to construct new facilities of its own,6 the utility shall supply similar information to the commission.7 (4) (a) The state auditor shall conduct or cause to be conducted a8 performance audit of the commission's implementation of the "best value"9 employment metrics requirements of this section, including review of:10 (I) The projects subject to subsection (1)(a) of this section that11 have been approved in the previous ten years;12 (II) Whether the work done used contractors that met the criteria13 specified in this section;14 (III) Any shortfalls in enforcement capacity or implementation by15 the commission;16 (IV) Current enforcement procedures for investor-owned utilities,17 independent power producers, and wholesale generation and transmission18 electric cooperatives; and19 (V) Whether and how delayed rule-making proceedings have20 prevented the "best value" employment metrics requirements of this21 section from being implemented.22 (b) The governor's office, the commission, and commission staff23 shall cooperate with stakeholders and the state auditor in conducting the24 audit and making recommendations for reforms of, or potential25 alternatives to, the implementation and enforcement of "best value"26 employment metrics.27 292 -26- (c) Upon completion of a performance audit, the state auditor shall1 submit a written report to the legislative audit committee, together with2 any findings and recommendations.3 (5) T HE COMMISSION SHALL PROMULGATE RULES REQUIRING4 UTILITIES, WHEN SUBMITTING ANNUAL PROGRESS REPORTS FOR AN5 ELECTRIC RESOURCE ACQUISITION , TO COLLECT AND PROVIDE TO THE6 COMMISSION INFORMATION CONCERNING THE IMPLEMENTATION OF "BEST7 VALUE" EMPLOYMENT METRICS, AS DESCRIBED IN SUBSECTION (1)(a) OF8 THIS SECTION, WHICH METRICS WERE APPROVED BY THE COMMISSION9 DURING THE ACQUISITION PLANNING PROCESS AND WHICH ACQUISITIONS10 ARE UNDER CONSTRUCTION BY EITHER THE UTILITY OR BY OTHERS .11 (6) (a) O N OR BEFORE DECEMBER 31, 2024, AND ON OR BEFORE12 D ECEMBER 31 OF EACH YEAR THEREAFTER , THE COMMISSION SHALL13 SUBMIT A REPORT TO THE ENERGY AND ENVIRONMENT COMMITTEE OF THE14 HOUSE OF REPRESENTATIVES AND THE TRANSPORTATION AND ENERGY15 COMMITTEE OF THE SENATE , OR ANY SUCCESSOR COMMITTEES . THE16 REPORT MUST SUMMARIZE THE INFORMATION CONCERNING "BEST VALUE"17 EMPLOYMENT METRICS THAT IS REPORTED TO THE COMMISSION BY18 UTILITIES PURSUANT TO SUBSECTIONS (1)(a) AND (5) OF THIS SECTION AND19 INDICATE THE MANNER IN WHICH THE COMMISSION CONSIDERED THE20 INFORMATION.21 (b) N OTWITHSTANDING THE LIMITATION DESCRIBED IN SECTION22 24-1-136 (11)(a)(I), THE REPORTING REQUIREMENT DESCRIBED IN23 SUBSECTION (6)(a) OF THIS SECTION CONTINUES IN PERPETUITY.24 SECTION 7. In Colorado Revised Statutes, 40-3.2-105.5, add25 (5), (6), and (7) as follows:26 40-3.2-105.5. Labor standards for gas DSM projects.27 292 -27- (5) (a) FOR A PLUMBING, MECHANICAL, OR ELECTRICAL PROJECT IN A NEW1 OR EXISTING INDUSTRIAL, COMMERCIAL, OR MULTIFAMILY RESIDENTIAL2 BUILDING THAT CONTAINS TWENTY THOUSAND SQUARE FEET OR MORE OF3 CONDITIONED FLOOR SPACE AND FOR WHICH A REBATE IS TO BE PROVIDED4 DIRECTLY TO THE BUILDING OWNER AS PART OF A GAS DSM PROGRAM, A5 UTILITY SHALL NOT ISSUE ANY REBATES OR INCENTIVES UNLESS THE LEAD6 GENERAL CONTRACTOR PERFORMING THE WORK FOR THE PROJECT SIGNS7 A NOTARIZED AFFIDAVIT UNDER PENALTY OF PERJURY STATING THAT ALL8 OF THE REQUIREMENTS OF THIS SECTION HAVE BEEN MET AND PROVIDES9 THE SIGNED AFFIDAVIT TO THE SPONSORING UTILITY . THE AFFIDAVIT10 MUST:11 (I) I DENTIFY THE CONTRACTORS OR SUBCONTRACTORS THAT WILL12 BE USED FOR ALL MECHANICAL , SHEET METAL, FIRE SUPPRESSION,13 SPRINKLER FITTING, ELECTRICAL, AND PLUMBING WORK, REQUIRED ON THE14 PROJECT;15 (II) C ERTIFY THAT ALL FIRMS IDENTIFIED PARTICIPATE IN16 APPRENTICESHIP PROGRAMS REGISTERED WITH THE UNITED STATES17 DEPARTMENT OF LABOR'S EMPLOYMENT AND TRAINING ADMINISTRATION18 OR STATE APPRENTICESHIP AGENCIES RECOGNIZED BY THE UNITED STATES19 DEPARTMENT OF LABOR AND HAVE A PROVEN RECORD OF GRADUATING20 APPRENTICES AS FOLLOWS:21 (A) B EGINNING JULY 1, 2021, THROUGH JUNE 30, 2026, A22 MINIMUM OF FIFTEEN PERCENT OF ITS APPRENTICES FOR AT LEAST THREE23 OF THE PAST FIVE YEARS;24 (B) B EGINNING JULY 1, 2026, THROUGH JUNE 30, 2031, A25 MINIMUM OF TWENTY PERCENT OF APPRENTICES FOR AT LEAST THREE OF26 THE PAST FIVE YEARS; AND27 292 -28- (C) BEGINNING JULY 1, 2031, AND EACH YEAR THEREAFTER , A1 MINIMUM OF THIRTY PERCENT OF APPRENTICES FOR AT LEAST THREE OF2 THE PAST FIVE YEARS; AND3 (III) S UPPLY SUPPORTING DOCUMENTATION FROM THE UNITED4 S TATES DEPARTMENT OF LABOR 'S OFFICE OF APPRENTICESHIP OR STATE5 APPRENTICESHIP AGENCY VERIFYING THE INFORMATION PROVIDED IN THE6 CERTIFICATION SPECIFIED IN SUBSECTION (1)(a)(II) OF THIS SECTION.7 (b) T HE UTILITY MUST MAINTAIN A DATABASE OF THE8 INFORMATION CONTAINED IN THE AFFIDAVIT FOR EACH PROJECT AWARDED9 A REBATE OR INCENTIVE.10 (c) T HIS SUBSECTION (5) DOES NOT APPLY TO A GAS DSM 11 PROGRAM THAT IS LIMITED TO IN-UNIT WORK IN A MULTIFAMILY BUILDING,12 AS UNDERTAKEN BY THE OWNER OR TENANT OF THE MULTIFAMILY13 BUILDING OR UNIT.14 (6) (a) T O ENSURE COMPLIANCE WITH THE REQUIREMENTS OF15 SUBSECTION (5) OF THIS SECTION, THE GENERAL CONTRACTOR OR OTHER16 FIRM TO WHICH THE CONTRACT IS AWARDED MUST AGREE TO PROVIDE17 ADDITIONAL DOCUMENTATION TO THE PARTICIPATING UTILITY OFFERING18 THE REBATE OR INCENTIVE REGARDING THE REQUIREMENTS FOR AFFECTED19 APPRENTICESHIP TRAINING PROGRAMS SPECIFIED IN SUBSECTION (5)(a) OF20 THIS SECTION.21 (b) I F THE UTILITY OFFERING THE REBATE OR INCENTIVE22 DETERMINES THAT A MECHANICAL , ELECTRICAL, OR PLUMBING23 SUBCONTRACTOR HAS WILLFULLY FALSIFIED DOCUMENTATION OR24 WILLFULLY MISREPRESENTED THEIR QUALIFICATIONS AS REQUIRED TO25 COMPLY WITH THIS SECTION IN THE CONTRACT, THE UTILITY SHALL DIRECT26 THE CONTRACTOR TO TERMINATE THE SUBCONTRACTOR CONTRACT27 292 -29- IMMEDIATELY AND THE SUBCONTRACTOR SHALL IMMEDIATELY BE1 REMOVED FROM THE PUBLIC PROJECT . THE UTILITY MAY ALSO DEBAR THE2 OFFENDING SUBCONTRACTORS FOR FUTURE PARTICIPATION IN REBATES OR3 INCENTIVE PROGRAMS ESTABLISHED UNDER THIS SECTION .4 (c) I F AFTER ISSUING A REBATE OR INCENTIVE PURSUANT TO THIS5 SECTION, A UTILITY DETERMINES THAT A CONTRACTOR OR6 SUBCONTRACTOR HAS WILLFULLY VIOLATED ANY REQUIREMENT OF THIS7 SECTION, THE UTILITY MAY DEMAND A FULL REF UND OF THE REBATE OR8 INCENTIVE WITH REASONABLE PENALTIES AND INTEREST AND MAY PURSUE9 ANY REMEDY PROVIDED BY LAW .10 (d) A UTILITY MUST MAINTAIN A LIST OF CONTRACTORS AND11 SUBCONTRACTORS THAT HAVE WILLFULLY FALSIFIED DOCUMENTATION OR12 WILLFULLY MISREPRESENTED THEIR QUALIFICATIONS OR THAT ARE13 DEBARRED FROM RECEIVING FUTURE REBATES OR INCENTIVES AND MAKE14 THAT LIST AVAILABLE TO THEIR CUSTOMERS ON THEIR WEBSITE .15 (7) (a) T HE UTILITY THAT OFFERS THE REBATE OR INCENTIVE 16 PURSUANT TO THIS SECTION MUST ESTABLISH PERIODIC AUDITS OF THE17 QUALIFYING REBATES THAT REPRESENT THE HIGHEST TWO PERCENT OF18 REBATES ISSUED BY DOLLAR AMOUNT AT LEAST EVERY THREE YEARS TO19 ENSURE THAT THE CONTRACTORS OR SUBCONTRACTORS MAINTAIN20 COMPLIANCE WITH THIS SECTION.21 (b) I F THE AUDIT DETERMINES THAT THERE WERE WILLFUL22 VIOLATIONS OF THIS SECTION, THE UTILITY MAY DEMAND A FULL REFUND23 OF THE REBATE OR INCENTIVE WITH REASONABLE PENALTIES AND24 INTEREST AND MAY PURSUE ANY REMEDY PROVIDED BY LAW .25 SECTION 8. In Colorado Revised Statutes, 40-3.2-105.6, add26 (5), (6), and (7) as follows:27 292 -30- 40-3.2-105.6. Labor standards for beneficial electrification1 projects. (5) (a) F OR A BENEFICIAL ELECTRIFICATION PROJECT IN A NEW2 OR EXISTING INDUSTRIAL, COMMERCIAL, OR MULTIFAMILY RESIDENTIAL3 BUILDING THAT CONTAINS TWENTY THOUSAND SQUARE FEET OR MORE OF4 CONDITIONED FLOOR SPACE AND FOR WHICH A REBATE IS TO BE PROVIDED5 DIRECTLY TO THE BUILDING OWNER AS PART OF THE BENEFICIAL 6 ELECTRIFICATION PROGRAM, A UTILITY SHALL NOT ISSUE ANY REBATES OR7 INCENTIVES UNLESS THE LEAD GENERAL CONTRACTOR PERFORMING THE8 WORK FOR THE PROJECT SIGNS A NOTARIZED AFFIDAVIT UNDER PENALTY9 OF PERJURY STATING THAT ALL OF THE REQUIREMENTS OF THIS SECTION10 HAVE BEEN MET AND PROVIDES THE SIGNED AFFIDAVIT TO THE11 SPONSORING UTILITY. THE AFFIDAVIT MUST:12 (I) I DENTIFY THE CONTRACTORS OR SUBCONTRACTORS THAT WILL13 BE USED FOR ALL MECHANICAL , SHEET METAL, FIRE SUPPRESSION,14 SPRINKLER FITTING, ELECTRICAL, AND PLUMBING WORK REQUIRED ON THE15 PROJECT;16 (II) C ERTIFY THAT ALL FIRMS IDENTIFIED PARTICIPATE IN17 APPRENTICESHIP PROGRAMS REGISTERED WITH THE UNITED STATES18 DEPARTMENT OF LABOR'S EMPLOYMENT AND TRAINING ADMINISTRATION19 OR STATE APPRENTICESHIP AGENCIES RECOGNIZED BY THE UNITED STATES20 DEPARTMENT OF LABOR AND HAVE A PROVEN RECORD OF GRADUATING21 APPRENTICES AS FOLLOWS:22 (A) B EGINNING JULY 1, 2021, THROUGH JUNE 30, 2026, A23 MINIMUM OF FIFTEEN PERCENT OF ITS APPRENTICES FOR AT LEAST THREE24 OF THE PAST FIVE YEARS;25 (B) B EGINNING JULY 1, 2026, THROUGH JUNE 30, 2031, A26 MINIMUM OF TWENTY PERCENT OF APPRENTICES FOR AT LEAST THREE OF27 292 -31- THE PAST FIVE YEARS; AND1 (C) B EGINNING JULY 1, 2031, AND EACH YEAR THEREAFTER , A2 MINIMUM OF THIRTY PERCENT OF APPRENTICES FOR AT LEAST THREE OF3 THE PAST FIVE YEARS; AND4 (III) S UPPLY SUPPORTING DOCUMENTATION FROM THE UNITED5 S TATES DEPARTMENT OF LABOR 'S OFFICE OF APPRENTICESHIP OR STATE6 APPRENTICESHIP AGENCY VERIFYING THE INFORMATION PROVIDED IN THE7 CERTIFICATION SPECIFIED IN SUBSECTION (1)(a)(II) OF THIS SECTION.8 (b) T HE UTILITY MUST MAINTAIN A DATABASE OF THE9 INFORMATION CONTAINED IN THE AFFIDAVIT FOR EACH PROJECT AWARDED10 A REBATE OR INCENTIVE.11 (c) T HIS SUBSECTION (5) DOES NOT APPLY TO A BENEFICIAL 12 ELECTRIFICATION PROJECT THAT IS LIMITED TO IN -UNIT WORK IN A13 MULTIFAMILY BUILDING, AS UNDERTAKEN BY THE OWNER OR TENANT OF14 THE MULTIFAMILY BUILDING OR UNIT.15 (6) (a) T O ENSURE COMPLIANCE WITH THE REQUIREMENTS OF16 SUBSECTION (5) OF THIS SECTION, THE GENERAL CONTRACTOR OR OTHER17 FIRM TO WHICH THE CONTRACT IS AWARDED MUST AGREE TO PROVIDE18 ADDITIONAL DOCUMENTATION TO THE PARTICIPATING UTILITY OFFERING19 THE REBATE OR INCENTIVE REGARDING THE REQUIREMENTS FOR AFFECTED20 APPRENTICESHIP TRAINING PROGRAMS SPECIFIED IN SUBSECTION (5)(a) OF21 THIS SECTION.22 (b) I F THE UTILITY OFFERING THE REBATE OR INCENTIVE23 DETERMINES THAT A MECHANICAL , ELECTRICAL, OR PLUMBING24 SUBCONTRACTOR HAS WILLFULLY FALSIFIED DOCUMENTATION OR25 WILLFULLY MISREPRESENTED THEIR QUALIFICATIONS AS REQUIRED TO26 COMPLY WITH THIS SECTION IN THE CONTRACT, THE UTILITY SHALL DIRECT27 292 -32- THE CONTRACTOR TO TERMINATE THE SUBCONTRACTOR CONTRACT1 IMMEDIATELY AND THE SUBCONTRACTOR MUST IMMEDIATELY BE2 REMOVED FROM THE PUBLIC PROJECT . THE UTILITY MAY DEBAR THE3 OFFENDING SUBCONTRACTORS FOR FUTURE PARTICIPATION IN REBATE OR4 INCENTIVE PROGRAMS ESTABLISHED UNDER THIS SECTION .5 (c) I F AFTER ISSUING A REBATE OR INCENTIVE PURSUANT TO THIS6 SECTION, A UTILITY DETERMINES THAT A CONTRACTOR OR7 SUBCONTRACTOR HAS WILLFULLY VIOLATED ANY REQUIREMENT OF THIS8 SECTION, THE UTILITY MAY DEMAND A FULL REF UND OF THE REBATE OR9 INCENTIVE WITH REASONABLE PENALTIES AND INTEREST AND MAY PURSUE10 ANY REMEDY PROVIDED BY LAW .11 (d) A UTILITY SHALL MAINTAIN A LIST OF CONTRACTORS AND12 SUBCONTRACTORS THAT HAVE WILLFULLY FALSIFIED DOCUMENTATION OR13 WILLFULLY MISREPRESENTED THEIR QUALIFICATIONS OR THAT ARE14 DEBARRED FROM RECEIVING FUTURE REBATES OR INCENTIVES AND MAKE15 THAT LIST AVAILABLE TO THEIR CUSTOMERS ON THEIR WEBSITE .16 (7) (a) T HE UTILITY THAT OFFERS THE REBATE OR INCENTIVE 17 PURSUANT TO THIS SECTION MUST ESTABLISH PERIODIC AUDITS OF THE18 QUALIFYING REBATES THAT REPRESENT THE HIGHEST TWO PERCENT OF19 REBATES ISSUED BY DOLLAR AMOUNT AT LEAST EVERY THREE YEARS TO20 ENSURE THAT THE CONTRACTORS OR SUBCONTRACTORS MAINTAIN21 COMPLIANCE WITH THIS SECTION.22 (b) I F THE AUDIT DETERMINES THAT THERE WERE WILLFUL23 VIOLATIONS OF THIS SECTION, THE UTILITY MAY DEMAND A FULL REFUND24 OF THE REBATE OR INCENTIVE WITH REASONABLE PENALTIES AND25 INTEREST AND MAY PURSUE ANY REMEDY PROVIDED BY LAW .26 SECTION 9. In Colorado Revised Statutes, 40-3.2-108, add27 292 -33- (8)(e) as follows:1 40-3.2-108. Clean heat targets - legislative declaration -2 definitions - plans - rules - reports. (8) Employment and utility3 workforce. (e) I F A PROJECT IN CONNECTION WITH A CLEAN HEAT PLAN ,4 IS AN ENERGY SECTOR PUBLIC WORKS PROJECT , AS DEFINED IN SECTION5 24-92-303 (5), THE PROJECT MUST COMPLY WITH THE APPLICABLE6 REQUIREMENTS OF THE "COLORADO ENERGY SECTOR PUBLIC WORKS7 P ROJECT CRAFT LABOR REQUIREMENTS ACT", PART 3 OF ARTICLE 92 OF8 TITLE 24.9 SECTION 10. In Colorado Revised Statutes, 40-5-107, add10 (3)(c) as follows:11 40-5-107. Electric vehicle programs - definitions - repeal.12 (3) (c) A N ELECTRIC VEHICLE INFRASTRUCTURE PROJECT THAT IS AN13 ENERGY SECTOR PUBLIC WORKS PROJECT , AS DEFINED IN SECTION14 24-92-303 (5), MUST COMPLY WITH THE APPLICABLE REQUIREMENTS OF15 THE "COLORADO ENERGY SECTOR PUBLIC WORKS PROJECT CRAFT LABOR16 R EQUIREMENTS ACT", PART 3 OF ARTICLE 92 OF TITLE 24.17 SECTION 11. In Colorado Revised Statutes, 40-42-107, add (4)18 as follows:19 40-42-107. Labor standards - apprenticeship - supervision.20 (4) A NY PROJECT FOR THE CONSTRUCTION, EXPANSION, OR MAINTENANCE21 OF FACILITIES UNDERTAKEN IN COLORADO PURSUANT TO THIS ARTICLE 4222 THAT IS AN ENERGY SECTOR PUBLIC WORKS PROJECT , AS DEFINED IN23 SECTION 24-92-303 (5), MUST COMPLY WITH THE APPLICABLE24 REQUIREMENTS OF THE "COLORADO ENERGY SECTOR PUBLIC WORKS25 P ROJECT CRAFT LABOR REQUIREMENTS ACT", PART 3 OF ARTICLE 92 OF26 TITLE 24.27 292 -34- SECTION 12. Appropriation. For the 2023-24 state fiscal year,1 $108,401 is appropriated to the department of labor and employment for2 use by the division of labor standards and statistics. This appropriation is3 from the general fund and is based on an assumption that the division will4 require an additional 1.0 FTE. To implement this act, the division may5 use this appropriation for program costs related to labor standards.6 SECTION 13. Act subject to petition - effective date -7 applicability. (1) This act takes effect January 1, 2024; except that, if a8 referendum petition is filed pursuant to section 1 (3) of article V of the9 state constitution against this act or an item, section, or part of this act10 within the ninety-day period after final adjournment of the general11 assembly, then the act, item, section, or part will not take effect unless12 approved by the people at the general election to be held in November13 2024 and, in such case, will take effect on the date of the official14 declaration of the vote thereon by the governor.15 (2) This act only applies to any energy sector public works project16 for which a public utility or cooperative electric association invitation for17 bids or proposals is issued on or after January 1, 2024.18 292 -35-