SENATE BILL 23-292
BY SENATOR(S) Hansen and Fenberg, Coleman, Danielson, Exum,
Hinrichsen, Marchman, Mullica, Roberts, Rodriguez, Bridges, Buckner,
Cutter, Fields, Gonzales, Jaquez Lewis, Kolker, Priola, Sullivan, Winter F.;
also REPRESENTATIVE(S) Duran and Bird, Amabile, Bacon, Brown,
deGruy Kennedy, Dickson, Epps, Froelich, Garcia, Gonzales-Gutierrez,
Hamrick, Herod, Jodeh, Joseph, Lieder, Lindsay, Martinez, McCormick,
McLachlan, Michaelson Jenet, Ricks, Sharbini, Sirota, Snyder, Titone,
Vigil, Weissman, Woodrow, McCluskie.
C
ONCERNING LABOR REQUIREMENTS FOR ENERGY SECTOR CONSTRUCTION ,
AND, IN CONNECTION THEREWITH, MAKING AN APPROPRIATION.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, add part 3 to article 92
of title 24 as follows:
PART 3
ENERGY SECTOR PUBLIC WORKS PROJECTS
CRAFT LABOR REQUIREMENTS
24-92-301. Short title. T
HE SHORT TITLE OF THIS PART 3 IS THE
"COLORADO ENERGY SECTOR PUBLIC WORKS PROJECT CRAFT LABOR
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. REQUIREMENTS ACT".
24-92-302. Legislative declaration. (1) T
HE GENERAL ASSEMBLY
HEREBY FINDS AND DECLARES THAT
:
(a) T
HE ENERGY INDUSTRY IN COLORADO IS UNDERGOING A HISTORIC
TRANSFORMATION TO ADDRESS THREATS POSED BY CLIMATE CHANGE
,
WHICH INCLUDES EFFORTS TO DIVERSIFY CAPACITY , PROMOTE THE
DEVELOPMENT OF RENEWABLE AND OTHER CLEAN
, NON-CARBON
GENERATION SOURCES
, AND ELECTRIFY MAJOR SEGMENTS OF THE STATE 'S
ECONOMY
;
(b) T
HESE DEVELOPMENTS WILL REQUIRE MASSIVE INVESTMENTS OF
RESOURCES FROM THE STATE AND PUBLIC UTILITY COMPANIES
, WHICH WILL
ULTIMATELY BE PAID BY RESIDENTS THROUGH FUTURE TAXES AND UTILITY
BILLS
;
(c) T
HE SAFE AND COST-EFFECTIVE DELIVERY OF THESE PROJECTS IS
VITAL TO THE PUBLIC HEALTH AND WELFARE OF RESIDENTS AND THE
ECONOMIC SECURITY OF THE STATE
, AND CRITICAL TO ENSURE THAT
ADEQUATE POWER IS PROVIDED TO
COLORADO HOMES AND BUSINESSES ;
(d) D
EFICIENT PLANNING OF THESE RESOURCES CAN RESULT IN
ESCALATING UTILITY BILLS AND DANGEROUS POWER OUTAGES IF POWER
SUPPLY IS NOT MAINTAINED IN SUFFICIENT CAPACITY TO MEET FUTURE
,
GROWING DEMAND. FOR THESE REASONS, APPROPRIATE MEASURES MUST BE
TAKEN TO PROTECT FUTURE ENERGY INVESTMENTS
, PROMOTE SUCCESSFUL
CONSTRUCTION DELIVERY
, AND PREVENT ERRORS IN THE PLANNING AND
DELIVERY OF NEW FACILITIES
.
(e) O
NE OF THE MOST CHALLENGING ASPECTS OF ENERGY FACILITY
CONSTRUCTION IS ENSURING THAT PROJECTS ARE SUPPORTED BY CAPABLE
CRAFT LABOR RESOURCES
. IT IS ESSENTIAL FOR THESE PROJECTS TO BE
STAFFED BY A RELIABLE AND ADEQUATE SUPPLY OF PROPERLY TRAINED
WORKERS IN ALL APPLICABLE TRADES AND CRAFTS REQUIRED FOR THESE
FACILITIES
.
(f) E
NERGY SECTOR PUBLIC WORKS PROJECTS BUILT BY OR FOR THE
USE OF REGULATED UTILITIES
, LIKE TRADITIONAL PUBLIC PROJECTS, ARE
OFTEN BUILT FOR THE COLLECTIVE BENEFIT OF ALL CITIZENS AND RESIDENTS
PAGE 2-SENATE BILL 23-292 OF COLORADO. THESE PROJECTS ARE OFTEN FUNDED THROUGH PUBLIC TAX
DOLLARS OR THROUGH THE COLLECTIVE RESOURCES ACQUIRED THROUGH
COLORADO UTILITIES BILLING CUSTOMERS . LIKE TAX DOLLARS, THESE
RESOURCES ACQUIRED THROUGH UTILITY RATES SHOULD DEMAND A HIGHER
STANDARD OF PUBLIC BENEFIT BACK TO THE CONSUMERS AND COMMUNITIES
FROM WHICH THE RESOURCES WERE COLLECTED
.
(g) E
XTENSIVE RESEARCH SHOWS THAT PREVAILING WAGE LAWS ARE
EFFECTIVE IN ATTRACTING BETTER QUALIFIED WORKERS TO PROJECTS AND
PROMOTING CRITICALLY NEEDED INVESTMENTS IN APPRENTICESHIP TRAINING
REQUIRED TO ENSURE ADEQUATE CRAFT LABOR SKILL LEVELS AND
PRODUCTIVITY
. LIKEWISE, THE USE OF REGISTERED APPRENTICESHIP
TRAINING PROGRAMS AND PROJECT LABO R AGREEMENTS HAS BEEN PROVEN
TO BE THE MOST EFFECTIVE STRATEGY FOR PROVIDING HIGH
-LEVEL SKILLS
TRAINING AND ENSURING NEEDED QUALIFICATION CREDENTIALING FOR
WORKERS IN THE CONSTRUCTION INDUSTRY
.
(h) B
Y PROVIDING PROJECT OWNERS , DEVELOPERS, AND
CONTRACTORS UNIQUE AND UNPARALLELED ACCESS TO AN ADEQUATE
SUPPLY OF WELL
-TRAINED, HIGHLY SKILLED CRAFT LABOR IN AFFECTED
PROJECT AREAS
, CRAFT LABOR STANDARDS PROMOTE SUCCESSFUL PROJECT
DELIVERY GOALS
, INCLUDING QUALITY , SAFETY, TIMELINESS, AND
COST
-EFFICIENCY, BY PROVIDING EFFECTIVE QUALITY CONTROL OVER CRAFT
LABOR SUPPLY CAPABILITIES
, AS WELL AS RISK AVOIDANCE TO PREVENT
DISRUPTIONS AND OTHER LABOR PERFORMANCE PROBLEMS CAUSED BY
INADEQUATE CRAFT LABOR CAPABILITIES
;
(i) F
OR THESE REASONS, INCORPORATING PREVAILING WAGE
STANDARDS AND APPRENTICESHIP REQUIREMENTS AND ENCOURAGING
PROJECT LABOR AGREEMENTS FOR PUBLIC UTILITIES AND OTHER ENERGY
FACILITY PLANNING AND CONSTRUCTION IS NECESSARY TO PROTECT AND
PROMOTE THE PUBLIC
'S INTEREST IN THESE PROJECTS;
(j) B
Y INCORPORATING WELL ESTABLISHED QUALITY CONTRACTING
PROCUREMENT TOOLS
, SUCH AS PREVAILING WAGES , APPRENTICESHIP
UTILIZATION REQUIREMENTS
, AND PROJECT LABOR AGREEMENTS INTO OUR
ENERGY RESOURCE PLANNING
, THE STATE OF COLORADO WILL HAVE THE
CAPABILITIES TO BETTER PROTECT ITS ENERGY INVESTMENTS
, IMPROVE
CONSTRUCTION PROJECT DELIVERY IN THE ENERGY SECTOR
, FULLY
DOCUMENT AND EVALUATE THE DIRECTIVES SET FORTH IN SECTION
PAGE 3-SENATE BILL 23-292 40-2-129, AND CREATE A CLEAR SET OF STANDARDS FOR ENFORCEMENT TO
ACHIEVE THE LAW
'S INTENT FOR THE BENEFIT OF COLORADO WORKERS AND
THE COMMUNITIES WHERE THEY LIVE
;
(k) U
SE OF THESE QUALITY CONTRACTING TOOLS IS ALREADY
INCORPORATED INTO
COLORADO'S TRADITIONAL PUBLIC PROCUREMENT LAW
AS PREVAILING WAGE AND APPRENTICESHIP POLICIES ADOPTED IN SECTIONS
24-92-115 (7) AND PART 2 OF THIS ARTICLE 92. IN ADDITION, PROJECT LABOR
AGREEMENTS HAVE BEEN SUCCESSFULLY USED IN
COLORADO IN THE PAST
FOR PROJECTS IN THE ENERGY SECTOR AND THE BROADER PRIVATE SECTOR
CONSTRUCTION INDUSTRY
. THESE AGREEMENTS HAVE ALSO BEEN UPHELD
BY THE COURTS
, FOR EXAMPLE, IN BLDG. & CONSTR. TRADES COUNCIL V.
A
SSOCIATED BUILDERS & CONTRACTORS OF MASS./R.I., INC., 507 U.S. 230,
231
(1993), DUE TO THEIR ABILITY TO HELP SECURE RELIABLE CRAFT LABOR
STAFFING AND PROMOTE TIMELY PROJECT DELIVERY
.
(l) D
UE TO THEIR BENEFITS IN PROMOTING SUCCESSFUL PROJECT
DELIVERY IN PROJECTS ASSISTED BY FEDERAL GRANTS AND TAX CREDITS
,
THE FEDERAL GOVERNMENT IS STRONGLY ENCOURAGING THE USE OF THESE
QUALITY CONTRACTING TOOLS GENERALLY
, AND ESPECIALLY IN THE ENERGY
SECTOR
, WHERE MAJOR FEDERAL ASSISTANCE PROGRAMS UNDER THE
RECENT FEDERAL
"INFLATION REDUCTION ACT OF 2022", PUB. L. 117-169,
ARE PROVIDING APPROXIMATELY THREE HUNDRED SEVENTY BILLION
DOLLARS IN FUNDING TO PROMOTE CLEAN ENERGY SOURCES ACROSS THE
COUNTRY
.
(2) T
HE GENERAL ASSEMBLY FURTHER FINDS AND DECLARES THAT
BECAUSE COST
-EFFECTIVE, SAFE, AND EFFICIENT GENERATION ,
TRANSMISSION, AND DISTRIBUTION SYSTEMS IN THE ENERGY SECTOR ARE
VITAL TO THE STATE
'S ECONOMY AND THE PUBLIC WELFARE AND SAFETY ,
QUALITY CONTROL AND RISK AVOIDANCE MEASURES ARE NECESSARY TO
ENSURE THAT THE CONSTRUCTION OF PROJECTS NECESSARY FOR THESE
SYSTEMS ARE ADEQUATELY STAFFED BY PROPERLY TRAINED AND QUALIFIED
CRAFT LABOR PERSONNEL
.
24-92-303. Definitions. A
S USED IN THIS PART 3, UNLESS THE
CONTEXT OTHERWISE REQUIRES
:
(1) "C
ONSTRUCTION" MEANS THE CONSTRUCTION, ALTERATION, OR
REPAIR OF AN ENERGY SECTOR PUBLIC WORKS PROJECT
, CONSISTENT WITH
PAGE 4-SENATE BILL 23-292 AND INCLUDING THE SAME LIMITATIONS AS THE DEFINITION OF
CONSTRUCTION AS ESTABLISHED IN SECTION
45(b)(7)(a) OF THE FEDERAL
"INTERNAL REVENUE CODE OF 1986", AS AMENDED, AND AS DESCRIBED IN
ALL RELATED OFFICIAL GUIDANCE FROM THE FEDERAL INTERNAL REVENUE
SERVICE AND THE
UNITED STATES DEPARTMENT OF LABOR IMPLEMENTING
THE APPLICABLE SECTIONS OF THE FEDERAL
"INFLATION REDUCTION ACT".
(2) "C
OOPERATIVE ELECTRIC ASSOCIATION" HAS THE SAME MEANING
AS SET FORTH IN SECTION
40-9.5-102 (1).
(3) "C
RAFT LABOR" MEANS EMPLOYEES WHO ARE ENGAGED IN THE
CONSTRUCTION OF AN ENERGY SECTOR PUBLIC WORKS PROJECT
, INCLUDING
ALL TRADES
, CRAFTS, AND OCCUPATIONS, AND WHO ARE PAID HOURLY.
(4) "C
RAFT LABOR CERTIFICATION" MEANS ALL DOCUMENTATION
AND CERTIFICATION OF PAYROLL REQUIRED FOR AN ENERGY SECTOR PUBLIC
WORKS PROJECT IN ACCORDANCE WITH THE REQUIREMENTS OF SECTION
24-92-115 (7) AND PART 2 OF THIS ARTICLE 92.
(5) (a) "E
NERGY SECTOR PUBLIC WORKS PROJECT " MEANS ANY
PROJECT IN THE STATE THAT
:
(I) H
AS THE PURPOSE OF GENERATING , TRANSMITTING, OR
DISTRIBUTING ELECTRICITY OR NATURAL GAS TO PROVIDE ENERGY TO
COLORADO INDIVIDUAL CONSUMERS AND BUSINESSES , IS BUILT BY OR FOR
A PUBLIC UTILITY
, INCLUDING ANY PROJECT FOR WHICH ENERGY IS
PURCHASED THROUGH A POWER PURCHASER OR SIMILAR AGREEMENT
, AND
IS FUNDED IN WHOLE OR IN PART BY
:
(A) T
HE STATE, THROUGH DIRECT FUNDING , LOANS, LOAN
GUARANTEES
, LAND TRANSFERS, TAX ASSISTANCE, INCLUDING TAX CREDITS,
DEDUCTIONS, OR INCENTIVES, OR OTHER ASSISTANCE ALLOCATED OR
APPROPRIATED BY THE STATE
; OR
(B) UTILITY CUSTOMER FUNDING AS APPROVED IN ANY PROCEEDING
CONDUCTED BY THE PUBLIC UTILITIES COMMISSION AS PART OF AN ELECTRIC
RESOURCE ACQUISITION OR REQUESTS FOR CERTIFICATES OF CONVENIENCE
AND NECESSITY FOR CONSTRUCTION OR EXPANSION OF A PROJECT
,
INCLUDING BUT NOT LIMITED TO POLLUTION CONTROL OR FUEL CONVERSION
UPGRADES AND CONVERSION OF EXISTING COAL
-FIRED PLANTS TO NATURAL
PAGE 5-SENATE BILL 23-292 GAS PLANTS; OR
(II) HAS THE PURPOSE OF GENERATING OR DISTRIBUTING
ELECTRICITY OR NATURAL GAS FOR THE PURPOSES OF PROVIDING ENERGY TO
COLORADO INDIVIDUAL CONSUMERS AND BUSINESSES FROM UTILITY
CUSTOMER FUNDING AS APPROVED BY A COOPERATIVE ELECTRIC
ASSOCIATION
.
(b) "E
NERGY SECTOR PUBLIC WORKS PROJECT " INCLUDES THE
FOLLOWING PROJECT TYPES
, SO LONG AS THEY SATISFY THE CRITERIA IN
SUBSECTION
(5)(a)(I) OR (5)(a)(II) OF THIS SECTION:
(I) P
OWER GENERATION WITH A NAMEPLATE GENERATION CAPACITY
OF ONE MEGAWATT OR HIGHER
, INCLUDING GENERATION SOURCED FROM
WIND
, SOLAR, GEOTHERMAL, HYDROGEN, NUCLEAR, OR BIOENERGY, OR ANY
PROJECT THAT GENERATES ELECTRICITY FROM THE COMBUSTION OF OIL
, GAS,
OR OTHER FOSSIL FUELS OR AN ENERGY STORAGE SYSTEM AS DEFINED BY
SECTION
40-2-202 WITH AN ENERGY RATING OF ONE MEGAWATT OF POWER
CAPACITY OR FOUR MEGAWATT HOURS OF USEABLE ENERGY CAPACITY OR
HIGHER
; AND
(II) OTHER PROJECTS WITH A TOTAL PROJECT COST OF ONE MILLION
DOLLARS OR MORE THAT INCLUDE
:
(A) P
OLLUTION CONTROLS;
(B) U
TILITY GAS DISTRIBUTION;
(C) E
LECTRIC TRANSMISSION PROJECTS;
(D) G
EOTHERMAL SYSTEMS THAT ARE USED TO PROVIDE HEAT OR
HEATED WATER OR THAT OPERATE AS THERMAL SYSTEMS OR THERMAL
NETWORKS AS DEFINED IN LAW
;
(E) E
LECTRIC VEHICLE CHARGING INFRASTRUCTURE INSTALLATIONS ;
(F) H
YDROGEN-RELATED INFRASTRUCTURE CONSTRUCTION
PROJECTS
;
(G) A
NY PROJECT THAT TRANSPORTS OR STORES CARBON DIOXIDE
PAGE 6-SENATE BILL 23-292 CAPTURED FROM POWER GENERATION ; AND
(H) ANY OTHER CONSTRUCTION PROJECTS COVERED BY THIS PART 3.
(6) "F
EDERAL PREVAILING WAGE AND APPRENTICESHIP
REQUIREMENTS
" MEANS THE REQUIREMENTS UNDER :
(a) S
ECTIONS 45(b)(7) AND (8) OF TITLE 26 OF THE UNITED STATES
CODE, WHETHER APPLICABLE DIRECTLY OR UNDER A PROVISION OF THE
FEDERAL
"INTERNAL REVENUE CODE OF 1986", AS AMENDED, THAT APPLIES
SUCH SECTIONS OF THE
UNITED STATES CODE; OR
(b) SECTIONS 48(a)(10) AND (11) OF TITLE 26 OF THE UNITED STATES
CODE, WHETHER APPLICABLE DIRECTLY OR UNDER A PROVISION OF THE
FEDERAL
"INTERNAL REVENUE CODE OF 1986", AS AMENDED THAT APPLIES
SUCH SECTIONS OF THE
UNITED STATES CODE.
(7) "F
EDERAL "INFLATION REDUCTION ACT"" MEANS THE FEDERAL
"INFLATION REDUCTION ACT OF 2022", UNITED STATES CODE, TITLE 26,
INCLUDING BUT NOT LIMITED TO SECTIONS 30C, 45, 45B, 45L, 45Q, 45U,
45V,
45X, 45Y, 45Z, 48, 48C, 48E, AND 179D, AND ASSOCIATED
IMPLEMENTING RULES AND GUIDANCE PROMULGATED BY THE
UNITED
STATES DEPARTMENT OF THE TREASURY AND THE UNITED STATES INTERNAL
REVENUE SERVICE
, AS THE STATUTE AND IMPLEMENTING RULES AND
GUIDANCE MAY BE AMENDED FROM TIME TO TIME
.
(8) "L
EAD CONTRACTOR" MEANS A GENERAL CONTRACTOR ,
CONSTRUCTION MANAGER , DEVELOPER, DESIGN BUILDER, OR OTHER PARTY
THAT IS PRIMARILY RESPONSIBLE TO A PUBLIC UTILITY OR INDEPENDENT
POWER PRODUCER FOR PERFORMING CONSTRUCTION UNDER A CONTRACT FOR
AN ENERGY SECTOR PUBLIC WORKS PROJECT
.
(9) "P
ROJECT LABOR AGREEMENT " MEANS A PREHIRE COLLECTIVE
BARGAINING AGREEMENT BETWEEN A LEAD CONTRACTOR AND
CONSTRUCTION LABOR ORGANIZATIONS
, INCLUDING BUT NOT LIMITED TO
THE
COLORADO BUILDING AND CONSTRUCTION TRADES COUNCIL AND ITS
AFFILIATES OR A GROUP OF LABOR UNIONS COVERING THE AFFECTED TRADES
NECESSARY TO PERFORM WORK ON A PROJECT
, THAT ESTABLISHES THE
TERMS AND CONDITIONS OF EMPLOYMENT OF THE CONSTRUCTION
WORKFORCE ON AN ENERGY SECTOR PUBLIC WORKS PROJECT
. A PROJECT
PAGE 7-SENATE BILL 23-292 LABOR AGREEMENT MUST INCLUDE PROVISIONS THAT :
(a) S
ET FORTH EFFECTIVE, IMMEDIATE, AND MUTUALLY BINDING
PROCEDURES FOR RESOLVING JURISDICTIONAL LABOR DISPUTES AND
GRIEVANCES ARISING BEFORE THE COMPLETION OF WORK
;
(b) C
ONTAIN GUARANTEES AGAINST STRIKES , LOCKOUTS, OR SIMILAR
ACTIONS
;
(c) E
NSURE A RELIABLE SOURCE OF TRAINED , SKILLED, AND
EXPERIENCED CONSTRUCTION CRAFT LABOR
;
(d) F
URTHER PUBLIC POLICY OBJECTIVES REGARDING IMPROVED
EMPLOYMENT OPPORTUNITIES FOR MINORITIES
, WOMEN, OR OTHER
ECONOMICALLY DISADVANTAGED POPULATIONS IN THE CONSTRUCTION
INDUSTRY
, INCLUDING PERSONS FROM DISPROPORTIONATELY IMPACTED
COMMUNITIES
, TO THE EXTENT PERMITTED BY STATE AND FEDERAL LAW ;
(e) P
ERMIT 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 ;
(f) B
IND 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 CONTRACT DOCUMENTS
; AND
(g) INCLUDE OTHER TERMS AS THE PARTIES DEEM APPROPRIATE .
(10) "P
UBLIC UTILITY" HAS THE SAME MEANING AS SET FORTH IN
SECTION
40-1-103.
24-92-304. Energy sector public works projects - craft labor
employment - training - wage requirements. (1) (a) E
XCEPT AS
OTHERWISE PROVIDED IN SUBSECTIONS
(1)(b) AND (1)(c) OF THIS SECTION,
A CONTRACT BETWEEN PUBLIC UTILITIES , COOPERATIVE ELECTRIC
ASSOCIATIONS
, OR INDEPENDENT POWER PRODUCERS AND LEAD
CONTRACTORS FOR AN ENERGY SECTOR PUBLIC WORKS PROJECT MUST
INCLUDE PROVISIONS EXPRESSLY REQUIRING THAT ALL WORK PERFORMED
UNDER THE CONTRACT COMPLY WITH THE REQUIREMENTS OF SECTION
PAGE 8-SENATE BILL 23-292 24-92-115 (7) AND THE REQUIREMENTS OF PART 2 OF THIS ARTICLE 92 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 SPECIFIED IN SUBSECTION
24-92-303 (5)(b)(II) WITH A TOTAL
PROJECT COST OF ONE MILLION DOLLARS OR MORE
. THESE REQUIREMENTS
CONSTITUTE MATERIAL TERMS OF SUCH CONTRACTS
.
(b) (I) F
OR ENERGY SECTOR PUBLIC WORKS PROJECTS FUNDED
PURSUANT TO SECTION
24-92-303 (5)(a)(I)(A), THE REQUIREMENTS OF THIS
PART
3 APPLY ONLY WHEN THE PROJECT IS A POWER GENERATION PROJECT
WITH A NAMEPLATE GENERATION CAPACITY OF ONE MEGAWATT OR HIGHER
OR AN ENERGY STORAGE SYSTEM AS DEFINED BY SECTION
40-2-202 WITH AN
ENERGY RATING OF ONE MEGAWATT OF POWER CAPACITY OR FOUR
MEGAWATT HOURS OF USEABLE ENERGY CAPACITY OR HIGHER AND THE
AGGREGATED PUBLIC ASSISTANCE FROM THE STATE IS FIVE HUNDRED
THOUSAND DOLLARS OR MORE
.
(II) F
OR ENERGY SECTOR PUBLIC WORKS PROJECTS UNDER
24-92-303(5)(b)(II), THE REQUIREMENTS OF THIS PART 3 APPLY ONLY WHEN
THE TOTAL PROJECT COST IS ONE MILLION DOLLARS OR MORE
, AND THE
AGGREGATED PUBLIC ASSISTANCE FROM THE STATE
, FUNDING FROM A
PUBLIC UTILITY
, OR FUNDING FROM A COOPERATIVE ELECTRIC ASSOCIATION
IS FIVE HUNDRED THOUSAND DOLLARS OR MORE
.
(c) T
HE REQUIREMENTS OF THIS PART 3 DO NOT APPLY TO:
(I) A
PROJECT THAT IS COVERED BY A PROJECT LABOR AGREEMENT ;
(II) W
ORK ON AN ENERGY SECTOR PUBLIC WORKS PROJECT
PERFORMED BY THE EMPLOYEES OF A UTILITY COMPANY
;
(III) S
O LONG AS COMPLIANCE WITH ANY APPLICABLE FEDERAL
"INFLATION REDUCTION ACT" QUALIFICATION REQUIREMENTS IS A
MATERIAL TERM OF THE AGREEMENT WITH A PUBLIC UTILITY
, COOPERATIVE
ELECTRIC ASSOCIATION
, INDEPENDENT POWER PRODUCER , OR THE STATE,
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 , AS A RESULT OF:
PAGE 9-SENATE BILL 23-292 (A) SATISFYING THE PREVAILING WAGE AND APPRENTICESHIP
REQUIREMENTS UNDER THE PROVISIONS OF THE FEDERAL
"INFLATION
REDUCTION ACT"; OR
(B) ACHIEVING THE START OF CONSTRUCTION PRIOR TO JANUARY 29,
2023,
PURSUANT TO THE PRINCIPLES OUTLINED IN THE FEDERAL INTERNAL
REVENUE SERVICE GUIDANCE AND THE
UNITED STATES DEPARTMENT OF
LABOR GUIDANCE RELATED TO THE FEDERAL
"INFLATION REDUCTION ACT"
AS AMENDED OR SUPPLEMENTED FROM TIME TO TIME ;
(IV) A
UTILITY-INCENTIVIZED DEMAND-SIDE MANAGEMENT OR
ELECTRIFICATION PROGRAM PURSUANT TO SECTION
40-3.2-105.5 OR
40-3.2-105.6;
(V) U
TILITY OR STATE-FUNDED BUILDING ENERGY EFFICIENCY
PROGRAMS
;
(VI) S
ERVICE AGREEMENTS THAT WERE ENTERED INTO BY A PUBLIC
UTILITY
, INDEPENDENT POWER PRODUCER , OR COOPERATIVE ELECTRIC
ASSOCIATION ON OR BEFORE
MARCH 1, 2023; EXCEPT THAT UPON RENEWAL
OR ISSUANCE OF A NEW REQUEST FOR PROPOSALS
, THE SERVICE AGREEMENT
MUST COME INTO COMPLIANCE WITH THE REQUIREMENTS OF THIS SECTION
;
(VII) P
ROJECTS THAT INVOLVE AN ELECTRIC DISTRIBUTION LINE
WITH A CAPACITY OF
69KV OR LESS; AND
(VIII) PROJECTS THAT INVOLVE PIPELINES WITH A SPECIFIED
MINIMUM YIELD STRENGTH LESS THAN THIRTY PERCENT
.
(2) U
NLESS THE CONTRACTUAL REQUIREMENTS SPECIFIED IN
SUBSECTION
(1) OF THIS SECTION ARE IN PLACE, AN AFFECTED PROJECT
SHALL NOT BE ELIGIBLE TO
:
(a) R
ECEIVE FUNDING FROM THE STATE THROUGH GENERAL FUND
APPROPRIATIONS
, TAX CREDITS, TAX DEDUCTIONS, LAND TRANSFERS, OR
OTHER FUNDING OR ASSISTANCE PROVIDED BY THE GENERAL ASSEMBLY OR
A GOVERNMENT AGENCY
; OR
(b) RECEIVE ANY APPROVALS OR AUTHORIZATIONS FROM THE PUBLIC
UTILITIES COMMISSION
, INCLUDING APPROVALS FOR UTILITY FUNDING OR FOR
PAGE 10-SENATE BILL 23-292 COMMENCEMENT OF THE PROJECT , INCLUDING A CERTIFICATE OF PUBLIC
CONVENIENCE
.
(3) T
HE LEAD CONTRACTOR ENGAGED TO PERFORM CONSTRUCTION
SERVICES FOR AN ENERGY SECTOR PUBLIC WORKS PROJECT MUST REQUIRE
ALL SUBCONTRACTORS USED ON THE PROJECT TO COMPLY WITH SECTION
24-92-115 (7) AND PART 2 OF THIS ARTICLE 92 BY ENSURING THAT SUCH
REQUIREMENTS ARE STIPULATED IN ALL SUBCONTRACTS
. LEAD
CONTRACTORS MUST TAKE ALL REASONABLY NECESSARY STEPS TO ENSURE
COMPLIANCE BY MONITORING SUBCONTRACTORS
.
(4) T
HE PUBLIC UTILITIES COMMISSION SHALL NOT FIND AN ENERGY
SECTOR PUBLIC WORKS PROJECT TO BE IN COMPLIANCE WITH SECTION
40-2-129 UNLESS THE CONSTRUCTION CONTRACT FOR THE PROJECT
INCLUDES PROVISIONS EXPRESSLY REQUIRING THAT ALL WORK PERFORMED
UNDER THE CONTRACT COMPLY WITH THE REQUIREMENTS OF SECTION
24-92-115 (7) AND PART 2 OF THIS ARTICLE 92. COMPLIANCE WITH THIS
SUBSECTION
(4) DOES NOT PREVENT THE COMMISSION FROM CONSIDERING
ALL
"BEST VALUE" EMPLOYMENT METRICS AS DEFINED IN SECTION 40-2-129,
INCLUDING THOSE METRICS THAT ARE NOT DIRECTLY RELATED TO THE
PROCUREMENT OF CRAFT LABOR AND APPRENTICESHIP TRAINING ON AN
ENERGY SECTOR PUBLIC WORKS PROJECT
.
(5) C
ONSISTENT WITH SECTION 24-92-203 (4), BIDDERS ON ENERGY
SECTOR PUBLIC WORKS PROJECTS SHALL NOT ARTIFICIALLY DIVIDE THE
OVERALL GENERATION CAPACITY OR OVERALL PROJECT COST OF AN ENERGY
SECTOR PUBLIC WORKS PROJECT TO DELIBERATELY AVOID THE
REQUIREMENTS TO COMPLY WITH SECTION
24-92-115 (7) AND PART 2 OF THIS
ARTICLE
92. THE PUBLIC UTILITIES COMMISSION, THE STATE, A PUBLIC
UTILITY
, OR A COOPERATIVE ELECTRIC ASSOCIATION MAY STILL REQUIRE
COMPLIANCE WITH PREVAILING WAGE AND APPRENTICESHIP UTILIZATION
REQUIREMENTS IF THEY DETERMINE THAT A BIDDER HAS ARTIFICIALLY
DIVIDED A PROJECT WITH THE INTENT OF AVOIDING THE REQUIREMENT TO
COMPLY WITH THOSE SECTIONS
.
24-92-305. Energy sector public works projects - record keeping
- reporting - craft labor certification - sanctions - compliance with best
value employment metrics. (1) T
HE LEAD CONTRACTOR FOR AN ENERGY
SECTOR PUBLIC WORKS PROJECT SHALL PREPARE CERTIFIED PAYROLL
RECORDS FOR CRAFT WORKERS DIRECTLY EMPLOYED BY THE CONTRACTOR
,
PAGE 11-SENATE BILL 23-292 OBTAIN CERTIFIED PAYROLL RECORDS FROM ALL CONTRACTORS AND
SUBCONTRACTORS ON THE PROJECTS
, AND SUBMIT THE RECORDS TO THE
PUBLIC UTILITY OR OTHER OWNER OF THE ENERGY SECTOR PUBLIC WORKS
PROJECT ON A WEEKLY BASIS
. EACH LEAD CONTRACTOR AND
SUBCONTRACTOR SHALL CERTIFY
, UNDER THE PENALTY OF PERJURY, THAT
THE RECORDS PROVIDE COMPLETE AND ACCURATE INFORMATION FOR ALL
CRAFT WORKERS EMPLOYED ON THE PROJECT
.
(2) T
HE LEAD CONTRACTOR FOR AN ENERGY SECTOR PUBLIC WORKS
PROJECT SHALL PREPARE A CRAFT LABOR CERTIFICATION ON A QUARTERLY
BASIS FOR WORK THAT IS BEING PERFORMED UNDER AFFECTED PROJECTS
.
(3) A
CRAFT LABOR CERTIFICATION MUST INCLUDE THE FOLLOWING :
(a) A
SWORN ATTESTATION, UNDER THE PENALTY OF PERJURY, THAT
THE LEAD CONTRACTOR IS FULLY COMPLIANT WITH ALL EMPLOYMENT
,
TRAINING, AND WAGE REQUIREMENTS OF SECTION 24-92-115 (7) AND PART
2 OF THIS ARTICLE 92; AND
(b) AN IDENTICAL, EQUIVALENT CRAFT LABOR CERTIFICATION
EXECUTED IN THE SAME MANNER BY ALL SUBCONTRACTORS PARTICIPATING
IN THE ENERGY SECTOR PUBLIC WORKS PROJECT
.
(4) T
HE PUBLIC UTILITY, COOPERATIVE ELECTRIC ASSOCIATION ,
INDEPENDENT POWER PRODUCER , OR OTHER OWNER OF AN ENERGY SECTOR
PUBLIC WORKS PROJECT IS RESPONSIBLE FOR MAINTENANCE OF RECORDS FOR
ALL CRAFT LABOR CERTIFICATIONS
. THE PUBLIC UTILITY, COOPERATIVE
ELECTRIC ASSOCIATION
, INDEPENDENT POWER PRODUCER , OR OTHER OWNER
OF AN ENERGY SECTOR PUBLIC WORKS PROJECT SHALL EITHER PROVIDE
COPIES QUARTERLY OR REQUIRE BY CONTRACT THAT THE LEAD CONTRACTOR
PROVIDE COPIES QUARTERLY
, TO THE DEPARTMENT OF LABOR AND
EMPLOYMENT FOR REVIEW AND OVERSIGHT PURPOSES
.
(5) N
O LATER THAN JANUARY 1, 2029, AND AT LEAST FIVE YEARS
THEREAFTER
, THE STATE AUDITOR'S OFFICE SHALL CONDUCT AN AUDIT OF
THE COMMISSION
'S APPROVAL OF ENERGY SECTOR PUBLIC WORKS PROJECTS .
T
HE PURPOSE OF THE AUDIT IS TO ESTABLISH OVERSIGHT AND
ACCOUNTABILITY FOR COMPLIANCE WITH SECTION
40-2-129, AND TO
DETERMINE WHETHER A SAMPLE OF PROJECTS THAT HAVE BEEN APPROVED
BY THE COMMISSION ARE FULLY COMPLIANT WITH ALL EMPLOYMENT
,
PAGE 12-SENATE BILL 23-292 TRAINING, WAGE, AND APPRENTICESHIP REQUIREMENTS OF SECTION
24-92-115 (7) AND PART 2 OF THIS ARTICLE 92. THE AUDIT MUST CONSIDER
INFORMATION AND RECORDS RELATED TO THE CRAFT LABOR CERTIFICATIONS
THAT ARE COLLECTED AND MAINTAINED BY THE DEPARTMENT OF LABOR
AND EMPLOYMENT
. THE DEPARTMENT OF LABOR AND EMPLOYMENT SHALL
PROVIDE ANY INFORMATION NEEDED TO PERFORM THE AUDIT AS REQUESTED
BY THE STATE AUDITOR
'S OFFICE.
(a) T
HE AUDIT PROCESS MUST SELECT A SAMPLE OF PROJECTS FOR
REVIEW AND ENSURE THAT THE SCOPE OF THE AUDIT ENCOMPASSES THE
BROAD TYPES OF ENERGY SECTOR PUBLIC WORKS PROJECTS
.
(b) U
PON RELEASE OF THE AUDIT REPORT BY THE LEGISLATIVE AUDIT
COMMITTEE
, THE STATE AUDITOR MUST MAKE THE RESULTS OF THE AUDIT
AVAILABLE TO THE PUBLIC
.
(c) A
FTER CONDUCTING TWO AUDITS UNDER THIS SUBSECTION (5),
THE STATE AUDITOR MAY CONDUCT ADDITIONAL AUDITS IN THE STATE
AUDITOR
'S DISCRETION.
(6) V
IOLATIONS OF THE REQUIREMENTS SPECIFIED IN THIS SECTION ,
INCLUDING WAGE AND HOUR VIOLATIONS , VIOLATIONS OF APPRENTICESHIP
REQUIREMENTS
, FALSIFICATION OF RECORDS, OR WILLFUL NON-COMPLIANCE,
ARE SUBJECT TO THE PENALTIES AND ENFORCEMENT RIGHTS AND REMEDIES
DESCRIBED IN SECTIONS
24-92-115 (3), 24-92-209, 24-92-210, AND
24-109-105.
(7) I
F AN ENERGY SECTOR PUBLIC WORKS PROJECT USES FEDERAL
FUNDING THAT REQUIRES COMPLIANCE WITH THE FEDERAL
"DAVIS-BACON
ACT", 40 U.S.C. SEC. 3141 ET SEQ., OR RELATED STATUTES, THE OWNER OF
THE ENERGY SECTOR PUBLIC WORKS PROJECT SHALL
:
(a) N
OTIFY THE PUBLIC UTILITIES COMMISSION OF THEIR INTENT TO
USE FEDERAL FUNDING TO FUND
, IN WHOLE OR IN PART, THE ENERGY SECTOR
PUBLIC WORKS PROJECT
; AND
(b) REQUIRE THE LEAD CONTRACTORS AND ALL OTHER
CONTRACTORS AND SUBCONTRACTORS WORKING ON THE ENERGY SECTOR
PUBLIC WORKS PROJECT TO PAY APPLICABLE FEDERALLY STIPULATED WAGE
AND BENEFIT RATES AND PROVIDE CERTIFIED PAYROLL REPORTS TO THE
PAGE 13-SENATE BILL 23-292 PUBLIC UTILITIES COMMISSION IN THE SAME MANNER REQUIRED BY
SUBSECTION
(1) OF THIS SECTION.
24-92-306. Energy sector public works projects - use of project
labor agreements. (1) A
PUBLIC UTILITY, COOPERATIVE ELECTRIC
ASSOCIATION
, OR INDEPENDENT POWER PRODUCER IS AUTHORIZED TO
INCORPORATE A PROJECT LABOR AGREEMENT REQUIREMENT FOR AN ENERGY
SECTOR PUBLIC WORKS PROJECT IF THE PROJECT LABOR AGREEMENT WILL
PROMOTE SUCCESSFUL PROJECT DELIVERY BY SECURING A SKILLED LABOR
FORCE FOR THE PROJECT AND IF IT WILL PROMOTE COST
-EFFICIENCY, SAFETY,
QUALITY, AND TIMELY COMPLETION OF THE PROJECT .
(2) I
F ALL CONSTRUCTION WORK ON AN ENERGY SECTOR PUBLIC
WORKS PROJECT IS COVERED BY A PROJECT LABOR AGREEMENT
, THE
REQUIREMENTS OF SECTIONS
24-92-304 AND 24-92-305 DO NOT APPLY TO
THE PROJECT
.
(3) T
HE PUBLIC UTILITIES COMMISSION SHALL NOT DENY APPROVAL
OF AN ENERGY SECTOR PUBLIC WORKS PROJECT SOLELY BECAUSE THE
PROJECT OWNER VOLUNTARILY ELECTS TO USE A PROJECT LABOR
AGREEMENT FOR THE PROJECT
. THE PUBLIC UTILITIES COMMISSION MUST
STATE ITS REASONS FOR DENIAL IN WRITING WHEN IT ISSUES THE DECISION
.
24-92-307. Energy sector public works projects - existing
authority of the public utilities commission. N
OTHING IN THIS SECTION
CONTRAVENES THE STATUTORY AUTHORITY OF THE PUBLIC UTILITIES
COMMISSION TO CONSIDER OVERALL PROJECT COSTS
, THE IMPACT OF A
PROJECT ON UTILITY CUSTOMERS
, OR THE IMPACT OF PROJECT COST ON
UTILITY RATES
.
SECTION 2. In Colorado Revised Statutes, 24-38.5-118, add (11)
as follows:
24-38.5-118. Geothermal energy grant program - creation -
procedures - fund - report - definitions - repeal. (11) Grants awarded
to energy sector public works projects - requirements. A
NY PROJECT
THAT IS FUNDED IN WHOLE OR IN PART BY A GRANT AWARDED PURSUANT TO
THIS SECTION AND THAT IS AN ENERGY SECTOR PUBLIC WORKS PROJECT
, AS
DEFINED IN SECTION
24-92-303 (5), MUST COMPLY WITH THE APPLICABLE
REQUIREMENTS OF THE
"COLORADO ENERGY SECTOR PUBLIC WORKS
PAGE 14-SENATE BILL 23-292 PROJECT CRAFT LABOR REQUIREMENTS ACT", PART 3 OF ARTICLE 92 OF THIS
TITLE
24.
SECTION 3. In Colorado Revised Statutes, 24-92-115, add (7) as
follows:
24-92-115. Apprenticeship utilization requirements -
mechanical, electrical, and plumbing contracts - public projects -
definition. (7) (a) F
OR AN ENERGY SECTOR PUBLIC WORKS PROJECT , AS
DEFINED IN SECTION
24-92-303 (5), THE GENERAL CONTRACTOR OR OTHER
FIRM TO WHICH THE CONTRACT IS AWARDED SHALL
:
(I) I
DENTIFY, AT THE TIME THEY ARE PUT UNDER CONTRACT , ALL
CONTRACTORS OR SUBCONTRACTORS REQUIRED FOR THE PROJECT
, OTHER
THAN THOSE USED FOR ALL MECHANICAL
, SHEET METAL, FIRE SUPPRESSION,
SPRINKLER FITTING, ELECTRICAL, PLUMBING WORK, AND CONSTRUCTION
CRAFT LABOR
; AND
(II) CERTIFY THAT ALL CONTRACTORS OR SUBCONTRACTORS
IDENTIFIED PARTICIPATE IN APPRENTICESHIP TRAINING PROGRAMS
REGISTERED WITH THE
UNITED STATES DEPARTMENT OF LABOR 'S
EMPLOYMENT AND TRAINING ADMINISTRATION OR STATE APPRENTICESHIP
AGENCIES RECOGNIZED BY THE
UNITED STATES DEPARTMENT OF LABOR 'S
EMPLOYMENT AND TRAINING ADMINISTRATION AND HAVE A PROVEN RECORD
OF GRADUATING APPRENTICES FOR AT LEAST THREE OF THE PAST FIVE
YEARS
.
(b) S
UBSECTIONS (1)(a) TO (1)(c) OF THIS SECTION APPLY TO
MECHANICAL
, ELECTRICAL, AND PLUMBING CONTRACTORS AND
SUBCONTRACTORS SUBJECT TO THIS SUBSECTION
(7).
(c) C
ONTRACTORS AND SUBCONTRACTORS THAT ARE SUBJECT TO
THE REQUIREMENTS OF THIS SUBSECTION
(7) AND THAT PROVIDE
CONSTRUCTION CRAFT LABOR MUST CERTIFY THAT ALL FIRMS IDENTIFIED
PARTICIPATE IN APPRENTICESHIP TRAINING PROGRAMS THAT ARE
REGISTERED WITH THE
UNITED STATES DEPARTMENT OF LABOR 'S
EMPLOYMENT AND TRAINING ADMINISTRATION OR A STATE APPRENTICESHIP
AGENCY RECOGNIZED BY THE
UNITED STATES DEPARTMENT OF LABOR 'S
EMPLOYMENT AND TRAINING ADMINISTRATION AND THAT
:
PAGE 15-SENATE BILL 23-292 (I) SATISFY TO THE GRADUATION REQUIREMENTS OF SUBSECTIONS
(1)(a)(II)(A) TO (1)(a)(II)(C) OF THIS SECTION AT THE TIME THE CONTRACT
OR SUBCONTRACT WAS EXECUTED
; AND
(II) PROVIDE DOCUMENTATION REQUIRED IN SUBSECTION (1)(a)(III)
OF THIS SECTION.
(d) U
PON EVALUATION OF THE SUBMITTED BIDS , A PUBLIC UTILITY,
INDEPENDENT POWER PRODUCER , OR COOPERATIVE ELECTRIC ASSOCIATION
MAY WAIVE THE REQUIREMENTS OF THIS SECTION IF IT DETERMINES THAT
THERE IS SUBSTANTIAL EVIDENCE THAT THERE ARE NO RESPONSIVE ELIGIBLE
CONTRACTORS OR SUBCONTRACTORS FOR ANY TRADES AVAILABLE TO
FULFILL THE APPRENTICESHIP REQUIREMENTS FOR ONE OR MORE OF THE
TRADES SUBJECT TO THIS SECTION
. ANY PARTY EXERCISING A WAIVER
PURSUANT TO THIS SUBSECTION
(7)(d) SHALL DISCLOSE THE WAIVER ON A
PUBLICLY ACCESSIBLE WEBSITE
, INCLUDING THE CONTRACTOR OR
SUBCONTRACTOR TO WHICH THE WAIVER APPLIES AND THE SPECIFIC
RATIONALE FOR THE WAIVER
.
(e) I
N THE EVENT OF AN EXTREME WEATHER EVENT , A WILDFIRE, OR
AN EMERGENCY DECLARED BY THE STATE OF
COLORADO OR THE FEDERAL
GOVERNMENT
, A PUBLIC UTILITY OR COOPERATIVE ELECTRIC ASSOCIATION
MAY WAIVE THE REQUIREMENTS OF THIS SUBSECTION
(7) WHEN PERFORMING
REPAIR WORK TO RESTORE ELECTRIC SERVICE TO CUSTOMERS OR
ASSOCIATION MEMBERS WHEN IT CAN REASONABLY DEMONSTRATE THAT
:
(I) T
HE CAPACITY NEEDED TO RESTORE POWER EXCEEDS THE PUBLIC
UTILITY
'S OR COOPERATIVE ELECTRIC ASSOCIATION 'S AVAILABLE CAPACITY
FOR EMERGENCY REPAIRS THROUGH ITS EMPLOYEES
, STANDBY CONTRACTOR
CAPACITY
, OR APPLICABLE MUTUAL AID AGREEMENTS ; AND
(II) A GOOD FAITH EFFORT TO IDENTIFY CONTRACTORS AND
SUBCONTRACTORS THAT CAN COMPLY WITH THIS SUBSECTION
(7) WAS MADE
AND NO ELIGIBLE CONTRACTORS OR SUBCONTRACTORS WERE AVAILABLE
FOR THE TIME FRAME FOR WHICH THE EMERGENCY CAPACITY WAS NEEDED
.
SECTION 4. In Colorado Revised Statutes, 40-2-123, add (5) as
follows:
40-2-123. Energy technologies - consideration by commission -
PAGE 16-SENATE BILL 23-292 incentives - demonstration projects - definitions - repeal. (5) A NY
PROJECT APPROVED PURSUANT TO THIS SECTION THAT IS AN ENERGY SECTOR
PUBLIC WORKS PROJECT
, AS DEFINED IN SECTION 24-92-303 (5), MUST
COMPLY WITH THE APPLICABLE REQUIREMENTS OF THE
"COLORADO ENERGY
SECTOR PUBLIC WORKS PROJECT CRAFT LABOR REQUIREMENTS ACT", PART
3 OF ARTICLE 92 OF TITLE 24.
SECTION 5. In Colorado Revised Statutes, 40-2-127, add (3.7) as
follows:
40-2-127. Community energy funds - community solar gardens
- definitions - rules - legislative declaration - repeal. (3.7) Energy sector
public works projects. I
F THE DEVELOPMENT OF A COMMUNITY SOLAR
GARDEN IS AN ENERGY SECTOR PUBLIC WORKS PROJECT
, AS DEFINED IN
SECTION
24-92-303 (5), THEN THE PROJECT MUST COMPLY WITH THE
APPLICABLE REQUIREMENTS OF THE
"COLORADO ENERGY SECTOR PUBLIC
WORKS PROJECT CRAFT LABOR REQUIREMENTS ACT", PART 3 OF ARTICLE
92 OF TITLE 24.
SECTION 6. In Colorado Revised Statutes, 40-2-129, amend
(1)(a); repeal (4); and add (5) and (6) as follows:
40-2-129. New resource acquisitions - factors in determination
- local employment - "best value" employment metrics - performance
audit. (1) (a) (I) When evaluating electric resource acquisitions and
requests for a certificate of convenience and necessity for construction or
expansion of generating facilities, including but not limited to pollution
control or fuel conversion upgrades and conversion of existing coal-fired
plants to natural gas plants, the commission shall consider, in all decisions
involved in electric resource acquisition processes, best value regarding
employment of Colorado labor, as defined in section 8-17-101 (2)(a), and
positive impacts on the long-term economic viability of Colorado
communities. To this end, the commission shall require utilities to obtain
and provide to the commission the following information regarding "best
value" employment metrics:
(A) The availability of training programs, including training through
apprenticeship programs registered with the United States department of
labor's office of apprenticeship or by state apprenticeship councils
AGENCIES recognized by that office FOR ALL APPRENTICEABLE TRADES
PAGE 17-SENATE BILL 23-292 REQUIRED TO EFFECTIVELY DELIVER THE PROJECT TO COMPLETION ;
(B) Employment of Colorado labor as compared to importation of
out-of-state workers;
(C) T
HE ABILITY OF THE PROJECT TO EMPLOY WORKERS FROM
TRADITIONALLY UNDERSERVED COMMUNITIES OR DISPROPORTIONATELY
IMPACTED COMMUNITIES AS DEFINED IN SECTION
24-4-109 (2)(b)(II);
(D) H
OW THE PROJECT SUPPORTS DOMESTIC MANUFACTURING
THROUGH THE UTILIZATION OF
COLORADO AND DOMESTICALLY PRODUCED
MATERIALS
, INCLUDING CONSIDERATION OF THE POTENTIAL FOR
DOMESTICALLY MANUFACTURED MATERIALS BEING UNAVAILABLE IN THE
MARKETPLACE
;
(E) Long-term career opportunities; and
(F) Industry-standard wages, health care, and pension benefits.
(II) When a utility proposes to construct new facilities of its own,
the utility shall supply similar information to the commission.
(4) (a) The state auditor shall conduct or cause to be conducted aperformance audit of the commission's implementation of the "best value"
employment metrics requirements of this section, including review of:
(I) The projects subject to subsection (1)(a) of this section that have
been approved in the previous ten years;
(II) Whether the work done used contractors that met the criteria
specified in this section;
(III) Any shortfalls in enforcement capacity or implementation by
the commission;
(IV) Current enforcement procedures for investor-owned utilities,
independent power producers, and wholesale generation and transmission
electric cooperatives; and
(V) Whether and how delayed rule-making proceedings have
PAGE 18-SENATE BILL 23-292 prevented the "best value" employment metrics requirements of this section
from being implemented.
(b) The governor's office, the commission, and commission staff
shall cooperate with stakeholders and the state auditor in conducting the
audit and making recommendations for reforms of, or potential alternatives
to, the implementation and enforcement of "best value" employment
metrics.
(c) Upon completion of a performance audit, the state auditor shall
submit a written report to the legislative audit committee, together with any
findings and recommendations.
(5) THE COMMISSION SHALL PROMULGATE RULES REQUIRING
UTILITIES
, WHEN SUBMITTING ANNUAL PROGRESS REPORTS FOR AN ELECTRIC
RESOURCE ACQUISITION
, TO COLLECT AND PROVIDE TO THE COMMISSION
INFORMATION CONCERNING THE IMPLEMENTATION OF
"BEST VALUE"
EMPLOYMENT METRICS , AS DESCRIBED IN SUBSECTION (1)(a) OF THIS
SECTION
, WHICH METRICS WERE APPROVED BY THE COMMISSION DURING THE
ACQUISITION PLANNING PROCESS AND WHICH ACQUISITIONS ARE UNDER
CONSTRUCTION BY EITHER THE UTILITY OR BY OTHERS
.
(6) (a) O
N OR BEFORE DECEMBER 31, 2024, AND ON OR BEFORE
DECEMBER 31 OF EACH YEAR THEREAFTER, THE COMMISSION SHALL SUBMIT
A REPORT TO THE ENERGY AND ENVIRONMENT COMMITTEE OF THE HOUSE OF
REPRESENTATIVES AND THE TRANSPORTATION AND ENERGY COMMITTEE OF
THE SENATE
, OR ANY SUCCESSOR COMMITTEES . THE REPORT MUST
SUMMARIZE THE INFORMATION CONCERNING
"BEST VALUE" EMPLOYMENT
METRICS THAT IS REPORTED TO THE COMMISSION BY UTILITIES PURSUANT TO
SUBSECTIONS
(1)(a) AND (5) OF THIS SECTION AND INDICATE THE MANNER
IN WHICH THE COMMISSION CONSIDERED THE INFORMATION
.
(b) N
OTWITHSTANDING THE LIMITATION DESCRIBED IN SECTION
24-1-136 (11)(a)(I), THE REPORTING REQUIREMENT DESCRIBED IN
SUBSECTION
(6)(a) OF THIS SECTION CONTINUES IN PERPETUITY.
SECTION 7. In Colorado Revised Statutes, 40-3.2-105.5, add (5),
(6), and (7) as follows:
40-3.2-105.5. Labor standards for gas DSM projects. (5) (a) F
OR
PAGE 19-SENATE BILL 23-292 A PLUMBING, MECHANICAL, OR ELECTRICAL PROJECT IN A NEW OR EXISTING
INDUSTRIAL
, COMMERCIAL, OR MULTIFAMILY RESIDENTIAL BUILDING THAT
CONTAINS TWENTY THOUSAND SQUARE FEET OR MORE OF CONDITIONED
FLOOR SPACE AND FOR WHICH A REBATE IS TO BE PROVIDED DIRECTLY TO
THE BUILDING OWNER AS PART OF A GAS
DSM PROGRAM, A UTILITY SHALL
NOT ISSUE ANY REBATES OR INCENTIVES UNLESS THE LEAD GENERAL
CONTRACTOR PERFORMING THE WORK FOR THE PROJECT SIGNS A NOTARIZED
AFFIDAVIT UNDER PENALTY OF PERJURY STATING THAT ALL OF THE
REQUIREMENTS OF THIS SECTION HAVE BEEN MET AND PROVIDES THE SIGNED
AFFIDAVIT TO THE SPONSORING UTILITY
. THE AFFIDAVIT MUST:
(I) I
DENTIFY THE CONTRACTORS OR SUBCONTRACTORS THAT WILL BE
USED FOR ALL MECHANICAL
, SHEET METAL, FIRE SUPPRESSION, SPRINKLER
FITTING
, ELECTRICAL, AND PLUMBING WORK, REQUIRED ON THE PROJECT;
(II) C
ERTIFY THAT ALL FIRMS IDENTIFIED PARTICIPATE IN
APPRENTICESHIP PROGRAMS REGISTERED WITH THE
UNITED STATES
DEPARTMENT OF LABOR
'S EMPLOYMENT AND TRAINING ADMINISTRATION OR
STATE APPRENTICESHIP
AGENCIES RECOGNIZED BY THE UNITED STATES
DEPARTMENT OF LABOR AND HAVE A PROVEN RECORD OF GRADUATING
APPRENTICES AS FOLLOWS
:
(A) B
EGINNING JULY 1, 2021, THROUGH JUNE 30, 2026, A MINIMUM
OF FIFTEEN PERCENT OF ITS APPRENTICES FOR AT LEAST THREE OF THE PAST
FIVE YEARS
;
(B) B
EGINNING JULY 1, 2026, THROUGH JUNE 30, 2031, A MINIMUM
OF TWENTY PERCENT OF APPRENTICES FOR AT LEAST THREE OF THE PAST FIVE
YEARS
; AND
(C) BEGINNING JULY 1, 2031, AND EACH YEAR THEREAFTER , A
MINIMUM OF THIRTY PERCENT OF APPRENTICES FOR AT LEAST THREE OF THE
PAST FIVE YEARS
; AND
(III) SUPPLY SUPPORTING DOCUMENTATION FROM THE UNITED
STATES DEPARTMENT OF LABOR 'S OFFICE OF APPRENTICESHIP OR STATE
APPRENTICESHIP AGENCY VERIFYING THE INFORMATION PROVIDED IN THE
CERTIFICATION SPECIFIED IN SUBSECTION
(1)(a)(II) OF THIS SECTION.
(b) T
HE UTILITY MUST MAINTAIN A DATABASE OF THE INFORMATION
PAGE 20-SENATE BILL 23-292 CONTAINED IN THE AFFIDAVIT FOR EACH PROJECT AWARDED A REBATE OR
INCENTIVE
.
(c) T
HIS SUBSECTION (5) DOES NOT APPLY TO A GAS DSM PROGRAM
THAT IS LIMITED TO IN
-UNIT WORK IN A MULTIFAMILY BUILDING , AS
UNDERTAKEN BY THE OWNER OR TE NANT OF THE MULTIFAMILY BUILDING OR
UNIT
.
(6) (a) T
O ENSURE COMPLIANCE WITH THE REQUIREMENTS OF
SUBSECTION
(5) OF THIS SECTION, THE GENERAL CONTRACTOR OR OTHER
FIRM TO WHICH THE CONTRACT IS AWARDED MUST AGREE TO PROVIDE
ADDITIONAL DOCUMENTATION TO THE PARTICIPATING UTILITY OFFERING THE
REBATE OR INCENTIVE REGARDING THE REQUIREMENTS FOR AFFECTED
APPRENTICESHIP TRAINING PROGRAMS SPECIFIED IN SUBSECTION
(5)(a) OF
THIS SECTION
.
(b) I
F THE UTILITY OFFERING THE REBATE OR INCENTIVE DETERMINES
THAT A MECHANICAL
, ELECTRICAL, OR PLUMBING SUBCONTRACTOR HAS
WILLFULLY FALSIFIED DOCUMENTATION OR WILLFULLY MISREPRESENTED
THEIR QUALIFICATIONS AS REQUIRED TO COMPLY WITH THIS SECTION IN THE
CONTRACT
, THE UTILITY SHALL DIRECT THE CONTRACTOR TO TERMINATE
THE SUBCONTRACTOR CONTRACT IMMEDIATELY AND THE SUBCONTRACTOR
SHALL IMMEDIATELY BE REMOVED FROM THE PUBLIC PROJECT
. THE UTILITY
MAY ALSO DEBAR THE OFFENDING SUBCONTRACTORS FOR FUTURE
PARTICIPATION IN REBATES OR INCENTIVE PROGRAMS ESTABLISHED UNDER
THIS SECTION
.
(c) I
F AFTER ISSUING A REBATE OR INCENTIVE PURSUANT TO THIS
SECTION
, A UTILITY DETERMINES THAT A CONTRACTOR OR SUBCONTRACTOR
HAS WILLFULLY VIOLATED ANY REQUIREMENT OF THIS SECTION
, THE UTILITY
MAY DEMAND A FULL REFUND OF THE REBATE OR INCENTIVE WITH
REASONABLE PENALTIES AND INTEREST AND MAY PURSUE ANY REMEDY
PROVIDED BY LAW
.
(d) A
UTILITY MUST MAINTAIN A LIST OF CONTRACTORS AND
SUBCONTRACTORS THAT HAVE WILLFULLY FALSIFIED DOCUMENTATION OR
WILLFULLY MISREPRESENTED THEIR QUALIFICATIONS OR THAT ARE
DEBARRED FROM RECEIVING FUTURE REBATES OR INCENTIVES AND MAKE
THAT LIST AVAILABLE TO THEIR CUSTOMERS ON THEIR WEBSITE
.
PAGE 21-SENATE BILL 23-292 (7) (a) THE UTILITY THAT OFFERS THE REBATE OR INCENTIVE
PURSUANT TO THIS SECTION MUST ESTABLISH PERIODIC AUDITS OF THE
QUALIFYING REBATES THAT REPRESENT THE HIGHEST TWO PERCENT OF
REBATES ISSUED BY DOLLAR AMOUNT AT LEAST EVERY THREE YEARS TO
ENSURE THAT THE CONTRACTORS OR SUBCONTRACTORS MAINTAIN
COMPLIANCE WITH THIS SECTION
.
(b) I
F THE AUDIT DETERMINES THAT THERE WERE WILLFUL
VIOLATIONS OF THIS SECTION
, THE UTILITY MAY DEMAND A FULL REFUND OF
THE REBATE OR INCENTIVE WITH REASONABLE PENALTIES AND INTEREST
AND MAY PURSUE ANY REMEDY PROVIDED BY LAW
.
SECTION 8. In Colorado Revised Statutes, 40-3.2-105.6, add (5),
(6), and (7) as follows:
40-3.2-105.6. Labor standards for beneficial electrification
projects. (5) (a) F
OR A BENEFICIAL ELECTRIFICATION PROJECT IN A NEW OR
EXISTING INDUSTRIAL
, COMMERCIAL, OR MULTIFAMILY RESIDENTIAL
BUILDING THAT CONTAINS TWENTY THOUSAND SQUARE FEET OR MORE OF
CONDITIONED FLOOR SPACE AND FOR WHICH A REBATE IS TO BE PROVIDED
DIRECTLY TO THE BUILDING OWNER AS PART OF THE BENEFICIAL
ELECTRIFICATION PROGRAM
, A UTILITY SHALL NOT ISSUE ANY REBATES OR
INCENTIVES UNLESS THE LEAD GENERAL CONTRACTOR PERFORMING THE
WORK FOR THE PROJECT SIGNS A NOTARIZED AFFIDAVIT UNDER PENALTY OF
PERJURY STATING THAT ALL OF THE REQUIREMENTS OF THIS SECTION HAVE
BEEN MET AND PROVIDES THE SIGNED AFFIDAVIT TO THE SPONSORING
UTILITY
. THE AFFIDAVIT MUST:
(I) I
DENTIFY THE CONTRACTORS OR SUBCONTRACTORS THAT WILL BE
USED FOR ALL MECHANICAL
, SHEET METAL, FIRE SUPPRESSION, SPRINKLER
FITTING
, ELECTRICAL, AND PLUMBING WORK REQUIRED ON THE PROJECT ;
(II) C
ERTIFY THAT ALL FIRMS IDENTIFIED PARTICIPATE IN
APPRENTICESHIP PROGRAMS REGISTERED WITH THE
UNITED STATES
DEPARTMENT OF LABOR
'S EMPLOYMENT AND TRAINING ADMINISTRATION OR
STATE APPRENTICESHIP AGENCIES RECOGNIZED BY THE
UNITED STATES
DEPARTMENT OF LABOR AND HAVE A PROVEN RECORD OF GRADUATING
APPRENTICES AS FOLLOWS
:
(A) B
EGINNING JULY 1, 2021, THROUGH JUNE 30, 2026, A MINIMUM
PAGE 22-SENATE BILL 23-292 OF FIFTEEN PERCENT OF ITS APPRENTICES FOR AT LEAST THREE OF THE PAST
FIVE YEARS
;
(B) B
EGINNING JULY 1, 2026, THROUGH JUNE 30, 2031, A MINIMUM
OF TWENTY PERCENT OF APPRENTICES FOR AT LEAST THREE OF THE PAST FIVE
YEARS
; AND
(C) BEGINNING JULY 1, 2031, AND EACH YEAR THEREAFTER , A
MINIMUM OF THIRTY PERCENT OF APPRENTICES FOR AT LEAST THREE OF THE
PAST FIVE YEARS
; AND
(III) SUPPLY SUPPORTING DOCUMENTATION FROM THE UNITED
STATES DEPARTMENT OF LABOR 'S OFFICE OF APPRENTICESHIP OR STATE
APPRENTICESHIP AGENCY VERIFYING THE INFORMATION PROVIDED IN THE
CERTIFICATION SPECIFIED IN SUBSECTION
(1)(a)(II) OF THIS SECTION.
(b) T
HE UTILITY MUST MAINTAIN A DATABASE OF THE INFORMATION
CONTAINED IN THE AFFIDAVIT FOR EACH PROJECT AWARDED A REBATE OR
INCENTIVE
.
(c) T
HIS SUBSECTION (5) DOES NOT APPLY TO A BENEFICIAL
ELECTRIFICATION PROJECT THAT IS LIMITED TO IN
-UNIT WORK IN A
MULTIFAMILY BUILDING
, AS UNDERTAKEN BY THE OWNER OR TENANT OF THE
MULTIFAMILY BUILDING OR UNIT
.
(6) (a) T
O ENSURE COMPLIANCE WITH THE REQUIREMENTS OF
SUBSECTION
(5) OF THIS SECTION, THE GENERAL CONTRACTOR OR OTHER
FIRM TO WHICH THE CONTRACT IS AWARDED MUST AGREE TO PROVIDE
ADDITIONAL DOCUMENTATION TO THE PARTICIPATING UTILITY OFFERING THE
REBATE OR INCENTIVE REGARDING THE REQUIREMENTS FOR AFFECTED
APPRENTICESHIP TRAINING PROGRAMS SPECIFIED IN SUBSECTION
(5)(a) OF
THIS SECTION
.
(b) I
F THE UTILITY OFFERING THE REBATE OR INCENTIVE DETERMINES
THAT A MECHANICAL
, ELECTRICAL, OR PLUMBING SUBCONTRACTOR HAS
WILLFULLY FALSIFIED DOCUMENTATION OR WILLFULLY MISREPRESENTED
THEIR QUALIFICATIONS AS REQUIRED TO COMPLY WITH THIS SECTION IN THE
CONTRACT
, THE UTILITY SHALL DIRECT THE CONTRACTOR TO TERMINATE
THE SUBCONTRACTOR CONTRACT IMMEDIATELY AND THE SUBCONTRACTOR
MUST IMMEDIATELY BE REMOVED FROM THE PUBLIC PROJECT
. THE UTILITY
PAGE 23-SENATE BILL 23-292 MAY DEBAR THE OFFENDING SUBCONTRACTORS FOR FUTURE PARTICIPATION
IN REBATE OR INCENTIVE PROGRAMS ESTABLISHED UNDER THIS SECTION
.
(c) I
F AFTER ISSUING A REBATE OR INCENTIVE PURSUANT TO THIS
SECTION
, A UTILITY DETERMINES THAT A CONTRACTOR OR SUBCONTRACTOR
HAS WILLFULLY VIOLATED ANY REQUIREMENT OF THIS SECTION
, THE UTILITY
MAY DEMAND A FULL REFUND OF THE REBATE OR INCENTIVE WITH
REASONABLE PENALTIES AND INTEREST AND MAY PURSUE ANY REMEDY
PROVIDED BY LAW
.
(d) A
UTILITY SHALL MAINTAIN A LIST OF CONTRACTORS AND
SUBCONTRACTORS THAT HAVE WILLFULLY FALSIFIED DOCUMENTATION OR
WILLFULLY MISREPRESENTED THEIR QUALIFICATIONS OR THAT ARE
DEBARRED FROM RECEIVING FUTURE REBATES OR INCENTIVES AND MAKE
THAT LIST AVAILABLE TO THEIR CUSTOMERS ON THEIR WEBSITE
.
(7) (a) T
HE UTILITY THAT OFFERS THE REBATE OR INCENTIVE
PURSUANT TO THIS SECTION MUST ESTABLISH PERIODIC AUDITS OF THE
QUALIFYING REBATES THAT REPRESENT THE HIGHEST TWO PERCENT OF
REBATES ISSUED BY DOLLAR AMOUNT AT LEAST EVERY THREE YEARS TO
ENSURE THAT THE CONTRACTORS OR SUBCONTRACTORS MAINTAIN
COMPLIANCE WITH THIS SECTION
.
(b) I
F THE AUDIT DETERMINES THAT THERE WERE WILLFUL
VIOLATIONS OF THIS SECTION
, THE UTILITY MAY DEMAND A FULL REFUND OF
THE REBATE OR INCENTIVE WITH REASONABLE PENALTIES AND INTEREST
AND MAY PURSUE ANY REMEDY PROVIDED BY LAW
.
SECTION 9. In Colorado Revised Statutes, 40-3.2-108, add (8)(e)
as follows:
40-3.2-108. Clean heat targets - legislative declaration -
definitions - plans - rules - reports. (8) Employment and utility
workforce. (e) I
F A PROJECT IN CONNECTION WITH A CLEAN HEAT PLAN , IS
AN ENERGY SECTOR PUBLIC WORKS PROJECT
, AS DEFINED IN SECTION
24-92-303 (5), THE PROJECT MUST COMPLY WITH THE APPLICABLE
REQUIREMENTS OF THE
"COLORADO ENERGY SECTOR PUBLIC WORKS
PROJECT CRAFT LABOR REQUIREMENTS ACT", PART 3 OF ARTICLE 92 OF
TITLE
24.
PAGE 24-SENATE BILL 23-292 SECTION 10. In Colorado Revised Statutes, 40-5-107, add (3)(c)
as follows:
40-5-107. Electric vehicle programs - definitions - repeal.
(3) (c) A
N ELECTRIC VEHICLE INFRASTRUCTURE PROJECT THAT IS AN
ENERGY SECTOR PUBLIC WORKS PROJECT
, AS DEFINED IN SECTION 24-92-303
(5),
MUST COMPLY WITH THE APPLICABLE REQUIREMENTS OF THE
"COLORADO ENERGY SECTOR PUBLIC WORKS PROJECT CRAFT LABOR
REQUIREMENTS ACT", PART 3 OF ARTICLE 92 OF TITLE 24.
SECTION 11. In Colorado Revised Statutes, 40-42-107, add (4) as
follows:
40-42-107. Labor standards - apprenticeship - supervision.
(4) A
NY PROJECT FOR THE CONSTRUCTION , EXPANSION, OR MAINTENANCE
OF FACILITIES UNDERTAKEN IN
COLORADO PURSUANT TO THIS ARTICLE 42
THAT IS AN ENERGY SECTOR PUBLIC WORKS PROJECT , AS DEFINED IN SECTION
24-92-303 (5), MUST COMPLY WITH THE APPLICABLE REQUIREMENTS OF THE
"COLORADO ENERGY SECTOR PUBLIC WORKS PROJECT CRAFT LABOR
REQUIREMENTS ACT", PART 3 OF ARTICLE 92 OF TITLE 24.
SECTION 12. Appropriation. For the 2023-24 state fiscal year,
$108,401 is appropriated to the department of labor and employment for use
by the division of labor standards and statistics. This appropriation is from
the general fund and is based on an assumption that the division will require
an additional 1.0 FTE. To implement this act, the division may use this
appropriation for program costs related to labor standards.
SECTION 13. Act subject to petition - effective date -
applicability. (1) This act takes effect January 1, 2024; except that, if a
referendum petition is filed pursuant to section 1 (3) of article V of the state
constitution against this act or an item, section, or part of this act within the
ninety-day period after final adjournment of the general assembly, then the
act, item, section, or part will not take effect unless approved by the people
at the general election to be held in November 2024 and, in such case, will
take effect on the date of the official declaration of the vote thereon by the
governor.
(2) This act only applies to any energy sector public works project
PAGE 25-SENATE BILL 23-292 for which a public utility or cooperative electric association invitation for
bids or proposals is issued on or after January 1, 2024.
____________________________ ____________________________
Steve Fenberg
Julie McCluskie
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Cindi L. Markwell Robin Jones
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 26-SENATE BILL 23-292