Second Regular Session Seventy-fourth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 24-0619.02 Sarah Lozano x3858 SENATE BILL 24-150 Senate Committees House Committees Transportation & Energy A BILL FOR AN ACT C ONCERNING REQUIREMENTS FOR TH E PROCESSING OF MUNICIPAL101 SOLID WASTE IN THE STATE.102 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) On and after July 1, 2024, section 2 of the bill prohibits a person from operating or expanding certain units that incinerate municipal solid waste (incineration unit). On and after January 1, 2025, section 2 also clarifies that incineration and incineration units do not meet certain standards established by state law or rules. SENATE SPONSORSHIP Cutter, HOUSE SPONSORSHIP Froelich, 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. Section 3 changes current law to provide that synthetic gas produced by the pyrolysis of waste materials is not an eligible energy resource for the purpose of certain state-level renewable energy standards. Section 4 changes current law to specify that methane derived from the pyrolysis of municipal solid waste is not recovered methane that is a clean heat resource for the purpose of clean heat plans. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. Legislative declaration. (1) The general assembly2 finds and declares that the incineration of municipal solid waste:3 (a) Generates hazardous waste and toxic pollutants, which affect4 the health of disproportionately impacted communities and low-income5 communities;6 (b) Destroys valuable materials that could be recycled back into7 the supply chain;8 (c) Perpetuates the extractive, polluting, linear economy by9 investing in infrastructure that needs to be continuously supplied with10 cardboard, paper, and plastics that could otherwise be reduced or11 recycled; and12 (d) Is an expensive approach to waste management that relies on13 government investment of tax dollars or tax credits to build and maintain.14 (2) The general assembly therefore determines that it is in the best15 interest of the state to prohibit the construction, establishment, operation,16 or expansion of units that incinerate municipal solid waste.17 SECTION 2. In Colorado Revised Statutes, add 25-17-109 as18 follows:19 25-17-109. Prohibition on facilities that incinerate municipal20 solid waste - definitions. (1) A S USED IN THIS SECTION, UNLESS THE21 CONTEXT OTHERWISE REQUIRES :22 SB24-150-2- (a) "BIOCHAR" MEANS THE SOLID CARBON-RICH PRODUCT MADE1 WHEN BIOMASS UNDERGOES PYROLYSIS IN AN OXYGEN -DEPLETED2 ATMOSPHERE IN A PROCESS THAT SEQUESTERS CARBON .3 (b) "H ARD-TO-RECYCLE PLASTICS" MEANS PLASTIC MATERIALS OR4 PRODUCTS THAT:5 (I) C ANNOT BE EASILY SORTED BY A MATERIALS RECOVERY6 FACILITY OR PROCESSED BY TRADITIONAL MECHANICAL RECYCLING7 TECHNOLOGIES; OR8 (II) L ACK END-MARKET DEMAND.9 (c) "H AZARDOUS WASTE" HAS THE MEANING SET FORTH IN10 SECTION 25-15-101 (6).11 (d) "I NCINERATION UNIT" MEANS A MUNICIPAL WASTE12 COMBUSTION UNIT, AS DEFINED IN 40 CFR 60.2977, OR OTHER SOLID13 WASTE INCINERATION (OSWI) UNIT, AS DEFINED IN 40 CFR 60.2977, THAT14 INCINERATES MUNICIPAL SOLID WASTE .15 (e) (I) "M UNICIPAL SOLID WASTE" MEANS SOLID WASTE FROM16 HOUSEHOLD, COMMUNITY, COMMERCIAL, OR INDUSTRIAL SOURCES THAT17 DOES NOT CONTAIN HAZARDOUS WASTE .18 (II) "M UNICIPAL SOLID WASTE" INCLUDES PLASTIC PRODUCTS.19 (f) "P LASTIC PRODUCT" HAS THE MEANING SET FORTH IN SECTION20 25-17-802 (16) AND INCLUDES HARD-TO-RECYCLE PLASTICS.21 (g) "W ASTE TIRE" HAS THE MEANING SET FORTH IN SECTION22 30-20-1402 (12).23 (2) (a) E XCEPT AS SET FORTH IN SUBSECTION (2)(b) OF THIS24 SECTION, ON AND AFTER JULY 1, 2024, A PERSON SHALL NOT BUILD ,25 CONSTRUCT, ESTABLISH, OPERATE, OR EXPAND AN INCINERATION UNIT IN26 THE STATE.27 SB24-150 -3- (b) THE PROHIBITION IN SUBSECTION (2)(a) OF THIS SECTION DOES1 NOT APPLY TO:2 (I) O PERATIONS TO TREAT SOURCE -SEPARATED ORGANIC3 MATERIALS FOR THE PRODUCTION OF SOIL AMENDMENTS , INCLUDING4 COMPOST AND BIOCHAR;5 (II) O PERATIONS TO CONDUCT ANAEROBIC DIGESTION ; OR6 (III) O PERATIONS TO INCINERATE WASTE TIRES IN CEMENT KILNS .7 (3) N OTWITHSTANDING ANY PROVISION OF LAW TO THE8 CONTRARY, ON AND AFTER JANUARY 1, 2025:9 (a) I NCINERATION IS NOT CONSIDERED "RECYCLING", "RENEWABLE10 ENERGY", "CLEAN ENERGY", "GREEN ENERGY", "CLIMATE-FRIENDLY",11 " CARBON-FREE", "BIOFUEL", "ZERO-CARBON", OR ANY OTHER SIMILAR12 TERM FOR THE PURPOSE OF A PROGRAM ESTABLISHED BY STATE LAW OR13 RULES; AND14 (b) A N INCINERATION UNIT DOES NOT MEET A "RENEWABLE15 PORTFOLIO STANDARD", "LOW CARBON FUEL STANDARD ", "RENEWABLE16 FUEL STANDARD", OR ANY OTHER SIMILAR STANDARD ESTABLISHED BY17 STATE LAW OR RULES.18 SECTION 3. In Colorado Revised Statutes, 40-2-124, amend19 (1)(a) introductory portion; and repeal (1)(a)(V) as follows:20 40-2-124. Renewable energy standards - qualifying retail and21 wholesale utilities - definitions - net metering - legislative declaration22 - rules. (1) Each provider of retail electric service in the state of23 Colorado, other than municipally owned utilities that serve forty thousand24 customers or fewer, is a qualifying retail utility. Each qualifying retail25 utility, with the exception of cooperative electric associations that have26 voted to exempt themselves from commission jurisdiction pursuant to27 SB24-150 -4- section 40-9.5-104 and municipally owned utilities, is subject to the rules1 established under this article 2 by the commission. No additional2 regulatory authority is provided to the commission other than that3 specifically contained in this section. In accordance with article 4 of title4 24, the commission shall revise or clarify existing rules to establish the5 following:6 (a) Definitions of eligible energy resources that can be used to7 meet the standards. "Eligible energy resources" means recycled energy,8 renewable energy resources, and renewable energy storage. In addition,9 resources using coal mine methane and synthetic gas produced by10 pyrolysis of waste materials are eligible energy resources if the11 commission determines that the electricity generated by those resources12 is greenhouse gas neutral. The commission shall determine, following an13 evidentiary hearing, the extent to which such electric generation14 technologies utilized in an optional pricing program may be used to15 comply with this standard. A fuel cell using hydrogen derived from an16 eligible energy resource is also an eligible electric generation technology.17 Fossil and nuclear fuels and their derivatives are not eligible energy18 resources. As used in this section:19 (V) "Pyrolysis" means the thermochemical decomposition of20 material at elevated temperatures without the participation of oxygen.21 SECTION 4. In Colorado Revised Statutes, 40-3.2-108, amend22 (2)(m); and repeal (2)(n)(II)(B) as follows:23 40-3.2-108. Clean heat targets - legislative declaration -24 definitions - plans - rules - reports. (2) Definitions. As used in this25 section, unless the context otherwise requires:26 (m) "Pyrolysis" has the meaning set forth in section 40-2-12427 SB24-150 -5- (1)(a)(V) MEANS THE THERMOCHEMICAL DECOMPOSITION OF MATERIAL AT1 ELEVATED TEMPERATURES WITHOUT THE PARTICIPATION OF OXYGEN .2 (n) "Recovered methane" means any of the following that are3 located in Colorado and meet a recovered methane protocol approved by4 the air quality control commission:5 (II) Methane derived from:6 (B) The pyrolysis of municipal solid waste;7 SECTION 5. In Colorado Revised Statutes, 23-31-317, amend8 (2)(e) as follows:9 23-31-317. Biomass utilization study - legislative declaration10 - report - definitions - repeal. (2) As used in this section, unless the11 context otherwise requires:12 (e) "Pyrolysis" has the meaning set forth in section 40-2-12413 (1)(a)(V) 40-3.2-108 (2)(m).14 SECTION 6. Safety clause. The general assembly finds,15 determines, and declares that this act is necessary for the immediate16 preservation of the public peace, health, or safety or for appropriations for17 the support and maintenance of the departments of the state and state18 institutions.19 SB24-150 -6-