Second Regular Session Seventy-fourth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction 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 Amended 2nd Reading March 13, 2024 SENATE 3rd Reading Unamended March 15, 2024 SENATE SPONSORSHIP Cutter and Michaelson Jenet, Fields, Gonzales, Jaquez Lewis, Priola, Winter F. 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 combustion 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 combust municipal solid waste.17 SECTION 2. In Colorado Revised Statutes, add 25-17-109 as18 follows:19 25-17-109. Prohibition on facilities that combust municipal20 solid waste - definitions - rules. (1) AS USED IN THIS SECTION, UNLESS21 THE CONTEXT OTHERWISE REQUIRES :22 150-2- (a) "BIOCHAR" MEANS A CHARCOAL THAT IS PRODUCED BY1 PYROLYSIS OF BIOMASS AND THAT MAY BE USED AS A SOIL AMENDMENT .2 (b) "B IOSOLIDS" HAS THE MEANING SET FORTH IN SECTION 3 25-8-103 (1.4). 4 (c) "C OMBUSTION UNIT" MEANS A MUNICIPAL WASTE COMBUSTION 5 UNIT, AS DEFINED IN 40 CFR 60.2977, OR OTHER SOLID WASTE6 INCINERATION (OSWI) UNIT, AS DEFINED IN 40 CFR 60.2977, THAT7 COMBUSTS MUNICIPAL SOLID WASTE .8 (d) "C OMMISSION" MEANS THE SOLID AND HAZARDOUS WASTE 9 COMMISSION CREATED IN SECTION 25-15-302 (1)(a).10 (e) "C REMATORY INCINERATOR " MEANS ANY INCINERATOR 11 DESIGNED AND USED SOLELY FOR THE BURNING OF ANATOMICAL12 PATHOLOGICAL WASTE, WHICH INCINERATOR MAY ALSO BURN INCIDENTAL13 ITEMS NORMALLY CREMATED AS PART OF THE FUNERAL PROCESS , OR AS14 OTHERWISE DEFINED BY AIR QUALITY CONTROL COMMISSION RULE .15 (f) "HAZARDOUS WASTE" HAS THE MEANING SET FORTH IN SECTION16 25-15-101 (6).17 18 (g) "MUNICIPAL SOLID WASTE" MEANS SOLID WASTE FROM19 HOUSEHOLD, COMMUNITY, COMMERCIAL, OR INDUSTRIAL SOURCES THAT20 DOES NOT CONTAIN HAZARDOUS WASTE .21 22 (h) "WASTE TIRE" HAS THE MEANING SET FORTH IN SECTION23 30-20-1402 (12).24 (2) (a) E XCEPT AS SET FORTH IN SUBSECTION (2)(b) OF THIS25 SECTION, ON AND AFTER JULY 1, 2024, A PERSON SHALL NOT BUILD ,26 CONSTRUCT, ESTABLISH, OPERATE, OR EXPAND A COMBUSTION UNIT IN THE27 150 -3- STATE.1 (b) T HE PROHIBITION IN SUBSECTION (2)(a) OF THIS SECTION DOES2 NOT APPLY TO:3 (I) O PERATIONS TO EXCLUSIVELY TREAT SOURCE-SEPARATED4 ORGANIC MATERIALS FOR THE PRODUCTION OF SOIL AMENDMENTS ,5 INCLUDING COMPOST, BIOSOLIDS, AND BIOCHAR; 6 (II) O PERATIONS TO CONDUCT ANAEROBIC DIGESTION ; 7 (III) A IR CURTAIN INCINERATORS USED FOR WILDFIRE MITIGATION 8 OR INCINERATION OF THE MATERIALS LISTED IN 40 CFR 60.2888 (b)(1) TO9 (b)(4);10 (IV) U NITS THAT COMBUST CONTRABAND OR PROHIBITED GOODS , 11 AS DEFINED IN 40 CFR 60.2887 (p);12 (V) U NITS OPERATING AS A CREMATORY INCINERATOR ; 13 (VI) B IOMASS BOILERS FIRING MATERIALS LISTED IN 40 CFR 14 60.2888 (b)(1) TO (b)(4) OR OTHER APPROVED FUELS; OR 15 (VII) P YROLYSIS UNITS USED TO CONVERT MUNICIPAL SOLID 16 WASTE OR SOLID WASTE DERIVED MATERIALS INTO USEFUL PRODUCTS17 SUCH AS ENERGY, FUELS, AND CHEMICAL COMMODITIES .18 (3) N OTWITHSTANDING ANY PROVISION OF LAW TO THE19 CONTRARY, ON AND AFTER JANUARY 1, 2025:20 (a) C OMBUSTION IS NOT CONSIDERED "RECYCLING", "RENEWABLE21 ENERGY", "CLEAN ENERGY", "GREEN ENERGY", "CLIMATE-FRIENDLY",22 " CARBON-FREE", "BIOFUEL", "ZERO-CARBON", OR ANY OTHER SIMILAR23 TERM FOR THE PURPOSE OF A PROGRAM ESTABLISHED BY STATE LAW OR24 RULES; AND25 (b) A COMBUSTION UNIT DOES NOT MEET A "RENEWABLE26 PORTFOLIO STANDARD", "LOW CARBON FUEL STANDARD ", "RENEWABLE27 150 -4- FUEL STANDARD", OR ANY OTHER SIMILAR STANDARD ESTABLISHED BY1 STATE LAW OR RULES.2 (4) N OTHING IN THIS SECTION PROHIBITS THE BURNING OF WASTE 3 TIRES OR TIRE-DERIVED PRODUCTS AS FUEL IN CEMENT KILNS .4 (5) T HE COMMISSION MAY ADOPT RULES TO ENFORCE THIS 5 SECTION.6 SECTION 3. In Colorado Revised Statutes, 40-2-124, amend7 (1)(a) introductory portion as follows:8 40-2-124. Renewable energy standards - qualifying retail and9 wholesale utilities - definitions - net metering - legislative declaration10 - rules. (1) Each provider of retail electric service in the state of11 Colorado, other than municipally owned utilities that serve forty thousand12 customers or fewer, is a qualifying retail utility. Each qualifying retail13 utility, with the exception of cooperative electric associations that have14 voted to exempt themselves from commission jurisdiction pursuant to15 section 40-9.5-104 and municipally owned utilities, is subject to the rules16 established under this article 2 by the commission. No additional17 regulatory authority is provided to the commission other than that18 specifically contained in this section. In accordance with article 4 of title19 24, the commission shall revise or clarify existing rules to establish the20 following:21 (a) Definitions of eligible energy resources that can be used to22 meet the standards. "Eligible energy resources" means recycled energy,23 renewable energy resources, and renewable energy storage. In addition,24 resources using coal mine methane and synthetic gas produced by25 pyrolysis of waste materials are eligible energy resources if the26 commission determines that the electricity generated by those resources27 150 -5- is greenhouse gas neutral. SYNTHETIC GAS PRODUCED BY PYROLYSIS OF1 WASTE MATERIALS IS NOT AN ELIGIBLE ENERGY RESOURCE . The2 commission shall determine, following an evidentiary hearing, the extent3 to which such electric generation technologies utilized in an optional4 pricing program may be used to comply with this standard. A fuel cell5 using hydrogen derived from an eligible energy resource is also an6 eligible electric generation technology. Fossil and nuclear fuels and their7 derivatives are not eligible energy resources. As used in this section:8 9 SECTION 4. In Colorado Revised Statutes, 40-3.2-108, 10 repeal (2)(n)(II)(B) as follows:11 40-3.2-108. Clean heat targets - legislative declaration -12 definitions - plans - rules - reports. (2) Definitions. As used in this13 section, unless the context otherwise requires:14 15 (n) "Recovered methane" means any of the following that are16 located in Colorado and meet a recovered methane protocol approved by17 the air quality control commission:18 (II) Methane derived from:19 (B) The pyrolysis of municipal solid waste;20 21 SECTION 5. Safety clause. The general assembly finds,22 determines, and declares that this act is necessary for the immediate23 preservation of the public peace, health, or safety or for appropriations for24 the support and maintenance of the departments of the state and state25 institutions.26 150 -6-