Second 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. 24-0619.02 Sarah Lozano x3858
SENATE BILL 24-150
Senate Committees House Committees
Transportation & Energy Energy & Environment
Finance
Appropriations
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.
HOUSE
Amended 2nd Reading
May 5, 2024
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
15
(2) The general assembly therefore determines that it is in the best16
interest of the state to:17
(a) Prohibit combustion units from being eligible for any18
state-level incentives; and19
(b) Require pyrolysis and gasification processes to be regulated20
at the state and local level as solid waste-to-energy incineration systems. 21
SECTION 2. In Colorado Revised Statutes, add 25-17-109 as22
150-2- follows:1
25-17-109. Units that combust municipal solid waste not2
eligible for state-level incentives - definitions. (1) AS USED IN THIS3
SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :4
(a) "ASTM D7566" MEANS THE ASTM INTERNATIONAL5
STANDARD D7566 ENTITLED "STANDARD SPECIFICATION FOR AVIATION6
TURBINE FUEL CONTAINING SYNTHESIZED HYDROCARBONS", AS7
AMENDED.8
(b) "BIOCHAR" MEANS A CHARCOAL THAT IS PRODUCED BY9
PYROLYSIS OF BIOMASS AND THAT MAY BE USED AS A SOIL AMENDMENT.10
(c) "BIOSOLIDS" HAS THE MEANING SET FORTH IN SECTION11
25-8-103 (1.4).12
(d) "COMBUSTION UNIT" MEANS A MUNICIPAL WASTE COMBUSTION13
UNIT, AS DEFINED IN 40 CFR 60.2977, OR OTHER SOLID WASTE14
INCINERATION (OSWI) UNIT, AS DEFINED IN 40 CFR 60.2977, THAT15
COMBUSTS MUNICIPAL SOLID WASTE .16
(e) "CREMATORY INCINERATOR" MEANS ANY INCINERATOR17
DESIGNED AND USED SOLELY FOR THE BURNING OF ANATOMICAL18
PATHOLOGICAL WASTE, WHICH INCINERATOR MAY ALSO BURN INCIDENTAL19
ITEMS NORMALLY CREMATED AS PART OF THE FUNERAL PROCESS, OR AS20
OTHERWISE DEFINED BY AIR QUALITY CONTROL COMMISSION RULE .21
(f) "HAZARDOUS WASTE" HAS THE MEANING SET FORTH IN SECTION22
25-15-101 (6).23
(g) "MUNICIPAL SOLID WASTE" MEANS SOLID WASTE FROM24
HOUSEHOLD, COMMUNITY, COMMERCIAL, OR INDUSTRIAL SOURCES THAT25
DOES NOT CONTAIN HAZARDOUS WASTE .26
(h) (I) "STATE INCENTIVE" MEANS ANY STATE-LEVEL GRANT,27
150
-3- LOAN, TAX CREDIT, TAX EXEMPTION, SUBSIDY, OR OTHER FINANCIAL1
INCENTIVE.2
(II) "STATE INCENTIVE" DOES NOT INCLUDE THE TAX CREDIT3
ALLOWED PURSUANT TO SECTION 39-22-556.4
(2) NOTWITHSTANDING ANY LAW TO THE CONTRARY :5
(a) EXCEPT AS SET FORTH IN SUBSECTION (5) OF THIS SECTION, A6
COMBUSTION UNIT THAT TARGETS PLASTIC AS A FEEDSTOCK IS NOT7
ELIGIBLE FOR ANY STATE INCENTIVES NOT GRANTED OR AWARDED, OR8
THAT APPLY TO INCOME TAX YEARS, BEFORE JANUARY 1, 2025; EXCEPT9
THAT THIS SUBSECTION (2)(a) DOES NOT APPLY TO:10
(I) OPERATIONS TO EXCLUSIVELY TREAT SOURCE -SEPARATED11
ORGANIC MATERIALS FOR THE CREATION OF COMPOST, BIOSOLIDS, BIO-OIL,12
AND BIOCHAR;13
(II) OPERATIONS TO CONDUCT ANAEROBIC DIGESTION ;14
(III) AIR CURTAIN INCINERATORS USED FOR WILDFIRE MITIGATION15
OR INCINERATION OF THE MATERIALS LISTED IN 40 CFR 60.2888 (b)(1) TO16
(b)(4);17
(IV) UNITS THAT COMBUST CONTRABAND OR PROHIBITED GOODS,18
AS DEFINED IN 40 CFR 60.2887 (p);19
(V) UNITS OPERATING AS A CREMATORY INCINERATOR ;20
(VI) BIOMASS BOILERS FIRING MATERIALS LISTED IN 40 CFR21
60.2888 (b)(1) TO (b)(4) OR OTHER APPROVED FUELS; OR22
(VII) PROCESSES TO PRODUCE SUSTAINABLE AVIATION FUEL, AS23
DEFINED IN SECTION 40B(d) OF THE INTERNAL REVENUE CODE , SO LONG24
AS THE PROCESSES UTILIZE A PATHWAY THAT COMPLIES WITH ASTM25
D7566 AND ALL REQUIREMENTS OF THE FEDERAL "CLEAN AIR ACT", 4226
U.S.C. SEC. 7401 ET SEQ., AS AMENDED, APPLICABLE TO THE PRODUCER OF27
150
-4- THE SUSTAINABLE AVIATION FUEL;1
(b) ON AND AFTER JANUARY 1, 2025, COMBUSTION IS NOT2
CONSIDERED "RECYCLING", "RENEWABLE ENERGY", "CLEAN ENERGY",3
"GREEN ENERGY", "CLIMATE-FRIENDLY", "CARBON-FREE", "BIOFUEL",4
"ZERO-CARBON", OR ANY OTHER SIMILAR TERM FOR THE PURPOSE OF A5
PROGRAM ESTABLISHED BY STATE LAW OR RULES ; AND6
(c) ON AND AFTER JANUARY 1, 2025, A COMBUSTION UNIT DOES7
NOT MEET A "RENEWABLE PORTFOLIO STANDARD", "LOW CARBON FUEL8
STANDARD", "RENEWABLE FUEL STANDARD", OR ANY OTHER SIMILAR9
STANDARD ESTABLISHED BY STATE LAW OR RULES .10
(3) NOTHING IN THIS SECTION PROHIBITS STATE INCENTIVES FOR:11
(a) ENTITIES PARTICIPATING IN THE WASTE TIRE CLEANUP12
PROGRAM, AS DEFINED IN SECTION 30-20-1402 (13); OR13
(b) FEDERAL AND STATE AGENCIES AND INSTITUTIONS OF HIGHER14
EDUCATION CONDUCTING RESEARCH TO IMPROVE ENVIRONMENTAL AND15
HEALTH OUTCOMES OF COMBUSTION UNITS , WHICH RESEARCH DOES NOT16
INCLUDE THE OPERATION OF A COMMERCIAL -SCALE COMBUSTION UNIT.17
(5) COMBUSTION UNITS THAT ARE IN EXISTENCE IN THE STATE ON18
OR BEFORE JULY 1, 2024, ARE ELIGIBLE FOR A STATE INCENTIVE TO19
CONDUCT TECHNOLOGICAL UPGRADES IF THE STATE AGENCY RESPONSIBLE20
FOR ISSUING THE STATE INCENTIVE DETERMINES THAT THE STATE21
INCENTIVE IMPROVES THE HEALTH AND SAFETY OF WORKERS, PROMOTES22
WORKFORCE DEVELOPMENT, REDUCES NEGATIVE IMPACTS OF OPERATIONS23
OF THE COMBUSTION UNIT, AND ENCOURAGES INVESTMENT IN THE24
COMMUNITY OF THE COMBUSTION UNIT .25
SECTION 3. In Colorado Revised Statutes, 30-20-902, amend26
(1) as follows:27
150
-5- 30-20-902. Definitions. As used in this part 9, unless the context1
otherwise requires:2
(1) (a) "Solid waste-to-energy incineration system" means the use3
of flammable waste material as a primary or supplemental fuel for the4
conversion of heat into steam, electrical power, or any other form of5
energy.6
(b) "SOLID WASTE-TO-ENERGY INCINERATION SYSTEM" INCLUDES7
PYROLYSIS AND GASIFICATION PROCESSES .8
SECTION 4. In Colorado Revised Statutes, 31-15-1002, amend9
(1) as follows:10
31-15-1002. Definitions. As used in this part 10, unless the11
context otherwise requires:12
(1) (a) "Solid waste-to-energy incineration system" means the use13
of flammable waste material as a primary or supplemental fuel for the14
conversion of heat into steam, electrical power, or any other form of15
energy.16
(b) "SOLID WASTE-TO-ENERGY INCINERATION SYSTEM" INCLUDES17
PYROLYSIS AND GASIFICATION PROCESSES .18
SECTION 5. In Colorado Revised Statutes, 40-2-124, amend19
(1)(a) introductory portion 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
150
-6- 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. S
YNTHETIC GAS PRODUCED BY PYROLYSIS OF
13
WASTE MATERIALS IS NOT AN ELIGIBLE ENERGY RESOURCE . The14
commission shall determine, following an evidentiary hearing, the extent15
to which such electric generation technologies utilized in an optional16
pricing program may be used to comply with this standard. A fuel cell17
using hydrogen derived from an eligible energy resource is also an18
eligible electric generation technology. Fossil and nuclear fuels and their19
derivatives are not eligible energy resources. As used in this section:20
21
SECTION 6. In Colorado Revised Statutes, 40-3.2-108, 22
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
27
150
-7- (n) "Recovered methane" means any of the following that are1
located in Colorado and meet a recovered methane protocol approved by2
the air quality control commission:3
(II) Methane derived from:4
(B) The pyrolysis of municipal solid waste;5
6
SECTION 7. Safety clause. The general assembly finds,7
determines, and declares that this act is necessary for the immediate8
preservation of the public peace, health, or safety or for appropriations for9
the support and maintenance of the departments of the state and state10
institutions.11
150
-8-