Colorado 2024 2024 Regular Session

Colorado Senate Bill SB150 Enrolled / Bill

Filed 05/15/2024

                    SENATE BILL 24-150
BY SENATOR(S) Cutter and Michaelson Jenet, Fields, Gonzales,
Jaquez Lewis, Priola, Winter F.;
also REPRESENTATIVE(S) Froelich, Bacon, Brown, Duran, Garcia,
Herod, Jodeh, Joseph, Kipp, Lindsay, Marvin, McCormick, McLachlan,
Sirota, Story, Titone, Valdez, Vigil, Weissman, Willford.
C
ONCERNING REQUIREMENTS FOR THE PROCESSING OF MUNICIPAL SOLID
WASTE IN THE STATE
.
 
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Legislative declaration. (1)  The general assembly
finds and declares that the combustion of municipal solid waste:
(a)  Generates hazardous waste and toxic pollutants, which affect the
health of disproportionately impacted communities and low-income
communities;
(b)  Destroys valuable materials that could be recycled back into the
supply chain;
(c)  Perpetuates the extractive, polluting, linear economy by investing
NOTE:  This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
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. in infrastructure that needs to be continuously supplied with cardboard,
paper, and plastics that could otherwise be reduced or recycled; and
(d)  Is an expensive approach to waste management that relies on
government investment of tax dollars or tax credits to build and maintain.
(2)  The general assembly therefore determines that it is in the best
interest of the state to:
(a)  Prohibit combustion units from being eligible for any state-level
incentives; and
(b)  Require pyrolysis and gasification processes to be regulated at
the state and local level as solid waste-to-energy incineration systems.
SECTION 2. In Colorado Revised Statutes, add 25-17-109 as
follows:
25-17-109.  Units that combust municipal solid waste not eligible
for state-level incentives - definitions. (1)  A
S USED IN THIS SECTION,
UNLESS THE CONTEXT OTHERWISE REQUIRES :
(a)  "ASTM
 D7566" MEANS THE ASTM INTERNATIONAL STANDARD
D7566 ENTITLED "STANDARD SPECIFICATION FOR AVIATION TURBINE FUEL
CONTAINING SYNTHESIZED HYDROCARBONS", AS AMENDED.
(b)  "B
IOCHAR" MEANS A CHARCOAL THAT IS PRODUCED BY
PYROLYSIS OF BIOMASS AND THAT MAY BE USED AS A SOIL AMENDMENT
.
(c)  "B
IOSOLIDS" HAS THE MEANING SET FORTH IN SECTION 25-8-103
(1.4).
(d)  "C
OMBUSTION UNIT" MEANS A MUNICIPAL WASTE COMBUSTION
UNIT
, AS DEFINED IN 40 CFR 60.2977, OR OTHER SOLID WASTE INCINERATION
(OSWI) UNIT, AS DEFINED IN 40 CFR 60.2977, THAT COMBUSTS MUNICIPAL
SOLID WASTE
.
(e)  "C
REMATORY INCINERATOR " MEANS ANY INCINERATOR
DESIGNED AND USED SOLELY FOR THE BURNING OF ANATOMICAL
PATHOLOGICAL WASTE
, WHICH INCINERATOR MAY ALSO BURN INCIDENTAL
PAGE 2-SENATE BILL 24-150 ITEMS NORMALLY CREMATED AS PART OF THE FUNERAL PROCESS , OR AS
OTHERWISE DEFINED BY AIR QUALITY CONTROL COMMISSION RULE
.
(f)  "H
AZARDOUS WASTE" HAS THE MEANING SET FORTH IN SECTION
25-15-101 (6).
(g)  "M
UNICIPAL SOLID WASTE" MEANS SOLID WASTE FROM
HOUSEHOLD
, COMMUNITY, COMMERCIAL, OR INDUSTRIAL SOURCES THAT
DOES NOT CONTAIN HAZARDOUS WASTE
.
(h) (I)  "S
TATE INCENTIVE" MEANS ANY STATE-LEVEL GRANT, LOAN,
TAX CREDIT, TAX EXEMPTION, SUBSIDY, OR OTHER FINANCIAL INCENTIVE.
(II)  "S
TATE INCENTIVE" DOES NOT INCLUDE THE TAX CREDIT
ALLOWED PURSUANT TO SECTION 
39-22-556.
(2)  N
OTWITHSTANDING ANY LAW TO THE CONTRARY :
(a)  E
XCEPT AS SET FORTH IN SUBSECTION (4) OF THIS SECTION, A
COMBUSTION UNIT THAT TARGETS PLASTIC AS A FEEDSTOCK IS NOT ELIGIBLE
FOR ANY STATE INCENTIVES NOT GRANTED OR AWARDED
, OR THAT APPLY TO
INCOME TAX YEARS
, BEFORE JANUARY 1, 2025; EXCEPT THAT THIS
SUBSECTION
 (2)(a) DOES NOT APPLY TO:
(I)  O
PERATIONS TO EXCLUSIVELY TREAT SOURCE -SEPARATED
ORGANIC MATERIALS FOR THE CREATION OF COMPOST
, BIOSOLIDS, BIO-OIL,
AND BIOCHAR;
(II)  O
PERATIONS TO CONDUCT ANAEROBIC DIGESTION ;
(III)  A
IR CURTAIN INCINERATORS USED FOR WILDFIRE MITIGATION OR
INCINERATION OF THE MATERIALS LISTED IN 
40 CFR 60.2888 (b)(1) TO
(b)(4);
(IV)  U
NITS THAT COMBUST CONTRABAND OR PROHIBITED GOODS , AS
DEFINED IN 
40 CFR 60.2887 (p);
(V)  U
NITS OPERATING AS A CREMATORY INCINERATOR ;
(VI)  B
IOMASS BOILERS FIRING MATERIALS LISTED IN 40 CFR 60.2888
PAGE 3-SENATE BILL 24-150 (b)(1) TO (b)(4) OR OTHER APPROVED FUELS; OR
(VII)  PROCESSES TO PRODUCE SUSTAINABLE AVIATION FUEL , AS
DEFINED IN SECTION
 40B(d) OF THE INTERNAL REVENUE CODE , SO LONG AS
THE PROCESSES UTILIZE A PATHWAY THAT COMPLIES WITH 
ASTM D7566
AND ALL REQUIREMENTS OF THE FEDERAL "CLEAN AIR ACT", 42 U.S.C. SEC.
7401
 ET SEQ., AS AMENDED, APPLICABLE TO THE PRODUCER OF THE
SUSTAINABLE AVIATION FUEL
;
(b)  O
N AND AFTER JANUARY 1, 2025, COMBUSTION IS NOT
CONSIDERED 
"RECYCLING", "RENEWABLE ENERGY ", "CLEAN ENERGY",
"
GREEN ENERGY", "CLIMATE-FRIENDLY", "CARBON-FREE", "BIOFUEL",
"
ZERO-CARBON", OR ANY OTHER SIMILAR TERM FOR THE PURPOSE OF A
PROGRAM ESTABLISHED BY STATE LAW OR RULES
; AND
(c)  ON AND AFTER JANUARY 1, 2025, A COMBUSTION UNIT DOES NOT
MEET A 
"RENEWABLE PORTFOLIO STANDARD ", "LOW CARBON FUEL
STANDARD
", "RENEWABLE FUEL STANDARD ", OR ANY OTHER SIMILAR
STANDARD ESTABLISHED BY STATE LAW OR RULES
.
(3)  N
OTHING IN THIS SECTION PROHIBITS STATE INCENTIVES FOR :
(a)  E
NTITIES PARTICIPATING IN THE WASTE TIRE CLEANUP PROGRAM ,
AS DEFINED IN SECTION 30-20-1402 (13); OR
(b)  FEDERAL AND STATE AGENCIES AND INSTITUTIONS OF HIGHER
EDUCATION CONDUCTING RESEARCH TO IMPROVE ENVIRONMENTAL AND
HEALTH OUTCOMES OF COMBUSTION UNITS
, WHICH RESEARCH DOES NOT
INCLUDE THE OPERATION OF A COMMERCIAL
-SCALE COMBUSTION UNIT.
(4)  C
OMBUSTION UNITS THAT ARE IN EXISTENCE IN THE STATE ON OR
BEFORE 
JULY 1, 2024, ARE ELIGIBLE FOR A STATE INCENTIVE TO CONDUCT
TECHNOLOGICAL UPGRADES IF THE STATE AGENCY RESPONSIBLE FOR ISSUING
THE STATE INCENTIVE DETERMINES THAT THE STATE INCENTIVE IMPROVES
THE HEALTH AND SAFETY OF WORKERS
, PROMOTES WORKFORCE
DEVELOPMENT
, REDUCES NEGATIVE IMPACTS OF OPERATIONS OF THE
COMBUSTION UNIT
, AND ENCOURAGES INVESTMENT IN THE COMMUNITY OF
THE COMBUSTION UNIT
.
SECTION 3. In Colorado Revised Statutes, 30-20-902, amend (1)
PAGE 4-SENATE BILL 24-150 as follows:
30-20-902.  Definitions. As used in this part 9, unless the context
otherwise requires:
(1) (a)  "Solid waste-to-energy incineration system" means the use
of flammable waste material as a primary or supplemental fuel for the
conversion of heat into steam, electrical power, or any other form of energy.
(b)  "S
OLID WASTE-TO-ENERGY INCINERATION SYSTEM " INCLUDES
PYROLYSIS AND GASIFICATION PROCESSES
.
SECTION 4. In Colorado Revised Statutes, 31-15-1002, amend (1)
as follows:
31-15-1002.  Definitions. As used in this part 10, unless the context
otherwise requires:
(1) (a)  "Solid waste-to-energy incineration system" means the use
of flammable waste material as a primary or supplemental fuel for the
conversion of heat into steam, electrical power, or any other form of energy.
(b)  "S
OLID WASTE-TO-ENERGY INCINERATION SYSTEM " INCLUDES
PYROLYSIS AND GASIFICATION PROCESSES
.
SECTION 5. In Colorado Revised Statutes, 40-2-124, amend (1)(a)
introductory portion as follows:
40-2-124.  Renewable energy standards - qualifying retail and
wholesale utilities - definitions - net metering - legislative declaration
- rules. (1)  Each provider of retail electric service in the state of Colorado,
other than municipally owned utilities that serve forty thousand customers
or fewer, is a qualifying retail utility. Each qualifying retail utility, with the
exception of cooperative electric associations that have voted to exempt
themselves from commission jurisdiction pursuant to section 40-9.5-104
and municipally owned utilities, is subject to the rules established under this
article 2 by the commission. No additional regulatory authority is provided
to the commission other than that specifically contained in this section. In
accordance with article 4 of title 24, the commission shall revise or clarify
existing rules to establish the following:
PAGE 5-SENATE BILL 24-150 (a)  Definitions of eligible energy resources that can be used to meet
the standards. "Eligible energy resources" means recycled energy,
renewable energy resources, and renewable energy storage. In addition,
resources using coal mine methane and synthetic gas produced by pyrolysis
of waste materials are eligible energy resources if the commission
determines that the electricity generated by those resources is greenhouse
gas neutral. S
YNTHETIC GAS PRODUCED BY PYROLYSIS OF WASTE MATERIALS
IS NOT AN ELIGIBLE ENERGY RESOURCE
. The commission shall determine,
following an evidentiary hearing, the extent to which such electric
generation technologies utilized in an optional pricing program may be used
to comply with this standard. A fuel cell using hydrogen derived from an
eligible energy resource is also an eligible electric generation technology.
Fossil and nuclear fuels and their derivatives are not eligible energy
resources. As used in this section:
SECTION 6. In Colorado Revised Statutes, 40-3.2-108, repeal
(2)(n)(II)(B) as follows:
40-3.2-108.  Clean heat targets - legislative declaration -
definitions - plans - rules - reports. (2)  Definitions. As used in this
section, unless the context otherwise requires:
(n)  "Recovered methane" means any of the following that are
located in Colorado and meet a recovered methane protocol approved by the
air quality control commission:
(II)  Methane derived from:
(B)  The pyrolysis of municipal solid waste;
SECTION 7. Safety clause. The general assembly finds,
determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety or for appropriations for
PAGE 6-SENATE BILL 24-150 the support and maintenance of the departments of the state and state
institutions.
____________________________ ____________________________
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 7-SENATE BILL 24-150