Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 24-1175.01 Caroline Martin x5902
SENATE BILL 24-214
Senate Committees House Committees
Transportation & Energy
A BILL FOR AN ACT
C
ONCERNING THE IMPLEMENTATION OF STATE CLIMATE GOALS .101
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
.)
Section 1 of the bill creates the office of sustainability in the
department of personnel (department). The office of sustainability is
required to work with state agencies and institutions of higher education
to implement environmentally sustainable practices. The powers, duties,
and functions of the office of sustainability include:
! Providing leadership to and requiring accountability from
state agencies regarding ongoing sustainability initiatives;
! Developing baseline metrics and goals for reduction of
SENATE SPONSORSHIP
Hansen,
HOUSE SPONSORSHIP
Amabile and McCormick,
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. negative environmental impacts and tracking state agencies'
performance in achieving the goals;
! Tracking the amount of money the state saves as a result of
implementing sustainable practices;
! Seeking and applying for federal funding and other grant
opportunities that would support sustainable practices
within state agencies;
! Assisting state agencies in implementing sustainable
procurement methods and introducing options for
environmentally preferable products or services to state
agencies;
! Assisting state agencies in installing energy-efficient
equipment and fixtures;
! Assisting state agencies in meeting building performance
standards such as those administered by the Colorado
energy office;
! Coordinating and assisting in planning and constructing
state agencies' electric vehicle charging infrastructure and
ensuring utilization of such infrastructure;
! Instituting water reduction initiatives, including but not
limited to the installation of water-conserving fixtures and
plants on state property;
! Assisting state agencies in transitioning from gas-powered
to electric equipment;
! Implementing statewide waste diversion practices to
increase state agencies' recycling rates;
! Developing commuting opportunities for state employees
that reduce greenhouse gas emissions and other pollution;
! Assisting state agencies in developing training programs to
educate state employees on sustainable practices; and
! Conducting other activities as directed by the general
assembly or the governor.
The bill creates the state agency sustainability revolving fund
(revolving fund) and directs the state treasurer to transfer $540,230 from
the general fund to the revolving fund. The bill specifies that the office
of sustainability may use the money in the revolving fund for the purposes
of operating the office and replacing the state's gas- and diesel-powered
equipment located in ozone nonattainment areas as designated by the U.S.
environmental protection agency.
In addition, the bill requires the office of sustainability to review
and coordinate state agencies' applications for elective pay funding
available under the federal "Inflation Reduction Act of 2022" (act), and
to work with the office of the state controller to coordinate central
submissions of elective pay applications by advising and assisting state
agencies in submitting and centrally filing those applications and by
SB24-214
-2- providing technical assistance to state agencies on elective pay.
The bill also creates the inflation reduction act elective pay cash
fund (cash fund), which consists of money received by the department
pursuant to the elective pay provisions of the act, all of which must be
deposited into the cash fund to be used for the purposes of the office.
Section 2 specifies that the office of sustainability is a type 2 entity
under the administrative organization act.
Section 3 makes several clarifications regarding the geothermal
energy grant program (grant program), including specifying that:
! The grant program applies to both heating-only and
combined heating and cooling systems;
! At least 25% of the grant money must be awarded to
eligible entities from or projects in low-income,
disproportionately impacted, or just transition communities;
and
! The Colorado energy office may utilize grant program
money to support education, outreach, and engagement
with the general public and relevant stakeholders to
facilitate the growth of the geothermal sector and
awareness of relevant state programs in Colorado.
Section 4 extends the deadline for the energy code board to
develop a model low energy and carbon code and specifies that the model
low energy and carbon code can include appendices and resources to the
international energy conservation code.
Section 5 decreases the amount of money the Colorado energy
office can issue in grants to local governments to support their adoption
and enforcement of the 2021 international energy conservation code, an
electric ready and solar ready code, and a low energy and carbon code by
$125,000 and increases the amount the treasurer is required to transfer
into the energy fund to $275,000.
Section 6 clarifies that, for purposes of the industrial clean energy
tax credit, an industrial study includes a pre-front-end or front-end
engineering design study that meets or exceeds the standards established
by the Colorado energy office or any other industrial studies as outlined
in program standards, and that an owner includes a project developer.
Section 6 also increases the amount of the credit that can be claimed to
$8 million, and specifies that an owner that claims the industrial clean
energy tax credit cannot, for the same greenhouse gas emission reduction
improvements, claim the enterprise zone investment tax credit or receive
grant money under the industrial and manufacturing operations clean air
grant program.
Section 7 clarifies several definitions related to the tax credit for
expenditures made in connection with a geothermal energy project and
adds several definitions. Section 7 also adds tribal governments as
eligible taxpayers pursuant to the tax credit.
SB24-214
-3- Section 8 adds tribal governments as qualified entities pursuant to
the geothermal electricity generation production tax credit, and requires
the Colorado energy office to annually review and evaluate the
effectiveness of the tax credit.
Section 9 clarifies the definition of "air-source heat pump system"
pursuant to the heat pump technology and thermal energy network tax
credit and allows the Colorado energy office to review and modify more
credit amounts and create certificate maximums related to the heat pump
technology and thermal energy network tax credit.
Section 10 clarifies that certain provisions related to the clean
hydrogen tax credit are subject to rules adopted by the public utilities
commission.
Section 11 advances the deadline by which the treasurer must
repay all administrative costs to the industrial and manufacturing
operations clean air grant program cash fund, the geothermal energy grant
fund, the community access to electric bicycles cash fund, and the
electrifying school buses grant program cash fund to June 30, 2024.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add part 23 to article2
30 of title 24 as follows:3
PART 234
OFFICE OF SUSTAINABILITY5
24-30-2301. Legislative declaration. T
HE GENERAL ASSEMBLY6
HEREBY FINDS AND DECLARES THAT :7
(1) T
HE STATE SHOULD BE A LEADER IN SUSTAINABILITY AND8
SHOULD OFFER SUSTAINABLE PRACTICES TO STATE AGENCIES AS A CORE9
ADMINISTRATIVE SERVICE;10
(2) R
EDUCING THE STATE'S OPERATING AND ENERGY COSTS11
SUPPORTS A VIBRANT AND DIVERSE ECONOMY AND SAVES TAXPAYERS12
MONEY;13
(3) E
NSURING STATE COMPLIANCE WITH ENVIRONMENTAL14
MANDATES IS CRITICAL TO THE FUTURE OF OUR STATE AND OUR NATION ;15
(4) S
USTAINABLE STATE AGENCY OPERATIONS CONSERVE WATER16
SB24-214-4- AND OFFSET THE ESTIMATED FUTURE WATER NEEDS OF UP TO SEVEN1
HUNDRED FORTY THOUSAND ADDITIONAL ACRE FEET AS OUTLINED IN THE2
2023
COLORADO WATER PLAN ADOPTED BY THE COLORADO WATER3
CONSERVATION BOARD; AND4
(5) C
OORDINATING SUSTAINABLE PRACTICES IS BEST5
ACCOMPLISHED THROUGH THE CREATION OF AN OFFICE FOCUSED ON THE6
STATE'S OPERATIONS, CAPITAL CONSTRUCTION PROJECTS , AND7
PROCUREMENT.8
24- 30- 2302. Definitions. A
S USED IN THIS PART 23, UNLESS THE9
CONTEXT OTHERWISE REQUIRES :10
(1) "D
EPARTMENT" MEANS THE DEPARTMENT OF PERSONNEL .11
(2) "E
NVIRONMENTALLY PREFERABLE PRODUCTS OR SERVICES "12
MEANS PRODUCTS OR SERVICES THAT CREATE FEWER OR LESS SEVERE13
NEGATIVE IMPACTS ON THE NATURAL ENVIRONMENT WHEN COMPARED TO14
SIMILAR PRODUCTS OR SERVICES.15
(3) "S
USTAINABILITY" MEANS THE MINIMIZATION OF NEGATIVE16
IMPACTS ON THE NATURAL ENVIRONMENT , WHICH INCLUDE BUT ARE NOT17
LIMITED TO EMISSIONS OF GREENHOUSE GASES , CLIMATE CHANGE ,18
INCREASED WATER CONSUMPTION OR WATER WASTE , POLLUTION,19
NONRENEWABLE ENERGY USAGE , AND OVER-CONSUMPTION OR WASTE OF20
RESOURCES.21
(4) "S
USTAINABLE PRACTICE" MEANS A PRACTICE THAT INCREASES22
SUSTAINABILITY BY REDUCING ONE OR MORE NEGATIVE IMPACTS ON THE23
NATURAL ENVIRONMENT .24
24-30-2303. Office of sustainability - creation - duties. (1) T
HE25
OFFICE OF SUSTAINABILITY IS HEREBY CREATED IN THE DEPARTMENT . THE26
OFFICE IS A TYPE 2 ENTITY, AS DEFINED IN SECTION 24-1-105, AND27
SB24-214
-5- EXERCISES ITS POWERS AND PERFORMS ITS DUTIES AND FUNCTIONS UNDER1
THE DEPARTMENT. THE OFFICE SHALL WORK WITH STATE AGENCIES AND2
STATE INSTITUTIONS OF HIGHER EDUCATION TO IMPLEMENT SUSTAINABLE3
PRACTICES.4
(2) T
HE POWERS, DUTIES, AND FUNCTIONS OF THE OFFICE INCLUDE:5
(a) P
ROVIDING LEADERSHIP TO AND REQUIRING ACCOUNTABILITY6
FROM STATE AGENCIES REGARDING ONGOING SUSTAINABILITY7
INITIATIVES;8
(b) D
EVELOPING BASELINE METRICS AND GOALS FOR THE9
REDUCTION OF NEGATIVE ENVIRONMENTAL IMPACTS AND TRACKING STATE10
AGENCIES' PERFORMANCE TOWARD ACHIEVING THOSE GOALS ;11
(c) T
RACKING THE AMOUNT OF MONEY THE STATE SAVES AS A12
RESULT OF IMPLEMENTING SUSTAINABLE PRACTICES ;13
(d) S
EEKING AND APPLYING FOR FEDERAL FUNDING AND OTHER14
GRANT OPPORTUNITIES THAT WOULD SUPPORT STATE AGENCIES '15
SUSTAINABLE PRACTICES;16
(e) A
SSISTING STATE AGENCIES IN IMPLEMENTING SUSTAINABLE17
PROCUREMENT METHODS AND INTRODUCING OPTIONS FOR18
ENVIRONMENTALLY PREFERABLE PRODUCTS OR SERVICES TO STATE19
AGENCIES;20
(f) A
SSISTING STATE AGENCIES IN INSTALLING ENERGY-EFFICIENT21
EQUIPMENT AND FIXTURES;22
(g) A
SSISTING STATE AGENCIES IN MEETING BUILDING23
PERFORMANCE STANDARDS SUCH AS THOSE ADMINISTERED BY THE24
C
OLORADO ENERGY OFFICE;25
(h) C
OORDINATING AND ASSISTING IN PLANNING AND26
CONSTRUCTING STATE AGENCIES ' ELECTRIC VEHICLE CHARGING27
SB24-214
-6- INFRASTRUCTURE AND ENSURING UTILIZATION OF SUCH INFRASTRUCTURE ;1
(i) I
NSTITUTING WATER REDUCTION INITIATIVES , INCLUDING BUT2
NOT LIMITED TO THE INSTALLATION OF WATER-CONSERVING FIXTURES AND3
PLANTS ON STATE PROPERTY;4
(j) A
SSISTING STATE AGENCIES IN TRANSITIONING FROM5
GAS-POWERED TO ELECTRIC EQUIPMENT ;6
(k) I
MPLEMENTING STATEWIDE WASTE DIVERSION PRACTICES TO7
INCREASE STATE AGENCIES' RECYCLING RATES;8
(l) D
EVELOPING COMMUTING OPPORTUNITIES FOR STATE9
EMPLOYEES THAT REDUCE GREENHOUSE GAS EMISSIONS AND OTHER10
POLLUTION;11
(m) A
SSISTING STATE AGENCIES IN DEVELOPING TRAINING12
PROGRAMS TO EDUCATE STATE EMPL OYEES ON SUSTAINABLE PRACTICES ;13
AND14
(n) C
ONDUCTING OTHER ACTIVITIES AS DIRECTED BY THE GENERAL15
ASSEMBLY OR THE GOVERNOR .16
24-30-2304. Revolving fund - definition. (1) T
HE STATE AGENCY17
SUSTAINABILITY REVOLVING FUND , REFERRED TO IN THIS SECTION AS THE18
"
FUND", IS CREATED IN THE STATE TREASURY . THE FUND CONSISTS OF19
MONEY TRANSFERRED TO THE FUND PURS UANT TO SUBSECTION (2) OF THIS20
SECTION AND ANY OTHER MONEY THAT THE GENERAL ASSEMBLY MAY21
APPROPRIATE OR TRANSFER TO THE FUND .22
(2) O
N JULY 1, 2024, THE STATE TREASURER SHALL TRANSFER FIVE23
HUNDRED FORTY THOUSAND TWO HUNDRED THIRTY DOLLARS FROM THE24
GENERAL FUND TO THE FUND, WHICH SHALL BE ALLOCATED AS FOLLOWS :25
(a) F
OUR HUNDRED THOUSAND DOLLARS TO ASSIST IN REPLACING26
THE STATE'S GAS AND DIESEL-POWERED EQUIPMENT THAT IS LOCATED IN27
SB24-214
-7- OZONE NONATTAINMENT AREAS AS DESI GNATED BY THE U.S.1
ENVIRONMENTAL PROTECTION AGENCY ; AND2
(b) O
NE HUNDRED FORTY THOUSAND TWO HUNDRED THIRTY3
DOLLARS TO OPERATE THE OFFICE OF SUSTAINABILITY IN ACCORDANCE4
WITH THIS PART 23.5
(3) T
HE STATE TREASURER SHALL CREDIT ALL INTEREST AND6
INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE7
FUND TO THE FUND. ANY UNEXPENDED AND UNENCUMBERED MONEY8
REMAINING IN THE FUND AT THE END OF A FISCAL YEAR SHALL REMAIN IN9
THE FUND.10
(4) M
ONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE11
DEPARTMENT TO BE USED FOR THE PURPOSES SPECIFIED IN SUBSECTION (2)12
OF THIS SECTION.13
(5) T
HE DEPARTMENT MAY SOLICIT, ACCEPT, AND EXPEND GIFTS,14
GRANTS, AND DONATIONS FOR THE PURPOSES OF THIS PART 23. THE15
DEPARTMENT SHALL CREDIT ANY GIFTS , GRANTS, AND DONATIONS TO THE16
FUND.17
24-30-2305. Inflation reduction act elective pay - central18
submission of applications - cash fund - definition. (1) I
N ADDITION TO19
THE POWERS, DUTIES, AND FUNCTIONS OF THE OFFICE SPECIFIED IN20
SECTION 24-30-2303, THE OFFICE SHALL REVIEW AND COORDINATE STATE21
AGENCIES' APPLICATIONS FOR ELECTIVE PAY FUNDING AVAILABLE UNDER22
THE FEDERAL "INFLATION REDUCTION ACT OF 2022", PUB.L. 117-169, 13623
S
TAT. 1818 (2022), AND WORK WITH THE OFFICE OF THE STATE24
CONTROLLER TO COORDINATE CENTRAL SUBMISSIONS OF ELECTIVE PAY25
APPLICATIONS. THE OFFICE SHALL ADVISE AND PROVIDE TECHNICAL26
ASSISTANCE TO STATE AGENCIES ON ALL ASPECTS OF ELECTIVE PAY TO THE27
SB24-214
-8- EXTENT FEASIBLE.1
(2) (a) T
HE INFLATION REDUCTION ACT ELECTIVE PAY CASH FUND ,2
REFERRED TO IN THIS SECTION AS THE "CASH FUND", IS CREATED IN THE3
STATE TREASURY. THE CASH FUND CONSISTS OF MONEY RECEIVED BY THE4
DEPARTMENT PURSUANT TO THE ELECTIVE PAY PROVISIONS OF THE5
FEDERAL "INFLATION REDUCTION ACT OF 2022", PUB.L. 117-169, 1366
S
TAT. 1818 (2022), ALL OF WHICH MUST BE DEPOSITED INTO THE CASH7
FUND, AND ANY OTHER MONEY THAT THE GENERAL ASSEMBLY MAY8
APPROPRIATE OR TRANSFER TO THE CASH FUND .9
(b) T
HE STATE TREASURER SHALL CREDIT ALL INTEREST AND10
INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE11
CASH FUND TO THE CASH FUND. ANY UNEXPENDED AND UNENCUMBERED12
MONEY REMAINING IN THE CASH FUND AT THE END OF A FISCAL YEAR13
SHALL REMAIN IN THE CASH FUND.14
(c) M
ONEY IN THE CASH FUND IS CONTINUOUSLY APPROPRIATED15
TO THE DEPARTMENT TO BE USED FOR THE PURPOSES SPECIFIED IN THIS16
PART 23.17
(3) T
HE DEPARTMENT MAY SOLICIT, ACCEPT, AND EXPEND GIFTS,18
GRANTS, AND DONATIONS FOR THE PURPOSES SPECIFIED IN THIS PART 23.19
T
HE DEPARTMENT SHALL CREDIT ANY GIFTS , GRANTS, AND DONATIONS TO20
THE CASH FUND.21
SECTION 2. In Colorado Revised Statutes, 24-1-128, add (9) as22
follows:23
24-1-128. Department of personnel - creation. (9) T
HE OFFICE24
OF SUSTAINABILITY IS CREATED IN SECTION 24-30-2303. THE OFFICE IS A25
TYPE 2 ENTITY, AS DEFINED IN SECTION 24-1-105, AND EXERCISES ITS26
POWERS AND PERFORMS ITS DUTIES AND FUNCTIONS UNDER THE27
SB24-214
-9- DEPARTMENT OF PERSONNEL .1
SECTION 3. In Colorado Revised Statutes, 24-38.5-118, amend2
(3)(b), (4)(a) introductory portion, (4)(b)(I), and (8)(b); repeal (4)(a)(I);3
and add (8)(d) as follows:4
24-38.5-118. Geothermal energy grant program - creation -5
procedures - fund - report - definitions - legislative declaration -6
repeal. (3) Creation of grant program. There is hereby created within7
the office the geothermal energy grant program to provide grants to8
building owners, developers, local governments, geothermal installers,9
contractors, communities, gas or electric service public utilities, or other10
entities approved by the office for:11
(b) The installation of geothermal equipment for use as the12
primary heating or HEATING-ONLY OR COMBINED HEATING AND cooling13
systems in new construction or to retrofit existing buildings; or14
(4) Grants - limitations - qualifications. The grant program15
consists of three types of grants:16
(a) The single-structure geothermal grant, which is awarded to17
applicants that are constructing a new building or retrofitting an existing18
building, including a single-family or multifamily residence, and19
installing a geothermal system for use as the primary
HEATING-ONLY OR20
COMBINED heating and cooling system for the building. A single-structure21
geothermal grant is subject to the following limitations and qualifications:22
(I) A developer or geothermal installer is eligible for grants for the
23
construction or retrofitting of no more than one hundred residential24
buildings;25
(b) The community district heating grant, which is awarded to26
support ground-source, water-source, or multisource thermal systems that27
SB24-214
-10- serve more than a single building. Applicants may apply for grants for a1
scoping study, a detailed design study, projects, or a combination of these2
options. Teams consisting of building owners, geothermal installers,3
public utilities, political subdivisions of Colorado, consultants,4
developers, or other entities approved by the office are eligible to submit5
a proposal for a scoping study or a detailed design study. To qualify for6
a grant for the project, an applicant must successfully complete a study7
and show proof of a viable project. A community district heating grant is8
subject to the following limitations and qualifications:9
(I) Up to one hundred thousand dollars per project to conduct a10
scoping study to determine if a community thermal system would help11
lower greenhouse gas emissions and provide a reasonable-cost approach12
to
PRIMARY HEATING-ONLY OR COMBINED heating and cooling a group of13
buildings;14
(8) (b) The office shall award grants from the fund in accordance
15
with the following parameters: THE OFFICE SHALL AWARD AT LEAST16
TWENTY-FIVE PERCENT OF THE GRANT MONEY AWARDED FOR17
SINGLE-STRUCTURE GEOTHERMAL GRANTS TO ELIGIBLE ENTITIES FROM OR18
PROJECTS IN LOW-INCOME, DISPROPORTIONATELY IMPACTED , OR JUST19
TRANSITION COMMUNITIES, AS THOSE COMMUNITIES ARE DEFINED BY THE20
OFFICE.21
(I) Up to forty percent of the total money in the fund may be22
awarded through grants to support the development of geothermal23
electricity generation and resource development, which may include24
hydrogen generation produced from geothermal energy;25
(II) Up to eighty percent of the total money in the fund may be26
awarded as single-structure geothermal grants, and one-fourth of the grant27
SB24-214
-11- money awarded under this subsection (8)(b)(II) must be awarded to1
eligible entities from or projects in low-income, disproportionately2
impacted, or just transition communities, as those communities are3
defined by the office; and4
(III) Up to twenty-five percent of the total money in the fund may5
be awarded as community district heating grants, which may include:6
(A) Single-owner campuses;7
(B) Medical campuses;8
(C) Residential campuses;9
(D) Multi-owner nodes; and10
(E) Public or private college or university campuses.11
(d) T
HE OFFICE MAY USE GRANT PROGRAM MONEY TO SUPPORT12
EDUCATION, OUTREACH, AND ENGAGEMENT WITH THE GENERAL PUBLIC13
AND RELEVANT STAKEHOLDERS TO FACILITATE THE GROWTH OF THE14
GEOTHERMAL SECTOR IN COLORADO.15
SECTION 4. In Colorado Revised Statutes, 24-38.5-401, amend16
(6)(a), (6)(b)(I), (7), and (8)(b); and repeal (8)(c) as follows:17
24-38.5-401. Energy code board - appointment - creation -18
duties - definitions - repeal. (6) (a) Duty of the energy code board to19
adopt a model low energy and carbon code. It is the duty of the energy20
code board to develop a model low energy and carbon code on or before21
June 1, 2025
SEPTEMBER 1, 2025, for adoption by counties,22
municipalities, and state agencies.23
(b) The model low energy and carbon code developed by the24
energy code board must apply to commercial and residential buildings25
and must:26
(I) Include the more energy efficient of either the 2021 or 202427
SB24-214
-12- international energy conservation code, except as the energy code board1
may modify those international energy conservation codes pursuant to2
subsection (7) of this section, including any appendices
AND RESOURCES3
to the international energy conservation code that the energy code board4
deems appropriate;5
(7) Option to relax international energy conservation code6
appendices and resources. The energy code board may as necessary7
relax the stringency of any requirements in the international energy8
conservation code, including appendices
AND RESOURCES that it adopts9
as part of the model low energy and carbon code language it develops10
pursuant to subsection (5)
SUBSECTION (6) of this section if it deems that11
doing so is appropriate, but the energy code board shall not increase the12
stringency of any requirements in the international energy conservation13
code including appendices
AND RESOURCES that it adopts as part of the14
model low energy and carbon code language it develops pursuant to15
subsection (5)
SUBSECTION (6) of this section.16
(8) (b) If two-thirds of the energy code board fail, on or before17
April 1, 2023, to adopt any element of the model electric ready and solar18
ready code required by subsection (5) of this section, the executive19
committee shall vote on that same element on or before May 15, 2023. If20
two-thirds of the energy code board fail, on or before February 1, 202521
J
UNE 1, 2025, to adopt an element of the model low energy and carbon22
required by subsection (6) of this section, the executive committee shall23
vote on that same element on or before March 15, 2025
AUGUST 1, 2025.24
(c) If the energy code board fails, on or before April 1, 2023, to25
adopt any element of the model electric ready and solar ready code26
required by subsection (5) of this section, the executive committee shall27
SB24-214
-13- vote on that same element on or before May 15, 2023. If the energy code1
board fails, on or before February 1, 2025, to adopt an element of the2
model low energy and carbon code required by subsection (6) of this3
section, the executive committee shall vote on that same element on or4
before March 15, 2025.5
SECTION 5. In Colorado Revised Statutes, 24-38.5-403, amend6
(3)(a)(I) and (3)(c) as follows:7
24-38.5-403. Energy code training - energy code adoption -8
grant writing assistance. (3) (a) Within three days after June 2, 2022,9
the state treasurer shall transfer three million dollars from the general10
fund to the energy fund created in section 24-38.5-102.4. The Colorado11
energy office shall expend the money transferred by the general assembly12
pursuant to this subsection (3)(a) for the purposes of:13
(I) Issuing grants, not to exceed a total of two million ONE14
MILLION EIGHT HUNDRED SEVENTY -FIVE THOUSAND dollars, to local15
governments to support their adoption and enforcement of the 202116
international energy conservation code, an electric ready and solar ready17
code, and a low energy and carbon code and to cover the direct and18
indirect costs associated with issuing these grants; and19
(c) Within three days after June 2, 2022, the state treasurer shall20
transfer one hundred and fifty thousand TWO HUNDRED SEVENTY -FIVE21
THOUSAND dollars from the general fund to the energy fund created in22
section 24-38.5-102.4. The Colorado energy office shall expend the23
money transferred by the general assembly pursuant to this subsection24
(3)(c) for the costs associated with administering the energy code board25
established in section 24-38.5-401 (2).26
SECTION 6. In Colorado Revised Statutes, 39-22-551, amend27
SB24-214
-14- (2)(e) introductory portion, (2)(i), (2)(j), (3)(a)(II), and (3)(c) as follows:1
39-22-551. Industrial clean energy tax credit - tax preference2
performance statement - definitions - report - repeal. (2) Definitions.3
As used in this section, unless the context otherwise requires:4
(e) "Greenhouse gas emissions reduction improvements" means5
improvements that help to measurably reduce greenhouse gas emissions.6
"Greenhouse gas emissions reduction improvements" also means MAY7
INCLUDE one or more of the following equipment purchases,8
improvements, and retrofits:9
(i) "Industrial study" means an energy and emissions audit, a10
feasibility study,
A PRE-FRONT-END or front-end engineering design study11
that meets or exceeds the standards established by the office,
OR ANY12
OTHER INDUSTRIAL STUDIES AS OUTLINED IN PROGRAM STANDARDS13
ADOPTED BY THE OFFICE.14
(j) "Owner" means a person
OR DEVELOPER OF A PROJECT TO BE15
IMPLEMENTED AT A QUALIFIED INDUSTRIAL FACILITY subject to tax under16
this article 22 who applies for and claims the credit allowed by this17
section.18
(3) Availability of credit and amount. (a) For income tax years19
commencing on or after January 1, 2024, but prior to January 1, 2033,20
there shall be allowed a credit with respect to the income taxes imposed21
pursuant to this article 22 to the owner of a qualified industrial facility in22
an amount equal to:23
(II) The applicable percentage of the capital costs paid by the24
owner, not including the cost for design, and approved by the office for25
certified greenhouse gas emissions reduction improvements that are26
placed in service during the tax year in which the credit is claimed; except27
SB24-214
-15- that the credit must be claimed in an amount that is not less than1
seventy-five thousand dollars and does not exceed five EIGHT million2
dollars.3
(c) An owner that claims the credit allowed by this section cannot,4
claim the credit allowed by section 39-30-104 with respect to the5
greenhouse gas emissions reduction improvements or receive grant6
money under the industrial and manufacturing operations clean air grant7
program created in section 24-38.5-116 (3)(a) FOR THE SAME8
GREENHOUSE GAS EMISSION REDUCTION IMPROVEMENTS :9
(I) C
LAIM THE CREDIT ALLOWED BY SECTION 39-30-104; OR 10
(II) R
ECEIVE GRANT MONEY UNDER THE I NDUSTRIAL AND11
MANUFACTURING OPERATIONS CLEAN AIR GRANT PROGRAM CREATED IN12
SECTION 24-38.5-116 (3)(a).13
SECTION 7. In Colorado Revised Statutes, 39-22-552, amend14
(1)(a), (2)(a)(I), (2)(a)(II), (2)(e), (2)(f) introductory portion, (2)(f)(VIII),15
(2)(f)(IX), (2)(g), (3)(a), (4)(a)(I), (4)(c)(I)(B), (4)(c)(II)(C), (4)(e), (5)16
introductory portion, and (5)(a); repeal (3)(b); and add (2)(b.5),17
(2)(f)(X), (2)(f.5), (2)(f.7), (2)(h), (2)(i), and (2)(j) as follows:18
39-22-552. Tax credit for expenditures made in connection19
with a geothermal energy project - tax preference performance20
statement - definitions - repeal. (1) (a) In accordance with section21
39-21-304(1), which requires each bill that creates a new tax expenditure22
to include a tax preference performance statement as part of a statutory23
legislative declaration, the general assembly finds and declares that the24
purpose of the tax credit provided in this section is to induce certain25
designated behavior by taxpayers and to provide a reduction in income26
tax liability for certain businesses or individuals by providing a financial27
SB24-214
-16- incentive for the development of THERMAL ENERGY NETWORKS , electricity1
generation from geothermal sources,
AND GEOTHERMAL MARKET2
ACCELERATION INITIATIVES.3
(2) Definitions. As used in this section, unless the context4
otherwise requires:5
(a) (I) "Applicable amount" means, except as provided in6
subsection (2)(a)(II) of this section, an amount of tax credit not to exceed
7
thirty percent AND CERTIFICATE MAXIMUM DETERMINED BY THE OFFICE of8
a qualified expenditure by an eligible taxpayer that is allowed pursuant to9
this section as set by the office in accordance with subsection (4)(c) of10
this section.11
(II) The office may, on a case-by-case basis, determine that the12
applicable amount may be increased to an amount not to exceed fifty13
percent of a qualified expenditure by an eligible taxpayer if the office14
determines that a geothermal energy project has significant potential to15
result in geothermal electricity production or technological demonstration16
of geothermal electricity production IF THE OFFICE DETERMINES THAT A17
GEOTHERMAL ENERGY PROJECT HAS A SIGNIFICANT BENEFIT TO THE18
PUBLIC INTEREST.19
(b.5) "A
PPROVED GEOTHERMAL MARKET ACCELERATION20
INITIATIVE" MEANS A GEOTHERMAL MARKET ACCELERATION INITIATIVE21
THAT HAS BEEN APPROVED TO RECEIVE QUALIFIED EXPENDITURES BY THE22
OFFICE PURSUANT TO THE STANDARDS DEVELOPED BY THE OFFICE IN23
ACCORDANCE WITH SUBSECTION (5) OF THIS SECTION.24
(e) "Eligible taxpayer" means a person engaged in a trade or
25
business that is subject to tax pursuant to this article 22, or a person or26
political subdivision of this state that is exempt from tax pursuant to27
SB24-214
-17- section 39-22-112 (1), that makes a qualified expenditure ANY OF THE1
FOLLOWING PEOPLE OR ENTITIES THAT MAKE A QUALIFIED EXPENDITURE :2
(I) A
PERSON ENGAGED IN A TRADE OR BUSINESS THAT IS SUBJECT3
TO TAX PURSUANT TO THIS ARTICLE 22;4
(II) A
PERSON OR POLITICAL SUBDIVISION OF THIS STATE THAT IS5
EXEMPT FROM TAX PURSUANT TO SECTION 39-22-112 (1); OR6
(III) A
TRIBAL GOVERNMENT.7
(f) "Geothermal energy
ELECTRICITY project" or "project" means8
a project in the state that is intended to evaluate and develop a geothermal9
resource for the purpose of electricity production, that meets the standards10
developed pursuant to subsection (5) of this section, and that involves any11
of the following:12
(VIII) Coproduction of geothermal energy; or ENERGY INCLUDING13
FOR INDUSTRIAL USES OR THERMAL ENERGY NETWORKS ;14
(IX) Power generation equipment;
OR15
(X) S
TUDIES TO IDENTIFY AND EXPLORE RESOURCES THAT MAY BE16
SUITABLE FOR GEOTHERMAL ELECTRICITY GENERATION AND MAY INCLUDE17
HYDROGEN GENERATION OR UTILIZATION OF DIRECT AIR CAPTURE18
TECHNOLOGY.19
(f.5) "G
EOTHERMAL ENERGY PROJECT " MEANS A GEOTHERMAL20
ELECTRICITY PROJECT, THERMAL ENERGY NETWORK , OR A THERMAL21
ENERGY NETWORK STUDY .22
(f.7) "G
EOTHERMAL MARKET ACCELERATION INITIATIVE " MEANS23
A STRATEGIC INITIATIVE, INCENTIVE, OR PROJECT THAT IS INTENDED TO24
REDUCE BARRIERS TO THE EMERGING GEOTHERMAL ELECTRICITY AND25
THERMAL MARKETS, THAT MEETS THE STANDARDS DEVELOPED PURSUANT26
TO SUBSECTION (5) OF THIS SECTION, AND THAT MAY INVOLVE ANY OF THE27
SB24-214
-18- FOLLOWING:1
(I) G
EOTHERMAL WORKFORCE TRAINING , TRANSITION, AND2
RETENTION;3
(II) A
PPRENTICESHIP OR ACADEMIC TRAINING PROGRAMS ;4
(III) A
SSISTANCE FOR OBTAINING CRITICAL PROJECT EQUIPMENT ,5
ESPECIALLY FOR RURAL OR ISOLATED REGIONS OF THE STATE ;6
(IV) O
UTREACH, EDUCATION, AND FACILITATION OF INDUSTRY OR7
REGIONAL DIALOGUES;8
(V) R
EDUCING FUNDING GAPS FOR ADOPTING GEOTHERMAL9
TECHNOLOGIES IN VULNERABLE COMMUNITIES ; OR10
(VI) O
THER INITIATIVES AS DEEMED STRATEGIC BY THE OFFICE11
THROUGH STAKEHOLDER COLLABORATION .12
(g) "Qualified expenditure" means the total monetary cost13
approved by the office and expended on or after January 1, 2024, but14
before January 1, 2033, by an eligible taxpayer in connection with an15
approved geothermal energy project
OR APPROVED GEOTHERMAL MARKET16
ACCELERATION INITIATIVE in the tax year for which the credit allowed in17
this section is claimed.18
(h) "T
HERMAL ENERGY NETWORK " HAS THE SAME MEANING AS SET19
FORTH IN SECTION 39-22-554 (2)(n).20
(i) "T
HERMAL ENERGY NETWORK STUDY " MEANS AN ENERGY AND21
EMISSIONS SCOPING STUDY, A FEASIBILITY STUDY, AN INVESTMENT GRADE22
ENERGY AUDIT, A DETAILED ENGINEERING DESIGN, OR A COMBINATION OF23
THESE OPTIONS THAT MEETS OR EX CEEDS THE STANDARDS ESTABLISHED24
BY THE OFFICE.25
(j) "T
RIBAL GOVERNMENT" MEANS A FEDERALLY RECOGNIZED26
I
NDIAN TRIBE, INCLUDING ITS BUSINESS OPERATIONS AND WHOLLY-OWNED27
SB24-214
-19- ENTITIES, WITH RESERVATION LANDS WITHIN THE STATE OF COLORADO OR1
OPERATING WITHIN THE STATE.2
(3) (a) For income tax years commencing on or after January 1,3
2024, but before January 1, 2033, an eligible taxpayer that makes a4
qualified expenditure is allowed a credit against the tax imposed under5
this article 22 in the applicable amount. and subject to the limitations set6
forth in subsection (3)(b) of this section.7
(b) An eligible taxpayer is not allowed a tax credit pursuant to this8
section in an aggregate amount of more than five million dollars in tax9
credits for all income tax years for which the tax credit may be claimed10
pursuant to this section per approved geothermal energy project.11
(4) (a) An eligible taxpayer shall submit an application in a form12
and manner determined by the office for a tax credit certificate for the13
credit allowed in this section. The application must include:14
(I) Information sufficient for the office to evaluate the geothermal15
energy project
OR GEOTHERMAL MARKET ACCELERATION INITIATIVE for16
which the eligible taxpayer proposes making an expenditure and to17
approve the project if the project has not been previously approved by the18
office;19
(c) (I) (B) Based upon the totality of the factors set forth in20
subsection (4)(d) of this section and based on considerations required for21
geothermal energy projects
OR GEOTHERMAL MARKET ACCELERATION22
INITIATIVES as set forth in subsection (5) of this section, which the office23
may weigh equally or differently, the office shall determine an applicable24
amount of credit that may be reserved for the benefit of the eligible25
taxpayer which may be all, part, or none of the credit amount requested26
in the eligible taxpayer's application. except that the office shall not
27
SB24-214
-20- reserve an amount in excess of the limitations set forth in subsection1
(3)(b) of this section, and the aggregate amount of credits reserved for all2
owners must not exceed thirty-five million dollars for all taxpayers in all3
years the credit is allowed4
(II) (C) If the office reserves less than the full amount of credit5
requested by the taxpayer, the taxpayer may submit a new application for6
the remaining balance. up to the limitation of the credit set forth in7
subsection (3)(b) of this section8
(e) The reservation of tax credits does not entitle an eligible9
taxpayer to an issuance of any credits until the eligible taxpayer provides10
the office with any documentation required by the office and a cost11
certification of the expenditure made in connection with an approved12
geothermal energy project
OR GEOTHERMAL MARKET ACCELERATION13
INITIATIVE during the tax year in which the reservation is approved. The14
cost certification must be audited by a licensed public accountant that is15
not affiliated with the eligible taxpayer. The office shall review the cost16
certification to verify that it satisfies the information provided in the17
eligible taxpayer's application. If the office determines that the eligible18
taxpayer made a qualified expenditure, the office shall issue a tax credit19
certificate in the applicable amount.20
(5) The office shall develop standards for the implementation of21
the tax credit allowed pursuant to this section. Any standards developed22
by the office must be posted on the office's website. At a minimum, the23
standards must provide for the evaluation and approval of geothermal24
energy projects
OR GEOTHERMAL MARKET ACCELERATION INITIATIVES and25
require the office to consider whether the project:26
(a) Demonstrates technology to further the adoption of clean, firm27
SB24-214
-21- carbon-free electricity OR HEATING OR COOLING derived from geothermal1
energy in the state;2
SECTION 8. In Colorado Revised Statutes, 39-22-553, amend3
(2)(c) and (3); and add (2)(d) and (3.5) as follows:4
39-22-553. Geothermal electricity generation production tax5
credit - tax preference performance statement - definitions - repeal.6
(2) Definitions. As used in this section, unless the context otherwise7
requires:8
(c) "Qualified entity" means a person engaged in a trade or9
business that is subject to tax pursuant to this article 22 or a person or10
political subdivision of this state that is exempt from tax pursuant to11
section 39-22-112 (1), either of which produces electricity derived from12
geothermal energy for sale or for the person's or political subdivision's13
own use ANY OF THE FOLLOWING PEOPLE OR ENTITIES THAT PR ODUCE14
ELECTRICITY DERIVED FROM GEOTHERMAL ENERGY FOR SALE OR USE :15
(I) A
PERSON ENGAGED IN A TRADE OR BUSINESS THAT IS SUBJECT16
TO TAX PURSUANT TO THIS ARTICLE 22;17
(II) A
PERSON OR POLITICAL SUBDIVISION OF THIS STATE THAT IS18
EXEMPT FROM TAX PURSUANT TO SECTION 39-22-112 (1); OR19
(III)
A TRIBAL GOVERNMENT.20
(d) "T
RIBAL GOVERNMENT" MEANS A FEDERALLY RECOGNIZED21
I
NDIAN TRIBE, INCLUDING ITS BUSINESS OPERATIONS AND WHOLLY -OWNED22
ENTITIES, WITH RESERVATION LANDS WITHIN THE STATE OF COLORADO OR23
OPERATING WITHIN THE STATE.24
(3) For income tax years commencing on or after January 1, 2024,25
but before January 1, 2033, a qualified entity is allowed a credit against26
the income taxes imposed by this article 22 in an amount equal to three27
SB24-214
-22- one-thousandths of a dollar per kilowatt hour of geothermal electricity1
that is produced by the qualified entity in the state in the tax year. In order2
to claim the credit, the qualified entity shall apply for and receive a tax3
credit certificate from the office pursuant to subsection (4) of this section.4
except that the office may not issue a tax credit certificate to a qualified5
entity totaling more than one million dollars per income tax year.6
(3.5) T
HE OFFICE SHALL ANNUALLY REVIEW AND EVALUATE THE7
EFFECTIVENESS OF THE TAX CREDIT AND MAY MODIFY THE AMOUNTS SET8
FORTH IN SUBSECTION (3) OF THIS SECTION. THE OFFICE SHALL MAINTAIN9
THE CURRENT APPLICABLE TAX CREDIT AND ANY CERTIFICATE MAXIMUM10
ON ITS WEBSITE AND SHALL PROVIDE THE APPLICABLE TAX CREDIT AND11
CERTIFICATE MAXIMUM IN WRITING TO THE DEPARTMENT NO LATER THAN12
D
ECEMBER 31, 2024, AND EACH DECEMBER 31 THEREAFTER THROUGH13
D
ECEMBER 31, 2031.14
SECTION 9. In Colorado Revised Statutes, 39-22-554, amend15
(2)(a)(I)(A), (2)(a)(II), (3)(d)(II), and (3)(e); and repeal (2)(a)(I)(B) as16
follows:17
39-22-554. Heat pump technology and thermal energy18
network tax credit - tax preference performance statement -19
definitions - repeal. (2) Definitions. As used in this section, unless the20
context otherwise requires:21
(a) (I) "Air-source heat pump system" means a system that:22
(A) Is certified pursuant to the federal environmental protection23
agency's energy star program;
AND24
(B) Has a variable speed compressor; and
25
(II) "Air-source heat pump system" may include supplemental26
heat so long as
THE AIR-SOURCE HEAT PUMP IS USED AS THE PRIMARY27
SB24-214
-23- SOURCE OF A BUILDING'S HEAT AND IS DESIGNED TO SUPPLY AT LEAST1
EIGHTY PERCENT OF TOTAL ANNUAL HEATING FOR THE BUILDING .2
(A) The air-source heat pump is used as the primary source of a3
building's heat and is designed to supply at least eighty percent of total4
annual heating for the building; and5
(B) The system is capable of distributing produced heat to all6
conditioned areas of the building.7
(3) (d) Notwithstanding the amounts set forth in subsection (3)(c)8
of this section, the amount of the credit allowed by this section may be9
modified as follows:10
(II) For a nonresidential building, the amount of the credit is the11
amount of the credit permitted pursuant to subsection (3)(c) of this12
section multiplied by the number of increments of four tons of heating;13
capacity up to a maximum of one hundred tons and14
(e) The office shall annually review and evaluate the effectiveness15
of the tax credits and may modify the amounts set forth in subsection16
(3)(c) SUBSECTIONS (3)(c) AND (3)(d) of this section AND MAY CREATE17
CERTIFICATE MAXIMUMS.18
SECTION 10. In Colorado Revised Statutes, 39-22-557, amend19
(2)(d) and (3)(c)(I) as follows:20
39-22-557. Clean hydrogen tax credit - qualified uses - tax21
preference performance statement - definitions - legislative22
declaration - repeal. (2) As used in this section, unless the context23
otherwise requires:24
(d) "Lifecycle greenhouse gas emissions rate" means lifecycle25
greenhouse gas emissions, as defined in 26 U.S.C. sec. 45V (c)(1)(A), as26
amended, measured in accordance with any applicable federal internal27
SB24-214
-24- revenue service regulations or guidance, subject to the rules adopted by1
the public utilities commission pursuant to section 40-2-138 (3)(a)(I)2
SECTION 40-2-138 (3)(a)(II).3
(3) (c) (I) For income tax years commencing on and after January4
1, 2024, but before January 1, 2026, and not before the public utilities5
commission adopts rules pursuant to section 40-2-138 (3)(a)(I), SECTION6
40-2-138 (3)(a)(II), the office shall not issue a tax credit certificate to a7
taxpayer indicating eligibility for a tax credit for an amount exceeding8
one million dollars in a tax year.9
SECTION 11. In Colorado Revised Statutes, 39-29-108, amend10
(2)(e)(II) as follows:11
39-29-108. Allocation of severance tax revenues - definitions12
- repeal. (2) (e) (II) The state treasurer shall credit a portion of the13
discrete increased amount of severance tax for oil and gas production in14
the amount attributable to administrative costs to the respective cash15
funds so that all administrative costs are repaid to the respective cash16
funds on or before July 1, 2025 JUNE 30, 2024.17
SECTION 12. Safety clause. The general assembly finds,18
determines, and declares that this act is necessary for the immediate19
preservation of the public peace, health, or safety or for appropriations for20
the support and maintenance of the departments of the state and state21
institutions.22
SB24-214
-25-