Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 24-1175.01 Caroline Martin x5902
SENATE BILL 24-214
Senate Committees House Committees
Transportation & Energy
Appropriations
A BILL FOR AN ACT
C
ONCERNING THE IMPLEMENTATION OF STATE CLIMATE GOALS , AND,
101
IN CONNECTION THEREWITH , MAKING AND REDUCING AN102
APPROPRIATION.103
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:
SENATE
3rd Reading Unamended
May 3, 2024
SENATE
Amended 2nd Reading
May 2, 2024
SENATE SPONSORSHIP
Hansen and Cutter, Bridges, Buckner, Exum, Jaquez Lewis, Michaelson Jenet, Priola
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. ! Providing leadership to and requiring accountability from
state agencies regarding ongoing sustainability initiatives;
! Developing baseline metrics and goals for reduction of
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
214
-2- 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
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
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-3- 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.
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
214-4- MANDATES IS CRITICAL TO THE FUTURE OF OUR STATE AND OUR NATION ;1
(4) S
USTAINABLE STATE AGENCY OPERATIONS CONSERVE WATER2
AND OFFSET THE ESTIMATED FUTURE WATER NEEDS OF UP TO SEVEN3
HUNDRED FORTY THOUSAND ADDITIONAL ACRE FEET AS OUTLINED IN THE4
2023
COLORADO WATER PLAN ADOPTED BY THE COLORADO WATER5
CONSERVATION BOARD; AND6
(5) C
OORDINATING SUSTAINABLE PRACTICES IS BEST7
ACCOMPLISHED THROUGH THE CREATION OF AN OFFICE FOCUSED ON THE8
STATE'S OPERATIONS, CAPITAL CONSTRUCTION PROJECTS , AND9
PROCUREMENT.10
24- 30- 2302. Definitions. A
S USED IN THIS PART 23, UNLESS THE11
CONTEXT OTHERWISE REQUIRES :12
(1) "D
EPARTMENT" MEANS THE DEPARTMENT OF PERSONNEL .13
(2) "E
NVIRONMENTALLY PREFERABLE PRODUCTS OR SERVICES "14
MEANS PRODUCTS OR SERVICES THAT CREATE FEWER OR LESS SEVERE15
NEGATIVE IMPACTS ON THE NATURAL ENVIRONMENT WHEN COMPARED TO16
SIMILAR PRODUCTS OR SERVICES.17
(3) "S
USTAINABILITY" MEANS THE MINIMIZATION OF NEGATIVE18
IMPACTS ON THE NATURAL ENVIRONMENT , WHICH INCLUDE BUT ARE NOT19
LIMITED TO EMISSIONS OF GREENHOUSE GASES , CLIMATE CHANGE,20
INCREASED WATER CONSUMPTION OR WATER WASTE , POLLUTION,21
NONRENEWABLE ENERGY USAGE , AND OVER-CONSUMPTION OR WASTE OF22
RESOURCES.23
(4) "S
USTAINABLE PRACTICE" MEANS A PRACTICE THAT INCREASES24
SUSTAINABILITY BY REDUCING ONE OR MORE NEGATIVE IMPACTS ON THE25
NATURAL ENVIRONMENT .26
24-30-2303. Office of sustainability - creation - duties. (1) T
HE27
214
-5- OFFICE OF SUSTAINABILITY IS HEREBY CREATED IN THE DEPARTMENT . THE1
OFFICE IS A TYPE 2 ENTITY, AS DEFINED IN SECTION 24-1-105, AND2
EXERCISES ITS POWERS AND PERFORMS ITS DUTIES AND FUNCTIONS UNDER3
THE DEPARTMENT. THE OFFICE SHALL WORK WITH STATE AGENCIES AND4
STATE INSTITUTIONS OF HIGHER EDUCATION TO IMPLEMENT SUSTAINABLE5
PRACTICES.6
(2) T
HE POWERS, DUTIES, AND FUNCTIONS OF THE OFFICE INCLUDE:7
(a) P
ROVIDING LEADERSHIP TO AND REQUIRING ACCOUNTABILITY8
FROM STATE AGENCIES REGARDING ONGOING SUSTAINABILITY9
INITIATIVES;10
(b) D
EVELOPING BASELINE METRICS AND GOALS FOR THE11
REDUCTION OF NEGATIVE ENVIRONMENTAL IMPACTS AND TRACKING STATE12
AGENCIES' PERFORMANCE TOWARD ACHIEVING THOSE GOALS ;13
(c) T
RACKING THE AMOUNT OF MONEY THE STATE SAVES AS A14
RESULT OF IMPLEMENTING SUSTAINABLE PRACTICES ;15
(d) S
EEKING AND APPLYING FOR FEDERAL FUNDING AND OTHER16
GRANT OPPORTUNITIES THAT WOULD SUPPORT STATE AGENCIES '17
SUSTAINABLE PRACTICES;18
(e) A
SSISTING STATE AGENCIES IN IMPLEMENTING SUSTAINABLE19
PROCUREMENT METHODS AND INTR ODUCING OPTIONS FOR20
ENVIRONMENTALLY PREFERABLE PR ODUCTS OR SERVICES TO STATE21
AGENCIES;22
(f) A
SSISTING STATE AGENCIES IN INSTALLING ENERGY-EFFICIENT23
EQUIPMENT AND FIXTURES;24
(g) A
SSISTING STATE AGENCIES IN MEETING BUILDING25
PERFORMANCE STANDARDS SUCH AS THOSE ADMINISTERED BY THE26
C
OLORADO ENERGY OFFICE;27
214
-6- (h) COORDINATING AND ASSISTING IN PLANNING AND1
CONSTRUCTING STATE AGENCIES ' ELECTRIC VEHICLE CHARGING2
INFRASTRUCTURE AND ENSURING UTILIZATION OF SUCH INFRASTRUCTURE ;3
(i) I
NSTITUTING WATER REDUCTION INITIATIVES , INCLUDING BUT4
NOT LIMITED TO:
5
(I) T
HE INSTALLATION OF WATER -CONSERVING FIXTURES AND
6
WATER-WISE PLANTS ON STATE PROPERTY;7
(II) T
HE CONVERSION OF NONNATIVE GRASSES TO XERISCAPE IN
8
ACCORDANCE WITH THE PRINCIPLES OF WATER -WISE LANDSCAPING, WITH9
AN EMPHASIS ON NATIVE PLANTS, SET FORTH IN SECTION 37-60-135 (2)(l);10
AND11
(III) T
HE REDUCTION OF NONFUNCTIONAL TURF AND
12
ENCOURAGEMENT OF WATER -EFFICIENT SUSTAINABLE LANDSCAPING13
PRACTICES AT STATE FACILITIES;14
(j) A
SSISTING STATE AGENCIES IN TRANSITIONING FROM15
GAS-POWERED TO ELECTRIC EQUIPMENT ;16
(k) I
MPLEMENTING STATEWIDE WASTE DIVERSION PRACTICES TO17
INCREASE STATE AGENCIES' RECYCLING RATES;18
(l) D
EVELOPING COMMUTING OPPORTUNITIES FOR STATE19
EMPLOYEES THAT REDUCE GREENHOUSE GAS EMISSIONS AND OTHER20
POLLUTION;21
(m) A
SSISTING STATE AGENCIES IN DEVELOPING TRAINING22
PROGRAMS TO EDUCATE STATE EMPL OYEES ON SUSTAINABLE PRACTICES ;23
AND24
(n) C
ONDUCTING OTHER ACTIVITIES AS DIRECTED BY THE GENERAL25
ASSEMBLY OR THE GOVERNOR .26
24-30-2304. Revolving fund - definition. (1) T
HE STATE AGENCY27
214
-7- SUSTAINABILITY REVOLVING FUND , REFERRED TO IN THIS SECTION AS THE1
"
FUND", IS CREATED IN THE STATE TREASURY . THE FUND CONSISTS OF2
MONEY TRANSFERRED TO THE FUND PURSUANT TO SUBSECTION (2) OF THIS3
SECTION AND ANY OTHER MONEY THAT THE GENERAL ASSEMBLY MAY4
APPROPRIATE OR TRANSFER TO THE FUND .5
(2) O
N JULY 1, 2024, AND ON JULY 1 EACH YEAR THEREAFTER, THE
6
STATE TREASURER SHALL TRANSFER FOUR HUNDRED THOUSAND DOLLARS7
FROM THE GENERAL FUND TO THE FUND . THE OFFICE OF SUSTAINABILITY8
SHALL ALLOCATE THE MONEY IN THE FUND TO ASSIST IN REPLACING THE9
STATE'S GAS AND DIESEL-POWERED EQUIPMENT THAT IS LOCATED IN10
OZONE NONATTAINMENT AREAS AS DESI GNATED BY THE U.S.11
ENVIRONMENTAL PROTECTION AGENCY WITH EQUIVALENT ELECTRIC12
EQUIPMENT, AND TO OPERATE THE OFFICE OF SUSTAINABILITY IN13
ACCORDANCE WITH THIS PART 23. 14
(3) T
HE STATE TREASURER SHALL CREDIT ALL INTEREST AND15
INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE16
FUND TO THE FUND. ANY UNEXPENDED AND UNENCUMBERED MONEY17
REMAINING IN THE FUND AT THE END OF A FISCAL YEAR SHALL REMAIN IN18
THE FUND.19
(4) M
ONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE20
DEPARTMENT TO BE USED FOR THE PURPOSES SPECIFIED IN SUBSECTION (2)21
OF THIS SECTION.22
(5) T
HE DEPARTMENT MAY SOLICIT, ACCEPT, AND EXPEND GIFTS,23
GRANTS, AND DONATIONS FOR THE PURPOSES OF THIS PART 23. THE24
DEPARTMENT SHALL CREDIT ANY GIFTS , GRANTS, AND DONATIONS TO THE25
FUND.26
24-30-2305. Inflation reduction act elective pay - central27
214
-8- submission of applications - cash fund - definition. (1) I N ADDITION TO1
THE POWERS, DUTIES, AND FUNCTIONS OF THE OFFICE SPECIFIED IN2
SECTION 24-30-2303, THE OFFICE SHALL REVIEW AND COORDINATE STATE3
AGENCIES' APPLICATIONS FOR ELECTIVE PAY FUNDING AVAILABLE UNDER4
THE FEDERAL "INFLATION REDUCTION ACT OF 2022", PUB.L. 117-169, 1365
S
TAT. 1818 (2022), AND WORK WITH THE OFFICE OF THE STATE6
CONTROLLER TO COORDINATE CENTRAL SUBMISSIONS OF ELECTIVE PAY7
APPLICATIONS. THE OFFICE SHALL ADVISE AND PROVIDE TECHNICAL8
ASSISTANCE TO STATE AGENCIES ON ALL ASPECTS OF ELECTIVE PAY TO THE9
EXTENT FEASIBLE.10
(2) (a) T
HE INFLATION REDUCTION ACT ELECTIVE PAY CASH FUND ,11
REFERRED TO IN THIS SECTION AS THE "CASH FUND", IS CREATED IN THE12
STATE TREASURY. THE CASH FUND CONSISTS OF MONEY RECEIVED BY THE13
DEPARTMENT PURSUANT TO THE ELECTIVE PAY PROVISIONS OF THE14
FEDERAL "INFLATION REDUCTION ACT OF 2022", PUB.L. 117-169, 13615
S
TAT. 1818 (2022), ALL OF WHICH MUST BE DEPOSITED INTO THE CASH16
FUND, AND ANY OTHER MONEY THAT THE GENERAL ASSEMBLY MAY17
APPROPRIATE OR TRANSFER TO THE CASH FUND .18
(b) T
HE STATE TREASURER SHALL CREDIT ALL INTEREST AND19
INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE20
CASH FUND TO THE CASH FUND. ANY UNEXPENDED AND UNENCUMBERED21
MONEY REMAINING IN THE CASH FUND AT THE END OF A FISCAL YEAR22
SHALL REMAIN IN THE CASH FUND.23
(c) M
ONEY IN THE CASH FUND IS CONTINUOUSLY APPROPRIATED24
TO THE DEPARTMENT TO BE USED FOR THE PURPOSES SPECIFIED IN THIS25
PART 23.26
(3) T
HE DEPARTMENT MAY SOLICIT, ACCEPT, AND EXPEND GIFTS,27
214
-9- GRANTS, AND DONATIONS FOR THE PURPOSES SPECIFIED IN THIS PART 23.1
T
HE DEPARTMENT SHALL CREDIT ANY GIFTS , GRANTS, AND DONATIONS TO2
THE CASH FUND.3
SECTION 2. In Colorado Revised Statutes, 24-1-128, add (9) as4
follows:5
24-1-128. Department of personnel - creation. (9) T
HE OFFICE6
OF SUSTAINABILITY IS CREATED IN SECTION 24-30-2303. THE OFFICE IS A7
TYPE 2 ENTITY, AS DEFINED IN SECTION 24-1-105, AND EXERCISES ITS8
POWERS AND PERFORMS ITS DUTIES AND FUNCTIONS UNDER THE9
DEPARTMENT OF PERSONNEL .10
SECTION 3. In Colorado Revised Statutes, 24-38.5-116, amend
11
(6)(b)(II) as follows:12
24-38.5-116. Industrial and manufacturing operations clean13
air grant program - creation - eligibility - fund created - gifts, grants,14
or donations - transfer - legislative declaration - definitions -15
reporting - repeal. (6) (b) (II) For state fiscal years 2023-24 and16
2024-25, the office and, subject to annual appropriation, the department17
of revenue may expend money from the fund for the administration and18
implementation of the industrial clean energy tax credit created in section19
39-22-551 and the tax credit for sustainable aviation fuel production20
facility created in section 39-22-556. The office shall keep an accounting21
of all money expended from the fund pursuant to this subsection (6)(b)(II)22
for purposes of calculating the repayment of the administrative costs23
required by section 39-29-108 (2)(e)(II) SECTION 24-38.5-120 (3).24
SECTION 4. In Colorado Revised Statutes, 24-38.5-118, amend25
(3)(b), (4)(a) introductory portion, (4)(b)(I), (7)(d), and (8)(b); repeal26
(4)(a)(I); and add (8)(d) as follows:27
214
-10- 24-38.5-118. Geothermal energy grant program - creation -1
procedures - fund - report - definitions - legislative declaration -2
repeal. (3) Creation of grant program. There is hereby created within3
the office the geothermal energy grant program to provide grants to4
building owners, developers, local governments, geothermal installers,5
contractors, communities, gas or electric service public utilities, or other6
entities approved by the office for:7
(b) The installation of geothermal equipment for use as the8
primary heating or HEATING-ONLY OR COMBINED HEATING AND cooling9
systems in new construction or to retrofit existing buildings; or10
(4) Grants - limitations - qualifications. The grant program11
consists of three types of grants:12
(a) The single-structure geothermal grant, which is awarded to13
applicants that are constructing a new building or retrofitting an existing14
building, including a single-family or multifamily residence, and15
installing a geothermal system for use as the primary
HEATING-ONLY OR16
COMBINED heating and cooling system for the building. A single-structure17
geothermal grant is subject to the following limitations and qualifications:18
(I) A developer or geothermal installer is eligible for grants for the
19
construction or retrofitting of no more than one hundred residential20
buildings;21
(b) The community district heating grant, which is awarded to22
support ground-source, water-source, or multisource thermal systems that23
serve more than a single building. Applicants may apply for grants for a24
scoping study, a detailed design study, projects, or a combination of these25
options. Teams consisting of building owners, geothermal installers,26
public utilities, political subdivisions of Colorado, consultants,27
214
-11- developers, or other entities approved by the office are eligible to submit1
a proposal for a scoping study or a detailed design study. To qualify for2
a grant for the project, an applicant must successfully complete a study3
and show proof of a viable project. A community district heating grant is4
subject to the following limitations and qualifications:5
(I) Up to one hundred thousand dollars per project to conduct a6
scoping study to determine if a community thermal system would help7
lower greenhouse gas emissions and provide a reasonable-cost approach8
to
PRIMARY HEATING-ONLY OR COMBINED heating and cooling a group of9
buildings;10
(7) Fund. (d) For state fiscal years 2023-24 and 2024-25, the
11
office and, subject to annual appropriation, the department of revenue12
may expend money in the fund for the administration and implementation13
of the tax credit for expenditures made in connection with a geothermal14
energy project created in section 39-22-552, the geothermal electricity15
generation production tax credit created in section 39-22-553, and the16
heat pump technology and thermal energy network tax credit created in17
section 39-22-554. The office shall keep an accounting of all money18
expended from the fund pursuant to this subsection (7)(d) for purposes of19
calculating the repayment of the administrative costs required by section20
39-29-108 (2)(e)(II) SECTION 24-38.5-120 (3).21
(8) (b) The office shall award grants from the fund in accordance22
with the following parameters: THE OFFICE SHALL AWARD AT LEAST23
TWENTY-FIVE PERCENT OF THE GRANT MONEY AWARDED FOR24
SINGLE-STRUCTURE GEOTHERMAL GRANTS TO ELIGIBLE ENTITIES FROM OR25
PROJECTS IN LOW-INCOME, DISPROPORTIONATELY IMPACTED , OR JUST26
TRANSITION COMMUNITIES. 27
214
-12- (I) Up to forty percent of the total money in the fund may be1
awarded through grants to support the development of geothermal2
electricity generation and resource development, which may include3
hydrogen generation produced from geothermal energy;4
(II) Up to eighty percent of the total money in the fund may be5
awarded as single-structure geothermal grants, and one-fourth of the grant6
money awarded under this subsection (8)(b)(II) must be awarded to7
eligible entities from or projects in low-income, disproportionately8
impacted, or just transition communities, as those communities are9
defined by the office; and10
(III) Up to twenty-five percent of the total money in the fund may11
be awarded as community district heating grants, which may include:12
(A) Single-owner campuses;13
(B) Medical campuses;14
(C) Residential campuses;15
(D) Multi-owner nodes; and16
(E) Public or private college or university campuses.17
(d) T
HE OFFICE MAY USE GRANT PROGRAM MONEY TO SUPPORT18
EDUCATION, OUTREACH, AND ENGAGEMENT WITH THE GENERAL PUBLIC19
AND RELEVANT STAKEHOLDERS TO FACILITATE THE GROWTH OF THE20
GEOTHERMAL SECTOR IN COLORADO.21
SECTION
5. In Colorado Revised Statutes, 24-38.5-120, amend22
(3) and (4) as follows:23
24-38.5-120. Decarbonization tax credits administration cash24
fund - definitions - repeal. (3) (a) Subject to annual appropriation by the25
general assembly, for state fiscal years 2023-24 through 2034-35, the26
office and the department may expend money from the fund for direct and27
214
-13- indirect costs associated with the implementation and administration of1
the decarbonization tax credits.2
(b) (I) M
ONEY IN THE FUND MAY ALSO BE USED TO REPAY
3
ADMINISTRATIVE COSTS TO THE RESPECTIVE CASH FUNDS . THE STATE4
TREASURER SHALL TRANSFER MONEY FROM THE FUND IN THE AMOUNT5
ATTRIBUTABLE TO ADMINISTRATIVE COSTS TO THE RESPECTIVE CASH6
FUNDS SO THAT ALL ADMINISTRATIVE COSTS ARE REPAID TO THE7
RESPECTIVE CASH FUNDS ON OR BEFORE JUNE 29, 2024.8
(II) A
S USED IN THIS SUBSECTION (3)(b), UNLESS THE CONTEXT
9
OTHERWISE REQUIRES:10
(A) "A
DMINISTRATIVE COSTS" MEANS THE AMOUNT OF MONEY
11
EXPENDED FROM THE RESPECTIVE CASH FUNDS BY THE OFFICE AND THE12
DEPARTMENT FOR THE ADMINISTRATION AND IMPLEMENTATION OF13
CERTAIN INCOME TAX CREDITS , AS PROVIDED FOR IN SECTIONS14
24-38.5-116 (6)(b)(II), 24-38.5-118 (7)(d), 24-38.5-506 (2)(b),
AND OF
15
THE TEMPORARY SPECIFIC OWNERSHIP TAX RATE REDUCTION FOR16
ELECTRIC MEDIUM-DUTY AND HEAVY-DUTY TRUCKS THAT ARE PART OF A17
FLEET AS PROVIDED FOR IN SECTION 25-7-1405(2)(b).18
(B) "R
ESPECTIVE CASH FUNDS" MEANS THE INDUSTRIAL AND
19
MANUFACTURING OPERATIONS CLEAN AIR GRANT PROGRAM CASH FUND20
CREATED IN SECTION 24-38.5-116 (6), THE GEOTHERMAL ENERGY GRANT21
FUND CREATED IN SECTION 24-38.5-118 (7), THE COMMUNITY ACCESS TO22
ELECTRIC BICYCLES CASH FUND CREATED IN SECTION 24-38.5-506, AND23
THE ELECTRIFYING SCHOOL BUSES GRANT PROGRAM CASH FUND CREATED24
IN SECTION 25-7-1405.25
(4) The state treasurer shall transfer all unexpended and26
unencumbered money in the fund on June 30, 2024, June 30, 2025, and27
214
-14- June 30, 2026, to the general fund; except that the balance of money1
remaining in the fund not including expended and encumbered money2
shall not be less than one hundred thousand THREE HUNDRED THOUSAND3
dollars.4
SECTION 6. In Colorado Revised Statutes, 24-38.5-401, amend5
(6)(a), (6)(b)(I), (7), and (8)(b); and repeal (8)(c) as follows:6
24-38.5-401. Energy code board - appointment - creation -7
duties - definitions - repeal. (6) (a) Duty of the energy code board to8
adopt a model low energy and carbon code. It is the duty of the energy9
code board to develop a model low energy and carbon code on or before10
June 1, 2025 SEPTEMBER 1, 2025, for adoption by counties,11
municipalities, and state agencies.12
(b) The model low energy and carbon code developed by the13
energy code board must apply to commercial and residential buildings14
and must:15
(I) Include the more energy efficient of either the 2021 or 202416
international energy conservation code, except as the energy code board17
may modify those international energy conservation codes pursuant to18
subsection (7) of this section, including any appendices
AND RESOURCES19
to the international energy conservation code that the energy code board20
deems appropriate;21
(7) Option to relax international energy conservation code22
appendices and resources. The energy code board may as necessary23
relax the stringency of any requirements in the international energy24
conservation code, including appendices
AND RESOURCES that it adopts25
as part of the model low energy and carbon code language it develops26
pursuant to subsection (5)
SUBSECTION (6) of this section if it deems that27
214
-15- doing so is appropriate, but the energy code board shall not increase the1
stringency of any requirements in the international energy conservation2
code including appendices
AND RESOURCES that it adopts as part of the3
model low energy and carbon code language it develops pursuant to4
subsection (5)
SUBSECTION (6) of this section.5
(8) (b) If two-thirds of the energy code board fail, on or before6
April 1, 2023, to adopt any element of the model electric ready and solar7
ready code required by subsection (5) of this section, the executive8
committee shall vote on that same element on or before May 15, 2023. If9
two-thirds of the energy code board fail, on or before February 1, 202510
J
UNE 1, 2025, to adopt an element of the model low energy and carbon11
required by subsection (6) of this section, the executive committee shall12
vote on that same element on or before March 15, 2025
AUGUST 1, 2025.13
(c) If the energy code board fails, on or before April 1, 2023, to14
adopt any element of the model electric ready and solar ready code15
required by subsection (5) of this section, the executive committee shall16
vote on that same element on or before May 15, 2023. If the energy code17
board fails, on or before February 1, 2025, to adopt an element of the18
model low energy and carbon code required by subsection (6) of this19
section, the executive committee shall vote on that same element on or20
before March 15, 2025.21
SECTION 7. In Colorado Revised Statutes, 24-38.5-403, amend22
(3)(a)(I) and (3)(c) as follows:23
24-38.5-403. Energy code training - energy code adoption -24
grant writing assistance. (3) (a) Within three days after June 2, 2022,25
the state treasurer shall transfer three million dollars from the general26
fund to the energy fund created in section 24-38.5-102.4. The Colorado27
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-16- energy office shall expend the money transferred by the general assembly1
pursuant to this subsection (3)(a) for the purposes of:2
(I) Issuing grants, not to exceed a total of two million ONE3
MILLION EIGHT HUNDRED SEVENTY -FIVE THOUSAND dollars, to local4
governments to support their adoption and enforcement of the 20215
international energy conservation code, an electric ready and solar ready6
code, and a low energy and carbon code and to cover the direct and7
indirect costs associated with issuing these grants; and8
(c) Within three days after June 2, 2022, the state treasurer shall9
transfer one hundred and fifty thousand TWO HUNDRED SEVENTY -FIVE10
THOUSAND dollars from the general fund to the energy fund created in11
section 24-38.5-102.4. The Colorado energy office shall expend the12
money transferred by the general assembly pursuant to this subsection13
(3)(c) for the costs associated with administering the energy code board14
established in section 24-38.5-401 (2).15
SECTION 8. In Colorado Revised Statutes, 24-38.5-405, amend16
(3)(a) as follows:17
24-38.5-405. High-efficiency electric heating and appliances18
grant program - creation - report - legislative declaration - repeal.19
(3) Grantees may use the money received through the high-efficiency20
electric heating and appliances grant program for the following purposes:21
(a) The purchase and installation of high-efficiency electric22
equipment for
DRYING CLOTHES, space heating, water heating, or
cooking23
in multiple residential or commercial buildings located in close proximity,24
OR FOR OTHER ELECTRIC EQUIPMENT AS DETERMINED BY THE25
DEPARTMENT;26
SECTION 9. In Colorado Revised Statutes, 24-38.5-506, amend27
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-17- (2)(b) as follows:1
24-38.5-506. Community access to electric bicycles cash fund2
- creation - gifts, grants, or donations - transfer. (2) (b) For state fiscal3
years 2023-24 and 2024-25, the office and, subject to annual4
appropriation, the department of revenue may expend money in the fund5
for the administration and implementation of the electric bicycle tax6
credit created in section 39-22-555. The office shall keep an accounting7
of all money expended from the fund pursuant to this subsection (2)(b)8
for purposes of calculating the repayment of the administrative costs9
required by section 39-29-108(2)(e)(II) SECTION 24-38.5-120 (3).10
SECTION 10. In Colorado Revised Statutes, 25-7-1405, amend11
(2)(b) as follows:12
25-7-1405. Electrifying school buses grant program cash fund13
- creation - gifts, grants, and donations - transfer. (2) (b) For state14
fiscal years 2023-24 and 2024-25, and subject to annual appropriation, the15
Colorado energy office, created in section 24-38.5-101, and the16
department of revenue may expend money from the fund for the17
administration and implementation of the innovative motor vehicles and18
innovative trucks tax credits created in sections 39-22-516.7 and19
39-22-516.8 and for the specific ownership tax rate reduction for electric20
medium-duty and heavy-duty trucks that are part of a fleet as set forth in21
section 42-3-107(1)(a)(IV). The office shall keep an accounting of all22
money expended from the fund pursuant to this subsection (2)(b) for23
purposes of calculating the repayment of the administrative costs required24
by section 39-29-108(2)(e)(II) SECTION 24-38.5-120 (3).25
SECTION 11. In Colorado Revised Statutes, 39-22-551, amend26
(2)(e) introductory portion, (2)(i), (2)(j), (3)(a)(II), and (3)(c) as follows:27
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-18- 39-22-551. Industrial clean energy tax credit - tax preference1
performance statement - definitions - report - repeal. (2) Definitions.2
As used in this section, unless the context otherwise requires:3
(e) "Greenhouse gas emissions reduction improvements" means4
improvements that help to measurably reduce greenhouse gas emissions.5
"Greenhouse gas emissions reduction improvements" also means MAY6
INCLUDE one or more of the following equipment purchases,7
improvements, and retrofits:8
(i) "Industrial study" means an energy and emissions audit, a9
feasibility study,
A PRE-FRONT-END or front-end engineering design study10
that meets or exceeds the standards established by the office,
OR ANY11
OTHER INDUSTRIAL STUDIES AS OUTLINED IN PROGRAM ST ANDARDS12
ADOPTED BY THE OFFICE.13
(j) "Owner" means a person
OR DEVELOPER OF A PROJECT TO BE14
IMPLEMENTED AT A QUALIFIED INDUSTRIAL FACILITY subject to tax under15
this article 22 who applies for and claims the credit allowed by this16
section.17
(3) Availability of credit and amount. (a) For income tax years18
commencing on or after January 1, 2024, but prior to January 1, 2033,19
there shall be allowed a credit with respect to the income taxes imposed20
pursuant to this article 22 to the owner of a qualified industrial facility in21
an amount equal to:22
(II) The applicable percentage of the capital costs paid by the23
owner, not including the cost for design, and approved by the office for24
certified greenhouse gas emissions reduction improvements that are25
placed in service during the tax year in which the credit is claimed; except26
that the credit must be claimed in an amount that is not less than27
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-19- seventy-five thousand dollars and does not exceed five EIGHT million1
dollars.2
(c) An owner that claims the credit allowed by this section cannot,3
claim the credit allowed by section 39-30-104 with respect to the4
greenhouse gas emissions reduction improvements or receive grant5
money under the industrial and manufacturing operations clean air grant6
program created in section 24-38.5-116 (3)(a) FOR THE SAME7
GREENHOUSE GAS EMISSION REDUCTION IMPROVEMENTS :8
(I) C
LAIM THE CREDIT ALLOWED BY SECTION 39-30-104; OR 9
(II) R
ECEIVE GRANT MONEY UNDER THE I NDUSTRIAL AND10
MANUFACTURING OPERATIONS CLEAN AIR GRANT PROGRAM CREATED IN11
SECTION 24-38.5-116 (3)(a).12
SECTION 12.
In Colorado Revised Statutes, 39-22-552, amend13
(1)(a), (2)(e), (2)(f) introductory portion, (2)(f)(VIII), and (2)(f)(IX); and14
add (2)(f)(X), (2)(f.5), (2)(h), (2)(i), and (2)(j) as follows:15
39-22-552. Tax credit for expenditures made in connection16
with a geothermal energy project - tax preference performance17
statement - definitions - repeal. (1) (a) In accordance with section18
39-21-304(1), which requires each bill that creates a new tax expenditure19
to include a tax preference performance statement as part of a statutory20
legislative declaration, the general assembly finds and declares that the21
purpose of the tax credit provided in this section is to induce certain22
designated behavior by taxpayers and to provide a reduction in income23
tax liability for certain businesses or individuals by providing a financial24
incentive for the development of
THERMAL ENERGY NETWORKS , electricity25
generation from geothermal sources.
26
(2) Definitions. As used in this section, unless the context27
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-20- otherwise requires:1
2
(e) "Eligible taxpayer" means a person engaged in a trade or3
business that is subject to tax pursuant to this article 22, or a person or4
political subdivision of this state that is exempt from tax pursuant to5
section 39-22-112 (1), that makes a qualified expenditure ANY OF THE6
FOLLOWING PEOPLE OR ENTITIES THAT MAKE A QUALIFIED EXPENDITURE :7
(I) A
PERSON ENGAGED IN A TRADE OR BUSINESS THAT IS SUBJECT8
TO TAX PURSUANT TO THIS ARTICLE 22;9
(II) A
PERSON OR POLITICAL SUBDIVISION OF THIS STATE THAT IS10
EXEMPT FROM TAX PURSUANT TO SECTION 39-22-112 (1); OR11
(III) A
TRIBAL GOVERNMENT.12
(f) "Geothermal energy
ELECTRICITY project" or "project" means13
a project in the state that is intended to evaluate and develop a geothermal14
resource for the purpose of electricity production, that meets the standards15
developed pursuant to subsection (5) of this section, and that involves any16
of the following:17
(VIII) Coproduction of geothermal energy; or ENERGY INCLUDING18
FOR INDUSTRIAL USES OR THERMAL ENERGY NETWORKS ;19
(IX) Power generation equipment;
OR20
(X) S
TUDIES TO IDENTIFY AND EXPLORE RESOURCES THAT MAY BE21
SUITABLE FOR GEOTHERMAL ELECTRICITY GENERATION AND MAY INCLUDE22
HYDROGEN GENERATION OR UTILIZATION OF DIRECT AIR CAPTURE23
TECHNOLOGY.24
(f.5) "G
EOTHERMAL ENERGY PROJECT " MEANS A GEOTHERMAL25
ELECTRICITY PROJECT, THERMAL ENERGY NETWORK , OR A THERMAL26
ENERGY NETWORK STUDY .27
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-21- 1
(h) "T
HERMAL ENERGY NETWORK " HAS THE SAME MEANING AS SET2
FORTH IN SECTION 39-22-554 (2)(n).3
(i) "T
HERMAL ENERGY NETWORK STUDY " MEANS AN ENERGY AND4
EMISSIONS SCOPING STUDY, A FEASIBILITY STUDY, AN INVESTMENT GRADE5
ENERGY AUDIT, A DETAILED ENGINEERING DESIGN, OR A COMBINATION OF6
THESE OPTIONS THAT MEETS OR EX CEEDS THE STANDARDS ESTABLISHED7
BY THE OFFICE.8
(j) "T
RIBAL GOVERNMENT" MEANS A FEDERALLY RECOGNIZED9
I
NDIAN TRIBE, INCLUDING ITS BUSINESS OPERATIONS AND WHOLLY-OWNED10
ENTITIES, WITH RESERVATION LANDS WITHIN THE STATE OF COLORADO OR11
OPERATING WITHIN THE STATE.12
13
SECTION 13. In Colorado Revised Statutes, 39-22-553, amend14
(2)(c) and (3); and add (2)(d) and (3.5) as follows:15
39-22-553. Geothermal electricity generation production tax16
credit - tax preference performance statement - definitions - repeal.17
(2) Definitions. As used in this section, unless the context otherwise18
requires:19
(c) "Qualified entity" means a person engaged in a trade or20
business that is subject to tax pursuant to this article 22 or a person or21
political subdivision of this state that is exempt from tax pursuant to22
section 39-22-112 (1), either of which produces electricity derived from23
geothermal energy for sale or for the person's or political subdivision's24
own use ANY OF THE FOLLOWING PEOPLE OR ENTITIES THAT PRODUCE25
ELECTRICITY DERIVED FROM GEOTHERMAL ENERGY FOR SALE OR USE :26
(I) A
PERSON ENGAGED IN A TRADE OR BUSINESS THAT IS SUBJECT27
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-22- TO TAX PURSUANT TO THIS ARTICLE 22;1
(II) A
PERSON OR POLITICAL SUBDIVISION OF THIS STATE THAT IS2
EXEMPT FROM TAX PURSUANT TO SECTION 39-22-112 (1); OR3
(III)
A TRIBAL GOVERNMENT.4
(d) "T
RIBAL GOVERNMENT" MEANS A FEDERALLY RECOGNIZED5
I
NDIAN TRIBE, INCLUDING ITS BUSINESS OPERATIONS AND WHOLLY -OWNED6
ENTITIES, WITH RESERVATION LANDS WITHIN THE STATE OF COLORADO OR7
OPERATING WITHIN THE STATE.8
(3) For income tax years commencing on or after January 1, 2024,9
but before January 1, 2033, a qualified entity is allowed a credit against10
the income taxes imposed by this article 22 in an amount equal to three11
one-thousandths of a dollar per kilowatt hour of geothermal electricity12
that is produced by the qualified entity in the state in the tax year. In order13
to claim the credit, the qualified entity shall apply for and receive a tax14
credit certificate from the office pursuant to subsection (4) of this section.15
except that the office may not issue a tax credit certificate to a qualified
16
entity totaling more than one million dollars per income tax year.17
(3.5) T
HE OFFICE SHALL ANNUALLY REVIEW AND EVALUATE THE18
EFFECTIVENESS OF THE TAX CREDIT AND MAY MODIFY THE AMOUNTS SET19
FORTH IN SUBSECTION (3) OF THIS SECTION. THE OFFICE SHALL MAINTAIN20
THE CURRENT APPLICABLE TAX CREDIT
ON ITS WEBSITE AND SHALL21
PROVIDE THE APPLICABLE TAX CREDIT IN WRITING TO THE DEPARTMENT22
NO LATER THAN DECEMBER 31, 2024, AND EACH DECEMBER 3123
THEREAFTER THROUGH DECEMBER 31, 2031.24
25
SECTION 14. In Colorado Revised Statutes, 39-22-557, amend26
(2)(d) and (3)(c)(I) as follows:27
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-23- 39-22-557. Clean hydrogen tax credit - qualified uses - tax1
preference performance statement - definitions - legislative2
declaration - repeal. (2) As used in this section, unless the context3
otherwise requires:4
(d) "Lifecycle greenhouse gas emissions rate" means lifecycle5
greenhouse gas emissions, as defined in 26 U.S.C. sec. 45V (c)(1)(A), as6
amended, measured in accordance with any applicable federal internal7
revenue service regulations or guidance, subject to the rules adopted by8
the public utilities commission pursuant to section 40-2-138 (3)(a)(I)9
SECTION 40-2-138 (3)(a)(II).10
(3) (c) (I) For income tax years commencing on and after January11
1, 2024, but before January 1, 2026, and not before the public utilities12
commission adopts rules pursuant to section 40-2-138 (3)(a)(I), SECTION13
40-2-138 (3)(a)(II), the office shall not issue a tax credit certificate to a14
taxpayer indicating eligibility for a tax credit for an amount exceeding15
one million dollars in a tax year.16
SECTION 15. In Colorado Revised Statutes, 39-29-108, repeal17
(2)(e)(II), (2)(e)(III)(A), and (2)(e)(III)(C) as follows:18
39-29-108. Allocation of severance tax revenues - definitions19
- repeal. (2) (e) (II) The state treasurer shall credit a portion of the20
discrete increased amount of severance tax for oil and gas production in21
the amount attributable to administrative costs to the respective cash22
funds so that all administrative costs are repaid to the respective cash23
funds on or before July 1, 2025.24
(III) As used in this subsection (2)(e), unless the context otherwise25
requires:26
(A) "Administrative costs" means the amount of money expended27
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-24- from the respective cash funds by the Colorado energy office and the1
department of revenue for the administration and implementation of2
certain income tax credits and a temporary specific ownership tax rate3
reduction for electric medium-duty and heavy-duty trucks that are part of4
a fleet as provided for in sections 24-38.5-116 (6)(b)(II), 24-38.5-1185
(7)(d), 24-38.5-506 (2)(a)(II), and 25-7-1405 (2)(b).6
(C) "Respective cash funds" means the industrial and7
manufacturing operations clean air grant program cash fund created in8
section 24-38.5-116 (6), the geothermal energy grant fund created in9
section 24-38.5-118 (7), the community access to electric bicycles cash10
fund created in section 24-38.5-506, or the electrifying school buses grant11
program cash fund created in section 25-7-1405.12
SECTION 16. In Colorado Revised Statutes, 40-3.2-108, amend13
(10) introductory portion as follows:14
40-3.2-108. Clean heat targets - legislative declaration -15
definitions - plans - rules - reports. (10) No later than December 1,16
2024, DECEMBER 1, 2025, the commission, in consultation with the17
division, shall determine mass-based greenhouse gas emission reduction18
targets for clean heat plans for 2035. In establishing these targets, the19
commission shall:20
SECTION 17. In Session Laws of Colorado 2023, section 4 of21
chapter 219, amend (1) as follows:22
Section 4. Appropriation. (1) For the 2023-24 state fiscal year,23
$370,140 is appropriated to the department of higher education. This24
appropriation is from the oil and gas conservation and environmental25
response fund created in section 34-60-122 (5)(a), C.R.S., and is based on26
an assumption that the department will require an additional 3.0 FTE. To27
214
-25- implement this act, the department may use this appropriation for the1
board of governors of the Colorado state university system for the biochar2
in oil and gas well plugging working advisory group. A
NY MONEY
3
APPROPRIATED IN THIS SECTION THAT IS NOT EXPENDED PRIOR TO JULY 1,4
2024,
IS FURTHER APPROPRIATED TO THE DEPARTMENT OF HIGHER
5
EDUCATION FOR THE 2024-25 STATE FISCAL YEAR FOR THE SAME PURPOSE.6
SECTION 18. Appropriation - adjustments to 2024 long bill.7
(1) To implement this act, cash funds appropriations from various8
sources of cash funds made in the annual general appropriation act for the9
2024-25 state fiscal year to the department of revenue are decreased as10
follows:11
Executive Director's Office, Administration and Support12
Personal services $424,00113
Operating expenses $64,77014
Taxation Business Group, Administration15
Tax administration IT system (GenTax) support$765,93416
Taxation Business Group, Taxation Services17
Personal services $470,94018
Operating expenses $36,92519
Document management $7,59020
(2) To implement this act, cash funds appropriations from the21
decarbonization tax credits administration cash fund created in section22
24-38.5-120 (2), C.R.S., made in the annual general appropriation act for23
the 2024-25 state fiscal year to the department of revenue are increased24
as follows:25
Executive Director's Office, Administration and Support26
Personal services $424,00127
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-26- Operating expenses $64,7701
Taxation Business Group, Administration2
Tax administration IT system (GenTax) support$765,9343
Taxation Business Group, Taxation Services4
Personal services $470,9405
Operating expenses $36,9256
Document management $7,5907
SECTION 19. Appropriation. For the 2024-25 state fiscal year,8
$958,596 is appropriated to the office of the governor for use by the9
Colorado energy office. This appropriation is from the decarbonization10
tax credits administration cash fund created in section 24-38.5-120 (2),11
C.R.S., and is based on an assumption that the office will require an12
additional 3.1 FTE. To implement this act, the office may use this13
appropriation for program administration.14
SECTION 20. 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
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-27-