First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
LLS NO. 25-0358.01 Jennifer Berman x3286
HOUSE BILL 25-1040
House Committees Senate Committees
Energy & Environment
A BILL FOR AN ACT
C
ONCERNING THE INCLUSION OF NUCLEAR ENERGY AS A SOURCE OF101
CLEAN ENERGY.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The statutory definition of "clean energy" determines which energy
projects are eligible for clean energy project financing at the county and
city and county level. The statutory definition of "clean energy resource"
determines which energy resources may be used by a qualifying retail
utility to meet the 2050 clean energy target. The bill updates the 2
statutory definitions to include nuclear energy; except that for property
HOUSE
Amended 2nd Reading
February 20, 2025
HOUSE SPONSORSHIP
Valdez and Winter T.,
SENATE SPONSORSHIP
Roberts and Liston, Baisley
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. valuations made for tax purposes, the bill exempts from the definition of
"clean energy resource" nuclear energy generated by a public utility.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
finds that:3
(a) Colorado's estimated electricity peak demand is projected to4
double in the next 5 years;5
(b) The current path to eliminating greenhouse gas emissions in6
Colorado includes only the use of wind, geothermal, and solar power and7
battery storage;8
(c) Providing more options for generating electricity in Colorado9
will lead to a less expensive and a more reliable path to eliminating10
greenhouse gas emissions;11
(d) Advanced nuclear energy can produce higher quantities of12
clean energy with a smaller land footprint than other clean energy13
sources;14
(e) Small modular nuclear reactors can replace coal power plants15
while maintaining the number of jobs in the communities in which the16
coal power plants are located;17
(f) New designs for advanced nuclear reactors are being18
developed by entrepreneurial companies in the United States seeking to19
increase the value of nuclear technology within our energy system. It is20
estimated that the designs will be commercially operational this decade21
and will be ready for large-scale deployment by the 2030s to help meet22
domestic and global clean energy needs.23
(g) The development of a small modular reactor can create up to24
900 jobs lasting up to 4 years, as well as up to 300 permanent jobs;25
1040-2- (h) Advancements in policy at the federal level, such as the1
bipartisan "Atomic Energy Advancement Act", H.R. 6544, will improve2
regulatory oversight of nuclear energy by prioritizing workforce training,3
environmental protections, and public safety, while reducing reliance on4
fossil fuels; and5
(i) Through recycling methods, up to 96% of the reusable material6
in spent fuel can be recycled.7
(2) The general assembly further finds that:8
(a) Coloradans care about clean energy; to that end, nuclear9
energy:10
(I) Is currently the single largest source of carbon-free electricity11
generation in the United States and around the world, with 94 nuclear12
reactors in the United States alone generating about 50% of the country's13
carbon-free electricity;14
(II) Does not produce carbon dioxide, thus offsetting carbon15
emissions; and16
(III) Should be included in the statutory definitions of "clean17
energy" and "clean energy resource";18
(b) In adding nuclear energy to the statutory definitions of "clean19
energy" and "clean energy resource", Colorado can continue to spearhead20
energy innovations that align with the state's goals of keeping energy21
affordable;22
(c) On its own, nuclear energy has a 92.7% capacity factor, which23
refers to the percentage of time that an electricity-generating source is24
able to generate electricity, and is a much higher capacity factor than for25
all other generation sources;26
(d) Because nuclear energy has such a high capacity factor,27
1040
-3- utilizing nuclear energy as a source of clean energy will help Colorado1
prevent future blackouts and brownouts;2
(e) Nuclear energy can be utilized in conjunction with existing3
clean energy sources to lower energy costs for Coloradans and maintain4
a reliable source of electricity;5
(f) Adding nuclear energy to the statutory definitions of "clean6
energy" and "clean energy resource" will attract continued public and7
private research funding for innovations in clean energy technology;8
(g) Due to current funding levels, nuclear reactor designs that help9
decarbonize hard-to-reach industries and locations already exist; and10
(h) New innovations such as microreactors would benefit rural11
areas by keeping the energy source serving those areas local.12
(3) Therefore, the general assembly declares that it is in the best13
interest of Colorado to add nuclear energy to the statutory definitions of14
"clean energy" and "clean energy resource".15
SECTION 2. In Colorado Revised Statutes, 30-20-1202, amend16
(2) as follows:17
30-20-1202. Definitions. As used in this part 12, unless the18
context otherwise requires:19
(2) "Clean energy" means energy derived from biomass, as20
defined in section 40-2-124 (1)(a)(I); C.R.S., geothermal energy; solar21
energy; small hydroelectricity; and NUCLEAR ENERGY , INCLUDING22
NUCLEAR ENERGY PROJECTS AWARDED FUNDING THROUGH THE UNITED23
S
TATES DEPARTMENT OF ENERGY 'S ADVANCED NUCLEAR REACTOR24
PROGRAMS; wind energy; as well as any
AND hydrogen derived from any25
of the foregoing OTHER ENERGY SOURCES LISTED IN THIS SUBSECTION (2).26
SECTION 3. In Colorado Revised Statutes, 40-2-125.5, amend27
1040
-4- (2)(b) as follows:1
40-2-125.5. Carbon dioxide emission reductions - goal to2
eliminate by 2050 - legislative declaration - interim targets -3
submission and approval of plans - definitions - cost recovery -4
reports - rules. (2) Definitions. As used in this section, unless the5
context otherwise requires:6
(b) (I) "Clean energy resource" means any electricity-generating7
technology that generates or stores electricity without emitting carbon8
dioxide into the atmosphere.9
(II) "Clean energy resources" include RESOURCE" INCLUDES,10
without limitation:11
(A) Eligible energy resources as defined in section 40-2-12412
(1)(a);
AND13
(B) N
UCLEAR ENERGY, INCLUDING NUCLEAR ENERGY PROJECTS14
AWARDED FUNDING THROUGH THE UNITED STATES DEPARTMENT OF15
ENERGY'S ADVANCED NUCLEAR REACTOR PROGRAMS .16
SECTION 4. In Colorado Revised Statutes, 39-4-101, amend17
(2.4) as follows:18
39-4-101. Definitions. As used in this article 4, unless the context19
otherwise requires:20
(2.4) (a) E
XCEPT AS PROVIDED IN SUBSECTION (2.4)(b) OF THIS21
SECTION, "clean energy resource" has the same meaning as set forth in22
section 40-2-125.5 (2)(b).23
(b) "CLEAN ENERGY RESOURCE ", FOR PURPOSES OF PROPERTY24
TAXATION UNDER THIS SECTION, DOES NOT INCLUDE NUCLEAR ENERGY .25
SECTION 5. Act subject to petition - effective date. This act26
takes effect at 12:01 a.m. on the day following the expiration of the27
1040
-5- ninety-day period after final adjournment of the general assembly; except1
that, if a referendum petition is filed pursuant to section 1 (3) of article V2
of the state constitution against this act or an item, section, or part of this3
act within such period, then the act, item, section, or part will not take4
effect unless approved by the people at the general election to be held in5
November 2026 and, in such case, will take effect on the date of the6
official declaration of the vote thereon by the governor.7
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-6-