First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0872.01 Pierce Lively x2059
SENATE BILL 25-182
Senate Committees House Committees
Transportation & Energy
A BILL FOR AN ACT
C
ONCERNING ENCOURAGING THE RE DUCTION OF EMBODIED CARBON .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
.)
Embodied carbon is the carbon associated with greenhouse gas
emissions arising from the production, construction, use, and end-of-life
of products or systems used in the construction of buildings, roads, and
other infrastructure. An embodied carbon improvement is a real property
installation or modification that is completed in a manner that generates
relatively less embodied carbon.
Section 1 of the bill adds embodied carbon improvements to the
list of new energy improvements that are eligible for property-assessed
SENATE SPONSORSHIP
Ball,
HOUSE SPONSORSHIP
Brown,
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. clean energy financing provided by the Colorado new energy
improvement district.
Section 2 modifies the industrial clean energy tax credit so that
embodied carbon improvements are greenhouse gas emissions reduction
improvements.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 32-20-103, amend2
the introductory portion and (7); and add (4.5) as follows:3
32-20-103. Definitions. As used in this article
ARTICLE 20, unless4
the context otherwise requires:5
(4.5) "E
MBODIED CARBON IMPROVEMENT " MEANS ONE OR MORE6
INSTALLATIONS OR MODIFICATIONS TO REAL PROPERTY THAT7
CUMULATIVELY RESULT IN THE REDUCTION OF THE GLOBAL WARMING8
POTENTIAL AS ESTABLISHED IN POLICIES CREATED BY THE COLORADO9
ENERGY OFFICE CREATED IN SECTION 24-38.5-101.10
(7) "New energy improvement" means one or more on-site energy11
efficiency improvements,
EMBODIED CARBON IMPROVEMENTS , renewable12
energy improvements, resiliency improvements, or water efficiency13
improvements made to eligible real property that will reduce the energy14
consumption of or add energy produced from renewable energy sources15
with regard to any portion of the eligible real property.16
SECTION 2. In Colorado Revised Statutes, 39-22-551, amend17
(2)(e)(XVIII); and add (2)(e)(XVIII.5) as follows:18
39-22-551. Industrial clean energy tax credit - tax preference19
performance statement - definitions - report - repeal. (2) Definitions.20
As used in this section, unless the context otherwise requires:21
(e) "Greenhouse gas emissions reduction improvements" means22
improvements that help to measurably reduce greenhouse gas emissions.23
SB25-182-2- "Greenhouse gas emissions reduction improvements" may include one or1
more of the following equipment purchases, improvements, and retrofits:2
(XVIII) Material substitutions within industrial processes to3
reduce industrial process greenhouse gas emissions by a minimum of4
fifteen percent when compared to existing production practices; and5
(XVIII.5) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER6
J
ANUARY 1, 2025, EMBODIED CARBON IMPROVEMENTS , WHICH ARE7
INSTALLATIONS OR MODIFICATIONS TO REAL PROPERTY THAT8
CUMULATIVELY RESULT IN THE REDUCTION OF THE GLOBAL WARMING9
POTENTIAL OF THE INSTALLATION OR MODIFICATION , AS ESTABLISHED IN10
POLICIES CREATED BY THE COLORADO ENERGY OFFICE , CREATED IN11
SECTION 24-38.5-101. TO QUALIFY AS AN EMBODIED CARBON12
IMPROVEMENT, AN IMPROVEMENT MUST HAVE A GLOBAL WARMING13
POTENTIAL AT LEAST FIFTEEN PERCENT LESS THAN IF THE SAME14
IMPROVEMENT WERE CONSTRUCTED ACCORDING TO A BASELINE15
ESTABLISHED BY DEPARTMENT POLICY .16
SECTION 3. Act subject to petition - effective date. This act17
takes effect at 12:01 a.m. on the day following the expiration of the18
ninety-day period after final adjournment of the general assembly; except19
that, if a referendum petition is filed pursuant to section 1 (3) of article V20
of the state constitution against this act or an item, section, or part of this21
act within such period, then the act, item, section, or part will not take22
effect unless approved by the people at the general election to be held in23
November 2026 and, in such case, will take effect on the date of the24
official declaration of the vote thereon by the governor.25
SB25-182
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