Colorado 2026 Regular Session Status: Enacted 13 D cosponsors

SB 142 — Development of Thermal Energy Resources

Last action — Governor Signed

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced March 19, 2026. Enacted.

Signed by Governor Jared Polis (Democratic) on June 01, 2026.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Likely to advance 82% · moderate confidence

  • Enacted

    Current position in the legislative process.

  • 29 sponsors

    4 primary, 25 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (13 D).

  • Cleared a recorded vote

    Passed 10 recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

In plain language

The bill allows local governments to develop thermal energy resources, increasing geothermal project capacities and promoting infrastructure.

This bill enables local governments to work with entities on thermal energy services and increases the size limits for geothermal projects. It also mandates data collection and recommendations for safe geothermal resource development.

What this means for you
  • Environment: This bill supports the development of geothermal energy, which could lead to a more sustainable energy source.
  • Small Business: Local governments may partner with businesses in the thermal energy sector, potentially opening new opportunities for growth and collaboration.

Summary

The act authorizes a local government or a special district (local government) to enter into an agreement with one or more entities for the purpose of providing the local government with service from a thermal energy network. A local government that is authorized by law to issue bonds may issue bonds for the purpose of financing thermal energy infrastructure, interconnections, or customer connections within the jurisdiction of the local government.     The act increases the net electric generating capacity of a community geothermal garden from 5 megawatts to 25 megawatts.     The act requires the Colorado energy and carbon management commission (commission) and the Colorado geological survey to collect data and information related to geological resources in the state. The commission shall make recommendations to encourage safe and effective development of geothermal resources and report those recommendations to the general assembly on or before November 15, 2026.     The act requires investor-owned electric utilities (utilities) to identify small-scale geothermal projects and large-scale geothermal projects (geothermal projects). The utility must solicit proposals for the development of small-scale geothermal projects of up to 25 megawatts of net electric generating capacity and large-scale geothermal projects that are greater than 25 megawatts of net electric generating capacity. The utility shall submit applications for the development of the geothermal projects to the public utilities commission if the utility receives a bid in response to the request for proposals. The public utilities commission must review the application and approve, conditionally approve, deny, or modify the application within 120 days after receiving the application.(Note: This summary applies to this bill as enacted.)

Bill Text

What changed in the latest version

384 added · 395 removed

Plain-language change summary

The recent amendments to Bill SB 142 introduce the development and management of thermal energy resources in Colorado. Key changes include defining terms related to thermal energy, such as "thermal energy network" and establishing agreements between local governments and other parties for handling thermal energy. This matters because it allows local governments more flexibility to utilize and aggregate thermal energy, potentially leading to greater energy efficiency and reduced costs for households, especially those with lower incomes. Overall, this bill supports innovative energy solutions that can benefit the community and the environment.

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NOTE:
This bill has been prepared for the signatures of the appropriate legislative officers and the Governor.
To determine whether the Governor has signed the bill or taken other action on it, please consult the legislative status sheet, the legislative history, or the Session Laws.
C ONCERNING THE DEVELOPMENT OF THERMAL ENERGY RESOURCES .
CONCERNING THE DEVELOPMENT OF THERMAL ENERGY RESOURCES.
Be it enacted by the General Assembly of the State of Colorado:
Be it enacted by the GeneralAssembly ofthe State ofColorado:
(b) In 2023, the general assembly enacted House Bill 23-1252, which authorized thermal energy networks, integrated thermal energyinto the clean heat standard, and required a large gas utility to propose pilot thermal energy network projects;
(b) In 2023, the general assembly enacted House Bill 23-1252, which authorized thermal energy networks, integrated thermal energy into the clean heat standard, and required a large gas utility to propose pilot thermal energy network projects;
Capital letters or bold & italic numbers indicate new material added to existing law;
through words or numbers indicate deletionsfrom existing law andsuch material is notpart ofs the act.
dashes through words or numbers indicate deletions from existing law and such material is not part of the act.
(c) TheColoradoenergyofficehas investedsubstantialpublic funds in geothermal and thermal energy network grants and tax credits, and communities across the state are pursuing neighborhood-scale alternatives to natural gas infrastructure;
(c) TheColoradoenergyofficehasinvestedsubstantialpublicfunds in geothermal and thermal energy network grants and tax credits, and communities across the state are pursuing neighborhood-scale alternatives to natural gas infrastructure;
(d) While existing law does not prohibit municipalities from operating thermal energy networks that include private participants and does notprohibit industrial facilities from selling recovered waste heat, the absence of express statutory authority for these activities imposes unnecessary soft costs on every entity that attempts to conduct those activities, including legal fees, financial risk premiums, and extended project timelines;
(d) While existing law does not prohibit municipalities from operating thermal energy networks that include private participants and doesnotprohibitindustrialfacilitiesfromselling recovered wasteheat,the absence of express statutory authority for these activities imposes unnecessary soft costs on every entity that attempts to conduct those activities, including legal fees, financial risk premiums, and extended project timelines;
(e) Thesesoftcosts aredisproportionatelyburdensomefor small and rural communities and prevent publicly funded thermal energy project operators from entering into contracts that make financial sense;
(e) Thesesoftcostsaredisproportionatelyburdensomeforsmalland rural communities and prevent publicly funded thermal energy project operators from entering into contracts that make financial sense;
and (f) Geothermal energy and thermal energy networks have the potential to provide stable, predictable, and lower-cost energy for heating and cooling, and expanding access to geothermal and thermal energy resources canhelp reduce energy burdens for income-qualified households and improve energy affordability for Coloradans.
and (f) Geothermal energy and thermal energy networks have the potential to provide stable, predictable, and lower-cost energy for heating and cooling, and expanding access to geothermal and thermal energy resourcescanhelpreduceenergyburdensforincome-qualifiedhouseholds and improve energy affordability for Coloradans.
Local government thermal energy aggregation - contractingauthority-revenuebonds-privateoperators-definitions.
Local government thermal energy aggregation - contractingauthority- revenue bonds - private operators -definitions.
(1) A S USED IN THIS SECTION ,UNLESS THE CONTEXT OTHERWISE REQUIRES :
(1) A s USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES:
(a) "L OCAL GOVERNMENT " MEANS A STATUTORY OR HOME RULE CITY,TOWN ,COUNTY ,CITY AND COUNTY ,OR SPECIAL DISTRICT.
(a) "LOCAL GOVERNMENT" MEANS A STATUTORY OR HOME RULE CITY, TOWN, COUNTY, CITY AND COUNTY, OR SPECIAL DISTRICT.
(b) "P UBLIC UTILITIES COMMISSION" MEANS THE PUBLIC UTILITIES COMMISSION CREATED IN SECTION 40-2-101.
(b) "PUBLIC UTILITIES COMMISSION" MEANS THE PUBLIC UTILITIES COMMISSION CREATED IN SECTION 40-2-101.
(c) "T HERMAL ENERGY " HAS THE MEANING SET FORTH IN SECTION 40-3.2-108 (2)(r).
(C) "THERMAL ENERGY" HAS THE MEANING SET FORTH IN SECTION 40-3.2-108 (2)(r).
(d) "THERMALENERGY NETWORK " HAS THE MEANING SET FORTH IN SECTION 40-3.2-108 (2)(s).
(d) "THERMAL ENERGY NETWORK" HAS THE MEANING SET FORTH IN SECTION 40-3.2-108 (2)(s).
(e) "THERMAL ENERGY SERVICE AGREEMENT "MEANS A CONTRACT BETWEENALOCALGOVERNMENTANDONEORMOREOTHERPARTIESFORTHE PURCHASE ,SALE ,DELIVERY , OR CAPACITY RESERVATION OF THERMAL ENERGY OR THERMAL ENERGY NETWORK SERVICE .
(e) "THERMAL ENERGY SERVICE AGREEMENT" MEANS A CONTRACT BETWEENALOCALGOVERNMENTANDONEORMOREOTHERPARTIES FORTHE PURCHASE, SALE, DELIVERY, OR CAPACITY RESERVATION OF THERMAL ENERGY OR THERMAL ENERGY NETWORK SERVICE.
(2) (a) ALOCAL GOVERNMENT MAY AGGREGATE THERMALENERGY DEMAND FOR BUILDINGS AND FACILITIES OWNED OR MANAGED BY THE LOCAL GOVERNMENT WITH DEMAND FROM OTHER ENTITIES ,INCLUDING PRIVATE ENTITIES THAT ELECT TO PARTICIPATE IN THE THERMAL ENERGY NETWORK .
(2) (a) A LOCAL GOVERNMENT MAY AGGREGATE THERMAL ENERGY DEMAND FOR BUILDINGS AND FACILITIES OWNED OR MANAGED BY THE LOCAL GOVERNMENT WITH DEMAND FROM OTHER ENTITIES, INCLUDING PRIVATE ENTITIES THAT ELECT TO PARTICIPATE IN THE THERMAL ENERGY NETWORK.
(b) A LOCAL GOVERNMENT THAT AGGREGATES THERMAL ENERGY DEMAND PURSUANT TO THIS SUBSECTION (2)IS NOT CONSIDERED A PUBLIC UTILITY OR A MUNICIPAL UTILITY AND IS NOT SUBJECT TO REGULATION BY THE PUBLIC UTILITIES COMMISSION .
(b) A LOCAL GOVERNMENT THAT AGGREGATES THERMAL ENERGY DEMAND PURSUANT TO THIS SUBSECTION (2) IS NOT CONSIDERED A PUBLIC UTILITY OR A MUNICIPAL UTILITY AND IS NOT SUBJECT TO REGULATION BY THE PUBLIC UTILITIES COMMISSION.
(3) (a) ALOCAL GOVERNMENT MAY ENTER INTO THERMAL ENERGY SERVICE AGREEMENTS FOR A TERM NOT TO EXCEED TWENTY -FIVE YEARS , SUBJECT TO ANNUAL APPROPRIATION BY THE LOCAL GOVERNMENT .
(3) (a) A LOCAL GOVERNMENT MAY ENTER INTO THERMAL ENERGY SERVICE AGREEMENTS FOR A TERM NOT TO EXCEED TWENTY-FIVE YEARS, SUBJECT TO ANNUAL APPROPRIATION BY THE LOCAL GOVERNMENT.
(b) A LOCALGOVERNMENTMAYENTERINTOINTERGOVERNMENTAL AGREEMENTS WITH OTHER LOCAL GOVERNMENTS PURSUANT TO SECTION PAGE 3-SENATE BILL 26-142 29-1-203FORTHEDEVELOPMENT ,OPERATION ,ORFINANCINGOFATHERMAL ENERGY NETWORK .
(b) A LOCAL GOVERNMENTMAY ENTER INTO INTERGOVERNMENTAL AGREEMENTS WITH OTHER LOCAL GOVERNMENTS PURSUANT TO SECTION PA G E 3-SENATE BILL 26-142 29-1-203 FORTHEDEVELOPMENT,OPERATION,ORFINANCINGOFATHERMAL ENERGY NETWORK.
(c) A LOCAL GOVERNMENT MAY ENTER INTO A CONTRACT WITH A PRIVATE ENTITY FOR THE DESIGN, CONSTRUCTION , OPERATION , MAINTENANCE ,OR MANAGEMENT OF A THERMAL ENERGY NETWORK ON BEHALFOFTHELOCALGOVERNMENTIFTHECONTRACTISAPPROVEDBYTHE GOVERNING BODY OF THE LOCAL GOVERNMENT .
(C) A LOCAL GOVERNMENT MAY ENTER INTO A CONTRACT WITH A PRIVATE ENTITY FOR THE DESIGN, CONSTRUCTION, OPERATION, MAINTENANCE, OR MANAGEMENT OF A THERMAL ENERGY NETWORK ON BEHALFOFTHELOCALGOVERNMENTIFTHE CONTRACTIS APPROVED BYTHE GOVERNING BODY OF THE LOCAL GOVERNMENT.
(4) A LOCAL GOVERNMENT OR A PRIVATE ENTITY ON BEHALF OF A LOCAL GOVERNMENT ,OTHER THAN A PRIVATE ENTITY THAT IS A UTILITY REGULATED BY THE PUBLIC UTILITIES COMMISSION OR AN AFFILIATE OF A PUBLICUTILITY,ASDEFINEDINSECTION 40-3-104.3(4)(b)THATOPERATES , MAINTAINS ORMANAGESATHERMALENERGYNETWORKISNOTCONSIDERED A MUNICIPAL UTILITY OR A PUBLIC UTILITY , AS DEFINED IN SECTION 40-1-103,AND IS NOT SUBJECT TO REGULATION BY THE PUBLIC UTILITIES COMMISSION .
(4) A LOCAL GOVERNMENT OR A PRIVATE ENTITY ON BEHALF OF A LOCAL GOVERNMENT, OTHER THAN A PRIVATE ENTITY THAT IS A UTILITY REGULATED BY THE PUBLIC UTILITIES COMMISSION OR AN AFFILIATE OF A PUBLICUTILITY,AS DEFINED INSECTION40-3-104.3 (4)(b), THATOPERATES, MAINTAINS,ORMANAGES ATHERMALENERGYNETWORKISNOTCONSIDERED A MUNICIPAL UTILITY OR A PUBLIC UTILITY, AS DEFINED IN SECTION 40-1-103, AND IS NOT SUBJECT TO REGULATION BY THE PUBLIC UTILITIES COMMISSION.
(5) (a) (I) I LOCAL GOVERNMENT IS OTHERWISE AUTHORIZED BY LAWTOISSUEBONDS THELOCALGOVERNMENTMAYISSUEREVENUEBONDS , GENERAL OBLIGATION BONDS , OR OTHER FINANCING MECHANISMS AUTHORIZED BY LAW FOR THE PURPOSE OF FINANCING THE DESIGN , CONSTRUCTION ,ACQUISITION, OR IMPROVEMENT OF THERMAL ENERGY NETWORK INFRASTRUCTURE ,INCLUDING PIPES,INTERCONNECTIONS ,HEAT EXCHANGERS ,GROUND -SOURCE LOOPS , CUSTOMER CONNECTIONS ,AND OTHER INFRASTRUCTURE RELATED TO THE DISTRIBUTION OF THERMAL ENERGY .
(5) (a) (IF A LOCAL GOVERNMENT IS OTHERWISE AUTHORIZED BY LAWTO ISSUEBONDS,THELOCALGOVERNMENTMAY ISSUE REVENUE BONDS, GENERAL OBLIGATION BONDS, OR OTHER FINANCING MECHANISMS AUTHORIZED BY LAW FOR THE PURPOSE OF FINANCING THE DESIGN, CONSTRUCTION, ACQUISITION, OR IMPROVEMENT OF THERMAL ENERGY NETWORK INFRASTRUCTURE, INCLUDING PIPES, INTERCONNECTIONS, HEAT EXCHANGERS, GROUND-SOURCE LOOPS, CUSTOMER CONNECTIONS, AND OTHER INFRASTRUCTURE RELATED TO THE DISTRIBUTION OF THERMAL ENERGY.
(II) NOTHING IN THIS SECTION SHALLBE CONSTRUED AS IMPACTING THE STATUTORY REQUIREMENTS RELATED TO THE LOCAL GOVERNMENT ACQUISITION OF ELECTRICAL DISTRIBUTION INFRASTRUCTURE .
(II)NOTHING IN THIS SECTION SHALL BE CONSTRUED AS IMPACTING THE STATUTORY REQUIREMENTS RELATED TO THE LOCAL GOVERNMENT ACQUISITION OF ELECTRICAL DISTRIBUTION INFRASTRUCTURE.
(b) IF A LOCAL GOVERNMENT ISSUES BONDS PURSUANT TO THIS SUBSECTION (5),THEBONDSMUSTBEPAYABLESOLELYFROMTHEREVENUE DERIVEDFROMTHEOPERATIONOFTHETHERMALENERGYNETWORKANDDO NOT CONSTITUTE A GENERAL OBLIGATION OF THE LOCAL GOVERNMENT .
(b) IF A LOCAL GOVERNMENT ISSUES BONDS PURSUANT TO THIS SUBSECTION (5)THE BONDS MUST BE PAYABLE SOLELY FROM THE REVENUE DERIVEDFROMTHEOPERATIONOFTHETHERMALENERGYNETWORKANDDO NOT CONSTITUTE A GENERAL OBLIGATION OF THE LOCAL GOVERNMENT.
(c) G ENERAL OBLIGATION BONDS ISSUED PURSUANT TO THIS SUBSECTION (5)ARE SUBJECT TO SECTION 20 OF ARTICLEX OF THE STATE CONSTITUTION AND ALL OTHER APPLICABLE LAWS .
(c) GENERAL OBLIGATION BONDS ISSUED PURSUANT TO THIS SUBSECTION (5)ARE SUBJECT TO SECTION 20 OF ARTICLEX OF THE STATE CONSTITUTION AND ALL OTHER APPLICABLE LAWS.
PAGE 4-SENATE BILL 26-142 (d) N OTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION , NOTHINGINTHISSUBSECTION (5)SHALLBECONSTRUEDTOLIMIT ,RESTRICT, OR OTHERWISE IMPAIR THE BONDING , FINANCING ,OR CREDIT -RAISING AUTHORITY ,OR ANY POWERS INCIDENTAL TO THAT AUTHORITY ,GRANTED TO A LOCAL GOVERNMENT BY ITS ORGANIC STATUTE OR ANY OTHER PROVISION OF STATE LAW.
PA G E 4-SEN A TE BILL 26-142 (d) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NOTHING INTHIS SUBSECTION (5) SHALLBE CONSTRUEDTO LIMIT, RESTRICT, OR OTHERWISE IMPAIR THE BONDING, FINANCING, OR CREDIT-RAISING AUTHORITY, OR ANY POWERS INCIDENTAL TO THAT AUTHORITY, GRANTED TO A LOCAL GOVERNMENT BY ITS ORGANIC STATUTE OR ANY OTHER PROVISION OF STATE LAW.
(6) ALOCALGOVERNMENTMAYPROVIDETHERMALENERGYSERVICE TO PARTICIPANTS LOCATED OUTSIDE THE JURISDICTIONAL BOUNDARIES OF THE LOCAL GOVERNMENT IF :
(6)A LOCALGOVERNMENTMAYPROVIDETHERMALENERGYSERVICE TO PARTICIPANTS LOCATED OUTSIDE THE JURISDICTIONAL BOUNDARIES OF THE LOCAL GOVERNMENT IF:
(a) THE LOCAL GOVERNMENT HAS ENTERED INTO AN INTERGOVERNMENTALAGREEMENTINACCORDANCEWITHSECTION 29-1-203 WITH THE LOCAL GOVERNMENT IN WHICH THE PARTICIPANT RECEIVING THE THERMAL ENERGY SERVICE IS LOCATED ;OR (b) THELOCALGOVERNMENTANDTHEPARTICIPANTHAVEENTERED INTO A THERMAL ENERGY SERVICE AGREEMENT .
(a) THE LOCAL GOVERNMENT HAS ENTERED INTO AN INTERGOVERNMENTALAGREEMENTINACCORDANCE WITH SECTION 29-1-203 WITH THE LOCAL GOVERNMENT IN WHICH THE PARTICIPANT RECEIVING THE THERMAL ENERGY SERVICE IS LOCATED;
(7) THE PROVISION OF THERMAL ENERGY SERVICE IN ACCORDANCE WITH THIS SECTION SHALL NOT BE CONSTRUED AS THE PROVISION OF NATURAL GAS SERVICE AND DOES NOT CONSTITUTE A VIOLATION OF ANY EXCLUSIVE FRANCHISE AGREEMENT FOR THE DISTRIBUTION OF NATURAL GAS .
OR (b) THE LOCALGOVERNMENTAND THE PARTICIPANT HAVE ENTERED INTO A THERMAL ENERGY SERVICE AGREEMENT.
(8) A THERMAL ENERGY SERVICE AGREEMENT ENTERED INTO PURSUANTTOTHISSECTIONMAYBESUBMITTEDASEVIDENCEOFCUSTOMER DEMAND IN ANY PROCEEDING BEFORE THE PUBLIC UTILITIES COMMISSION CONDUCTED PURSUANT TO SECTION 40-4-121.
(7) THE PROVISION OF THERMAL ENERGY SERVICE IN ACCORDANCE WITH THIS SECTION SHALL NOT BE CONSTRUED AS THE PROVISION OF NATURAL GAS SERVICE AND DOES NOT CONSTITUTE A VIOLATION OF ANY EXCLUSIVE FRANCHISE AGREEMENT FOR THE DISTRIBUTION OF NATURAL GAS.
(8) A THERMAL ENERGY SERVICE AGREEMENT ENTERED INTO PURSUANTTOTHIS SECTION MAY BE SUBMITTEDAS EVIDENCEOFCUSTOMER DEMAND IN ANY PROCEEDING BEFORE THE PUBLIC UTILITIES COMMISSION CONDUCTED PURSUANT TO SECTION 40-4-121.
EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION , THERMAL ENERGY SYSTEMS AUTHORIZED PURSUANT TO THIS SECTION ARE NOTREGULATEDBYTHEPUBLICUTILITIESCOMMISSIONANDAREGOVERNED BY LOCAL GOVERNMENT CONTRACTING AUTHORITY .
EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION, THERMAL ENERGY SYSTEMS AUTHORIZED PURSUANT TO THIS SECTION ARE NOTREGULATED BYTHEPUBLIC UTILITIES COMMISSION ANDARE GOVERNED BY LOCAL GOVERNMENT CONTRACTING AUTHORITY.
(10) (a) APUBLIC ELECTRIC UTILITY THAT HAS A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY ISSUED BY THE PUBLIC UTILITIES COMMISSION TO PROVIDE RETAIL ELECTRIC SERVICE IN THE TERRITORY PAGE 5-SENATE BILL 26-142 WHERE A THERMAL ENERGY NETWORK FACILITY IS LOCATED HAS THE EXCLUSIVERIGHTTOPROVIDEELECTRICSERVICETOTHETHERMALENERGY NETWORKFACILITY ;EXCEPTTHATTHISSUBSECTION (10)DOESNOT IMPACT A CUSTOMER S RIGHT TO UTILIZE RETAIL DISTRIBUTED GENERATION ,AS DEFINED IN SECTION40-2-124 (1)(a)(VIII).
(10) (a)A PUBLIC ELECTRIC UTILITY THAT HAS A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY ISSUED BY THE PUBLIC UTILITIES COMMISSION TO PROVIDE RETAIL ELECTRIC SERVICE IN THE TERRITORY PA G E 5-SEN A TEBILL 26-142 WHERE A THERMAL ENERGY NETWORK FACILITY IS LOCATED HAS THE EXCLUSIVE RIGHTTO PROVIDE ELECTRIC SERVICETO THETHERMAL ENERGY NETWORKFACILITY;EXCEPTTHATTHISSUBSECTION(10)DOESNOTIMPACT A CUSTOMER'S RIGHT TO UTILIZE RETAIL DISTRIBUTED GENERATION, AS DEFINED IN SECTION 40-2-124 (l)(a)(V III).
(b) NOTHING IN THIS SECTION SHALL BE CONSTRUED AS IMPACTING THE STATUTORY REQUIREMENTS RELATED TO A PUBLIC ELECTRIC UTILITY OBTAININGACERTIFICATEOFPUBLICCONVENIENCEANDNECESSITYISSUED BY THE PUBLIC UTILITIES COMMISSION (11) (a) E MISSION REDUCTIONS ASSOCIATED WITH A THERMAL ENERGYNETWORKTHAT ISOPERATINGINACCORDANCE WITHTHISSECTION AND THAT IS WITHIN THE SERVICE TERRITORY OF A PUBLIC UTILITY THAT IS REQUIRED TO FILE A CLEAN HEAT PLAN WITH THE PUBLIC UTILITIES COMMISSIONPURSUANTTOSECTION 40-3.2-10SHALLBECOUNTEDASPART OFTHE PUBLICUTILITY SEMISSIONREDUCTIONCALCULATIONSRELATEDTO THE UTILITYS CLEAN HEAT PLAN,EVEN IFTHE THERMALENERGYNETWORK IS CONSTRUCTED OR OPERATED WITHOUT UTILITY INVESTMENT OR PARTICIPATION.
(b) NOTHING IN THIS SECTION SHALL BE CONSTRUED AS IMPACTING THE STATUTORY REQUIREMENTS RELATED TO A PUBLIC ELECTRIC UTILITY OBTAINING A CERTIFICATE OF PUBLIC CONVENIENCEAND NECESSITY ISSUED BY THE PUBLIC UTILITIES COMMISSION.
(b) THEPUBLICUTILITIESCOMMISSIONSHALLPROHIBITTHEDOUBLE COUNTINGOFEMISSIONREDUCTIONSASSOCIATEDWITHATHERMALENERGY NETWORK .
(11) (a) EMISSION REDUCTIONS ASSOCIATED WITH A THERMAL ENERGY NETWORKTHAT IS OPERATING IN ACCORDANCE WITH THIS SECTION AND THAT IS WITHIN THE SERVICE TERRITORY OF A PUBLIC UTILITY THAT IS REQUIRED TO FILE A CLEAN HEAT PLAN WITH THE PUBLIC UTILITIES COMMISSION PURSUANTTOSECTION40-3 .2-108 SHALLBECOUNTEDAS PART OFTHE PUBLIC UTILITY'S EMISSION REDUCTION CALCULATIONS RELATED TO THE UTILITY'S CLEAN HEAT PLAN, EVEN IF THE THERMAL ENERGY NETWORK IS CONSTRUCTED OR OPERATED WITHOUT UTILITY INVESTMENT OR PARTICIPATION.
(c) A LOCAL GOVERNMENT THAT CONSTRUCTS ,DEVELOPS , OR OPERATESATHERMALENERGYNETWORKSHALLNOTIFYTHEPUBLICUTILITY THAT PROVIDES UTILITY SERVICE TO THE LOCATION WHERE THE THERMAL ENERGY NETWORK IS LOCATED THAT THE LOCAL GOVERNMENT WILL CONSTRUCT ,DEVELOP OROPERATEATHERMALENERGYNETWORKPRIORTO BEGINNING CONSTRUCTION OF THE THERMAL ENERGY NETWORK IN ORDER TOALLOWFORCOORDINATIONBETWEENTHELOCALGOVERNMENTANDTHE PUBLICUTILITYRELATEDTOTHEUTILITY CLEANHEATPLAN ,TOTHEEXTENT PRACTICABLE .
(b) THE PUBLIC UTILITIES COMMISSION SHALL PROHIBITTHE DOUBLE COUNTINGOFEMISSION REDUCTIONS ASSOCIATED WITH ATHERMALENERGY NETWORK.
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SECTION 3.
(C) A LOCAL GOVERNMENT THAT CONSTRUCTS, DEVELOPS, OR OPERATES ATHERMALENERGYNETWORKSHALLNOTIFYTHE PUBLIC UTILITY THAT PROVIDES UTILITY SERVICE TO THE LOCATION WHERE THE THERMAL ENERGY NETWORK IS LOCATED THAT THE LOCAL GOVERNMENT WILL CONSTRUCT,DEVELOP,OROPERATEATHERMALENERGYNETWORKPRIORTO BEGINNING CONSTRUCTION OF THE THERMAL ENERGY NETWORK IN ORDER TOALLOW FORCOORDINATION BETWEENTHE LOCALGOVERNMENTANDTHE PUBLIC UTILITY RELATEDTOTHE UTILITY'CLEAN HEATPLAN, TOTHE EXTENT PRACTICABLE.
In Colorado Revised Statutes, add 30-11-134 as follows:
SECTIO N 3.
In Colorado Revised Statutes,add 30-11-134 as follows:
PAGE 6-SENATE BILL 26-142 A BOARDOFCOUNTYCOMMISSIONERSMAYENTERINTOAGREEMENTS WITH ONE OR MORE ENTITIES ,INCLUDING OTHER LOCAL GOVERNMENTAL ENTITIES ,FOR THE PROVISION OF SERVICE FROM A THERMAL ENERGY NETWORK IN ACCORDANCE WITH SECTION 40-4-121 (7)OR 29-1-208.
PAGE 6-SEN A TE BILL 26-142 A BOARDOFCOUNTYCOMMISSIONERS MAY ENTERINTOAGREEMENTS WITH ONE OR MORE ENTITIES, INCLUDING OTHER LOCAL GOVERNMENTAL ENTITIES, FOR THE PROVISION OF SERVICE FROM A THERMAL ENERGY NETWORK IN ACCORDANCE WITH SECTION 40-4-121 (7) OR 29-1-208.
In Colorado Revised Statutes, 31-15-713, amend (1)(a) as follows:
In Colorado Revised Statutes, 31-15-713, amend (l)(a) as follows:
(1) The governing body of each municipality has the power:
(1) The governing body ofeach municipality has the power:
(a) To sell and dispose of waterworks, ditches, gasworks, geothermal systems, solar systems, electric light works,ERMALENERGY NETWORKS AS DEFINED IN SECTION 40-3.2-108 (2)(s), or other public utilities, public buildings, real property used or held for park purposes, or any other real property used or held for anygovernmental purpose.
(a) To sell and dispose of waterworks, ditches, gasworks, geothermal systems, solar systems, electric light workTHERMAL ENERGY NETWORKS AS DEFINED IN SECTION 40-3.2-108 (2)(s), or other public utilities, public buildings, real property used or held for park purposes, or any other real property used or held for any governmental purpose.
Before any such sale is made, the question of saidTHE sale and the terms and considerationthereof OFTHE SALE shall be submittedataregularorspecial election and approved in the manner provided for authorization of bonded indebtedness by section 31-15-302 (1)(d).
Before any such sale is made, the question of said THE sale and the terms and consideration thereofOFTHE SALE shall be submitted at a regular orspecial election and approved in the manner provided for authorization ofbonded indebtedness by section 31-15-302 (l)(d).
(1) The governing body of each municipality has the power:
(1) The governing body ofeach municipality has the power:
(e) T O ENTER INTO AGREEMENTS WITH ONE OR MORE ENTITIES , INCLUDINGOTHERLOCALGOVERNMENTALENTITIES ,FORTHEPROVISIONOF SERVICE FROM A THERMAL ENERGY NETWORK IN ACCORDANCE WITH SECTION 40-4-121 (7).
(e) To ENTER INTO AGREEMENTS WITH ONE OR MORE ENTITIES, INCLUDING OTHERLOCALGOVERNMENTAL ENTITIES, FORTHE PROVISION OF SERVICE FROM A THERMAL ENERGY NETWORK IN ACCORDANCE WITH SECTION 40-4-121 (7).
In Colorado Revised Statutes, 32-1-1001, add (1)(p) as follows:
In Colorado Revised Statutes, 32-1-1001, add (l)(p) as follows:
(p) T O ENTER INTO AGREEMENTS WITH ONE OR MORE PARTIES , INCLUDINGOTHERLOCALGOVERNMENTALENTITIES FORTHEPROVISIONOF SERVICE FROM A THERMAL ENERGY NETWORK IN ACCORDANCE WITH SECTION 40-4-121 (7)OR 29-1-208.
(p) TO ENTER INTO AGREEMENTS WITH ONE OR MORE PARTIES, INCLUDINGOTHERLOCALGOVERNMENTALENTITIES, FORTHE PROVISION OF SERVICE FROM A THERMAL ENERGY NETWORK IN ACCORDANCE WITH SECTION 40-4-121 (7) OR 29-1-208.
InColoradoRevisedStatutes,34-60-106,add(2.5)(c) as follows:
In Colorado Revised Statutes, 34-60-1add (2.5)(c) as follows:
(2.5) (c) IN EXERCISING THE AUTHORITY GRANTED TO THE COMMISSION PURSUANT TO THIS ARTICLE 60,THE COMMISSION SHALL NOT CONDITION ANY APPROVAL OF OIL AND GAS OPERATIONS ON AN OPERATOR AGREEING TO SUBJECT THE OPERATOR S OIL AND GAS WELLS TO THE DATA COLLECTION PROGRAM DESCRIBED IN SECTION 37-90.5-112.
(2.5) () IN EXERCISING THE AUTHORITY GRANTED TO THE COMMISSION PURSUANT TO THIS ARTICLE 60, THE COMMISSION SHALL NOT CONDITION ANY APPROVAL OF OIL AND GAS OPERATIONS ON AN OPERATOR AGREEING TO SUBJECT THE OPERATOR'S OIL AND GAS WELLS TO THE DATA COLLECTION PROGRAM DESCRIBED IN SECTION 37-90.5-112.
In Colorado Revised Statutes, add 37-90.5-112 as follows:
In Colorado Revised Statutesadd 37-90.5-112 as follows:
Geothermal data collection - duties of commission - gifts, grants, or donations - report - repeal.
Geothermal data collection - duties ofcommission - gifts, g.-ants, or donations - report - repeal.
(1)(a) THECOMMISSIONANDTHE C OLORADOGEOLOGICALSURVEY , ESTABLISHEDINSECTION 23-41-203,SHALLFACILITATETHECOLLECTIONOF DATA REGARDING GEOTHERMAL RESOURCES IN THE STATE .
(1) (a) THE COMMISSIONANDTHECOLORADOGEOLOGICALSURVEY, ESTABLISHEDINSECTION23-41-203, SHALLFACILITATETHECOLLECTION OF DATA REGARDING GEOTHERMAL RESOURCES IN THE STATE.
IN CONSIDERATION OF AVAILABLE MONEY , THE COMMISSION AND THE COLORADO GEOLOGICAL SURVEY MAY :
IN CONSIDERATION OF AVAILABLE MONEY, THE COMMISSION AND THE COLORADO GEOLOGICAL SURVEY MAY:
(I) COLLECT DATA TO INFORM THE ASSESSMENT OR DEVELOPMENT OF GEOTHERMAL RESOURCES IN THE STATE ;
(I) COLLECT DATA TO INFORM THE ASSESSMENT OR DEVELOPMENT OF GEOTHERMAL RESOURCES IN THE STATE;
(II) CONSIDER THE USE OF OIL AND GAS WELLS SCHEDULED TO BE PLUGGED AND ABANDONED AS ORPHANED WELLS ,AS DEFINED IN SECTION 34-60-133 (8)(f);MARGINAL WELLS ,AS DEFINED IN SECTION 34-60-133 (8)(d.5);R ,WITH THE CONSENT OF THE OPERATOR ,OTHER OIL AND GAS WELLS IDENTIFIED BY AN OIL AND GAS OPERATOR ;
(II) CONSIDER THE USE OF OIL AND GAS WELLS SCHEDULED TO BE PLUGGED AND ABANDONED AS ORPHANED WELLS, AS DEFINED IN SECTION 34-60-133 (8)(f);
PAGE 8-SENATE BILL 26-142 (III) ONSIDERTHE USE OFMONITORINGANDOBSERVATIONWELLS , AS DEFINED IN SECTION 37-91-102 (10.5);TEST HOLES ,AS DEFINED IN SECTION 37-91-102 (15.7), AUTHORIZED BY THE STATE BOARD OF EXAMINERSOFWATERWELLANDGROUNDHEATEXCHANGERCONTRACTORS , CREATED IN SECTION 37-91-103;OR OTHER WELLS ,AS DEFINED IN SECTION 37-91-102(16),IDENTIFIEDBYTHESTATEENGINEER ,APPOINTEDPURSUANT TO SECTION 37-80-101;
MARGINAL WELLS, AS DEFINED IN SECTION 34-60-133 (8)(d.5);
(IV) A SSESS BOTTOM -HOLE TEMPERATURES AND THERMAL GRADIENTS FROM WELLS , AS DESCRIBED IN SUBSECTIONS (1)(a)(IIAND (1)(a)(IIOF THIS SECTION;
OR, WITH THE CONSENT OF THE OPERATOR, OTHER OIL AND GAS WELLS IDENTIFIED BY AN OIL AND GAS OPERATOR;
(V) U TILIZE EXISTING INFRASTRUCTURE OR DRILL NEW WELLS FOR DATA COLLECTION IF FUNDING IS AVAILABLE;
PA G E 8-SENATE BILL 26-142 (IllCONSIDERTHE USE OF MONITORING AND OBSERVATION WELLS, AS DEFINED IN SECTION 37-91-102 (10.5);
(VI) PRIORITIZETHECOLLECTIONOFBOTTOM HOLETEMPERATURES , THE MEASUREMENT AND EVALUATION OF THERMAL GRADIENTS , AND THE COLLECTION OF OTHER RELEVANT DATA THAT WOULD SUPPORT INCREASED UNDERSTANDINGOFAVAILABLE GEOTHERMALRESOURCESORTHAT COULD FACILITATE OR INFORM:
TEST HOLES, AS DEFINED IN SECTION 37-91-102 (15.7), AUTHORIZED BY THE STATE BOARD OF EXAMINERS OF WATERWELLANDGROUND HEATEXCHANGERCONTRACTORS, CREATED IN SECTION 37-91-103;
(A) T HE PRODUCTION OF GEOTHERMAL ENERGY ;
OR OTHER WELLS, AS DEFINED IN SECTION 37-91-102 ( 16), IDENTIFIEDBYTHESTATEENGINEER, APPOINTED PURSUANT TO SECTION 37-80-101;
(B) D RILLING OF RESERVOIR DEPTH RESOURCE EXPLORATION , CHARACTERIZATION ,OR CONFIRMATION WELLS TO GATHER ADDITIONAL DATA AND INFORMATION ;
(IV) ASSESS BOTTOM-HOLE TEMPERATURES AND THERMAL GRADIENTS FROM WELLS, AS DESCRIBED IN SUBSECTIONS (l)(a)(IAND (l)(a)(IIIOF THIS SECTION;
(C) F IELD TESTS OR OTHER TESTS AT SITES WITH POTENTIAL FOR HYDROTHERMAL ,NEXT GENERATION DEVELOPMENT ,OR ELECTRIC POWER GENERATION ;OR (D) T HE DEPLOYMENT OF LOW -TEMPERATURE GEOTHERMAL TECHNOLOGIES FOR HEATING ,COOLING ,OR OTHER DIRECT USES;AND (VII) CONSIDER ANY ADDITIONAL RELEVANT DATA OR INFORMATION ,INCLUDING :
(V) UTILIZE EXISTING INFRASTRUCTURE OR DRILL NEW WELLS FOR DATA COLLECTION IF FUNDING IS AVAILABLE;
(A) D ATA RELATED TO RESOURCES IN HOT DRY ROCK ;
(VI) PRIORITIZETHECOLLECTIONOFBOTTOM-HOLETEMPERATURES, THE MEASUREMENT AND EVALUATION OF THERMAL GRADIENTS, AND THE COLLECTION OF OTHER RELEVANT DATA THAT WOULD SUPPORT INCREASED UNDERSTANDING OF AVAILABLE GEOTHERMAL RESOURCES ORTHAT COULD FACILITATE OR INFORM:
(B) T EMPERATURE AT DEPTH ;
(A) THE PRODUCTION OF GEOTHERMAL ENERGY;
PAGE 9-SENATE BILL 26-142 (C) INFORMATION RELATED TO SUBSURFACE PERMEABILITY AND FRACTURE NETWORKS ;
(B) DRILLING OF RESERVOIR DEPTH RESOURCE EXPLORATION, CHARACTERIZATION, OR CONFIRMATION WELLS TO GATHER ADDITIONAL DATA AND INFORMATION;
(D) D ATA RELATED TO LOCAL STRESS REGIMES;AND (E) THERMAL CONDUCTIVITY , THERMAL DIFFUSIVITY , AND UNDISTURBED GROUND TEMPERATURE .
(C) FIELD TESTS OR OTHER TESTS AT SITES WITH POTENTIAL FOR HYDROTHERMAL, NEXT-GENERATION DEVELOPMENT, OR ELECTRIC POWER GENERATION;
(b) T HE DATA COLLECTION CONDUCTED PURSUANT TO THIS SUBSECTION (1)MUST BE:
OR (D) THE DEPLOYMENT OF LOW-TEMPERATURE GEOTHERMAL TECHNOLOGIES FOR HEATING, COOLING, OR OTHER DIRECT USES;
AND (VII) CONSIDER ANY ADDITIONAL RELEVANT DATA OR INFORMATION, INCLUDING:
(A) DATA RELATED TO RESOURCES IN HOT DRY ROCK;
(8) TEMPERATURE AT DEPTH;
PA G E 9-SENATE BILL 26-142 (C) INFORMATION RELATED TO SUBSURFACE PERMEABILITY AND FRACTURE NETWORKS;
(D) DATA RELATED TO LOCAL STRESS REGIMES;
AND (E) THERMAL CONDUCTIVITY, THERMAL DIFFUSIVITY, AND UNDISTURBED GROUND TEMPERATURE.
(b) THE DATA COLLECTION CONDUCTED PURSUANT TO THIS SUBSECTION (1) MUST BE:
(II) CONDUCTED WITHOUT COMPELLING THE PUBLIC RELEASE OF PROPRIETARY DATA WITHOUT THE CONSENT OF THE DATA OWNER ;
(II) CONDUCTED WITHOUT COMPELLING THE PUBLIC RELEASE OF PROPRIETARY DATA WITHOUT THE CONSENT OF THE DATA OWNER;
(III) CONDUCTED WITHOUT INCREASING THE RISK OF ADVERSE IMPACTS TO PUBLIC HEALTH ,SAFETY ,AND WELFARE , INCLUDING THE ENVIRONMENT AND WILDLIFE RESOURCES ;
(Ill) CONDUCTED WITHOUT INCREASING THE RISK OF ADVERSE IMPACTS TO PUBLIC HEALTH, SAFETY, AND WELFARE, INCLUDING THE ENVIRONMENT AND WILDLIFE RESOURCES;
(IV) C ONDUCTED VOLUNTARILY WHEN DATA IS PROVIDED BY AN ENTITY OTHER THAN THE COMMISSION OR THE COLORADO GEOLOGICAL SURVEY ;AND (V) ORGANIZED IN A SEARCHABLE FORMAT THAT IS MADE AVAILABLE AT NO COST TO THE PUBLIC (c) (I) T COMMISSION AND THE C OLORADO GEOLOGICAL SURVEY MAY CONTRACT WITH THIRD -PARTY ENTITIES TO CONDUCT THE DATA COLLECTION PURSUANT TO THIS SUBSECTION (1).
(IV) CONDUCTED VOLUNTARILY WHEN DATA IS PROVIDED BY AN ENTITY OTHER THAN THE COMMISSION OR THE COLORADO GEOLOGICAL SURVEY;AND (V) ORGANIZED IN A SEARCHABLE FORMAT THAT IS MADE AVAILABLE AT NO COST TO THE PUBLIC.
(II) THE COMMISSION MAY SEEK , ACCEPT ,AND EXPEND GIFTS , GRANTS ,OR DONATIONS FROM PRIVATE OR PUBLIC SOURCES FOR THE PURPOSES OF CONDUCTING THE DATA COLLECTION PURSUANT TO THIS SUBSECTION (1).
(c)(I) THE COMMISSION AND THE COLORADO GEOLOGICAL SURVEY MAY CONTRACT WITH THIRD-PARTY ENTITIES TO CONDUCT THE DATA COLLECTION PURSUANT TO THIS SUBSECTION ( 1).
(III) TE COMMISSION MAY EXPEND ANY MONEY APPROPRIATED BY THE GENERAL ASSEMBLY FOR THE PURPOSES OF CONDUCTING THE DATA COLLECTION PURSUANT TO THIS SUBSECTION (1).
(11) THE COMMISSION MAY SEEK, ACCEPT, AND EXPEND GIFTS, GRANTS, OR DONATIONS FROM PRIVATE OR PUBLIC SOURCES FOR THE PURPOSES OF CONDUCTING THE DATA COLLECTION PURSUANT TO THIS SUBSECTION (1).
PAGE 10-SENATE BILL 26-142 (d) (I) HE COLLECTION OF DATA CONDUCTED PURSUANT TO THIS SUBSECTION (1)IS CONTINGENT ON AVAILABLE APPROPRIATIONS OR GIF,S GRANTS ,ORDONATIONSRECEIVEDFORTHISPURPOSEANDDOESNOTIMPAIR THE COLORADO GEOLOGICAL SURVEY 'S OBLIGATION TO FULFILL EXISTING STATUTORYRESPONSIBILITIES.THEC OLORADOGEOLOGICALSURVEYSHALL NOT REDUCE EXISTING COMMITMENTS OF MONEY MADE BY THE C OLORADO GEOLOGICAL SURVEY FROM THE SEVERANCE TAX OPERATIONAL FUND , CREATED IN SECTION 39-29-109 (2)(b)(I)OR THE GENERAL FUND TO CONDUCT THE DATA COLLECTION .
(Ill)THE COMMISSION MAY EXPEND ANY MONEY APPROPRIATED BY THE GENERAL ASSEMBLY FOR THE PURPOSES OF CONDUCTING THE DATA COLLECTION PURSUANT TO THIS SUBSECTION ( 1).
(II) THE COLLECTION OF DATA CONDUCTED PURSUANT TO THIS SUBSECTION (1)IS CONTINGENT ON AVAILABLE APPROPRIATIONS OR GIF,S GRANTS ,ORDONATIONSRECEIVEDFORTHISPURPOSEANDDOESNOTIMPAIR THE COMMISSION 'S OBLIGATION TO FULFILL EXISTING STATUTORY OR REGULATORYRESPONSIBILITIESOREXISTINGPERMITTINGANDREGULATORY PROGRAMS .T HE COMMISSIONSHALLNOT REDUCEEXISTINGCOMMITMENTS OF MONEY MADE BY THE COMMISSION FROM THE SEVERANCE TAX OPERATIONAL FUND , CREATED IN SECTION 39-29-109 (2)(b)(IOR THE GENERAL FUND TO CONDUCT THE DATA COLLECTION .
PAGE 10-SENATE BILL 26-142 (d)(I) THE COLLECTION OF DATA CONDUCTED PURSUANT TO THIS SUBSECTION ( 1) IS CONTINGENT ON AVAILABLE APPROPRIATIONS OR GIFTS, GRANTS, ORDONATIONS RECEIVED FORTHIS PURPOSEAND DOES NOT IMPAIR THE COLORADO GEOLOGICAL SURVEY'S OBLIGATION TO FULFILL EXISTING STATUTORYRESPONSIBILITIES.
(2) (a) TE COMMISSION SHALL DEVELOP RECOMMENDATIONS TO ENCOURAGE THE SAFE AND EFFECTIVE DEVELOPMENT OF GEOTHERMAL RESOURCES IN THE STATE.
THECOLORADOGEOLOGICALSURVEYSHALL NOT REDUCE EXISTING COMMITMENTS OF MONEY MADE BY THE COLORADO GEOLOGICAL SURVEY FROM THE SEVERANCE TAX OPERATIONAL FUND, CREATED IN SECTION 39-29-109 (2)(b)(I), OR THE GENERAL FUND TO CONDUCT THE DATA COLLECTION.
(b) (I) IDEVELOPING THE RECOMMENDATIONS PURSUANT TO THIS SUBSECTION (2),THE COMMISSION MAY CONSIDER MEASURES THAT FACILITATE THE SAFE AND EFFECTIVE DEVELOPMENT OF GEOTHERMAL RESOURCES ,INCLUDING THE CREATION OF A GEOTHERMAL DEVELOPMENT AUTHORITY .
(11) THE COLLECTION OF DATA CONDUCTED PURSUANT TO THIS SUBSECTION (1) IS CONTINGENT ON AVAILABLE APPROPRIATIONS OR GIFTS, GRANTS, ORDONATIONS RECEIVED FORTHIS PURPOSEAND DOES NOT IMPAIR THE COMMISSION'S OBLIGATION TO FULFILL EXISTING STATUTORY OR REGULATORYRESPONSIBILITIESOREXISTING PERMITTINGAND REGULATORY PROGRAMS.
(II) AY RECOMMENDED GEOTHERMAL DEVELOPMENT AUTHORITY MAY BE STRUCTURED TO FACILITATE PUBLIC -PRIVATE PARTNERSHIPS, SECURE FEDERAL FUNDING ,AND PROVIDE FINANCIAL RISK -MITIGATION MECHANISMS FOR DEEP EXPLORATORY DRILLING AND ASSOCIATED TRANSMISSION INFRASTRUCTURE OR FOR CONDUCTING THERMAL ENERGY NETWORK STUDIES OR DEVELOPING A THERMAL ENERGY NETWORK .
THE COMMISSION SHALLNOT REDUCE EXISTING COMMITMENTS OF MONEY MADE BY THE COMMISSION FROM THE SEVERANCE TAX OPERATIONAL FUND, CREATED IN SECTION 39-29-109 (2)(b)(I), OR THE GENERAL FUND TO CONDUCT THE DATA COLLECTION.
ANY RECOMMENDED GEOTHERMAL DEVELOPMENT AUTHORITY MUST BE NONREGULATORY IN NATURE .
(2)(a) THE COMMISSION SHALL DEVELOP RECOMMENDATIONS TO ENCOURAGE THE SAFE AND EFFECTIVE DEVELOPMENT OF GEOTHERMAL RESOURCES IN THE STATE.
(c) IN DEVELOPING THE RECOMMENDATIONS PURSUANT TO THIS PAGE 11-SENATE BILL 26-142 SUBSECTION (2)THE COMMISSION SHALL CONSULT WITH :
(b)(I)IN DEVELOPING THE RECOMMENDATIONS PURSUANT TO THIS SUBSECTION (2), THE COMMISSION MAY CONSIDER MEASURES THAT FACILITATE THE SAFE AND EFFECTIVE DEVELOPMENT OF GEOTHERMAL RESOURCES, INCLUDING THE CREATION OF A GEOTHERMAL DEVELOPMENT AUTHORITY.
(I) SATEAGENCIESWITHSUBJECTMATTEREXPERTISERELEVANTTO THE RECOMMENDATIONS ,INCLUDING:
(II)ANY RECOMMENDED GEOTHERMAL DEVELOPMENT AUTHORITY MAY BE STRUCTURED TO FACILITATE PUBLIC-PRIVATE PARTNERSHIPS, SECURE FEDERAL FUNDING, AND PROVIDE FINANCIAL RISK-MITIGATION MECHANISMS FOR DEEP EXPLORATORY DRILLING AND ASSOCIATED TRANSMISSION INFRASTRUCTURE OR FOR CONDUCTING THERMAL ENERGY NETWORK STUDIES OR DEVELOPING A THERMAL ENERGY NETWORK.
(A) THE COLORADO GEOLOGICAL SURVEY ;
ANY RECOMMENDED GEOTHERMAL DEVELOPMENT AUTHORITY MUST BE NONREGULATORY IN NATURE.
(c) IN DEVELOPING THE RECOMMENDATIONS PURSUANT TO THIS P A G E 11-SENATE BILL 26-142 SUBSECTION (2), THE COMMISSION SHALL CONSULT WITH:
(I)STATEAGENCIES WITH SUBJECTMATTEREXPERTISERELEVANTTO THE RECOMMENDATIONS, INCLUDING:
(A) THE COLORADO GEOLOGICAL SURVEY;
(C) THE DIVISION OF WATER RESOURCES IN THE DEPARTMENT OF NATURAL RESOURCES ;AND (D) THE COLORADO OFFICE OF ECONOMIC DEVELOPMENT CREATED IN SECTION24-48.5-101;
(C) THE DIVISION OF WATER RESOURCES IN THE DEPARTMENT OF NATURAL RESOURCES;
(II) STAKEHOLDERS WITH TECHNICAL OR ECONOMIC EXPERTISE REGARDING THE DEVELOPMENT OF GEOTHERMAL RESOURCES , AS DETERMINED BY THE COMMISSION ;AND (III) NYOTHERPERSONTHECOMMISSIONDETERMINESNECESSARY TO DEVELOP RECOMMENDATIONS FOR THE SAFE AND EFFECTIVE DEVELOPMENT OF GEOTHERMAL RESOURCES IN THE STATE .
AND (0) THE COLORADO OFFICE OF ECONOMIC DEVELOPMENT CREATED IN SECTION 24-48.5-101;
(3) ON OR BEFORE N OVEMBER 15, 2026THE COMMISSION SHALL SUBMIT A REPORT THAT SUMMARIZESTHE RECOMMENDATIONS DEVELOPED PURSUANT TO SUBSECTION (2) OF THIS SECTION TO THE HOUSE OF REPRESENTATIVES ENERGY AND ENVIRONMENT COMMITTEE AND THE SENATE TRANSPORTATION AND ENERGY COMMITTEE ,OR THEIR SUCCESSOR COMMITTEES .
(II) STAKEHOLDERS WITH TECHNICAL OR ECONOMIC EXPERTISE REGARDING THE DEVELOPMENT OF GEOTHERMAL RESOURCES, AS DETERMINED BY THE COMMISSION;
(4) THIS SUBSECTION (4)AND SUBSECTIONS (2)AND (3)OF THIS SECTION ARE REPEALED,EFFECTIVE SEPTEMBER 1, 2028.
AND (111ANY OTHERPERSONTHECOMMISSION DETERMINESNECESSARY TO DEVELOP RECOMMENDATIONS FOR THE SAFE AND EFFECTIVE DEVELOPMENT OF GEOTHERMAL RESOURCES IN THE STATE.
(3) ON OR BEFORE NOVEMBER 15, 2026, THE COMMISSION SHALL SUBMIT A REPORT THAT SUMMARIZES THE RECOMMENDATIONS DEVELOPED PURSUANT TO SUBSECTION (2) OF THIS SECTION TO THE HOUSE OF REPRESENTATIVES ENERGY AND ENVIRONMENT COMMITTEE AND THE SENATE TRANSPORTATION AND ENERGY COMMITTEE, ORTHEIR SUCCESSOR COMMITTEES.
(4) THIS SUBSECTION (4) AND SUBSECTIONS (2) AND (3) OF THIS SECTION ARE REPEALED, EFFECTIVE SEPTEMBER 1,2028.
In Colorado Revised Statutes, 40-2-127.5, amend (2)(a)(IV) as follows:
In Colorado Revised Statutes, 40-2-127amend (2)(a)(IV) as follows:
PAGE 12-SENATE BILL 26-142 (2) Definitions.Asusedinthissection,unlessthecontextotherwise requires, the definitions in section 40-2-124 apply, and:
PA G E 12-SENATE BILL 26-142 (2)Definitions.A s used in this section, unless the context otherwise requires, the definitions in section 40-2-124 apply, and:
(a) (IV) A community geothermal garden must have a nameplate rating of five NET ELECTRIC GENERATING CAPACITY OF TWENTY -FIVE megawatts or less.
(a) (IV) A community geothermal garden must have a nameplate rating of five NET ELECTRIC GENERATING CAPACITY OF TWENTY-FIVE megawatts or less.
except that the commission may, in rules adopted pursuant to subsection (3)(b) of this section, approve the formation of a community geothermal garden with a nameplate rating of up to ten megawatts.
except that the commission may, in rnlcs adopted pursuant to subsection (3)(b) of this section, apprnvc the formation of a community geothermal garden with a nanrcplatc rating of up to ten megawatts.
In Colorado Revised Statutes, add 40-2-143 as follows:
In Colorado Revised Statutes,add 40-2-143 as follows:
(1) Definitions.
( 1)Definitions.A s USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES:
AS USED IN THIS SECTION,UNLESS THE CONTEXT OTHERWISE REQUIRES :
(a) "INVESTOR-OWNED ELECTRIC UTILITY" OR "UTILITY" MEANS AN INVESTOR-OWNED UTILITY THAT PROVIDES RETAIL ELECTRIC SERVICE TO CUSTOMERS IN THE STATE AND IS REGULATED BY THE COMMISSION.
(a) "IVESTOR OWNED ELECTRIC UTILITY " OR "UTILITY" MEANS AN INVESTOR -OWNED UTILITY THAT PROVIDES RETAIL ELECTRIC SERVICE TO CUSTOMERS IN THE STATE AND IS REGULATED BY THE COMMISSION .
(b)"LARGE-SCALE GEOTHERMAL PROJECT" MEANS A GEOTHERMAL PROJECTORGEOTHERMAL PROJECTS IDENTIFIED BYAUTILITY PURSUANTTO SUBSECTION (3) OF THIS SECTION THAT INDIVIDUALLY OR IN AGGREGATE PRODUCE MORE THAN TWENTY-FIVE MEGAWATIS OFNAMEPLATE ELECTRIC GENERATING CAPACITY.
(b) "LARGE -SCALE GEOTHERMAL PROJECT " MEANS A GEOTHERMAL PROJECTORGEOTHERMALPROJECTSIDENTIFIEDBYAUTILITYPURSUANTTO SUBSECTION (3) OF THIS SECTION THAT INDIVIDUALLY OR IN AGGREGATE PRODUCE MORE THANTWENTY -FIVE MEGAWATTSOFNAMEPLATEELECTRIC GENERATING CAPACITY .
(c) "NET ELECTRIC GENERATING CAPACITY" MEANS THE MAXIMUM CONTINUOUS ELECTRICAL OUTPUT, EXPRESSED IN MEGAWATIS, DELIVERED TOTHETRANSMISSIONORDISTRIBUTIONSYSTEM, EXCLUDINGAUXILIARY OR PARASITIC LOADS REQUIRED FOR ON-SITE PLANT OPERATIONS.
(c) "NET ELECTRIC GENERATING CAPACITY "MEANS THE MAXIMUM CONTINUOUSELECTRICALOUTPUT ,EXPRESSEDINMEGAWATTS ,DELIVERED TOTHETRANSMISSIONORDISTRIBUTIONSYSTEM ,EXCLUDINGAUXILIARYOR PARASITIC LOADS REQUIRED FOR ON SITE PLANT OPERATIONS .
(d) "SMALL-SCALE GEOTHERMAL PROJECT" MEANS A GEOTHERMAL PROJECT IDENTIFIED BY A UTILITY PURSUANT TO SUBSECTION (2) OF THIS SECTIONTHATPRODUCESTWENTY-FIVEMEGAWATISORLESSOFNAMEPLATE ELECTRIC GENERATING CAPACITY.
(d) "SMALL -SCALE GEOTHERMAL PROJECT " MEANS A GEOTHERMAL PROJECT IDENTIFIED BY A UTILITY PURSUANT TO SUBSECTION (2)OF THIS SECTIONTHATPRODUCESTWENTY -FIVEMEGAWATTSORLESSOFNAMEPLATE ELECTRIC GENERATING CAPACITY .
PA G E 13-SENATE BILL 26-142 (2) Small-scale geothermal projects.
PAGE 13-SENATE BILL 26-142 (2) Small-scale geothermal projects.
(a) AN INVESTOR-OWNEDELECTRIC UTILITY SHALLIDENTIFY ONEOR MORE POTENTIAL SMALL-SCALE GEOTHERMAL PROJECTS AT SPECIFIC LOCATIONS OR AS COMMUNITY GEOTHERMAL GARDENS, AS DEFINED IN SECTION 40-2-127.5 (2)(a).
(a) ANINVESTOR -OWNEDELECTRICUTILITYSHALLIDENTIFYONEOR MORE POTENTIAL SMALL -SCALE GEOTHERMAL PROJECTS AT SPECIFIC LOCATIONS OR AS COMMUNITY GEOTHERMAL GARDENS ,AS DEFINED IN SECTION 40-2-127.5 (2)(a).
(b) WHEN CONSIDERING THE DEVELOPMENT OF SMALL-SCALE GEOTHERMAL PROJECTS, AN INVESTOR-OWNED ELECTRIC UTILITY SHALL ISSUE A REQUEST FOR PROPOSALS TO SOLICIT PROPOSALS AND BIDS FOR DEVELOPMENTOF SMALL-SCALE GEOTHERMAL PROJECTSTHATTHE UTILITY SHALL SUBMIT TO THE COMMISSION IN ACCORDANCE WITH SUBSECTION (2)(c) OF THIS SECTION.
(b) W HEN CONSIDERING THE DEVELOPMENT OF SMALL -SCALE GEOTHERMAL PROJECTS ,AN INVESTOR -OWNED ELECTRIC UTILITY SHALL ISSUE A REQUEST FOR PROPOSALS TO SOLICIT PROPOSALS AND BIDS FOR DEVELOPMENTOFSMALL -SCALEGEOTHERMALPROJECTSTHATTHEUTILITY SHALL SUBMIT TO THE COMMISSION IN ACCORDANCE WITH SUBSECTION (2)(c)OF THIS SECTIO.
(c) NO LATER THAN ONE HUNDRED TWENTY DAYS AFTER AN INVESTOR-OWNED ELECTRIC UTILITY CONCLUDES THE REQUEST FOR PROPOSALS CONDUCTED IN ACCORDANCE WITH SUBSECTION (2)(b) OF THIS SECTION, THE INVESTOR-OWNED ELECTRIC UTILITY SHALL SUBMIT AN APPLICATIONTOTHECOMMISSION FORTHE DEVELOPMENTOF SMALL-SCALE GEOTHERMAL PROJECTS IFTHE UTILITY RECEIVES A BID IN RESPONSE TO THE REQUESTFORPROPOSALS SOLICITED INACCORDANCE WITHTHIS SUBSECTION (2), WHICH APPLICATION MUST INCLUDE:
(c) NO LATER THAN ONE HUNDRED TWENTY DAYS AFTER AN INVESTOR OWNED ELECTRIC UTILITY CONCLUDES THE REQUEST FOR PROPOSALS CONDUCTED IN ACCORDANCE WITH SUBSECTION (2)(b)OF THIS SECTION, THE INVESTOR -OWNED ELECTRIC UTILITY SHALL SUBMIT AN APPLICATIONTOTHECOMMISSIONFORTHEDEVELOPMENTOFSMALL -SCALE GEOTHERMALPROJECTSIFTHEUTILITYRECEIVESABIDINRESPONSETOTHE REQUESTFORPROPOSALSSOLICITEDINACCORDANCEWITHTHISSUBSECTION (2),WHICH APPLICATION MUST INCLUDE:
(I)A DESCRIPTIONOFTHESMALL-SCALEGEOTHERMALPROJECTAND WHETHERITIS LOCATION SPECIFICORA COMMUNITY GEOTHERMALGARDEN;
(I) ADESCRIPTIONOFTHESMALL -SCALEGEOTHERMALPROJECTAND WHETHERITISLOCATIONSPECIFICORACOMMUNITYGEOTHERMALGARDEN ;
(II)THE PROPOSED LOCATION OF THE SMALL-SCALE GEOTHERMAL PROJECT;
(II) THE PROPOSED LOCATION OF THE SMALL SCALE GEOTHERMAL PROJECT;
(III) THE AMOUNT OF ELECTRICITY, MEASURED IN MEGAWATT-HOURS, THAT WILL BE GENERATED FROM THE SMALL-SCALE GEOTHERMALPROJECT;AND (IV) AN ESTIMATE OF THE PROJECTED TOTAL CAPITAL COST AND OPERATING COST OF THE SMALL-SCALE GEOTHERMAL PROJECT AND THE IMPACT THAT THE COST WILL HAVE ON THE UTILITY'S CUSTOMERS.
(III) THE AMOUNT OF ELECTRICITY, MEASURED IN MEGAWATT -HOURS ,THAT WILL BE GENERATED FROM THE SMALL -SCALE GEOTHERMAL PROJECT ;AND (IV) A N ESTIMATE OF THE PROJECTED TOTAL CAPITAL COST AND OPERATING COST OF THE SMALL SCALE GEOTHERMAL PROJECT AND THE IMPACT THAT THE COST WILL HAVE ON THE UTILITYS CUSTOMERS .
(d) THE COMMISSION SHALL APPROVE, CONDITIONALLY APPROVE, DENY, OR MODIFY AN INVESTOR-OWNED ELECTRIC UTILITY'S APPLICATION SUBMITTED PURSUANT TO THIS SUBSECTION (2) WITHIN ONE HUNDRED PA G E 14-SENATE BILL 26-142 TWENTY DAYS AFTER RECEIVlNG THE APPLICATION, OR WITHIN ONE HUNDRED EIGHTY DAYS AFTER RECEIVING THE APPLICATION, FOR GOOD CAUSE SHOWN.
(d) THE COMMISSION SHALL APPROVE ,CONDITIONALLY APPROVE , DENY ,OR MODIFY AN INVESTOR -OWNED ELECTRIC UTILITYS APPLICATION SUBMITTED PURSUANT TO THIS SUBSECTION (2)WITHIN ONE HUNDRED PAGE 14-SENATE BILL 26-142 TWENTY DAYS AFTER RECEIVING THE APPLICATION ,OR WITHIN ONE HUNDRED EIGHTY DAYS AFTER RECEIVING THE APPLICATION ,FOR GOOD CAUSE SHOWN .
(e) IN EVALUATING A SMALL-SCALE GEOTHERMAL PROJECT BID OR PROPOSAL, THE COMMISSION SHALL EVALUATE THE BID OR PROPOSAL SUBMITTED BY AN INVESTOR-OWNED ELECTRIC UTILITY BASED ON FACTORS THAT INCLUDE:
(e) IN EVALUATING A SMALL -SCALE GEOTHERMAL PROJECT BID OR PROPOSAL , THE COMMISSION SHALL EVALUATE THE BID OR PROPOSAL SUBMITTEDBYANINVESTOR -OWNEDELECTRICUTILITYBASEDONFACTORS THAT INCLUDE :
(I) THE PROJECTED TOTAL CAPITAL AND OPERATING COST OF THE SMALL-SCALE GEOTHERMAL PROJECT AND THE PROJECT'S IMPACT ON RATEPAYERS IS REASONABLE IN CONSIDERATION OF GREENHOUSE GAS EMISSION REDUCTIONS AND OTHER RELEVANT BENEFITS, INCLUDING RESOURCE ADEQUACY NEEDS, LONG-TERM CAPACITY ACCREDITATION, THE NEED FOR CLEAN FIRM GENERATION RESOURCES, AND ACHIEVING STATE ENERGY POLICY GOALS, AS DETERMINED BY THE COMMISSION;
(I) THE PROJECTED TOTAL CAPITAL AND OPERATING COST OF THE SMALL -SCALE GEOTHERMAL PROJECT AND THE PROJECT S IMPACT ON RATEPAYERS IS REASONABLE IN CONSIDERATION OF GREENHOUSE GAS EMISSION REDUCTIONS AND OTHER RELEVANT BENEFITS , INCLUDING RESOURCE ADEQUACY NEEDS ,LONG-TERM CAPACITY ACCREDITATION ,THE NEED FOR CLEAN FIRM GENERATION RESOURCES ,AND ACHIEVING STATE ENERGY POLICY GOALS ,AS DETERMINED BY THE COMMISSION ;AND (II) HEDEVELOPMENTOFTHESMALL -SCALEGEOTHERMALPROJECT IS IN THE PUBLIC INTEREST (f) AS PART OF AN APPLICATION SUBMITTED TO THE COMMISSION PURSUANT TO THIS SUBSECTION (2),THE INVESTOR OWNED ELECTRIC UTILITY SHALL REQUEST,AS APPROPRIATE :
AND (II)THEDEVELOPMENTOFTHESMALL-SCALEGEOTHERMALPROJECT IS IN THE PUBLIC INTEREST.
(I) A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY ;
(f) AS PART OF AN APPLICATION SUBMITTED TO THE COMMISSION PURSUANT TO THIS SUBSECTION (2),THE INVESTOR-OWNED ELECTRIC UTILITY SHALL REQUEST, AS APPROPRIATE:
(II) A PPROVAL FOR ANY PROCUREMENT AGREEMENTS AND ASSOCIATEDCOST RECOVERYBYTHE INVESTOR -OWNEDELECTRICUTILITY ;
(I)A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY;
AND (III) APPROVAL OF A RETURN ON INVESTED CAPITAL RECOVERY APPROACH FOR ANY USED AND USEFUL PROJECT OWNED BY THE INVESTOR OWNED ELECTRIC UTILITY THAT IS DEVELOPED IN ACCORDANCE WITH THIS SECTION.
(II) APPROVAL FOR ANY PROCUREMENT AGREEMENTS AND ASSOCIATED COST RECOVERY BY THE INVESTOR-OWNED ELECTRIC UTILITY;
AND (Ill)APPROVAL OF A RETURN ON INVESTED CAPITAL RECOVERY APPROACH FOR ANY USED AND USEFUL PROJECT OWNED BY THE INVESTOR-OWNED ELECTRIC UTILITY THAT IS DEVELOPED IN ACCORDANCE WITH THIS SECTION.
(a) (I) WHEN CONSIDERING THE DEVELOPMENT OF LARGE -SCALE GEOTHERMAL PROJECTS , AN INVESTOR -OWNED ELECTRIC UTILITY SHALL ISSUE A REQUEST FOR PROPOSALS TO SOLICIT PROPOSALS AND BIDS FOR PAGE 15-SENATE BILL 26-142 DEVELOPMENTOFLARGE -SCALEGEOTHERMALPROJECTSTHATTHEUTILITY SHALL SUBMIT TO THE COMMISSION IN ACCORDANCE WITH SUBSECTION (3)(b)OF THIS SECTIO.
(a) (I)WHEN CONSIDERING THE DEVELOPMENT OF LARGE-SCALE GEOTHERMAL PROJECTS, AN INVESTOR-OWNED ELECTRIC UTILITY SHALL ISSUE A REQUEST FOR PROPOSALS TO SOLICIT PROPOSALS AND BIDS FOR PAGE 15-SENATE BILL 26-142 DEVELOPMENTOF LARGE-SCALE GEOTHERMAL PROJECTS THATTHE UTILITY SHALL SUBMIT TO THE COMMISSION IN ACCORDANCE WITH SUBSECTION (3)(b)OF THIS SECTION.
(II) WHEN SOLICITING A REQUEST FOR PROPOSALS IN ACCORDANCE WITH THIS SUBSECTION (3)(a),THE INVESTOR-OWNED ELECTRIC UTILITY SHALL TARGET THE ACQUISITION OR DEVELOPMENT OF NO MORE THAN THREE HUNDRED MEGAWATTS OF NAMEPLATE ELECTRIC GENERATING CAPACITY FROM LARGE -SCALE GEOTHERMAL PROJECTS .
(II)WHEN SOLICITING A REQUEST FOR PROPOSALS IN ACCORDANCE WITH THIS SUBSECTION (3)(a)THE INVESTOR-OWNED ELECTRIC UTILITY SHALL TARGET THE ACQUISITION OR DEVELOPMENT OF NO MORE THAN THREE HUNDRED MEGAWAITS OF NAMEPLATE ELECTRIC GENERATING CAPACITY FROM LARGE-SCALE GEOTHERMAL PROJECTS.
(b) NO LATER THAN ONE HUNDRED TWENTY DAYS AFTER AN INVESTOR OWNED ELECTRIC UTILITY CONCLUDES THE REQUEST FOR PROPOSALS CONDUCTED IN ACCORDANCE WITH SUBSECTION (3)(a)OF THIS SECTION, THE INVESTOR -OWNED ELECTRIC UTILITY SHALL SUBMIT AN APPLICATIONTOTHECOMMISSIONFORTHEDEVELOPMENTOFLARGE -SCALE GEOTHERMALPROJECTSIFTHEUTILITYRECEIVESABIDINRESPONSETOTHE REQUESTFORPROPOSALSSOLICITEDINACCORDANCEWITHTHISSUBSECTION (3),WHICH APPLICATION MUST INCLUDE:
(b) NO LATER THAN ONE HUNDRED TWENTY DAYS AFTER AN INVESTOR-OWNED ELECTRIC UTILITY CONCLUDES THE REQUEST FOR PROPOSALS CONDUCTED IN ACCORDANCE WITH SUBSECTION (3)(a)OF THIS SECTION, THE INVESTOR-OWNED ELECTRIC UTILITY SHALL SUBMIT AN APPLICATION TOTHE COMMISSION FORTHE DEVELOPMENTOF LARGE-SCALE GEOTHERMAL PROJECTS IFTHE UTILITY RECEIVES A BID IN RESPONSE TOTHE REQUESTFORPROPOSALS SOLICITEDINACCORDANCE WITH THIS SUBSECTION (3),WHICH APPLICATION MUST INCLUDE:
(I) ADESCRIPTIONOFTHELARGE -SCALEGEOTHERMALPROJECTAND WHETHER IT IS A SINGLE PROJECT OR AN AGGREGATE OF MULTIPLE GEOTHERMAL PROJECTS ;
(I)A DESCRIPTIONOFTHE LARGE-SCALEGEOTHERMAL PROJECTAND WHETHER IT IS A SINGLE PROJECT OR AN AGGREGATE OF MULTIPLE GEOTHERMAL PROJECTS;
(II) TE PROPOSED LOCATION OR LOCATIONS OF THE LARGE -SCALE GEOTHERMAL PROJECT ;
(II)THE PROPOSED LOCATION OR LOCATIONS OF THE LARGE-SCALE GEOTHERMAL PROJECT;
(III) THE TOTAL AMOUNT OF ELECTRICITY , MEASURED IN MEGAWATT -HOURS ,THAT WILL BE GENERATED FROM THE LARGE -SCALE GEOTHERMAL PROJECT AND THE ACCREDITED CAPACITY ASSOCIATED WITH THE PROJECT OR PROJECTS;
(III) THE TOTAL AMOUNT OF ELECTRICITY, MEASURED IN MEGAWATT-HOURS, THAT WILL BE GENERATED FROM THE LARGE-SCALE GEOTHERMAL PROJECT AND THE ACCREDITED CAPACITY ASSOCIATED WITH THE PROJECT OR PROJECTS;
(IV) A N ESTIMATE OF THE PROJECTED TOTAL CAPITAL COST AND OPERATING COST OF THE LARGE SCALE GEOTHERMAL PROJECT AND THE IMPACT THAT THE COST WILL HAVE ON THE UTILITYS CUSTOMERS ;
(IV) AN ESTIMATE OF THE PROJECTED TOTAL CAPITAL COST AND OPERATING COST OF THE LARGE-SCALE GEOTHERMAL PROJECT AND THE IMPACT THAT THE COST WILL HAVE ON THE UTILITY'S CUSTOMERS;
(V) THE PROPOSED OWNERSHIP STRUCTURE FOR THE LARGE -SCALE GEOTHERMAL PROJECTS ,WHICH MAY INCLUDE FULL OR PARTIAL BUILD TRANSFER OWNERSHIP STRUCTURES ,JOINT VENTURES ,OR INDEPENDENT POWER PRODUCTION OWNERSHIP STRUCTURES WITH A POWER PURCHASE AGREEMENT ;AND PAGE 16-SENATE BILL 26-142 (VI) A DESCRIPTION OF ANY SPECIFIC CUSTOMER OR GROUP OF CUSTOMERS THAT THE INVESTOR OWNED ELECTRIC UTILITY MAY PARTNER WITH TO SUPPORT THE DEVELOPMENT OF A LARGE SCALE GEOTHERMAL PROJECT IN ACCORDANCE WITH SUBSECTION (3)(d)OF THIS SECTIO.
(V) THE PROPOSED OWNERSHIP STRUCTURE FOR THE LARGE-SCALE GEOTHERMAL PROJECTS, WHICH MAY INCLUDE FULL OR PARTIAL BUILD TRANSFER OWNERSHIP STRUCTURES, JOINT VENTURES, OR INDEPENDENT POWER PRODUCTION OWNERSHIP STRUCTURES WITH A POWER PURCHASE AGREEMENT;
(c) THE COMMISSION SHALL APPROVE ,CONDITIONALLY APPROVE , DENY ,OR MODIFY AN INVESTOR -OWNED ELECTRIC UTILITY S APPLICATION SUBMITTED PURSUANT TO THIS SUBSECTION (3)WITHIN ONE HUNDRED TWENTY DAYS AFTER RECEIVING THE APPLICATION , OR WITHIN ONE HUNDRED EIGHTY DAYS AFTER RECEIVING THE APPLICATION , FOR GOOD CAUSE SHOWN .
AND PAGE 16-SENATE BILL 26-142 (VI) A DESCRIPTION OF ANY SPECIFIC CUSTOMER OR GROUP OF CUSTOMERS THAT THE INVESTOR-OWNED ELECTRIC UTILITY MAY PARTNER WITH TO SUPPORT THE DEVELOPMENT OF A LARGE-SCALE GEOTHERMAL PROJECT IN ACCORDANCE WITH SUBSECTION (3)(d)OF THIS SECTION.
(d) IN EVALUATING A LARGE -SCALE GEOTHERMAL PROJECT BID OR PROPOSAL ,THE COMMISSION SHALL EVALUATE THE BID OR PROPOSAL SUBMITTEDBYANINVESTOR -OWNEDELECTRICUTILITYBASEDONWHETHER :
(C) THE COMMISSION SHALL APPROVE, CONDITIONALLY APPROVE, DENY, OR MODIFY AN INVESTOR-OWNED ELECTRIC UTILITY'S APPLICATION SUBMITTED PURSUANT TO THIS SUBSECTION (3) WITHIN ONE HUNDRED TWENTY DAYS AFTER RECEIVING THE APPLICATION, OR WITHIN ONE HUNDRED EIGHTY DAYS AFTER RECEIVING THE APPLICATION, FOR GOOD CAUSE SHOWN.
(I) THE PROJECTED TOTAL CAPITAL AND OPERATING COST OF THE LARGE -SCALE GEOTHERMAL PROJECT AND THE PROJECT S IMPACT ON RATEPAYERS IS REASONABLE IN CONSIDERATION OF RELIABILITY, GREENHOUSEGASEMISSIONREDUCTIONS ,ANDOTHERRELEVANTBENEFITS , INCLUDING RESOURCE ADEQUACY NEEDS , LONG -TERM CAPACITY ACCREDITATION ,THE NEED FOR CLEAN FIRM GENERATION RESOURCES TO MAKE PROGRESS TOWARD THE ECONOMY WIDE GOAL OF NET -ZERO EMISSIONS BY 2050, AND ACHIEVING STATE ENERGY POLICY GOALS , AS DETERMINED BY THE COMMISSION ;AND (II) HEDEVELOPMENTOFTHELARGE -SCALEGEOTHERMALPROJECT IS IN THE PUBLIC INTEREST (e) A S PART OF AN APPLICATION SUBMITTED TO THE COMMISSION PURSUANT TO THIS SUBSECTION (3),THE INVESTOR -OWNED ELECTRIC UTILITY MAY REQUEST ,TO THE EXTENT NECESSARY :
(d) IN EVALUATING A LARGE-SCALE GEOTHERMAL PROJECT BID OR PROPOSAL, THE COMMISSION SHALL EVALUATE THE BID OR PROPOSAL SUBMITTEDBYAN INVESTOR-OWNEDELECTRICUTILITY BASEDON WHETHER:
(I) ACERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY ;
(I) THE PROJECTED TOTAL CAPITAL AND OPERATING COST OF THE LARGE-SCALE GEOTHERMAL PROJECT AND THE PROJECT'S IMPACT ON RATEPAYERS IS REASONABLE IN CONSIDERATION OF RELIABILITY, GREENHOUSE GAS EMISSION REDUCTIONS, AND OTHERRELEVANT BENEFITS, INCLUDING RESOURCE ADEQUACY NEEDS, LONG-TERM CAPACITY ACCREDITATION, THE NEED FOR CLEAN FIRM GENERATION RESOURCES TO MAKE PROGRESS TOWARD THE ECONOMY-WIDE GOAL OF NET-ZERO EMISSIONS BY 2050, AND ACHIEVING STATE ENERGY POLICY GOALS, AS DETERMINED BY THE COMMISSION;
(II) A PPROVAL FOR ANY PROCUREMENT AGREEMENTS AND ASSOCIATEDCOST RECOVERYBYTHE INVESTOR -OWNEDELECTRICUTILITY ;
AND (II)THE DEVELOPMENTOFTHELARGE-SCALEGEOTHERMALPROJECT IS ITHE PUBLIC INTEREST.
AND (III) APPROVAL OF A RETURN ON INVESTED CAPITAL RECOVERY PAGE 17-SENATE BILL 26-142 APPROACH FOR ANY PROJECT OWNED BY THE INVESTOR OWNED ELECTRIC UTILITY THAT IS DEVELOPED IN ACCORDANCE WITH THIS SECTION .
(e) A s PART OF AN APPLICATION SUBMITTED TO THE COMMISSION PURSUANT TO THIS SUBSECTION (3),THE INVESTOR-OWNED ELECTRIC UTILITY MAY REQUEST, TO THE EXTENT NECESSARY:
(f) AN INVESTOR -OWNEDELECTRICUTILITYMAYONLYSUBMIT ONE APPLICATION TO THE COMMISSION PURSUANT TO THIS SUBSECTION (3).
(I)A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY;
N INVESTOR -OWNED ELECTRIC UTILITY SHALL USE THE EXPERIENCE FROM CONDUCTING THE SOLICITATION AND SUBMITTING AN APPLICATION PURSUANT TO THIS SUBSECTION (3)TO INFORM THE UTILITY S APPROACH IN FUTUREELECTRICRESOURCEPLANPROCEEDINGSRELATEDTOGEOTHERMAL ENERGY DEVELOPMENT AND OTHER CLEAN FIRM TECHNOLOGIES .
(II) APPROVAL FOR ANY PROCUREMENT AGREEMENTS AND ASSOCIATED COST RECOVERY BY THE INVESTOR-OWNED ELECTRIC UTILITY;
AND (Ill)APPROVAL OF A RETURN ON INVESTED CAPITAL RECOVERY PAGE 17-SENATE BILL 26-142 APPROACH FOR ANY PROJECT OWNED BY THE INVESTOR-OWNED ELECTRIC UTILITY THAT IS DEVELOPED IN ACCORDANCE WITH THIS SECTION.
(f)AN INVESTOR-OWNED ELECTRIC UTILITY MAY ONLY SUBMIT ONE APPLICATION TO THE COMMISSION PURSUANT TO THIS SUBSECTION (3).
AN INVESTOR-OWNED ELECTRIC UTILITY SHALL USE THE EXPERIENCE FROM CONDUCTING THE SOLICITATION AND SUBMITTING AN APPLICATION PURSUANT TO THIS SUBSECTION (3) TO INFORM THE UTILITY'S APPROACH IN FUTUREELECTRIC RESOURCE PLAN PROCEEDINGS RELATEDTOGEOTHERMAL ENERGY DEVELOPMENT AND OTHER CLEAN FIRM TECHNOLOGIES.
A SMALL -SCALE GEOTHERMAL PROJECT ORALARGE SCALE GEOTHERMALPROJECT AUTHORIZED PURSUANT TO THIS SECTION THAT IS CONSIDERED AN ENERGY SECTOR PUBLICWORKS PROJECT , AS DEFINED IN SECTION 24-92-303 (5)MUST COMPLY WITH :
A SMALL-SCALE GEOTHERMAL PROJECT ORA LARGE-SCALE GEOTHERMAL PROJECT AUTHORIZED PURSUANT TO THIS SECTION THAT IS CONSIDERED AN ENERGY SECTOR PUBLIC WORKS PROJECT, AS DEFINED IN SECTION 24-92-303 (5), MUST COMPLY WITH:
(a) THE PREVAILING WAGE REQUIREMENTSINPART 2OFARTICLE 92 OF TITLE24;
(a) THE PREVAILING WAGE REQUIREMENTS IN PART2 OF ARTICLE 92 OF TITLE 24;
(b) T HE APPRENTICESHIP UTILIZATION REQUIREMENTS IN SECTION 24-92-115 (7);AND (c) THELABORREQUIREMENTSINPART 3OFARTICLE 92OFTITLE 24.
(b) THE APPRENTICESHIP UTILIZATION REQUIREMENTS IN SECTION 24-92-115 (7);AND (c) THE LABOR REQUIREMENTS IN PART 3 OFARTICLE 92 OFTITLE 24.
(5) Rules.T HE COMMISSIONMAYADOPT ANYRULESNECESSARYTO IMPLEMENT AND ENFORCE THIS SECTION .
(5) Rules.
SECTION11.
THE COMMISSION MAY ADOPT ANY RULES NECESSARY TO IMPLEMENT AND ENFORCE THIS SECTION.
InColoradoRevisedStatutes,40-4-121,add(1)(e.5) and (7) as follows:
SECTION 11.
In Colorado Revised Statutes, 40-4-12add (l)(e.5) and (7)as follows:
Thermalenergy networkprojects- pilot programfor large gas utilities - application - commission proceeding - reporting - thermal energy network for local governments - definitions.
Thermal energy network projects - pilot program for large gas utilities - application - commission proceeding - reporting - thermal energy network for local governments - definitions.
(e.5) "SPECIAL DISTRICT"HAS THE MEANING SET FORTH IN SECTION 32-1-103 (20).
(e.5) "SPECIAL DISTRICT" HAS THE MEANING SET FORTH IN SECTION 32-1-103 (20).
(7) A LOCALGOVERNMENTORASPECIALDISTRICTMAYAGGREGATE PAGE 18-SENATE BILL 26-142 THERMAL ENERGY DEMAND FOR THE PURPOSE OF FACILITATING SERVICE FROM A THERMAL ENERGY NETWORK IN ACCORDANCE WITH SECTION 29-1-208.
(7)A LOCALGOVERNMENTORA SPECIALDISTRICTMAY AGGREGATE PA G E 18-SENATE BILL 26-142 THERMAL ENERGY DEMAND FOR THE PURPOSE OF FACILITATING SERVICE FROM A THERMAL ENERGY NETWORK IN ACCORDANCE WITH SECTION 29-1-208.
on the day following the expiration of the ninety-day period after final adjournment of the general assembly(August 12, 2026, if adjournment sine die is on May 13, 2026);
on the day following the expiration of the ninety-day period after final adjournment ofthe general assembly (August 12, 2026, if adjournment sine die is on May 13, 2026);
except that, if a referendumpetitionisfiledpursuanttosection1(3)ofarticleVofthestate constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless PAGE 19-SENATE BILL 26-142 approvedbythepeopleatthegeneralelectiontobeheldinNovember2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.
except that, if a referendumpetition is filed pursuantto section 1(3) ofarticle V ofthe state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless PAGE 19-SENATE BILL 26-142 approved bythe people at the general election to be held inNovember2026 and, in such case, will take effect on the date ofthe official declaration of the vote thereon by the governor.
____________________________ ____________________________ James Rashad Coleman, Sr.
PRESIDENT OF Coleman, Sr.
Julie McCluskie PRESIDENT OF SPEAKER OF THE HOUSE THE SENATE OF REPRESENTATIVES ____________________________ ____________________________ Esther van Mourik Vanessa Reilly SECRETARY OF CHIEF CLERK OF THE HOUSE THE SENATE OF REPRESENTATIVES APPROVED________________________________________ (Date and Time) _________________________________________ Jared S.
SPEAKER OF THE HOUSE THE SENATE OF REPRESENTATIVES v ~ fk id12 ,y SECRETARY OFurik CHIEF CLERK OF THE HOUSE THE SENATE OF REPRESENTATIVES APPROVED oh VY\V \P.J "Zl\JL;--2 .
Polis GOVERNOR OF THE STATE OF COLORADO PAGE 20-SENATE BILL 26-142
o ~~ \l:4 ~ O \(h a e and Time) PAGE 20-SENATE BILL 26-142
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Action History

  1. Governor Signed

  2. Signed by the President of the Senate

  3. Signed by the Speaker of the House

  4. Sent to the Governor

  5. Senate Considered House Amendments - Result was to Concur - Repass

  6. House Third Reading Passed - No Amendments

  7. House Second Reading Special Order - Passed with Amendments - Committee

  8. House Committee on Energy & Environment Refer Amended to House Committee of the Whole

  9. Senate Third Reading Passed - No Amendments

  10. Introduced In House - Assigned to Energy & Environment

  11. Senate Second Reading Passed with Amendments - Committee

  12. Senate Committee on Transportation & Energy Refer Amended to Senate Committee of the Whole

  13. Introduced In Senate - Assigned to Transportation & Energy

Sponsors

Sponsorship breakdown

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4 sponsors · 25 co-sponsors · 72 not signed on · 7 voted No

Sponsors (4)

Co-sponsors (25)

Not signed on (72)

72 members have not signed on to this bill.

Show all 72 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

CONCUR

Passed 33 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 5000
Democrat 19002
Republican 9001
Total 33003
% of votes cast 92%0%0%8%
How each member voted (36)
Member Party Vote
Gonzales J. — Yea
Pelton B. — Yea
Pelton R. — Yea
President — Yea
Adrienne Benavidez — Yea
Cathy Kipp Democrat Yea
Chris Kolker Democrat Yea
Dylan Roberts Democrat Yea
Iman Jodeh Democrat Yea
James Coleman Democrat Yea
Janice Marchman Democrat Not Voting
Jeff Bridges Democrat Yea
Jessie Danielson Democrat Not Voting
Judy Amabile Democrat Yea
Katie Wallace Democrat Yea
Kyle Mullica Democrat Yea
Lindsey Daugherty Democrat Yea
Lisa Cutter Democrat Yea
Marc Snyder Democrat Yea
Matt Ball Democrat Yea
Mike Weissman Democrat Yea
Nick Hinrichsen Democrat Yea
Robert Rodriguez Democrat Yea
Tom Sullivan Democrat Yea
Tony Exum Democrat Yea
William Lindstedt Democrat Yea
Barbara Kirkmeyer Republican Not Voting
Cleave Simpson Republican Yea
Janice Rich Republican Yea
John Carson Republican Yea
Larry Liston Republican Yea
Lisa Frizell Republican Yea
Lynda Zamora Wilson Republican Yea
Marc Catlin Republican Yea
Mark Baisley Republican Yea
Scott Bright Republican Yea

Official roll call →

REPASS

Passed 26 Yea · 7 Nay · 3 Other
Party YeaNayPresentNot Voting
Democrat 19002
Republican 3601
Unaffiliated 4100
Total 26703
% of votes cast 72%19%0%8%
How each member voted (36)
Member Party Vote
Gonzales J. — Yea
Pelton B. — Yea
Pelton R. — Nay
President — Yea
Adrienne Benavidez — Yea
Cathy Kipp Democrat Yea
Chris Kolker Democrat Yea
Dylan Roberts Democrat Yea
Iman Jodeh Democrat Yea
James Coleman Democrat Yea
Janice Marchman Democrat Not Voting
Jeff Bridges Democrat Yea
Jessie Danielson Democrat Not Voting
Judy Amabile Democrat Yea
Katie Wallace Democrat Yea
Kyle Mullica Democrat Yea
Lindsey Daugherty Democrat Yea
Lisa Cutter Democrat Yea
Marc Snyder Democrat Yea
Matt Ball Democrat Yea
Mike Weissman Democrat Yea
Nick Hinrichsen Democrat Yea
Robert Rodriguez Democrat Yea
Tom Sullivan Democrat Yea
Tony Exum Democrat Yea
William Lindstedt Democrat Yea
Barbara Kirkmeyer Republican Not Voting
Cleave Simpson Republican Yea
Janice Rich Republican Nay
John Carson Republican Nay
Larry Liston Republican Nay
Lisa Frizell Republican Yea
Lynda Zamora Wilson Republican Nay
Marc Catlin Republican Yea
Mark Baisley Republican Nay
Scott Bright Republican Nay

Official roll call →

Refer Senate Bill 26-142, as amended, to the Committee of the Whole.

Passed 13 Yea · 0 Nay
Party YeaNayPresentNot Voting
Republican 4000
Democrat 9000
Total 13000
% of votes cast 100%0%0%0%
How each member voted (13)
Member Party Vote
Alex Valdez Democrat Yea
Amy Paschal Democrat Yea
Elizabeth Velasco Democrat Yea
Jamie Jackson Democrat Yea
Jenny Willford Democrat Yea
Junie Joseph Democrat Yea
Lesley Smith Democrat Yea
Lori Goldstein Democrat Yea
Manny Rutinel Democrat Yea
Carlos Barron Republican Yea
Dan Woog Republican Yea
Ken DeGraaf Republican Yea
Ty Winter Republican Yea

Official roll call →

BILL

Passed 28 Yea · 7 Nay · 1 Other
Party YeaNayPresentNot Voting
Democrat 20001
Republican 4600
Unaffiliated 4100
Total 28701
% of votes cast 78%19%0%3%
How each member voted (36)
Member Party Vote
Gonzales J. — Yea
Pelton B. — Yea
Pelton R. — Nay
President — Yea
Adrienne Benavidez — Yea
Cathy Kipp Democrat Yea
Chris Kolker Democrat Yea
Dylan Roberts Democrat Yea
Iman Jodeh Democrat Yea
James Coleman Democrat Yea
Janice Marchman Democrat Yea
Jeff Bridges Democrat Yea
Jessie Danielson Democrat Not Voting
Judy Amabile Democrat Yea
Katie Wallace Democrat Yea
Kyle Mullica Democrat Yea
Lindsey Daugherty Democrat Yea
Lisa Cutter Democrat Yea
Marc Snyder Democrat Yea
Matt Ball Democrat Yea
Mike Weissman Democrat Yea
Nick Hinrichsen Democrat Yea
Robert Rodriguez Democrat Yea
Tom Sullivan Democrat Yea
Tony Exum Democrat Yea
William Lindstedt Democrat Yea
Barbara Kirkmeyer Republican Yea
Cleave Simpson Republican Yea
Janice Rich Republican Nay
John Carson Republican Nay
Larry Liston Republican Nay
Lisa Frizell Republican Yea
Lynda Zamora Wilson Republican Nay
Marc Catlin Republican Yea
Mark Baisley Republican Nay
Scott Bright Republican Nay

Official roll call →

Refer Senate Bill 26-142, as amended, to the Committee of the Whole.

Passed 5 Yea · 2 Nay · 2 Other
Party YeaNayPresentNot Voting
Republican 0201
Democrat 5001
Total 5202
% of votes cast 56%22%0%22%
How each member voted (9)
Member Party Vote
Kyle Mullica Democrat Yea
Lisa Cutter Democrat Yea
Matt Ball Democrat Yea
Tom Sullivan Democrat Yea
Tony Exum Democrat Yea
William Lindstedt Democrat Not Voting
Byron Pelton Republican Not Voting
Mark Baisley Republican Nay
Rod Pelton Republican Nay

Official roll call →

Subjects

energy
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 142 do?
The act authorizes a local government or a special district (local government) to enter into an agreement with one or more entities for the purpose of providing the local government with service from a thermal energy network. A local government that is authorized by law to issue bonds may issue bonds for the purpose of financing thermal energy infrastructure, interconnections, or customer connections within the jurisdiction of the local government.     The act increases the net electric generating capacity of a community geothermal garden from 5 megawatts to 25 megawatts.     The act requires the Colorado energy and carbon management commission (commission) and the Colorado geological survey to collect data and information related to geological resources in the state. The commission shall make recommendations to encourage safe and effective development of geothermal resources and report those recommendations to the general assembly on or before November 15, 2026.     The act requires investor-owned electric utilities (utilities) to identify small-scale geothermal projects and large-scale geothermal projects (geothermal projects). The utility must solicit proposals for the development of small-scale geothermal projects of up to 25 megawatts of net electric generating capacity and large-scale geothermal projects that are greater than 25 megawatts of net electric generating capacity. The utility shall submit applications for the development of the geothermal projects to the public utilities commission if the utility receives a bid in response to the request for proposals. The public utilities commission must review the application and approve, conditionally approve, deny, or modify the application within 120 days after receiving the application.(Note: This summary applies to this bill as enacted.)
Who sponsors SB 142?
SB 142 is sponsored by Adrienne Benavidez, L. Smith, G. Rydin, M. Rutinel, J. Phillips, A. Paschal, K. Nguyen, K. McCormick, J. McCluskie, B. Marshall, J. Jackson, L. Goldstein, M. Duran, J. Bacon, J. Joseph, R. Gonzalez, Matt Ball (Democrat), Cathy Kipp (Democrat), Judy Amabile (Democrat), Jeff Bridges (Democrat), James Coleman (Democrat), Lisa Cutter (Democrat), Lindsey Daugherty (Democrat), Tony Exum (Democrat), William Lindstedt (Democrat), Kyle Mullica (Democrat), Dylan Roberts (Democrat), Marc Snyder (Democrat), and Iman Jodeh (Democrat).
What is the current status of SB 142?
This bill has been enacted into law. Introduced March 19, 2026. Enacted.
Where can I track SB 142?
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