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First Regular Session Seventy-fourth General Assembly STATE OF COLORADO ENGROSSED This Version Includes All Amendments Adopted on Second Reading in the House of Introduction LLS NO.
SB016_H_APP.003 HOUSE COMMITTEE OF REFERENCE REPORT _______________________________ April 26, 2023 Chair of Committee Date Committee on Appropriations.
23-0213.01 Jennifer Berman x3286 SENATE BILL 23-016 SENATE SPONSORSHIP Hansen, HOUSE SPONSORSHIP McCormick and Sirota, Senate Committees House Committees Transportation & Energy Finance Appropriations A BILL FOR AN ACT CONCERNING MEASURES TO PROMOTE REDUCTIONS IN GREENHOUSE GAS EMISSIONS IN C OLORADO , AND , IN CONNECTION THEREWITH ,MAKING AN APPROPRIATION .
After consideration on the merits, the Committee recommends the following:
Bill Summary (Note:
SB23-016 be amended as follows, and as so amended, be referred to the Committee of the Whole with favorable recommendation:
This summary applies to this bill as introduced and does notreflectanyamendmentsthatmaybesubsequentlyadopted.Ifthisbill 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 requires that, beginning in 2024, each insurance company issued a certificate of authorityto transact insurance business that reports more than $100 million on its annual schedule T g filingwiththeNationalAssociationofInsuranceCommissioners(NAIC) d e 2 must participate in and complete the NAIC's "Insurer Climate Risk T R 2 A n 3 Shading denotes HOUSE amendment.
Amendreengrossedbill,page12,line18,strike"A N "andsubstitute"A".
Double underlining denotes SENATE amendment.
Page 19, after line 7 insert:
E d i Capital letters or bold & italic numbers indicate new material to be added to existing law.
"(d) T HE QUALIFIED RETAILER MAY RETAIN FROM THE CREDIT ALLOWEDINTHISSECTIONANADMINISTRATIVEFEENOTTOEXCEEDTHREE PERCENTOFTHEPURCHASEPRICEOFTHENEW ,ELECTRIC POWEREDLAWN EQUIPMENT SOLD .".
Dashes through the words or numbers indicate deletions from existing law.
Reletter succeeding paragraph accordingly.
e A A Disclosure Survey" or successor survey or reporting mechanism.
Page 19, strike lines 17 through 21 and substitute:
Section 2 requires the public employees' retirement association (PERA) board, on or before June 1, 2024, to adopt proxy voting procedures that ensure that the board's voting decisions align with, and are supportive of, the statewide greenhouse gas (GHG) emission reduction goals.
"(II) B EFORE SELLING A PIECE OF NEW , ELECTRIC-POWERED LAWN ".
Section 3 requires PERA to include as part of its annual investment stewardship report, which report is posted on the PERA board's website, a description of climate-related investment risks, impacts, and strategies.
Page 21, strike lines 13 through 19.
Section 4 adds wastewater thermal energy equipment to the definition of "pollution control equipment", which equipment may be certifiedbythe division of administration (division) in the department of public health and environment (CDPHE).
Renumber succeeding sections accordingly.
Similarly, section 5 adds wastewater thermal energy to the definition of "clean heat resource", which resource a gas distribution utility includes in its clean heat plan filed with the public utilities commission.
Page 29, before line 22 insert:
Section6updatesthestatewideGHG emission reduction goals to add a 65% reduction goal for 2035, an 80% reduction goal for 2040, and a 90% reduction goal for 2045 when compared to 2005 GHG pollution levels.
"SECTION 22.
Section 6 also increases the 2050 GHG emission reduction goal from 90% of 2005 GHG pollution levels to 100%.
In Colorado Revised Statutes, 40-42-104, add (4.5) as follows:
Section 7 gives the oil and gas conservation commission (COGCC) authority over class VI injection wells used for sequestration of GHG if the governor and COGCC determine, in accordance with a study that the COGCC conducted in 2021, that the state has sufficient resources to ensure the safe and effective regulation of the sequestration of GHG.
40-42-104.
If the governor and the COGCC determine there are sufficient resources, the COGCC may seek primacy under the federal "Safe Drinking Water Act" and, when granted, may issue and enforce permits for class VI injection wells.
General and specific powers and duties of the authority.
The COGCC shall require, as part of its regulationofclassVIinjectionwells,thatoperatorsofthewellsmaintain adequate financial assurance until the COGCC approves the closure of a class VI injection well site.
(4.5) ON AND AFTER JULY 1, 2024,THE AUTHORITY SHALL OPERATEONAFISCALYEARTHATALIGNSWITHTHESTATEFISCALYEAR .".
Section 8 establishes a state income tax credit in an amount equal to 30% of the purchase price for new, electric-powered lawn equipment for purchases made in income tax years 2024 through 2026.
Renumber succeeding sections accordingly.
A seller of new,electric-poweredlawnequipmentthatdemonstratesthatitprovided a purchaser a 30% discount from the purchase price of new, electric-powered lawn equipment may claim the tax credit.
Page 32, strike lines 11 through 27 and substitute:
Current law requires an electric retail utility(utility) to offer a net metering credit as the means of purchasing output from a community solar garden (CSG) located within the utility's service territory and establishes the means of calculating the net metering credit.
"SECTION 26.
Section 9 maintainsthatcalculationiftheCSGindicatestotheutilitythattheCSG's -2- 016 subscribers'billcreditschangeannually.IftheCSGindicatestotheutility that the CSG's subscribers' bill credits remain fixed, however, section 9 provides a different calculation for determining the net metering credit.
Sections 10 through 12 incorporate projects to renovate or reconditionexistingutilitytransmission linesintothe"ColoradoElectric TransmissionAuthorityAct",allowingtheColoradoelectrictransmission authority to finance and renovate, rebuild, or recondition existing transmissionlinesinorderto update and optimize the transmission lines.
Section 13 requires a local government to expedite its review of a land use application that proposes a project to renovate, rebuild, or recondition existing transmission lines.
Section14makesaconformingamendmentregardingtheupdated statewide GHG emission reduction goals set forth in section 6.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1.
In Colorado Revised Statutes, add 10-3-244 as follows:
10-3-244.
Climateriskdisclosure-insurerparticipation-rules - reporting - definition.
(1) TOMMISSIONER SHALL ADOPT RULES REQUIRINGTHAT ,BEGINNINGIN 2024,ANINSURERISSUEDACERTIFICATE OF AUTHORITY TO TRANSACT BUSINESS PURSUANT TO PART 1 OF THIS ARTICLE3 THATREPORTSMORETHANONEHUNDREDMILLIONDOLLARSON ITS ANNUAL NAIC SCHEDULE T FILIN,OR SUCH OTHER THRESHOLD DOLLAR AMOUNT THAT THE NAIC ESTABLISHES IN SUBSEQUENT YEARS, MUST PARTICIPATE IN AND COMPLETE THE NAIC' S ANNUAL "INSURER C LIMATE RISK DISCLOSURE SURVEY", OR SUCH OTHER SURVEY OR REPORTINGMECHANISMTHATTHE NAIC ADOPTSINSUBSEQUENTYEARS .
IF AN INSURER REPORTS LESS THAN ONE HUNDRED MILLION DOLLARS ON ITS ANNUAL NAIC SCHEDULE T FILIN, OR SUCH OTHER THRESHOLD DOLLAR AMOUNT THAT THE NAIC ESTABLISHES IN SUBSEQUENT YEARS, THE INSURER MAY PARTICIPATE IN AND COMPLETE THE SURVEY VOLUNTARILY .
-3- 016 (2) A S USED IN THIS SECTI, "NAIC" MEANS THE N ATIONAL A SSOCIATION OFINSURANCE COMMISSIONERS ,AN ORGANIZATION OF INSURANCEREGULATORSFROMTHEFIFTYSTATESOFTHE U NITEDSTATES , THE DISTRICT OFCOLUMBIA ,AND FIVEUNITED STATES TERRITORIE.
SECTION2.
In Colorado RevisedStatutes,24-38.5-102amend (1) as follows:
24-38.5-102.
Colorado energy office - duties and powers.
(1) The Colorado energy office shall:
(a) Work with communities, utilities, private and public organizations and individuals to promote (I) SUPPORT ACHIEVING LEGISLATIVE GOALS TO REDUCE STATEWIDE GREENHOUSE GAS POLLUTION , AS DEFINED IN SECTION 25-7-103(22.5);
(II) MAKE PROGRESS TOWARD ELIMINATING GREENHOUSE GAS POLLUTION FROM ELECTRICITY GENERATION , GAS UTILITIES, AND TRANSPORTATION ;
(I)(III)MPLEMENT the renewable energystandard established in section 40-2-124;
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(II) Clean and(IV) SUPPORT THE DEPLOYMENT OF renewable energy, such as wind, hydroelectricity, solar,HYDROGEN , and geothermal;
(III)V) E VALUATE, AND WHEN APPROPRIATE , SUPPORT THE DEPLOYMENT OF cleaner energy sources such as biogas, biomass, and CLEAN HYDROGEN ,GEOTHERMAL ,RECOVERED METHANE ,RECOVERED HEAT ,AND ADVANCED nuclear;
(IV) Traditional energy sources such as oil and other petroleum products, coal, propane, and natural gas;
-4- 016 (V) (VI) SUPPORT THE DEPLOYMENT OF energy efficiencAND ENERGY LOAD MANAGEMENT technologies and practices;
(VI) Cleaner technologies by utilizing traditional, Colorado-sourced energy;
(VII) New EVALUATE ,AND WHERE APPROPRIATE ,SUPPORT THE DEPLOYMENTOFINNOVATIVE energytechnologiesasdescribedinsection 40-2-123;
and (VIII) SUPPORT THE DEPLOYMENT OF energy storage systems, INCLUDING BOTH LONG -DURATION AND SHORT DURATION ENERGY STORAGE ;
(IX) S UPPORT THE IMPLEMENTATION OF CLEAN HEAT PLANS PURSUANT TO SECTION 40-3.2-108;
(X) SUPPORT WIDESPREAD TRANSPORTATION ELECTRIFICATION;
(XI) SUPPORT BENEFICIAL ELECTRIFICATION,AS DEFINED IN SECTION 40-1-102(1.2IN THE BUILDIN,INDUSTRIAL,AND OIL AND GAS SECTORS ;
(XII) SUPPORT INDUSTRIAL EMISSIONS REDUCTION;
(XIII) SUPPORT POLLUTION REDUCTION THROUGH CARBON CAPTURE AND SEQUESTRATION AND OTHER FORMS OF CARBON MANAGEMENT ;AND (XIV) SUPPORTSUSTAINABLELAND -USEPATTERNSTHATREDUCE ENERGY CONSUMPTION AND GREENHOUSE GAS POLLUTION .
(b) Develop programs to promote high performanceEDUCE ENERGY USE AND GREENHOUSE GAS POLLUTION FROM buildings fIN commercial and residential markets;
(c) Make SUPPORT EFFORTS TO REDUCE GREENHOUSE GAS POLLUTION BY state government more THROUGH energy efficient -5- 016 EFFICIENCYLOADMANAGEMENT ,RENEWABLEENERGY ,TRANSPORTATION ELECTRIFICATION,AND CLEANER PROCUREMENT ;
(d) Promote technology transfer and economic development;
(e) Advanceinnovativeenergyefficiency,renewableenergy,and efficiencythroughoutthestateasspecifiedinsections24-38.5-102.4and 24-38.5-102.5;
(f) to (i) Repealed.
(j)(e) Ensure that information explaining the requirements of SUPPORT THE ADOPTION AND IMPLEMENTATION OF ADVANCED energy codes is availableHAT REDUCE ENERGY USE AND GREENHOUSE GAS EMISSIONSandprovideINFORMATIONAND technicalassistanceconcerning theimplementationandenforcementofenergycodestobothcountiesand municipalities,NCLUDING as specified in sections 30-28-211 (7) 24-38.5-103, 24-38.5-401, 24-38.5-402, and 31-15-602 (7);
C.R.S.;
(k)(f) Collaborate with the state board of land commissioners regardingrenewableenergyresourcedevelopmentasspecifiedinsection 36-1-147.5 (4);
C.R.S.;
(l)(g) Provide home energy efficiency improvements for low-income households, INCLUDING THROUGH THE WEATHERIZATION ASSISTANCE PROGRAM , as specified in section 40-8.7-112 (3)(b);
C.R.S., and prepare and submit to the general assembly an annual report as specified in section 40-8.7-112 (3)(f), C.R.S.;
(m) Establishandmanageaprogramtoimproveenergyefficiency in public schools as provided in section 39-29-109.5, C.R.S.;
(n) (I) Provide public utilities with reasonable assistance, if requested,inseekingandobtainingsupportandsponsorshipforanIGCC project and manage and distribute to the utility some or all of any funds -6- 016 provided by the state or by the United States government to the state for purposes of study or development of an IGCC project.
(II) As used in this subsection (1)(n), "IGCC project" means an IGCC facility that:
(A) Demonstrates the use of IGCC technology to generate electricity using Colorado or other western coal;
(B) Does not exceed three hundred fifty megawatts nameplate capacity;
except that it may exceed this capacity if the Colorado energy office determines that a larger size is necessary to obtain the benefits of federal cost sharing, financial grants or tax benefits, or other financial opportunities or arrangements benefitting the project, including opportunities to jointly develop the project with other electric utilities;
(C) Demonstratesthecaptureandsequestrationofaportionofthe project's carbon dioxide emissions;
(D) Includes methods and procedures to monitor the fate of the carbon dioxide captured and sequestered from the facility;
and (E) Is located in Colorado.
(III) As used in this subsection (1)(n), "IGCC facility" means an integrated gasification combined cycle generation facility that converts coal to a gaseous fuel from which impurities are removed prior to combustion, uses the gaseous fuel in a combustion turbine to produce electricity, and captures the waste heat from the combustion turbine to drive a steam turbine to produce more electricity.
An IGCC facility may also use natural gas, in addition to gasified coal, as a fuel in the combustion turbine.
(o)(h) Collaborate with stakeholders to develop and encourage increased utilization of energy curricula, including science, technology, -7- 016 engineering, and math curricula, that will serve the work force WORKFORCE needs of alCLEAN energy industries.
Such collaboration may include executive departments, research institutions, state colleges, community colleges, industry, and trade organizations in an effort to develop a means bywhich the state may address all facets of work force WORKFORCE demands in developing a balanced energy portfolio SUPPORTINGACLEANENERGYFUTURE .Institutionsmayalsopartnerinthe development of curricula with organizations that have existing energy curricula and training programs.
(p)(i) Annuallyreporttothesenateagriculture,naturalresources, TRANSPORTATION and energy committee and the house agriculture, livestock, and natural resouENERGY AND ENVIRONMENT committee, or their successor committees;
(q) (j) Administer the electric vehicle grant CREATED IN SECTION 24-38.5-103 (1)(aAND THE COMMUNITY ACCESS ENTERPRISE CREATED IN SECTION 24-38.5-303 (1);
(r) and (s) Repealed.
(t)(k) Assist the executive director of the department of local affairs in allocating revenues from the geothermal resource leasing fund to eligible entities pursuant to section 34-63-105;
C.R.S.;
(u) (l) Develop basic consumer education or guidance about leased solar installation and purchased solar installation in consultation with industries that offer these options to consumers;
and (v) (m) In consultation with the appropriate industries, develop basic consumer education or guidance about purchased or, if available, leased installation of a system that uses geothermal energy for water heating or space heating or cooling in a single building or for space -8- 016 heating for more than one building through a pipeline network.
3 SECTION3.
InColoradoRevisedStatutes,amend24-51-220as follows:
24-51-220.
Reporting to general assembly - inclusion of climate risk assessment in annual stewardship report.
(1) The association shall provideBMIT a report to the general assembly on January1, 2016, and everyfive years thereafter, regarding the economic impact of the 2010 legislative changes to the annual increase provisions on the retirees and benefit recipients as compared to the actual rate of inflation and the progress made toward eliminating the unfunded liabilities of each division of the association.
(2) O N AND AFTER JANUARY 1, 2025,THE ASSOCIATION SHALL INCLUDE ,AS PART OFITS ANNUALINVESTMENT STEWARDSHIPREPORT OR ANY SUCCESSOR ANNUAL REPORT REGARDING THE ASSOCIATION 'S INVESTMENTS THAT THE ASSOCIATION POSTS ON ITS WEBSITE OR OTHERWISE MAKES AVAILABLE TO THE PUBLIC A DESCRIPTION OF:
(a) T HE ASSOCIATION S PROCESS FOR IDENTIFYING CLIMATE CHANGE RELATEDRISKSANDASSESSINGTHEFINANCIALIMPACT THATTHECLIMATE -CHANGE -RELATEDRISKSHAVEONTHEASSOCIATION 'S OPERATIONS ;
(b) THE CURRENT OR ANTICIPATED FUTURE RISKS THAT CLIMATE CHANGE POSES TO THE ASSOCIATION 'S INVESTMENT PORTFOLIO ,THE IMPACT THAT CLIMATE CHANGE HAS ON THE ASSOCIATIONS INVESTMENT STRATEGIES ,AND ANY STRATEGY CHANGES THAT THE ASSOCIATION HAS IMPLEMENTED IN RESPONSE TO SUCH IMPACT;
(c) ACTIONS THAT THE ASSOCIATION IS TAKING TO MANAGE THE -9- 016 RISKSTHAT CLIMATE CHANGE POSESTOTHEASSOCIATION SOPERATIONS ;
AND (d) THE ASSOCIATION S USE AND CONSIDERATION OF ANY CLIMATE RELATED REPORTING THAT THE FEDERAL SECURITIES AND EXCHANGE COMMISSION REQUIRES .
SECTION 4.
In Colorado Revised Statutes, 25-6.5-201, amend (2);
and add (3) as follows:
25-6.5-201.
Definitions.Asusedinthispart2,unlessthecontext otherwise requires:
(2) (a) "Pollution control equipment" means any personal property, including but not limited to,ent, machinery, devices, systems, buildings, or structures, that is installed, constructed, or used in or as a part of a facility that creates a product in a manner that generates less pollution by the utilization of an alternative manufacturing or generating technology.
(b) "Pollution control equipment" includes:
but is not limited to, (I) Gas or wind turbines and associated compressors or equipment;
(II) Solar, thermal, or photovoltaic equipment;
or (III) Equipment used as part of a system that uses geothermal energyfor water heating or space heating or cooling in a single building, for space heating for more than one building through a pipeline network, or for electricity generation;
(IV) W ASTEWATER THERMAL ENERGY EQUIPMENT .
(3) "W ASTEWATER THERMAL ENERGY EQUIPMENT " MEANS EQUIPMENT USED AS PART OF A SYSTEM THAT USES THERMAL ENERGY IN WASTEWATER ,TO HEAT OR COOL A SPACE,OR FOR ANY OTHER USEFUL -10- 016 THERMALPURPOSETHATREDUCESGREENHOUSEGASEMISSIONSFROMTHE COMBUSTION OF GAS IN CUSTOMER END USES.
SECTION 5.
In Colorado Revised Statutes, 25-7-114.7, amend (2)(a)(VII) as follows:
25-7-114.7.
Emission fees - fund - rules - definition - repeal.
(2) (a) (VII) The commission shall establish, by rule, a fee per ton of greenhouse gas, in the form of carbon dioxide equivalent, that was reported in the most recent air pollutant emission notice on file with the division,RTHATWASREPORTEDTOTHEDIVISIONPURSUANTTOSECTION 25-7-140(2)(a)(I),inanamountthatissufficienttocovertheindirectand direct costs required to develop and administer the programs established pursuant tothisarticle7 that pertain to emissions of greenhouse gas.
The commission mayset thresholds of reported greenhouse gas below which no such fee shall be assessed.
No more frequently than annually, the commission may adjust the fee for greenhouse gas by rule to cover the indirectanddirectcostsrequiredtodevelopandadministertheprograms established pursuant to this article 7 that pertain to emissions of greenhouse gas.
SECTION 6.
In Colorado Revised Statutes, 40-3.2-108, amend (2)(c)(V);
and add (2)(c)(V.5) and (2)(r) as follows:
40-3.2-108.
Clean heat targets - legislative declaration - definitions - plans - rules - reports.
(2) Definitions.
As used in this section, unless the context otherwise requires:
(c) "Clean heat resource" means any one or a combination of:
(V) Pyrolysis of tires if the pyrolysis meets a recovered methane protocol;
and (V.5) WASTEWATER THERMAL ENERGY ;AND -11- 016 (r) "WASTEWATER THERMAL ENERGY "MEANS A SYSTEM THAT USES THERMAL ENERGY IN WASTEWATER ,TO HEAT OR COOL A SPAC,OR FORANY OTHER USEFULTHERMALPURPOSE THAT REDUCESGREENHOUSE GAS EMISSIONS FROM THE COMBUSTION OF GAS IN CUSTOMER END US.S SECTION 7.
In Colorado Revised Statutes, 25-7-102, amend (2)(g) as follows:
25-7-102.
Legislativedeclaration.(2) Itisfurtherdeclaredthat:
(g) (I) Accordingly, Colorado shall strive to increase renewable energy generation and eliminate statewide greenhouse gas pollution by the middle of the twenty-first century and have goals of achieving, at a minimum:
(A) A twenty-six percent reduction in statewide greenhouse gas pollution by 2025;
(B) A fifty percent reduction in statewide greenhouse gas pollution by 2030;
(C) A SIXTYFIVE PERCENT REDUCTION IN STATEWIDE GREENHOUSE GAS POLLUTION BY 2035;
(D) A N SEVENTY -FIVE PERCENT REDUCTION IN STATEWIDE GREENHOUSE GAS POLLUTION BY 2040;
(E) A NINETY PERCENT REDUCTION IN STATEWIDE GREENHOUSE GAS POLLUTION BY2045;
and (F) A ninety ONE HUNDRED percent reduction in statewide greenhouse gas pollution by 2050.
(II) The reductions identified in this subsection (2)(g) are measured relative to 2005 statewide greenhouse gas pollution levels.
SECTION 8.
In Colorado Revised Statutes, 34-60-106, amend (9)(a) and (9)(b)(I);
and add (9)(c) and (9)(d) as follows:
-12- 016 34-60-106.
Additional powers of commission - rules - definitions-repeal.(9)(a)(I) Notwithstandingsection34-60-120orany other provision of lawD SUBJECT TO SUBSECTION(9)(a)(IIOF THIS SECTION, the commission, as to clasAND CLASS VI injection wells classified in 40 CFR 144.6, may perform all acts for the purpose PURPOSES of protecting underground sources of drinking water in accordance with state programs authorized byE FEDERAL "SAFE D RINKINGW ATER A CT", 42 U.S.C.
sec.
300f et seq., and regulations under those sections, as amended,AND ENSURING THE SAFE AND EFFECTIVE SEQUESTRATION OF GREENHOUSE GASES IN A VERIFIABLE MANNERTHATMEETS COLORADO 'SSHORT-ANDLONG -TERMGREENHOUSE GAS EMISSION REDUCTION GOALS ,AS SET FORTH IN SECTIO25-7-102 (2)(g).
(II) IERFORMINGACTSFORTHEPURPOSEOFENSURINGTHESAFE AND EFFECTIVE SEQUESTRATION OF GREENHOUSE GASES PURSUANT TO SUBSECTION (9)(a)(IOF THIS SECTIO,THE COMMISSION SHALL ACT IN ACCORDANCEWITHSUBSECTION (9)(cOFTHISSECTIONANDONLYAFTER THE GOVERNOR AND THE COMMISSION HAVE MADE AN AFFIRMATIVE DETERMINATIONTHATTHESTATEHASSUFFICIENTRESOURCESNECESSARY TOENSURETHESAFEANDEFFECTIVEREGULATIONOFTHESEQUESTRATION OF GREENHOUSE GASES IN ACCORDANCE WITH THE FINDINGS FROM THE COMMISSION S STUDY CONDUCTED PURSUANT TO SUBSECTION (9)(bOF THIS SECTIO.
(b) The commission shall:
(I) Conduct a study to evaluate what resources are needed to ensurethesafeandeffectiveregulationofthesequestrationofgreenhouse gases as that term is defined in section 25-7-140 (6),ntify and -13- 016 assess the applicable resources that the commission or other state agencies have;
and (c) (I) TE COMMISSION MAY SEEK CLASS VIINJECTION WELL PRIMACY UNDER THE FEDERAL "SAFED RINKINGW ATER ACT",42U.S.C.
SEC.
300fET SE.,AS AMENDED ,AFTER THE COMMISSION:
(A) D ETERMINES IT HAS THE NECESSARY RESOURCES FOR THE APPLICATION OUTLINED IN THE COMMISSION S STUDY PERFORMED PURSUANT TO SUBSECTION (9)(bOF THIS SECTIO;AND (B) HOLDS A PUBLIC HEARING ON THE MATTE.
(II) THE COMMISSION MAY ISSUE AND ENFORCE PERMITS AS NECESSARYFORTHEPURPOSESETFORTHINTHISSUBSECTION (9)(cAFTER THE COMMISSION MAKES THE DETERMINATION AND HOLDS THE HEARING SETFORTHINSUBSECTION (9)(c)(OFTHISSECTIONANDTHECOMMISSION AND THE GOVERNOR SATISFY THE REQUIREMENTS SET FORTH IN SUBSECTION (9)(aOFTHISSECTION.INISSUINGANDENFORCINGPERMITS PURSUANT TO THIS SUBSECTION(9)(c)THE COMMISSION SHALL ENSURE THAT THE PERMITTING OF A CLASVI INJECTION WEL:
(A) D OES NOT DISPROPORTIONATELY AFFECT THE HEALTH AND WELL BEING OF DISPROPORTIONATELY IMPACTED COMMUNITIES;AND (B) C OMPLIES WITH A LOCAL GOVERNMENT 'S SITING OF THE PROPOSED CLASS VIINJECTION WELL LOCATION.
(III) (A) T COMMISSION SHALL REQUIRE EACH OPERATOR OF A CLASS VIINJECTIONWELLTOPROVIDEADEQUATEFINANCIALASSURANCE DEMONSTRATING THAT THE OPERATOR IS FINANCIALLY CAPABLE OF FULFILLING EVERY OBLIGATION IMPOSED ON THE OPERATOR UNDER THIS ARTICLE60 ANDUNDERRULESTHATTHECOMMISSIONADOPTSPURSUANT TO THIS ARTICL60.
-14- 016 (B) THE FINANCIAL ASSURANCE REQUIRED UNDER THIS SUBSECTION (9)(c)(IIMUST COVER THE COST OF CORRECTIVE ACTION, INJECTION WELL PLUGGING,POST-INJECTION SITE CAR,SITE CLOSURE, AND ANY EMERGENCY AND REMEDIAL RESPONSE .
(C) THE COMMISSION SHALL ADOPT RULES REQUIRING THAT THE FINANCIAL ASSURANCE COVER THE COST OF OBLIGATIONS THAT ARE IN ADDITION TO THE OBLIGATIONS LISTED IN SUBSECTI(9)(c)(III)(OF THIS SECTION IF THE ADDITIONAL OBLIGATIONS ARE REASONABLY ASSOCIATED WITH CLASSVI INJECTION WELLS AND LOCATION.
(D) A N OPERATOR SHALL MAINTAIN THE FINANCIAL ASSURANCE REQUIRED UNDER THIS SUBSECTION (9)(c)(IIOR UNDER ANY RULES ADOPTED PURSUANT TO THIS SUBSECTION (9)(c)(IIIUNTIL THE COMMISSIONAPPROVESSITECLOSURE ,ASSPECIFIEDINRULESADOPTEDBY THE COMMISSION.C OMMISSION APPROVAL OF A SITE CLOSURE DOES NOT OTHERWISE MODIFY AN OPERATOR S RESPONSIBILITY TO COMPLY WITH APPLICABLE LAWS.
(E) FINANCIAL ASSURANCE PROVIDED UNDER THIS SUBSECTION (9)(c)(III)Y BE IN THE FORM OF A SURETY BO,INSURANCE ,OR ANY OTHER INSTRUMENT THAT THE COMMISSION , BY RULE, DEEMS SATISFACTORY .
(d) A S USED IN THIS SUBSECTION(9),UNLESS THE CONTEXT OTHERWISE REQUIRES:
(I) "CRRECTIVEACTION "HASTHEMEANINGSETFORTHIN 40CFR 146.81.
(II) "DISPROPORTIONATELY IMPACTED COMMUNITY " HAS THE MEANING SET FORTH IN SECTIO24-4-109 (2)(b)(II).
(III) "GEENHOUSEGAS "HASTHEMEANINGSETFORTHINSECTION -15- 016 25-7-140 (6).
(IV) "POST-INJECTION SITE CAR"HAS THE MEANING SET FORTH IN 40 CFR 146.81.
(V) "SITE CLOSURE "HAS THE MEANING SET FORTH IN 40 CFR 146.81.
SECTION 9.
In Colorado Revised Statutes, 38-30-168, amend (1)(b)(II) and (1)(b)(III);
and add (1)(b)(IV) as follows:
38-30-168.
Unreasonable restrictions on renewable energy generation devices - definitions.
(1) (b) As used in this section, "renewable energy generation device" means:
(II) A wind-electric generator that meets the interconnection standards established in rules promulgated by the public utilities commission pursuant to section 40-2-124;
or (III) A geothermal energy device;
(IV) A HEAT PUMP SYSTEM ,AS DEFINED IN SECTION39-26-732 (2)(c).
SECTION 10.
In Colorado Revised Statutes, 38-33.3-106.7, amend (1)(b)(VI) as follows:
38-33.3-106.7.
Unreasonable restrictionsonenergy efficiency measures - definitions.
(1) (b) As used in this section, "energy efficiencymeasure" means a device or structure that reduces the amount of energy derived from fossil fuels that is consumed by a residence or business located on the real property.
"Energy efficiency measure" is further limited to include only the following types of devices or structures:
(VI) A heat pump SYSTEM , AS DEFINED IN SECTION39-26-732 (2)(c).
-16- 016 SECTION 11.
In Colorado Revised Statutes, add 39-22-549 as follows:
39-22-549.
Tax credit for reducing emissions from certain lawn equipment - report - legislative declaration - tax preference performance statement -definitions - repeal.
(1) (HE GENERAL ASSEMBLY FINDS AND DECLARES THAT:
(I) G ASOLINE-POWERED LAWN EQUIPMENT ,SUCH AS LAWN MOWERS , LEAF BLOWERS,TRIMMERS ,AND SNOWBLOWERS ,EMITS HIGH LEVELSOFAIRPOLLUTANTS ,INCLUDINGNITROGENOXIDESANDVOLATILE ORGANICCOMPOUNDSTHAT ,TOGETHER ,FORMOZONEANDPARTICULATE MATTER ;
(II) EPLACINGSUCHGASOLINE -POWEREDLAWNEQUIPMENTWITH ELECTRIC-POWERED LAWN EQUIPMENT CAN REDUCE OZONE POLLUTION ;
AND (III) TE PURPOSE OF THE TAX CREDIT IN SUBSECT(3)OF THIS SECTION IS TO INCENTIVIZE THE VOLUNTARY TRANSITION FROM GASOLINE-POWERED TO ELECTRIC-POWERED LAWN EQUIPMENT .
(b) IN ACCORDANCE WITH SECTION 39-21-304 (1), WHICH REQUIRESEACHBILLTHATCREATESANEWTAXEXPENDITURETOINCLUDE ATAXPREFERENCE PERFORMANCE STATEMENT ASPART OFASTATUTORY LEGISLATIVEDECLARATION THEGENERALASSEMBLYFURTHERFINDSAND DECLARES THAT :
(I) THE GENERAL LEGISLATIVE PURPOSE OF THE TAX CREDIT ALLOWED BY SUBSECTION (3)OF THIS SECTION IS TO INDUCE CERTAIN DESIGNATEDBEHAVIORSBYTAXPAYERS ,SPECIFICALLYTHEPURCHASEOF ELECTRIC-POWERED LAWN EQUIPMENT ;AND (II) IRDERTOALLOWTHEGENERALASSEMBLYANDTHESTATE -17- 016 AUDITOR TO MEASURE THE EFFECTIVENESS OF THE TAX CREDIT ,THE DEPARTMENT OF REVENUE SHALL SUBMIT TO THE GENERAL ASSEMBLY AND THE STATE AUDITOR AN ANNUAL REPORT IN ACCORDANCE WITH SUBSECTION (5) OF THIS SECTION DETAILING THE SALES OF NEW , ELECTRIC-POWERED LAWN EQUIPMENT ,AS REPORTED BY TAXPAYERS CLAIMING THE TAX CREDIT AUTHORIZED UNDER SUBSECTION (3)OF THIS SECTION.
(2) AS USED IN THIS SECTI,UNLESS THE CONTEXT OTHERWISE REQUIRES :
(a) "LAWN EQUIPMENT " MEANS A LAWN MOWER ,LEAF BLOWER , TRIMMER ,OR SNOWBLOWER .
(b) "PURCHASE PRICE"HAS THE MEANING SET FORTH IN SECTION 39-26-102 (7).
(c) "RETAILER" HAS THE MEANING SET FORTH IN SECTION 39-26-102 (8).
(d) "R ETAIL SALE"HAS THE MEANING SET FORTH IN SECTION 39-26-102 (9).
(3) (a) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1,2024,BUT BEFORE ANUARY 1,2027,A RETAILER QUALIFIED PURSUANTTOSUBSECTION (3)(d)(IIOFTHISSECTIONISALLOWEDATAX CREDIT AGAINST THE TAX IMPOSED PURSUANT TO THIS ARTICL22 IN AN AMOUNTEQUALTOTHIRTYPERCENTOFTHEAGGREGATEPURCHASEPRICE FOR ALL RETAIL SALES OF NEW,ELECTRIC-POWERED LAWN EQUIPMENT THATTHEQUALIFIEDRETAILERSOLDINTHESTATEDURINGTHETAXYEAR .
(b) IN ORDER TO QUALIFY FOR THE TAX CREDIT ALLOWED UNDER THIS SUBSECTION (3)THE QUALIFIED RETAILER SHALL PROVIDE TO THE PURCHASER , AT THE TIME OF THE RETAIL SALE OF NEW , -18- 016 ELECTRIC-POWERED LAWN EQUIPMENT ,A DISCOUNT ON THE PURCHASE PRICE OF THE LAWN EQUIPMENT EQUAL TO THIRTY PERCENT OF THE PURCHASEPRICEANDSHALLSHOWTHEDISCOUNTASASEPARATEITEMON THE RECEIPT OR INVOICE PROVIDED TO THE PURCHASE.
(c) TO DETERMINE WHETHER A QUALIFIED RETAILER SOLD NEW, ELECTRIC-POWERED LAWN EQUIPMENT IN THIS STATE ,THE RULES OF SECTION 39-26-104 (3)(APPLY .
(d) (I) HE QUALIFIED RETAILER SHALL ELECTRONICALLY SUBMIT A REPORT TO THE DEPARTMENT OF REVENUE ,ON A QUARTERLY BASIS AND IN THE FORM AND MANNER REQUIRED BY THE DEPARTMENT , THATDETAILSTHENUMBEROFPIECESOFNEW ,ELECTRICPOWEREDLAWN EQUIPMENT SOLD BY THE QUALIFIED RETAILER IN THE REPORTING PERIOD FORWHICHTHEQUALIFIEDRETAILERPROVIDEDADISCOUNTASDESCRIBED IN SUBSECTION(3)(b)OF THIS SECTIO.THE DEPARTMENT MAY REQUIRE THE QUALIFIED RETAILER TO INCLUDE ADDITIONAL INFORMATION IN THE REPORT .
(II) FRINCOMETAXYEARSCOMMENCINGONORAFTER JANUARY 1,2025,THEQUALIFIEDRETAILERMAYELECTADVANCEPAYMENTSOFTHE CREDIT ALLOWED PURSUANT TO THIS SECTION AS SPECIFIED IN SECTION 39-22-629.
(III) BFORE SELLINGAPIECE OFNEW ,ELECTRICPOWEREDLAWN EQUIPMENT FOR WHICH A RETAILER INTENDS TO CLAIM A CREDIT PURSUANT TO THIS SECTION , THE RETAILER SHALL REGISTER AS A QUALIFIED RETAILER BY FILING WITH THE DEPARTMENT OF REVENUE A REGISTRATION STATEMENT IN THE FORM AND MANNER THAT THE DEPARTMENT PRESCRIBES .
(4) IF A CREDIT AUTHORIZED BY THIS SECTION EXCEEDS THE -19- 016 INCOME TAX DUE ON THE INCOME OF THE QUALIFIED RETAILER FOR THE TAXABLEYEAR ,THEEXCESSCREDITMAYNOTBECARRIEDFORWARDAND MUST BE REFUNDED TO THE QUALIFIED RETAILE.
(5) PURSUANT TO SECTION 39-21-304 (3)NOTWITHSTANDING SECTION 24-1-136 (11)(a)(AND FOR THE PURPOSE OF PROVIDING DATA THAT ALLOWS THE GENERAL ASSEMBLY AND THE STATE AUDITOR TO MEASURE THE EFFECTIVENESS OF THE TAX CREDIT CREATED IN SUBSECTION (3)OF THIS SECTIO,THE DEPARTMENT OF REVENUE ,ON OR BEFORE JANUARY 1,2025, AND ON OR BEFOREJANUARY 1 OF EACH YEAR THEREAFTERTHROUGH ANUARY 1,2028,SHALLSUBMITTOTHEGENERAL ASSEMBLY AND THE STATE AUDITOR A REPORT DETAILING THE SALES OF NEW , ELECTRIC-POWERED LAWN EQUIPMENT , AS REPORTED BY A QUALIFIED RETAILER CLAIMING THE TAX CREDIT AUTHORIZED UNDER SUBSECTION (3)OF THIS SECTIO.
HE TAX CREDIT ESTABLISHED IN THIS SECTIONMEETSITSPURPOSEIFSALESOFNEW ,GASOLINE POWEREDLAWN EQUIPMENT ARE SIGNIFICANTLY REDUCED WITHIN FIVE YEARSAFTERTHE TAX CREDIT BECOMES EFFECTIVE , AS DETERMINED BY THE GENERAL ASSEMBLYANDTHESTATEAUDITORPURSUANTTOSECTION 39-21-304(3).
(6) THIS SECTION IS REPEAL,EFFECTIVED ECEMBER 31, 2033.
SECTION12.
In Colorado RevisedStatutes,39-29-110,amend (9)(b) as follows:
39-29-110.
Local government severance tax fund - creation - administration - definitions - repeal.
(9)(b) Thissubsection(9)isrepealed,effectiveJuly1,2023 1,2025.
SECTION13.
InSessionLawsofColorado2021,amendsection 3 of chapter 225, (HB 21-1253), as follows:
-20- 016 Section 3.
For the 2020-21 state fiscal year, $5,000,000 is appropriated to the department of local affairs for use by the division of local government.
(1) For the 2023-24 state fiscal year, $338,270 is appropriated to the department of natural resources for use by the oil and gas conservation commission.
This appropriation is from the local government severance tax fund created in section 39-29-110 (1)(a)(I), C.R.S.
To implement this act, the division of local government may use this appropriation for grants for renewable and clean energy implementation projects that meet the division's eligibility criteria for funding under the department's renewable and clean energy initiative program.
Any money appropriated in this section not expended prior to July1, 2021JULY 1,2025, is further appropriated to the division of local government for the 2021-22 and 2022-23 state fiscal yearshe same purpose UNTIL THE MONEY IS FULLY EXPENDED.
SECTION14.
In Colorado RevisedStatutes,39-22-629,amend as added by House Bill 23-1272 (1)(a) as follows:
39-22-629.
Advance payments of income tax credits - definitions - repeal.
(1) As used in this section, unless the context otherwise requires:
(a) "Applicable credit" means the credits allowed in sections 39-22-516.7, 39-22-516.8, 39-22-549, and 39-22-553.
SECTION 15.
In Colorado Revised Statutes, 40-1-102, amend (1.3);
and add (1.4), (8.2), and (8.3) as follows:
40-1-102.
Definitions.
As used in articles 1 to 7 of this title 40, unless the context otherwise requires:
(1.3) "Charge"includesanyconsideration,howeverdenominated, paidorprovidedbyaretailcooperativeelectricassociationtoawholesale electric cooperative in connection with an agreement bywhich the retail cooperative electric association terminates a wholesale electric service -21- 016 contract with the wholesale electric cooperativERTIFICATE OF COMPLETION " MEANS AN ATTESTATION THAT AN INTERCONNECTION CUSTOMER SUBMITS TO A PUBLIC UTILITY TO CONFIRM THAT A RETAIL DISTRIBUTEDGENERATIONRESOURCEHASBEENPROPERLYINSPECTEDOR OTHERWISE CERTIFIED TO MEET THE SAFE OPERATION REQUIREMENTS OF A LOCAL GOVERNMENT 'S BUILDING CODE ENFORCEMENT AUTHORITY.
(1.4) "C HARGE" INCLUDES ANY CONSIDERATION , HOWEVER DENOMINATED ,PAID OR PROVIDED BY A RETAIL COOPERATIVE ELECTRIC ASSOCIATION TO A WHOLESALE ELECTRIC COOPERATIVE IN CONNECTION WITH AN AGREEMENT BY WHICH THE RETAIL COOPERATIVE ELECTRIC ASSOCIATION TERMINATES A WHOLESALE ELECTRIC SERVICE CONTRACT WITH THE WHOLESALE ELECTRIC COOPERATIVE.
(8.2) "ITERCONNECTION AGREEMENT "MEANS AN AGREEMENT BETWEEN A PUBLIC UTILITY AND AN INTERCONNECTION CUSTOMER TO INTERCONNECT A RETAIL DISTRIBUTED GENERATION RESOURCE TO THE UTILITY SYSTEM.
(8.3)(a) "IERCONNECTIONCUSTOMER "MEANSANENTITYTHAT PROPOSES TO INTERCONNECT A RETAIL DISTRIBUTED GENERATION RESOURCE ON THE DISTRIBUTION SYSTEM OF A PUBLIC UTIL.TY (b) "ITERCONNECTIONCUSTOMER "INCLUDESANAFFILIATEORA SUBSIDIARY OF A PUBLIC UTILITY THAT PROPOSES TO INTERCONNECT A RETAIL DISTRIBUTED GENERATION RESOURCE TO THE PUBLIC UTILITS SYSTEM .
SECTION16.
InColoradoRevisedStatutes,40-1-126,add(2.5) as follows:
40-2-126.
Transmission facilities - biennial review - energy resource zones - definitions - plans - approval - cost recovery - -22- 016 powerline trail consideration.
(2.5)N REVIEWING A PLAN THAT AN ELECTRIC UTILITY SUBMITS PURSUANT TO SUBSECTION (2)(b)OF THIS SECTION ,THE COMMISSION SHALL CONSIDER THE NEED FOR EXPANDED TRANSMISSION CAPACITY IN THE STATE , INCLUDING THE ABILITY TO EXPANDCAPACITY THROUGH THE CONSTRUCTION OFNEWTRANSMISSION LINES, IMPROVEMENTS TO EXISTING TRANSMISSION LINES, AND CONNECTIONS TO ORGANIZED WHOLESALE MARKETS ,AS DEFINED IN SECTION 40-5-108 (1)(a).
SECTION 17.
In Colorado Revised Statutes, 40-2-114, amend (2)(a)(III) as follows:
40-2-114.
Disposition of fees collected - telecommunications utility fund - fixed utility fund - appropriation.
(2) (a) Money in the funds created in subsection (1) of this section shall be expended only to defray the full amount determined by the general assembly for:
(III) With regard only to expenditures from the public utilities commissionfixedutilityfundcreatedinsubsection(1)(b)of thissection, the administrative expenses, not toexceedfivehundred thousand dollars annually, incurred by the Colorado electric transmission authority in carrying out its duties under article 42 of this title 40.
The Colorado electric transmission authority shall remit to theLIC UTILITIES COMMISSION fixed utility fund any amounts it receives in excess of its actual administrative expenses plus a fifteenFTY percent reserve margin.
SECTION18.
InColoradoRevisedStatutes,amend40-2-135as follows:
40-2-135.
Retail distributed generation - customers' rights - -23- 016 rules.
(1) A retail electric utility customer is entitled to generate, consume, store, and export electricity produced from eligible energy resources to the electric grid through the use of customer-sited retail distributedgeneration,asdefinedinsection40-2-124(1)(a)(VIII),subject to reliability standards, interconnection rules, and procedures, as determined by the commission.
(2)(a) ARETAILELECTRICUTILITYVIOLATES THISSECTIONIFTHE UTILITY FAILS TO PROVIDE REASONABLE ,GOOD FAITH ,AND TIMELY SERVICETOANINTERCONNECTIONCUSTOMERANDSUCHVIOLATIONMAY RESULT IN COMMISSION ACTION , INCLUDING THE ASSESSMENT OF MONETARY FINES AGAINST THE RETAIL ELECTRIC UTILIT.
F A RETAIL ELECTRIC UTILITY FAILS TO PROVIDE TIMELY SERVICE AND ADHERE TO TIMELINES THAT THE COMMISSION ESTABLISHES AS PART OF THE COMMISSION S INTERCONNECTION RULES,THE RETAIL ELECTRIC UTILITY MAY BE SUBJECT TO PENALTIES OF UP TO TWO THOUSAND DOLLARS PER DAY FOR EACH DAY THAT THE VIOLATION OCCURRED.
(b) THE COMMISSION SHALL ADOPT RULES TO ANNUALLY ADJUST THE PENALTY AMOUNT SET FORTH IN SUBSECTIO(2)(a)OFTHIS SECTION BASED ON THE ANNUAL PERCENTAGE CHANGE IN THE U NITED STATES DEPARTMENTOFLABOR SBUREAUOFLABORSTATISTICSCONSUMERPRICE INDEX FOR THEDENVER -AURORA -LAKEWOOD AREA FORALLITEMS PAID BY ALL URBAN CONSUMERS ,OR ITS SUCCESSOR INDE.
(c) (I) F A RETAIL DISTRIBUTED GENERATION RESOURCE THAT ISTWENTY -FIVEKILOWATTSORLESS ,APUBLICUTILITYSHALLPROVIDEAN INTERCONNECTION CUSTOMER AN EXECUTED INTERCONNECTION AGREEMENT NO MORE THAN THIRTY BUSINESS DAYS AFTER RECEIVING PAYMENT OF AN INTERCONNECTION FEE FROM THE INTERCONNECTION -24- 016 CUSTOMER .
(II) FLLOWING THE CONSTRUCTION OF A RETAIL DISTRIBUTED GENERATION RESOURCE , A PUBLIC UTILITY MUST PROVIDE INTERCONNECTIONOFTHECUSTOMER SRETAILDISTRIBUTEDGENERATION RESOURCE NO MORE THAN THIRTY BUSINESS DAYS AFTER THE INTERCONNECTION CUSTOMER SUBMITS TO THE PUBLIC UTILITY A CERTIFICATE OF COMPLETIO.
(III)F THE SUM OF A PUBLIC UTIL'S COMPLIANCE WITH THESE TIMES SET FORTH IN THIS SUBSECTI(2)(c)EXCEEDS SIXTY DAYS,THE PUBLIC UTILITY MAY BE SUBJECT TO PENALTIES CONSISTENT WITH THIS SUBSECTION (2).
(d) APUBLIC UTILITY IS NOT SUBJECT TO PENALTIES UNDER THIS SUBSECTION (2)IF THE PUBLIC UTILITY CAN DEMONSTRATE TH:T (I) TEINTERCONNECTIONCUSTOMERFAILEDTOTIMELYREMEDY ANY MATERIAL DEFECTS IN THE COMPLETION OF THE INTERCONNECTION CUSTOMER 'S APPLICATION FOR INTERCONNECTION AND THE PUBLIC UTILITY IDENTIFIED THE DEFECTS DURING ITS REVIEW OF THE APPLICATION;
(II) HERETAILDISTRIBUTEDGENERATIONRESOURCECANNOTBE SAFELYINTERCONNECTEDTOTHEPUBLICUTILITY SSYSTEMINAMANNER CONSISTENT WITH THE COMMISSIONS INTERCONNECTION RULES;OR (III) OHER EXTENUATING CIRCUMSTANCES CAUSED A DELAY IN INTERCONNECTION .
(3) (a) A INTERCONNECTION CUSTOMER MAY FILE A COMPLAINT WITHTHECOMMISSIONINACCORDANCEWITHSECTION 40-6-108ALLEGING THAT A PUBLIC UTILITY HAS VIOLATED SUBSECTI(2)OF THIS SECTIO.
(b) IN CONSIDERING A COMPLAINT FILED PURSUANT TO THIS -25- 016 SUBSECTION (3),THE COMMISSION MAY ORDER THE PUBLIC UTILITY TO REFUND INTERCONNECTION STUDY FEES CHARGED TO THE INTERCONNECTION CUSTOMER .
F A PUBLIC UTILITY IS ORDERED TO REFUND SUCH INTERCONNECTION STUDY FEES ,SUCH REFUND IS NOT AN EXPENSETHATTHEPUBLICUTILITYMAYRECOVERFROMITSRATEPAYERS .
(4) THE COMMISSION SHALL ONLY ASSESS THE PENALTIES SET FORTH IN SUBSECTION(2)(aOF THIS SECTION AGAINST A PUBLIC UTILITY IF:
(a) AN INTERCONNECTION CUSTOMER OR COMMISSION STAFFHAS FILED,ANDTHECOMMISSIONHASADJUDICATED ,ACOMPLAINTPURSUANT TO SECTION40-6-108;AND (b) THE PUBLIC UTILITY HAS A TARIFF ON FILE WITH THE COMMISSION THAT PROVIDES INCENTIVES AND PENALTIES TO PROVIDE INTERCONNECTIONSERVICE ANDTHE PUBLICUTILITYHASEXCEEDEDTHE TIMELINES ESTABLISHED IN THE TARIFF FI.ING (5) IJURISDICTIONSTHATALLOWINTERCONNECTIONWITHOUTA PUBLICUTILITYPRESENT,ANINTERCONNECTIONCUSTOMERMAYINSTALL ALL NECESSARY METERING EQUIPMENT AND ENERGIZE THE SYSTEM FOLLOWING INSTALLATION I:
(a) TEINTERCONNECTIONCUSTOMERHASANINTERCONNECTION AGREEMENT WITH A PUBLIC UTILITY AND A CERTIFICATE OF COMPLETION FROM A LOCAL GOVERNMENT S BUILDING CODE ENFORCEMENT AUTHORITY ;AND (b) THE INSTALLATION AND ENERGIZINGWORKIS OVERSEEN BY A LICENSED MASTER ELECTRICIAN.
(6) A PUBLIC UTILITY MAY RECOVER ITS PRUDENTLY INCURRED COSTS TO FACILITATE A TIMELY INTERCONNECTIO,WHICH COSTS MAY -26- 016 INCLUDE THE COST OF EQUIPMENT THAT THE PUBLIC UTILITY PROCURES FOR FUTURE UPGRADES NEEDED TO INTERCONNECT RETAIL DISTRIBUTED GENERATIONRESOURCES .A PUBLICUTILITYMAYRECOVERTHE COSTSOF ANY SUCH EQUIPMENT INVENTORY AS CAPITALWORKINPROGRESS IFTHE INVENTORY IS PROJECTED TO BE USED WITHIN FIVE YEARS OF ITS PROCUREMENTANDWITHARETURNATTHEMOSTRECENTLYAUTHORIZED WEIGHTED AVERAGE COST OF CAPITAL .
SECTION 19.
In Colorado Revised Statutes, 40-7-105, amend (1);
and add (1.5) and (4) as follows:
40-7-105.
Violations - penalty - separate offenses - rules.
(1) Any public utility whichAT violates or fails to comply with any provisionof thestateconstitutionorof articles1to7ofthiTITLE40 or whichTHAT fails, omits, or neglects to obey, observe, or comply with anyorder,decision,decree,rule,direction,demand,orrequirementofthe commission or any part or provision thereof, except an order for the paymentof money,inacaseinwhichapenaltyhasnotbeenprovidedfor such THE public utility, is subject to a penalty of not more than two TWENTY thousand dollars for ePER offensFOR EACH DAY THAT THE OFFENSE CONTINUES .
(1.5)(a) AYPROPOSEDPENALTYISSUBJECTTOAFINDINGBYTHE COMMISSION OF CUSTOMER HARM THAT IS COMMENSURATE WITH THE AMOUNT OF THE PENALTY LEVIED .
N DETERMINING THE AMOUNT OF A PENALTY OR WHETHER ANY PENALTY IS LEVIED,THE COMMISSION SHALL ALSO CONSIDER FACTORS INCLUDING :
(I) THE SIZE OF THE UTILI;Y (II) FCTORS INFLUENCING THE VIOLATION;
(III) THE UTILITY S PREVIOUS HISTORY OF ANY SIMILAR -27- 016 VIOLATIONS;
(IV) REMEDIAL MEASURES ;AND (V) A NY OTHER FACTORS THAT MAY MITIGATE ANY HARM TO CUSTOMERS .
(b) THE COMMISSION SHALL ADOPT RULES TO ANNUALLY ADJUST THE MAXIMUMPER DAYPENALTYAMOUNT SET FORTHINSUBSECTION (1) OF THIS SECTION BASED ON THE ANNUAL PERCENTAGE CHANGE IN THE U NITEDSTATES DEPARTMENT OF LABOR S BUREAU OF LABOR STATISTICS CONSUMERPRICEINDEXFORTHE DENVER -AURORA -LAKEWOODAREAFOR ALL ITEMS PAID BY ALL URBAN CONSUMER,OR ITS SUCCESSOR INDE.
(4) ANY PENALTY THAT THE COMMISSION ASSESSES AGAINST A UTILITY UNDER THIS SECTION IS NOT RECOVERABLE AS AN EXPENSE PAYABLE BY THE UTILIT'S RATEPAYERS.
SECTION20.
InColoradoRevisedStatutes,40-3.2-108,amend (2)(a)(II) and (2)(p) introductory portion as follows:
40-3.2-108.
Clean heat targets - legislative declaration - definitions - plans - rules - reports.
(2) Definitions.
As used in this section, unless the context otherwise requires:
(a) "Biomethane":
(II) Includes biomethane recovered from manure management systemsoranaerobicdigesters,CLUDINGFROMOPERATIONSFORDAIRY COWS ,BEEFCATTLE POULTRY ,SWINE,ORSHEEP ,thathasbeenprocessed to meet pipeline quality.
(p) "Recovered methane protocol" means a documented set of procedures and requirements established by the air quality control commission to quantify ongoing greenhouse gas emission reductions or greenhousegasremovalenhancementsachievedbyarecoveredmethane -28- 016 project and to calculate the project baseRECOVERED METHANE PROTOCOL THAT THE AIR QUALITY CONTROL COMMISSION ADOPTS FOR BIOMETHANE FROM MANURE MANAGEMENT SYSTEMS MUST ALLOW FOR THE USE OF MANURE FROM BEEF CATTLE OPERATIONS.
HE AIR QUALITY CONTROL COMMISSION MAY ALSO ADOPT A RECOVERED METHANE PROTOCOL THAT IS SPECIFIC TO MANURE MANAGEMENT FROM BEEF CATTLE OPERATIONS.
A recovered methane protocol must:
SECTION21.
In Colorado RevisedStatutes,40-42-102,amend (14) as follows:
40-42-102.
Definitions.
As used in this article 42, unless the context otherwise requires:
(14) "Project" means an undertaking by the authority to finance or to:
(a) Plan, acquire, maintain, and operate eligible facilities located partly or entirely within Colorado;
(b) R ENOVATE, REBUILD,OR RECONDITION EXISTING ELIGIBLE FACILITIE,THAT ARE LOCATEDPARTLYORENTIRELYWITHIN COLORADO AND ARE APPROVED THROUGH A LOCAL GOVERNMENT 'S LAND-USE APPLICATION PROCESS ,TO UPGRADE AND OPTIMIZE THE EXISTING FACILITIE.
SECTION22.
In Colorado RevisedStatutes,40-42-107,amend (1) introductory portion as follows:
40-42-107.
Labor standards - apprenticeship - supervision.
(1) The authority shall ensure that, in any construction, expansion, RENOVATION ,REBUILDING,RECONDITIONING,ormaintenanceoffacilities undertaken in Colorado pursuant to this article 42, all labor is performed -29- 016 either bythe employees of an electric utility, or byqualified contractors, or BYboth, and that, except as otherwise provided in subsection (3) of this section, an electric utility use a contractor unless:
SECTION 23.
In Colorado Revised Statutes, add 40-42-109 as follows:
40-42-109.
Study on expanding transmission capacity - reporting-repeal.(1) TEAUTHORITYSHALLEXPENDMONEYFROMTHE OPERATIONALFUND CREATEDINSECTION 40-42-106TOSTUDY THE NEED FOR EXPANDED TRANSMISSION CAPACITY IN THE STAT,INCLUDING:
(a) THE ABILITY TO EXPAND CAPACITY THROUGH THE CONSTRUCTION OF NEW TRANSMISSION LINES , IMPROVEMENTS TO EXISTING TRANSMISSION LINES, AND CONNECTIONS TO ORGANIZED WHOLESALE MARKETS ,AS DEFINED IN SECTI40-5-108 (1)(a);
(b) WHETHERANDHOWEXPANDEDTRANSMISSIONCAPACITYWILL :
(I) IPROVETHESYSTEMRELIABILITYOFTHEELECTRICGRIDAND PROVIDE OPTIMAL UTILIZATION OF ELECTRICITY FLOWS IN THE S;ATE (II) SPPORTTHESTATE SEMISSIONREDUCTIONGOALSSETFORTH IN SECTION25-7-102 (2)(g);
(III)UPPORTTHESTATE SFORECASTEDELECTRICITYNEEDS ;AND (IV) REDUCELANDIMPACTSBYUSINGEXISTINGRIGHTS -OF-WAY , INCLUDING FOR LARGE CAPACITY TRANSMISSION LINES;
CO-LOCATING MULTIPLETRANSMISSIONLINES ;RECONDUCTORINGTRANSMISSIONLINES ;
AND STRATEGICALLY SITING NEW TRANSMISSION CORRIDORS.
(2) THE AUTHORITY SHALL PREPARE:
(a) A N INITIAL REPORT OF THE STUDY , INCLUDING ANY RECOMMENDATIONS , AND PRESENT THE INITIAL REPORT TO THE COMMISSION ON OR BEFORE SEPTEMBER 1, 2024AND -30- 016 (b) A FINAL REPORT OF THE STUDY , INCLUDING ANY RECOMMENDATIONS , AND PRESENT THE FINAL REPORT TO THE JOINT COMMITTEE OF THE HOUSE OF REPRESENTATIVES ENERGY AND ENVIRONMENT COMMITTEE AND THE SENATE TRANSPORTATION AND ENERGY COMMITTEE ,OR THEIR SUCCESSOR COMMITTEES,ON OR BEFORE JANUARY 31, 2025.
(3) THIS SECTION IS REPEAL,EFFECTIVESEPTEMBER 1, 2025.
SECTION24.
InColoradoRevisedStatutes,29-20-108,add(7) as follows:
29-20-108.
Local government regulation - location, construction, or improvement of major electrical or natural gas facilities - powerline trail notification - expedited review for certain transmissionlineprojects-legislativedeclaration-definitions.(7) A LOCALGOVERNMENTSHALLEXPEDITE ASPRACTICABLE ,ITSREVIEWOFA LAND USE APPLICATION WITH REGARD TO A PROPOSED PROJECT TO RENOVATE , REBUILD, OR RECONDITION A TRANSMISSION LINE IN ACCORDANCE WITH SECTION 40-42-104 (3)(c).
SECTION 25.
In Colorado Revised Statutes, 25-7-105, amend (1)(e)(II) as follows:
25-7-105.
Duties of commission - technical secretary - rules - legislative declaration - definitions.
(1) Except as provided in sections 25-7-130 and 25-7-131, the commission shall promulgate rules that are consistent with the legislative declaration set forth in section 25-7-102 and necessary for the proper implementation and administration of this article 7, including:
(e) (II) Consistent with section 25-7-102 (2)(g), the commission shall timely promulgate implementing rules and regulations.
The -31- 016 implementing rules may take into account other relevant laws and rules, as well as voluntary actions taken by local communities and the private sector, to enhance efficiencyand cost-effectiveness, and shall be revised as necessary over time to ensure timely progress toward the 2025, 2030, 2035, 2040, 2045, and 2050 goals.
The implementing rules shall provide for ongoing tracking of emission sources that adversely affect disproportionately impacted communities and are subject to rules implementedpursuanttothissubsection(1)(e)andmustincludestrategies designed to achieve reductions in harmful air pollution affecting those communities.
SECTION 26.
Appropriation.
(1) For the 2023-24 state fiscal year, $191,790 is appropriated to the department of natural resources for use by the oil and gas conservation commission.
(a) $151,142 for program costs, which amount is based on an assumption that the commission will require an additional 1.6 FTE;
(a) $317,122 for program costs, which amount is based on an assumption that the commission will require an additional 3.2 FTE;
(b) $19,500 for the underground injection program;
and (b) $21,148 for legal services.
and (c) $21,148 for the purchase of legal services.
(2) For the 2023-24 state fiscal year, $14,706 is appropriated to the department of public health and environment for use by the air pollution control division.
(2) For the 2023-24 state fiscal year, $288,016 is appropriated to the department of public health and environment for use by the air pollutioncontroldivision.Thisappropriationisfromthegeneralfund.To implement this act, the division may use this appropriation as follows:
This appropriation is from the general fund, and is based on an assumption that the division will require an additional 0.2 FTE.
(a) $135,054 for personal services related to stationary sources, whichamountisbasedonanassumptionthatthesubdivisionwillrequire an additional 1.4 FTE;
To implement this act, the division may use this appropriation for personal services related to stationary sources.
-32- 016 (b) $15,500 for operating expenses related to stationary sources;
(3) For the 2023-24 state fiscal year, $34,052 is appropriated to the department of revenue.
and (c) $137,462 for the purchase of legal services.
(3) For the 2023-24 state fiscal year, $99,769 is appropriated to the department of revenue.
Toimplementthisact,thedivisionmayusethisappropriationasfollows:
To implement this act, the department may use this appropriation as follows:
(a) $44,327 for use by taxation services for personal services, which amount is based on an assumption that the division will require an additional 0.7 FTE;
(a) $7,392forusebytaxationservicesforoperatingexpenses;and (b) $26,660 for tax administration IT system (GenTax) support.
(b) $15,007 for use by taxation services for operating expenses;
(4) For the 2023-24 state fiscal year, $21,148 is appropriated to the department of law.
and (c) $40,435 for use by administration for tax administration IT system (GenTax) support.
This appropriation is from reappropriated funds receivedfromthedepartmentofnaturalresourcesundersubsection(1)(b) of this section and is based on an assumption that the department of law willrequireanadditional0.1FTE.Toimplementthisact,thedepartment of law may use this appropriation to provide legal services for the department of natural resources.".
(4) For the 2023-24 state fiscal year, $158,610 is appropriated to the department of law.
Page 33, strike lines 1 through 21.
This appropriation is from reappropriated funds receivedfromthedepartmentsof naturalresourcesandpublichealthand environment under subsections (1)(c) and (2)(c) of this section and is based on an assumption that the department of law will require an additional0.8FTE.Toimplementthisact,thedepartmentoflawmayuse thisappropriationtoprovidelegalservicesforthedepartmentsofnatural resources and public health and environment.
Page 33, strike line 23 and substitute "This act takes".
SECTION 27.
Page 34, strike lines 5 through 10.
Act subject to petition - effective date.
** *** ** *** ** -2-
(1) Except as provided in subsection (2) of this section, this effect at 12:01 a.m.
on the dayfollowing the expiration of the ninety-day period after final adjournment of the general assembly;
except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act -33- 016 within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2024 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.
(2) Section 39-22-549 (3)(d)(II), Colorado Revised Statutes, as enacted in section 8 of this act, and section 9 of this act take effect only if House Bill 23-1272 becomes law, in which case section 39-22-549 (3)(d)(II), Colorado Revised Statutes, as enacted in section 8 of this act, and section 9 of this act take effect on the effective date of this act or House Bill 23-1272, whichever is later.
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