Amendments for HB23-1281
House Journal, April 21
48 HB23-1281 be amended as follows, and as so amended, be referred to
49 the Committee on Finance with favorable
50 recommendation:
51
52 Amend printed bill, page 3, line 7, after "goals" insert "from 2030 to
53 2050".
54
55 Page 3, line 9, after "down" insert "for deployment of innovative
56 technologies both for emission reductions of end uses and".
1 Page 3, line 22, strike "and".
2
3 Page 4, line 1, strike "2040." and substitute "2040; and
4 (f) The inclusion of clean hydrogen as an element in
5 decarbonization pathways should include comprehensive assessments of
6 clean hydrogen in comparison to alternatives, including consideration of
7 life cycle emissions, costs, impacts on communities, including
8 disproportionately impacted communities, and environmental impacts on
9 water, air, land, and biodiversity.".
10
11 Page 4, line 9, after "reduction" insert "and environmental justice".
12
13 Page 4, line 13, strike "application process - ".
14
15 Page 5, strike lines 8 through 27.
16
17 Strike page 6.
18
19 Page 7, strike lines 1 through 5 and substitute:
20
21 "(2) THE COMMISSION SHALL INITIATE A PROCEEDING, NO LATER
22 THAN AUGUST 1, 2023, AND ADOPT RULES, NO LATER THAN SEPTEMBER 1,
23 2024, TO ADDRESS:
24 (a) AN APPROPRIATE REGULATORY FRAMEWORK, INCLUDING
25 GREENHOUSE GAS EMISSIONS, ECONOMIC, WORKFORCE, ENVIRONMENTAL,
26 AND ENVIRONMENTAL JUSTICE CONSIDERATIONS, FOR POTENTIAL FUTURE
27 CLEAN HYDROGEN PROJECTS;
28 (b) REQUIREMENTS FOR A POTENTIAL APPLICATION BY A UTILITY
29 FOR A CLEAN HYDROGEN PROJECT;
30 (c) A PROCESS FOR REVIEWING AND EVALUATING AN APPLICATION
31 BY A UTILITY FOR A CLEAN HYDROGEN PROJECT; AND
32 (d) REQUIREMENTS NECESSARY TO ENSURE THE HYDROGEN USED
33 IN CLEAN HYDROGEN PROJECTS MEETS THE DEFINITION OF CLEAN
34 HYDROGEN PURSUANT TO SUBSECTION (1)(a) OF THIS SECTION, INCLUDING
35 EMISSIONS ACCOUNTING FOR ADDITIONALITY, CURTAILMENT,
36 DELIVERABILITY, AND HOURLY TEMPORAL MATCHING.".
37
38 Page 8, strike lines 4 through 8 and substitute:
39
40 "(c) (I) "HARD TO ELECTRIFY INDUSTRIAL USE" MEANS INDUSTRIAL
41 USES THAT INCLUDE:
42 (A) THE GENERATION OF HEAT OF AT LEAST ONE HUNDRED FIFTY
43 DEGREES CELSIUS FOR INDUSTRIAL PURPOSES; AND
44 (B) ADDITION AS FEEDSTOCK FOR INDUSTRIAL PURPOSES,
45 INCLUDING MANUFACTURE OF STEEL, AMMONIA, FERTILIZER, AND
46 CHEMICALS.
47 (II) "HARD TO ELECTRIFY INDUSTRIAL USE" DOES NOT INCLUDE
48 THE DIRECT USE OF HYDROGEN FOR RESIDENTIAL OR COMMERCIAL
49 HEATING.".
50
51 Page 8, line 18, strike "INDUSTRIAL OPERATIONS;" and substitute "HARD
52 TO ELECTRIFY INDUSTRIAL USES;".
53
54 Page 9, line 14, strike "FIFTY" and substitute "THIRTY-THREE".
55
56 Page 10, line 11, after "(a)" insert "(I)".
1 Page 10, line 15, strike the second "USE" and substitute "USE AND THAT
2 THE HYDROGEN USED MEETS THE DEFINITION OF CLEAN HYDROGEN
3 PURSUANT TO SUBSECTION (2)(a) OF THIS SECTION".
4
5 Page 10, after line 18 insert:
6
7 "(II) THE APPLICATION DESCRIBED IN SUBSECTION (4)(a)(I) OF THIS
8 SECTION MUST ALSO INCLUDE VERIFICATION FROM THE HYDROGEN
9 PRODUCER PASSED TO THE USER AT THE POINT OF SALE THAT THE
10 HYDROGEN USED MEETS THE DEFINITION OF CLEAN HYDROGEN PURSUANT
11 TO SUBSECTION (2)(a) OF THIS SECTION.".
12
13
House Journal, April 27
32 HB23-1281 be amended as follows, and as so amended, be referred to
33 the Committee on Appropriations with favorable
34 recommendation:
35
36 Amend the Energy and Environment Committee Report, dated April 20,
37 2023, page 1, strike lines 14 through 19.
38
39 Page 2, strike lines 1 through 14 and substitute:
40
41 "Page 4 of the printed bill, strike lines 12 through 27.
42
43 Strike pages 5 and 6.
44
45 Page 7 of the bill, strike lines 1 through 5 and substitute:
46
47 "40-2-138. Projects for the production of clean hydrogen -
48 proceeding - hydrogen hub projects - rules - definitions. (1) AS USED
49 IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES:
50 (a) "CLEAN HYDROGEN" MEANS:
51 (I) GREEN HYDROGEN, AS DEFINED IN SECTION 40-3.2-108 (2)(j);
52 OR
53
1 (II) HYDROGEN THAT IS PRODUCED THROUGH A PROCESS THAT
2 RESULTS IN LIFECYCLE GREENHOUSE GAS EMISSIONS RATES THAT ARE
3 WITHIN THE LIFECYCLE GREENHOUSE GAS EMISSIONS RATE RANGES SET
4 FORTH IN 26 U.S.C. SECS. 45V (b)(2)(C) AND 45V (b)(2)(D), AS
5 AMENDED.
6 (b) (I) "CLEAN HYDROGEN PROJECT" MEANS A PROJECT THAT
7 RESULTS IN THE PRODUCTION OR USE OF CLEAN HYDROGEN BY AN
8 INVESTOR-OWNED UTILITY.
9 (II) "CLEAN HYDROGEN PROJECT" MAY INCLUDE PIPELINES,
10 ELECTROLYZERS, ENVIRONMENTAL CONTROLS, MONITORING EQUIPMENT,
11 DEDICATED RENEWABLE ENERGY SOURCES FOR ELECTROLYSIS, THE
12 PURCHASE OF CLEAN HYDROGEN FROM THIRD PARTIES, AND AN UPGRADE
13 TO A TURBINE AT AN ELECTRIC GENERATING STATION IF THAT UPGRADE IS
14 PART OF A STATE OR FEDERAL APPLICATION FOR A REGIONAL CLEAN
15 HYDROGEN HUB UNDER 42 U.S.C. 16161a.
16 "(c) "CUMULATIVE IMPACTS" MEANS THE INCREMENTAL EFFECTS
17 OF A CLEAN HYDROGEN PROJECT ON THE ENVIRONMENT, INCLUDING
18 EFFECTS ON AIR QUALITY, WATER QUALITY, WATER RESOURCE
19 AVAILABILITY, CLIMATE, AND PUBLIC HEALTH, THAT A CLEAN HYDROGEN
20 PROJECT HAS WHEN ADDED TO THE IMPACTS FROM OTHER PAST, PRESENT,
21 AND REASONABLY FORESEEABLE FUTURE DEVELOPMENT OF ANY TYPE ON
22 THE RELEVANT AREA, INCLUDING AN AIRSHED OR WATERSHED, AS
23 DETERMINED BY RULE BY THE COMMISSION , OR ON A
24 DISPROPORTIONATELY IMPACTED COMMUNITY.
25 (d) "DISPROPORTIONATELY IMPACTED COMMUNITY" HAS THE
26 MEANING SET FORTH IN SECTION 24-4-109 (2)(b)(II).
27 (e) (I) "HARD TO DECARBONIZE END USE" MEANS INDUSTRIAL USES
28 THAT INCLUDE:
29 (A) THE GENERATION OF HEAT OF AT LEAST ONE HUNDRED FIFTY
30 DEGREES CELSIUS FOR INDUSTRIAL PURPOSES; AND
31 (B) ADDITION AS FEEDSTOCK FOR INDUSTRIAL PURPOSES,
32 INCLUDING MANUFACTURE OF STEEL, AMMONIA, FERTILIZER, AND
33 CHEMICALS.
34 (II) "HARD TO DECARBONIZE END USE" DOES NOT INCLUDE THE
35 DIRECT USE OF HYDROGEN FOR RESIDENTIAL OR COMMERCIAL HEATING.
36 (f) "HYDROGEN HUB PROJECT" MEANS A PROJECT THAT IS PART OF
37 AN APPLICATION FOR FEDERAL FUNDING BY A PARTNERSHIP OF REGULATED
38 UTILITIES, PRIVATE PARTNERS, AND COMPANIES AND MAY INCLUDE STATE
39 OR FEDERAL GOVERNMENT AGENCIES IN COLLABORATION WITH OTHER
40 STATES THAT IS DESIGNED TO UTILIZE AVAILABLE FEDERAL FUNDS AND
41 TAX CREDITS, WHICH MAY INCLUDE THE PRODUCTION, TRANSPORT, AND
42 USE OF CLEAN HYDROGEN.
43 (g) "LIFECYCLE GREENHOUSE GAS EMISSIONS RATE" MEANS
44 LIFECYCLE GREENHOUSE GAS EMISSIONS, AS DEFINED IN 26 U.S.C. SEC.
45 45V (c)(1)(A), AS AMENDED, MEASURED IN ACCORDANCE WITH ANY
46 APPLICABLE FEDERAL INTERNAL REVENUE SERVICE REGULATIONS OR
47 GUIDANCE.
48 (h) "OFFICE" MEANS THE COLORADO ENERGY OFFICE CREATED IN
49 SECTION 24-38.5-101.
50 (i) "QUALIFIED USE" MEANS THE USE OF CLEAN HYDROGEN IN THE
51 STATE FOR:
52 (I) HARD TO DECARBONIZE END USES;
53 (II) THE OPERATION OF A HEAVY-DUTY MOTOR VEHICLE, AS
54 DEFINED IN SECTION 25-7.5-102 (11); AND
55 (III) AVIATION.
1 (2) THE COMMISSION SHALL INITIATE AN INVESTIGATORY
2 PROCEEDING, NO LATER THAN AUGUST 1, 2023, TO CONSIDER:
3 (a) THE POTENTIAL FOR CLEAN HYDROGEN PROJECTS OPERATED BY
4 INVESTOR-OWNED UTILITIES SUBJECT TO REGULATION BY THE COMMISSION
5 TO CONTRIBUTE TO MEETING THE GREENHOUSE GAS EMISSION REDUCTION
6 GOALS DESCRIBED IN SECTION 25-7-102 (2)(g), INCLUDING LIFECYCLE
7 GREENHOUSE GAS EMISSIONS RATES, WITH A PREFERENCE FOR QUALIFIED
8 USES;
9 (b) THE IMPACT OF CLEAN HYDROGEN PROJECTS ON THE EMISSION
10 OF AIR POLLUTANTS OTHER THAN GREENHOUSE GASES AND HUMAN
11 HEALTH;
12 (c) POTENTIAL MARKETS FOR CLEAN HYDROGEN IN COLORADO;
13 (d) THE IMPACT OF CLEAN HYDROGEN PRODUCTION ON WATER
14 QUALITY AND QUANTITY IN COLORADO;
15 (e) THE POTENTIAL IMPACTS OF PIPELINE LEAKAGE AND BEST
16 PRACTICES FOR MITIGATION;
17 (f) THE POTENTIAL FOR THE DEVELOPMENT OF CLEAN HYDROGEN
18 TO HELP CREATE OR SUSTAIN JOBS IN COLORADO, INCLUDING UTILITY
19 JOBS;
20 (g) THE COST, CAPABILITIES, AND MARKET AVAILABILITY OF
21 CLEAN HYDROGEN TECHNOLOGIES, INCLUDING PIPELINE INVESTMENTS;
22 (h) THE APPROPRIATE ROLES FOR INVESTOR-OWNED UTILITIES IN
23 THE PRODUCTION, SALE, OR USE OF CLEAN HYDROGEN, INCLUDING
24 CONSIDERING WHETHER COSTS MAY BE RECOVERED FROM RATEPAYERS;
25 (i) THE POTENTIAL IMPACT OF INVESTOR-OWNED UTILITY
26 INVESTMENTS IN A CLEAN HYDROGEN PROJECT ON RATEPAYERS,
27 INCLUDING ON BILLS, RATES, AND RATE STABILITY, AND OPTIONS FOR
28 AVOIDING POTENTIAL CROSS-SUBSIDIZATION AND COST SHIFTING ACROSS
29 RATE CLASSES;
30 (j) PRINCIPLES AND REQUIREMENTS FOR ANY TARIFFS FOR THE
31 SALE OF CLEAN HYDROGEN TO THIRD PARTIES, INCLUDING PRINCIPLES AND
32 REQUIREMENTS TO ENSURE THAT COSTS ARISING FROM THE DEVELOPMENT,
33 PRODUCTION, TRANSPORT, AND DELIVERY OF THE CLEAN HYDROGEN
34 UNDER THOSE TARIFFS ARE NOT BORNE BY CUSTOMERS WHO DO NOT TAKE
35 SERVICE FROM THOSE TARIFFS;
36 (k) THE PROCESS AND DATA NECESSARY AND AVAILABLE TO
37 IMPLEMENT A REQUIREMENT FOR THE ADOPTION OF METHODS FOR:
38 (I) THE MEASUREMENT OF LIFECYCLE GREENHOUSE GAS EMISSIONS
39 RATES, INCLUDING METHODS FOR DETERMINING WHEN HOURLY MATCHING
40 OF ELECTRICITY USED WILL BECOME ECONOMICALLY VIABLE;
41 (II) THE TRACKING OF THE DEPLOYMENT OF NEW RENEWABLE
42 ENERGY RESOURCES OR USE OF CURTAILED RENEWABLE ENERGY TO MEET
43 ELECTRICITY REQUIREMENTS FOR PRODUCTION OF CLEAN HYDROGEN IN
44 THE SAME LOAD BALANCING AREA; AND
45 (III) THE COMMISSION TO DETERMINE WHEN AT LEAST TWO
46 HUNDRED MEGAWATTS OF ELECTROLYZERS ARE OPERATIONAL IN THE
47 STATE;
48 (l) THE PROCESS AND DATA NECESSARY FOR AN INVESTOR-OWNED
49 UTILITY TO CONDUCT A CUMULATIVE IMPACT ANALYSIS OF A CLEAN
50 HYDROGEN PROJECT AND ANY PROCESS NECESSARY TO AVOID ADVERSE
51 CUMULATIVE IMPACTS ON DISPROPORTIONATELY IMPACTED COMMUNITIES,
52 IF ANY, WHICH MAY INCLUDE THE COMMISSION CONSIDERING:
53 (I) THE TIME FRAME OVER WHICH A CUMULATIVE IMPACT
54 ANALYSIS SHOULD BE CONDUCTED;
55
1 (II) THE GEOGRAPHICAL SCOPE OF A CUMULATIVE IMPACT
2 ANALYSIS; AND
3 (III) WHETHER THE CUMULATIVE IMPACT ANALYSIS SHOULD BE
4 COMPARED TO ALTERNATIVE PROJECTS;
5 (m) REQUIREMENTS FOR AN APPLICATION FOR A CLEAN HYDROGEN
6 PROJECT, IN ADDITION TO THE REQUIREMENTS DESCRIBED IN SUBSECTION
7 (3)(a)(V) OF THIS SECTION AND SUBJECT TO SUBSECTIONS (4) AND (5) OF
8 THIS SECTION;
9 (n) ANY DATA OR INFORMATION NECESSARY OR AVAILABLE TO
10 EVALUATE A CLEAN HYDROGEN PROJECT AGAINST ALTERNATIVE
11 PROJECTS, INCLUDING HOW TO MEASURE, TRACK, AND REPORT LIFECYCLE
12 GREENHOUSE GAS EMISSIONS RATES, CUMULATIVE IMPACTS, AND THE
13 CUMULATIVE IMPACTS AND INDIVIDUAL IMPACTS ON JOBS, LOCAL
14 ECONOMIC BENEFITS, AND WATER USE BY CLEAN HYDROGEN PROJECTS
15 UNDER THE COMMISSION'S JURISDICTION;
16 (o) OPPORTUNITIES TO ENCOURAGE NON-UTILITY PRODUCTION OF
17 CLEAN HYDROGEN IN COLORADO, INCLUDING OPPORTUNITIES FOR AN
18 INVESTOR-OWNED UTILITY TO PROPOSE A TARIFF FOR THE SALE OF
19 RENEWABLE ENERGY THAT WOULD OTHERWISE BE CURTAILED; AND
20 (p) ANY OTHER RELEVANT ISSUES THAT THE COMMISSION
21 DETERMINES ARE NECESSARY TO CONSIDER.
22 (3) (a) NO LATER THAN DECEMBER 1, 2024, UNLESS THE OFFICE
23 FILES A NOTICE WITH THE COMMISSION STATING THAT THE FEDERAL
24 DEPARTMENT OF ENERGY HAS EXTENDED OR OTHERWISE ALTERED THE
25 DEADLINE REGARDING FUNDING FOR A HYDROGEN HUB PROJECT, THE
26 COMMISSION SHALL ADOPT RULES THAT:
27 (I) ESTABLISH REQUIREMENTS FOR LIFECYCLE GREENHOUSE GAS
28 EMISSIONS RATE ACCOUNTING FOR CLEAN HYDROGEN PROJECTS;
29 (II) ADDRESS THE APPROPRIATE ROLE OF INVESTOR-OWNED
30 UTILITIES IN THE PRODUCTION, SALE, AND USE OF CLEAN HYDROGEN,
31 INCLUDING WHETHER COSTS MAY BE RECOVERED FROM RATEPAYERS;
32 (III) ADDRESS HOW INVESTOR-OWNED UTILITIES MAY USE
33 COMPETITIVE SOLICITATIONS IN A CLEAN HYDROGEN PROJECT AND ANY
34 LIMITATIONS FOR THE USE OF COMPETITIVE SOLICITATIONS TO DEVELOP
35 THE CLEAN HYDROGEN PROJECT;
36 (IV) ESTABLISH A REQUIREMENT THAT ANY PLANNED OR
37 POTENTIAL USE FOR THE CLEAN HYDROGEN IN BUILDINGS OR GAS
38 DISTRIBUTION SYSTEMS OF AN INVESTOR-OWNED UTILITY BE PROPOSED TO
39 AND APPROVED BY THE COMMISSION THROUGH A CLEAN HEAT PLAN, AS
40 DEFINED IN SECTION 40-3.2-108 (2)(b); AND
41 (V) ADDRESS WHAT IS REQUIRED IN AN APPLICATION BY AN
42 INVESTOR-OWNED UTILITY FOR A CLEAN HYDROGEN PROJECT, SUBJECT TO
43 SUBSECTIONS (4) AND (5) OF THIS SECTION, INCLUDING:
44 (A) A COMPARISON OF A CLEAN HYDROGEN PROJECT TO
45 ALTERNATIVE PROJECTS, INCLUDING AN ANALYSIS OF THE COSTS AND
46 BENEFITS OF THE CLEAN HYDROGEN PROJECT COMPARED TO ALTERNATIVE
47 PROJECTS;
48 (B) A DESCRIPTION OF HOW THE INVESTOR-OWNED UTILITY WILL
49 MEASURE AND TRACK THE ANNUAL AND CUMULATIVE LIFECYCLE
50 GREENHOUSE GAS EMISSIONS RATES AND THE EMISSION OF OTHER AIR
51 POLLUTANTS IN ACCORDANCE WITH THE RULES ADOPTED PURSUANT TO
52 SUBSECTION (3)(a)(I) OF THIS SECTION;
53
1 (C) A DESCRIPTION OF HOW THE INVESTOR-OWNED UTILITY WILL:
2 MINIMIZE THE LIFECYCLE GREENHOUSE GAS EMISSIONS RATES OF THE
3 CLEAN HYDROGEN PROJECT; CONDUCT LEAK DETECTION THROUGHOUT THE
4 LIFE OF THE CLEAN HYDROGEN PROJECT; AND CONDUCT A CUMULATIVE
5 IMPACT ANALYSIS OF THE CLEAN HYDROGEN PROJECT;
6 (D) AN ASSESSMENT OF THE ANNUAL WATER VOLUME THAT WILL
7 BE USED IN THE CLEAN HYDROGEN PROJECT, INCLUDING THE SOURCE OF
8 WATER TO BE USED;
9 (E) A DESCRIPTION OF ANY PLANNED USES, INCLUDING POTENTIAL
10 END USES BY THE INVESTOR-OWNED UTILITY'S CUSTOMERS, OF THE CLEAN
11 HYDROGEN PRODUCED THROUGH THE CLEAN HYDROGEN PROJECT, WITH A
12 PREFERENCE FOR QUALIFIED USES;
13 (F) A DESCRIPTION OF ANY PLANNED SALES OF CLEAN HYDROGEN
14 TO NON-UTILITY CUSTOMERS, WITH A PREFERENCE FOR QUALIFIED USES;
15 (G) A DESCRIPTION OF THE PROPOSED METHOD OF COST RECOVERY
16 FOR THE CLEAN HYDROGEN PROJECT, INCLUDING INFORMATION
17 REGARDING WHICH RATE CLASSES WILL COVER THE COSTS OF THE CLEAN
18 HYDROGEN PROJECT;
19 (H) A DESCRIPTION OF THE TOTAL REVENUE REQUIREMENT FOR
20 THE CLEAN HYDROGEN PROJECT;
21 (I) A DESCRIPTION OF THE RATE AND BILL IMPACTS OF THE CLEAN
22 HYDROGEN PROJECT;
23 (J) A DESCRIPTION OF ANY TARIFFS FOR THE SALE OF CLEAN
24 HYDROGEN PRODUCED BY THE CLEAN HYDROGEN PROJECT;
25 (K) A PROPOSAL FOR THE ALLOCATION OF REVENUES RECEIVED
26 FROM THE SALE OF CLEAN HYDROGEN PRODUCED BY THE CLEAN
27 HYDROGEN PROJECT TO NON-UTILITY CUSTOMERS AMONG CUSTOMERS
28 AND THE INVESTOR-OWNED UTILITY, INCLUDING WHICH PARTY BEARS THE
29 RISK THAT THE AMOUNT OF REVENUE ANTICIPATED FROM THE CLEAN
30 HYDROGEN PROJECT IS NOT ULTIMATELY RECEIVED;
31 (L) A CUMULATIVE IMPACT ANALYSIS FRAMEWORK; AND
32 (M) IF THE INVESTOR-OWNED UTILITY PLANS TO USE A
33 COMPETITIVE SOLICITATION PROCESS AS PART OF THE CLEAN HYDROGEN
34 PROJECT, A DESCRIPTION OF HOW THE PLANNED COMPETITIVE
35 SOLICITATION PROCESS WILL BE USED AND IN WHAT CIRCUMSTANCES THE
36 PROCESS WILL BE USED.
37 (b) (I) THE RULES ADOPTED BY THE COMMISSION PURSUANT TO
38 SUBSECTION (3)(a)(I) OF THIS SECTION MUST INCLUDE REQUIREMENTS FOR:
39 (A) THE COMMISSION TO DETERMINE WHEN MATCHING OF
40 ELECTROLYZER ENERGY CONSUMPTION WITH ELECTRICITY PRODUCTION
41 ON AN HOURLY BASIS IS ECONOMICALLY VIABLE;
42 (B) THE ADDITIONALITY OR CURTAILMENT OF ZERO EMISSION
43 ENERGY THAT MEETS THE ENERGY CONSUMPTION OF THE ELECTROLYZER,
44 WHEN COUNTING ENERGY USED FOR HYDROGEN PRODUCTION AS ZERO
45 EMISSIONS, WHICH MUST BE CONSIDERED FOR ENERGY PRODUCTION THAT
46 BEGAN LESS THAN TWELVE MONTHS BEFORE THE START OF OPERATIONS OF
47 THE ELECTROLYZER;
48 (C) THE DELIVERABILITY OF RENEWABLE ENERGY USED BY THE
49 ELECTROLYZER INTO THE SAME LOAD BALANCING AREA AS THE
50 ELECTROLYZER.
51 (II) THE COMMISSION SHALL MAKE THE RULES ADOPTED BY THE
52 COMMISSION PURSUANT TO SUBSECTION (3)(a)(I) OF THIS SECTION
53 EFFECTIVE NO LATER THAN JANUARY 1, 2028, OR NO LATER THAN ONE
54 YEAR AFTER THE DEPLOYMENT OF HYDROGEN ELECTROLYZERS IN THE
55 STATE EXCEEDS TWO HUNDRED MEGAWATTS, WHICHEVER IS EARLIER.
1 (c) (I) IN DEVELOPING THE RULES PURSUANT TO SUBSECTION (3)(a)
2 OF THIS SECTION, THE COMMISSION SHALL CONSIDER THE POTENTIAL FOR
3 FEDERAL FUNDING FOR CLEAN HYDROGEN PROJECTS AND THAT CLEAN
4 HYDROGEN PROJECTS IMPLEMENTED BY INVESTOR-OWNED UTILITIES MAY
5 BE NECESSARY TO SECURE FEDERAL FUNDING.
6 (II) IN DEVELOPING THE RULES PURSUANT TO SUBSECTION (3)(a)(I)
7 OF THIS SECTION, THE COMMISSION SHALL CONSIDER WHAT INFORMATION
8 AND MARKET MECHANISMS ARE NECESSARY AND AVAILABLE FOR
9 HYDROGEN PRODUCERS TO COMPLY WITH THE RULES. IF THE FEDERAL
10 INTERNAL REVENUE SERVICE ISSUES GUIDANCE THAT MEETS OR EXCEEDS
11 THE RULES, THE COMMISSION SHALL ADOPT RULES THAT COMPLY WITH THE
12 GUIDANCE.
13 (d) IF THE OFFICE FILES THE NOTICE DESCRIBED IN SUBSECTION
14 (3)(a) OF THIS SECTION WITH THE COMMISSION, THE COMMISSION SHALL
15 COORDINATE WITH THE OFFICE TO DETERMINE AN APPROPRIATE DATE FOR
16 THE ADOPTION OF THE RULES DESCRIBED IN SUBSECTION (3)(a) OF THIS
17 SECTION.
18 (4) (a) THE COMMISSION SHALL ALLOW AN INVESTOR-OWNED
19 UTILITY TO PRESENT TO THE COMMISSION A STAND-ALONE APPLICATION
20 FOR A CLEAN HYDROGEN PROJECT FOR WHICH AN INVESTOR-OWNED
21 UTILITY HAS APPLIED FOR FEDERAL FUNDING AS PART OF A HYDROGEN HUB
22 PROJECT AT ANY TIME BEFORE JUNE 1, 2024, UNLESS THE OFFICE FILES A
23 NOTICE WITH THE COMMISSION STATING THAT THE FEDERAL DEPARTMENT
24 OF ENERGY HAS EXTENDED OR OTHERWISE ALTERED THE DEADLINE
25 REGARDING FUNDING FOR A HYDROGEN HUB PROJECT. THE APPLICATION
26 MAY ONLY ADDRESS ELEMENTS OF A HYDROGEN HUB PROJECT THAT ARE
27 NOT LOCATED IN THE DENVER METROPOLITAN AREA.
28 (b) THE APPLICATION PROCESS DESCRIBED IN SUBSECTION (4)(a)
29 OF THIS SECTION MUST BE CONSISTENT WITH THE REQUIREMENTS OF
30 SUBSECTION (3) OF THIS SECTION. AN INVESTOR-OWNED UTILITY SEEKING
31 APPROVAL OF A CLEAN HYDROGEN PROJECT PURSUANT TO SUBSECTION
32 (4)(a) OF THIS SECTION SHALL ALSO DEMONSTRATE THAT A
33 TIME-SENSITIVE REVIEW OF THE INVESTOR-OWNED UTILITY'S APPLICATION
34 IS NECESSARY BASED ON THE TIMING REQUIREMENTS FOR OBTAINING
35 NECESSARY FUNDING, NOT INCLUDING TAX CREDITS, FROM, OR A
36 PARTNERSHIP WITH, A FEDERAL OR STATE AGENCY FOR THE ACQUISITION
37 OF NECESSARY FACILITIES AND THAT THE FUNDING OR PARTNERSHIP
38 CANNOT BE ACCOMPLISHED THROUGH ANY PENDING OR FUTURE ELECTRIC
39 RESOURCE PLANNING PROCESS.
40 (c) IF THE FUNDING OR PARTNERSHIP DESCRIBED IN SUBSECTION
41 (4)(b) OF THIS SECTION, INCLUDING ANY ASSOCIATED CONTRACTS,
42 AWARDS, OR TIMING REQUIREMENTS, ALLOWS FOR COMPETITIVE
43 SOLICITATIONS AS PART OF THE DEVELOPMENT OF THE CLEAN HYDROGEN
44 PROJECT, THE COMMISSION MAY DIRECT THE INVESTOR-OWNED UTILITY TO
45 ISSUE A SOLICITATION TO ACQUIRE THE NECESSARY PROJECTS OR
46 FACILITIES FOR THE CLEAN HYDROGEN PROJECT. THE COMMISSION SHALL
47 REVIEW ANY APPROVED COMPETITIVE SOLICITATION PROCESS AND BIDS
48 RECEIVED PRIOR TO THE INVESTOR-OWNED UTILITY'S ACQUISITION OF THE
49 NECESSARY FACILITIES FOR THE CLEAN HYDROGEN PROJECT. AN
50 INVESTOR-OWNED UTILITY THAT FILED THE CLEAN HYDROGEN PROJECT
51 APPLICATION PURSUANT TO SUBSECTION (4)(a) OF THIS SECTION MAY
52 SUBMIT A BID IN RESPONSE TO A SOLICITATION PURSUANT TO THIS
53 SUBSECTION (4)(c).
54
1 (5) (a) IN REVIEWING, APPROVING, DENYING, OR AMENDING AN
2 APPLICATION PURSUANT TO THIS SECTION, THE COMMISSION SHALL
3 CONSIDER, AT A MINIMUM:
4 (I) WHETHER IT IS IN THE PUBLIC INTEREST FOR AN
5 INVESTOR-OWNED UTILITY TO INVEST IN THE ELEMENTS OF THE CLEAN
6 HYDROGEN PROJECT AS SET FORTH IN THE APPLICATION;
7 (II) THE POTENTIAL CONTRIBUTION OF THE CLEAN HYDROGEN
8 PROJECT IN MEETING THE GREENHOUSE GAS EMISSION REDUCTION GOALS
9 DESCRIBED IN SECTION 25-7-102 (2)(g), INCLUDING LIFECYCLE
10 GREENHOUSE GAS EMISSIONS RATES;
11 (III) THE IMPACTS OF THE CLEAN HYDROGEN PROJECT COMPARED
12 TO ALTERNATIVE PROJECTS, INCLUDING:
13 (A) RATE AND BILL IMPACTS;
14 (B) THE IMPACTS ON RATE STABILITY; AND
15 (C) ANY OTHER IMPACTS IDENTIFIED BY THE COMMISSION
16 PURSUANT TO THIS SUBSECTION (5)(a);
17 (III) THE USE OF COMPETITIVE SOLICITATIONS, IF ANY;
18 (IV) IF THE CLEAN HYDROGEN PROJECT CONTEMPLATES THE SALE
19 OF CLEAN HYDROGEN, THE POTENTIAL FOR CROSS-SUBSIDIZATION AND
20 COST SHIFTING ACROSS RATE CLASSES;
21 (V) IF THE CLEAN HYDROGEN PROJECT IS PROPOSED TO BE SITED
22 IN AN AREA THAT WOULD AFFECT A DISPROPORTIONATELY IMPACTED
23 COMMUNITY, THE COMMISSION SHALL WEIGH THE SUBMITTED
24 CUMULATIVE IMPACTS ANALYSIS AND DETERMINE THROUGH A PLAIN
25 LANGUAGE SUMMARY OF ITS DETERMINATION WHETHER, ON BALANCE,
26 THE CLEAN HYDROGEN PROJECT WILL HAVE A POSITIVE IMPACT ON THE
27 DISPROPORTIONATELY IMPACTED COMMUNITY AND ANY PROPOSAL THAT
28 HAS A NET NEGATIVE IMPACT ON ANY DISPROPORTIONATELY IMPACTED
29 COMMUNITY MUST BE DENIED;
30 (VI) THE IMPACTS OF THE CLEAN HYDROGEN PROJECT ON THE
31 UTILITY WORKFORCE IN THE STATE, INCLUDING THE USE OF "BEST VALUE"
32 EMPLOYMENT METRICS PURSUANT TO SECTION 40-2-129;
33 (VII) THE IMPACTS OF THE CLEAN HYDROGEN PROJECT ON A
34 COMMUNITY'S TAX BASE AND REVENUES;
35 (VIII) THE USES OF THE CLEAN HYDROGEN PRODUCED BY THE
36 CLEAN HYDROGEN PROJECT, WITH A PREFERENCE FOR QUALIFIED USES;
37 (IX) THE PUBLIC HEALTH AND SAFETY IMPACTS OF THE CLEAN
38 HYDROGEN PROJECT; AND
39 (X) THE AVAILABILITY OF FEDERAL FUNDING FOR THE CLEAN
40 HYDROGEN PROJECT.
41 (b) THE COMMISSION SHALL REVIEW ANY CLEAN HYDROGEN
42 PROJECT APPLICATION SUBMITTED PURSUANT TO THIS SECTION IN
43 ACCORDANCE WITH ANY APPLICABLE ELECTRIC RESOURCE PLANNING
44 RULES.
45 (6) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE
46 CONTRARY, AN INVESTOR-OWNED UTILITY SHALL PROVIDE NOTICE TO THE
47 COMMISSION OF ANY APPLICATION FOR FEDERAL FUNDING AS PART OF A
48 HYDROGEN HUB PROJECT, INCLUDING:
49 (a) ANY HYDROGEN HUB PROJECT MILESTONES;
50 (b) A DESCRIPTION OF ANY DEADLINES FOR SUBMISSION OF
51 MATERIALS TO SUPPORT THE APPLICATION, INCLUDING WHETHER ANY
52 ADDITIONAL FILINGS WILL BE REQUIRED; AND
53 (c) TO THE EXTENT KNOWN OR CONSISTENT WITH ANY
54 REQUIREMENTS OR LIMITATIONS OF THE FEDERAL DEPARTMENT OF ENERGY
55 OR ANY RELATED JOINT MEMORANDUMS OF UNDERSTANDING OR OTHER
1 CONTRACTS ENTERED INTO BY THE INVESTOR-OWNED UTILITY AND THE
2 STATE, INFORMATION REGARDING WHEN FUNDING AWARDS WILL BE
3 DETERMINED.
4 (7) (a) AN INVESTOR-OWNED UTILITY THAT OPERATES A CLEAN
5 HYDROGEN PROJECT APPROVED PURSUANT TO THIS SECTION SHALL SUBMIT
6 TO THE COMMISSION AN ANNUAL REPORT THAT SHOWS:
7 (I) THE LIFECYCLE GREENHOUSE GAS EMISSIONS RATES FROM THE
8 CLEAN HYDROGEN PROJECT;
9 (II) THE GREENHOUSE GAS EMISSIONS FROM THE CLEAN HYDROGEN
10 PROJECT;
11 (III) ANY EMISSION OF OTHER AIR POLLUTANTS FROM THE CLEAN
12 HYDROGEN PROJECT;
13 (IV) THE WATER USE OF THE CLEAN HYDROGEN PROJECT;
14 (V) PRODUCTION VOLUMES AND SALES OF HYDROGEN, INCLUDING
15 TYPES OF CUSTOMERS AND USES;
16 (VI) PROJECT DEVELOPMENT AND COST UPDATES FOR PROJECTS
17 WITH COST RECOVERY FROM RATEPAYERS; AND
18 (VII) NET CUMULATIVE IMPACT UPDATES FOR PROJECTS LOCATED
19 IN DISPROPORTIONATELY IMPACTED COMMUNITIES.
20 (b) IF THE CLEAN HYDROGEN PROJECT INCLUDES THE PRODUCTION
21 AND THE USE OR CONSUMPTION OF CLEAN HYDROGEN BY THE
22 INVESTOR-OWNED UTILITY, THE INVESTOR-OWNED UTILITY SHALL REPORT
23 THE LIFECYCLE GREENHOUSE GAS EMISSIONS RATES OF THE CLEAN
24 HYDROGEN PROJECT SEPARATELY BY EACH PRODUCTION FACILITY AND
25 USE.
26 (c) THE ANNUAL REPORT MUST INCLUDE INFORMATION THAT
27 ALLOWS THE OFFICE TO MAKE THE VERIFICATIONS REQUIRED PURSUANT TO
28 SECTION 39-22-549 (4)(a)(II).".".
29
30 Page 2 of the report, strike lines 16 through 25 and substitute:
31
32 ""(c) "HARD TO DECARBONIZE END USE" HAS THE MEANING SET
33 FORTH IN SECTION 40-2-138 (1)(e).".".
34
35 Page 2 of the report, strike lines 26 and 27 and substitute:
36
37 "Page 8 of the bill, strike lines 16 through 21 and substitute:
38
39 "(f) "QUALIFIED USE" HAS THE MEANING SET FORTH IN SECTION
40 40-2-138 (1)(i).".".
41
42 Page 3 of the report, after line 3 insert:
43
44 "Page 12 of the bill, strike lines 7 through 15 and substitute:
45
46 "SECTION 4. Safety clause. The general assembly hereby finds,
47 determines, and declares that this act is necessary for the immediate
48 preservation of the public peace, health, or safety.".".
49
50
House Journal, April 29
28 HB23-1281 be amended as follows, and as so amended, be referred to
29 the Committee of the Whole with favorable
30 recommendation:
31
32 Amend printed bill, page 12, after line 6 insert:
33
34 "SECTION 4. Appropriation. (1) For the 2023-24 state fiscal
35 year, $360,758 is appropriated to the department of regulatory agencies
36 for use by the public utilities commission. This appropriation is from the
114 37 public utilities commission fixed utility fund created in section 40-2-
38 (1)(b)(II), C.R.S. To implement this act, the department may use this
39 appropriation as follows:
40 (a) $241,532 for use by the public utilities commission for
41 personal services, which amount is based on an assumption that the
42 commission will require an additional 3.0 FTE;
43 (b) $24,060 for use by the public utilities commission for
44 operating expenses; and
45 (c) $95,166 for legal services.
46 (2) For the 2023-24 state fiscal year, $95,166 is appropriated to
47 the department of law. This appropriation is from reappropriated funds
48 received from the department of regulatory agencies under subsection
49 (1)(c) of this section and is based on an assumption that the department
50 of law will require an additional 0.5 FTE. To implement this act, the
51 department of law may use this appropriation to provide legal services for
52 the department of regulatory agencies.
53 (3) For the 2023-24 state fiscal year, $12,861 is appropriated to
54 the department of revenue for use by taxation services. This appropriation
55 is from the general fund. To implement this act, the division may use this
56 appropriation for the purchase of document management services.
1 (4) For the 2023-24 state fiscal year, $12,861 is appropriated to
2 the department of personnel. This appropriation is from reappropriated
3 funds received from the department of revenue under subsection (3) of
4 this section. To implement this act, the department of personnel may use
5 this appropriation to provide document management services for the
6 department of revenue.".
7
8 Renumber succeeding section accordingly.
9
10 Page 1, line 102, strike "STATE." and substitute "STATE, AND, IN
11 CONNECTION THEREWITH, MAKING AN APPROPRIATION.".
12
13
House Journal, April 29
47 Amendment No. 1, Appropriations Report, dated April 29, 2023, and
48 placed in member's bill file; Report also printed in House Journal,
49 April 29, 2023.
50
51 Amendment No. 2, Finance Report, dated April 27, 2023, and placed in
52 member's bill file; Report also printed in House Journal, April 27, 2023.
53
54
1 Amendment No. 3, Energy & Environment Report, dated April 20, 2023,
2 and placed in member's bill file; Report also printed in House Journal,
3 April 21, 2023.
4
5 Amendment No. 4, by Representative Titone:
6
7 Amend the Finance Committee Report, dated April 27, 2023, page 1, line
8 19, strike "OR USE".
9
10 Page 4, line 17, strike "AN" and substitute "ANY".
11
12 Page 4, line 19, strike "(3)(a)(V)" and substitute "(3)(a)(VI)".
13
14 Page 4, after line 38 insert:
15
16 "(I) UNLESS THE COMMISSION DETERMINES THAT
17 INVESTOR-OWNED UTILITIES SHOULD NOT DEVELOP CLEAN HYDROGEN
18 PROJECTS FOR COST RECOVERY FROM RATEPAYERS, ESTABLISH
19 REQUIREMENTS FOR THE PRESENTATION OF A CLEAN HYDROGEN PROJECT
20 TO THE COMMISSION FOR THE COMMISSION'S APPROVAL;".
21
22 Renumber succeeding subparagraphs accordingly.
23
24 Page 4, strike line 43 and substitute "INCLUDING WHETHER AND HOW
25 COSTS MAY BE RECOVERED FROM RATEPAYERS AND APPROPRIATE
26 TREATMENT OF REVENUES FROM CLEAN HYDROGEN SALES;".
27
28 Strike "(3)(a)(I)" and substitute "(3)(a)(II)" on: Page 5, line 21; and Page
29 6, lines 16, 30, and 39.
30
31 Amendment No. 5, by Representative Vigil:
32
33 Amend the Finance Committee Report, dated April 27, 2023, page 3,
34 strike lines 40 and 41 and substitute "RATES, INCLUDING FOR HOURLY
35 MATCHING OF ELECTRICITY USED;".
36
37 Page 6, strike lines 17 through 25 and substitute:
38
39 "(A) THE MATCHING OF ELECTROLYZER ENERGY CONSUMPTION
40 WITH ELECTRICITY PRODUCTION ON AN HOURLY BASIS, IF THE
41 TECHNOLOGY IS AVAILABLE;
42 (B) IDENTIFYING THE APPLICABLE ENERGY SOURCE, IF THE
43 INVESTOR-OWNED UTILITY IS REPORTING THE ENERGY SOURCE AS
44 RESULTING IN ZERO EMISSIONS FOR CLEAN HYDROGEN PRODUCTION AND
45 DEMONSTRATING THAT THE ELECTRICITY USED TO PRODUCE CLEAN
46 HYDROGEN COMES FROM RENEWABLE ENERGY THAT WOULD OTHERWISE
47 HAVE BEEN CURTAILED OR NOT DELIVERED TO LOAD OR FROM NEW ZERO
48 CARBON GENERATION THAT BEGAN PRODUCTION NO MORE THAN
49 THIRTY-SIX MONTHS BEFORE THE START OF THE OPERATIONS OF THE
50 ELECTROLYZER; AND".
51
52 Page 8, strike lines 21 through 29.
53
54 Renumber succeeding subparagraphs accordingly.
55
1 Page 9, after line 1 insert:
2
3 "(c) IN REVIEWING, APPROVING, DENYING, OR AMENDING AN
4 APPLICATION PURSUANT TO THIS SECTION, IF THE CLEAN HYDROGEN
5 PROJECT IS PROPOSED TO BE SITED IN AN AREA THAT WOULD AFFECT A
6 DISPROPORTIONATELY IMPACTED COMMUNITY, THE COMMISSION SHALL
7 WEIGH THE APPLICANT'S CUMULATIVE IMPACTS ANALYSIS AND DETERMINE
8 WHETHER, ON BALANCE, THE CLEAN HYDROGEN PROJECT WILL HAVE A
9 POSITIVE EFFECT ON THE DISPROPORTIONATELY IMPACTED COMMUNITY.
10 ANY PROPOSAL THAT WILL HAVE NET NEGATIVE CUMULATIVE IMPACTS ON
11 ANY DISPROPORTIONATELY IMPACTED COMMUNITY MUST BE DENIED. THE
12 COMMISSION'S DETERMINATION MUST INCLUDE A PLAIN LANGUAGE
13 SUMMARY OF ITS DETERMINATION.".
14
15 Amendment No. 6, by Representative Weinberg:
16
17 Amend the Finance Committee Report, dated April 27, 2023, page 3, line
18 3, strike "AUGUST 1, 2023," and substitute "SEPTEMBER 1, 2023,".
19
20 Page 10, strike lines 7 through 11.
21
22 Amendment No. 7, by Representative Vigil:
23
24 Amend printed bill, page 8, strike line 13 and substitute "GUIDANCE,
25 SUBJECT TO THE RULES ADOPTED BY THE PUBLIC UTILITIES COMMISSION
26 PURSUANT TO SECTION 40-2-138 (3)(a)(I).".
27
28 Page 9, line 24, after "2026," insert "AND NOT BEFORE THE PUBLIC
138 29 UTILITIES COMMISSION ADOPTS RULES PURSUANT TO SECTION 40-2-
30 (3)(a)(I),".
31
32 Page 11, strike line 27.
33
34 Page 12, strike lines 1 through 5.
35
36 Renumber succeeding subsection accordingly.
37
38 As amended, ordered engrossed and placed on the Calendar for Third
39 Reading and Final Passage.
40