Amendments for SB22-138

Senate Journal, March 16
After consideration on the merits, the Committee recommends that SB22-138 be amended
as follows, and as so amended, be referred to the Committee on Finance with favorable
recommendation.
Amend printed bill, page 3, strike lines 5 through 23.

Page 4, strike lines 1 through 5 and substitute "rules - definition. (1) THE
COMMISSIONER SHALL ADOPT RULES REQUIRING THAT, BEGINNING IN 2023,
INSURERS ISSUED A CERTIFICATE OF AUTHORITY TO TRANSACT BUSINESS
PURSUANT TO PART 1 OF THIS ARTICLE 3 THAT REPORT MORE THAN ONE
HUNDRED MILLION DOLLARS ON THEIR ANNUAL NAIC SCHEDULE T FILING
PARTICIPATE IN AND COMPLETE THE NAIC'S ANNUAL "INSURER CLIMATE RISK
DISCLOSURE SURVEY". IF AN INSURER REPORTS LESS THAN ONE HUNDRED
MILLION DOLLARS ON ITS ANNUAL NAIC SCHEDULE T FILING, THE INSURER MAY
PARTICIPATE IN AND COMPLETE THE SURVEY VOLUNTARILY.
(2) AS USED IN THIS SECTION, "NAIC" MEANS THE NATIONAL
ASSOCIATION OF INSURANCE COMMISSIONERS, AN ORGANIZATION OF
INSURANCE REGULATORS FROM THE FIFTY STATES, THE DISTRICT OF COLUMBIA,
AND THE FOUR UNITED STATES TERRITORIES.".

Page 4, strike lines 14 and 15 and substitute:

"(b) AS USED IN THIS SECTION, "CLIMATE-RISK ASSESSMENT" MEANS A
DETERMINATION OF THE ECONOMIC AND BUSINESS RISKS THAT CLIMATE CHANGE
POSES TO AN INVESTMENT. SUCH RISKS INCLUDE TRANSPORTATION AND SUPPLY
DISRUPTIONS AND INFRASTRUCTURE DAMAGE ARISING FROM SEVERE WEATHER
EVENTS; INCREASED COSTS ASSOCIATED WITH COMPETITION FOR DEPLETING
NONRENEWABLE RESOURCES; AND REDUCED PRODUCTIVITY ARISING FROM
EXTREME TEMPERATURES, VECTOR-BORNE DISEASES, AND OTHER HEALTH
IMPACTS OF CLIMATE CHANGE.
SECTION 3. In Colorado Revised Statutes, 25-6.5-201, amend (2); and
add (3) as follows:
25-6.5-201. Definitions. As used in this part 2, unless the context
otherwise requires:
(2) (a) "Pollution control equipment" means any personal property,
including, but not limited to, equipment, 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; or
(II) Solar, thermal, or photovoltaic equipment; OR
(III) WASTEWATER THERMAL ENERGY EQUIPMENT.
(3) "WASTEWATER THERMAL ENERGY EQUIPMENT" MEANS EQUIPMENT
USED AS PART OF A SYSTEM THAT USES THERMAL ENERGY IN WASTEWATER TO
GENERATE ELECTRICITY, TO HEAT OR COOL A SPACE, OR FOR ANY OTHER USEFUL
THERMAL PURPOSE.".

Renumber succeeding sections accordingly.
Page 5, after line 7 insert:

"SECTION 4. In Colorado Revised Statutes, 25-7-105, amend
(1)(e)(XIII) introductory portion as follows:
25-7-105. Duties of commission - 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) (XIII) In implementing this subsection (1)(e), the commission shall
adopt rules to reduce statewide greenhouse gas emissions from the industrial
and manufacturing sector in the state by at least twenty percent by 2030 below
the 2015 baseline established pursuant to section 25-7-140 (2)(a)(II), taking into
account the factors set out in subsections (1)(e)(II) to (1)(e)(VI) of this section.
The rules must include protections for disproportionately impacted
communities and prioritize emission reductions that will reduce emissions of
co-pollutants that adversely affect disproportionately impacted communities, be
designed to accelerate near-term reductions, and secure meaningful emission
reductions from this sector to be realized beginning no later than September 30,
2024. THE COMMISSION SHALL ADOPT THE RULES PURSUANT TO THIS
SUBSECTION (1)(e)(XIII) ON OR BEFORE DECEMBER 31, 2022. The rules must:".

Renumber succeeding sections accordingly.

Page 5, strike lines 8 through 27.

Strike page 6.

Page 7, strike lines 1 through 3.

Renumber succeeding sections accordingly.

Page 7, strike line 14 and substitute "(9)(a); and add (9)(c) as follows:".

Page 7, line 16, strike "definition." and substitute "definitions.".

Page 7, line 17, after "law," insert "SUBJECT TO SUBSECTION (9)(c) OF THIS
SECTION AND ONLY AFTER THE GOVERNOR AND COMMISSION HAVE MADE AN
AFFIRMATIVE DETERMINATION THAT THE STATE HAS SUFFICIENT RESOURCES
NECESSARY TO ENSURE THE SAFE AND EFFECTIVE REGULATION OF THE
SEQUESTRATION OF GREENHOUSE GASES IN ACCORDANCE WITH FINDINGS FROM
THE COMMISSION'S STUDY CONDUCTED PURSUANT TO SUBSECTION (9)(b) OF
THIS SECTION,".

Page 7, strike lines 23 and 24 and substitute "TERM IS DEFINED IN SECTION
25-7-140 (6).
(c) (I) THE COMMISSION MAY SEEK CLASS VI INJECTION WELL PRIMACY
UNDER THE FEDERAL "CLEAN AIR ACT", 42 U.S.C. SEC. 7401 ET SEQ., AS
AMENDED, AFTER OBTAINING AND PUBLICLY DETERMINING THAT THE
COMMISSION HAS THE NECESSARY RESOURCES FOR THE APPLICATION OUTLINED
IN THE COMMISSION'S STUDY PERFORMED PURSUANT TO SUBSECTION (9)(b) OF
THIS SECTION.
(II) THE COMMISSION MAY ISSUE AND ENFORCE PERMITS AS NECESSARY
FOR THE PURPOSE SET FORTH IN THIS SUBSECTION (9)(c) AFTER THE
DETERMINATION SET FORTH IN SUBSECTION (9)(c)(I) OF THIS SECTION HAS BEEN
MADE AND THE REQUIREMENTS SET FORTH IN SUBSECTION (9)(a) OF THIS
SECTION HAVE BEEN SATISFIED. IN ISSUING AND ENFORCING PERMITS PURSUANT
TO THIS SUBSECTION (9)(c), THE COMMISSION SHALL ENSURE THAT THE
PERMITTING OF CLASS VI INJECTION WELLS DOES NOT ADVERSELY AND
DISPROPORTIONATELY AFFECT THE HEALTH AND WELL-BEING OF
DISPROPORTIONATELY IMPACTED COMMUNITIES.
(III) NOTWITHSTANDING THE PERMITTING OF A WELL BY THE
COMMISSION, THE OPERATOR IS FINANCIALLY RESPONSIBLE FOR ALL OUTCOMES,
AND THE COMMISSION SHALL REQUIRE THE OPERATOR TO PROVIDE ADEQUATE
BONDING TO ENSURE THAT THE OPERATOR IS FINANCIALLY ABLE TO MEET ALL
OBLIGATIONS RELATED TO THE WELL THROUGHOUT THE LIFE OF THE WELL. THE
COMMISSION SHALL ALSO ENSURE THAT THE OPERATOR CARRIES ADEQUATE
INSURANCE TO COVER ACCIDENTS AT AND ENVIRONMENTAL DAMAGE CAUSED
BY THE WELL.
(IV) AS USED IN THIS SUBSECTION (9), "DISPROPORTIONATELY
IMPACTED COMMUNITY" HAS THE MEANING SET FORTH IN SECTION 24-4-109
(2)(b)(II).".

Page 8, strike line 1 and substitute "opportunities in agriculture and land
management - definition - reporting - repeal. (1) (a) IN CONSULTATION".

Page 8, line 4, strike "DESIGNEE" and substitute "DESIGNEE, IN CONSULTATION
WITH AN INSTITUTION OF HIGHER EDUCATION WITH EXPERTISE IN CLIMATE
CHANGE MITIGATION, ADAPTATION BENEFITS, AND OTHER ENVIRONMENTAL
BENEFITS RELATED TO AGRICULTURAL RESEARCH,".

Page 8, line 6, after "SECTOR" insert "AND IN LAND MANAGEMENT".

Page 8, strike lines 10 through 17 and substitute "PRODUCERS AND IN LAND
MANAGEMENT. A CERTIFIED CARBON OFFSET PROGRAM AND CREDIT
INSTRUMENTS OFFERED MUST REFLECT REAL, ADDITIONAL, QUANTIFIABLE,
PERMANENT, VERIFIABLE, AND ENFORCEABLE REDUCTIONS IN GREENHOUSE GAS
EMISSIONS THAT ARE EQUIVALENT TO THE OFFSETS PROVIDED.
(b) CARBON OFFSETS DEVELOPED FOR AGRICULTURAL PRODUCERS IN
ACCORDANCE WITH THIS SECTION MAY BE:
(I) INCORPORATED INTO THE AIR QUALITY CONTROL COMMISSION'S
RULES, INCLUDING RULES ADOPTED UNDER SECTION 25-7-105 (1)(e) ,SUCH AS
RULES CONCERNING COORDINATION WITH OTHER JURISDICTIONS PURSUANT TO
THE AUTHORITY GRANTED IN, AND THE CONSIDERATIONS REQUIRED UNDER,
SECTION 25-7-105 (1)(e)(V); AND
(II) USED AS COMPLIANCE INSTRUMENTS BY A SOURCE REGULATED
UNDER ARTICLE 7 OF TITLE 25 WITH EMISSION REDUCTION OBLIGATIONS THAT
ENSURE THAT THE SOURCE'S OVERALL, ABSOLUTE EMISSIONS DECLINE
CONSISTENT WITH THE STATEWIDE GREENHOUSE GAS EMISSION REDUCTION
GOALS SET FORTH IN SECTION 25-7-102 (2)(g).
(c) (I) THE STUDY SHALL IDENTIFY POLICY MECHANISMS TO MITIGATE
THE IMPACTS THAT REGULATED SOURCES' USE OF CARBON OFFSETS HAVE ON
DISPROPORTIONATELY IMPACTED COMMUNITIES.
(II) AS USED IN THIS SUBSECTION (1)(c), "DISPROPORTIONATELY
IMPACTED COMMUNITY" HAS THE MEANING SET FORTH IN SECTION 24-4-109
(2)(b)(II).
(2) ON OR BEFORE OCTOBER 1, 2024, THE COMMISSIONER OR
COMMISSIONER'S DESIGNEE SHALL SUBMIT TO THE GENERAL ASSEMBLY A
REPORT SUMMARIZING THE STUDY, INCLUDING ANY LEGISLATIVE, REGULATORY,
OR OTHER RECOMMENDATIONS FOR DESIGNING AND IMPLEMENTING CARBON
REDUCTION AND SEQUESTRATION OPPORTUNITIES FOR THE AGRICULTURAL
SECTOR AND IN LAND MANAGEMENT IN THE STATE. THE COMMISSIONER OR
COMMISSIONER'S DESIGNEE SHALL SUBMIT TO THE GENERAL ASSEMBLY AN
UPDATE ON THE PROGRESS OF THE STUDY ON OR BEFORE OCTOBER 1, 2023.
(3) THIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2025.".

Page 8, line 21, strike "agrivoltaics." and substitute "agrivoltaics - repeal.".

Page 9, line 3, strike "USE" and substitute "USE, COSTS, AND BENEFITS".

Page 9, line 4, strike "businesses." and substitute "businesses OR PROVIDE
OTHER ENVIRONMENTAL, SOCIAL, OR ECONOMIC BENEFITS TO THE STATE.".

Page 9, after line 8 insert:

"(III) TO IMPLEMENT SUBSECTION (1)(a)(II) OF THIS SECTION, THE STATE
TREASURER SHALL TRANSFER ONE MILLION EIGHT HUNDRED THOUSAND
DOLLARS FROM THE GENERAL FUND TO THE AGRICULTURE VALUE-ADDED CASH
FUND CREATED IN SECTION 35-75-205:
(A) ON THE EFFECTIVE DATE OF THIS SUBSECTION (1)(a)(III); AND
(B) ON JULY 1, 2023, AND ON EACH JULY 1 THEREAFTER THROUGH JULY
1, 2027.
(IV) SUBSECTION (1)(a)(III) OF THIS SECTION AND THIS SUBSECTION
(1)(a)(IV) ARE REPEALED, EFFECTIVE JULY 1, 2028.".

Page 9, strike line 27.

Page 10, strike line 1 and substitute "MORE SOLAR ENERGY GENERATION
FACILITIES DIRECTLY INTEGRATED WITH AGRICULTURAL ACTIVITIES, INCLUDING
CROP".

Page 10, line 25, before "repeal." insert "rules -".

Page 13, strike lines 5 through 8 and substitute:

"(a) "SMALL OFF-ROAD ENGINE" MEANS A GASOLINE-POWERED ENGINE
OF TEN HORSEPOWER OR LESS THAT IS USED TO FUEL SMALL OFF-ROAD
EQUIPMENT.
(b) "SMALL OFF-ROAD EQUIPMENT" MEANS A LAWN MOWER, LEAF
BLOWER, TRIMMER, OR OTHER LAWN AND GARDEN EQUIPMENT, AS DETERMINED
BY RULE BY THE AIR QUALITY CONTROL COMMISSION CREATED IN SECTION
25-7-104 (1).".

Page 13, after line 11 insert:

"SECTION 12. Appropriation. For the 2022-23 state fiscal year,
$2,200,000 is appropriated to the department of agriculture. This appropriation
is from the general fund. To implement this act, the department may use this
appropriation for the purpose of conducting a study pursuant to section
35-1-116, C.R.S.".
SECTION 13. 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
(r) "WASTEWATER THERMAL ENERGY" MEANS A SYSTEM THAT USES
THERMAL ENERGY IN WASTEWATER TO GENERATE ELECTRICITY, TO HEAT OR
COOL A SPACE, OR FOR ANY OTHER USEFUL THERMAL PURPOSE.".

Renumber succeeding section accordingly.

Page 1, line 102, strike "COLORADO." and substitute "COLORADO, AND, IN
CONNECTION THEREWITH, MAKING AN APPROPRIATION.".


Trans-
portation &
Energy

Senate Journal, March 31
After consideration on the merits, the Committee recommends that SB22-138 be amended
as follows, and as so amended, be referred to the Committee on Appropriations with
favorable recommendation.
Amend the Transportation and Energy Committee Report, dated March 15,
2022, page 1, line 2, strike "5" and substitute "15".

Page 1 of the report, strike lines 7 through 10 and substitute "SCHEDULE T
FILING, OR SUCH OTHER THRESHOLD DOLLAR AMOUNT THAT THE NAIC
ESTABLISHES IN SUBSEQUENT YEARS, PARTICIPATE IN AND COMPLETE THE
NAIC'S ANNUAL "INSURER CLIMATE RISK DISCLOSURE SURVEY", OR SUCH
OTHER SURVEY OR REPORTING MECHANISM THAT THE NAIC REQUIRES IN
SUBSEQUENT YEARS. IF AN INSURER REPORTS LESS THAN ONE HUNDRED MILLION
DOLLARS ON ITS ANNUAL NAIC SCHEDULE T FILING, OR SUCH OTHER
THRESHOLD DOLLAR AMOUNT THAT THE NAIC ESTABLISHES IN SUBSEQUENT
YEARS, THE INSURER MAY PARTICIPATE IN AND COMPLETE".

Page 1 of the report, strike lines 15 through 25 and substitute "COLUMBIA, AND
THE FOUR UNITED STATES TERRITORIES.
SECTION 2. In Colorado Revised Statutes, amend 24-51-220 as
follows:
24-51-220. Reports - periodic reports to general assembly -
inclusion of climate risk assessment in annual stewardship report. (1) The
association shall provide SUBMIT a report to the general assembly on January
1, 2016, and every five 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) ON AND AFTER JANUARY 1, 2024, THE ASSOCIATION SHALL INCLUDE,
AS PART OF ITS ANNUAL INVESTMENT STEWARDSHIP REPORT THAT IT POSTS ON
ITS WEBSITE, A DESCRIPTION OF:
(a) THE ASSOCIATION'S PROCESS FOR IDENTIFYING CLIMATE
CHANGE-RELATED RISKS AND ASSESSING THE FINANCIAL IMPACT THAT THE
CLIMATE CHANGE-RELATED RISKS HAVE ON THE ASSOCIATION'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 ASSOCIATION'S 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 RISKS
THAT CLIMATE CHANGE POSES TO THE ASSOCIATION'S OPERATIONS; AND
(d) THE ASSOCIATION'S USE AND CONSIDERATION OF ANY
CLIMATE-RELATED REPORTING THAT THE FEDERAL SECURITIES AND EXCHANGE
COMMISSION REQUIRES.".

Page 2 of the report, after line 19 insert:

"Page 4, strike lines 25 and 26.

Reletter succeeding sub-subparagraphs accordingly.

Page 5, after line 1 insert:
"(C) A SIXTY-FIVE PERCENT REDUCTION IN STATEWIDE GREENHOUSE
GAS POLLUTION BY 2035;".

Reletter succeeding sub-subparagraphs accordingly.".

Page 2 of the report, strike lines 38 through 40 and substitute "this sector to be
realized beginning no later than September 30, 2024. ON OR BEFORE AUGUST
1, 2023, THE COMMISSION SHALL ADOPT RULES TO REDUCE GREENHOUSE GAS
EMISSIONS FROM, AT A MINIMUM, THE SOURCES WITHIN THE INDUSTRIAL AND
MANUFACTURING SECTOR THAT, PURSUANT TO COMMISSION RULES REQUIRING
GREENHOUSE GAS REPORTING, REPORTED DURING THE 2020 CALENDAR YEAR
GREENHOUSE GAS EMISSIONS IN AN AMOUNT GREATER THAN TWENTY-FIVE
THOUSAND METRIC TONS. The rules must:".

Page 3 of the report, strike line 18 and substitute "PRIMACY UNDER THE
FEDERAL "SAFE DRINKING WATER ACT", 42 U.S.C. SEC. 300f ET".

Page 3 of the report, strike lines 32 through 35.

Page 4 of the report, strike lines 1 through 4 and substitute:

"(III) (A) THE COMMISSION SHALL REQUIRE EACH OPERATOR OF A CLASS
VI INJECTION WELL TO PROVIDE ADEQUATE FINANCIAL ASSURANCE
DEMONSTRATING THAT THE OPERATOR IS FINANCIALLY CAPABLE OF FULFILLING
EVERY OBLIGATION IMPOSED ON THE OPERATOR UNDER THIS ARTICLE 60 AND
UNDER RULES THAT THE COMMISSION ADOPTS PURSUANT TO THIS ARTICLE 60.
(B) THE FINANCIAL ASSURANCE REQUIRED UNDER THIS SUBSECTION
(9)(c)(III) MUST COVER THE COST OF CORRECTIVE ACTION, INJECTION WELL
PLUGGING, POST-INJECTION SITE CARE, AND SITE CLOSURE, AS THOSE TERMS ARE
DEFINED IN 40 CFR 146.81, AND THE COST OF ANY EMERGENCY AND REMEDIAL
RESPONSE.
(C) THE COMMISSION SHALL ADOPT RULES REQUIRING THAT FINANCIAL
ASSURANCE COVER THE COST OF OBLIGATIONS THAT ARE IN ADDITION TO THE
OBLIGATIONS LISTED IN SUBSECTION (9)(c)(III)(B) OF THIS SECTION IF THE
ADDITIONAL OBLIGATIONS ARE REASONABLY ASSOCIATED WITH CLASS VI
INJECTION WELLS AND LOCATIONS.
(D) AN OPERATOR SHALL MAINTAIN THE FINANCIAL ASSURANCE
REQUIRED UNDER THIS SUBSECTION (9)(c)(III) OR UNDER ANY RULES ADOPTED
PURSUANT TO THIS SUBSECTION (9)(c)(III) UNTIL THE COMMISSION APPROVES
SITE CLOSURE, AS SPECIFIED IN RULES ADOPTED BY THE COMMISSION.
COMMISSION 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) MAY BE IN THE FORM OF A SURETY BOND, INSURANCE, OR ANY OTHER
INSTRUMENT THAT THE COMMISSION, BY RULE, DEEMS SATISFACTORY.".

Page 4 of the report, line 9, strike "repeal." and substitute "rules.".

Page 5 of the report, strike line 11 and substitute:
"(3) (a) UPON CONCLUSION OF THE STUDY, WITH REGARD TO ANY
RECOMMENDATIONS OF THE STUDY THAT DO NOT REQUIRE LEGISLATIVE
CHANGES, THE COMMISSIONER, IN CONSULTATION WITH THE COLORADO ENERGY
OFFICE AND THE AIR QUALITY CONTROL COMMISSION, MAY ADOPT RULES TO
IMPLEMENT THE RECOMMENDATIONS.
(b) IF THE COMMISSIONER ADOPTS RULES PURSUANT TO SUBSECTION
(3)(a) OF THIS SECTION, THE DEPARTMENT SHALL INCLUDE A SUMMARY OF THE
RULES AS PART OF THE DEPARTMENT'S REGULATORY AGENDA THAT IS FILED
WITH THE STAFF OF LEGISLATIVE COUNCIL AND THE SECRETARY OF STATE
PURSUANT TO SECTION 2-7-203 (4) AND THAT IS INCLUDED IN THE
DEPARTMENT'S "STATE MEASUREMENT FOR ACCOUNTABLE, RESPONSIVE, AND
TRANSPARENT (SMART) GOVERNMENT ACT" PRESENTATION REQUIRED UNDER
SECTION 2-7-203 THAT IMMEDIATELY PRECEDES THE ADOPTION OF THE
RULES.".".

Page 5 of the report, after line 31 insert:

"Page 11, strike lines 23 through 27.

Page 12, strike lines 1 through 5 and substitute "SUBSECTION (4) OF THIS
SECTION DETAILING THE SALES OF NEW, ELECTRIC-POWERED, SMALL OFF-ROAD
EQUIPMENT, AS REPORTED BY TAXPAYERS CLAIMING THE CREDIT AUTHORIZED
UNDER SUBSECTION (2) OF THIS SECTION.
(2) (a) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
1, 2023, BUT BEFORE JANUARY 1, 2030, A TAXPAYER IS ALLOWED A CREDIT
AGAINST THE TAX IMPOSED PURSUANT TO THIS ARTICLE 22 IN AN AMOUNT
EQUAL TO THIRTY PERCENT OF THE AGGREGATE PURCHASE PRICE FOR ALL
RETAIL SALES, AS THOSE TERMS ARE DEFINED IN SECTION 39-26-102, OF NEW,
ELECTRIC-POWERED, SMALL OFF-ROAD EQUIPMENT THAT THE TAXPAYER SOLD
IN THE STATE DURING THE TAX YEAR.
(b) IN ORDER TO QUALIFY FOR THE CREDIT ALLOWED UNDER THIS
SUBSECTION (2), THE TAXPAYER SHALL PROVIDE A PURCHASER OF A PIECE OF
NEW, ELECTRIC-POWERED, SMALL OFF-ROAD EQUIPMENT, A THIRTY PERCENT
DISCOUNT FROM THE PURCHASE PRICE OF THE PIECE OF NEW,
ELECTRIC-POWERED, SMALL OFF-ROAD EQUIPMENT AND SHALL SHOW THE
DISCOUNT AS A SEPARATE ITEM ON THE RECEIPT OR INVOICE PROVIDED TO THE
PURCHASER.
(c) TO DETERMINE WHETHER A TAXPAYER SOLD NEW,
ELECTRIC-POWERED, SMALL OFF-ROAD EQUIPMENT IN THIS STATE, THE RULES
OF SECTION 39-26-104 (3)(a) APPLY.".

Page 12, strike lines 23 through 26 and substitute "AUDITOR A REPORT
DETAILING THE SALES OF NEW, ELECTRIC-POWERED, SMALL OFF-ROAD
EQUIPMENT, AS REPORTED BY TAXPAYERS CLAIMING THE CREDIT AUTHORIZED
UNDER SUBSECTION (2) OF THIS SECTION. THE TAX CREDIT".

Page 13, lines 1 and 2, strike "BY TEN PERCENT" and substitute
"SIGNIFICANTLY".".

Page 6 of the report, strike lines 3 through 6 and substitute:
"(b) "SMALL OFF-ROAD EQUIPMENT" MEANS A LAWN MOWER, LEAF
BLOWER, OR TRIMMER.".".


Senate Journal, April 19
After consideration on the merits, the Committee recommends that SB22-138 be amended
as follows, and as so amended, be referred to the Committee of the Whole with favorable
recommendation.
Amend the Transportation and Energy Committee Report, dated March 15,
2022, page 6, strike lines 8 through 12 and lines 26 and 27.

Amend printed bill, page 13, before line 12 insert:

"SECTION 12. Appropriation. (1) For the 2022-23 state fiscal year,
$81,429 is appropriated to the department of natural resources for use by the oil
and gas conservation commission. This appropriation is from the oil and gas
conservation and environmental response fund created in section 34-60-122
(5)(a), C.R.S., and is based on an assumption that the commission will require
an additional 0.8 FTE. To implement this act, the commission may use this
appropriation for the underground injection program.
(2) For the 2022-23 state fiscal year, $145,789 is appropriated to the
department of public health and environment for use by the air pollution control
division. This appropriation is from the general fund. To implement this act, the
subdivision may use this appropriation as follows:
(a) $131,094 for personal services related to stationary sources, which
amount is based on an assumption that the division will require an additional
1.5 FTE; and
(b) $14,695 for operating expenses related to stationary sources.
(3) For the 2022-23 state fiscal year, $2,098,784 is appropriated to the
department of agriculture for use by the agricultural services division. This
appropriation is from the general fund and is based on an assumption that the
division will require an additional 0.8 FTE. To implement this act, the division
may use this appropriation for conservation services.".

Renumber succeeding sections accordingly.

Page 1, line 102, strike "COLORADO." and substitute "COLORADO, AND, IN
CONNECTION THEREWITH, MAKING AN APPROPRIATION.".


Appro-
priations



House Journal, May 5
41 SB22-138 be amended as follows, and as so amended, be referred to
42 the Committee on Appropriations with favorable
43 recommendation:
44
45 Amend reengrossed bill, page 6, strike line 14 and substitute "(1)(e)(IX)
46 and (1)(e)(XIII) introductory portion; and add (1)(e)(IX.3), (1)(e)(IX.5),
47 (1)(e)(IX.7), (1)(e)(XIV), and (1)(e)(XV) as follows:".
48
49 Page 6, line 16, strike "definitions." and substitute "definitions -
50 repeal.".
51
52 Page 6, strike line 20 and substitute:
53
54
1 "(e) (IX) (A) In addressing greenhouse gas emissions from an
2 energy-intensive, trade-exposed manufacturing source, the commission
3 shall require the source to execute an energy and emission control audit,
4 according to criteria established by the commission, of the source's
5 operations every five years through at least 2035. A qualified third party,
6 as determined by the commission, shall conduct the audit and submit the
7 results to the commission.
8 (B) If the commission determines that the source currently
9 employs best available emission control technologies for greenhouse gas
10 emissions and best available energy efficiency practices, the commission
11 shall not impose a direct nonadministrative cost on the source directly
12 associated with at least ninety-five percent of the source's greenhouse gas
13 emissions attributable to manufacturing a good in this state for a period
14 of five years, if the source's emissions are not greater than the emissions
15 associated with use of the best available emission control technologies as
16 determined by the commission.
17 (C) The commission shall consider how program design as
18 relevant to those sources can further mitigate the cost of reducing
19 emissions for such manufacturers while providing an incentive to
20 improve efficiency and reduce emissions. Specifically, the commission
21 shall design the program as relevant to those sources such that as the
22 sources are subject to emission reduction requirements, those sources will
23 have, under the program, a pathway to obtain equivalent lower-cost
24 emission reductions at other regulated sources to satisfy their compliance
25 obligations.
26 (B) (IX.3) As used in this subsection (1)(e)(IX) OF THIS SECTION,
27 "energy-intensive, trade-exposed manufacturing source" means: an
28 (A) ANY entity, INCLUDING AN entity that principally manufactures
29 iron, steel, aluminum, pulp, paper, or cement, and WHICH ENTITIES SHALL
30 BE DEEMED PRESUMPTIVELY ENERGY-INTENSIVE, TRADE-EXPOSED
31 MANUFACTURING SOURCES; OR
32 (B) AN ENTITY that is engaged in the manufacture of goods
33 through one or more emissions-intensive, trade-exposed processes, as
34 determined by the commission UPON A PETITION BY SUCH ENTITY, USING
35 THE DEFINITIONS SET FORTH IN SUBSECTION (1)(e)(IX.5) OF THIS SECTION.
36 (IX.5) AS USED IN THIS SUBSECTION (1)(e):
37 (A) "EMISSIONS-INTENSIVE" MEANS THAT AN ENTITY REPORTS
38 DIRECT GREENHOUSE GAS EMISSIONS EQUAL TO OR GREATER THAN
39 TWENTY-FIVE THOUSAND METRIC TONS OF CARBON DIOXIDE EQUIVALENT
40 PER YEAR UNDER FEDERAL REGULATIONS OR STATE RULES.
41 (B) "TRADE-EXPOSED" MEANS THAT AN ENTITY THAT
42 MANUFACTURES GOODS IN THE INDUSTRIAL AND MANUFACTURING SECTOR
43 INCURS COSTS TO COMPLY WITH STATE RULES TO WHICH OUT-OF-STATE
44 COMPETITORS ARE NOT SUBJECT OR THAT SUCH ENTITY WOULD OTHERWISE
45 BE DISADVANTAGED COMPETITIVELY IF REQUIRED TO COMPLY WITH THE
46 RULES THAT THE COMMISSION ADOPTS PURSUANT TO SUBSECTION
47 (1)(e)(XIII) OF THIS SECTION.
48 (IX.7) ON OR BEFORE AUGUST 1, 2023, THE COMMISSION SHALL
49 MODIFY ANY RULES ADOPTED PURSUANT TO SUBSECTION (1)(e)(IX) OF
50 THIS SECTION TO REFLECT THE DEFINITIONS SET FORTH IN SUBSECTION
51 (1)(e)(IX.5) OF THIS SECTION.
52 (XIII) In implementing this subsection (1)(e), the commission".
53
54 Page 7, line 7, before "GREENHOUSE" insert "DIRECT FACILITY".
55
1 Page 7, strike line 11 and substitute:
2
3 "(XIV) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT:
4 (A) PURSUANT TO SUBSECTION (1)(e)(XIII) OF THIS SECTION, THE
5 COMMISSION IS REQUIRED TO ADOPT RULES ON OR BEFORE AUGUST 1,
6 2023, TO REDUCE GREENHOUSE GAS EMISSIONS FROM SOURCES WITHIN THE
7 INDUSTRIAL AND MANUFACTURING SECTOR THAT REPORTED, PURSUANT
8 TO PART A OF 5 CCR 1001-26, REFERRED TO IN THIS SUBSECTION
9 (1)(e)(XIV) AS "REGULATION NUMBER 22", DIRECT FACILITY GREENHOUSE
10 GAS EMISSIONS OF GREATER THAN TWENTY-FIVE THOUSAND METRIC TONS
11 FROM CALENDAR YEAR 2020;
12 (B) THE LIMITATION SET FORTH IN SUBSECTION (1)(e)(XIII) OF
13 THIS SECTION TO REPORT "DIRECT FACILITY" GREENHOUSE GAS EMISSIONS
14 IS INTENDED TO EXCLUDE FROM THE TWENTY-FIVE THOUSAND METRIC TON
15 TRIGGER THE INDIRECT GREENHOUSE GAS EMISSIONS REPORTED UNDER
16 REGULATION NUMBER 22, SUCH AS INDIRECT EMISSIONS REPORTED BY
17 MIDSTREAM NATURAL GAS LIQUID FRACTIONATORS PURSUANT TO SUBPART
18 NN, SUPPLIERS OF NATURAL GAS LIQUIDS, OF 40 CFR PART 98 REGARDING
19 MANDATORY GREENHOUSE GAS REPORTING, INCLUDING EMISSIONS
20 RESULTING FROM THE COMBUSTION OR RELEASE OF PRODUCTS BEING
21 SUPPLIED BY NATURAL GAS LIQUID FRACTIONATOR SUPPLIERS;
22 (C) THROUGH REGULATION NUMBER 22, THE COMMISSION
23 ADOPTED A SEPARATE RULE IN DECEMBER 2021 REGARDING, AMONG
24 OTHER THINGS, THE CONTROL OF INDUSTRIAL AND MANUFACTURING
25 DIRECT EMISSIONS FROM FUEL COMBUSTION EQUIPMENT UTILIZED BY
26 MIDSTREAM NATURAL GAS FRACTIONATORS;
27 (D) THE LIMITATION DESCRIBED IN SUBSECTION (1)(e)(XIV)(B) OF
28 THIS SECTION IS NOT INTENDED TO ALTER THE EXISTING STATUTORY
29 DEFINITION OF "INDUSTRIAL AND MANUFACTURING SECTOR" SET FORTH IN
30 SUBSECTION (1)(e)(XI)(B.5) OF THIS SECTION, WHICH DEFINITION
31 INCLUDES EMISSIONS FROM BOTH ENERGY COMBUSTION AND ENERGY USE
32 AND INDUSTRIAL PROCESSES BY SOURCES IN THE INDUSTRIAL AND
33 MANUFACTURING SECTOR; AND
34 (E) THE PHRASE "AT A MINIMUM" IN SUBSECTION (1)(e)(XIII) OF
35 THIS SECTION IS INTENDED TO CLARIFY THAT THE COMMISSION HAS A
36 MANDATORY DUTY TO REGULATE CERTAIN INDUSTRIAL AND
37 MANUFACTURING SOURCES IN THE 2023 RULE-MAKING REQUIRED UNDER
38 SUBSECTION (1)(e)(XIII) OF THIS SECTION AND THAT THE COMMISSION
39 RETAINS THE DISCRETION TO INCLUDE OTHER INDUSTRIAL AND
40 MANUFACTURING SOURCES IN THAT RULE-MAKING.
41 (XV) THIS SUBSECTION (1)(e)(XV) AND SUBSECTION (1)(e)(XIV)
42 OF THIS SECTION ARE REPEALED, EFFECTIVE JULY 1, 2025.".
43
44 Page 16, line 3, strike "2030," and substitute "2027,".
45
46 Page 17, line 26, strike "2039." and substitute "2036.".
47
48 Page 17, after line 26 insert:
49
50 "SECTION 13. In Colorado Revised Statutes, 40-2-127, amend
51 (5)(b)(II) as follows:
52
1 40-2-127. Community energy funds - community solar
2 gardens - definitions - rules - legislative declaration - repeal.
3 (5) Purchases of the output from community solar gardens.
4 (b) (II) (A) The purchase of the output of a community solar garden by
5 a qualifying retail utility shall MUST take the form of a net metering credit
6 against the qualifying retail utility's electric bill to each community solar
7 garden subscriber at the premises set forth in the subscriber's subscription.
8 (B) FOR A SUBSCRIBER ORGANIZATION THAT DIRECTS THE
9 QUALIFYING RETAIL UTILITY TO PROVIDE THE SUBSCRIBER
10 ORGANIZATION'S SUBSCRIBERS WITH A BILL CREDIT THAT CHANGES
11 ANNUALLY, the net metering credit shall be calculated by multiplying the
12 subscriber's share of the electricity production from the community solar
13 garden by the qualifying retail utility's total aggregate retail rate as
14 charged to the subscriber, minus a reasonable charge as determined by the
15 commission to cover the utility's costs of delivering to the subscriber's
16 premises the electricity generated by the community solar garden,
17 integrating the solar generation with the utility's system, and
18 administering the community solar garden's contracts and net metering
19 credits. The commission shall ensure that this charge does not reflect
20 costs that are already recovered by the utility from the subscriber through
21 other charges. If, and to the extent that, a subscriber's net metering credit
22 exceeds the subscriber's electric bill in any billing period, the net metering
23 credit shall be carried forward and applied against future bills. The
24 qualifying retail utility and the owner of the community solar garden shall
25 agree on whether the purchase of the renewable energy credits from
26 subscribers will be accomplished through a credit on each subscriber's
27 electricity bill or by a payment to the owner of the community solar
28 garden.
29 (C) FOR A SUBSCRIBER ORGANIZATION THAT DIRECTS THE
30 QUALIFYING RETAIL UTILITY TO PROVIDE THE SUBSCRIBER
31 ORGANIZATION'S SUBSCRIBERS WITH A FIXED BILL CREDIT, THE NET
32 METERING CREDIT SHALL BE CALCULATED BY MULTIPLYING THE
33 SUBSCRIBER'S SHARE OF THE ELECTRICITY PRODUCTION FROM THE
34 COMMUNITY SOLAR GARDEN BY THE QUALIFYING RETAIL UTILITY'S TOTAL
35 AGGREGATE RETAIL RATE AS CHARGED TO THE SUBSCRIBER AT THE TIME
36 THE SUBSCRIBER ORGANIZATION APPLIES FOR, OR BIDS CAPACITY INTO, A
37 UTILITY COMMUNITY SOLAR GARDEN PROGRAM, MINUS A REASONABLE
38 CHARGE, AS DETERMINED BY THE COMMISSION, AT THE TIME THE
39 SUBSCRIBER ORGANIZATION APPLIES FOR, OR BIDS CAPACITY INTO, A
40 UTILITY COMMUNITY SOLAR PROGRAM, TO COVER THE UTILITY'S COSTS OF
41 DELIVERING TO THE SUBSCRIBER'S PREMISES THE ELECTRICITY GENERATED
42 BY THE COMMUNITY SOLAR GARDEN, INTEGRATING THE SOLAR
43 GENERATION WITH THE UTILITY'S SYSTEM, AND ADMINISTERING THE
44 COMMUNITY SOLAR GARDEN'S CONTRACTS AND NET METERING CREDITS.
45 THE COMMISSION SHALL ENSURE THAT THIS CHARGE DOES NOT REFLECT
46 COSTS THAT ARE ALREADY RECOVERED BY THE UTILITY FROM THE
47 SUBSCRIBER THROUGH OTHER CHARGES. FOR COMMUNITY SOLAR
48 GARDENS ELIGIBLE FOR A FIXED BILL CREDIT, AND SOLELY FOR THE
49 PURPOSE OF APPLYING THE BILL CREDIT TO A SUBSCRIBER'S BILL, THE BILL
50 CREDIT SHALL NOT BE APPLIED TOWARD RATE RIDER CHARGES THAT
51 PROMOTE CLEAN ENERGY TECHNOLOGIES INCLUDING BENEFICIAL
52 ELECTRIFICATION, PROVIDE LOW-INCOME BILL ASSISTANCE, OR PROVIDE
53 OTHER PUBLIC BENEFITS AS DETERMINED BY THE COMMISSION UNLESS
54 SUCH RIDERS ARE INCLUDED IN THE REASONABLE CHARGE. IF, AND TO THE
55 EXTENT THAT, A SUBSCRIBER'S NET METERING CREDIT EXCEEDS THE
1 SUBSCRIBER'S ELECTRIC BILL IN ANY BILLING PERIOD, THE NET METERING
2 CREDIT SHALL BE CARRIED FORWARD AND APPLIED AGAINST FUTURE BILLS.
3 THE QUALIFYING RETAIL UTILITY AND THE OWNER OF THE COMMUNITY
4 SOLAR GARDEN SHALL AGREE ON WHETHER THE PURCHASE OF THE
5 RENEWABLE ENERGY CREDITS FROM SUBSCRIBERS WILL BE ACCOMPLISHED
6 THROUGH A CREDIT ON EACH SUBSCRIBER'S ELECTRICITY BILL OR BY A
7 PAYMENT TO THE OWNER OF THE COMMUNITY SOLAR GARDEN. BY MARCH
8 1, 2023, THE COMMISSION SHALL ADOPT RULES TO IMPLEMENT THE FIXED
9 BILL CREDIT, WHICH RULES MUST CONSIDER THE CHANGE OF VALUE TO
10 COMMUNITY SOLAR GARDEN CUSTOMERS OF THE FIXED BILL CREDIT OVER
11 TIME THROUGH RATE ADJUSTMENTS OR OTHER MECHANISMS.".
12
13 Renumber succeeding sections accordingly.
14
15

House Journal, May 9
45 SB22-138 be amended as follows, and as so amended, be referred to
46 the Committee of the Whole with favorable
47 recommendation:
48
49 Amend the Finance Committee Report, dated May 5, 2022, page 1, strike
50 lines 1 through 3 and substitute:
51
52 "Amend reengrossed bill, page 6, strike line 14 and substitute
53 "(1)(e)(XIII) introductory portion; and add (1)(e)(XIV) and (1)(e)(XV)
54 as follows:".
55
1 Page 1 of the report, strike lines 6 through 25.
2
3 Page 2 of the report, strike lines 1 through 33.
4
5 Page 5 of the report, after line 25 insert:
6
7 "Page 19, line 6, after "services." insert "Any money appropriated in this
8 section not expended prior to July 1, 2023, is further appropriated to the
9 division for the 2023-24 state fiscal year for the same purpose.".".
10
11