Bill Tracker

HB 1010, Task Force to Study High Altitude Water Storage, is a bill recommended by the interim Water Resources and Agriculture Review Committee.  It examines the feasibility of high altitude water storage in Colorado.  With climate change and population growth in the state challenging communities, more communities are looking at alternatives.  The proposal for a Task Force describes findings and recommendations to be considered.  The Task Force would consist of 7 members, including the State Engineers office, 2 state elected officials, a representative from the ski industry, a member from whitewater rafting industry, an engineer with expertise in high altitude hydrology and a representative from the US Forest Service. 

The League has a long history of supporting balanced use of water and working with local and regional representatives in planning and executing plans.  The task force would complete the study by June 1,2024.  It has been assigned to House Agriculture Committee.

Water Resources and Agriculture Review Committee. The bill
creates a task force to study the feasibility of implementing water storage
in the form of snow in high-altitude areas of the state (task force). The
task force must submit a report to the water resources and agriculture
review committee on or before June 1, 2024, which report:
  • Describes the feasibility of implementing high-altitude
water storage in Colorado;
  • Describes findings and recommendations regarding issues
considered by the task force; and
  • Describes any legislative proposals associated with the
implementation of high-altitude water storage in Colorado,
including identification of any state agencies that will be
responsible for implementing legislative directives and
identification of funding sources.
The task force is repealed, effective December 1, 2024.

• January 23, 2023: House Agriculture, Water & Natural Resources Committee Report
• January 23, 2023: House Agriculture, Water & Natural Resources Committee Report

We support the study and pilot program to identify another feasible approach to controlling greenhouse gas emissions from spent and orphan oil and gas wells. 

Laboratory testing within the study will determine the ability of biochar to absorb or adsorb methane and other chemicals found in a plugged oil and gas wells and the program will set standards for monitoring emissions before and after well plugging.  Last year we supported SB22-198 Orphaned Oil & Gas Wells Enterprise that created additional funding  in the Department of Natural Resources for plugging, reclaiming, and remediation of oil and gas wells that have been abandoned by the operators.   

Another potential benefit of developing the biochar production industry is the use of waste beetle-kill pine as source material and perhaps in mitigation of certain wildfire dangers.

The League believes that an interrelated approach to combating climate change including through air pollution controls and is necessary to protect public health and defend the overall integrity of the global ecosystem

The bill creates the biochar in oil and gas well plugging working
advisory group (work group) in the oil and gas conservation commission
(commission). The work group's purpose is to make recommendations for
the development of a pilot program to study the use of biochar in the
plugging of oil and gas wells.
No later than September 1, 2023, the work group must submit a
draft report to the commission detailing its recommendations for the pilot
program. After coordinating with the commission to develop a final
report, no later than February 1, 2024, the work group must present the
report to the transportation and energy committee of the senate and the
energy and environment committee of the house of representatives.

• May 05, 2023: Senate Appropriations Committee Report
• May 01, 2023: Senate Transportation & Energy Committee Report
• April 21, 2023: House Appropriations Committee Report
• February 16, 2023: House Energy & Environment Committee Report
• February 16, 2023: House Energy & Environment Committee Report

The bill requires, on or before Dec. 1, 2023, the office of future of work in the Department of Labor and Employment to contract, through competitive process, with a third party to do a study that evaluates the skill transferability of workers in the oil and gas industry and in occupations in Colorado's economy. facing disruption due to automation.

The study must:

Evaluate the skill transferability of workers in the oil and gas industry and the occupations in Colorado that are facing the most disruption due to automation;

Explore training availability, skills needed, and transition strategies;

Provide recommendations for programs and policies to prepare the workforce for these transitions.

On or before December 1, 2024 the office must submit a report of the findings to the governor and to the Business, Labor, and Technology Committee of the House of Representatives.

The study results would help the oil and gas industry transition workers by identifying their immediate needs, training availability, and transition strategies in the short and medium term, in "emerging industries" in consultation with other western states. From the information gathered the office will develop policy and incentive proposals for transition programs. It will determine where there is more work disruption. It also will determine what skill trainings are available and recommend funding.

Background:

This bill was heard on Feb. 2. The sponsors amended the bill with more specified "emerging industry" identification. The amendment adds carbon capture sequestration as a "new and emerging" industry, which is a false and unacceptable solution for lowering emissions as was decided for SB 23-016 because it allows continuation of the oil and gas industry to produce more oil, to sell, burn and pollute air, water and land through enhanced oil recovery that has been its predominant use. The hazard of continuing to do this is not one that should be considered to solve the climate crisis. 

Proposed LWVCO Amendments:

The sponsors consider CCS as "clean." LWVCO disagrees and would like to see this reference removed from the bill. 

In addition, employment in the hydrogen field mentioned needs to be identified as "green hydrogen".  An Earthjustice report states, " ...less than 1 % of hydrogen today is produced using renewable energy. "Green hydrogen" is made by using 100% renewable electricity to split hydrogen from water molecules. For now, this is the only way to produce hydrogen without emitting climate or air pollution..." We now know that gray and blue hydrogen are not safe solutions due to the process of production at this point in time.

Finally, in regards to evaluating skill transferability in the oil and gas industry the word "related" occupations should be added to the bill, since office, managerial jobs, tech and secretarial jobs are also related to the oil and gas automation sphere.

Current Status:

The bill has no Senate sponsors. It passed out of committee and was sent to Appropriations. The League supports science-based, safe, equitable and just solutions for climate change based on the LWVUS 2020 Resolution on the Climate Emergency.

References: Re: Hydrogen:  Aug., 2021 pdf by: Sasan Saadat and Sara Gersen, Reclaiming Hydrogen for a Renewable Future, Distinguishing Oil and Gas Industry Spin From Zero-Emission Solutions, Earthjustice's Right to Zero Campaign

The bill requires the office of future of work (office) to contract
with a third party to study workforce transitions in Colorado's economy.
The workforce transitions study (study) must:
  • Evaluate the skill transferability of workers in the oil and
gas industry and in occupations in Colorado that are facing
the most disruption due to automation;
  • Explore training availability, skills needed, and transition
strategies; and
  • Provide recommendations for programs and policies to
prepare the workforce for these transitions.
On or before December 1, 2024, the office is required to submit a
report of the study's research and findings to the governor and to the
business, labor, and technology committee of the senate and the business
affairs and labor committee of the house of representatives.

• April 28, 2023: Senate Appropriations Committee Report
• April 13, 2023: Senate Business, Labor, & Technology Committee Report
• March 10, 2023: House Appropriations Committee Report
• March 10, 2023: House Appropriations Committee Report
• February 02, 2023: House Business Affairs & Labor Committee Report
• February 02, 2023: House Business Affairs & Labor Committee Report

The purpose of the bill is to enhances one of three programs created in last year’s original bill that provided grants for free transit services during ozone season defined as June 1 through August 31. 

The new bill allows for an alternate time period for “ozone season” in certain regions; allows grant money not spent to be used in a subsequent year; allows grant money to be used to market the free service available during ozone seasons; expands the free services; and supports full costs of at least 30 days free transit instead of an 85% of costs limit. 

The League supported the previous bill SB22-180 Programs To Reduce Ozone Through Increased Transit. 

League position on Air Quality:  LWVCO supports measures to reduce air pollutants such as ozone.  Reduce vehicular pollution including … development of more energy-efficient transportation systems. 

According to the Regional Air Quality Control Commission On-Road Vehicles are the second largest source of summertime ozone after oil & gas operations.  The original and this bill are intended to increase ridership on mass transit as alternative to personal vehicle use. Transportation planning organizations and regional transportation districts are eligible for the grant.  In addition to free services, the grants can be used to increase frequency of service and for reasonable marketing to increase ridership.

Section 1 of the bill increases the flexibility of the ozone season
transit grant program by:
  • Allowing an eligible transit agency that operates in an area
in which ozone levels are typically highest during a
different period than June 1 to August 31 of a calendar year
to designate a different period of the calendar year for its
ozone season;
  • Allowing a grant recipient to retain any grant money that it
does not spend in the year in which it is received for use in
a subsequent year;
  • Clarifying that a grant recipient may use grant money for
reasonable marketing expenses incurred to raise awareness
of free service and increase ridership;
  • Clarifying that an eligible transit agency may use grant
money to expand free services or free routes or increase the
frequency of service on routes for which free service is
already offered; and
  • Allowing the regional transportation district to use grant
money to cover the full costs, rather than up to 80% of the
costs, of providing at least 30 days of free transit on all
services that it offers.
On and after September 1, 2023, section 3 requires the governing
body of the transportation planning organization for each transportation
planning region to include at least one voting representative of a transit
agency that provides transit service in the transportation planning region.
The representative must be appointed by the transit agency or, if multiple
transit agencies provide service in the transportation planning region, by
agreement of the transit agencies. Section 2 defines the term
transportation planning organization as used in section 3.

• February 27, 2023: Senate Transportation & Energy Committee Report
• February 27, 2023: Senate Transportation & Energy Committee Report
• February 02, 2023: House Energy & Environment Committee Report
• February 02, 2023: House Energy & Environment Committee Report

Current law establishes water and energy efficiency standards
(standards) for certain appliances and fixtures sold in Colorado. Sections
1 through 7 of the bill expand the appliances and fixtures that are subject
to the standards and update the standards.
Specifically, section 4 updates standards for certain appliances and
fixtures that are sold in Colorado on and after certain dates, including:
  • Certain faucets and urinals;
  • Certain lamps;
  • Commercial hot food holding cabinets;
  • Portable electric spas;
  • Residential ventilating fans; and
  • Spray sprinkler bodies.
Section 4 also creates new standards for certain appliances and
other fixtures that are sold in Colorado on and after January 1, 2024,
including:
  • Air purifiers;
  • Commercial ovens;
  • Electric storage water heaters;
  • Electric vehicle supply equipment;
  • Gas fireplaces;
  • Irrigation controllers;
  • Tub spout diverters and showerhead tub spout diverter
combinations; and
  • Certain residential windows, residential doors, and
residential skylights.
Section 4 also removes standards for air compressors, general
service lamps, and uninterruptible power supplies.
Section 5 requires the executive director of the department of
public health and environment (executive director) to promulgate rules on
or before January 1, 2026, and every 5 years thereafter:
  • Adopting a more recent version of any standard; and
  • Establishing standards for appliances and other devices that
are not subject to the standards if certain conditions are
met.
Section 6 exempts manufacturers of products subject to the
standards from having to demonstrate that a product complies with the
law if the product appears in the state appliance standards database
maintained by the Northeast Energy Efficiency Partnerships, or a
successor organization. Section 6 also requires the executive director to
conduct periodic, unannounced inspections of major distributors or
retailers, including online retailers, of new products in order to determine
compliance with the standards.
Under current law, any person who sells or offers to sell in the
state any new consumer product that is required to meet an efficiency
standard but that the person knows does not meet that standard is subject
to a civil penalty of not more than $2,000 for each violation, which
amount is credited to the general fund. Section 7 credits any penalties
imposed to the energy fund created in the Colorado energy office rather
than to the general fund and specifies that each transaction or online
for-sale product listing constitutes a separate violation.
Section 8 establishes the Clean Lighting Act to phase out the
sale of general-purpose fluorescent light bulbs that contain mercury. With
certain exceptions:
  • On and after January 1, 2024, a person shall not
manufacture, distribute, sell, or offer for sale in Colorado
any new compact fluorescent lamp with a screw- or
bayonet-type base; and
  • On and after January 1, 2025, a person shall not
manufacture, distribute, sell, or offer for sale in Colorado
any linear fluorescent lamp or any compact fluorescent
lamp with a pin-type base.
Section 9 establishes standards for heating and water heating
appliances. With certain exceptions, on and after January 1, 2025, a
person shall not manufacture, distribute, sell, offer for sale, lease, or offer
for lease in Colorado any new water heater, boiler, or fan-type central
furnace unless the emissions of the product do not exceed certain limits
on emissions. On or before January 1, 2029, the air quality control
commission in the department of public health and environment must
promulgate rules lowering the emission limits. Section 9 also requires
manufacturers to use certain testing protocols, display certain information
on each product, and demonstrate compliance through one of various
described means.
Sections 8 and 9 both require the executive director to conduct
periodic, unannounced inspections of major distributors or retailers,
including online retailers, of new products to determine compliance and
to report violations to the attorney general. If the attorney general has
probable cause to believe that a violation occurred, the attorney general
may bring a civil action on behalf of the state to seek the imposition of
civil penalties, and any civil penalties are to be deposited in the energy
fund.

• April 28, 2023: Senate Appropriations Committee Report
• April 24, 2023: Senate Transportation & Energy Committee Report
• April 10, 2023: House Appropriations Committee Report
• April 10, 2023: House Appropriations Committee Report
• March 09, 2023: House Energy & Environment Committee Report
• March 09, 2023: House Energy & Environment Committee Report

The bill is submitted by Rep. Story because she became interested in this issue when there was a 2017 Firestone home explosion and fire where 2 people were killed and 1 injured while working on the home gas system. An investigation found that a former owned pipeline had leaked gas that traveled to that home. Currently, old gasline pipes are being replaced in neighborhood homes and commercial buildings.

The bill requires the PUC's gas pipeline safety rules, by March 1, 2024 to require:

--the inspection of gas meters and service regulators every 36 months with recorded documentation of each inspection; and

--the installation or re-installation of service regulators so that any vents associated with the service regulators are at least 12 inches above ground level or 12 inches above any anticipated precipitation, whichever is higher.

The bill requires the PUC to create rules by March 1, 2024 to establish a process for determining whether an owner or operator of a natural gas distribution system or a customer is responsible for the maintenance and repairs of the portion of the service line, if installed on or after August 14, 1995, and after March 1, 2024 that extends from the gas meter to the customer's primary residential or commercial structure that is serviced with natural gas (customer-owned service line).

The bill also requires the PUC to create rules, by March 1, 2024 requiring an owner or operator that distributes gas to a customer-owned service line installed on or after March 1, 2024 to:

--provide written notice to the customer, within 90 days after the installation of the customer-owned service line, informing the customer whether the owner or operator or customer is responsible for the maintenance and repairs of the customer-owned service line; and

--obtain a signed copy of the written notice from the customer

An owner or operator that fails to obtain a signed copy of the written notice must repair and maintain the customer-owned service line for the lifetime of the customer-owned service line.

This bill will create safety rules on gas line inspections and guidelines for replacement lines. It will make clear who is responsible for gas line maintenance and replacements by rules set.

The LWVUS position on Resource Management:

-special attention to maintaining and improving the environmental quality of urban communities

-consideration of environmental public health, social and economic impacts of proposed plans and actions

-protection of private property rights commensurate with overall consideration of public health and environmental protections.

The bill requires the public utilities commission's (commission)
gas pipeline safety rules, on or before March 1, 2024, to address
requirements for:
  • The inspection of gas meters and service regulators no
more often than every 36 months and the recorded
documentation of each inspection; and
  • The installation or reinstallation of service regulators so
that any vents associated with the service regulators are at
least 12 inches above ground level or 12 inches above any
anticipated precipitation, whichever is higher.
The bill requires the commission to promulgate rules, on or before
March 1, 2024, to establish a process for determining whether an owner
or operator of a natural gas distribution system (owner or operator) or a
customer is responsible for the maintenance and repairs of the portion of
the service line, if installed on or after August 14, 1995, and before
March 1, 2024, that extends from the gas meter to the customer's primary
residential or commercial structure that is serviced with natural gas
(customer-owned service line).
The bill also requires the commission to promulgate rules, on or
before March 1, 2024, requiring an owner or operator that distributes gas
to a customer-owned service line installed on or after March 1, 2024, to:
  • Provide written notice to the customer, within 90 days after
the installation of the customer-owned service line,
informing the customer whether the owner or operator or
the customer is responsible for the maintenance and repairs
of the customer-owned service line; and
  • Obtain a signed copy of the written notice from the
customer.
An owner or operator that fails to obtain a signed copy of the
written notice must repair and maintain the customer-owned service line
for the lifetime of the customer-owned service line.

• April 24, 2023: Senate Transportation & Energy Committee Report
• March 29, 2023: House Energy & Environment Committee Report
• March 29, 2023: House Energy & Environment Committee Report

This very short bill wants CHPHE and Water Quality Control Division (WQCD) to use quality assured data to determine total maximum daily load (TMDL) that are discharged into state water without exceeding water quality stands.  In the state of Colorado any stretch of water that is impaired has a TMDL permit that is written as to how this impairment is to be cleaned up.  It usually knows the source, has data collected and tracts this data.  A permit is written by the WQCD for the specific TMDL. 

The bill is redefining what a TMDL is which could upset any TMDL written within the state.  The present definition is used by the WQCD to write the permits for the TMDL.  Rules for TMDLS are approved by the Water Quality Control Commission (WQCC).  This bill is changing the language in determining TMDLs.  There are rules set by the WQCC on how water quality details collected, analyzed and assessed.  This bill would change that.  

This is a repeat bill from about 5 years ago when Mesa County didn’t like the TMDL that had been set for a segment and wanted to do their own thing.  The sponsor, who hasn’t answered my email of inquiry, is from Mesa and not totally up to speed on what a TMDL is.  If this bill should pass is would open up to every entity that doesn’t like a TMDL that is written to change the rules.  LWVCO likes strong state controls and rules so there is a balanced playing field.

After reviewing amendments made in committee, LWVCO supports this bill. 

The bill requires the division of administration in the department
of public health and environment, on and after January 1, 2024, to use
quality-assured data to determine the maximum amount of a pollutant that
can be discharged daily into state waters without exceeding applicable
water quality standards.

• March 23, 2023: House Energy & Environment Committee Report
• March 23, 2023: House Energy & Environment Committee Report

Objectives: Assure availability and use of EV charging installed in multi-family rental properties, in common interest properties, and parking on public property regulated by municipal and county governments.  Installations and use within the law may not be prohibited except for bona fide safety concerns. 

Multi-family residential buildings must consider parking spaces as within the definitions of a rental unit and landlords may not prohibit the use of EV charging systems that are installed, with permission, at a tenant’s own expense. 

Similar prohibitions apply in common interest properties governed by homeowners associations boards.  There can be no prohibits for use of EV charging systems installed at an owner’s expense for the use of self or others.  

State electrical board shall require compliance with model electric ready and solar ready code that require multifamily buildings to be EV capable and EV ready by Jan 2024 and may not prohibit installations except for a bona fide safety concern.

Second major part has to do with municipal and county governments regarding parking on public property.  There are minimum requirements for public parking spaces.  Bill redefines how to count parking spaces in a way that does not discourage installation of EV charging, and thereby discouraging the public from driving EV because of uncertainty about available charging.  New law will prohibit local govts from prohibiting installation or use of charging unless a bona fide safety concern.

A final section clears the way for DOT to collaborate on installing charging along interstates as soon as federal law allows.   

League position. 

The League believes that climate change is a serious threat facing our nation and that an interrelated approach to combating climate change, including air pollution controls.

In Colorado, the transportation sector is a major source of GHG pollution.

The League supports measures to reduce vehicular pollution, including changes in engine design and fuel types.  

LWVCO supports this bill as enabling part of the solution for reducing global-warming GHG pollution and reducing other air pollution that results from burning of fossil-fuels for transportation. 

LWVCO Supports this bill.

Section 2 of the bill requires the state electrical board (board) to
adopt rules requiring compliance, starting January 1, 2024, with the
provisions of the model electric ready and solar ready code that require
multifamily buildings to be electric vehicle (EV) capable and EV ready
and to have EV supply equipment installed. The board is precluded from
adopting rules that prohibit the installation or use of EV charging stations
unless the rules address a bona fide safety concern.
Current law prohibits a landlord from unreasonably prohibiting the
installation of EV charging equipment in the leased premises. This
prohibition applies only to residential rental property. Section 3 broadens
this prohibition to apply to an assigned or a deeded parking space for the
leased premises, to parking spaces accessible to both the tenant and other
tenants, and to commercial rental property. Section 3 also requires a
landlord to allow an EV or a plug-in hybrid vehicle to park on the
premises.
Current law prohibits, when a person owns a unit in a common
interest community, such as a condominium, the association that manages
the community (association) from unreasonably prohibiting the
installation of EV charging equipment in the unit. Section 4 broadens this
prohibition to apply to assigned or deeded parking spaces for the unit or
parking spaces accessible to both the unit owner and other unit owners.
Section 4 also requires a common interest community to allow an EV or
a plug-in hybrid vehicle to park at the premises.
Current law grants a local government the ability to regulate
parking, and this regulation includes requiring that buildings meet
minimum parking standards. Sections 5, 6, and 7 require the local
government, when counting minimum parking spaces, to count:
  • Any parking space that is served by an EV charging station
as at least one standard automobile parking space; and
  • Any van-accessible parking space that is wheelchair
accessible and served by an EV charging station as at least
2 standard automobile parking spaces.
Sections 8 and 9 prohibit local governments from adopting an
ordinance or a resolution that prohibits the installation or use of EV
charging stations unless the ordinance or resolution addresses a bona fide
safety concern.
Section 10 exempts, until 2030, EV charging systems from the
levy and collection of property tax.
Federal law prohibits the construction of automotive service
stations or other commercial establishments for serving motor vehicle
users along interstate highway rights-of-way, including rest areas. Due to
this prohibition, the state cannot construct EV charging systems along
interstate highway rights-of-way, including rest areas, in the state.
Section 11 specifies that, when the federal law no longer prohibits the
construction of EV charging systems along interstate highway
rights-of-way, the department of transportation may collaborate with
public or private entities to develop projects for the construction of EV
charging systems along interstate highway rights-of-way.

• April 19, 2023: Senate Transportation & Energy Committee Report
• March 29, 2023: House Energy & Environment Committee Report
• March 29, 2023: House Energy & Environment Committee Report

The bill creates a grant program in the Colorado Energy Office for local governments to implement permitting and inspection software.  The software itself is free, but smaller local governments may require assistance in adopting the software such as for training, installation, third-party consulting, equipment, and maintenance.  Software implementation is expected to decrease project costs and to expedite permitting.

Our state climate action plan for reducing greenhouse gas emissions will require adding approximately 10 gigawatts of energy from renewable energy by 2040.  Residential solar installation can be a part of reaching that goal.

The CEO will determine how a local jurisdiction must demonstrate expected costs in grant applications; awarded grants will be from $40,000 to $100,000 based on population size less than about 200,000. CEO will require reporting the number of permits issued, solar power system capacity, and characteristics of each system (solar energy and/or energy storage).  The total appropriation will be $1 milliion. 

The League supports predominant reliance on renewable energy resources and we support action by appropriate levels of government to encourage the use of renewable resources and energy conservation through funding for research and development. 

The bill creates the streamlined solar permitting and inspection
grant program (program). The program will grant money to local
governments to implement free automated permitting and inspection
software. To support the implementation of free automated permitting and
inspection software by local governments, the state treasurer will transfer
one million dollars from the general fund to the program in fiscal year
2022-23. The money is continuously appropriated.
The bill requires the Colorado energy office (office) to administer
the program by developing procedures to award money to applicants,
establishing a process for applicants to apply for money, requiring
applicants to demonstrate expected costs to implement the automated
permitting and inspection software, and beginning to approve applicants
no later than June 30, 2024. A grantee must implement the free automated
permitting software within 180 days of receipt of grant money. Grantees
are required to report to the office the implementation status of the free
automated permitting software one year after being granted the money
and each year thereafter for 4 years. The office is required to report to the
house of representatives energy and environment committee, the senate
transportation committee, and the joint budget committee the progress of
the grant program yearly beginning on January 1, 2025, and continuing
until the repeal of the program on July 1, 2034.

• April 24, 2023: Senate Appropriations Committee Report
• April 19, 2023: Senate Transportation & Energy Committee Report
• March 30, 2023: House Appropriations Committee Report
• March 30, 2023: House Appropriations Committee Report
• March 16, 2023: House Energy & Environment Committee Report
• March 16, 2023: House Energy & Environment Committee Report

Colorado is now experiencing severe drought affecting agriculture and wildfires since the year 2000 according to the Univ. of CO. Water Institute. The Colorado River flow has declined by 20% since 2000 that means curtailment for junior and senior water rights. Increases in oil and gas production adds to increase use by 17.9 to 24 million gallons of water per o/g well in the Denver Julesburg basin. Most fracking well water is not recycled or reused and lowers fresh water use. Oil and gas demands exceed water yield that is needed for other projects to meet municipal and industrial demands. The required reporting on fresh water use and of recycled or reused water for fracking will provide information to determine how best to increase use of the produced water and prohibit use of fresh water to address water shortages, drought, climate change and population growth.

The bill requires oil and gas operators, before January 31, 2024, to annually report information to the Colorado Oil and Gas Conservation Commission regarding their use of water entering, used and exiting at each of the oil and gas locations. It also requires the COGCC to create rules requiring:

-When issuing a new or renewed oil and gas permit on or after June 1, 2024, as a condition to permitting, that each operator use a decreasing percentage of fresh water and a corresponding increasing percentage of recycled or reused water in the operations

-Each oil and gas operator, on or before January 1, 2024 must report monthly about the daily vehicle miles traveled for trucks hauling water to, within, or from the operator's oil and gas operations in the state.

Using the information gathered by the commission, will require it to:

-Include the information as part of the COGCC annual reporting of cumulative impacts of oil and gas operations:

-Report to the Division of Administration in the Colorado Department of Public Health and Environment on per-incident basis, any indication of technologically enhanced naturally occurring radioactive material (TENORM) or PFAS chemicals present in produced water; and

-On a quarterly basis, submit a cumulative report to the CDPHE and the Department of Transportation.

Although there is an urgent need to phase out fossil fuel production as quickly as possible, our fresh water supply is threatened by overuse and drought. This small step in keeping track of the oil and gas industry's water use activity, with less trade secrets, may work in regulating their consumption sooner.

League US Position: Promote an environment beneficial to life through the protection and wise management of natural resources in the public interest. Promote the management of natural resources as inter-related parts of life-supporting ecosystems. Promote resource conservation, stewardship and long-range planning with the responsibility for managing natural resources shared by all levels of government

LWVCO Supports this bill.

The bill requires an oil and gas operator in the state (operator), on
or before January 31, 2024, and at least annually thereafter, to report
information to the Colorado oil and gas conservation commission
(commission) regarding the operator's use of water entering, utilized at,
or exiting each of the operator's oil and gas locations.
The bill also requires the commission to adopt rules requiring that:
  • When issuing an operator a new or renewed oil and gas
permit on or after June 1, 2024, the commission include as
a condition of the permit a requirement that the operator
use a decreasing percentage of fresh water and a
corresponding increasing percentage of recycled or reused
water in the operator's oil and gas operations; and
  • Each oil and gas operator, on and after January 1, 2024,
report on a monthly basis to the commission about the daily
vehicle miles traveled for any trucks hauling water to,
within, or from the operator's oil and gas operations in the
state.
From the information reported to the commission under the bill,
the commission is required to:
  • Include the information as part of the commission's annual
reporting on cumulative impacts of oil and gas operations;
  • Report to the division of administration (division) in the
department of public health and environment, on a
per-incident basis, any indication of technologically
enhanced naturally occurring radioactive material or PFAS
chemicals present in produced water; and
  • On a quarterly basis, submit a cumulative report to the
division and the department of transportation on reported
vehicle miles traveled and public roads traveled.

• May 03, 2023: Senate Appropriations Committee Report
• May 01, 2023: Senate Transportation & Energy Committee Report
• April 18, 2023: House Appropriations Committee Report
• March 23, 2023: House Energy & Environment Committee Report
• March 23, 2023: House Energy & Environment Committee Report

LWVCO has taken an Amend stance on this bill and requests the following changes:

The LWVCO recognizes the immediate need for action on climate change by reducing emissions in Colorado. It understands that studies of solutions are necessary to determine the best reliable and affordable energy technologies and appreciates you bringing this study bill forward.

The League however, is recommending the following additions to the bill to clarify/define a term and add two other items to make it a stronger bill. We recommend the following additions:

* The words "clean hydrogen" needs a definition.

* "The effect on disproportionately impacted communities" needs to be added to the studies.

* "The measurements of potential environmental impacts, both local and global, of each advanced energy solution" needs to be added to the studies. 

The League considers social and environmental justice as a basis for position decisions.  Justice, Diversity, Equity and Inclusion are important human rights to be primarily considered. 

The bill requires the director of the Colorado energy office or the
director's designee (director) to conduct studies to assess the use of
advanced energy solutions in rural Colorado. One study must consider
ways to assist northwestern and west end of Montrose county Colorado
as it transitions to producing advanced firm dispatchable energy
resources. The other study must consider the potential for the
development of new energy resources in southeastern Colorado. The bill
specifies information that the director is required to consider in both
studies.
On or before July 1, 2025, the director is required to submit the
director's findings and conclusions of both studies to the legislative
committees with jurisdiction over energy matters.

• May 02, 2023: Senate Appropriations Committee Report
• May 01, 2023: Senate Transportation & Energy Committee Report
• April 18, 2023: House Appropriations Committee Report
• March 29, 2023: House Energy & Environment Committee Report
• March 29, 2023: House Energy & Environment Committee Report

Summary:  A General Assembly Declaration sets the bill's purpose: Gas utilities are required to present different approaches for cost recovery of investments in thermal enery service by requiring the PUC to consider customer costs with each approach to minimize long-term costs, provide fair wage jobs, remove legal barriers, allow pilot programs, and the use of current infrastructure to avoid stranded assets.

Thermal energy is piped, non-combustible fluids used for adding or removing heat from buildings for efficient building temperature control and hot water, including space heating and cooling and refrigeration. Piped water through the ground, wastewater facilities reaching desired fluid temperatures must not cause combustion of additional fossil fuel, nor involve engine-driven generation.

The bill expands HB 22- 1381 Geothermal Grant Program. It authorizes the Colorado Energy Office to award 3 types of grants. One is for retrofitting existing buildings for installation of a geothermal system for heating and cooling under the single-structure geothermal grants. Also grants may be awarded for multi-building projects, and thermal energy network buildings that supply heating, cooling and water heating systems. In addition, grants may be awarded for generating geothermal energy through direct air capture technology under the geothermal electricity generation grant that the office administers. A gas utility that is regulated by the Public Utility Commission and that serves 90,000 retail customers is required to file with the PUC a Clean Heat Plan to reduce CO2 and methane emissions. For applications for thermal energy study grants costing $1 million, the Energy Office may award 50%. If the study includes Hydrogen Production or Direct Air Capture 60% may be awarded. The bill requires a gas utility that offers a thermal energy network to apply separately to the PUC from its Clean Heat Plan. It adds thermal energy as an eligible clean heat resource for helping to meet clean heat targets.

By Sept. 1, 2024 a large gas utility serving at least 500,000 customers must submit one or more pilot programs to provide thermal energy including a disproportionately impacted community, a mountain community or a utility service area that is capacity-constrained. Fair wages and apprenticship guidelines for projects set must be followed.

By January 1, 2025 the PUC must determine if rule changes are needed for thermal energy use. The bill repeals the requirement for geothermal suppliers to obtain operating permits from the PUC. The bill relies on Federal funding with the Dept. of Regulatory Agencies (DORA) expenditures being $423,313.

The new Direct Air Capture technology, hydrogen, methane use,(p. 7 Lines 20-21) and potential geothermal risks for grants resulted in amendment L.001 that sets health and safety guardrails to include in these studies, such as:  resources safety, environmental impacts, not cause GHG/environmental pollution and co-pollutants, neighboring impacts as well as economic feasibility, and cost efficiency.

League supports predominant reliance on renewable resources; action to encourage the use of renewable resources and energy conservation.

LWVCO Supports this bill.

Section 2 of the bill authorizes the Colorado energy office to
award grants for retrofitting existing buildings for installation of a
geothermal system for heating and cooling under the single-structure
geothermal grant that the office administers and for generating
geothermal energy through direct air capture technology under the
geothermal electricity generation grant that the office administers.
Section 3 establishes labor standards for thermal energy public
projects that a state agency or a state institution of higher education
procures.
In Colorado, a gas distribution utility providing gas service to more
than 90,000 retail customers is required to file with the public utilities
commission (commission) a clean heat plan, which is a plan
demonstrating how the utility will use clean heat resources to meet clean
heat targets for reducing carbon dioxide and methane emissions. Section
4 adds thermal energy as an eligible clean heat resource for helping to
meet clean heat targets.
Section 5 authorizes a gas utility that is regulated by the
commission to apply for review and approval of the use of thermal energy
networks in the gas utility's service area. A gas utility that is regulated by
the commission and that serves more than 500,000 customers is required
to propose pilot thermal energy network projects for the commission's
review and approval. The commission shall initiate a proceeding on or
before January 1, 2025, to determine if rule-making or legislative changes
are needed to facilitate the development of thermal energy in the state.
Section 6 repeals the Geothermal Heat Suppliers Act, which act
requires geothermal heat suppliers to obtain operating permits from the
commission.

• May 02, 2023: Senate Appropriations Committee Report
• May 01, 2023: Senate Transportation & Energy Committee Report
• April 18, 2023: House Appropriations Committee Report
• March 29, 2023: House Energy & Environment Committee Report
• March 29, 2023: House Energy & Environment Committee Report

Section 2 of the bill extends the innovative motor vehicles income
tax credit for the purchase or lease of electric motor vehicles and plug-in
hybrid electric motor vehicles that weigh 8,500 pounds or less through tax
year 2028 and adjusts the amount of the credit that may be claimed,
including with certain allowances for additional credit amounts for
vehicles purchased or leased at a location that allows the credit to be
assigned and is assigned to a motor vehicle dealer or financing entity and
for vehicles that have a manufacturer's suggested retail price below
$30,000.
However, the credit cannot be claimed for vans, sport utility
vehicles, and pickup trucks that have a manufacturer's suggested retail
price of $80,000 or more or for any other vehicle that has a
manufacturer's suggested retail price of $55,000 or more. Additionally,
if for any one of the state fiscal years 2025-26, 2026-27, or 2027-28, the
state is not projected to exceed the state fiscal year spending limit
imposed by section 20 of article X of the state constitution by 5% then for
any income tax year commencing in the calendar year that begins in that
fiscal year, the amount of the credit is reduced by 50%, and if the amount
of the reduced credit is at or below $500, then no credit is allowed for
such a tax year.
Section 3 extends the income tax credit for the purchase or lease
of an innovative truck through tax year 2028 and adjusts the amount of
the credit that may be claimed. However, for light-duty trucks, if for any
one of the state fiscal years 2025-26, 2026-27, or 2027-28, the state is not
projected to exceed the state fiscal year spending limit imposed by section
20 of article X of the state constitution by 5% then for any income tax
year commencing in the calendar year that begins in that fiscal year, the
amount of the credit is reduced by 50%, and if the amount of the reduced
credit is at or below $500, then no credit is allowed for such a tax year.
Additionally, under current law, the innovative motor vehicles tax
credit and the innovative trucks tax credit may be assigned by a purchaser
to the entity that finances the purchase or lease of the vehicle. Sections 1
and 2 expand the purchaser's ability to assign the credits to a motor
vehicle dealer in addition to a financing entity. For income tax years
commencing on or after January 1, 2024, sections 1 and 2 also allow a tax
exempt person or political subdivision of the state to claim or assign the
tax credit.
Section 4 terminates an existing heat pump tax credit so that it is
allowed only for income tax years beginning on and after January 1, 2023,
but before January 1, 2024.
Section 5 creates a refundable income tax credit allowable in tax
years commencing on or after January 1, 2024, but before January 1,
2033, for the owner of an industrial facility that undertakes a industrial
study (study) or puts greenhouse gas emissions reduction improvements
(improvements) into service. The credit is administered by the Colorado
energy office (office). The amount of credit that can be claimed for an
industrial study is 30% of the costs paid for completing the study up to $1
million.
The amount of credit that can be claimed for improvements is 30%
of the capital costs paid by the owner, not including the cost for design;
except that for certain improvements that have the potential to
significantly reduce greenhouse gas emissions but are not yet
commercially available, the office may approve a higher percentage to be
claimed of up to 50%. Owners must apply semi-annually for the credit to
the office and the office reviews applications and awards a reservation of
credits based on a merit-based review. Upon completion of a study or
upon putting the improvements into service, the office issues the owner
a tax credit certificate to claim the credit in the amount reserved to the
owner. The availability of the credit is subject to an aggregate cap each
application period. If the aggregate maximum amount is not claimed in
a tax year, the aggregate maximum amount in the next income tax year is
increased by an amount equal to the excess amount.
Section 6 creates a refundable tax credit for an expenditure an
eligible taxpayer makes in connection with a geothermal energy project,
which is a project in the state that is intended to evaluate and develop a
geothermal resource for the purpose of electricity production. The office
is required to approve geothermal energy projects that can receive a
qualified expenditure made by an eligible taxpayer. The office sets the
amount of credit an eligible taxpayer may receive and reserves the
amount of credit for the income tax year in which the eligible taxpayer
anticipates making the expenditure. Subject to specified limits on the
maximum amount of credits that the office may approve and that an
eligible taxpayer may receive, the office issues a tax credit certificate in
the reserved amount of tax credit after an eligible taxpayer submits a cost
certification of the qualified expenditure.
Section 7 creates a refundable tax credit for income tax years
beginning on or after January 1, 2024, but before January 1, 2033, that is
administered by the office and is available to a person subject to income
tax or a person or political subdivision of the state exempt from income
tax that produces geothermal electricity for sale or for the person or
political subdivision's own use. The credit amount is equal to $0.003 per
kilowatt hour of geothermal electricity that is produced in the state in the
tax year, up to a maximum amount of $1 million.
Section 8 creates a new refundable income tax credit for heat
pump technology for income tax years commencing on or after January
1, 2024, but before January 1, 2033. The office is responsible for
maintaining a list of eligible taxpayers who meet certain industry criteria
and who are allowed the credit for the installation of heat pump
technology or a thermal energy network if the eligible taxpayer provides
a discount from the amount charged for installation, unless the eligible
taxpayer installs their own heat pump technology or thermal energy
network. The amount of the tax credit is calculated based on the
applicable percentage, set annually by the office, of a flat dollar amount
which depends on the type of heat pump technology installed and the year
the credit is claimed. The calculation of the amount of allowable credit
may be modified depending on whether the heat pump technology is
installed at a multifamily property, at a nonresidential building, or for a
thermal energy network. However, for heat pump technology that is
installed in an existing residential building or nonresidential building, if
for any one of the state fiscal years 2025-26 through 2032-33, the state is
not projected to exceed the state fiscal year spending limit imposed by
section 20 of article X of the state constitution by 5% then for any income
tax year commencing in the calendar year that begins in that fiscal year,
the amount of the credit is reduced by 50%, and if the amount of the
reduced credit is at or below $250, then no credit is allowed for such a tax
year.
Section 9 creates a refundable income tax credit for income tax
years commencing on or after January 1, 2024, but before January 1,
2033, for the sale of new qualifying electric bicycles in the state. The
credit is allowed in the amount of $800 to a qualified retailer who sells a
qualifying electric bicycle to a resident of the state and offers a discount
equal to the lesser of $700 or the purchase price. However, if for any one
of the state fiscal years 2025-26 through 2032-33, the state is not
projected to exceed the state fiscal year spending limit imposed by section
20 of article X of the state constitution by 5% then for any income tax
year commencing in the calendar year that begins in that fiscal year, the
amount of the credit is reduced by 50%.
Section 10 creates a refundable income tax credit for income tax
years commencing on or after January 1, 2024, but before January 1,
2033, for a percentage of the actual costs incurred to construct,
reconstruct, or erect a sustainable aviation fuel production facility in the
state. The credit can be claimed by an aviation business, a sustainable
aviation fuel producer, or an airport for the income tax year in which the
production facility is put in service and is subject to aggregate caps for
each income tax year for which the credit can be claimed. Additionally,
the credit is subject to recapture if the sustainable aviation fuel production
of a facility comprises less than 60% of the total fuel production of the
facility in any of the 5 taxable years immediately following the taxable
year in which the facility was placed in service.
Section 11 creates a mechanism to allow for advance payment of
income tax credits to a motor vehicle dealer or financing entity that has
been assigned the innovative motor vehicle tax credit or innovative truck
tax credit, or to a qualified retailer for the electric bicycle tax credit.
Section 12 creates a sales and use tax exemption for a fleet vehicle
that is a heavy-duty truck or a medium-duty truck. For tax years
commencing on or after January 1, 2024, but before January 1, 2028, the
exemption amount is equal to 50% of the purchase price of the vehicle,
and for tax years commencing on or after January 1, 2028, but before
January 1, 2033, the exemption amount is equal to 60% of the purchase
price of the vehicle.
Section 13 terminates an existing sales and use tax exemption for
heat pump systems and heat pump water heaters used in commercial or
residential buildings so that it is allowed only for income tax years
beginning on or after January 1, 2023, but before January 1, 2024.
Section 14 creates a sales and use tax exemption for all sales to an
eligible taxpayer of heat pump technology and equipment necessary for
the proper functioning of a thermal energy network and for the storage
and use of the same for income tax years commencing on or after January
1, 2024, but before January 1, 2033.
Section 15 reduces the severance tax credit allowed for oil and gas
production. Under current law, the amount of credit allowed is calculated
by applying rate of 87.5% of all ad valorem taxes assessed during the
taxable year for accrual basis taxpayers or paid during the taxable year by
cash basis taxpayers upon oil and gas, oil and gas leaseholds and
leasehold interests, and oil and gas royalties and royalty interests. The bill
reduces the rate to 75% for 2024 and 2025. For tax years beginning on
and after January 1, 2026, the bill modifies the calculation for the oil and
gas tax that otherwise would have been implemented in tax year 2025 by
making a parallel downward adjustment so that the amount of credit is
derived by multiplying 65.625% of the gross income of the well by the
mill levy fixed in the prior calendar year.
Section 16 requires that for state fiscal years 2024-25 through
2032-33, the revenue collected that is equal to the amount attributable to
the decreased amount of severance tax credit allowed for oil and gas
production is credited to the general fund; except that on July 1, 2025, the
revenue must first be credited to the cash funds used for state fiscal years
2023-24 and 2024-25 by the office for the administration of the tax
credits created by the bill and the remaining money is credited to the state
general fund. Additionally, the stakeholder group that was required to
convene pursuant to HB22-1391 is required to additionally consider
long-term changes for the severance tax credit for oil and gas production.
Section 17 creates a partial, temporary, and specific ownership tax
exemption for new class A or class B personal property that is a fleet
vehicle and meets the definition of a category 7 truck for purposes of the
innovative truck tax credit.
Section 18 and section 19 allow for cities and counties to opt out
of the sales and use tax exemption created for sales of category 7 fleet
vehicles that are heavy-duty trucks or medium-duty electric trucks, sales
to an eligible taxpayer of heat pump technology and equipment necessary
for a proper functioning of a thermal energy network, and for the storage
and use of the same for income tax years commencing on or after January
1, 2024, but before January 1, 2033.
Section 20 gives the office the authority to expend money from the
industrial and manufacturing operations clean air grant program cash fund
for state fiscal years 2023-24 and 2024-25 to administer and implement
the industrial clean energy tax credit that is created in section 5.
Section 21 gives the office the authority to expend money from the
geothermal energy grant fund for state fiscal years 2023-24 and 2024-25
to administer and implement the tax credit for expenditure made in
connection with a geothermal energy project that is created in section 6
and the geothermal electricity generation production tax credit that is
created in section 7.
Section 22 gives the office the authority to expend money from the
community access to electric bicycles cash fund for state fiscal years
2023-24 and 2024-25 to administer and implement the electric bicycle tax
credit created in section 9 for state fiscal years 2023-24 and 2024-25.
Section 23 gives the office the authority to expend money from the
electrifying school buses grant program cash fund for state fiscal years
2023-24 and 2024-25 to administer and implement the changes made to
the innovative motor vehicles and innovative trucks tax credits set forth
in sections 2 and 3.

• April 28, 2023: Senate Appropriations Committee Report
• April 27, 2023: Senate Finance Committee Report
• April 21, 2023: House Appropriations Committee Report
• April 13, 2023: House Finance Committee Report
• April 06, 2023: House Energy & Environment Committee Report
• April 06, 2023: House Energy & Environment Committee Report

The bill defines "clean hydrogen" in two ways:

 Hydrogen is clean when derived from a clean energy resource that uses water as the source of hydrogen. 

Hydrogen is also defined as "clean" when it is produced through a process that results in lifecycle GHG emissions rates that are less than 1.5 kilograms of carbon dioxide equivelent per 1 kilogram of hydrogen, as set forth in federal law. 

The bill directs the Public Utility Commission to establish a stand-alone application, review, and approval process for investor owned utility projects that result in clean hydrogen production. For a PUC project approval, an investor owned utility must apply and demonstrate that the project collaborates with the a state or federal agency. Applications must include:

* Best practices by the investor-owned utility to reduce air emissions and environmental impacts, conduct leak detection monitoring, and increase public safety,

* If the investor-owned utility's clean hydrogen facility is in a disproportionately impacted community, a cumulative impact analysis must evaluate, past, present and future impacts,

* An assessment of the annual volume of water used in electrolysis of water to produce clean hydrogen for the project.

The bill also requires the commission to allow an investor-owned utility to sell clean hydrogen to third parties under a clean hydrogen tariff.

For income tax years beginning January 1, 2024, but before January 1, 2033, the bill creates a state income tax credit in specified amounts per kilogram of clean hydrogen used for industrial operations, heavy duty-vehicle operations, or for aviation. Any taxpayer seeking a tax credit must receive a tax credit certificate from the Colorado Dept of Energy.

Analysis:

The production of hydrogen without the use of carbon dioxide is called Green Hydrogen. It is produced by the electrolysis of water, using renewable power and is safe to produce. However, there is a growing scarcity of water in Colorado. The only established way to make green hydrogen is by using currently scarce sources of renewable energy available. At this point in time, green hydrogen production using electrolysis of water by using renewable energy will not be the prime choice for hydrogen production as defined in this bill.

Blue hydrogen is when natural gas is split into hydrogen and carbon dioxide, then the CO2 is captured. It is dangerous to keep creating, piping and using CO2 that is a planet warming GHG, corrosive and hazardous. Today hydrogen production relies on fossil fuels. The fossil fuel industry wishes to increase reliance on hydrogen from fossil fuels.  The continued use and production of CO2 for hydrogen production needs to be ended for emission reductions. 

A Princeton University study for NOAA points out that fugitive hydrogen gas can increase and prolong the levels of atmospheric methane. (Matteo B. Bertagni et al, Risk of the Hydrogen economy for atmospheric methane.) The use of methane for hydrogen production is also problematic.

Source: Reclaiming Hydrogen for a Renewable Future, Distinguishing Oil and Gas Industry Spin from Zero-Emissions Solutions, Earthjustice: Right to Zero.

AMENDMENT: The bill proposes two ways of hydrogen production. The only safe way to produce "clean hydrogen" is through the electrolysis of water using renewable energy sources. The League asks that the bill be amended to exclude the use of captured carbon dioxide to create hydrogen.

Section 2 of the bill defines clean hydrogen (clean hydrogen) as
hydrogen that is:
  • Derived from a clean energy resource that uses water as the
source of hydrogen; or
  • Produced through a process that results in lifecycle
greenhouse gas emissions rates that are less than 1.5
kilograms of carbon dioxide equivalent per kilogram of
hydrogen, as set forth in applicable federal law.
Section 2 also directs the public utilities commission (commission)
to establish a stand-alone application, review, and approval process for
investor-owned utility projects that result in the production of clean
hydrogen (clean hydrogen project). For a clean hydrogen project to be
approved by the commission, an investor-owned utility must submit an
application to the commission demonstrating that the clean hydrogen
project involves collaboration between the investor-owned utility and a
state or federal agency. Any application for a clean hydrogen project must
include:
  • Best practices utilized by the investor-owned utility to
reduce air emissions and environmental impacts, conduct
leak detection monitoring, and increase public safety;
  • If the investor-owned utility's clean hydrogen production
facilities are located in a disproportionately impacted
community, a cumulative impact analysis that evaluates
past, present, and future impacts; and
  • An assessment of the annual volume of water used in
electrolysis of water to produce clean hydrogen for the
clean hydrogen project.
Section 2 also requires the commission to allow an investor-owned
utility to sell clean hydrogen to third parties under a clean hydrogen tariff.
For income tax years commencing on or after January 1, 2024, but
before January 1, 2033, section 3 creates a state income tax credit in
specified amounts per kilogram of clean hydrogen used for industrial
operations, for operating a heavy-duty vehicle, or for aviation (tax credit).
Any taxpayer seeking to claim the tax credit must first apply for and
receive a tax credit certificate from the Colorado energy office.

• May 05, 2023: Senate Appropriations Committee Report
• May 04, 2023: Senate Finance Committee Report
• April 29, 2023: House Appropriations Committee Report
• April 27, 2023: House Finance Committee Report
• April 20, 2023: House Energy & Environment Committee Report

The Denver-Metro and North Front Range Area have failed to meet National Ambient Air Quality Standards for several pollutants, including ozone. Permitting in Colorado has continued without regard to air impacts, especially those considered "minor" source emitters like oil and gas operations with minor modifications to existing facilities. Minor sources were previously fast tracked with virtually no analysis or modeling despite an inability to meet federally required standards. This bill changes the process to mandate that all permitting comply with Federal Air Quality Standards and increase public participation throughout the permitting process.

The bill removes the Air Quality Control Commission to create rules setting the conditions and limitations for periods of start-up, shutdown or malfunction of a source of air pollution. Permits must not allow emissions of pollutants at a non-residential structure unless an emission notice is filed with the Division of the Colorado Dept. of Public Health & Environment. The bill adds 2 requirements: relevant permits have been approved by the CDPHE; and an applicable period of review by the Federal Environmental Protection Agency (EPA) has been completed. It also removes the prohibition against the Air Quality Control Commission's adopting rules covering indirect sources that are more stringent than federal law. 

It also required the CDPHE's review of construction permit applications for a source that includes oil and gas operations to add emissions from a proposed or modified oil and gas system. And it must consider exploration and preproduction emissions if a proposed or modified oil and gas system is in an ozone non-attainment area as well if conducted between May 1 and August 31. (ozone season)

The bill clarifies that only the filing of a renewable operating permit application can operate without a permit during an application review by the AQCC or the CDPHE. The law requires public notice posts by the CDPHE or the AQCC of pending applications along with records of analysis and public hearings in areas where a project is located. The bill removes newspaper for notice, but adds alternative methods of public notices by the AQCC or CDPHE. 

The AQCC and CDPHE currently makes a finding that a source or activity meets emission control regulations found in the Ambient Air Quality Standards for permitting. The bill requires, beginning Jan 1, 2024 that the AQCC and the CDPHE for any source with potential to emit air contaminants above modeling threshold, they must find the activity will not exceed AQCC levels on modeling. The bill allows the CDPHE to add any terms or conditions after an investigation of a construction permit. As to any legitimate complaints, the CDPHE must; investigate within 30 days, notify the owner or operator, consider evidence and determine a violation within 90 days. The CDPHE must issue a compliance order.

If a hearing is requested, the AQCC will give notice with 45 days to the complaintant. A complaintant can request a hearing within 20 days if a violation is judged as not having occurred. (not including a non-compliance during start-up, shut-down, or malfunction) The bill allows a civil action for past or present violations, 60 days after notice is provided to the Executive Director of the CDPHE, the Director of the AQCC and the violator. Any action not commenced within 5 years after discovery is time-barred.

The CDPHE must consider the impact on safety, wildlife and biological rresources and severity of the violation.

The bill also creates new electrification requirements and emissions standards for stationary engines used in oil and gas operations.

The bill creates new control measures that must be included in any implementation plan for ozone adopted by the AQCC until a serious, severe or extreme ozone non-attainment area in the state is redesignated as a "maintenance area" by the EPA.

The bill requires any litigation costs be paid by the violator to the complaining party. 

The bill allows any person to submit a complaint to the Colorado Oil and Gas Conservation Commission with an alleged violation. It requires the COGCC to evaluate and address adverse cumulative impacts on the environment and disproportionately impacted communities for each permit application for a new or modified oil and gas location through a cumulative impact statement.

Ozone state implementation plans must be submitted by June 1, 2024, and must have ozone control measures.

The League supports; procedures for mitigation of adverse impacts, special consideration for the protection of areas of critical environmental concern, consideration of environmental, public health, social and economic impacts of proposed plans and actions, regulation of pollution sources by control and penalties, inspection and monitoring.

LWVCO Supports this bill.

Section 2 of the bill removes the requirement that the air quality
control commission (AQCC) promulgate rules setting the conditions and
limitations for periods of start-up, shutdown, or malfunction of a source
of air pollution (source) that justify temporary relief from an emission
control regulation.
Current law provides that a person shall not permit the emission
of air pollutants at a nonresidential structure unless an air pollution
emission notice has been filed with the division of administration in the
department of public health and environment (division). Section 5 adds
the requirements that any:
  • Relevant permits have been approved by the division; and
  • Applicable period of review by the federal environmental
protection agency has been completed.
Section 6 removes the prohibition against the AQCC adopting
rules covering indirect sources that are more stringent than applicable
federal law.
Section 6 also requires the division, in evaluating a construction
permit application for a source that includes new oil and gas operations,
to:
  • Aggregate emissions from a proposed or modified oil and
gas system; and
  • Consider emissions from exploration and preproduction
activities if a proposed or modified oil and gas system is in
an ozone nonattainment area and if the activities will be
conducted beginning May 1 and ending August 31 of any
year (ozone season).
Section 8 clarifies that only the filing of a renewable operating
permit application can operate as a defense to an enforcement action for
operating without a permit during the time period that the division or the
AQCC is reviewing the permit application.
Current law requires the division or the AQCC to give public
notice of certain construction permit applications or renewable operating
permit applications and of certain public hearings through a newspaper
publication or another method that ensures effective public notice.
Current law also requires the division to maintain a copy of a construction
permit application and applicable preliminary analysis or a notice of
public hearing with the county clerk and recorder of the county where the
applicable project is located. Section 8 also removes the newspaper
publication option and the county clerk and recorder filing requirements
and provides for alternative methods of giving public notice, including
posting information about the application or any public hearings on the
division's or the AQCC's website.
Current law requires the division or AQCC to make a finding that
a source or activity will meet all applicable emission control regulations,
including ambient air quality standards (AAQS), before granting a permit
for the source or activity. Section 8 also requires that, beginning January
1, 2024, for at least any source or activity that has the potential to emit
levels of air contaminants above certain modeling thresholds, the division
or AQCC must base any finding that the source or activity will not cause
or contribute to an exceedance of applicable AAQS on air quality
modeling.
Section 8 also allows the division, after an investigation into
whether an activity meets the requirements of a construction permit, to
propose additional terms and conditions of the construction permit.
With respect to a complaint alleging or the division's own belief
regarding a violation or noncompliance (violation), section 9 requires the
division to:
  • Cause a diligent investigation into the violation to be made
unless the complaint clearly appears to be frivolous or
trivial or the complainant withdraws the complaint;
  • Notify the owner or operator of the applicable air pollution
source of the complaint or the division's belief of an
alleged violation within 30 days after the complaint was
filed or the division discovered the alleged violation;
  • Consider all relevant evidence that it acquires when
investigating the alleged violation; and
  • Determine whether a violation occurred within 90 days
after the division gives notice that it has commenced an
investigation on the matter.
If the division determines that a violation has occurred, current law
requires the division to issue a compliance order unless the responsible
party gives timely notice that the violation occurred during a period of
start-up, shutdown, or malfunction. Section 9 removes the exception for
periods of start-up, shutdown, or malfunction.
Section 9 also requires, if a hearing is requested after the receipt
of a compliance order, the commission to provide at least 45 days' notice
to any complainant that submitted a complaint alleging the applicable
violation.
Section 9 also allows a complainant to submit a request for a
hearing within 20 calendar days after receipt of a determination by the
division that no violation occurred.
Current law provides that any noncompliance that occurs during
a period of start-up, shutdown, or malfunction exempts the owner or
operator of a source from the duty to pay penalties related to that
noncompliance. Section 9 removes this provision.
Section 9 also allows a person, with respect to certain clean air
regulations, to commence a civil action (action) against an alleged
violator for a current or past violation of the regulation. A person shall
not commence an action until at least 60 days after a notice has been
provided to the executive director of the department, the director of the
division, and the alleged violator. Except for violations of an ongoing or
recurring nature, any action that is not commenced within 5 years after
the discovery of the alleged violation is time barred.
Current law requires the division to consider certain factors in
determining the amount of a civil penalty to assess for a violation.
Section 10 requires the division to also consider the impact of the
violation on safety and wildlife and biological resources and the severity
of the violation.
Current law provides that any action related to an alleged violation
of air quality laws that is not commenced within 5 years after the
occurrence of the alleged violation is time barred. Section 11 excludes
actions commenced to address a failure to obtain a permit from this
statute of limitation.
Section 12 creates new electrification requirements and emissions
standards for stationary engines used in oil and gas operations.
Section 13 creates new control measures that must be included in
any state implementation plan for ozone adopted by the AQCC until a
serious, severe, or extreme ozone nonattainment area in the state is
redesignated as a maintenance area by the federal environmental
protection agency.
Section 15 requires the district court, in a suit against a person that
has violated a state law, rule, or order related to oil and gas, to award the
initial complaining party any costs of litigation incurred by the initial
complaining party if the court determines that the award is appropriate.
Section 16 allows any person to submit a complaint to the oil and
gas conservation commission (COGCC) alleging a violation of a state
law, rule, or order related to oil and gas. Upon receipt of the complaint,
the COGCC or the director of the COGCC is required to promptly
commence and complete an investigation into the violation alleged by the
complaint, unless the complaint clearly appears on its face to be trivial or
the complainant withdraws the complaint.
Section 17 requires the COGCC to evaluate and address adverse
cumulative impacts on the environment and disproportionately impacted
communities for each permit application for a new or substantially
modified oil and gas location through a cumulative impact analysis.

• May 06, 2023: Senate Appropriations Committee Report
• May 04, 2023: Senate Transportation & Energy Committee Report
• April 28, 2023: House Appropriations Committee Report
• April 20, 2023: House Energy & Environment Committee Report

The Climate Emergency Team has had several conversations regarding SB23-016, Greenhouse Gas Emission Reduction Measures (Sen. Hansen, Rep. McCormick and Sirota)

Recommend AMEND position.

This request is based on those conversations and research. The team is supportive of all the bill except Section 7. Consequently, the team is asking for an Amend. The preference is to amend Section 7 out of the bill.

The bill includes several provisions to reduce greenhouse gas emissions in the state. There are 14 sections to the bill. (See attachment for a description of each section.) However, the team believes Section 7 should be removed from the bill. It does not fit with the intent of the rest of the bill.

Background:

In last year's session, Senate Bill 22-138 was a mix of solutions that included carbon capture sequestration (CCS). Due to the information gathered regarding CCS, a non-science based, unjust, unsustainable solution to Climate Change, failed pilots, and a false solution. The League monitored the bill. It passed a Senate Committee but lost in a House Committee. This year SB23-016 was heard in Senate Transportation and Energy where it passed and was sent to Finance with three technical amendments.

League Positions:

The state should be allowed to set more restrictive standards than the federal government.

Development projects in Colorado should be environmentally sound and should follow all federal and state environment laws.

Recognition that long-range ecological effects have greater importance than short-range problems.

Promote policies that manage land as a finite resource and incorporate principles of stewardship.

Promote responsible land use planning by all levels of government.

Support environmentally sound policies that reduce energy growth rates, emphasize energy conservation, and encourage the use of renewable resources and predominant reliance on renewable resources.

Analysis:

Section 7 deals with state primacy over type VI wells rather than the Environmental Protection Agency (EPA). While Section 7 is about primacy, it has consequences for oil and gas development. To allow for the continuation of Type VI wells for sequestration purposes encourages the continuation of oil and gas operations. We need to end producing, selling, and burning fossil fuels. The state must put energy efficiency, transportation, electrification, and clean energy expansion and infrastructure at the forefront of subsidies that will lower emissions instead of spending money on questionable techniques that encourage continued fossil fuel production. Primacy is not the real issue, it is the use of sequestration.

The urgency of the Climate Crisis Emergency demands an immediate, science-based response by our society away from fossil fuels. Funding must not be spent on costly, dangerous, unsafe, unproven, unfeasible, unviable, inefficient, and ineffective solutions that have failed.

Section 7 meant to encourage emission reduction, facilitates and opens the door to oil and gas extraction by the use of Class IV injection wells used for carbon sequestration in geologic rock (Environment Protection Agency - EPA); It requires Colorado water to cool equipment. This activity will continue to produce Green House Gas (GHG) emissions from the use of fossil fuels and from oil production operations.

Section 7 is inconsistent with the League’s positions on reducing reliance on fossil fuels and changing to reliance on renewable.

Carbon Capture Sequestration (CCS) and CCUS [put in name here] actions impact indigenous and frontline communities unjustly (JEDI).

REFERENCES:

Water and Power Use for CCS, The Guardian, Sat. 25 Oct. 3033

Federal Government's White House Environmental Justice Advisory Council Executive Order Recommendations Report (CCS is NOT RECOMMENDED as a Solution)

Michael E. Mann distinguished professor of atmospheric science at Penn State writes in his new book: The New Climate Wars, that he opposes CCS and CCUS. "...current renewable energy and storage technology we could meet up to 80% of global energy demand by 2030 and 100% by 2050 with energy efficiency, electrifying all energy sectors, decarbonizing the grid through rooftop solar, solar panels, on-off shore wind farms, wave energy, geothermal, hydro-electric, and tidal energy, all deployed rapidly and at massive scale."

Robert R.M. Verchick scholar in Disaster and Climate Change

Institute for Carbon Removal Law & Policy, Why Carbon Capture and Direct Air Capture Cause More Damage Than Good to Climate and Health. November 13, 2019

Karen Sokel, CPR President at Loyola University New Orleans, The False Promise of Carbon Capture as a Climate Solution in Louisiana and Beyond, paper.

Monique Hardin, Assistant Director of Law and Policy Deep South Center for Environmental Justice." ...CCS is not regulated, risks of leaks, fires, and explosions. Pipes corrode with carbon dioxide. EPA has no records on CCS. no verification results of sequestration. CCS is a false solution being pushed by fossil fuel industry."

Dr. Albert Karvelis PhD. and Mark Jacobson, two experts agree that CCS and CCUS are costly, not safe, not regulated, can supersede land rights, extend fossil fuels life, needs taxpayer funds, relies on unsafe unproven technology, and requires large scale implementation that would add more carbon to power. These are false solutions and scam technology.

Charles Harvey, an MIT expert on CCS and scientific advisor to storage company states in a Frontline documentary, "CCS and CCUS are false solutions to emission problems. They divert investment from needed clean energy sources. it is not the direction to go to stop Climate change.

The U.S. House Committee on Oversight and Reform headed by Rep. Carolyn B. Maloney had a hearing in 2021. They released new documents showing Big Oil's Greenwashing campaigns of spreading disinformation and preventing climate action.

https://www.coloradofiscal.org/costs-benefits-oil-gas-colorado/library/reports  tells the story about oil and gas in Colorado.

Carbon Capture Technologies 'Extraordinarily Expensive' Show Limited Potential, IPCC Analysis Concludes, The Energy Mix article.

The Cost to Capture Carbon? More water and electricity. by Sarah Sneath for Floodlight, Saturday 15 October 2022

Section 1 of the bill requires that, beginning in 2024, each
insurance company issued a certificate of authority to transact insurance
business that reports more than $100 million on its annual schedule T
filing with the National Association of Insurance Commissioners (NAIC)
must participate in and complete the NAIC's Insurer Climate Risk
Disclosure Survey or successor survey or reporting mechanism.
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.
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.
Section 4 adds wastewater thermal energy equipment to the
definition of pollution control equipment, which equipment may be
certified by the division of administration (division) in the department of
public health and environment (CDPHE). 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.
Section 6 updates the statewide GHG 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 6 also increases the 2050 GHG emission reduction goal
from 90% of 2005 GHG pollution levels to 100%.
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. 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. The COGCC shall require, as part of its
regulation of class VI injection wells, that operators of the wells maintain
adequate financial assurance until the COGCC approves the closure of a
class VI injection well site.
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. A seller of
new, electric-powered lawn equipment that demonstrates that it provided
a purchaser a 30% discount from the purchase price of new,
electric-powered lawn equipment may claim the tax credit.
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 9
maintains that calculation if the CSG indicates to the utility that the CSG's
subscribers' bill credits change annually. If the CSG indicates to the utility
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
recondition existing utility transmission lines into the Colorado Electric
Transmission Authority Act, allowing the Colorado electric transmission
authority to finance and renovate, rebuild, or recondition existing
transmission lines in order to 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.
Section 14 makes a conforming amendment regarding the updated
statewide GHG emission reduction goals set forth in section 6.

• April 26, 2023: House Appropriations Committee Report
• April 24, 2023: House Finance Committee Report
• April 20, 2023: House Energy & Environment Committee Report
• April 06, 2023: Senate Appropriations Committee Report
• April 06, 2023: Senate Appropriations Committee Report
• February 21, 2023: Senate Finance Committee Report
• February 21, 2023: Senate Finance Committee Report
• January 25, 2023: L.001 Senate Transportation & Energy Committee
• January 25, 2023: L.002 Senate Transportation & Energy Committee
• January 25, 2023: L.003 Senate Transportation & Energy Committee
• January 25, 2023: Senate Transportation & Energy Committee Report
• January 25, 2023: Senate Transportation & Energy Committee Report

The bill updates statutory definitions of clean energy and clean
energy resource to include nuclear energy.

• February 14, 2023: Senate Transportation & Energy Committee Report
• February 14, 2023: Senate Transportation & Energy Committee Report

Objectives are to prepare and mitigate impacts climate change or drought have on agriculture; To study GHG reduction and carbon sequestration in the agriculture sector; and Conduct a feasibility study of the use of Aquavoltaics— one or more solar energy generation facilities placed over, or floating on, irrigation water canals or reservoirs.

Agricultural Drought and Climate Resilience Office will fund projects that demonstrate or study the use of agrivoltaics --one or more solar energy generation facilities directly integrated with agriculture activities. 

The League believes that an interrelated approach to combating climate change including through energy conservation, promotion of renewable resources and defending the overall integrity of the global ecosystem.

Stakeholder groups including agricultural producers, utilities, manufacturers of solar energy generation. and environmental advocacy organizations will advise on projects.  Dept of Parks & Wildlife will consult on projects to avoid wildlife conflicts.

The Agriculture Commission shall study greenhouse gas reduction and carbon sequestration opportunities in agriculture and agricultural land management.  Projects might include dry digesters, composting and other regenerative agriculture practices.  The study will investigate the potential for creating and offering a certified greenhouse gas offset program

In support of the use of agrivoltaics, which is the integration of
solar energy generation facilities with agricultural activities, section 2 of
the bill authorizes the agricultural drought and climate resilience office
(office) to award grants for new or ongoing demonstration or research
projects that demonstrate or study the use of agrivoltaics. On or before
October 1, 2023, the office is required to convene a stakeholder group to
advise on whether the office should impose any operational requirements
for agrivoltaic projects that apply for grants.
Section 4 authorizes the Colorado water conservation board
(board) to finance a project to study the feasibility of using aquavoltaics,
which are solar energy generation facilities placed over, or floating on,
irrigation canals or reservoirs.
Section 1 requires the director of the division of parks and wildlife
to consult on the impacts on wildlife of:
  • Any research projects for which the office awards money
to study the use of agrivoltaics; and
  • The project that the board finances to study the feasibility
of using aquavoltaics in the state.
Section 5 amends the statutory definition of solar energy facility,
used in determining the valuation of public utilities for property tax
purposes, to include agrivoltaics and aquavoltaics.
Section 3 requires the commissioner of agriculture or the
commissioner's designee (commissioner), in consultation with the
Colorado energy office, the air quality control commission, and an
institution of higher education with expertise in climate change
mitigation, adaptation benefits, and other environmental benefits related
to agricultural research, to examine greenhouse gas reduction and carbon
sequestration opportunities in the agricultural sector, including the use of
dry digesters and the potential for creating and offering a certified
greenhouse gas offset program and credit instruments in the agricultural
sector.
Section 3 requires the commissioner to submit a progress report
on the study to the general assembly on or before October 1, 2024, and a
final report, including any recommendations, on or before October 1,
2025.
Section 3 also authorizes the commissioner to adopt rules to
implement the recommendations, but requires that any greenhouse gas
offset program or other greenhouse gas reduction and carbon
sequestration program or mechanism established in rule not mandate
participation by agricultural producers.

• May 06, 2023: House Appropriations Committee Report
• May 03, 2023: House Agriculture, Water & Natural Resources Committee Report
• April 21, 2023: Senate Appropriations Committee Report
• April 13, 2023: Senate Agriculture & Natural Resources Committee Report

Under present law, a unit owner association may not prohibit use of xeriscape, non-vegetative turf grass or drought tolerant vegetative landscapes which the unit owner is responsible. Many of these associations have design or aesthetic guidelines.  This bill would not prohibit the use of nonvegetative turf grass in unit backyard property; not unreasonably require use of hardscape on more that 20% of the landscaping area of a unit property; allow unit owners an option of at least 80% drought tolerant plantings; not prohibit vegetable gardens in the front, back or side yards of unit owners property.

League has supported other water wise pieces of legislation and conserving water and adjusting to arid conditions is necessary. 

Scheduled to be heard in Senate Local Government.

LWVCO Supports this bill.

Under current law, a unit owners' association (association) of a
common interest community may not prohibit the use of xeriscape,
nonvegetative turf grass, or drought-tolerant vegetative landscapes to
provide ground covering to property for which a unit owner is
responsible. There is, however, an exception authorizing an association
to adopt and enforce design or aesthetic guidelines or rules that apply to
nonvegetative turf grass and drought-tolerant vegetative landscapes or to
regulate the type, number, and placement of drought-tolerant plantings
and hardscapes that may be installed on a unit owner's property, on a
limited common element, or on other property for which the unit owner
is responsible.
The bill states that an association's guidelines or rules must:
  • Not prohibit the use of nonvegetative turf grass in the
backyard of a unit owner's property;
  • Not unreasonably require the use of hardscape on more
than 20% of the landscaping area of a unit owner's
property;
  • Allow a unit owner an option that consists of at least 80%
drought-tolerant plantings; and
  • Not prohibit vegetable gardens in the front, back, or side
yard of a unit owner's property.
The bill also requires an association to permit the installation of at
least 3 garden designs that are preapproved by the association for
installation in front yards within the common interest community. To be
preapproved, a garden design must adhere to the principles of water-wise
landscaping and emphasize drought-tolerant and native plants.
The bill allows a unit owner who is affected by an association's
violation of the new requirements to bring a civil action to restrain further
violation and to recover damages in an amount equal to actual damages
plus $500, plus any other damages, costs, and reasonable attorney fees.

• April 18, 2023: House Transportation, Housing & Local Government Committee Report
• March 28, 2023: Senate Local Government & Housing Committee Report
• March 28, 2023: Senate Local Government & Housing Committee Report

This bill requires the Colorado Oil and Gas Commission to carry out a study of the following to be completed by 

December 1,2023:

1. The best ways to capture methane seepage in coal mines in Raton Basin.
2. Determine the quality of water resulting from the methane capture.
3. Determine the possibility of preserving and making beneficial use of the water. 

Senate Bill 23-186 also has a purpose beyond studying the quality of water that results from capturing methane in the Raton Basin. It seeks guidelines for the use of methane  that is captured by creating a new market for methane with a proposed regulatory category for its recovery. As with CCS (carbon capture) which the LAC opposes in SB 16 and HB 1074, methane captured would have to be piped and transported from the original location with the inherent danger of methane leaks polluting the atmosphere for profit.

The study seeks to include enforcement rules, financial assurance, flow lines, forms, operator guidance, orphan well programs, rules, amid policies that would allow local government control.  This means that methane could be sold and burned for fuel use producing CO2 that increases global warming.  It could also be sold and used for other things as well, such as running industrial machinery, stoves, heating and cooling, rocket fuel and more.

CBM is naturally created during the geologic process of converting plant material to coal (coalification). The methane extracted from coal beds contributes to global warming.  It has more than 80% effect on global warming than CO2.

Naturally occurring water pressure in coal beds holds methane fixed to the coal surfaces and within the coal There is no natural methane CH4) seepage.  To extract the coalbed methane (CBM) operators drill wells into coal seams and pump out groundwater to reduce the natural water pressure holding the methane to the coal facilitating the release of methane (CBM).

Taken together, all parts of the IPCC Sixth Assessment Report reflect an undeniable scientific consensus on the urgency of the climate crisis, its root causes and the irreversible damage that will occur if warming exceeds 1.5 degrees C. even temporarily.  The report makes it clear that a rapid phase-out of fossil fuel energies alongside energy efficiency and demand side measures remain the clearest and most certain path to avoid overshoot.

LWVUS’s Position:   Phase out all fossil fuel extraction, and end fossil fuel and dirty energy subsidies.  Promote resource conservation stewardship and long range planning, with the responsibility for managing natural resources shared by all levels of government.

Keep fossil fuels in the ground!!!!

LWVCO Opposes this bill.

The bill requires the Colorado oil and gas conservation
commission (commission), in consultation with local governments, to
perform a study that:
  • Recognizes best management practices for capturing
methane seepage in the Raton basin;
  • Confirms the high quality of water resulting from such
methane capture operations; and
  • Confirms the high potential to preserve and make
beneficial use of such water.
The commission must complete the study and submit it to
legislative committees of reference by December 1, 2023.
The bill also requires the commission to implement a regulatory
category for methane recovery in the Raton basin, which category
includes consideration of enforcement, financial assurance, flow lines,
forms, operator guidance, orphan well programs, rules, and policies and
allows for beneficial uses deemed prudent by local governments.

• April 28, 2023: House Appropriations Committee Report
• April 20, 2023: House Energy & Environment Committee Report
• March 31, 2023: Senate Appropriations Committee Report
• March 31, 2023: Senate Appropriations Committee Report
• March 22, 2023: Senate Transportation & Energy Committee Report
• March 22, 2023: Senate Transportation & Energy Committee Report

 Purpose: Study and recommend action on turning wasted food into compost throughout the state.

The League of Women Voters of Colorado supports policies to reduce the generation of and promote the reuse and recycling of solid wastes and support environmentally sound policies that reduce energy growth rates, emphasize energy conservation and encourage the use of renewable resources.

Compost is decomposing plant, food waste, organic materials and manure, resulting in a mixture to mixture rich in plant nutrients and beneficial organisms. 

Over one-third of the food produced in the United States is never eaten, wasting the resources used to produce it and creating a myriad of environmental impacts. Food waste is the single most common material landfilled and incinerated in the United States Limiting the increase in global temperature to 1.5 degrees above pre-industrial levels requires. changes to the food system. Even if fossil fuel emissions were halted, current trends in the food system would prevent the achievement of this goal.

Reducing food waste can also help feed the world’s growing population more sustainably. Decreasing food waste can lessen the need for new food production, shrinking projected deforestation, biodiversity loss, greenhouse gas emissions, water pollution, and water scarcity.

In 2015, the United States announced a goal to halve U.S. food loss and waste by 2030, but the nation has not yet made significant progress.

Estimates that include food lost or wasted during all stages of the food supply chain (from primary production to consumption) range from 73 to 152 million metric tons per year, equal to approximately 35 percent of the U.S. food supply. Roughly half of this food is wasted during the consumption stage (households and food service), and fruits and vegetables and dairy and eggs are the most frequently wasted foods. This uneaten food results in a “waste” of resources—including agricultural land, water, pesticides, fertilizers, and energy—and the generation of environmental impacts—including greenhouse gas emissions and climate change, consumption and degradation of freshwater resources, loss of biodiversity and ecosystem services, and degradation of soil quality and air quality.

https://www.epa.gov/system/files/documents/2021-11/from-farm-to-kitchen-the-environmental-impacts-of-u.s.-food-waste_508-tagged.pdf

We cannot ensure a livable future for all if we fail to act on the latest and most urgent alarms sounded by the IPCC which set the floor, not the ceiling, for necessary climate action.

The bill requires the department of public health and environment to study and report on or before August 1 2024 to committees of the senate and house on the impacts, benefits, and feasibility of requiring diversion of organic materials from landfills.

LWVCO Supports this bill.

The bill requires the department of public health and environment
(department) to study the impacts, benefits, and feasibility of requiring
diversion of organic materials from landfills. The organics diversion
study (study) must:
  • Incorporate and utilize data contained in the statewide
organics management plan and other existing Colorado
studies and research from other states;
  • Explore how to leverage existing organics diversion pilot
projects in Colorado to inform implementation of broader
organics diversion projects across the state;
  • Evaluate the environmental benefits of diversion of organic
materials from landfills;
  • Review and identify the infrastructure needed to enable
diversion of organic materials from landfills and create a
plan for infrastructure development;
  • Create actionable parameters for local governments to use
to determine if, where, and what types of organics
processing infrastructure is needed and basic toolkits to
help local governments build the infrastructure;
  • Create a timeline to effectively and equitably phase in
required diversion of organic materials from landfills by
region using the 4 regions of the state as identified in the
state organics management plan;
  • Outline and recommend policies and regulations that would
enable diversion of organic materials from landfills;
  • Assess informational resources necessary to enable
diversion of organic materials from landfills; and
  • Identify opportunities for end-market development of
organic materials diverted from landfills.
On or before August 1, 2024, the department is required to submit
a report of the study's research and findings to specified committees of
reference in the senate and the house of representatives.
The bill authorizes the use of money in the front range waste
diversion cash fund and the recycling resources economic opportunity
fund to pay for costs associated with conducting the study.

• April 28, 2023: House Appropriations Committee Report
• April 27, 2023: House State, Civic, Military, & Veterans Affairs Committee Report
• April 06, 2023: Senate Appropriations Committee Report
• April 06, 2023: Senate Appropriations Committee Report
• March 23, 2023: Senate Agriculture & Natural Resources Committee Report
• March 23, 2023: Senate Agriculture & Natural Resources Committee Report

This bill expands and defines various entities in the electricity supply chain that are now required to submit Clean Energy Plans that will achieve clean energy targets.  The bill appears to be filling gaps in the supply chain for which greenhouse gas emissions may not be adequately accounted and providing descriptions of resources and activities intended to reach clean energy targets. 

In 2019 LWVCO supported the Climate Action Plan to Reduce Pollution that sets statewide greenhouse gas (GHG) reduction goals relative to 2005 statewide levels and requires the Air Quality Control Commission to adopt rules and regulations for statewide GHG reduction.

According to the Colorado Greenhouse Gas Pollution Reduction roadmap (2021) the 2005 baseline GHG emissions for the electricity generation sector were about 40 million metric tons of CO2 equivalents.  

“Electricity generation emissions largely come from coal-fired power plants with a small portion from fossil methane gas-fired power plants. …. Achieving the 2030 goals will rely on deep reductions in pollution from electricity generation by continuing the transition to renewable energy….”

Coal plant retirements have contributed to progress in emissions reductions in the sector.

LWVCO supports the environmentally sound use of energy resources, with consideration of the entire cycle of energy production and action by appropriate levels of government to encourage the use of renewable resources through mandatory standards.  

We encourage the collaborative approaches by the AQCC and PUC in addressing the urgent need for carbon-free electricity generation.  

LWVCO Supports this bill.

Current law requires that certain entities submit a plan (clean
energy plan) to the division of administration in the department of public
health and environment (division) and the public utilities commission
(PUC) to reduce the entity's greenhouse gas emissions associated with the
entity's electricity sales and to achieve at least an 80% reduction in
greenhouse gas emissions caused by the entity's Colorado retail electricity
sales by 2030 relative to 2005 levels (2030 clean energy target). In
addition to meeting the 2030 clean energy target, the bill requires that any
clean energy plan submitted to the division must also achieve at least a
46% reduction in greenhouse gas emissions caused by the entity's
Colorado electricity sales by 2027 relative to 2005 levels (2027 clean
energy target). If an entity's current clean energy plan does not achieve
the 2027 clean energy target, the entity must, no later than December 31,
2024, submit a revised clean energy plan to the division. The division
shall, in consultation with the PUC, verify that the revised clean energy
plan meets the 2027 clean energy target.
The bill also requires any entity that submits a clean energy plan
to the division on or after July 1, 2023, to base the entity's 2005 baseline
greenhouse gas emissions, estimated 2027 greenhouse gas emissions, and
estimated 2030 greenhouse gas emissions on:
  • The greenhouse gas emissions from each resource that is
used to supply electricity to the entity's retail electricity
customers; and
  • The greenhouse gas emissions from each resource that
generates electricity and that is owned by the entity if the
applicable greenhouse gas emissions are not otherwise
required to be included in another entity's clean energy
plan.
The bill also requires the division to independently confirm or
calculate the data it uses in verifying a clean energy plan submitted to the
division on or after July 1, 2023, and allow the public to access and
provide comments about the data prior to the verification of a clean
energy plan.
No later than June 1, 2028, the division must:
  • Calculate the percentage of reduction in greenhouse gas
emissions for each entity that is required to submit a clean
energy plan and does not have its electric resource planning
process regulated by the PUC; and
  • Determine whether each entity that is required to submit a
clean energy plan and does not have its electric resource
planning process regulated by the PUC has obtained all of
the resources necessary to achieve the 2030 clean energy
target.
If the division determines that an entity has not obtained all of the
resources necessary to achieve the 2030 clean energy target, no later than
December 31, 2028, the entity must submit a report to the division
identifying the resources that it has procured to achieve the 2030 clean
energy target (report).
If the entity does not submit the report on or before December 31,
2028, or if the division determines from the report that an entity has not
obtained all of the resources necessary to achieve the 2030 clean energy
target, the air quality control commission (AQCC) shall adopt rules that
limit the greenhouse gas emissions by the entity to ensure that the entity
achieves the 2030 clean energy target and that direct the division to
amend any of the entity's operating permits for sources of greenhouse gas
emissions to ensure that the entity achieves the 2030 clean energy target.
The bill also requires:
  • If a utility's Colorado electricity sales between January 1,
2022, and December 31, 2022, are equal to or greater than
300,000 megawatt-hours, the utility to submit a clean
energy plan to the division; and
  • The owner of an electric generating unit that has a
nameplate capacity equal to or larger than 50 megawatts to
submit a clean energy plan to the division that covers all
greenhouse gas emissions from the unit that are not
otherwise required to be included in the clean energy plan
of another entity.
Any entity required to submit a clean energy plan to the division
may designate another entity to submit a clean energy plan on its behalf
or submit a joint clean energy plan with another entity.
No later than October 1, 2024, the division shall submit a report to
the general assembly that includes certain data regarding which electric
utilities have submitted clean energy plans to the division and the
electricity generation resources that are responsible for greenhouse gas
emissions in the state.
No later than December 31, 2024, the division shall issue guidance
specifying the manner in which the division will track and account for
greenhouse gas emissions associated with electricity utility transactions
in organized markets.
The bill defines cooperative retail electric utility as a retail
electric utility that has:
  • Indicated an intent to submit or, after January 1, 2021, has
submitted a clean energy plan; and
  • Provided a non-conditional notice that it is withdrawing
from a wholesale generation and transmission cooperative
after January 1, 2021, or enters into a partial requirements
contract with a wholesale generation and transmission
cooperative to obtain more than 5% of its firm capacity
supply from a greenhouse-gas-emitting source other than
the wholesale generation and transmission cooperative
(cooperative retail electric utility).
A cooperative retail electric utility must submit a clean energy plan
to the division no later than 18 months after ceasing to be a member of a
wholesale generation and transmission cooperative or after the date that
a partial requirements contract begins. The division shall verify, in
consultation with the PUC, that any cooperative retail electric utility's
clean energy plan achieves the 2027 clean energy target and the 2030
clean energy target.
The bill also defines wholesale power marketer as an entity
operating in the state that supplies wholesale capacity or energy to a retail
electric utility located in the state (wholesale power marketer).
A wholesale power marketer must submit a clean energy plan with
the division if, on or after July 1, 2023:
  • The wholesale power marketer sells, provides, arranges for,
or contracts for the delivery of capacity or energy to a retail
electric utility in the state; and
  • The greenhouse gas emissions associated with the retail
electric utility's operations are not otherwise required to be
included in another entity's clean energy plan.
The division must verify, in consultation with the PUC, that any
clean energy plan submitted by a wholesale power marketer achieves the
2027 clean energy target and the 2030 clean energy target.
The bill also defines new electric utility as any new electric
utility that is incorporated, created, or otherwise formed on or after July
1, 2023, that:
  • Serves retail customers in the state; and
  • Sells 300,000 megawatt-hours or more of electricity in its
first year of operation (new electric utility).
A new electric utility must submit a clean energy plan to the
division no later than 2 years after being incorporated, created, or
otherwise formed. If a new electric utility does not submit a clean energy
plan to the division within this time, the AQCC shall adopt rules to reduce
the greenhouse gas emissions by the new electric utility to ensure that the
new electric utility achieves the 2027 clean energy target and the 2030
clean energy target.

• April 29, 2023: House Appropriations Committee Report
• April 27, 2023: House Energy & Environment Committee Report
• April 21, 2023: Senate Appropriations Committee Report
• April 05, 2023: Senate Transportation & Energy Committee Report
• April 05, 2023: Senate Transportation & Energy Committee Report

After decades of having fees in statute for the water quality control division, this bill is asking for the transfer of fee setting authority to the Water Quality Control Commission (WQCC) and modifying the membership of the commission.  The League has long been a defender of water quality and having fees established that would cover the permitting and oversight necessary to meet EPA and state water quality standards.  The League has been opposed to having fees set in statute as that does not make for an efficient government.

The bill asks for modification of the 9 member WQCC to include members with specific areas of science and expertise as well as areas of municipal water or wastewater treatment plants, industry, or labor. There is also statewide representation and fairly even political representation required.  The fees would be assessed after engaging stakeholder outreach and the rule would cover a myriad of areas such as drinking water, commerce and industry permitting, construction and municipal separate storm sewer systems.  It would also create a clean water cash fund where fees would be collected under the WQCC rules, aside from drinking water fees.

The bill has passed out of the senate on 3rd reading, April 24th, with amendments adding more clarification of WQCC membership, adding back that the general assembly “may” adjust fees that the WQCC “shall” set, and a clearer process for stakeholder engagement.

Section 1 of the bill increases the percent of appropriated funds
that the department of public health and environment (department) may
use for the administration and management of the public water systems
and domestic wastewater treatment works grant program from 5% to
10%.
Section 3 modifies the composition of the water quality control
commission (commission) by requiring that:
  • No more than 5 members of the commission be affiliated
with the same political party; and
  • The commission include members with specific types of
expertise, including expertise in areas of science and
environmental law or policy or areas such as municipal
water or wastewater treatment, industry, or labor.
Section 4 requires the commission, on or before October 31, 2025,
and after engaging in stakeholder outreach, to set the following fees by
rule:
  • Drinking water fees assessed on public water systems;
  • Commerce and industry sector permitting fees;
  • Construction sector permitting fees;
  • Pesticide sector permitting fees;
  • Public and private utilities sector permitting fees;
  • Municipal separate storm sewer systems sector permit fees;
  • Review fees for requests for certification under section 401
of the federal Clean Water Act;
  • Preliminary effluent limitation determination fees;
  • Wastewater site application and design review fees;
  • On-site wastewater treatment system fees; and
  • Biosolids management program fees.
The commission's fee-setting rules must become effective on or
before January 1, 2026, and the commission may by rule authorize the
division to phase in the fee-setting rules.
Section 4 also creates the clean water cash fund into which the
fees collected under the commission's rules, other than the drinking water
fees assessed on public water systems, are credited.
The statutory fee provisions in sections 2, 5, 6, and 8 repeal on
July 1, 2026. Before the repeal, the state treasurer is required to transfer
any money remaining in the various funds into which the statutory fees
are credited to the clean water cash fund; except that section 2 specifies
that drinking water fees will continue to be credited to the drinking water
cash fund and that any money in the drinking water cash fund will remain
in that cash fund.
Section 7 repeals the division's regulatory authority concerning
nuclear and radioactive wastes.
Section 9 requires the division to include, in its annual reporting
to the commission and the general assembly, information on:
  • The division's implementation and enforcement of the
discharge permitting program (program);
  • For reports submitted before October 1, 2025, the division's
fee revenue and direct and indirect costs associated with
the program; and
  • For the report submitted in 2025, the fee structure set forth
in the commission's proposed or adopted fee-setting rules.

• April 27, 2023: House Energy & Environment Committee Report
• April 18, 2023: Senate Finance Committee Report

Objective(s): Incentive and support replacement of older diesel trucks with newer trucks with newer safety systems and lower emissions [GHG and other tailpipe pollutants] with tax credits and grants.  Funding for the improvement of hazardous mitigation corridors and projects related to emergency responses, environmental mitigation, and the safe transport of fuel within the state.

Creation of Fuels Impact Enterprise in CDOT.  An Enterprise is a state-owned business with authority to raise funding dedicated for providing specific services.  Fees on manufacture and distribution of fuel products credited for 

• Fuels Impact Reduction grant program.  Distributions to certain critically impacted communities, governments, and transportation corridor projects.
• Dept Public Safety and Colo State Patrol hazardous materials on highways
• CDOT for safe transport of hazardous materials; emergency responses; environmental mitigation 
• PFAS cash fund (Colorado Revised Statutes, 8-20-206.5 fees on distribution of fuel products)

Heavy-Duty Diesel Vehicle registration fee imposed by Clean Fleet Enterprise (CDPHE):  $30 for MY 2010 -2014:  $50 for older MY.  Designated for Diesel Truck Emissions Reduction grant program to decommission and replace diesel trucks.  

Tax credit for conversion to clean commercial trucks. 

• Electric, low nitrogen oxides, plug-in hybrid electric, bi-fuel renewable, renewable fuel.
• Tax credit allowed determined by weight, fuel type. Tax credit is lower in later tax years. 
• Tax credit may be assigned, i.e., for compensation at point of sale/lease.  

Restrictions on types of trucks that can be used in state projects in nonattainment areas. 

The League supports for measures to reduce vehicular pollution, including inspection and maintenance of emission controls, changes in engine design and fuel types; regulation and reduction of ambient toxic-air pollutants.  

This is a JEDI bill.  Older diesel trucks contribute more localized particulate matter and nitrogen oxides in Disproportionately Impacted Communities (DIC) where warehouses, refineries, fleet yards, and fuel depots are located {Section 6.]  In evaluating applications for the Diesel Truck Emissions Reduction grant program priority shall be given to applications from DIC and nonattainment areas. 

LWVCO Supports this bill.

The bill creates the fuels impact enterprise. The enterprise imposes
a new fuels impact reduction fee on fuel product manufacturers to fund
the fuels impact reduction grant program that the fuels impact enterprise
administers. The fuels impact reduction fee is equal to $.06125 per gallon
of fuel products delivered during the previous calendar month for sale or
use in Colorado. The fee is collected and deposited in the fuels impact
enterprise hazardous materials infrastructure cash fund until the fund has
an available balance of $15 million or more.
Under the fuels impact reduction grant program, the fuels impact
enterprise provides grants to certain critically impacted communities,
governments, and transportation corridors for the improvement of
hazardous mitigation corridors and to support key commercial freight
corridors, local and state government projects related to emergency
responses, environmental mitigation, or projects related to the
transportation of fuel within the state.
The bill also amends the clean fleet enterprise so that the clean
fleet enterprise imposes, between January 1, 2024, and December 31,
2032, a heavy-duty diesel vehicle registration fee of $10 for heavy-duty
diesel vehicles that are model year 2014 through 2016, $20 for
heavy-duty diesel vehicles that are model year 2010 through 2013, and
$50 for heavy-duty diesel vehicles that are model year 2009 or older.
Under the diesel truck emissions reduction grant program, the
clean fleet enterprise, along with the division of administration in the
department of public health and environment (division), awards grant
money to certain private and public entities to decommission diesel trucks
and replace them with newer model trucks through. The clean fleet
enterprise and the division are required to determine eligibility for the
grant money and the eligible fuel types for qualifying as a replacement
vehicle under the grant program.
The bill also replaces a tax credit for a qualified investment in a
commercial truck, truck tractor, or semitrailer that is used solely and
exclusively in an enterprise zone with a tax credit for the conversion,
lease, or purchase of a bi-fuel renewable fuel truck, electric, hybrid, low
nitrogen oxides, plug-in hybrid electric, or renewable fuel truck that is
predominantly housed and based at a taxpayer's business facility within
an enterprise zone for the 12-month period following its purchase and is
not used for personal use. The new credit:
  • Is available between tax years 2023 and 2029;
  • May be assigned to the financial entity that finances the
lease or purchase of the truck;
  • May not be carried forward, but may be refunded; and
  • Is available in an amount that depends on the type of truck
the taxpayer converts, leases, or purchases and when that
conversion, lease, or purchase occurs.
Beginning October 1, 2023, the bill modifies the fee that is
currently collected for distribution to the perfluoroalkyl and
polyfluoroalkyl substances cash fund by extending the collection of the
fee to 2036 and by changing the distribution of the fee revenue. Under the
new distribution, the state treasurer shall credit:
  • An amount equal to the cost of administering the fee to the
department of revenue;
  • $2 million of the fee revenue to the department of public
safety to support the regulation of hazardous materials on
highways in the state as well as the enforcement of
commercial and hazardous materials critical corridors
determined by the chief of the Colorado state patrol;
  • 70% of the amount remaining to the perfluoroalkyl and
polyfluoroalkyl substances cash fund; and
  • 30% of the amount remaining to the department of
transportation to support functions related to the
transportation of hazardous materials and the safe and
efficient movement of freight as well as to support
infrastructure projects that enhance the safety of movement
of freight and hazardous materials.
The bill also increases the amount of fee revenue that can be held
annually in the perfluoroalkyl and polyfluoroalkyl substances cash fund
from $8 million to $9 million.
Additionally, the bill:
  • Extends authorization for the division of oil and public
safety to use the petroleum storage tank fund for costs
related to petroleum storage tank facility inspections and
meter calibrations from September 1, 2023, to September
1, 2033;
  • Delays the effective date of the $8 million cap on the
petroleum storage tank fund from September 1, 2023, to
September 1, 2033;
  • Allows the director of the division of oil and public safety,
in consultation with the petroleum storage tank committee,
to establish rules that allow an operator of petroleum
storage tanks to apply to the petroleum storage tank fund
for reimbursement even if the total remediation expenses
do not exceed $10,000;
  • Allows the director of the division of oil and public safety
to annually transfer up to $500,000 from the petroleum
storage tank fund to the petroleum cleanup and
redevelopment fund;
  • Allows the Colorado state patrol to conform hazardous
materials routing regulations to transportation commission
rules; and
  • Phases out the use of certain diesel trucks on state projects.

• May 06, 2023: House Appropriations Committee Report
• May 01, 2023: House Finance Committee Report
• April 24, 2023: Senate Appropriations Committee Report
• April 18, 2023: Senate Finance Committee Report

Objective.  Creation of Energy & Carbon Management Commission to replace COGCC, and to expand scope of authority. 

1. Geothermal Resources-- Development and regulation of geothermal resources as an alternative to conventional fuel sources. Moving regulation of deep geothermal resources from Division of Water  Resources (DNR) to E&CM
   1. Geothermal resource: natural heat of the earth, its extraction, the medium used to extract, and by-products (dissolved minerals and gases, (including hydrocarbons and CO2). 
2. Underground natural gas temporary storage. Currently regulated by U.S Dept of Transportation; state to apply for primacy.   Pipelines are regulated by PUC.
3. Local governments retain land use authority over siting underground natural gas storage facilities.
4. Study Geothermal resources: study of state’s resources; evaluation of regulatory structure.
5. Study Hydrogen resources: regulation and permitting; with PUC, examine siting and regulation of pipelines.
6. Property rights to non-tributary groundwater are part of ownership of overlying surface.
   1. Nontributary groundwater: located outside the boundaries of any designated groundwater basins, the withdrawal of which will not deplete the flow of a natural stream.
   2. Geothermal resources associated with nontributary groundwater are not [considered to be] separate from the groundwater.

• Geothermal resources will be regulated by the Commission if operations are deep (>2500 ft) and not involving Denver Basin aquifers,
  • or regulated by State Engineer if operations are shallow and not relative to tributary waters.
  • Commission shall carry out a Technical study of potential as an emerging technology, including evaluation of potential impacts on environment and publlc health.
  • Must consider potential impacts to ozone nonattainment areas and mitigation measures.
  • Commission and State Engineer shall collaborate on a study of the regulatory structure for geothermal resources.
• Underground natural gas storage facilities proposed to be sited in an area that is DIC must consider the incremental impacts to public health and environment. Must be evaluated and addressed in siting proposal and a mitigation plan included if needed.
• Commission shall conduct a study of hydrogen resources regulation including underground storage, transportation through pipelines, safety and adverse impacts and report to public and legislature. Must consider potential cumulative impacts on environment and climate associated with developing resources.
• Commission shall coordinate a study with PUC of pipeline siting, safety, protective regulations, jurisdictional gaps and report to public and legislature. Must consider potential cumulative impacts arising out of use and siting of pipelines.

League position on Energy includes the use of a variety of energy sources, with emphasis on conserving energy and using energy-efficient technologies. 

LWVCO is committed to equity and engaging all individuals, households, communities, and policy makers in creating a more perfect democracy.  This bill has been amended to require siting decisions for underground natural gas storage in DIC areas to consider the incremental impacts on public health and environment. 

Effective July 1, 2023, the bill changes the name of the oil and gas
conservation commission to the energy and carbon management
commission (commission) and expands the commission's regulatory
authority to include the authority to regulate a broader scope of energy
and carbon management areas beyond oil and gas (section 1 of the bill).
The bill also changes the name of the oil and gas conservation and
environmental response fund to the energy and carbon management cash
fund (fund) and allows the fund to also be used by the commission for the
purposes of administering the expanded regulatory areas (section 2).
Current law states that the property right to the natural heat of the
earth (geothermal resource) that lacks sufficient fluid associated with the
geothermal resource (geothermal fluid) to transport commercial amounts
of energy to the surface is an incident of ownership of the overlying
surface unless expressly severed. Section 6 states that, as to property
rights acquired on or after July 1, 2023, the property right to a geothermal
resource associated with nontributary groundwater (allocated geothermal
resource) is also an incident of ownership of the overlying surface unless
expressly severed.
Current law requires, prior to constructing a well to explore for or
produce geothermal resources, the operator of the well to obtain a permit
from the state engineer. Section 7 defines different types of geothermal
operations and bifurcates regulation of the different operations between
the commission and the state engineer. Specifically, the commission is
granted the exclusive authority to regulate operations (deep geothermal
operations) for the exploration for or production of:
  • An allocated geothermal resource; or
  • A geothermal resource that is deeper than 2,500 feet below
the surface.
The state engineer retains the exclusive authority to regulate
operations that are not deep geothermal operations (shallow geothermal
operations).
Prior to obtaining a permit from the commission to construct a well
for deep geothermal operations, the applicant must provide evidence of
any applicable siting application to the local government with jurisdiction
over the deep geothermal operations, unless the local government does
not regulate the siting of such operations. The commission and the state
engineer may adopt rules for the assessment of fees for the processing and
granting of a permit to construct a well for deep geothermal operations or
shallow geothermal operations, as applicable. Any fees collected by the
commission will be deposited by the state treasurer into the fund.
Current law requires, prior to the production of geothermal fluid
from a well, the operator of the well to obtain a permit from the state
engineer. Section 8 instead requires:
  • A permit from the state engineer prior to the use of a
geothermal resource that is not an allocated geothermal
resource (distributed geothermal resource);
  • The state engineer to issue the permit for the use of a
distributed geothermal resource after a determination that
the proposed use is in accordance with applicable
requirements for groundwater wells;
  • A permit from the state engineer prior to the use of an
allocated geothermal resource; and
  • The state engineer to issue a permit for the use of an
allocated geothermal resource after a finding that any
associated geothermal fluid is nontributary.
Current law allows the state engineer to adopt procedures that
establish geothermal management districts for the management of
geothermal operations within the district. Section 9 limits the scope of
geothermal management districts to distributed geothermal resources. The
state engineer is also required to notify the commission of any application
for a geothermal management district that is anticipated to affect deep
geothermal operations.
Section 10 allows the commission to adopt procedures by rule to
establish geothermal resource units for allocated geothermal resources.
Section 12 grants the commission the exclusive authority to
regulate any intrastate facility that stores natural gas in an underground
facility that is not a pipeline facility subject to regulation by the public
utilities commission (UNGS facility). If the commission submits a
certification to, or enters into an agreement with, the federal secretary of
transportation pursuant to applicable federal law, any rules regulating
UNGS facilities must be at least as stringent as the applicable federal
requirements. Before commencing construction of a new UNGS facility,
the operator of the facility must provide evidence of any applicable siting
application to a local government with jurisdiction over the UNGS
facility, if applicable.
The commission may assess and collect fees from operators of
UNGS facilities in an amount and frequency determined by the
commission by rule. Any fees collected will be deposited into the fund.
The bill directs the commission to conduct the following studies,
prepare reports summarizing the findings of the studies, and submit the
reports to the general assembly:
  • A technical study of the state's geothermal resources
(section 10);
  • A study, in collaboration with the state engineer, that
evaluates the state regulatory structure for geothermal
resources and whether any changes to law or rules are
necessary (section 10);
  • A study concerning the regulation and permitting of
hydrogen (section 18); and
  • A study, in coordination with the public utilities
commission, examining the siting and regulation of
interstate pipelines (section 18).
Sections 19 through 42 make conforming amendments.

• May 02, 2023: House Appropriations Committee Report
• April 27, 2023: House Energy & Environment Committee Report
• April 24, 2023: Senate Appropriations Committee Report
• April 19, 2023: Senate Agriculture & Natural Resources Committee Report

This bill updates transparency, rulemaking, and rate filing requirements for certain electric and gas utilities. It makes changes to how utilities set rates and recover costs from consumers. It commissions two studies and directs the PUC in the Department of Regulatory Agencies to adopt rules as follows:

It requires the Public Utility Commission, when relying on a discount rate when calculating the net present value of future fuel costs as part of a utility's electric resource plan, the PUC must apply a discount rate that does not exceed the long-term rate of inflation.

The bill requires the PUC to establish guidelines to limit the amount of rate case expenses that an investor-owned electic or gas utility may recover from the utility's customers.

The bill prohibits an investor-owned electric or gas utility from recovering the following costs from its customers:

--More than 50% of annual total compensation or expenses reimbursements for a utility's board directors;

--Tax penalties or fines issued against the utility 

--Certain advertisement and public relation expenses;

--Lobbying and other expenses intended to influence the outcome of local, state, or federal legislation or ballot measure;

--Certain organizational and membership dues;

--Travel, lodging, food or beverage expenses for the utility's board of directors and officers and officers; and

--Gift or entertainment expenses.

If an investor owned utility recovers prohibited costs, the PUC must assess a nonrecoverable penalty against the utility in an amount that is not less than than the total amount improperly recovered, to its customers, plus interest.

In addition, By November 1, 2023 an investor owned gas utility must file with the PUC, for PUC approval, amendment, or denial a gas price risk management plan with proposals for addressing the volatility of fuel costs recovered from the utilitiy's rate payers.

By January 1, 2025 the PUC must adopt rules to:

-- Protect investor-owned gas utility customers from the volatility of gas prices by establishing a mechanism that aligns with investor owned utility's financial incentives with the financial interests of its customers.

--Establish a rule to create a financial incentive for an investor-owned utility to improve its electricity production cost efficiency while minimizing its fuel costs. The PUC may, as part of the rules, consider requiring each investor-owned electric utility to bear a percentage of its total fuel costs to incentivize the utility to find efficiencies  and reduce fuel waste.

The PUC must also open a proceeding to investigate the extent to which residential and other development in certain Colorado areas drive natural gas infrastructure costs for any natural gas utility that serves 500,000 customers in the state. It must set a March 1, 2024 public hearing with results given to the General Assembly by December 1, 2024.

By December 31, 2023 each regulated gas utility must remove from the utility rate's taxes any incentives offered to an applicant applying for natural gas service to establish gas service to a property:

--The Colorado Energy Office must by July 1, 2024 evaluate in a commissioned study, the risk that stranded or underutilized natural gas infrastructure investments pose and the annual projected rate impact that such stranded assets have on ratepayers;

--The PUC must determine whether any changes to rules or depreciation schedules are warranted based on its review of the evaluation contracted by the Energy Office;

--An investor-owned gas utility to provide the PUC a study with risk management information, and a map about the utility's gas distribution system of pipes by November 1, 2023;

--An investor-owned utility to refrain from penalizing or charging a fee to a customer voluntary terminates gas service. The PUC may adopt rules to establish standards for that voluntary disconnection the customer disconnection from the gas utility's gas distribution system;

--By July 1, 2024 the PUC must examine in a study, investor-owned electric utility taxes, policies and practices to determine if they pose a barrier to the beneficial electrification of buildings with respect to charges imposed for the cost of transformer or service upgrades.  

The bill authorizes the PUC to allow a wholesale customer of an investor-owned utility to intervene in a proceeding regarding the PUC's consideration of the investor-owned utility's application for cost recovery from customers.

League supports policies to reduce energy demand and minimize the need for new generating capacity through techniques like marginal cost and reduction of energy growth rates; the environmentally sound use of energy resources with consideration of the entire cycle of energy production; and this is also a JEDI bill.

LWVCO Supports this bill.

Section 1 of the bill requires the public utilities commission
(commission), if relying on a discount rate when calculating the net
present value of future fuel costs as part of a utility's electric resource
plan, to apply a discount rate that does not exceed the long-term rate of
inflation.
Section 2 requires the commission to establish mechanisms,
guidelines, or rules to limit the amount of rate case expenses that an
investor-owned electric or gas utility may recover from the utility's
customers.
Section 3 prohibits an investor-owned electric or gas utility from
recovering various costs from its customers, including:
  • More than 50% of annual total compensation or of expense
reimbursement for a utility's board of directors;
  • Tax penalties or fines issued against the utility;
  • Certain advertising and public relations expenses;
  • Lobbying and other expenses intended to influence the
outcome of local, state, or federal legislation or ballot
measures;
  • Certain organizational and membership dues;
  • Travel, lodging, food, or beverage expenses for the utility's
board of directors and officers; and
  • Gift or entertainment expenses.
If an investor-owned utility recovers prohibited costs, the
commission is required to assess a nonrecoverable penalty against the
utility in an amount that is not less than the total amount improperly
recovered and order the utility to refund the amount improperly recovered
to its customers, plus interest.
Section 4 requires that, on or before November 1, 2023, an
investor-owned gas utility file with the commission for the commission's
approval, amendment, or denial a gas price risk management plan that
includes proposals for addressing the volatility of fuel costs recovered
from the utility's ratepayers.
Section 4 requires the commission to adopt rules, on or before
January 1, 2025, to:
  • Help protect investor-owned gas utility customers from the
volatility of gas prices by establishing a mechanism that
aligns an investor-owned utility's financial incentives with
the financial interests of its customers; and
  • Establish a mechanism to create a financial incentive for an
investor-owned utility to improve its electricity production
cost efficiency while minimizing its fuel costs.
As part of its rules, the commission may also consider requiring
each investor-owned electric utility to bear a percentage of its total fuel
costs in order to incentivize the utility to find efficiencies and reduce fuel
waste.
Section 4 also requires the commission to open a proceeding to
investigate the extent to which residential and other development in
certain geographic areas drive natural gas infrastructure costs for any
natural gas utility that serves more than 500,000 customers in the state.
Section 5 requires:
  • On or before December 31, 2023, each regulated gas utility
to remove from the utility's rate tariffs any incentives
offered to an applicant applying for natural gas service to
establish gas service to a property;
  • The Colorado energy office to contract with an independent
third party, on or before July 1, 2024, to evaluate the risk
that stranded or underutilized natural gas infrastructure
investments pose and the annual projected rate impact that
such stranded assets have on ratepayers;
  • The commission to determine whether any changes to rules
or depreciation schedules are warranted based on its review
of the evaluation contracted by the Colorado energy office;
  • An investor-owned gas utility to provide the commission
information, including a map, about the utility's gas
distribution system pipes;
  • An investor-owned gas utility to refrain from penalizing or
charging a fee to a customer that voluntarily terminates gas
service. The commission may adopt rules to establish
standards for a customer's voluntary disconnection from an
investor-owned gas utility's gas distribution system.
  • On or before July 1, 2024, the commission to examine
existing investor-owned electric utility tariffs, policies, and
practices to determine if the tariffs, policies, and practices
pose a barrier to the beneficial electrification of buildings
with respect to charges imposed for the cost of transformer
or service upgrades.
Section 6 authorizes the commission to allow a wholesale
customer of an investor-owned utility to intervene in a proceeding
regarding the commission's consideration of the investor-owned utility's
application for cost recovery from customers.

• May 03, 2023: House Appropriations Committee Report
• May 01, 2023: House Finance Committee Report
• April 21, 2023: Senate Appropriations Committee Report
• April 20, 2023: Senate Finance Committee Report

The bill creates the Colorado River Drought Task Force, which is tasked with developing recommendations for legislation that will provide tools to address drought in the Colorado River Basin. The 15-member task force is comprised of representatives from state agencies, local governments, tribal representatives, water engineers, agricultural and environmental interests, and other stakeholders. 

The sponsors are all west slope legislators: Senators Roberts and Will, Reps McCluskie and Caitlin.

Fiscal note says $200,000 for the one-year task force to get its work accomplished.

LWV positions on water quantity and quality, as well as conservation of natural resources, apply to this bill.

The bill creates the Colorado river drought task force (task force).
The members of the task force must, to the extent practicable, reflect the
racial and ethnic diversity of the state and have experience with a wide
range of water issues. The task force must begin meeting no later than
July 31, 2023, and may hold up to 12 meetings in the 2023 legislative
interim.
The purpose of the task force is to develop recommendations for
state legislation that provides additional tools for the Colorado water
conservation board to collaborate with the Colorado river water
conservation district, the southwestern water conservation district, and
other relevant stakeholders in the development of programs that address
drought in the Colorado river basin and interstate commitments related to
the Colorado river and its tributaries through conservation of the waters
of the Colorado river and its tributaries (recommendations).
No later than December 15, 2023, the task force must submit a
written report that includes the recommendations and a summary of the
task force's work to the water resources and agriculture review
committee.

• May 04, 2023: House Appropriations Committee Report
• May 03, 2023: House Agriculture, Water & Natural Resources Committee Report
• April 28, 2023: Senate Appropriations Committee Report
• April 26, 2023: Senate Agriculture & Natural Resources Committee Report