First Regular Session Seventy-second General Assembly STATE OF COLORADO REREVISED This Version Includes All Amendments Adopted in the Second House HOUSE BILL 19-1261 LLS NO. 19-0339.01 Thomas Morris x4218 HOUSE SPONSORSHIP Becker and Jackson, Jaquez Lewis, Bird, Cutter, Duran, Froelich, Galindo, Hooton, Kennedy, Kipp, Melton, Roberts, Singer, Sirota, Snyder, Sullivan, Tipper, Titone, Valdez A., Weissman, Arndt, Benavidez, Buckner, Buentello, Caraveo, Exum, Gonzales-Gutierrez, Gray, Hansen, Lontine, McCluskie, Michaelson Jenet, Mullica SENATE SPONSORSHIP A BILL FOR AN ACT CONCERNING THE REDUCTION OF GREENHOUSE GAS POLLUTION, AND, 102 IN 103 GREENHOUSE GAS POLLUTION REDUCTION GOALS AND MAKING 104 AN APPROPRIATION. CONNECTION THEREWITH, ESTABLISHING STATEWIDE (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.) Section 1 of the bill states that Colorado shall have statewide goals to reduce 2025 greenhouse gas emissions by at least 26%, 2030 greenhouse gas emissions by at least 50%, and 2050 greenhouse gas Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute. HOUSE Bill Summary HOUSE Amended 2nd Reading April 15, 2019 101 April 16, 2019 State, Veterans, & Military Affairs Appropriations SENATE Amended 2nd Reading April 30, 2019 Senate Committees Energy & Environment Appropriations 3rd Reading Unamended House Committees SENATE 3rd Reading Unamended May 1, 2019 Winter and Williams A., Moreno, Bridges, Court, Danielson, Donovan, Fenberg, Fields, Foote, Ginal, Gonzales, Lee, Pettersen, Story, Todd, Zenzinger emissions by at least 90% of the levels of greenhouse gas emissions that existed in 2005. Section 3 specifies considerations that the air quality control commission is to take into account in implementing policies and promulgating rules to reduce greenhouse gas pollution, including the benefits of compliance and the equitable distribution of those benefits, the costs of compliance, opportunities to incentivize clean energy in transitioning communities, and the potential to enhance the resilience of Colorado's communities and natural resources to climate impacts. The commission will consult with the public utilities commission with regard to rules that affect the providers of retail electricity in Colorado. 1 2 3 Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, amend 25-7-102 as follows: 4 25-7-102. Legislative declaration. (1) In order to foster the 5 health, welfare, convenience, and comfort of the inhabitants of the state 6 of Colorado and to facilitate the enjoyment and use of the scenic and 7 natural resources of the state, it is declared to be the policy of this state to 8 achieve the maximum practical degree of air purity in every portion of the 9 state, to attain and maintain the national ambient air quality standards, and 10 to prevent the significant deterioration of air quality in those portions of 11 the state where the air quality is better than the national ambient air 12 quality standards. To that end, it is the purpose of this article ARTICLE 7 13 to require the use of all available practical methods which are 14 technologically feasible and economically reasonable so as to reduce, 15 prevent, and control air pollution throughout the state of Colorado; to 16 require the development of an air quality control program in which the 17 benefits of the air pollution control measures utilized bear a reasonable 18 relationship to the economic, environmental, and energy impacts and 19 other costs of such measures; and to maintain a cooperative program -2- 1261 1 between the state and local units of government. It is further declared that 2 the prevention, abatement, and control of air pollution in each portion of 3 the state are matters of statewide concern and are affected with a public 4 interest and that the provisions of this article ARTICLE 7 are enacted in the 5 exercise of the police powers of this state for the purpose of protecting 6 the health, peace, safety, and general welfare of the people of this state. 7 The general assembly further recognizes that a current and accurate 8 inventory of actual emissions of air pollutants from all sources is essential 9 for the proper identification and designation of attainment and 10 nonattainment areas, the determination of the most cost-effective 11 regulatory strategy to reduce pollution, the targeting of regulatory efforts 12 to achieve the greatest health and environmental benefits, and the 13 achievement of a federally approved clean air program. In order to 14 achieve the most accurate inventory of air pollution sources possible, this 15 article 16 accurate and complete inventory possible and to provide for the most 17 accurate enforcement program achievable based upon that inventory. ARTICLE 7 specifically provides incentives to achieve the most 18 (2) IT IS FURTHER DECLARED THAT: 19 (a) CLIMATE CHANGE ADVERSELY AFFECTS COLORADO'S 20 ECONOMY, AIR QUALITY AND PUBLIC HEALTH, ECOSYSTEMS, NATURAL 21 RESOURCES, AND QUALITY OF LIFE; 22 (b) COLORADO IS ALREADY EXPERIENCING HARMFUL CLIMATE 23 IMPACTS, INCLUDING DECLINING SNOWPACK, PROLONGED DROUGHT, MORE 24 EXTREME HEAT, ELEVATED WILDFIRE RISK AND RISK TO FIRST 25 RESPONDERS, WIDESPREAD BEETLE INFESTATION DECIMATING FORESTS, 26 INCREASED RISK OF VECTOR-BORNE DISEASES, MORE FREQUENT AND 27 SEVERE FLOODING, MORE SEVERE GROUND-LEVEL OZONE POLLUTION -3- 1261 1 CAUSING RESPIRATORY DAMAGE AND LOSS OF LIFE, DECREASED ECONOMIC 2 ACTIVITY FROM OUTDOOR RECREATION AND AGRICULTURE, AND 3 DIMINISHED 4 DISPROPORTIONATELY AFFECT RURAL COMMUNITIES, COMMUNITIES OF 5 COLOR, YOUTH AND THE ELDERLY, AND WORKING FAMILIES. 6 STATEWIDE GREENHOUSE GAS POLLUTION AS OUTLINED IN THIS 7 SUBSECTION 8 RESPONDERS, AND ALL 9 CLIMATE IMPACTS. 10 (c) QUALITY (2) OF LIFE . M ANY OF THESE IMPACTS REDUCING WILL PROTECT THESE FRONTLINE COMMUNITIES, FIRST WE COLORADO RESIDENTS FROM THESE AND OTHER MUST WORK TOGETHER TO REDUCE STATEWIDE 11 GREENHOUSE GAS POLLUTION IN ORDER TO LIMIT THE INCREASE IN THE 12 GLOBAL AVERAGE TEMPERATURE TO ONE AND ONE-HALF DEGREES 13 CELSIUS, WHICH SCIENTISTS AGREE WOULD PROVIDE A MORE STABLE AND 14 HOSPITABLE CLIMATE FOR CURRENT AND FUTURE GENERATIONS AND 15 MITIGATE THE RISK OF CATASTROPHIC CLIMATE IMPACTS IN COLORADO; 16 (d) BY REDUCING GREENHOUSE GAS POLLUTION, COLORADO WILL 17 ALSO REDUCE OTHER HARMFUL AIR POLLUTANTS WHICH WILL, IN TURN, 18 IMPROVE PUBLIC HEALTH, REDUCE HEALTH CARE COSTS, IMPROVE AIR 19 QUALITY, AND HELP SUSTAIN THE ENVIRONMENT; 20 (e) REDUCING GREENHOUSE GAS POLLUTION WILL CREATE NEW 21 MARKETS, SPUR INNOVATION, DRIVE INVESTMENTS IN LOW-CARBON 22 TECHNOLOGIES, AND PUT 23 MODERN, RESILIENT, ONE-HUNDRED-PERCENT CLEAN ECONOMY. DELAY 24 IN PURSUING AND SECURING GREENHOUSE GAS REDUCTIONS AS OUTLINED 25 IN THIS SUBSECTION 26 CAPTURING THE BENEFITS OF THESE NEW JOBS AND MARKETS, IN ADDITION 27 TO EXACERBATING THE CLIMATE IMPACTS THAT HARM COLORADANS. THE COLORADO SQUARELY ON THE PATH TO A (2) WILL PREVENT COLORADO COMMUNITIES FROM -4- 1261 1 CLEAN ENERGY ECONOMY IS ALREADY BRINGING TENS OF THOUSANDS OF 2 JOBS AND BILLIONS OF DOLLARS IN DIRECT INVESTMENT TO COUNTIES 3 ACROSS THE STATE, BENEFITTING WORKERS, FAMILIES, AND COMMUNITIES. 4 COLORADO CAN CONTINUE TO FACILITATE SUCH A TRANSITION TO A CLEAN 5 ENERGY ECONOMY. FOOD AND FIBER PRODUCTION HAS MADE SIGNIFICANT 6 ACHIEVEMENTS IN AREAS OF PRODUCTIVITY AND SUSTAINABILITY. 7 MODERN TECHNOLOGY IN THIS SECTOR CONTRIBUTES TO REDUCTIONS IN 8 GREENHOUSE GAS EMISSIONS BY SEQUESTERING CARBON IN THE SOIL AND 9 ENHANCING SUSTAINABILITY THROUGH TECHNOLOGIES THAT REDUCE 10 METHANE EMISSIONS AND PRODUCE RENEWABLE ENERGY. CONTINUING TO 11 ENCOURAGE THESE TYPES OF ACHIEVEMENTS IS BENEFICIAL. 12 (f) BY EXERCISING A LEADERSHIP ROLE, COLORADO WILL ALSO 13 POSITION ITS ECONOMY, TECHNOLOGY CENTERS, FINANCIAL INSTITUTIONS, 14 AND BUSINESSES TO BENEFIT FROM NATIONAL AND INTERNATIONAL 15 EFFORTS TO REDUCE GREENHOUSE GASES; 16 (g) ACCORDINGLY, COLORADO SHALL STRIVE TO INCREASE 17 RENEWABLE 18 GREENHOUSE GAS POLLUTION BY THE MIDDLE OF THE TWENTY-FIRST 19 CENTURY AND HAVE GOALS OF ACHIEVING, AT A MINIMUM, A 20 TWENTY-SIX-PERCENT REDUCTION IN STATEWIDE GREENHOUSE GAS 21 POLLUTION BY 22 GREENHOUSE GAS POLLUTION BY 23 REDUCTION IN STATEWIDE GREENHOUSE GAS POLLUTION BY 24 REDUCTIONS IDENTIFIED IN THIS SUBSECTION 25 RELATIVE TO 2005 STATEWIDE GREENHOUSE GAS POLLUTION LEVELS. 26 27 ENERGY 2025, GENERATION AND ELIMINATE STATEWIDE A FIFTY-PERCENT REDUCTION IN STATEWIDE 2030, AND A NINETY-PERCENT (2)(g) 2050. THE ARE MEASURED SECTION 2. In Colorado Revised Statutes, 25-7-103, amend the introductory portion; and add (22.5) as follows: -5- 1261 1 2 3 25-7-103. Definitions. As used in this article ARTICLE 7, unless the context otherwise requires: (22.5) "STATEWIDE GREENHOUSE GAS POLLUTION" MEANS THE 4 TOTAL NET STATEWIDE ANTHROPOGENIC EMISSIONS OF CARBON DIOXIDE, 5 METHANE, 6 PERFLUOROCARBONS , 7 HEXAFLUORIDE, 8 CALCULATED USING A METHODOLOGY AND DATA ON RADIATIVE FORCING 9 AND ATMOSPHERIC PERSISTENCE DEEMED APPROPRIATE BY THE 10 11 12 NITROUS OXIDE, TRIFLUORIDE , NITROGEN EXPRESSED AS HYDROFLUOROCARBONS, CARBON DIOXIDE AND SULFUR EQUIVALENT COMMISSION. SECTION 3. In Colorado Revised Statutes, 25-7-105, amend (1) introductory portion; and add (1)(e) as follows: 13 25-7-105. Duties of commission - rules - legislative declaration 14 - definitions. (1) Except as provided in sections 25-7-130 and 25-7-131, 15 the commission shall promulgate such rules and regulations as are 16 consistent with the legislative declaration set forth in section 25-7-102 17 and necessary for the proper implementation and administration of this 18 article ARTICLE 7, including, but not limited to: 19 (e) (I) STATEWIDE GREENHOUSE GAS POLLUTION ABATEMENT. 20 (II) CONSISTENT WITH SECTION 25-7-102 (2)(g), THE COMMISSION 21 SHALL TIMELY PROMULGATE IMPLEMENTING RULES AND REGULATIONS. 22 THE IMPLEMENTING RULES MAY TAKE INTO ACCOUNT OTHER RELEVANT 23 LAWS AND RULES, AS WELL AS VOLUNTARY ACTIONS TAKEN BY LOCAL 24 COMMUNITIES AND THE PRIVATE SECTOR, TO ENHANCE EFFICIENCY AND 25 COST-EFFECTIVENESS, AND SHALL BE REVISED AS NECESSARY OVER TIME 26 TO ENSURE TIMELY PROGRESS TOWARD THE 2025, 2030, AND 2050 GOALS. 27 THE IMPLEMENTING RULES SHALL PROVIDE FOR ONGOING TRACKING OF -6- 1261 1 EMISSION SOURCES THAT ADVERSELY AFFECT DISPROPORTIONATELY 2 IMPACTED COMMUNITIES AND ARE SUBJECT TO RULES IMPLEMENTED 3 PURSUANT TO THIS SUBSECTION 4 DESIGNED TO ACHIEVE REDUCTIONS IN HARMFUL AIR POLLUTION 5 AFFECTING THOSE COMMUNITIES. 6 (III) THE (1)(e) AND MUST INCLUDE STRATEGIES COMMISSION WILL IDENTIFY DISPROPORTIONATELY 7 IMPACTED COMMUNITIES. IN IDENTIFYING THESE COMMUNITIES, THE 8 COMMISSION WILL CONSIDER: 9 INDIGENOUS POPULATIONS IN THE STATE THAT POTENTIALLY EXPERIENCE MINORITY, LOW-INCOME, TRIBAL, OR 10 DISPROPORTIONATE 11 DISPROPORTIONALITY CAN BE A RESULT OF INCREASED VULNERABILITY TO 12 ENVIRONMENTAL DEGRADATION, LACK OF OPPORTUNITY FOR PUBLIC 13 PARTICIPATION, OR OTHER FACTORS. INCREASED VULNERABILITY MAY BE 14 ATTRIBUTABLE TO AN ACCUMULATION OF NEGATIVE OR LACK OF POSITIVE 15 ENVIRONMENTAL, HEALTH, ECONOMIC, OR SOCIAL CONDITIONS WITHIN 16 THESE POPULATIONS. "DISPROPORTIONATELY IMPACTED COMMUNITIES" 17 DESCRIBES SITUATIONS WHERE MULTIPLE FACTORS, INCLUDING BOTH 18 ENVIRONMENTAL 19 CUMULATIVELY TO AFFECT HEALTH AND THE ENVIRONMENT AND 20 CONTRIBUTE TO PERSISTENT ENVIRONMENTAL HEALTH DISPARITIES. ENVIRONMENTAL AND HARMS SOCIO-ECONOMIC AND RISKS . STRESSORS, THIS MAY ACT 21 (IV) THE DIVISION, AT THE DIRECTION OF THE COMMISSION, SHALL 22 SOLICIT INPUT FROM OTHER STATE AGENCIES, STAKEHOLDERS, AND THE 23 PUBLIC ON THE ADVANTAGES OF DIFFERENT STATEWIDE GREENHOUSE GAS 24 POLLUTION MITIGATION MEASURES, SPECIFICALLY SOLICITING INPUT FROM 25 THOSE 26 DISPROPORTIONATELY 27 SOURCES; WORKERS IN RELEVANT INDUSTRIES, INCLUDING ADVANCED MOST IMPACTED BY CLIMATE IMPACTED CHANGE , COMMUNITIES; -7- INCLUDING LARGE EMISSION 1261 1 ENERGY AND FUEL DELIVERY; AND COMMUNITIES THAT ARE CURRENTLY 2 ECONOMICALLY DEPENDENT ON INDUSTRIES WITH HIGH LEVELS OF 3 GREENHOUSE GAS EMISSIONS. 4 (V) THE IMPLEMENTING RULES AND POLICIES MAY INCLUDE, IN 5 ADDITION 6 REGULATORY STRATEGIES THAT HAVE BEEN DEPLOYED BY ANOTHER 7 JURISDICTION TO REDUCE MULTI-SECTOR GREENHOUSE GAS EMISSIONS, 8 THAT FACILITATE ADOPTION OF TECHNOLOGIES THAT HAVE VERY LOW OR 9 ZERO EMISSIONS, AND THAT ENHANCE COST-EFFECTIVENESS, COMPLIANCE 10 FLEXIBILITY, AND TRANSPARENCY AROUND COMPLIANCE COSTS, AMONG 11 OTHER REGULATORY STRATEGIES. 12 WITH OTHER JURISDICTIONS IN SECURING EMISSION REDUCTIONS, 13 INCLUDING IN SATISFYING FUTURE FEDERAL REGULATIONS. 14 COMMISSION MAY ACCOUNT FOR REDUCTIONS IN NET GREENHOUSE GAS 15 EMISSIONS THAT OCCUR UNDER COORDINATED JURISDICTIONS' PROGRAMS 16 IF THE COMMISSION FINDS THAT THE IMPLEMENTING REGULATIONS OF 17 EACH COORDINATED JURISDICTION ARE OF SUFFICIENT RIGOR TO ENSURE 18 THE INTEGRITY OF THE REDUCTIONS IN GREENHOUSE GAS EMISSIONS TO 19 THE ATMOSPHERE AND MAY ACCOUNT FOR CARBON DIOXIDE THAT 20 ELECTRICITY CONSUMPTION IN THIS STATE CAUSES TO BE EMITTED 21 ELSEWHERE. 22 (VI) TO IN RENEWABLE ENERGY THE DEVELOPMENT STRATEGIES, COMMISSION MAY COORDINATE THE CARRYING OUT ITS RESPONSIBILITIES UNDER THIS 23 SUBSECTION (1)(e), THE COMMISSION SHALL CONSIDER: THE BENEFITS OF 24 COMPLIANCE, INCLUDING HEALTH, ENVIRONMENTAL, AND AIR QUALITY; 25 THE COSTS OF COMPLIANCE; ECONOMIC AND JOB IMPACTS AND 26 OPPORTUNITIES; THE TIME NECESSARY FOR COMPLIANCE; THE RELATIVE 27 CONTRIBUTION OF EACH SOURCE OR SOURCE CATEGORY TO STATEWIDE -8- 1261 1 GREENHOUSE GAS POLLUTION BASED ON CURRENT DATA UPDATED AT 2 REASONABLE INTERVALS 3 HARMONIZING EMISSION REPORTING REQUIREMENTS WITH EXISTING 4 FEDERAL REQUIREMENTS, WHERE THE COMMISSION DEEMS APPROPRIATE; 5 THE IMPORTANCE OF STRIVING TO EQUITABLY DISTRIBUTE THE BENEFITS 6 OF COMPLIANCE, OPPORTUNITIES TO INCENTIVIZE RENEWABLE ENERGY 7 RESOURCES 8 DISPROPORTIONATELY IMPACTED COMMUNITIES, OPPORTUNITIES TO 9 ENCOURAGE CLEAN ENERGY IN TRANSITIONING COMMUNITIES; ISSUES 10 RELATED TO THE BENEFICIAL USE OF ELECTRICITY TO REDUCE 11 GREENHOUSE GAS EMISSIONS; WHETHER PROGRAM DESIGN COULD 12 ENHANCE THE RELIABILITY OF ELECTRIC SERVICE; THE POTENTIAL TO 13 ENHANCE THE RESILIENCE OF COLORADO'S COMMUNITIES AND NATURAL 14 RESOURCES TO CLIMATE IMPACTS; AND WHETHER GREATER OR MORE 15 COST-EFFECTIVE EMISSION REDUCTIONS ARE AVAILABLE THROUGH 16 PROGRAM DESIGN. 17 (VII) AND AS DETERMINED BY THE COMMISSION; POLLUTION ABATEMENT NOTWITHSTANDING SECTION OPPORTUNITIES 24-1-136 (11)(a)(I), IN THE 18 DIVISION, AT THE DIRECTION OF THE COMMISSION, SHALL REPORT TO THE 19 GENERAL ASSEMBLY EVERY ODD-NUMBERED YEAR AFTER THE EFFECTIVE 20 DATE OF THIS SUBSECTION 21 GOALS SET FORTH IN SECTION 25-7-102 22 FINAL COST-BENEFIT OR REGULATORY ANALYSIS, DEVELOPED UNDER 23 SECTION 24 GOALS; AND ANY RECOMMENDATIONS ON FUTURE LEGISLATIVE ACTION TO 25 ADDRESS CLIMATE CHANGE, SUCH AS IMPLEMENTATION OF CLIMATE 26 ADAPTATION POLICIES OR ACCELERATING DEPLOYMENT OF CLEANER 27 TECHNOLOGIES. (1)(e) REGARDING: PROGRESS TOWARD THE (2)(g); ANY NEWLY AVAILABLE, 24-4-103 (2.5) OR (4.5), FOR RULES ADOPTED -9- TO ATTAIN THE 1261 1 (VIII) (A) IN CARRYING OUT ITS RESPONSIBILITIES UNDER THIS 2 SUBSECTION (1)(e), THE COMMISSION SHALL CONSULT WITH THE PUBLIC 3 UTILITIES COMMISSION, INCLUDING ON ISSUES OF COST OF ELECTRICITY, 4 RELIABILITY OF ELECTRIC SERVICE, TECHNOLOGY DEVELOPMENTS IN 5 ELECTRICITY PRODUCTION, AND BENEFICIAL ELECTRIFICATION, AND KEEP 6 A RECORD OF ITS CONSULTATION. 7 (B) THE GENERAL ASSEMBLY HEREBY FINDS, DETERMINES, AND 8 DECLARES THAT IT IS BENEFICIAL TO ENCOURAGE THE DEVELOPMENT OF 9 CLEAN ENERGY PLANS THAT WILL REQUIRE GREENHOUSE GAS EMISSIONS 10 CAUSED BY COLORADO RETAIL ELECTRICITY SALES TO DECREASE EIGHTY 11 PERCENT BY 12 COST-EFFECTIVE AND PROACTIVE DEPLOYMENT OF CLEAN ENERGY 13 RESOURCES. 14 2030 RELATIVE TO 2005 LEVELS TO PROVIDE FOR THE (C) IN DESIGNING, IMPLEMENTING, AND ENFORCING PROGRAMS 15 AND REQUIREMENTS UNDER THIS SUBSECTION 16 AND THE DIVISION SHALL TAKE INTO CONSIDERATION ANY CLEAN ENERGY 17 PLAN AT THE PUBLIC UTILITIES COMMISSION THAT, AS FILED, WILL ACHIEVE 18 AT LEAST AN EIGHTY-PERCENT REDUCTION IN GREENHOUSE GAS EMISSIONS 19 CAUSED BY THE UTILITY'S COLORADO RETAIL ELECTRICITY SALES BY 2030 20 RELATIVE TO 21 INCLUDING PUBLIC UTILITIES IN ITS PROGRAMS OR REQUIREMENTS UNDER 22 THIS SUBSECTION 23 PUBLIC UTILITY REDUCE GREENHOUSE GAS EMISSIONS CAUSED BY THE 24 UTILITY'S COLORADO RETAIL ELECTRICITY SALES BY 2030 MORE THAN IS 25 REQUIRED UNDER SUCH AN APPROVED CLEAN ENERGY PLAN OR IMPOSE 26 ANY DIRECT, NONADMINISTRATIVE COST ON THE PUBLIC UTILITY DIRECTLY 27 ASSOCIATED WITH QUANTITIES OF GREENHOUSE GAS EMISSIONS CAUSED 2005 (1)(e), THE COMMISSION LEVELS, AS VERIFIED BY THE DIVISION. WHEN (1)(e), THE COMMISSION SHALL NOT MANDATE THAT A -10- 1261 1 BY THE UTILITY'S COLORADO RETAIL ELECTRICITY SALES THAT REMAIN 2 AFTER THE REDUCTIONS REQUIRED BY SUCH A CLEAN ENERGY PLAN 3 THROUGH 2030 IF THOSE REDUCTIONS ARE ACHIEVED AND THE DIVISION 4 HAS VERIFIED THAT THE APPROVED CLEAN ENERGY PLAN WILL ACHIEVE AT 5 LEAST A SEVENTY-FIVE-PERCENT REDUCTION IN GREENHOUSE GAS 6 EMISSIONS CAUSED BY THE UTILITY'S 7 SALES BY 2030 RELATIVE TO 2005 LEVELS. COLORADO RETAIL ELECTRICITY 8 (D) IMPLEMENTING RULES DEVELOPED BY THE COMMISSION MUST 9 NOT INCLUDE ANY REQUIREMENTS DICTATING THE MIX OF ELECTRIC 10 GENERATING RESOURCES THAT ANY PUBLIC UTILITY SHALL USE TO MEET 11 APPLICABLE POLLUTION LIMITS. 12 (E) IMPLEMENTING RULES DEVELOPED BY THE COMMISSION MUST 13 CONSIDER ISSUES RELATING TO JOINT OWNERSHIP OF ELECTRIC 14 GENERATING RESOURCES AS BETWEEN MULTIPLE PARTIES AND THE EXTENT 15 TO WHICH THE PUBLIC UTILITY IS RELYING ON POWER PURCHASED FROM 16 THIRD PARTIES IN MEETING ITS OBLIGATIONS UNDER SUCH A CLEAN 17 ENERGY PLAN. 18 (F) A CLEAN ENERGY PLAN VOLUNTARILY FILED BY A 19 COOPERATIVE ELECTRIC ASSOCIATION THAT HAS VOTED TO EXEMPT ITSELF 20 FROM REGULATION BY THE PUBLIC UTILITIES COMMISSION PURSUANT TO 21 ARTICLE 9.5 OF TITLE 40 OR BY A MUNICIPAL UTILITY SHALL BE DEEMED 22 APPROVED BY THE PUBLIC UTILITIES COMMISSION AS FILED IF: 23 DIVISION, IN CONSULTATION WITH THE PUBLIC UTILITIES COMMISSION, 24 PUBLICLY VERIFIES THAT THE PLAN DEMONSTRATES THAT, BY 2030, THE 25 COOPERATIVE ELECTRIC ASSOCIATION OR MUNICIPAL UTILITY WILL 26 ACHIEVE AT LEAST AN EIGHTY PERCENT REDUCTION IN GREENHOUSE GAS 27 EMISSIONS CAUSED BY THE ENTITY'S -11- COLORADO THE RETAIL ELECTRICITY 1261 1 SALES RELATIVE TO 2 PREVIOUSLY BEEN APPROVED BY A VOTE OF THE ENTITY'S GOVERNING 3 BODY. 4 COOPERATIVE ELECTRIC ASSOCIATION OR MUNICIPAL UTILITY DOES NOT 5 ALTER THE ENTITY'S REGULATORY STATUS WITH RESPECT TO THE PUBLIC 6 UTILITIES COMMISSION, INCLUDING UNDER ARTICLE 9.5 OF TITLE 40. VOLUNTARY 2005 LEVELS; AND THE CLEAN ENERGY PLAN HAS SUBMISSION OF A CLEAN ENERGY PLAN BY A 7 (IX) (A) IN ADDRESSING GREENHOUSE GAS EMISSIONS FROM AN 8 ENERGY-INTENSIVE, TRADE-EXPOSED MANUFACTURING SOURCE, THE 9 COMMISSION SHALL REQUIRE THE SOURCE TO EXECUTE AN ENERGY AND 10 EMISSION CONTROL AUDIT, ACCORDING TO CRITERIA ESTABLISHED BY THE 11 COMMISSION, OF THE SOURCE'S OPERATIONS EVERY FIVE YEARS THROUGH 12 AT LEAST 13 COMMISSION, SHALL CONDUCT THE AUDIT AND SUBMIT THE RESULTS TO 14 THE COMMISSION. IF THE COMMISSION DETERMINES THAT THE SOURCE 15 CURRENTLY EMPLOYS BEST AVAILABLE EMISSION CONTROL TECHNOLOGIES 16 FOR GREENHOUSE GAS EMISSIONS AND BEST AVAILABLE ENERGY 17 EFFICIENCY PRACTICES, THE COMMISSION SHALL NOT IMPOSE A DIRECT 18 NONADMINISTRATIVE COST ON THE SOURCE DIRECTLY ASSOCIATED WITH 19 AT LEAST NINETY-FIVE PERCENT OF THE SOURCE'S GREENHOUSE GAS 20 EMISSIONS ATTRIBUTABLE TO MANUFACTURING A GOOD IN THIS STATE FOR 21 A PERIOD OF FIVE YEARS, IF THE SOURCE'S EMISSIONS ARE NOT GREATER 22 THAN THE EMISSIONS ASSOCIATED WITH USE OF THE BEST AVAILABLE 23 EMISSION CONTROL TECHNOLOGIES AS DETERMINED BY THE COMMISSION. 24 THE COMMISSION SHALL CONSIDER HOW PROGRAM DESIGN AS RELEVANT 25 TO THOSE SOURCES CAN FURTHER MITIGATE THE COST OF REDUCING 26 EMISSIONS FOR SUCH MANUFACTURERS WHILE PROVIDING AN INCENTIVE 27 TO IMPROVE EFFICIENCY AND REDUCE EMISSIONS. 2035. A QUALIFIED THIRD PARTY, AS DETERMINED BY THE -12- SPECIFICALLY, THE 1261 1 COMMISSION SHALL DESIGN THE PROGRAM AS RELEVANT TO THOSE 2 SOURCES SUCH THAT AS THE SOURCES ARE SUBJECT TO EMISSION 3 REDUCTION REQUIREMENTS, THOSE SOURCES WILL HAVE, UNDER THE 4 PROGRAM, A PATHWAY TO OBTAIN EQUIVALENT LOWER-COST EMISSION 5 REDUCTIONS AT OTHER REGULATED SOURCES TO SATISFY THEIR 6 COMPLIANCE OBLIGATIONS. 7 (B) AS USED IN THIS SUBSECTION (1)(e)(IX), "ENERGY-INTENSIVE, 8 TRADE-EXPOSED MANUFACTURING SOURCE" MEANS AN ENTITY THAT 9 PRINCIPALLY MANUFACTURES IRON, STEEL, ALUMINUM, PULP, PAPER, OR 10 CEMENT AND THAT IS ENGAGED IN THE MANUFACTURE OF GOODS 11 THROUGH 12 PROCESSES, AS DETERMINED BY THE COMMISSION. 13 ONE OR MORE EMISSIONS-INTENSIVE, TRADE-EXPOSED (X) NOTHING IN THIS SUBSECTION (1)(e) DIMINISHES THE EXISTING 14 AUTHORITY OF THE COMMISSION OR THE DIVISION. 15 SUBSECTION 16 SECTION 17 (1)(e), 18 OBLIGATIONS OR EMISSION AUTHORIZATIONS AND EXCLUDING PROGRAM 19 DEVELOPMENT AND ADMINISTRATIVE COSTS, IMPLICATES STATE FISCAL 20 YEAR SPENDING AS DEFINED IN SECTION 21 SUBSECTION 22 BENEFIT ANALYSIS UNDER SECTION 24-4-103 (2.5) OR ANY REQUIREMENT 23 TO ISSUE A REGULATORY ANALYSIS UNDER SECTION 24 NOTHING IN THIS SUBSECTION (1)(e) DIMINISHES THE AUTHORITY OF THE 25 PUBLIC UTILITIES COMMISSION UNDER THE PUBLIC UTILITIES LAW, 26 INCLUDING SECTIONS 40-3-101 AND 40-3-102. 27 NOTHING IN THIS (1)(e) ALTERS THE REGULATORY EXEMPTIONS PROVIDED IN 25-7-109 (8)(a). NOTHING INCLUDING (1)(e) THE AUTHORIZED IN THIS SUBSECTION ASSIGNMENT OF EMISSION REDUCTION 24-77-102. NOTHING IN THIS ALTERS ANY REQUIREMENT TO PREPARE A COST- 24-4-103 (4.5). (XI) AS USED IN THIS SUBSECTION (1)(e): -13- 1261 1 (A) "COST-EFFECTIVE" OR "COST-EFFECTIVENESS" MEANS THE 2 COST PER UNIT OF REDUCED EMISSIONS OF GREENHOUSE GASES EXPRESSED 3 AS CARBON DIOXIDE EQUIVALENT. 4 (B) "GREENHOUSE GAS" INCLUDES CARBON DIOXIDE, METHANE, 5 NITROUS OXIDE, HYDROFLUOROCARBONS, PERFLUOROCARBONS, NITROGEN 6 TRIFLUORIDE, AND SULFUR HEXAFLUORIDE, EXPRESSED AS CARBON 7 DIOXIDE EQUIVALENT. 8 9 (C) "RETAIL ELECTRICITY SALES" MEANS ELECTRIC ENERGY SOLD TO RETAIL END-USE ELECTRIC CONSUMERS. 10 SECTION 4. Appropriation. (1) For the 2019-20 state fiscal 11 year, $281,588 is appropriated to the department of public health and 12 environment. This appropriation is from the general fund. To implement 13 this act, the department may use this appropriation as follows: 14 (a) $188,321 for use by the air pollution control division for 15 program costs, which amount is based on an assumption that the division 16 will require an additional 2.0 FTE; and 17 (b) $93,267 for the purchase of legal services. 18 (2) For the 2019-20 state fiscal year, $93,267 is appropriated to 19 the department of law. This appropriation is from reappropriated funds 20 received from the department of public health and environment under 21 subsection (1)(b) of this section and is based on an assumption that the 22 department of law will require an additional 0.5 FTE. To implement this 23 act, the department of law may use this appropriation to provide legal 24 services for the department of public health and environment. 25 SECTION 5. Safety clause. The general assembly hereby finds, 26 determines, and declares that this act is necessary for the immediate 27 preservation of the public peace, health, and safety. -14- 1261