(1) A qualifying retail utility shall not have the authority to condemn or exercise the power of eminent domain over any real estate, right-of-way, easement, or other right pursuant to section 38-2-101, C.R.S., to site the generation facilities of a renewable energy system used in whole or in part to meet the electric resource standards set forth in section 40-2-124. This section shall not be construed to limit the authority of a home rule municipality under article XX of the Colorado constitution.
(2) Section 3 of this initiated measure provides that this section and section 40-2-124 shall be effective December 1, 2004.
Source: Initiated 2004: Entire section added, see L. 2005, p. 2337, effective December 1, 2004, proclamation of the Governor issued December 1, 2004. L. 2005: Entire section amended, p. 238, � 2, effective August 8; (2) added by revision, see L. 2005, p. 2340, � 3.
Editor's note: (1) A declaration of intent was contained in the initiated measure, Amendment 37, and is reproduced below:
SECTION 1. Legislative declaration of intent:
Energy is critically important to Colorado's welfare and development, and its use has a profound impact on the economy and environment. Growth of the state's population and economic base will continue to create a need for new energy resources, and Colorado's renewable energy resources are currently underutilized.
Therefore, in order to save consumers and businesses money, attract new businesses and jobs, promote development of rural economies, minimize water use for electricity generation, diversify Colorado's energy resources, reduce the impact of volatile fuel prices, and improve the natural environment of the state, it is in the best interests of the citizens of Colorado to develop and utilize renewable energy resources to the maximum practicable extent.
(2) This initiated measure was approved by a vote of the registered electors of the state of Colorado on November 2, 2004. The vote count for the measure was as follows:
FOR: 1,066,023
AGAINST: 922,577
40-2-125.5. Carbon dioxide emission reductions - goal to eliminate by 2050 - legislative declaration - interim targets - submission and approval of plans - definitions - cost recovery - reports - rules. (1) Legislative declaration. The general assembly finds and declares that:
(a) It is a matter of statewide importance to promote the development of cost-effective clean energy and new technologies and reduce the carbon dioxide emissions from the Colorado electric generating system;
(b) The creation of a low-cost, reliable, and clean electricity system is critical to achieving the level of greenhouse gas emissions necessary to avoid the worst impacts of climate change and advancing a robust and efficient low-carbon economy for the state of Colorado and the nation;
(c) Technology advancement has already allowed Colorado to achieve reductions in carbon dioxide emissions from the electric utility sector, and continued technology development is key to extend progress toward a reliable, low-cost, clean energy future;
(d) Alternative financing mechanisms may result in lower costs to electric utility customers; therefore, it is helpful to provide alternative financing mechanisms that utilities may use to reduce the total amount of costs being included in customer rates resulting from accelerating the retirement of electric generating facilities; and
(e) A bold clean energy policy will support this progress and allow Coloradans to enjoy the benefits of reliable clean energy at an affordable cost.
(2) Definitions. As used in this section, unless the context otherwise requires:
(a) Clean energy plan means a plan filed by a qualifying retail utility as part of its electric resource plan to reduce the qualifying retail utility's carbon dioxide emissions associated with electricity sales to the qualifying retail utility's electricity customers by eighty percent from 2005 levels by 2030, and that seeks to achieve providing its customers with energy generated from one-hundred-percent clean energy resources by 2050.
(b) (I) Clean energy resource means any electricity-generating technology that generates or stores electricity without emitting carbon dioxide into the atmosphere.
(II) Clean energy resource includes, without limitation:
(A) Eligible energy resources as defined in section 40-2-124 (1)(a); and
(B) Nuclear energy, including nuclear energy projects awarded funding through the United States department of energy's advanced nuclear reactor programs.
(c) (I) Qualifying retail utility means a retail utility providing electric service to more than five hundred thousand customers in this state or any other electric utility that opts in pursuant to subsection (3)(b) of this section.
(II) Qualifying retail utility does not include a municipally owned utility.
(3) Clean energy targets. (a) In addition to the other requirements of this section, a qualifying retail utility shall meet the following clean energy targets:
(I) By 2030, the qualifying retail utility shall reduce the carbon dioxide emissions associated with electricity sales to the qualifying retail utility's electricity customers by eighty percent from 2005 levels.
(II) For the years 2050 and thereafter, or sooner if practicable, the qualifying retail utility shall seek to achieve the goal of providing its customers with energy generated from one-hundred-percent clean energy resources so long as doing so is technically and economically feasible, in the public interest, and consistent with the requirements of this section.
(III) The qualifying retail utility shall retire renewable energy credits established under section 40-2-124 (1)(d), in the year generated, by any eligible energy resources used to comply with the requirements of this section.
(b) Any other electric public utility may opt into the full terms of this entire section upon notification to the commission.
(4) Submission and approval of plans. (a) The first electric resource plan that a qualifying retail utility files with the commission after January 1, 2020, must include a clean energy plan that will achieve the clean energy target set forth in subsection (3)(a)(I) of this section and make progress toward the one-hundred-percent clean energy goal set forth in subsection (3)(a)(II) of this section in accordance with the following:
(I) The electric resource plan containing the clean energy plan must utilize a resource acquisition period that extends through 2030.
(II) The clean energy plan submitted to the commission must set forth a plan of actions and investments by the qualifying retail utility projected to achieve compliance with the clean energy targets in subsections (3)(a)(I) and (3)(a)(II) of this section and that result in an affordable, reliable, and clean electric system.
(III) In the electric resource plan that includes the clean energy plan, the qualifying retail utility shall clearly distinguish between the set of resources necessary to meet customer demands in the resource acquisition period and the additional clean energy plan activities that may be undertaken to meet the clean energy target in subsection (3)(a)(I) of this section, which may create an additional resource need for the clean energy plan. These activities may include retirement of existing generating facilities, changes in system operation, or any other necessary actions.
(IV) After conducting any procurement process pursuant to subsection (5)(b) of this section or otherwise, the qualifying retail utility shall set forth the actions and investments required to fill the additional resource need identified for the clean energy plan to satisfy the clean energy target in subsection (3)(a)(I) of this section. These actions and investments may include development of new clean energy resources, development of new transmission and other supporting infrastructure, and clean energy resource acquisitions. Any new transmission development is subject to existing commission and stakeholder transmission planning processes, as applicable.
(V) The clean energy plan must describe the effect of the actions and investments included in the clean energy plan on the safety, reliability, renewable energy integration, and resilience of electric service in the state of Colorado.
(VI) The clean energy plan must set forth the projected cost of its implementation and anticipated reductions in carbon dioxide and other emissions.
(VII) If the clean energy plan includes accelerated retirement of any existing generating facilities, the clean energy plan must include workforce transition and community assistance plans for utility workers impacted by any clean energy plan and a plan to pay community assistance to any local government or school district, the voters of which have approved projects the costs of which are expected to be paid for from property taxes that are directly impacted by the accelerated retirement of the electric generating facility in an amount equal to the costs of the voter-approved projects that were expected to be paid from the revenue sources directly impacted by the accelerated retirement of the projects, including but not limited to the payment of bonds, notes, or other multiple-fiscal year obligations or financed purchase of an asset or certificate of participation agreements that have been issued or entered into to pay the costs of such projects. Any payment of community assistance shall be reduced on an equivalent basis to the extent that property tax is derived from new electric infrastructure developed in the same impacted community. The qualifying retail utility may propose a cost-recovery mechanism to recover the prudently incurred costs of any workforce transition and community assistance plans, while giving due consideration to the impact on low-income customers. The qualifying retail utility will not earn its authorized rate of return on any noncapital costs incurred as part of any workforce transition plan. The workforce transition and community assistance plans must include, to the extent feasible, estimates of:
(A) The number of workers employed by the utility or a contractor of the utility at the electric generating facility;
(B) The total number of existing workers with jobs that will be retained and the total number of existing workers with jobs that will be eliminated due to the retirement of the electric generating facility;
(C) With respect to the existing workers with jobs that will be eliminated due to the retirement of the electric generating facility, the total number and number by job classification of workers for whom: Employment will end without being offered other employment by the utility; the workers will retire as planned, be offered early retirement, or leave voluntarily; the workers will be retained by being transferred to other electric generating facilities or offered other employment by the utility; and the workers will be retrained to continue to work for the utility in a new job classification;
(D) If the utility is replacing the electric generating facility being retired with a new electric generating facility: The number of workers from the retired electric generating facility that will be offered employment at the new electric generating facility and the number of jobs at the new electric generating facility that will be outsourced to subcontractors. The utility shall develop a training or apprenticeship program, under the terms of an applicable collective bargaining agreement, if any, for the maintenance and operation of any new combination generation and storage facility owned by the utility that does not emit carbon dioxide, to which facility displaced workers may transfer as appropriate.
(VIII) If the minimum amounts of electricity from eligible energy resources set forth in section 40-2-124 (1)(c) are satisfied, a qualifying retail utility may propose to use up to one-half of the funds collected annually under section 40-2-124 (1)(g), as well as any accrued funds, to recover the incremental cost of clean energy resources and their directly related interconnection facilities. The utility may account for these funds in calculating the cost of the plan.
(b) The division of administration in the department of public health and environment shall participate in any proceeding seeking approval of a clean energy plan developed by a qualifying retail utility pursuant to this section. The division shall describe the methods of measuring carbon dioxide emissions and shall verify the projected carbon dioxide emission reductions as a result of the clean energy plan.
(c) (I) After consulting with the air quality control commission, the division of administration shall determine whether a clean energy plan as filed under this section will result in an eighty percent reduction, relative to 2005 levels, in carbon dioxide emissions from the qualifying retail utility's Colorado electricity sales by 2030 and is otherwise consistent with any greenhouse gas emission reduction goals established by the state of Colorado. The division shall publish, and shall report to the public utilities commission, the division's calculation of carbon dioxide emission reductions attributable to any approved clean energy plan. Nothing in the division's engagement in this process shall be construed to diminish or override the commission's authority under this title 40.
(II) Notwithstanding anything in this section to the contrary, the division shall comply with section 25-7-105 (1)(e)(VIII.2) in making any calculation or determination pursuant to subsection (4)(c)(I) of this section.
(d) The commission shall approve the clean energy plan if the commission finds it to be in the public interest and consistent with the clean energy target in subsection (3)(a)(I) of this section, and the commission may modify the plan if the modification is necessary to ensure that the plan is in the public interest. In evaluating whether a clean energy plan submitted to the commission is in the public interest, the commission shall consider the following factors, among other relevant factors as defined by the commission:
(I) Reductions in carbon dioxide and other emissions that will be achieved through the clean energy plan and the environmental and health benefits of those reductions;
(II) The feasibility of the clean energy plan and the clean energy plan's impact on the reliability and resilience of the electric system. The commission shall not approve any plan that does not protect system reliability.
(III) Whether the clean energy plan will result in a reasonable cost to customers, as evaluated on a net present value basis. In evaluating the cost impacts of the clean energy plan, the commission shall consider the effect on customers of the projected costs associated with the plan as set forth in subsection (4)(a)(VI) of this section as well as any projected savings associated with the plan, including projected avoided fuel costs.
(e) If the commission finds that approval of the clean energy plan is not in the public interest, or if the commission modifies the plan, the utility may choose to submit an amended plan to the commission for approval in lieu of having no plan or implementing the modified plan. No clean energy plan is effective without commission approval.
(5) Regulatory matters. (a) Ensuring retail rate stability. (I) The commission shall establish a maximum electric retail rate impact of one and one-half percent of the total electric bill annually for each customer for implementation of the approved additional clean energy plan activities, consistent with this subsection (5). Nothing in this subsection (5)(a) supersedes subsection (3)(a)(I) of this section.
(II) A qualifying retail utility shall collect revenues for the additional clean energy plan activities through a clean energy plan revenue rider assessed on a percentage basis on all retail customer bills, as deemed prudent by the commission. The revenue rider may be established as early as the year following approval of a clean energy plan by the commission, and the qualifying retail utility may propose a commencement date and level no greater than the maximum electric retail rate impact. The revenue rider shall afford the qualifying retail utility cost-recovery treatment up to the maximum electric retail rate impact until the first rate case following the final implementation of the clean energy plan, at which time the remaining costs and savings associated with the clean energy plan will be incorporated into base rates. The qualifying retail utility may propose to adjust the level of the retail rate rider over time so long as it does not exceed the maximum retail rate impact and as deemed prudent by the commission. Nothing in this subsection (5) affects the commission's authority to evaluate the prudence of costs associated with approved clean energy plan activities.
(III) The clean energy plan revenue rider will be utilized for costs of a qualifying retail utility's clean energy plan capital investments and operating and related expenses, exclusive of:
(A) Fuel and transmission costs;
(B) Costs associated with the capital investments and operating and related expenses within the overall approved resource portfolio necessary to fully satisfy the resource need identified for the electric resource plan without the clean energy plan;
(C) The incremental costs of eligible energy resources recovered with funds collected under section 40-2-124 (1)(g); and
(D) The incremental costs of any clean energy resources and their directly related interconnection facilities that, subject to commission approval, are recovered with funds collected under section 40-2-124 (1)(g) in accordance with subsection (4)(a)(VIII) of this section. Savings associated with the plan will return to customers through existing rate riders and base rate adjustments.
(IV) The clean energy plan revenue rider shall afford customers certainty on the maximum rate impact of the approved additional clean energy plan activities through at least calendar year 2030. Annually, the qualifying retail utility shall file a report with the commission indicating, at a minimum:
(A) The amount of rider collections;
(B) The revenue requirement associated with the approved additional clean energy plan activities to be paid for from the rider collections;
(C) Any positive or negative rider account balance;
(D) Interest expense associated with the revenue rider balance; and
(E) Any other information required by the commission.
(V) In the first rate case following the final implementation of the clean energy plan, the commission shall conduct a final reconciliation of the clean energy plan revenue rider and determine how to account for any positive or negative rider balance. In the manner determined by the commission, any remaining positive balance shall be returned to customers or used to reduce customer rates and any negative balance shall be incorporated into the qualifying retail utility's rates.
(b) The qualifying retail utility shall utilize a competitive bidding process, as defined by the commission in rules, to procure any energy resources to fill the cumulative resource need derived from the electric resource plan and the clean energy plan in subsection (4)(a)(III) of this section. The commission shall allow the qualifying retail utility, inclusive of any ownership by its affiliates, to own a target of fifty percent of the energy and capacity associated with the clean energy resources and any other energy resources developed or acquired to meet the resource need, as well as all associated infrastructure, if the commission finds the cost of utility or affiliate ownership of the generation assets comes at a reasonable cost and rate impact. Utility ownership may come from utility or affiliate self-builds, build-transfers from independent power producers, or sales of existing assets from independent power producers or similar commercial arrangements. Nothing in this subsection (5)(b) alters the commission's authority under subsection (4)(d) of this section.
(c) Any actions, including transmission development, taken by the qualifying retail utility shall be presumed prudent to the extent those actions are a part of an approved clean energy plan.
(d) For the purposes of this section, the clean energy target evaluation will be based upon the qualifying retail utility's electricity sales within its electric service territory as it existed on January 1, 2019. In the event of a significant acquisition, the qualifying retail utility may file within one year after the acquisition an additional clean energy plan to address that acquisition, and the commission shall consider the additional clean energy plan consistent with the goals of this section.
(e) The commission may, on its own motion or upon application by a qualifying retail utility, amend an approved clean energy plan if amendment is necessary to ensure the reliability and resilience of the electric system. The commission may require the qualifying retail utility to provide such periodic reports on the reliability and resiliency of the electric system as it may deem appropriate to ensure the clean energy plan does not adversely impact reliability or resiliency.
(f) The commission shall consider affected communities within the filing qualifying retail utility's service territory with a tangible and pecuniary interest, and organizations representing those communities shall be presumed to have standing in a proceeding seeking approval of any clean energy plan filed pursuant to this section.
(g) (I) A clean energy plan voluntarily filed by a municipal utility or a cooperative electric association that has voted to exempt itself from regulation by the commission pursuant to article 9.5 of this title 40 shall be deemed approved by the commission as filed if:
(A) The division of administration, in consultation with the commission, verifies that the plan demonstrates that, by 2030, the municipal utility or cooperative electric association will achieve at least an eighty-percent reduction in greenhouse gas emissions caused by the entity's Colorado electricity sales relative to 2005 levels; and
(B) The clean energy plan has previously been approved by a vote of the entity's governing body.
(II) Voluntary submission of a clean energy plan by a municipal utility or a cooperative electric association does not alter the entity's regulatory status with respect to the commission, including under article 9.5 of this title 40.
(h) Nothing in this subsection (5) precludes the use of bonds as a mechanism for recovering utility capital in a retired electric generating facility.
(6) Reports. One year after approval of any electric resource plan that incorporates a clean energy plan, the qualifying retail utility shall prepare a report to the governor, the general assembly, the public utilities commission, and the air quality control commission outlining progress toward the clean energy targets set forth in this section. The report must set forth the clean energy resources developed under any clean energy plan, the cost and customer impact of those clean energy resources, the effect of any approved clean energy plan on system reliability, and any other relevant information. The report must also identify the need for new or additional technology development necessary to achieve the clean energy targets of this section.
(7) Future electric resource plans. Any electric resource plan submitted to the commission after approval of the clean energy plan must include an update on the progress made toward the approved clean energy plan, as well as actions and investments by the qualifying retail utility projected to achieve compliance with the emission reduction target identified in subsection (3)(a)(I) of this section and make progress toward the one-hundred-percent clean energy goal set forth in subsection (3)(a)(II) of this section. The commission may solicit input from the division of administration for assistance in evaluating the emission reductions associated with any future electric resource plan and consistent with the clean energy targets of this section. The commission shall review the qualifying retail utility's actions and investments in accordance with the standards set forth in subsection (4)(d) of this section.
Source: L. 2019: Entire section added, (SB 19-236), ch. 359, p. 3291, � 5, effective May 30. L. 2021: IP(4)(a)(VII) amended, (HB 21-1316), ch. 325, p. 2062, � 78, effective July 1. L. 2023: (4)(c) amended, (SB 23-198), ch. 352, p. 2118, � 3, effective June 5. L. 2025: (2)(b) amended, (HB 25-1040), ch. 45, p. 209, � 3, effective August 6.
Cross references: For the legislative declaration in SB 23-198, see section 1 of chapter 352, Session Laws of Colorado 2023. For the legislative declaration in HB 25-1040, see section 1 of chapter 45, Session Laws of Colorado 2025.
40-2-126. Transmission facilities - biennial review - energy resource zones - definitions - plans - approval - cost recovery - powerline trail consideration. (1) As used in this section, unless the context otherwise requires:
(a) Energy resource zone means a geographic area in which transmission constraints hinder the delivery of electricity to Colorado consumers, the development of new electric generation facilities to serve Colorado consumers, or both.
(b) Local government has the meaning set forth in section 33-45-102 (3).
(c) Powerline trail has the meaning set forth in section 33-45-102 (5).
(2) Biennially, on or before a date determined by the commission, commencing in 2016, each Colorado electric utility subject to rate regulation by the commission shall:
(a) Designate energy resource zones;
(b) Develop plans for the construction or expansion of transmission facilities necessary to deliver electric power consistent with the timing of the development of beneficial energy resources located in or near such zones;
(c) Consider how transmission can be provided to encourage local ownership of renewable energy facilities, whether through renewable energy cooperatives as provided in section 7-56-210, C.R.S., or otherwise; and
(d) Submit proposed plans, designations, and applications for certificates of public convenience and necessity to the commission for review pursuant to subsection (3) of this section.
(2.5) In reviewing a plan that an electric utility submits pursuant to subsection (2)(d) of this section, the commission shall consider the need for expanded transmission capacity in the state, including the ability to expand capacity through the construction of new transmission lines, improvements to existing transmission lines, and connections to organized wholesale markets, as defined in section 40-5-108 (1)(a).
(3) The commission may, consistent with its authority, approve a utility's application for a certificate of public convenience and necessity for the cost-effective construction or expansion of transmission facilities pursuant to subsection (2)(b) of this section if the commission finds that:
(a) The construction or expansion:
(I) Is required to:
(A) Ensure the reliable delivery of electricity to Colorado consumers, either alone or in combination with the consumers of other states served by an organized wholesale market as defined in section 40-5-108 (1)(a); or
(B) Enable the utility to meet the renewable energy standards set forth in section 40-2-124 or achieve emission reductions under section 25-7-102 or 40-2-125.5;
(II) Can reasonably accommodate future expansion, through the addition of more lines or greater capacity, as may be required to support the utility's participation in an organized wholesale market as defined in section 40-5-108 (1)(a); and
(b) The present or future public convenience and necessity require such construction or expansion.
(4) Notwithstanding any other provision of law, in response to any application for a certificate of public convenience and necessity for the construction or expansion of transmission facilities that is submitted to the commission pursuant to subsection (2)(d) of this section, the commission shall issue a final order within two hundred forty days after the application is deemed complete and public notice of the application is given; except that the applicant may waive this two-hundred-forty-day deadline. Absent such waiver, if the commission does not issue a final order within that period, the application is deemed approved.
(5) In any construction or expansion approved pursuant to this section, the utility shall use its own employees or qualified contractors, or both, but shall not use a contractor unless the contractor's employees have access to an apprenticeship program registered with the United States department of labor's office of apprenticeship or by a state apprenticeship agency recognized by that office; except that this apprenticeship requirement does not apply to:
(a) The design, planning, or engineering of the transmission facilities;
(b) Management functions to operate the transmission facilities; or
(c) Any work performed in response to a warranty claim.
(6) The commission shall amend its rules requiring the filing of ten-year transmission plans by utilities to also require utilities to:
(a) Consider and address plans for the construction of new powerline trails in coordination with applicable local governments in each two-year update to a ten-year transmission plan; and
(b) Demonstrate compliance with section 33-45-103 (2).
Source: L. 2007: Entire section added, p. 266, � 2, effective March 27. L. 2016: IP(2) and (2)(d) amended and (4) repealed, (HB 16-1091), ch. 48, p. 114, � 1, effective August 10. L. 2021: IP(3) and (3)(a) amended, (4) RC&RE, and (5) added, (SB 21-072), ch. 329, p. 2110, � 1, effective June 24. L. 2022: (1) amended and (6) added, (HB 22-1104), ch. 97, p. 466, � 5, effective April 13. L. 2023: IP(5) amended, (SB 23-051), ch. 37, p. 149, � 32, effective March 23; (2.5) added, (SB 23-016), ch. 165, p. 744, � 16, effective August 7.
Cross references: For the legislative declaration contained in the 2007 act enacting this section, see section 1 of chapter 61, Session Laws of Colorado 2007. For the legislative declaration in HB 22-1104, see section 1 of chapter 97, Session Laws of Colorado 2022.
40-2-127. Community energy funds - community solar gardens - definitions - rules - legislative declaration - applicability - repeal. (1) Legislative declaration. The general assembly hereby finds and declares that:
(a) Local communities can benefit from the further development of renewable energy, energy efficiency, conservation, and environmental improvement projects, and the general assembly hereby encourages electric utilities to establish community energy funds for the development of such projects;
(b) It is in the public interest that broader participation in solar electric generation by Colorado residents and commercial entities be encouraged by the development and deployment of distributed solar electric generating facilities known as community solar gardens, in order to:
(I) Provide Colorado residents and commercial entities with the opportunity to participate in solar generation in addition to the opportunities available for rooftop solar generation on homes and businesses;
(II) Allow renters, low-income utility customers, and agricultural producers to own interests in solar generation facilities;
(III) Allow interests in solar generation facilities to be portable and transferrable; and
(IV) Leverage Colorado's solar generating capacity through economies of scale.
(2) Definitions. As used in this section, unless the context otherwise requires:
(a) The definitions in section 40-2-124 apply; and
(b) In addition:
(I) (A) Community solar garden means a solar electric generation facility with a nameplate rating within the range specified under subsection (2)(b)(I)(D) of this section that is located in or near a community served by a qualifying retail utility where the beneficial use of the electricity generated by the facility belongs to the subscribers to the community solar garden. There shall be at least ten subscribers. The owner of the community solar garden may be the qualifying retail utility or any other for-profit or nonprofit entity or organization, including a subscriber organization organized under this section, that contracts to sell the output from the community solar garden to the qualifying retail utility. A community solar garden shall be deemed to be located on the site of customer facilities.
(B) A community solar garden shall constitute retail distributed generation within the meaning of section 40-2-124, as amended by House Bill 10-1001, enacted in 2010.
(C) Notwithstanding any provision of this section or section 40-2-124 to the contrary, a community solar garden constitutes retail distributed generation for purposes of a cooperative electric association's compliance with the applicable renewable energy standard under section 40-2-124.
(D) A community solar garden must have a nameplate rating of five megawatts or less; except that the commission may, in rules adopted pursuant to subsection (3)(b) of this section, approve the formation of a community solar garden with a nameplate rating of up to ten megawatts on or after July 1, 2023.
(II) Subscriber means a retail customer of a qualifying retail utility who owns a subscription and who has identified one or more physical locations to which the subscription is attributed. Such physical locations must be within the service territory of the same qualifying retail utility as the community solar garden. The subscriber may change from time to time the premises to which the community solar garden electricity generation shall be attributed, so long as the premises are within the same service territory.
(III) Subscription means a proportional interest in solar electric generation facilities installed at a community solar garden, together with the renewable energy credits associated with or attributable to such facilities under section 40-2-124. Each subscription shall be sized to represent at least one kilowatt of the community solar garden's generating capacity and to supply no more than one hundred twenty percent of the average annual consumption of electricity by each subscriber at the premises to which the subscription is attributed, with a deduction for the amount of any existing solar facilities at such premises. Subscriptions in a community solar garden may be transferred or assigned to a subscriber organization or to any person or entity who qualifies to be a subscriber under this section.
(3) Subscriber organization - subscriber qualifications - transferability of subscriptions. (a) The community solar garden may be owned by a subscriber organization, whose sole purpose shall be beneficially owning and operating a community solar garden. The subscriber organization may be any for-profit or nonprofit entity permitted by Colorado law. The community solar garden may also be built, owned, and operated by a third party under contract with the subscriber organization.
(b) The commission shall adopt rules as necessary to implement this section, including rules to facilitate the financing of subscriber-owned community solar gardens. The rules must include:
(I) Minimum capitalization;
(II) The share of a community solar garden's eligible solar electric generation facilities that a subscriber organization may at any time own in its own name; and
(III) Authorizing subscriber organizations to enter into leases, sale-and-leaseback transactions, operating agreements, and other ownership arrangements with third parties.
(c) If a subscriber ceases to be a customer at the premises on which the subscription is based but, within a reasonable period as determined by the commission, becomes a customer at another premises in the service territory of the qualifying retail utility and within the geographic area served by the community solar garden, the subscription shall continue in effect but the bill credit and other features of the subscription shall be adjusted as necessary to reflect any differences between the new and previous premises' customer classification and average annual consumption of electricity.
(3.5) Standards for construction and operation. The following requirements apply to any community solar garden exceeding two megawatts:
(a) The initial installation of any photovoltaic module or associated electrical equipment is subject to final inspection and approval in accordance with section 12-115-120.
(b) Following the development or acquisition by a qualifying retail utility of a community solar garden in which the qualifying retail utility retains ownership, the qualifying retail utility shall either use its own employees to operate and maintain the community solar garden or contract for operation and maintenance of the community solar garden by a contractor whose employees have access to an apprenticeship program registered with the United States department of labor's office of apprenticeship or with a state apprenticeship agency recognized by that office; except that this apprenticeship requirement does not apply to:
(I) The design, planning, or engineering of the infrastructure;
(II) Management functions to operate the infrastructure; or
(III) Any work included in a warranty.
(3.7) Energy sector public works projects. If the development of a community solar garden is an energy sector public works project, as defined in section 24-92-303 (5), then the project must comply with the applicable requirements of the Colorado Energy Sector Public Works Project Craft Labor Requirements Act, part 3 of article 92 of title 24.
(4) Community solar gardens not subject to regulation. Neither the owners of nor the subscribers to a community solar garden shall be considered public utilities subject to regulation by the commission solely as a result of their interest in the community solar garden. Prices paid for subscriptions in community solar gardens shall not be subject to regulation by the commission.
(5) Purchases of the output from community solar gardens. (a) (I) Each qualifying retail utility shall set forth in its plan for acquisition of renewable resources a plan to purchase the electricity and renewable energy credits generated from one or more community solar gardens over the period covered by the plan.
(II) For the first three compliance years commencing with the 2011 compliance year, each qualifying retail utility shall issue one or more standard offers to purchase the output from community solar gardens of five hundred kilowatts or less at prices that are comparable to the prices offered by the qualifying retail utility under standard offers issued for on-site solar generation. During these three compliance years, the qualifying retail utility shall acquire, through these standard offers, one-half of the solar garden generation it plans to acquire, to the extent the qualifying retail utility receives responses to its standard offers. Notwithstanding any provision of this subparagraph (II) to the contrary, renewable energy credits generated from solar gardens shall not be used to achieve more than twenty percent of the retail distributed generation standard in years 2011 through 2013.
(III) For the first three compliance years commencing with the 2011 compliance year, a qualifying retail utility shall not be obligated to purchase the output from more than six megawatts of newly installed community solar garden generation.
(III.5) Subsections (5)(a)(II) and (5)(a)(III) of this section and this subsection (5)(a)(III.5) are repealed, effective July 1, 2043.
(IV) For each qualifying retail utility's compliance years commencing in 2014 through 2025, the commission shall determine the minimum and maximum purchases of electrical output from newly installed community solar gardens of different output capacity that the qualifying retail utility shall plan to acquire, without regard to the six-megawatt ceiling of the first three compliance years. In addition, as necessary, the commission shall formulate and implement policies consistent with this section that simultaneously encourage:
(A) The ownership by customers of subscriptions in community solar gardens and of other forms of distributed generation, to the extent the commission finds there to be customer demand for such ownership;
(B) Ownership in community solar gardens by residential retail customers and agricultural producers, including low-income customers, to the extent the commission finds there to be demand for such ownership;
(C) The development of community solar gardens with attributes that the commission finds result in lower overall total costs for the qualifying retail utility's customers;
(D) Successful financing and operation of community solar gardens owned by subscriber organizations; and
(E) The achievement of the goals and objectives of section 40-2-124.
(b) (I) (A) The output from a community solar garden shall be sold only to the qualifying retail utility serving the geographic area where the community solar garden is located.
(B) Once a community solar garden is part of a qualifying retail utility's plan for acquisition of renewable resources, as approved by the commission, the commission shall, by January 30, 2020, initiate a proceeding, or consider in an active proceeding, to determine whether the qualifying retail utility shall purchase all of the electricity and renewable energy credits generated by the community solar garden or whether a subscriber may, upon becoming a subscriber, choose to retain or sell to the qualifying retail utility the subscriber's renewable energy credits.
(C) The amount of electricity and renewable energy credits generated by each community solar garden shall be determined by a production meter installed by the qualifying retail utility or third-party system owner and paid for by the owner of the community solar garden.
(II) (A) The purchase of the output of a community solar garden by a qualifying retail utility must take the form of a net metering credit against the qualifying retail utility's electric bill to each community solar garden subscriber at the premises set forth in the subscriber's subscription.
(B) For a subscriber organization that directs the qualifying retail utility to provide the subscriber organization's subscribers with a bill credit that changes annually, the net metering credit is calculated by multiplying the subscriber's share of the electricity production from the community solar garden by the qualifying retail utility's total aggregate retail rate as charged to the subscriber, minus a reasonable charge as determined by the commission. The charge will be used to cover the utility's costs of delivering to the subscriber's premises the electricity generated by the community solar garden, integrating the solar generation with the utility's system, and administering the community solar garden's contracts and net metering credits.
(C) For a subscriber organization that directs the qualifying retail utility to provide the subscriber organization's subscribers with a fixed bill credit, the net metering credit is calculated by multiplying the subscriber's share of the electricity production from the community solar garden by the qualifying retail utility's total aggregate retail rate as charged to the subscriber at the time the subscriber organization applies for or bids capacity into a utility community solar garden program, minus a reasonable charge, as determined by the commission at the time the subscriber organization applies for or bids capacity into a utility community solar garden program. The charge will be used to cover the utility's costs related to: Delivering to the subscriber's premises the electricity generated by the community solar garden, integrating the solar generation with the utility's system, and administering contracts and net metering credits for the community solar garden.
(D) For community solar gardens eligible for a fixed bill credit, and solely for the purpose of applying the bill credit to a subscriber's bill, the bill credit shall not be applied toward the following rate rider charges, unless the rate rider charges are included in the reasonable charge: Rate rider charges that promote clean energy technologies, including beneficial electrification; rate rider charges that provide low-income bill assistance; or rate rider charges that provide other public benefits as determined by the commission.
(E) By June 30, 2024, the commission shall adopt rules to implement the fixed bill credit. The rules must consider the change of value to community solar garden customers of the fixed bill credit over time through rate adjustments or other mechanisms.
(F) The commission shall allow a qualifying retail utility to recover the costs incurred in implementing and maintaining billing systems for the various bill credit processes required pursuant to this subsection (5)(b)(II).
(G) The commission shall ensure that the reasonable charge that the commission determines pursuant to subsections (5)(b)(II)(B) and (5)(b)(II)(C) of this section does not reflect costs that are already recovered by the utility from the subscriber through other charges.
(H) If, and to the extent that, a subscriber's net metering credit exceeds the subscriber's electric bill in any billing period, the net metering credit shall be carried forward and applied against future bills.
(I) The qualifying retail utility and the owner of the community solar garden must agree on whether the purchase of the renewable energy credits from subscribers will be accomplished through a credit on each subscriber's electricity bill or by a payment to the owner of the community solar garden.
(c) The owner of the community solar garden shall provide real-time production data to the qualifying retail utility to facilitate incorporation of the community solar garden into the utility's operation of its electric system and to facilitate the provision of net metering credits.
(d) The owner of the community solar garden shall be responsible for providing to the qualifying retail utility, on a monthly basis and within reasonable periods set by the qualifying retail utility, the percentage shares that should be used to determine the net metering credit to each subscriber. If the electricity output of the community solar garden is not fully subscribed, the qualifying retail utility shall purchase the unsubscribed renewable energy and the renewable energy credits at a rate equal to the qualifying retail utility's average hourly incremental cost of electricity supply over the immediately preceding calendar year.
(e) Each qualifying retail utility shall set forth in its plan for acquisition of renewable resources a proposal for including low-income customers as subscribers to a community solar garden. The utility may give preference to community solar gardens that have low-income subscribers.
(f) Qualifying retail utilities shall be eligible for the incentives and subject to the ownership limitations set forth in section 40-2-124 (1)(f) for utility investments in community solar gardens and may recover through rates a margin, in an amount determined by the commission, on all energy and renewable energy credits purchased from community solar gardens. Such incentive payments shall be excluded from the cost analysis required by section 40-2-124 (1)(g).
(6) Nothing in this section shall be construed to waive or supersede the retail rate impact limitations in section 40-2-124 (1)(g). Utility expenditures for unsubscribed energy and renewable energy credits generated by community solar gardens shall be included in the calculations of retail rate impact required by that section.
(7) Applicability to cooperative electric associations and municipally owned utilities. This section shall not apply to cooperative electric associations or to municipally owned utilities.
(8) Applicability. (a) This section applies to community solar capacity that is allocated on or before December 31, 2025.
(b) Community solar capacity that is allocated on or after January 1, 2026, is allocated pursuant to section 40-2-127.2.
Source: L. 2007: Entire section added, p. 265, � 2, effective March 27. L. 2010: Entire section amended, (HB 10-1342), ch. 344, p. 1592, � 1, effective June 5. L. 2015: (2)(b)(II) amended, (HB 15-1248), ch. 170, p. 519, � 1, effective May 8; (2)(b)(I)(C) added, (SB 15-046), ch. 142, p. 434, � 2, effective August 5. L. 2019: IP(3)(b) amended and (5)(a)(III.5) added, (SB 19-236), ch. 359, p. 3299, � 6, effective May 30; (2)(b)(I)(A), (2)(b)(II), and (5)(b)(I) amended and (2)(b)(I)(D) and (3.5) added, (HB 19-1003), ch. 360, p. 3336, � 2, effective August 2. L. 2020: IP(3.5)(b) amended, (HB 20-1402), ch. 216, p. 1058, � 70, effective June 30. L. 2023: IP(3.5)(b) amended, (SB 23-051), ch. 37, p. 149, � 33, effective March 23; (5)(b)(II) amended, (HB 23-1137), ch. 85, p. 296, � 1, effective August 7; (3.7) added, (SB 23-292), ch. 247, p. 1360, � 5, effective January 1, 2024. L. 2024: IP(5)(a)(IV) amended and (8) added, (SB 24-207), ch. 231, p. 1423, � 2, effective May 22.
Cross references: For the legislative declaration in SB 24-207, see section 1 of chapter 231, Session Laws of Colorado 2024.
40-2-127.2. Inclusive community solar development - definitions - subscription requirements - program capacity - energy bill credits - administration - rules - reports - applicability. (1) Definitions - rules. As used in this section, unless the context otherwise requires:
(a) Agrivoltaics has the meaning set forth in section 35-1-114 (4)(a).
(b) (I) Community solar bill credit means the credit value of the electricity generated by a community solar facility and allocated to a subscriber to offset the subscriber's utility bill.
(II) A community solar bill credit is calculated pursuant to the net metering credit methodology established in section 40-2-127 (5)(b)(II)(A) to (5)(b)(II)(H).
(c) Community solar facility, community solar project, or facility means a facility:
(I) Owned by a subscriber organization that generates electricity by means of a solar photovoltaic device;
(II) Through which a subscriber to the facility receives a community solar bill credit for the electricity generated in proportion to the subscriber's share of the facility's kilowatt-hour output;
(III) That constitutes retail distributed generation as described in section 40-2-124; and
(IV) That is allocated inclusive community solar capacity on or after January 1, 2026.
(d) Consolidated billing means the inclusion of the community solar bill credit and the subscription charges on a customer's monthly electric utility bill.
(e) Inclusive community solar means the capacity, interconnection, and subscription requirements set forth in this section with which an investor-owned electric utility, subscriber organization, and subscription coordinator must comply with regard to community solar facilities that are allocated capacity on or after January 1, 2026.
(f) Income-qualified subscriber means a residential utility customer who:
(I) Has a household income at or below two hundred percent of the current federal poverty line, as defined in 42 U.S.C. sec. 9902 (2);
(II) Has a household income at or below eighty percent of the area median income, as determined by the United States department of housing and urban development;
(III) Meets income eligibility requirements as determined by the Colorado department of human services by rule pursuant to section 40-8.5-105; or
(IV) Demonstrates participation in one or more of the income-qualified programs that are listed in subsection (5)(c)(III) of this section or that the commission determines pursuant to subsection (5)(c)(III)(G) of this section qualifies a prospective subscriber for eligibility as an income-qualified subscriber.
(g) Investor-owned electric utility or utility means a retail electric utility in the state that is not a cooperative electric association or a municipally owned electric utility.
(h) Preferred location means location on a rooftop; a parking lot; another impervious surface; a brownfield site, as defined in 42 U.S.C. sec. 9601 (39), as amended; a body of water; a municipal property; a state property; or another previously disturbed location as established by the commission as part of a distribution system plan pursuant to section 40-2-132 or other appropriate proceeding.
(i) Subscriber means a retail customer of an investor-owned electric utility that has one or more subscriptions with a community solar facility that is interconnected with the utility.
(j) Subscriber organization means a person that develops, owns, or operates a community solar facility and may include a municipality, a county, a for-profit organization, or a nonprofit organization but does not include an investor-owned electric utility.
(k) Subscription means a contract between a subscriber and a subscriber organization or a subscription coordinator for a portion of the output of a community solar facility.
(l) Subscription coordinator means a person that:
(I) Markets community solar facilities or otherwise provides services related to community solar facilities;
(II) Performs any administrative action to allocate subscriptions for a community solar facility, connect a subscriber to a community solar facility, or enroll a customer in a community solar facility; and
(III) Manages interactions between a subscriber organization and an investor-owned electric utility.
(2) Community solar facility and subscription requirements - rules. (a) A community solar facility must:
(I) Have a nameplate capacity rating of five megawatts or less, as measured in alternating current;
(II) Interconnect to the electric distribution system of an investor-owned electric utility;
(III) Comply with all applicable requirements of the Colorado Energy Sector Public Works Project Craft Labor Requirements Act, part 3 of article 92 of title 24, if the community solar facility qualifies as an energy sector public works project as defined in section 24-92-303 (5);
(IV) Reserve at least fifty-one percent of the community solar facility capacity for subscribers who are income-qualified subscribers; and
(V) Not allocate to a single subscriber more than forty percent of the generating capacity of the facility.
(b) A subscription to a community solar facility must:
(I) Supply no more than one hundred twenty percent of the subscriber's reasonably expected average annual total consumption of electricity; except that no more than two hundred percent of a subscriber's reasonably expected average annual total consumption of electricity may be supplied to a subscriber who is a direct bill, income-qualified subscriber; and
(II) Be portable and transferable within the service territory of the investor-owned electric utility in which the community solar facility is interconnected to the utility's electric grid.
(c) Community solar facilities that are owned by the same subscriber organization or by persons affiliated with the subscriber organization must not exceed five megawatt capacity measured in alternating current on a single parcel of land in an annual capacity allocation cycle.
(d) A community solar facility that is sited on a preferred location or that utilizes agrivoltaics may have an aggregate capacity of up to ten megawatts measured in alternating current.
(3) Inclusive community solar capacity - allocation - interconnection application - rules. (a) (I) On or after January 1, 2026, but before February 1, 2026, an investor-owned electric utility with more than five hundred thousand customers shall make available an annual capacity allocation of at least fifty megawatts of inclusive community solar capacity, and make available any unclaimed community solar capacity as determined in the utility's most recent commission-approved renewable energy plan, in accordance with this section.
(II) On or before February 1, 2027, an investor-owned electric utility with more than five hundred thousand customers shall make available an annual capacity allocation of at least fifty megawatts of inclusive community solar capacity, and make available any unclaimed inclusive community solar capacity from the previous allocation cycle, in accordance with this section.
(b) (I) On or after January 1, 2026, but before February 1, 2026, an investor-owned electric utility with five hundred thousand or fewer customers shall make available an annual capacity allocation of three and one-half megawatts of inclusive community solar capacity in accordance with this section.
(II) On or before February 1, 2027, an investor-owned electric utility with five hundred thousand or fewer customers shall make available an annual capacity allocation of three and one-half megawatts of inclusive community solar capacity available in accordance with this section.
(c) On or before February 1, 2028, and periodically thereafter, the commission shall determine, by rule or by order, the amount of inclusive community solar capacity that investor-owned electric utilities are required to make available and may adjust any requirements related to inclusive community solar specified in this section.
(d) (I) All inclusive community solar capacity made available pursuant to this section must be allocated to a subscriber organization that demonstrates site control, has received all applicable nonministerial permits, and has an executed interconnection agreement with the relevant utility.
(II) Except as provided in subsection (8)(b)(II) of this section, inclusive community solar capacity must be allocated on a first-come, first-served basis based on the day the application is received.
(e) In order to facilitate equitable access to clean energy, an investor-owned electric utility shall allow all interconnection applicants for retail distributed generation projects as described in section 40-2-124, including community solar facilities, to begin the interconnection process no later than sixty days after May 22, 2024.
(4) Community solar bill credits, unsubscribed electricity, and renewable energy credits - rules. (a) Beginning January 1, 2026, an investor-owned electric utility shall:
(I) Acquire the entire electrical output of a community solar facility that is connected to the utility's distribution system;
(II) Apply community solar bill credits to subscribers' monthly bills as soon as practicable but no later than sixty days after the month during which the community solar facility generated the electricity;
(III) Provide community solar bill credits to a community solar facility's subscribers for a term of twenty years after the date the facility begins generating bill credits or until the community solar facility is decommissioned or the subscriber organization ceases operations of a community solar facility, whichever occurs first;
(IV) Carry over any amount of a community solar bill credit that exceeds the subscriber's monthly bill and apply it to the subscriber's next monthly bill until the subscriber cancels service with the utility, at which point the utility shall donate any remaining community solar bill credits to a third-party administrator that is qualified and approved by the utility for the purpose of providing energy assistance and bill reductions to income-qualified subscribers within the utility's service territory;
(V) On a monthly basis, provide to a subscriber organization or subscription coordinator a report indicating the total value of community solar bill credits generated by the community solar facility in the prior month and the amount of the community solar bill credits applied to each subscriber; and
(VI) Provide, if an investor-owned electric utility has more than five hundred thousand customers, at the request of a subscriber organization or subscription coordinator, consolidated billing by:
(A) Including the subscriber organization's or subscription coordinator's monthly subscription charge on the customer's monthly bill for electric service and supply from the utility; and
(B) Remitting the customer's payment of the subscriber organization's or subscription coordinator's monthly subscription charge to the subscriber organization or subscription coordinator.
(b) A subscriber organization shall, on a monthly basis and in an electronic format, provide the investor-owned electric utility a subscriber list indicating the kilowatts of a community solar facility's nameplate capacity attributable to each subscriber. A subscriber organization shall update subscriber lists monthly to reflect any new subscribers, subscribers that have canceled their subscription, or subscribers that have adjusted subscription capacity.
(c) (I) An investor-owned electric utility's purchase of the output of a community solar facility must take the form of a community solar bill credit on the subscriber's monthly bill.
(II) An investor-owned electric utility shall calculate the community solar bill credit on a subscriber's monthly bill pursuant to the methodology established for community solar gardens in section 40-2-127 (5)(b)(II)(A) to (5)(b)(II)(H).
(d) If a community solar facility is not fully subscribed in a given month, the unsubscribed electricity generated by the facility may be rolled forward on the community solar facility account for up to one year after the month of generation and allocated by the subscriber organization or subscription coordinator to subscribers at any time during that year. At the end of the one-year period in which the unsubscribed electricity was rolled forward, any undistributed community solar bill credits are removed, and the investor-owned electric utility with which the community solar facility is interconnected shall purchase the unsubscribed energy at the utility's average hourly incremental cost of electricity supply over the immediately preceding calendar year.
(e) A subscriber organization, subscription coordinator, or subscriber may elect to donate banked community solar bill credits to a third-party administrator that is qualified and approved by the utility for the purpose of providing energy assistance and bill reductions to income-qualified subscribers within the utility's service territory.
(f) The subscriber organization shall retire any renewable energy credits for electricity generated by a community solar facility on behalf of the subscriber in the year the electricity is generated. The subscriber organization shall transfer any renewable energy credits for unsubscribed energy to the utility, which shall retire the credits on behalf of the utility's customers in the year the credits are generated in accordance with section 25-7-105 (1)(e)(VIII)(H).
(5) Subscriber enrollment, verification, and protections. (a) Subscriber organizations, subscription coordinators, and representatives of such persons are prohibited from:
(I) Using credit scores, utility customer scores, or any utility deposit requirements to approve or deny a prospective residential subscriber's participation in a community solar facility;
(II) Charging a sign-up fee or termination fee to a residential subscriber;
(III) Engaging in misleading or deceptive conduct; and
(IV) Making false or misleading representations.
(b) (I) A subscriber organization shall provide an income-qualified subscriber who is a subscriber a discount of at least twenty-five percent of the value of the subscriber's community solar bill credit by limiting the subscriber's subscription charge to no more than seventy-five percent of the value of the subscriber's community solar bill credit.
(II) For a community solar facility that receives federal tax incentives created by the federal Inflation Reduction Act of 2022, Pub.L. 117-169, for the specific purpose of being located in an energy community, the subscriber organization shall provide an income-qualified subscriber who is a subscriber a discount of at least thirty percent of the value of the subscriber's community solar bill credit by limiting the subscriber's subscription charge to no more than seventy percent of the value of the subscriber's community solar bill credit.
(III) For a community solar facility that receives federal tax incentives created by the federal Inflation Reduction Act of 2022, Pub.L. 117-169, to provide utility bill savings to income-qualified households pursuant to federal eligibility requirements, the subscriber organization shall provide an income-qualified subscriber who is a subscriber a discount of at least fifty percent of the value of the subscriber's community solar bill credit by limiting the subscriber's subscription charge to no more than fifty percent of the value of the subscriber's community solar bill credit.
(IV) For a community solar facility that receives both of the federal tax incentives described in subsections (5)(b)(II) and (5)(b)(III) of this section, the subscriber organization shall provide an income-qualified subscriber who is a subscriber a discount of at least fifty-five percent of the value of the subscriber's community solar bill credit by limiting the subscriber's subscription charge to no more than forty-five percent of the value of the subscriber's community solar bill credit.
(V) A subscriber organization or subscription coordinator shall provide, at the request of the commission, details regarding the guaranteed discounts described in subsections (5)(b)(I), (5)(b)(II), (5)(b)(III), and (5)(b)(IV) of this section granted to income-qualified subscribers in a form that is specified by the commission.
(VI) In the event that there is unclaimed inclusive community solar capacity, stakeholders may petition the commission to, or the commission may through an appropriate proceeding, consider altering the guaranteed discounts described in subsections (5)(b)(I), (5)(b)(II), (5)(b)(III), and (5)(b)(IV) of this section for income-qualified subscribers.
(c) A subscriber organization or subscription coordinator shall use any one or more of the following methods to verify the income of a prospective subscriber, or a member of the household for which the subscription is attributed, for eligibility as an income-qualified subscriber:
(I) Self-attestation;
(II) Proof of residence in an affordable housing community; or
(III) Evidence of eligibility for or enrollment in at least one of the following programs:
(A) The weatherization assistance program in the Colorado energy office, as described in section 24-38.5-102 (1)(g);
(B) The supplemental nutrition assistance program in the department of human services, established in part 3 of article 2 of title 26;
(C) Medicaid, as defined in section 10-16-1203 (8);
(D) The head start program in the department of early childhood, as defined in section 26.5-4-103 (6);
(E) Free and reduced-price school meals pursuant to the federal Richard B. Russell National School Lunch Act, 42 U.S.C. sec. 1751 et seq., or a similar free or reduced-price school meals program;
(F) The federal low-income home energy assistance program administered by the United States department of health and human services' administration for children and families pursuant to 42 U.S.C. sec. 8621 et seq., as amended; or
(G) Any other governmental or local assistance program that the commission determines qualifies a prospective subscriber for eligibility as an income-qualified subscriber.
(d) The commission shall adopt a uniform disclosure form that identifies the information that a subscriber organization or subscription coordinator shall provide to a potential subscriber. The disclosure form must:
(I) Disclose future costs and benefits of subscriptions;
(II) Disclose key contract terms;
(III) Provide grievance, enforcement, and cancellation procedures;
(IV) Provide other relevant information pertaining to the subscriptions; and
(V) Be offered in both English and Spanish languages and, when appropriate, Native American or Indigenous languages.
(e) Subscriber organizations are encouraged to conduct targeted outreach to tribal customers by partnering with Colorado-based nonprofit organizations that have a primary mission of improving the socioeconomic conditions of and providing energy assistance for tribal customers who are not located on a reservation.
(6) Cost recovery. An investor-owned electric utility shall be allowed to recover prudently incurred costs, including energy purchases and administrative and information technology expenses, in a manner approved by the commission by rule or other appropriate mechanism.
(7) Interconnection - reports. (a) An investor-owned electric utility shall share all results from any interconnection study conducted pursuant to commission rules with the interconnection applicant pursuant to utility confidentiality requirements.
(b) On or before January 31, 2025, an investor-owned electric utility with more than five hundred thousand customers shall file with the commission updates to appropriate tariffs that are necessary to implement pro rata interconnection cost-sharing mechanisms for system upgrades whereby a community solar facility only pays the facility's proportional share of newly created hosting capacity associated with the facility.
(c) When an investor-owned electric utility with more than five hundred thousand customers files a distribution system plan with the commission pursuant to section 40-2-132, the investor-owned electric utility shall:
(I) Provide information when interconnection costs for a community solar facility exceed twenty cents per watt, measured in alternating current, and propose to the commission potential solutions to facilitate future interconnections in that same geographic area that may include:
(A) Cost-sharing mechanisms among subscriber organizations or between an interconnection applicant and the utility;
(B) Distribution grid upgrades, such as distributed energy storage, which may be funded by the utility, interconnection applicant, or some combination of the utility and interconnection applicant; or
(C) Flexible interconnection practices; and
(II) Include the following information in a report to the commission as part of the distribution system plan, which is filed with the commission pursuant to section 40-2-132:
(A) The amount of inclusive community solar capacity awarded pursuant to this section;
(B) The amount of operational community solar capacity developed pursuant to this section and section 40-2-127; and
(C) A narrative detailing the utility's progress toward facilitating cost-effective interconnection of community solar facilities with the utility's distribution system.
(8) Program administration. (a) The commission shall:
(I) Adopt and enforce all rules required under this section;
(II) Require investor-owned electric utilities to file the tariffs, the agreements, or other forms necessary for the implementation of this section;
(III) Establish a deadline by which an investor-owned electric utility with more than five hundred thousand customers shall implement a consolidated billing program and direct the utility to track all costs associated with implementing and operating the consolidated billing program so that the commission may establish a fee to be paid to the investor-owned electric utility by subscriber organizations that elect to utilize a consolidated billing program in order to offset the costs of implementing and operating the consolidated billing program;
(IV) Coordinate with the Colorado energy office created in section 24-38.5-101 (1) to ensure alignment with any federal grant funding received by the state for the purpose of supporting low-income community solar projects;
(V) Clarify that subscriber organizations, subscription coordinators, or subscribers are not considered public utilities subject to regulation by the commission solely as a result of their participation in inclusive community solar;
(VI) Consider the integration of community solar subscriptions for income-qualified subscribers with other programs designed to reduce customer utility bills and deliver energy-related services, including programs related to demand-side management, beneficial electrification, and transportation electrification; and
(VII) Conduct multilingual and culturally relevant outreach to engage, educate, and solicit input from representatives from disproportionately impacted communities, in accordance with section 40-2-108, and consider additional strategies as necessary to ensure robust participation by members of disproportionately impacted communities in any rule-making related to inclusive community solar. The commission shall consider a process to compensate individuals who participate in the outreach for their participation, at a level determined appropriate by the commission.
(b) On or before November 1, 2025, an investor-owned electric utility shall file an application with the commission, either as a standalone application or as part of another application that is being filed with the commission, that:
(I) Enables the allocation of inclusive community solar capacity that is required to be made available by the investor-owned electric utility pursuant to this section; and
(II) Establishes a process for the investor-owned electric utility to prioritize community solar facilities located on preferred locations over community solar facilities not located on preferred locations, which process must only be used to prioritize between facilities applying for inclusive community solar capacity on the day that qualified community solar facility applications exceed the remaining available capacity in an annual capacity allocation cycle; however, the investor-owned electric utility shall not create a waiting list that carries over into the next year.
(c) On or before January 1, 2029, the commission shall report to the house of representatives energy and environment committee and the senate transportation and energy committee, or their successor committees, on the community solar facilities developed pursuant to this section. The report must include:
(I) The percentage of awarded inclusive community solar capacity that was successfully interconnected to investor-owned electric utility distribution systems;
(II) The total number of income-qualified subscribers who are subscribers served by a community solar facility and any impacts that the subscriptions have on the average annual bill cost of those income-qualified subscribers;
(III) The total number of income-qualified subscribers who participated in inclusive community solar in conjunction with other programs designed to reduce customer utility bills, support beneficial electrification, and advance energy efficiency; and
(IV) Any other information related to community solar facilities developed pursuant to this section that the commission deems necessary.
(9) Applicability. (a) This section applies to inclusive community solar capacity that is allocated on or after January 1, 2026.
(b) Community solar capacity that is allocated on or before December 31, 2025, is allocated pursuant to section 40-2-127.
Source: L. 2024: Entire section added, (SB 24-207), ch. 231, p. 1424, � 3, effective May 22.
Cross references: For the legislative declaration in SB 24-207, see section 1 of chapter 231, Session Laws of Colorado 2024.
40-2-127.5. Community energy funds - community geothermal gardens - rules - legislative declaration - definitions - repeal. (1) Legislative declaration. The general assembly hereby finds and declares that:
(a) Local communities can benefit from the further development of renewable energy, energy efficiency, conservation, and environmental improvement projects, and the general assembly hereby encourages electric utilities to establish community energy funds for the development of such projects;
(b) It is in the public interest that broader participation in geothermal electric generation by Colorado residents and commercial entities be encouraged by the development and deployment of distributed geothermal electric generating facilities known as community geothermal gardens in order to:
(I) Provide Colorado residents and commercial entities with the opportunity to participate in geothermal electricity generation;
(II) Allow renters, low-income utility customers, and agricultural producers to own interests in such geothermal generation facilities;
(III) Allow interests in such geothermal generation facilities to be portable and transferrable; and
(IV) Leverage Colorado's geothermal electricity generating capacity through economies of scale.
(2) Definitions. As used in this section, unless the context otherwise requires, the definitions in section 40-2-124 apply, and:
(a) (I) Community geothermal garden means a geothermal facility that produces electricity from the earth's heat with a nameplate rating within the range specified under subsection (2)(a)(IV) of this section that is located in or near a community served by a qualifying retail utility where the beneficial use of the electricity generated by the facility belongs to the subscribers to the community geothermal garden. There must be at least ten subscribers. The owner of the community geothermal garden may be the qualifying retail utility or any other for-profit or nonprofit entity or organization, including a subscriber organization organized under this section, that contracts to sell the output from the community geothermal garden to the qualifying retail utility. A community geothermal garden is deemed to be located on the site of customer facilities.
(II) A community geothermal garden constitutes retail distributed generation within the meaning of section 40-2-124.
(III) Notwithstanding any provision of this section or section 40-2-124 to the contrary, a community geothermal garden constitutes retail distributed generation for purposes of a cooperative electric association's compliance with the applicable renewable energy standard under section 40-2-124.
(IV) A community geothermal garden must have a nameplate rating of five megawatts or less; except that the commission may, in rules adopted pursuant to subsection (3)(b) of this section, approve the formation of a community geothermal garden with a nameplate rating of up to ten megawatts.
(b) Subscriber means a retail customer of a qualifying retail utility who owns a subscription and who has identified one or more physical locations to which the subscription is attributed. Such physical locations must be within the service territory of the same qualifying retail utility as the community geothermal garden. The subscriber may change from time to time the premises to which the community geothermal garden electricity generation is attributed, so long as the premises are within the same service territory.
(c) Subscription means a proportional interest in geothermal electric generation facilities installed at a community geothermal garden, together with the renewable energy credits associated with or attributable to such facilities under section 40-2-124. Each subscription must be sized to represent at least one kilowatt of the community geothermal garden's generating capacity and to supply no more than one hundred twenty percent of the average annual consumption of electricity by each subscriber at the premises to which the subscription is attributed, with a deduction for the amount of any existing geothermal facilities at such premises. Subscriptions in a community geothermal garden may be transferred or assigned to a subscriber organization or to any person or entity who qualifies to be a subscriber under this section.
(3) Subscriber organization - subscriber qualifications - transferability of subscriptions. (a) The community geothermal garden may be owned by a subscriber organization whose sole purpose is beneficially owning and operating a community geothermal garden. The subscriber organization may be any for-profit or nonprofit entity permitted by Colorado law. The community geothermal garden may also be built, owned, and operated by a third party under contract with the subscriber organization.
(b) The commission shall adopt rules as necessary to implement this section, including rules to facilitate the financing of subscriber-owned community geothermal gardens. The rules must include:
(I) Minimum capitalization;
(II) The share of a community geothermal garden's geothermal electric generation facilities that a subscriber organization may at any time own in its own name; and
(III) Authorizing subscriber organizations to enter into leases, sale-and-leaseback transactions, operating agreements, and other ownership arrangements with third parties.
(c) If a subscriber ceases to be a customer at the premises on which the subscription is based but, within a reasonable period as determined by the commission, becomes a customer at another premises in the service territory of the qualifying retail utility and within the geographic area served by the community geothermal garden, the subscription continues in effect but the bill credit and other features of the subscription are adjusted as necessary to reflect any differences between the new and previous premises' customer classification and average annual consumption of electricity.
(4) Standards for construction and operation. The following requirements apply to any community geothermal garden exceeding two megawatts:
(a) The initial installation of any electrical equipment associated with the community geothermal garden is subject to final inspection and approval in accordance with section 12-115-120.
(b) Following the development or acquisition by a qualifying retail utility of a community geothermal garden in which the qualifying retail utility retains ownership, the qualifying retail utility shall either use its own employees to operate and maintain the community geothermal garden or contract for operation and maintenance of the community geothermal garden by a contractor whose employees have access to an apprenticeship program registered with the United States department of labor's office of apprenticeship or with a state apprenticeship agency recognized by that office; except that this apprenticeship requirement does not apply to:
(I) The design, planning, or engineering of the infrastructure;
(II) Management functions to operate the infrastructure; or
(III) Any work included in a warranty.
(5) Community geothermal gardens not subject to regulation. Neither the owners of nor the subscribers to a community geothermal garden are considered public utilities subject to regulation by the commission solely as a result of their interest in the community geothermal garden. Prices paid for subscriptions in community geothermal gardens shall not be subject to regulation by the commission.
(6) Purchases of the output from community geothermal gardens. (a) (I) Each qualifying retail utility may set forth in its plan for acquisition of renewable resources a plan to purchase the electricity and renewable energy credits generated from one or more community geothermal gardens over the period covered by the plan.
(II) For each qualifying retail utility's compliance years commencing in 2026 and thereafter, the commission shall determine the minimum and maximum purchases of electrical output from newly installed community geothermal gardens of different output capacity that the qualifying retail utility may plan to acquire. In addition, as necessary and appropriate, the commission shall formulate and implement policies consistent with this section that simultaneously encourage:
(A) The ownership by customers of subscriptions in community geothermal gardens and of other forms of distributed generation, to the extent the commission finds there to be customer demand for such ownership;
(B) Ownership in community geothermal gardens by residential retail customers and agricultural producers, including low-income customers, to the extent the commission finds there to be demand for such ownership;
(C) The development of community geothermal gardens with attributes that the commission finds result in lower overall total costs for the qualifying retail utility's customers;
(D) Successful financing and operation of community geothermal gardens owned by subscriber organizations; and
(E) The achievement of the goals and objectives of section 40-2-124.
(b) (I) (A) The output from a community geothermal garden must be sold only to the qualifying retail utility serving the geographic area where the community geothermal garden is located.
(B) Once a community geothermal garden is part of a qualifying retail utility's plan for acquisition of renewable resources, as approved by the commission, the commission shall initiate a proceeding, or consider in an active proceeding, to determine whether the qualifying retail utility must purchase all of the electricity and renewable energy credits generated by the community geothermal garden or whether a subscriber may, upon becoming a subscriber, choose to retain or sell to the qualifying retail utility the subscriber's renewable energy credits.
(C) The amount of electricity and renewable energy credits generated by each community geothermal garden is determined by a production meter installed by the qualifying retail utility or third-party system owner and paid for by the owner of the community geothermal garden.
(II) The purchase of the output of a community geothermal garden by a qualifying retail utility takes the form of a net metering credit against the qualifying retail utility's electric bill to each community geothermal garden subscriber at the premises set forth in the subscriber's subscription. The net metering credit is calculated by multiplying the subscriber's share of the electricity production from the community geothermal garden by the qualifying retail utility's total aggregate retail rate as charged to the subscriber, minus a reasonable charge as determined by the commission to cover the utility's costs of delivering to the subscriber's premises the electricity generated by the community geothermal garden, integrating the geothermal generation with the utility's system, and administering the community geothermal garden's contracts and net metering credits. The commission shall ensure that this charge does not reflect costs that are already recovered by the utility from the subscriber through other charges. If, and to the extent that, a subscriber's net metering credit exceeds the subscriber's electric bill in any billing period, the net metering credit is carried forward and applied against future bills. The qualifying retail utility and the owner of the community geothermal garden must agree on whether the purchase of the renewable energy credits from subscribers will be accomplished through a credit on each subscriber's electricity bill or by a payment to the owner of the community geothermal garden.
(c) The owner of the community geothermal garden must provide real-time production data to the qualifying retail utility to facilitate incorporation of the community geothermal garden into the utility's operation of its electric system and to facilitate the provision of net metering credits.
(d) The owner of the community geothermal garden is responsible for providing to the qualifying retail utility, on a monthly basis and within reasonable periods set by the qualifying retail utility, the percentage shares that should be used to determine the net metering credit to each subscriber. If the electricity output of the community geothermal garden is not fully subscribed, the qualifying retail utility shall purchase the unsubscribed renewable energy and the renewable energy credits at a rate equal to the qualifying retail utility's average hourly incremental cost of electricity supply over the immediately preceding calendar year.
(e) If a qualifying retail utility includes a plan to purchase the electricity and renewable energy credits generated by one or more community geothermal gardens, then the qualifying retail utility shall set forth in its plan for acquisition of renewable resources a proposal for including low-income customers as subscribers to a community geothermal garden, if possible. The utility may give preference to community geothermal gardens that have low-income subscribers.
(f) Qualifying retail utilities are eligible for the incentives and subject to the ownership limitations set forth in section 40-2-124 (1)(f) for utility investments in community geothermal gardens and may recover through rates a margin, in an amount determined by the commission, on all energy and renewable energy credits purchased from community geothermal gardens. Such incentive payments are excluded from the cost analysis required by section 40-2-124 (1)(g).
(7) Nothing in this section waives or supersedes the retail rate impact limitations in section 40-2-124 (1)(g). Utility expenditures for unsubscribed energy and renewable energy credits generated by community geothermal gardens must be included in the calculations of retail rate impact required by that section.
(8) Applicability to cooperative electric associations and municipally owned utilities. This section shall not apply to cooperative electric associations or to municipally owned utilities.
Source: L. 2022: Entire section added, (SB 22-118), ch. 335, p. 2373, � 11, effective August 10. L. 2023: IP(4)(b) amended, (SB 23-051), ch. 37, p. 150, � 34, effective March 23.
40-2-128. Solar photovoltaic installations - supervision - qualifications of electrical contractors - definitions. (1) For all photovoltaic installations allowed under section 40-2-124 with a direct current design capacity of less than three hundred kilowatts:
(a) (I) (A) The performance of all photovoltaic electrical work, the installation of photovoltaic modules, and the installation of photovoltaic module mounting equipment is subject to on-site supervision by a certified photovoltaic energy practitioner, as designated by the North American Board of Certified Energy Practitioners (NABCEP) and that is working for a photovoltaic installer, or a licensed master electrician, licensed journeyman electrician, or licensed residential wireman, as those terms are defined in section 12-115-103.
(B) In the case of building-integrated photovoltaic technology, if the type of building-integrated photovoltaic technology installed or the scope of the building-integrated photovoltaic installation involved does not require a licensed master electrician, licensed journeyman electrician, or licensed residential wireman to perform the installation work and the installation work concerns the installation of roofing materials, the on-site supervision may be performed by a certified solar energy installer, as designated by NABCEP or Roof Integrated Solar Energy (RISE).
(C) For a building-integrated photovoltaic installation, a licensed master electrician, licensed journeyman electrician, or licensed residential wireman must perform the installation work for any stage of the installation after the installation materials penetrate the roof, a structural wall, or another part of the building, or any stage of the installation in which the building-integrated photovoltaic materials transition to a surface-mounted junction box and utilize types of conduit and building wire that are approved by the national electrical code, as defined in section 12-115-103 (8).
(D) By submitting an initial application for funding or an initial contract proposal, the applicant assumes responsibility for employing or contracting with one or more certified energy practitioners or licensed master electricians, licensed journeyman electricians, or licensed residential wiremen to supervise the installation and as necessary to maintain the three-to-one ratio required by subsection (1)(b) of this section, including during any off-site, preinstallation assembly. Payment of any incentives for the work shall not be approved until the applicant supplies the name and certification number of each certified energy practitioner or the license number of each master electrician, journeyman electrician, or residential wireman who actually provided on-site supervision or was present to maintain the three-to-one ratio required by subsection (1)(d) of this section.
(II) Neither the commission nor the utility shall have responsibility for monitoring or enforcing compliance with this section. It shall be the responsibility of the applicant to obtain the information required by subparagraph (I) of this paragraph (a), and it shall be the responsibility of the qualifying retail utility to obtain from the applicant and retain, for at least one year after completion of the installation, copies of all documentation submitted by the applicant in connection with the installation.
(b) All work performed on the alternating-current side of the inverter will be performed by an electrical contractor who employs a licensed journeyman electrician or a licensed residential wireman who will perform the work. All electrical work that pertains to article 115 of title 12 will be performed by an electrical apprentice registered with the appropriate state regulatory agency, a licensed journeyman electrician, or a licensed residential wireman. The appropriate ratio of no less than one journeyman or residential wireman for every three electrical apprentices will be maintained.
(c) Repealed.
(d) On a system with a direct current design capacity of less than three hundred kilowatts:
(I) The ratio of the number of persons who are assisting with the work and who are neither licensed electricians nor registered electrical apprentices to the number of persons who are certified as provided in paragraph (a) of this subsection (1) shall never exceed three to one, and a person who is both licensed and certified shall not count double for purposes of measuring this ratio, during the following stages:
(A) The installation of photovoltaic modules;
(B) The installation of photovoltaic module mounting equipment; and
(C) Any photovoltaic electrical work; and
(II) There shall be, at all times, at least one on-site supervisor who is certified as provided in paragraph (a) of this subsection (1).
(2) As used in this section, unless the context otherwise requires:
(a) (I) Photovoltaic electrical work means electrical work performed on a photovoltaic system that is covered electrical work in accordance with the national electrical code, including articles 90.2 (1), 90.2 (3), 100, and 690 of the national electrical code.
(II) Photovoltaic electrical work includes the preinstallation assembly of photovoltaic modules to photovoltaic module mounting equipment for installation on-site.
(III) Photovoltaic electrical work does not include site preparation, trenching or excavating, hauling, or other work that is not specifically described in subparagraph (I) or (II) of this paragraph (a).
(a.5) Photovoltaic installer means a contractor that:
(I) Is not a registered electrical contractor, as defined in section 12-115-103 (4);
(II) Is registered with the state electrical board as a photovoltaic installer pursuant to section 12-115-110 (7) no later than December 31, 2026;
(III) Is a business in good standing with the state and registered with the secretary of state;
(IV) Is performing photovoltaic electrical work as of September 1, 2025; and
(V) Employs a NABCEP PV installation professional, as defined in section 12-115-103 (7.7).
(b) Photovoltaic module means the module or panel that generates electricity through a photovoltaic process.
(c) Photovoltaic module mounting equipment means the racking, mounting, apparatus, equipment, or structure that physically supports and secures one or more photovoltaic modules in place or to a roof, wall, foundation, or pedestal.
(3) This section does not affect the state electrical board's regulation of photovoltaic electrical work performed on photovoltaic installations with a current design capacity of at least three hundred kilowatts pursuant to section 12-115-107 (2)(f).
Source: L. 2010: Entire section added, (HB 10-1001), ch. 37, p. 150, � 4, effective August 11. L. 2013: IP(1) and (1)(a)(I) amended, (SB 13-186), ch. 159, p. 513, � 2, effective May 3. L. 2019: IP(1), (1)(a)(I)(D), and IP(1)(d) amended and (1)(c) repealed, (HB 19-1003), ch. 360, p. 3338, � 3, effective August 2; (1)(a)(I)(A), (1)(a)(I)(C), and (1)(b) amended, (HB 19-1172), ch. 136, p. 1732, � 258, effective October 1. L. 2025: (1)(a)(I)(A) and (2)(a)(I) amended and (2)(a.5) and (3) added, (SB 25-165), ch. 370, p. 1999, � 4, effective August 6.
40-2-129. New resource acquisitions - factors in determination - local employment - best value employment metrics - rules - report. (1) (a) (I) When evaluating electric resource acquisitions and requests for a certificate of convenience and necessity for construction or expansion of generating facilities, including but not limited to pollution control or fuel conversion upgrades and conversion of existing coal-fired plants to natural gas plants, the commission shall consider, in all decisions involved in electric resource acquisition processes, best value regarding employment of Colorado labor, as defined in section 8-17-100.3 (1), and positive impacts on the long-term economic viability of Colorado communities. To this end, the commission shall require utilities to obtain and provide to the commission the following information regarding best value employment metrics:
(A) The availability of training programs, including training through apprenticeship programs registered with the United States department of labor's office of apprenticeship or by state apprenticeship agencies recognized by that office for all apprenticeable trades required to effectively deliver the project to completion;
(B) Employment of Colorado labor as compared to importation of out-of-state workers;
(C) The ability of the project to employ workers from traditionally underserved communities or disproportionately impacted communities as defined in section 24-4-109 (2)(b)(II);
(D) How the project supports domestic manufacturing through the utilization of Colorado and domestically produced materials, including consideration of the potential for domestically manufactured materials being unavailable in the marketplace;
(E) Long-term career opportunities; and
(F) Industry-standard wages, health care, and pension benefits.
(II) When a utility proposes to construct new facilities of its own, the utility shall supply similar information to the commission.
(b) Any electric resource acquisition decision must be based in part on review of the best value employment metrics criteria set forth in any solicitation document. The commission shall not approve any electric resource plan, acquisition, or power purchase agreement that fails to either:
(I) Provide the best value employment metrics documentation specified in the solicitation document; or
(II) In the alternative, certify compliance with objective best value employment metrics performance standards set forth in the solicitation document.
(c) The commission may waive the requirements of this section if a utility agrees to use a project labor agreement for construction or expansion of a generating facility.
(2) Following development or acquisition of a generating facility by a utility, for all generating facilities owned by the utility that do not emit carbon dioxide, the utility shall use utility employees or qualified contractors if the contractors' employees have access to an apprenticeship program registered with the United States department of labor's office of apprenticeship or by a state apprenticeship agency recognized by that office; except that this apprenticeship requirement does not apply to:
(a) The design, planning, or engineering of the infrastructure;
(b) Management functions to operate the infrastructure; or
(c) Any work included in a warranty.
(3) The provisions of this section regarding best value employment metrics do not apply to projects involving retail distributed generation, as defined in section 40-2-124 (1)(a)(VIII), 40-2-127 (2)(b)(I)(B), or 40-2-127.5 (2)(a)(II).
(4) Repealed.
(5) The commission shall promulgate rules requiring utilities, when submitting annual progress reports for an electric resource acquisition, to collect and provide to the commission information concerning the implementation of best value employment metrics, as described in subsection (1)(a) of this section, which metrics were approved by the commission during the acquisition planning process and which acquisitions are under construction by either the utility or by others.
(6) (a) On or before December 31, 2024, and on or before December 31 of each year thereafter, the commission shall submit a report to the energy and environment committee of the house of representatives and the transportation and energy committee of the senate, or any successor committees. The report must summarize the information concerning best value employment metrics that is reported to the commission by utilities pursuant to subsections (1)(a) and (5) of this section and indicate the manner in which the commission considered the information.
(b) Notwithstanding the limitation described in section 24-1-136 (11)(a)(I), the reporting requirement described in subsection (6)(a) of this section continues in perpetuity.
Source: L. 2010: Entire section added, (HB 10-1001), ch. 37, p. 150, � 4, effective August 11. L. 2013: Entire section amended, (HB 13-1292), ch. 266, p. 1406, � 16, effective May 24. L. 2019: Entire section amended, (SB 19-236), ch. 359, p. 3300, � 7, effective May 30. L. 2020: (1)(a) and IP(2) amended, (HB 20-1402), ch. 216, p. 1058, � 71, effective June 30. L. 2021: (4) added, (HB 21-1266), ch. 411, p. 2751, � 22, effective July 2. L. 2022: (3) amended, (SB 22-118), ch. 335, p. 2380, � 15, effective August 10. L. 2023: (1)(a) and IP(2) amended, (SB 23-051), ch. 37, p. 150, � 35, effective March 23; (1)(a) amended, (4) repealed, and (5) and (6) added, (SB 23-292), ch. 247, p. 1360, � 6, effective January 1, 2024. L. 2025: IP(1)(a)(I) amended, (SB 25-275), ch. 377, p. 2034, � 29, effective August 6.
Editor's note: Amendments to subsection (1)(a) by SB 23-051 and SB 23-292 were harmonized, effective January 1, 2024.
Cross references: (1) For the short title (Keep Jobs In Colorado Act of 2013) in HB 13-1292, see section 1 of chapter 266, Session Laws of Colorado 2013.
(2) For the short title (Environmental Justice Act) and the legislative declaration in HB 21-1266, see sections 1 and 2 of chapter 411, Session Laws of Colorado 2021.
40-2-130. Distributed resources - energy storage systems - definitions - legislative declaration - rules. (1) Legislative declaration. (a) The general assembly finds and determines that:
(I) Colorado's economy, as well as the health and safety of its residents, depends on a reliable and efficient supply of electricity; and
(II) The threat of interruptions in electric supply due to weather, malicious interference, or malfunctions in centralized generation and transmission facilities makes distributed resources, including energy storage systems paired with other distributed resources, an effective way for residents to provide their own reliable and efficient supply of electricity.
(b) Therefore, the general assembly declares that:
(I) It is in the public interest to limit barriers to the installation, interconnection, and use of customer-sited energy storage facilities in Colorado; and
(II) Colorado's consumers of electricity have a right to install, interconnect, and use energy storage systems on their property without the burden of unnecessary restrictions or regulations and without unfair or discriminatory rates or fees.
(2) Definitions. As used in this section, unless the context otherwise requires:
(a) Energy storage system means any commercially available, customer-sited system, including batteries and the batteries paired with on-site generation, that is capable of retaining, storing, and delivering energy by chemical, thermal, mechanical, or other means.
(b) Utility or electric utility means a qualifying retail utility, as described in section 40-2-124 (1); except that the term does not include a municipally owned utility or a cooperative electric association.
(3) Authority of commission - rules. The commission shall adopt rules allowing the installation, interconnection, and use of energy storage systems by customers of utilities. The commission shall incorporate the following principles into the rules:
(a) It is in the public interest to limit barriers to the installation, interconnection, and use of customer-sited energy storage systems in Colorado;
(b) Colorado's consumers of electricity have a right to install, interconnect, and use energy storage systems on their property without the burden of unnecessary restrictions or regulations and without discriminatory rates or fees;
(c) Utility approval processes and any required interconnection reviews of energy storage systems shall be simple, streamlined, and affordable for customers; and
(d) Utilities shall not require the installation of customer-sited meters in addition to a single net energy meter for the purposes of monitoring energy storage systems; except that the commission may authorize the requirement of metering for certain large energy storage systems, as determined by the commission.
(4) Nothing in this section alters or supersedes either:
(a) The principles of net metering as described in section 40-2-124; or
(b) Any existing electrical permit requirements or any licensing or certification requirements for installers, manufacturers, or equipment.
Source: L. 2018: Entire section added, (SB 18-009), ch. 45, p. 476, � 1, effective August 8.
40-2-130.5. Dispatchable distributed generation - energy storage - definitions - program capacity - program administration - rules. (1) Definitions. As used in this section, unless the context otherwise requires:
(a) Dispatchable distributed generation means distributed generation paired with a co-located energy storage system that is:
(I) Directly interconnected to an investor-owned electric utility's distribution system and is not behind a customer meter; and
(II) Measured by the capacity of the distributed generation in alternating current.
(b) Distributed generation means a renewable energy resource as defined in section 40-2-124 (1)(a)(VII) that interconnects to a utility's distribution system.
(c) Energy storage system has the same meaning as set forth in section 40-2-130 (2)(a).
(d) Investor-owned electric utility or utility means a retail electric utility in the state that is not a cooperative electric association or a municipally owned electric utility.
(2) Program capacity. (a) On or before June 1, 2026, an investor-owned electric utility with more than five hundred thousand customers shall acquire at least fifty megawatts of dispatchable distributed generation.
(b) On or after January 1, 2027, but before June 1, 2027, an investor-owned electric utility with more than five hundred thousand customers shall acquire at least fifty megawatts of dispatchable distributed generation.
(c) To ensure that an investor-owned electric utility with more than five hundred thousand customers acquires dispatchable distributed generation in accordance with subsections (2)(a) and (2)(b) of this section, the commission shall:
(I) Determine the procedures for a utility to acquire dispatchable distributed generation;
(II) Establish a methodology that ascribes value to dispatchable distributed generation located in specific areas of the electric grid in order to direct the development of dispatchable distributed generation resources in optimal locations; and
(III) Adopt any other program- or project-specific requirements the commission deems necessary to facilitate the acquisition of dispatchable distributed generation, including all applicable requirements of the Colorado Energy Sector Public Works Project Craft Labor Requirements Act, part 3 of article 92 of title 24, for dispatchable distributed generation projects that qualify as an energy sector public works project as defined in section 24-92-303 (5).
(d) On or before June 1, 2028, and periodically thereafter, the commission shall determine the procedure and capacity amounts for future acquisitions of dispatchable distributed generation by an investor-owned electric utility.
(3) Program administration. The commission shall:
(a) Adopt and enforce all rules required under this section;
(b) Require all applicable investor-owned electric utilities to file the tariffs, agreements, or other forms and documents necessary for the implementation of this section; and
(c) Consult with the Colorado electric transmission authority, created in section 40-42-103, as necessary to plan for and optimize the use of dispatchable distributed generation that is acquired and developed in accordance with this section.
Source: L. 2024: Entire section added, (SB 24-207), ch. 231, p. 1434, � 4, effective May 22.
Cross references: For the legislative declaration in SB 24-207, see section 1 of chapter 231, Session Laws of Colorado 2024.