SB 25-182: Embodied Carbon Reduction - Colorado

Revised (04/24/2025) → PA1 (03/13/2025) · 2 edits

MINOR

The bill was amended to change its status from a revised version to a preamended version, indicating that committee amendments have been added but not yet adopted by the full Senate. The most significant substantive change is the addition of a new Section 4 that subjects the bill to a referendum petition process, meaning the act will not take effect unless approved by voters at the November 2026 general election if a petition is filed within 90 days after the legislative session ends.

Scope change

The bill's effective date and implementation timeline changed significantly. Previously, the bill would have taken effect immediately upon passage, but now it includes a referendum provision that allows voters to block the legislation through a petition process before it becomes law.

TIMELINE

Added a new Section 4 establishing that the bill is subject to a referendum petition process. If a petition is filed within 90 days after the general assembly adjourns, the act will not take effect unless approved by voters at the November 2026 general election.

TECHNICAL

Changed the document header from 'REVISED' (indicating all amendments adopted) to 'PREAMENDED' (indicating unofficial version with committee amendments not yet adopted). Also updated sponsor lists and committee assignments.

Rerevised (04/25/2025) → Revised (04/24/2025) · 2 edits

MINOR

The bill was revised to update its title and sponsorship information, and added language to clarify that the cradle-to-gate measurement baseline includes raw material extraction, processing, transportation, and manufacturing stages. This change ensures the environmental impact assessment covers the entire early lifecycle of a product, not just manufacturing.

Scope change

The scope of the environmental measurement baseline was expanded to explicitly include raw material extraction and processing, transportation to the manufacturer, and manufacturing stages.

DEFINITION

Added specific language defining the cradle-to-gate measurement baseline to include raw material extraction, processing, transportation, and manufacturing.

TECHNICAL

Updated bill header information to reflect revised status and adjusted sponsor listing format.

Final Act (05/02/2025) → Rerevised (04/25/2025) · 3 edits

MINOR

The bill was reorganized and renumbered to reflect its final passage, with the title and header information updated to show it has been adopted by both houses. The substantive policy content regarding embodied carbon improvements and tax credits remains consistent with the earlier versions, though the formatting and page structure were adjusted for the final legislative record.

Scope change

None; the bill's scope and applicability remain unchanged from the previous versions.

TECHNICAL

Header information was updated to reflect the bill's final passage status, including new session dates and reading statuses.

Page numbering and layout were adjusted to conform to the final legislative record format.

POLICY

The core policy provisions regarding embodied carbon definitions, tax credit eligibility, and legislative declarations remain substantively the same as previous versions.

Signed Act (05/28/2025) → Final Act (05/02/2025) · 4 edits

MODERATE

This bill amends definitions and eligibility criteria for embodied carbon investments in Colorado's tax code, clarifying requirements for qualifying materials and processes. The changes update cross-references to existing statutes, correct typographical errors, and standardize formatting for signatures and approval sections. These modifications ensure legal consistency and clarity without altering the core policy intent of the legislation.

Scope change

No substantive change to the bill's scope or applicability; changes are primarily technical corrections and formatting updates.

DEFINITION

Corrected a typographical error in Section 32-20-103(XVIII) changing 'arrd' to 'and' for proper grammatical structure.

ELIGIBILITY

Updated cross-reference in Section 32-20-103(XVIII.5) from 'SECTION 24-92-118 (WM' to 'SECTION 24-92-118 (2)(b)' to accurately reference the relevant statute.

TECHNICAL

Standardized signature blocks for legislative officials by replacing handwritten-style text with blank lines for proper execution.

Corrected minor formatting inconsistencies in definition numbering and spacing throughout the document.

Reengrossed (04/17/2025) → Signed Act (05/28/2025) · 4 edits · May 28, 2025

MODERATE

This bill adds 'embodied carbon improvements' to Colorado's clean energy tax credit program, allowing businesses to claim tax credits for investments in materials that reduce greenhouse gas emissions during production. The change expands the definition of qualifying energy improvements to include cradle-to-gate embodied carbon reductions of at least 15%.

Scope change

The bill's scope expanded from only on-site energy efficiency improvements to also include embodied carbon improvements in material production

DEFINITION

Added a new definition for 'embodied carbon improvement' to include installations or modifications using eligible materials that reduce embodied emissions

ELIGIBILITY

Added embodied carbon investments as a new category of greenhouse gas emissions reduction improvements eligible for the industrial clean energy tax credit

REQUIREMENT

Set a 15% minimum reduction threshold for cradle-to-gate embodied emissions when compared to established baselines

TIMELINE

Made embodied carbon investments eligible for tax credits starting with income tax years beginning on or after January 1, 2026

Engrossed (04/15/2025) → Reengrossed (04/17/2025) · 3 edits · Apr 17, 2025

MINOR

The bill was reengrossed to include additional Senate sponsors and updated the legislative summary date to reflect amendments adopted in the House of Introduction. The substantive text of the bill itself appears unchanged in this diff, with the primary modifications being administrative updates to sponsorship and summary information.

TECHNICAL

Added four new Senate sponsors (Amabile, Bridges, Cutter, Daugherty, Exum, Kipp, Winter F.) to the bill's sponsorship list.

Updated the legislative summary header from 'Engrossed' to 'Reengrossed' and changed the date to April 17, 2025.

Revised the summary disclaimer text to indicate that the summary applies to the reengrossed version rather than the introduced version.

Introduced (02/26/2025) → Engrossed (04/15/2025) · 8 edits · Apr 17, 2025

MODERATE

The bill was amended to add 'embodied carbon improvements' and 'embodied carbon investments' as new categories eligible for tax credits and property assessments. The amendments clarify that these improvements must achieve at least a 15% reduction in embodied emissions compared to a baseline, and they must be evaluated using standards created by the Colorado Energy Office in consultation with the Office of the State Architect.

Scope change

The bill's scope expanded to include embodied carbon improvements and investments in eligible materials production, in addition to existing new energy improvements.

DEFINITION

Added new definition for 'embodied carbon improvement' to mean installations or modifications to real property that reduce embodied carbon emissions.

Added new definition for 'embodied carbon investment' to mean investments in the production of eligible materials that reduce cradle-to-gate embodied emissions.

ELIGIBILITY

Expanded eligibility criteria to include embodied carbon improvements alongside existing energy efficiency, renewable energy, resiliency, and water efficiency improvements.

REQUIREMENT

Changed the effective date for embodied carbon investments from January 1, 2025 to January 1, 2026.

Added requirement that embodied carbon improvements must result in at least a 15% reduction in cradle-to-gate embodied emissions compared to a baseline.

Added requirement that embodied carbon investments must result in a 15% or greater reduction in cradle-to-gate embodied emissions compared to a baseline.

TECHNICAL

Added requirement that embodied carbon measurements must be evaluated using standards and guidelines created by the Colorado Energy Office in consultation with the Office of the State Architect.

ENFORCEMENT

Added legislative declaration stating that nothing in the bill impacts a local governmental entity's ability to review or approve eligible materials for installations or modifications to real property.

Embodied Carbon Reduction

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