The act requires the secretary of state to refer a ballot issue to voters at the November 2023 election. Most of the act only becomes effective if the voters approve the ballot issue. Beginning with the 2023 property tax year, the act establishes a limit on specified property tax revenue for local governments, excluding those that are home rule and school districts, that is equal to inflation above the property tax revenue from the prior property tax year (limit). A local government may establish a temporary property tax credit up to the number of mills necessary to prevent the local government's property tax revenue from exceeding the limit. Alternatively, the governing board may approve a mill levy that would cause the local government to exceed the limit if the governing board approves the mill levy at a public meeting that meets certain criteria. The act temporarily reduces the valuation for assessment (valuation) for certain subclasses of nonresidential and residential property for the property tax years 2023 through 2032 and creates the new subclass of renewable energy agricultural land, which is a subclass of nonresidential property. The act also establishes the residential real property subclasses of primary residence real property and qualified-senior primary residence real property and establishes administrative procedures related to the classification that are based on the procedures for the homestead exemption, with those procedures expanded to treat civil union partners like spouses. Several property tax deadlines for the 2023 property tax year are delayed because of the possible valuation reductions that are contingent on the 2023 ballot. County assessors are required to provide information to taxpayers about the new valuations for assessment and the application process for primary residence real property and qualified-senior primary residence real property. The act modifies an existing mechanism designed to reimburse local governmental entities for property tax revenue reductions by extending the backfill through 2032, incorporating the lost revenue due to the act, clarifying how the reimbursement is determined, excluding local governmental entities that have a certain amount of growth in assessed value, capping the total amount of state backfill, and eliminating the cap on the amount of excess state revenues that may be used for the reimbursements for the 2023 property tax year. If the voters approve the referred ballot issue, which the act requires to be called "proposition HH", then the state will be authorized to retain and spend revenues up to the proposition HH cap, the amount of which is determined under the act. The ability of the general assembly to continue retaining and spending this money after the fiscal year 2031-32 is contingent on the general assembly enacting future valuation reductions. The amount retained under this authority is first used in the following fiscal year to backfill certain local governments for the reduced property tax revenue as a result of the property tax changes in the act and Senate Bill 22-238 "Concerning reductions in real property taxation for only the 2023 and 2024 property tax years" and then up to $20 million for the amount of property taxes that are paid as a portion of a tenant's rent. Any remaining amounts are transferred to the state education fund to offset the revenue that school districts lose as a result of the property tax changes. APPROVED by Governor May 24, 2023 EFFECTIVE May 24, 2023 NOTE: The act takes effect only if a majority of voters approve the ballot issue referred in accordance with section 24-77-202, and in which case the act takes effect on the date of the official declaration of the vote thereon by the governor; except that, section 3; section 39-1-104.2 (3.7); section 39-3-210 (1)(a.3), (1)(e), and (2.5); section 18; section 23; and section 24 of the act take effect upon passage. (Note: This summary applies to this bill as enacted.)
Sponsored bills
The act specifies that when a property tax assessor values real property, the property tax assessor shall consider: The current use; Existing zoning and other governmental land use or environmental regulations and restrictions; Multi-year leases or other contractual arrangements affecting the use of or income from real property; Easements and reservations of record; and Covenants, conditions, and restrictions of record. Beginning January 1, 2024, the act requires counties with a population greater than 300,000 to use an alternative procedure to determine objections and protests of property tax valuations in any year of general reassessment of real property that is valued biennially. At the request of a taxpayer, the law requires a property tax assessor to provide the taxpayer with certain data that the assessor used to determine the value of the taxpayer's property. The act clarifies that the data the assessor is required to provide must include the primary method and rates the assessor used to value the property. APPROVED by Governor May 24, 2023 EFFECTIVE August 7, 2023 NOTE: This act was passed without a safety clause and takes effect 90 days after sine die.(Note: This summary applies to this bill as enacted.)
If the state exceeds its fiscal year spending limit, it is required to refund the excess state revenues (TABOR refund). The act changes the way the state will distribute a TABOR refund for the 2022-23 state fiscal year. Currently, there are 3 different methods to effectuate a TABOR refund: A reimbursement to counties for property tax revenue reductions as a result of the senior and veteran property tax exemption; A reimbursement to counties for reductions in property tax revenues due to reductions in valuation for assessment; and A six-tier sales tax refund for individual taxpayers under which refunds increase, based on the tiers, as a taxpayer's income increases. The act creates a new temporary refund mechanism (temporary TABOR refund), which is contingent on the voters approving proposition HH at the November 7, 2023, statewide election, that replaces the sales tax refund mechanism for the 2022-23 state fiscal year. Under this mechanism, each qualified individual is eligible to receive an identical refund payment from the remaining excess state revenues from all sources after refunds are made through the county reimbursement mechanisms (remaining excess state revenues). A qualified individual filing a single return is entitled to one temporary TABOR refund, and 2 qualified individuals filing a joint return are entitled to 2 temporary TABOR refunds. APPROVED by Governor May 24, 2023 PORTIONS EFFECTIVE May 24, 2023 PORTIONS EFFECTIVE January 1, 2024 NOTE: Section 2 of the act states that section 1 of the act takes effect only if, at the November 2023 statewide election, a majority of voters approve the ballot issue submitted for their approval or rejection pursuant to section 24-77-202, C.R.S., as enacted by Senate Bill 23-303 and that if the voters at the November 2023 statewide election approve the ballot issue, then section 1 of this act takes effect on the later of January 1, 2024, or the date of the official declaration of the vote thereon by the governor. (Note: This summary applies to this bill as enacted.)
In 2019, the general assembly adopted an apprenticeship utilization law (apprenticeship utilization law) that requires the general contractor for a public project that does not receive federal money, and that is in the amount of $1,000,000 or more, to submit, at the time a mechanical, electrical, or plumbing subcontractor is put under contract, certain documentation regarding the contractors that will do the work to the contracting agency. At the same time, the general assembly also adopted a prevailing wage law (prevailing wage law) that requires any contractor who is awarded a contract for a public project by an agency of government for $500,000 or more and that does not include federal money, and any subcontractors working on the public project, to pay their employees a prevailing wage at weekly intervals. The act creates a new category of public projects defined as "energy sector public works projects", and requires these projects to comply with the requirements of the apprenticeship utilization law and the prevailing wage law. An "energy sector public works project" is any project that: Has the purpose of generating, transmitting, or distributing electricity or natural gas to provide energy to Colorado individual consumers and businesses, is built by or for a public utility, and is funded in whole or in part by the state or utility customer funding; or Has the purpose of generating or distributing electricity or natural gas for the purpose of providing energy to Colorado individual consumers and businesses from utility customer funding as approved by a cooperative electric association. With certain exceptions, the act requires that a contract between public utilities, cooperative electric associations, or independent power producers and lead contractors for an energy sector public works project include provisions that expressly require that all work performed under the contract comply with the apprenticeship utilization law and the state prevailing wage law if the project is an electric power generation project with a nameplate generation capacity of one megawatt or higher or if the project is a project other than an electric power generation project with a total cost of one million dollars or more. All contracts with subcontractors on the project are also required to include such provisions. If the contract for an energy sector public works project does not include such provisions, the project will not be eligible to receive state funding or to receive required authorizations or approvals from the public utilities commission (PUC). For projects funded in whole or in part by the state, the requirements to comply with the apprenticeship utilization law and the prevailing wage law apply only when the project is a power generation project with a nameplate generation capacity of one megawatt or higher or an energy storage system with an energy rating of one megawatt of power capacity or 4 megawatt hours of useable energy capacity or higher and the aggregated public assistance from the state is $500,000 or more. For other projects, the apprenticeship utilization law and the prevailing wage law apply only when the total project cost is one million dollars or more and the aggregated public assistance from the state, funding from a public utility, or funding from a cooperative electric association is $500,000 or more. The requirements to comply with the apprenticeship utilization law and the prevailing wage law do not apply to a project that is covered by a project labor agreement, work on an energy sector public works project performed by employees of a utility company, work on an energy sector public works project put out to bid on or after January 1, 2024, that is qualified for and claims the increased federal production tax credit or investment tax credit amount by having satisfied federal "Inflation Reduction Act" requirements, a utility-incentivized demand-side management or electrification program, a utility or state-funded building energy efficiency program, service agreements that were entered into on or before March 1, 2023, projects that involve an electric distribution line with a specified capacity, and projects that involve pipelines with a specified minimum yield strength. The lead contractor for an energy sector public works project is required to prepare certified payroll records for workers directly employed by the contractor, obtain certified payroll records from all contractors and subcontractors on the project, and submit the records to the public utility or other owner of the energy sector public works project weekly. The lead contractor is also required to prepare a quarterly craft labor certification that attests that the lead contractor and all subcontractors are compliant with the apprenticeship utilization law and the prevailing wage law. The public utility, cooperative electric association, independent power producer, or other owner of an energy sector public works project is required to maintain the records for all craft labor certifications and is required to either provide copies quarterly to the department of labor and employment or require the lead contractor to provide such copies. The state auditor's office is required to conduct an audit of the PUC's approval of energy sector public works projects no later than January 1, 2029, and at least 5 years thereafter. The purpose of the audit is to establish oversight and accountability for compliance with the "best value" employment metrics for electric resources acquisition and the employment, training, wage, and apprenticeship requirements specified in the act. Violations of the requirements for energy sector public works project contracts are subject to the penalties described in the apprenticeship utilization law and the prevailing wage law. In lieu of compliance with the apprenticeship utilization law and the prevailing wage law, a public utility, cooperative electric association, or independent power producer may incorporate a project labor agreement requirement for an energy sector public works project. The PUC is prohibited from denying approval of an energy sector public works project solely because it uses a project labor agreement. The act specifies which provisions of the apprenticeship utilization law for public projects apply to energy sector public works projects. Regarding "best value" employment metrics that the PUC is required to consider when it evaluates electric resource acquisitions and requests for certificates of public convenience and necessity for construction or expansion of generating facilities, the act requires the PUC to promulgate rules requiring utilities, when submitting annual progress reports for an electric resource acquisition, to collect and provide to the PUC information concerning the implementation of "best value" employment metrics and requires the PUC to report annually to committees of reference of the general assembly concerning the information that is reported. The act adds enforcement mechanisms for the existing mechanical, electrical, and plumbing apprenticeship utilization requirements for gas demand-side management projects and beneficial electrification projects. In addition, the act requires that projects undertaken pursuant to specified existing state laws comply with the state mechanical, electrical, and plumbing apprenticeship utilization law and the state prevailing wage law. For the 2023-24 state fiscal year, the act appropriates $108,401 from the general fund to the department of labor and employment for use by the division of labor standards and statistics to implement the act. APPROVED by Governor May 23, 2023 EFFECTIVE January 1, 2024 NOTE: This act was passed without a safety clause. (Note: This summary applies to this bill as enacted.)
"Carbon management" is defined by the act as any combination of carbon dioxide removal, carbon storage, carbon capture, and carbon utilization. The act ensures that carbon management projects, except for agricultural, forestry, and enhanced oil recovery projects, are eligible for money under the industrial and manufacturing operations clean air grant program. The act also requires the Colorado energy office (office), in collaboration with the office of economic development and the department of public health and environment, to contract with an organization for the development of a carbon management roadmap for the state. The office is required to ensure that the roadmap functions in concert with other state targets, teams, and documents related to greenhouse gas and carbon. The roadmap must include: Specified economic sectors; necessary infrastructure to support carbon management; specified types of policies and incentives; identification of the state agency best positioned to carry out a potential policy regime of carbon management; public interest, legislative, and administrative policy recommendations; and criteria for carbon management project selection. After receiving a draft of the roadmap, the office is required to hold at least one public hearing to solicit feedback on the roadmap, including comment on the roadmap's environmental health impacts. The contracted organization is required to use that feedback to update the roadmap. The office is required to present the updated roadmap to specified committees in the general assembly and then later update the general assembly on the implementation of the roadmap. APPROVED by Governor May 22, 2023 EFFECTIVE August 7, 2023 NOTE: This act was passed without a safety clause and takes effect 90 days after sine die. (Note: This summary applies to this bill as enacted.)
Effective July 1, 2023, the act changes the name of the oil and gas conservation commission to the energy and carbon management commission (commission) and expands the commission's regulatory authority to include the authority to regulate a broader scope of energy and carbon management areas beyond oil and gas. The act also changes the name of the oil and gas conservation and environmental response fund to the energy and carbon management cash fund (fund) and allows the fund to also be used by the commission for the purposes of administering the expanded regulatory areas. Section 3 of the act requires the commission to create and maintain a website that serves as the state portal for information and data regarding the commission's regulatory activities. Current law states that the property right to the natural heat of the earth (geothermal resource) that lacks sufficient fluid associated with the geothermal resource (geothermal fluid) to transport commercial amounts of energy to the surface is an incident of ownership of the overlying surface unless expressly severed. Section 7 states that, as to property rights acquired on or after July 1, 2023, the property right to a geothermal resource associated with nontributary groundwater (allocated geothermal resource) is also an incident of ownership of the overlying surface unless expressly severed. Current law requires the operator of a well, prior to constructing the well to explore for or produce geothermal resources, to obtain a permit from the state engineer. Section 8 bifurcates regulation of different types of geothermal operations between the commission and the state engineer. Specifically, the commission is granted the exclusive authority to regulate operations (deep geothermal operations) for the exploration for or production of: An allocated geothermal resource; or A geothermal resource that is deeper than 2,500 feet below the surface. The state engineer retains the exclusive authority to regulate operations that are not deep geothermal operations (shallow geothermal operations). Prior to obtaining a permit from the commission to construct a well for deep geothermal operations, the applicant must provide evidence of any applicable siting application to the local government with jurisdiction over the deep geothermal operations, including the disposition of the application, unless the local government does not regulate the siting of such operations. Upon request by a local government, the commission is also required to provide technical support to the local government concerning implementation of the commission's rules regarding deep geothermal operations. The commission and the state engineer may each adopt rules for the assessment of fees for the processing and granting of a permit to construct a well for deep geothermal operations or shallow geothermal operations, as applicable. Any fees collected by the commission will be deposited by the state treasurer into the fund. Current law requires the operator of a well, prior to the production of geothermal fluid from the well, to obtain a permit from the state engineer. Section 9: Bifurcates the issuance of different types of use permits by the state engineer between permits for the use of geothermal resources that are not allocated resources and permits for the use of allocated geothermal resources (collectively, use permits); and Requires the state engineer to only issue a use permit for allocated geothermal resources after a determination that any associated geothermal fluid is nontributary groundwater (nontributary determination). Section 9 also allows the state engineer to adopt rules for the administration of use permits and the issuance of nontributary determinations. Current law allows the state engineer to adopt procedures that establish geothermal management districts for the management of geothermal operations within the district. Section 10 limits the scope of geothermal management districts to distributed geothermal resources. The state engineer is also required to notify the commission of any application for a geothermal management district that is anticipated to affect deep geothermal operations. Section 11 allows the commission to adopt procedures by rule to establish geothermal resource units for allocated geothermal resources. Section 13 grants the commission the exclusive authority to regulate any intrastate facility that stores natural gas in an underground facility not subject to regulation by the public utilities commission (UNGS facility). If the commission submits a certification to, or enters into an agreement with, the federal secretary of transportation pursuant to applicable federal law, any rules regulating UNGS facilities must be at least as stringent as the applicable federal requirements. If a UNGS facility is proposed to be sited in an area that would affect a disproportionately impacted community, the commission must evaluate and address impacts from the UNGS facility. The commission may assess and collect fees from operators of UNGS facilities in an amount and frequency determined by the commission by rule. Any fees collected will be deposited into the fund. Before commencing construction of a new UNGS facility, the operator of the facility must provide evidence of any applicable siting application to a local government with jurisdiction over the UNGS facility, if applicable, and the disposition of the application. The act directs the commission to conduct and report to the general assembly during the 2025 legislative session the findings of the following studies: A technical study of the state's geothermal resources (section 11); A study, in collaboration with the state engineer, that evaluates the state regulatory structure for geothermal resources and whether any changes to law or rules are necessary (section 11); A study concerning the regulation and permitting of underground hydrogen operations (section 19); and A study, in coordination with the public utilities commission, examining the siting and regulation of intrastate pipelines (section 19). For the 2023-24 state fiscal year, section 43 appropriates $1,200,480 from the fund to the department of natural resources (department) to be used as follows: $1,108,857 for use by the commission for program costs; $7,031, which amount is reappropriated for use by the division of water resources in the department for water administration related to division operations; and $84,592, which amount is reappropriated to the department of law to provide legal services for the department. APPROVED by Governor May 22, 2023 EFFECTIVE July 1, 2023 (Note: This summary applies to this bill as enacted.)
In support of the use of agrivoltaics, which is the integration of solar energy generation facilities with agricultural activities, the act authorizes the agricultural drought and climate resilience office (office) to award grants for new or ongoing demonstration or research projects that demonstrate or study the use of agrivoltaics. The Colorado water conservation board (board), in consultation with the state engineer, the Colorado energy office, and the Colorado water institute, is required to study the feasibility of using floatovoltaics, which are solar energy generation facilities placed over, near, or floating on irrigation canals or reservoirs. On or before January 1, 2025, the board shall submit a written report of its findings and conclusions from the study to the legislative committees of reference with jurisdiction over agricultural matters. The director of the division of parks and wildlife is required to consult on the impacts on wildlife of: Any research projects for which the office awards money to study the use of agrivoltaics; and A project that the board finances to study the feasibility of using floatovoltaics in the state. The act exempts certain agrivoltaic equipment from property taxation if the equipment is used in the required manner and amends the statutory definition of "solar energy facility", used in determining the valuation of public utilities for property tax purposes, to include agrivoltaics and floatovoltaics. The act requires the commissioner of agriculture (commissioner) to study greenhouse gas reduction and carbon sequestration opportunities in the agricultural sector, including soil health management practices, the use of dry digesters, and the potential for creating and offering a certified greenhouse gas offset program and credit instruments in the agricultural sector. To perform the study, the commission must consult with the Colorado energy office, the air quality control commission, the natural and working lands task force, the Colorado state forest service, and an institution of higher education with expertise in climate change mitigation, adaptation benefits, and other environmental benefits related to agricultural research. On or before October 1, 2024, the commissioner shall submit to the general assembly a progress report on the study and, on or before October 1, 2025, a final report, which must include any legislative and regulatory recommendations. The commissioner, in consultation with the Colorado energy office and the air quality control commission, may adopt rules to implement recommendations from the study that do not require legislative changes. Any greenhouse gas offset program or other greenhouse gas reduction and carbon sequestration program or mechanism that the commissioner establishes in rule must not mandate participation by agricultural producers. The act appropriates $611,870 for the 2023-24 state fiscal year from the general fund to the department of agriculture for use by the commissioner's office and administrative services, with $500,000 of the money appropriated for agrivoltaic project grants. APPROVED by Governor May 18, 2023 EFFECTIVE August 7, 2023 NOTE: This act was passed without a safety clause and takes effect 90 days after sine die.(Note: This summary applies to this bill as enacted.)
The act extends the advanced industry export acceleration program, which was scheduled to end on January 1, 2025, and the advanced industries acceleration grant program, which was scheduled to end on July 1, 2024, by 10 years. Through March 1, 2023, the state treasurer annually credited to the advanced industries acceleration cash fund an amount equal to one-half of the bioscience and clean technology income tax withholding growth. The act extends this funding mechanism by 2 years. Additionally, the advanced industry export acceleration program allows a qualifying business that meets certain eligibility criteria to receive an international export development expense reimbursement. The act removes the eligibility criterion that requires a qualifying business to show a profit during the last fiscal year. APPROVED by Governor May 17, 2023 EFFECTIVE August 7, 2023 NOTE: This act was passed without a safety clause and takes effect 90 days after sine die. (Note: This summary applies to this bill as enacted.)
The act amends the priority of distribution of insurance claims paid from an insurer's estate in the event of the insurer's liquidation to include in the class 1 distribution priority payments that an impaired or insolvent insurer owes to the risk adjustment program that are necessary to prevent another insurer from becoming impaired or insolvent. This prioritization adjustment repeals on July 1, 2026. The act also amends the "Life and Health Insurance Protection Association Act" as follows: Adds health maintenance organizations (HMOs) as members of the association and subjects HMOs to assessments from the association; Allocates responsibility for long-term care insurance assessments between health insurance and life insurance association members; and Specifies that the "Life and Health Insurance Protection Association Act" does not provide coverage to a person that acquires rights to receive, or to a payee or beneficiary that transfers its rights in, a structured settlement factoring transaction, as defined in federal law, regardless of when the transaction occurred. APPROVED by Governor May 15, 2023 EFFECTIVE May 15, 2023 (Note: This summary applies to this bill as enacted.)
The act authorizes the Colorado energy office to award grants for retrofitting existing buildings for installation of geothermal systems for heating and cooling under the single-structure geothermal grant that the office administers, and for generating geothermal energy through direct air capture technology under the geothermal electricity generation grant that the office administers. The act establishes labor standards for thermal energy public projects that a state agency or a state institution of higher education procures. In Colorado, a gas distribution utility providing gas service to more than 90,000 retail customers is required to file with the public utilities commission (commission) a clean heat plan, which plan demonstrates how the utility will use clean heat resources to meet clean heat targets for reducing carbon dioxide and methane emissions. The act adds thermal energy as an eligible clean heat resource for helping to meet clean heat targets. A gas utility that the commission regulates is authorized to apply for review and approval of the use of thermal energy networks in the gas utility's service area. A gas utility that the commission regulates and that serves more than 500,000 customers is additionally required to propose pilot thermal energy network projects for the commission's review and approval. The commission shall initiate a proceeding on or before January 1, 2025, to determine if rule-making or legislative changes are needed to facilitate the development of thermal energy in the state. The act repeals the "Geothermal Heat Suppliers Act", which requires geothermal heat suppliers to obtain operating permits from the commission. APPROVED by Governor May 11, 2023 EFFECTIVE August 7, 2023 NOTE: This act was passed without a safety clause and takes effect 90 days after sine die. (Note: This summary applies to this bill as enacted.)