March 2021 Climate Legislation Update
CEA thanks Colorado Coalition for a Livable Climate (CCLC) for providing the following legislative update.
Utilities
SB21-072 | Public Utilities Commission Modernize Electric Transmission Infrastructure
Concerning the expansion of electric transmission facilities to enable Colorado to meet its clean energy goals, and, in connection therewith, creating the Colorado electric transmission authority, requiring transmission utilities to join regional transmission organizations, and allowing additional classes of transmission utilities to obtain revenue through the colocation of broadband facilities within their existing rights-of-way. SPONSORS: Sen. C. Hansen Rep. A. Valdez Status: Senate T&E Hearing 03/09 2:00p
CEA Position: Oppose as written. CEA supports the coordination of transmission, as would happen with an RTO, but we view new transmission as a last resort. CEA has proposed two amendments to this bill: increase the review time for transmission proposals and require that they be compared to other more equitable and cost-effective solutions such as distributed generation, demand-side management (shifting loads, etc.) and existing transmission upgrades.
HB21-1052 | Define Pumped Hydroelectricity As Renewable Energy
Concerning the inclusion of pumped hydroelectric energy generation in the definition of "eligible energy resources" for purposes of meeting Colorado's renewable energy standard. SPONSORS: Rep. H. McKean Status: Hearing House E&E March 10 1:30p Action Only (no testimony)
HB21-1131 | Cooperative Electric Associations Governance Requirements
Concerning governance requirements for cooperative electric associations. Supported by Sierra Club. SPONSORS: Rep Amabile Status: House E&E Hearing 03/11 1:30p
CEA Position: Support
GHGs Pollution
SB21-108 | PUC Gas Utility Safety Inspection Authority
Concerning gas pipeline safety, and, in connection therewith, increasing and clarifying the rule-making and enforcement authority of the public utilities commission. SPONSORS: Story Status: Senate T&E Hearing TBD
CCLC summary: this is a critical bill for inspecting gas gathering lines that move product via pipelines from well pads to processing stations and from processing stations to transmission. Thousands and thousands of miles of pipelines are not being inspected by the Feds, the PUC, or the COGCC—which only inspects flow lines on a well pad. As a result the volume of leaking methane is unknown.
CEA Position: Support, with the caveat that it would be more effective to consolidate this authority under one agency, such as the Air Pollution Control Division (APCD), which already has inspection capabilities.
SB21-114 | Minimum Setback New Schools From Existing Oil And Gas
Concerning the establishment of a minimum setback requirement from existing oil and gas facilities for new public school building sites. SPONSORS: Sen Kirkmeyer Status: Senate T&E Hearing TBD
CCLC summary: This reverse setbacks (new buildings sited near existing O&G wells) bill attempts to overrule the CDPHE study showing public health harm within 2000’ and would allow local land use authority to locate schools as close as they want to existing wells. COGCC has ruled a hard 2000’ setback from schools for new O&G siting and while this bill references that standard, the local authority can override it. Further, it exempts plugged & abandoned wells (P&A) which are known to be sources of significant pollution from siting decisions and can contain hazardous buildups of methane and hazardous substances such as benzene. Finally, it attempts to institute state preemption over local land use decisions that are enshrined in the state constitution.
CEA Position: Oppose
SB21-125 | Alternate Proposals Air Quality Control Rulemaking
Concerning the submission of alternate proposals to rules being considered by the air quality control commission. SPONSORS: Cooke Status: Senate T&E Hearing TBD
CCLC summary: Intended to stifle or prevent public participation. Requires hiring consultants and legal staff, hold public meetings and provide thorough economic impact analysis just to offer an alternate proposal to a rule. Written by dirty energy lawyers to prevent CCLC member orgs from offering improved approaches to a rule or rules.
CEA Position: Oppose
HB21-1186 | Regional Transportation District Operation
Concerning relieving the regional transportation district of statutory restrictions related to the district's operations. SPONSORS: Reps Gray/Sullivan, Sens Winter/Bridges Status: Assigned to House Transp Hearing TBD
HB21-1189 | Regulate Air Toxics
Concerning additional public health protections in relation to the emission of air toxics. SPONSORS: Reps Benavidez/A. Valdez, Sens Gonzales/Moreno Status: Assigned to House E&E Hearing TBD
Summary: The bill expands upon the requirements applicable to covered facilities by:
Directing the air quality control commission to consider, at least every 5 years, adding new types of covered air toxics and adjusting the applicable emission thresholds;
Requiring that a covered facility's outreach to communities near the covered facility, in particular disproportionately impacted communities, be conducted in the 2 most prevalent languages spoken in the communities;
Requiring covered facilities to conduct fence line monitoring of covered air toxics and to publicly report the results of the monitoring; and
Requiring covered facilities to take corrective action within 15 days after a violation occurs.
The bill also requires the division of administration in the department of public health and environment to conduct community-based monitoring of covered air toxics in areas near covered facilities and to publicly report the results.
CCLC Summary: CCLC supported this bill last year. We need fence line monitoring of the 4 facilities this bill will address, each of which produce nearly 1 million tons per year of pollution. These are hazardous chemicals—specifically hydrogen cyanide, hydrogen sulfide, and benzene—that deserve to be closely monitored and have releases reported to the public. It holds polluters accountable for their emissions and sets a precedent for continuous air quality monitoring and reporting which, if passed, can be expanded to cover other facilities in the state that emit Hazardous Air Pollutants (HAPs)
CEA Position: Support
HB21-1205 | Electric Vehicle Road Usage Equalization Fee
Concerning a road usage equalization fee for plug-in electric motor vehicles. SPONSORS: Rep Pico
Summary: The bill requires a road usage equalization fee to be imposed at the time of annual registration on each plug-in electric motor vehicle that is required to be registered in the state. The fee is set in an amount that is estimated to achieve parity between the aggregate amount of motor vehicle registration fees and motor fuel excise taxes paid per vehicle by owners of plug-in electric motor vehicles and vehicles fueled by gasoline, diesel, or other special fuels and is annually adjusted for inflation.
CCLC summary: This bill attempts to preempt the forthcoming transportation bill being readied by Senator Faith Winter, which will increase fees for both ICE vehicles and EVs. This bill forms a working group of CDOT/DOR people which is tasked to report back in 2022. The proceeds are for existing road maintenance only. This bill attempts to define parity in what ICE users pay for gas taxes which disincentives new EV purchases, and entirely ignores the fees paid to charge EVs. This is a punitive bill that targets only EVs, rather than targeting the transportation sector as a whole. This bill actually penalized EV buyers, because if it passes they will have to pay for both charging fees AND gas taxes, which will inhibit the HB1261 goal of 940,000 EVs in CO by 2030.
CEA Position: Oppose
SB21-149 | Wind Energy Facilities Sited Near Military Operations
Concerning limitations on the construction of wind energy facilities sited near military resources. SPONSORS: Gardner Status: Assigned to House State Affairs Hearing 03/16 2p
SB21-161 | Voluntary Reduce Greenhouse Gas Natural Gas Utility
Concerning adoption by the public utilities commission of programs for the voluntary reduction of greenhouse gas emissions by natural gas utilities. SPONSORS: Sens Hansen/Coram, Rep Arndt Status: Assigned to Senate T&E Hearing TBD
Summary: The bill requires the public utilities commission (PUC) to adopt by rule, no later than July 31, 2022, greenhouse gas (GHG) emission reduction programs (reduction programs) for large natural gas utilities (those that have at least 250,000 customer accounts in Colorado) and small natural gas utilities (those that have fewer than 250,000 customer accounts in Colorado) (collectively, utilities). Municipally owned utilities may, but need not, participate in a reduction program. The rules must include reporting requirements and a process for utilities to fully recover qualified investments, which are prudently incurred costs associated with a reduction program.
The bill establishes the following GHG emission reduction targets, using a utility's 2019 GHG emissions as a baseline:
By January 1, 2025, at least 5%;
By January 1, 2030, at least 10%; and
On and after January 1, 2035, at least 15%.
GHG emission reductions from the delivery of natural gas to other utilities and transportation sector retail customers are excluded from the reduction programs. The following sources of GHG emission reductions are included in the reduction programs:
Methane leaked from the transportation and delivery of natural gas from natural gas distribution and service pipelines; and
Carbon dioxide emitted by the utility's retail customers (other than those in the transportation sector) as a result of the combustion of natural gas delivered by the utility.
GHG emission reductions can be achieved by:
Using renewable natural gas, which must account for at least 35% of the emission reductions;
Emission offsets;
Methane emission reductions from a variety of mechanisms; and
Other programs developed by the utility and approved by the PUC that demonstrate GHG emission reductions.
SB21-163 | Cost-benefit Analysis For Rules Additional Requirements
Concerning additional requirements for a cost-benefit analysis performed in connection with a state agency's adoption of rules. | SPONSORS: Rankin Status: Assigned to Senate BLT Hearing TBD
Summary: (In part) If the executive director determines that the proposed rule would likely have materially disparate effects on different regions of the state, the agency must include in the cost-benefit analysis a determination of the anticipated benefits, costs, and adverse effects of the proposed rule on different regions of the state; If the executive director determines that the proposed rule would have a negative economic or noneconomic impact, the executive director shall inform the public by either making a public presentation about the negative impact and any counterbalancing positive impact at the rule-making hearing or publishing a written report summarizing the impacts; The executive director, upon request of any party to the rule-making or member of the general assembly or upon the executive director's own motion, may require an agency to update a cost-benefit analysis to reflect material changes made to the proposed or adopted rule either before, during, or after the rule-making hearing; A member of the general assembly, no earlier than one year after a rule has been adopted, may request that the adopting agency conduct a cost-benefit analysis regarding the rule's implementation; more…
CCLC summary: The requirement to note negative impacts on Rest-of-State is a poison pill for statewide emissions reductions goals. This bill applies to PUC, CDPHE, and COGCC which hamstrings all of our regulatory bodies. It would be a better bill if it also had a requirement for benefits such as applying a social cost of carbon and/or public health consequences but it doesn’t—just negative impacts. It’s designed to prevent our ability to implement the requirements of 1261 by attempted to segregate the Front Range from the rest of the state.
CEA Position: Oppose
Built Environment
HB21-1034 | Consumer Right To Use Natural Gas Or Propane
Concerning a guarantee of customer choice in the use of gaseous fuels to produce thermal energy. SPONSORS: Rep. D. Woog Status: FAILED in Committee 7-5
CEA Position: Oppose
Climate Impacts
HB21-1008 | Forest Health Project Financing
Concerning increased options for financing forest health projects, and, in connection therewith, financing wildfire mitigation treatments. SPONSORS: Reps Arndt/Catlin, Sens Cooke/Hansen Status: House 3rd reading 03/08
SB21-034 | Water Resource Financing Enterprise
Concerning the creation of an enterprise that is exempt from the requirements of section 20 of article X of the state constitution to administer a fee-based water resources financing program. SPONSORS: Sen Coram Status: Hearing Senate Ag 03/11 1:30p
HB21-1141 | Electric Vehicle License Plate
Concerning the creation of a license plate for plug-in electric motor vehicles. SPONSORS: Hooton Status: Assigned to House E&E Hearing 03/11 1:30p | Assigned to House Transp Hearing TBD
HB21-1145 | Support Pollinator Special License Plate
Concerning the creation of a special license plate to support pollinators. SPONSORS: Reps Kipp/Soper, Sens Jacquez-Lewis/Simpson Status: Assigned to House E&E/Finance Hearing TBD
HB21-1149 | Energy Sector Career Pathway In Higher Education
Concerning supporting an energy sector career pathway for Colorado. SPONSORS: Rep Jackson Status: Assigned to House E&E Hearing TBD
HB21-1156 | Fix Defects Related To Severance Withholdings
Concerning the correction of statutory defects related to severance tax withholdings from a disbursement to an oil and gas interest owner. SPONSORS: Reps Lynch/Pico, Sens Kirkmeyer/Zenzinger Status: Assigned to House Finance Hearing 03/25 Upon Adjournment (~9:30a)
HB21-1162 | Management Of Plastic Products
Concerning the management of plastic products. SPONSORS: Reps A Valdez/Cutter, Sen Gonzales Status: Assigned to House E&E Hearing 03/11 1:30p | Assigned to Finance (if passes E&E)
HB21-1180 | Measures To Increase Biomass Utilization
Concerning measures to increase biomass utilization throughout the state. SPONSORS: Reps D Valdez/Will, Sen Coram Status: Assigned to House E&E Hearing TBD
HB21-1181 | Agricultural Soil Health Program
Concerning the creation of a voluntary soil health program. SPONSORS: Reps McCormick/Will, Sen Simpson. Status: Assigned to House Ag Hearing TBD
HB21-1186 | Regional Transportation District Operation
Concerning relieving the regional transportation district of statutory restrictions related to the district's operations. SPONSORS: Reps Gray/Sullivan, Sens Winter/Bridges Status: Assigned to House Transp Hearing TBD
HB21-1199 | Consumer Digital Repair Bill Of Rights
Concerning a requirement that a manufacturer of digital electronic equipment facilitate the repair of the equipment by providing persons other than authorized repair providers affiliated with the manufacturer with the resources needed to repair the equipment. SPOSORS: Rep Titone Status: Assigned to House BLT (Biz/Labor/Tech) Hearing TBD
CEA Position: Support
HB21-1208 | Natural Disaster Mitigation Enterprise
Concerning the creation of an enterprise that is exempt from the requirements of section 20 of article X of the state constitution to administer a fee-based natural disaster mitigation grant program. SPONSORS: Reps Cutter/Gray, Sens Priola/Winter Status: Assigned to House E&E/Finance Hearing TBD
