A Bill for an Act
Page 1, Line 101Concerning assistance for communities experiencing energy
Page 1, Line 102transition.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
The office of just transition (office) in the department of labor and employment provides money to support programs that implement the just transition plan, provide supplemental funding for targeted investment in coal transition communities, and provide grants and other support to coal transition communities. The bill requires the office to coordinate with councils of government representing regions established by the department of local affairs (department) that have coal transition communities, employee associations that represent workers in coal transition communities, and economic development councils formed by the department to implement the most effective projects and programs for those communities.
A public entity may invest public funds only as allowed by law. The bill specifies that the investment of a payment or settlement to offset the socioeconomic impacts to a community or government from the closure of a coal mine or coal power generating station is not subject to these investment limitations.
Currently, 70% of the money credited to the local government severance tax fund (fund) must be distributed to political subdivisions that are socially or economically impacted by the development, processing, or energy conversion of minerals and mineral fuels subject to taxation and used for the planning, construction, and maintenance of public facilities and for the provision of public services, and to compensate political subdivisions for loss of property tax revenue resulting from the deduction of severance taxes paid in the determination of the valuation for assessment of producing mines. The bill requires the executive director of the department (executive director) to annually expend this money as follows:
- First, an amount equal to the least of $15 million, the total amount of money available, or the amount of compensation applied for to compensate political subdivisions for the loss of property tax revenue resulting from the deduction of severance taxes paid in the determination of the valuation for assessment of producing mines; or incurred by political subdivisions that are coal transition communities created as due to the closure of coal-fired power plants. The executive director must consider the economic needs of a political subdivision when granting money and must not require a political subdivision to contribute money to be eligible for a grant.
- Second, an amount equal to the least of $75 million, the total remaining amount of money available, or the amount of grants applied for through 3 grant cycles per year for grants to political subdivisions socially or economically impacted by the development, processing, or energy conversion of minerals and mineral fuels subject to severance taxation and used for the planning, construction, and maintenance of public facilities and for the provision of public services; and
- Third, any remaining money in excess of the lesser of $90 million or the total amount of compensation and grants actually awarded as described above must be distributed annually by the executive director to political subdivisions based upon community need as determined in consultation with the Colorado Municipal League, Colorado Counties, Inc., and the Special District Association of Colorado, and to other recipients as provided by existing law.
This Unofficial Version Includes Committee
Amendments Not Yet Adopted on Second Reading
Page 3, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 3, Line 2SECTION 1. In Colorado Revised Statutes, 8-83-504, amend
Page 3, Line 3(4)(a)(II) introductory portion, (4)(a)(II)(C), and (4)(a)(II)(D); and add (4)(a)(II)(E) and (4)(a)(II.5) as follows:
Page 3, Line 48-83-504. Just transition cash fund - transfer from general
Page 3, Line 5fund - transfer from account - definition - use of money.
Page 3, Line 6(4) (a) (II) Subject to annual appropriation by the general assembly, the
Page 3, Line 7office shall expend the money transferred to the fund pursuant to this
Page 3, Line 8subsection (4)(a) to implement the just transition plan for Colorado
Page 3, Line 9prepared as required by section 8-83-503 (4), to provide supplemental
Page 3, Line 10funding for existing state programs that the office identifies as the most
Page 3, Line 11effective vehicles for targeted investment in coal transition communities,
Page 3, Line 12and to provide grants and other support directly to coal transition
Page 3, Line 13communities and other eligible entities. In expending money from the
Page 3, Line 14fund, the office shall place a heavy emphasis on investment in tier one
Page 3, Line 15and tier two coal transition communities and shall prioritize
Page 3, Line 16communities experiencing socioeconomic impacts of coal
Page 3, Line 17closures, opportunities for economic diversification, local
Page 3, Line 18community input, and needs assessments. The office shall support programs and base funding decisions on factors that:
Page 3, Line 19(C) Support infrastructure projects and workforce development programs;
orPage 3, Line 20(D) Are consistent with the goals and strategies outlined in the just transition plan; or
Page 4, Line 2(E) For money appropriated to the fund after July 1, 2025,
Page 4, Line 3support targeted investment in coal transition communities by
Page 4, Line 4collaborating with coal transition communities and eligible
Page 4, Line 5entities, state and regionally recognized governmental and
Page 4, Line 6economic development entities, employee organizations that
Page 4, Line 7represent coal transition workers, and workers who are not
Page 4, Line 8affiliated with employee organizations to implement effective
Page 4, Line 9projects and programs for those communities consistent with this part 5.
Page 4, Line 10(II.5) (A) The office shall establish a timeline for
Page 4, Line 11reviewing project proposals and applications and shall promptly
Page 4, Line 12notify applicants of any deficiencies or incompleteness that may
Page 4, Line 13be remedied prior to a final funding determination. Applicants
Page 4, Line 14must be allowed fifteen days to make changes or add supplementary documentation.
Page 4, Line 15(B) Project funding decisions must be issued within ninety
Page 4, Line 16days of receiving a final project proposal. If a decision is not
Page 4, Line 17possible within ninety days, the office shall provide a status
Page 4, Line 18update to the applicant at that time. All funding decisions must
Page 4, Line 19be publicly accessible with published reasons for denial of a project proposal along with recommendations for improvement.
Page 4, Line 20(C) At the earliest regularly scheduled meeting of the
Page 4, Line 21joint budget committee following the close of a fiscal year, the
Page 4, Line 22office shall report to the joint budget committee about the
Page 4, Line 23grants awarded by the office during the preceding fiscal year,
Page 5, Line 1their recipients, and the purpose for which they were awarded
Page 5, Line 2and make the same presentation at the annual SMART Act
Page 5, Line 3hearings of the senate local government and housing committee
Page 5, Line 4and the house transportation, housing, and local government committee.
Page 5, Line 5SECTION 2. In Colorado Revised Statutes, 24-75-601.1, add (5) as follows:
Page 5, Line 624-75-601.1. Legal investments of public funds - definition.
Page 5, Line 7(5) Nothing in this section applies to public funds held or
Page 5, Line 8invested as part of any payment or settlement to offset the
Page 5, Line 9socioeconomic impacts to a community or government from the closure of a coal mine or coal power generating station.
Page 5, Line 11SECTION 3. In Colorado Revised Statutes, 24-38.5-121, amend (5) as follows:
Page 5, Line 1224-38.5-121. Assessment of advanced energy solutions in rural
Page 5, Line 13Colorado - northwestern and west end of Montrose county Colorado
Page 5, Line 14study - southeastern Colorado study - report - legislative declaration
Page 5, Line 15- definitions - repeal. (5) On or before
July 1, 2025Page 5, Line 162025, the director shall submit the findings and conclusions of the
Page 5, Line 17northwestern and west end of Montrose county Colorado study and the
Page 5, Line 18southeastern Colorado study required in subsection (3) of this section to
Page 5, Line 19the house of representatives energy and environment committee and the
Page 5, Line 20senate transportation and energy committee, or their successor
Page 5, Line 21committees and to the just transition office created in section 8-83-503
Page 5, Line 22(1). The findings and conclusions submitted must include any
Page 5, Line 23recommendations including administrative or legislative action needed to
Page 6, Line 1assist northwestern and west end of Montrose county, Colorado, in the
Page 6, Line 2transition to firm energy generation sources and to assist southeastern Colorado in the development of new energy resources.
Page 6, Line 3SECTION 4. Act subject to petition - effective date. This act
Page 6, Line 4takes effect at 12:01 a.m. on the day following the expiration of the
Page 6, Line 5ninety-day period after final adjournment of the general assembly; except
Page 6, Line 6that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 6, Line 7of the state constitution against this act or an item, section, or part of this
Page 6, Line 8act within such period, then the act, item, section, or part will not take
Page 6, Line 9effect unless approved by the people at the general election to be held in
Page 6, Line 10November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.