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.
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 (4)(a)(II)(C) and (4)(a)(II)(D); and add (4)(a)(II)(E) as follows:
Page 3, Line 38-83-504. Just transition cash fund - transfer from general
Page 3, Line 4fund - transfer from account - definition - use of money.
Page 3, Line 5(4) (a) (II) Subject to annual appropriation by the general assembly, the
Page 3, Line 6office shall expend the money transferred to the fund pursuant to this
Page 3, Line 7subsection (4)(a) to implement the just transition plan for Colorado
Page 3, Line 8prepared as required by section 8-83-503 (4), to provide supplemental
Page 3, Line 9funding for existing state programs that the office identifies as the most
Page 3, Line 10effective vehicles for targeted investment in coal transition communities,
Page 3, Line 11and to provide grants and other support directly to coal transition
Page 3, Line 12communities and other eligible entities. In expending money from the
Page 3, Line 13fund, the office shall place a heavy emphasis on investment in tier one transition communities and shall support programs that:
Page 3, Line 14(C) Support infrastructure projects and workforce development programs;
orPage 3, Line 15(D) Are consistent with the goals and strategies outlined in the just transition plan; or
Page 3, Line 16(E) Support targeted investment in coal transition
Page 3, Line 17communities by coordinating with councils of government
Page 3, Line 18representing regions established by the department of local
Page 3, Line 19affairs with coal transition communities, employee associations
Page 4, Line 1that represent workers in coal transition communities, and
Page 4, Line 2economic development councils formed by the department of
Page 4, Line 3local affairs to implement the most effective projects and programs for those communities.
Page 4, Line 4SECTION 2. In Colorado Revised Statutes, 24-75-601.1, add (5) as follows:
Page 4, Line 524-75-601.1. Legal investments of public funds - definition.
Page 4, Line 6(5) Nothing in this section applies to public funds held or
Page 4, Line 7invested as part of any payment or settlement to offset the
Page 4, Line 8socioeconomic impacts to a community or government from the closure of a coal mine or coal power generating station.
Page 4, Line 9SECTION 3. In Colorado Revised Statutes, 39-29-110, amend (1)(b) as follows:
Page 4, Line 1039-29-110. Local government severance tax fund - creation -
Page 4, Line 11administration - definitions - repeal. (1) (b) (I) For state fiscal
Page 4, Line 12years commencing on or after July 1, 2025, seventy percent of the
Page 4, Line 13
funds fromPage 4, Line 14distributed
to those political subdivisions socially or economicallyPage 4, Line 15
impacted by the development, processing, or energy conversion ofPage 4, Line 16
minerals and mineral fuels subject to taxation under this article and usedPage 4, Line 17
for the planning, construction, and maintenance of public facilities andPage 4, Line 18
for the provision of public services. Such funds shall also be distributedPage 4, Line 19(A) First, an amount equal to the least of fifteen million
Page 4, Line 20dollars, the total amount of money available, or the total
Page 4, Line 21amount of compensation applied for to political subdivisions to
Page 4, Line 22compensate them for loss of property tax revenue resulting from the
Page 5, Line 1deduction of severance taxes paid in the determination of the valuation
Page 5, Line 2for assessment of producing mines and to coal transition
Page 5, Line 3communities to compensate them for the loss of property tax
Page 5, Line 4revenue resulting from the closure of coal-fired power plants.
Page 5, Line 5The executive director of the department of local affairs shall consider the
Page 5, Line 6economic needs of a political subdivision and shall not require a
Page 5, Line 7political subdivision, including a coal transition community, to
Page 5, Line 8provide any matching money to receive compensation for purposes
Page 5, Line 9of making distributions pursuant to this
subparagraph (1)(b)(I)Page 5, Line 10(B) From the money remaining after compensation is paid
Page 5, Line 11pursuant to subsection (1)(b)(I)(A) of this section, through three
Page 5, Line 12grant cycles per year, an amount equal to the least of
Page 5, Line 13seventy-five million dollars, the total amount of remaining
Page 5, Line 14money available, and the amount of grants applied for pursuant
Page 5, Line 15to this subsection (1)(b)(I)(B) to political subdivisions socially
Page 5, Line 16or economically impacted by the development, processing, or
Page 5, Line 17energy conversion of minerals and mineral fuels subject to
Page 5, Line 18taxation under this article 29 and used for the planning,
Page 5, Line 19construction, and maintenance of public facilities and for the provision of public services; and
Page 5, Line 20(C) Any money remaining after making the distributions
Page 5, Line 21required by subsections (1)(b)(I)(A) and (1)(b)(I)(B) of this section
Page 5, Line 22shall be distributed by the executive director of the department
Page 5, Line 23of local affairs to political subdivisions impacted by the closure
Page 5, Line 24of coal mines or coal power generating stations based upon
Page 5, Line 25community need and for the distributions provided for by
Page 6, Line 1subsections (1)(b)(II), (1)(b)(III), (1)(b)(IV), and (1)(b)(V) of this
Page 6, Line 2section, both as determined in consultation with the Colorado
Page 6, Line 3Municipal League, Colorado Counties, Inc., and the Special District Association of Colorado.
Page 6, Line 4(II) (A)
In addition to the distribution of moneys authorized underPage 6, Line 5
subparagraph (I) of this paragraph (b),Page 6, Line 6distribute
moneysPage 6, Line 7using money remaining after making the distributions required
Page 6, Line 8by subsections (1)(b)(I)(A) and (1)(b)(I)(B) of this section, to
suchPage 6, Line 9the political subdivisions for the planning, design, construction, erection,
Page 6, Line 10building, acquisition, alteration, modernization, reconstruction,
Page 6, Line 11improvement, or expansion of domestic wastewater treatment works or
Page 6, Line 12potable water treatment facilities. Any loan made by the executive
Page 6, Line 13director under the authority of this section shall only be made under such
Page 6, Line 14terms as will insure repayment of the loan with interest assessed and collected at an interest rate of not less than five percent.
Page 6, Line 15(B) As used in this
subparagraph (II),Page 6, Line 16"domestic wastewater treatment works" means a system or facility of a
Page 6, Line 17political subdivision for treating, neutralizing, stabilizing, collecting, or
Page 6, Line 18disposing of domestic wastewater, which system or facility has a designed
Page 6, Line 19capacity to receive more than two thousand gallons of domestic
Page 6, Line 20wastewater per day, and "domestic wastewater treatment works" includes
Page 6, Line 21appurtenances to such system or facility, such as outfall sewers, pumping
Page 6, Line 22stations, and collection and interceptor lines, and the equipment related to such appurtenances.
Page 6, Line 23(C) As used in this
subparagraph (II)Page 6, Line 24"potable water treatment facilities" means a system or facility of a
Page 7, Line 1political subdivision for treating water to be supplied to the public for
Page 7, Line 2domestic use, and "potable water treatment facilities" includes water
Page 7, Line 3treatment plants, treated water storage facilities, water mains, water distribution lines, pumps, and appurtenances.
Page 7, Line 4(III) In addition to the distribution of
moneysPage 7, Line 5under
subparagraphs (I) and (II) of this paragraph (b)Page 7, Line 6(1)(b)(II) of this section, the executive director shall distribute money
Page 7, Line 7remaining after making the distributions required by subsections (1)(b)(I)(A) and (1)(b)(I)(B) of this section as follows:
Page 7, Line 8(A)
MoneysPage 7, Line 9(B)
MoneysPage 7, Line 10environment for any direct and indirect costs associated with the
Page 7, Line 11monitoring, notification, and handling of designated uranium mill tailings
Page 7, Line 12that are authorized in section 25-11-303,
C.R.S.,Page 7, Line 13distribution made pursuant to this
sub-subparagraph (B)Page 7, Line 14(1)(b)(III)(B) shall be equal to the amount appropriated to the department
Page 7, Line 15of public health and environment by the general assembly for such direct and indirect costs; and
Page 7, Line 16(C) Up to fifty thousand dollars each state fiscal year to political
Page 7, Line 17subdivisions that include mill sites designated for cleanup pursuant to
Page 7, Line 18federal Public Law 95-604 for reimbursement of actual, documented costs related to the cleanup of uranium mill tailings.
Page 7, Line 19(IV) In addition to the distribution of
moneysPage 7, Line 20under
subparagraphs (I), (II), and (III) of this paragraph (b)Page 7, Line 21(1)(b)(II) and (1)(b)(III) of this section, the executive director may
Page 7, Line 22distribute
moneysPage 8, Line 1required by subsections (1)(b)(I)(A) and (1)(b)(I)(B) of this section
Page 8, Line 2to those privately organized volunteer fire departments serving areas
Page 8, Line 3socially or economically impacted by the development, processing, or
Page 8, Line 4energy conversion of minerals and mineral fuels subject to taxation under
Page 8, Line 5this
articlePage 8, Line 6(V) In addition to the distribution of
moneysPage 8, Line 7under
subparagraphs (I), (II), (III), and (IV) of this paragraph (b)Page 8, Line 8subsections (1)(b)(II), (1)(b)(III), and (1)(b)(IV) of this section, the
Page 8, Line 9executive director of the department of local affairs may distribute
Page 8, Line 10
moneysPage 8, Line 11by subsections (1)(b)(I)(A) and (1)(b)(I)(B) of this section for
Page 8, Line 12planning, analyses, public engagement, and coordination and
Page 8, Line 13collaboration with federal land managers and stakeholders, or for similar
Page 8, Line 14or related local government processes needed by local governments for engagement in federal land management decision-making.
Page 8, Line 15SECTION 4. Act subject to petition - effective date. This act
Page 8, Line 16takes effect at 12:01 a.m. on the day following the expiration of the
Page 8, Line 17ninety-day period after final adjournment of the general assembly; except
Page 8, Line 18that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 8, Line 19of the state constitution against this act or an item, section, or part of this
Page 8, Line 20act within such period, then the act, item, section, or part will not take
Page 8, Line 21effect unless approved by the people at the general election to be held in
Page 8, Line 22November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.