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, 8-83-503, amend (3)(b) and (3)(c); and add (3)(d) as follows:
Page 3, Line 38-83-503. Just transition office - advisory committee - repeal. (3) It is the purpose of the office to:
Page 3, Line 4(b) Provide administrative, logistical, research, and policy support
Page 3, Line 5to the just transition advisory committee's work as outlined in subsection (6) of this section;
andPage 3, Line 6(c) Participate in the department's presentation to the general
Page 3, Line 7assembly during the "State Measurement for Accountable, Responsive,
Page 3, Line 8and Transparent (SMART) Government Act" hearings, held pursuant to
Page 3, Line 9part 2 of article 7 of title 2, regarding requirements for financing
Page 3, Line 10components of the just transition plan, the administration of this part 5, and the expected results; and
Page 3, Line 11(d) Report to the annual "State Measurement for
Page 3, Line 12Accountable, Responsive, and Transparent (SMART)
Page 3, Line 13Government Act" hearings, held pursuant to part 2 of article 7
Page 3, Line 14of title 2, of the senate local government and housing
Page 3, Line 15committee and the house transportation, housing, and local
Page 3, Line 16government committee, or their successor committees, about the
Page 3, Line 17grants awarded by the office during the preceding fiscal year, their recipients, and the purpose for which they were awarded.
Page 3, Line 18SECTION 2. In Colorado Revised Statutes, 8-83-504, amend
Page 4, Line 1(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 4, Line 28-83-504. Just transition cash fund - transfer from general
Page 4, Line 3fund - transfer from account - definition - use of money.
Page 4, Line 4(4) (a) (II) Subject to annual appropriation by the general assembly, the
Page 4, Line 5office shall expend the money transferred to the fund pursuant to this
Page 4, Line 6subsection (4)(a) to implement the just transition plan for Colorado
Page 4, Line 7prepared as required by section 8-83-503 (4), to provide supplemental
Page 4, Line 8funding for existing state programs that the office identifies as the most
Page 4, Line 9effective vehicles for targeted investment in coal transition communities,
Page 4, Line 10and to provide grants and other support directly to coal transition
Page 4, Line 11communities and other eligible entities. In expending money from the
Page 4, Line 12fund, the office shall place a heavy emphasis on investment in tier one
Page 4, Line 13and tier two coal transition communities and shall prioritize
Page 4, Line 14communities experiencing socioeconomic impacts of coal
Page 4, Line 15closures, opportunities for economic diversification, local
Page 4, Line 16community input, feasibility studies of specific proposed projects,
Page 4, Line 17and needs assessments. The office shall support programs and base funding decisions on factors that:
Page 4, Line 18(C) Support infrastructure projects and workforce development programs;
orPage 4, Line 19(D) Are consistent with the goals and strategies outlined in the just transition plan; or
Page 4, Line 21(E) For money appropriated to the fund after July 1, 2025,
Page 4, Line 22support targeted investment in coal transition communities by
Page 4, Line 23collaborating with coal transition communities and eligible
Page 5, Line 1entities, state and regionally recognized governmental and
Page 5, Line 2economic development entities, employee organizations that
Page 5, Line 3represent coal transition workers, and workers who are not
Page 5, Line 4affiliated with employee organizations to implement effective
Page 5, Line 5projects and programs for those communities consistent with this part 5.
Page 5, Line 6(II.5) (A) The office shall establish a timeline for
Page 5, Line 7reviewing project proposals and applications and shall promptly
Page 5, Line 8notify applicants of any deficiencies or incompleteness that may
Page 5, Line 9be remedied prior to a final funding determination. Applicants
Page 5, Line 10must be allowed fifteen days to make changes or add supplementary documentation.
Page 5, Line 11(B) Project funding decisions must be issued within ninety
Page 5, Line 12days of receiving a final project proposal. If a decision is not
Page 5, Line 13possible within ninety days, the office shall provide a status
Page 5, Line 14update to the applicant at that time. All funding decisions must
Page 5, Line 15be publicly accessible with published reasons for denial of a project proposal along with recommendations for improvement.
Page 5, Line 16(C) At the earliest regularly scheduled meeting of the
Page 5, Line 17joint budget committee following the close of a fiscal year, the
Page 5, Line 18office shall report to the joint budget committee about the
Page 5, Line 19grants awarded by the office during the preceding fiscal year,
Page 5, Line 20their recipients, and the purpose for which they were awarded
Page 5, Line 21and make the same presentation at the annual SMART Act
Page 5, Line 22hearings of the senate local government and housing committee
Page 5, Line 23and the house transportation, housing, and local government
Page 5, Line 24committee.
Page 6, Line 1SECTION 3. In Colorado Revised Statutes, 8-83-504.5, amend (1)(e) as follows:
Page 6, Line 28-83-504.5. Additional coal transition workforce assistance
Page 6, Line 3program funding - coal transition workforce assistance program
Page 6, Line 4account. (1) (e) The department shall expend or encumber the money
Page 6, Line 5transferred to the account pursuant to subsection (1)(a)(II)(B) of this section by the close of state fiscal
year 2026-27Page 6, Line 6SECTION 4. In Colorado Revised Statutes, 8-83-506, amend (2)(a) as follows:
Page 6, Line 78-83-506. Report - recommendations - repeal. (2) (a) Between
Page 6, Line 8September 1 and November 15, 2022, and between September 1 and
Page 6, Line 9November 15 of each year thereafter, the director shall present a report
Page 6, Line 10to the joint budget committee of the general assembly on the history of
Page 6, Line 11expenditures from the fund and the account and the purposes for which
Page 6, Line 12the money in the fund and in the account has been expended or
Page 6, Line 13encumbered in the immediately preceding state fiscal year, specifying the
Page 6, Line 14programs described in sections 8-83-504 and 8-83-504.5 for which money
Page 6, Line 15has been expended, encumbered, or otherwise allocated. The report
Page 6, Line 16must include information about the grants awarded by the
Page 6, Line 17office during the preceding fiscal year, their recipients, and the purpose for which they were awarded.
Page 6, Line 18SECTION 5. In Colorado Revised Statutes, 24-75-601.1, add (5) as follows:
Page 6, Line 1924-75-601.1. Legal investments of public funds - definition.
Page 6, Line 20(5) Nothing in this section applies to public funds held or
Page 6, Line 21invested as part of any payment or settlement to offset the
Page 6, Line 22socioeconomic impacts to a community or government from the closure of a coal mine or coal power generating station.
Page 7, Line 2SECTION 6. In Colorado Revised Statutes, 39-29-110, amend (1)(b)(I) and (1)(b)(II)(A) as follows:
Page 7, Line 339-29-110. Local government severance tax fund - creation -
Page 7, Line 4administration - definitions - repeal. (1) (b) (I) Seventy percent of the
Page 7, Line 5funds
fromPage 7, Line 6distributed to those political subdivisions socially or economically
Page 7, Line 7impacted by the development, processing, or energy conversion of
Page 7, Line 8minerals and mineral fuels subject to taxation under this article and used
Page 7, Line 9for the planning, construction, and maintenance of public facilities and
Page 7, Line 10for the provision of public services. Such funds shall also be distributed
Page 7, Line 11to political subdivisions to compensate them for loss of property tax
Page 7, Line 12revenue resulting from the deduction of severance taxes paid in the
Page 7, Line 13determination of the valuation for assessment of producing mines. The
Page 7, Line 14executive director of the department of local affairs shall consider the
Page 7, Line 15economic needs of a political subdivision for purposes of making
Page 7, Line 16distributions pursuant to this
subparagraph (I)Page 7, Line 17executive director of the department of local affairs may
Page 7, Line 18establish an administrative policy for a preference to just
Page 7, Line 19transition coal communities. This preference will be available for a three-year period beginning January 1, 2026.".
Page 7, Line 20(II) (A) In addition to the distribution of
moneysPage 7, Line 21authorized under
subparagraph (I) of this paragraph (b)Page 7, Line 22(1)(b)(I) of this section, the executive director may distribute
moneysPage 7, Line 23money or make loans, or any combination thereof, to
suchPage 7, Line 24subdivisions for the planning, design, construction, erection, building,
Page 8, Line 1acquisition, alteration, modernization, reconstruction, improvement, or
Page 8, Line 2expansion of domestic wastewater treatment works or potable water
Page 8, Line 3treatment facilities. Any loan made by the executive director under the
Page 8, Line 4authority of this section shall only be made under such terms as will
Page 8, Line 5insure repayment of the loan with interest assessed and collected at an
Page 8, Line 6interest rate
of not less than five percentPage 8, Line 7AA-rated ten-year municipal bond rate averaged over the previous six months, at the time of application.
Page 8, Line 8SECTION 7. In Colorado Revised Statutes, 24-38.5-121, amend (5) as follows:
Page 8, Line 924-38.5-121. Assessment of advanced energy solutions in rural
Page 8, Line 10Colorado - northwestern and west end of Montrose county Colorado
Page 8, Line 11study - southeastern Colorado study - report - legislative declaration
Page 8, Line 12- definitions - repeal. (5) If the director has sufficient federal
Page 8, Line 13money to support the submittal of the findings and conclusions
Page 8, Line 14of the study required in subsection (3) of this section, on or
Page 8, Line 15before December 19, 2025, the director shall submit the findings and
Page 8, Line 16conclusions of the northwestern and west end of Montrose county
Page 8, Line 17Colorado study and the southeastern Colorado study required in
Page 8, Line 18subsection (3) of this section to the house of representatives energy and
Page 8, Line 19environment committee and the senate transportation and energy
Page 8, Line 20committee, or their successor committees and to the just transition office
Page 8, Line 21created in section 8-83-503 (1). The findings and conclusions submitted
Page 8, Line 22must include any recommendations including administrative or legislative
Page 8, Line 23action needed to assist northwestern and west end of Montrose county,
Page 8, Line 24Colorado, in the transition to firm energy generation sources and to assist
Page 8, Line 25southeastern Colorado in the development of new energy resources.
Page 9, Line 1SECTION 8. In Colorado Revised Statutes, 31-15-707, amend (1)(a)(I) as follows:
Page 9, Line 231-15-707. Municipal utilities. (1) The governing body of each municipality has the power:
Page 9, Line 3(a) (I) To acquire waterworks, gasworks, and gas distribution
Page 9, Line 4systems for the distribution of gas of any kind or electric light and power
Page 9, Line 5works and distribution systems, or heating and cooling works and
Page 9, Line 6distribution systems for the distribution of heat and cooling obtained from
Page 9, Line 7geothermal resources, solar or wind energy, hydroelectric or renewable
Page 9, Line 8biomass resources, including waste and cogenerated heat, and all
Page 9, Line 9appurtenances necessary to any of
saidPage 9, Line 10authorize the erection, ownership, operation, and maintenance of
suchPage 9, Line 11the works and systems by others. No
such works or systems, exceptPage 9, Line 12
waterworks,Page 9, Line 13distribution of gas of any kind, or electric power works and
Page 9, Line 14distribution systems shall be acquired or erected by a municipality
Page 9, Line 15until the question of acquiring or erecting the same is submitted at a
Page 9, Line 16regular or special election and approved in the manner provided for
Page 9, Line 17authorization of bonded indebtedness by section 31-15-302 (1)(d) and in
Page 9, Line 18accordance with the requirements of law, including requirements of law
Page 9, Line 19relating to the acquisition and financing of public utilities by
Page 9, Line 20municipalities. The question of acquiring or erecting a waterworks,
needPage 9, Line 21
not be soPage 9, Line 22distribution systems for the distribution of heating and cooling
Page 9, Line 23obtained from geothermal resources, solar or wind energy,
Page 9, Line 24hydroelectric, or renewable biomass resources is not required
Page 9, Line 25to be submitted and approved at an election.
Page 10, Line 1SECTION 9. Safety clause. The general assembly finds,
Page 10, Line 2determines, and declares that this act is necessary for the immediate
Page 10, Line 3preservation of the public peace, health, or safety or for appropriations for
Page 10, Line 4the support and maintenance of the departments of the state and state institutions.