A Bill for an Act
Page 1, Line 101Concerning encouraging the reduction of embodied carbon.
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.)
Embodied carbon is the carbon associated with greenhouse gas emissions arising from the production, construction, use, and end-of-life of products or systems used in the construction of buildings, roads, and other infrastructure. An embodied carbon improvement is a real property installation or modification that is completed in a manner that generates relatively less embodied carbon.
Section 1 of the bill adds embodied carbon improvements to the list of new energy improvements that are eligible for property-assessed clean energy financing provided by the Colorado new energy improvement district.
Section 2 modifies the industrial clean energy tax credit so that embodied carbon improvements are greenhouse gas emissions reduction improvements.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 32-20-103, amend the introductory portion and (7); and add (4.5) as follows:
Page 2, Line 332-20-103. Definitions. As used in this
articlePage 2, Line 4(4.5) "Embodied carbon improvement" means one or more
Page 2, Line 5installations or modifications to real property that
Page 2, Line 6cumulatively result in the reduction of the global warming
Page 2, Line 7potential as established in policies created by the Colorado energy office created in section 24-38.5-101.
Page 2, Line 8(7) "New energy improvement" means one or more on-site energy
Page 2, Line 9efficiency improvements, embodied carbon improvements, renewable
Page 2, Line 10energy improvements, resiliency improvements, or water efficiency
Page 2, Line 11improvements made to eligible real property that will reduce the energy
Page 2, Line 12consumption of or add energy produced from renewable energy sources with regard to any portion of the eligible real property.
Page 2, Line 13SECTION 2. In Colorado Revised Statutes, 39-22-551, amend (2)(e)(XVIII); and add (2)(e)(XVIII.5) as follows:
Page 2, Line 1439-22-551. Industrial clean energy tax credit - tax preference
Page 2, Line 15performance statement - definitions - report - repeal. (2) Definitions. As used in this section, unless the context otherwise requires:
Page 2, Line 16(e) "Greenhouse gas emissions reduction improvements" means
Page 2, Line 17improvements that help to measurably reduce greenhouse gas emissions.
Page 3, Line 1"Greenhouse gas emissions reduction improvements" may include one or more of the following equipment purchases, improvements, and retrofits:
Page 3, Line 2(XVIII) Material substitutions within industrial processes to
Page 3, Line 3reduce industrial process greenhouse gas emissions by a minimum of fifteen percent when compared to existing production practices;
andPage 3, Line 4(XVIII.5) For income tax years commencing on or after
Page 3, Line 5January 1, 2025, embodied carbon improvements, which are
Page 3, Line 6installations or modifications to real property that
Page 3, Line 7cumulatively result in the reduction of the global warming
Page 3, Line 8potential of the installation or modification, as established in
Page 3, Line 9policies created by the Colorado energy office, created in
Page 3, Line 10section 24-38.5-101. To qualify as an embodied carbon
Page 3, Line 11improvement, an improvement must have a global warming
Page 3, Line 12potential at least fifteen percent less than if the same
Page 3, Line 13improvement were constructed according to a baseline established by department policy.
Page 3, Line 14SECTION 3. Act subject to petition - effective date. This act
Page 3, Line 15takes effect at 12:01 a.m. on the day following the expiration of the
Page 3, Line 16ninety-day period after final adjournment of the general assembly; except
Page 3, Line 17that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 3, Line 18of the state constitution against this act or an item, section, or part of this
Page 3, Line 19act within such period, then the act, item, section, or part will not take
Page 3, Line 20effect unless approved by the people at the general election to be held in
Page 3, Line 21November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.