A Bill for an Act
Page 1, Line 101Concerning the process to allow a transmission developer
Page 1, Line 102to locate high voltage transmission lines within a
Page 1, Line 103state highway right-of-way.
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 bill allows a transmission developer to locate high voltage transmission lines within a state highway right-of-way, according to a process developed by rule by the department of transportation (department). The department may impose surcharges on a transmission developer for its co-location of high voltage lines in a state highway right-of-way, including a one-time surcharge to cover the costs of a permit for the use of the state highway right-of-way and an annual use surcharge. Upon the request of a transmission developer, the department is required to provide to the transmission developer the best available information on potential future state highway development projects that could impact the placement of a high voltage line within a state highway right-of-way. In assessing potential sites for the placement of high voltage lines, a transmission developer is required to consider development sites in the following order of priority: First, existing utility corridors; second, state highway rights-of-way; and last, new utility corridors.
The bill also requires the Colorado energy office and the Colorado electric transmission authority, through a public-private partnership and in collaboration with the department, the Colorado public utilities commission, and other state agencies, to study state highway corridors to identify potential corridors that may be suitable for high voltage transmission line development.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. Legislative declaration. (1) The general assembly finds and declares that:
Page 2, Line 3(a) Colorado will need to expand electric transmission to meet its
Page 2, Line 4clean energy and greenhouse gas reduction targets and reliability and affordability obligations;
Page 2, Line 5(b) It is the policy of the state that high voltage transmission lines
Page 2, Line 6may be constructed or maintained within the access control lines of
Page 2, Line 7highway, freeway, and interstate highway rights-of-way unless the
Page 2, Line 8executive director of the Colorado department of transportation,
Page 2, Line 9consulting with appropriate state agencies, disapproves of this co-location
Page 2, Line 10to protect public safety, communities, and wildlife habitat, crossings, and
Page 2, Line 11migratory corridors or to ensure the proper functioning of a state
Page 2, Line 12highway, freeway, or interstate highway. If the installation is on an
Page 2, Line 13interstate highway, the express approval of the federal highway
Page 2, Line 14administration is required and the project may be required to undergo the
Page 3, Line 1review process required by the federal "National Environmental Policy Act of 1969", 42 U.S.C. sec. 4321, et seq.
Page 3, Line 2(c) Co-locating transmission lines along highways can
Page 3, Line 3significantly reduce impacts on wildlife and habitat compared to building
Page 3, Line 4new lines through greenfield areas. The impacts on communities,
Page 3, Line 5including disproportionately impacted communities, must be evaluated
Page 3, Line 6and mitigated through the use of approaches like those outlined in the
Page 3, Line 7Colorado electric transmission authority's 2024 "Principles of Community
Page 3, Line 8Engagement" and the Colorado environmental justice action task force's 2022 "Final Report of Recommendations".
Page 3, Line 9SECTION 2. In Colorado Revised Statutes, add 43-1-228 as follows:
Page 3, Line 1043-1-228. High voltage lines in state highway right-of-way -
Page 3, Line 11development projects and priorities - surcharge - study - rules -
Page 3, Line 12definitions. (1) Definitions.As used in this section, unless the context otherwise requires:
Page 3, Line 13(a) "High voltage line" means any line for the
Page 3, Line 14transmission of electric current with a nominal voltage in
Page 3, Line 15excess of sixty-nine kilovolts that is co-located longitudinally
Page 3, Line 16in a state highway right-of-way, and all supporting structures
Page 3, Line 17and accessories necessary for such line. "High voltage line"
Page 3, Line 18does not include any line for the transmission of electric current that crosses a state highway right-of-way.
Page 3, Line 19(b) "Rule" has the same meaning as set forth in section 24-4-102 (15).
Page 3, Line 20(c) "State highway" means any highway owned,
Page 3, Line 21controlled, or maintained by the state, including federal-aid
Page 4, Line 1primary or secondary systems or the interstate system. "State
Page 4, Line 2highway" does not include a public highway operated by a public
Page 4, Line 3highway authority in accordance with the "Public Highway Authority Law", part 5 of article 4 of this title 43.
Page 4, Line 4(d) "Transmission developer" means:
Page 4, Line 5(I) A transmission utility, as defined in section 40-5-108 (1)(b);
Page 4, Line 6(II) The Colorado electric transmission authority created in section 40-42-103;
Page 4, Line 7(III) A generation and transmission cooperative or association;
Page 4, Line 8(IV) An independent transmission developer, which is an
Page 4, Line 9entity not owned by a public or investor-owned utility and which develops transmission lines and infrastructure; and
Page 4, Line 10(V) Any of the following entities that have voted to
Page 4, Line 11exempt themselves from the "Public Utilities Law", articles 1 to 7 of title 40, pursuant to section 40-9.5-103:
Page 4, Line 12(A) A municipally owned utility;
Page 4, Line 13(B) A power authority established pursuant to section 29-1-204 (1); or
Page 4, Line 14(C) A cooperative electric association, as defined in section 40-9.5-102 (1).
Page 4, Line 15(2) State highway high voltage line co-location projects.
Page 4, Line 16(a) (I) Upon the request of a transmission developer, the
Page 4, Line 17department shall provide to the transmission developer the best
Page 4, Line 18available information on potential future state highway
Page 4, Line 19development projects, as included in the statewide
Page 5, Line 1transportation plan, that could impact the placement of a high voltage line within a state highway right-of-way.
Page 5, Line 2(II) The department shall process such a request for
Page 5, Line 3information in the order that it was received, in accordance with the department's special use permitting process.
Page 5, Line 4(b) (I) If the department and a transmission developer
Page 5, Line 5agree that an identified site may be suitable for development or
Page 5, Line 6construction of a high voltage line within a state highway
Page 5, Line 7right-of-way, the department shall develop a preconstruction
Page 5, Line 8plan review schedule that includes all applicable sections of
Page 5, Line 9the state highway utility accommodation code, 2 CCR 601-18, or any successor code.
Page 5, Line 10(II) Upon approval of the preconstruction requirements
Page 5, Line 11outlined in a preconstruction plan, the transmission developer
Page 5, Line 12shall provide a constructability, access, and maintenance
Page 5, Line 13report to be utilized when transmission line co-location projects
Page 5, Line 14in a state highway right-of-way are being planned and approved.
Page 5, Line 15The constructability, access, and maintenance report must
Page 5, Line 16outline mitigation strategies needed to effectively avoid or
Page 5, Line 17address potential transmission line impacts to communities,
Page 5, Line 18including disproportionately impacted communities, and to habitats, wildlife, and wildlife crossings.
Page 5, Line 19(III) A constructability, access, and maintenance report
Page 5, Line 20must be approved by the department before the department issues a permit for the use of a state highway right-of-way.
Page 5, Line 21(c) All work performed under a contract for the location
Page 5, Line 22of a high voltage line within a state highway right-of-way, as
Page 6, Line 1allowed pursuant to this section, that is an energy sector public
Page 6, Line 2works project, as defined in section 24-92-303 (5)(a), must comply
Page 6, Line 3with the requirements of section 24-92-115 (7) and part 2 of
Page 6, Line 4article 92 of title 24. Any contractor hired to perform such
Page 6, Line 5work shall comply with the standards described in section 40-42-107.
Page 6, Line 6(d) Notwithstanding any provision of this section to the
Page 6, Line 7contrary, a transmission developer seeking to locate a high
Page 6, Line 8voltage line within a state highway right-of-way within the
Page 6, Line 9exterior boundaries of an Indian reservation shall first obtain written consent of the applicable tribal government.
Page 6, Line 10 (3) High voltage line or facility site priorities - reports.
Page 6, Line 11(a) Beginning on January 1, 2027, within thirty calendar days of
Page 6, Line 12filing for a local permit for the construction or development of
Page 6, Line 13high voltage lines or facilities necessary for high voltage
Page 6, Line 14transmission, a transmission developer shall make available on a public-facing project website or utility website a report that:
Page 6, Line 15(I) Describes the analysis undertaken for route selection;
Page 6, Line 16(II) Demonstrates that the transmission developer
Page 6, Line 17considered or is considering development sites in the following order of priority:
Page 6, Line 18(A) First, existing utility corridors, where adding new
Page 6, Line 19lines or making improvements to existing lines can achieve expanded electric capacity at the lowest possible cost;
Page 6, Line 20(B) Second, state highway rights-of-way; and
(C) Last, new utility corridors; and
Page 6, Line 21(III) Includes an evaluation of the economic impacts,
Page 7, Line 1engineering considerations, and reliability of the electric system.
Page 7, Line 2(b) A transmission developer shall update the report
Page 7, Line 3described in subsection (3)(a) of this section if the transmission
Page 7, Line 4developer materially changes the transmission route beyond
Page 7, Line 5minor route adjustments and shall make the updated report
Page 7, Line 6available on the same public-facing project website or utility website.
Page 7, Line 7(c) Nothing in this subsection (3) requires a transmission
Page 7, Line 8developer to select an existing utility corridor or a state
Page 7, Line 9highway right-of-way for development of high voltage lines or facilities.
Page 7, Line 10(d) The failure of a transmission developer to comply with this subsection (3) does not:
Page 7, Line 11(I) Create a cause of action for a civil suit seeking monetary damages or injunctive relief; and
Page 7, Line 12(II) Constitute a legal basis for a governmental entity to
Page 7, Line 13deny a permit or withhold other approval for a high voltage line.
Page 7, Line 14(4) Compensation to department for right-of-way access.
Page 7, Line 15(a) (I) A transmission developer shall compensate the
Page 7, Line 16department for its co-location of high voltage lines in a state
Page 7, Line 17highway right-of-way. A transmission developer may
Page 7, Line 18compensate the department through surcharges as provided in
Page 7, Line 19subsection (4)(b) of this section or through a public-private initiative as provided in subsection (4)(c) of this section.
Page 7, Line 20(II) The surcharges for a transmission developer's use of
Page 8, Line 1a state highway right-of-way is an alternative method to
Page 8, Line 2compensating the state through in-kind infrastructure
Page 8, Line 3exchange in a public-private initiative, as defined in section
Page 8, Line 443-1-1201 (3). The entity requesting access to the right-of-way
Page 8, Line 5has the discretion to choose which process it will use to compensate the state for its use of the right-of-way.
Page 8, Line 6(III) A transmission developer may enter into a
Page 8, Line 7public-private initiative to compensate the department for
Page 8, Line 8access to the state highway right-of-way after rulemaking
Page 8, Line 9pursuant to subsection (6) of this section is complete. The option
Page 8, Line 10to compensate the department for access to the state highway
Page 8, Line 11right-of-way by paying surcharges is available beginning on July 1, 2027.
Page 8, Line 12(b) The department may impose surcharges on a
Page 8, Line 13transmission developer for its access to a state highway
Page 8, Line 14right-of-way, including a one-time surcharge to cover the costs
Page 8, Line 15of a permit for the use of the right-of-way and an annual use
Page 8, Line 16surcharge for the use of the right-of-way. The department shall
Page 8, Line 17establish the surcharges by rule pursuant to subsection(6)(b)(IV) of this section.
Page 8, Line 18(c) A transmission developer may compensate the
Page 8, Line 19department for its access to a state highway right-of-way
Page 8, Line 20through in-kind infrastructure exchange in a public-private initiative, as defined in section 43-1-1201 (3).
Page 8, Line 21(5) State highway corridor study - report. (a) Through a
Page 8, Line 22public-private partnership, where funding is provided by private
Page 8, Line 23partners, the Colorado electric transmission authority
Page 9, Line 1created in section 40-42-103, in collaboration with the
Page 9, Line 2department, the Colorado energy office created in section
Page 9, Line 324-38.5-101, the Colorado public utilities commission created in
Page 9, Line 4section 40-2-101, and other state agencies, including the division
Page 9, Line 5of parks and wildlife in the department of natural resources
Page 9, Line 6created in section 33-9-104, shall study state highway corridors
Page 9, Line 7to identify potential corridors that may be suitable for high
Page 9, Line 8voltage transmission line development.The study must identify all private entities providing funding.
Page 9, Line 9(b) The Colorado energy office and the Colorado electric
Page 9, Line 10transmission authority shall complete the study required by
Page 9, Line 11this subsection (5) no later than eighteen months after the date that funding is secured from private partners.
Page 9, Line 12(c) The Colorado energy office and the Colorado electric
Page 9, Line 13transmission authority shall publish a report on the findings of
Page 9, Line 14the study required by this subsection (5) on their websites and
Page 9, Line 15shall share the report with the department, the Colorado public
Page 9, Line 16utilities commission, the division of parks and wildlife in the
Page 9, Line 17department of natural resources created in section 33-9-104, and, as appropriate, other state agencies.
Page 9, Line 18(6) Rules. (a) The department shall update its rules
Page 9, Line 19concerning access to state highway rights-of-way to
Page 9, Line 20accommodate high voltage lines pursuant to the state highway
Page 9, Line 21utility accommodation code, 2 CCR 601-18, or any successor code.
Page 9, Line 22(b) The executive director shall adopt rules as necessary
Page 9, Line 23to implement this section. The rules must:
Page 10, Line 1(I) Clarify that longitudinal high voltage lines may be
Page 10, Line 2permitted in state highway rights-of-way if identified criteria are met;
Page 10, Line 3(II) Create a process through which a transmission
Page 10, Line 4developer must submit a request to the department for a permit
Page 10, Line 5for the use of a state highway right-of-way to construct a high voltage line;
Page 10, Line 6(III) Establish the process for the denial of a permit
Page 10, Line 7request submitted by a transmission developer for a high
Page 10, Line 8voltage line if the proposed project presents a risk to public
Page 10, Line 9safety or prevents the proper functioning of the state highway; and
Page 10, Line 10(IV) Set the surcharges for a transmission developer's
Page 10, Line 11access to a state highway right-of-way, as described in subsection (4) of this section, as follows:
Page 10, Line 12(A) Surcharges must be paid at a rate of six hundred dollars per mile;
Page 10, Line 13(B) Surcharges cover a twenty-year access term and may
Page 10, Line 14be paid as a lump sum one-time payment of twelve thousand
Page 10, Line 15dollars per mile or as an annual payment of six hundred dollars per mile for each year of the twenty-year access term;
Page 10, Line 16(C) Beginning on July 1, 2028, and on every July 1
Page 10, Line 17thereafter, the department may adjust the amount of the
Page 10, Line 18dollar-per-mile surcharge for inflation in accordance with the
Page 10, Line 19average annual percentage change in the United States
Page 10, Line 20department of transportation, federal highway administration,
Page 10, Line 21national highway construction cost index or its applicable
Page 11, Line 1predecessor or successor index for the five-year period ending
Page 11, Line 2on the last December 31 before a state fiscal year for which an inflation adjustment to the surcharge is made to begin;
Page 11, Line 3(D) The twenty-year access term covered by the surcharges may be renewed every twenty years; and
Page 11, Line 4(E) The department shall establish prorated surcharges
Page 11, Line 5for high voltage line transmission development projects with installations of less than three hundred feet.
Page 11, Line 6(c) The department shall update its rules as required by
Page 11, Line 7subsection (6)(a) of this section and adopt the rules required by subsection (6)(b) of this section no later than January 1, 2027.
Page 11, Line 8SECTION 3. In Colorado Revised Statutes, 12-10-602, amend (9)(b)(VI) as follows:
Page 11, Line 912-10-602. Definitions. As used in this part 6, unless the context otherwise requires:
Page 11, Line 10(9) (b) "Real estate appraiser" or "appraiser" does not include:
Page 11, Line 11(VI) A right-of-way acquisition agent, an appraiser who is
Page 11, Line 12licensed and certified pursuant to this part 6, or any other individual who
Page 11, Line 13has sufficient understanding of the local real estate market to be qualified
Page 11, Line 14to make a waiver valuation when the agent, appraiser, or other qualified
Page 11, Line 15individual is employed by or contracts with a public entity and provides
Page 11, Line 16an opinion of value that is not represented as an appraisal and when, for
Page 11, Line 17any purpose, the property or portion of property being valued is valued at
Page 11, Line 18
twenty-five thousand dollars or less, asPage 11, Line 19SECTION 4. Act subject to petition - effective date. This act
Page 11, Line 20takes effect at 12:01 a.m. on the day following the expiration of the
Page 12, Line 1ninety-day period after final adjournment of the general assembly; except
Page 12, Line 2that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 12, Line 3of the state constitution against this act or an item, section, or part of this
Page 12, Line 4act within such period, then the act, item, section, or part will not take
Page 12, Line 5effect unless approved by the people at the general election to be held in
Page 12, Line 6November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.