House Bill 25-1040 Reengrossed

A Bill for an Act

• Page 1, Line 101Concerning the inclusion of nuclear energy as a source of

• Page 1, Line 102clean energy.

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 statutory definition of "clean energy" determines which energy projects are eligible for clean energy project financing at the county and city and county level. The statutory definition of "clean energy resource" determines which energy resources may be used by a qualifying retail utility to meet the 2050 clean energy target. The bill updates the 2 statutory definitions to include nuclear energy; except that for property valuations made for tax purposes, the bill exempts from the definition of "clean energy resource" nuclear energy generated by a public utility.

• 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

• Page 2, Line 3finds that:

• Page 2, Line 4(a)  Colorado's estimated electricity peak demand is projected to

• Page 2, Line 5double in the next 5 years;

• Page 2, Line 6(b)  The current path to eliminating greenhouse gas emissions in

• Page 2, Line 7Colorado includes only the use of wind, geothermal, and solar power and

• Page 2, Line 8battery storage;

• Page 2, Line 9(c)  Providing more options for generating electricity in Colorado

• Page 2, Line 10will lead to a less expensive and a more reliable path to eliminating

• Page 2, Line 11greenhouse gas emissions;

• Page 2, Line 12(d)  Advanced nuclear energy can produce higher quantities of

• Page 2, Line 13clean energy with a smaller land footprint than other clean energy

• Page 2, Line 14sources;

• Page 2, Line 15(e)  Small modular nuclear reactors can replace coal power plants

• Page 2, Line 16while maintaining the number of jobs in the communities in which the

• Page 2, Line 17coal power plants are located;

• Page 2, Line 18(f)  New designs for advanced nuclear reactors are being

• Page 2, Line 19developed by entrepreneurial companies in the United States seeking to

• Page 2, Line 20increase the value of nuclear technology within our energy system. It is

• Page 2, Line 21estimated that the designs will be commercially operational this decade

• Page 2, Line 22and will be ready for large-scale deployment by the 2030s to help meet

• Page 2, Line 23domestic and global clean energy needs.

• Page 2, Line 24(g)  The development of a small modular reactor can create up to

• Page 2, Line 25900 jobs lasting up to 4 years, as well as up to 300 permanent jobs;

• Page 3, Line 1(h)  Advancements in policy at the federal level, such as the

• Page 3, Line 2bipartisan "Atomic Energy Advancement Act", H.R. 6544, will improve

• Page 3, Line 3regulatory oversight of nuclear energy by prioritizing workforce training,

• Page 3, Line 4environmental protections, and public safety, while reducing reliance on

• Page 3, Line 5fossil fuels; and

• Page 3, Line 6(i)  Through recycling methods, up to 96% of the reusable material

• Page 3, Line 7in spent fuel can be recycled.

• Page 3, Line 8(2)  The general assembly further finds that:

• Page 3, Line 9(a)  Coloradans care about clean energy; to that end, nuclear

• Page 3, Line 10energy:

• Page 3, Line 11(I)  Is currently the single largest source of carbon-free electricity

• Page 3, Line 12generation in the United States and around the world, with 94 nuclear

• Page 3, Line 13reactors in the United States alone generating about 50% of the country's

• Page 3, Line 14carbon-free electricity;

• Page 3, Line 15(II)  Does not produce carbon dioxide, thus offsetting carbon

• Page 3, Line 16emissions; and

• Page 3, Line 17(III)  Should be included in the statutory definitions of "clean

• Page 3, Line 18energy" and "clean energy resource";

• Page 3, Line 19(b)  In adding nuclear energy to the statutory definitions of "clean

• Page 3, Line 20energy" and "clean energy resource", Colorado can continue to spearhead

• Page 3, Line 21energy innovations that align with the state's goals of keeping energy

• Page 3, Line 22affordable;

• Page 3, Line 23(c)  On its own, nuclear energy has a 92.7% capacity factor, which

• Page 3, Line 24refers to the percentage of time that an electricity-generating source is

• Page 3, Line 25able to generate electricity, and is a much higher capacity factor than for

• Page 3, Line 26all other generation sources;

• Page 3, Line 27(d)  Because nuclear energy has such a high capacity factor,

• Page 4, Line 1utilizing nuclear energy as a source of clean energy will help Colorado

• Page 4, Line 2prevent future blackouts and brownouts;

• Page 4, Line 3(e)  Nuclear energy can be utilized in conjunction with existing

• Page 4, Line 4clean energy sources to lower energy costs for Coloradans and maintain

• Page 4, Line 5a reliable source of electricity;

• Page 4, Line 6(f)  Adding nuclear energy to the statutory definitions of "clean

• Page 4, Line 7energy" and "clean energy resource" will attract continued public and

• Page 4, Line 8private research funding for innovations in clean energy technology;

• Page 4, Line 9(g)  Due to current funding levels, nuclear reactor designs that help

• Page 4, Line 10decarbonize hard-to-reach industries and locations already exist; and

• Page 4, Line 11(h)  New innovations such as microreactors would benefit rural

• Page 4, Line 12areas by keeping the energy source serving those areas local.

• Page 4, Line 13(3)  Therefore, the general assembly declares that it is in the best

• Page 4, Line 14interest of Colorado to add nuclear energy to the statutory definitions of

• Page 4, Line 15"clean energy" and "clean energy resource".

• Page 4, Line 16SECTION 2.  In Colorado Revised Statutes, 30-20-1202, amend

• Page 4, Line 17(2) as follows:

• Page 4, Line 1830-20-1202.  Definitions. As used in this part 12, unless the

• Page 4, Line 19context otherwise requires:

• Page 4, Line 20(2)  "Clean energy" means energy derived from biomass, as

• Page 4, Line 21defined in section 40-2-124 (1)(a)(I); C.R.S., geothermal energy; solar

• Page 4, Line 22energy; small hydroelectricity; and nuclear energy, including

• Page 4, Line 23nuclear energy projects awarded funding through the United

• Page 4, Line 24States department of energy's advanced nuclear reactor

• Page 4, Line 25programs; wind energy; as well as any and hydrogen derived from any

• Page 4, Line 26of the foregoing other energy sources listed in this subsection (2).

• Page 4, Line 27SECTION 3.  In Colorado Revised Statutes, 40-2-125.5, amend

• Page 5, Line 1(2)(b) as follows:

• Page 5, Line 240-2-125.5.  Carbon dioxide emission reductions - goal to

• Page 5, Line 3eliminate by 2050 - legislative declaration - interim targets -

• Page 5, Line 4submission and approval of plans - definitions - cost recovery -

• Page 5, Line 5reports - rules. (2)  Definitions. As used in this section, unless the

• Page 5, Line 6context otherwise requires:

• Page 5, Line 7(b) (I)  "Clean energy resource" means any electricity-generating

• Page 5, Line 8technology that generates or stores electricity without emitting carbon

• Page 5, Line 9dioxide into the atmosphere.

• Page 5, Line 10(II)  "Clean energy resources" include resource" includes,

• Page 5, Line 11without limitation:

• Page 5, Line 12(A)  Eligible energy resources as defined in section 40-2-124

• Page 5, Line 13(1)(a); and

• Page 5, Line 14(B)  Nuclear energy, including nuclear energy projects

• Page 5, Line 15awarded funding through the United States department of

• Page 5, Line 16energy's advanced nuclear reactor programs.

• Page 5, Line 17SECTION 4.  In Colorado Revised Statutes, 39-4-101, amend

• Page 5, Line 18(2.4) as follows:

• Page 5, Line 1939-4-101.  Definitions. As used in this article 4, unless the context

• Page 5, Line 20otherwise requires:

• Page 5, Line 21(2.4) (a)  Except as provided in subsection (2.4)(b) of this

• Page 5, Line 22section, "clean energy resource" has the same meaning as set forth in

• Page 5, Line 23section 40-2-125.5 (2)(b).

• Page 5, Line 24(b)  "Clean energy resource", for purposes of property

• Page 5, Line 25taxation under this section, does not include nuclear energy.

• Page 5, Line 26SECTION 5.  Act subject to petition - effective date. This act

• Page 5, Line 27takes effect at 12:01 a.m. on the day following the expiration of the

• Page 6, Line 1ninety-day period after final adjournment of the general assembly; except

• Page 6, Line 2that, if a referendum petition is filed pursuant to section 1 (3) of article V

• Page 6, Line 3of the state constitution against this act or an item, section, or part of this

• Page 6, Line 4act within such period, then the act, item, section, or part will not take

• Page 6, Line 5effect unless approved by the people at the general election to be held in

• Page 6, Line 6November 2026 and, in such case, will take effect on the date of the

• Page 6, Line 7official declaration of the vote thereon by the governor.