Senate Bill 25-280 Introduced

A Bill for an Act

• Page 1, Line 101Concerning benefits to facilitate data center development

• Page 1, Line 102while supporting electric grid infrastructure, and, in

• Page 1, Line 103connection therewith, creating the "Colorado Data

• Page 1, Line 104Center Development and Grid Modernization Act".

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 creates the data center development and grid modernization program (program) in the Colorado office of economic development (office). To facilitate efficient data center development and grid modernization, the program allows tax and utility benefits to a data center operator that applies to the office to have a data center project certified at one of 2 levels and that satisfies certain eligibility criteria for certification.

The first level of data center project certification created in the bill is base certification. In connection with base certification, the bill specifies that:

• To obtain base certification, a data center operator must commit, through the application process with the office, to making a $250 million minimum capital investment in data center facility construction and equipment within 5 years, creating 25 full-time jobs that satisfy specified criteria, and breaking ground on the data center project within 5 years of obtaining base certification;
• In addition to the investment and job creation requirements, to obtain base certification a data center operator must also commit to implementing basic grid support capabilities, obtaining certification under one of several energy efficiency standards, implementing water stewardship strategies that optimize operational water management, sourcing at least 50% of the data center project's energy consumption from renewable and clean sources, supporting clean integration by implementing energy storage solutions that align with the data center project's needs and operations, agreeing to certain post-certification requirements, and agreeing to submit annual compliance reports to the office;
• A data center operator must apply to the office, in a form and manner to be determined by the office, for base certification before taking action to satisfy any of the eligibility criteria;
• The office is required to review a data center operator's application for base certification and award base certification to data center operators that have demonstrated that they will satisfy the base certification criteria;
• A data center operator that obtains base certification for a data center project is eligible for a 100% sales and use tax exemption on the purchase, use, and storage of information technology infrastructure, data center infrastructure, and electrical grid enhancement equipment (qualified purchases) for 20 years from the date that the data center project was certified, so long as the data center project satisfies ongoing compliance requirements; and
• In addition to the sales and use tax credit, a data center operator that obtains base certification for a data center project is eligible for standard utility rate incentives as negotiated between the data center operator and the utility.
• To obtain enhancement certification, a data center operator must invest a minimum of $10 million in grid enhancement and modernization, invest in workforce development or other community benefit programs, agree to certain post-certification requirements, and agree to submit annual compliance reports to the office;
• A data center operator must apply to the office, in a form and manner to be determined by the office, for enhancement certification either before or after making the required minimum grid enhancement and modernization investment;
• The office is required to review a data center operator's application for enhancement certification and award enhancement certification to data center operators that have demonstrated that they will satisfy the enhancement certification criteria;
• For income tax years commencing on or after 2026, a data center operator that obtains enhancement certification for a data center project is eligible for an income tax credit in an amount equal to 10% of the amount of any grid enhancement and modernization investment made by the data center operator and an additional amount equal to 5% of the amount of such investment if the investment is made in a rural area (grid enhancement credit);
• A data center operator is not eligible to claim the grid enhancement credit until the data center operator has made the required minimum grid enhancement and modernization investment; and
• In addition to the grid enhancement credit, a data center operator that obtains enhancement certification for a data center project is eligible for enhanced utility benefits as negotiated between the data center operator and the utility.

The second level of data center certification created in the bill is enhancement certification. A data center operator that has obtained base certification for a data center project may apply for enhancement certification for the same data center. In connection with enhancement certification, the bill specifies that:

Before submitting an application for certification for a data center project, a data center operator is required to conduct and document a preliminary consultation with the utility that will provide electricity for the data center project regarding interconnection feasibility, capacity, and infrastructure requirements and obtain a written feasibility assessment from the utility. A data center operator is required to include the documentation of the consultation and the written feasibility assessment with an application to the office for certification of the data center project, and, if the data center project includes projects requiring review by the public utilities commission (commission), the commission is required to review specified aspects of the application.

A certified data center project that necessitates a new customer load or co-located customer load that satisfies certain criteria (emerging new load) is eligible for targeted resource acquisition if the data center operator satisfies specified requirements. The bill specifies a process by which a utility regulated by the commission may submit a resource acquisition application to the commission to meet emerging new load needs. The bill also specifies how a utility may finance resources and infrastructure needs in connection with emerging new loads.

After achieving base certification and enhancement certification, a data center operator may apply to the office for certain benefit extensions for the sales and use tax exemption allowed to data center operators that have obtained base certification, for the grid enhancement credit allowed to data center operators that have obtained enhancement certification, and for the utility benefits negotiated between the data center operator and the utility.

If the office determines that a data center operator is not fulfilling its obligations and commitments to retain base certification or enhancement certification, the office is required to revoke the certification and the data center operator is required to repay the state for the tax benefits that it received.

• Page 4, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 4, Line 2 SECTION 1.  In Colorado Revised Statutes, add part 8 to article 48.5 of title 24 as follows:

• Page 4, Line 3PART 8

• DATA CENTER DEVELOPMENT

• Page 4, Line 4AND GRID MODERNIZATION

• Page 4, Line 524-48.5-801. Short title.  The short title of this part 8 is the

• Page 4, Line 6"Colorado Data Center Development and Grid Modernization Act".

• Page 4, Line 724-48.5-802.  Legislative declaration. (1)  The general assembly finds, determines, and declares that:

• Page 5, Line 1(a)  Colorado's continued economic growth and

• Page 5, Line 2technological advancement depend on the development of

• Page 5, Line 3modern digital infrastructure that can support emerging

• Page 5, Line 4technologies while ensuring grid reliability, affordability of

• Page 5, Line 5electric service for all customers, and environmental sustainability;

• Page 5, Line 6(b)  Colorado faces interrelated challenges in:

• Page 5, Line 7(I)  Achieving its clean energy and greenhouse gas reduction goals while maintaining grid system reliability;

• Page 5, Line 8(II)  Modernizing critical electrical grid infrastructure to support increasing electrification;

• Page 5, Line 9(III)  Ensuring equitable economic development across urban, suburban, and rural communities; and

• Page 5, Line 10(IV)  Maintaining economic competitiveness in an evolving technological landscape;

• Page 5, Line 11(c)  The Colorado electric transmission authority has

• Page 5, Line 12identified critical transmission capacity needs requiring

• Page 5, Line 13approximately four and one-half billion dollars in

• Page 5, Line 14infrastructure investment through 2045, with significant

• Page 5, Line 15requirements for grid modernization, reliability enhancement, and renewable and clean energy integration;

• Page 5, Line 16(d)  Data centers represent a transformative opportunity to:

• Page 5, Line 17(I)  Accelerate grid modernization through strategic

• Page 5, Line 18investment contributions into transmission and distribution

• Page 5, Line 19infrastructure;

• Page 6, Line 1(II)  Create high-wage employment opportunities across

• Page 6, Line 2the state, particularly in areas transitioning from traditional energy economies; and

• Page 6, Line 3(III)  Strengthen local tax bases while driving technological innovation;

• Page 6, Line 4(e)  Colorado's existing tax structure does not

• Page 6, Line 5adequately reflect the unique operational characteristics and

• Page 6, Line 6infrastructure requirements of modern data center development;

• Page 6, Line 7(f)  The state's current tax framework creates unintended

• Page 6, Line 8barriers to critical digital infrastructure investment, particularly regarding:

• Page 6, Line 9(I)  Large-scale capital investment in technological equipment;

• Page 6, Line 10(II)  Ongoing grid infrastructure modernization; and

• (III)  Renewable and clean energy deployment;

• Page 6, Line 11(g)  Data centers represent a distinct class of infrastructure that:

• Page 6, Line 12(I)  Requires significant up-front capital investment;

• (II)  Drives substantial grid modernization;

• Page 6, Line 13(III)  Creates high-wage technology employment; and

• (IV)  Generates long-term economic benefits;

• Page 6, Line 14(h)  Colorado's current tax framework has resulted in the

• Page 6, Line 15state capturing only two percent of national data center

• Page 6, Line 16investment, and the state risks losing three to four billion

• Page 6, Line 17dollars in potential investment over the next decade despite

• Page 6, Line 18significant competitive advantages in climate, workforce, and renewable and clean resources;

• Page 7, Line 1(i)  Neighboring states have established comprehensive

• Page 7, Line 2incentive programs that place Colorado at a competitive disadvantage;

• Page 7, Line 3(j)  Colorado's broad framework of bold energy policy

• Page 7, Line 4goals creates a unique opportunity to drive data center

• Page 7, Line 5investment into increasingly clean energy mixes like that of Colorado;

• Page 7, Line 6(k)  Colorado's unique geographic and resource

• Page 7, Line 7advantages create opportunities for leadership in sustainable data center development;

• Page 7, Line 8(l)  A structured, performance-based approach to data

• Page 7, Line 9center development can advance multiple state policy

• Page 7, Line 10objectives while ensuring responsible development and community benefit; and

• Page 7, Line 11(m)  The integration of data center development with

• Page 7, Line 12transmission planning and utility operations can accelerate

• Page 7, Line 13critical infrastructure improvements necessary for Colorado's clean energy transition.

• Page 7, Line 14(2)  The general assembly further finds and declares that:

• Page 7, Line 15(a)  A structured, performance-based approach to data center development will:

• Page 7, Line 16(I)  Accelerate grid modernization through private investment;

• Page 7, Line 17(II)  Ensure responsible development that benefits local communities;

• Page 7, Line 18(III)  Advance multiple state policy objectives while maintaining system reliability;

• Page 8, Line 1(IV)  Create high-wage technology jobs;

• Page 8, Line 2(V)  Strengthen local tax bases, particularly in rural areas; and

• Page 8, Line 3(VI)  Enhance Colorado's position as a leader in technological innovation;

• Page 8, Line 4(b)  A comprehensive framework for data center development should:

• Page 8, Line 5(I)  Support the efficient use and enhancement of electrical grid resources;

• Page 8, Line 6(II)  Promote environmental sustainability and clean energy deployment;

• Page 8, Line 7(III)  Preserve local government autonomy while providing consistent statewide standards; and

• Page 8, Line 8(IV)  Create predictable and flexible regulatory frameworks that encourage long-term investment; and

• Page 8, Line 9(c)  A modernized tax structure for data centers should:

• Page 8, Line 10(I)  Reflect the infrastructure-intensive nature of data center operations;

• Page 8, Line 11(II)  Support efficient grid modernization and use;

• (III)  Align with state clean energy objectives; and

• Page 8, Line 12(IV)  Enable predictable, long-term investment.

• Page 8, Line 1324-48.5-803.  Definitions.As used in this part 8, unless the context otherwise requires:

• Page 8, Line 14(1)  "Authority" means the Colorado electric transmission authority created in section 40-42-103.

• Page 8, Line 15(2)  "Base certification" means certification granted to a

• Page 9, Line 1data center project that satisfies the fundamental qualification criteria established in section 24-48.5-809.

• Page 9, Line 2(3)  "Certified data center project" means a data center

• Page 9, Line 3project that has been certified by the office pursuant to section 24-48.5-806.

• Page 9, Line 4(4)  "Commission" means the Colorado public utilities commission created in section 40-2-101.

• Page 9, Line 5(5)  "Data center" means a facility that:

• Page 9, Line 6(a)  Houses information technology equipment used for data processing, data storage, or telecommunications; and

• Page 9, Line 7(b)  Has a primary function of delivering information technology services including:

• Page 9, Line 8(I)  Providing data storage, processing, and transport services;

• Page 9, Line 9(II)  Supporting the delivery of cloud computing services;

• (III)  Providing network connectivity services; and

• Page 9, Line 10(IV)  Supporting artificial intelligence, machine learning, or similar computational services.

• Page 9, Line 11(6)  "Data center operator" means any person or entity that:

• Page 9, Line 12(a)  Owns or operates a data center in Colorado;

• Page 9, Line 13(b)  Is a client or co-location tenant or licensee of a data center; or

• Page 9, Line 14(c)  Collocates information technology equipment within a qualifying data center facility.

• Page 9, Line 15(7)  "Data center project" means a designated area that

• Page 9, Line 16aggregates and co-locates electric loads, including one or

• Page 10, Line 1more data centers and related infrastructure, near clean

• Page 10, Line 2energy resources to optimize grid resources and deliver economic benefits to the community.

• Page 10, Line 3(8)  "Department" means the department of revenue.

• Page 10, Line 4(9)  "Emerging new load" means a new customer load or co-located customer loads that:

• Page 10, Line 5(a)  Exceed one hundred megawatts in the aggregate;

• (b)  Require grid infrastructure investment; and

• Page 10, Line 6(c)  Have a timeline necessitating expedited resource planning.

• Page 10, Line 7(10)  "Energy office" means the Colorado energy office created in section 24-38.5-101.

• Page 10, Line 8(11)  "Enhancement certification" means certification

• Page 10, Line 9granted to a data center project that voluntarily exceeds the

• Page 10, Line 10base certification requirements and satisfies the additional qualification criteria established in section 24-48.5-811.

• Page 10, Line 11(12)  "Grid enhancement investment" means capital investment in electrical infrastructure that:

• Page 10, Line 12(a)  Improves the capacity, reliability, or efficiency of the electrical grid;

• Page 10, Line 13(b)  Supports the integration of renewable and clean energy resources;

• Page 10, Line 14(c)  Enhances grid monitoring, control, or operational capabilities;

• Page 10, Line 15(d)  Reduces transmission constraints or congestion; and

• Page 10, Line 16(e)  Meets specifications established by the commission

• Page 10, Line 17pursuant to this part 8.

• Page 11, Line 1(13)  "Office" means the office of economic development created in section 24-48.5-101.

• Page 11, Line 2(14)  "Program" means the data center development and grid modernization program created in this part 8.

• Page 11, Line 3(15)  "Qualified purchase" means the purchase of:

• (a)  Information technology infrastructure including:

• Page 11, Line 4(I)  Computer equipment and software;

• (II)  Data storage systems; and

• Page 11, Line 5(III)  Network infrastructure;

• Page 11, Line 6(b)  Data center infrastructure and transmission and generation system assets including:

• Page 11, Line 7(I)  Environmental control systems;

• (II)  On-site energy storage systems;

• Page 11, Line 8(III)   On-site renewable and clean energy systems; and

• (IV)  Building materials for data center construction;

• Page 11, Line 9(c)  Mechanical systems; or

• (d)  Other equipment essential to data center operations.

• Page 11, Line 10(16)  "Renewable and clean energy" means electricity generated from:

• Page 11, Line 11(a)  Sources qualifying as eligible energy resources

• Page 11, Line 12pursuant to sections 30-20-1202 (2) and 40-2-124, including but not limited to:

• Page 11, Line 13(I)  Solar;

• (II)  Wind;

• Page 11, Line 14(III)  Geothermal;

• (IV)  Biomass;

• Page 11, Line 15(V)  Hydroelectric;

• (VI)  Recycled energy;

• Page 12, Line 1(VII)  Nuclear energy; and

• Page 12, Line 2(VIII)  Coal mine methane when the commission determines

• Page 12, Line 3it is captured in a manner that conforms with environmental regulations;

• Page 12, Line 4(b)  Other clean energy resources as determined by the commission, including:

• Page 12, Line 5(I)  Green hydrogen; and

• (II)  Other emerging zero-carbon technologies; and

• Page 12, Line 6(c)  Any combination of resources specified in this subsection (16).

• Page 12, Line 7(17)  "Rural" means:

• Page 12, Line 8(a)  A county with a population density of less than one

• Page 12, Line 9hundred persons per square mile according to the most recent federal census; or

• Page 12, Line 10(b)  Any area within a county that is:

• Page 12, Line 11(I)  Located outside of a metropolitan statistical area as defined by the United States office of management and budget;

• Page 12, Line 12(II)  Located at least fifteen miles from the central

• Page 12, Line 13business district of a city with a population of fifty thousand or more; or

• Page 12, Line 14(III)  Designated as an enterprise zone pursuant to section 39-30-103.

• Page 12, Line 1524-48.5-804.  Data center development and grid modernization

• Page 12, Line 16program - creation - administration - agency coordination. (1)  The

• Page 12, Line 17data center development and grid modernization program is

• Page 12, Line 18created in the office to facilitate efficient data center

• Page 13, Line 1development and grid modernization by allowing tax and utility

• Page 13, Line 2benefits to a data center operator that either owns or operates

• Page 13, Line 3a data center project or collects information technology

• Page 13, Line 4equipment within a data center project that obtains base

• Page 13, Line 5certification or enhancement certification pursuant to this part

• Page 13, Line 68. The office shall administer the program and shall coordinate

• Page 13, Line 7and share relevant information with the commission, the energy

• Page 13, Line 8office, and the authority to maximize the effectiveness of the program.

• Page 13, Line 9(2) (a)  The office shall receive and evaluate applications

• Page 13, Line 10that are submitted by data center operators to obtain the following:

• Page 13, Line 11(I)  Base certification for a data center project, which

• Page 13, Line 12allows the data center operator a sales and use tax exemption

• Page 13, Line 13for qualified purchases in connection with the data center

• Page 13, Line 14project pursuant to sections 24-48.5-810 and 39-26-735 and standard utility rate incentives pursuant to section 24-48.5-810;

• Page 13, Line 15(II)  Enhancement certification for a data center project,

• Page 13, Line 16which allows a data center operator to be eligible to claim a

• Page 13, Line 17grid enhancement investment income tax credit pursuant to

• Page 13, Line 18sections 24-48.5-812 and 39-22-571 and enhanced utility benefits pursuant to section 24-48.5-812; and

• Page 13, Line 19(III)  A benefit extension pursuant to section 24-48.5-813

• Page 13, Line 20for a data center project that has obtained base certification or enhancement certification.

• Page 13, Line 21(b)  To obtain base certification or enhancement

• Page 13, Line 22certification for a data center project, or to obtain a benefit

• Page 14, Line 1extension, a data center operator must file a completed application with the office pursuant to section 24-48.5-805.

• Page 14, Line 2(3)  The office shall begin processing applications for

• Page 14, Line 3certification as specified in section 24-48.5-806 within ninety days

• Page 14, Line 4after the effective date of this part 8. The office shall complete

• Page 14, Line 5its review of any application that is submitted on or before

• Page 14, Line 6December 31, 2034, pursuant to the policies, procedures, and guidelines established pursuant to this part 8.

• Page 14, Line 7(4)  If the office approves a data center project for base

• Page 14, Line 8certification or enhancement certification, the office shall use

• Page 14, Line 9the reports that a data center operator is required to submit to

• Page 14, Line 10the office pursuant to sections 24-48.5- 809 (5) and 24-48.5-811 (5)

• Page 14, Line 11to monitor the certified data center to ensure that the certified data center remains in compliance with program requirements.

• Page 14, Line 12(5)  The office shall issue state sales and use tax

• Page 14, Line 13exemption certificates and tax credit certificates required for

• Page 14, Line 14a data center operator that obtains base certification,

• Page 14, Line 15enhancement certification, or a certified data center project

• Page 14, Line 16benefit extension to claim the sales and use tax exemption

• Page 14, Line 17allowed in sections 24-48.5-810 and 39-26-735 and the income tax credits allowed in sections 24-48.5-812 and 39-22-571.

• Page 14, Line 18(6)  In implementing the program, the office shall:

• Page 14, Line 19(a)  Facilitate efficient data center project development

• Page 14, Line 20by establishing clear qualification criteria and a predictable

• Page 14, Line 21application, review, and approval process that is administered consistently; and

• Page 14, Line 22(b)  Support state policy priorities by:

• (I)  Enabling strategic infrastructure investment;

• Page 15, Line 1(II)  Benefiting the broader customer base;

• (III)  Optimizing grid infrastructure use;

• Page 15, Line 2(IV)  Accelerating renewable and clean energy deployment;

• Page 15, Line 3(V)  Creating high-wage employment opportunities;

• (VI)  Generating economic benefits for host communities;

• Page 15, Line 4(VII)  Driving technological innovation; and

• (VIII)  Enhancing environmental sustainability.

• Page 15, Line 5(7)  The office may create and modify policies, procedures,

• Page 15, Line 6and guidelines as necessary to implement the program and the

• Page 15, Line 7tax and other benefits that may be claimed pursuant to this part 8.

• Page 15, Line 824-48.5-805.  Application process - data center operators -

• Page 15, Line 9requirements. (1)  A data center operator seeking certification

• Page 15, Line 10for a data center project pursuant to this part 8 shall submit an

• Page 15, Line 11application to the office, in a form and manner determined by the office, that includes the following:

• Page 15, Line 12(a)  Information about the data center project for which the data center operator is seeking certification including:

• Page 15, Line 13(I)  The identity and qualifications of the data center operator to own or operate a data center;

• Page 15, Line 14(II)  Detailed geographic boundaries of the data center project and a site plan;

• Page 15, Line 15(III)  Evidence of site control or a pathway to site control;

• Page 15, Line 16(IV)  Development timeline and phasing; and

• (V)  Utility load requirements;

• Page 16, Line 1(b)  An infrastructure assessment in connection with the data center project including:

• Page 16, Line 2(I)  The proximity of the data center project to existing and planned transmission capacity;

• Page 16, Line 3(II)  The proximity of the data center project to clean energy resources;

• Page 16, Line 4(III)  Water resource availability and a water resources management plan; and

• Page 16, Line 5(IV)  Transportation and broadband access;

• Page 16, Line 6(c)  Utility documentation in connection with the data center project including:

• Page 16, Line 7(I)  The identity of the utility or utilities that will serve the data center project;

• Page 16, Line 8(II)  An executed interconnection agreement or utility feasibility statement;

• Page 16, Line 9(III)  A grid integration plan;

• Page 16, Line 10(IV)  Identification of necessary grid investments; and

• Page 16, Line 11(V)  Binding commitments for alignment with the host utility's clean energy plan;

• Page 16, Line 12(d)  Investment and employment commitments in connection with the data center project including:

• Page 16, Line 13(I)  A timeline for capital investments in data center

• Page 16, Line 14project construction and equipment reaching a minimum of two hundred fifty million dollars within sixty months;

• Page 16, Line 15(II)  A timeline for capital investments in grid

• Page 16, Line 16enhancement and modernization reaching a minimum of ten million dollars;

• Page 17, Line 1(III)  A job creation plan showing at least twenty-five new

• Page 17, Line 2full-time equivalent positions with compensation of at least one

• Page 17, Line 3hundred ten percent of the county average wage for the county in which the data center project will be located; and

• Page 17, Line 4(IV)  Construction employment projections;

• Page 17, Line 5(e)  An environmental sustainability plan for the data center project that includes:

• Page 17, Line 6(I)  A facility certification commitment, including LEED, Energy Star, Green Globes, ISO 50001, or the equivalent;

• Page 17, Line 7(II)  A water stewardship strategy;

• (III)  A renewable energy procurement plan; and

• Page 17, Line 8(IV)  Energy storage and grid support capabilities;

• Page 17, Line 9(f)  Grid enhancement commitments for the data center project including:

• Page 17, Line 10(I)  An executed agreement with the host utility for planned grid investments;

• Page 17, Line 11(II)  A description of planned grid investments;

• Page 17, Line 12(III)  A timeline for the implementation of the grid enhancement commitments;

• Page 17, Line 13(IV)  Integration with utility planning; and

• (V)  Technologies that will be deployed;

• Page 17, Line 14(g)  Community benefit commitments in connection with the data center project including:

• Page 17, Line 15(I)  Workforce development initiatives;

• (II)  Local supplier development;

• Page 17, Line 16(III)  Technology training centers;

• (IV)  Conservation or open space programs; and

• Page 18, Line 1(V)  Other community investments; and

• Page 18, Line 2(h) Local government documentation in connection with the data center project including:

• Page 18, Line 3(I)  A resolution of support from the local governing body

• Page 18, Line 4that is the permitting entity as required by subsection (3) of this section;

• Page 18, Line 5(II)  A description of applicable local incentives; and

• (III)  The status of local permits and approvals.

• Page 18, Line 6(2) (a)  As part of the application process, a data center operator shall provide to the office an attestation that:

• Page 18, Line 7(I)  Certifies that the data center project would not have

• Page 18, Line 8occurred in the state without the incentives provided in this part 8; and

• Page 18, Line 9(II)  Acknowledges that this attestation may be used for fiscal impact analysis purposes.

• Page 18, Line 10(b)  The office shall keep a record of each attestation submitted pursuant to subsection (2)(a) of this section.

• Page 18, Line 11(3)  A data center operator shall provide to the office, as

• Page 18, Line 12part of the application process, a resolution of support from the

• Page 18, Line 13local government in which the data center will be located that

• Page 18, Line 14is the permitting entity for the data center project. If the data

• Page 18, Line 15center project will be located in an incorporated area, the

• Page 18, Line 16incorporated local government is the permitting entity. If the

• Page 18, Line 17data center project will be located in an unincorporated area, the county is the permitting entity.

• Page 18, Line 1824-48.5-806.  Application review process - opportunity to cure

• Page 19, Line 1application - application approval - revocation of certification.

• Page 19, Line 2(1)  The office shall review all applications submitted pursuant

• Page 19, Line 3to section 24-48.5-805. The office shall determine whether an

• Page 19, Line 4application is complete within fifteen days after the office's

• Page 19, Line 5receipt of the application. Within sixty days of determining that

• Page 19, Line 6an application is complete, the office shall conduct a full application review.

• Page 19, Line 7(2)  If the office determines that an application is deficient,

• Page 19, Line 8the office shall provide written notification to the applicant

• Page 19, Line 9that identifies the specific deficiencies. The office shall allow

• Page 19, Line 10thirty days for the applicant to cure any deficiencies in the

• Page 19, Line 11application and complete a review of the revised application within thirty days after receipt.

• Page 19, Line 12(3)  The office shall approve an application for base or

• Page 19, Line 13enhancement certification for a data center project if it contains all of the following:

• Page 19, Line 14(a)  A complete application that includes all of the components specified in section 24-48.5-805;

• Page 19, Line 15(b)  Attestation as specified in section 24-48.5-805 (2) that

• Page 19, Line 16the data center project would not have occurred in the state without approval for base or enhancement certification; and

• Page 19, Line 17(c)  Documentation of approval from the local

• Page 19, Line 18government in which the data center will be located as specified in section 24-48.5-805 (3).

• Page 19, Line 19(4)  The office may reject an application only on the following grounds:

• Page 19, Line 20(a)  The office finds that the data center operator materially misrepresented facts in the application;

• Page 20, Line 1(b)  The data center operator failed to provide required

• Page 20, Line 2documentation after the office provided an opportunity to cure pursuant to subsection (2) of this section;

• Page 20, Line 3(c)  The office determines that there is a documented

• Page 20, Line 4inability of local infrastructure to support the data center project despite commitments from the data center operator; or

• Page 20, Line 5(d)  The office determines that a clear inconsistency exists

• Page 20, Line 6between the data center project and statutory clean energy requirements.

• Page 20, Line 7(5)  Before rejecting any application that meets the

• Page 20, Line 8minimum investment and job creation thresholds set forth in section 24-48.5-805 (1)(d), the office must:

• Page 20, Line 9(a)  Consult with the energy office, the commission, and the department of natural resources regarding the application;

• Page 20, Line 10(b)  Provide the applicant an opportunity to address the office's concerns; and

• Page 20, Line 11(c)  Explore alternative paths to approval with conditions if possible.

• Page 20, Line 12(6)  The office may revoke certification that it has

• Page 20, Line 13awarded pursuant to this section if the office determines that the data center operator:

• Page 20, Line 14(a)  Has failed to make substantial progress toward

• Page 20, Line 15satisfying the requirements specified in section 24-48.5-805 (1) within two years of designation;

• Page 20, Line 16(b)  Has materially changed the data center project in

• Page 20, Line 17ways that would have prevented automatic certification of the data center project; or

• Page 21, Line 1(c)  Has failed to maintain compliance with the criteria that formed the basis of approval.

• Page 21, Line 224-48.5-807.  Public utilities commission integration.

• Page 21, Line 3(1) (a)  Prior to submitting an application for certification for a data center project, a data center operator shall:

• Page 21, Line 4(I)  Conduct and document a preliminary consultation

• Page 21, Line 5with the utility that will provide electricity for the data

• Page 21, Line 6center project regarding interconnection feasibility, capacity, and infrastructure requirements; and

• Page 21, Line 7(II)  Obtain a written feasibility assessment from the

• Page 21, Line 8utility that will provide electricity for the data center project that includes:

• Page 21, Line 9(A)  Available transmission and distribution capacity;

• (B)  Potential grid constraints;

• Page 21, Line 10(C)  A preliminary timeline for interconnection; and

• Page 21, Line 11(D)  A high-level summary estimating required system upgrades.

• Page 21, Line 12(b)  A data center operator shall include the

• Page 21, Line 13documentation of the consultation and the written feasibility

• Page 21, Line 14assessment obtained pursuant to subsection (1)(a) of this section

• Page 21, Line 15in the data center operator's application to the office submitted pursuant to section 24-48.5-805.

• Page 21, Line 16(2) (a)  Upon receipt of an application for certification of

• Page 21, Line 17a data center project that includes projects requiring commission review, the office shall:

• Page 21, Line 18(I)  Within five business days, notify the commission of the application;

• Page 22, Line 1(II)  Provide relevant portions of the application to the commission for concurrent review; and

• Page 22, Line 2(III)  Establish a joint review timeline that aligns with the

• Page 22, Line 3sixty-day application review period specified in section 24-48.5-806 (1).

• Page 22, Line 4(b)  The commission shall review any application that the

• Page 22, Line 5office provides to the commission pursuant to subsection (2)(a)

• Page 22, Line 6of this section. In its review, the commission shall focus exclusively on:

• Page 22, Line 7(I)  The technical feasibility of the proposed grid connections;

• Page 22, Line 8(II)  System reliability impacts;

• (III)  The appropriate cost allocation; and

• Page 22, Line 9(IV)  Alignment with clean energy requirements.

• Page 22, Line 10(c)  The commission shall provide advisory input to the

• Page 22, Line 11office within forty-five days after receiving notification pursuant to subsection (2)(a)(I) of this section.

• Page 22, Line 12(3) (a)  For a data center project that requires new

• Page 22, Line 13electric generation resources that would require commission

• Page 22, Line 14review, the data center operator and serving utility may jointly

• Page 22, Line 15submit a simplified resource acquisition application to the commission that includes:

• Page 22, Line 16(I)  A description of the proposed generation resources;

• (II)  A timeline for deployment;

• Page 22, Line 17(III)  A cost allocation framework; and

• Page 22, Line 18(IV)  An updated emissions workbook showing the impact of the new load and resources.

• Page 23, Line 1(b)  The commission shall review a simplified resource acquisition application within ninety days after receipt.

• Page 23, Line 2(4) (a)  For a data center project that requires

• Page 23, Line 3transmission or distribution upgrades that would require

• Page 23, Line 4commission review, the data center operator has the following options:

• Page 23, Line 5(I)  A data center operator-funded option under which the

• Page 23, Line 6data center operator fully funds the required infrastructure

• Page 23, Line 7upgrades and the upgrades become assets of the utility system.

• Page 23, Line 8For the data center operator-funded option, the commission's

• Page 23, Line 9review is limited to technical standards and system integration,

• Page 23, Line 10and the commission must review the completed application within forty-five days after receipt.

• Page 23, Line 11(II)  A co-investment option under which the data center

• Page 23, Line 12operator and the utility share the investment cost, and costs

• Page 23, Line 13are allocated based on a system benefits analysis. For the

• Page 23, Line 14co-investment option, the commission reviews only the cost

• Page 23, Line 15allocation methodology, and the commission must review the completed application within sixty days after receipt.

• Page 23, Line 16(III)  A system-funded option under which the utility funds

• Page 23, Line 17infrastructure through traditional ratemaking, and the data

• Page 23, Line 18center operator pays special facilities charges as applicable.

• Page 23, Line 19For the system-funded option, the commission reviews the rate

• Page 23, Line 20impacts and system benefits, and the commission must review the completed application within ninety days after receipt.

• Page 23, Line 21(5)  The data center operator for a data center project

• Page 24, Line 1that requires commission review shall submit a clean energy

• Page 24, Line 2compliance plan to the commission. The commission shall provide

• Page 24, Line 3verification criteria within thirty days after submission of a

• Page 24, Line 4clean energy compliance plan. The data center operator for a

• Page 24, Line 5data center project shall report annual compliance using standardized metrics.

• Page 24, Line 6(6)  The commission shall designate a data center project coordinator who shall:

• Page 24, Line 7(a)  Serve as the primary liaison for data center operators;

• Page 24, Line 8(b)  Coordinate the internal commission review processes;

• Page 24, Line 9(c)  Facilitate communication between data center operators, utilities, and commission staff;

• Page 24, Line 10(d)  Identify potential regulatory issues early in the development process; and

• Page 24, Line 11(e)  Recommend process improvements based on experience.

• Page 24, Line 12(7)  For a data center project located in the service

• Page 24, Line 13territory of a municipally-owned utility, a data center

• Page 24, Line 14operator shall comply with a substantially similar process to

• Page 24, Line 15the process described in subsections (1) to (6) of this section with the municipally-owned utility.

• Page 24, Line 1624-48.5-808.  Targeted resource acquisition for emerging new

• Page 24, Line 17loads. (1)  A certified data center project that necessitates an

• Page 24, Line 18emerging new load is eligible for targeted resource acquisition if the data center operator:

• Page 24, Line 19(a)  Commits to minimum demand and duration

• Page 24, Line 20requirements and to the applicable requirements of this part 8;

• Page 25, Line 1(b)  To allow for revenue recovery, agrees to exit fee parameters, including a three-year structure;

• Page 25, Line 2(c)  Provides appropriate credit securitization; and

• Page 25, Line 3(d)  Demonstrates site control with signed development agreements.

• Page 25, Line 4(2) (a)  A utility that is subject to the jurisdiction of the

• Page 25, Line 5commission and that needs to acquire resources to meet the

• Page 25, Line 6emerging new load for a certified data center project may submit a resource acquisition application to the commission.

• Page 25, Line 7(b)  Prior to filing a resource acquisition application with

• Page 25, Line 8the commission, a utility may conduct competitive solicitations

• Page 25, Line 9to identify potential resources to serve the emerging new load

• Page 25, Line 10with identified resources solicitation responses. A utility may

• Page 25, Line 11include the responses to the solicitations in the resource acquisition application.

• Page 25, Line 12(c) (I)  Except as provided in subsection (2)(c)(II) of this

• Page 25, Line 13section, a utility shall use a competitive process to acquire resources that requires:

• Page 25, Line 14(A)  The utility to work with the operator of the data

• Page 25, Line 15center project necessitating emerging new load to identify grid system assets that the load may fund in whole or in part;

• Page 25, Line 16(B)  That the assets operate for the benefit of all customers; and

• Page 25, Line 17(C)  That the resources have sufficient capacity to meet

• Page 25, Line 18the emerging new load's needs, which capacity may be staggered over time.

• Page 25, Line 19(II)  A utility may use previously identified resources, in

• Page 26, Line 1lieu of a new request for proposals, if the bid for previously

• Page 26, Line 2identified resources was submitted to the commission within the immediately preceeding two years and the bid price is consistent.

• Page 26, Line 3(d) (I)  The utility shall provide the commission with an updated emissions workbook that:

• Page 26, Line 4(A)  Shows both the emerging new load and proposed resources if they are a part of the utility's application;

• Page 26, Line 5(B)  Shows total megawatt hours and greenhouse gas emissions as separate reporting categories; and

• Page 26, Line 6(C)  Reports each emerging new load for the purpose of co-locating emerging new loads to the extent practicable.

• Page 26, Line 7(e)  If the commission approves a utility's resource

• Page 26, Line 8acquisition application, the approval establishes a presumption

• Page 26, Line 9of prudence for all activities undertaken for resource acquisition and necessary infrastructure development.

• Page 26, Line 10(f)  The standard of review of the commission's decision on

• Page 26, Line 11a utility's resource acquisition application is whether the resource acquisition is in the public interest.

• Page 26, Line 12(g)  If the utility identifies specific resources, the utility

• Page 26, Line 13is not required to apply for or obtain a certificate of public convenience and necessity pursuant to section 40-5-102.

• Page 26, Line 14(h)  The commission shall approve, modify, or deny

• Page 26, Line 15applications within one hundred twenty days after filing, with ten-day intervention periods.

• Page 26, Line 16(3) (a)  Utilities may include pre-funding commitments from

• Page 26, Line 17the operator of the data center project necessitating emerging

• Page 26, Line 18new load for pre-development and early construction costs

• Page 27, Line 1associated with resource acquisition or transmission or distribution infrastructure to serve the emerging new load.

• Page 27, Line 2(b) (I)  The costs specified in subsection (3)(a) of this section

• Page 27, Line 3may be absorbed by the operator of the data center project

• Page 27, Line 4necessitating emerging new load, or the utility may propose

• Page 27, Line 5reimbursement of the operator of the data center project

• Page 27, Line 6necessitating emerging new load with adjustment clause recovery if the resources benefit the electric system.

• Page 27, Line 7(II)  The commission shall approve the reimbursement

• Page 27, Line 8recovery if the commission finds that the resources and infrastructure provide a benefit to the electric system.

• Page 27, Line 9(III)  Once commercial operation of the data center begins,

• Page 27, Line 10the utility may recover its costs through appropriate

• Page 27, Line 11adjustment clauses until the costs are rolled into the rate base in a future rate case filing.

• Page 27, Line 12(c) (I)  A utility may establish an advanced energy

• Page 27, Line 13technologies fund that allows operators of data center

• Page 27, Line 14projects necessitating emerging new loads to contribute money

• Page 27, Line 15to the fund ahead of development, to cover pre-development and

• Page 27, Line 16early construction costs. Contributions are not mandatory and

• Page 27, Line 17are intended to ensure the commitment of operators of data

• Page 27, Line 18center projects necessitating emerging new loads coming online and to strengthen the case for approval by the commission.

• Page 27, Line 19(II)  Upon approval of the commission, money shall be used to:

• Page 27, Line 20(A)  Pay for pre-development and early construction

• Page 27, Line 21costs;

• Page 28, Line 1(B)  Support exploration of clean firm dispatchable

• Page 28, Line 2technologies for the benefit of the operator of the data center project necessitating emerging new load; or

• Page 28, Line 3(C)  Provide customer compensation costs borne by the utility for infrastructure if projects do not materialize.

• Page 28, Line 4(III)  In exchange for a contribution to the fund by the

• Page 28, Line 5operator of a data center project necessitating emerging new

• Page 28, Line 6load, the fund may include a provision that the operator of the

• Page 28, Line 7data center project necessitating emerging new load have

• Page 28, Line 8advanced energy technologies located in areas of the system where they can benefit from clean dispatchable power.

• Page 28, Line 9(IV)  The fund may be used to manage and allocate advanced energy technology risk in an appropriate manner.

• Page 28, Line 10(4) (a)  This section operates in coordination with the

• Page 28, Line 11commission integration procedures set forth in section 24-48.5-807.

• Page 28, Line 12(b)  For certified data centers, the utility shall coordinate with the office to ensure consistency.

• Page 28, Line 13(c)  Nothing in this section limits the authority of the commission pursuant to title 40.

• Page 28, Line 1424-48.5-809.  Certified data center project status - base

• Page 28, Line 15certification - application - requirements - qualification. (1)  A data

• Page 28, Line 16center operator may apply to the office pursuant to section

• Page 28, Line 1724-48.5-805 to obtain base certification for a data center

• Page 28, Line 18project. A data center operator must apply to the office for

• Page 28, Line 19base certification before satisfying any of the criteria specified

• Page 28, Line 20in subsection (2) of this section.

• Page 29, Line 1(2)  To qualify for base certification, a data center operator must demonstrate to the office that it commits to:

• Page 29, Line 2(a)  Make a minimum capital investment of two hundred

• Page 29, Line 3fifty million dollars in data center facility construction and

• Page 29, Line 4equipment within sixty months of obtaining base certification from the office as specified in section 24-48.5-805 (1)(d);

• Page 29, Line 5(b)  Create twenty-five new full-time equivalent jobs with

• Page 29, Line 6an average compensation of at least one hundred ten percent of

• Page 29, Line 7the county average wage in the county in which the data center project will be constructed;

• Page 29, Line 8(c)  Implement basic grid support capabilities including:

• (I)  Installation of load management systems; and

• Page 29, Line 9(II)  Coordination with transmission planning efforts;

• Page 29, Line 10(d)  Obtain certification under one of the following

• Page 29, Line 11standards within twenty-four months of the data center project being placed in service:

• Page 29, Line 12(I)  LEED for data centers at silver level or higher;

• (II)  Energy Star certification;

• Page 29, Line 13(III)  Green Globes certification;

• (IV)  ISO 50001 energy management certification;

• Page 29, Line 14(V)  ISO 14001 standard for environmental management systems; or

• Page 29, Line 15(VI)  Other equivalent standards approved by the office;

• Page 29, Line 16(e)  Implement water stewardship strategies that optimize

• Page 29, Line 17operational water management through one or more of the following:

• Page 29, Line 18(I)  Implementation of closed-loop cooling systems;

• Page 30, Line 1(II)  Use of available recycled water sources or water rights previously reserved for retiring thermal power units;

• Page 30, Line 2(III)  Deployment of water-efficient technologies; or

• (IV)  Regular efficiency auditing and improvement;

• Page 30, Line 3(f)  Align with the actual attainment of the clean energy

• Page 30, Line 4plan of the utility that will serve the data center project, if the

• Page 30, Line 5energy is available, through the utility's update to its CEP

• Page 30, Line 6workbook, either submitted to the commission or approved by

• Page 30, Line 7the utility's board, within ten years of the data center project

• Page 30, Line 8being placed in service through one or more of the following or

• Page 30, Line 9other sources designated by the commission or municipal or cooperative board for nonjurisdictional utilities:

• Page 30, Line 10(I)  Collocated renewable and clean energy generation facilities;

• Page 30, Line 11(II)  Direct power purchase agreements with new renewable and clean energy facilities located in Colorado;

• Page 30, Line 12(III)  Enrollment in a utility-administered voluntary green pricing program approved by the commission;

• Page 30, Line 13(IV)  Execution of a power purchase agreement with a

• Page 30, Line 14merchant power producer that sources electricity from

• Page 30, Line 15renewable or clean resources in alignment with the state's clean energy goals;

• Page 30, Line 16(V)  Direct ownership or procurement of behind-the-meter

• Page 30, Line 17renewable or clean energy generation, with verifiable tracking of energy consumption; or

• Page 30, Line 18(VI)  The purchase of renewable energy certificates

• Page 30, Line 19ensuring compliance with the state's renewable energy targets;

• Page 31, Line 1(g)  Support clean energy integration through

• Page 31, Line 2coordination with the utility or the implementation of energy storage solutions that align with facility needs and operations;

• Page 31, Line 3(h)  Break ground on the data center project within sixty months of obtaining base certification; and

• Page 31, Line 4(i)  Commit to satisfying the data center project requirements after certification specified in section 24-48.5-815.

• Page 31, Line 5(3) (a)  Upon receipt of an application for base certification

• Page 31, Line 6from a data center operator, the office shall review the

• Page 31, Line 7application pursuant to section 24-48.5-806. If the office

• Page 31, Line 8approves the data center project for base certification, the

• Page 31, Line 9data center operator becomes eligible, as of the date of

• Page 31, Line 10certification, for the base certification data center project benefits specified in section 24-48.5-810.

• Page 31, Line 11(b)  As part of its application for base certification for a

• Page 31, Line 12data center project, a data center operator may express intent

• Page 31, Line 13to apply for enhancement certification pursuant to section 24-48.5-811.

• Page 31, Line 14(4)  The office shall issue a state sales and use tax

• Page 31, Line 15exemption certificate to a data center operator that has

• Page 31, Line 16obtained base certification for a data center project, as

• Page 31, Line 17evidence that the data center operator is eligible for a one

• Page 31, Line 18hundred percent sales and use tax exemption for qualified

• Page 31, Line 19purchases pursuant to sections 24-48.5-810 and 39-26-735. The

• Page 31, Line 20sales and use tax exemption certificate shall specify that the

• Page 31, Line 21data center operator is entitled to the sales and use tax

• Page 31, Line 22exemption for twenty years, beginning on the date that the

• Page 32, Line 1certificate is issued. A state sales and use tax exemption

• Page 32, Line 2certificate is nontransferable. The office shall certify to the

• Page 32, Line 3department of revenue the name of each data center operator

• Page 32, Line 4that receives a state sales and use tax exemption certificate

• Page 32, Line 5and other relevant information relating to the sales and use tax exemption.

• Page 32, Line 6(5)  A data center operator of a data center project that

• Page 32, Line 7has obtained base certification shall submit an annual

• Page 32, Line 8compliance report to the office, in a form and manner to be

• Page 32, Line 9determined by the office, to verify that the data center

• Page 32, Line 10operator is making timely progress in satisfying the

• Page 32, Line 11requirements of subsection (2) of this section and is on track to

• Page 32, Line 12satisfy the requirements within the periods specified in this

• Page 32, Line 13section. A data center operator shall submit the report

• Page 32, Line 14required in this subsection (5) for as long as the data center

• Page 32, Line 15project maintains base certification. The data center operator

• Page 32, Line 16shall include in the report the total amount of the sales and

• Page 32, Line 17use tax exemption claimed in each year and any other information requested by the office.

• Page 32, Line 18(6)  If the office revokes the base certification pursuant to

• Page 32, Line 19section 24-48.5-806 (6), the data center operator is required to

• Page 32, Line 20pay the entire amount of the sales and use tax on any qualified

• Page 32, Line 21purchase for which the sales and use tax exemption was claimed pursuant to this part 8.

• Page 32, Line 2224-48.5-810.  Base certification benefits - state sales and use tax

• Page 32, Line 23exemption - utility rate incentives. (1) (a)  A data center project

• Page 32, Line 24that has obtained base certification is eligible for a

• Page 33, Line 1one-hundred-percent state sales and use tax exemption on qualified purchases pursuant to section 39-26-735.

• Page 33, Line 2(b)  A data center project that obtains base certification

• Page 33, Line 3and is eligible to claim a state sales and use tax exemption

• Page 33, Line 4pursuant to subsection (1)(a) of this section is eligible for the

• Page 33, Line 5exemption for twenty years from the date that the data center

• Page 33, Line 6project received base certification, so long as the data center project:

• Page 33, Line 7(I)  Maintains the qualifying employment levels specified in section 24-48.5-809 (2)(b);

• Page 33, Line 8(II)  Meets the environmental and grid performance standards specified in section 24-48.5-809 (2)(c) to (2)(g); and

• Page 33, Line 9(III)  Submits annual compliance reports to the office as required in section 24-48.5-809 (5).

• Page 33, Line 10(c)  A data center operator that obtains base certification

• Page 33, Line 11and is eligible to claim the sales and use tax exemption pursuant

• Page 33, Line 12to subsection (1)(a) of this section may apply to the office for a

• Page 33, Line 13benefit extension pursuant to section 24-48.5-813 to be eligible for the sales and use tax exemption for an additional ten years.

• Page 33, Line 14(2)  In addition to the sales and use tax exemption allowed

• Page 33, Line 15pursuant to subsection (1) of this section, a data center

• Page 33, Line 16operator that obtains base certification is eligible for access to

• Page 33, Line 17applicable economic development utility rates, subject to the

• Page 33, Line 18approval of the governing board of any municipal utility or

• Page 33, Line 19cooperative electric association or the commission for an investor-owned utility.

• Page 33, Line 2024-48.5-811.  Certified data center project status -

• Page 34, Line 1enhancement certification - application - requirements - qualification.

• Page 34, Line 2(1)  A data center project that has obtained base certification may apply to the office for enhancement certification.

• Page 34, Line 3(2)  To qualify for enhancement certification, a data center operator must commit to:

• Page 34, Line 4(a)  Investing a minimum of ten million dollars in grid

• Page 34, Line 5enhancement and modernization necessary to meet large-load data center needs in one or a combination of the following:

• Page 34, Line 6(I)  Advanced transmission technologies;

• (II)  Energy storage systems;

• Page 34, Line 7(III)  Smart grid infrastructure; or

• (IV)  Other qualifying investments as defined by the office;

• Page 34, Line 8(b)  Investing in community benefit programs including:

• (I)  Workforce development initiatives;

• Page 34, Line 9(II)  Local supplier development;

• (III)  Technology training centers; or

• Page 34, Line 10(IV)  Conservation or open space programs; and

• Page 34, Line 11(c)  Satisfying the data center project requirements after certification specified in section 24-48.5-815.

• Page 34, Line 12(3) (a)  Upon receipt of an application for enhancement

• Page 34, Line 13certification from a data center operator, the office shall

• Page 34, Line 14review the application pursuant to section 24-48.5-806. If the

• Page 34, Line 15office approves the data center operator for enhancement

• Page 34, Line 16certification, the data center operator becomes eligible, as of

• Page 34, Line 17the date of certification, for the enhancement certification

• Page 34, Line 18data center benefits specified in section 24-48.5-812; except that

• Page 34, Line 19the data center operator is not eligible to claim an income tax

• Page 35, Line 1credit allowed for grid enhancement investments pursuant to

• Page 35, Line 2sections 24-48.5-812 and 39-22-571 until the data center operator

• Page 35, Line 3has made a total investment of at least ten million dollars in

• Page 35, Line 4grid enhancement and modernization pursuant to subsection(2)(a) of this section.

• Page 35, Line 5(b) (I) When a data center operator has made a total

• Page 35, Line 6investment of at least ten million dollars in grid enhancement

• Page 35, Line 7and modernization, the data center operator must submit proof

• Page 35, Line 8of such investment, in a manner to be determined by the office,

• Page 35, Line 9to be eligible to receive a tax credit certificate from the office

• Page 35, Line 10pursuant to subsection (4) of this section. A data center

• Page 35, Line 11operator must submit proof that it made a ten million dollar

• Page 35, Line 12investment in the income tax year in which the investment requirement was satisfied.

• Page 35, Line 13(II)  A data center operator must submit proof of any

• Page 35, Line 14investment in grid enhancement and modernization made in

• Page 35, Line 15addition to the required ten million dollar investment to

• Page 35, Line 16receive a tax credit certificate for the additional investment.

• Page 35, Line 17The data center operator must submit proof to the office of the

• Page 35, Line 18investment in the income tax year in which the investment was made.

• Page 35, Line 19(4) (a)  The office shall issue a tax credit certificate to a

• Page 35, Line 20data center operator that has made a required investment of at

• Page 35, Line 21least ten million dollars in grid enhancement and

• Page 35, Line 22modernization and shall issue a tax credit certificate for any

• Page 35, Line 23additional investment. The tax credit certificate shall state

• Page 35, Line 24the amount of the grid enhancement investment tax credit that

• Page 36, Line 1is authorized pursuant to sections 24-48.5-812 and 39-22-571. A

• Page 36, Line 2tax credit certificate is non transferrable. The office shall

• Page 36, Line 3certify to the department the name of each data center

• Page 36, Line 4operator who receives a tax credit certificate, the amount of

• Page 36, Line 5the tax credit allowed, and any other relevant information regarding the tax credit.

• Page 36, Line 6(b)  To claim a grid enhancement investment tax credit, a

• Page 36, Line 7data center operator must submit a copy of each tax credit

• Page 36, Line 8certificate issued by the office pursuant to subsection (3) of this

• Page 36, Line 9section as part of a tax return to the department of revenue in

• Page 36, Line 10accordance with section 39-22-571 by the due date of the return,

• Page 36, Line 11including extensions, for the tax year during which the

• Page 36, Line 12investment was made, or, in the case of the required ten million

• Page 36, Line 13dollar investment, for the tax year during which the investment requirement was satisfied.

• Page 36, Line 14(5)  A data center operator of a data center project that

• Page 36, Line 15has obtained enhancement certification shall submit an annual

• Page 36, Line 16report to the office, in a form and manner to be determined by

• Page 36, Line 17the office, to verify that the data center operator is in

• Page 36, Line 18compliance with the requirements of subsection (2) of this

• Page 36, Line 19section. A data center operator shall submit the report

• Page 36, Line 20required in this subsection (5) for as long as the data center

• Page 36, Line 21project maintains enhancement certification. The data center

• Page 36, Line 22operator shall include in the report any information requested by the office.

• Page 36, Line 23(6)  If the office revokes the enhancement certification

• Page 36, Line 24pursuant to section 24-48.5-806 (6), the data center operator is

• Page 37, Line 1not qualified for further benefits allowed for a data center project that has obtained enhancement certification.

• Page 37, Line 224-48.5-812.  Enhancement certification benefits - income tax

• Page 37, Line 3credit - enhanced utility benefits. (1)  A data center project that

• Page 37, Line 4obtains enhancement certification is eligible for the following

• Page 37, Line 5benefits in addition to the base certification benefits specified in section 24-48.5-810:

• Page 37, Line 6(a) (I)  A state income tax credit for grid enhancement

• Page 37, Line 7investments in an amount equal to ten percent of the amount of

• Page 37, Line 8the qualifying grid enhancement investment pursuant to section

• Page 37, Line 939-22-571; except that the income tax credit is not allowed until

• Page 37, Line 10a data center operator has made the initial ten-million-dollar investment as specified in section 24-48.5-811 (3); and

• Page 37, Line 11(II)  In addition to the credit allowed pursuant to

• Page 37, Line 12subsection (1)(a)(I) of this section, for grid enhancement

• Page 37, Line 13investments in a rural area, an additional state income tax

• Page 37, Line 14credit in an amount equal to five percent of the amount of the grid investment pursuant to section 39-22-571; and

• Page 37, Line 15(b)  Access to additional utility rate structures and

• Page 37, Line 16compensation for grid enhancements as may be approved by the

• Page 37, Line 17governing board of any municipal utility or cooperative

• Page 37, Line 18electric association or by the commission for an investor-owned utility.

• Page 37, Line 1924-48.5-813.  Benefit extension and modification - duration -

• Page 37, Line 20extension eligibility - extension terms. (1)  A data center operator

• Page 37, Line 21that has obtained base certification or enhancement

• Page 37, Line 22certification for a data center project may apply to the office

• Page 38, Line 1for an extension of the base certification benefits or the

• Page 38, Line 2enhancement certification benefits. To be eligible for a benefit extension, a data center operator must demonstrate that:

• Page 38, Line 3(a)  The certified data center has made additional grid

• Page 38, Line 4enhancement investments in a total amount of at least five million dollars during the initial twenty-year benefit period;

• Page 38, Line 5(b)  The certified data center project has created at least

• Page 38, Line 6ten new qualifying jobs in addition to the jobs that the data

• Page 38, Line 7center operator is required to create pursuant to section 24-48.5-809 (2)(b);

• Page 38, Line 8(c)  The certified data center project continues to comply with environmental requirements; and

• Page 38, Line 9(d)  The certified data center project has satisfied its community benefit commitments pursuant to section 24-48.5-815.

• Page 38, Line 10(2)  A certified data center project that is approved for a benefit extension pursuant to this section is eligible for:

• Page 38, Line 11(a)  An additional ten years of eligibility to claim the

• Page 38, Line 12sales and use tax exemption and the income tax credit allowed pursuant to this part 8; and

• Page 38, Line 13(b)  The ability of the certified data center to maintain the

• Page 38, Line 14requirements of its original base or enhancement-level certification.

• Page 38, Line 1524-48.5-814.  Local government authority and coordination. (1)

• Page 38, Line 16This part 8 does not limit local government authority regarding

• Page 38, Line 17property tax incentives, land use decisions, development

• Page 38, Line 18agreements, local permits and approvals, or restriction of

• Page 38, Line 19additional local incentives including utility incentives in the

• Page 39, Line 1case of a municipally-owned utility. This part 8 also does not require local governments to participate in the program.

• Page 39, Line 2(2)  The office may establish procedures for coordinating

• Page 39, Line 3with local governments regarding data center project review,

• Page 39, Line 4infrastructure planning, environmental compliance, the

• Page 39, Line 5provision of technical assistance, and the facilitation of information sharing between jurisdictions.

• Page 39, Line 624-48.5-815.  Data center project requirements after

• Page 39, Line 7certification - community benefit requirements - workforce

• Page 39, Line 8development - economic development integration. (1)  A data center

• Page 39, Line 9project that has obtained base certification or enhancement

• Page 39, Line 10certification shall participate in at least one state workforce development program, including:

• Page 39, Line 11(a)  Partnerships with local educational institutions including:

• Page 39, Line 12(I)  Technical training programs;

• (II)  Apprenticeship initiatives;

• Page 39, Line 13(III)  Career pathway development; and

• Page 39, Line 14(IV)  Science, technology, engineering, and math (STEM) education support; and

• Page 39, Line 15(b)  Local workforce initiatives including:

• (I)  Job training programs;

• Page 39, Line 16(II)  Skills development workshops;

• (III)  Professional certification support; and

• Page 39, Line 17(IV)  Career advancement opportunities.

• Page 39, Line 18(2)  A data center project that has obtained base

• Page 39, Line 19certification or enhancement certification shall participate in economic development integration by:

• Page 40, Line 1(a)  Participating in regional economic planning;

• (b)  Supporting supply chain development;

• Page 40, Line 2(c)  Enabling technology cluster formation; and

• (d)  Fostering innovation ecosystem growth.

• Page 40, Line 324-48.5-816.  Preservation of existing data center project

• Page 40, Line 4certification. (1)  A data center project that is certified prior to

• Page 40, Line 5January 1, 2035, is required to comply with the following requirements to maintain its certification:

• Page 40, Line 6(a)  Maintain all commitments through its twenty-year benefit period;

• Page 40, Line 7(b)  Retain eligibility for extensions pursuant to section 24-48.5-810;

• Page 40, Line 8(c)  Continue compliance obligations; and

• Page 40, Line 9(d)  Submit the performance reports required in sections 24-48.5-809 (5) and 24-48.5-811 (5).

• Page 40, Line 1024-48.5-817.  Program cost recovery. (1) (a)  To recover the

• Page 40, Line 11direct costs of establishing and implementing the program, the office may:

• Page 40, Line 12(I)  Establish and collect a nonrefundable application fee

• Page 40, Line 13not to exceed ten thousand dollars for each application for

• Page 40, Line 14base certification or enhancement certification submitted pursuant to this part 8; and

• Page 40, Line 15(II)  Establish and collect a nonrefundable certification

• Page 40, Line 16fee not to exceed twenty thousand dollars for each base

• Page 40, Line 17certification or enhancement certification awarded pursuant

• Page 40, Line 18to this part 8.

• Page 41, Line 1(b)  The office shall deposit all fees collected pursuant to

• Page 41, Line 2subsection (1)(a) of this section into the Colorado economic development fund created in section 24-46-105.

• Page 41, Line 3(2) (a)  To recover the direct costs of establishing and implementing the program, the commission may:

• Page 41, Line 4(I)  Establish and collect a nonrefundable review fee not

• Page 41, Line 5to exceed twenty-five thousand dollars for each data center

• Page 41, Line 6project application that requires commission review pursuant to section 24-48.5-807; and

• Page 41, Line 7(II)  Establish and collect additional reasonable fees to

• Page 41, Line 8recover the direct costs of reviewing any simplified resource

• Page 41, Line 9acquisition application submitted pursuant to section 24-48.5-807

• Page 41, Line 10(3) or any transmission or distribution upgrade application submitted pursuant to section 24-48.5-807 (4).

• Page 41, Line 11(b)  The commission shall deposit all fees collected

• Page 41, Line 12pursuant to subsection (2)(a) of this section into the public

• Page 41, Line 13utilities commission fixed utility fund created in section 40-2-114.

• Page 41, Line 14(3)  The office and the commission shall:

• Page 41, Line 15(a)  Set the amount of any fees established pursuant to

• Page 41, Line 16subsection (1) or (2) of this section at the minimum amount

• Page 41, Line 17necessary to offset the direct costs of implementing their respective responsibilities under this part 8; and

• Page 41, Line 18(b)  Review the fees annually and adjust the amounts as

• Page 41, Line 19necessary to ensure that the fees do not exceed the direct costs of implementation.

• Page 41, Line 20(4)  The office and the commission shall not charge the

• Page 42, Line 1fees established pursuant to this section to any data center

• Page 42, Line 2operator after December 31, 2027, or set the fees at an amount that would discourage participation in the program.

• Page 42, Line 324-48.5-818.  Implementation within existing resources.

• Page 42, Line 4(1)  Except as otherwise provided in section 24-48.5-817, the office

• Page 42, Line 5shall implement this part 8 using existing appropriations and personnel.

• Page 42, Line 6(2)  Except as otherwise provided in section 24-48.5-817, the

• Page 42, Line 7commission and the energy office shall implement their

• Page 42, Line 8responsibilities under this part 8 using existing appropriations and personnel.

• Page 42, Line 9(3)  The authority shall implement its responsibilities under this part 8 using its existing funding and personnel.

• Page 42, Line 10(4)  The office may:

• Page 42, Line 11(a)  Establish reasonable application and certification fees to offset the direct costs of program administration;

• Page 42, Line 12(b)  Structure the application review processes to efficiently use existing resources; and

• Page 42, Line 13(c)  Coordinate with other state agencies to leverage existing technical expertise.

• Page 42, Line 14SECTION 2.  In Colorado Revised Statutes, add 39-22-571 as follows:

• Page 42, Line 1539-22-571.  Certified data center projects - grid enhancement

• Page 42, Line 16investments - tax credit - tax preference performance statement -

• Page 42, Line 17legislative declaration - definitions - repeal. (1) (a)  In accordance

• Page 42, Line 18with section 39-21-304 (1), which requires each bill that creates

• Page 42, Line 19a new tax expenditure to include a tax preference performance

• Page 43, Line 1statement as part of a statutory legislative declaration, the

• Page 43, Line 2general assembly finds and declares that the purposes of the tax expenditure created in subsection (3) of this section are to:

• Page 43, Line 3(I)  Improve industry competitiveness, specifically in data

• Page 43, Line 4center project development and electric grid modernization; and

• Page 43, Line 5(II)  Provide tax relief for certain businesses, specifically

• Page 43, Line 6data center operators that own or operate a certified data center project in the state.

• Page 43, Line 7(b)  The general assembly and the state auditor shall

• Page 43, Line 8measure the effectiveness of the tax expenditure in achieving

• Page 43, Line 9the purposes specified in subsection (1)(a) of this section based on

• Page 43, Line 10the number of certified data center projects that are

• Page 43, Line 11constructed and placed in service in the state and the number

• Page 43, Line 12and value of credits claimed pursuant to this section. The

• Page 43, Line 13Colorado office of economic development shall provide the

• Page 43, Line 14state auditor with any available information that would assist the state auditor's analysis.

• Page 43, Line 15(2)  As used in this section, unless the context otherwise requires:

• Page 43, Line 16(a)  "Certified data center project" means a data center

• Page 43, Line 17project that has obtained enhancement certification status

• Page 43, Line 18from the Colorado office of economic development pursuant to part 8 of article 48.5 of title 24.

• Page 43, Line 19(b)  "Grid enhancement investment" has the same meaning as set forth in section 24-48.5-803 (12).

• Page 43, Line 20(c)  "Grid enhancement investment tax credit" means the credit against income tax created in this section.

• Page 44, Line 1(d)  "Tax credit certificate" means a tax credit certificate

• Page 44, Line 2issued to a data center operator pursuant to section 24-48.5-809 (4).

• Page 44, Line 3(e)  "Taxpayer" means a data center operator as defined in section 24-48.5-803 (6).

• Page 44, Line 4(3)  For income tax years commencing on or after January

• Page 44, Line 51, 2026, a taxpayer that makes a grid enhancement investment in

• Page 44, Line 6connection with a certified data center project is allowed a

• Page 44, Line 7credit against the income taxes imposed by this article 22 in an

• Page 44, Line 8amount specified by the tax credit certificate issued by the

• Page 44, Line 9office of economic development pursuant to part 8 of article 48.5 of title 24.

• Page 44, Line 10(4)  To claim the grid enhancement investment tax credit,

• Page 44, Line 11a taxpayer shall attach to the taxpayer's tax return a copy of

• Page 44, Line 12the tax credit certificate. A tax credit pursuant to this section

• Page 44, Line 13is not allowed unless the taxpayer provides a copy of the tax credit certificate.

• Page 44, Line 14(5)  If the allowable grid enhancement investment tax

• Page 44, Line 15credit exceeds the amount of income tax due on the income of

• Page 44, Line 16the taxpayer for the tax year during which the investment was

• Page 44, Line 17made, the amount of the tax credit not used as an offset against

• Page 44, Line 18income taxes in such income tax year is not allowed as a refund.

• Page 44, Line 19The taxpayer may carry forward and apply the unused credit

• Page 44, Line 20against the income tax due in each of the five succeeding income

• Page 44, Line 21tax years, but the taxpayer shall apply the credit against the

• Page 44, Line 22income tax due for the earliest of the income tax years possible.

• Page 45, Line 1Any amount of the tax credit that is not used after this period is not refundable.

• Page 45, Line 2(6)  Notwithstanding section 39-21-304 (4), the credit allowed pursuant to this section continues indefinitely.

• Page 45, Line 3SECTION 3.  In Colorado Revised Statutes, add 39-26-735 as follows:

• Page 45, Line 439-26-735.  Certified data center projects - qualified purchases

• Page 45, Line 5- information technology infrastructure - data center infrastructure

• Page 45, Line 6- electric grid enhancement equipment - tax preference performance

• Page 45, Line 7statement - legislative declaration - definitions - repeal. (1) (a)  In

• Page 45, Line 8accordance with section 39-21-304 (1), which requires each bill

• Page 45, Line 9that creates a new tax expenditure to include a tax preference

• Page 45, Line 10performance statement as part of a statutory legislative

• Page 45, Line 11declaration, the general assembly finds and declares that the

• Page 45, Line 12purposes of the tax expenditure created in subsection (3) of this section are to:

• Page 45, Line 13(I)  Improve industry competitiveness, specifically in data

• Page 45, Line 14center project development and electric grid modernization; and

• Page 45, Line 15(II)  Provide tax relief to certain businesses, specifically

• Page 45, Line 16data center project operators that own or operate a certified data center project in the state.

• Page 45, Line 17(b)  The general assembly and the state auditor shall

• Page 45, Line 18measure the effectiveness of the tax expenditure in achieving

• Page 45, Line 19the purposes specified in subsection (1)(a) of this section based on

• Page 45, Line 20the number of certified data center projects that are

• Page 45, Line 21constructed and placed in service in the state and the number

• Page 46, Line 1and value of the exemptions claimed pursuant to this section.

• Page 46, Line 2The Colorado office of economic development shall provide the

• Page 46, Line 3state auditor with any available information that would assist the state auditor's analysis.

• Page 46, Line 4(2)  As used in this section, unless the context otherwise requires:

• Page 46, Line 5(a)  "Certified data center project" means a data center

• Page 46, Line 6project that has obtained either base certification or

• Page 46, Line 7enhancement certification status from the Colorado office of

• Page 46, Line 8economic development pursuant to part 8 of article 48.5 of title 24.

• Page 46, Line 9(b)  "State sales and use tax exemption certificate" means

• Page 46, Line 10a certificate issued by the Colorado office of economic

• Page 46, Line 11development to a certified data center pursuant to part 8 of article 48.5 of title 24.

• Page 46, Line 12(3)  Beginning January 1, 2026, all sales, storage, and use

• Page 46, Line 13of information technology infrastructure, data center

• Page 46, Line 14infrastructure, mechanical systems, or other equipment

• Page 46, Line 15essential to data center operations as described in section

• Page 46, Line 1624-48.5-803 (15) that will be used in connection with a certified

• Page 46, Line 17data center project that has a state sales and use tax exemption

• Page 46, Line 18certificate is exempt from taxation under parts 1 and 2 of this article 26.

• Page 46, Line 19(4)  Notwithstanding section 39-21-304 (4), the exemption allowed pursuant to this section continues indefinitely.

• Page 46, Line 20SECTION 4.  Applicability. This act applies to data center

• Page 46, Line 21projects for which building commences on or after the effective date of this act.

• Page 47, Line 1SECTION 5.  Safety clause. The general assembly finds,

• Page 47, Line 2determines, and declares that this act is necessary for the immediate

• Page 47, Line 3preservation of the public peace, health, or safety or for appropriations for

• Page 47, Line 4the support and maintenance of the departments of the state and state institutions.