2020 Colorado Revised Statutes
Title 40 - Utilities
Article 2. Public Utilities Commission - Renewable Energy Standard
Section 40-2-123. New energy technologies - consideration by commission - incentives definitions - legislative declaration.

(1) (a) The commission shall give the fullest possible consideration to the cost-effective implementation of new clean energy and energy-efficient technologies in its consideration of generation acquisitions for electric utilities, bearing in mind the beneficial contributions such technologies make to Colorado's energy security, economic prosperity, insulation from fuel price increases, and environmental protection, including risk mitigation in areas of high wildfire risk as designated by the state forest service. The commission shall consider utility investments in energy efficiency to be an acceptable use of ratepayer moneys.

2. The commission may give consideration to the likelihood of new environmental regulation and the risk of higher future costs associated with the emission of greenhouse gases such as carbon dioxide when it considers utility proposals to acquire resources. Where utilities eliminate or reduce carbon dioxide emissions through the use of capture and sequestration, the commission may consider the benefits of using carbon dioxide for enhanced oil recovery or other uses.

3. The commission shall give the fullest possible consideration to proposals under thereenergize Colorado program, created in section 24-33-115, C.R.S., with particular attention to those projects offering the prospect of job creation and local economic growth.

2. Repealed.

3. (a) (I) Energy is critically important to Colorado's welfare and development and its use has a profound impact on the economy and environment. In order to diversify Colorado's energy resources, attract new businesses and jobs, promote development of rural economies, minimize water use for electric generation, reduce the impact of volatile fuel prices, and improve the natural environment of the state, the general assembly finds it in the best interests of the citizens of Colorado to develop and utilize solar energy resources in increasing amounts.

(II) For purposes of this subsection (3), "utility-scale" means projects with nameplate ratings in excess of two megawatts.

(b) The commission may consider whether acquisition of utility-scale solar resources is in the public interest, taking into account the associated costs and benefits, and, if so, the appropriate amount of utility-scale solar resources that should be acquired. In making this determination, the commission may consider the following potential attributes of utility-scale solar electric generation:

1. Whether the proposed generation could provide energy storage to match the timesduring which utility generation is generally higher cost;

2. Whether the proposed generation, due to modularity, scalability, and rapid deployment, could result in reduction of performance and financial risk for the utility;

3. Whether utility-scale solar electric generation could reduce the consumption of water for electric generation;

4. Whether future costs can be stabilized through mitigation of the impact of unpredictable fossil fuel prices; and

5. Whether carbon-free generation reduces long-term costs and risks related to potential carbon regulation or taxation.

(3.2) In its consideration of generation acquisitions for electric utilities, the commission may give the fullest possible consideration, at a utility's request, to the cost-effective implementation of new energy technologies for the generation of electricity from:

1. Geothermal energy;

2. The combustion of biomass, biosolids derived from the treatment of wastewater, andmunicipal solid waste. For purposes of this paragraph (b), "biomass" has the meaning established in section 40-2-124 (1)(a), as clarified by the commission.

3. Hydroelectricity and pumped hydroelectricity, taking into account the associated costs and benefits. For purposes of this paragraph (c):

(I) "Hydroelectricity" means the generation and delivery to the interconnection meter of any source of electrical or mechanical energy by harnessing the kinetic energy of water that is:

1. A new facility that is an addition to water infrastructure such as a reservoir, ditch, orpipeline that existed before January 1, 2011, and does not result in any change in the quantity or timing of diversions or releases for purposes of peak power generation; or

2. A new facility that is placed into production as part of new water infrastructure suchas a reservoir, ditch, or pipeline constructed on or after January 1, 2011, and operated for primary beneficial uses of water other than solely for production of electricity.

(II) "Pumped hydroelectricity" means electricity that is generated during periods of high electrical demand from water that has been pumped during periods of low electrical demand from a lower-elevation reservoir to a higher-elevation reservoir taking into account the potential benefits or impacts of the proposed facility on fishery health.

(3.3) In its consideration of generation acquisitions for electric utilities, the commission may give the fullest possible consideration to the cost-effective implementation of new energy technologies for the generation of electricity from methane produced biogenically in geologic strata as a result of human intervention.

(3.5) Repealed.

(4) This section does not expand or contract the commission's jurisdiction over cooperative electric associations under this title.

Source: L. 2001: Entire section added, p. 1524, § 4, effective August 8. L. 2006: Entire section amended, p. 1413, § 2, effective June 1. L. 2008: (2)(j) amended, p. 75, § 16, effective March 18; (1) amended and (3) and (4) added, p. 1686, § 1, effective June 2. L. 2009: (3.5) added, (SB 09-297), ch. 285, p. 1297, § 3, effective May 20. L. 2010: (1)(c) added, (HB 101349), ch. 387, p. 1816, § 4, effective June 8; (3.2) added, (SB 10-174), ch. 189, p. 815, § 11, effective August 11; (3.2) added, (SB 10-177), ch. 392, p. 1864, § 6, effective August 11; (3.3) added, ch. 389, p. 1825, § 1, effective August 11. L. 2011: (3.2)(c) added, (HB 11-1083), ch. 68, p. 179, § 1, effective August 10. L. 2012: (2)(j) amended, (HB 12-1315), ch. 224, p. 980, § 48, effective July 1. L. 2013: (1)(a) amended, (SB 13-273), ch. 406, p. 2375, § 6, effective June 5. L. 2017: (2)(k) repealed, (SB 17-294), ch. 264, p. 1415, § 110, effective May 25. L. 2019: (2) repealed, (SB 19-236), ch. 359, p. 3291, § 3, effective May 30.

Editor's note: (1) Amendments to subsection (3.2) by Senate Bill 10-174 and Senate Bill 10-177 were harmonized.

(2) Subsection (3.5)(e) provided for the repeal of subsection (3.5), effective July 1, 2013. (See L. 2009, p. 1297.)

Cross references: For the legislative declaration contained in the 2006 act amending this section, see section 1 of chapter 300, Session Laws of Colorado 2006.