Second Regular Session Seventy-third General Assembly ...

1 Second Regular SessionSeventy-third General AssemblySTATE OF COLORADOINTRODUCED LLS NO. Jennifer Berman x3286 SENATE BILL 22-138 Senate CommitteesHouse CommitteesTransportation & EnergyA BILL FOR AN ACTCONCERNING MEASURES TO PROMOTE REDUCTIONS IN GREENHOUSE101 GAS EMISSIONS IN Summary(Note: This summary applies to this bill as introduced and doesnot reflect any amendments that may be subsequently adopted. If this billpasses third reading in the house of introduction, a bill summary thatapplies to the reengrossed version of this bill will be available )Section 1 of the bill requires each insurance company issued acertificate of authority to transact insurance business to prepare and filean annual report with the insurance commissioner providing aclimate-risk assessment for the insurance company's investment portfoliofrom the previous 12 months.

2 The commissioner of insurance is requiredto post the reports on the division of insurance's website. Section 1 SENATE SPONSORSHIPH ansen, HOUSE SPONSORSHIPV aldez A., Shading denotes HOUSE amendment. Double underlining denotes SENATE letters or bold & italic numbers indicate new material to be added to existing through the words indicate deletions from existing "climate-risk assessment" as a determination of the economic andbusiness risks that climate change poses to an 2 requires the board of trustees of the public employees'retirement association (PERA board) to prepare a similar annual reportand post it on the PERA board's 3 updates the statewide greenhouse gas (GHG)

3 Emissionreduction goals to add a 40% reduction goal for 2028 compared to 2005 GHG pollution levels and a 75% reduction goal for 2040 compared to2005 GHG pollution 4 defines a small off-road engine as a gasoline-poweredengine of 50 horsepower or less used to fuel small off-road equipmentlike lawn mowers and leaf blowers. Section 4 phases out the use of smalloff-road engines by prohibiting their sale in nonattainment areas of thestate on or after January 1, 2030, and by providing financial incentives topromote the replacement of small off-road engines with electric-powered,small off-road equipment before 11 establishes a state income tax credit in an amount equalto 30% of the purchase price for new, electric-powered, small off-roadequipment for purchases made in income tax years 2023 through 6 gives the oil and gas conservation commission authorityover class VI injection wells used for sequestration of GHG.

4 Includingthrough the issuance and enforcement of 7 requires the commissioner of agriculture or thecommissioner's designee, in consultation with the Colorado energy officeand the air quality control commission, to conduct a study examiningcarbon reduction and sequestration opportunities in the agricultural sectorin the state, including the potential development of certified carbon offsetprograms or credit instruments. On or before December 15, 2022, thecommissioner of agriculture or the commissioner's designee is requiredto submit a report summarizing the study, including any legislativerecommendations, to the General support of the use of agrivoltaics, which is the colocation ofsolar energy generation facilities on a parcel of land with agriculturalactivities, section 8 authorizes the Colorado agriculture value-addeddevelopment board (board) to provide financing, including grants orloans, for agricultural research on the use of agrivoltaics.

5 For a researchproject for which the board awards money to study the use of agrivoltaics,sections 5 and 8 require the director of the division of parks and wildlifeto consult on the research project regarding the wildlife impacts ofagrivoltaic 9 authorizes the board to seek, accept, and expend gifts,grants, and donations, including donations of in-kind resources such assolar panels, for use in agricultural research projects. Section 9 alsoupdates the statutory definition of "agrivoltaics" to list additionalagricultural activities on the parcel of land on which solar panelSB22-138-2-generation facilities may be colocated, including animal husbandry, covercropping for soil health, and carbon 10 amends the statutory definition of "solar energyfacility" used in determining the valuation of public utilities for propertytax purposes to include it enacted by the General Assembly of the State of Colorado:1 SECTION 1.

6 In Colorado Revised Statutes, add 10-3-244 as2follows:310-3-244. Investment climate-risk assessment - reporting -4definition. (1) ON OR BEFORE JANUARY 1, 2024, AND ON OR BEFORE5 JANUARY 1 OF EACH YEAR THEREAFTER, AN INSURANCE COMPANY ISSUED6A CERTIFICATE OF AUTHORITY TO TRANSACT INSURANCE BUSINESS7 PURSUANT TO PART 1 OF THIS ARTICLE 3 SHALL PREPARE AND FILE WITH8 THE COMMISSIONER A FINANCIAL REPORT PROVIDING A CLIMATE-RISK9 ASSESSMENT REGARDING ITS INVESTMENT PORTFOLIO. THE COMMISSIONER10 SHALL POST REPORTS RECEIVED PURSUANT TO THIS SUBSECTION (1) ON11 THE DIVISION'S (2) THE COMMISSIONER MAY COLLABORATE WITH OTHER STATE13 AGENCIES, INCLUDING THE DEPARTMENT OF PUBLIC HEALTH AND14 ENVIRONMENT, AND WITH NONPROFIT ENVIRONMENTAL ORGANIZATIONS15TO DEVELOP GUIDANCE FOR AUTHORIZED INSURANCE COMPANIES ON16 PERFORMING CLIMATE-RISK ASSESSMENTS.

7 IF THE COMMISSIONER17 DEVELOPS GUIDANCE, THE COMMISSIONER SHALL POST THE GUIDANCE ON18 THE DIVISION'S (3) AS USED IN THIS SECTION, "CLIMATE-RISK ASSESSMENT" MEANS20A DETERMINATION OF THE ECONOMIC AND BUSINESS RISKS THAT CLIMATE21 CHANGE POSES TO AN INVESTMENT. SUCH RISKS INCLUDE22 TRANSPORTATION AND SUPPLY DISRUPTIONS, LABOR SHORTAGES, AND23SB22-138-3-INFRASTRUCTURE DAMAGE ARISING FROM SEVERE WEATHER EVENTS;1 INCREASED COSTS ASSOCIATED WITH COMPETITION FOR DEPLETING2 NONRENEWABLE RESOURCES; AND LOSS OF PRODUCTIVITY ARISING FROM3 EXTREME TEMPERATURES, VECTOR-BORNE DISEASES, AND OTHER HEALTH4 IMPACTS OF CLIMATE 2. In Colorado Revised Statutes, 24-51-206, add (4)6as follows:724-51-206.

8 Investments - investment climate-risk assessment8- definition. (4) (a) ON OR BEFORE JANUARY 1, 2024, AND ON OR BEFORE9 JANUARY 1 OF EACH YEAR THEREAFTER, THE BOARD SHALL PREPARE A10 FINANCIAL REPORT PROVIDING A CLIMATE-RISK ASSESSMENT REGARDING11 ITS INVESTMENT PORTFOLIO. THE BOARD SHALL POST EACH REPORT ON (b) AS USED IN THIS SECTION, "CLIMATE-RISK ASSESSMENT" HAS14 THE MEANING SET FORTH IN SECTION 10-3-244 (3).15 SECTION 3. In Colorado Revised Statutes, 25-7-102, amend16(2)(g) as follows:1725-7-102. Legislative declaration. (2) It is further declared that:18(g) (I) Accordingly, Colorado shall strive to increase renewable19energy generation and eliminate statewide greenhouse gas pollution by20the middle of the twenty-first century and have goals of achieving, at a21minimum:22(A) A twenty-six percent reduction in statewide greenhouse gas23pollution by 2025;24(B) A FORTY PERCENT REDUCTION IN STATEWIDE GREENHOUSE25 GAS POLLUTION BY 2028;26(C) A fifty percent reduction in statewide greenhouse gas27SB22-138-4-pollution by 2030;1(D) A SEVENTY-FIVE PERCENT REDUCTION IN STATEWIDE2 GREENHOUSE GAS POLLUTION BY 2040.

9 And3(E) A ninety percent reduction in statewide greenhouse gas4pollution by (II) The reductions identified in this subsection (2)(g) are6measured relative to 2005 statewide greenhouse gas pollution 4. In Colorado Revised Statutes, add 25-7-143 as8follows:925-7-143. Prohibit emissions from small off-road engines -10rebates and incentives - legislative declaration - definitions - rules -11repeal. (1) THE General Assembly FINDS AND DECLARES THAT:12(a) SMALL OFF-ROAD ENGINES USED PRIMARILY IN LAWN AND13 GARDEN EQUIPMENT, SUCH AS LAWN MOWERS, LEAF BLOWERS, HEDGE14 TRIMMERS, AND CHAINSAWS, EMIT HIGH LEVELS OF AIR POLLUTANTS,15 INCLUDING OXIDES OF NITROGEN AND REACTIVE ORGANIC GASES THAT,16 TOGETHER, FORM OZONE, AND PARTICULATE MATTER;17(b) CURRENTLY, THERE ARE BATTERY-POWERED, ZERO-EMISSIONS18 ALTERNATIVES FOR SMALL OFF-ROAD EQUIPMENT, INCLUDING FOR19 COMMERCIAL-GRADE EQUIPMENT.

10 20(c) ELECTRIFYING SMALL OFF-ROAD EQUIPMENT CAN REDUCE21 OZONE POLLUTION BY AS MUCH AS FOUR PARTS PER BILLION, WHICH22 COULD HELP NONATTAINMENT AREAS REACH ATTAINMENT STATUS; AND23(d) THE STATE SHOULD IMPLEMENT MEASURES TO ACHIEVE ONE24 HUNDRED PERCENT ZERO EMISSIONS FROM SMALL OFF-ROAD EQUIPMENT,25 INCLUDING PROHIBITING THE SALE OF NEW, SMALL OFF-ROAD ENGINES IN26 NONATTAINMENT AREAS AND DEVELOPING A REBATE PROGRAM AND27SB22-138-5-OTHER FINANCIAL INCENTIVES TO ENCOURAGE THE VOLUNTARY PHASING1 OUT OF SMALL OFF-ROAD (2) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE3 REQUIRES:4(a) "NONATTAINMENT AREA" MEANS AN AREA OF THE STATE THAT5IS SUBJECT TO PART D OF THE FEDERAL (b) "SMALL OFF-ROAD ENGINE" MEANS A GASOLINE-POWERED7 ENGINE OF FIFTY HORSEPOWER OR LESS THAT IS USED TO FUEL SMALL8 OFF-ROAD (c) "SMALL OFF-ROAD EQUIPMENT" MEANS:10(I) A LAWN MOWER, LEAF BLOWER, OR OTHER LAWN OR GARDEN11 EQUIPMENT AS DETERMINED BY THE COMMISSION BY RULE.