2024 Legislative Session Report

2024 COLORADO LEGISLATIVE SESSION REPORT

An overview of CREA’s legislative work

By Tim Coleman, Director of Government Relations

May 2024

COLORADO RURAL ELECTRIC ASSOCIATION

2024 SESSION AT A GLANCE

Highlights of CREA’s legislative work

monitored position 8 supported position 7 amended position 7 opposed position

✓  Elimination of “public interest” considerations in consumer protection laws

✓  Consideration of labor standards for broadband grants

✓  Clean energy plan updates and emissions limitations

✓  Excluded utility vehicles from operational and mileage limitations

✓  Excluded cooperatives from PUC jurisdiction on distribution system planning rules

✓  Excluded cooperative broadband equipment from costly replacement mandates

✓  Lineworker appreciation tribute

✓  Disaster recovery support

✓  Wildfire mitigation support

✓  Streamlining EV charge station permitting

✓  One-on-one lobbying and meetings with legislators

✓  Testimony before legislative committees

✓  Forms alliances with stakeholders and other utilities

✓  Hosts events to focus on co-op interests

✓  Prepares and distributes white papers

2024 COLORADO LEGISLATIVE SESSION SUMMARY

The Second Regular Session of the Seventy-fourth General Assembly adjourned on Wednesday, May 8, concluding the 120-day legislative session. During the session, 704 bills were introduced, a significant increase from the last legislative session. This document is intended to provide a summary of CREA’s efforts during the legislative session, including detailed information about bills that CREA opposed, worked to amend, or that may have an impact on CREA member cooperatives.

The session presented many challenges, as Democrats maintained a supermajority in the House and nearly a supermajority in the Senate. In addition, breakdowns in civility resulted in the early resignations of a handful of legislators and made collaboration difficult at times. CREA was able to overcome these obstacles by continuing its efforts to cultivate relationships with legislators on both sides of the political aisle who are responsive to cooperative interests and forming alliances with other stakeholders and interested parties. In addition, CREA participated in and hosted numerous events that brought diverse viewpoints together to hear the cooperative message, such as CREA’s well-attended legislative reception. As a result of these efforts, Colorado’s electric cooperatives came through the legislative session unaffected by new laws.

CREA’s staff vigorously lobbied individual legislators and provided testimony in committees of reference on high profile bills, including HB24-1014-Deceptive Trade Practice Significant Impact Standard and SB24-151- Telecommunication Security.

CREA sought substantial amendments on seven bills and were successful in achieving all seven of those amendments. Among other things, these amendments excluded cooperative fleets from mileage and operational limitations which would have impaired the ability to perform maintenance when and where needed, and excluded cooperative broadband equipment from costly and unnecessary replacement requirements.

Although CREA generally seeks to amend unfavorable legislation to find a “win-win” proposition, in some instances a compromise cannot be reached, and CREA must take an “oppose” position. CREA took an opposed position on seven bills in the last session, and worked with stakeholders such as the Colorado Chamber of

Commerce and Colorado Association of Municipal Utilities to defeat those bills. All seven were postponed indefinitely, including a bill that would have exposed cooperatives to unprecedented liability under the Colorado Consumer Protection Act.

While CREA typically does not run bills of its own, CREA worked with a group of electric utilities including Black Hills Energy, CORE, Colorado Springs Utilities, and others on a House tribute to honor Colorado Electrical Lineworker Appreciation Day on April 18 of each year. While largely symbolic, this provided an opportunity for members of the legislature to meet and show their appreciation to many of the lineworkers who are responsible for keeping the lights on in our state, regardless of the challenges they confront. CREA also worked to support many important pieces of legislation that benefit cooperatives and the consumer-members they serve, including support for disaster recovery and wildfire mitigation efforts, water conservation measures, and simplification of EV charging permits.

Of particular note, CREA staff worked closely with the Colorado Energy Office, both before and during the legislative session, on three priority pieces of proposed legislation, including bills that would have required new Clean Energy Plans for 2040, changes to siting requirements for renewable energy projects, and requirements for enhanced distribution system planning. The Clean Energy Plan legislation would have required utilities to demonstrate a reduction of greenhouse gas emissions of 97% over 2005 levels by 2040 with new interim emission reduction goals. This bill would have imposed significant burdens on many cooperatives, which are already on track to meet Colorado’s aggressive greenhouse gas emission reduction goals. CREA, along with our utility counterparts and the environmental community, pushed back against this legislation due to cost and reliability impacts, and ultimately the bill was not introduced. The renewable siting bill was substantially revised from the original proposal, and was ultimately passed. CREA also engaged on the distribution system planning bill, which was largely aimed at Xcel Energy, successfully negotiating two amendments to ensure that co-ops were not subject to further mandates from the PUC.

Finally, CREA worked throughout the interim and into the legislative session, through numerous stakeholder processes and the Colorado Energy Office’s Net Metering Work Group. This work ensured that net metering legislation was not introduced during the 2024 session, giving existing efforts at net metering reform a chance to play out.

CREA staff extends a special thank you to the Legislative Committee, chaired by Jim Lueck, the entire CREA board of directors, and our member co-ops for the collaborative effort to complete a successful legislative session. CREA staff also thanks our contract lobbying firm, Brandeberry McKenna Public Affairs for their continued support at the Capitol.

Special Thanks To

CREA Board of Directors Legislative Committee, chaired by Jim Lueck

Entire CREA Board of Directors

CREA member cooperatives

Brandeberry McKenna Public Affairs

Sen. Chris Hansen (D-Denver) attends the February CREA board meeting to discuss electric industry focused legislation.

Left: Rep. Bob Marshall (D-Highlands Ranch) speaks with linewokers during the lineworker appreciation day tribute.

Colorado electric cooperative lineworkers and representatives visit the Capitol for the House tribute recognizing Lineworker Appreciation Day.

MORE INFORMATION ON THE BILLS

SB24-218-Modernize Energy Distribution Systems

Sen. Chris Hansen (D-Denver), President Steve Fenberg (D-Boulder), and Rep. Monica Duran (D-Wheat Ridge): The legislation creates a regulatory framework for Xcel Energy to invest and plan in for electric distribution system upgrades needed to meet state policy goals, such as, to electrify heating and cooling in buildings, accelerate the deployment of electric vehicle (EV) infrastructure and solar energy, and interconnect renewable energy resources. This bill also addresses cost challenges for customers to make upgrades, makes critical workforce investments for line workers, and establishes a program for Virtual Power Plants at the PUC. CREA negotiated two amendments to the bill to ensure that the legislation would not impact electric cooperatives. The first amendment ensures that the PUC interconnection rulemaking in the bill is narrowly focused on Xcel Energy. The second amendment CREA negotiated ensured that Xcel could not pass distribution system planning costs on to wholesale customers. The bill passed the General Assembly and was sent to Gov. Polis to be signed into law.

SB24-208- Colorado Department of Labor and Employment

Regulate Electricity for Electric Vehicles

Sen. Kevin Priola (D-Henderson), Sen. Faith Winter (D-Westminster), Rep. Tisha Mauro (D-Pueblo), Rep. Manny Rutinel (D-Commerce City): The bill would have established the Electric Vehicle Enterprise within Colorado’s Department of Labor and Employment. The enterprise aimed to “synchronize,” i.e., standardize electric vehicle charging protocols to promote consistency and transparency for EV charging consumers. CREA successfully negotiated an amendment that exempted charging stations owned and operated by an electric utility from the enterprises’ regulations. The bill was postponed-indefinitely.

SB24-151- Telecommunications Security

Minority Leader Paul Lundeen (R-Monument) and Sen. Dylan Roberts (D-Eagle): The bill requires telecommunications providers that operate in Colorado to remove, discontinue, or replace all critical telecommunications infrastructure that utilizes equipment from a federally banned entity or foreign adversary. Further, the bill grants the commission authority to enforce the requirements established by the bill by administering fines against telecommunications providers for noncompliance. CREA was able to secure several amendments to address concerns raised by CREA member co-ops. CREA worked to narrow the definition of telecommunication provider to only apply to wireless telecommunication services available to the public for a fee. The amendment

CREA negotiated two amendments to the SB24-218 to ensure that the legislation would not impact electric cooperatives.

ensured that utility infrastructure would not be impacted by the legislation. Lastly, CREA worked with other stakeholders to narrow the regulatory burden of the legislation by removing PUC enforcement provisions from the legislation. The legislation will require wireless providers to file annual reports that mimic the current Federal Communications Commission filings. These annual reports will continue until the provider certifies that their equipment has been replaced. The amendment CREA achieved brought CREA’s member co-ops to a neutral position on the bill. The bill passed the General Assembly and was sent to Gov. Polis to be signed into law.

HB24-1341- State Vehicle Idling Standard

Rep. Jenny Willford (D-Westminster), Rep. Julia Marvin (D-Thornton): The bill authorizes a local government to enact a resolution or ordinance concerning the idling of a covered vehicle that is at least as stringent as, but not less stringent than, the state idling standard. Current law imposes a uniform state idling standard on an owner or operator of a covered vehicle that prohibits the vehicle from idling for more than 5 minutes within any 60-minute period, except in certain situations. Current law also prohibits a local government from enacting a resolution or ordinance concerning the idling of a covered vehicle that is more stringent than the state idling standard. The current law has several exemptions that may apply to utility vehicles; however, the existing language is vague. CREA successfully negotiated an amendment that clarifies that utility vehicles are exempt from the state idling standard when performing normal work functions. This amendment brought CREA to a neutral position on the bill. The bill was signed by Gov. Polis on April 29, 2024.

HB24-1370-

Reduce Cost of Natural Gas

Rep. Cathy Kipp (D-Fort Collins), Rep. Jenny Willford (D-Westminster):

The bill creates an avenue for local governments to enter into an agreement with the utility to reduce the use of natural gas in those communities by exploring opportunities to reduce greenhouse gas emissions. This may include “non-emitting” thermal resources, such as air-source and ground-source heat pumps. The bill includes requirements for the Colorado Energy Office and dual-fuel utilities to submit a report designated for proposed gas planning pilot communities. Additionally, the bill contains cost-recovery provisions for dual-fuel utilities that

implement a gas planning pilot community program. The bill contemplates that an electric cooperative or a municipal utility could enter into an agreement with Xcel or Black Hills to help facilitate the reduction in the use of natural gas in a community through a pilot program. These agreements may contemplate some sort of cost-share mechanism between the cooperative and regulated utility. However, this language is permissive. In fact, the legislation specifically states that any agreements are voluntary. CREA successfully negotiated an amendment that would allow a regulated natural gas utility to enter into an agreement with a local government and an electric cooperative to help facilitate fuel switching from natural gas to electricity. The amendment ensures that the PUC’s jurisdiction wouldn’t be expanded if a cooperative entered into such an agreement. This amendment brought CREA to a neutral position on the bill. The bill passed the General Assembly and was sent to Gov. Polis to be signed into law.

SB24-009-Local Governments Disaster-Related Programs

Sen. Lisa Cutter (D-Littleton), Sen. Sonya Jaquez Lewis (D-Lafayette), Rep. Marc Synder (D-Colorado Springs): The bill establishes the slash removal pilot program and requires the Division of Homeland Security and Emergency Management to guide local governments on various issues concerning debris removal. CREA staff was concerned about a portion of the legislation that would have given the Division of Homeland Security the ability to establish right-of-way cleanup procedures, including the removal of private vehicles, for public roadways. CREA worked with the bill sponsors and other stakeholders to amend the legislation to ensure that this provision would not impact the ability of a utility to access an existing right-of-way or limit the utility’s ability in the future. Colorado Counties Inc., Colorado Counties Acting Together, Colorado Counties for Climate Action, and Colorado State Forest Service testified in support of the bill. CREA testified in an

amend position on the legislation but noted that CREA would move to a support position once the amendment was adopted. With the adoption of the amendment, CREA moved to support position. The bill died on the calendar.

HB24-1036- Adjust Certain Tax Expenditures

Rep. Mike Weissman (D-Aurora), Rep. Lisa Frizell (R-Castle Rock), Sen. Chris Hansen (D-Denver), and Sen. Chris Kolker (D-Centennial): The bill repeals infrequently used tax expenditures in the state, including rural broadband equipment sales and use tax refunds. Many of these tax expenditures that are in the bill are not utilized by electric cooperatives. However, the rural broadband equipment sales and tax refunds have been utilized by several co-ops operating broadband subsidiaries. CREA worked with the bill sponsors and the Colorado Broadband Office to extend the tax credit for another three years. CREA provided testimony at the committee hearing in support of the amendment. The amendment was adopted in committee and CREA moved to a monitor position on the bill. The bill passed the General Assembly and was sent to Gov. Polis to be signed into law.

SB24-165- Air Quality Improvements

Sen. Kevin Priola (D-Henderson), Sen. Lisa Cutter (D- Littleton), Rep. Lorena Garcia (D- Denver), Rep. Manny Rutinel (D-Commerce City): CREA advocated for two amendments that were adopted in committee on Wednesday, March 20. The amendments removed harmful provisions that would have impacted electric cooperative fleet vehicles such as the implementation of restrictions on off-road in-use diesel vehicles, which would be applied to electric cooperative fleet vehicles such as bucket trucks and digger derricks. Further, CREA worked to amend the bill to remove a provision to establish vehicle miles travel reduction target for the Denver Metro – North Front Range Ozone Nonattainment area that would have impacted cooperative operations. Ultimately the bill was postponed-indefinitely.

HB24-1245 - Fair Labor Practice Requirements for Broadband Projects

Rep. Tammy Story (D- Conifer), Rep. Lorena Garcia (D-Denver) and Sen. Julie Gonzales (D-Denver): The bill requires prevailing wage for the construction of broadband projects funded through federal and state money. Additionally, the bill sets specific requirements that grantees must report on, including employment title, benefits, and other aspects. The report would be on a biannual basis. CREA worked with the Colorado Broadband Office on amendments to remove the biannual reporting requirements of the bill. However, the bill as amended could still delay the state receiving federal funding

San Isabel Electric General Manager Ryan Elarton testifies in Senate Transportation and Energy Committee.

for broadband projects. CREA worked with the Colorado Broadband Office and several other stakeholders to oppose the bill. The bill was postponed-indefinitely.

HB24-1014- Deceptive Trade Practice Significant Impact Standard

Rep. Mike Weissman (D- Aurora), Rep. Javier Mabrey (D-Denver), Sen. Julie Gonzales (D-Denver): The bill eliminates the need to show a public impact — any private grievance where someone shows an unfair practice in a single transaction can take advantage of the enhanced remedies of the Colorado Consumer Protection Act. The “public interest” test was intended to avoid making everything subject to the act. As far as co-op impacts go, it means that any consumer complaint might potentially subject the co-op to enhanced remedies under the CCPA. This is similar to the concern we raised with respect to the last effort to amend the CCPA during the 2023 legislative session. CREA joined other industry groups in opposing the legislation. CREA staff provided testimony in both House and Senate Committees on the negative impact that this bill could have on co-ops. The bill was postponed indefinitely in the Senate Judiciary Committee.

HB24-1266 - Local Government Utility Relocation in Right-of-Way

Rep. Eliza Hamrick (D-Centennial) and Rep. Lisa Frizell (R-Castle Rock): The bill requires local governments to notify affected utility companies of road improvement projects and establishes the process by which local governments and utility companies may enter into agreements governing the relocation of utility facilities. The bill requires local governments and utility companies to coordinate on road improvement projects necessitating the removal, relocation, or alteration of utility lines in a local government’s right-of-way and to commit to a schedule for utility relocation by means of either a utility relocation agreement or a clearance letter. If the actions of a utility company unreasonably delay the utility relocation schedule or the schedule of the road improvement project, the utility company must pay for the costs associated with the delay. The bill does not alter the terms

of any franchises or licenses granted pursuant to statute or the state constitution. In the context of this legislation, the definition of utility is, “an investor-owned electric or gas utility company.” CREA staff worked with the proponents, Colorado Counties Inc., and the bill sponsors to exempt Colorado’s electric cooperatives from the bill during the interim. Due to this exemption, CREA was neutral on the bill. The bill passed the General Assembly and was sent to Gov. Polis to be signed into law.

SB24-233-Property Tax

Sen. Chris Hansen (D-Denver), Sen. Barbara Kirkmeyer (R-Brighton), Rep. Chris deGruy Kennedy (D-Lakewood), Rep. Lisa Frizell (R- Castle Rock): The bill makes reductions in valuations for residential and commercial property taxation beginning with the 2024 property tax year; starting in the 2025 property tax year it makes reductions that impact schools and local government entities separately. The bill introduces a local revenue growth limit and makes other changes to property tax law. As noted above, CREA staff joined several other industry groups in seeking an amendment that would also trigger a property tax reduction for state assessed entities such as public utilities. However, this ask requested was unsuccessful. The bill passed the General Assembly and was sent to Gov. Polis to be signed into law.

COLORADO ADVOCATES FOR RURAL ELECTRIFICATION

Anna Evans (Interest Energy Alliance), Rep. Anthony Hartsook (R-Parker), and Tim Coleman at Council of State Governments West event.