NOTE:  This bill has been prepared for the signature of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
      history, or the Session Laws.
      
      
      HOUSE BILL 10-1431
      
      
      BY REPRESENTATIVE(S) McKinley, Frangas, Labuda, McFadyen,
      Middleton;
      also SENATOR(S) Penry.
      
      
      Concerning the methodology used to value renewable energy
           facilities for purposes of property taxation.
       
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  39-4-102 (1) (e) (I) (A) and (1.5) (b) (IV), Colorado
      Revised Statutes, are amended to read:
      
           39-4-102.  Valuation of public utilities.  (1)  The administrator shall
      determine the actual value of the operating property and plant of each public
      utility as a unit, giving consideration to the following factors and assigning
      such weight to each of such factors as in the administrator's judgment will
      secure a just value of such public utility as a unit:
      
           (e) (I)  When determining the actual value of a renewable energy
      facility that primarily produces more than two megawatts of alternating
      current electricity, the administrator shall:
      
           (A)  Consider the additional incremental cost per kilowatt of the
      construction of the renewable energy facility over that of the construction
      cost of a comparable nonrenewable energy facility, inclusive of the cost
      of all property required to generate and deliver energy to the
      interconnection meter, that primarily produces alternating current
      electricity to be an investment cost and shall not include such additional
      incremental cost in the valuation of the facility; and
      
           (1.5)  The administrator shall determine the actual value of a wind
      energy facility or a solar energy facility as follows:
      
           (b) (IV)  As used in this paragraph (b), "tax factor" means a factor
      annually established by the administrator.  The tax factor shall be a number
      that when applied to the selling price at the interconnection meter results in
      approximately the same tax revenue over a twenty-year period on a nominal
      dollar basis that would have been collected using the cost basis method of
      taxation as determined by the administrator for a renewable energy facility
      pursuant to paragraph (e) of subsection (1) of this section.  For a
      renewable energy facility that begins generating energy before
      January 1, 2012, the administrator shall include only the cost of
      all property required to generate and deliver renewable energy
      to the interconnection meter that does not exceed the cost of
      property required to generate nonrenewable energy.  For a
      renewable energy facility that begins generating energy on or
      after January 1, 2012, the administrator shall include only the
      cost of all property required to generate and deliver renewable
      energy to the interconnection meter that does not exceed the
      cost of property required to generate and deliver nonrenewable
      energy to the interconnection meter.
      
           SECTION 2.  Act subject to petition - effective date.  This act
      shall take effect at 12:01 a.m. on the day following the expiration of the
      ninety-day period after final adjournment of the general assembly (August
      11, 2010, if adjournment sine die is on May 12, 2010); except that, if a
      referendum petition is filed pursuant to section 1 (3) of article V of the state
      constitution against this act or an item, section, or part of this act within
      such period, then the act, item, section, or part shall not take effect unless
      approved by the people at the general election to be held in November 2010
      and shall take effect on the date of the official declaration of the vote
      thereon by the governor.
      
      
      
      
      ________________________________________________________
      Terrance D. Carroll                Brandon C. Shaffer
      SPEAKER OF THE HOUSE                     PRESIDENT OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
      
      
      ____________________________  ____________________________
      Marilyn Eddins                          Karen Goldman
      CHIEF CLERK OF THE HOUSE                 SECRETARY OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    Bill Ritter, Jr.
                                    GOVERNOR OF THE STATE OF COLORADO