HOUSE 3rd Reading Unamended February 29, 2012 HOUSE Amended 2nd Reading February 27, 2012Second Regular Session Sixty-eighth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 12-0001.01 Duane Gall x4335 HOUSE BILL 12-1172 HOUSE SPONSORSHIP Swalm, Conti SENATE SPONSORSHIP Harvey, House Committees Senate Committees Agriculture, Livestock, & Natural Resources A BILL FOR AN ACT Concerning the rates charged to consumers for electricity, and, in connection therewith, prohibiting the imputation of certain costs associated with reductions in greenhouse gas emissions. 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://www.leg.state.co.us/billsummaries.) The 2004 voter initiative known as "Amendment 37" committed Colorado to a policy of increasing the portion of the state's electricity generated from renewable sources. Subsequent legislation allows the Colorado public utilities commission (PUC) to impute the cost of a carbon tax imposed at the federal level when calculating an electric utility's investments and comparing the cost of maintaining existing infrastructure with the cost of replacing existing power plants with more energy-efficient power plants. Section 1 of the bill conditions the PUC's imputation of the carbon tax on the actual adoption of a carbon tax as part of federal law. Section 2 prohibits an investor-owned electric utility from charging residential customers tiered rates according to their monthly consumption. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 40-2-123, amend (1) (b) as follows: 40-2-123. New energy technologies - consideration by commission - incentives - demonstration projects - definitions - legislative declaration - repeal. (1) (b) The commission may give consideration to the likelihood existence of new environmental regulation and the risk of higher future costs associated with imposed by current federal law or regulations on 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. SECTION 2. Act subject to petition - effective date - applicability. This act takes effect January 1, 2013, and applies to proceedings initiated on or after said date; 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 the ninety-day period after final adjournment of the general assembly, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2012 and, in such case, will take effect on January 1, 2013, or on the date of the official declaration of the vote thereon by the governor, whichever is later, and applies to proceedings initiated on or after said date.