First Regular Session Seventieth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 15-0124.01 Thomas Morris SENATE BILL 15-009 SENATE SPONSORSHIP Jones, HOUSE SPONSORSHIP Hamner, Senate Committees House Committees Agriculture, Natural Resources, & Energy A BILL FOR AN ACT Concerning a grant program to promote the use of woody biomass as a fuel source for public buildings. 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.) Wildfire Matters Review Committee. The bill promotes the use of woody biomass as a fuel source for public buildings by creating the woody biomass grant program. The program is funded by an annual $1 million transfer from the general fund for 5 fiscal years. The executive director of the department of natural resources will award grants to a public entity that will use woody biomass as a fuel source for a public building's biomass energy system when either the use of the grant allows the public building to be cost-effective when compared with other fuels or the executive director reasonably believes that making the grant provides other substantial benefits as specified in rules. The rules must include: A preference for making grants to projects that use a woody biomass energy system for 2 or more public buildings that are located near one another; and Criteria to evaluate grant applications and prioritize the award of grants, including at least an analysis of whether the public building is or will be located within a reasonable distance of a substantial forested area of the state as determined by the state forester. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 24-82-603 as follows: 24-82-603. Woody biomass grant program - fund - rules - repeal. (1) (a) For five state fiscal years beginning on and after July 1, 2015, the state treasurer shall transfer one million dollars from the general fund created in section 24-75-201 to the woody biomass grant cash fund, which is hereby created in the state treasury and referred to in this section as the "fund". (b) The executive director of the department of natural resources shall use revenues in the fund only to make grants pursuant to this section; except that the department of natural resources may spend up to three percent of the revenues in the fund for its direct and indirect costs in administering the fund. A grant may be awarded only: (I) To a public entity that will use woody biomass as a fuel source for a public building's biomass energy system; and (II) When either: (A) The use of the grant allows the public building to be cost-effective when compared with other fuels; or (B) The executive director reasonably believes that making the grant provides other substantial benefits as specified in rules promulgated pursuant to this section. (2) The executive director shall promulgate rules as necessary to implement this section, including: (a) Criteria that provide guidance regarding situations in which the use of a biomass energy system in a public building is not cost-effective when compared with other fuels but making a grant would nevertheless provide other substantial benefits, taking into consideration: (I) Potential air quality benefits of reducing the risk of wildfires; (II) The promotion of forest health; and (III) The promotion of the forest products industry; (b) A definition of "public building" that includes buildings owned or substantially financed by the state or any local government, including school districts and special districts; (c) A preference for making grants to projects that use a woody biomass energy system for two or more public buildings that are located near one another; and (d) Criteria to evaluate grant applications and prioritize the award of grants, including at least an analysis of whether the public building is or will be located within an economically reasonable distance of a substantial forested area of the state as determined by the state forester pursuant to section 30-15-401 (1) (n.5) (V) (B), C.R.S. The projected supply of woody biomass necessary for the public building must not exceed five percent of the standing timber within each county that is or will be the source of the woody biomass. (3) This section is repealed, effective September 1, 2021. SECTION 2. Act subject to petition - effective date - applicability. (1) This act takes 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 5, 2015, if adjournment sine die is on May 6, 2015); 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 will not take effect unless approved by the people at the general election to be held in November 2016 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor. (2) This act applies to conduct occurring on or after the applicable effective date of this act.