SENATE 3rd Reading Unamended February 24, 2016 SENATE Amended 2nd Reading February 23, 2016Second Regular Session Seventieth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 16-0337.01 Jennifer Berman x3286SENATE BILL 16-007 SENATE SPONSORSHIP Roberts, HOUSE SPONSORSHIP Coram, Senate Committees House Committees Agriculture, Natural Resources, & Energy A BILL FOR AN ACT Concerning the establishment of a multiplier in the renewable energy standard for electricity generated from certain types of biomass to provide an incentive to use materials located within areas that have a high risk of wildfire. 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.) Current law requires a provider of retail electric service in Colorado to generate, or cause to be generated, a certain portion of its retail electric sales from renewable energy resources. The bill creates an incentive for a retail electric service provider to utilize certain biomass to meet the renewable energy requirements. For a period of up to 30 years, a retail electric service provider that generates electricity from a biomass source that uses forest materials located in areas with a high risk of wildfire may count each kilowatt-hour generated as 3 kilowatt-hours for purposes of complying with the renewable energy standard. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 40-2-124, amend (8) (d); and add (1) (c) (XI) as follows: 40-2-124. Renewable energy standards - qualifying retail and wholesale utilities - rules - definitions - net metering - legislative declaration. (1) Each provider of retail electric service in the state of Colorado, other than municipally owned utilities that serve forty thousand customers or fewer, is a qualifying retail utility. Each qualifying retail utility, with the exception of cooperative electric associations that have voted to exempt themselves from commission jurisdiction pursuant to section 40-9.5-104 and municipally owned utilities, is subject to the rules established under this article by the commission. No additional regulatory authority is provided to the commission other than that specifically contained in this section. In accordance with article 4 of title 24, C.R.S., the commission shall revise or clarify existing rules to establish the following: (c) Electric resource standards: (XI) For the purpose of mitigating catastrophic wildfires and improving forest health, each kilowatt-hour of electricity generated from a biomass source shall be counted as three kilowatt-hours for a period of up to thirty years if the biomass source uses materials that are: (A) Forest materials, such as wood waste, slash, brush, or other woody biomass, with a preference for forest materials generated from hazardous fuel treatments, forest restoration activities, insect and disease mitigation, catastrophic weather events, or thinning overstocked stands; (B) Located within a geographic area that is designated as having a "high" or "very high" wildfire risk assessment using the wildfire threat map developed by the Colorado state forest service and displayed on the Colorado wildfire risk assessment portal (CO-WRAP) online mapping tool; and (C) Transformed into biochar, which is charcoal primarily used as a soil amendment and certified by the International Biochar Initiative, or it successor entity. (8) Qualifying wholesale utilities - definition - electric resource standard - tradable credits - reports. (d) (I) Preferences A qualifying wholesale utility may use preferences for certain eligible energy resources, and subject to the limit on their applicability established in subparagraph (VIII) of paragraph (c) of subsection (1) of this section may be used by a qualifying wholesale utility in meeting to meet the energy resource standard established in this subsection (8). (II) A qualifying wholesale utility may use the preference for certain biomass established in subparagraph (XI) of paragraph (c) of subsection (1) of this section to meet the energy resource standard set forth in this subsection (8). 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 10, 2016, if adjournment sine die is on May 11, 2016); 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 electricity that is generated from biomass on or after the applicable effective date of this act.