Bill Tracker

Currently, the location of a small or low impact hydroelectric
energy facility, a geothermal energy facility, a biomass energy facility, a
wind energy facility, or a solar energy facility on real property does not
affect the classification of that real property for purposes of determining
the actual value of that real property. As a result, a county assessor cannot
use the location of the facility as a basis for reclassifying the real

property. The bill creates an exception to this requirement for real
property that, immediately prior to the location of the facility, was
classified as agricultural. Therefore, an assessor will be able to consider
the location of the facility when determining whether the real property
should be reclassified.

The bill removes the existing restriction on pumped hydroelectric
facilities as a source of recycled energy, which is included in the
definition of an eligible energy resource under the renewable energy

standard statute.

Section 1 of the bill removes the low-income energy assistance
program administered by Energy Outreach Colorado (EOC) from the
grant program reserve funded by tier 2 severance tax operational fund
money.
Section 2 clarifies that the definition of a low-income utility
customer, with regard to the public utilities commission's (PUC)

consideration of a preference or advantage that a gas or electric utility
grants a low-income utility customer, means a utility customer who meets
the Colorado department of human services' income eligibility criteria.
Sections 3 and 4 make modifications to the legislative commission
on low-income energy assistance, wherein section 3 expands the
commission's scope to include water utility assistance and section 4
reduces the composition of the commission from 11 members to 7
members. Section 4 also requires the commission to:
  • Advise the Colorado energy office (office) on grants
awarded from the federal department of energy regarding
the office's weatherization assistance program;
  • Advise water utilities that provide their customers with
utility assistance and efficiency programs; and
  • Review EOC's annual budget that it submits to the PUC
regarding the use of funding for utility bill payment
assistance.
Sections 5, 6, and 8 to 10 concern the creation of an energy
assistance system benefit charge, which is a mandatory monthly charge
that investor-owned electric and gas utilities are required to collect from
their customers. The initial amount of the charge per customer is $1 for
electric service provided and $1 for natural gas service provided, but the
PUC may adopt rules to modify the amount of the charge, so long as the
charge is at least $1 per service provided. Investor-owned utilities are
required to remit the charges collected to EOC to help finance the direct
utility bill payment assistance and energy retrofit programs that EOC
administers for low-income households.
Sections 7 and 11 concern voluntary, opt-in charges that a water
utility may offer its customers to help finance the water utility bill
payment assistance program that EOC administers. Alternatively, a water
utility may implement its own water utility bill payment assistance
program.
Section 12 requires EOC and the office, when installing energy
retrofits for low-income households, to prioritize customer savings,
emission reductions, and improving indoor air quality.
Section 13 governs reporting requirements for EOC regarding the
mandatory monthly energy assistance system benefit charge and
voluntary, opt-in monthly water utility bill payment assistance collections.
Sections 14 to 17 make conforming amendments.

The bill establishes the electric vehicle license plate, which is
issued for use on plug-in electric motor vehicles. The electric vehicle
license plates are issued to the owner of a plug-in electric motor vehicle
upon registration of the vehicle and payment of applicable fees and taxes,
unless the owner elects an alternative license plate. A person may be
issued personalized electric vehicle license plates. The requirement for

decals to identify plug-in electric motor vehicles applies only if a person
has not obtained the electric vehicle license plate.

The bill requires the Colorado work force development council
(council), in collaboration with local work force boards, the department
of education, superintendents of local school districts, the state board for
community colleges and occupational education, and other postsecondary
partners, to design a career pathway for students in the energy sector
using an existing statutory model for the design and implementation of

career pathways.

The bill requires the state forest service to conduct a study of
biomass utilization by identifying the potential costs and benefits of
increasing biomass utilization throughout the state and any administrative
or statutory changes needed to increase biomass utilization. In conducting
the study, the state forest service shall engage in shared stewardship by
consulting with various state agencies, local officials who serve

communities in the wildland-urban interface, and other interested
stakeholders. On or before March 1, 2022, the state forest service shall
submit a report summarizing its findings and recommendations from the
study to the governor and the legislative committees with jurisdiction
over agriculture and natural resources matters.

Section 1 of the bill creates the natural disaster mitigation
enterprise (enterprise). The enterprise collects a fee on insurance
companies that offer certain insurance policies and uses the fee revenue

to finance the natural disaster mitigation grant program and provide local
governments technical assistance on natural disaster mitigation. The
enterprise awards natural disaster mitigation grants to assist local
governments in implementing resilience and natural disaster mitigation
measures and to assist entities that apply for federal grants that require
matching funds and are dedicated to assisting in the implementation of
pre-disaster natural disaster mitigation measures.
Section 2 sets the fee at $1.25 of every $1,000 in insurance
premiums collected on certain policies by the insurance companies that
offer those insurance policies.
The board of directors of the enterprise shall submit a report by
July 1 of each year to the committees of reference of the general assembly
to which the department of public safety is assigned regarding the grant
program.

The bill updates the methods used to determine the
cost-effectiveness of demand-side management (DSM) programs of
public utilities selling natural gas at retail, including requiring that the
calculation of future benefits reflects the avoided costs to ratepayers
resulting from reduced consumption of natural gas. The bill specifies that
the calculation must be based on reliable estimates and published

scientific data and must include methane emissions. In addition, the bill
adds savings targets and budget control mechanisms to the approval
process for gas DSM programs, paralleling the existing process that
applies to electric DSM programs.

The bill transfers $5 million from the general fund to the local
government severance tax fund for the purpose of funding grants to local

governments for renewable and clean energy infrastructure
implementation projects. The grants must be made by August 15, 2021,
or as soon as possible thereafter, and the department of local affairs,
which makes the grants, is required to report to the general assembly
regarding the grants during its 2022 annual SMART Act presentation
to legislative committees of reference. $5 million is appropriated from the
local government severance tax fund to the division of local government
of the department of local affairs so that the division can make the grants.

The bill concerns the concept of community choice energy
(CCE), under which a community, or group of communities, may choose

to purchase their electricity from a wholesale supplier other than the local
investor-owned electric utility. The bill declares that CCE has the
potential to enable communities to meet their renewable energy goals and
to reduce their electricity rates by allowing wholesale competition and
local control over the energy supplier and energy mix without changing
the local utility's current status as sole supplier of electric transmission,
distribution, billing, and customer service functions.
To lay the groundwork for evaluating the potential adoption of
CCE in Colorado, the bill proposes an investigatory proceeding at the
public utilities commission that would invite testimony and
documentation from interested stakeholders, utilities, the public, invited
subject-matter experts, and persons with firsthand knowledge of CCE
operations, including regulators from states in which CCE has been
implemented. The proceeding would address a series of questions and
topics that are specified in the bill, with the goal of better understanding
CCE in the Colorado context and identifying best practices that would
allow CCE to function well in Colorado if adopted. The bill does not
change current statutes and regulations governing the electricity system.
The bill directs the commission to submit a report summarizing the
investigatory proceeding to the legislative committees with jurisdiction
over energy matters by December 15, 2022.

Current law imposes a limitation on the permit, application review,
or any other related or associated fees that may be assessed by counties,

municipalities, state agencies, and political subdivisions of the state for
the installation of an active solar electric or solar thermal device or
system. The bill modifies this language so that the limitation applies to
the aggregate of all charges or other related or associated fees the state,
a county, municipality, state agency, or any other political subdivision of
the state (governmental bodies) shall impose or assess for the installation
of an active solar energy system.
The bill sets a limit on the aggregate of all charges or other related
or associated fees any governmental body may impose or assess to install
an active solar energy system of $500 for a residential permit and $1,000
for a commercial permit. In the case of a nonresidential application, on an
individual installation basis only, if the governmental body incurs actual
costs for issuing the permit that are greater than $1,000, the governmental
body is entitled to recovery of its actual costs for issuing the permit by
submitting in writing and disclosing to the applicant for the particular
permit proof of the governmental body's actual costs.
In connection with existing statutory requirements affecting state
agencies and political subdivisions, the bill clarifies that the duty to
clearly and individually identify all fees and taxes assessed on an
application on the invoice lies with the state or any agency, institution,
authority, or political subdivision of the state.
Under existing law, one component of determining the lawful fee
for issuing a permit or reviewing an application requires a comparison of
the lesser of the actual costs of providing such services or $500 for a
residential application. The bill restricts a governmental body from
increasing its fees or other charges by more than 5% on an annual basis
until the $500 limitation is achieved.
The bill also extends the repeal date of the existing fee limitation.

Section 1 of the bill requires owners of certain large buildings
(covered buildings), on an annual basis, to collect and report to the
Colorado energy office (office) the covered building's energy use. The
bill establishes a process requiring certain electric and gas utilities to
provide energy-use data to a covered building owner when requested by
the covered building owner.
Section 1 also requires that, on or before June 1, 2027, a covered
building owner demonstrate that, in 2026, the covered building met
performance standards set forth in the bill. A covered building owner
must demonstrate compliance with the performance standards every 5
years after June 1, 2027. The air quality control commission
(commission) is required to adopt rules in 2026 or 2027 that extend or
modify the performance standards. Thereafter, the commission may, as
the commission deems necessary, modify the performance standards by
rule.
Section 2 requires the office to assist covered building owners
with the reporting requirements set forth in section 1 by:
  • Creating a database of covered buildings and owners
required to comply with section 1;
  • Developing publicly available, digitally interactive maps
and lists showing the energy-use and performance-standard
data reported;
  • Coordinating with any local government that implements
its own energy benchmarking requirements or energy
performance program, including coordination of reporting
requirements; and
  • Collecting an annual fee from owners of covered buildings
of $100 per covered building. The office is required to
transfer the fees collected to the state treasurer, who will
credit the fees to the climate change mitigation and
adaptation fund (fund) created in section 2.
Section 3 imposes penalties for violations of section 1, ranging
from $500 to $5,000, depending on whether the violations are first
violations or subsequent violations, and requires that the civil penalty
payments be credited to the fund. Certain subsequent violations are also
subject to a penalty of 2 cents per square foot of gross floor area of the
covered building for each day that the violations continue.
Section 4 modifies the definition of an energy performance
contract that a governing body of a municipality, county, special district,
or school district (board) enters into for evaluation, recommendations, or
implementation of energy-saving measures to remove requirements that
a board's payment for goods and services pursuant to the contract be made
within a certain number of years of the contract's execution.
1

The bill creates the Colorado startup loan program (program) in
the office of economic development (office) as a revolving loan program
to provide loans and grants to businesses seeking capital to start, restart,
or restructure a business. The office may contract with a business
nonprofit organization, bank, nondepository community development

financial institution, or other entity to administer the program.
The office or an administrator is required to establish policies for
the program, including:
  • The process and deadlines for applying to the program;
  • The eligibility criteria for businesses;
  • Maximum assistance levels for loans and grants;
  • Loan terms, program fees, and underwriting and risk
management policies; and
  • Reporting requirements for recipients.
The policies must be developed with the goal of generating enough return
to replenish the Colorado startup loan program fund (fund) for further
loan allocations.
In determining the eligibility of applicants and the size and terms
of loans and grants, the office or an administrator must consider:
  • The need of the business to restructure as a result of the
COVID-19 pandemic or the ability of the business to fill
gaps left by closures resulting from the COVID-19
pandemic;
  • The financial losses or other impacts from the COVID-19
pandemic that may inhibit an entrepreneur from obtaining
capital through traditional sources;
  • Whether the applicant or the applicant's community faces
other barriers to accessing capital from traditional sources;
and
  • The applicant's financial needs and repayment ability and
any technical assistance the applicant is receiving.
The office is required to work with the minority business office
and other stakeholders to promote the program to businesses that are
owned by women, minorities, and veterans and to businesses in rural and
underserved communities.
The bill creates the fund. The state treasurer is required to transfer
$30 million to the fund on the effective date of the bill. The money in the
fund is continuously appropriated to the office for the program.

The bill makes general fund transfers of $8 million to the just
transition cash fund (fund) and $7 million to a newly created coal
transition worker assistance program account (account) in the fund. The
just transition office (office) is required to expend at least 70% of the
money transferred to the fund in state fiscal year (FY) 2021-22 and any

remaining money in state FY 2022-23 to implement the final just
transition plan for Colorado and to provide supplemental funding for
existing state programs that the office identifies as the most effective
vehicles for targeted investment in coal transition communities. In
expending the money, the office is required to develop specific criteria for
prioritizing the expenditures, emphasize investment in tier one transition
communities, as defined by the bill, and support specified types of
programs in accordance with specified requirements and limitations.
Subject to specified requirements and limitations, the department
of labor and employment is required to expend at least 70% of the money
transferred to the account in state FY 2021-22 and any remaining money
in state FY 2022-23 first for assistance programs that directly assist coal
transition workers and then, if money remains, to support family and
other household members of coal transition workers and create and
implement a pilot program to test innovative coal transition work support
programs.
The bill also amends and supplements existing definitions of coal
transition community and coal transition worker to improve the
implementation of just transition.

Senate Bill 20-222, enacted in 2020, created a grant program
financed through the federal Coronavirus Aid, Relief, and Economic
Security Act to support small businesses suffering from economic
impacts of COVID-19 and related public health restrictions. The bill
appropriates $15 million from the general fund to continue the grant

program and modifies the criteria pursuant to which grants are awarded.

The department of personnel and the department of transportation
are each required to establish policies regarding the global warming
potential for specific categories of eligible materials used to construct
certain public projects.
The department of personnel is required to establish a maximum
acceptable global warming potential for each category of eligible material

used in certain public projects under its purview. The bill specifies which
building materials are eligible materials. The department of personnel is
required to set the maximum acceptable global warming potential at the
industry average of global warming potential emissions for that material
and to express it as a number that states the maximum acceptable global
warming potential for each category of eligible material.
Specifications for solicitations for a public project requested by the
department of personnel are required to include that the global warming
potential for any eligible material that will be used in the project shall not
exceed the maximum acceptable global warming potential for that
material determined by the department.
The department of transportation is required to develop policies to
determine, track, and record greenhouse gas emissions for each category
of eligible materials used in certain public projects under its purview in
a manner consistent with criteria in an environmental product declaration.
The department of personnel and the department of transportation
are both are required to strive to achieve continuous reduction in
greenhouse gas emissions in construction materials over time for the
projects under their purview.
For solicitations for certain public projects under the purview of
the department of personnel or the department of transportation issued
after certain dates, the contractor that is awarded the contract is required
to submit a current environmental product declaration for each eligible
material proposed to be used in the public project.
A contractor that is awarded a contract for a public project is
prohibited from installing any eligible material on the project until the
contractor submits an environmental product declaration for that material.
The department of personnel and the department of transportation
are required to annually report to the general assembly regarding the
implementation of the bill.

The bill makes changes to several state and local government
taxes.
Insurance premium tax. Currently, the insurance premium tax is
equal to 2% of premiums collected or contracted for covering property or
risks in this state; except that a company that is deemed to maintain a
home office or regional home office in this state pays tax of 1%. Section
2 of the bill requires a company to have at least 2.5% of its total domestic
workforce in the state in order for the company to be deemed to maintain
a home office or regional home office. This section also narrows the tax
exemption for annuities considerations to those that are purchased in
connection with a qualified retirement plan, a Roth 401(k), or an
individual retirement account. For the purpose of auditing a company's
tax statement, section 2 also authorizes the commissioner of insurance to
appoint an independent examiner to conduct an examination on behalf of
the commissioner.
Property tax. For purposes of imposing the property tax, section
4 requires the actual value of real property to reflect the value of the fee
simple estate. Section 5 requires that the actual value of personal property
be determined based on the property's value in use, which will be defined
by the property tax administrator.
There is an exemption from property tax for business personal
property that would otherwise be listed on a single personal property if
the property is less than a certain amount, which increases with inflation
each property tax cycle. For the next property tax cycle, section 6
increases the exemption from $7,900 to $50,000. Similar to the
reimbursement for the homestead exemption, the state is required to
reimburse local governments for lost property tax revenue caused by the
increase. The first reimbursement will be based on actual property tax
schedules filed, and future reimbursements will be adjusted estimates
based on the initial amount.
Sales and use tax. The state sales and use tax is imposed on the
sale and use of tangible personal property. Section 7 codifies the
department of revenue rule that the definition of tangible personal
property includes digital goods. Section 8 specifies that the state sales
tax applies to amounts charged for mainframe computer access,
photocopying, and packing and crating.
A retailer who collects state sales tax is currently allowed to retain
4% of the state sales taxes collected, with a monthly cap of $1,000, as
compensation for the retailer's expenses incurred in collecting and
remitting the tax (vendor fee). Beginning January 1, 2022, section 9
eliminates the vendor fee for any filing period that the retailer's total
taxable sales were greater than $1 million.
Severance taxes. The severance tax on oil and gas is currently
imposed on gross income, which is equal to the net amount realized for
the sale of the oil and gas. The net amount realized is equal to the gross
lease revenues, less deductions for any transportation, manufacturing, or
processing costs by the taxpayer borne by the taxpayer (netback
deductions). Section 10 limits the netback deductions to direct costs
actually paid by the taxpayer for those purposes, which disallows costs of
capital and other indirect expenses.
Currently, the first 300,000 tons of coal produced in each quarter
is exempt from the property tax. There is also a tax credit equal to 50%
for coal produced from underground mines and another credit in the same
amount for lignitic coal. Beginning with the 2022 taxable year, section 11
phases out the quarterly exemption and both tax credits. The additional
severance tax that results from these changes is credited to the just
transition cash fund under section 12.

The bill replaces the integrated gasification combined cycle
(IGCC) program, which was repealed in 2019, with a mechanism by
which an investor-owned utility seeking to implement an innovative
energy technology project may apply to the public utilities commission to
acquire resources that demonstrate the use of low- and zero-emission
resources and other innovative energy technologies such as advanced
renewable energy and storage.

Sections 1 and 2 of the bill ensure that clean energy resources and
energy storage systems used to store electricity are assessed for valuation
for the purpose of property taxation in a similar manner to renewable
energy facility property used to generate and deliver electricity.
Currently, the property tax administrator (administrator) is required
to determine the actual value of a small or low impact hydroelectric

energy facility, a geothermal energy facility, a biomass energy facility, a
wind energy facility, or a solar energy facility using the income approach
to valuation only. This valuation currently involves a tax factor based
on a 20-year period. Section 2 extends this period by 10 years for a
renewable energy facility that begins generating energy on or after
January 1, 2021. It also specifies that after the 20- or 30-year period, as
applicable, a tax factor is not applied and the taxable value shall not
exceed the depreciated value floor calculated using the cost basis method.
Under section 3, the administrator is required to utilize the income
approach for solar energy facilities that generate 2 megawatts or less, so
that similar facilities will be valued in the same manner.

Supplemental appropriations are made to the offices of the
governor, lieutenant governor, and state planning and budgeting.
Capital letters or bold & italic numbers indicate new material to be added to existing law.

Section 1 of the bill directs the public utilities commission (PUC)
to approve utilities' applications to build new transmission facilities if the
PUC, in its discretion, finds that the new facilities would assist the
utilities in meeting the state's clean energy goals established in 2019. In
constructing or expanding transmission facilities, a utility must use its
own employees, engage a contractor whose employees have access to
federally approved apprenticeship programs, or both. Section 1 also
requires the PUC to consider the ability of the proposed facilities to
support future expansion as needed to enable the utility to participate in
a regional transmission organization (RTO). An application for
construction or expansion of transmission facilities is deemed approved
if the PUC does not deny it within 180 days after the application is
complete and public notice has been given.
Sections 4 and 5 create the Colorado electric transmission
authority (CETA) as an independent special purpose authority, and
section 4 specifies the composition and manner of appointment of the
board of directors that governs the authority. CETA is authorized to select
a qualified transmission operator to finance, plan, acquire, maintain, and
operate eligible electric transmission and interconnected storage facilities
(eligible facilities).
Under sections 4 and 6, CETA is granted various powers
necessary to accomplish its purposes, including the power to:
  • Issue revenue bonds;
  • Identify and establish intrastate electric transmission
corridors;
  • Coordinate with other entities to establish interstate electric
transmission corridors;
  • Exercise the power of eminent domain to acquire eligible
facilities; and
  • Collect payments of reasonable rates, fees, interest, or other
charges from persons using eligible facilities.
CETA is generally subject to state open records and open meetings
requirements, but proprietary confidential information that it holds,
including power purchase agreements, costs of production, costs of
transmission, transmission service agreements, credit reviews, detailed
power models, and financing statements, is not subject to inspection.
Section 8 authorizes payment of CETA's administrative expenses, not to
exceed $500,000 annually, from an existing cash fund administered by the
PUC.
Section 2 sets out deadlines and conditions under which an electric
utility that owns and controls transmission facilities is required to join an
RTO. The commission may delay or waive this requirement for a utility
that is unable, despite its best efforts, to find a viable and available RTO
to join or if the commission finds, in the course of its ongoing study of
RTOs under Senate Bill 19-236, that requiring the utility to join an RTO
would not be in the public interest.
Under current law, a cooperative electric association with an
electric easement on real property is authorized to install or to allow a
commercial broadband supplier to install broadband facilities on the real
property, subject to notice and procedural requirements. Section 3
expands the authorization to also apply to either of the following entities
with an electric easement:
  • A generation and transmission cooperative electric
association; or
  • The federal western area power administration within the
United States department of energy.
Section 7 specifies that when a right-of-way is taken for an
interstate electric transmission line, the court shall evaluate public
purpose in light of the transmission system as a whole, including public
use and benefits occurring both within Colorado and at a regional level.

The bill requires a wind energy developer or owner to notify the
United States department of defense military aviation and installation
assurance siting clearinghouse (clearinghouse) of the new construction or
expansion of a wind energy facility if the proposed project would include
vertical construction exceeding 200 feet in height.
Upon receiving notification of a proposed project, the

clearinghouse is requested to review the proposed project to determine
whether it would have an adverse impact to military mission, training, or
operations and to notify the wind energy developer of its determination
in writing within 90 days after receiving the notice. If the clearinghouse
determines the proposed project will have no adverse impact, the
proposed project may proceed. If the clearinghouse determines that the
proposed project will have an adverse impact, the proposed project may
proceed only if the wind energy developer or owner commits to resolving
the adverse impact through the implementation of mitigation measures
that the clearinghouse identifies in its determination.
A wind energy developer or owner shall not construct a new wind
energy facility or expand an existing wind energy facility in a manner that
includes any vertical construction in excess of 50 feet in height if the
wind energy facility is located within 2 nautical miles of an active federal
military missile launch or control facility.

The bill requires the public utilities commission (PUC) to adopt by
rule, no later than July 31, 2022, greenhouse gas (GHG) emission
reduction programs (reduction programs) for large natural gas utilities
(those that have at least 250,000 customer accounts in Colorado) and
small natural gas utilities (those that have fewer than 250,000 customer

accounts in Colorado) (collectively, utilities). Municipally owned utilities
may, but need not, participate in a reduction program. The rules must
include reporting requirements and a process for utilities to fully recover
qualified investments, which are prudently incurred costs associated with
a reduction program.
The bill establishes the following GHG emission reduction targets,
using a utility's 2019 GHG emissions as a baseline:
  • By January 1, 2025, at least 5%;
  • By January 1, 2030, at least 10%; and
  • On and after January 1, 2035, at least 15%.
GHG emission reductions from the delivery of natural gas to other
utilities and transportation sector retail customers are excluded from the
reduction programs. The following sources of GHG emission reductions
are included in the reduction programs:
  • Methane leaked from the transportation and delivery of
natural gas from natural gas distribution and service
pipelines; and
  • Carbon dioxide emitted by the utility's retail customers
(other than those in the transportation sector) as a result of
the combustion of natural gas delivered by the utility.
GHG emission reductions can be achieved by:
  • Using renewable natural gas, which must account for at
least 35% of the emission reductions;
  • Emission offsets;
  • Methane emission reductions from a variety of
mechanisms; and
  • Other programs developed by the utility and approved by
the PUC that demonstrate GHG emission reductions.
If a large utility's total incremental annual cost to meet the GHG
emission reduction targets exceeds 2% of the large utility's total revenue
requirement for a particular year, the large utility shall not make
additional qualified investments under the reduction program for that year
without approval from the PUC.
Small utilities may opt in to the reduction program as established
by the PUC by rule. The rule must include tradeable credits and a rate cap
limiting the small utility's costs of making qualified investments.
For included emission reductions and until 2025, a utility
participating in a reduction program is not subject to any additional GHG
emission reduction requirements or required to incur any additional costs
under Colorado's generally applicable GHG emission reduction
requirements if the utility:
  • Files with the PUC a plan that contains approvable and
cost-effective programs that make progress toward the
GHG emission reduction targets and are projected to meet
either the applicable emission reduction targets or the
applicable retail rate impact;
  • Reports GHG emission reductions consistent with the
accounting methodology established by the division of
administration in the department of public health and
environment; and
  • Is either projected to meet the GHG emission reduction
targets in an applicable year or the PUC finds that the
projected costs to achieve the emission reductions have met
the applicable retail rate impact.
The bill gives the oil and gas conservation commission the
authority to authorize class VI injection permits, which authorize the deep
sequestration of carbon dioxide.

The bill creates the Colorado recycling and composting
infrastructure enterprise (enterprise) within the department of public
health and environment (department) to develop and modernize the
recycling and composting infrastructure in the state. The enterprise is
authorized to issue revenue bonds.
The bill creates the Colorado recycling and composting
infrastructure enterprise grant program (grant program) within the
department to provide grants to eligible entities to:

  • Create new or expand existing recycling, recovery, and
composting operations;
  • Create markets for recycled materials, including the use of
food service packaging as feedstock in the production of
new products; and
  • Facilitate recycling, composting, litter cleanup, and
education efforts concerning recycling and composting
practices.
The bill creates the Colorado recycling and composting
infrastructure enterprise board (enterprise board) to administer the grant
program and submit an annual report concerning the grant program.
The bill creates the Colorado recycling and composting
infrastructure enterprise grant program cash fund (cash fund) and requires
the enterprise board to award grants from the cash fund.
The bill allows the executive board to promulgate rules to
implement the grant program and requires the solid and hazardous waste
commission (commission) to promulgate rules establishing a process for
calculating the rates at which common types of food service packaging
are being recycled or composted in the state, based on recently available
data. On or before January 1, 2025, the commission must use the process
to calculate such rates. Thereafter, the commission must recalculate each
rate at least every 2 years. The enterprise board must evaluate the rates
and advise the commission regarding their accuracy.
The bill requires the enterprise to determine and impose a fee on
food service packaging that is initially sold or offered for sale in the state,
as follows:
  • On and after January 1, 2022, and until January 1, 2030, the
enterprise shall impose a fee in an amount to be determined
by the enterprise but which may not exceed three-tenths of
a cent on each unit of the food service packaging;
  • On and after January 1, 2030, and until January 1, 2035, if
the food service packaging is a type of food service
packaging for which the commission has calculated a
recycling or composting rate that is less than 50%, the
enterprise shall impose a fee in an amount to be determined
by the enterprise but which may not exceed six-tenths of a
cent on each unit of the food service packaging; and
  • On and after January 1, 2035, if the food service packaging
is a type of food service packaging for which the
commission has calculated a recycling or composting rate
that is less than 75%, the enterprise shall impose a fee in an
amount to be determined by the enterprise but which may
not exceed one cent on each unit of the food service
packaging.
The enterprise shall collect the fee from the distributor that initially
sells the food service packaging into the state. All money collected as fees
must be deposited into the cash fund.
The bill requires the commission to conduct an assessment of the
state's recycling and composting infrastructure on or before January 1,
2022, including examining the types of food service packaging being
collected, processed, recycled, or composted in the state.

Current law requires the air quality control commission (AQCC)
to adopt rules that will result in the statewide reduction of greenhouse gas

(GHG) emissions of 26% by 2025, 50% by 2030, and 90% by 2050, as
compared to 2005 emissions. Section 2 of the bill supplements these
requirements by:
  • Directing the AQCC to:
  • Consider the social cost of GHG emissions;
  • Require GHG reductions on a linear or more
stringent path; and
  • Finalize its implementing rules by March 1, 2022,
including specific net emission weight limits for
various emission sectors, subject to modification by
the AQCC, including through the use of a
multi-sector program;
  • Directing each wholesale generation and transmission
electric cooperative to file with the public utilities
commission a responsible energy plan that will achieve at
least an 80% GHG reduction by 2030 as compared to 2005
levels and specifying that if a plan is not filed, the
cooperative must achieve at least a 90% GHG reduction by
2030 as compared to 2005 levels; and
  • Directing each retail, wholesale, and municipal electric
utility and cooperative electric association to reduce its
GHG emissions by at least 95% between 2035 and 2040
and by 100% by 2040.
Section 3 adds GHG to the definition of regulated pollutant,
prohibits the AQCC from excluding GHG emissions from the
requirement to pay annual emission fees that are based on emissions of
regulated pollutants, gives the AQCC rule-making authority to set the
GHG annual emission fee, and authorizes the use of these fees for
outreach to and engagement of disproportionately impacted communities.
Section 4 requires the AQCC's GHG reporting rules to establish an
assumed emission rate representing the average regional fossil fuel
generation emission rate for electricity generated by a renewable energy
resource for which the associated renewable energy credit is not retired
in the year generated.
Section 5 creates an environmental justice ombudsperson position
and an environmental justice advisory board in the department of public
health and environment. The ombudsperson and the advisory board will
work collaboratively to promote environmental justice in Colorado.
Sections 2 and 5 specify processes for soliciting and facilitating input
from disproportionately impacted communities regarding proposed
AQCC rule changes and departmental decision-making.

In 2020, the Colorado general assembly created the rural economic
development initiative (REDI) grant program in the department of local
affairs (department). The department, in consultation with the office of
economic development, may provide grants to a new employer or the
expansion of an existing employer and for projects that create diversity

and resiliency in the local economies of rural communities. Or, if the
department determines that a rural community needs resources or
assistance because it has been impacted by a significant economic event
or an anticipated event that has been announced, the department may use
all or a portion of the money appropriated for the REDI grant program for
the purposes of the Rural Economic Advancement of Colorado Towns
(REACT) Act.
Section 2 of the bill appropriates $5 million to the department for
the REDI grant program. Section 1 ensures that the department will use
all of this appropriation for the purposes of the grants or REACT.

The bill directs the state treasurer to make an immediate, one-time
transfer of $40 million from the general fund to the energy fund
administered by the Colorado energy office (CEO). The CEO may use the

money for its ongoing programs plus the following enumerated purposes:
  • Making grants to the Colorado Clean Energy Fund and the
Colorado new energy improvement district totaling up to
$30 million and $3 million, respectively;
  • Increasing the amounts available through residential energy
upgrade loans by up to $2 million; and
  • Providing up to $5 million in additional funding to the
charge ahead Colorado program administered by the CEO.
The bill requires the CEO to periodically report on its expenditures
to the office of state planning and budgeting and the general assembly.
The bill appropriates $40 million from the energy fund to the CEO
to be used for the specified purposes.

The bill directs the state treasurer to make an immediate, one-time
transfer of $3 million from the general fund to the energy fund
administered by the Colorado energy office (CEO). The CEO may use the
money for making grants for the weatherization assistance program. The
bill requires the CEO to periodically report on its expenditures to the

office of state planning and budgeting and the general assembly.

The bill directs the state treasurer to make an immediate, one-time
transfer of $3 million from the general fund to the agriculture value-added
cash fund to augment the department of agriculture's ongoing advancing

Colorado's renewable energy and energy efficiency (ACRE3) program.
The bill also appropriates $2 million from the general fund to the
conservation services division within the department of agriculture for the
purpose of administering voluntary soil health programs.
The bill requires the department of agriculture to periodically
report on its expenditures to the office of state planning and budgeting
and the general assembly.

The bill directs the public utilities commission (PUC) to establish
energy savings targets and approve plans under which investor-owned

electric utilities will promote the use of energy-efficient electric
equipment in place of less efficient fossil-fuel-based systems. This
directive would substantially follow the model of existing demand-side
management (DSM) policies established by the PUC.
Section 1 of the bill declares that DSM has provided substantial
economic and environmental benefits, and the PUC's administration of
DSM has successfully carried out legislative intent; therefore, the PUC
is directed to implement the beneficial electrification programs and plans
using the same approach.
Sections 2 and 4 specify the parameters for these programs and
plans, including the types of systems and appliances that are eligible for
installation, the criteria to be considered when the PUC evaluates plan
proposals, the implementation of plans, utility cost-recovery mechanisms,
and performance incentives. Section 4 also requires that any installation,
upgrade, or new construction under a beneficial electrification program
must be performed either by utility employees or by qualified,
Colorado-licensed contractors.
Section 3 directs the PUC to apply current standards for
measurement of the social cost of carbon emissions, including methane,
in evaluating the cost, benefit, or net present value of utility plans and
proposals for beneficial electrification.
Section 5 makes a conforming amendment.

The bill creates new sources of dedicated funding and new state
enterprises to enable the planning, funding, development, construction,
maintenance, and supervision of a sustainable transportation system by
preserving, improving, and expanding existing transportation
infrastructure, developing the modern infrastructure needed to support the
widespread adoption of electric motor vehicles, and mitigating adverse
environmental and health impacts of transportation system use as follows:
  • Section 6 of the bill creates the community access
enterprise within the Colorado energy office (CEO) for the
purpose of supporting the widespread and equitable
adoption of electric motor vehicles and electric alternatives
to motor vehicles in an equitable manner. The community
access enterprise is authorized to impose a community
access retail delivery fee to fund its business purpose. The
governance and powers and duties of the community access
enterprise are specified.
  • Section 7 makes various general fund transfers to the state
highway fund, the highway users tax fund (HUTF), and the
multimodal transportation and mitigation options fund,
including limited contingent transfers of a portion of any
additional general fund revenue made available due to the
restoration of the excess state revenues cap (Referendum C
cap) by Section 8.
  • Section 8 restores the Referendum C cap, which the general
assembly reduced in 2017, to its maximum voter-approved
level.
  • Section 11 creates the clean fleet enterprise within the
department of public health and environment (CDPHE) for
the purpose of incentivizing and supporting the use of
electric motor vehicles and other clean fleet technologies
by owners and operators of motor vehicle fleets. The clean
fleet enterprise is authorized to impose a clean fleet retail
delivery fee to be paid by the purchaser of tangible
personal property delivered to the purchaser by motor
vehicle and a clean fleet per ride fee to be paid by a
transportation network company (TNC) on each ride
offered and accepted by the TNC to fund the clean fleet
enterprise's business purpose. The governance and powers
and duties of the clean fleet enterprise are specified.
  • Section 25 requires the department of revenue (DOR) to
collect the per ride fees imposed by the clean fleet
enterprise and the nonattainment area air pollution
mitigation enterprise as authorized by sections 11 and 50
Both fees are first imposed for rides offered and accepted
in state fiscal year (FY) 2022-23 and are annually adjusted
for consumer price index (CPI) inflation thereafter.
  • Section 26 indexes the existing $50 registration fee
imposed on electric motor vehicles to national highway
construction cost index (NHCCI) inflation and imposes
additional electric motor vehicle road usage equalization
fees on battery electric motor vehicles at a specified level
and on plug-in hybrid electric motor vehicles at a lower
level, with both additional fees being phased in on a set
schedule from state FYs 2022-23 through 2031-32 and
thereafter indexed to NHCCI inflation. Section 26 also
imposes a commercial electric motor vehicle fee. The
increase and new fee revenue is credited to the HUTF for
allocation to the state, counties, and municipalities; except
that 40% of the revenue generated by inflation indexing of
the existing $50 registration fee is credited to the electric
vehicle grant fund and 30% of the revenue generated by the
commercial electric motor vehicle fee is credited to the
state highway fund for freight-related projects. In 2026,
specified executive agencies must jointly review the fees
and make recommendations to the transportation legislation
review committee of the general assembly as to whether the
fees should be adjusted to ensure continued equalization of
the average aggregate amount of registration fees and
motor fuel charges annually paid by owners of electric
motor vehicles and owners of motor vehicles powered
exclusively by internal combustion engines.
  • Section 33 imposes road usage fees on gasoline and diesel
purchases that are phased in from state FYs 2022-23
through 2031-32 and thereafter indexed to NHCCI
inflation, with the road usage fees also being adjusted
beginning in state FY 2032-33 in a manner calculated to
generate the same amount of additional revenue as would
be generated by indexing the existing state excise taxes
imposed on gasoline and diesel to construction cost
inflation. The fee revenue is credited to the HUTF for
allocation to the state, counties, and municipalities.
  • Section 33 also imposes a retail delivery fee on retail
deliveries by motor vehicle that include tangible personal
property subject to the state sales tax, requires the fee to be
collected from the purchaser by the retailer, and requires
simultaneous collection of community access, clean fleet,
bridge and tunnel, clean transit, and air pollution mitigation
retail delivery fees imposed, respectively, by the
community access, clean fleet, statewide bridge and tunnel,
clean transit, and nonattainment area air pollution
mitigation enterprises. The fees are first collected in state
FY 2022-23 and are annually adjusted for CPI inflation
thereafter. Retail delivery fee revenue is credited to the
HUTF for allocation to the state, counties, and
municipalities and to the multimodal transportation and
mitigation options fund and each enterprise's retail delivery
fee revenue is collected by DOR on behalf of and credited
to the cash fund controlled by the enterprise.
  • Sections 43, 44, and 46 change the name of the statewide
bridge enterprise to the statewide bridge and tunnel
enterprise, authorize the enterprise to complete tunnel
projects, and authorize the enterprise to impose a bridge
and tunnel impact fee on diesel fuel and a bridge and tunnel
retail delivery fee to fund its business purpose. The bridge
and tunnel impact fee is phased in from state FYs 2022-23
through 2031-32 and thereafter indexed to NHCCI
inflation.
  • Section 45 indexes the existing $2 short-term daily vehicle
rental fee to CPI inflation and, on or after July 1, 2022,
requires a car sharing program to collect the daily vehicle
rental fee for any short-term vehicle rental of 24 hours or
longer that is enabled by the car sharing program.
  • Sections 47 through 49 change the name of the
multimodal transportation options fund to the multimodal
transportation and mitigation options fund and make
greenhouse gas mitigation projects eligible for funding
from the fund.
  • Section 50 creates the clean transit enterprise within the
department of transportation (CDOT) for the purpose of
supporting clean public transit through electrification
planning efforts, facility upgrades, fleet motor vehicle
replacement, and construction and development of
associated electric motor vehicle charging and fueling
infrastructure. The clean transit enterprise is authorized to
impose a clean transit retail delivery fee of up to a specified
amount to fund its business purpose. The governance and
powers and duties of the clean transit enterprise are
specified. Section 50 also creates the nonattainment area air
pollution mitigation enterprise for the purpose of mitigating
transportation-related emissions in ozone nonattainment
areas. The nonattainment area air pollution mitigation
enterprise is authorized to impose air pollution mitigation
per ride and retail delivery fees to fund its business
purpose.
Section 1 makes legislative findings and declarations that explain
the purpose of the bill and the reasons why it includes the new sources of
dedicated funding and new state enterprises that it does. Section 2
clarifies that an existing fee may be used to fund the functions of the
freight mobility and safety branch created in section 27. Sections 3 and
4 respectively clarify that the clean fleet enterprise operates as a type 1
agency within CDPHE and that the clean transit enterprise and the
nonattainment area air pollution mitigation enterprise operate as type 1
agencies within CDOT.
Section 5 requires the CEO and CDPHE, after consultation with
CDOT, to jointly and annually prepare a report for specified legislative
committees that details the progress made toward the electric motor
vehicle adoption goals set forth in the Colorado Electric Vehicle Plan
2020 and the transportation sector greenhouse gas pollution reduction
goals set forth in the Colorado Greenhouse Gas Pollution Reduction
Roadmap. Section 5 also specifies a methodology to be used by the
CEO, CDOT, and CDPHE to estimate the social costs of greenhouse gas
pollution.
Sections 9, 32, 42, and 51 effectuate the repeal of the requirement
that a ballot question seeking approval for the issuance of transportation
revenue anticipation notes be submitted to the voters of the state at the
November 2021 statewide election.
Section 10 requires CDOT to comply with specified transparency
and contractor short-listing requirements when using the integrated
project delivery method of contract procurement for a public project.
Section 14 clarifies that sales and use tax is not levied on the retail
delivery fees imposed by or as authorized by the bill. Sections 16
through 21 provide legal authority for collection under an existing
multistate agreement of the motor fuel road usage and bridge and tunnel
impact fees imposed by or as authorized by the bill. Section 22 requires
the public utilities commission to conduct a certificated taxi carrier parity
study.
Section 27 creates the freight mobility and safety branch in
CDOT's transportation development division. Section 28 requires CDOT
and metropolitan planning organizations to engage in an enhanced level
of planning, analysis, community engagement, and monitoring with
respect to transportation capacity projects and specifies what that entails
and also requires CDOT to conduct a road usage charge study and an
autonomous vehicle study. Section 29 allows some of the general fund
money transferred to the state highway fund pursuant to section 7 to be
used for multimodal transportation projects. Section 31 specifies the
manner in which revenue credited to the HUTF as required by the bill is
allocated and expended.
Sections 34 through 41 authorize a transportation planning
organization (TPO), subject to territorial restrictions and TPO member
jurisdiction approval requirements, to exercise the powers of a regional
transportation authority (RTA). Among other powers, the powers of a
RTA include the power to impose various charges, fees, and, with voter
approval, visitor benefit, sales, and use taxes to generate transportation
funding for the purpose of financing, constructing, operating, and
maintaining regional transportation systems.
Any additional transportation funding obtained by a TPO
exercising the power of a RTA is intended to supplement and not supplant
state and federal transportation funding allocated within the boundaries
of the TPO. Therefore, the transportation commission and CDOT are
prohibited from taking such additional transportation funding into
account when determining the amount of state and federal transportation
funding to be allocated within the boundaries of a TPO, and CDOT, when
submitting its annual proposed budget allocation plan, is required to
provide evidence that the proposed allocation of state and federal
transportation funding within the boundaries of any TPO that has
obtained such additional transportation funding has not been reduced in
any way on account of the additional transportation funding.
Section 45 reduces the amount of each road safety surcharge
imposed on motor vehicle registration for registration periods beginning
on or after January 1, 2022, but before January 1, 2024, by $5.55.

Section 1 of the bill declares that customer-sited renewable energy
generation facilities (distributed generation) such as rooftop solar panels,
together with increased storage capacity and enhanced master meter
operations, can make important contributions toward meeting Colorado's
declared goal of reducing greenhouse gas emissions while providing a
reliable, adaptable supply of electricity for homes, businesses, and the
rapidly increasing numbers of electric vehicles.
Sections 3 and 5 remove most of the existing limitations on the
size of distributed generation facilities, which currently cannot exceed
120% of a customer's historical annual usage, to qualify for renewable
energy credits. Section 3 also expands an existing exemption from
regulation as a public utility to include persons who sell excess power
from distributed generation located anywhere on their property or on
property owned or leased by others in a master meter operation, e.g., an
apartment building or mobile home park. Section 4 grants master meter
operators (MMOs) that sell power from distributed generation a limited
exemption from the general requirement not to charge their end users any
amount above what they are billed for electricity supplied by the serving
electric utility. MMOs may retain refunds, rebates, rate reductions, net
metering credits, and similar reductions offered by the serving utility in
its net metering program but may not charge end users at a rate higher
than the serving utility's otherwise applicable rate for that class of utility
customer.
Section 5 requires a qualifying retail utility to allow, and to adopt
standards for the approval of, customer-owned meter collar adapters in
residential installations. The public utilities commission (PUC) retains
authority to resolve any disputes concerning the standards or their
application in specific cases. Section 2 defines a meter collar adapter as
a device installed between the electric meter and the meter socket box that
allows the customer to interconnect power from on-site sources.
Section 5 also:
  • Requires qualifying retail utilities, under the standard offer
to purchase renewable energy credits, to purchase energy
produced from any renewable energy resources rather than
exclusively solar energy resources;
  • Doubles the allowable size of on-site renewable energy
installations under the standard offer, from 500 kilowatts to
one megawatt;
  • Narrows the requirements for small hydroelectric facilities
that qualify as renewable energy resources to exclude those
that require the construction of new dams or reservoirs;
  • Adds renewable energy storage as an eligible energy
resource under the renewable energy standard and defines
renewable energy storage as a facility that stores energy
that is derived only from renewable energy resources;
  • Allows a customer to carry forward monthly bill credits
from distributed generation indefinitely, at any service
address within a qualifying retail utility's service territory,
unless the customer chooses to be reimbursed annually; and
  • Directs the PUC to adopt rules to accommodate the
aggregation and interconnection of retail distributed
generation, including the pooling of renewable energy
resources under a master meter or similar arrangement and
the allocation of credits among customers on different rate
schedules.

Section 1 of the bill defines a gas distribution utility (GDU) as
a gas public utility with more than 90,000 retail customers. The bill
requires each GDU to file a clean heat plan (plan) with the public utilities
commission (PUC). A plan must demonstrate how the GDU will use
clean heat resources to meet clean heat targets (targets) established in the
bill. The targets are a 5% reduction below 2015 greenhouse gas (GHG)

emission levels by 2025 and 20% below 2015 GHG emission levels by
2030. Section 1 makes a legislative finding that meeting these targets will
facilitate the electric generating utility sector's compliance with the state's
GHG emission reduction goals by reducing GDUs' carbon dioxide and
methane emissions.
A plan may use qualified offsets as one method to meet the targets.
A GDU that uses only clean heat resources in its plan to meet the targets
is not subject to any other GHG emission reduction requirements during
the 5-year period covered by the plan. If a GDU does not file a plan, the
air quality control commission (AQCC) will adopt rules to require the
GDU to meet a 30% GHG emission reduction by 2035 when compared
to 2015 levels.
The PUC will initiate a rule-making proceeding by August 1,
2021, to adopt rules that establish a cost cap for each GDU's compliance
with its plan. The cost cap is 2% of gas bills for all of a GDU's
full-service customers. A plan that costs equal to or less than the cost cap
and uses clean heat resources to the maximum practicable extent need not
meet the targets. A plan that uses only clean heat resources and meets the
targets need not comply with the cost cap. The PUC is directed to approve
a plan if the PUC finds that doing so is in the public interest.
A municipal GDU must file a plan that demonstrates a 20% GHG
emission reduction by 2030 compared with 2015 levels. Small GDUs may
file a plan, which is subject to the cost cap and must contain its own
targets.
Section 2 requires the AQCC to initiate a rule-making proceeding
by January 1, 2022, to define qualified offsets that plans may use to meet
a target. The AQCC will start another rule-making proceeding by January
1, 2029, to determine mass-based GHG emission reduction goals for
plans for 2035, 2040, 2045, and 2050.
Section 3 gives the oil and gas conservation commission authority
over class VI injection wells used for sequestration of GHG, including
through the issuance of permits.

Section 1 of the bill authorizes the allocation of up to $250,000 per
year of the money that the commission receives from the public utilities
commission fixed utility fund for outside consultants and experts.
Section 2 requires an intervenor in a commission matter to
disclose any financial relationship between that intervenor and any other
intervenor in the matter.
Section 3 directs the commission to adopt rules to require the
commission, when considering any matter before the commission, to
improve equity and prioritize disproportionately impacted communities.
Under current law, the annual fee collected from each regulated
public utility is capped at 0.25% of the public utility's gross instrastate
utility operating revenue for the preceding calendar year; except that the
annual fee collected from a public utility that is a telephone corporation
is capped at 0.20% of the telephone corporation's gross intrastate utility
operating revenue for the preceding calendar year. Section 4 removes the
cap on annual fees collected from regulated public utilities.
Section 5 requires the commission to promulgate rules requiring
qualifying retail utilities subject to the renewable energy standard to retire
renewable energy credits in a manner that benefits cities, counties, and
businesses in the state and is consistent with timely attainment of the
state's clean energy and climate goals.
Section 6 requires the commission to promulgate rules to establish
fixed rates for net metering credits provided to community solar garden
subscribers on their electric bills.
With respect to the retirement of any electric generating facility,
section 7 requires an investor-owned electric utility to submit, and the
commission to consider, net present value of revenue requirement
projections, one based on using Colorado energy impact bonds and one
based on not using Colorado energy impact bonds.
Section 8 requires the commission, in approving a resource plan,
to include the social cost of carbon dioxide with regard to a portfolio's net
present value of revenue requirements.
Section 9 requires each regulated public utility that uses resource
planning software to provide commission staff with licenses to the
software and with model assumptions used for the software.
Section 10 expands the time for the commission to issue a decision
on an application that is not accompanied by prefiled testimony and
exhibits from 210 days to 250 days after the commission has deemed the
application complete.

Section 1 of the bill repeals a moratorium on changing a ratio for
valuation for assessment (assessment rate), which is the percentage
applied to a property's actual value to determine the taxable amount upon
which a mill levy is imposed. Section 2 classifies agricultural property,
lodging property, and renewable energy production property as new
subclasses of nonresidential property. The assessment rate for agricultural
property and renewable energy production property is temporarily
reduced from 29% to 26.4% for the next 2 property tax years. The law is
restructured so that, if a proposed initiative to reduce the assessment rate
for nonresidential property is approved by voters, then it would only
apply to lodging property.
Section 3 classifies multi-family residential real property as a new
subclass of residential real property. The law is restructured so that, if a
proposed initiative to reduce the residential assessment rate is approved
by voters, then it would only apply to multi-family residential real
property. If the initiative fails, then, under section 4, the assessment rate
for multi-family residential real property is temporarily reduced from
7.15% to 6.8% for the next 2 property tax years. The assessment rate for
all residential real property other than multi-family property is
temporarily reduced from 7.15% to 6.95% for the next 2 property tax
years.
Sections 5 through 8 expand the property tax deferral program to
allow any person to defer the payment of the portion of real property
taxes that exceed the tax-growth cap, which is an amount equal to the
average of the person's real property taxes paid for the preceding 2
property tax years for the same homestead, increased by 4.6%. The total
taxes that a taxpayer may defer under this authorization is $10,000, and
the taxpayer is treated like a person called into military service for
purposes of the equity the person must have in the homestead to qualify
for deferral and surviving-spouse eligibility.