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Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 26-0134.03 Rebecca Bayetti x4348 HOUSE BILL 26-1030
House Committees Senate Committees
Energy & Environment
A BILL FOR AN ACT
CONCERNING FACILITATION OF DATA CENTER DEVELOPMENT WHILE101
SUPPORTING UTILITY RESOURCES , AND , IN CONNECTION102
THEREWITH, CREATING THE "COLORADO DATA CENTER103
WORKFORCE, CLEAN ENERGY, GRID MODERNIZATION, AND104
CONSUMER AND ENVIRONMENTAL PROTECTION ACT".105
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://leg.colorado.gov.)
The bill creates the data center development and incentive program
(program) operated by the Colorado data center development authority
HOUSE SPONSORSHIP
Valdez and Duran,
SENATE SPONSORSHIP
Mullica,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
(authority), which is newly created in the Colorado office of economic
development (office) (section 1 of the bill). The authority consists of 9
members, as follows:
! 2 members appointed by the governor with the consent of
the senate;
! The director of the Colorado energy office or the director's
designee;
! One member who has experience in water projects or water
resource management, appointed by the president of the
senate;
! One member who has experience in clean and renewable
energy, appointed by the speaker of the house of
representatives;
! 2 members who have experience in data center
development, with one member appointed by the speaker
of the house of representatives and one member appointed
by the president of the senate;
! One member representing a statewide organization that
represents workers in trade crafts who construct data
centers, appointed by the speaker of the house of
representatives; and
! One member representing a statewide organization that
represents contractors who construct data centers,
appointed by the president of the senate.
To incentivize efficient data center development, the program
allows a 100% state sales and use tax exemption on qualified purchases
to the operator of a certified data center. To be eligible for certification,
the operator of the data center, or a data center operator collectively with
participating data center tenants, must:
! Have initiated a preliminary consultation with the utility
that will provide electricity for the data center project
regarding interconnection feasibility, capacity, and
infrastructure requirements;
! Commit to making a $250 million minimum investment in
data center infrastructure within 5 years;
! Commit to creating new full-time jobs, including
employees and long-term service and maintenance
positions, that satisfy specified criteria and breaking ground
on the data center project within 2 years of obtaining
certification;
! Commit to complying, and ensure that the utility that
provides electricity to the data center also complies, with
craft labor requirements, apprenticeship utilization
requirements, and prevailing wage requirements; and
! Commit to obtaining certification under one of several
HB26-1030-2-
energy efficiency standards, implementing water
stewardship strategies that optimize operational water
management, ensuring that all backup powe r generation
associated with the data center project meets specified
requirements, and consulting with the department of natural
resources.
To obtain certification, a data center operator must apply to the
authority in a form and manner to be determined by the authority. The
authority is required to review a data center operator's application for
certification and may award certification to a data center operator that has
demonstrated that it will satisfy the certification criteria (section 1).
A data center operator that obtains certification for a data center
project is eligible for a 100% state sales and use tax exemption on the
purchase and use of qualified data center infrastructure and systems for
20 years from the date that the data center project was certified, so long
as the data center satisfies ongoing post-certification requirements and
submits annual compliance reports to the authority. As long as the data
center meets post-certification requirements as demonstrated in the annual
compliance reports, a data center operator of a certified data center may
apply to the authority for an extension of the sales and use tax exemption
for an additional 10 years. If the authority determines that a data center
operator is not fulfilling its obligations and commitments to retain
certification, the authority may revoke the certification and the data center
operator is required to repay the state for the sales and use tax benefits
that it received (sections 1 and 5). The exemption for a certified data
center does not apply to local sales and use taxes unless the exemption is
expressly included at the time of adoption or amendment of the local sales
tax ordinance or resolution (section 4).
The bill allows a utility regulated by the public utilities
commission (commission) to submit a targeted resource acquisition
application to the commission to propose methods of meeting emerging
large-load customer needs. The bill also specifies how a utility may
finance resource and infrastructure needs in connection with emerging
large-load customers (section 3).
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add part 8 to article2
48.5 of title 24 as follows:3
PART 84
DATA CENTER DEVELOPMENT5
HB26-1030-3-
AND INCENTIVES1
24-48.5-801. Short title. 2
THE SHORT TITLE OF THIS PART 8 IS THE "COLORADO DATA CENTER3
WORKFORCE, CLEAN ENERGY, GRID MODERNIZATION, AND CONSUMER4
AND ENVIRONMENTAL PROTECTION ACT".5
24-48.5-802. Legislative declaration. 6
(1) THE GENERAL ASSEMBLY FINDS, DETERMINES, AND DECLARES7
THAT:8
(a) D ATA CENTERS ARE ESSENTIAL CRITICAL INFRASTRUCTURE9
POWERING THE MODERN DIGITAL ECONOMY;10
(b) DATA CENTERS WILL DRIVE COMMUNITY ACCESS TO SOLAR AND11
BATTERY STORAGE;12
(c) COLORADO FACES INTERRELATED CHALLENGES IN:13
(I) A CHIEVING ITS CLEAN ENERGY AND GREENHOUSE GAS14
REDUCTION GOALS WHILE MAINTAINING GRID RELIABILITY;15
(II) MODERNIZING GRID INFRASTRUCTURE FOR ELECTRIFICATION16
AND PROJECTED LOAD GROWTH;17
(III) E NSURING EQUITABLE DEVELOPMENT ACROSS URBAN ,18
SUBURBAN, AND RURAL COMMUNITIES; AND19
(IV) C REATING COMMUNITY BENEFITS THROUGH EXPANDING20
SOLAR AND BATTERY STORAGE PROGRAMS, ENSURING ALL COLORADANS21
HAVE ACCESS TO CLEAN ENERGY GENERATION AND STORAGE;22
(d) T HE COLORADO ELECTRIC TRANSMISSION AUTHORITY HAS23
IDENTIFIED TRANSMISSION NEEDS REQUIRING AN INVESTMENT OF24
APPROXIMATELY FOUR BILLION FIVE HUNDRED MILLION DOLLARS BY 204525
TO MODERNIZE, ENHANCE RELIABILITY, AND INTEGRATE CLEAN ENERGY;26
AND27
HB26-1030-4-
(e) DATA CENTERS REPRESENT A TRANSFORMATIVE OPPORTUNITY1
TO:2
(I) C REATE HIGH -WAGE EMPLOYMENT ACROSS SECTORS ,3
INCLUDING:4
(A) T ECHNOLOGY FOCUSED ROLES IN OPERATIONS ,5
CYBERSECURITY , NETWORK ENGINEERING , AND SYSTEMS6
ADMINISTRATION;7
(B) CONSTRUCTION AND SKILLED TRADES OPPORTUNITIES TO MEET8
THE FAST-GROWING DEMAND FOR DATA CENTER BUILDS; AND9
(C) E NERGY CAREERS IN GENERATION , TRANSMISSION ,10
RENEWABLE ENERGY, AND GRID PROJECTS;11
(II) ACCELERATE GRID MODERNIZATION THROUGH:12
(A) S TRATEGIC PRIVATE INVESTMENT IN TRANSMISSION AND13
DISTRIBUTION THAT BENEFITS ALL RATEPAYERS;14
(B) THE DEVELOPMENT OF NEW GENERATION, BATTERY STORAGE,15
AND FLEXIBILITY TECHNOLOGY TO HELP BALANCE SUPPLY AND DEMAND;16
(C) INCREASED HARDENING AGAINST EXTREME WEATHER, CYBER17
THREATS, AND DISRUPTIONS; AND18
(D) F INANCING MECHANISMS THAT SPEED INFRASTRUCTURE19
DEPLOYMENT;20
(III) E MPHASIZE SOLAR ENERGY AND BATTERY STORAGE21
SOLUTIONS, WHICH BENEFIT THE COMMUNITY BY:22
(A) A DDING DISPATCHABLE CAPACITY WITH STORAGE , WHICH23
IMPROVES PEAK FLEXIBILITY AND RELIABILITY;24
(B) O FFERING FAST, LOW-COST, AND CLEAN ENERGY , WHICH IS25
CRITICAL TO MEET RISING ELECTRICITY DEMAND;26
(C) BOOSTING RESILIENCY, PROVIDING BACKUP POWER, LOWERING27
HB26-1030-5-
PEAK ENERGY COSTS, AND INCREASING THE VALUE OF WIND AND SOLAR1
ENERGY TECHNOLOGY;2
(D) R EDUCING FUTURE TRANSMISSION COSTS AND REDUCING3
RELIANCE ON NEW GAS INFRASTRUCTURE; AND4
(E) R EDUCING HOUSEHOLD ELECTRICITY BILLS BY5
APPROXIMATELY FIFTEEN PERCENT WITH COMBINED SOLAR AND BATTERY6
SYSTEMS;7
(IV) E NCOURAGE A TRANSITION TO CLEAN AND RENEWABLE8
ENERGY THROUGH:9
(A) A NCHORING NEW DISPATCHABLE RENEWABLE AND CLEAN10
ENERGY RESOURCES;11
(B) A CCELERATING THE DEPLOYMENT OF ADVANCED CLEAN12
ENERGY TECHNOLOGY;13
(C) F OLLOWING STRICT INTERNATIONAL BUILDING ENERGY14
EFFICIENCY STANDARDS;15
(D) R ELYING ON INNOVATIVE , CLEAN , NON -CARBON BACKUP16
POWER GENERATION SOURCES; AND17
(E) I MPLEMENTING STATE -OF-THE-ART, WATER -EFFICIENT,18
CLOSED-LOOP COOLING SYSTEMS; AND19
(V) STRENGTHEN LOCAL AND COMMUNITY TAX BASES THROUGH:20
(A) S TABLE PROPERTY TAX FUNDING FOR SCHOOLS , LOCAL21
SERVICES, AND INFRASTRUCTURE;22
(B) S ALES TAX FROM ELECTRICITY USE AND OPERATIONAL23
EXPENDITURES;24
(C) S UBSTANTIAL CAPITAL INVESTMENT IN PROPERTY AND25
EQUIPMENT; AND26
(D) E CONOMIC MULTIPLIERS FROM CONSTRUCTION , SUPPLY27
HB26-1030-6-
CHAINS, AND OPERATIONS.1
(2) THE GENERAL ASSEMBLY FURTHER FINDS AND DECLARES THAT2
THE PURPOSE OF THE COLORADO DATA CENTER WORKFORCE, CLEAN3
ENERGY, GRID MODERNIZATION, AND CONSUMER AND ENVIRONMENTAL4
PROTECTION ACT IS TO:5
(a) D RIVE THE EXPANSION OF COMMUNITY ACCESS TO SOLAR6
GENERATION AND BATTERY STORAGE STATEWIDE;7
(b) IMPROVE COMPETITIVENESS WITH TAX INCENTIVES TO ATTRACT8
DATA CENTER INVESTMENT;9
(c) A CCELERATE GRID MODERNIZATION AND INFRASTRUCTURE10
THROUGH PRIVATE CONTRIBUTIONS;11
(d) CREATE HIGH-WAGE TECHNOLOGY AND CONSTRUCTION JOBS12
TO STRENGTHEN THE WORKFORCE;13
(e) E NSURE RESPONSIBLE DEVELOPMENT WITH LOCAL14
EMPLOYMENT AND COMMUNITY BENEFITS;15
(f) S TRENGTHEN LOCAL ECONOMIES , ESPECIALLY IN RURAL16
COMMUNITIES AND COMMUNITIES IN TRANSITION;17
(g) A DVANCE STATE POLICY GOALS WHILE MAINTAINING18
RESOURCE RELIABILITY AND PROTECTING RATEPAYERS; AND19
(h) ENHANCE LEADERSHIP IN TECHNOLOGICAL INNOVATION, CLEAN20
AND RENEWABLE ENERGY, AND SUSTAINABLE GROWTH.21
24-48.5-803. Definitions.22
AS USED IN THIS PART 8, UNLESS THE CONTEXT OTHERWISE23
REQUIRES:24
(1) "CERTIFICATION" MEANS RECOGNITION GRANTED TO A DATA25
CENTER BY THE AUTHORITY PURSUANT TO SECTION 24-48.5-807, UPON A26
DETERMINATION THAT THE DATA CENTER MEETS THE REQUIREMENTS27
HB26-1030-7-
SPECIFIED IN SECTION 24-48.5-806. 1
(2) "CERTIFIED DATA CENTER" MEANS A DATA CENTER THAT HAS2
RECEIVED CERTIFICATION.3
(3) "C OLORADO DATA CENTER DEVELOPMENT AUTHORITY " OR4
"AUTHORITY" MEANS THE COLORADO DATA CENTER DEVELOPMENT5
AUTHORITY CREATED IN SECTION 24-28.5-804.6
(4) "COMMISSION" MEANS THE PUBLIC UTILITIES COMMISSION OF7
THE STATE OF COLORADO CREATED IN SECTION 40-2-101.8
(5) "D ATA CENTER " MEANS A FACILITY WITH ONE OR MORE9
BUILDINGS, INCLUDING CORRESPONDING ELECTRICAL INFRASTRUCTURE,10
THAT:11
(a) H OUSES INFORMATION TECHNOLOGY EQUIPMENT USED FOR12
DATA PROCESSING, DATA STORAGE, OR TELECOMMUNICATIONS; AND13
(b) H AS A PRIMARY FUNCTION OF DELIVERING INFORMATION14
TECHNOLOGY SERVICES, INCLUDING:15
(I) P ROVIDING DATA STORAGE , PROCESSING , AND TRANSPORT16
SERVICES;17
(II) SUPPORTING THE DELIVERY OF CLOUD COMPUTING SERVICES;18
(III) PROVIDING NETWORK CONNECTIVITY SERVICES; AND19
(IV) SUPPORTING ARTIFICIAL INTELLIGENCE, MACHINE LEARNING,20
OR SIMILAR COMPUTATIONAL SERVICES.21
(6) "DATA CENTER OPERATOR" MEANS A PERSON THAT OWNS OR22
OPERATES A DATA CENTER IN THE STATE.23
(7) "DATA CENTER TENANT " MEANS A CLIENT OR COLOCATION24
TENANT OR LICENSEE OF A DATA CENTER , INCLUDING AN ENTITY THAT25
LEASES, RENTS, OR OTHERWISE ENTERS INTO A CONTRACTUAL AGREEMENT26
FOR THE USE OF DATA CENTER SPACE OR SERVICES , OR OTHERWISE27
HB26-1030-8-
COLOCATES INFORMATION TECHNOLOGY EQUIPMENT WITHIN A DATA1
CENTER. 2
(8) "DEPARTMENT" MEANS THE DEPARTMENT OF REVENUE.3
(9) "O FFICE" MEANS THE OFFICE OF ECONOMIC DEVELOPMENT4
CREATED IN SECTION 24-48.5-101.5
(10) "PROGRAM" MEANS THE DATA CENTER DEVELOPMENT AND6
INCENTIVE PROGRAM CREATED IN THIS PART 8.7
(11) "QUALIFIED PURCHASE" MEANS THE PURCHASE, ON OR AFTER8
JANUARY 1, 2027, OF:9
(a) INFORMATION TECHNOLOGY INFRASTRUCTURE, INCLUDING:10
(I) COMPUTER EQUIPMENT OR SOFTWARE USED IN THE OPERATION11
OF OR FOR THE BENEFIT OF A CERTIFIED DATA CENTER;12
(II) SOFTWARE SERVERS, ROUTERS, CONNECTIONS, MONITORING13
AND SECURITY SYSTEMS, AND OTHER ENABLING MACHINERY, EQUIPMENT,14
SOFTWARE, AND HARDWARE, REGARDLESS OF WHETHER THE PROPERTY IS15
AFFIXED TO OR INCORPORATED INTO REAL PROPERTY;16
(III) DATA STORAGE SYSTEMS; AND17
(IV) NETWORK INFRASTRUCTURE; OR 18
(b) D ATA CENTER INFRASTRUCTURE AND TRANSMISSION AND19
GENERATION SYSTEM ASSETS, INCLUDING:20
(I) ENVIRONMENTAL CONTROL SYSTEMS;21
(II) ON-SITE ENERGY STORAGE SYSTEMS; AND22
(III) ON-SITE RENEWABLE AND CLEAN ENERGY SYSTEMS. 23
(12) "R ENEWABLE AND CLEAN ENERGY " MEANS ELECTRICITY24
GENERATED FROM:25
(a) S OURCES MEETING THE DEFINITION OF CLEAN ENERGY , AS26
DEFINED IN SECTION 30-20-1202 (2); OR27
HB26-1030-9-
(b) S OURCES QUALIFYING AS ELIGIBLE ENERGY RESOURCES1
PURSUANT TO SECTION 40-2-124.2
24-48.5-804. Colorado data center development authority -3
office of economic development - creation - membership - powers and4
duties - report.5
(1) THE COLORADO DATA CENTER DEVELOPMENT AUTHORITY IS6
CREATED IN THE OFFICE.7
(2) (a) THE AUTHORITY CONSISTS OF NINE MEMBERS AS FOLLOWS:8
(I) T WO MEMBERS APPOINTED BY THE GOVERNOR WITH THE9
CONSENT OF THE SENATE;10
(II) THE DIRECTOR OF THE COLORADO ENERGY OFFICE CREATED11
IN SECTION 24-38.5-101 OR THE DIRECTOR'S DESIGNEE;12
(III) ONE MEMBER WHO HAS EXPERIENCE IN WATER PROJECTS OR13
WATER RESOURCE MANAGEMENT, APPOINTED BY THE PRESIDENT OF THE14
SENATE;15
(IV) O NE MEMBER WHO HAS EXPERIENCE IN CLEAN AND16
RENEWABLE ENERGY , APPOINTED BY THE SPEAKER OF THE HOUSE OF17
REPRESENTATIVES;18
(V) T WO MEMBERS WHO HAVE EXPERIENCE IN DATA CENTER19
DEVELOPMENT, WITH ONE MEMBER APPOINTED BY THE SPEAKER OF THE20
HOUSE OF REPRESENTATIVES AND ONE MEMBER APPOINTED BY THE21
PRESIDENT OF THE SENATE;22
(VI) ONE MEMBER REPRESENTING A STATEWIDE ORGANIZATION23
THAT REPRESENTS WORKERS IN TRADE CRAFTS WHO CONSTRUCT DATA24
CENTERS , APPOINTED BY THE SPEAKER OF THE HOUSE OF25
REPRESENTATIVES; AND26
(VII) ONE MEMBER REPRESENTING A STATEWIDE ORGANIZATION27
HB26-1030-10-
THAT REPRESENTS CONTRACTORS WHO CONSTRUCT DATA CENTERS ,1
APPOINTED BY THE PRESIDENT OF THE SENATE.2
(b) (I) E XCEPT AS PROVIDED IN SUBSECTION (2)(b)(II) OF THIS3
SECTION FOR THE INITIAL TERMS OF THE INITIALLY APPOINTED MEMBERS,4
ALL APPOINTED MEMBERS OF THE AUTHORITY SERVE FOUR-YEAR TERMS.5
MEMBERS OF THE AUTHORITY ARE ELIGIBLE FOR REAPPOINTMENT FOR6
CONSECUTIVE TERMS.7
(II) (A) O NE OF THE MEMBERS INITIALLY APPOINTED BY THE8
GOVERNOR AND TWO OF THE MEMBERS INITIALLY APPOINTED BY THE9
SPEAKER OF THE HOUSE OF REPRESENTATIVES SERVE INITIAL TERMS OF10
THREE YEARS . ONE OF THE MEMBERS INITIALLY APPOINTED BY THE11
GOVERNOR AND TWO OF THE MEMBERS INITIALLY APPOINTED BY THE12
PRESIDENT OF THE SENATE SERVE INITIAL TERMS OF TWO YEARS . THE13
REMAINDER OF THE INITIALLY APPOINTED MEMBERS SERVE INITIAL TERMS14
OF FOUR YEARS . THE APPOINTING AUTHORITY SHALL DESIGNATE THE15
INITIAL TERM LENGTH OF THE INITIALLY APPOINTED MEMBER.16
(B) T HE APPOINTING AUTHORITIES SHALL MAKE THEIR INITIAL17
APPOINTMENTS AS SOON AS PRACTICABLE FOLLOWING THE EFFECTIVE18
DATE OF THIS SECTION. APPOINTMENTS MADE WHILE THE SENATE IS NOT19
IN SESSION ARE TEMPORARY APPOINTMENTS AND SUCH APPOINTEES SERVE20
ON A TEMPORARY BASIS UNTIL THE SENATE IS IN SESSION AND IS ABLE TO21
CONFIRM THE APPOINTMENTS.22
(III) A VACANCY IN THE MEMBERSHIP OF THE AUTHORITY MUST BE23
FILLED IN THE SAME MANNER AS THE ORIGINAL APPOINTMENT FOR THE24
REMAINDER OF THE EXPIRED TERM.25
(c) T HE AUTHORITY SHALL SELECT A CHAIR AND A VICE CHAIR26
FROM AMONG ITS MEMBERS.27
HB26-1030-11-
(d) A TWO-THIRDS MAJORITY OF THE MEMBERS OF THE AUTHORITY1
MAY REMOVE A MEMBER OF THE AUTHORITY FOR CAUSE.2
(e) FIVE MEMBERS OF THE AUTHORITY CONSTITUTE A QUORUM.3
(f) MEMBERS OF THE AUTHORITY SERVE WITHOUT COMPENSATION4
BUT ARE ENTITLED TO REIMBURSEMENT FOR ACTUAL AND NECESSARY5
EXPENSES INCURRED IN THE PERFORMANCE OF THEIR DUTIES.6
(3) THE AUTHORITY HAS THE FOLLOWING POWERS AND DUTIES:7
(a) T O ADMINISTER THE DATA CENTER DEVELOPMENT AND8
INCENTIVE PROGRAM CREATED IN THIS PART 8, INCLUDING CREATING AND9
MODIFYING POLICIES, PROCEDURES, AND GUIDELINES AS NECESSARY TO10
IMPLEMENT THE PROGRAM AND THE TAX BENEFITS THAT MAY BE CLAIMED11
PURSUANT TO THIS PART 8. THE AUTHORITY MAY MODIFY THE PROGRAM12
REQUIREMENTS AS NECESSARY TO ACCOMPLISH THE PROGRAM 'S GOALS,13
PROVIDED THAT ALL PROGRAM REQUIREMENT MODIFICATIONS ARE14
PROSPECTIVE AND NO MODIFICATION IMPAIRS AN IN -PROGRESS15
APPLICATION FOR CERTIFICATION.16
(b) TO ADOPT AN ANNUAL BUDGET;17
(c) TO CONTRACT FOR THOSE SERVICES , INCLUDING PERSONNEL18
SERVICES, AND MATERIALS REQUIRED BY THE ACTIVITIES OF THE19
AUTHORITY;20
(d) TO COLLECT THE FEES AUTHORIZED IN SECTION 24-48.5-80521
(3);22
(e) T O ADMINISTER THE DATA CENTER DEVELOPMENT AND23
INCENTIVE PROGRAM CASH FUND CREATED IN SECTION 24-48.5-805 (4);24
AND25
(f) T O EXERCISE ANY OTHER POWERS OR PERFORM ANY OTHER26
DUTIES THAT ARE CONSISTENT WITH THE PURPOSES FOR WHICH THE27
HB26-1030-12-
AUTHORITY WAS CREATED AND THAT ARE REASONABLY NECESSARY FOR1
THE FULFILLMENT OF THE AUTHORITY'S RESPONSIBILITIES.2
(4) (a) O N OR BEFORE JANUARY 31, 2027, AND ON OR BEFORE3
EACH JANUARY 31 THEREAFTER, THE AUTHORITY SHALL REPORT ON THE4
PROGRAM TO A JOINT SESSION OF THE HOUSE OF REPRESENTATIVES5
ENERGY AND ENVIRONMENT COMMITTEE AND THE SENATE6
TRANSPORTATION AND ENERGY COMMITTEE , OR THEIR SUCCESSOR7
COMMITTEES. THE AUTHORITY SHALL MAKE EACH ANNUAL REPORT8
PUBLICLY AVAILABLE.9
(b) NOTWITHSTANDING THE REQUIREMENT IN SECTION 24-1-13610
(11)(a)(I), THE REQUIREMENT TO SUBMIT THE REPORT REQUIRED IN THIS11
SUBSECTION (4) CONTINUES INDEFINITELY.12
(5) T HE OFFICE SHALL , WITHIN EXISTING RESOURCES , PROVIDE13
STAFFING, ADMINISTRATIVE , AND OPERATIONAL SUPPORT TO THE14
AUTHORITY IN PERFORMING ITS DUTIES.15
24-48.5-805. Data center development and incentive program16
- data center development and incentive program cash fund - fees -17
guidelines.18
(1) THE DATA CENTER DEVELOPMENT AND INCENTIVE PROGRAM19
IS CREATED TO FACILITATE EFFICIENT DATA CENTER DEVELOPMENT BY20
ALLOWING TAX RELIEF TO A DATA CENTER OPERATOR OF A CERTIFIED21
DATA CENTER, AS PROVIDED IN THIS PART 8.22
(2) (a) THE AUTHORITY SHALL ADMINISTER THE PROGRAM.23
(b) T HE AUTHORITY MAY CREATE AND MODIFY POLICIES ,24
PROCEDURES, AND GUIDELINES AS NECESSARY TO IMPLEMENT THE25
PROGRAM AND TAX BENEFITS THAT MAY BE CLAIMED PURSUANT TO THIS26
PART 8.27
HB26-1030-13-
(3) (a) (I) TO RECOVER THE DIRECT COSTS OF ESTABLISHING AND1
IMPLEMENTING THE PROGRAM, THE AUTHORITY MAY:2
(A) ESTABLISH AND COLLECT A NONREFUNDABLE APPLICATION FEE3
NOT TO EXCEED THIRTY THOUSAND DOLLARS FOR EACH APPLICATION FOR4
CERTIFICATION SUBMITTED PURSUANT TO THIS PART 8; AND5
(B) ESTABLISH AND COLLECT A NONREFUNDABLE CERTIFICATION6
FEE NOT TO EXCEED TWENTY THOUS AND DOLLARS FOR EACH7
CERTIFICATION AWARDED PURSUANT TO THIS PART 8.8
(II) T HE AUTHORITY SHALL DEPOSIT ALL FEES COLLECTED9
PURSUANT TO SUBSECTION (3)(a)(I) OF THIS SECTION INTO THE DATA10
CENTER DEVELOPMENT AND INCENTIVE PROGRAM CASH FUND CREATED IN11
SUBSECTION (4) OF THIS SECTION.12
(b) THE AUTHORITY SHALL:13
(I) SET THE AMOUNT OF ANY FEES ESTABLISHED PURSUANT TO THIS14
SUBSECTION (3) AT THE MINIMUM AMOUNT NECESSARY TO OFFSET THE15
AUTHORITY'S DIRECT COSTS OF IMPLEMENTING ITS RESPONSIBILITIES16
UNDER THIS PART 8; AND17
(II) ANNUALLY REVIEW THE FEES AND ADJUST THE AMOUNTS AS18
NECESSARY TO ENSURE THAT THE FEES DO NOT EXCEED THE DIRECT COSTS19
OF IMPLEMENTING THIS PART 8.20
(4) (a) T HE DATA CENTER DEVELOPMENT AND INCENTIVE21
PROGRAM CASH FUND IS CREATED IN THE STATE TREASURY . THE DATA22
CENTER DEVELOPMENT AND INCENTIVE PROGRAM CASH FUND CONSISTS OF23
MONEY FROM FEES COLLECTED AND CREDITED TO THE FUND PURSUANT24
THIS SECTION AND ANY OTHER MONEY THAT THE GENERAL ASSEMBLY MAY25
APPROPRIATE, TRANSFER, OR REQUIRE BY LAW TO BE CREDITED TO THE26
FUND.27
HB26-1030-14-
(b) T HE STATE TREASURER SHALL CREDIT ALL INTEREST AND1
INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE2
DATA CENTER DEVELOPMENT AND INCENTIVE PROGRAM CASH FUND TO3
THE FUND.4
(c) MONEY IN THE DATA CENTER DEVELOPMENT AND INCENTIVE5
PROGRAM CASH FUND IS CONTINUOUSLY APPROPRIATED TO THE6
AUTHORITY FOR THE PURPOSE OF ADMINISTERING THE PROGRAM.7
(d) THE DATA CENTER DEVELOPMENT AND INCENTIVE PROGRAM8
CASH FUND IS EXCLUDED FROM THE LIMITATIONS SPECIFIED IN SECTION9
24-75-402.10
24-48.5-806. Certification - application process - data center11
operators - minimum commitments.12
(1) Minimum certification commitments. T O QUALIFY FOR13
CERTIFICATION PURSUANT TO THIS PART 8, A DATA CENTER OPERATOR, OR14
A DATA CENTER OPERATOR COLLECTIVELY WITH ITS PARTICIPATING DATA15
CENTER TENANTS, SHALL COMMIT TO:16
(a) M AKING A MINIMUM INVESTMENT OF TWO HUNDRED FIFTY17
MILLION DOLLARS IN DATA CENTER QUALIFIED PURCHASES WITHIN SIXTY18
MONTHS OF OBTAINING CERTIFICATION;19
(b) C REATING, WITHIN SIXTY MONTHS OF THE DATA CENTER 'S20
RECEIPT OF A FINAL CERTIFICATE OF OCCUPANCY, AND MAINTAINING NEW21
FULL-TIME EQUIVALENT JOBS , INCLUDING EMPLOYEES AND LONG -TERM22
SERVICE AND MAINTENANCE POSITIONS , WITH AN AVERAGE23
COMPENSATION OF AT LEAST ONE HUNDRED TEN PERCENT OF THE24
AVERAGE WAGE IN THE COUNTY IN WHICH THE DATA CENTER WILL BE25
LOCATED;26
(c) H IRING CONTRACTORS TO BUILD AND SERVICE THE DATA27
HB26-1030-15-
CENTER;1
(d) WORKING TO ENSURE THAT THE DATA CENTER WILL NOT CAUSE2
UNREASONABLE COST IMPACTS TO OTHER UTILITY RATEPAYERS;3
(e) I MPLEMENTING WATER STEWARDSHIP MEASURES THAT4
OPTIMIZE OPERATIONAL WATER MANAGEMENT THROUGH5
IMPLEMENTATION OF CLOSED -LOOP COOLING SYSTEMS OR COOLING6
SYSTEM TECHNOLOGY THAT DOES NOT USE WATER , AND THE OPTIONAL7
DEPLOYMENT OF ADDITIONAL WATER-EFFICIENT TECHNOLOGY; 8
(f) O BTAINING CERTIFICATION UNDER ONE OF THE FOLLOWING9
STANDARDS WITHIN TWENTY -FOUR MONTHS OF THE DATA CENTER 'S10
RECEIPT OF A FINAL CERTIFICATE OF OCCUPANCY:11
(I) LEED FOR DATA CENTERS AT GOLD LEVEL OR HIGHER;12
(II) ENERGY STAR CERTIFICATION;13
(III) GREEN GLOBES CERTIFICATION;14
(IV) ISO 50001 ENERGY MANAGEMENT CERTIFICATION;15
(V) ISO 14001 STANDARD FOR ENVIRONMENTAL MANAGEMENT16
SYSTEMS; OR17
(VI) O THER EQUIVALENT STANDARDS APPROVED BY THE18
AUTHORITY;19
(g) CONSULTING WITH THE DEPARTMENT OF NATURAL RESOURCES20
REGARDING WILDLIFE AREAS , WILDFIRE AND URBAN INTERFACE , AND21
WATER;22
(h) ENSURING THAT ALL BACKUP POWER GENERATION ASSOCIATED23
WITH THE DATA CENTER MEETS ONE OR MORE OF THE REQUIREMENTS24
LISTED IN SUBSECTIONS (1)(h)(I) TO (1)(h)(IV) OF THIS SECTION; EXCEPT25
THAT THE AUTHORITY MAY GRANT ADDITIONAL TIME FOR COMPLIANCE26
WITH THIS SUBSECTION (1)(h) IF A DATA CENTER OPERATOR27
HB26-1030-16-
DEMONSTRATES REASONABLE EFFORTS TO COMPLY BUT REQUIRES1
ADDITIONAL TIME DUE TO EQUIPMENT AVAILABILITY OR SUPPLY CHAIN2
CONSTRAINTS DUE TO FACTORS OUTSIDE THE CONTROL OF THE DATA3
CENTER OPERATOR.4
(I) FOR DIESEL GENERATORS, THE GENERATOR MUST:5
(A) M EET OR EXCEED THE UNITED STATES ENVIRONMENTAL6
PROTECTION AGENCY'S TIER 4 FINAL EMISSIONS STANDARDS; OR7
(B) M EET OR EXCEED THE UNITED STATES ENVIRONMENTAL8
PROTECTION AGENCY'S TIER 2 EMISSIONS STANDARDS AND BE EQUIPPED9
WITH A SELECTIVE CATALYTIC REDUCTION SYSTEM OR EQUIVALENT10
AFTER-TREATMENT TECHNOLOGY.11
(II) T HE BACKUP POWER GENERATION MUST BE A BATTERY12
ELECTRIC STORAGE SYSTEM.13
(III) T HE BACKUP POWER GENERATION MUST BE FROM ONE OR14
MORE OF THE FOLLOWING SOURCES:15
(A) HYDROTREATED VEGETABLE OIL , ETHICAL BIOFUEL OIL , OR16
ONE HUNDRED PERCENT BIODIESEL;17
(B) FUEL-CELL OR HYDROGEN FUEL;18
(C) NATURAL GAS; OR19
(D) AMMONIA.20
(IV) T HE BACKUP POWER GENERATION MUST BE FROM OTHER21
CLEAN OR LOW-EMISSION BACKUP POWER TECHNOLOGIES APPROVED BY22
THE AUTHORITY.23
(i) B REAKING GROUND ON THE DATA CENTER WITHIN24
TWENTY-FOUR MONTHS OF OBTAINING CERTIFICATION;25
(j) COMPLYING WITH, AND ENSURING THAT THE UTILITY THAT WILL26
PROVIDE ELECTRICITY TO THE DATA CENTER COMPLIES WITH , FOR THE27
HB26-1030-17-
ENTIRETY OF THE CONSTRUCTION PHASE OF THE DATA CENTER AND FOR1
ANY SUBSEQUENT SERVICE AND MAINTENANCE WORK, THE CRAFT LABOR2
REQUIREMENTS IN PART 3 OF ARTICLE 92 OF THIS TITLE 24 AND THE3
APPRENTICESHIP UTILIZATION REQUIREMENTS IN SECTION 24-92-115 (7),4
IF THE PROJECT FOR THE DATA CENTER , THE ELECTRIC UTILITY5
INFRASTRUCTURE ATTACHED TO THE DATA CENTER, OR THE ELECTRICAL6
POWER GENERATION TECHNOLOGY ATTACHED TO THE DATA CENTER7
MEETS THE DEFINITION OF AN ENERGY SECTOR PUBLIC WORKS PROJECT AS8
DEFINED IN SECTION 24-92-303 (5);9
(k) COMPLYING WITH THE PREVAILING WAGE REQUIREMENTS IN10
PART 2 OF ARTICLE 92 OF THIS TITLE 24, AS IF THE PROJECT FOR THE DATA11
CENTER SATISFIED THE CRITERIA FOR A PUBLIC PROJECT AS DESCRIBED IN12
SECTION 24-92-203 (1);13
(l) AGREEING TO FILE , AND ENSURING THAT ALL CONTRACTORS14
ASSOCIATED WITH CONSTRUCTION OF THE DATA CENTER FILE AS PART OF15
THE BID PROCESS, WORKER SAFETY PLANS THAT INCLUDE PROVISIONS FOR16
COMPLIANCE WITH ALL FEDERAL OCCUPATIONAL SAFETY AND HEALTH17
ADMINISTRATION STANDARDS AND APPLICABLE STATE AND FEDERAL18
WORKPLACE SAFETY LAWS; AND19
(m) COMMITTING TO SATISFYING THE POST-CERTIFICATION DATA20
CENTER REQUIREMENTS SPECIFIED IN SECTION 24-48.5-809.21
(2) Preliminary electric utility consultation.22
(a) BEFORE SUBMITTING AN APPLICATION FOR CERTIFICATION, A23
DATA CENTER OPERATOR SHALL INITIATE A PRELIMINARY CONSULTATION24
WITH THE UTILITY THAT WILL PROVIDE ELECTRICITY FOR THE DATA25
CENTER REGARDING INTERCONNECTION FEASIBILITY , CAPACITY , AND26
INFRASTRUCTURE REQUIREMENTS.27
HB26-1030-18-
(b) A DATA CENTER OPERATOR IS RESPONSIBLE FOR PAYING ALL1
COSTS THAT AN ELECTRIC UTILITY WILL INCUR FOR THE PLANNING TO2
PROVIDE ELECTRICITY TO A NEW DATA CENTER.3
(3) Application for certification. A DATA CENTER OPERATOR4
SEEKING CERTIFICATION MUST SUBMIT AN APPLICATION TO THE5
AUTHORITY, IN A FORM AND MANNER DETERMINED BY THE AUTHORITY ,6
THAT INCLUDES THE FOLLOWING:7
(a) INFORMATION ABOUT THE DATA CENTER FOR WHICH THE DATA8
CENTER OPERATOR IS SEEKING CERTIFICATION, INCLUDING:9
(I) T HE IDENTITY AND QUALIFICATIONS OF THE DATA CENTER10
OPERATOR;11
(II) EVIDENCE OF SITE CONTROL OR A PATHWAY TO SITE CONTROL;12
(III) A PROPOSED DEVELOPMENT TIMELINE AND PHASING;13
(IV) A N ESTIMATED TIMELINE FOR QUALIFIED PURCHASES14
REACHING A MINIMUM OF TWO HUNDRED FIFTY MILLION DOLLARS WITHIN15
THIRTY-SIX MONTHS OF THE DATA CENTER BEING PLACED IN SERVICE OR16
RECEIPT OF A FINAL CERTIFICATE OF OCCUPANCY, WHICHEVER IS EARLIER;17
(V) A N ESTIMATED JOB CREATION PLAN BY THE DATA CENTER18
OPERATOR, OR BY THE DATA CENTER OPERATOR COLLECTIVELY WITH ITS19
PARTICIPATING DATA CENTER TENANTS , SHOWING THE ANTICIPATED20
NUMBER OF NEW FULL -TIME EQUIVALENT JOBS THAT WILL BE CREATED21
WITHIN SIXTY MONTHS AFTER THE DATA CENTER 'S RECEIPT OF A FINAL22
CERTIFICATE OF OCCUPANCY , INCLUDING EMPLOYEES AND LONG -TERM23
SERVICE AND MAINTENANCE POSITIONS, WITH COMPENSATION OF AT LEAST24
ONE HUNDRED TEN PERCENT OF THE AVERAGE WAGE FOR THE COUNTY IN25
WHICH THE DATA CENTER WILL BE LOCATED; AND26
(VI) AN ENVIRONMENTAL SUSTAINABILITY PLAN FOR THE DATA27
HB26-1030-19-
CENTER THAT INCLUDES:1
(A) A FACILITY CERTIFICATION COMMITMENT, INCLUDING LEED,2
ENERGY STAR, GREEN GLOBES, ISO 50001, ISO 14001, OR AN3
EQUIVALENT STANDARD; AND4
(B) CONSULTATION WITH DEPARTMENT OF NATURAL RESOURCES;5
(b) T HE IDENTITY OF THE UTILITY THAT WILL PROVIDE6
ELECTRICITY FOR THE DATA CENTER AND EXPECTED PEAK ELECTRICITY7
DEMAND FOR THE DATA CENTER;8
(c) DOCUMENTATION OF THE PRELIMINARY CONSULTATION WITH9
THE UTILITY THAT WILL PROVIDE ELECTRICITY TO THE DATA CENTER AS10
REQUIRED BY SUBSECTION (2)(a) OF THIS SECTION;11
(d) INFORMATION ABOUT WHETHER THE DATA CENTER WILL USE12
WATER AS PART OF ITS COOLING SYSTEM AND , IF WATER WILL BE USED ,13
THE IDENTITY OF THE UTILITY THAT WILL PROVIDE WATER FOR THE DATA14
CENTER; AND15
(e) LOCAL GOVERNMENT DOCUMENTATION IN CONNECTION WITH16
THE DATA CENTER, INCLUDING:17
(I) D OCUMENTATION OF THE STATUS OF THE LAND USE18
APPLICATION FROM THE LOCAL GOVERNMENTAL ENTITY THAT WILL19
PROVIDE THE PERMIT FOR THE DATA CENTER, IF AVAILABLE;20
(II) A DESCRIPTION OF ANY APPLICABLE LOCAL INCENTIVES;21
(III) A DESCRIPTION OF THE NEGOTIATED COMMUNITY BENEFITS;22
AND23
(IV) THE STATUS OF LOCAL PERMITS AND APPROVALS.24
(4) Review and effect of certification. U PON RECEIPT OF AN25
APPLICATION FOR CERTIFICATION FROM A DATA CENTER OPERATOR, THE26
AUTHORITY SHALL REVIEW THE APPLICATION PURSUANT TO SECTION27
HB26-1030-20-
24-48.5-807. IF THE AUTHORITY APPROVES THE DATA CENTER FOR1
CERTIFICATION, THE DATA CENTER OPERATOR BECOMES ELIGIBLE, AS OF2
THE DATE OF CERTIFICATION, FOR THE TAX BENEFITS SPECIFIED IN SECTION3
24-48.5-808.4
24-48.5-807. Application review and certification process -5
Colorado data center development authority.6
(1) (a) T HE AUTHORITY SHALL REVIEW ALL APPLICATIONS FOR7
CERTIFICATION SUBMITTED BY A DATA CENTER OPERATOR PURSUANT TO8
SECTION 24-48.5-806. THE AUTHORITY SHALL DETERMINE WHETHER AN9
APPLICATION IS COMPLETE WITHIN THIRTY DAYS AFTER THE AUTHORITY'S10
RECEIPT OF THE APPLICATION . WITHIN NINETY DAYS OF DETERMINING11
THAT AN APPLICATION IS COMPLETE, THE AUTHORITY SHALL CONDUCT A12
FULL APPLICATION REVIEW PURSUANT TO THIS SECTION.13
(b) I F THE AUTHORITY DETERMINES THAT AN APPLICATION IS14
DEFICIENT, THE AUTHORITY SHALL PROVIDE WRITTEN NOTIFICATION TO15
THE APPLICANT THAT IDENTIFIES THE SPECIFIC DEFICIENCIES . THE16
AUTHORITY SHALL ALLOW THIRTY DAYS FOR THE APPLICANT TO CURE ANY17
DEFICIENCIES IN THE APPLICATION, AND THE AUTHORITY SHALL COMPLETE18
A REVIEW OF THE REVISED APPLICATION WITHIN THIRTY DAYS AFTER19
RECEIPT.20
(c) W ITHIN FOURTEEN DAYS OF RECEIVING A COMPLETE21
APPLICATION FOR CERTIFICATION FROM A DATA CENTER OPERATOR, THE22
AUTHORITY SHALL NOTIFY THE UTILITY THAT WILL PROVIDE ELECTRICITY23
FOR THE DATA CENTER , AS IDENTIFIED IN THE APPLICATION , OF THE24
APPLICATION. WITHIN SIXTY DAYS OF THE DATE THAT THE AUTHORITY25
NOTIFIES THE UTILITY, THE UTILITY SHALL:26
(I) PURSUE ONE OF THE FOLLOWING METHODS TO VERIFY THAT THE27
HB26-1030-21-
DATA CENTER WILL NOT CAUSE UNREASONABLE COST IMPACTS TO OTHER1
UTILITY RATEPAYERS:2
(A) S UBMITTING A TARGETED RESOURCE ACQUISITION3
APPLICATION TO THE COMMISSION PURSUANT TO SECTION 40-2-140 AND4
PROVIDING PROOF OF THE APPLICATION SUBMISSION TO THE AUTHORITY;5
(B) P ROVIDING A TECHNICAL REPORT TO THE AUTHORITY6
ATTESTING THAT THE UTILITY INFRASTRUCTURE COSTS ASSOCIATED WITH7
THE DATA CENTER ARE REASONABLY ALLOCATED AND ARE NOT EXPECTED8
TO CAUSE UNJUSTIFIED RATE INCREASES FOR OTHER CUSTOMERS; OR9
(C) P ROVIDING DOCUMENTATION TO THE AUTHORITY OF A10
PROPOSED INTERCONNECTION AGREEMENT , ELECTRIC SERVICE11
AGREEMENT, OR SIMILAR AGREEMENT THAT IDENTIFIES REQUIRED UTILITY12
INFRASTRUCTURE UPGRADES AND CONFIRMS THAT THE DATA CENTER13
OPERATOR HAS AGREED OR WILL AGREE TO COVER ITS FAIR SHARE OF14
COSTS IN ACCORDANCE WITH THE UTILITY'S POLICY; AND15
(II) P ROVIDE A WRITTEN FEASIBILITY ASSESSMENT TO THE16
AUTHORITY THAT INCLUDES A TIMELINE OF SERVICE.17
(d) W ITHIN FOURTEEN DAYS OF RECEIVING A COMPLETE18
APPLICATION FOR CERTIFICATION FROM A DATA CENTER OPERATOR THAT19
IDENTIFIES THAT THE DATA CENTER WILL USE WATER AS PART OF ITS20
COOLING SYSTEM, THE AUTHORITY SHALL NOTIFY THE UTILITY THAT WILL21
PROVIDE WATER FOR THE DATA CENTER , AS IDENTIFIED IN THE22
APPLICATION, OF THE APPLICATION . WITHIN SIXTY DAYS OF THE DATE23
THAT THE AUTHORITY NOTIFIES THE UTILITY, THE UTILITY SHALL PROVIDE24
DOCUMENTATION TO THE AUTHORITY ATTESTING THAT THE WATER25
MANAGEMENT PLAN FOR THE DATA CENTER IS SUFFICIENT AND WILL NOT26
NEGATIVELY IMPACT EXISTING CUSTOMERS EITHER THROUGH RATE27
HB26-1030-22-
INCREASES OR WATER AVAILABILITY.1
(e) (I) IF A UTILITY FAILS TO PROVIDE THE AUTHORITY WITH ANY2
DOCUMENTATION, REPORT, ASSESSMENT, OR APPLICATION REQUIRED BY3
SUBSECTION (1)(c) OR (1)(d) OF THIS SECTION WITHIN THE REQUIRED TIME4
FRAME, THE AUTHORITY MAY PROCEED TO REVIEW AND APPROVE AN5
APPLICATION FOR CERTIFICATION WITHOUT THE REQUIRED6
DOCUMENTATION, REPORT , ASSESSMENT , OR APPLICATION . THE7
DOCUMENTATION, REPORT, ASSESSMENT, OR APPLICATION MUST BE ADDED8
TO THE APPLICATION FOR CERTIFICATION UPON THE AUTHORITY'S RECEIPT9
OF THE DOCUMENTATION, REPORT, ASSESSMENT, OR APPLICATION. 10
(II) I F AN ELECTRIC UTILITY FAILS TO PROVIDE THE AUTHORITY11
WITH A WRITTEN FEASIBILITY ASSESSMENT REQUIRED BY SUBSECTION12
(1)(c)(II) OF THIS SECTION WITHIN THE SIXTY -DAY TIME FRAME , THE13
AUTHORITY SHALL NOTIFY THE APPLICANT DATA CENTER OPERATOR AND14
THE COMMISSION OF THE ELECTRIC UTILITY'S FAILURE TO RESPOND.15
(2) T HE AUTHORITY MAY APPROVE AN APPLICATION FOR16
CERTIFICATION IF THE APPLICATION MEETS ALL OF THE APPLICATION17
CRITERIA SPECIFIED IN SECTION 24-48.5-806.18
(3) THE AUTHORITY MAY REJECT AN APPLICATION IF:19
(a) T HE AUTHORITY FINDS THAT THE DATA CENTER OPERATOR20
MATERIALLY MISREPRESENTED FACTS IN THE APPLICATION;21
(b) T HE AUTHORITY FINDS THAT THE DATA CENTER OPERATOR22
FAILED TO PROVIDE REQUIRED DOCUMENTATION AFTER THE AUTHORITY23
PROVIDED AN OPPORTUNITY TO CURE AN APPLICATION DEFICIENCY24
PURSUANT TO SUBSECTION (1)(b) OF THIS SECTION; 25
(c) T HE AUTHORITY DETERMINES THAT THE DATA CENTER26
OPERATOR DOES NOT MEET MINIMUM CERTIFICATION REQUIREMENTS27
HB26-1030-23-
UNDER SECTION 24-48.5-806; OR 1
(d) T HE PROGRAM IS CANCELED OR REPEALED PRIOR TO THE2
AUTHORITY'S REVIEW AND APPROVAL OF THE APPLICATION.3
(4) B EFORE REJECTING ANY APPLICATION THAT MEETS THE4
MINIMUM INVESTMENT AND JOB CREATION CRITERIA SET FORTH IN5
SECTION 24-48.5-806, THE AUTHORITY SHALL:6
(a) PROVIDE THE DATA CENTER OPERATOR AN OPPORTUNITY TO7
ADDRESS THE AUTHORITY'S CONCERNS; AND8
(b) E XPLORE ALTERNATIVE PATHS TO APPROVAL WITH9
CONDITIONS, IF POSSIBLE.10
(5) I N IMPLEMENTING THE PROGRAM , THE AUTHORITY SHALL11
FACILITATE EFFICIENT DATA CENTER DEVELOPMENT BY ESTABLISHING12
CLEAR QUALIFICATION CRITERIA AND CONSISTENTLY ADMINISTERING A13
PREDICTABLE APPLICATION, REVIEW, AND APPROVAL PROCESS FOR DATA14
CENTER CERTIFICATION PURSUANT TO THIS PART 8.15
(6) (a) THE AUTHORITY SHALL BEGIN PROCESSING AND REVIEWING16
APPLICATIONS FOR CERTIFICATION WITHIN ONE HUNDRED EIGHTY DAYS17
AFTER THE EFFECTIVE DATE OF THIS PART 8.18
(b) THIS SUBSECTION (6) IS REPEALED, EFFECTIVE JULY 1, 2028.19
24-48.5-808. Cert ification benefits - state sales and use tax20
exemption - compliance reports.21
(1) State sales and use tax exemption.22
(a) S UBJECT TO THE PROVISIONS OF SUBSECTION (1)(b) OF THIS23
SECTION, A DATA CENTER OPERATOR OF A CERTIFIED DATA CENTER IS24
ELIGIBLE FOR A ONE HUNDRED PERCENT STATE SALES AND USE TAX25
EXEMPTION ON QUALIFIED PURCHASES PURSUANT TO SECTION 39-26-735.26
(b) UNLESS AN ELIGIBILITY PERIOD IS EXTENDED AS PROVIDED IN27
HB26-1030-24-
SECTION 24-48.5-810, A DATA CENTER OPERATOR OF A CERTIFIED DATA1
CENTER IS ELIGIBLE FOR THE STATE SALES AND USE TAX EXEMPTION FOR2
TWENTY YEARS FROM THE DATE THAT THE DATA CENTER RECEIVED3
CERTIFICATION, SO LONG AS THE DATA CENTER OPERATOR:4
(I) M AINTAINS THE QUALIFYING EMPLOYMENT AND5
COMPENSATION COMMITMENT SPECIFIED IN SECTION 24-48.5-806 (1)(b);6
AND 7
(II) SUBMITS ANNUAL COMPLIANCE REPORTS TO THE AUTHORITY8
AS REQUIRED IN SUBSECTION (3) OF THIS SECTION.9
(2) Exemption certificate. THE AUTHORITY SHALL ISSUE A STATE10
SALES AND USE TAX EXEMPTION CERTIFICATE TO THE DATA CENTER11
OPERATOR OF A CERTIFIED DATA CENTER AS EVIDENCE THAT THE DATA12
CENTER OPERATOR IS ELIGIBLE FOR THE STATE SALES AND USE TAX13
EXEMPTION FOR QUALIFIED PURCHASES PURSUANT TO THIS SECTION AND14
SECTION 39-26-735. THE STATE SALES AND USE TAX EXEMPTION15
CERTIFICATE MUST SPECIFY THAT THE DATA CENTER OPERATOR IS16
ENTITLED TO THE STATE SALES AND USE TAX EXEMPTION FOR TWENTY17
YEARS, BEGINNING ON THE DATE OF CERTIFICATION. A STATE SALES AND18
USE TAX EXEMPTION CERTIFICATE IS NONTRANSFERABLE. THE AUTHORITY19
SHALL CERTIFY TO THE DEPARTMENT THE NAME OF EACH DATA CENTER20
OPERATOR THAT RECEIVES A STATE SALES AND USE TAX EXEMPTION21
CERTIFICATE AND OTHER RELEVANT INFORMATION RELATING TO THE22
EXEMPTION.23
(3) Compliance reports. A DATA CENTER OPERATOR OF A24
CERTIFIED DATA CENTER SHALL SUBMIT AN ANNUAL COMPLIANCE REPORT25
TO THE AUTHORITY, IN A FORM AND MANNER TO BE DETERMINED BY THE26
AUTHORITY, TO VERIFY THAT THE DATA CENTER OPERATOR IS MAKING27
HB26-1030-25-
TIMELY PROGRESS IN SATISFYING THE REQUIREMENTS OF SECTION1
24-48.5-806 AND IS ON TRACK TO SATISFY THE REQUIREMENTS WITHIN THE2
PERIODS SPECIFIED IN THAT SECTION. A DATA CENTER OPERATOR SHALL3
SUBMIT THE REPORT REQUIRED IN THIS SUBSECTION (3) TO MAINTAIN4
CERTIFICATION. THE DATA CENTER OPERATOR SHALL INCLUDE IN THE5
REPORT THE TOTAL AMOUNT OF THE STATE SALES AND USE TAX6
EXEMPTION CLAIMED EACH YEAR AND ANY OTHER INFORMATION7
REQUESTED BY THE AUTHORITY.8
(4) Payment of tax upon revocation of certification. IF THE9
AUTHORITY REVOKES A DATA CENTER 'S CERTIFICATION PURSUANT TO10
SECTION 24-48.5-809 (2), THE DATA CENTER OPERATOR SHALL PAY THE11
ENTIRE AMOUNT OF THE STATE SALES AND USE TAX ON ANY QUALIFIED12
PURCHASE FOR WHICH THE STATE SALES AND USE TAX EXEMPTION WAS13
CLAIMED PURSUANT TO THIS PART 8 AND SECTION 39-26-735.14
24-48.5-809. Post-certification data center requirements -15
revocation.16
(1) A DATA CENTER OPERATOR OF A CERTIFIED DATA CENTER17
SHALL:18
(a) MAINTAIN ALL COMMITMENTS AND REQUIREMENTS SET FORTH19
IN SECTION 24-48.5-806 THROUGHOUT ITS TWENTY-YEAR BENEFIT PERIOD;20
AND21
(b) S UBMIT THE ANNUAL COMPLIANCE REPORTS REQUIRED BY22
SECTION 24-48.5-808 (3).23
(2) (a) EXCEPT AS PROVIDED IN SUBSECTION (4) OF THIS SECTION,24
THE AUTHORITY MAY REVOKE A CERTIFICATION THAT IT HAS AWARDED IF25
THE AUTHORITY DETERMINES THAT THE DATA CENTER OPERATOR HAS:26
(I) FAILED TO MAKE SUBSTANTIAL PROGRESS TOWARD SATISFYING27
HB26-1030-26-
THE REQUIREMENTS SPECIFIED IN SECTION 24-48.5-806 WITHIN1
TWENTY-FOUR MONTHS OF THE DATA CENTER BEING PLACED IN SERVICE2
OR RECEIPT OF A FINAL CERTIFICATE OF OCCUPANCY;3
(II) M ATERIALLY CHANGED THE DATA CENTER IN A WAY THAT4
WOULD HAVE DISQUALIFIED IT FROM CERTIFICATION; OR5
(III) FAILED TO MAINTAIN COMPLIANCE WITH THE CRITERIA THAT6
FORMED THE BASIS OF APPROVAL AND CERTIFICATION.7
(b) BEFORE REVOKING A CERTIFICATION THAT IT HAS AWARDED,8
THE AUTHORITY SHALL PROVIDE THE DATA CENTER OPERATOR WITH:9
(I) WRITTEN NOTICE SPECIFYING THE GROUNDS FOR POTENTIAL10
REVOCATION;11
(II) A T LEAST ONE HUNDRED TWENTY DAYS TO REMEDY THE12
GROUNDS FOR POTENTIAL REVOCATION AND TO DEMONSTRATE13
COMPLIANCE; AND 14
(III) AN OPPORTUNITY TO PRESENT EVIDENCE AND ARGUMENTS TO15
THE AUTHORITY.16
(3) THE AUTHORITY SHALL USE THE REPORTS THAT A DATA CENTER17
OPERATOR IS REQUIRED TO SUBMIT TO THE AUTHORITY PURSUANT TO18
SECTION 24-48.5-808 (3) TO ENSURE THAT A CERTIFIED DATA CENTER19
REMAINS IN COMPLIANCE WITH PROGRAM REQUIREMENTS.20
(4) THE AUTHORITY SHALL NOT REVOKE CERTIFICATION BASED ON:21
(a) CHANGES TO ELECTRIC UTILITY RATES, COST ALLOCATIONS, OR22
RESOURCE PLANS MADE THROUGH PROCEEDINGS BEFORE THE23
COMMISSION;24
(b) CHANGES TO WATER UTILITY RATES OR SERVICE TERMS MADE25
BY A WATER UTILITY , UNLESS SUCH CHANGES ARE CAUSED BY WATER26
SCARCITY OR FORCE MAJEURE; OR27
HB26-1030-27-
(c) C HANGES TO FEDERAL , STATE , OR LOCAL ENVIRONMENTAL1
LAWS OR REGULATIONS THAT OCCUR AFTER A DATA CENTER 'S2
CERTIFICATION, PROVIDED THAT THE DATA CENTER OPERATOR3
DEMONSTRATES GOOD FAITH EFFORTS TO ACHIEVE COMPLIANCE WITH THE4
CHANGED LAWS OR REGULATIONS WITHIN A REASONABLE TIME.5
24-48.5-810. Certification benefits extension - duration -6
extension eligibility - extension terms.7
(1) A DATA CENTER OPERATOR OF A CERTIFIED DATA CENTER MAY8
APPLY TO THE AUTHORITY, IN A FORM AND MANNER DETERMINED BY THE9
AUTHORITY AND NO EARLIER THAN TEN YEARS AFTER OBTAINING ITS10
INITIAL CERTIFICATION , FOR AN EXTENSION OF ITS CERTIFICATION11
BENEFITS. TO BE ELIGIBLE FOR AN EXTENSION OF ITS CERTIFICATION12
BENEFITS, A DATA CENTER OPERATOR MUST DEMONSTRATE THAT:13
(a) DURING THE INITIAL TWENTY-YEAR BENEFIT PERIOD, THE DATA14
CENTER OPERATOR, OR THE DATA CENTER OPERATOR COLLECTIVELY WITH15
ITS PARTICIPATING DATA CENTER TENANTS , HAS MADE INVESTMENTS IN16
DATA CENTER QUALIFIED PURCHASES IN A TOTAL AM OUNT OF AT LEAST17
FIVE MILLION DOLLARS IN ADDITION TO THE MINIMUM INVESTMENT THAT18
THE DATA CENTER OPERATOR WAS REQUIRED TO MAKE PURSUANT TO19
SECTION 24-48.5-806;20
(b) DURING THE INITIAL TWENTY-YEAR BENEFIT PERIOD, THE DATA21
CENTER OPERATOR, OR THE DATA CENTER OPERATOR COLLECTIVELY WITH22
ITS PARTICIPATING DATA CENTER TENANTS, HAS CREATED AT LEAST TEN23
NEW QUALIFYING JOBS IN ADDITION TO THE JOBS THAT THE DATA CENTER24
OPERATOR CREATED TO SATISFY THE REQUIREMENTS OF SECTION25
24-48.5-806; AND26
(c) T HE CERTIFIED DATA CENTER CONTINUES TO COMPLY WITH27
HB26-1030-28-
ENVIRONMENTAL REQUIREMENTS.1
(2) A DATA CENTER OPERATOR OF A CERTIFIED DATA CENTER THAT2
IS APPROVED FOR AN EXTENSION OF ITS CERTIFICATION BENEFITS BY THE3
AUTHORITY PURSUANT TO THIS SECTION IS ELIGIBLE:4
(a) FOR AN ADDITIONAL TEN YEARS OF ELIGIBILITY TO CLAIM THE5
STATE SALES AND USE TAX EXEMPTION ALLOWED PURSUANT TO THIS PART6
8 AND SECTION 39-26-735; AND7
(b) TO MAINTAIN ITS CERTIFICATION, PROVIDED THAT THE DATA8
CENTER CONTINUES TO MEET ALL APPLICABLE CERTIFICATION9
REQUIREMENTS IMPOSED BY THIS PART 8.10
24-48.5-811. No restriction on local government authority and11
coordination.12
THIS PART 8 DOES NOT LIMIT A LOCAL GOVERNMENT'S AUTHORITY13
REGARDING THE REGULATION OF DATA CENTERS, INCLUDING TAXATION,14
INCENTIVES, LAND USE, PERMITTING, AND NUISANCE. THIS PART 8 DOES15
NOT LIMIT ANY LOCAL ENVIRONMENTAL REGULATION. IN ADDITION, THIS16
PART 8 DOES NOT RESTRICT LOCAL INCENTIVES , INCLUDING UTILITY17
INCENTIVES IN THE CASE OF A MUNICIPALLY OWNED UTILITY . THIS PART18
8 DOES NOT REQUIRE LOCAL GOVERNMENTS TO PARTICIPATE IN THE19
PROGRAM.20
SECTION 2. In Colorado Revised Statutes, 24-75-402, amend21
(5)(mmm) and (5)(nnn); and add (5)(ooo) as follows:22
24-75-402. Cash funds - limit on uncommitted reserves -23
reduction in the amount of fees - exclusions - definitions.24
(5) Notwithstanding any provision of this section to the contrary,25
the following cash funds are excluded from the limitations specified in26
this section:27
HB26-1030-29-
(mmm) The reentry services for justice-involved individuals1
reinvestment cash fund created in section 25.5-4-505.7; and2
(nnn) The health-related social needs reinvestment cash fund3
created in section 25.5-5-340; AND4
(ooo) THE DATA CENTER DEVELOPMENT AND INCENTIVE PROGRAM5
CASH FUND CREATED IN SECTION 24-48.5-805 (4).6
SECTION 3. In Colorado Revised Statutes, add 40-2-140 as7
follows:8
40-2-140. Targeted resource acquisition - emerging large-load9
customers - process - funding - definitions.10
(1) Definitions. AS USED IN THIS SECTION, UNLESS THE CONTEXT11
OTHERWISE REQUIRES:12
(a) "A DVANCED CARBON-FREE TECHNOLOGY" MEANS ELECTRIC13
GENERATION TECHNOLOGY OR RESOURCES, INCLUDING LONG-DURATION14
ENERGY STORAGE, THAT CAN BE TURNED ON OR OFF, OR OTHERWISE HAVE15
THEIR POWER OUTPUT ADJUSTED , BASED ON DEMAND SO AS TO ENABLE16
OPERATION OF A CARBON-FREE ELECTRIC SYSTEM.17
(b) "EMERGING LARGE-LOAD CUSTOMER" MEANS A CUSTOMER OF18
A UTILITY WITH PROJECTED LOAD REQUIREMENTS OF AT LEAST ONE19
HUNDRED MEGAWATTS , EITHER INDIVIDUALLY OR IN THE AGGREGATE20
THROUGH COLOCATED CUSTOMERS.21
(c) "NAMEPLATE CAPACITY" MEANS THE MAXIMUM RATED OUTPUT22
OF AN ELECTRIC GENERATOR , OR OTHER ELECTRIC POWER PRODUCTION23
EQUIPMENT, UNDER SPECIFIC C ONDITIONS DESIGNATED BY THE24
MANUFACTURER.25
(d) "U TILITY" MEANS A UTILITY REGULATED UNDER THE26
COMMISSION'S RESOURCE PLANNING AUTHORITY.27
HB26-1030-30-
(2) Eligibility for targeted resource acquisition. A UTILITY MAY1
SUBMIT TO THE COMMISSION A TARGETED RESOURCE ACQUISITION2
APPLICATION DESCRIBING HOW THE UTILITY INTENDS TO MEET ENERGY3
AND CAPACITY NEEDS CREATED BY ONE OR MORE EMERGING LARGE-LOAD4
CUSTOMERS. FOR A UTILITY TO BE ELIGIBLE TO SUBMIT A TARGETED5
RESOURCE ACQUISITION APPLICATION TO THE COMMISSION , EMERGING6
LARGE-LOAD CUSTOMERS OF THE UTILITY MUST:7
(a) ENTER INTO A CONTRACTUAL AGREEMENT WITH THE UTILITY,8
WHICH AGREEMENT INCLUDES:9
(I) MINIMUM DEMAND, DURATION, AND BILLING COMMITMENTS;10
OR11
(II) P ARTICIPATION IN ANY APPLICABLE LARGE -LOAD TARIFF12
INTENDED TO BALANCE LOAD FACTOR;13
(b) A GREE TO EXIT FEE PROVISIONS THAT ADDRESS EARLY14
DEPARTURE OR REDUCED DEMAND , INCLUDING BUT NOT LIMITED TO A15
THREE-YEAR EXIT FEE STRUCTURE TO ENSURE REVENUE STABILITY; 16
(c) PROVIDE APPROPRIATE CREDIT SECURITIZATION; AND17
(d) D EMONSTRATE SITE CONTROL AND SUBMIT SIGNED18
DEVELOPMENT AGREEMENTS TO THE UTILITY.19
(3) Resource acquisition process.20
(a) P RIOR TO FILING A TARGETED RESOURCE ACQUISITION21
APPLICATION UNDER THIS SECTION, A UTILITY MAY ISSUE A COMPETITIVE22
SOLICITATION TO IDENTIFY POTENTIAL RESOURCES TO SERVE AN23
EMERGING LARGE-LOAD CUSTOMER.24
(b) A S PART OF THE TARGETED RESOURCE ACQUISITION25
APPLICATION, THE UTILITY MAY PROPOSE SYSTEM ASSETS FUNDED IN26
WHOLE OR IN PART BY THE EMERGING LARGE-LOAD CUSTOMER. ALL SUCH27
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ASSETS MUST OPERATE AS SYSTEM ASSETS FOR THE BENEFIT OF ALL1
CUSTOMERS.2
(c) F OR TARGETED RESOURCE ACQUISITION APPLICATIONS3
SUBMITTED ON OR BEFORE DECEMBER 31, 2039:4
(I) S TANDALONE RESOURCE PORTFOLIOS PROPOSED IN THE5
TARGETED RESOURCE ACQUISITION APPLICATION MUST TARGET A6
THREE-TO-ONE RATIO ON A NAMEPLATE CAPACITY BASIS BETWEEN7
CARBON DIOXIDE NONEMITTING AND EMITTING RESOURCES. 8
(II) S TANDALONE STORAGE DISTRIBUTED ENERGY RESOURCES9
DEVELOPED FOR THE EMERGING LARGE-LOAD CUSTOMER, OR PROCURED10
BY THE EMERGING LARGE -LOAD CUSTOMER VIA UTILITY PROGRAMS ,11
RECEIVE A TWO-TIMES MULTIPLIER BONUS ON THE NAMEPLATE CAPACITY12
VALUE IN A RATIO CALCULATION. GRID-CONNECTED SOLAR DISTRIBUTED13
ENERGY RESOURCES PAIRED WITH STORAGE RECEIVE A14
ONE-AND-ONE-QUARTER-TIMES MULTIPLIER BONUS ON THE NAMEPLATE15
CAPACITY VALUE IN A RATIO CALCULATION; EXCEPT THAT THE MULTIPLIER16
BONUS ONLY APPLIES TO THE SOLAR RESOURCES IF THE STORAGE17
COMPONENT OF THE HYBRID PROJECT EXCEEDS THE SOLAR PORTION.18
(III) (A) IF THE STANDALONE RESOURCE PORTFOLIO, INCLUDING19
ANY DISTRIBUTED ENERGY RESOURCE MULTIPLIER BONUS, DOES NOT MEET20
THE THREE -TO-ONE TARGET RATIO , THE TARGETED RESOURCE21
ACQUISITION APPLICATION MUST INCLUDE A PROPOSAL FOR THE EMERGING22
LARGE-LOAD CUSTOMER TO FUND ADVANCED CARBON-FREE TECHNOLOGY23
VIA EITHER A CLEAN TRANSITION TARIFF OR THROUGH24
UTILITY-ADMINISTRATED FUNDING PROGRAMS FOR SUCH TECHNOLOGY. 25
(B) A S THE RATIO OF THE PROPOSED STANDALONE RESOURCE26
PORTFOLIO FALLS BELOW THE THREE -TO-ONE TARGET RATIO , THE27
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PROPOSED FUNDING FROM THE EMERGING LARGE-LOAD CUSTOMER MUST1
INCREASE ON A COMMENSURATE BASIS . THE INCREASED FUNDING2
REQUIRED WILL BE CALCULATED USING THE DIFFERENCE BETWEEN THE3
PROPOSED RATIO AND THE THREE -TO-ONE TARGET RATIO , WITH THE4
EXPECTED OPERATION OF THE INCREMENTAL EMITTING GENERATION5
MULTIPLIED BY A VALUE DETERMINED BY THE COMMISSION AS REQUIRED6
TO SET THE AMOUNT OF FUNDING THAT NEEDS TO BE PROVIDED BY THE7
EMERGING LARGE-LOAD CUSTOMER TO FUND ADVANCED CARBON -FREE8
TECHNOLOGY.9
(d) F OR TARGETED RESOURCE ACQUISITION APPLICATIONS10
SUBMITTED ON OR AFTER JANUARY 1, 2040, ALL PROPOSED RESOURCES11
MUST BE RENEWABLE AND CLEAN ENERGY RESOURCES AS DESCRIBED IN12
SECTION 24-48.5-803 (12).13
(e) A NY RESOURCES PROPOSED IN THE TARGETED RESOURCE14
ACQUISITION APPLICATION MUST HAVE SUFFICIENT CUMULATIVE15
ACCREDITED CAPACITY, AS DETERMINED BY THE UTILITY , TO MEET THE16
NEEDS OF THE EMERGING LARGE-LOAD CUSTOMER WITHIN THE REQUIRED17
INTERCONNECTION TIME FRAME, WHICH TIME FRAME MAY BE PHASED AS18
THE LOAD SCALES.19
(f) AS PART OF A TARGETED RESOURCE ACQUISITION APPLICATION,20
THE UTILITY SHALL ENSURE THAT AT LEAST THIRTY PERCENT OF THE21
RESOURCES AND INFRASTRUCTURE PROPOSED IN THE APPLICATION22
SUPPORT CONSUMER -FACING PROGRAMS FOR SOLAR ENERGY SYSTEMS ,23
BATTERY ENERGY STORAGE SYSTEMS , AND LOAD REDUCTION24
TECHNOLOGY.25
(g) I N CONNECTION WITH A TARGETED RESOURCE ACQUISITION26
APPLICATION, THE UTILITY MUST:27
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(I) USE THE REQUEST FOR PROPOSAL DOCUMENTS MOST RECENTLY1
APPROVED BY THE COMMISSION , WITH CUSTOMIZATION ALLOWED TO2
REFLECT THE SPECIFIC SOLICITATION AND AVOID COST SHIFTS TO OTHER3
CUSTOMERS; AND4
(II) B E PERMITTED TO BRING FORWARD RECENT BIDS RECEIVED5
WITHIN THE PREVIOUS TWO YEARS IF THE BID PRICES REMAIN GENERALLY6
CONSISTENT WITH THE PREVIOUSLY SUBMITTED TERMS.7
(h) T HE UTILITY MUST INCLUDE IN A TARGETED RESOURCE8
ACQUISITION APPLICATION AN UPDATED EMISSIONS WORKBOOK THAT9
REFLECTS:10
(I) T OTAL MEGAWATT -HOURS AND ASSOCIATED EMISSIONS11
ATTRIBUTABLE TO THE EMERGING LARGE-LOAD CUSTOMER; AND12
(II) S EPARATE REPORTING FOR EACH DISCRETE EMERGING13
LARGE-LOAD CUSTOMER IN THE CASE OF COLOCATED ARRANGEMENTS, TO14
THE EXTENT PRACTICABLE.15
(i) A PPROVAL OF A TARGETED RESOURCE ACQUISITION16
APPLICATION UNDER THIS SECTION CREATES A PRESUMPTION OF PRUDENCE17
FOR ALL INFRASTRUCTURE OR RESOURCE INVESTMENTS NECESSARY TO18
SERVE THE EMERGING LARGE-LOAD CUSTOMER.19
(j) T HE STANDARD OF REVIEW FOR THE TARGETED RESOURCE20
ACQUISITION APPLICATION IS WHETHER THE PROPOSED ACQUISITION AND21
ASSOCIATED INFRASTRUCTURE ARE IN THE PUBLIC INTEREST. 22
(k) T HE UTILITY NEED NOT OBTAIN A CERTIFICATE OF PUBLIC23
CONVENIENCE AND NECESSITY PURSUANT TO SECTION 40-5-102 FOR24
SPECIFIC RESOURCES AND INFRASTRUCTURE IDENTIFIED IN AND APPROVED25
THROUGH THE APPLICATION.26
(l) THE COMMISSION SHALL ACT ON THE APPLICATION WITHIN ONE27
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HUNDRED TWENTY DAYS AFTER THE FILING OF THE APPLICATION . THE1
PERIOD FOR OTHER PERSONS TO INTERVENE IN THE MATTER IS WITHIN TEN2
DAYS AFTER THE FILING OF THE APPLICATION.3
(4) Funding and cost recovery.4
(a) A UTILITY MAY INCLUDE IN THE UTILITY'S TARGETED RESOURCE5
ACQUISITION APPLICATION PRE -FUNDING COMMITMENTS FROM THE6
EMERGING LARGE-LOAD CUSTOMER FOR PRE-DEVELOPMENT AND EARLY7
CONSTRUCTION COSTS OF RESOURCES OR INFRASTRUCTURE , INCLUDING8
TRANSMISSION AND DISTRIBUTION.9
(b) THE EMERGING LARGE-LOAD CUSTOMER MAY ENTIRELY BEAR10
THE COSTS ASSOCIATED WITH THE EMERGING LARGE LOAD , BUT THE11
UTILITY MAY ALSO PROPOSE PARTIAL REIMBURSEMENT OF AN12
APPROPRIATE PORTION OF THESE COSTS THROUGH AN EXISTING13
COST-RECOVERY MECHANISM.14
(c) T HE UTILITY MAY RECOVER COSTS ASSOCIATED WITH15
RESOURCES AND INFRASTRUCTURE DEVELOPED PURSUANT TO AN16
APPROVED APPLICATION THROUGH AN ADJUSTMENT CLAUSE UNTIL17
INCLUDED IN THE RATE BASE IN A FUTURE RATE CASE. THE UTILITY MAY18
RECOVER TRANSMISSION COSTS THROUGH A TRANSMISSION ADJUSTMENT19
CLAUSE AND DISTRIBUTION COSTS THROUGH A GRID MODERNIZATION20
ADJUSTMENT CLAUSE. 21
(d) T HE COMMISSION SHALL APPROVE THE REIMBURSEMENT22
RECOVERY IF THE ACQUIRED RESOURCES OR INFRASTRUCTURE PROVIDE23
SYSTEM-WIDE BENEFITS.24
(5) Advanced carbon-free technology fund.25
(a) A UTILITY MAY PROPOSE THE CREATION OF AN ADVANCED26
CARBON-FREE TECHNOLOGY FUND , TO WHICH EMERGING LARGE -LOAD27
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CUSTOMERS MAY CONTRIBUTE VOLUNTARILY.1
(b) A UTILITY MAY USE THE FUND TO:2
(I) COVER PRE-DEVELOPMENT AND EARLY CONSTRUCTION COSTS3
FOR SYSTEM RESOURCES AND INFRASTRUCTURE;4
(II) S UPPORT UTILITY EXPLORATION OR DEPLOYMENT OF5
ADVANCED CARBON-FREE TECHNOLOGY;6
(III) A LLOW EMERGING LARGE -LOAD CUSTOMERS TO BENEFIT7
FROM CLEAN FIRM DISPATCHABLE TECHNOLOGY LOCATED NEAR THEIR8
OPERATIONS IN EXCHANGE FOR THEIR CONTRIBUTIONS; AND9
(IV) MITIGATE OR ALLOCATE TECHNOLOGY PERFORMANCE RISK10
ASSOCIATED WITH ADVANCED CARBON -FREE TECHNOLOGY, SUBJECT TO11
THE COMMISSION'S REVIEW AND APPROVAL.12
(c) IF A UTILITY IS NOT ABLE TO USE MONEY THAT IS CONTRIBUTED13
TO THE FUND FOR THE PURPOSES SPECIFIED IN SUBSECTION (5)(b) OF THIS14
SECTION BECAUSE AN EMERGING LARGE -LOAD PROJECT DOES NOT15
MATERIALIZE, THE UTILITY MAY USE MONEY THAT IS CONTRIBUTED TO THE16
FUND TO OFFSET INFRASTRUCTURE AND RESOURCE COSTS FOR THE BENEFIT17
OF OTHER CUSTOMERS.18
SECTION 4. In Colorado Revised Statutes, 29-2-105, amend19
(1)(d)(I)(T) and (1)(d)(I)(U); and add (1)(d)(I)(V) as follows:20
29-2-105. Contents of sales tax ordinances and proposals.21
(1) The sales tax ordinance or proposal of any incorporated town,22
city, or county adopted pursuant to this article 2 shall be imposed on the23
sale of tangible personal property at retail or the furnishing of services,24
as provided in subsection (1)(d) of this section. Any countywide or25
incorporated town or city sales tax ordinance or proposal shall include the26
following provisions:27
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(d) (I) A provision that the sale of tangible personal property and1
services taxable pursuant to this article 2 is the same as the sale of2
tangible personal property and services taxable pursuant to section3
39-26-104, except as otherwise provided in this subsection (1)(d). The4
sale of tangible personal property and services taxable pursuant to this5
article 2 is subject to the same sales tax exemptions as those specified in6
part 7 of article 26 of title 39; except that the sale of the following may be7
exempted from a town, city, or county sales tax only by the express8
inclusion of the exemption either at the time of adoption of the initial9
sales tax ordinance or resolution or by amendment thereto:10
(T) The exemption for sales of heat pump systems and heat pump11
water heaters set forth in section 39-26-732; and12
(U) The exemption for sales of energy storage systems set forth13
in section 39-26-733; AND14
(V) THE EXEMPTION SET FORTH IN SECTION 39-26-735 FOR SALES15
OF INFORMATION TECHNOLOGY INFRASTRUCTURE AND DATA CENTER16
INFRASTRUCTURE AND TRANSMISSION AND GENERATION SYSTEM ASSETS. 17
SECTION 5. In Colorado Revised Statutes, add 39-26-735 as18
follows:19
39-26-735. Certified data centers - qualified purchases -20
information technology infrastructure - data center infrastructure -21
tax preference performance statement - legislative declaration -22
definitions.23
(1) (a) I N ACCORDANCE WITH SECTION 39-21-304, WHICH24
REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE25
A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY26
LEGISLATIVE DECLARATION , THE GENERAL ASSEMBLY FINDS AND27
HB26-1030-37-
DECLARES THAT THE PURPOSES OF THE TAX EXPENDITURE CREATED IN1
SUBSECTION (3) OF THIS SECTION ARE TO:2
(I) IMPROVE INDUSTRY COMPETITIVENESS, SPECIFICALLY IN DATA3
CENTER DEVELOPMENT; AND4
(II) PROVIDE TAX RELIEF TO CERTAIN BUSINESSES, SPECIFICALLY5
DATA CENTER OPERATORS THAT OWN OR OPERATE A CERTIFIED DATA6
CENTER IN THE STATE.7
(b) T HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL8
MEASURE THE EFFECTIVENESS OF THE TAX EXPENDITURE IN ACHIEVING9
THE PURPOSES SPECIFIED IN SUBSECTION (1)(a) OF THIS SECTION BASED ON10
THE NUMBER OF CERTIFIED DATA CENTERS THAT ARE CONSTRUCTED AND11
PLACED IN SERVICE IN THE STATE AND THE NUMBER AND VALUE OF THE12
EXEMPTIONS CLAIMED PURSUANT TO THIS SECTION . THE AUTHORITY13
SHALL PROVIDE THE STATE AUDITOR WITH ANY AVAILABLE INFORMATION14
THAT WOULD ASSIST IN THE STATE AUDITOR'S ANALYSIS.15
(2) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE16
REQUIRES:17
(a) "CERTIFIED DATA CENTER" MEANS A DATA CENTER THAT HAS18
OBTAINED CERTIFICATION FROM THE AUTHORITY PURSUANT TO PART 8 OF19
ARTICLE 48.5 OF TITLE 24.20
(b) "C OLORADO DATA CENTER DEVELOPMENT AUTHORITY " OR21
"AUTHORITY" MEANS THE COLORADO DATA CENTER DEVELOPMENT22
AUTHORITY CREATED IN SECTION 24-48.5-804.23
(c) "Q UALIFIED DATA CENTER INFRASTRUCTURE AND SYSTEMS "24
MEANS INFORMATION TECHNOLOGY INFRASTRUCTURE AND DATA CENTER25
INFRASTRUCTURE AND TRANSMISSION AND GENERATION SYSTEM ASSETS,26
AS DESCRIBED IN SECTION 24-48.5-803 (11).27
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(d) "STATE SALES AND USE TAX EXEMPTION CERTIFICATE" MEANS1
A STATE SALES AND USE TAX EXEMPTION CERTIFICATE ISSUED BY THE2
AUTHORITY TO A CERTIFIED DATA CENTER PURSUANT TO PART 8 OF3
ARTICLE 48.5 OF TITLE 24.4
(3) B EGINNING JANUARY 1, 2027, ALL SALES AND USE OF5
QUALIFIED DATA CENTER INFRASTRUCTURE AND SYSTEMS THAT WILL BE6
PURCHASED AND USED IN CONNECTION WITH A CERTIFIED DATA CENTER7
FOR WHICH A DATA CENTER OPERATOR HAS A STATE SALES AND USE TAX8
EXEMPTION CERTIFICATE IS EXEMPT FROM TAXATION UNDER PARTS 1 AND9
2 OF THIS ARTICLE 26.10
(4) NOTWITHSTANDING SECTION 39-21-304 (4), THE EXEMPTION11
ALLOWED PURSUANT TO THIS SECTION CONTINUES INDEFINITELY.12
SECTION 6. Applicability. This act applies to data centers for13
which the building or the purchase of equipment or regulated resource14
acquisitions commence on or after the effective date of this act. 15
SECTION 7. Safety clause. The general assembly finds,16
determines, and declares that this act is necessary for the immediate17
preservation of the public peace, health, or safety or for appropriations for18
the support and maintenance of the departments of the state and state19
institutions.20
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