Local Government Renewable Energy Development Fee

Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED

LLS NO. 26-0525.01 Jacob Bennington x2371 SENATE BILL 26-082
Senate Committees House Committees
Transportation & Energy
A BILL FOR AN ACT
CONCERNING THE PROCESS BY WHICH A LOCAL GOVERNMENT101
CONTROLS THE DEVELOPMENT OF RENEWABLE ENERGY102
PROJECTS, AND, IN CONNECTION THEREWITH, AUTHORIZING A103
LOCAL GOVERNMENT TO IMPLEMENT AN OPTIONAL TWO -TIER104
APPLICATION FEE PROGRAM AND A SUCCESS FEE.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.)
A renewable energy project developer (facility owner) that intends
to undertake a project to build a renewable energy facility (renewable
SENATE SPONSORSHIP
Pelton B.,
HOUSE SPONSORSHIP
(None),
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.
energy project) may currently submit an application for land use approval
from the renewable energy project to a local government. However,
current law does not specify what process a local government may use to
charge fees or set a timeline for the local government to make a final
decision regarding land use approval for the renewable energy project.
The bill specifies that control over the specifics of the application process
rests with the local government. The local government may establish fees
for an application for a renewable energy project and may offer two
independent tracks for the application based on the fee the facility owner
pays. The standard track allows a facility owner to pay a lower fee, but
does not guarantee a specific timeline for the local government to issue
a final decision on the application. The expedited track allows a facility
owner to pay an additional fee, with an agreement that if the local
government takes longer than 120 days, minus any permitted tolling
periods, a percentage of the higher fee will be refunded.
The bill gives local governments authority to contract with
third-party technical reviewers to review the application for a final
decision. The bill also requires a facility owner to pay a success fee to the
local government upon final approval of the project, based on the amount
of time between receipt of the application and when the project is
approved, to be used by the local government for expenses related to
regulating renewable energy facilities and maintaining local roads
impacted by facility construction.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 29-20-406 as2
follows:3
29-20-406. Renewable energy project fees - local authority -4
fast-track program - refund - reporting - legislative declaration -5
definitions.6
(1) (a) T HE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES7
THAT:8
(I) COLORADO HAS LONG RECOGNIZED THAT LAND USE IS A LOCAL9
FUNCTION, AND COUNTIES ARE BEST POSITIONED TO BALANCE ENERGY10
DEVELOPMENT WITH COMMUNITY IMPACTS; AND11
(II) F ACILITIES CAN CREATE SIGNIFICANT LOCAL IMPACTS ON12
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ROADS, EMERGENCY SERVICES, AND THE ENVIRONMENT THAT ARE MOST1
DIRECTLY BORNE BY LOCAL GOVERNMENTS AND RESIDENTS.2
(b) THEREFORE, IT IS THE INTENT OF THE GENERAL ASSEMBLY TO:3
(I) REAFFIRM THAT LOCAL GOVERNMENTS RETAIN AUTHORITY TO4
APPROVE, CONDITION , OR DENY PROJECTS THROUGH LOCAL LAND USE5
PROCESSES;6
(II) C REATE A VOLUNTARY STRUCTURE THAT INCENTIVIZES7
FASTER, PREDICTABLE LOCAL PERMITTING BY ALLOWING LOCAL8
GOVERNMENTS TO RETAIN HIGHER FACILITY OWNER -PAID FEES WHEN9
STATUTORY TIMELINES ARE MET; AND10
(III) ENSURE PROJECTS CONTRIBUTE FAIRLY AND PREDICTABLY TO11
LOCAL FISCAL IMPACTS THROUGH A SUCCESS FEE CHARGED ON FINAL12
APPROVAL OF THE PROJECT.13
(2) (a) T HE POWER AND AUTHORITY GRANTED BY THIS SECTION14
DOES NOT LIMIT ANY POWER OR AUTHORITY PRESENTLY EXERCISED BY A15
LOCAL GOVERNMENT OR PREVIOUSLY GRANTED TO A LOCAL16
GOVERNMENT. EACH LOCAL GOVERNMENT WITHIN ITS RESPECTIVE17
JURISDICTION HAS THE AUTHORITY TO:18
(I) D EVELOP A UNIFORM ELECTRONIC APPLICATION AND19
PERMITTING SYSTEM FOR FACILITY OWNERS APPLYING FOR LAND USE20
APPROVAL TO DEVELOP A RENEWABLE ENERGY PROJECT;21
(II) CREATE A STANDARD PERMIT APPLICATION PROCESS, AS WELL22
AS ESTABLISH AND COLLECT A STANDARD FEE FROM FACILITY OWNERS;23
(III) C REATE AN EXPEDITED PERMIT APPLICATION PROCESS , AS24
WELL AS ESTABLISH AND COLLECT AN EXPEDITED FEE FROM FACILITY25
OWNERS; AND26
(IV) E STABLISH AND COLLECT A SUCCESS FEE FROM FACILITY27
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OWNERS AFTER A LOCAL GOVERNMENT APPROVES A RENEWABLE ENERGY1
PROJECT.2
(b) A PERMITTING AND APPLICATION SYSTEM DEVELOPED BY A3
LOCAL GOVERNMENT PURSUANT TO THIS SUBSECTION (2) MUST COMPLY4
WITH SUBSECTIONS (3) THROUGH (7) OF THIS SECTION.5
(3) A FACILITY OWNER THAT INTENDS TO DEVELOP A RENEWABLE6
ENERGY PROJECT MAY SUBMIT EITHER A STANDARD PERMIT APPLICATION7
OR, IF ESTABLISHED BY THE LOCAL GOVERNMENT, AN EXPEDITED PERMIT8
APPLICATION TO THE LOCAL GOVERNMENT IN ACCORDANCE WITH THE9
PROCEDURES DEVELOPED BY THE LOCAL GOVERNMENT PURSUANT TO10
SUBSECTION (2) OF THIS SECTION.11
(4) (a) FOR EXPEDITED PERMIT APPLICATIONS RECEIVED BY THE12
LOCAL GOVERNMENT ON OR AFTER JANUARY 1, 2027, EXCEPT AS13
OTHERWISE PROVIDED IN THIS SUBSECTION (4), THE LOCAL GOVERNMENT14
SHALL ISSUE A DETERMINATION OF WHETHER THE APPLICATION IS15
COMPLETE WITHIN TWENTY DAYS AFTER RECEIVING THE APPLICATION. THE16
LOCAL GOVERNMENT SHALL NOTIFY THE FACILITY OWNER IN WRITING17
WHETHER THE APPLICATION IS COMPLETE.18
(b) A DETERMINATION THAT AN APPLICATION IS NOT COMPLETE19
MUST INCLUDE A CONSOLIDATED DEFICIENCY NOTICE WITH A LIST OF ALL20
MISSING OR INCOMPLETE ITEMS THAT THE FACILITY OWNER MUST CORRECT21
FOR THE APPLICATION TO BE DEEMED COMPLETE.22
(c) (I) A N APPLICATION SUBMITTED TO A LOCAL GOVERNMENT23
PURSUANT TO SUBSECTION (3) OF THIS SECTION IS DEEMED APPROVED BY24
THE LOCAL GOVERNMENT IF THE LOCAL GOVERNMENT HAS NOT , WITHIN25
TWENTY DAYS AFTER RECEIPT OF THE APPLICATION , NOTIFIED THE26
FACILITY OWNER PURSUANT TO SUBSECTION (4)(a) OF THIS SECTION27
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WHETHER THE APPLICATION IS COMPLETE.1
(II) IF THE LOCAL GOVERNMENT DETERMINES AN APPLICATION IS2
NOT COMPLETE , THE LOCAL GOVERNMENT MAY HAVE AN ADDITIONAL3
THIRTY DAYS AFTER PROVIDING INITIAL NOTICE THAT THE APPLICATION IS4
INCOMPLETE TO PROVIDE THE CONSOLIDATED DEFICIENCY NOTICE.5
(5) I F AN APPLICATION IS DEEMED INCOMPLETE , THE FACILITY6
OWNER HAS THIRTY DAYS FROM THE DATE THAT THE LOCAL GOVERNMENT7
PROVIDED THE CONSOLIDATED DEFICIENCY NOTICE TO CURE ANY8
DEFICIENCIES IDENTIFIED IN THE CONSOLIDATED DEFICIENCY NOTICE OR9
TO APPEAL THE DETERMINATION.10
(6) (a) THE EXPEDITED PERMIT FEE CONSISTS OF THE STANDARD11
FEE, AS WELL AS AN ADDITIONAL CHARGE THAT THE LOCAL GOVERNMENT12
SHALL REFUND TO THE FACILITY OWNER AS FOLLOWS:13
(I) IF THE LOCAL GOVERNMENT ISSUES A FINAL DECISION WITHIN14
ONE HUNDRED TWENTY DAYS OR FEWER AFTER RECEIPT OF THE15
APPLICATION, ZERO PERCENT OF THE ADDITIONAL CHARGE IS REFUNDED TO16
THE FACILITY OWNER;17
(II) I F THE LOCAL GOVERNMENT ISSUES A FINAL DECISION18
BETWEEN ONE HUNDRED TWENTY-ONE DAYS AND ONE HUNDRED EIGHTY19
DAYS AFTER RECEIPT OF THE APPLICATION , FIFTY PERCENT OF THE20
ADDITIONAL CHARGE IS REFUNDED TO THE FACILITY OWNER;21
(III) I F THE LOCAL GOVERNMENT ISSUES A FINAL DECISION22
BETWEEN ONE HUNDRED EIGHTY -ONE DAYS AND TWO HUNDRED FORTY23
DAYS AFTER RECEIPT OF THE APPLICATION, SEVENTY-FIVE PERCENT OF THE24
ADDITIONAL CHARGE IS REFUNDED TO THE FACILITY OWNER; OR25
(IV) IF THE LOCAL GOVERNMENT ISSUES A FINAL DECISION MORE26
THAN TWO HUNDRED FORTY DAYS AFTER RECEIPT OF THE APPLICATION ,27
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ONE HUNDRED PERCENT OF THE ADDITIONAL CHARGE IS REFUNDED TO THE1
FACILITY OWNER.2
(b) IN DETERMINING THE AMOUNT OF THE ADDITIONAL CHARGE3
FOR AN EXPEDITED APPLICATION THAT A LOCAL GOVERNMENT MUST4
REFUND PURSUANT TO SUBSECTION (6)(a) OF THIS SECTION, THE LOCAL5
GOVERNMENT SHALL NOT INCLUDE ANY PORTION OF THE THIRTY -DAY6
CURE PERIOD IN THE CALCULATION OF THE TIME IT TAKES FOR THE LOCAL7
GOVERNMENT TO ISSUE A FINAL DECISION.8
(7) (a) I F A FACILITY OWNER HAS SUBMITTED AN EXPEDITED9
PERMIT APPLICATION, THE LOCAL GOVERNMENT SHALL SELECT AND HIRE10
A QUALIFIED AND INDEPENDENT NONGOVERNMENTAL CONTRACTOR11
UNDER THE DIRECTION OF THE LOCAL GOVERNMENT TO PROVIDE THE12
LOCAL GOVERNMENT WITH TECHNICAL ASSISTANCE IN REVIEWING THE13
APPLICATION.14
(b) A N INDEPENDENT NONGOVERNMENTAL CONTRACTOR THAT15
PROVIDES TECHNICAL ASSISTANCE PURSUANT TO THIS SUBSECTION (7)16
MAY ASSIST THE LOCAL GOVERNMENT WITH SOME OR ALL OF THE17
FOLLOWING, AT THE LOCAL GOVERNMENT'S DISCRETION:18
(I) R EVIEWING THE FACILITY OWNER 'S APPLICATION AND19
PROPOSAL;20
(II) P REPARING THE LOCAL GOVERNMENT 'S COMPLETENESS21
DETERMINATION;22
(III) P REPARING THE LOCAL GOVERNMENT 'S CONSOLIDATED23
DEFICIENCY NOTICE;24
(IV) PROVIDING RESPONSES TO A FACILITY OWNER 'S APPEAL OF25
ANY ITEM IN A CONSOLIDATED DEFICIENCY NOTICE; AND26
(V) P REPARING A FINAL DECISION ON THE FACILITY OWNER 'S27
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APPLICATION.1
(c) T HE FACILITY OWNER SHALL BEAR THE INDEPENDENT2
NONGOVERNMENTAL CONTRACTOR 'S COSTS FOR ANY TECHNICAL3
ASSISTANCE PROVIDED PURSUANT TO THIS SECTION AND SHALL REMIT4
PAYMENT FOR THE COSTS TO THE LOCAL GOVERNMENT, WHICH SHALL PAY5
THE CONTRACTOR. THE LOCAL GOVERNMENT MAY CHARGE THE FACILITY6
OWNER AN ADDITIONAL FEE IN AN AMOUNT NOT TO EXCEED TEN PERCENT7
OF THE COST OF THE CONTRACT WITH THE CONTRACTOR FOR CONTRACT8
ADMINISTRATION, TECHNICAL REVIEW , AND ADDITIONAL PERMIT9
PROCESSING.10
(d) (I) THE LOCAL GOVERNMENT, IN ITS SOLE DISCRETION, SHALL11
PROVIDE OVERSIGHT TO ENSURE THAT INDEPENDENT NONGOVERNMENTAL12
CONTRACTORS PROVIDE TECHNICAL ASSISTANCE IN ACCORDANCE WITH13
THE TERMS OF THEIR CONTRACTS. THE LOCAL GOVERNMENT MAY REQUIRE14
A CONTRACTOR'S TECHNICAL ASSISTANCE TO CONFORM TO ALL LAWS AND15
ORDINANCES APPLICABLE TO THE APPLICATION IN QUESTION.16
(II) T HE LOCAL GOVERNMENT MAY DEEM SOME OR ALL OF THE17
CONTRACTOR'S TECHNICAL ASSISTANCE AS UNACCEPTABLE AND MAY18
REJECT, REQUIRE CORRECTION OF , OR DENY APPROVAL FOR SUCH19
ASSISTANCE.20
(8) (a) ANY FACILITY OWNER WHOSE RENEWABLE ENERGY PROJECT21
IS APPROVED PURSUANT TO THIS SECTION SHALL PAY A SUCCESS FEE IN AN22
AMOUNT SET BY THE LOCAL GOVERNMENT UPON FINAL APPROVAL OF THE23
PROJECT.24
(b) A FACILITY OWNER WHOSE RENEWABLE ENERGY PROJECT IS25
APPROVED PURSUANT TO A LOCAL GOVERNMENT 'S EXPEDITED PERMIT26
APPLICATION SHALL PAY AN ADDITIONAL SUCCESS FEE, IN AN AMOUNT SET27
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BY THE LOCAL GOVERNMENT, BASED ON THE AMOUNT OF TIME BETWEEN1
THE LOCAL GOVERNMENT 'S RECEIPT OF THE APPLICATION AND ITS2
ISSUANCE OF FINAL APPROVAL OF THE PROJECT. THE PERCENTAGE OF THE3
ADDITIONAL SUCCESS FEE TO BE PAID BY THE FACILITY OWNER IS4
DETERMINED AS FOLLOWS:5
(I) IF THE LOCAL GOVERNMENT ISSUES FINAL APPR OVAL WITHIN6
ONE HUNDRED TWENTY DAYS OR FEWER AFTER RECEIPT OF THE7
APPLICATION, ONE HUNDRED PERCENT OF THE ADDITIONAL SUCCESS FEE;8
(II) IF THE LOCAL GOVERNMENT ISSUES FINAL APPROVAL BETWEEN9
ONE HUNDRED TWENTY-ONE DAYS AND ONE HUNDRED EIGHTY DAYS AFTER10
RECEIPT OF THE APPLICATION, FIFTY PERCENT OF THE ADDITIONAL SUCCESS11
FEE;12
(III) IF THE LOCAL GOVERNMENT ISSUES FINAL APPROVAL BETWEEN13
ONE HUNDRED EIGHTY-ONE DAYS AND TWO HUNDRED FORTY DAYS AFTER14
RECEIPT OF THE APPLICATION, TWENTY-FIVE PERCENT OF THE ADDITIONAL15
SUCCESS FEE; OR16
(IV) IF THE LOCAL GOVERNMENT ISSUES A FINAL DECISION MORE17
THAN TWO HUNDRED FORTY DAYS AFTER RECEIPT OF THE APPLICATION ,18
THE LOCAL GOVERNMENT SHALL ONLY CHARGE THE SUCCESS FEE FOR A19
STANDARD PERMIT APPLICATION APPROVAL PURSUANT TO SUBSECTION20
(8)(a) OF THIS SECTION.21
(c) A LOCAL GOVERNMENT SHALL USE THE MONEY COLLECTED22
FROM THE SUCCESS FEE ONLY FOR FUNDING:23
(I) LOCAL GOVERNMENT STAFF RESPONSIBLE FOR PERMITTING AND24
ENFORCEMENT OF LOCAL RENEWABLE ENERGY LAWS AND ORDINANCES;25
(II) I NSPECTION AND COMPLIANCE MONITORING IN CONNECTION26
WITH RENEWABLE ENERGY PROJECTS;27
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(III) M ITIGATION AND REPAIR TO LOCAL ROADS IMPACTED BY1
HAULING OF HEAVY MACHINERY FOR RENEWABLE ENERGY PROJECTS;2
(IV) EMERGENCY MANAGEMENT AND FIRE READINESS RELATED TO3
THE RENEWABLE ENERGY FACILITY; AND4
(V) O VERSIGHT OF ANY DECOMMISSIONING OF A RENEWABLE5
ENERGY FACILITY.6
SECTION 2. Act subject to petition - effective date. This act7
takes effect at 12:01 a.m. on the day following the expiration of the8
ninety-day period after final adjournment of the general assembly (August9
12, 2026, if adjournment sine die is on May 13, 2026); except that, if a10
referendum petition is filed pursuant to section 1 (3) of article V of the11
state constitution against this act or an item, section, or part of this act12
within such period, then the act, item, section, or part will not take effect13
unless approved by the people at the general election to be held in14
November 2026 and, in such case, will take effect on the date of the15
official declaration of the vote thereon by the governor.16
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