Development of Thermal Energy Resources

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

LLS NO. 26-0789.01 Christopher McMichael x4775 SENATE BILL 26-142
Senate Committees House Committees
Transportation & Energy
A BILL FOR AN ACT
CONCERNING THE DEVELOPMENT OF THERMAL ENERGY RESOURCES.101
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 qualifying entity is an industrial or commercial facility operator
that recovers thermal energy as a by-product of its primary industrial or
commercial processes. The bill permits the sale of recovered thermal
energy by a qualifying entity under certain conditions, including:
! The thermal energy is a by-product of the qualifying
entity's primary industrial or commercial process, and the
thermal energy is not generated primarily for retail sale;
! The qualifying entity's primary business activity is not the
SENATE SPONSORSHIP
Ball,
HOUSE SPONSORSHIP
Joseph and Gonzalez R.,
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.
operation of a public utility;
! The recovery and sale of thermal energy does not result in
an increase in fossil fuel combustion beyond what the
qualifying entity's primary industrial or commercial process
requires;
! The recovered thermal energy is sold pursuant to a contract
between the qualifying entity and a purchaser; and
! The qualifying entity does not sell electricity, natural gas,
or other commodities regulated by the public utilities
commission as part of the transaction.
The bill authorizes a local government or a special district (local
government) to enter into an agreement with one or more entities for the
purpose of providing the local government with service from a thermal
energy network. The local government may issue bonds for the purpose
of financing thermal energy infrastructure, interconnections, or customer
connections within the jurisdiction of the local government.
The bill also increases the net electric generating capacity of a
community geothermal garden from 5 megawatts to 25 megawatts. The
bill requires a qualifying retail utility to purchase a minimum amount of
electricity from community geothermal gardens, as determined by the
public utilities commission.
Under current law, if a municipality builds or acquires gas or
electric works and distribution systems, the municipality must get voter
approval at the next municipal election. The bill removes the voter
approval requirement if the municipality builds or acquires heating and
cooling works and distribution systems for the distribution of heat and
cooling obtained from geothermal resources or from waste and
cogenerated heat.
The bill requires the Colorado energy and carbon management
commission (commission) and the Colorado geological survey to collect
data and information related to the development of geological resources
in the state. The commission shall make recommendations to encourage
safe and effective development of geothermal resources and report those
recommendations to the general assembly on or before November 15,
2026.
The bill requires investor-owned electric utilities (utilities) to
identify small-scale geothermal projects and large-scale geothermal
projects (geothermal projects). The utility must solicit proposals for the
development of small-scale geothermal projects of up to 25 megawatts of
net electric generating capacity and large-scale geothermal projects that
are greater than 25 megawatts of net electric generating capacity. The
utility may submit the proposals to the public utilities commission as part
of the utility's next electric resource planning filing. A utility may also
partner with a specific customer or group of customers to develop
geothermal projects if the specific customer agrees to certain conditions,
SB26-142-2-
such as covering at least 50% of the cost of development of the project.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
finds and declares that:3
(a) In 2021, the general assembly enacted Senate Bill 21-264,4
requiring regulated gas utilities to develop clean heat plans to reduce5
greenhouse gas emissions;6
(b) In 2023, the general assembly enacted House Bill 23-1252,7
which authorized thermal energy networks, integrated thermal energy into8
the clean heat standard, and required a large gas utility to propose pilot9
thermal energy network projects;10
(c) The Colorado energy office has invested substantial public11
funds in geothermal and thermal energy network grants and tax credits,12
and communities across the state are pursuing neighborhood-scale13
alternatives to natural gas infrastructure;14
(d) While existing law does not prohibit municipalities from15
operating thermal energy networks that include private participants and16
does not prohibit industrial facilities from selling recovered waste heat,17
the absence of express statutory authority for these activities imposes18
unnecessary soft costs on every entity that attempts to conduct those19
activities, including legal fees, financial risk premiums, and extended20
project timelines;21
(e) These soft costs are disproportionately burdensome for small22
and rural communities and prevent publicly funded thermal energy23
project operators from entering into contracts that make financial sense;24
(f) Colorado's data centers, manufacturing facilities, and industrial25
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operations emit substantial quantities of waste heat into the atmosphere1
through evaporative cooling, thus consuming water resources in a2
water-scarce state. This waste heat could be recovered and used for3
heating and cooling if there was a clear legal pathway.4
(g) Thermal energy infrastructure built by municipalities and5
private entities under this act may be transferred to regulated utilities as6
a less risky asset that contributes to clean heat plan compliance, thereby7
accelerating the outcomes and goals of the state's clean heat plan.8
(2) Therefore, the general assembly declares that:9
(a) It is the purpose of this act to reduce soft costs and legal10
ambiguity associated with thermal energy network deployment and11
industrial waste heat recovery by providing express statutory authority for12
these activities that otherwise lack clear legal pathways;13
(b) This act is intended to complement, not displace, the authority14
of the public utilities commission to regulate public utilities and to15
oversee thermal energy network development; and16
(c) This act does not create new state spending obligations or new17
regulatory mandates on existing or new regulatory bodies.18
SECTION 2. In Colorado Revised Statutes, add 24-38.5-126 as19
follows:20
24-38.5-126. Industrial waste heat recovery - thermal energy21
- safe harbor - consumer protection - reporting - definitions.22
(1) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE23
REQUIRES:24
(a) "PUBLIC UTILITIES COMMISSION" MEANS THE PUBLIC UTILITIES25
COMMISSION CREATED IN SECTION 40-2-101.26
(b) "QUALIFYING ENTITY" MEANS A PERSON THAT OPERATES AN27
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INDUSTRIAL OR COMMERCIAL FACILITY AND RECOVERS THERMAL ENERGY1
FROM THE FACILITY'S PRIMARY INDUSTRIAL OR COMMERCIAL PROCESSES2
FOR SALE TO ONE OR MORE THERMAL ENERGY PURCHASERS.3
(c) "R ECOVERED THERMAL ENERGY SALE " MEANS THE SALE OF4
THERMAL ENERGY RECOVERED BY A QUALIFYING ENTITY TO ONE OR MORE5
THERMAL ENERGY PURCHASERS PURSUANT TO THIS SECTION.6
(d) "THERMAL ENERGY" HAS THE MEANING SET FORTH IN SECTION7
40-3.2-108 (2)(r).8
(e) "THERMAL ENERGY NETWORK" HAS THE MEANING SET FORTH9
IN SECTION 40-3.2-108 (2)(s).10
(f) "T HERMAL ENERGY PURCHASER " MEANS A PERSON THAT11
PURCHASES THERMAL ENERGY RECOVERED BY A QUALIFYING ENTITY12
PURSUANT TO A THERMAL ENERGY SERVICE AGREEMENT.13
(2) A RECOVERED THERMAL ENERGY SALE IS NOT SUBJECT TO14
REGULATION BY THE PUBLIC UTILITIES COMMISSION , SO LONG AS THE15
QUALIFYING ENTITY MEETS THE FOLLOWING CONDITIONS:16
(a) THE THERMAL ENERGY SOLD BY THE QUALIFYING ENTITY IS A17
BY-PRODUCT OF THE QUALIFYING ENTITY 'S PRIMARY INDUSTRIAL OR18
COMMERCIAL PROCESS AND IS NOT GENERATED PRIMARILY FOR RETAIL19
SALE;20
(b) THE QUALIFYING ENTITY'S PRIMARY BUSINESS ACTIVITY IS NOT21
THE OPERATION OF A PUBLIC UTILITY;22
(c) T HE RECOVERY AND SALE OF THERMAL ENERGY MUST NOT23
RESULT IN THE INCREASE IN FOSSIL FUEL COMBUSTION BEYOND WHAT THE24
QUALIFYING ENTITY'S PRIMARY INDUSTRIAL OR COMMERCIAL PROCESSES25
WOULD OTHERWISE REQUIRE;26
(d) THE QUALIFYING ENTITY CONDUCTS ALL RECOVERED THERMAL27
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ENERGY SALES PURSUANT TO A CONTRACT OR AGREEMENT ENTERED INTO1
BY BOTH THE QUALIFYING ENTITY AND THE THERMAL ENERGY PURCHASER;2
AND3
(e) T HE QUALIFYING ENTITY DOES NOT SELL ELECTRICITY ,4
NATURAL GAS, OR OTHER COMMODITIES REGULATED UNDER ARTICLES 15
TO 7 OF TITLE 40 AS PART OF THE TRANSACTION TO SELL THERMAL ENERGY6
PURSUANT TO THIS SECTION.7
(3) A QUALIFYING ENTITY 'S PROVISION OF THERMAL ENERGY8
SERVICE UNDER THIS SECTION SHALL NOT BE CONSTRUED AS THE9
PROVISION OF NATURAL GAS SERVICE AND DOES NOT CONSTITUTE A10
VIOLATION OF ANY EXCLUSIVE FRANCHISE AGREEMENT FOR THE11
DISTRIBUTION OF NATURAL GAS.12
(4) (a) NOTHING IN THIS SECTION LIMITS THE AUTHORITY OF THE13
PUBLIC UTILITIES COMMISSION TO REGULATE AN ENTITY THAT IS A PUBLIC14
UTILITY BY REASON OF ACTIVITIES OTHER THAN RECOVERED THERMAL15
ENERGY SALES.16
(b) N OTHING IN THIS SECTION LIMITS THE AUTHORITY OF THE17
PUBLIC UTILITIES COMMISSION TO REGULATE A GAS UTILITY WITH RESPECT18
TO THERMAL ENERGY NETWORKS PURSUANT TO SECTION 40-4-121.19
SECTION 3. In Colorado Revised Statutes, add 29-1-208 as20
follows:21
29-1-208. Local government thermal energy aggregation -22
contracting authority - revenue bonds - private operators -23
definitions.24
(1) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE25
REQUIRES:26
(a) "LOCAL GOVERNMENT" MEANS A STATUTORY OR HOME RULE27
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CITY, TOWN, COUNTY, CITY AND COUNTY, OR SPECIAL DISTRICT.1
(b) "PUBLIC UTILITIES COMMISSION" MEANS THE PUBLIC UTILITIES2
COMMISSION CREATED IN SECTION 40-2-101.3
(c) "THERMAL ENERGY" HAS THE MEANING SET FORTH IN SECTION4
40-3.2-108 (2)(r).5
(d) "THERMAL ENERGY NETWORK" HAS THE MEANING SET FORTH6
IN SECTION 40-3.2-108 (2)(s).7
(e) "THERMAL ENERGY SERVICE AGREEMENT" MEANS A CONTRACT8
BETWEEN A LOCAL GOVERNMENT AND ONE OR MORE OTHER PARTIES FOR9
THE PURCHASE, SALE, DELIVERY, OR CAPACITY RESERVATION OF THERMAL10
ENERGY OR THERMAL ENERGY NETWORK SERVICE.11
(2) (a) A LOCAL GOVERNMENT MAY AGGREGATE THERMAL12
ENERGY DEMAND FOR BUILDINGS AND FACILITIES OWNED OR MANAGED BY13
THE LOCAL GOVERNMENT WITH DEMAND FROM OTHER ENTITIES ,14
INCLUDING PRIVATE ENTITIES THAT ELECT TO PARTICIPATE IN THE15
THERMAL ENERGY NETWORK.16
(b) A LOCAL GOVERNMENT THAT AGGREGATES THERMAL ENERGY17
DEMAND PURSUANT TO THIS SUBSECTION (2) IS NOT CONSIDERED A PUBLIC18
UTILITY OR A MUNICIPAL UTILITY AND IS NOT SUBJECT TO REGULATION BY19
THE PUBLIC UTILITIES COMMISSION.20
(3) (a) A LOCAL GOVERNMENT MAY ENTER INTO THERMAL ENERGY21
SERVICE AGREEMENTS FOR A TERM NOT TO EXCEED TWENTY-FIVE YEARS,22
SUBJECT TO ANNUAL APPROPRIATION BY THE LOCAL GOVERNMENT.23
(b) A LOCAL GOVERNMENT MAY ENTER INTO24
INTERGOVERNMENTAL AGREEMENTS WITH OTHER LOCAL GOVERNMENTS25
PURSUANT TO SECTION 29-1-203 FOR THE DEVELOPMENT, OPERATION, OR26
FINANCING OF A THERMAL ENERGY NETWORK.27
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(c) A LOCAL GOVERNMENT MAY ENTER INTO A CONTRACT WITH A1
PRIVATE ENTITY FOR THE DESIGN , CONSTRUCTION , OPERATION ,2
MAINTENANCE, OR MANAGEMENT OF A THERMAL ENERGY NETWORK ON3
BEHALF OF THE LOCAL GOVERNMENT IF THE CONTRACT IS APPROVED BY4
THE GOVERNING BODY OF THE LOCAL GOVERNMENT.5
(4) A PRIVATE ENTITY, OTHER THAN A UTILITY REGULATED BY THE6
PUBLIC UTILITIES COMMISSION, THAT OPERATES, MAINTAINS, OR MANAGES7
A THERMAL ENERGY NETWORK ON BEHALF OF A LOCAL GOVERNMENT IS8
NOT CONSIDERED A MUNICIPAL UTILITY OR A PUBLIC UTILITY, AS DEFINED9
IN SECTION 40-1-103, AND IS NOT SUBJECT TO REGULATION BY THE PUBLIC10
UTILITIES COMMISSION.11
(5) (a) IF A LOCAL GOVERNMENT IS OTHERWISE AUTHORIZED BY12
LAW TO ISSUE BONDS , THE LOCAL GOVERNMENT MAY ISSUE REVENUE13
BONDS, GENERAL OBLIGATION BONDS, OR OTHER FINANCING MECHANISMS14
AUTHORIZED BY LAW FOR THE PURPOSE OF FINANCING THE DESIGN ,15
CONSTRUCTION, ACQUISITION, OR IMPROVEMENT OF THERMAL ENERGY16
NETWORK INFRASTRUCTURE, INCLUDING PIPES, INTERCONNECTIONS, HEAT17
EXCHANGERS, GROUND-SOURCE LOOPS , CUSTOMER CONNECTIONS , AND18
OTHER INFRASTRUCTURE RELATED TO THE DISTRIBUTION OF THERMAL19
ENERGY.20
(b) IF A LOCAL GOVERNMENT ISSUES B ONDS PURSUANT TO THIS21
SUBSECTION (5), THE BONDS MUST BE PAYABLE SOLELY FROM THE22
REVENUE DERIVED FROM THE OPERATION OF THE THERMAL ENERGY23
NETWORK AND DO NOT CONSTITUTE A GENERAL OBLIGATION OF THE24
LOCAL GOVERNMENT.25
(c) G ENERAL OBLIGATION BONDS ISSUED PURSUANT TO THIS26
SUBSECTION (5) ARE SUBJECT TO SECTION 20 OF ARTICLE X OF THE STATE27
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CONSTITUTION AND ALL OTHER APPLICABLE LAWS.1
(6) A LOCAL GOVERNMENT MAY PROVIDE THERMAL ENERGY2
SERVICE TO PARTICIPANTS LOCATED OUTSIDE THE JURISDICTIONAL3
BOUNDARIES OF THE LOCAL GOVERNMENT IF:4
(a) T HE LOCAL GOVERNMENT HAS ENTERED INTO AN5
INTERGOVERNMENTAL AGREEMENT IN ACCORDANCE WITH SECTION6
29-1-203 WITH THE LOCAL GOVERNMENT IN WHICH THE PARTICIPANT7
RECEIVING THE THERMAL ENERGY SERVICE IS LOCATED; OR8
(b) T HE LOCAL GOVERNMENT AND THE PARTICIPANT HAVE9
ENTERED INTO A THERMAL ENERGY SERVICE AGREEMENT.10
(7) THE PROVISION OF THERMAL ENERGY SERVICE IN ACCORDANCE11
WITH THIS SECTION SHALL NOT BE CONSTRUED AS THE PROVISION OF12
NATURAL GAS SERVICE AND DOES NOT CONSTITUTE A VIOLATION OF ANY13
EXCLUSIVE FRANCHISE AGREEMENT FOR THE DISTRIBUTION OF NATURAL14
GAS.15
(8) A THERMAL ENERGY SERVICE AGREEMENT ENTERED INTO16
PURSUANT TO THIS SECTION MAY BE SUBMITTED AS EVIDENCE OF17
CUSTOMER DEMAND IN ANY PROCEEDING BEFORE THE PUBLIC UTILITIES18
COMMISSION CONDUCTED PURSUANT TO SECTION 40-4-121.19
(9) NOTHING IN THIS SECTION EXPANDS OR LIMITS THE AUTHORITY20
OF THE PUBLIC UTILITIES COMMISSION OVER A PUBLIC UTILITY REGULATED21
UNDER TITLE 40. EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION ,22
THERMAL ENERGY SYSTEMS AUTHORIZED PURSUANT TO THIS SECTION ARE23
NOT REGULATED BY THE PUBLIC UTILITIES COMMISSION AND ARE24
GOVERNED BY LOCAL GOVERNMENT CONTRACTING AUTHORITY.25
SECTION 4. In Colorado Revised Statutes, add 30-11-134 as26
follows:27
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30-11-134. Thermal energy network agreements.1
A BOARD OF COUNTY COMMISSIONERS MAY ENTER INTO2
AGREEMENTS WITH ONE OR MORE ENTITIES , INCLUDING OTHER LOCAL3
GOVERNMENTAL ENTITIES , FOR THE PROVISION OF SERVICE FROM A4
THERMAL ENERGY NETWORK IN ACCORDANCE WITH SECTION 40-4-121 (7)5
OR 29-1-208.6
SECTION 5. In Colorado Revised Statutes, 31-15-707, amend7
(1)(a)(I) as follows:8
31-15-707. Municipal utilities.9
(1) The governing body of each municipality has the power:10
(a) (I) To acquire waterworks, gasworks, and gas distribution11
systems for the distribution of gas of any kind or electric light and power12
works and distribution systems, or heating and cooling works and13
distribution systems for the distribution of heat and cooling obtained from14
geothermal resources, solar or wind energy, hydroelectric or renewable15
biomass resources, including waste and cogenerated heat, and all16
appurtenances necessary to any of said THE works or systems or to17
authorize the er ection, ownersh ip, operation, and maintenance of such18
THE works and systems by others. No such works or systems, except19
waterworks OR HEATING AND COOLING WORKS AND DISTRIBUTION20
SYSTEMS FOR THE DISTRIBUTION OF HEAT AND COOLING OBTAINED FROM21
GEOTHERMAL RESOURCES OR FROM WASTE AND COGENERATED HEAT, shall22
be acquired or erected by a municipality until the question of acquiring or23
erecting the same WORKS OR SYSTEMS is submitted at a regular or special24
election and approved in the manner provided for authorization of bonded25
indebtedness by section 31-15-302 (1)(d) and in accordance with the26
requirements of law, including requirements of law relating to the27
SB26-142-10-
acquisition and financing of public utilities by municipalities. The1
question of acquiring or erecting a waterworks need not be so OR A2
HEATING AND COOLING WORKS AND DISTRIBUTION SYSTEMS FOR THE3
DISTRIBUTION OF HEAT AND COOLING OBTAINED FROM GEOTHERMAL4
RESOURCES OR FROM WASTE AND COGENERATED HEAT DOES NOT NEED TO5
BE submitted and approved at an election.6
SECTION 6. In Colorado Revised Statutes, 31-15-713, amend7
(1)(a) as follows:8
31-15-713. Power to sell public works - real property.9
(1) The governing body of each municipality has the power:10
(a) To sell and dispose of waterworks, ditches, gasworks,11
geothermal systems, solar systems, electric light works, THERMAL ENERGY12
NETWORKS AS DEFINED IN SECTION 40-3.2-108 (2)(s), or other public13
utilities, public buildings, real property used or held for park purposes, or14
any other real property used or held for any governmental purpose. Before15
any such sale is made, the question of said THE sale and the terms and16
consideration thereof OF THE SALE shall be submitted at a regular or17
special election and approved in the manner provided for authorization of18
bonded indebtedness by section 31-15-302 (1)(d).19
SECTION 7. In Colorado Revised Statutes, 31-15-901, add20
(1)(e) as follows:21
31-15-901. Miscellaneous powers.22
(1) The governing body of each municipality has the power:23
(e) T O ENTER INTO AGREEMENTS WITH ONE OR MORE ENTITIES ,24
INCLUDING OTHER LOCAL GOVERNMENTAL ENTITIES, FOR THE PROVISION25
OF SERVICE FROM A THERMAL ENERGY NETWORK IN ACCORDANCE WITH26
SECTION 40-4-121 (7).27
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SECTION 8. In Colorado Revised Statutes, 32-1-1001, add1
(1)(p) as follows:2
32-1-1001. Common powers - definitions.3
(1) For and on behalf of the special district, the board has the4
following powers:5
(p) T O ENTER INTO AGREEMENTS WITH ONE OR MORE PARTIES ,6
INCLUDING OTHER LOCAL GOVERNMENTAL ENTITIES, FOR THE PROVISION7
OF SERVICE FROM A THERMAL ENERGY NETWORK IN ACCORDANCE WITH8
SECTION 40-4-121 (7) OR 29-1-208.9
SECTION 9. In Colorado Revised Statutes, add 37-90.5-112 as10
follows:11
37-90.5-112. Geothermal data collection - duties of commission12
- gifts, grants, or donations - report - repeal.13
(1) (a) T HE COMMISSION AND THE COLORADO GEOLOGICAL14
SURVEY, ESTABLISHED IN SECTION 23-41-203, SHALL FACILITATE THE15
COLLECTION OF DATA REGARDING GEOTHERMAL RESOURCES IN THE STATE.16
IN CONSIDERATION OF AVAILABLE MONEY , THE COMMISSION AND THE17
COLORADO GEOLOGICAL SURVEY MAY:18
(I) COLLECT DATA TO INFORM THE ASSESSMENT OR DEVELOPMENT19
OF GEOTHERMAL RESOURCES IN THE STATE;20
(II) CONSIDER THE USE OF OIL AND GAS WELLS SCHEDULED TO BE21
PLUGGED AND ABANDONED AS ORPHANED WELLS, AS DEFINED IN SECTION22
34-60-133 (8)(f); MARGINAL WELLS, AS DEFINED IN SECTION 34-60-13323
(8)(d.5); OR OTHER OIL AND GAS WELLS IDENTIFIED BY AN OIL AND GAS24
OPERATOR;25
(III) C ONSIDER THE USE OF MONITORING AND OBSERVATION26
WELLS, AS DEFINED IN SECTION 37-91-102 (10.5); TEST HOLES, AS DEFINED27
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IN SECTION 37-91-102 (15.7), AUTHORIZED BY THE STATE BOARD OF1
EXAMINERS OF WATER WELL AND GROUND HEAT EXCHANGER2
CONTRACTORS, CREATED IN SECTION 37-91-103; OR OTHER WELLS , AS3
DEFINED IN SECTION 37-91-102 (16), IDENTIFIED BY THE STATE ENGINEER,4
APPOINTED PURSUANT TO SECTION 37-80-101;5
(IV) A SSESS BOTTOM -HOLE TEMPERATURES AND THERMAL6
GRADIENTS FROM WELLS, AS DESCRIBED IN SUBSECTIONS (1)(a)(II) AND7
(1)(a)(III) OF THIS SECTION;8
(V) UTILIZE EXISTING INFRASTRUCTURE OR DRILL NEW WELLS FOR9
DATA COLLECTION IF FUNDING IS AVAILABLE;10
(VI) P RIORITIZE THE COLLECTION OF BOTTOM -HOLE11
TEMPERATURES, THE MEASUREMENT AND EVALUATION OF THERMAL12
GRADIENTS, AND THE COLLECTION OF OTHER RELEVANT DATA THAT13
WOULD SUPPORT INCREASED UNDERSTANDING OF AVAILABLE14
GEOTHERMAL RESOURCES OR THAT COULD FACILITATE OR INFORM:15
(A) THE PRODUCTION OF GEOTHERMAL ENERGY;16
(B) D RILLING OF RESERVOIR DEPTH RESOURCE EXPLORATION ,17
CHARACTERIZATION, OR CONFIRMATION WELLS TO GATHER ADDITIONAL18
DATA AND INFORMATION;19
(C) FIELD TESTS OR OTHER TESTS AT SITES WITH POTENTIAL FOR20
HYDROTHERMAL, NEXT-GENERATION DEVELOPMENT, OR ELECTRIC POWER21
GENERATION; OR22
(D) T HE DEPLOYMENT OF LOW -TEMPERATURE GEOTHERMAL23
TECHNOLOGIES FOR HEATING, COOLING, OR OTHER DIRECT USES; AND24
(VII) C OLLECT ANY ADDITIONAL RELEVANT DATA OR25
INFORMATION, INCLUDING:26
(A) DATA RELATED TO RESOURCES IN HOT DRY ROCK;27
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(B) TEMPERATURE AT DEPTH;1
(C) INFORMATION RELATED TO SUBSURFACE PERMEABILITY AND2
FRACTURE NETWORKS;3
(D) DATA RELATED TO LOCAL STRESS REGIMES; AND4
(E) T HERMAL CONDUCTIVITY , THERMAL DIFFUSIVITY , AND5
UNDISTURBED GROUND TEMPERATURE.6
(b) T HE DATA COLLECTION CONDUCTED PURSUANT TO THIS7
SUBSECTION (1) MUST BE:8
(I) CONDUCTED SUBJECT TO PRIVATE PROPERTY RIGHTS;9
(II) CONDUCTED WITHOUT COMPELLING THE PUBLIC RELEASE OF10
PROPRIETARY DATA WITHOUT THE CONSENT OF THE DATA OWNER;11
(III) C ONDUCTED WITHOUT INCREASING THE RISK OF ADVERSE12
IMPACTS TO PUBLIC HEALTH , SAFETY , AND WELFARE , INCLUDING THE13
ENVIRONMENT AND WILDLIFE RESOURCES; AND14
(IV) O RGANIZED IN A SEARCHABLE FORMAT THAT IS MADE15
AVAILABLE AT NO COST TO THE PUBLIC.16
(c) (I) THE COMMISSION AND THE COLORADO GEOLOGICAL SURVEY17
MAY CONTRACT WITH THIRD -PARTY ENTITIES TO CONDUCT THE DATA18
COLLECTION PURSUANT TO THIS SUBSECTION (1).19
(II) T HE COMMISSION MAY SEEK , ACCEPT , AND EXPEND GIFTS ,20
GRANTS, OR DONATIONS FROM PRIVATE OR PUBLIC SOURCES FOR THE21
PURPOSES OF CONDUCTING THE DATA COLLECTION PURSUANT TO THIS22
SUBSECTION (1).23
(III) THE COMMISSION MAY EXPEND ANY MONEY APPROPRIATED24
BY THE GENERAL ASSEMBLY FOR THE PURPOSES OF CONDUCTING THE DATA25
COLLECTION PURSUANT TO THIS SUBSECTION (1).26
(d) (I) THE COLLECTION OF DATA CONDUCTED PURSUANT TO THIS27
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SUBSECTION (1) IS CONTINGENT ON AVAILABLE APPROPRIATIONS OR GIFTS,1
GRANTS, OR DONATIONS RECEIVED FOR THIS PURPOSE AND DOES NOT2
IMPAIR THE COLORADO GEOLOGICAL SURVEY'S OBLIGATION TO FULFILL3
EXISTING STATUTORY RESPONSIBILITIES . THE COLORADO GEOLOGICAL4
SURVEY SHALL NOT REDUCE EXISTING COMMITMENTS OF MONEY MADE BY5
THE COLORADO GEOLOGICAL SURVEY FROM THE SEVERANCE TAX6
OPERATIONAL FUND, CREATED IN SECTION 39-29-109 (2)(b)(I), OR THE7
GENERAL FUND TO CONDUCT THE DATA COLLECTION.8
(II) T HE COLLECTION OF DATA CONDUCTED PURSUANT TO THIS9
SUBSECTION (1) IS CONTINGENT ON AVAILABLE APPROPRIATIONS OR GIFTS,10
GRANTS, OR DONATIONS RECEIVED FOR THIS PURPOSE AND DOES NOT11
IMPAIR THE COMMISSION'S OBLIGATION TO FULFILL EXISTING STATUTORY12
RESPONSIBILITIES. THE COMMISSION SHALL NOT REDUCE EXISTING13
COMMITMENTS OF MONEY MADE BY THE COMMISSION FROM THE14
SEVERANCE TAX OPERATIONAL FUND , CREATED IN SECTION 39-29-10915
(2)(b)(I), OR THE GENERAL FUND TO CONDUCT THE DATA COLLECTION.16
(2) (a) THE COMMISSION SHALL DEVELOP RECOMMENDATIONS TO17
ENCOURAGE THE SAFE AND EFFECTIVE DEVELOPMENT OF GEOTHERMAL18
RESOURCES IN THE STATE.19
(b) (I) IN DEVELOPING THE RECOMMENDATIONS PURSUANT TO THIS20
SUBSECTION (2), THE COMMISSION MAY CONSIDER MEASURES THAT21
FACILITATE THE SAFE AND EFFECTIVE DEVELOPMENT OF GEOTHERMAL22
RESOURCES, INCLUDING THE CREATION OF A GEOTHERMAL DEVELOPMENT23
AUTHORITY.24
(II) ANY RECOMMENDED GEOTHERMAL DEVELOPMENT AUTHORITY25
MAY BE STRUCTURED TO FACILITATE PUBLIC -PRIVATE PARTNERSHIPS ,26
SECURE FEDERAL FUNDING , AND PROVIDE FINANCIAL RISK -MITIGATION27
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MECHANISMS FOR DEEP EXPLORATORY DRILLING AND ASSOCIATED1
TRANSMISSION INFRASTRUCTURE OR FOR CONDUCTING THERMAL ENERGY2
NETWORK STUDIES OR DEVELOPING A THERMAL ENERGY NETWORK. ANY3
RECOMMENDED GEOTHERMAL DEVELOPMENT AUTHORITY MUST BE4
NONREGULATORY IN NATURE.5
(c) IN DEVELOPING THE RECOMMENDATIONS PURSUANT TO THIS6
SUBSECTION (2), THE COMMISSION SHALL CONSULT WITH:7
(I) STATE AGENCIES WITH SUBJECT MATTER EXPERTISE RELEVANT8
TO THE RECOMMENDATIONS, INCLUDING:9
(A) THE COLORADO GEOLOGICAL SURVEY;10
(B) T HE COLORADO ENERGY OFFICE CREATED IN SECTION11
24-38.5-101;12
(C) THE DIVISION OF WATER RESOURCES IN THE DEPARTMENT OF13
NATURAL RESOURCES; AND14
(D) THE COLORADO OFFICE OF ECONOMIC DEVELOPMENT CREATED15
IN SECTION 24-48.5-101;16
(II) S TAKEHOLDERS WITH TECHNICAL OR ECONOMIC EXPERTISE17
REGARDING THE DEVELOPMENT OF GEOTHERMAL RESOURCES , AS18
DETERMINED BY THE COMMISSION; AND19
(III) A NY OTHER PERSON THE COMMISSION DETERMINES20
NECESSARY TO DEVELOP RECOMMENDATIONS FOR THE SAFE AND21
EFFECTIVE DEVELOPMENT OF GEOTHERMAL RESOURCES IN THE STATE.22
(3) ON OR BEFORE NOVEMBER 15, 2026, THE COMMISSION SHALL23
SUBMIT A REPORT THAT SUMMARIZES THE RECOMMENDATIONS DEVELOPED24
PURSUANT TO SUBSECTION (2) OF THIS SECTION TO THE HOUSE OF25
REPRESENTATIVES ENERGY AND ENVIRONMENT COMMITTEE AND THE26
SENATE TRANSPORTATION AND ENERGY COMMITTEE, OR THEIR SUCCESSOR27
SB26-142-16-
COMMITTEES.1
(4) THIS SECTION IS REPEALED, EFFECTIVE SEPTEMBER 1, 2028.2
SECTION 10. In Colorado Revised Statutes, 40-2-127.5, amend3
(2)(a)(IV), (6)(a)(I), and (6)(a)(II) introductory portion as follows:4
40-2-127.5. Community energy funds - community geothermal5
gardens - rules - legislative declaration - definitions - repeal.6
(2) Definitions. As used in this section, unless the context7
otherwise requires, the definitions in section 40-2-124 apply, and:8
(a) (IV) A community geothermal garden must have a nameplate9
rating of five NET ELECTRIC GENERATING CAPACITY OF TWENTY -FIVE10
megawatts or less. except that the commission may, in rules adopted11
pursuant to subsection (3)(b) of this section, approve the formation of a12
community geothermal garden with a nameplate rating of up to ten13
megawatts.14
(6) Purchases of the output from community geothermal15
gardens.16
(a) (I) Each qualifying retail utility may SHALL set forth in its plan17
for acquisition of renewable resources a plan to purchase the electricity18
and renewable energy credits generated from one or more community19
geothermal gardens over the period covered by the plan.20
(II) For each qualifying retail utility's compliance years21
commencing in 2026 and thereafter, the commission shall determine the22
minimum and maximum purchases of electrical output from newly23
installed community geothermal gardens of different output capacity that24
the qualifying retail utility may SHALL plan to acquire. In addition, as25
necessary and appropriate, the commission shall formulate and implement26
policies consistent with this section that simultaneously encourage:27
SB26-142-17-
SECTION 11. In Colorado Revised Statutes, add 40-2-140 as1
follows:2
40-2-140. Geothermal energy development - small-scale3
geothermal projects - large-scale geothermal projects - commission4
duties - rules - definitions.5
(1) Definitions. AS USED IN THIS SECTION, UNLESS THE CONTEXT6
OTHERWISE REQUIRES:7
(a) "INVESTOR-OWNED ELECTRIC UTILITY" OR "UTILITY" MEANS AN8
INVESTOR-OWNED UTILITY THAT PROVIDES RETAIL ELECTRIC SERVICE TO9
CUSTOMERS IN THE STATE AND IS REGULATED BY THE COMMISSION.10
(b) "LARGE-SCALE GEOTHERMAL PROJECT" MEANS A GEOTHERMAL11
PROJECT OR GEOTHERMAL PROJECTS IDENTIFIED BY A UTILITY PURSUANT12
TO SUBSECTION (3) OF THIS SECTION THAT INDIVIDUALLY OR IN13
AGGREGATE PRODUCE MORE THAN TWENTY -FIVE MEGAWATTS OF NET14
ELECTRIC GENERATING CAPACITY.15
(c) "NET ELECTRIC GENERATING CAPACITY" MEANS THE MAXIMUM16
CONTINUOUS ELECTRICAL OUTPUT, EXPRESSED IN MEGAWATTS, DELIVERED17
TO THE TRANSMISSION OR DISTRIBUTION SYSTEM, EXCLUDING AUXILIARY18
OR PARASITIC LOADS REQUIRED FOR ON-SITE PLANT OPERATIONS.19
(d) "SMALL-SCALE GEOTHERMAL PROJECT" MEANS A GEOTHERMAL20
PROJECT IDENTIFIED BY A UTILITY PURSUANT TO SUBSECTION (2) OF THIS21
SECTION THAT PRODUCES TWENTY -FIVE MEGAWATTS OR LESS OF NET22
ELECTRIC GENERATING CAPACITY.23
(2) Small-scale geothermal projects.24
(a) AN INVESTOR-OWNED ELECTRIC UTILITY SHALL IDENTIFY ONE25
OR MORE POTENTIAL SMALL-SCALE GEOTHERMAL PROJECTS AT SPECIFIC26
LOCATIONS OR AS COMMUNITY GEOTHERMAL GARDENS , AS DEFINED IN27
SB26-142-18-
SECTION 40-2-127.5 (2)(a).1
(b) W HEN CONSIDERING THE DEVELOPMENT OF SMALL -SCALE2
GEOTHERMAL PROJECTS, AN INVESTOR-OWNED ELECTRIC UTILITY SHALL3
ISSUE A REQUEST FOR PROPOSALS TO SOLICIT PROPOSALS AND BIDS FOR4
DEVELOPMENT OF SMALL -SCALE GEOTHERMAL PROJECTS THAT THE5
UTILITY MAY SUBMIT TO THE COMMISSION IN ACCORDANCE WITH6
SUBSECTION (2)(c) OF THIS SECTION.7
(c) N O LATER THAN ONE HUNDRED TWENTY DAYS AFTER AN8
INVESTOR -OWNED ELECTRIC UTILITY CONCLUDES THE9
REQUEST-FOR-PROPOSAL PERIOD CONDUCTED IN ACCORDANCE WITH10
SUBSECTION (2)(b) OF THIS SECTION , THE INVESTOR -OWNED ELECTRIC11
UTILITY MAY SUBMIT AN APPLICATION TO THE COMMISSION FOR THE12
DEVELOPMENT OF SMALL -SCALE GEOTHERMAL PROJECTS , WHICH13
APPLICATION MUST INCLUDE:14
(I) A DESCRIPTION OF THE SMALL -SCALE GEOTHERMAL PROJECT15
AND WHETHER IT IS LOCATION SPECIFIC OR A COMMUNITY GEOTHERMAL16
GARDEN;17
(II) THE PROPOSED LOCATION OF THE SMALL-SCALE GEOTHERMAL18
PROJECT;19
(III) T HE AMOUNT OF ELECTRICITY , MEASURED IN20
MEGAWATT-HOURS, THAT WILL BE GENERATED FROM THE SMALL-SCALE21
GEOTHERMAL PROJECT; AND22
(IV) AN ESTIMATE OF THE PROJECTED TOTAL CAPITAL COST AND23
OPERATING COST OF THE SMALL -SCALE GEOTHERMAL PROJECT AND THE24
IMPACT THAT THE COST WILL HAVE ON THE UTILITY'S CUSTOMERS.25
(d) THE COMMISSION SHALL APPROVE, CONDITIONALLY APPROVE,26
DENY, OR MODIFY AN INVESTOR-OWNED ELECTRIC UTILITY'S APPLICATION27
SB26-142-19-
SUBMITTED PURSUANT TO THIS SUBSECTION (2) WITHIN EIGHTY DAYS1
AFTER RECEIVING THE APPLICATION.2
(e) IN EVALUATING A SMALL-SCALE GEOTHERMAL PROJECT BID OR3
PROPOSAL, THE COMMISSION SHALL EVALUATE THE BID OR PROPOSAL4
SUBMITTED BY AN INVESTOR -OWNED ELECTRIC UTILITY BASED ON5
WHETHER:6
(I) THE PROJECTED TOTAL CAPITAL AND OPERATING COST OF THE7
SMALL-SCALE GEOTHERMAL PROJECT AND THE PROJECT 'S IMPACT ON8
RATEPAYERS IS REASONABLE IN CONSIDERATION OF GREENHOUSE GAS9
EMISSION REDUCTIONS AND OTHER RELEVANT BENEFITS , INCLUDING10
RESOURCE ADEQUACY NEEDS, LONG-TERM CAPACITY ACCREDITATION, THE11
NEED FOR CLEAN FIRM GENERATION RESOURCES, AND ACHIEVING STATE12
ENERGY POLICY GOALS, AS DETERMINED BY THE COMMISSION; AND13
(II) T HE DEVELOPMENT OF THE SMALL -SCALE GEOTHERMAL14
PROJECT IS IN THE PUBLIC INTEREST.15
(f) AS PART OF AN APPLICATION SUBMITTED TO THE COMMISSION16
PURSUANT TO THIS SUBSECTION (2), THE INVESTOR -OWNED ELECTRIC17
UTILITY MAY REQUEST, TO THE EXTENT NECESSARY:18
(I) A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY;19
(II) A PPROVAL FOR ANY PROCUREMENT AGREEMENTS AND20
ASSOCIATED COST RECOVERY BY THE INVESTOR -OWNED ELECTRIC21
UTILITY; AND22
(III) APPROVAL OF A RETURN ON INVESTED CAPITAL RECOVERY23
APPROACH FOR ANY PROJECT OWNED BY THE INVESTOR-OWNED ELECTRIC24
UTILITY THAT IS DEVELOPED IN ACCORDANCE WITH THIS SECTION.25
(3) Large-scale geothermal projects.26
(a) W HEN CONSIDERING THE DEVELOPMENT OF LARGE -SCALE27
SB26-142-20-
GEOTHERMAL PROJECTS, AN INVESTOR-OWNED ELECTRIC UTILITY SHALL1
ISSUE A REQUEST FOR PROPOSALS TO SOLICIT PROPOSALS AND BIDS FOR2
DEVELOPMENT OF LARGE -SCALE GEOTHERMAL PROJECTS THAT THE3
UTILITY MAY SUBMIT TO THE COMMISSION IN ACCORDANCE WITH4
SUBSECTION (3)(b) OR (4) OF THIS SECTION.5
(b) N O LATER THAN ONE HUNDRED TWENTY DAYS AFTER AN6
INVESTOR -OWNED ELECTRIC UTILITY CONCLUDES THE7
REQUEST-FOR-PROPOSAL PERIOD CONDUCTED IN ACCORDANCE WITH8
SUBSECTION (3)(a) OF THIS SECTION , THE INVESTOR -OWNED ELECTRIC9
UTILITY MAY SUBMIT AN APPLICATION TO THE COMMISSION FOR THE10
DEVELOPMENT OF LARGE -SCALE GEOTHERMAL PROJECTS , WHICH11
APPLICATION MUST INCLUDE:12
(I) A DESCRIPTION OF THE LARGE -SCALE GEOTHERMAL PROJECT13
AND WHETHER IT IS A SINGLE PROJECT OR AN AGGREGATE OF MULTIPLE14
GEOTHERMAL PROJECTS;15
(II) THE PROPOSED LOCATION OR LOCATIONS OF THE LARGE-SCALE16
GEOTHERMAL PROJECT;17
(III) T HE TOTAL AMOUNT OF ELECTRICITY , MEASURED IN18
MEGAWATT-HOURS, THAT WILL BE GENERATED FROM THE LARGE-SCALE19
GEOTHERMAL PROJECT AND THE ACCREDITED CAPACITY ASSOCIATED WITH20
THE PROJECT OR PROJECTS; AND21
(IV) AN ESTIMATE OF THE PROJECTED TOTAL CAPITAL COST AND22
OPERATING COST OF THE LARGE -SCALE GEOTHERMAL PROJECT AND THE23
IMPACT THAT THE COST WILL HAVE ON THE UTILITY'S CUSTOMERS.24
(c) THE COMMISSION SHALL APPROVE, CONDITIONALLY APPROVE,25
DENY, OR MODIFY AN INVESTOR-OWNED ELECTRIC UTILITY'S APPLICATION26
SUBMITTED PURSUANT TO THIS SUBSECTION (3) WITHIN EIGHTY DAYS27
SB26-142-21-
AFTER RECEIVING THE APPLICATION.1
(d) IN EVALUATING A LARGE-SCALE GEOTHERMAL PROJECT BID OR2
PROPOSAL, THE COMMISSION SHALL EVALUATE THE BID OR PROPOSAL3
SUBMITTED BY AN INVESTOR -OWNED ELECTRIC UTILITY BASED ON4
WHETHER:5
(I) THE PROJECTED TOTAL CAPITAL AND OPERATING COST OF THE6
LARGE-SCALE GEOTHERMAL PROJECT AND THE PROJECT 'S IMPACT ON7
RATEPAYERS IS REASONABLE IN CONSIDERATION OF RELIABILITY ,8
GREENHOUSE GAS EMISSION REDUCTIONS , AND OTHER RELEVANT9
BENEFITS, INCLUDING RESOURCE ADEQUACY NEEDS , LONG -TERM10
CAPACITY ACCREDITATION , THE NEED FOR CLEAN FIRM GENERATION11
RESOURCES, AND ACHIEVING STATE ENERGY POLICY GOALS , AS12
DETERMINED BY THE COMMISSION; AND13
(II) T HE DEVELOPMENT OF THE LARGE -SCALE GEOTHERMAL14
PROJECT IS IN THE PUBLIC INTEREST.15
(e) AS PART OF AN APPLICATION SUBMITTED TO THE COMMISSION16
PURSUANT TO THIS SUBSECTION (3), THE INVESTOR -OWNED ELECTRIC17
UTILITY MAY REQUEST, TO THE EXTENT NECESSARY:18
(I) A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY;19
(II) A PPROVAL FOR ANY PROCUREMENT AGREEMENTS AND20
ASSOCIATED COST RECOVERY BY THE INVESTOR -OWNED ELECTRIC21
UTILITY; AND22
(III) APPROVAL OF A RETURN ON INVESTED CAPITAL RECOVERY23
APPROACH FOR ANY PROJECT OWNED BY THE INVESTOR-OWNED ELECTRIC24
UTILITY THAT IS DEVELOPED IN ACCORDANCE WITH THIS SECTION.25
(f) A N INVESTOR-OWNED ELECTRIC UTILITY MAY ONLY SUBMIT26
ONE APPLICATION TO THE COMMISSION PURSUANT TO THIS SUBSECTION (3)27
SB26-142-22-
AS PART OF THE UTILITY 'S PHASE II ELECTRIC RESOURCE PLAN . AN1
INVESTOR-OWNED ELECTRIC UTILITY SHALL USE THE EXPERIENCE FROM2
CONDUCTING THE SOLICITATION AND SUBMITTING AN APPLICATION3
PURSUANT TO THIS SUBSECTION (3) TO INFORM THE UTILITY'S APPROACH4
IN FUTURE ELECTRIC RESOURCE PLAN PROCEEDINGS RELATED TO5
GEOTHERMAL ENERGY DEVELOPMENT AND OTHER CLEAN FIRM6
TECHNOLOGIES.7
(4) Dedicated procurement.8
(a) I N ACCORDANCE WITH SECTION 40-3-104.3 (1), AN9
INVESTOR-OWNED ELECTRIC UTILITY MAY PARTNER WITH A SPECIFIC10
CUSTOMER OR A SPECIFIC GROUP OF CUSTOMERS FOR THE DEVELOPMENT11
OF A LARGE-SCALE GEOTHERMAL PROJECT OR PROJECTS.12
(b) A N INVESTOR -OWNED ELECTRIC UTILITY MAY SUBMIT AN13
APPLICATION TO THE COMMISSION FOR A LARGE -SCALE GEOTHERMAL14
PROJECT PURSUANT TO THIS SECT ION IF THE PROJECT MEETS THE15
FOLLOWING CONDITIONS:16
(I) THE CUSTOMER OR GROUP OF CUSTOMERS AGREE TO PAY AT17
LEAST FIFTY PERCENT OF THE COST OF DEVELOPING THE LARGE -SCALE18
GEOTHERMAL PROJECT , INCLUDING ALL COSTS TO INTERCONNECT THE19
PROJECT;20
(II) T HE CUSTOMER OR GROUP OF CUSTOMERS AGREES TO21
MINIMUM CAPACITY PAYMENTS AS DETERMINED BY THE COMMISSION;22
(III) THE CUSTOMER OR GROUP OF CUSTOMERS AGREES TO PAY AN23
EXIT FEE OR TERMINATION FEE EQUAL TO ANY REMAINING COST OF THE24
PROJECT AT THE TIME THE CUSTOMER OR GROUP OF CUSTOMERS SEEKS TO25
EXIT THE CONTRACT; AND26
(IV) ANY OTHER CONDITIONS REQUIRED BY THE COMMISSION.27
SB26-142-23-
(c) THE COMMISSION SHALL APPROVE, CONDITIONALLY APPROVE,1
MODIFY, OR DENY AN INVESTOR-OWNED ELECTRIC UTILITY'S APPLICATION2
SUBMITTED PURSUANT TO THIS SUBSECTION (4) WITHIN ONE HUNDRED3
EIGHTY DAYS AFTER RECEIVING THE APPLICATION , OR LONGER IF THE4
COMMISSION DETERMINES IT NEEDS MORE TIME TO CONSIDER THE5
APPLICATION; EXCEPT THAT THE COMMISSION SHALL NOT EXTEND ITS6
REVIEW OF THE APPLICATION LONGER THAN THIRTY DAYS AFTER THE END7
OF THE ONE-HUNDRED-EIGHTY-DAY PERIOD.8
(5) Rules. THE COMMISSION MAY ADOPT ANY RULES NECESSARY9
TO IMPLEMENT AND ENFORCE THIS SECTION.10
SECTION 12. In Colorado Revised Statutes, 40-4-121, add11
(1)(e.5) and (7) as follows:12
40-4-121. Thermal energy network projects - pilot program13
for large gas utilities - application - commission proceeding -14
reporting - thermal energy network for local governments -15
definitions.16
(1) As used in this section, unless the context otherwise requires:17
(e.5) "SPECIAL DISTRICT" HAS THE MEANING SET FORTH IN SECTION18
32-1-103 (20).19
(7) A LOCAL GOVERNMENT OR A SPECIAL DISTRICT MAY20
AGGREGATE THERMAL ENERGY DEMAND FOR THE PURPOSE OF21
FACILITATING SERVICE FROM A THERMAL ENERGY NETWORK IN22
ACCORDANCE WITH SECTION 29-1-208.23
SECTION 13. Act subject to petition - effective date. This act24
takes effect at 12:01 a.m. on the day following the expiration of the25
ninety-day period after final adjournment of the general assembly (August26
12, 2026, if adjournment sine die is on May 13, 2026); except that, if a27
SB26-142-24-
referendum petition is filed pursuant to section 1 (3) of article V of the1
state constitution against this act or an item, section, or part of this act2
within such period, then the act, item, section, or part will not take effect3
unless approved by the people at the general election to be held in4
November 2026 and, in such case, will take effect on the date of the5
official declaration of the vote thereon by the governor.6
SB26-142-25-