2018 LEGISLATIVE REVIEW C O L O R A D O C L E A N T E C H I N D U S T R I E S A S S O C I A T I O N

B I L L T R A C K E R

2018 W W W . C O L O R A D O C L E A N T E C H . C O M OVERVIEW

Welcome to CCIA's inaugural Legislative Review Report. CCIA advocates for policies to grow and support ’s cleantech cluster and we are active at the local, state and federal level to ensure cleantech has a strong voice in a variety of policy venues. Since 2012, CCIA has had an active, engaged and successful full-time lobbying presence at our state capitol. Our policy activities focus on proactive and reactive legislation with a focus on legislation that creates a favorable business climate for the growth and retention of Colorado's cleantech innovators. In support of these efforts, the CCIA team works year-round to cultivate a positive.....at the capitol and provides members with opportunities to engage and communicate with their legislative leaders. 2016-2018 Activity Snapshot

CCIA's Public Policy Committee is open to all CCIA members and hosts a weekly conference-call during the State Legislative session (January to May) and every two months in the off-session to analyze, discuss and consider supporting or opposing state and federal legislation impacting the cleantech business community. If you are a member of CCIA and would like to participate in the Public Policy Committee, please contact Chris Votoupal, [email protected], with your interest. 1 HB 13 - 1001 HB 16 - 1053 SB 13 - 252 Advanced Industries Hydrogen Fuel Vehicle Renewable Energy Acceleration Act Retail Regs Standard

The Advanced Industries Acceleration Allows the Division of Oil & Public CCIA actively lobbied and testified in Act passed both chambers with a Safety (OPS) to establish rules and support of this bill to increase the strong bipartisan majority. This bill is a guidelines for the retail sales of Renewable Energy Standard (RES) major state investment in economic hydrogen fuel by the end of 2016. This from 10% to 20% by 2020 for development for seven advanced is a pro-innovation bill, sending a strong cooperative electric utilities providing industry clusters (including cleantech). message to the hydrogen fuel vehicle wholesale electricity and large industry that Colorado is open for cooperative electric associations with at business. least 100,000 meters.

The Colorado Cleantech PAC is a registered state political committee established to fund-raise, endorse and make contributions to elect state-level candidates to improve the environment for business and innovation in Colorado’s Cleantech sector.

The bi-partisan Colorado Cleantech PAC is affiliated with CCIA but is a separately funded and registered entity.

2 A NOTE FROM VOTOUPAL GOVERNMENT AFFAIRS

2018 Policy Priorities Heading into the 2018 legislative session, The 2018 General Assembly came to a close on May CCIA was on the watch for several bills with 10. This was a controversial year at the State Capitol potential impact to the cleantech business as the #MeToo movement swept through the community. In particular, we planned to building. Several big ticket items on the table closely monitor the annual budget or (Long included transportation funding, PERA reform and Bill) when it was introduced in April. The general messaging bills common during an election Long Bill would include final numbers on the year. Despite the typical and sometimes atypical Advanced Industries Grant Program, the noise, several important bills made it through the Innovative Workforce (Intern) program and legislative gauntlet in 2018 including two energy several important budgetary placeholder storage bills, an extension of the Advanced Industries items including the funding for the Colorado Export grant program, continuation of the Colorado Energy Office and a solid pro-cleantech budget. Energy Office. Priority areas for CCIA in 2018 included: -Chris Votoupaul, Votoupaul Government Affairs Alternative Fuel Vehicle Utility Infrastructure Advanced Industries Export Grant program extension Utility PUC Storage Targets Economic Development Electric Rates for new load growth (IOUs) Advanced Industries Innovative Workforce (intern) Pro-Cleantech Economic Development

3 BUSINESS

Public Utilities Commission 2018-19 Long Appropriation Electric Utilities Economic Act - HB 18-1322 Annual budget bill included the full funding Development Rates - HB 18-1271 requests for the Colorado Energy Office, Allows Investor Owned Utilities to offer a lower Advanced industry Export Grant Program, electricity rate to a new or existing commercial Advanced Industry Accelerator Grant Program or industrial (C&I) customer (if approved by the and the Innovative Workforce (Intern) Program. PUC) who locate or expand their electricity House Sponsor: Millie Hamner (D) demand by 3 megawatts for ten years. Senate Sponsor: (R) Additionally, a utility may expand existing CCIA Position: Monitor renewable energy programs to service a new Outcome: Signed into law or existing C&I customer making capital investments of greater than $250 million. House Sponsors: Yeulin Willet (D), Colorado Energy Office (D) Reorganization - SB 18-003 Senate Sponsor: Jack Tate (R) CCIA Position: Neutral Repeals several unfunded and dormant Outcome: Signed into Law programs and adds the words 'nuclear, hydro and energy storage" to the office's mission. Provisions on Senate confirmation for the Director of the office and the funding component were removed in committee. The funding component will be pursued via the annual budget process. House Sponsor: Jon Becker (R), Chris Hansen (D) Senate Sponsors: Ray Scott (R) CCIA Position: Monitor Outcome: Signed into Law 4 CLIMATE

Climate Leadership Awards Program - HB 18-1080 Creates a Climate Leadership Awards program under the purview of the state climate change coordinator. House Sponsor: (D) Climate Change Preparedness CCIA Position: Monitor Outcome: Postponed indefinitely in the House & Resiliency - HB 18-1297 Transportation & Energy Committee. Climate Change Preparedness & Resiliency - requires the state to adopt greenhouse gas emission reduction goals including a reduction of Reduce Greenhouse Gas 26% by 2025 when compared with 2005 levels. Emissions by 2050 - HB 18-1274 Also, a reduction in carbon dioxide emissions from electrical generation by 25% by 2025 and Requires statewide greenhouse gas emissions 30% by 2030 compared to 2012 levels. be reduced by eighty percent of the levels of House Sponsors: Brittany Petterson (D), greenhouse gas emissions that existed in the (D) year 2005. Senate Sponsor: (D) House Sponsors: KC Becker (D), CCIA Position: Monitor Jeff Bridges (D) Outcome: Postponed indefinitely in the Senate. Senate Sponsor: Andy Kerr (D) CCIA Position: Monitor Outcome: Postponed indefinitely in the Senate. Prohibit Colorado Involvement Climate Alliance - SB 18-226 Collect Long Term Climate Would prohibit Colorado joining any national or Change Data - SB 18-117 international climate agreement such as the Paris Accords. Collect Long Term Climate Change Data Requires the State to increase its data House Sponsor: Yeulin Willet (D) collection and reporting of a variety of data r/t Senate Sponsors: Kevin Lundberg (R), climate change. John Cooke (R) House Sponsor: Christopher Hansen (D) CCIA Position: Oppose Senate Sponsor: Kerry Donovan (D) Outcome: Postponed indefinitely in the House. CCIA Position: Support Outcome: Postponed Indefinitely in the Senate State Affairs Committee. 5 COMMUNITY

Public Utilities Commission Create Energy Legislation Ethics & Improved Public Review Committee - HB 18-1382 Information Reporting - Create Energy Legislation Review HB 18-1281 Committee would create a committee in the interim session to review energy legislation and Prohibits a person who works for a regulated go on tours throughout the state. utility (in the past four years) or has a direct financial interest from serving on the House Sponsor: Christopher Hansen (D) commission and providing for periodic CCIA Position: Support performance audits. Outcome: Postponed Indefinitely in the House. House Sponsors: (D) Senate Sponsor: (D) CCIA Position: Monitor Outcome: Postponed Indefinitely in the Senate. Pilot Project For Sustainable Communities - SB 18-142 This bill authorizes a state district court to approve one municipal incorporation pilot project creating a sustainable community that is designated as a town. House Sponsor: Jovan Melton (D), (D) Senate Sponsors: John Kefalas (D), Larry Crowder, (R) CCIA Position: Monitor Outcome: Lost

6 TRANSPORTATION

Prewire Residence For Electric Repeal Tax Credits/Alternative Vehicle Charging Port - Fuel Vehicles -SB 18-047 HB 18-1107 Repeals all alternative fuel vehicle tax and lease credits (electric, natural gas, propane, Requires contractors for new residential single conversions) on January 1, 2019 and requires family and condominiums to offer a buyer the the state to estimate the amount of the credits option to "pre-wire" for electric vehicle charging and transfer that funding to the Highway Users infrastructure. Tax Fund. House Sponsors: (D) House Sponsor: (R) Senate Sponsor: (R) Senate Sponsor: Vicki Marble (R) CCIA Position: Support CCIA Position: Oppose Outcome: Postponed indefinitely in the Senate Outcome: Postponed indefinitely in the House. Transportation Committee.

Alternative Fuel Vehicles/Public Utilities - SB 18-216 Allows Investor Owned Utilities to invest in electric vehicle and natural gas infrastructure if a series of criteria are met including - customer choice, grid benefits, increased vehicle adoption and private sector competition.

Senate Sponsors: Kevin Priola (R), Angela Williams, (D) CCIA Position: Support Outcome: Postponed indefinitely in the Senate. 7 UTILITY

Electric Transmission Lines Authorize Community Right or First Refusal - Collaboratio n Contracts - HB 18-1345 HB 18-1428 Would allow investor owned utilities to enter in Would allow a regulated utility the first right of separate tariffs/agreements at the PUC for refusal to build new transmission established additional renewable energy, smart city or through a regional planning process. climate goals. The introduced bill also had a House Sponsors: Jeni Arndt (D), provision to extend the property tax extension Christopher Hansen (D) for community solar gardens then was amended Senate Sponsor: (R), to increase the cap on those gardens from 2 to (D) 5 megawatts. CCIA Position: Monitor Outcome: Postponed indefinitely in the House. House Sponsor: KC Becker (D) Senate Sponsor: John Cooke (R) CCIA Position: Monitor Require 100% Renewable Outcome: Postponed indefinitely in the Senate. Energy By 2035- SB 18-064 Increases the Renewable Energy Standard for Repeal SB 13-252 - SB 18-246 all utilities (IOUs, Rural Electric Associations and Municipal) to 100% by 2035. Would repeal the statutes increasing the Renewable Energy Standard for rural electric House Sponsor: (D) cooperatives from 10 to 20%. Senate Sponsor: Matt Jones (D) Senate Sponsors: John Cooke (R), CCIA Position: Monitor Ray Scott (R) Outcome: Postponed indefinitely in the Senate CCIA Position: Oppose Ag. & Energy Committee. Outcome: Postponed indefinitely in the Senate.

8 ADVANCED INDUSTRIES Extend Advanced Industries Export Acceleration Program - HB 18-1135 The Advanced Industry (AI) Export Grant provides financial assistance for aspiring (new to export) and current (market expansion) Colorado exporters. The grant program supports small and medium-sized AI businesses through funds to offset international business development and marketing costs. OEDIT reimburses up to $15,000, and Colorado businesses provide a 1:1 match for specific international export development needs. AI Export grants were awarded to 25 Colorado companies to advance Colorado exporting in fiscal year 2018. Since the program’s inception in 2013, 78 Colorado companies have been funded. CCIA Position: Support Outcome: Signed in to Law House Sponsors: Tracy Kraft-Tharp (D), James D. Wilson (R), Senate Sponsors: Jack Tate (R)

Created by the Colorado General Assembly in 2013, the Colorado Advanced Industries (AI) Accelerator Program promotes the growth and sustainability of seven key industries, including energy/cleantech. The AI program established matching grants focused on proof-of- concept research, early-stage capital and retention grants, and infrastructure initiatives to help support the seven industries. The energy/cleantech industry has seen great success from the program with nearly $18 Million supporting the growth of energy and cleantech companies and researchers since the inception of the program. source: https://choosecolorado.com/wp-content/uploads/2016/07/AI_Overview.pdf

9 LEGISLATOR OF THE YEAR 2016-2018

2018 Winner Representative Chris Hansen State Representative Chris Hansen finished his first term representing House District 6 in Denver in 2018. In just two years Chris has established himself to be the leader in clean energy policy at the capital. He has worked on bills to increase utility scale storage, increase the community solar garden cap, sustainably fund the Colorado Energy Office, and provide a bonding mechanism to smooth the transition for retiring old coal plants and their local communities.

2017 Winner Senator Kevin Priola State Senator Kevin Priola represents Senate District 25 which includes Brighton, Thornton, Aurora and a large portion of Adams County. He also served four terms in the State House of Representatives, is a CU Boulder Alum and a small business owner. Senator Priola is a strong proponent of business, innovation and technology policy and sponsored bills last session to increase infrastructure for alternative fuel vehicles and to extend a successful energy efficiency utility program.

2016 Winner Senator First elected in 2012, State Senator Owen Hill represents Senate District 10 in El Paso County. In 2016, Senator Hill served as the Chair of the Education Committee and Vice-Chair of the Finance Committee in the Senate. He sponsored legislation that was signed into law to allow start-ups to utilize crowd-funding and to establish the retail sales regulations for hydrogen fuel cell vehicles. We enjoyed working with Senator Hill on the hydrogen fuel cell vehicle legislation as it worked its way through the Senate and look forward to finding issues to work on together in the future.

10 In addition to CCIA's work at the Colorado legislature, our long standing relationship with the Advanced Energy Economy organization offers tremendous insight into activities across the country and in Washington D.C.

Through AEE’s state partner network, the organization works to create a better business climate for the advanced energy sector nationwide. The coalition currently consists of 15 partners representing 26 states.

AEE and its partners work together to leverage success at the state and regional level for impact on the national stage through outreach, policy efforts, communications and media.

Prior to the 2018 Gubernatorial elections, CCIA, AEE and Interwest Energy Alliance partnered to provide Gubernatorial and Attorney General education meetings and present advanced energy priorities for the state.

11 source: https://www.aee.net/state-coalition