§ 40-2-126. Transmission Facilities – Biennial Review – Energy Resource Zones – Definition – Plans – Approval – Cost Recovery

1. As used in this section, “energy resource zone” means a geographic area in which transmission constraints hinder the delivery of electricity to Colorado consumers, the development of new electric generation facilities to serve Colorado consumers, or both.
2. Biennially, on or before a date determined by the commission, commencing in 2016, each Colorado electric utility subject to rate regulation by the commission shall:
   1. Designate energy resource zones;
   2. Develop plans for the construction or expansion of transmission facilities necessary to deliver electric power consistent with the timing of the development of beneficial energy resources located in or near such zones;
   3. Consider how transmission can be provided to encourage local ownership of renewable energy facilities, whether through renewable energy cooperatives as provided in section 7-56-210, C.R.S., or otherwise; and
   4. Submit proposed plans, designations, and applications for certificates of public convenience and necessity to the commission for review pursuant to subsection (3) of this section.
3. The commission may, consistent with its authority, approve a utility’s application for a certificate of public convenience and necessity for the cost-effective construction or expansion of transmission facilities pursuant to subsection (2)(b) of this section if the commission finds that:
   1. The construction or expansion:
      1. Is required to:
         1. Ensure the reliable delivery of electricity to Colorado consumers, either alone or in combination with the consumers of other states served by an organized wholesale market as defined in section 40-5-108 (1)(a); or
         2. Enable the utility to meet the renewable energy standards set forth in section 40-2-124 or achieve emission reductions under section 25-7-102 or 40-2-125.5;
      2. Can reasonably accommodate future expansion, through the addition of more lines or greater capacity, as may be required to support the utility’s participation in an organized wholesale market as defined in section 40-5-108 (1)(a); and
   2. The present or future public convenience and necessity require such construction or expansion.
4. Notwithstanding any other provision of law, in response to any application for a certificate of public convenience and necessity for the construction or expansion of transmission facilities that is submitted to the commission pursuant to subsection (2)(d) of this section, the commission shall issue a final order within two hundred forty days after the application is deemed complete and public notice of the application is given; except that the applicant may waive this two-hundred-forty-day deadline. Absent such waiver, if the commission does not issue a final order within that period, the application is deemed approved.
5. In any construction or expansion approved pursuant to this section, the utility shall use its own employees or qualified contractors, or both, but shall not use a contractor unless the contractor’s employees have access to an apprenticeship program registered with the United States department of labor’s office of apprenticeship or by a state apprenticeship council recognized by that office; except that this apprenticeship requirement does not apply to:
   1. The design, planning, or engineering of the transmission facilities;
   2. Management functions to operate the transmission facilities; or
   3. Any work performed in response to a warranty claim.

Source: L. 2007: Entire section added, p. 266, § 2, effective March 27. L. 2016: IP(2) and (2)(d) amended and (4) repealed, (HB 16-1091), ch. 48, p. 114, § 1, effective August 10. L. 2021: IP(3) and (3)(a) amended, (4) RC&RE, and (5) added, (SB 21-072), ch. 329, p. 2110, § 1, effective June 24.

Editor’s note: Section 11 of chapter 329 (SB 21-072), Session Laws of Colorado 2021, provides that the act changing this section applies to conduct occurring on or after June 24, 2021.

Cross references: For the legislative declaration contained in the 2007 act enacting this section, see section 1 of chapter 61, Session Laws of Colorado 2007.