§ 40-2-129. New Resource Acquisitions – Factors in Determination – Local Employment – “Best Value” Metrics – Performance Audit

1. 1. When evaluating electric resource acquisitions and requests for a certificate of convenience and necessity for construction or expansion of generating facilities, including but not limited to pollution control or fuel conversion upgrades and conversion of existing coal-fired plants to natural gas plants, the commission shall consider, in all decisions involved in electric resource acquisition processes, best value regarding employment of Colorado labor, as defined in section 8-17-101 (2)(a), and positive impacts on the long-term economic viability of Colorado communities. To this end, the commission shall require utilities to obtain and provide to the commission the following information regarding “best value” employment metrics: The availability of training programs, including training through apprenticeship programs registered with the United States department of labor’s office of apprenticeship or by state apprenticeship councils recognized by that office; employment of Colorado labor as compared to importation of out-of-state workers; long-term career opportunities; and industry-standard wages, health care, and pension benefits. When a utility proposes to construct new facilities of its own, the utility shall supply similar information to the commission.
   2. Any electric resource acquisition decision must be based in part on review of the “best value” employment metrics criteria set forth in any solicitation document. The commission shall not approve any electric resource plan, acquisition, or power purchase agreement that fails to either:
      1. Provide the “best value” employment metrics documentation specified in the solicitation document; or
      2. In the alternative, certify compliance with objective “best value” employment metrics performance standards set forth in the solicitation document.
   3. The commission may waive the requirements of this section if a utility agrees to use a project labor agreement for construction or expansion of a generating facility.
2. Following development or acquisition of a generating facility by a utility, for all generating facilities owned by the utility that do not emit carbon dioxide, the utility shall use utility employees or qualified contractors if the contractors’ 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 infrastructure;
   2. Management functions to operate the infrastructure; or
   3. Any work included in a warranty.
3. The provisions of this section regarding “best value” employment metrics do not apply to projects involving retail distributed generation, as defined in section 40-2-124 (1)(a)(VIII) or 40-2-127 (2)(b)(I)(B).
4. 1. The state auditor shall conduct or cause to be conducted a performance audit of the commission’s implementation of the “best value” employment metrics requirements of this section, including review of:
      1. The projects subject to subsection (1)(a) of this section that have been approved in the previous ten years;
      2. Whether the work done used contractors that met the criteria specified in this section;
      3. Any shortfalls in enforcement capacity or implementation by the commission;
      4. Current enforcement procedures for investor-owned utilities, independent power producers, and wholesale generation and transmission electric cooperatives; and
      5. Whether and how delayed rule-making proceedings have prevented the “best value” employment metrics requirements of this section from being implemented.
   2. The governor’s office, the commission, and commission staff shall cooperate with stakeholders and the state auditor in conducting the audit and making recommendations for reforms of, or potential alternatives to, the implementation and enforcement of “best value” employment metrics.
   3. Upon completion of a performance audit, the state auditor shall submit a written report to the legislative audit committee, together with any findings and recommendations.

Source: L. 2010: Entire section added, (HB 10-1001), ch. 37, p. 150, § 4, effective August 11. L. 2013: Entire section amended, (HB 13-1292), ch. 266, p. 1406, § 16, effective May 24. L. 2019: Entire section amended, (SB 19-236), ch. 359, p. 3300, § 7, effective May 30. L. 2020: (1)(a) and IP(2) amended, (HB 20-1402), ch. 216, p. 1058, § 71, effective June 30. L. 2021: (4) added, (HB 21-1266), ch. 411, p. 2751, § 22, effective July 2.

Editor’s note: Section 24 of chapter 411 (HB 21-1266), Session Laws of Colorado 2021, provides that the act changing this section applies to conduct occurring on or after July 2, 2021.

Cross references: (1) For the short title (“Keep Jobs In Colorado Act of 2013”) in HB 13-1292, see section 1 of chapter 266, Session Laws of Colorado 2013.

(2) For the short title (“Environmental Justice Act”) and the legislative declaration in HB 21-1266, see sections 1 and 2 of chapter 411, Session Laws of Colorado 2021.