Facilitating Nuclear Energy Development

Second Regular Session Seventy-fifth General Assembly STATE OF COLORADO INTRODUCED HOUSE BILL 26-1337 LLS NO. 26-0699.02 Clare Haffner x6137 HOUSE SPONSORSHIP Valdez and Winter T., SENATE SPONSORSHIP (None), House Committees Senate Committees Energy & Environment A BILL FOR AN ACT CONCERNING FACILITATING THE DEVELOPMENT OF NUCLEAR ENERGY PROJECTS IN THE STATE.

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.) The bill requires the Colorado energy office (office) to serve as the state's permitting coordinator for nuclear energy projects. The office is required to: ! Coordinate with developers of nuclear energy projects (developers), stakeholders, and state and local permitting agencies throughout the permitting process and assist 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.

developers in navigating local, state, and federal regulations; ! Build administrative and coordination capacity to prepare for federal funding opportunities; and ! On or before December 1, 2027, recommend to the public utilities commission (commission) factors for the commission to consider when approving the acquisition of a nuclear energy project or other clean firm resources and cost-recovery mechanisms for the development of nuclear energy projects. The bill requires an investor-owned electric utility with more than 500,000 customers to: ! On or before August 1, 2027, solicit requests for information from communities and local governments interested in hosting a nuclear energy project and from potential development partners; and ! Identify, in collaboration with other public utilities, local governments, and developers, potential sites for a nuclear energy project. The bill states that an investor-owned electric utility may submit to the commission, and the commission is required to approve, an application to expend and recover up to $20 million to finance studies regarding potential sites, facility designs, and other activities related to the development of nuclear energy projects in the state. The bill requires the commission to issue an approval or denial of a petition from an investor-owned electric utility regarding a cost-recovery mechanism for a nuclear energy project no later than 6 months after receiving the petition. The bill establishes a statewide goal of identifying at least one nuclear energy project site by 2035 and beginning construction of at least one nuclear energy project by 2040.

Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add part 6 to article 38.5 of title 24 as follows:

PART 6 ADVANCED ENERGY DEVELOPMENT 24-38.5-601. Legislative declaration.

(1) THE GENERAL ASSEMBLY DECLARES THAT IT IS THE POLICY OF THE STATE TO ENCOURAGE THE DEVELOPMENT OF NUCLEAR ENERGY, AND, ACCORDINGLY, COLORADO SHALL HAVE THE GOALS OF:

(a) IDENTIFYING AT LEAST ONE NUCLEAR ENERGY PROJECT SITE BY 2035; AND (b) BEGINNING CONSTRUCTION OF AT LEAST ONE NUCLEAR ENERGY PROJECT BY 2040.

(2) THE GENERAL ASSEMBLY FURTHER DECLARES THAT THE OFFICE SHOULD MAKE EVERY EFFORT TO SECURE FEDERAL FUNDS TO SUPPORT THE COSTS OF IMPLEMENTATION AND DEVELOPMENT OF NUCLEAR ENERGY PROJECTS IN THE STATE.

24-38.5-602. Definitions.

AS USED IN THIS PART 6, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(1) "CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY" MEANS A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY ISSUED BY THE COMMISSION PURSUANT TO ARTICLE 5 OF TITLE 40.

(2) "COMMISSION" MEANS THE PUBLIC UTILITIES COMMISSION CREATED IN SECTION 40-2-101 (1).

(3) "DEVELOPER" MEANS AN OWNER OR OPERATOR OF A NUCLEAR ENERGY PROJECT.

(4) "LOCAL GOVERNMENT" MEANS A COUNTY, CITY, TOWN, OR CITY AND COUNTY.

(5) "NUCLEAR ENERGY PROJECT" MEANS A PROJECT FOR THE CONSTRUCTION AND OPERATION OF A NUCLEAR ENERGY RESOURCE FACILITY.

(6) "OFFICE" MEANS THE COLORADO ENERGY OFFICE CREATED IN SECTION 24-38.5-101.

"PERMITTING AGENCIES" MEANS STATE AND LOCAL GOVERNMENT AGENCIES WITH PERMITTING AUTHORITY.

Advanced nuclear energy development - responsibilities of Colorado energy office - cost-recovery mechanism process.

THE OFFICE SHALL SERVE AS THE STATE'S PERMITTING COORDINATOR FOR NUCLEAR ENERGY PROJECTS BY:

(a) SERVING AS A SINGLE POINT OF CONTACT FOR DEVELOPERS, STAKEHOLDERS, PERMITTING PROCESS;

AND PERMITTING AGENCIES THROUGHOUT THE

(b) COORDINATING WITH PERMITTING AGENCIES TO STREAMLINE PERMITTING PROCESSES AND ALIGN WITH FEDERAL PERMITTING REQUIREMENTS; AND

(c) ASSISTING DEVELOPERS IN NAVIGATING LOCAL, STATE, AND FEDERAL REGULATIONS.

NOTWITHSTANDING ANYTHING IN THIS SECTION TO THE CONTRARY, THE UNITED STATES NUCLEAR REGULATORY COMMISSION HAS THE EXCLUSIVE AUTHORITY TO ISSUE PERMITS RELATED TO THE CONSTRUCTION AND OPERATION OF A NUCLEAR POWER PLANT OR REACTOR PURSUANT TO THE FEDERAL "ATOMIC ENERGY ACT OF 1954", PUB.L.

(3) (a) THE OFFICE SHALL:

(I) BUILD ADMINISTRATIVE AND COORDINATION CAPACITY TO PREPARE FOR FEDERAL FUNDING OPPORTUNITIES, APPLICATIONS, AND AWARD MANAGEMENT; AND

(II) ON OR BEFORE DECEMBER 1, 2027, COLLABORATE WITH RATE-REGULATED PUBLIC UTILITIES AND RELEVANT STAKEHOLDERS TO RECOMMEND TO THE COMMISSION:

(A) FACTORS THE COMMISSION SHALL CONSIDER WHEN DECIDING WHETHER TO APPROVE A RATE-REGULATED PUBLIC UTILITY'S ACQUISITION OF A NUCLEAR ENERGY PROJECT OR OTHER CLEAN FIRM RESOURCES; AND

(B) COST-RECOVERY MECHANISMS FOR THE DEVELOPMENT OF A NUCLEAR ENERGY PROJECT.

(b) FOR THE PURPOSE OF MAKING RECOMMENDATIONS TO THE COMMISSION REGARDING COST-RECOVERY MECHANISMS PURSUANT TO SUBSECTION (3)(a)(II)(B) OF THIS SECTION, THE OFFICE SHALL EVALUATE POTENTIAL COST-RECOVERY MECHANISMS OR PROCESSES RELATED TO COST RECOVERY, INCLUDING:

(I) A PARTIAL OR PHASED CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR A NUCLEAR ENERGY PROJECT;

(II) APPROVAL OF CONCURRENT CAPITAL COST RECOVERY FOR A NUCLEAR ENERGY PROJECT WITHIN THE CONTEXT OF A PARTIAL OR PHASED CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY; OR

(III) APPROVAL OF COST PREMIUMS WITH A CAP.

SECTION 2. In Colorado Revised Statutes, add 40-2-140 as follows: 40-2-140. Nuclear energy projects - requests for information - nuclear energy project siting - cost recovery - definitions. (1) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(a) "DEVELOPER" MEANS AN OWNER OR OPERATOR OF A NUCLEAR ENERGY PROJECT.

(b) "LOCAL GOVERNMENT" MEANS A COUNTY, CITY, TOWN, OR CITY AND COUNTY.

(c) "NUCLEAR ENERGY PROJECT" MEANS A PROJECT FOR THE CONSTRUCTION AND OPERATION OF A NUCLEAR ENERGY RESOURCE FACILITY.

(d) "OFFICE" MEANS THE COLORADO ENERGY OFFICE CREATED IN SECTION 24-38.5-101.

(2) (a) AN INVESTOR-OWNED ELECTRIC UTILITY WITH MORE THAN FIVE HUNDRED THOUSAND CUSTOMERS SHALL:

(I) ON OR BEFORE AUGUST 1, 2027, SOLICIT A REQUEST FOR INFORMATION INTERESTED IN HOSTING A NUCLEAR ENERGY PROJECT;

FROM COMMUNITIES AND LOCAL GOVERNMENTS

(II) ON OR BEFORE AUGUST 1, 2027, SOLICIT A REQUEST FOR INFORMATION DEVELOPING, CONSTRUCTING, OPERATING, OR SERVICING NUCLEAR ENERGY PROJECTS;

FROM POTENTIAL DEVELOPERS WITH EXPERIENCE

(III) IDENTIFY, IN COLLABORATION WITH OTHER PUBLIC UTILITIES, LOCAL GOVERNMENTS , OPPORTUNITIES FOR A NUCLEAR ENERGY PROJECT, TAKING INTO ACCOUNT THE FOLLOWING:

AND DEVELOPERS , POTENTIAL

(A) JOBS AND WORKFORCE TRANSITION OPPORTUNITIES;

(B) REGULATIONS; AND (C) EXISTING INFRASTRUCTURE, WATER, AND ENVIRONMENTAL JUSTICE AND JUST SITING LAND USE TRANSITION CONSIDERATIONS AND COMMUNITY SUPPORT AND BENEFITS;

(IV) WHEN IDENTIFYING POTENTIAL SITES FOR NUCLEAR ENERGY PROJECTS, GIVE PREFERENCE TO A POTENTIAL SITE FOR A NUCLEAR ENERGY PROJECT THAT IS LOCATED IN AN ENERGY COMMUNITY, AS DEFINED BY THE FEDERAL "INFLATION REDUCTION ACT OF 2022", PUB.L.

117-169; AND

(V) WHEN PRACTICABLE, ALIGN IDENTIFICATION OF POTENTIAL SITES FOR NUCLEAR ENERGY PROJECTS WITH LARGE-LOAD SITING AND DEVELOPMENT.

(b) THE COMMISSION SHALL ALLOW FOR EXPEDITED, UP-FRONT COST RECOVERY FOR AN INVESTOR-OWNED ELECTRIC UTILITY WITH MORE THAN FIVE HUNDRED THOUSAND CUSTOMERS FOR EXPENDITURES RELATED TO THE REQUIREMENTS SET FORTH IN SUBSECTION (2)(a) OF THIS SECTION.

(c) AN INVESTOR-OWNED ELECTRIC UTILITY WITH MORE THAN FIVE HUNDRED THOUSAND CUSTOMERS MAY SUBMIT TO THE COMMISSION, AND THE COMMISSION SHALL APPROVE, AN APPLICATION TO EXPEND AND RECOVER UP TO TWENTY MILLION DOLLARS TO FINANCE STUDIES REGARDING POTENTIAL SITES, FACILITY DESIGNS, AND OTHER ACTIVITIES RELATED TO THE DEVELOPMENT OF NUCLEAR ENERGY PROJECTS IN THE STATE.

(d) AN INVESTOR-OWNED ELECTRIC UTILITY WITH MORE THAN FIVE HUNDRED THOUSAND CUSTOMERS SHALL RECOVER STUDY EXPENDITURES APPROVED PURSUANT TO SUBSECTION (2)(c) OF THIS SECTION THROUGH AN EXISTING RATE ADJUSTMENT MECHANISM THAT IS ASSOCIATED WITH THE COST OF GENERATION CAPACITY OR THROUGH DEFERRED ACCOUNTING TREATMENT FOR WHICH THE DEFERRED EXPENDITURES ARE RECOVERABLE IN THE FIRST RATE CASE SUBMITTED AFTER THE COMPLETION OF THE STUDIES.

(3) AN INVESTOR-OWNED ELECTRIC UTILITY MAY PETITION THE COMMISSION FOR COST RECOVERY FOR A NUCLEAR ENERGY PROJECT USING THE COST-RECOVERY MECHANISM RECOMMENDATIONS THAT THE OFFICE RECOMMENDS TO THE COMMISSION PURSUANT TO SECTION 24-38.5-603 (3)(a)(II)(B). (4) THE COMMISSION MAY APPROVE A COST-RECOVERY MECHANISM RECOMMENDED BY THE OFFICE PURSUANT TO SECTION 24-38.5-603 (3)(a)(II)(B). NO LATER THAN SIX MONTHS AFTER RECEIVING A PETITION FROM AN INVESTOR-OWNED ELECTRIC UTILITY REGARDING A COST-RECOVERY MECHANISM FOR A NUCLEAR ENERGY PROJECT, THE COMMISSION SHALL ISSUE AN APPROVAL OR DENIAL OF THE PETITION. IN EVALUATING THE PETITION, THE COMMISSION SHALL CONSIDER HOW COST-RECOVERY MECHANISMS MAY INCENTIVIZE NUCLEAR ENERGY DEVELOPMENT AND PROTECT CUSTOMER UTILITY BILLS.

SECTION 3.

Act subject to petition - effective date - applicability. (1) This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 12, 2026, if adjournment sine die is on May 13, 2026); except that, if a referendum petition is filed pursuant to section 1

(3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

(2) This act applies to nuclear energy projects proposed on or after the applicable effective date of this act.