As used in this article 9.8, unless the context
otherwise requires:
(1) Community anchor institution means a:
(a) School, as defined in section 24-37.5-902 (10);
(b) Library;
(c) Hospital or other health-care facility licensed or certified pursuant to
section 25-1.5-103;
(d) Law enforcement, emergency medical service provider, or other public
safety agency;
(e) Government office;
(f) Community organization facility at which services to at-risk populations
such as income-eligible households, seniors, or unhoused persons are provided; or
(g) Other critical community service facilities, as determined by the
department by policy.
(2) Cooperative electric association or association has the meaning set
forth in section 40-9.5-102 (1).
(3) Department means the department of local affairs created in section
24-1-125.
(4) Distributed energy resource means an electric generation resource,
including a renewable energy resource or renewable energy storage, that is located
on a property within an electric utility's service territory and that is interconnected
to the electric grid.
(5) Division means the division of local government created in section 24-32-103.
(6) Eligible rural community means a rural community:
(a) That is at significant risk of experiencing severe weather or natural
disaster events; and
(b) In which one or more community anchor institutions are located.
(7) Energy office means the Colorado energy office created in section 24-38.5-101.
(8) Grant program means the microgrids for community resilience grant
program created in section 40-9.8-104 (1)(a).
(9) Island mode means an electric generation system that is not connected
to the electric grid and can operate independent of the grid.
(10) Microgrid means a group of interconnected electric loads and
distributed energy resources with clearly defined electrical boundaries that:
(a) Functions as a single, controllable entity with respect to the electric grid;
and
(b) Can be connected to or disconnected from the electric grid to enable it to
operate either in grid-connected mode or in island mode.
(11) Office means the Colorado resiliency office created in section 24-32-121.
(12) Renewable energy has the meaning set forth in section 40-1-102 (11).
(13) Renewable energy storage means an energy storage system, as
defined in section 40-2-130 (2)(a).
(14) Severe weather or natural disaster events includes, but is not limited
to, snowstorms, freezes, wildfires, tornadoes, high winds, and floods.
Source: L. 2022: Entire article added, (HB 22-1013), ch. 304, p. 2199, � 1,
effective August 10.
40-9.8-104. Microgrids for community resilience grant program - creation -
grant application process - report - repeal. (1) (a) (I) The microgrids for community
resilience grant program is hereby created in the division to provide grants for
cooperative electric associations and municipally owned utilities to purchase
microgrid resources for eligible rural communities located within their service
territories. The division, in collaboration with the office and energy office, shall
award grants from the money that the general assembly appropriates to the
department for use by the division for the grant program, as well as any money
received from federal sources that may be used for the grant program. The
department may apply for, receive, and distribute federal money for the grant
program, and may seek, accept, and expend gifts, grants, and donations from
private and public resources.
(II) In addition to collaborating with the division regarding the awarding of
grants pursuant to subsection (1)(a)(I) of this section, the energy office shall advise
the division on criteria to consider in awarding grants, review copies of grant
applications, and advise the division based on the energy office's review of the
grant applications.
(III) The division, office, energy office, and department may use a portion of
the grant program money for administrative purposes in an amount not to exceed
the amount of money required to cover their direct and indirect costs in
administering the grant program.
(b) To administer the grant program, the division, in collaboration with the
office and the energy office, shall develop a grant application process and, on or
before January 1, 2023, post information about the process, including any
application form developed and deadlines set, on the department's website. The
division shall begin accepting applications after it posts the information about the
application process on the department's website. The division shall continue to
accept applications until all of the grant money is awarded.
(c) Only cooperative electric associations and municipally owned utilities
that serve eligible rural communities are eligible to apply for a grant under the
grant program.
(2) As part of its grant application, an applicant must:
(a) Identify one or more eligible rural communities within the applicant's
service territory for which the applicant plans to utilize microgrid resources to
increase the community's resilience regarding interruptions to the electric grid that
can be caused by severe weather or natural disaster events; and
(b) Submit with the application a plan detailing how the applicant will utilize
microgrid resources in one or more eligible rural communities identified in the
application pursuant to subsection (2)(a) of this section.
(3) In awarding grants, the division, in collaboration with the office and
energy office, shall consider the following with regard to one or more eligible rural
communities that an applicant identifies in its grant program application:
(a) Each eligible rural community's degree of exposure to severe weather or
natural disaster events;
(b) The nature of each eligible rural community's interests that are at risk
from severe weather or natural disaster events;
(c) The availability of alternative resources to meet the needs of each
eligible rural community if faced with a severe weather or natural disaster event;
(d) The opportunity for the utility to promote energy efficiency and demand-side management programs; and
(e) The financial resources of each eligible rural community to mitigate the
risks.
(4) In awarding grants, the division, in collaboration with the office and
energy office, shall prioritize microgrids with a higher reliance on nonfossil-fuel-based generation.
(5) On or before December 1, 2023, and on or before December 1 of each year
thereafter, the division shall submit a report summarizing the grants awarded in the
previous twelve months through the grant program, including:
(a) The number of grants awarded; and
(b) For each grant awarded:
(I) The amount awarded;
(II) The location of the eligible rural community or communities for which the
grant will be used; and
(III) Information concerning the grantee's progress in developing microgrid
resources, including a description of the microgrid resources being developed and
the kilowatt-hours that the microgrid resources are or will be capable of
generating.
(6) The division shall publish the annual report on the department's website
and furnish copies of the report to the house of representatives energy and
environment committee and the senate transportation and energy committee, or
their successor committees.
(7) This section is repealed, effective September 1, 2026.
Source: L. 2022: Entire article added, (HB 22-1013), ch. 304, p. 2200, � 1,
effective August 10.
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