(1) Except as otherwise limited by this article 42, the authority, acting through the board, has the power to: (a) Hold and exercise all rights, duties, privileges, immunities, liabilities, and disabilities of a body corporate and a political subdivision of the state; (b) Have an official seal and alter the seal at the board's pleasure; (c) Establish reasonable administrative and procedural bylaws for its organization and internal management and for the conduct of its affairs and business; (d) Maintain an office at any place in Colorado that it may determine; (e) Acquire, hold, use, own in whole or in part, lease, rent, and dispose of real and personal property and its income, revenue, funds, and money; (f) Solicit and receive and expend gifts, grants, and donations; (g) Make and enter into all contracts, leases, and agreements, including intergovernmental agreements and assignments of payments to host landowners, that are necessary or incidental to the performance of its duties and the exercise of its powers under this article 42, including: (I) Contracts to purchase and dispose of eligible facilities; (II) Contracts for the lease and operation by the authority of eligible facilities owned by an electric utility or other private person; (III) Contracts for leasing eligible facilities owned by the authority, subject to the requirement that the authority deposit any revenue derived pursuant to the lease into the electric transmission bonding fund; and (IV) Contracts for powerline trails pursuant to section 33-45-103; (h) Unless otherwise specifically prohibited by this article 42, deposit money of the authority in any banking institution within or outside the state; (i) Fix the time and place or places at which its regular and special meetings are to be held; (j) Hire a chief executive officer of the authority and authorize the chief executive officer to hire other staff as necessary for the operation of the authority; (k) Use the services of executive departments of the state upon mutually agreeable terms and conditions; (l) Enter into partnerships with public or private entities; (m) Identify and establish corridors for the transmission of electricity within the state, subject to siting and land use approval by the local government with siting and land use authority pursuant to article 65.1 of title 24; (n) Through participation in appropriate regional transmission forums and other organizations, including organized wholesale markets, as defined in section 40-5-108 (1)(a), coordinate, investigate, plan, prioritize, and negotiate with entities within and outside Colorado for the establishment of interstate transmission corridors and engage in other transmission planning activities that would increase grid reliability, help Colorado meet its clean energy goals, promote the construction and maintenance of powerline trails throughout the state, and aid in economic and community development; (o) Subject to the requirements of subsection (2) of this section, conduct a transparent and competitive process to select a qualified transmission operator, as defined by the commission, to assume the responsibility to carry out all required financing, planning, acquisition, maintenance, and operation of eligible facilities necessary or useful for the accomplishment of the purposes of this article 42; (p) Subject to the requirements of articles 1 to 7 of title 38, have and exercise the power of eminent domain for acquiring any property or rights-of-way, except property of an electric utility or property or rights-of-way owned by a local government, necessary for projects; except that, if land to be acquired through eminent domain is subject to a perpetual conservation easement, the authority shall pay compensation to the owner as though the land were not subject to a perpetual conservation easement; (q) For any project, provide information and training to employees of the project regarding: (I) Any unique hazards that may be posed by the project; (II) Safe work practices; and (III) Emergency procedures; (r) Issue bonds as necessary to undertake a project; (s) Collect payments of reasonable rates, fees, interest, or other charges from persons using eligible facilities to finance eligible facilities and for other services rendered by the authority, subject to the requirement that any revenue derived from payments made to the authority shall be deposited in the electric transmission bonding fund; (t) Make determinations about the efficient use of existing rights-of-way on projects it proposes to develop as a precondition to pioneering new rights-of-way for such projects; (u) Consider options and alternatives, including through studies contracted with independent expert analysts, to increase the efficient use of the transmission system and relieve constraints on the transmission system, which options and alternatives may include storage and advanced transmission technologies; and (v) Do any and all things necessary or convenient to carry out its purposes and exercise the powers given and granted in this article 42. (2) Except as provided in this subsection (2), the authority shall not enter into a project if an electric utility or a nonincumbent transmission provider or other entity is constructing or has constructed the facilities or is providing the services contemplated by the authority. Before the authority enters into a project, the following procedural requirements must be met: (a) The authority shall provide to each electric utility and the commission and publish at least once in a newspaper of general circulation in Colorado, at least once in a newspaper of general circulation in the area where the eligible facilities will be located, and continuously on a publicly accessible web page maintained by the authority an initial notice describing the project that the authority is considering. (b) Any person with an interest that may be affected by the proposed project has thirty days after the date of the last printed publication of the initial notice to submit a written challenge concerning the proposed project to the authority. If the authority receives a challenge within the thirty days, the authority shall hold a public hearing no sooner than thirty days after receiving the challenge and at least two weeks after posting notice of the hearing in the same newspapers in which and web page on which the initial notice was given. Following the public hearing, the authority shall make a final determination on whether the authority will implement the proposed project and give notice of the determination in the same newspapers and on the same web page as the initial notice was given. Any person or governmental entity participating in the hearing may appeal the final determination by filing a notice of appeal with the district court for the city and county of Denver within thirty-five days after the date of the final determination. (c) The authority shall collect and consider relevant data from the division of parks and wildlife's state wildlife action plan and from the Colorado natural heritage program regarding ways in which the project could cause adverse environmental impacts to state and federally listed species, as well as species, habitats, and ecosystems of greatest conservation need. (d) Electric utilities and other persons willing and able to provide money for, acquire, maintain, and operate the eligible facilities described in the notice have the following period within which to notify the authority of intention and ability to provide money for, acquire, maintain, and operate the eligible facilities described in the notice: (I) Within ninety days after the date of the last printed publication of the initial notice if no challenge is received pursuant to subsection (2)(b) of this section; or (II) Within ninety days after the date of the notice of determination if a challenge is received pursuant to subsection (2)(b) of this section. (e) Absent notification by an electric utility or other person pursuant to subsection (2)(d) of this section, or if a person, having given notice of intention to provide money for, acquire, maintain, and operate the eligible facilities contemplated by the authority, fails to make a good- faith effort to begin to do so within six months after the date the person notified the authority of its intention, the authority may proceed to finance, plan, acquire, maintain, and operate the eligible facilities originally contemplated. However, a person that, within the time required, has made necessary applications to acquire federal, state, local, or private permits, certificates, or other approvals necessary to acquire the eligible facilities is deemed to have commenced the acquisition as long as the person diligently pursues the permits, certificates, or other approvals. (f) The authority must arrange for the continuation of any existing contracts for powerline trails entered into pursuant to section 33-45-103. (3) In soliciting and entering into contracts for the transmission or storage of electricity, the authority and any person leasing or operating eligible facilities financed or acquired by the authority shall, if practicable, give priority to: (a) Those contracts that will transmit or store electricity to be sold and consumed in Colorado; and (b) Electric utilities or other entities that demonstrate an interest in continuing an existing powerline trail established by the authority or constructing and maintaining a new powerline trail on the eligible facilities. (4) Neither the authority nor any eligible facilities acquired by the authority are subject to the supervision, regulation, control, or jurisdiction of the commission. (4.5) On and after July 1, 2024, the authority shall operate on a fiscal year that aligns with the state fiscal year. (5) (a) Ownership of eligible facilities by the authority may not exceed the extent and duration necessary or useful to promote the public interest. Before becoming an owner or partial owner of an eligible facility, the authority shall develop a plan identifying: (I) The public purposes of the authority's ownership; (II) The conditions that would make the authority's ownership no longer necessary for accomplishing those public purposes; and (III) A plan to divest the authority of ownership of the facility as soon as economically prudent once those conditions occur, which may include divestment before the line is energized. (b) For eligible facilities that are leased to another entity by the authority, at the end of the lease, absent default by the lessee, the authority shall convey its interest in the facilities to the lessee at a price that reflects the current fair market value. (c) Eligible facilities owned by the authority are subject to the requirements of valuation and taxation as set forth in articles 4 and 5 of title 39. (d) Neither the authority nor any energy assets owned or controlled by the authority or any electric utility, other than municipal utilities or power authorities, pursuant to this article 42 are exempt from property taxes. (e) The authority must arrange for the continuation of any existing contracts for powerline trails entered into pursuant to section 33-45-103 if it divests itself of an eligible facility. (6) (a) An electric utility that is subject to rate regulation by the commission may recover the capital cost of a project undertaken pursuant to this article 42 from its retail customers only if the project has received a certificate of public convenience and necessity from the commission. An electric utility that is a municipally owned utility exempt from regulation by the commission may recover such costs only if the project has been approved by the governing body of the municipality. A cooperative electric association exempt from regulation by the commission may recover such costs only if the project has been approved by the board of directors of the cooperative electric association. (b) Costs associated with a project undertaken pursuant to this article 42 are not recoverable from retail utility customers except to the extent the costs are prudently incurred and the project is used and useful in serving those customers. (7) The authority may sell any of its facilities to a Colorado electric utility. (8) The authority may petition the FERC for a clarification of the exclusive or concurrent jurisdiction of the FERC over any matter considered or action taken by the authority under this article 42. The general assembly declares its intent that the authority and the commission be able to carry out their powers and duties to the broadest extent possible, consistent with principles of federalism, to achieve the goals and effectuate the purposes of this article 42. (9) Nothing in this section waives or supersedes the application of section 29-20-108 or 40-5-101 (3) to a project proposed or developed by the authority.
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