In celebration of Hispanic Heritage Month, and in collaboration with our Coalition partners, we invite you to an inspiring fireside conversation between Court of Appeals Judge Terry Fox and Colorado Supreme Court Chief Justice Monica Márquez, the first Latina to lead Colorado’s Judicial Department and one who embodies this year’s theme.

You will hear about the chief justice’s trailblazing path to the bench, leading the Judicial Branch — where she leads 4,200 employees (400+ of whom are judicial officers) — and lawyers promoting diversity and wellness. The session will end with your questions to the chief justice. Take advantage of this opportunity to gain insights from a pioneer of change, a breaker of barriers, and a person who has helped shape a more inclusive judiciary. 

• Judge Terry Fox, Moderator, Colorado Court of Appeals
• Chief Justice Monica Márquez, Colorado Supreme Court

Event Information:
Tuesday, October 8
4:00-4:30 PM | Check In
4:30-5:45 PM | Program and Q&A
5:45-6:30 PM | Reception

Sherman & Howard Offices Denver
675 15th Street, Suite 2300
Denver, Colorado 80202

Parking Information: There are two open entrances to the parking garage on Welton and 15th streets. As you approach the rolling service door, it will open. Follow the signage to guest parking. Take the elevators down to the lobby and check in at the table in the lobby.  Parking validation will be available at check-in. 

Thank you to the event sponsor Denver Law Firm Coalition for Equity & Inclusion.

Biden administration issues new policy on voluntary carbon markets

On May 28, 2024, the Biden administration introduced new guidelines on voluntary carbon markets (“VCMs”) intended to strengthen the integrity of the markets and make them a reliable, effective tool to reduce carbon emissions.[1] While some nonprofit organizations, such as The Integrity Council for the Voluntary Carbon Market and the Voluntary Carbon Markets Integrity Initiative, have already developed guidance and standards to improve the quality and reliability of VCMs, this new policy is the first guidance on VCMs issued by the federal government.

Identified concerns regarding VCMs

Widespread concerns over the reliability of carbon credits and the accuracy of credit users’ claims currently hinder the growth of VCMs. These concerns generally revolve around the lack of oversight and transparency of the nature of the credits issued through VCMs. Concerns about VCMs expressed in the new policy document, and by the greater public, include:

• the inability of credit users to examine or control the emission reduction of the carbon credits they buy,
• the lack of a guarantee that one credit actually represents the amount of emission reduction it is sold for,
• the difficulty to fact-check companies’ broad claims about the impact of their carbon credits, and
• the negative environmental and social impacts that credit generating activities can have.

Companies invested in VCMs have faced legal trouble over these concerns. In 2023, Delta Air Lines had a class-action lawsuit filed against them for publicly claiming to be the world’s first carbon-neutral airline and relying on allegedly invalid and ineffective carbon credits. This legal risk deters companies from investing in VCMs and highlights the need to improve the integrity of the markets so credit users can rely on their investments.

Overview of the policy and principles

The guidance document, titled “Voluntary Carbon Markets Joint Policy Statement and Principles,” outlines the following seven principles to guide responsible participation in VCMs.[2]

1. Carbon credits and the activities that generate them should meet credible atmospheric integrity standards and represent real decarbonization.
   • This principle addresses a few of the previously identified concerns. It requires carbon credits to correspond to a unique emission reduction to avoid double counting, for the impact of each credit to be real and quantifiable, and for implementation of a validation and verification process for credit generating activities. This principle emphasizes the importance of third-party credit certification to apply approved methodologies to ensure transparency and accountability within VCMs.
2. Credit-generating activities should avoid environmental and social harm and should, where applicable, support co-benefits and transparent and inclusive benefits-sharing.
   • As noted above, credited activities can negatively impact the communities in which the activities take place. The guidance urges organizations that develop credit generating activities to create safeguards and be proactive by mitigating potential impacts.
3. Corporate buyers that use credits (“credit users”) should prioritize measurable emissions reductions within their own value chains.
   • Under this principle, companies making public claims about using carbon credits to achieve decarbonization goals should also work to reduce carbon emissions within their supply chains. This requires companies to collaborate with their suppliers and distributors to alter their processes to promote decarbonization.
4. Credit users should publicly disclose the nature of purchased and retired credits.
   • Transparency of the status and integrity of carbon credits must improve for VCMs to grow. This principle recognizes this need and encourages credit users to make regular disclosures to allow outsiders to assess credit integrity.
5. Public claims by credit users should accurately reflect the climate impact of retired credits and should only rely on credits that meet high integrity standards.
   • As discussed above, companies may face legal action by making public claims about carbon credits that are difficult to verify. To reduce this risk, this principle recommends credit users rely only on credits that meet high integrity standards.
6. Market participants should contribute to efforts that improve market integrity.
   • VCM integrity will not improve if all stakeholders do not contribute to the efforts to do so. Therefore, all stakeholders should adhere to policies that improve the integrity of VCMs.
7. Policymakers and market participants should facilitate efficient market participation and seek to lower transaction costs.
   • For VCMs to play a significant role in decarbonization efforts, credible credit providers must have access to the market. This principle identifies policymakers and market participants as two key groups that can help those providers gain access to the market.

Key takeaways

These principles, and the policy in general, are significant for two primary reasons. First, the issuance of the policy indicates that the federal government views high-integrity VCMs as an important tool for future decarbonization efforts and will continue to  dedicate resources to improve the market.[3] While the federal government has started to regulate carbon credits, primarily through securities regulations [4], this guidance constitutes the first comprehensive codification of the administration’s approach to improving VCMs.[5]

Second, the principles this guidance endorses generally align with those set forward by other entities in the VCM ecosystem, including the Integrity Council for Voluntary Carbon Markets. The policy itself acknowledges that both the public and private sector have important roles to play in the development of VCMs. While the principles articulated in this guidance are only instructive and not binding on VCMs or market participants, they indicate the administration’s commitment to encourage the future growth of high-integrity VCMs. 

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Citations

[1] Statements and Releases, The White House, FACT SHEET: Biden-⁠Harris Administration Announces New Principles for High-Integrity Voluntary Carbon Markets (May 28, 2024), https://www.whitehouse.gov/briefing-room/statements-releases/2024/05/28/fact-sheet-biden-harris-administration-announces-new-principles-for-high-integrity-voluntary-carbon-markets/.

[2] The White House, Voluntary Carbon Markets Joint Policy Statement and Principles (May 2024), https://www.whitehouse.gov/wp-content/uploads/2024/05/VCM-Joint-Policy-Statement-and-Principles.pdf.

[3] See supra note 1.

[4] See The Enhancement and Standardization of Climate-Related Disclosures for Investors, 89 Fed. Reg. 21668 (Mar. 28, 2024) (to be codified at 17 C.F.R parts 210, 229, 230, 232, 239, and 249).

[5] See supra note 2

SB 24-218: Colorado’s Electric Grid Receives Major Upgrade.

This summer, Governor Polis signed into law the Modernize Energy Distribution Systems Act (“SB 218”) to optimize the electric grid, support the electrification of Colorado’s transportation and infrastructure, and facilitate renewable energy development. The comprehensive legislation aims to improve the state’s energy distribution system and ensure Colorado’s utilities are prepared for the clean energy transition.  Below is an outline of SB 218’s main goals and requirements:

Distribution System Upgrades.

A Qualifying Retail Utility, which includes any investor-owned electric utility that services 500,000 customers or more in Colorado (such as Xcel Energy), must upgrade its distribution systems to affordably and reliably meet both the state’s and the federal government’s electrification and decarbonization goals. SB 218 requires Qualifying Retail Utilities to (1) commence a data collection process to inform future energization timelines, (2) adopt cost caps for customers, (3) propose alternatives to major infrastructure upgrades (if an upgrade is required to interconnect or energize a distributed energy resource), such as the use of a flexible interconnection, and (4) establish a streamlined procedure for customers with a hybrid facility to complete the interconnection.

Although Qualifying Retail Utilities were already required to file a distribution system plan with the Public Utilities Commission (the “Commission”), the plans must now incorporate sufficient hosting capacity for the implementation of the state and federal decarbonization targets. The plans must also include sufficient hosting capacity to effectively implement state, local, and government agency plans related to housing, economic development, transportation, and building electrification and the Qualifying Retail Utility’s approved renewable energy plan, clean heat plan, beneficial electrification plan, demand-side management plan, gas infrastructure, and transportation electrification plan.

Further, a Qualifying Retail Utility is required to consult with and prioritize investments in income-qualified or disproportionately impacted communities with residential capacity constraints. 

Renewable Energy Development.

SB 218 endeavors to benefit renewable energy development and provide for increased battery storage on the grid by tying a Qualifying Retail Utility’s distribution system plan to cost recovery, which encourages long-term infrastructure improvements. A Qualifying Retail Utility must propose distribution activities and budgets that will strategically benefit or advance Colorado’s energy policy goals. If the Commission finds that the projected costs advance decarbonization or similar policy goals, the Qualifying Retail Utility may recover the costs of development through its grid modernization adjustment clause. Distribution activities may include (a) capital investments in equipment upgrades, repair and replacement programs, conductor replacements and installations, pole repair and replacement, overhead rebuilds, (b) operation and maintenance of the same, and (c) investments in or operations with similar technology or actions that enhance the distribution system to meet federal, state, and regional air quality and decarbonization targets. 

Apprenticeship Program.

Additionally, SB 218 aims to create jobs by establishing a grant program for lineworker apprenticeships. This program will provide training for transmission or distribution lineworkers and provide funding for the required educational materials and program instructors. Qualifying Retail Utilities are required to ensure they are sufficiently staffed to complete the modernization efforts set forth in SB 218, creating immediate job opportunities for graduates of this apprenticeship program. 

Virtual Power Plant Program.

SB 218 also establishes the virtual power plant program, with the intent of enabling ratepayers (such as Xcel Energy customers) to save money by taking advantage of distributed energy resources, such as solar and battery storage systems, micro energy grids, smart thermostats, and electronic vehicles. By February 1, 2025, Qualifying Retail Utilities are required to file an application for a virtual power plant program with the Commission. The program must provide performance-based compensation for the use of the distributed energy resources, including peak demand reduction, voltage support services, and participation in non-wire alternatives (energy storage, conservation measures, and grid software controls).  Overall, SB 218 aligns the state’s infrastructure with Colorado’s clean energy goals. It aims to provide the necessary support and upgrades to Colorado’s electrical distribution system and significantly expand opportunities for renewable energy development.

Join us for a SABA APABA Colorado Picnic at the Rockies Game.

Event Information

Tuesday, July 23
Boston Red Sox vs Colorado Rockies

Platte River Picnic Area Opens | 5:40 PM
First Pitch | 6:40 PM

Platte River Picnic Area – Coors Field
2001 Blake Street
Denver, Colorado 80205

Davis Graham strives to host inclusive events. To ask questions about accessibility or request specific accommodations, please contact marketing@davisgraham.com. The firm will consider reasonable accommodations in an effective and timely manner. Advance notice is necessary to arrange for some accessibility needs.

HB24-1172

Summary

Bill 24-1172 creates a process for counties to establish a revitalization authority. A county revitalization authority is a corporate body that uses tax increment and private financing to create and implement a county revitalization project through a revitalization plan. Before commencing a revitalization project, the county must designate an area as a revitalization area at a public hearing. A revitalization area is a segment of a county that could improve the overall health, safety, wellness, and growth of the county as a whole upon implementation of a revitalization plan there. If this bill passes, county revitalization authorities would have numerous powers and abilities, including the power to rezone or replan property in a revitalization zone, the power of eminent domain, and the ability to issue bonds and make relocation payments to families displaced by a revitalization authority.

Legislative Update

• 2024-06-04 / Passed
  Governor Signed
• 2024-05-23
  Sent to the Governor
  Signed by the President of the Senate
  Signed by the Speaker of the House
• 2024-04-17
  Senate Third Reading Passed – No Amendments
• 2024-04-16
  Senate Second Reading Passed – No Amendments
• 2024-04-11
  Senate Committee on Local Government & Housing Refer Unamended – Consent Calendar to Senate Committee of the Whole
• 2024-03-18
  Introduced In Senate – Assigned to Local Government & Housing
• 2024-03-11
  House Third Reading Passed – No Amendments
• 2024-03-08
  House Second Reading Special Order – Passed with Amendments – Committee, Floor
• 2024-03-05
  House Committee on Transportation, Housing & Local Government Refer Amended to House Committee of the Whole
• 2024-01-31 / Introduced
  Introduced in House – Assigned to Transportation, Housing & Local Government

This content is updated every Thursday, but is not a comprehensive list of updates. If you have questions regarding a specific piece of legislation, please contact Davis Graham partner, Sarah Kellner.

SB24-106

Summary

The bill amends the Construction Defect Action Reform Act (CDARA). The bill provides restrictions on when claimants can bring construction defect claims, including barring claimants from seeking damages for failing to comply with building codes or industry standards unless the failure results in actual damage to real or personal property, verifiable danger to the occupants of a residential property, or actual failure of a building component to perform its intended purpose. The bill also clarifies the powers of unit owners’ associations to bring construction defect actions.

Legislative Updates

• 2024-05-03 / Failed
  House Committee on Transportation, Housing & Local Government Postpone Indefinitely
• 2024-05-01
  Introduced In House – Assigned to Transportation, Housing & Local Government
• 2024-04-11
  Senate Third Reading Passed with Amendments – Floor
• 2024-04-10
  Senate Second Reading Passed with Amendments – Floor
• 2024-04-09
  Senate Second Reading Laid Over Daily – No Amendments
• 2024-04-08
  Senate Second Reading Laid Over Daily – No Amendments
• 2024-04-02
  Senate Second Reading Laid Over to 04/08/2024 – No Amendments
• 2024-04-01
  Senate Second Reading Laid Over Daily – No Amendments
• 2024-03-25
  Senate Second Reading Laid Over to 04-01-24 – No Amendments
• 2024-03-21
  Senate Committee on Local Government & Housing Refer Amended to Senate Committee of the Whole
• 2024-02-05
  Assigned to Local Government & Housing
• Under Consideration

This content is updated every Thursday, but is not a comprehensive list of updates. If you have questions regarding a specific piece of legislation, please contact Davis Graham partner, Sarah Kellner.

All CLE credits are good for one year after the date of the live presentation. To request a copy of a program’s affidavit, please contact Makenna Kincaid.

• March 13, 2024: Spring 2024 Employment Law Update featuring Brett Painter, Peter Rose, Grace Diamond, and Cait Stover (1 Gen Credit, CO)
• January 30, 2024: State of the City Webinar featuring J. J. Ament (Denver Metro Chamber of Commerce) and Zach Detra (1 Gen Credit, CO)

Please join Davis Graham for a presentation on current ethical issues facing both in-house and outside counsel. The presentation will include information about ethical witness preparation, the use of generative artificial intelligence by lawyers, and choice-of-law rules as applied to the rules of professional conduct. Among the rules of professional conduct covered in the presentation will be Rules 1.1, 1.3, 1.4, 1.6, 2.1, and 8.5.

The confirmed speakers for this program, which is pending approval for one ethics Continuing Legal Education credit in the state of Colorado, include:

• Ben Strawn, Partner & Davis Graham Ethics Counsel
• Max Hamilton, Associate, Davis Graham

Event Details
Tuesday, November 7
Registration | 3:30-4:00 PM
Program | 4:00-5:00 PM
Reception | 5:00-6:00 PM

Registration for this event has closed. Please contact Makenna Kincaid with any questions.

Davis Graham strives to host inclusive events. To ask questions about accessibility or request specific accommodations, please contact marketing@davisgraham.com. The firm will consider reasonable accommodations in an effective and timely manner. Advance notice is necessary to arrange for some accessibility needs.

This CLE will provide an overview of how to conduct a successful internal investigation, including (i) what types of events and reports call for a formal internal investigation, (ii) whether an investigation can be conducted in-house, or outside counsel should be retained, (iii) best practices in conducting a defensible and hopefully privileged investigation, and (iv) how to (or not to) document the investigation.

The confirmed speakers for this event, which has been approved for one general Continuing Legal Education credit in the state of Colorado, include:

• Mark Champoux, Davis Graham, Partner
• Tess Hand-Bender, Davis Graham, Partner
• Jackie Roeder, Davis Graham, Partner
• Amy Bowles, Davis Graham, Associate

Event Details
Tuesday, November 14
Program | 8:00-9:00 AM

Registration for this event has closed. Please contact Makenna Kincaid with any questions.

Davis Graham strives to host inclusive events. To ask questions about accessibility or request specific accommodations, please contact marketing@davisgraham.com. The firm will consider reasonable accommodations in an effective and timely manner. Advance notice is necessary to arrange for some accessibility needs.