House panel indefinitely postpones HB1030 after debate over data‑center incentives and local impacts

The House Energy and Environment Committee voted 11–2 to postpone House Bill 1030 indefinitely after extended debate over tax incentives, grid and water impacts, and long‑term community benefits of data‑center development.

The vice chair opened consideration of HB1030 and the committee heard a lengthy statement from the sponsor and chair about the bill’s negotiated ‘‘strike‑below’’ draft, described in the room as a 58‑page package of negotiated provisions. The speaker framed the proposal as offering only a sales‑tax abatement to attract large data‑center investment and linked the measure to broader state needs for transmission, generation and economic development. He said the draft included protections such as a closed‑loop water mandate and a 10‑year sunset on some elements and then moved to postpone the measure indefinitely, calling for more work.

Representative Sloane thanked the chair for the effort and urged continued conversations, saying data centers ‘‘aren’t a topic that’s probably going anywhere’’ and stakeholders and constituents need more education and engagement. Representative Joseph urged stronger safeguards and called for a moratorium until Colorado can ensure enforceable labor standards, community‑benefit agreements, transparency around incentives, water protections and energy accountability: "Before Colorado expanding this industry further, we need strong guardrails," Joseph said, adding that data centers consume "extraordinary amounts of electricity and water." Other members echoed concerns about misinformation among constituents and the need for additional work on grid resiliency and environmental safeguards.

After debate, the clerk polled members by name; the motion to postpone HB1030 passed 11 to 2, with Representatives Kraft and Boot recorded as the two no votes. The committee adjourned following the vote.

The action leaves HB1030 without committee advancement and signals that members want further work on technical details, community protections and fiscal and resource impacts before taking a final vote.