City of Boulder 2A – New $6.5M Annual Climate Tax and Extend CAP Tax and UOT

The city currently collects two taxes on Xcel Energy bills: a Climate Action Plan (CAP) tax due to expire at the end of March 2023 and a Utility Occupation Tax (UOT) due to expire at the end of 2025. Issue 2A proposes a Climate Tax to expire at the end of 2040, also to be collected via Xcel Energy bills.

This Climate Tax would consist of a new annual $6.5M tax adjusted annually for inflation and an extension of the revenue from CAP and UOT. Both CAP and UOT have been extended before, most recently in 2015 CAP Issue 2P and in 2020 UOT Issue 2D.

This new $6.5M tax is a substantial increase over the $3.9M that the city currently collects from CAP and UOT.

Recommendation: TAX

City voters are also weighing in on whether or not to impose a property tax for a library district. If the Library District Issue 6C passes, then the city will have available funds that have been going to the library that could be redirected to respond to the climate crisis. You can see in the posting for Issue 6C some strategies to consider when voting on 2A and 6C.

Website for the Yes side
No known website – Info on a proponents’ website appreciated.
Boulder’s Funding City Climate Work webpage: https://bouldercolorado.gov/projects/funding-city-climate-work

Website for the No side
No known website – Info on an opponents’ website appreciated.


Approved Ballot Language
City of Boulder Ballot Issue 2A
Climate Tax (TABOR)

SHALL CITY OF BOULDER TAXES BE INCREASED $6.5 MILLION (FIRST, FULL FISCAL YEAR DOLLAR INCREASE) ANNUALLY AND INCREASING ANNUALLY BY THE CONSUMER PRICE INDEX BY IMPOSING A CLIMATE TAX ON THE DELIVERY OF ELECTRICITY AND NATURAL GAS AS PROVIDED IN ORDINANCE 8542;

AND SHALL THE EXISTING CLIMATE ACTION PLAN EXCISE TAX SET TO EXPIRE MARCH 31, 2023 AND THE UTILITY OCCUPATION TAX SET TO EXPIRE DECEMBER 31, 2025 BE REPEALED; AND SHALL THE CLIMATE TAX BEGIN JANUARY 1, 2023, AND EXPIRE DECEMBER 31, 2040; WITH THE REVENUE FROM THE CLIMATE TAX AND ALL EARNINGS THEREON TO BE USED TO MAINTAIN AND EXPAND CLIMATE FOCUSED PROGRAMS AND SERVICES, FINANCE CERTAIN CAPITAL PROJECTS AND STABILIZE FUNDING FOR INITIATIVES TO MEET THE CITY’S CLIMATE GOALS; INCLUDING WITHOUT LIMITATION ITEMS SUCH AS

RESIDENTIAL AND BUSINESS INCENTIVES TO REDUCE ENERGY USE; ACCELERATE BUILDING WEATHERIZATION AND ELECTRIFICATION; LOCAL RENEWABLE ENERGY GENERATION AND STORAGE; MICROGRIDS AND DISTRICT SYSTEMS THAT LEAD TO INCREASED SYSTEM RELIABILITY AND RESILIENCE; EQUITABLE INVESTMENTS IN HIGH PERFORMING, HEALTHY BUILDINGS; SERVICES TO SUPPORT ZERO EMISSIONS; MOBILITY OPTIONS WITH AN EMPHASIS ON SOLUTIONS FOR CURRENTLY UNDERSERVED SEGMENTS OF THE COMMUNITY;

ZERO-WASTE EFFORTS INCLUDING REUSE, REPAIR AND RECYCLING; NATURAL CLIMATE SOLUTIONS TO ENHANCE ECOSYSTEMS, IMPROVE AIR QUALITY AND BUFFER EXTREME HEAT EVENTS; INCENTIVES FOR COMMUNITY-BASED CLIMATE AND RESILIENCE ACTIONS; WILDFIRE RESILIENCE STRATEGIES SUCH AS WILDFIRE HOME RISK ASSESSMENTS, WILDFIRE MITIGATION PLANNING AND IMPLEMENTATION; OUTREACH AND EDUCATION; RESIDENTIAL AND BUSINESS INCENTIVES FOR THE ACCELERATION OF UNDERGROUNDING UTILITY LINES; FINANCIAL ASSISTANCE FOR LOW-INCOME UTILITY CUSTOMERS; MATCHING FUNDS OR OTHER LEVERAGE TO ACCESS PUBLIC OR PRIVATE FUNDING SOURCES AND COST-SHARING AGREEMENTS TO ACCELERATE MEETING THE CITY’S CLIMATE GOALS?

For the Measure ____
Against the Measure ____

Ordinance 8542 to refer Issues 2A and 2B to the voters
https://documents.bouldercolorado.gov/WebLink/DocView.aspx?id=179901&dbid=0&_ga=2.40372391.404892481.1665453032-181246305.1661276300