A Colorado Supreme Court decision has resulted in the suspension of energy-impact assistance grants – funds that are relied on by communities large and small throughout the state.
In April, the court ruled in favor of the energy company BP America in its lawsuit against the state Department of Revenue. Overturning the appeals court’s decision, the supreme court said BP could deduct from its revenues the “cost of capital”, meaning money it could have earned on funds it spent on infrastructure. The result was a tax refund to BP of more than $600,000 a year for two years, but the case could apply to other energy companies. Severance taxes paid by those companies fund the energy-impact grants, which are administered by the Department of Local Affairs, or DOLA. DOLA’s communications director, Denise Stepto, tells KSJD as much as $125 million may have to be refunded. She says grants awarded before May 4th, such as recent grants to Cortez, Mancos, and Dolores County, are not affected, but applications that would normally be due August 1st for the next cycle are in limbo. Stepto says the decision “took us all by surprise. There was no indication this was going to be ruled this way.” Now, she says, the Department of Revenue, governor’s office, and Department of Natural Resources are “trying to figure out the best and smartest answer in how to move forward”.
