The act requires the division of administration in the department of public health and environment (division), no later than July 2029, to propose a final rule (rule) establishing certain limits on the emission of nitrogen oxides and sulfur dioxide (emission limits) from an electric generating unit (unit) that is owned or operated by an electric utility; is located in the state; and emitted 200 tons or more of nitrogen oxides, or sulfur dioxide, or both in calendar year 2024 (covered unit). The rule must require compliance with the emission limits as soon as practicable after December 31, 2034, and must not cover units that, before December 31, 2029, have ceased operations; burn natural gas, fuel oil, or both only; or have certain systems installed. A unit that operates after December 31, 2034, must install certain pollution controls and comply with the emission limits on or before December 31, 2034. An owner or operator of a unit is required to provide quarterly emission reports showing compliance with the rule to the division. On August 1, 2029, the air quality control commission in the department of public health and environment (AQCC) must submit to the general assembly a list of any units that are subject to a federal order. If there are any units subject to a federal order, the AQCC must also submit to the general assembly recommendations on whether to amend the requirements for units subject to federal order. An investor-owned utility or wholesale electric cooperative that is the owner or operator of a unit is required, beginning 150 days after the issuance of a federal order requiring the unit to remain operating after the unit was scheduled to retire (order) and continuing every 90 days until the order is no longer in effect, to file a report with the public utilities commission (commission) that contains certain information about the costs to operate the unit and the amount of electricity generated by the unit. The commission must make these reports publicly available. An investor-owned utility is also permitted to submit an application for a financing order to recover the costs of complying with an order. Any decision by the commission approving or modifying a portfolio in an electric resource plan of an investor-owned utility serving more than 500,000 customers must approve an amount of accredited capacity that allows the investor-owned utility to reliably achieve certain retirement and carbon dioxide emission reduction requirements. This requirement applies to an investor-owned utility serving more than 500,000 customers until the division determines that the investor-owned utility has achieved certain carbon dioxide emission reductions or until the investor-owned utility has retired all covered units, whichever is later.(Note: This summary applies to this bill as enacted.)
The act requires an investor-owned utility (utility) to establish a percentage-of-income payment plan program (PIPP program) to assist income-qualified residential utility customers with utility costs. An income-qualified utility customer is eligible for the PIPP program if the customer meets the income eligibility criteria, lives in the service area of the utility, and either submits an application to the utility or is referred by another income-eligible assistance program offered by the department of human services, the Colorado energy office, or another energy assistance program approved by the public utilities commission (commission). A utility must approve or deny a customer's application for participation in the PIPP program within 30 days. The utility bill for a customer enrolled in a utility's PIPP program is capped at a specific percentage of the customer's household income, typically ranging from 2% to 6% of the customer's household income depending on the heating source provided and the size of the utility. The difference between a customer's actual utility bill and their PIPP program bill is covered by a fixed credit, which can be an up-front annual credit or an equal monthly credit to the customer's utility bill. The act also establishes arrearage credits for customers in the PIPP program, which are applied to eliminate a customer's preexisting debt prior to the customer's enrollment in the PIPP program. A utility's PIPP program is funded through a 'PIPP charge' itemized on all customer bills. The amount of the PIPP charge is established by the commission by rule for the utility. A utility must submit an annual report related to the utility's PIPP program to the commission. The report must include the following information:The PIPP charge revenue collected by the utility;Any amount contributed to the PIPP program by the utility from shareholder profits;A calculation of administrative costs associated with implementing and administering the PIPP program;The amount of fixed monthly or annual credits provided to customers in the utility's PIPP program; andThe amount of arrearage credits provided to customers in the PIPP program. The act exempts products fueled by propane and products used exclusively for installation in manufactured homes from emissions standards adopted by the Colorado department of public health and environment related to heating and water heating appliances until January 1, 2031. The act extends the deadline by which money in the 'Infrastructure Investment and Jobs Act' cash fund may be appropriated from July 1, 2028, until July 1, 2031.(Note: This summary applies to this bill as enacted.)
The act authorizes a local government or a special district (local government) to enter into an agreement with one or more entities for the purpose of providing the local government with service from a thermal energy network. A local government that is authorized by law to issue bonds may issue bonds for the purpose of financing thermal energy infrastructure, interconnections, or customer connections within the jurisdiction of the local government. The act increases the net electric generating capacity of a community geothermal garden from 5 megawatts to 25 megawatts. The act requires the Colorado energy and carbon management commission (commission) and the Colorado geological survey to collect data and information related to geological resources in the state. The commission shall make recommendations to encourage safe and effective development of geothermal resources and report those recommendations to the general assembly on or before November 15, 2026. The act requires investor-owned electric utilities (utilities) to identify small-scale geothermal projects and large-scale geothermal projects (geothermal projects). The utility must solicit proposals for the development of small-scale geothermal projects of up to 25 megawatts of net electric generating capacity and large-scale geothermal projects that are greater than 25 megawatts of net electric generating capacity. The utility shall submit applications for the development of the geothermal projects to the public utilities commission if the utility receives a bid in response to the request for proposals. The public utilities commission must review the application and approve, conditionally approve, deny, or modify the application within 120 days after receiving the application.(Note: This summary applies to this bill as enacted.)
Under current law, each subscriber to a community solar garden receives a net metering credit to their electric bill. The community solar subscriber organization can choose between a fixed bill credit or a bill credit that is adjusted annually. The act states that, on and after October 1, 2026, a subscriber organization may choose a fixed bill credit for the subscriber organization's income-qualified subscribers and a bill credit that changes annually for the subscriber organization's other customers. The public utility providing the bill credit must adjust the fixed bill credit annually to ensure that the credit remains aligned with changes in electricity rates over time. A public utility is permitted under current law to recover its prudently incurred costs to facilitate a timely interconnection of a distributed energy resource. The act prohibits a public utility from requiring an interconnection customer to pay the costs associated with interconnection facilities and upgrades until 30 days before the public utility incurs the costs. The act allows a public utility to require an interconnection customer to provide security for the estimated full costs of interconnection at the time of mutual execution of an interconnection agreement. The act requires a public utility with more than 500,000 customers in the state to, on or before August 15, 2026, convene a working group to accelerate distributed generation interconnection. The working group is tasked with discussing, if applicable, a cluster and batch study process for interconnection studies and a process for the public utility to accept a surety bond for interconnection upgrade work. The working group is also directed to discuss, and the public utility is required to implement, a process for third-party interconnection studies and upgrades. On or before December 15, 2026, the public utility is required to file a notice with the public utilities commission (commission) that includes a report on any recommendations of the working group. The public utility is directed to make appropriate filings to implement any recommendations of the working group that require commission approval on or before January 1, 2027. The act specifies that any interconnection upgrades and related utility construction work performed by a contracted third party must meet applicable safety, reliability, labor, and technical standards. The act amends the definition of 'dispatchable distributed generation' and requires the commission to evaluate the size of off-site renewable distributed generation or storage facility and installation limitations as part of a future renewable energy standard compliance plan.(Note: This summary applies to this bill as enacted.)
Section 3 of the act defines 'advanced transmission technologies' as hardware or software technologies that increase the capacity, efficiency, reliability, or resiliency of an existing or new transmission facility. Section 4 requires the Colorado public utilities commission (commission) to adopt rules requiring a regulated electric utility to consider advanced transmission technologies in the electric utility's 10-year transmission plan and to identify strategies to reduce the costs of, and obtain financing for, new transmission. The commission is directed to minimize duplication of transmission planning processes, technical studies, or analyses conducted through an applicable regional transmission organization or independent system operator. Section 5 requires the Colorado electric transmission authority (authority) to, as much as practicable, engage and coordinate with formal subregional transmission planning organizations. Under current law, the authority is required to annually submit a report of its activities, including a complete operating and financial statement covering the operations of the authority for the previous state fiscal year, to certain committees of reference of the general assembly. Section 6 requires that the annual report also include a description of the activities and accomplishments of the authority during the previous calendar year. Section 7 adds a nonvoting seat to the authority's board of directors for the director of the commission or the director's designee. Section 8 clarifies that a project that includes advanced transmission technologies and meets certain criteria is an energy sector public works project. Section 9 states that an energy sector public works project that includes advanced transmission technologies must meet applicable prevailing wage requirements and apprenticeship utilization requirements.(Note: This summary applies to this bill as enacted.)
The microgrids for community resilience grant program (grant program) in the division of local government in the department of local affairs provides grants for cooperative electric associations and municipally owned utilities to purchase microgrid resources for eligible rural communities located within their service territories. Under current law, the grant program is set to repeal on September 1, 2026. The act continues the grant program indefinitely by removing the repeal date.(Note: This summary applies to this bill as enacted.)
The act authorizes a local government with permitting authority over land uses (local government) to designate one or more areas within the jurisdiction of the local government as renewable energy reinvestment areas for the siting of renewable energy and energy storage system projects (eligible projects). In designating an area as a renewable energy reinvestment area, the local government must hold at least one public hearing and hold at least one public hearing for any construction permit applications required for a proposed eligible project in the renewable energy reinvestment area or must designate the area as part of an urban renewal plan or county revitalization plan and ensure that any outreach to and engagement of disproportionately impacted communities is consistent with statutory requirements. A local government cannot designate an eligible site within tribal lands without first consulting with the tribe with jurisdiction over the lands. If an eligible project is sited in a renewable energy reinvestment area, an urban renewal authority or county revitalization authority (authority) may distribute tax increment revenue to finance or reimburse costs associated with the eligible project if the renewable energy reinvestment area is included in the authority's urban renewal plan or county revitalization plan. In response to a request made by a local government or an eligible project developer for information regarding a designated renewable energy reinvestment area, a utility is required to acknowledge the request and provide the requestor readily available information within 30 days after the request is made. The Colorado energy office is required to consolidate, publish on its website, and periodically update technical and informational resources concerning the process for siting, permitting, and developing eligible projects in renewable energy reinvestment areas.(Note: This summary applies to this bill as enacted.)
Current law requires certain entities to file, or allows certain entities to voluntarily file, a clean energy plan to achieve an 80% reduction in greenhouse gas emissions caused by the entity's electricity sales in Colorado by 2030, relative to 2005 levels (2030 emission reductions). The act repeals current law stating that clean energy plans submitted by a cooperative electric association or a municipally owned utility under certain circumstances are deemed approved by the public utilities commission (commission) and requiring the division of administration in the department of public health and environment (division) to consult with the commission in verifying a clean energy plan submitted by a cooperative electric association or a municipally owned utility. The act also repeals current law stating that voluntary submission of a clean energy plan by a cooperative electric association or a municipally owned utility does not alter the entity's regulatory status with respect to the commission. A municipally owned utility that has encountered challenges in achieving the 2030 emission reductions may submit to the division, no later than December 31, 2026, an updated clean energy plan that demonstrates achievement of the 2030 emission reductions by the earliest date possible on or after December 31, 2029, but no later than December 31, 2032. A municipally owned utility that submits an updated clean energy plan to the division must:Provide a detailed generation and transmission plan to the division with the updated clean energy plan;Provide an annual report to the division beginning January 1, 2028, and continuing each year until December 31, 2033, that contains certain information related to the updated clean energy plan;Cease burning coal by December 31, 2032; andSeek to achieve certain additional reductions in greenhouse gas emissions without impairing the municipally owned utility's ability to maintain certain electric reliability standards. The updated clean energy plan must be verified by the division.(Note: This summary applies to this bill as enacted.)
The bill requires the Colorado energy office (office) to serve as the state's permitting coordinator for nuclear energy projects. The office is required to:Coordinate with developers of nuclear energy projects (developers), stakeholders, and state and local permitting agencies throughout the permitting process and assist developers in navigating local, state, and federal regulations;Build administrative and coordination capacity to prepare for federal funding opportunities; andOn or before December 1, 2027, recommend to the public utilities commission (commission) factors for the commission to consider when approving the acquisition of a nuclear energy project or other clean firm resources and cost-recovery mechanisms for the development of nuclear energy projects. The bill requires an investor-owned electric utility with more than 500,000 customers to:On or before August 1, 2027, solicit requests for information from communities and local governments interested in hosting a nuclear energy project and from potential development partners; andIdentify, in collaboration with other public utilities, local governments, and developers, potential sites for a nuclear energy project. The bill states that an investor-owned electric utility may submit to the commission, and the commission is required to approve, an application to expend and recover up to $20 million to finance studies regarding potential sites, facility designs, and other activities related to the development of nuclear energy projects in the state. The bill requires the commission to issue an approval or denial of a petition from an investor-owned electric utility regarding a cost-recovery mechanism for a nuclear energy project no later than 6 months after receiving the petition. The bill establishes a statewide goal of identifying at least one nuclear energy project site by 2035 and beginning construction of at least one nuclear energy project by 2040.(Note: This summary applies to this bill as introduced.)
The act defines, and creates requirements for, portable-scale solar generation devices. In addition, the act prohibits a provider of retail electric service or wholesale energy from, among other things, requiring a customer to obtain the provider's approval before installing or using a portable-scale solar generation device. The act also prohibits a person from directly or indirectly unreasonably prohibiting the installation, use, or operation of a portable-scale solar generation device. A covenant or restriction that explicitly or indirectly unreasonably prohibits or restricts the installation, use, or operation of a portable-scale solar generation device is unenforceable and void as a matter of public policy, though a real property owner may require reasonable restrictions. The act clarifies that a portable-scale solar generation device is considered an energy efficiency measure on and after January 1, 2027, and a unit owners' association of a common interest community is therefore not permitted to prohibit the installation or use of a portable-scale solar generation device. However, a real property owner that resides in a common interest community and installs a portable-scale solar generation device may be required to reasonably secure the device to their unit and may be responsible for all liability and costs associated with the device's installation, maintenance, or removal. The act specifies that a provider of retail electric service or wholesale energy is not liable for any damage caused by a portable-scale solar generation device and requires that the installation of a portable-scale solar generation device be in accordance with fire code requirements and applicable building codes that pertain to health and safety. Under current law, a utility that is subject to regulation by the public utilities commission (commission) must allow for customer ownership and use of a meter collar adapter through the utility's interconnection standards. The act requires the commission, on or before December 31, 2026, to revise existing commission interconnection rules to explicitly require commission-regulated utilities to:Maintain a public list of at least one approved meter collar adapter;Have a process for approving a meter collar adapter that is not included in the public list;Approve proposed meter collar adapters that meet certain technical requirements;If the installation of an approved meter collar adapter requires relocation of the meter enclosure or replacement of the meter housing, provide an estimate of costs associated with this work upon request of the customer;Establish and publish a process for a customer to request and install a meter collar adapter; andFacilitate the installation of a meter collar adapter by a registered electrical contractor and require that all electrical work be performed by a qualified party such as a master electrician. In addition, the act states that the revised commission interconnection rules must allow commission-regulated utilities to require that installation work for a meter collar adapter be performed by the commission-regulated utility, a licensed electrical contractor, or a party approved by the commission-regulated utility if the installation of an approved meter collar adapter requires removal of the meter. The act requires cooperative electric associations and customer-generators to comply with the rules adopted by the commission regarding meter collar adapters and with other commission rules regarding production meters. Similarly, the act requires municipally owned utilities to:Maintain a public list of at least one approved meter collar adapter;Have a process for approving a meter collar adapter that is not included in the public list;Approve proposed meter collar adapters that meet certain technical requirements;If the installation of an approved meter collar adapter requires relocation of the meter enclosure or replacement of the meter housing, provide an estimate of costs associated with this work upon request of the customer; andInclude a process for a customer to request and install a meter collar adapter. (Note: This summary applies to this bill as enacted.)
