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unit to remain operating after the unit was scheduled to retire (order) and continuing every 90 days until the order is no longer in effect, to file a report with the public utilities commission (commission) that contains certain information about the costs to operate the unit and the amount of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.)
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 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.)
The bill creates the data center development and incentive program (program) operated by the Colorado data center development authority (authority), which is newly created in the Colorado office of economic development (office) ( section 1 of the bill). The authority consists of 9 members, as follows:2 members appointed by the governor with the consent of the senate;The director of the Colorado energy office or the director's designee;One member who has experience in water projects or water resource management, appointed by the president of the senate;One member who has experience in clean and renewable energy, appointed by the speaker of the house of representatives;2 members who have experience in data center development, with one member appointed by the speaker of the house of representatives and one member appointed by the president of the senate;One member representing a statewide organization that represents workers in trade crafts who construct data centers, appointed by the speaker of the house of representatives; andOne member representing a statewide organization that represents contractors who construct data centers, appointed by the president of the senate.To incentivize efficient data center development, the program allows a 100% state sales and use tax exemption on qualified purchases to the operator of a certified data center. To be eligible for certification, the operator of the data center, or a data center operator collectively with participating data center tenants, must:Have initiated a preliminary consultation with the utility that will provide electricity for the data center project regarding interconnection feasibility, capacity, and infrastructure requirements;Commit to making a $250 million minimum investment in data center infrastructure within 5 years;Commit to creating new full-time jobs, including employees and long-term service and maintenance positions, that satisfy specified criteria and breaking ground on the data center project within 2 years of obtaining certification;Commit to complying, and ensure that the utility that provides electricity to the data center also complies, with craft labor requirements, apprenticeship utilization requirements, and prevailing wage requirements; andCommit to obtaining certification under one of several energy efficiency standards, implementing water stewardship strategies that optimize operational water management, ensuring that all backup power generation associated with the data center project meets specified requirements, and consulting with the department of natural resources.To obtain certification, a data center operator must apply to the authority in a form and manner to be determined by the authority. The authority is required to review a data center operator's application for certification and may award certification to a data center operator that has demonstrated that it will satisfy the certification criteria ( section 1 ).A data center operator that obtains certification for a data center project is eligible for a 100% state sales and use tax exemption on the purchase and use of qualified data center infrastructure and systems for 20 years from the date that the data center project was certified, so long as the data center satisfies ongoing post-certification requirements and submits annual compliance reports to the authority. As long as the data center meets post-certification requirements as demonstrated in the annual compliance reports, a data center operator of a certified data center may apply to the authority for an extension of the sales and use tax exemption for an additional 10 years. If the authority determines that a data center operator is not fulfilling its obligations and commitments to retain certification, the authority may revoke the certification and the data center operator is required to repay the state for the sales and use tax benefits that it received ( sections 1 and 5 ). The exemption for a certified data center does not apply to local sales and use taxes unless the exemption is expressly included at the time of adoption or amendment of the local sales tax ordinance or resolution ( section 4 ).The bill allows a utility regulated by the public utilities commission (commission) to submit a targeted resource acquisition application to the commission to propose methods of meeting emerging large-load customer needs. The bill also specifies how a utility may finance resource and infrastructure needs in connection with emerging large-load customers ( section 3 ).(Note: This summary applies to this bill as introduced.)
The bill requires a gas distribution utility (utility) to exempt carbon dioxide emissions resulting from the combustion of gas by residential customers from the utility's clean heat plan filed with the public utilities commission (commission). A utility must exclude residential carbon dioxide emissions from the baseline and projected emissions calculations used in the utility's clean heat plan. If a utility has already submitted a clean heat plan to the commission prior to the effective date of the bill, the utility may submit a revised clean heat plan to the commission that excludes residential carbon dioxide emissions from the utility's baseline and projected emissions calculations. The bill requires the commission to adopt rules that allow a utility to submit a revised clean heat plan. The bill permits a utility to recover costs related to a system safety and integrity project, which is defined as a certain type of project that improves the safety or integrity of the gas distribution system. The bill repeals a prohibition on a gas utility providing incentives to customers for establishing gas service to a property.(Note: This summary applies to this bill as introduced.)
