Environment

On July 1, 2027, the act repeals the decarbonization tax credits administration cash fund, which is subject to annual appropriation to the department of revenue and the Colorado energy office to pay for the direct and indirect costs associated with the implementation and administration of various decarbonization tax credits.(Note: This summary applies to this bill as enacted.)

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.)

The act implements the recommendation of the department of regulatory agencies' 2025 sunset review and report on the biomass utilization grant program by repealing the biomass utilization grant program.(Note: This summary applies to this bill as enacted.)

When a catalytic converter mechanically fails or is stolen from a motor vehicle, current rules of the air quality control commission require the replacement to comply with the rules of the California air resources board. The bill creates a temporary exception (exception) that allows an individual to use a replacement catalytic converter that complies with the standards established by rules of the United States environmental protection agency if:In the case of the theft of a catalytic converter, the theft has been reported to a law enforcement agency; andThe owner or operator of the motor vehicle has made a reasonable effort to obtain the required replacement catalytic converter and has been unable to obtain the replacement catalytic converter.The exception is repealed, effective July 1, 2028.The bill prohibits a motor vehicle repair facility or any employee or contract laborer of the facility from repairing or replacing a catalytic converter that has failed or been stolen without first informing the customer about available state programs to replace an internal combustion vehicle with a zero-emission alternative.(Note: This summary applies to this bill as introduced.)

In 2023, the general assembly established water and energy efficiency standards for irrigation controllers and spray sprinkler bodies that are sold or leased in the state on and after January 1, 2026. The act repeals these standards.(Note: This summary applies to this bill as enacted.)

The bill removes wind energy as an eligible renewable energy resource under Colorado's renewable energy standard and removes wind energy generation from consideration for the state's clean energy targets.(Note: This summary applies to this bill as introduced.)