Energy

In 2022, the general assembly enacted Senate Bill 22-110, concerning a requirement that a wind-powered energy generation facility be equipped with light mitigating technology (technology), to require an owner or operator of a new wind-powered energy generation facility (facility) to install technology at the facility and to obtain federal aviation administration (FAA) approval before installing the technology. An owner or operator of a facility can request from the governing body of the local government in which the facility is located an extension of up to 24 months to install the technology.     The act requires the owner or operator of a facility to also obtain federal communications commission (FCC) approval for installation of the technology and requires that a governing body of a local government grant an owner or operator of a facility an extension of time to install the technology if FAA, FCC, or other federal agency approval is delayed. The act also requires that an extension of time granted by the governing body of a local government is at least 24 months in duration.(Note: This summary applies to this bill as enacted.)

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.)

Senate Bill 25-163, concerning the establishment of battery stewardship programs for the disposal of certain batteries, created the 'Battery Stewardship Act', which requires the establishment of battery stewardship organizations and the submittal of battery stewardship plans to the executive director of the department of public health and environment (executive director) for the collection, transportation, processing, and recycling of certain batteries.     The act expands the scope of the 'Battery Stewardship Act' to cover the end-of-life management of propulsion batteries, which are batteries that are primarily used to supply power to an electric or hybrid vehicle, and establishes requirements concerning propulsion batteries that differ from the requirements for the batteries currently contemplated by the 'Battery Stewardship Act'.     On or before July 1, 2027, a person selling, offering for sale, or distributing propulsion batteries or vehicles containing a propulsion battery in or into the state (propulsion battery provider) is required to register with the department of public health and environment (department).     On or before January 2, 2029, a propulsion battery provider or group of propulsion battery providers must submit to the executive director an education and outreach plan that contains certain information about the management of propulsion batteries. On and after July 1, 2029, the act prohibits a propulsion battery provider from selling, making available for sale, or distributing a propulsion battery in or into the state unless the propulsion battery provider has submitted an education and outreach plan that meets the requirements of the act. The act also requires a propulsion battery provider to develop and maintain at least one website that, among other things, includes the information in the propulsion battery provider's education and outreach plan.     The act requires propulsion battery providers to collect certain unwanted propulsion batteries and ensure the responsible management of the unwanted propulsion batteries collected. In addition, the act requires a propulsion battery provider to, on and after July 1, 2029, label a propulsion battery and specifies the information that must be included on the label. On or before June 1, 2030, and on or before each June 1 thereafter, a propulsion battery provider is directed to submit an annual report to the executive director covering the preceding calendar year of the responsible management of the propulsion batteries collected by the propulsion battery provider.     A propulsion battery provider is required to pay a program initiation fee to the department. The amount of the program initiation fee for each propulsion battery provider is based on each propulsion battery provider's percentage of all propulsion battery vehicles registered in the state. On or before July 1, 2030, and on or before each July 1 thereafter, a propulsion battery provider is also required to pay an annual fee to cover the department's cost of implementing, administering, and enforcing the act. The solid and hazardous waste commission is directed to establish the annual fee amount by rule on or before July 1, 2029.     The act specifies how the department is required to implement, administer, and enforce the act. For example, the department is required to assess annual reports submitted by propulsion battery providers, compile a list of entities registered with the department, provide a digital registration form that an entity can use to register, and conduct an email survey with registered entities to request feedback on the functioning of the propulsion battery management program.     The act also sets forth requirements for persons that remanufacture a propulsion battery; persons that use a propulsion battery for a different use than the use for which the propulsion battery was originally designed; commercial entities that take possession of a propulsion battery for the purpose of selling, dispositioning, repairing, reusing, or recycling the propulsion battery; and entities that conduct propulsion battery recycling.     On and after July 1, 2029, the disposal of propulsion batteries at a solid waste disposal site and facility is prohibited.(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.)