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Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
REREVISED
This Version Includes All Amendments
Adopted in the Second House
LLS NO. 26-0225.01 Clare Haffner x6137 HOUSE BILL 26-1081
House Committees Senate Committees
Energy & Environment Transportation & Energy
A BILL FOR AN ACT
CONCERNING MEASURES TO OPTIMIZE COLORADO'S ELECTRIC101
TRANSMISSION SYSTEM.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
Section 3 of the bill 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
SENATE
3rd Reading Unamended
April 8, 2026
SENATE
Amended 2nd Reading
April 7, 2026
HOUSE
3rd Reading Unamended
March 6, 2026
HOUSE
Amended 2nd Reading
March 5, 2026
HOUSE SPONSORSHIP
Camacho and Duran, Bacon, Boesenecker, Brown, Lindsay, McCormick, Nguyen,
Paschal, Smith
SENATE SPONSORSHIP
Roberts, Amabile, Bridges, Coleman, Cutter, Gonzales J., Jodeh, Kipp, Lindstedt, Mullica,
Simpson, Wallace, Weissman
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
consider advanced transmission technologies in the electric utility's
10-year transmission plan and to identify strategies to reduce the costs of
new transmission.
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.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Short title. The short title of this act is the2
"Colorado Grid Optimization Act".3
SECTION 2. Legislative declaration. (1) The general assembly4
finds and declares that:5
(a) Both in-state and regional electric transmission systems are6
essential to maintaining grid reliability and resilience amid unprecedented7
load growth. As new transmission projects undergo lengthy planning,8
permitting, and review processes, commercially available and proven9
advanced transmission technologies present near-term opportunities to10
accelerate the interconnection of new resources, maximize the11
performance of existing transmission assets, and deliver least-cost energy12
to consumers.13
(b) Advanced transmission technologies are technologies that14
increase the capacity, efficiency, reliability, or resiliency of a transmission15
facility and have the potential to optimize the transmission grid by16
lowering costs, reducing congestion, and expediting the interconnection17
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of new load;1
(c) Advanced transmission technologies have been shown to2
complement transmission expansion by optimizing the cost, utilization,3
and value of new transmission build-out. When planned in tandem with4
proposed new transmission facilities, these technologies can alleviate5
transmission constraints, improve system efficiency, inform more6
strategic siting and sequencing of infrastructure, and support broader7
benefits for customers, landowners, wildlife, and disproportionately8
impacted communities.9
(d) National analyses, the federal energy regulatory commission,10
and various state utility commissions have identified advanced11
transmission technologies as cost-effective tools that can be deployed on12
faster timelines than new transmission construction, thereby supporting13
near-term reliability and job creation while mitigating rate impacts for14
customers;15
(e) Strategic use of advanced transmission technologies also has16
the potential to reduce wildfire risk and prevent power outages during17
emergencies by improving real-time situational awareness and reducing18
stress on existing transmission lines under extreme conditions;19
(f) Integrating advanced transmission technologies into relevant20
transmission planning processes and decision-making can support21
Colorado's long-term energy affordability and grid modernization efforts22
by making sufficient information available to regulators and the public23
regarding where such technologies can deliver system-wide and customer24
benefits;25
(g) The Colorado electric transmission authority, referred to in this26
section as the "authority", was created by Senate Bill 21-072 to enable the27
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expansion and financing of electric transmission facilities and1
infrastructure and has since helped advance the state's clean energy goals2
and reliability with an interregional focus. Additionally, Senate Bill3
23-016 required the authority to conduct a transmission capacity4
expansion study to assess the need for expanded transmission capacity in5
the state.6
(h) It is in the state's best interest to have coordinated statewide7
transmission planning, and there is great potential value in the authority8
providing leadership in regional transmission coordination and9
interregional project development, including by supporting the10
advancement of priority projects through joint studies and the facilitation11
of multi-utility and grid operator collaboration where appropriate; and12
(i) Regional planning groups, along with the authority, can13
provide the state with a dedicated venue to coordinate interregional14
transmission needs and advocate for equitable cost allocation and public15
policy alignment in regional transmission organization governance16
structures.17
SECTION 3. In Colorado Revised Statutes, 40-42-102, add (1.3),18
(1.5), and (12.5) as follows:19
40-42-102. Definitions.20
As used in this article 42, unless the context otherwise requires:21
(1.3) "A DVANCED CONDUCTOR " MEANS A CONDUCTOR22
TECHNOLOGY USED IN AN ELECTRIC TRANSMISSION SYSTEM THAT, WHEN23
COMPARED TO AN ALUMINUM CONDUCTOR STEEL REINFORCED24
CONDUCTOR OF THE SAME DIAMETER, PLUS OR MINUS ONE PERCENT:25
(a) HAS A DIRECT CURRENT ELECTRICAL RESISTANCE, MEASURED26
AT A STANDARD REFERENCE TEMPERATURE OF TWENTY DEGREES CELSIUS27
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CONSISTENT WITH INDUSTRY PRACTICE , THAT IS AT LEAST FIFTEEN1
PERCENT LOWER OR MEETS HIGHER PERFORMANCE STANDARDS2
RECOGNIZED BY THE COMMISSION TO ACCOUNT FOR EVOLVING3
TECHNOLOGIES OR TRANSMISSION SYSTEM NEEDS; AND4
(b) INCREASES THE POTENTIAL ENERGY CARRYING CAPACITY BY5
AT LEAST SIXTY PERCENT OR MEETS HIGHER PERFORMANCE STANDARDS6
RECOGNIZED BY THE COMMISSION TO ACCOUNT FOR EVOLVING7
TECHNOLOGIES OR TRANSMISSION SYSTEM NEEDS.8
(1.5) "A DVANCED TRANSMISSION TECHNOLOGIES " MEANS9
HARDWARE OR SOFTWARE TECHNOLOGIES THAT INCREASE THE CAPACITY,10
EFFICIENCY, RELIABILITY , OR RESILIENCY OF AN EXISTING OR NEW11
TRANSMISSION FACILITY, INCLUDING:12
(a) ADVANCED CONDUCTORS; AND13
(b) GRID-ENHANCING TECHNOLOGIES.14
(12.5) "GRID-ENHANCING TECHNOLOGY" MEANS A HARDWARE OR15
SOFTWARE TECHNOLOGY THAT REDUCES CONGESTION OR ENHANCES THE16
FLEXIBILITY OF ELECTRIC TRANSMISSION AND DISTRIBUTION SYSTEMS BY17
INCREASING THE CAPACITY OF A TRANSMISSION OR DISTRIBUTION LINE, OR18
BY REROUTING ELECTRICITY FROM OVERLOADED LINES TO UNCONGESTED19
LINES , WHILE MAINTAINING INDUSTRY SAFETY ST ANDARDS .20
"GRID-ENHANCING TECHNOLOGY" INCLUDES:21
(a) DYNAMIC LINE RATINGS;22
(b) ADVANCED POWER FLOW CONTROLLERS;23
(c) TOPOLOGY OPTIMIZATION;24
(d) E NERGY STORAGE , INCLUDING ANY TYPE OF MOBILE OR25
RELOCATABLE ENERGY STORAGE SYSTEM, WHEN USED AS A TRANSMISSION26
OR DISTRIBUTION RESOURCE; AND27
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(e) O THER TECHNOLOGIES THAT INCREASE GRID RELIABILITY ,1
FLEXIBILITY, AND CAPACITY.2
SECTION 4. In Colorado Revised Statutes, 40-2-126, amend (6);3
and add (7), (8), and (9) as follows:4
40-2-126. Transmission facilities - bienni al review - energy5
resource zones - plans - approval - cost recovery - powerline trail6
consideration - rules - definitions.7
(6) The commission shall amend its rules requiring the filing of8
ten-year transmission plans by utilities to also require utilities to:9
(a) Consider and address plans for the construction of new10
powerline trails in coordination with applicable local governments in each11
two-year update to a ten-year transmission plan; and12
(b) Demonstrate compliance with section 33-45-103 (2);13
(c) F OR UTILITIES SUBJECT TO RATE REGULATION BY THE14
COMMISSION, IDENTIFY STRATEGIES TO REDUCE THE COSTS OF15
CONSTRUCTION AND OBTAINING ADEQUATE FINANCING FOR IDENTIFIED16
PROJECTS IN THE UTILITY'S TEN-YEAR TRANSMISSION PLAN, INCLUDING BY17
CONSIDERING, AFTER EVALUATING WHETHER APPLICABLE , THE USE OF18
BONDS ISSUED BY THE COLORADO ELECTRIC TRANSMISSION AUTHORITY19
PURSUANT TO SECTION 40-42-104 (1)(r). I F A UTILITY IDENTIFIES OR20
EVALUATES THE POTENTIAL USE OF BONDS ISSUED BY THE COLORADO21
ELECTRIC TRANSMISSION AUTHORITY AS A COST-REDUCTION STRATEGY IN22
THE UTILITY 'S TEN -YEAR TRANSMISSION PLAN , THE UTILITY SHALL23
CONSULT WITH THE COLORADO ELECTRIC TRANSMISSION AUTHORITY24
PRIOR TO FILING THE UTILITY'S TEN-YEAR TRANSMISSION PLAN.25
(d) I NCORPORATE, IN THE UTILITY 'S TEN -YEAR TRANSMISSION26
PLAN, AN EVALUATION OF ADVANCED TRANSMISSION TECHNOLOGIES,27
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AS DEFINED IN SECTION 40-42-102 (1.5), WHICH EVALUATION MUST1
INCLUDE:2
(I) A TECHNICAL FEASIBILITY ASSESSMENT;3
(II) IF TECHNICALLY FEASIBLE, A COST-EFFECTIVENESS ANALYSIS4
AND TIMETABLE FOR POTENTIAL DEPLOYMENT;5
(III) A N ASSESSMENT OF ADVANCED TRANSMISSION6
TECHNOLOGIES ABLE TO REDUCE OR MITIGATE TRANSMISSION SYSTEM7
NEEDS WITH THE POTENTIAL TO ACHIEVE THE FOLLOWING, AS APPLICABLE:8
(A) A N INCREASE IN TRANSMISSION SYSTEM CAPACITY ,9
COST-EFFECTIVENESS, RELIABILITY, OR RESILIENCY;10
(B) A REDUCTION OF TRANSMISSION SYSTEM CONGESTION;11
(C) A REDUCTION IN THE TIMELINE TO CONNECT NEW GENERATION12
OR LOAD TO THE GRID;13
(D) A REDUCTION OF THE RISK OF IGNITING WILDFIRES;14
(E) A N INCREASE IN CAPACITY TO CONNECT NEW RENEWABLE15
ENERGY AND CLEAN ENERGY RESOURCES REFLECTING THE UTILITY'S16
GENERATION AND LOAD PLANNING FORECASTS FROM THE UTILITY'S MOST17
RECENT ELECTRIC RESOURCE PLAN; OR18
(F) AN INCREASE IN THE TRANSFER CAPABILITY OF ELECTRICITY19
BETWEEN COLORADO AND NEIGHBORING STATES;20
(IV) A DESCRIPTION OF ANY ADDITIONAL POTENTIAL BENEFITS OF21
DEPLOYING ADVANCED TRANSMISSION TECHNOLOGIES, WHICH BENEFITS22
MAY INCLUDE:23
(A) T HE ABILITY TO MEET SHORT -TERM TRANSMISSION NEEDS24
WHILE NEW TRANSMISSION IS BEING SITED, PERMITTED, OR CONSTRUCTED;25
AND26
(B) A REDUCTION IN IMPACTS TO HIGH -PRIORITY HABITATS ,27
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WILDLIFE MOVEMENT CORRIDORS AND CROSSINGS , AND SPECIES OF1
GREATEST CONSERVATION NEED, AS IDENTIFIED BY THE DIVISION OF PARKS2
AND WILDLIFE CREATED IN SECTION 33-9-104; AND3
(V) IF ADVANCED TRANSMISSION TECHNOLOGIES ARE FOUND TO4
OFFER A MORE COST-EFFECTIVE STRATEGY TO ACHIEVE THE GOALS LISTED5
IN SUBSECTION (6)(d)(III) OF THIS SECTION, WHETHER IN COMBINATION6
WITH OR INSTEAD OF OTHER CAPITAL INVESTMENTS , BUT ARE NOT7
INCORPORATED INTO THE UTILITY 'S TEN -YEAR TRANSMISSION PLAN , A8
DETAILED EXPLANATION, INCLUDING RELEVANT ANALYSES, SUBMITTED TO9
THE COMMISSION AS PART OF THE UTILITY'S TEN-YEAR TRANSMISSION10
PLAN AND ADVANCED TRANSMISSION TECHNOLOGIES EVALUATION ,11
EXPLAINING WHY ADVANCED TRANSMISSION TECHNOLOGIES SHOULD NOT12
BE DEPLOYED TO MEET A SPECIFIC NEED OR IN LIEU OF ANOTHER PROJECT.13
(7) A N IDENTIFICATION OF A WILDFIRE -RELATED BENEFIT AS14
DESCRIBED IN SUBSECTION (6)(d)(III)(D) OF THIS SECTION IN AN15
ASSESSMENT OF ADVANCED TRANSMISSION TECHNOLOGIES CONDUCTED16
BY A UTILITY PURSUANT TO SUBSECTION (6)(d)(III) OF THIS SECTION DOES17
NOT TRIGGER A SEPARATE COMMISSION APPROVAL PROCESS . THE18
COMMISSION MAY CONSIDER THE IDENTIFIED WILDFIRE-RELATED BENEFIT19
DURING THE COMMISSION'S REVIEW OF THE UTILITY 'S NEXT WILDFIRE20
MITIGATION PLAN FILING OR A FUTURE CERTIFICATE OF PUBLIC21
CONVENIENCE AND NECESSITY FILED BY THE UTILITY.22
(8) NOTHING IN SUBSECTION (6) OF THIS SECTION PRECLUDES THE23
EVALUATION OF OTHER TECHNOLOGIES OR DEVICES THAT ENHANCE THE24
RELIABILITY, RESILIENCE, OR PROTECTION OF THE ELECTRIC TRANSMISSION25
SYSTEM, INCLUDING BY IMPROVING THE STABILITY OF EXISTING26
TRANSMISSION INFRASTRUCTURE.27
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(9) (a) IN AMENDING ITS RULES PURSUANT TO SUBSECTION (6) OF1
THIS SECTION, THE COMMISSION SHALL SEEK TO MINIMIZE DUPLICATION OF2
TRANSMISSION PLANNING PROCESSES, TECHNICAL STUDIES, OR ANALYSES3
CONDUCTED THROUGH AN APPLICABLE REGIONAL TRANSMISSION4
ORGANIZATION OR INDEPENDENT SYSTEM OPERATOR . IN DOING SO, THE5
COMMISSION MAY ALLOW A UTILITY TO REFERENCE AND INCORPORATE6
ANALYSES CONDUCTED THR OUGH AN APPLICABLE REGI ONAL7
TRANSMISSION ORGANIZATION OR INDEPENDENT SYSTEM OPERATOR , AS8
APPROPRIATE, AND TO RELY ON THESE ANALYSES TO SATISFY THE9
REQUIREMENTS OF THIS SECTION TO THE EXTENT THAT THE ANALYSES10
ADDRESS THE REQUIREMENTS OF THIS SECTION.11
(b) A UTILITY RELYING ON ANALYSES CONDUCTED THROUGH AN12
APPLICABLE REGIONAL TRANSMISSION ORGANIZATION OR INDEPENDENT13
SYSTEM OPERATOR SHALL IDENTIFY IN THE UTILITY'S FILING THE SECTION14
OF EACH ANALYSIS THAT ADDRESSES THE REQUIREMENTS OF THE15
ADVANCED TRANSMISSION TECHNOLOGIES EVALUATION SET FORTH IN16
SUBSECTION (6)(d) OF THIS SECTION AND THE RELEVANCE OF THE17
ANALYSIS TO THOSE REQUIREMENTS.18
(c) P ARTICIPATION IN A REGIONAL TRANSMISSION PLANNING19
PROCESS DOES NOT BY ITSELF SATISFY THE REQUIREMENTS OF COMMISSION20
RULES AMENDED PURSUANT TO SUBSECTION (6) OF THIS SECTION.21
SECTION 5. In Colorado Revised Statutes, 40-42-104, add (10)22
as follows:23
40-42-104. General and specific powers and duties of the24
authority.25
(10) I N CONDUCTING ITS DUTIES IN ACCORDANCE WITH THIS26
ARTICLE 42, THE AUTHORITY SHALL , TO THE EXTENT PRACTICABLE ,27
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ENGAGE AND COORDINATE WITH FORMAL SUBREGIONAL TRANSMISSION1
PLANNING ORGANIZATIONS.2
SECTION 6. In Colorado Revised Statutes, amend 40-42-108 as3
follows:4
40-42-108. Report to general assembly.5
Commencing in 2022, the authority shall submit a report of its6
activities to the energy and environment committee of the house of7
representatives and the transportation and energy committee of the senate,8
or any successor committees, not later than December 1 JANUARY 31 of9
each year. The report shall set forth a complete operating and financial10
statement covering the operations of the authority for the previous state11
fiscal year AND A DESCRIPTION OF THE ACTIVITIES AND ACCOMPLISHMENTS12
OF THE AUTHORITY DURING THE PREVIOUS CALENDAR YEAR .13
Notwithstanding section 24-1-136 (11)(a)(I), the requirement to submit14
the report continues indefinitely.15
SECTION 7. In Colorado Revised Statutes, 40-42-103, amend16
(2)(a) as follows:17
40-42-103. Authority - creation - board - open meetings and18
open records.19
(2) (a) The powers of the authority are vested in a board of20
directors, which consists of the following nine TEN members:21
(I) Two members appointed by the governor with the consent of22
the senate;23
(II) The director of the Colorado energy office created in section24
24-38.5-101 or the director's designee;25
(III) Three members appointed by the speaker of the house of26
representatives; and27
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(IV) Three members appointed by the president of the senate; AND1
(V) T HE DIRECTOR OF THE COMMISSION OR THE DIRECTOR 'S2
DESIGNEE, WHO IS A NONVOTING EX OFFICIO MEMBER.3
SECTION 8. In Colorado Revised Statutes, 24-92-303, amend4
(1) and (5)(b)(II)(C); and add (1.5) as follows:5
24-92-303. Definitions.6
As used in this part 3, unless the context otherwise requires:7
(1) "Construction" means the construction, alteration, or repair of8
an energy sector public works project, consistent with and including the9
same limitations as the definition of construction as established in section10
45 (b)(7)(a) of the federal "Internal Revenue Code of 1986", as amended,11
and as described in all related official guidance from the federal internal12
revenue service and the United States department of labor implementing13
the applicable sections of the federal "Inflation Reduction Act".14
"ADVANCED TRANSMISSION TECHNOLOGIES" HAS THE MEANING SET FORTH15
IN SECTION 40-42-102 (1.5).16
(1.5) "CONSTRUCTION" MEANS THE CONSTRUCTION, ALTERATION,17
OR REPAIR OF AN ENERGY SECTOR PUBLIC WORKS PROJECT, CONSISTENT18
WITH AND INCLUDING THE SAME LIMITATIONS AS THE DEFINITION OF19
CONSTRUCTION AS ESTABLISHED IN SECTION 45 (b)(7)(a) OF THE FEDERAL20
"INTERNAL REVENUE CODE OF 1986", AS AMENDED, AND AS DESCRIBED21
IN ALL RELATED OFFICIAL GUIDANCE FROM THE FEDERAL INTERNAL22
REVENUE SERVICE AND THE UNITED STATES DEPARTMENT OF LABOR23
IMPLEMENTING THE APPLICABLE SECTIONS OF THE FEDERAL "INFLATION24
REDUCTION ACT".25
(5) (b) "Energy sector public works project" includes the26
following project types, so long as they satisfy the criteria in subsection27
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(5)(a)(I) or (5)(a)(II) of this section:1
(II) Other projects with a total project cost of one million dollars2
or more that include:3
(C) Electric transmission projects, INCLUDING PROJECTS THAT4
INCLUDE ADVANCED TRANSMISSION TECHNOLOGIES;5
SECTION 9. In Colorado Revised Statutes, 24-92-304, add (6)6
as follows:7
24-92-304. Energy sector public works projects - craft labor8
employment - training - wage requirements.9
(6) (a) A N ENERGY SECTOR PUBLIC WORKS PROJECT THAT10
INCLUDES ADVANCED TRANSMISSION TECHNOLOGIES MUST MEET THE11
PREVAILING WAGE REQUIREMENTS SET FORTH IN THIS PART 3 AND THE12
APPRENTICESHIP UTILIZATION REQUIREMENTS SET FORTH IN SECTION13
24-92-115.14
(b) N OTHING IN THIS ARTICLE 92 APPLIES TO A PROJECT THAT15
INCLUDES ADVANCED TRANSMISSION TECHNOLOGIES , WHICH PROJECT16
DOES NOT REQUIRE UTILITY LINE CONSTRUCTION WORK PERFORMED BY A17
JOURNEYMAN LINEWORKER OR PROPERLY SUPERVISED APPRENTICE, SUCH18
AS A SOFTWARE UPGRADE OR SMALL INSTALLATION THAT DOES NOT MEET19
THE REQUIREMENTS FOR AN ENERGY SECTOR PUBLIC WORKS PROJECT.20
SECTION 10. Act subject to petition - effective date. This act21
takes effect at 12:01 a.m. on the day following the expiration of the22
ninety-day period after final adjournment of the general assembly (August23
12, 2026, if adjournment sine die is on May 13, 2026); except that, if a24
referendum petition is filed pursuant to section 1 (3) of article V of the25
state constitution against this act or an item, section, or part of this act26
within such period, then the act, item, section, or part will not take effect27
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unless approved by the people at the general election to be held in1
November 2026 and, in such case, will take effect on the date of the2
official declaration of the vote thereon by the governor.3
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