HB26-1129 • 2026

Gas Utility Service

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 th

Energy

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Rep. C. Barron, Rep. A. Flanell, Sen. B. Kirkmeyer, Sen. B. Pelton
Last action: 2026-02-19
Official status: House Committee on Energy & Environment Postpone Indefinitely
Effective date: Not listed

Plain English Breakdown

The bill summary and text do not provide specific details on the timing of when utilities must submit revised clean heat plans or how excluding residential emissions might impact overall emission reduction goals.

Gas Utility Service

This bill requires gas distribution utilities in Colorado to exclude carbon dioxide emissions from residential customers' use of natural gas in their clean heat plans and allows them to recover costs for safety projects.

What This Bill Does

Requires gas companies to not include the carbon dioxide that comes from burning natural gas by homes in their clean heat plan.
Allows gas companies to fix or improve parts of their system to make it safer, and they can get money back for these improvements.

Who It Names or Affects

Gas distribution utilities in Colorado
Residential customers of gas distribution utilities

Terms To Know

Clean heat plan: A plan made by a gas company to reduce greenhouse gas emissions.
System safety and integrity project: Work done by a gas company to improve the safety or quality of their system, like fixing pipes or upgrading equipment.

Limits and Unknowns

The bill does not specify when it will take effect.
It is unclear how excluding residential emissions from clean heat plans might affect overall emission reduction goals.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

L.001

HOU Energy & Environment

Passed [*]

Plain English: The amendment changes the bill to include municipal gas distribution utilities in certain provisions related to clean heat plans.

Adds 'OR THE MUNICIPAL GAS DISTRIBUTION UTILITY'S' before 'CLEAN' on page 3, line 12 of the printed bill.
Inserts 'OR THE MUNICIPAL GAS DISTRIBUTION UTILITY'S' after 'UTILITY'S' on page 6, line 4.
Adds 'OR A MUNICIPAL GAS DISTRIBUTION UTILITY' after 'UTILITY' in several places throughout pages 2 to 5.

The amendment text does not provide details about the specific impacts or requirements for municipal gas distribution utilities beyond mentioning their inclusion.

L.002

HOU Energy & Environment

Passed [*]

Plain English: The amendment adds new rules that prevent the commission from requiring gas utilities to use electrification as a way to meet emission reduction targets and limits spending requirements for smaller utilities.

Adds a rule stating that the commission cannot require gas distribution utilities or municipal gas distribution utilities to use electrification to meet their emission reduction goals in their clean heat plans.
Limits the amount of money small utilities (those with fewer than 250,000 meters) can be required to spend on meeting emission reduction targets to no more than two percent of their total annual revenues from full-service customers.
Exempts gas distribution utilities and municipal gas distribution utilities from penalties if they do not achieve the emission reduction targets in their clean heat plans.

The amendment text does not provide specific details on how the commission will determine 'reasonable cost and rate impact' for voluntary spending requests by smaller utilities.

Bill History

2026-02-19 House
House Committee on Energy & Environment Postpone Indefinitely
2026-02-04 House
Introduced In House - Assigned to Energy & Environment

Official Summary Text

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.)

Current Bill Text

Read the full stored bill text

Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED

LLS NO. 26-0537.01 Christopher McMichael x4775 HOUSE BILL 26-1129
House Committees Senate Committees
Energy & Environment
A BILL FOR AN ACT
CONCERNING GAS UTILITY SERVICE.101
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.)
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
HOUSE SPONSORSHIP
Barron and Flanell,
SENATE SPONSORSHIP
Kirkmeyer and Pelton B.,
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.
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.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 40-3.2-108, amend2
(3)(c)(I)(B), (10)(a), and (11); and add (2)(q.5), (3)(g), (4)(i), (5)(c),3
(5)(d), (5)(e), and (12) as follows:4
40-3.2-108. Clean heat targets - legislative declaration -5
exclusion of residential sector - revised clean heat plans - system6
safety and integrity projects - definitions - plans - rules - reports.7
(2) Definitions. As used in this section, unless the context8
otherwise requires:9
(q.5) "S YSTEM SAFETY AND INTEGRITY PROJECT " MEANS A10
PROJECT CONDUCTED BY A GAS DISTRIBUTION UTILITY THAT IMPROVES OR11
UPGRADES THE SAFETY OR INTEGRITY OF THE GAS DISTRIBUTION SYSTEM,12
INCLUDING:13
(I) PIPELINE AND STORAGE INTEGRITY MANAGEMENT PROGRAMS;14
(II) EXPOSED PIPE INSPECTION AND REMEDIATION;15
(III) PIPE OR COMPRESSOR STATION UPGRADES;16
(IV) P ROJECTS UNDERTAKEN TO MEET THE UNITED STATES17
DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS18
SAFETY ADMINISTRATION REQUIREMENTS; AND19
(V) SUPERVISORY CONTROL AND DATA ACQUISITION UPGRADES.20
HB26-1129-2-
(3) Clean heat targets.1
(c) (I) In calculating the baseline and projected emissions covered2
under a clean heat plan, a gas distribution utility must include the3
following:4
(B) Carbon dioxide emissions resulting from the combustion of5
gas by residential, commercial and industrial customers not otherwise6
subject to federal greenhouse gas emission reporting and excluding all7
transport customers; and8
(g) (I) A GAS DISTRIBUTION UTILITY SHALL NOT INCLUDE CARBON9
DIOXIDE EMISSIONS RESULTING FROM THE COMBUSTION OF GAS BY10
RESIDENTIAL CUSTOMERS AS PART OF THE GAS DISTRIBUTION UTILITY 'S11
CLEAN HEAT PLAN.12
(II) A GAS DISTRIBUTION UTILITY SHALL EXCLUDE CARBON13
DIOXIDE EMISSIONS RESULTING FROM THE COMBUSTION OF GAS BY14
RESIDENTIAL CUSTOMERS IN CALCULATING THE UTILITY'S BASELINE AND15
PROJECTED EMISSIONS COVERED UNDER A CLEAN HEAT PLAN.16
(4) Submission of clean heat plans - revised clean heat plans.17
(i) (I) A GAS DISTRIBUTION UTILITY THAT HAS SUBMITTED A CLEAN18
HEAT PLAN PURSUANT TO THIS SECTION PRIOR TO THE EFFECTIVE DATE OF19
THIS SUBSECTION (4)(i) THAT RELIES ON A CALCULATION OF BASELINE AND20
PROJECTED EMISSIONS THAT INCLUDES CARBON DIOXIDE EMISSIONS21
RESULTING FROM THE COMBUSTION OF GAS BY RESIDENTIAL CUSTOMERS22
MAY REVISE ITS CLEAN HEAT PLAN WITH CALCULATIONS THAT EXCLUDE23
CARBON DIOXIDE EMISSIONS RESULTING FROM THE COMBUSTION OF GAS24
BY RESIDENTIAL CUSTOMERS.25
(II) A GAS DISTRIBUTION UTILITY THAT SUBMITS A REVISED CLEAN26
HEAT PLAN IN ACCORDANCE WITH THIS SUBSECTION (4)(i) MUST SUBMIT27
HB26-1129-3-
ITS REVISED PLAN ON OR BEFORE DECEMBER 31, 2027, OR WITHIN TWO1
YEARS AFTER THE UTILITY SUBMITS ITS ORIGINAL CLEAN HEAT PLAN ,2
WHICHEVER DATE IS LATER.3
(III) IF A GAS DISTRIBUTION UTILITY HAS NOT SUBMITTED A CLEAN4
HEAT PLAN ON OR BEFORE DECEMBER 31, 2027, THE GAS DISTRIBUTION5
UTILITY SHALL SUBMIT ITS INITIAL CLEAN HEAT PLAN AND EXCLUDE6
CARBON DIOXIDE EMISSIONS RESULTING FROM THE COMBUSTION OF GAS7
BY RESIDENTIAL CUSTOMERS IN ITS CALCULATION OF BASELINE AND8
PROJECTED EMISSIONS.9
(IV) A GAS DISTRIBUTION UTILITY SHALL EXCLUDE CARBON10
DIOXIDE EMISSIONS RESULTING FROM THE COMBUSTION OF GAS BY11
RESIDENTIAL CUSTOMERS IN ITS CALCULATION OF BASELINE AND12
PROJECTED EMISSIONS FOR ANY SUBSEQUENT CLEAN HEAT PLANS OR13
UPDATES TO CLEAN HEAT PLANS THAT MAY BE REQUIRED PURSUANT TO14
THIS SECTION.15
(5) Commission rules.16
(c) ON OR BEFORE DECEMBER 31, 2026, THE COMMISSION SHALL17
ADOPT RULES THAT ALLOW A GAS DISTRIBUTION UTILITY TO SUBMIT A18
REVISED CLEAN HEAT PLAN THAT EXCLUDES CARBON DIOXIDE EMISSIONS19
RESULTING FROM THE COMBUSTION OF GAS BY RESIDENTIAL CUSTOMERS20
IN THE UTILITY'S CALCULATION OF BASELINE AND PROJECTED EMISSIONS21
IN ACCORDANCE WITH THIS SECTION.22
(d) T HE COMMISSION SHALL NOT ADOPT ANY RULE THAT23
PROHIBITS, OR EFFECTIVELY PROHIBITS , A GAS DISTRIBUTION UTILITY24
FROM INSTALLING , MAINTAINING , OR UPGRADING GAS UTILITY25
INFRASTRUCTURE SERVICE TO A RESIDENTIAL PROPERTY.26
(e) THE COMMISSION SHALL ADOPT ANY RULES NECESSARY FOR A27
HB26-1129-4-
GAS DISTRIBUTION UTILITY TO RECOVER SYSTEM SAFETY AND INTEGRITY1
PROJECT COSTS IN ACCORDANCE WITH SUBSECTION (12) OF THIS SECTION.2
(10) No later than December 1, 2025, the commission, in3
consultation with the division, shall determine mass-based greenhouse4
gas emission reduction targets for clean heat plans for 2035. In5
establishing these targets, the commission shall:6
(a) Ensure that gas distribution utilities' greenhouse gas emissions7
will be in line with the residential, commercial and industrial sectors'8
contribution to statewide greenhouse gas pollution; and9
(11) No later than December 1, 2032, the commission, in10
consultation with the division, shall determine the mass-based greenhouse11
gas emission reduction goals for cl ean heat plans for 2040, 2 045, and12
2050 using a 2015 baseline that, at minimum, ensure that gas distribution13
utilities' greenhouse gas emission reductions will be proportionate to the14
residential, commercial and industrial sectors' contribution to the15
greenhouse gas emission reduction goals, excluding transportation gas16
service customers or customers that report their own greenhouse gas17
emissions to the federal environmental protection agency under18
applicable federal law, including 40 CFR 98, subpart NN. In determining19
these goals, the commission shall consider savings achieved or projected20
to be achieved in other sectors of the state's economy, as well as the21
commercial availability of technologies to achieve emission reductions22
in this sector.23
(12) System safety and integrity projects - cost recovery.24
(a) A GAS DISTRIBUTION UTILITY THAT IS REGULATED BY THE25
COMMISSION SHALL BE PERMITTED TO RECOVER ALL PROJECTED SYSTEM26
SAFETY AND INTEGRITY PROJECT COSTS ANNUALLY.27
HB26-1129-5-
(b) T HE COMMISSION SHALL APPROVE THE RECOVERY OF1
PROJECTED SYSTEM SAFETY AND INTEGRITY PROJECT COSTS THROUGH AN2
ANNUAL RATE ADJUSTMENT CLAUSE OR A SEPARATE RATE ADJUSTMENT3
CLAUSE, INCLUDING A RETURN BASED ON THE GAS DISTRIBUTION UTILITY'S4
MOST RECENTLY APPROVED WEIGHTED AVERAGE COST OF CAPITAL THAT5
IS EFFECTIVE JANUARY 1 OF EACH YEAR.6
SECTION 2. In Colorado Revised Statutes, 40-3.2-104.3, repeal7
(1)(d) and (2)(a) as follows:8
40-3.2-104.3. Options for high-efficiency electric heating -9
exemptions - definitions.10
(1) As used in this section, unless the context otherwise requires:11
(d) "Line extension allowance" means a bundle of costs that12
includes construction allowances for new service lines, meters, and other13
infrastructure associated with the addition of a new customer to a gas14
utility's distribution system.15
(2) (a) A gas utility shall not provide an applicant an incentive,16
including a line extension allowance, to establish gas service to a17
property.18
SECTION 3. Act subject to petition - effective date. This act19
takes effect at 12:01 a.m. on the day following the expiration of the20
ninety-day period after final adjournment of the general assembly (August21
12, 2026, if adjournment sine die is on May 13, 2026); except that, if a22
referendum petition is filed pursuant to section 1 (3) of article V of the23
state constitution against this act or an item, section, or part of this act24
within such period, then the act, item, section, or part will not take effect25
unless approved by the people at the general election to be held in26
HB26-1129-6-
November 2026 and, in such case, will take effect on the date of the1
official declaration of the vote thereon by the governor.2
HB26-1129-7-