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 Taxes

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 official metadata indicates a conflict: the 'Official status explanation' states the bill passed both chambers and reached final enrollment, but the 'Last action' shows it was postponed indefinitely by the House Committee in February 2026. This suggests uncertainty about whether the text provided reflects an earlier version or if there is conflicting data regarding its legislative journey.

Gas Utility Service and Clean Heat Plan Changes

This bill requires gas companies to leave out home heating emissions from their climate plans, allows them to recover costs for safety upgrades through annual rates, and removes the rule stopping them from giving money incentives to new customers connecting to natural gas.

What This Bill Does

Requires gas utilities to exclude carbon dioxide from residential gas burning when calculating clean heat plan targets.
Allows utilities with existing plans to submit a revised version by December 31, 2027, or two years after their original submission, whichever is later.
Permits the Public Utilities Commission to create rules that let utilities recover costs for system safety and integrity projects through annual rate adjustments.
Removes the rule that stopped gas companies from giving financial incentives to customers who establish new gas service at a property.

Who It Names or Affects

Gas distribution utilities in Colorado
The Public Utilities Commission
Residential customers using natural gas for heating

Terms To Know

Clean heat plan: A document filed by a utility that shows how it plans to reduce greenhouse gas emissions from its operations.
System safety and integrity project: Work done to improve the safety of gas pipes, including inspections, repairs, upgrades, or meeting federal safety rules.

Limits and Unknowns

The bill text does not state a specific effective date for when these changes begin.
The final status shows the House Committee postponed the bill indefinitely in February 2026, which may prevent it from becoming law despite passing other steps.

Amendments

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

L.001

HOU Energy & Environment

Passed [*]

Plain English: This amendment expands the bill's rules to include municipal gas distribution utilities alongside other types of gas companies.

The text now includes 'municipal gas distribution utility' in addition to existing references to a standard utility.
Specific words are added before terms like 'clean heat plan' and after the word 'utility's' on multiple pages.
These changes ensure that city-owned or municipal gas companies must follow the same requirements as other gas utilities.

The amendment text only shows where words are added but does not explain what a clean heat plan is in detail.
It is unclear if this change affects how much money these utilities pay or exactly which emissions they must report without reading the full bill.

L.002

HOU Energy & Environment

Passed [*]

Plain English: This amendment adds rules to protect gas utilities from being forced to switch customers to electricity, limits how much small utilities must spend on emission cuts in 2025, and stops regulators from punishing utilities that miss their clean heat goals.

The Public Utilities Commission is banned from making any rules that force a gas utility to use electrification (switching customers to electric power) as the only way to meet its emission reduction targets.
Gas utilities with fewer than 250,000 customer meters are limited to spending no more than 2% of their annual revenue on meeting 2025 emission requirements, though they can choose to spend more if approved by regulators.
The Public Utilities Commission is prohibited from imposing any penalties against a gas utility for failing to achieve the specific emission reduction targets listed in its clean heat plan.

The amendment text does not explain what happens if a utility spends less than the required amount or how 'reasonable cost' and 'public interest' are defined.
Some technical references to other sections of the bill (like subsection numbers) were updated in this amendment, but their full meaning depends on parts of the original law not included here.

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-