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Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 26-0699.02 Clare Haffner x6137 HOUSE BILL 26-1337
House Committees Senate Committees
Energy & Environment
A BILL FOR AN ACT
CONCERNING FACILITATING THE DEVELOPMENT OF NUCLEAR ENERGY101
PROJECTS IN THE STATE.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.)
The bill requires the Colorado energy office (office) to serve as the
state's permitting coordinator for nuclear energy projects. The office is
required to:
! Coordinate with developers of nuclear energy projects
(developers), stakeholders, and state and local permitting
agencies throughout the permitting process and assist
HOUSE SPONSORSHIP
Valdez and Winter T.,
SENATE SPONSORSHIP
(None),
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.
developers in navigating local, state, and federal
regulations;
! Build administrative and coordination capacity to prepare
for federal funding opportunities; and
! On or before December 1, 2027, recommend to the public
utilities commission (commission) factors for the
commission to consider when approving the acquisition of
a nuclear energy project or other clean firm resources and
cost-recovery mechanisms for the development of nuclear
energy projects.
The bill requires an investor-owned electric utility with more than
500,000 customers to:
! On or before August 1, 2027, solicit requests for
information from communities and local governments
interested in hosting a nuclear energy project and from
potential development partners; and
! Identify, in collaboration with other public utilities, local
governments, and developers, potential sites for a nuclear
energy project.
The bill states that an investor-owned electric utility may submit
to the commission, and the commission is required to approve, an
application to expend and recover up to $20 million to finance studies
regarding potential sites, facility designs, and other activities related to
the development of nuclear energy projects in the state. The bill requires
the commission to issue an approval or denial of a petition from an
investor-owned electric utility regarding a cost-recovery mechanism for
a nuclear energy project no later than 6 months after receiving the
petition.
The bill establishes a statewide goal of identifying at least one
nuclear energy project site by 2035 and beginning construction of at least
one nuclear energy project by 2040.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add part 6 to article2
38.5 of title 24 as follows:3
PART 64
ADVANCED ENERGY DEVELOPMENT5
24-38.5-601. Legislative declaration.6
(1) THE GENERAL ASSEMBLY DECLARES THAT IT IS THE POLICY OF7
HB26-1337-2-
THE STATE TO ENCOURAGE THE DEVELOPMENT OF NUCLEAR ENERGY, AND,1
ACCORDINGLY, COLORADO SHALL HAVE THE GOALS OF:2
(a) IDENTIFYING AT LEAST ONE NUCLEAR ENERGY PROJECT SITE BY3
2035; AND4
(b) BEGINNING CONSTRUCTION OF AT LEAST ONE NUCLEAR ENERGY5
PROJECT BY 2040.6
(2) THE GENERAL ASSEMBLY FURTHER DECLARES THAT THE OFFICE7
SHOULD MAKE EVERY EFFORT TO SECURE FEDERAL FUNDS TO SUPPORT THE8
COSTS OF IMPLEMENTATION AND DEVELOPMENT OF NUCLEAR ENERGY9
PROJECTS IN THE STATE.10
24-38.5-602. Definitions.11
AS USED IN THIS PART 6, UNLESS THE CONTEXT OTHERWISE12
REQUIRES:13
(1) "C ERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY "14
MEANS A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY ISSUED BY15
THE COMMISSION PURSUANT TO ARTICLE 5 OF TITLE 40.16
(2) "C OMMISSION" MEANS THE PUBLIC UTILITIES COMMISSION17
CREATED IN SECTION 40-2-101 (1).18
(3) "DEVELOPER" MEANS AN OWNER OR OPERATOR OF A NUCLEAR19
ENERGY PROJECT.20
(4) "L OCAL GOVERNMENT" MEANS A COUNTY , CITY, TOWN, OR21
CITY AND COUNTY.22
(5) "N UCLEAR ENERGY PROJECT " MEANS A PROJECT FOR THE23
CONSTRUCTION AND OPERATION OF A NUCLEAR ENERGY RESOURCE24
FACILITY.25
(6) "OFFICE" MEANS THE COLORADO ENERGY OFFICE CREATED IN26
SECTION 24-38.5-101.27
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(7) "P ERMITTING AGENCIES " MEANS STATE AND LOCAL1
GOVERNMENT AGENCIES WITH PERMITTING AUTHORITY.2
24-38.5-603. Advanced nuclear energy development -3
responsibilities of Colorado energy office - cost-recovery mechanism4
process.5
(1) T HE OFFICE SHALL SERVE AS THE STATE 'S PERMITTING6
COORDINATOR FOR NUCLEAR ENERGY PROJECTS BY:7
(a) S ERVING AS A SINGLE POINT OF CONTACT FOR DEVELOPERS ,8
STAKEHOLDERS , AND PERMITTING AGENCIES THROUGHOUT THE9
PERMITTING PROCESS;10
(b) COORDINATING WITH PERMITTING AGENCIES TO STREAMLINE11
PERMITTING PROCESSES AND ALIGN WITH FEDERAL PERMITTING12
REQUIREMENTS; AND13
(c) ASSISTING DEVELOPERS IN NAVIGATING LOCAL , STATE, AND14
FEDERAL REGULATIONS.15
(2) N OTWITHSTANDING ANYTHING IN THIS SECTION TO THE16
CONTRARY, THE UNITED STATES NUCLEAR REGULATORY COMMISSION HAS17
THE EXCLUSIVE AUTHORITY TO ISSUE PERMITS RELATED TO THE18
CONSTRUCTION AND OPERATION OF A NUCLEAR POWER PLANT OR REACTOR19
PURSUANT TO THE FEDERAL "ATOMIC ENERGY ACT OF 1954", PUB.L.20
83-703.21
(3) (a) THE OFFICE SHALL:22
(I) B UILD ADMINISTRATIVE AND COORDINATION CAPACITY TO23
PREPARE FOR FEDERAL FUNDING OPPORTUNITIES , APPLICATIONS , AND24
AWARD MANAGEMENT; AND25
(II) O N OR BEFORE DECEMBER 1, 2027, COLLABORATE WITH26
RATE-REGULATED PUBLIC UTILITIES AND RELEVANT STAKEHOLDERS TO27
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RECOMMEND TO THE COMMISSION:1
(A) FACTORS THE COMMISSION SHALL CONSIDER WHEN DECIDING2
WHETHER TO APPROVE A RATE-REGULATED PUBLIC UTILITY'S ACQUISITION3
OF A NUCLEAR ENERGY PROJECT OR OTHER CLEAN FIRM RESOURCES; AND4
(B) COST-RECOVERY MECHANISMS FOR THE DEVELOPMENT OF A5
NUCLEAR ENERGY PROJECT.6
(b) F OR THE PURPOSE OF MAKING RECOMMENDATIONS TO THE7
COMMISSION REGARDING COST -RECOVERY MECHANISMS PURSUANT TO8
SUBSECTION (3)(a)(II)(B) OF THIS SECTION, THE OFFICE SHALL EVALUATE9
POTENTIAL COST -RECOVERY MECHANISMS OR PROCESSES RELATED TO10
COST RECOVERY, INCLUDING:11
(I) A PARTIAL OR PHASED CERTIFICATE OF PUBLIC CONVENIENCE12
AND NECESSITY FOR A NUCLEAR ENERGY PROJECT;13
(II) APPROVAL OF CONCURRENT CAPITAL COST RECOVERY FOR A14
NUCLEAR ENERGY PROJECT WITHIN THE CONTEXT OF A PARTIAL OR PHASED15
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY; OR16
(III) APPROVAL OF COST PREMIUMS WITH A CAP.17
SECTION 2. In Colorado Revised Statutes, add 40-2-140 as18
follows:19
40-2-140. Nuclear energy projects - requests for information20
- nuclear energy project siting - cost recovery - definitions.21
(1) AS USED IN THIS SECTION , UNLESS THE CONTEXT OTHERWISE22
REQUIRES:23
(a) "DEVELOPER" MEANS AN OWNER OR OPERATOR OF A NUCLEAR24
ENERGY PROJECT.25
(b) "L OCAL GOVERNMENT" MEANS A COUNTY , CITY, TOWN, OR26
CITY AND COUNTY.27
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(c) "N UCLEAR ENERGY PROJECT " MEANS A PROJECT FOR THE1
CONSTRUCTION AND OPERATION OF A NUCLEAR ENERGY RESOURCE2
FACILITY.3
(d) "OFFICE" MEANS THE COLORADO ENERGY OFFICE CREATED IN4
SECTION 24-38.5-101.5
(2) (a) AN INVESTOR-OWNED ELECTRIC UTILITY WITH MORE THAN6
FIVE HUNDRED THOUSAND CUSTOMERS SHALL:7
(I) O N OR BEFORE AUGUST 1, 2027, SOLICIT A REQUEST FOR8
INFORMATION FROM COMMUNITIES AND LOCAL GOVERNMENTS9
INTERESTED IN HOSTING A NUCLEAR ENERGY PROJECT;10
(II) O N OR BEFORE AUGUST 1, 2027, SOLICIT A REQUEST FOR11
INFORMATION FROM POTENTIAL DEVELOPERS WITH EXPERIENCE12
DEVELOPING, CONSTRUCTING , OPERATING , OR SERVICING NUCLEAR13
ENERGY PROJECTS;14
(III) IDENTIFY, IN COLLABORATION WITH OTHER PUBLIC UTILITIES,15
LOCAL GOVERNMENTS , AND DEVELOPERS , POTENTIAL SITING16
OPPORTUNITIES FOR A NUCLEAR ENERGY PROJECT, TAKING INTO ACCOUNT17
THE FOLLOWING:18
(A) JOBS AND WORKFORCE TRANSITION OPPORTUNITIES;19
(B) E XISTING INFRASTRUCTURE , WATER , AND LAND USE20
REGULATIONS; AND21
(C) E NVIRONMENTAL JUSTICE AND JUST TRANSITION22
CONSIDERATIONS AND COMMUNITY SUPPORT AND BENEFITS;23
(IV) WHEN IDENTIFYING POTENTIAL SITES FOR NUCLEAR ENERGY24
PROJECTS, GIVE PREFERENCE TO A POTENTIAL SITE FOR A NUCLEAR25
ENERGY PROJECT THAT IS LOCATED IN AN ENERGY COMMUNITY , AS26
DEFINED BY THE FEDERAL "INFLATION REDUCTION ACT OF 2022", PUB.L.27
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117-169; AND1
(V) WHEN PRACTICABLE, ALIGN IDENTIFICATION OF POTENTIAL2
SITES FOR NUCLEAR ENERGY PROJECTS WITH LARGE -LOAD SITING AND3
DEVELOPMENT.4
(b) T HE COMMISSION SHALL ALLOW FOR EXPEDITED , UP-FRONT5
COST RECOVERY FOR AN INVESTOR-OWNED ELECTRIC UTILITY WITH MORE6
THAN FIVE HUNDRED THOUSAND CUSTOMERS FOR EXPENDITURES RELATED7
TO THE REQUIREMENTS SET FORTH IN SUBSECTION (2)(a) OF THIS SECTION.8
(c) AN INVESTOR-OWNED ELECTRIC UTILITY WITH MORE THAN FIVE9
HUNDRED THOUSAND CUSTOMERS MAY SUBMIT TO THE COMMISSION, AND10
THE COMMISSION SHALL APPROVE , AN APPLICATION TO EXPEND AND11
RECOVER UP TO TWENTY MILLION DOLLARS TO FINANCE STUDIES12
REGARDING POTENTIAL SITES, FACILITY DESIGNS, AND OTHER ACTIVITIES13
RELATED TO THE DEVELOPMENT OF NUCLEAR ENERGY PROJECTS IN THE14
STATE.15
(d) AN INVESTOR-OWNED ELECTRIC UTILITY WITH MORE THAN FIVE16
HUNDRED THOUSAND CUSTOMERS SHALL RECOVER STUDY EXPENDITURES17
APPROVED PURSUANT TO SUBSECTION (2)(c) OF THIS SECTION THROUGH18
AN EXISTING RATE ADJUSTMENT MECHANISM THAT IS ASSOCIATED WITH19
THE COST OF GENERATION CAPACITY OR THROUGH DEFERRED ACCOUNTING20
TREATMENT FOR WHICH THE DEFERRED EXPENDITURES ARE RECOVERABLE21
IN THE FIRST RATE CASE SUBMITTED AFTER THE COMPLETION OF THE22
STUDIES.23
(3) A N INVESTOR-OWNED ELECTRIC UTILITY MAY PETITION THE24
COMMISSION FOR COST RECOVERY FOR A NUCLEAR ENERGY PROJECT USING25
THE COST-RECOVERY MECHANISM RECOMMENDATIONS THAT THE OFFICE26
RECOMMENDS TO THE COMMISSION PURSUANT TO SECTION 24-38.5-60327
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(3)(a)(II)(B).1
(4) T HE COMMISSION MAY APPROVE A COST -RECOVERY2
MECHANISM RECOMMENDED BY THE OFFICE PURSUANT TO SECTION3
24-38.5-603 (3)(a)(II)(B). NO LATER THAN SIX MONTHS AFTER RECEIVING4
A PETITION FROM AN INVESTOR-OWNED ELECTRIC UTILITY REGARDING A5
COST-RECOVERY MECHANISM FOR A NUCLEAR ENERGY PROJECT , THE6
COMMISSION SHALL ISSUE AN APPROVAL OR DENIAL OF THE PETITION. IN7
EVALUATING THE PETITION , THE COMMISSION SHALL CONSIDER HOW8
COST-RECOVERY MECHANISMS MAY INCENTIVIZE NUCLEAR ENERGY9
DEVELOPMENT AND PROTECT CUSTOMER UTILITY BILLS.10
SECTION 3. Act subject to petition - effective date -11
applicability. (1) This act takes effect at 12:01 a.m. on the day following12
the expiration of the ninety-day period after final adjournment of the13
general assembly (August 12, 2026, if adjournment sine die is on May 13,14
2026); except that, if a referendum petition is filed pursuant to section 115
(3) of article V of the state constitution against this act or an item, section,16
or part of this act within such period, then the act, item, section, or part17
will not take effect unless approved by the people at the general election18
to be held in November 2026 and, in such case, will take effect on the19
date of the official declaration of the vote thereon by the governor.20
(2) This act applies to nuclear energy projects proposed on or after21
the applicable effective date of this act.22
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