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Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 26-0448.01 Sarah Lozano x3858 SENATE BILL 26-022
Senate Committees House Committees
Transportation & Energy
A BILL FOR AN ACT
CONCERNING AN ENTITY THAT ENCOUNTERS CHALLENGES IN101
ACHIEVING THE GREENHOUSE GAS EMISSIONS REDUCTION GOAL102
INCLUDED IN THE ENTITY'S CLEAN ENERGY PLAN.103
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.)
Current law requires certain entities to file a clean energy plan
(plan) to achieve an 80% decrease of greenhouse gas emissions caused by
the entity's electricity sales in Colorado by 2030 relative to 2005 levels.
Other entities may voluntarily choose to file a plan.
Under current law, no later than March 31, 2026, an entity required
SENATE SPONSORSHIP
Snyder and Simpson, Liston, Zamora Wilson
HOUSE SPONSORSHIP
Caldwell and Paschal, Flanell, Keltie
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.
to submit a plan may inform the division of administration (division) in
the department of public health and environment in writing of challenges
the entity is encountering or expects to encounter in achieving the 80%
reduction of greenhouse gas emissions by 2030. The bill clarifies that an
entity that has voluntarily submitted a plan may also inform the division
of challenges the entity is encountering or expects to encounter in
achieving the 80% reduction of greenhouse gas emissions by 2030. The
bill also extends the deadline by which an entity must inform the division
of challenges from March 31, 2026, to May 31, 2026.
A cooperative electric association (association) exempted from
regulation by the public utilities commission or a municipal utility (utility)
that informs the division of challenges the association or utility is
encountering or expects to encounter has until December 31, 2026, to
submit to the division an updated plan with the earliest year, not later than
2040, that the association or utility expects to be able to achieve the 80%
decrease of greenhouse gas emissions, relative to 2005 levels, without
impairing the association's or utility's ability to maintain applicable
electric reliability standards and without increasing the association's or
utility's average annual electric rates greater than 1.5%.
The bill prohibits the air quality control commission and the
division from undertaking any action that impairs the association's or
utility's ability to maintain applicable electric reliability standards or that
increases the association's or utility's average annual electric rates greater
than 1.5%.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
finds that:3
(a) Colorado energy prices are rising at an untenable pace for the4
state's most vulnerable populations, disproportionately impacting5
income-qualified residents and creating an energy affordability crisis that6
forces struggling families and small businesses to make difficult decisions7
regarding trade-offs for necessary expenses;8
(b) As a result, utility payment delinquencies are at an all-time9
high and utility bill payment assistance programs are struggling to support10
the expanding needs of community members;11
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(c) Energy Outreach Colorado's 2024 annual report shows that1
nearly one in 5 Colorado families spend 7% or more of their income on2
energy bills, with 10.1% of families facing a severe energy burden of3
spending over 10% of their income on energy bills;4
(d) Further, utility data reported to the U.S. energy information5
administration shows a 22% increase in the cost of residential electricity6
in Colorado over the last 6 years, worsened by double-digit rate increases7
forecasted in upcoming years;8
(e) The Colorado department of human services, referred to in this9
section as "DHS", received over 136,000 applications for low-income10
home energy assistance in state fiscal year 2024-25;11
(f) DHS approved over 60% of these applications and provided12
over $49,800,000 at an average benefit of over $565 per applicant. The13
total number of applications with DHS for low-income home energy14
assistance has increased 44% since 2019 and total payouts have increased15
over 58%, demonstrating the severity of the affordability crisis.16
(g) In state fiscal year 2024-25, DHS received the greatest number17
of applications for assistance from El Paso county residents, with over18
18,000 applications. DHS approved over 11,000 of these applications and19
provided more than $5 .69 milli on in assistance to El Paso county20
residents.21
(h) Requests with DHS for low-income energy assistance from El22
Paso county have increased 48% since 2019, and El Paso county has led23
the state each year in the total number of applications since 2019;24
(i) Because of the cost pressure already faced by many25
income-qualified Coloradans, certain safeguards must exist to protect26
already struggling ratepayers as Colorado undergoes a monumental clean27
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energy transition to achieve a carbon-free state economy;1
(j) Electricity must be made available on demand to maintain the2
reliability of the grid, and electric utilities must maintain a certain level3
of firm electric generation resources that can be controlled or dispatched4
when needed;5
(k) The early retirement of these firm dispatchable electric6
generation resources before sufficient replacement generating capacity is7
made available causes resource adequacy challenges and significantly8
increases uncertainty as to when and how much energy is needed and9
available;10
(l) Insufficient electric resource adequacy can lead to power11
disruptions that directly impact the health and safety of Coloradans and12
the vital services offered by hospitals, schools, and first responders;13
(m) Because of the implications to national security, federal law14
requires that military installations have electric power available at least15
99.9% of the time;16
(n) Colorado is home to 6 major military installations that are17
critical components of our national defense infrastructure, with 5 of the18
installations in El Paso county and one installation in Aurora;19
(o) Ensuring continued reliable and affordable electric service to20
the military is crucial to ensuring installations in Colorado can achieve21
their critical missions and lessen the pressure to relocate these facilities22
to other parts of the country;23
(p) Electric utilities throughout Colorado vastly differ from one24
another based on the communities they serve, their business model, the25
size of their service territories, the technical capabilities of their systems,26
and many other factors; however, the state's clean energy planning27
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framework requires all electric utilities to achieve the exact same1
greenhouse gas emission reductions by the exact same dates;2
(q) Access to electric transmission and interconnection facilities3
is the key factor in determining a utility's ability to access new renewable4
energy resources and quickly retire and replace its generation fleet in a5
reliable and affordable fashion;6
(r) However, not all utilities ha ve the sa me access to the same7
transmission and interconnection assets, and more transmission must be8
built to give Colorado utilities a more equal footing in their ability to9
access a broader array of resources;10
(s) Several of Colorado's not-for-profit electric utilities are11
expected to join the Southwest Power Pool regional transmission12
organization in 2026, which will afford these utilities with new pathways13
to access the resources necessary to achieve their clean energy targets,14
especially the identification, funding, and construction of new15
transmission projects;16
(t) However, the process to identify new transmission projects in17
the regional transmission organization will not begin until 2027, and the18
construction of such projects will take several years to permit and19
construct;20
(u) In addition to barriers to transmission access, Colorado21
utilities have been challenged by market conditions that were22
unanticipated when the clean energy planning framework was established23
in 2019 and amended in 2023, including an ever-changing federal policy24
environment, unpredictable tariffs, supply chain disruptions, and the25
repeal of clean energy subsidies for electricity investment and production26
tax credits for wind and solar projects;27
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(v) These federal changes have increased the cost, time, and1
regulatory risk and ratepayer burden of advancing clean energy goals;2
(w) The inflexibility in Colorado's clean energy planning3
framework does not recognize the material challenges utilities are facing4
and offers no relief for utilities that are willing but unable to meet the5
state's emission reduction targets within the next 4 years without6
significant cost increases and threats to reliability; and7
(x) Environmental sustainability remains a priority of the general8
assembly. However, state policy must not impose an undue financial9
burden on ratepayers, with particular attention to income-qualified10
households and the protection of community members and critical11
services requiring uninterrupted power.12
(2) Therefore, the general assembly determines and declares that13
Colorado's clean energy planning framework should include flexibility for14
utilities that are unable to achieve their clean energy targets and consider15
retail rate impacts and reliability standards to protect consumers and16
prevent statewide resource adequacy constraints.17
SECTION 2. In Colorado Revised Statutes, 25-7-105, amend (1)18
introductory portion and (1)(e)(VIII.5)(H); and add (1)(e)(VIII.5)(I) as19
follows:20
25-7-105. Duties of commission - technical secretary - rules -21
report - legislative declaration - definitions - repeal.22
(1) Except as provided in sections 25-7-130 and 25-7-131, the23
commission shall promulgate ADOPT rules that are consistent with the24
legislative declaration set forth in section 25-7-102 and necessary for the25
proper implementation and administration of this article 7, including:26
(e) (VIII.5) (H) No later than March 31, 2026, any MAY 31, 2026,27
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AN entity required to submit THAT SUBMITS a clean energy plan or a plan1
pursuant to subsection (1)(e)(VIII)(I) SUBSECTION (1)(e)(VIII) of this2
section to the division may inform the division in writing of any3
challenges the entity is encountering or expects to encounter in achieving4
at least an eighty percent reduction of greenhouse gas emissions caused5
by the entity's Colorado electricity sales by 2030 relative to 2005 levels.6
If an entity informs the division of any challenges in achieving the7
greenhouse gas emissions reduction percentage, the division, in8
coordination with the Colorado energy office created in section9
24-38.5-101 (1), shall hold at least one public stakeholder meeting in10
2026 to discuss the challenges raised by the entity and strategies for the11
entity to achieve the greenhouse gas emissions reduction percentage. If,12
after the public stakeholder meeting, an THE entity informs the division13
in writing that the entity is still encountering or expects to encounter14
challenges in achieving the greenhouse gas emissions reduction15
percentage, no later than December 31, 2026, the division shall submit a16
concise report to the general assembly summarizing the challenges the17
entity is encountering or expects to encounter and describing any potential18
solutions to the challenges. This subsection (1)(e)(VIII.5)(H) is repealed,19
effective July 1, 2027.20
(I) N OTWITHSTANDING ANY OTHER REQUIREMENT OF THIS21
SUBSECTION (1)(e), AN ENTITY DESCRIBED IN SUBSECTION (1)(e)(VIII)(F)22
OF THIS SECTION THAT , ON OR BEFORE MAY 31, 2026, INFORMS THE23
DIVISION OF CHALLENGES IN ACHIEVING THE GREENHOUSE GAS EMISSIONS24
REDUCTION PERCENTAGE MAY SUBMIT AN UPDATED CLEAN ENERGY PLAN25
TO THE DIVISION , NO LATER THAN DECEMBER 31, 2026, WITH THE26
EARLIEST YEAR, NOT LATER THAN 2040, THAT THE ENTITY EXPECTS TO BE27
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ABLE TO ACHIEVE AT LEAST AN EIGHTY PERCENT REDUCTION OF1
GREENHOUSE GAS EMISSIONS CAUSED BY THE ENTITY 'S COLORADO2
ELECTRICITY SALES RELATIVE TO 2005 LEVELS WITHOUT IMPAIRING THE3
ENTITY'S ABILITY TO MAINTAIN THE ELECTRIC RELIABILITY STANDARDS4
ADOPTED BY THE NORTH AMERICAN ELECTRIC RELIABILITY5
CORPORATION OR A REGIONAL TRANSMISSION ORGANIZATION OF WHICH6
THE ENTITY IS A MEMBER AND WITHOUT RESULTING IN AN INCREASE IN THE7
ENTITY'S AVERAGE ANNUAL ELECTRICITY RATES GREATER THAN ONE AND8
ONE-HALF PERCENT. NOTWITHSTANDING ANY OTHER PROVISION OF THIS9
SECTION, NEITHER THE COMMISSION NOR THE DIVISION SHALL UNDERTAKE10
ANY ACTION THAT IMPAIRS THE ENTITY 'S ABILITY TO MAINTAIN THE11
ELECTRIC RELIABILITY STANDARDS ADOPTED BY THE NORTH AMERICAN12
ELECTRIC RELIABILITY CORPORATION OR A REGIONAL TRANSMISSION13
ORGANIZATION OF WHICH THE ENTITY IS A MEMBER OR THAT RESULTS IN14
AN INCREASE IN THE ENTITY 'S AVERAGE ANNUAL ELECTRICITY RATES15
GREATER THAN ONE AND ONE-HALF PERCENT.16
SECTION 3. Safety clause. The general assembly finds,17
determines, and declares that this act is necessary for the immediate18
preservation of the public peace, health, or safety or for appropriations for19
the support and maintenance of the departments of the state and state20
institutions.21
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