Adding Nuclear Energy as a Clean Energy Resource

2025 Regular Session Introduced by Mark Baisley and 37 co-sponsors

Nuclear energy is added as a clean energy resource to count toward Colorado’s clean energy goals, with a caveat that public utility nuclear generation is excluded from certain prop

Governor Signed

HB 25‑1040 — Adding Nuclear Energy as a Clean Energy Resource (Enacted)

Status
- Governor signed: March 31, 2025
- Effective date (per fiscal note): August 6, 2025
- Act subject to referendum: if a valid petition is filed within the statutory period, implementation would be suspended pending voter approval at the November 2026 general election.

Purpose and intent
- The bill amends Colorado statutory definitions to explicitly include nuclear energy as a form of “clean energy” and a “clean energy resource.” The legislative findings state that adding nuclear expands options to decarbonize the grid, supports reliability (high capacity factor cited), can replace coal plants while preserving jobs, and supports emerging technologies such as small modular reactors.

Key provisions
1. Definitions updated
- Colorado Revised Statutes 30‑20‑1202 (definitions used for local clean energy project finance): adds “nuclear energy” (including projects funded through U.S. Department of Energy advanced nuclear reactor programs) to the list of sources defined as “clean energy.”
- Colorado Revised Statutes 40‑2‑125.5 (definitions for the 2050 clean energy target): adds nuclear energy to the statutory definition of “clean energy resource” (i.e., technologies that generate or store electricity without emitting CO2).

Property tax carve‑out

Colorado Revised Statutes 39‑4‑101 (property taxation definitions): for purposes of property valuation under that article, “clean energy resource” does NOT include nuclear energy generated by a public utility. (In other words, nuclear generation by a public utility is excluded from any property‑tax treatment that depends on the statutory “clean energy resource” definition.)

Standard legislative mechanics

The act includes the standard referendum/effective‑date language (90 days after final adjournment unless a referendum is filed).

Who is affected
- Regulated utilities and retail utilities: nuclear generation may now be counted toward Colorado’s clean energy targets and standards where statutory definitions are used.
- Local governments and applicants to the Rural Clean Energy Project Finance Program: nuclear projects become eligible under the “clean energy” definition for program financing eligibility.
- Counties: possible minimal additional workload to process applications for rural clean energy financing.
- Public Utilities Commission (PUC): minor rule‑making or administrative updates to reflect the new definitions.
- Property taxpayers / public utilities: nuclear energy produced by a public utility is excluded from the “clean energy resource” label for property valuation purposes, which may affect tax treatment tied to that designation.

Fiscal and administrative impact
- Final fiscal note (Legislative Council Staff, August 12, 2025): no state revenue or spending impact; no appropriation required. The PUC and counties may see minimal, absorbable workloads related to rule updates and application processing in FY 2025‑26.

Legislative process highlights
- Introduced in House: Jan 8, 2025; passed both chambers without substantive changes in March 2025. Sent to Governor March 26 and signed March 31, 2025.