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SB 182

Updated Clean Energy Plan Municipally Owned Utility

2026 Regular Session

MOUs may submit an updated clean energy plan to achieve 80% GHG reductions by 2032 (and up to 95% by 2039) with phased coal phase-out and public verification.

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Bill Summary · SB 182

Summary — SB 26-182: Updated Clean Energy Plan for Municipally Owned Utilities (Colorado, 2026 Session)

Purpose and intent
- The bill creates an updated framework for municipally owned utilities (MOUs) that have previously filed clean energy plans but face challenges meeting an 80% greenhouse gas (GHG) emission reduction target for Colorado electricity sales by 2030 (relative to 2005 levels).
- It authorizes the Division of Administration within the Department of Public Health and Environment (CDPHE) to accept and verify an updated clean energy plan (UCEP) from an MOU, with a accelerated or adjusted timeline intended to achieve substantial GHG reductions while preserving electric reliability.

Key provisions and changes
1. New filing option for MOUs (Sec. 25-7-105)
- MOUs that struggled to meet prior emission reduction goals may submit an updated clean energy plan (UCEP) to CDPHE.
- The submittal deadline is December 31, 2026.
- The UCEP must be approved by the MOUs governing body and demonstrate achievement of an 80% GHG reduction by the earliest possible date on or after December 31, 2029, but no later than December 31, 2032.

  1. Required contents of the updated plan (XI.1)

    • Detailed generation and transmission plan, including:
      • Specific resources anticipated to achieve the 80% reduction.
      • Areas where new generation would be procured.
      • Location and capacity of any new transmission required, to be developed or acquired through the relevant Regional Transmission Organization (RTO) in which the MOU participates.
    • Annual progress reporting (starting Jan 1, 2028 through Dec 31, 2033), including:
      • Progress toward generation and transmission resource acquisition.
      • Emissions reductions relative to 2005 levels.
      • Updated load and resource forecast (loads and resources table) showing changes to forecasted demand.
    • Coal phase-out:
      • Coal-fired generation owned or operated by the MOU must cease by December 31, 2032.
    • Additional GHG reductions:
      • MOU should pursue a 95% reduction in GHG emissions from Colorado retail electricity sales by December 31, 2039, as long as reliability standards of the relevant grid (RTO) are not compromised.
    • Emissions accounting until mid-2035:
      • Between achieving 80% reductions and December 31, 2035, MOUs should seek to reduce any cumulative emissions caused by delays in the updated plan relative to the original plan, without compromising reliability.

  2. Verification and costs (XI.2)

    • CDPHE must publicly verify the UCEP.
    • Verification by CDPHE does not involve the Public Utilities Commission (PUC).
    • The MOU must pay all reasonable costs for CDPHE’s verification.
    • Subsection alignment: dates related to verification and milestones align with the revised timelines in the UCEP.

  3. Administrative and coordination elements

    • The updated plan must be verified by CDPHE (public verification), with cost responsibility on the MOU.
    • Other statutory deadlines related to the cleaner energy plan are adjusted to align with the new timeline for MOUs submitting an updated plan.

  4. Section 2 – Effective date

    • The act becomes effective upon signature by the Governor or upon becoming law without signature.

Context and fiscal notes (as summarized in the fiscal analysis)
- The bill recognizes potential ongoing state and local administrative effects:
- Minimal impact on state revenue; no new appropriations required.
- Local government (MOUs) incur costs to develop, file, and publicize the UCEP and to fund CDPHE verification.
- CDPHE workload increases to verify revised plans in 2026 and to process annual reports through 2033.
- Any CDPHE verification costs would be recouped from MOUs; if revenue collection occurs, funds would go to the Stationary Sources Control Fund (subject to TABOR).
- The net fiscal impact is characterized as minimal on state revenue and expenditures, with ongoing local impacts.

Who is affected
- Municipally owned utilities in Colorado that have previously filed clean energy plans and encountered challenges meeting the 2030 reduction target.
- CDPHE (for verification and reporting).
- The Public Utilities Commission is not involved in the verification process for a UCEP under this bill.

Overall effect
- Provides MOUs with a formal path to revise and extend their clean energy plans to achieve substantial GHG reductions (80% by 2032, with stronger interim and long-term targets up to 95% by 2039), while ensuring reliability and transparency through detailed planning, annual reporting, coal phase-out, and public verification.

Compiled from official sources — confirm details with the bill’s official record.

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