HB 26-1226

HB 26-1226, a Colorado bill that has been signed into law, aims to reduce harmful emissions from large power plants. It requires these plants to limit their release of nitrogen oxides and sulfur dioxide by installing pollution control systems by the year 2034. The law also mandates regular reporting on emissions and costs for certain utilities if federal orders keep old units running past their retirement dates. This bill affects electric utility companies operating in Colorado, particularly those with large power plants that emit significant amounts of pollutants. Since it has been signed into law, these regulations will now be implemented by the Department of Public Health and Environment to improve air quality across the state.

Official Summary

Section 2 of the bill requires the air quality control commission, no later than December 31, 2029, to adopt a final rule division of administration in the department of public health and environment (division), no later than July 2029, to propose a final rule (rule) establishing certain limits on the emission of nitrogen oxides and sulfur dioxide (emission limits) from an electric generating unit (unit) that is owned or operated by an electric utility, is located in the state, and emitted 200 tons or more of nitrogen oxides, sulfur dioxide, or both in calendar year 2024 (covered electric generating unit). The rule must require compliance with the emission limits as soon as practicable after December 31, 2030, 2034, and must not cover units that have ceased operations, burn natural gas or fuel oil natural gas, fuel oil, or both only, or have certain systems installed before December 31, 2029. A unit that operates after December 31, 2034, must install certain pollution controls and comply with the emission limits on or before December 31, 2034.      Section 2 also requires the owner or operator of a covered electric generating unit is required to provide quarterly emission reports showing compliance with the rule to the division. of administration in the department of public health and environment (division). On August 1, 2029, the air quality control commission in the department of public health and environment (AQCC) must submit to the general assembly a list of any units that are subject to a federal order. If there are any units subject to a federal order, the AQCC must also submit to the general assembly recommendations on whether to amend the requirements for units subject to federal order.      Section 3 requires an investor-owned utility or wholesale electric cooperative that is the owner or operator of a unit, beginning 150 days after the issuance of a federal order requiring the unit to remain operating after the unit was scheduled to retire (order) and continuing every 90 days until the order is no longer in effect, to file a report with the public utilities commission (commission) that contains certain information about the costs to operate the unit and the amount of electricity generated by the unit. The commission must make these reports publicly available.      Section 3 also allows an investor-owned utility to submit an application for a financing order to recover the costs of complying with an order.      Section 3 also requires that, if the commission issues a written decision approving a portfolio that consists of or modifying a portfolio in an electric resource plan in which the commission evaluates the acquisition of supply-side resources for an investor-owned utility serving more than 500,000 customers, the commission must approve a total an amount of accredited capacity for the investor-owned utility to reliably implement certain retirement dates or operational restrictions applicable to the investor-owned utility's covered electric generating unit and comply with any applicable carbon dioxide emission reduction requirements. This accredited capacity requirement applies to an investor-owned utility serving more than 500,000 customers until the division determines that the investor-owned utility has achieved certain carbon dioxide emission reductions or until the investor-owned utility has retired all covered electric generating units, whichever is later.(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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