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CO HB1226

CO HB1226
Manage Emissions from Electric Generating Units


summary

Introduced
02/18/2026
In Committee
04/24/2026
Crossed Over
04/24/2026
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

Section 2 of the bill requires the air quality control commission, no later than December 31, 2029, to adopt a final rule (rule) establishing certain limits on the emission of nitrogen oxides and sulfur dioxide 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, and must not cover units that have ceased operations, burn natural gas or fuel oil only, or have certain systems installed before December 31, 2029. 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). 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unit to remain operating after the unit was scheduled to retire (order) and continuing every 90 days until the order is no longer in effect, to file a report with the public utilities commission (commission) that contains certain information about the costs to operate the unit and the amount of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 supply-side resources for an investor-owned utility serving more than 500,000 customers, the commission must approve a total 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.

AI Summary

This bill mandates that by December 31, 2029, the air quality control commission must establish emission limits for nitrogen oxides and sulfur dioxide from "covered electric generating units" – specifically, power plants owned by electric utilities in the state that emitted 200 tons or more of these pollutants in 2024, unless they burn only natural gas or fuel oil, or already have certain pollution control systems installed by December 31, 2029. Compliance with these new limits must begin as soon as practicable after December 31, 2034, and owners of these units must submit quarterly reports to the division of administration demonstrating their adherence to the rules. Additionally, investor-owned utilities or wholesale electric cooperatives operating a unit that is federally ordered to continue operating past its planned retirement date (an "order") must report to the public utilities commission every 90 days on the costs and electricity generated by that unit, with these reports being made public. The bill also allows investor-owned utilities to seek approval for financing orders to recover costs associated with complying with such federal orders, and for utilities serving over 500,000 customers, it requires the public utilities commission to approve sufficient resources to ensure reliable implementation of retirement dates or operational restrictions for their covered electric generating units and to meet carbon dioxide emission reduction goals.

Committee Categories

Agriculture and Natural Resources, Budget and Finance, Transportation and Infrastructure

Sponsors (33)

Last Action

Introduced In Senate - Assigned to Transportation & Energy (on 04/24/2026)

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