Colorado Sierra Club and NRDC Celebrate Signing of "Clean Energy Plans" Bill

Denver, CO -  Colorado Gov. Jared Polis signed SB23-198 "Clean Energy Plans'' into law this week, which will reduce air pollution from the electricity sector and advance the state's goal of 100 percent renewable energy by 2040. The bill was sponsored by Senators Winter and Cutter and Representatives Weissman and Lindstedt. The law expands the scope of a 2019 bill that created a Clean Energy Plan framework, under which utilities must file plans demonstrating an 80 percent reduction in greenhouse gas emissions by 2030 relative to 2005 levels.  

“Every passing year makes it even more clear humanity’s need to take urgent action to reduce climate change causing emissions and every passing year makes clear the need for state leadership toward this end,” said Rep. Mike Weissman. “With SB23-198 we fortify Colorado’s greenhouse gas reduction framework, account for changes in energy markets since the last major legislation in this space, and future proof against possible further market changes as well.”

SB23-198 updates the legal requirements for Clean Energy Plans to keep pace with changes in the electric sector. For example, United Power and Mountain Parks Electric announced they will cease to be members of Tri-State Generation and Transmission by 2024 and 2025, respectively, at which point United will become one of Colorado’s largest utilities. SB23-198 ensures that as electric cooperatives leave Tri-State, or get more of their power from sources other than Tri-State, they are still doing their part to help achieve Colorado’s climate goals.

“Colorado's energy environment is evolving, and it's important we build the infrastructure now to support our growing need for renewable energy sources and meet our emissions reductions goals," said Rep. William Lindstedt. “We need to reduce our emissions in the utility sector to reach Colorado's climate goals, and this law is another important step forward toward cleaning up our air and combating climate change."

"Holding Colorado utilities accountable to reducing climate pollution and pursuing actual clean energy solutions is one of the most imperative steps we can take toward achieving state climate goals," said Grace Thorvilson, Campaign Representative with Sierra Club. "Especially at a time when utilities are considering dirty emerging technologies disguised as clean energy such as hydrogen blending or gas plants with carbon capture, we need all utilities plans to undergo thorough review and public input."

In addition, the law requires or encourages utilities to make consistent progress toward the goal of an 80 percent reduction in GHG emissions by 2030 by achieving a 46 percent reduction in GHG pollution by 2027. The bill also requires the Air Pollution Control Division to conduct a check-in in 2027 to ensure that utilities remain on-track to achieve the emission reductions in Clean Energy Plans. 

“This law helps ensure more electricity providers are cutting their climate pollution, moving us to a future where renewable energy powers our homes, buildings and transportation,” said Alana Miller, Colorado Policy Director with NRDC (Natural Resources Defense Council). “The bill also enables the state to evaluate if utilities are on track to meet their required reductions, while improving transparency and providing increased opportunity for public involvement.”
 
The law authorizes the Colorado Energy Office to provide technical assistance to electric utilities on how to take advantage of federal funding in the Inflation Reduction Act and provides the public with more information about utilities' Clean Energy Plans and more opportunities to weigh in on agency reviews. This is consistent with recommendations of the Environmental Justice Task Force for increased access to information and public participation in decisions about sources of air pollution.