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DENVER, CO – The House today passed HB26-1226 on a preliminary vote to fight back against federal mandates that force coal plants set to retire to stay operational, which will drive up costs to ratepayers and hinder Colorado’s clean energy future.
“With this bill, we’re pushing back against federal overreach that increases costs for ratepayers and continues to burden communities with pollution,” said Rep. Jenny Willford, D-Northglenn. “There is consensus among the Colorado Attorney General, environmental organizations, and the operators of the Craig Unit 1 power plant that forcing coal plants to stay online will increase utility costs for Coloradans. Colorado needs authority to plan for our own energy future, and this bill helps protect ratepayers and bring us closer to our climate goals.”
“Trump's capricious, ill-advised use of an emergency order to keep an aging coal plant online will increase utility costs and set back Colorado’s climate and clean air goals,” said Rep. Meg Froelich, D-Englewood. “Coloradans should be in charge of our state’s energy future, not the federal government. And ratepayers deserve to know how much propping up an aging, broken-down coal-fired power plant will cost them on their utility bills. Our bill protects consumers from Trump’s war on clean energy and destructive energy cost increases while keeping us on track to meet our climate goals.”
HB26-1226 protects Colorado’s utility consumers and air quality and clean energy goals. To safeguard Colorado’s environment, this bill helps to mitigate the impacts of federal interference in Colorado’s energy future, ensures energy reliability, and modernizes standards for coal plant pollution.
If coal-fired plants are permitted to operate past 2034, this bill would:
Mandate that consumers and regulators are given information on the costs of keeping those coal plants open, and give the Public Utilities Commission (PUC) financing tools to manage operating costs, minimizing the impact on ratepayers.
Ensure the PUC approves new resources for Colorado’s largest electric utilities to help Colorado reach our carbon reduction targets and retire coal plants on schedule.
Require that coal plants still in operation use modern pollution controls to reduce emissions and help Colorado reach clean energy targets
In addition to informing consumers about the cost impacts of keeping coal plants open past their retirement date, this bill also allows utility companies to use securitization as a financing tool if it lowers costs for ratepayers. This would include refinanced debt or long-term, low-interest bonds on large-scale projects to help lower costs for ratepayers now.
To reduce pollution, this bill would require the Air Quality Control Commission (AQCC) to issue a rule to set limits on the emission of NOx and SO2 from coal-fired power plants, unless those plants have retired or converted to burn a fuel other than coal. HB26-1226 would also require operators to submit quarterly emissions reports showing compliance beginning in 2034.
Last December, the Trump Administration issued a 202(c) emergency order to keep an aging coal-fired power plant in Craig operating, despite the plant's scheduled retirement in late 2025. This unprecedented order was challenged by the Colorado Attorney General and environmental groups last month.
Additionally, the owners of the coal power plant, Tri-State Generation and Transmission Association and the Platte River Power Authority filed a formal petition asking the U.S. Department of Energy to reconsider to “find a more effective and affordable path forward, one that will not delay retirement of Craig Unit 1.” Last month, the Trump administration issued a second order, further extending coal burning at Craig until at least June, which is estimated to cost almost $80 million annually.