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DENVER, CO — Governor Jared Polis yesterday signed legislation to fight back against federal mandates that force aging coal plants to stay operational, which will drive up costs to ratepayers and hinder Colorado’s clean energy future.
“With this law, 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 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 to plan for our own energy future, and this law helps protect ratepayers and bring us closer to our climate goals.”
“Colorado is a leader in climate policy, and we should be able to continue planning our own energy future,” said Senate Assistant Majority Leader Lisa Cutter, D-Jefferson County. “While the Trump Administration is busy propping up outdated, highly polluting, ready-to-retire coal plants, we’ve made considerable progress in bringing Colorado into a sustainable future with clean air, good jobs, and affordable energy. This law will mitigate harm caused by misguided federal mandates while protecting ratepayers and maintaining clean air standards.”
“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. 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 law protects consumers from Trump’s war on clean energy and destructive energy cost increases while keeping us on track to meet our climate goals.”
“The Trump Administration is trying to force expensive, polluting coal plants to stay open against the will of our communities, ignoring years of thoughtful planning,” said Sen. Weissman, D-Aurora. “This bill pushes back by requiring transparency and pollution safeguards if some coal plants are required to stay open, ensuring Colorado can continue to chart our own path forward.”
HB26-1226 will help to mitigate the impacts of federal interference in Colorado’s energy future, ensure energy reliability, and implement modern standards for coal plant pollution.
If coal-fired plants are permitted to operate past 2034, this law will:
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 law will also allow 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 law will require the Air Quality Control Commission to issue a rule to set limits on the emission of nitrogen oxides (NOx) and sulfur dioxide (SO2) from coal-fired power plants, unless those plants have retired or converted to burn a fuel other than coal. HB26-1226 also requires operators to submit quarterly emissions reports showing compliance and the associated costs beginning in 2034, which the commission must make available to the public.
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. The Colorado Attorney General and environmental groups challenged this unprecedented order.
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.” In March, 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.