SB 182 — Updated Clean Energy Plan Municipally Owned Utility

NOTE:SENATE BILL 26-182 BYSENATOR(S) SnyderandSimpson, Carson,Frizell,Kirkmeyer, Liston, Pelton B., Pelton R., Coleman;

This bill has been prepared for the signatures of the appropriate legislative officers and the Governor.

To determine whether the Governor has signed the bill or taken other action on it, please consult the legislative status sheet, the legislative history, or the Session Laws.

SENATE BILL 26-182 BYSENATOR(S)SnyderandSimpson,Carson,Frizell,Kirkmeyer,Liston, Pelton B., Pelton R., Coleman;

CCONCERNING ONCERNING AN UPDATED CLEAN ENERGY PLAN FROM A MUNICIPALLY OWNEDOWNEDUTILITY. UTILITY .

Be it enacted by the GeneralGeneralAssembly Assemblyofthe of the State ofofColorado: Colorado:

In Colorado Revised Statutes, 25-7-105,25-7-105,amend amend (1) introductory portion and (1)(e)(VIII)(F);

and add (1)(e)(VIII.5)(I),( (1)(e)(XI.1),1)(e)(VIIl.5)(I), (l)(e)(XI.l), and (1)(e)(XI.2)(l)(e)(XI.2) as follows:

(1) Except as provided in sections 25-7-130 and 25-7-131, the commission shall promulgate ADOPT rules that are consistent with the legislative declaration set forth in section 25-7-102 and necessary for the proper implementation and administration ofofthis this article 7, including:

________ Capital letters oror&bitalic bold & italic numbers indicate new material added to existing law;

dashes through words or numbers indicate deletionsdeletionsfrom from existing law andandsuch such material is notnotpart part of the act.

(e) (VIII)(V (F)II(F) AcleanenergyplanAclean voluntarilyfiledenergy byaplan voluntarily filed by a cooperative electric association that has voted to exempt itself from regulation by the public utilities commission pursuant to article 9.5 ofo f title 40 or by a municipal utility shall be deemed approved by the public utilities commissionasfiledif:Thedivisioninconsultationwiththepublicutilitiescommission commission,as publiclyverifiesfiled thatif: the plan demonstrates that, by2030, the cooperative electric association or municipal utilitywill achieve at least an eightypercentreductioningreenhousegasemissionscausedbytheentity's Coloradoretailelectricitysalesrelativeto2005levels;andthecleanenergy planhaspreviouslybeenapprovedbyavoteof theentity'sgoverningbody.

VoluntaryThe submissiondiviin ofconsultation awith cleanthe energypublic utilities commission, publicly verifies that the plan demonstrates that, by a2030, the cooperative electric association or municipal utilityuwillachieve doesat notleast alteran theeighty entity'spercent regulatoryreduction statusin withgreenhouse respectgas toemissions thecaused publicby utilitiesthe commission,entity's includingColorado underretail articleelectricity 9.5sales ofrelative titleto 40.2005 levels;

(VIII.5)and (I)OTWITHSTANDINGthe ANYclean OTHERenergy REQUIREMENTplan OFhas THISpreviously SUBSECTIONbeen (1)(e),approved Aby MUNICIPALLYa OWNEDvote UTILITYo THATf HASthe ENCOUNTEREDCHALLENGESINACHIEVINGTHEGREENHOUSEGASEMISSIONentity's REDUCTIONPERCENTAGESINAPREVIOUSLYFILEDCLEANENERGYPLANMAYgoverning SUBMITTOTHEDIVISIONbody. ,NOLATERTHAN D ECEMBER 31,2026,ANUPDATED CLEAN ENERGY PLAN THAT HAS BEEN APPROVED BY A VOTE OF THE MUNICIPALLY OWNED UTILITY S GOVERNING BODY AND THAT DEMONSTRATESTHAT THE MUNICIPALLY OWNED UTILITY WILLACHIEVE AN EIGHTY PERCENT REDUCTION IN GREENHOUSE GAS EMISSIONS CAUSED BY THEMUNICIPALLYOWNEDUTILITY 'SC OLORADORETAILELECTRICITYSALES , RELATIVE TO 2005 LEVELS,BY THE EARLIEST DATE POSSIBLE ON OR AFTER D ECEMBER 31, 2029,BUT NO LATER THAN D ECEMBER 31, 2032.

(XI.1)Voluntary AMUNICIPALLYOWNEDUTILITYTHATsubmission SUBMITSANUPDATEDof CLEANa ENERGYclean PLANene1gy PURSUANTplan TOby SUBSECTIONa (1)(e)(VIII.5)(OFcooperative THISelecttic SECTIONassociation MUST01 :municipal utility does not alte1 the Iegulatory status with respect to the public utilities commission, including under article 9.5 of title 40.

(A)(V ENSURETHATTHEUPDATEDCLEANENERGYPLANSUBMITTEDTOIIl.5) THEDIVISIONCONTAINSADETAILEDGENERATIONANDTRANSMISSIONPLAN(I) THATNOTWITHSTANDING ISANY NOTOTHER GENERICALLYREQUIREMENT CLASSIFIEDOF AS"TOTHIS BESUBSECTION DETERMINED",BUT(l)(e),A THATMUNICIPALLY INCLUDESOWNED THEUTILITY AMOUNTTHAT ANDHAS TYPESENCOUNTEREDCHALLENGES OFINACHIEVINGTHE RESOURCESGREENHOUSEGAS ANTICIPATEDEMISSION TOREDUCTIONPERCENTAGES BEINA NEEDEDPREVIOUSLYFILEDCLEAN TOENERGYPLAN ACHIEVEMAY SUBMITTOTHEDIVISION,NOLATERTHANDECEMBER31, 2026, AN EIGHTYUPDATED PERCENTCLEAN REDUCTIONENERGY INPLAN GREENHOUSETHAT GASHAS EMISSIONS,THEBEEN ANTICIPATEDAPPROVED DELIVERYBY AREASA WHEREVOTE NEWOF GENERATIONTHE WOULDMUNICIPALLY BEOWNED PROCUREDUTILITY'S ,ANDGOVERNING BODY AND THAT DEMONSTRATES THAT THE ANTICIPATEDMUNICIPALLY LOCATIONOWNED ANDUTILITY CAPACITYWILL OFACHIEVE PAGEAN 2-SENATEEIGHTY BILLPERCENT 26-182REDUCTION ANYIN NEWGREENHOUSE TRANSMISSIONGAS THATEMISSIONS WOULDCAUSED NEEDBY TOTHEMUNICIPALLY BEOWNED BUILTUTILITY'S ORCOLORADO ACQUIREDRETAILELECTRICITYSALES, THROUGHRELATIVE TO 2005 LEVELS, BY THE REGIONALEARLIEST TRANSMISSIONDATE ORGANIZATIONPOSSIBLE OFON WHICHOR THEAFTER MUNICIPALLYDECEMBER OWNED31, UTILITY2029, ISBUT ANO MEMBER;LATER THAN DECEMBER 31, 2032.

(B)(Xl.1) BA EGINNING JANUARY 1, 2028,AND CONTINUING EACH YEAR UNTILD ECEMBER 31,2033, ANNUALLYREPORTTOTHEDIVISIONANDMAKE PUBLICLYAVAILABLEONTHEMUNICIPALLYOWNEDUTILITY 'SWEBSITE:THE MUNICIPALLYOWNEDUTILITY SPROGRESSINPLANNINGFORANDACQUIRING THENECESSARYGENERATIONANDTRANSMISSIONRESOURCESIDENTIFIEDIN ITS UPDATED CLEAN ENERGY PLAN ,THE MUNICIPALLY OWNED UTILITY 'S GREENHOUSEGASEMISSIONREDUCTIONSRELATIVETO 2005LEVELS,ANDAN UPDATED LOADS AND RESOURCES TABLE THAT INCLUDESSUBMITS ANYAN CHANGES TO FORECASTED DEMAND FROM THE FORECAST USED IN THE UPDATED CLEAN ENERGY PLAN ;ANDPURSUANT (C)TO NOSUBSECTION LATER( THAN1)(e)(V DIIl.5)(I) ECEMBEROF 31,2032,THIS ANDSECTION NOTWITHSTANDINGMUST: ANYOTHERRULESOFTHECOMMISSIONSETTINGATIMELINEFORCESSATION OFBURNING COAL ,CEASE BURNINGCOALAT ANYCOAL FIREDGENERATING UNIT OWNED ,OPERATED ,OR BOTH BY THE MUNICIPALLY OWNED UTILITY.

(XI.2)(A (A)) ANENSURETHATTHEUPDATEDCLEAN UPDATEDENERGYPLANSUBMITTEDTO CLEANTHEDIVISION ENERGYCONTAINS A DETAILED GENERATION ANDTRANSMISSION PLAN SUBMITTEDTHAT BYIS ANOT MUNICIPALLYGENERICALLY OWNEDCLASSIFIED UTILITYAS PURSUANT"TO BE DETERMINED", BUT THAT INCLUDES THE AMOUNT AND TYPES OF RESOURCES ANTICIPATED TO SUBSECTIONBE (1)(e)(VIII.5)(I)NEEDED OFTHISSECTIONSHALLBEPUBLICLYVERIFIEDBYTHEDIVISIONCONSISTENTTO WITHACHIEVE AN EIGHTY PERCENT REDUCTION IN GREENHOUSE GAS EMISSIONS, THE REQUIREMENTSANTICIPATED DELIVERY AREAS WHERE NEW GENERATION WOULD BE PROCURED, AND THE ANTICIPATED LOCATION AND CAPACITY OF SUBSECTIONPAGE (1)(e)(VIII)(OFTHIS2-SENATE SECTION.B IL L 26-182 ANY NEW TRANSMISSION THAT WOULD NEED TO BE BUILT OR ACQUIRED THROUGH THE REGIONAL TRANSMISSION ORGANIZATION OF WHICH THE MUNICIPALLY OWNED UTILITY IS A MEMBER;

(B) THEDATESASSOCIATEDWITHTHEREQUIREMENTSSETFORTHINBEGINNING SUBSECTIONSJANUARY (1)(e)(VIII)(C),1, (1)(e)(VIIIAND),(1)(e)(VIII.OF2028, THISAND SECTIONCONTINUING MUSTEACH BEYEAR CONSTRUEDUNTILDECEMBER TO31, ALIGN2033, WITHANNUALLY THEREPORTTOTHE REVISEDDIVISION DATESAND INMAKE SUBSECTIONPUBLICLYAVAILABLEONTHEMUNICIPALLYOWNED (1)(e)(VIII.5)(OFUTILITY'S THISWEBSITE: SECTION FOR ANY UPDATED CLEAN ENERGYPLANSUBMITTEDBYAMUNICIPALLYOWNEDUTILITYPURSUANTTO SUBSECTION (1)(e)(VIII.5)(OF THIS SECTIO.

THE MUNICIPALLYOWNED UTILITY'S PROGRESS IN PLANNING FORANDACQUIRING THENECESSARYGENERATION ANDTRANSMISSION RESOURCES IDENTIFIED IN ITS UPDATED CLEAN ENERGY PLAN, THE MUNICIPALLY OWNED UTILITY'S GREENHOUSEGAS EMISSION REDUCTIONS RELATIVETO2005 LEVELS, ANDAN UPDATED LOADS AND RESOURCES TABLE THAT INCLUDES ANY CHANGES TO FORECASTED DEMAND FROM THE FORECAST USED IN THE UPDATED CLEAN ENERGY PLAN;

AND (C) NO LATER THAN DECEMBER 31, 2032, AND NOTWITHSTANDING ANY OTHERRULES OFTHECOMMISSION SETTINGATIMELINE FORCESSATION OF BURNING COAL, CEASE BURNING COAL AT ANY COAL-FIRED GENERATING UNIT OWNED, OPERATED, OR BOTH BY THE MUNICIPALLY OWNED UTILITY.

(Xl.2) (A) AN UPDATED CLEAN ENERGY PLAN SUBMITTED BY A MUNICIPALLY OWNED UTILITY PURSUANT TO SUBSECTION (l)(e)(VIll.5)(1) OFTHIS SECTION SHALLBE PUBLICLYVERIFIED BYTHEDIVISION CONSISTENT WITH THE REQUIREMENTS OF SUBSECTION (1)(e)(VIII)(F) OF THIS SECTION.

(B) THE DATES ASSOCIATED WITHTHE REQUIREMENTS SETFORTH IN SUBSECTIONS (l)(e)(VIII)(C), (l)(e)(VIII)(F), AND (l)(e)(V Ill.3) OF THIS SECTION MUST BE CONSTRUED TO ALIGN WITH THE REVISED DATES IN SUBSECTION (1)e)(VIll.5)(1) OF THIS SECTION FOR ANY UPDATED CLEAN ENERGYPLANSUBMITTEDBYA MUNICIPALLY OWNED UTILITY PURSUANTTO SUBSECTION (l)(e)(VIll.5)OF THIS SECTION.

In Colorado Revised Statutes, 31-15-707,31-15-7add add (2) as follows:

(2) THE GOVERNINGBODYOFAMUNICIPALLYOWNEDUTILITYTHATGOVERNING SUBMITSANUPDATEDCLEANENERGYPLANPURSUANTTOSECTIONBODY 25-7-105OF PAGEA MUNICIPALLY OWNED UTILITYTHAT SUBMITSANUPDATEDCLEANENERGYPLANPURSUANTTOSECTION25-7-105 PA G E 3-SENATE BILL 26-182 (1)(e)(VIII.5)(SHALL(l)(e)(VIll.5)(SHALL INSTRUCT THE MUNICIPALLY OWNED UTILITY TO SEEK TO:

(a) ACHIEVE A NINETYNINETY-FIVE -FIVE PERCENT REDUCTION IN GREENHOUSE GASEMISSIONSCAUSEDBYTHEMUNICIPALLYOWNEDUTILITYGAS SCEMISSIONS OLORADOCAUSED RETAILBYTHE ELECTRICITY SALES BY D ECEMBER 31, 2039, RELATIVE TO 2005 LEVELS ,WITHOUT IMPAIRING THE MUNICIPALLY OWNED UTILITYUTILITY'S SCOLORADO ABILITYRETAIL TOELECTRICITY MAINTAINSALES THEBY ELECTRICDECEMBER RELIABILITY STANDARDS OF A REGIONAL TRANSMISSIONORGANIZATIONOFWHICHTHEMUNICIPALLYOWNEDUTILITY IS A MEMBER;AND (b) REDUCE ,BETWEENTHEDATEANEIGHTYPERCENTREDUCTIONIN GREENHOUSE GAS EMISSIONS IS ACHIEVED AND D ECEMBER 31, 2035,ANY2039,RELATIVE CUMULATIVE GREENHOUSE GAS EMISSIONS RESULTING FROM THE UPDATED CLEAN ENERGY PLAN RELATIVE TO THE2005 MUNICIPALLYLEVELS, OWNEDWITHOUT UTILITY S ORIGINAL CLEAN ENERGY PLAN ,WITHOUT IMPAIRING THE MUNICIPALLY OWNED UTILITYUTILITY'S S ABILITY TO MAINTAIN THE ELECTRIC RELIABILITY STANDARDS OF A REGIONAL TRANSMISSIONTRANSMISSIONORGANIZATIONOF ORGANIZATIONWHICHTHE OFMUNICIPALLYOWNED WHICH THE MUNICIPALLY OWNED UTILITY IS A MEMBERMEMBER; .

AND (b)REDUCE, BETWEENTHE DATEAN EIGHTY PERCENTREDUCTION IN GREENHOUSE GAS EMISSIONS IS ACHIEVED AND DECEMBER 31, 2035,ANY CUMULATIVE GREENHOUSE GAS EMISSIONS RESULTING FROM THE UPDATED CLEAN ENERGY PLAN RELATIVE TO THE MUNICIPALLY OWNED UTILITY'S ORIGINAL CLEAN ENERGY PLAN, WITHOUT IMPAIRING THE MUNICIPALLY OWNED UTILITY'S ABILITY TO MAINTAIN THE ELECTRIC RELIABILITY STANDARDS OF A REGIONAL TRANSMISSION ORGANIZATION OF WHICH THE MUNICIPALLY OWNED UTILITY IS A MEMBER.

The general assembly finds, determines, and declares that this act is necessary for the immediate preservation ofofthe the public peace, health, or safety or for appropriations for PAGE 4-SENATE BILL 26-182 the support and maintenance of the departments of the state and state institutions.

____________________________ ____________________________ James Rashad Coleman, Sr.

Julie~~e McCluskie PRESIDENT OF SPEAKER OF THE HOUSE THE SENATE OF REPRESENTATIVES ____________________________ther ____________________________ Esther van Mourik VanessaV ~ ~ ssa Reilly SECRETARY OF CHIEF CLERK OF THE HOUSE THE SENATE OF REPRESENTATIVES APPROVED________________________________________APPROVED (DateOh \\'l~Jt{ l'V\12-\<' 202-h 1Lf I:<7oii,,,, (Da e and Time)ime) _________________________________________PAGE Jared5-SENATE S.BILL 26-182

Polis GOVERNOR OF THE STATE OF COLORADO PAGE 5-SENATE BILL 26-182