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Legislative Year: 2023 Change
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Bill Detail: SB23-198

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Title Clean Energy Plans
Status Governor Signed (06/05/2023)
Bill Subjects
  • Energy
House Sponsors M. Weissman (D)
W. Lindstedt (D)
Senate Sponsors F. Winter (D)
L. Cutter (D)
House Committee Energy and Environment
Senate Committee Transportation and Energy
Date Introduced 03/17/2023
Summary

Current law requires that certain entities submit a plan (clean
energy plan) to the division of administration in the department of public
health and environment (division) and the public utilities commission
(PUC) to reduce the entity's greenhouse gas emissions associated with the
entity's electricity sales and to achieve at least an 80% reduction in
greenhouse gas emissions caused by the entity's Colorado retail electricity
sales by 2030 relative to 2005 levels (2030 clean energy target). In
addition to meeting the 2030 clean energy target, the bill requires that any
clean energy plan submitted to the division must also achieve at least a
46% reduction in greenhouse gas emissions caused by the entity's
Colorado electricity sales by 2027 relative to 2005 levels (2027 clean
energy target). If an entity's current clean energy plan does not achieve
the 2027 clean energy target, the entity must, no later than December 31,
2024, submit a revised clean energy plan to the division. The division
shall, in consultation with the PUC, verify that the revised clean energy
plan meets the 2027 clean energy target.
The bill also requires any entity that submits a clean energy plan
to the division on or after July 1, 2023, to base the entity's 2005 baseline
greenhouse gas emissions, estimated 2027 greenhouse gas emissions, and
estimated 2030 greenhouse gas emissions on:
  • The greenhouse gas emissions from each resource that is
used to supply electricity to the entity's retail electricity
customers; and
  • The greenhouse gas emissions from each resource that
generates electricity and that is owned by the entity if the
applicable greenhouse gas emissions are not otherwise
required to be included in another entity's clean energy
plan.
The bill also requires the division to independently confirm or
calculate the data it uses in verifying a clean energy plan submitted to the
division on or after July 1, 2023, and allow the public to access and
provide comments about the data prior to the verification of a clean
energy plan.
No later than June 1, 2028, the division must:
  • Calculate the percentage of reduction in greenhouse gas
emissions for each entity that is required to submit a clean
energy plan and does not have its electric resource planning
process regulated by the PUC; and
  • Determine whether each entity that is required to submit a
clean energy plan and does not have its electric resource
planning process regulated by the PUC has obtained all of
the resources necessary to achieve the 2030 clean energy
target.
If the division determines that an entity has not obtained all of the
resources necessary to achieve the 2030 clean energy target, no later than
December 31, 2028, the entity must submit a report to the division
identifying the resources that it has procured to achieve the 2030 clean
energy target (report).
If the entity does not submit the report on or before December 31,
2028, or if the division determines from the report that an entity has not
obtained all of the resources necessary to achieve the 2030 clean energy
target, the air quality control commission (AQCC) shall adopt rules that
limit the greenhouse gas emissions by the entity to ensure that the entity
achieves the 2030 clean energy target and that direct the division to
amend any of the entity's operating permits for sources of greenhouse gas
emissions to ensure that the entity achieves the 2030 clean energy target.
The bill also requires:
  • If a utility's Colorado electricity sales between January 1,
2022, and December 31, 2022, are equal to or greater than
300,000 megawatt-hours, the utility to submit a clean
energy plan to the division; and
  • The owner of an electric generating unit that has a
nameplate capacity equal to or larger than 50 megawatts to
submit a clean energy plan to the division that covers all
greenhouse gas emissions from the unit that are not
otherwise required to be included in the clean energy plan
of another entity.
Any entity required to submit a clean energy plan to the division
may designate another entity to submit a clean energy plan on its behalf
or submit a joint clean energy plan with another entity.
No later than October 1, 2024, the division shall submit a report to
the general assembly that includes certain data regarding which electric
utilities have submitted clean energy plans to the division and the
electricity generation resources that are responsible for greenhouse gas
emissions in the state.
No later than December 31, 2024, the division shall issue guidance
specifying the manner in which the division will track and account for
greenhouse gas emissions associated with electricity utility transactions
in organized markets.
The bill defines cooperative retail electric utility as a retail
electric utility that has:
  • Indicated an intent to submit or, after January 1, 2021, has
submitted a clean energy plan; and
  • Provided a non-conditional notice that it is withdrawing
from a wholesale generation and transmission cooperative
after January 1, 2021, or enters into a partial requirements
contract with a wholesale generation and transmission
cooperative to obtain more than 5% of its firm capacity
supply from a greenhouse-gas-emitting source other than
the wholesale generation and transmission cooperative
(cooperative retail electric utility).
A cooperative retail electric utility must submit a clean energy plan
to the division no later than 18 months after ceasing to be a member of a
wholesale generation and transmission cooperative or after the date that
a partial requirements contract begins. The division shall verify, in
consultation with the PUC, that any cooperative retail electric utility's
clean energy plan achieves the 2027 clean energy target and the 2030
clean energy target.
The bill also defines wholesale power marketer as an entity
operating in the state that supplies wholesale capacity or energy to a retail
electric utility located in the state (wholesale power marketer).
A wholesale power marketer must submit a clean energy plan with
the division if, on or after July 1, 2023:
  • The wholesale power marketer sells, provides, arranges for,
or contracts for the delivery of capacity or energy to a retail
electric utility in the state; and
  • The greenhouse gas emissions associated with the retail
electric utility's operations are not otherwise required to be
included in another entity's clean energy plan.
The division must verify, in consultation with the PUC, that any
clean energy plan submitted by a wholesale power marketer achieves the
2027 clean energy target and the 2030 clean energy target.
The bill also defines new electric utility as any new electric
utility that is incorporated, created, or otherwise formed on or after July
1, 2023, that:
  • Serves retail customers in the state; and
  • Sells 300,000 megawatt-hours or more of electricity in its
first year of operation (new electric utility).
A new electric utility must submit a clean energy plan to the
division no later than 2 years after being incorporated, created, or
otherwise formed. If a new electric utility does not submit a clean energy
plan to the division within this time, the AQCC shall adopt rules to reduce
the greenhouse gas emissions by the new electric utility to ensure that the
new electric utility achieves the 2027 clean energy target and the 2030
clean energy target.

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