Dive Brief:

Democratic Colorado Gov. Jared Polis last week signed seven climate and energy bills along with four electric vehicle (EV) bills, and unveiled a roadmap of the state's path to 100% renewable electricity by 2040.

The newly signed legislation will decarbonize the state's economy 90% below 2005 levels by 2050, codify Xcel Energy's 100% carbon-free electricity by 2050 goal and expand energy efficiency and EV programs in the state.

Polis ran his campaign in part on reaching 100% renewable energy by 2040. His first executive order focused on advancing transportation electrification in the state.

Dive Insight:

Colorado's 2019 legislative session was a victory for clean energy advocates, though there has been some tension between industry groups and environmentalists over how strict the regulatory process should be.

Two of the signed bills focus on addressing climate change through emissions reductions and, similar to the governor's "Roadmap to 100% Renewable Energy by 2040 and Bold Climate Action," outline processes for achieving those reductions through voluntary goals, rather than mandates.

The "mandate"-versus-"goal" debate was a point of tension between the governor and the Democratic Speaker of the House, KC Becker, as they were developing the 90% economy-wide carbon reduction bill, with Polis opposing enforceable mandates. Environmentalists in general tend to prefer mandates over voluntary goals, while businesses often prefer the latter.

"More regulation is important in order to ensure that at least, at a very minimum, a floor is set that's enforceable," Sam Gilchrist, western campaigns director for the Natural Resources Defense Council, told Utility Dive. "And so I'm always worried that if there isn't some sort of regulation put in place, that bad actors are able to sort of find loopholes in what could be otherwise a voluntary process."

But the utility and automobile industry often advocate for more flexibility in policy, which they say gives them the space to exceed what mandates would require.

Last year, the state's Air Quality Control Commission (AQCC) adopted a low emission vehicle standard and earlier this month, they voted unanimously to begin the process of adopting a zero emission vehicle standard. Colorado's auto companies say they'll be able to go beyond what the rule would require if the process is voluntary.

"They're trying to get the governor's office ... and the air quality control commission to not adopt the [zero emissions vehicle (ZEV)] rule and say they'll voluntarily go beyond that," said Gilchrist. "To me, it just doesn't make sense. I mean, if they want to go beyond the ZEV rule, 1) they would already be doing it, and 2) they wouldn't be worried about the ZEV rule being adopted because they would be going beyond that anyway."

Polis' "Roadmap to 100% Renewable Energy by 2040 and Bold Climate Action" is focused on "modernizing" the PUC to consider climate impacts in its decision making, promote energy efficiency and incentivize EV buildout, among other things.

"The roadmap is not just about a vision, but includes concrete steps that will help us reap the economic benefits of renewable energy, curb pollution of our air, and fight climate change," Polis said in a statement. "Colorado has always been a leader in clean-tech innovation and we have no intentions of slowing down."

Last week, Glenwood Springs, Colorado became the seventh city in the U.S. to be powered by 100% renewable energy and Xcel, the state's largest utility, has one of the most aggressive utility clean energy goals in the country

"This has been a really great legislative session for climate and clean energy in Colorado," Gilchrist said. "So Colorado is really on a good path forward."

Clean energy bills signed by Polis Bill Summary S.B. 19-236 Sunset PUC Codifies Xcel's 100% carbon-free by 2050 goal

Subjects Tri-State Generation and Transmission to PUC rulemaking, specifically establishing commission oversight of the G&T's integrated resource plan, which has faced scrutiny as members exit the supplier seeking cleaner, cheaper power

Directs the PUC to study the value of adding distributed resources, such as rooftop solar, energy efficiency and battery storage, to the grid

Establishes securitization measures on stranded coal assets to shift risk away from ratepayers

Requires investor-owned utilities that are retiring a generation unit to include a workforce transition in its closure plan H.B. 19-1261 Climate Action Plan to Reduce Pollution Establishes a goal of reducing economy-wide carbon emissions 90% below 2005 levels by 2040

Sets benchmark targets of 26% reduction by 2025 and 50% by 2030

Directs the AQCC to develop policy and incentives to reach those targets, but leaves retail electricity rulemaking to the PUC H.B. 19-1003 Community Solar Gardens Modernization Act Increases the state's community solar cap from 2 MW to 5 MW

Eliminates requirement that customers can only subscribe to a community solar garden if they are in the same or an adjacent county S.B. 19-096 Collect Long-term Climate Change Data Requires AQCC to collect carbon emissions data from all carbon-emitting sources and propose a rule to address those emissions by July 1, 2020

Allocates $1,680,600 to implement the bill S.B. 19-077 Electric Motor Vehicles Public Utility Services Allows public utilities to recover costs for EV charging stations

Requires the utility to apply to the PUC to build those facilities H.B. 19-1298 Electric Vehicle Charging Station Parking Allows charging station owners to establish EV-only parking spaces with a $150 violation fine H.B. 19-1159 Modify Innovative Motor Vehicle Income Tax Credits Extends timeline on EV tax credit availability until 2025 S.B. 19-239 Addressing Impacts of Transportation Changes Requires the Department of Transportation to consult with stakeholders to minimize economic impacts of the EV transition H.B. 19-1260 Building Energy Codes Requires cities to adopt one of the three most recent versions of the international energy conservation code H.B. 19-1231 New Appliance Energy And Water Efficiency Standards Updates and adopts standards for certain appliances and products H.B. 1272 Housing Authority Property In Colorado New Energy Improvement District Clarifies exemptions in the state's new energy improvement district program