Committee Advances Bill to Fight Back Against Federal Coal Mandates

DENVER, CO –The Senate Transportation and Energy Committee today passed 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.

HB26-1226, sponsored by Senate Assistant Majority Leader Lisa Cutter, D-Jefferson County, and Senator Mike Weissman, D-Aurora, would help to mitigate the impacts of federal interference in Colorado’s energy future, ensure energy reliability, and implement modern standards for coal plant pollution. 

“Colorado is a leader in climate policy, and we should be able to continue planning our own energy future,” said Cutter. “While the Trump Administration is busy propping up outdated, highly polluting, ready-to-retire coal plants, we’ve made considerable progress in bringing Colorado into a sustainable future with clean air, good jobs, and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 legislation will mitigate harm caused by misguided federal mandates, while protecting ratepayers and maintaining clean air standards.”

“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 Weissman. “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.”

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 would 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 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 and the associated costs 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.

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.

The bill now heads to the Senate floor for further consideration. Track its progress HERE.