On June 9, The Colorado Energy Office announced that Governor Jared Polis signed a series of bills passed by the state legislature designed to equitably reduce carbon emissions through policy changes and a significant allotment of funding.
These new laws — ranging from establishing new energy efficiency standards in home appliances, granting tax credits for clean energy projects and funding water infrastructure projects — aim to ensure that Colorado continues making progress towards the goals set out in the 2021 Greenhouse Gas (GHG) Pollution Reduction Roadmap, and in an equitable and efficient manner. The final goal of the roadmap is a 100% reduction of greenhouse gas emissions by 2050.
In the 2019 legislative session, Colorado passed House Bill 19-1261, The Climate Action Plan to Reduce Pollution, which set the targets of reducing statewide GHG pollution 26% by 2025, 50% by 2030, and 90% by 2050 from 2005 GHG levels. Since 2021, the state has maintained its first two milestone goals, but changed the final goal to a 100% reduction, meaning net-zero emissions statewide. The GHG Pollution Reduction Roadmap stated that while technologies are currently available which enable the 2025 and 2030 milestones, it will take significant policy change to achieve them.
One of the broadest bills signed is House Bill 23-1210, Carbon Management, which ensures that any projects related to the removal, storage, capture and utilization of carbon are eligible for money from the Industrial Manufacturing Operations Clean Air Grant Program. This program, established in 2022, sets aside $25 million in funding for private entities, local and tribal governments and public-private partnerships. The Carbon Management bill also provides for the creation of a Carbon Management Roadmap, slated for release in September of 2024.
According to findings listed in the GHG Pollution Reduction Roadmap, the largest sources of GHG pollution in Colorado are transportation, electricity generation, oil and gas production and fuel use in residential, commercial and industrial spaces. Therefore, the state’s first targets are increased renewable energy infrastructure and the electrification of vehicles. Over $120 million in tax credits will be invested annually in geothermal energy, hydrogen infrastructure, electrification of both public and private transportation, industrial decarbonization, sustainable aviation fuels,and more.
The state is also looking to decarbonize the grid by investing in the burgeoning field of hydrogen energy. House Bill 23-1281 establishes a regulatory framework to support the development of a state hydrogen economy. Hydrogen gas can be produced from a wide variety of other fuels (including renewable energy sources) and can be stored as a reserve and transported via pipelines, like natural gas. In fact, hydrogen gas infrastructure can be built upon existing natural gas pipelines, and while only about 11,000 hydrogen-powered vehicles are currently in use across the entire globe, many large automotive manufacturers including Toyota, BMW and Tesla are developing commercial hydrogen vehicles.
However, the technology is still not readily available for the average consumer and hydrogen infrastructure is, as of yet, unavailable in Colorado. So, the state has also directed its legislation to pave the way for electric vehicles (EVs).
House Bill 23-1233 changes EV charging and parking requirements in many ways; including forbidding private prohibitions on EV charging/parking and forbidding local governments from prohibiting the installation of EV chargers. According to the GHG Pollution Reduction Plan, “By 2050, very high levels of electrification of vehicles will be needed, with nearly 100% of all cars on the road being electric and a 100% market share for zero emissions trucks among new sales.”
Four bills were passed regarding forestry and wildfire resiliency. Among them, comes the creation of a Wildfire Resiliency Code Board within the Department of Public Safety, as well as the creation of programs in community and technical colleges focused on sustaining the forestry and wildfire mitigation workforce.
A significant amount of funding was also directed to water infrastructure. Eighty-two million dollars was directed to critical water projects which range from clean drinking water to watershed restoration.
“These laws will help to promote Colorado’s environmental resilience, protect our Colorado way of life and create a healthier future for everyone,” said Colorado Department of Public Health and Environment Director Jill Hunsaker Ryan. “We will continue to build on this progress and further advance smart climate solutions that will help us secure a sustainable future for our communities”