Colorado

26% by 2025 | 50% by 2030 | 65% by 2035 | 75% by 2040 | 90% by 2045 | net-zero by 2050

Relative to 2005 levels

Colorado Greenhouse Gas Pollution Reduction Roadmap 2.0

The 2005-2020 Greenhouse Gas Inventory was released in November 2024.

Air Pollution Control Division and Air Quality Control Commission

"Disproportionately impacted communities" are census block groups where over 40% of households are low income or non-Hispanic White, 50% of households are housing cost-burdened, 20% are linguistically isolated, and/or those with a history of environmental racism or cumulative environmental health disparities, measured as the 20% highest scoring census tracts in Colorado EnviroScreen or federally-designated disadvantaged communities; the definition also includes all Tribal lands and Mobile Home Communities.

Colorado EnviroScreen 2.0

At least 40% of renewable energy programs, incentives, and direct investments must benefit low-income customers and disproportionately impacted communities.

CDPHE – Environmental Justice Ombudsman

CDPHE – Environmental Justice team

Office of Environmental Justice

Environmental Justice Advisory Board

Environmental Justice Action Task Force

Oil and gas operators are required to perform a cumulative impacts analysis with each new permit application.

The Office of Just Transition created a Just Transition Action Plan in 2020. The plan provides a brief overview of the major challenges faced by fossil fuel communities and workers, followed by specific strategies and action steps to address these challenges.

Colorado Office of Just Transition

Just Transition Advisory Committee

The Just Transition Cash Fund implements components of Colorado's Just Transition Action Plan.

Colorado Clean Energy Fund

Colorado's baseline-and-credit trading system allows industrial sources emitting over 25,000 metric tons of CO2e per year to generate and purchase credits generated when these sources reduce their emissions more than required for 2030. The system also allows gas distribution utilities to purchase recovered methane credits from eligible projects for use towards their clean heat targets.

The industrial market will also expand to allow for midstream oil and gas operators to participate in 2028.

The Colorado Public Utilities Commission must consider the social cost of carbon in utility resource planning.

30% renewable energy by 2020 for investor-owned utilities (IOUs) | 10% or 20% renewable energy by 2020 for munis and coops depending on size | 100% clean energy by 2050 for IOUs serving 500,000 or more customers

46% reduction by 2027 | 80% by 2030 Relative to 2005 levels

Regulated utilities are required to submit a Clean Energy Plan to reduce emissions 80% below 2005 levels by 2030 and supply 100% clean energy by 2050

Polis Administration’s Roadmap to 100% Renewable Energy by 2040 and Bold Climate Action

Colorado received a C grade from Freeing the Grid.

The Colorado Electric Transmission Authority is required to study the need for expanded transmission in the state including by co-locating multiple transmission lines, using advanced transmission technologies (ATTs); and strategically siting new transmission corridors.

The State Policy Opportunity Tracker (SPOT) breaks clean energy policies down into “components”, which are binary questions to evaluate policy quality. Higher quality policies have more of their SPOT components fulfilled.

The State Policy Opportunity Tracker (SPOT) breaks clean energy policies down into “components”, which are binary questions to evaluate policy quality. Higher quality policies have more of their SPOT components fulfilled.

Colorado has an in-progress community choice aggregation program

The State Policy Opportunity Tracker (SPOT) breaks clean energy policies down into “components”, which are binary questions to evaluate policy quality. Higher quality policies have more of their SPOT components fulfilled.

Requires 100% renewable energy by 2040, and does not include energy derived from coal in its definition of renewable electricity.

Securitization is authorized for coal plant retirement

State law requires local jurisdictions to adopt and enforce the 2021 IECC and the Colorado Model Electric Ready and Solar Ready Code upon updating any other building code between July 1, 2023 and June 30, 2026. Cities and counties with building codes must adopt the Model Low Energy and Carbon Codes when they update any other building codes after July 1, 2026.

State law requires local jurisdictions to adopt and enforce the 2021 IECC and the Colorado Model Electric Ready and Solar Ready Code upon updating any other building code between July 1, 2023 and June 30, 2026. Cities and counties with building codes must adopt the Model Low Energy and Carbon Codes when they update any other building codes after July 1, 2026.

Any municipality that adopts or updates building codes is also required to adopt or exceed the 2021 IECC.

Local jurisdictions are also required to adopt the Colorado Model Electric Ready and Solar Ready Code upon updating any other building code.

The Colorado Efficiency Standards for Appliances apply to 22 products.

The Building Performance Colorado program requires buildings greater than 50,000 square feet to reduce emissions 7% by 2026 and 20% by 2030 from a 2021 baseline.

HB 25-1269 requires the Air Quality Control Commission in the Department of Public Health and Environment (CDPHE) to adopt rules to extend the BPS through 2040.

The state requires gas distribution utilities to reduce greenhouse gas (GHG) emissions 4% by 2025 and 22% by 2030, relative to 2015 levels.

Electric utilities are required to reduce retail system peak demand by 5% by 2028 relative to 2018 levels, and achieve annual energy savings of 440 gigawatt hours (GWh) for 2024-2026.

Gas utilities are required to achieve annual energy savings of 814,000 dekatherms (Dth) in 2024, 860,000 Dth in 2025, and 903,000 Dth in 2026.

Colorado has enacted commercial PACE-enabling legislation and has one active program.

The State Policy Opportunity Tracker (SPOT) breaks clean energy policies down into “components”, which are binary questions to evaluate policy quality. Higher quality policies have more of their SPOT components fulfilled.

Thermal energy qualifies as an eligible clean heat resource under the state's clean heat standard, and gas utilities serving more than 500,000 customers were required to propose at least one thermal energy pilot by September 2024.

Local governments in Xcel Energy gas service territory can partner with the utilitiy to explore neighborhood-scale clean heat projects, including thermal energy networks.

A Geothermal Energy Grant Program provides funding support for eligible public and private entities developing geothermal energy projects, including thermal energy networks.

Colorado LEV Program

Model Year (MY) 2027: 43% of new passenger vehicle sales are ZEVs | MY 2030: 68% of new sales are ZEVs | MY 2032: 82% of new sales are ZEVs.

The Vehicle Exchange Colorado (VXC) program provides rebates for income-qualified drivers to recycle and replace their old or high-emitting vehicles with battery electric (BEVs) and plug-in hybrid vehicles (PHEV). Rebate amounts for purhcased or leased qualified vehicles are: $6,000 for new BEVs or PHEVs and $4,000 for used BEVs and PHEVs.

The Low NOx Omnibus Rule applies to Model Year 2027 onwards.

By 2035: 55% of Class 2b-3 truck sales are zero-emissions | 75% of Class 4-8 straight truck sales are zero-emissions | 40% of Class 7-8 tractor sales are zero-emissions.

The Innovative Truck Tax Credit provides up to $12,000 in a refundable income tax credit for new battery and plug-in hybrid EV trucks and hydrogen fuel cell trucks.

Requires that battery electric vehicles (BEVs) and plug-in hybrid EVs (PHEVs) are the default vehicle for all light-duty vehicle purchases by state agencies and departments. BEVs are required if they meet agency needs and EV infrastructure is in place, however PHEVs can be purchased if they better match an agency's operational needs.

The Model Electric Ready and Solar Ready Code includes EV Ready and EV Capable requirements for residential and commercial buildings, and additional EV supply equipment (EVSE) installation requirements for multi-family and commercial buildings. Cities and counties with building codes must adopt the 2021 IECC along with the model electric ready and solar ready code when adopting or updating any building code between July 1, 2023 and June 30, 2026.

The Electric Vehicle (EV) Charging Program provides rebates of varying amounts for residential, public, and workplace Level 2 chargers, and direct current fast charging (DCFC) infrastructure. Incentives increase in underserved communities.

2023 Colorado Electric Vehicle Plan

Policy Directive 14.0 (PD-14) performance targets establish a GHG reduction target of 60% below 2005 levels by 2037 for transportation emissions.

The GHG Pollution Reduction Planning Standard requires CDOT and the state’s five Metropolitan Planning Organizations (MPOs) to determine the total pollution and GHG emission increase or decrease expected from future transportation projects and to take steps to ensure that GHG emission levels do not exceed set reduction amounts. The standards established 2025, 2030, 2040, and 2050 GHG reduction levels for each regional area.

The state vehicle fleet must reduce greenhouse gas emissions by at least 32% by FY 2034, compared to the FY 2019 baseline.

Colorado is ranked 6th out of 50 in the 2024 Bicycle Friendly State rankings by the League of American Bicyclists.

Public construction projects must meet environmental criteria for the use of seven common construction materials, such as cement, glass, and steel.

Colorado also has a sales and use tax exemption for low-emission building materials, including green concrete, recycled steel and composite wood products. Construction materials with low embodied carbon eligible for the state’s Commercial Property Assessed Clean Energy (C-PACE) financing program and Industrial Clean Energy Tax Credit.

The state prohibits certain HFCs in specific stationary refrigeration and air-conditioning end-uses.

The state requires a 20% reduction from 2015 levels by 2030 in industrial and manufacturing emissions, including SF6 emissions.

Methane emissions from oil and gas operations must be reduced 60% below 2005 levels by 2030.

Oil and gas companies must find and fix methane leaks, and, where necessary, install technologies to limit or prevent emissions. These rules also require semiannual leak detection, tank controls, and performance standards for transmission. Frequent leak detection and repair (LDAR) is also required, and routine methane flaring during maintenance is prohibited. Natural-gas powered pneumatic controllers and pumps must be phased out by 2029.

Oil and gas operators must also report their emissions under the Colorado Greenhouse Gas Reporting Rule.

The Colorado Soil Health Program provides financial assistance to help producers improve their soil quality.

The Agricultural Stewardship Practices Tax Credit offers a state income tax credit for active qualified stewardship practices on

a farm or ranch to be claimed for income tax years 2026 through 2030. Qualified stewardship practices are defined by the Colorado Department of Agriculture, and include practices that increase soil health.

The Colorado Soil Health Program provides technical assistance to enable producers to improve their soil quality.