Governor Polis Signs New Laws to Boost Colorado’s Leadership on Climate and Clean Energy

Signed bills reduce red tape, advance a resilient and affordable energy system, and protect Colorado's air quality, waters, and lands

Denver - Governor Polis signed a series of bills into law that continue the state's comprehensive leadership in addressing climate change. These new laws offer Coloradans more cost-saving opportunities, while also furthering the state's ambitious goals to cut greenhouse gas emissions and protect our natural resources and landscapes.

"When I ran for Governor, I was elected on a platform to advance bold action to combat climate change and strive for 100% clean energy for Colorado. In my final legislative session, we improved Colorado's air quality, reduced pollution, protected Colorado's future and saved people money with low-cost clean energy options. I appreciate all the legislators who worked on these new laws, and especially Colorado's state agencies who will be implementing them on behalf of all Coloradans," said Governor Jared Polis.

The Colorado Energy Office (CEO), the Colorado Department of Public Health and Environment (CDPHE), the Colorado Department of Transportation (CDOT), the Colorado Department of Agriculture (CDA), the Department of Natural Resources (DNR) and the Public Utilities Commission (PUC) will be responsible for implementing many of these new laws.

These new laws cover a wide range of sectors and issues. These include transportation, strategic growth, building energy performance, electric grid reliability, electric vehicle and clean energy accessibility, carbon management, natural land resiliency, agriculture, water security, and a just transition from coal power.

"Despite on-going federal headwinds, this legislative session proves that Colorado remains determined to meet our ambitious climate goals in ways that both increase flexibility and keep costs down for consumers," said Colorado Energy Office Executive Director Will Toor. "Governor Polis signed numerous bills into law that create a variety of pathways for all Coloradans to embrace the transition to a low-carbon economy. These measures will help Coloradans cut their electric bills, reduce greenhouse gas emissions, and ensure that the special way of life we have in Colorado continues for generations to come."

Many of these bills continue to build on the vision laid out in the state's second version of its Greenhouse Gas (GHG) Pollution Reduction Roadmap, which was released in 2024. For example, HB26-1001 continues the state's agenda to support strategic growth to lower emissions from transportation and housing by allowing non-profits, transportation districts, schools, housing authorities and others to build housing on underutilized and unused land to help address the state's housing crisis. It also increases housing opportunities in existing communities close to jobs and transit.

HB26-1289 adjusts Colorado's tax code by repealing several outdated corporate deductions to fund more targeted tax credits. This bill doubles the state tax credit for electric vehicles, extends tax credits for geothermal energy, and creates a new tax credit for the use of sustainable aviation fuel. And HB26-1007 ensures consumers can use plug-in solar technology (such as balcony solar panels) and meter collars to provide affordable residential energy options while establishing critical safety guardrails. The bill removes barriers to clean energy by allowing for simple self-installation of panels and reducing the need for expensive electrical panel upgrades.

"Since first taking office in 2019, Gov. Jared Polis has tirelessly championed making transportation in Colorado safer, greener and more affordable," said CDOT Executive Director Shoshana Lew. "The 2026 legislative session marks eight years of record-setting support for transportation in Colorado, beginning with Senate Bill 21-260 - which has since delivered results ranging from the expansion of Floyd Hill to the largest investment in rural roads in modern Colorado history, to significant investments in electric vehicle infrastructure that have made it possible for Colorado to become one of the top two states in the country for new electric vehicle sales. Coloradans will see the benefits of an enhanced transportation system for decades to come."

Making sure the state is climate resilient and safeguarding Coloradans' health were also a focus in this legislative work.

"Protecting Colorado's health means protecting the communities we call home. These new laws recognize that climate action is public health action - and that a healthier environment supports healthier people. These bills will help reduce pollution, improve resilience, and protect the natural resources Coloradans depend on," said Jill Hunsaker Ryan, executive director, Colorado Department of Public Health and Environment.

Leaning into cutting-edge technologies like geothermal energy continues to be an important part of the state's efforts to diversify energy resources and reduce pollution. To support that effort, the governor signed SB26-142, which streamlines how cities can build thermal energy systems and permits companies to sell their extra thermal energy directly to neighbors. It also encourages the growth of geothermal energy by requiring the state's largest utility to conduct a dedicated geothermal procurement targeting 300 MW of geothermal electricity production.

"This legislative session we continued efforts at the The Department of Natural Resources to work with key legislators and stakeholders to advance our state's clean energy goals by laying groundwork for Colorado's geothermal energy development, expand community-scale geothermal capacity and encourage the growth of renewable energy projects on previously developed lands, all with the continual eye of protecting our environment, wildlife and communities," said Dan Gibbs, Executive Director, Colorado Department of Natural Resources.

In addition, these new laws include key provisions that support the state's agricultural work, which is essential for Coloradans in both urban and rural areas.

"This legislative session, Colorado has continued to expand conservation incentives and provide innovative tools for protecting our forests, water, and working lands," said Colorado Commissioner of Agriculture Kate Greenberg. "By extending conservation easement tax credits and prioritizing proactive livestock health, we are providing our producers with the resources they need to thrive in a changing climate. These successes ensure our farmers and ranchers can remain the premier stewards of Colorado's natural resources."

The following is a summary of newly signed climate and clean energy legislation in Colorado.

Strategic Growth and Transportation

HB26-1001 Housing Developments on Qualifying Properties ("HOME" Act) - Continues the state's agenda to support strategic growth to lower emissions from transportation and housing. This bill makes it easier for non-profits, transportation districts, schools, housing authorities and others to build housing on underutilized and unused land to help address the state's housing crisis, as well as increase housing opportunities in existing communities close to jobs and transit.

HB26-1065 Transit and Housing Investment Zones - Provides local governments with a financing tool to support improvements to transit infrastructure. Utilizing tax increment financing, the bill enables leveraging future increases in state sales tax revenue around transit stations throughout the state, including mobility hubs, RTD rail stations and planned Front Range Passenger Rail and Mountain Rail stations, to fund transportation infrastructure making it easier for people to access and use transit. It also includes $50 million in affordable housing tax credits near transit.

SB26-150 Modernizing Regional Transportation District - Modernizes the Regional Transportation District (RTD) by restructuring its governance and implementing recommendations from the 2025 RTD Accountability Committee. To improve effectiveness and increase expertise on the board, it reduces the size of the RTD board from 15 to 9 members and changes its makeup so that five members are elected by the public and the other four are at-large appointments by the governor. It also requires a professional study to find better ways to provide transportation for people with disabilities and also increases the pay for board members, and requires reporting on implementation of recommendations from the RTD Accountability Committee.

Environment, climate, and air quality (broadly)

HB26-1289 Modification of Certain Tax Expenditures - Adjusts Colorado's tax code by repealing several outdated corporate deductions to fund more targeted relief for residents. The bill increases financial support for middle-class and senior citizens through expanded tax credits for electric vehicles, wildfire mitigation, and a new refundable credit for seniors who previously received property tax grants. The bill maintains predictability and effectiveness of the Heat Pump, E-bike, and EV Credits by removing triggers that would cut the credits in half in future low budget years. The bill also expands availability of tax credits for geothermal energy through 2032, and converts the existing sustainable aviation fuel credit from a construction-based credit to a per-gallon purchase credit to encourage near-term SAF use in Colorado.

HB26-1051 Continue Microgrid Community Resilience Grant Program - Indefinitely extends the Microgrids for Community Resilience Grant Program by removing its original repeal date of September 1, 2026. This program provides funding to cooperative electric associations and municipally owned utilities to develop microgrid projects, which help keep rural communities and critical public safety services powered during severe weather and natural disasters. The bill ensures continued administrative support and technical assistance for local energy projects aimed at improving grid autonomy and safety across the state.

HB26-1226 Manage Emissions from Electric Generating Units - Aims to protect Colorado's clean energy goals by requiring coal-fired power plants that are forced to stay open by federal mandates to meet protective new pollution standards. The bill responds to federal orders that might keep aging power plants running past their planned retirement dates, ensuring these facilities use modern controls to limit harmful emissions like nitrogen oxides and sulfur dioxide. In addition, it increases transparency by requiring utility companies to file a report with the public utilities commission to show the public how much it costs to keep these old power plants running if forced to from federal overreach.

SB26-003 End-of-Life Management of Electric Vehicle - Addresses collection, transport, and recycling of batteries that are used to supply power into electric and hybrid vehicles. It mandates that organizations must submit a plan every five years detailing their methods for collecting and processing these batteries. It prohibits the disposal of batteries into landfills starting in 2028 and instructs to have labeling requirements and digital tracking to improve safety and material recovery.

SB26-016 Prohibit Discharge Preproduction Plastic Materials - Prohibits the discharge of plastic pellets or any preproduction plastic materials into land application, state waters, wastewater, and stormwater runoff facilities. This restriction also applies to facilities involved in the packaging and transport of these preproduction plastic materials or plastic pellets. This measure is intended to reduce plastic pollution, minimize harm to aquatic life, and lessen the impact on disproportionately affected communities situated near transportation corridors.

SB26-021 Clean Fleet Enterprise Replace Aging Diesel Trucks - Gets older, high-polluting diesel trucks off Colorado roads by helping owners upgrade to cleaner vehicles. The bill removes old expiration dates for funding, allowing the state to continue offering financial help for electric trucks and those powered by cleaner fuels. Additionally, it establishes a program to help trucking companies/fleet operators replace aging models with newer models that reduce harmful pollutants across the state.

SB26-101 Local Government Landfill Methane Emission Reduction Regulations - Facilitates local government compliance with Regulation Number 31, which concerns the control of methane emissions from municipal solid waste landfills. The legislation reaffirms that the Community Impact Cash Fund and the Local Government Mineral Impact Fund may be used to provide financial assistance for Regulation 31 methane reduction projects. The projects advance air quality and greenhouse gas emission reductions goals. It also requires that applicants from municipal solid waste landfills owned or operated by local governments be prioritized over private entities with regard to funding requests to support Regulation 31 compliance, in recognition of local governments' limited access to private capital. The bill also refines the definition of "disproportionately impacted community" to align with current practice by using the five-year data from the United States Census Bureau American Community Survey within three years of the publication.

SB26-182 Updated Clean Energy Plan Municipally Owned Utility - Allows municipal utilities to file an amended clean energy plan that achieves an 80% greenhouse gas pollution reduction below 2005 levels by December 31, 2032. Municipally owned utilities must provide an annual clean energy plan between 2028 and 2033, stop using coal by 2032, and plan for 95% emissions reductions by 2040.

Carbon management and geothermal energy

SB26-142 Development of Thermal Energy Resources - Cuts red tape by allowing cities to build thermal systems without a public vote and to enter into long term contracts to acquire thermal energy. It also encourages the growth of geothermal energy by increasing the allowed size of community energy gardens. The law creates a dedicated geothermal energy procurement by large utilities targeting deployment of the first 300 Megawatts of geothermal electricity production in the state. The bill also enables the collection of voluntary data from orphaned and marginal oil and gas wells, and requires a formal report to the legislature on the status and potential of geothermal energy development in the state.

Renewable energy and utilities

HB26-1007 Improve Customer Use Distributed Energy Resources - Ensures consumers can use plug-in solar technology and meter collars to provide affordable residential energy options while establishing safety guardrails. The bill removes barriers to clean energy by allowing for simple self-installation of panels and reducing the need for expensive electrical panel upgrades. By setting product safety standards and preventing burdensome utility limits, this policy aims to make renewable energy more equitable and accessible for both homeowners and renters.

HB26-1081 Optimize Colorado Electric Transmission System - Requires electric companies in Colorado to modernize the state's power grid by using advanced transmission technologies. These upgrades are designed to squeeze more power through existing lines, reduce energy waste, and make the grid more reliable during extreme weather or high demand. By focusing on these high-tech solutions, the bill aims to connect new renewable energy sources to the grid faster and lower the overall cost of building new power lines for taxpayers.

HB26-1225 Distributed Energy Resources Requirements - Updates how Colorado handles local renewable energy, through Community Solar Gardens (CSG), to make it more efficient and affordable. Starting in late 2026, solar companies can offer "fixed" bill credits to low-income customers to ensure their savings stay steady even as electricity rates change. To help new energy projects get started, the law prevents utility companies from charging for equipment upgrades until just before the work actually begins. In addition, large utility companies must form a special working group to find ways to speed up the process of connecting new energy sources to the power grid. Finally, the bill allows outside contractors to perform some of this technical work, provided they follow strict safety and labor rules.

HB26-1268 Renewable Energy Development on Disturbed Lands - Encourages the building of solar and wind energy projects on "disturbed lands", such as old mining sites, closed landfills, or abandoned industrial areas. It allows local governments to designate these spots as special reinvestment areas, which helps speed up the permit process and uses tax-increment revenue to pay for needed infrastructure. Overall, this bill aims to help local governments take advantage of unused land sites to develop renewable energy resources.

HB26-1326 Sunset Public Utilities Commission - Extends the operations of the Colorado Public Utilities Commission (PUC) through 2037. The bill modernizes how the state oversees essential services like electricity, gas, and telecommunications, while also introducing new safety requirements for rideshare companies like Uber and Lyft. In addition, it streamlines the transition to clean energy by aligning renewable standards with state climate goals. The bill also allows the PUC to direct certain customer facing utility programs to be administered by third parties.

Consumer accessibility (electricity)

SB26-002 Energy Affordability - Focuses on lowering electricity costs for low-income households by changing how they are billed for their basic energy needs. It requires the state's major investor-owned utilities to establish a Percentage of Income Payment (PIPP) program to assist income qualified residents that provides a baseline amount of electricity at a significant discount. The PIPP program will also establish arrearage credits for participants and will eliminate pre-existing debt prior to enrolling in the program.

Just transition from coal power

SB26-052 Concerning Coal Transition Communities - Strengthens economic support for regions impacted by the closure of coal mines and power plants through two primary mechanisms. First, it establishes a hiring preference for qualified coal transition workers for local advanced manufacturing, energy generation, railroads, or utilities businesses. Second, the law allows local communities to invest any coal transition settlement or transition payments into interest bearing accounts, and to reinvest the interest in local economic development to to offset the long-term community impacts of industry shifts.

Natural lands

HB26-1184 Sunset Forest Health Process - Following the recommendation of the Department of Regulatory Agencies 2025 sunset report, this bill continues the Colorado Forest Health Council for seven years (until September 1, 2033). In 2025, the council created a 30-year Vision for Forest Health, outlining a statewide approach for ensuring climate reliance for our forests, watersheds and communities. As a result of this bill, it will continue to implement climate-healthy actions during its extended tenure.

HB26-1205 Colorado State Forest Service Good Neighbor Authority - Expands the Colorado State Forest Service's ability to enter into Good Neighbor Authority agreements with the U.S. Department of the Interior, the U.S. Department of Agriculture, or relevant agencies in either of those departments. The Good Neighbor Authority allows these federal agencies to enter into agreements with state forestry agencies to do critical management work on federal lands. The bill also clarifies that the Colorado State Forest Service is required to conduct, or contract with one or more entities to perform, demonstration projects that utilize Colorado's Good Neighbor Authority to implement forest management projects that improve forest health, resilience, wildlife habitat, or outdoor recreation opportunities.

Agriculture

HB26-1067 Diseased Livestock Indemnity Fund - Helps enhance agricultural resilience and address the zoonotic risks (the risk of infectious illness spread naturally between animals and humans) amplified by a warming planet. As temperatures rise and weather patterns shift, the spread of diseases in animal populations is expected to accelerate. Climate-driven disease outbreaks can lead to sudden food shortages and price spikes, which often force a shift toward more intensive, higher-emission industrial farming to fill the gap. The bill allows for the use of the Livestock Disease Indemnity Fund (CRS 35-50-114 (3)) for preparedness and response activities associated with infectious and contagious diseases of animals or contaminants impacting livestock; including investigations, disease outbreaks, and to support response activities. The "One Health" concept recognizes that human, animal, and environmental health are linked.

HB26-1230 Extend Conservation Easement Tax Credit - Extends the state's conservation easement tax credit program for an additional five years, moving the final eligible income tax year from 2031 to 2036. The legislation ensures continued financial incentives for the voluntary protection of Colorado's natural resources and agricultural lands for another decade. Forests, wetlands, and grasslands preserved by these easements act as natural "carbon sinks," continuously pulling CO2 out of the air and storing it in plants and soil. As Colorado faces more frequent droughts and wildfires due to climate change, this bill serves as a tool for climate adaptation, by helping provide water security, wildfire mitigation, habitat connectivity, and supporting working lands.

HB26-1340 Revegetate or Dry Farm Formerly Irrigated Agricultural Land - Requires water right owners in the Arkansas River Basin who change the use of their water right from agricultural irrigation purposes to engage in revegetation or dryland farming plan on the original land. It mandates the appointment of a neutral third-party expert to conduct annual field reviews and verify that soil erosion and noxious weeds are being managed according to site-specific scientific standards. This will ensure the land and its natural resources continue to be conserved and can sequester carbon and reduce air and water pollution potential.

HB26-1410 2026-27 Long Appropriations Bill - Helps address the climate-driven resurgence of Mountain Pine Beetle (MPB) on the Wildland Urban Interface by establishing a new biocontrol program at the Palisade Insectary. This initiative leverages existing infrastructure to develop and deploy sustainable natural enemies to the MPB. The program intends to add a necessary long-term management tool in the Integrated Pest Management (IPM) toolbox to suppress beetle populations across the state.

SB26-064 Modify Colorado Agricultural Future Loan Program - Updates the Colorado Agriculture Future Loan Program statute to authorize CDA to provide short-term loans through our partner financial institution to state-certified conservation easement holders and water conservation and conservancy districts for the conservation of farmland and associated water. The bill strengthens the financial infrastructure for land conservation, supports climate-smart water management, and provides economic stability for the next generation of climate-resilient farmers.

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