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Every year the Colorado General Assembly passes new laws and regulations that can have a dramatic impact on your manufacturing operations. Thats why MAC was formed, a coalition of businesses, labor unions and community organizations found ourselves working together year after year to defeat or amend ill considered legislation that would have had serious consequences for Colorado manufacturers, employees and the communities that depend upon them for jobs and tax base. When you become a mac member, your company will gain access to key policy conversations from their start, access to our attorneys and experts and the ability to have direct conversations with lawmakers.
Policy Spotlight:
Colorado’s Proposed 2040 Carbon Zero Goal.
Background
In 2019, Colorado set a goal of reaching net-zero greenhouse gas emissions across all sectors by 2050. Utilities responded quickly, and the state is already on track to cut utility-sector emissions 80% by 2030.
However, other sectors—especially transportation—are lagging. More than half of Colorado’s emissions come from cars, trucks, and other mobile sources, where progress has been slow.
The New Proposal
State lawmakers are now considering a bill to accelerate the utility-sector timeline:
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95% reduction by 2035 (10 years earlier than current law)
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100% reduction by 2040 (10 years earlier than current law)
Limits and Requirements
Utilities would need to submit plans to the Public Utilities Commission (PUC) showing how they will meet the new targets without:
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Raising retail rates more than 1.5% per year, or
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Violating national reliability standards.
If a utility can’t meet the 2040 goal under those limits, it must explain why, when it can meet the standard, and how it will avoid cost and reliability problems.
PUC Authority
The PUC could approve, or even amend and approve, plans that exceed the rate cap if it finds doing so is “in the public interest” and the customer impact is “reasonable.” The commission could also approve unlimited rate riders to cover implementation costs.
Concerns for Manufacturers and Ratepayers
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Costs: Colorado already has some of the highest utility rates in the region, and more increases are already on the way. This bill would lock in more.
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Reliability: Transmission capacity is a major bottleneck. The West is already struggling to bring new generation online.
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Effectiveness: Even the Colorado Energy Office estimates the difference between a 97% reduction and full 100% elimination of emissions by 2040 would cost an extra $8.5 billion—with no clear evidence of a meaningful global impact.
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Load Growth: Demand for electricity is projected to grow rapidly due to population growth, electrification of transportation, and industrial transitions. Xcel Energy forecasts 5% annual growth in electric load through 2031.
Click here to download our policy presentation on this issue:
What can you do?
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