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ColoradoHB26-12252026 Regular SessionHouseWALLET

Distributed Energy Resources Requirements

Sponsored By: Jenny Willford (Democratic), Lesley Smith (Democratic), Matt Ball (Democratic), Scott Bright (Republican)

Signed by Governor

Energy

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 1 benefits, 1 costs, 4 mixed.

Separate storage counts for local power projects

Beginning August 12, 2026, local generation paired with storage counts as dispatchable distributed generation. Storage can be at the same site or in a standalone system. The definition measures capacity using the storage system's alternating-current capacity, not the generator's capacity.

Utility customers can bear contractor repair costs

Beginning August 12, 2026, Colorado utilities serving more than 500,000 customers can pass eligible contractor repair costs to customers. These costs come from fixing third-party work performed for customers connecting power projects to the grid. The law treats utility spending on these repairs as reasonable business costs. Utilities can recover the money during the useful life of the facilities or equipment. The law does not specify the amount customers pay.

Rate-linked solar credits for low-income subscribers

Beginning October 1, 2026, community solar organizations can choose separate bill credits for income-qualified subscribers. These subscribers get a fixed credit that the utility adjusts each year as electricity rates change. Other subscribers get credits that change annually. Organizations choose the starting credit from the previous three years; the commission sets its initial period and later adjustment method. The rate-linked credit gives more predictable savings, but it can rise or fall.

Faster grid connections with contractor safeguards

Beginning August 12, 2026, customers of Colorado utilities serving more than 500,000 customers can choose approved contractors for grid-connection studies or upgrades. Customers must follow utility processes; contractors must meet safety, reliability, labor, and technical standards. Contractors must submit designs and completed-work drawings within three business days of completion. Utilities inspect the work at contractors' expense, and contractors must pay to fix safety or reliability concerns. Utilities are not liable for specified contractor-caused harm, and related reliability impacts are excluded from utility performance measures. By August 15, 2026, these utilities must convene working groups with regulators, consumer advocates, trade groups, and developers. The groups must address faster joint project studies, surety bonds, and third-party work, with recommendations due December 15, 2026. Utilities must implement unanimous recommendations by January 1, 2027, and other recommendations by January 31, 2027.

Larger off-site projects, broader electrician requirements

Beginning August 12, 2026, qualifying utilities' net-metering rules allow grouping and connecting retail distributed generation. The law removes the 500-kilowatt cap for off-site single-meter projects and the 300-kilowatt-per-meter cap for off-site multi-meter projects. This covers eligible off-site renewable generation or storage facilities seeking credits for power supplied to the grid. All covered off-site facilities—not just those over 300 kilowatts—must use licensed electricians or properly supervised apprentices for installation, repairs, and maintenance. Eligible licenses include master electrician, journeyman electrician, and residential wireman. The commission must review off-site facility and installation size limits in a future renewable energy standard compliance plan.

Later grid payments, but upfront security

Beginning August 12, 2026, utilities cannot require eligible grid-connection payments until 30 days before they incur the costs. This covers reasonable and necessary connection facilities and upgrades. Utilities can still recover costs that were reasonably incurred. At agreement signing, utilities can require financial security covering the full estimated connection cost. They must offer security options, including a letter of credit from a qualified provider.

Sponsors & Cosponsors

Sponsors

  • Jenny Willford

    Democratic • House

  • Lesley Smith

    Democratic • House

  • Matt Ball

    Democratic • Senate

  • Scott Bright

    Republican • Senate

Cosponsors

  • Amy Paschal

    Democratic • House

  • Emily Sirota

    Democratic • House

  • Jennifer Bacon

    Democratic • House

  • Jamie Jackson

    Democratic • House

  • Junie Joseph

    Democratic • House

  • Julie McCluskie

    Democratic • House

  • Kyle Brown

    Democratic • House

  • Karen McCormick

    Democratic • House

  • Kenny Nguyen

    Democratic • House

  • Lori Goldstein

    Democratic • House

  • Monica Duran

    Democratic • House

  • Meg Froelich

    Democratic • House

  • Mandy Lindsay

    Democratic • House

  • Naquetta Ricks

    Democratic • House

  • Regina English

    Democratic • House

  • Sean Camacho

    Democratic • House

  • Cathy Kipp

    Democratic • Senate

  • Jeff Bridges

    Democratic • Senate

  • James Coleman

    Democratic • Senate

  • Janice Marchman

    Democratic • Senate

  • Lisa Cutter

    Democratic • Senate

  • William Lindstedt

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 215 • No: 96

House vote • 5/12/2026

Senate amendments: Repass

Yes: 45 • No: 18

House vote • 5/12/2026

Senate amendments: Concur

Yes: 49 • No: 13

Senate vote • 5/8/2026

Third reading: Bill

Yes: 34 • No: 0

Senate vote • 5/4/2026

Refer House Bill 26-1225, as amended, to the Committee of the Whole.

Yes: 6 • No: 2

House vote • 4/27/2026

Third reading: Bill

Yes: 46 • No: 17

House vote • 4/24/2026

Committee of the whole: Amd (h.001)

Yes: 18 • No: 39

House vote • 4/6/2026

Refer House Bill 26-1225 to the Committee of the Whole.

Yes: 8 • No: 3

House vote • 3/25/2026

Refer House Bill 26-1225, as amended, to the Committee on Finance.

Yes: 9 • No: 4

Actions Timeline

  1. Governor Signed

    6/1/2026House

  2. Signed by the Speaker of the House

    5/29/2026House

  3. Signed by the President of the Senate

    5/29/2026Senate

  4. Sent to the Governor

    5/29/2026House

  5. House Considered Senate Amendments - Result was to Concur - Repass

    5/12/2026House

  6. House Considered Senate Amendments - Result was to Laid Over Daily

    5/9/2026House

  7. Senate Third Reading Passed - No Amendments

    5/8/2026Senate

  8. Senate Second Reading Passed with Amendments - Committee

    5/7/2026Senate

  9. Senate Second Reading Special Order - Laid Over Daily - No Amendments

    5/6/2026Senate

  10. Senate Committee on Transportation & Energy Refer Amended to Senate Committee of the Whole

    5/4/2026Senate

  11. Introduced In Senate - Assigned to Transportation & Energy

    4/30/2026Senate

  12. House Third Reading Passed - No Amendments

    4/27/2026House

  13. House Second Reading Special Order - Passed with Amendments - Committee, Floor

    4/24/2026House

  14. House Second Reading Laid Over Daily - No Amendments

    4/9/2026House

  15. House Committee on Finance Refer Unamended to House Committee of the Whole

    4/6/2026House

  16. House Committee on Energy & Environment Refer Amended to Finance

    3/25/2026House

  17. Introduced In House - Assigned to Energy & Environment

    2/18/2026House

Bill Text

  • Engrossed

    PDF

  • Final Act

    PDF

  • House Energy & Environment Preamend

    PDF

  • Introduced

    PDF

  • Reengrossed

    PDF

  • Rerevised

    PDF

  • Revised

    PDF

  • Senate Transportation & Energy Preamend

    PDF

  • Signed Act

    PDF

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