Regulators Uphold Strong Clean Heat Standards Despite Pushback from State and Utilities

DENVER — Today, the Colorado Public Utilities Commission (PUC) issued a final written order on Clean Heat targets, directing Colorado's major investor-owned gas utilities to achieve 41% reductions in emissions by 2035, compared to 2015 levels. The PUC rejected proposals for weaker targets by state agencies and utilities, siding with the arguments of the Sierra Club, Southwest Energy Efficiency Project, and Western Resource Advocates, which were supported by local governments, state legislators, dozens of organizations across Colorado, and more than 600 members of the public. 

"We're excited to see Colorado continue committing to some of the strongest gas utility decarbonization goals in the nation," said Sarah Tresedder, Senior Organizer with the Colorado Sierra Club. "The transition to clean, electrified, efficient buildings will help bring down energy prices for Coloradans and hold utilities accountable to using their resources to improve quality of life and climate solutions."

According to comments from the Colorado officials, this goal will avoid 45.5 million metric tons of greenhouse gas emissions and 22,681 tons of NOx pollution. This will help lead to 58 fewer premature deaths and over $6 billion in climate and health benefits.  

The PUC also made clear that they expect gas utilities to achieve 100% decarbonization by 2050 in another win for environmental advocates, and expressed concern about future utility Clean Heat plans relying on recovered methane, which includes so-called “renewable” gas. 

"While the Commission declined to set interim emissions targets between 2035 and 2050, SWEEP appreciated the Commissioners’ acknowledgement that long-term clarity is essential to avoiding stranded gas investments that raise customer costs," said Ramón Alatorre, Utility Program Senior Manager at SWEEP. “This is further reinforced by the Commission’s affirmation that Colorado’s 2050 statutory goal  corresponds to a 100% greenhouse gas reduction target for gas utility clean heat planning.” 

The Colorado Energy Office and Air Pollution Control Division advocated for a 30% target by 2035 while other proposals asked for a freeze on 2030 targets of 22%. 

The new rules affect investor owned gas utilities, including Xcel Energy, Black Hills Energy and Atmos Energy. Under Colorado's 2021 Clean Heat law, the PUC has already directed Xcel Energy to invest in one of the nation’s largest building decarbonization efforts to date.

Christo Luna, Deputy State Director for Mi Familia Vota, added, "Mi Familia Vota applauds the PUC’s strong Clean Heat targets. Cutting emissions 41% by 2035 is a meaningful win for Latino and working-class families who deserve clean air, lower energy bills, and healthier homes. This decision moves Colorado closer to an equitable transition away from fossil gas, and we’ll continue advocating for climate solutions that protect our communities and our future."

“Strong Clean Heat targets send a clear signal that will push Colorado’s gas utilities to invest in a successful, equitable transition away from polluting fossil gas,” said Ed Carley, Senior Building Decarbonization Policy Advisor at Western Resource Advocates. “Today, the PUC responded to the overwhelming public support for strong targets. We look forward to advancing the decarbonization transition in line with these targets in utilities’ future Clean Heat Plans.”