Colorado local governments may organize shared heating and cooling networks

Local governments may arrange shared thermal energy service and hire private entities to build or run networks. This applies to cities, towns, counties, and special districts. Aggregating demand does not make a local government a public utility subject to Public Utilities Commission regulation. A local government may combine demand from its buildings and facilities with demand from other entities that choose to participate. Contracts may last up to 25 years and depend on annual local funding approval. A private operator’s contract requires approval by the local governing body. Service outside the government’s boundaries requires an agreement with the other local government or with the participant. The act is scheduled to take effect August 12, 2026, unless a referendum petition is filed; if filed, the affected provisions take effect only if voters approve them.

Investor-owned electric utilities must seek bids for geothermal power projects and apply for commission review if they receive a bid. These procedures apply to investor-owned electric utilities proposing geothermal projects for electricity generation. Small-scale projects produce up to 25 megawatts; large-scale projects produce more than 25 megawatts. For large-scale projects, utilities must target no more than 300 megawatts in their bid requests and may submit only one application. The commission reviews costs, effects on customers, relevant benefits, and the public interest before deciding whether to approve, change, or deny an application. Approved projects classified as energy-sector public works must meet wage, apprenticeship, and other labor requirements. Utilities must apply within 120 days after a bid request ends if they received a bid. The commission generally has 120 days to decide, or 180 days for good cause. The act is scheduled to take effect August 12, 2026, unless a referendum petition is filed.

The state commission and Geological Survey may collect geothermal data, and the commission must recommend ways to support safe development and report to lawmakers. The data work involves the commission and Colorado Geological Survey. The commission’s recommendations cover geothermal development in Colorado. Data collection depends on available appropriations or gifts, grants, or donations. Outside entities must provide data voluntarily, and collection must respect property rights and protect proprietary data from forced public release. The commission must consult state agencies and knowledgeable stakeholders. Any recommended geothermal development authority must be nonregulatory. The commission must report by November 15, 2026. The recommendation and reporting provisions repeal September 1, 2028; the data collection provision has no end date stated here. The act is scheduled to take effect August 12, 2026, unless a referendum petition is filed.

A public electric utility with a state certificate has the exclusive right to provide electric service to a thermal energy network facility in its service area. This applies to public electric utilities holding a Public Utilities Commission certificate to provide retail electric service in the facility’s territory. The right applies where the facility is located in the utility’s service territory. It does not affect a customer’s right to use retail distributed generation. The act is scheduled to take effect August 12, 2026, unless a referendum petition is filed.