CO HB1264

Directs the Colorado Public Utilities Commission to adopt amended interconnection standards for distributed generation using the Interstate Renewable Energy Council's model standards, with particular focus on limiting customer insurance requirements to property damage to utility infrastructure and exempting systems below specified thresholds (50 kilowatts for non-inverter systems, 1 megawatt for inverter-based systems).

Requires the PUC to establish a default "Level 4" review category for distributed generation systems that do not meet criteria for existing Level 1, 2, or 3 reviews.

Creates a 20-member Task Force on Interconnection Issues for Distributed Generation to meet during 2012 interim and produce an initial report by January 20, 2013, addressing barriers to distributed generation deployment, interconnection study processes, technology standards, penetration limits, and cost allocation for infrastructure upgrades.

Applies new interconnection standards to all Colorado electric utilities that are qualifying retail utilities, subject to federal energy regulatory orders, or both, including municipal utilities and cooperative associations.

Establishes an effective date of January 1, 2013, for interconnection agreements and authorizes the PUC to accept gifts, grants, and donations to fund the task force; the task force and related funding provisions expire July 1, 2017.