CO HB1018

Requires the Public Utilities Commission to adopt rules by July 31, 2021, establishing renewable natural gas programs for large utilities (200,000+ customer accounts) and small utilities (fewer than 200,000 customer accounts) in Colorado.

Sets mandatory portfolio targets for large utilities to purchase renewable natural gas: 5% by January 1, 2025; 10% by January 1, 2030; and 15% by January 1, 2035.

Defines renewable natural gas to include biogas, hydrogen gas from renewable sources, and methane derived from various sources including waste, landfills, manure management systems, and anaerobic digesters.

Allows large utilities to recover all prudently incurred costs through automatic adjustment clauses, with a cap preventing additional investments if annual costs exceed 5% of total revenue requirement without commission approval.

Permits small utilities to opt into the program with a rate cap, expressed as a percentage of revenue requirement, limiting costs for procuring renewable natural gas and infrastructure investments.