CO SB161

Public Utilities Commission must adopt rules by July 31, 2022, establishing greenhouse gas emission reduction programs for large natural gas utilities (250,000+ customer accounts) and small utilities (fewer than 250,000 accounts).

Large utilities must achieve emission reductions of at least 5% by January 1, 2025, at least 10% by January 1, 2030, and at least 15% by January 1, 2035, measured against 2019 baseline emissions.

At least 35% of emission reductions must come from renewable natural gas; reductions can also be achieved through emission offsets, methane reduction mechanisms, and other PUC-approved programs.

Large utilities are capped at 2% of total revenue requirement annually for qualified investments; small utilities receive a rate cap limiting costs, and both may trade renewable natural gas environmental attribute credits.

Oil and Gas Conservation Commission gains authority to issue Class VI injection permits for deep sequestration of carbon dioxide; municipally owned utilities may voluntarily participate in the programs.