FOR IMMEDIATE RELEASE
May 13, 2026

Contact:
Josh Valentine
Communications Director, Southwest Energy Efficiency Project
jvalentine@swenergy.org

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[DENVER, CO] – Colorado’s 2026 General Assembly concluded on Wednesday, May 13. The Southwest Energy Efficiency Project (SWEEP), a nonprofit organization working to save people money and reduce pollution, summarized and evaluated the legislature’s work on energy efficiency with the following statement:

Statement of Elise Jones, Executive Director, Southwest Energy Efficiency Project (SWEEP): “It was a really tough budget year, but legislators worked hard to shore up state finances while helping Coloradans to save money, live a higher quality of life, and benefit from efficient use of clean energy. While many good ideas did not make it to the finish line, some very important ones did.”

While closing a $1.5 billion hole in the state budget, the legislature adopted policies to make housing more affordable, to help Coloradans save money on gasoline and utility bills, and to shine a spotlight on dangerous constitutional ballot measures that voters may consider this November. In particular, SWEEP appreciates that:

The legislature acted to expand affordable housing opportunities and enable more transit-oriented development:

• The HOME Act (HB26-1001) creates new opportunities to build homes in the communities where people live and work while increasing the supply of affordable housing. The bill allows multifamily housing and streamlines the permitting process for projects on land owned by school districts, transit agencies, and nonprofits that develop affordable housing. By focusing growth in existing communities instead of pushing sprawl onto natural and agricultural lands, the bill will reduce pollution, save households money, and move Colorado toward a more sustainable and resilient future.
• The Transit and Housing Investment Zones Act (HB26-1065) allows local governments to use a financing tool known as tax increment financing to support more transit-oriented development (TOD). The bill creates opportunities to use future increases in state sales tax revenue around transit stations, including RTD rail stations and planned Front Range Passenger Rail and Mountain Rail stations, to fund transportation infrastructure that unlocks affordable housing and mixed-use development. It also includes up to $50 million in affordable housing tax credits to support projects near transit hubs. TOD is a proven strategy for creating more affordable, climate-friendly housing that is well connected to jobs and services without requiring residents to rely on a car.

The legislature helped to improve the efficiency and affordability of Colorado’s transportation system:

• Electric vehicles (EVs) are one of the most powerful tools to save people and businesses money on getting around. Charging an EV at home at night in the Denver metro area is the equivalent of paying about 90 cents per gallon for gasoline. That’s more than four times cheaper than local gas prices. However, in January, Colorado’s passenger EV tax fell to just $750, half as much as it would have been in better state fiscal circumstances. That – plus the loss of the $7,500 federal EV credit – has considerably slowed Colorado’s EV market, making it harder for Coloradans to escape the burden of high gasoline prices. With HB26-1289, the legislature boosted the state passenger EV credit to $2,000 for 2027, while focusing support on the affordable end of the market (vehicles that cost $50,000 or less), where it can make the most difference in helping lower- and moderate-income Coloradans save money. The bill further makes an extra $2,500 credit available for vehicles that cost $40,000 or less. Additionally, the bill restores the original value of state tax credits for zero-emission trucks, e-bikes, lawn equipment, and heat pumps – helping to at least partially offset the recent loss of federal support for efficiency. The bill responsibly pays for these and other improvements by closing a variety of tax loopholes.
• Public transportation connects people to opportunity by providing access to essential jobs, schools, healthcare, and services – especially for those who don’t drive or can’t afford a car. Fast, frequent, and reliable transit gives people more choices about how and where they live and work. To help give the Denver area better transit, the legislature adopted SB26-150, which modernizes RTD’s governing board structure. Starting in 2028, the new nine-member board will be composed of five elected members and four appointed by the Governor. Members must bring subject matter expertise in public finance, land use and multimodal transportation planning, transit operations, or serving disproportionately impacted communities. Additionally, the bill increases pay for board members, recognizing how important good leadership is for delivering effective service.
• HB26-1007 will give more Coloradans access to technologies that can save them money, including meter collar adapters. People who live in older houses that have smaller electricity panels might need to spend thousands of dollars to upgrade their service to be able to add a home Level 2 EV charger. This has become even more challenging since Congress got rid of the federal panel upgrade tax credit in last summer’s budget bill. Panel upgrade costs can be avoided with a meter collar adapter designed to safely connect an EV charger without needing to upgrade electric service.

The legislature helped Coloradans to save money on utility bills and access more clean energy:

• The legislature took an important step to protect ratepayers and support Colorado’s clean energy transition by reauthorizing the Public Utilities Commission (PUC) via HB26-1326. The PUC regulates the state’s largest electric and gas utilities. The bill extended the PUC’s oversight powers and strengthened its regulatory tools so it will be better able to ensure that customers get the most value for their money; to promote cleaner, more affordable energy and to achieve Colorado’s statutory climate protection goals. Notably, the legislature authorized the PUC to require a utility to contract with a third party – such as the state’s Building Decarbonization Enterprise – to run programs aimed at saving energy, reducing energy bills, or reducing pollution, if the Commission determines that would deliver better results.
• SWEEP worked with the legislature and industry stakeholders to adjust emission standards for residential and small commercial furnaces and water heaters, as part of SB26-002. After it became clear that compliant equipment was not locally available for systems used in manufactured homes or systems fueled by propane, SWEEP worked on an amendment to extend compliance timelines for these applications by five years – while preserving the strength and integrity of Colorado’s broader suite of leading appliance efficiency standards, which are working to save Coloradans energy and money. 

The legislature helped shine a spotlight on the harmful effects of several proposed constitutional ballot measures:

• The Colorado Contractors Association is now collecting signatures on proposed amendment 175 to the state constitution that would take $700 million annually from the state general fund and steer it to roads, which would force the legislature to cut funding for schools and hospitals. The legislature responded with HB26-1430, which would protect the general fund from losses in the event that 175 qualifies and passes. The bill also creates a new Road Funding Enterprise charged with maintaining state highways. The enterprise will be funded by new fees on oversize and overweight vehicles, which have an outsized impact on road conditions.
• The legislature discussed a possible bill to counter Advance Colorado’s proposed measure 177, which would enshrine a “right to natural gas” in the state constitution. While legislators ultimately did not introduce a bill, the discussion at the legislature raised public awareness of how the measure might affect public safety or efforts to reduce air pollution.

The legislature also missed key opportunities, including:

The legislature failed to enact guardrails on data center construction and make energy efficiency upgrades more accessible to income-qualified customers.

• Data centers are placing enormous demands on the electric grid that could raise costs for households and small businesses without protective measures. SWEEP-supported SB26-102 would have required data center companies to procure their own clean energy resources and pay their full share of any grid infrastructure upgrades, protecting other customers from cost shifting. It would also have kept the state on track to meet its clean energy targets. While the bill failed, the legislature also blocked the competing HB26-1030, which would have provided tax incentives for data centers without sufficient consumer or environmental protections. SWEEP looks forward to renewed attempts to address this issue in the next legislative session. 
• Many energy efficiency upgrades require an up-front investment, paid back over time with savings on utility bills. Lower income families are often less able to afford the initial investment, and thus miss out on savings opportunities. SB26-148 would have enabled utility on-bill repayment programs for home energy upgrades, in which customers could pay the cost of an efficiency upgrade gradually over time on their regular utility bill with no upfront costs. SWEEP will work to expand accessible low-interest financing options for energy efficiency in future sessions.

The legislature fell short on other efforts to increase housing options and transit funding.

• HB26-1114 and HB26-1308 would have reduced excessive minimum lot size requirements and allowed homeowners to split existing lots into smaller parcels, making it easier to build smaller and more affordable starter homes in existing neighborhoods. These bills would have helped lower housing costs, reduce sprawl into open space and agricultural land, and support more climate-friendly growth patterns. Read our blog post about these bills here.
• To reduce the state’s budget shortfall, the legislature cut $10.5 million from the Multimodal Options Fund, which supports transit, bicycle, and pedestrian projects. The Joint Budget Committee originally proposed to permanently end all general fund support of this program. While legislators did not actually go that far this year, SWEEP hopes to shore up support for the fund in future budgets.
• Stakeholders, legislators, and the state discussed legislation that would have allowed Colorado to use the Colorado Transportation Investment Office’s toll revenue to support Bustang service and other transit investments in managed lanes, creating a more stable long-term funding source for the state’s rapidly growing intercity transit network. However, without sufficient consensus, legislators never actually introduced a bill. With SB22-180 funding set to expire and Bustang facing a major budget shortfall, the concept could have helped sustain expanded service, avoid major cuts, and advance Colorado’s vision for a statewide “Interstate BRT” system connected by high-frequency transit and mobility hubs. SWEEP will continue to build support for long-term funding in future years.

SWEEP thanks the many legislators who worked tirelessly to champion good ideas, engage stakeholders in dialogue, craft workable compromises, and help build a better future for all Coloradans. We look forward to working with a new class of elected leaders in 2027 to open new doors to help Coloradans save money and reduce pollution.

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