Colorado commission to set 2035 greenhouse gas reduction targets for gas utilities

The Colorado Commission convened on June 4, 2025, to discuss a significant petition for rulemaking presented by the Colorado Energy Office and the Air Pollution Control Division of the Colorado Department of Public Health and Environment. The primary focus of the meeting was to consider establishing mass-based greenhouse gas emission reduction targets for gas utility clean heat plans aimed at the year 2035.

The petitioners highlighted that the Colorado legislature has already set clean heat targets for 2025 and 2030, which include a 4% reduction from a 2015 baseline for 2025 and a 22% reduction for 2030. Notably, the legislature has mandated that no more than 1% of the 2025 reduction and 5% of the 2030 reduction can come from recovered methane. The commission is tasked with determining the 2035 targets by a deadline of December 1, 2025, in consultation with the division.

In setting these targets, the commission must ensure that gas utilities' greenhouse gas emissions align with the contributions of the residential, commercial, and industrial sectors to statewide greenhouse gas pollution. Additionally, the commission will evaluate the potential use of recovered methane in achieving these targets.

The division proposed a 2035 target reduction of 41% from the 2015 baseline, translating to a mass-based emission target of 5,270,000 metric tons of carbon dioxide equivalent. This proposal is based on an analysis of historical data and the anticipated contributions of regulated gas utilities to statewide greenhouse gas pollution.

The petition further recommended that the commission focus solely on establishing targets for 2035 at this time, suggesting that further targets for 2040 and beyond should be set only after assessing the gas utilities' progress toward the 2030 and 2035 goals. To expedite the process, the petition requested a shortened notice and comment period to avoid delays in opening the rulemaking.

The meeting underscored the urgency of addressing greenhouse gas emissions in Colorado, as the commission prepares to finalize the targets within the stipulated timeframe.