Colorado's Nuclear "Clean Energy" Bill

Today, we’re taking a closer look at Colorado House Bill 25-1040, or HB25-1040, which officially designates nuclear energy as a clean energy resource in Colorado. This bill might seem like a small legal adjustment, but it’s a big step toward reshaping the state’s energy future.   

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The Third Time’s A Charm: Colorado Adds Nuclear Energy as a Clean Energy Resource

About the authors
Thomas J. Dougherty
Dietrich C. Hoefner

Transcript

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Hello everyone, welcome to Womble Perspectives today we’re taking a closer look at Colorado  House Bill 25-1040, or HB25-1040, which officially designates nuclear energy as a clean energy resource in Colorado. This bill might seem like a small legal adjustment, but it’s a big step toward reshaping the state’s energy future.   

This Bill, signed into law by Governor Jared Polis, adds nuclear energy to Colorado's formal definitions of "clean energy" and "clean energy resources." For years, renewable energy sources like wind, solar, and small hydropower dominated Colorado’s clean energy policies, while nuclear power remained excluded. This bill changes that.   

The inclusion of nuclear energy is significant because it provides another tool for meeting critical emission reduction targets. By 2030, Colorado aims to cut carbon dioxide emissions from electricity sales by 80% from 2005 levels, and by 2050, reach 100% emission-free electricity. This bill lets nuclear energy officially count toward those ambitious goals.   

But what led to this legislative shift? To understand that, we need to examine the broader legislative context.     

This isn’t Colorado’s first attempt at redefining its clean energy priorities. Similar legislative efforts fell short in prior sessions, but with growing electricity demand and evolving technology, the conversation around nuclear power gained traction.  

The key provisions of the Bill are clear. It explicitly names nuclear energy as a “clean energy resource,” ensuring that utilities can count nuclear power toward their carbon reduction and compliance goals.   

Another important provision relates to financing opportunities. Small nuclear projects, such as Small Modular Reactors, or SMRs, can now qualify for funding under the Rural Clean Energy Project Finance Program. This expansion could encourage rural development, where advanced nuclear technologies may offer unique benefits.   

Now that we have the context, why was nuclear chosen, and what does it offer?   

The rationale behind HB25-1040 boils down to some undeniable advantages that nuclear energy brings to the table.   

First, there’s reliability. Nuclear offers a consistent and stable energy supply, unaffected by weather conditions like solar or wind. 

Second, climate benefits. Nuclear power is carbon-free and can play a pivotal role in helping Colorado achieve its aggressive carbon reduction goals. 

Lastly, economic factors. Advanced nuclear reactors, such as SMRs and microreactors, are increasingly being viewed as cost-effective, scalable solutions that can meet regional energy needs without requiring massive infrastructure projects.   

That said, any energy policy is ultimately judged by its ability to meet climate targets.   

Colorado has set some of the most ambitious carbon reduction goals in the country. However, prior to this bill, nuclear energy was not recognized as an eligible resource for meeting those requirements.   

Here’s why this was problematic. While renewable energy sources like wind and solar are vital, they’re also intermittent, relying on favorable weather conditions. Energy storage systems can help bridge this gap, but they have their limitations. Nuclear energy offers a reliable, always-on alternative.   

With the passage of HB25-1040, utilities can use nuclear power as a compliance resource and explore it as an option for replacing retiring fossil fuel plants, such as the Comanche-3 power plant. This is especially significant as the state strives to balance emission reductions with grid reliability.   

Now, how does this play into rural development in Colorado?  

One of the standout aspects of HB25-1040 is its expansion of the Rural Clean Energy Project Finance Program. Initially, this program was limited to financing projects like wind and solar. Now, thanks to the bill, small nuclear projects with capacities of up to 50 MW are also eligible for funding.   

This inclusion opens the door for rural landowners to develop advanced nuclear projects like SMRs or microreactors, addressing not only energy needs but also the economic challenges faced by rural communities. This is a game-changer for regions that might not have the infrastructure to adopt large-scale renewables but still want to participate in Colorado’s clean energy transition.   

Of course, all this raises another interesting question. Is the state ready for new nuclear development?   

Colorado actually has a bit of a history with nuclear energy. Between 1979 and 1989, the state was home to the Fort St. Vrain Nuclear Power Plant. Unfortunately, operational issues led to its decommissioning, and it was eventually converted to a natural gas plant.   

But what’s different this time around? Advanced reactor designs are far more innovative and reliable. They’re modular, scalable, and offer enhanced safety features compared to earlier technologies.   

That said, significant challenges remain. Bringing nuclear energy back to Colorado will require navigating legal, regulatory, siting, and environmental hurdles. However, with supportive policies like HB25-1040, the state is laying the groundwork for these possibilities.   

Beyond Colorado, the inclusion of nuclear energy in clean energy policies is part of a larger trend across the United States. Other states are moving toward scalable and affordable designs, enabling a shift from First-of-a-Kind reactors to more deployable solutions.   

For Colorado, this transition creates exciting opportunities, especially in rural areas.  

If you’re curious to learn more about this bill and its implications, check out the resources linked in the show notes. 

Thank you for listening to Womble Perspectives. If you want to learn more about the topics discussed in this episode, please visit The Show Notes, where you can find links to related resources mentioned today. The Show Notes also have more information about our attorneys who provided today's insights, including ways to reach out to them.

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