Energy policy in Colorado

in  Colorado

* Fiscal
* Budgets
* Colorado state budget and finances
* Tax policy in Colorado
* Finance
* Financial regulation in Colorado
* Pensions
* Public pensions in Colorado
* Pension health in Colorado
* Civil liberties
* Affirmative action in Colorado
* Campaign finance requirements in Colorado
* Campaign finance requirements for Colorado ballot measures
* Nonprofit regulation in Colorado
* Education
* Charter schools in Colorado
* Higher education in Colorado
* Public education in Colorado
* School choice in Colorado
* Elections
* Ballot access
* Ballot access requirements for political candidates in Colorado
* Ballot access requirements for political parties in Colorado
* Political parties in Colorado
* Ballot access requirements for presidential candidates in Colorado
* Redistricting in Colorado
* Voting in Colorado
* Energy and Environment
* Energy policy in Colorado
* Fracking in Colorado
* Oil and gas extraction on federal land in Colorado
* Endangered species in Colorado
* Environmental policy in Colorado
* Healthcare
* Healthcare policy in Colorado
* Medicaid spending in Colorado
* Effect of the Affordable Care Act in Colorado
* Immigration
* Immigration in Colorado

* * *

This article does not contain the most recently published data on this subject. If you would like to help our coverage grow, consider donating to Ballotpedia.

* * *

* * *

* * *

Fracking in the U.S.
Energy policy in the U.S.
State fracking policy
State energy policy
Glossary of energy terms

Energy policy involves governmental actions affecting the production, distribution, and consumption of energy in a state. Energy policies are enacted and enforced at the local, state, and federal levels and may change over time. These policies include legislation, regulation, taxes, incentives for energy production or use, standards for energy efficiency, and more. Stakeholders include citizens, politicians, environmental groups, industry groups, and think tanks. A variety of factors can affect the feasibility of federal and state-level energy policies, such as available natural resources, geography, and consumer needs.

This article outlines state-level oil and gas regulations, renewable energy programs, oil and gas production, energy usage, energy and electricity prices, fuel taxes, and utilities in Colorado.

See the tabs below for further information:

1. Policy: This tab provides information about state regulations on energy production and policies related to oil and gas production, fracking, renewable energy generation, energy efficiency, and net metering.
2. Production: This tab provides information about total energy production by energy source in Colorado.
3. Usage: This tab presents information about electricity consumption by energy source.
4. Prices and taxes: This tab presents information about average energy and electricity prices, per capita spending on energy, and fuel taxes.
5. Utilities: This tab presents information about public and private utilities, electricity markets, the types of utilities in Colorado, and the electric reliability organizations in Colorado.
6. Background: This tab provides information about the types of nonrenewable and renewable energy sources produced and used in the United States, an energy profile of Colorado, a state profile of Colorado from the Almanac of American Politics (2016), and economic indicators in the state, such as median income.

## Contents

* 1 Policy
* 1.1 State regulations
* 1.1.1 Fracking
* 1.2 Renewable energy policies
* 1.2.1 Renewable Portfolio Standard
* 1.2.2 Grant programs
* 1.2.3 Loan programs
* 1.3 Energy efficiency regulations
* 1.4 Net metering
* 1.5 Recent legislation
* 1.6 Ballot measures
* 1.6.1 Energy policy ballot measures
* 1.6.2 Utility policy ballot measures
* 2 Production
* 2.1 Total energy production
* 2.2 Nonrenewable energy production
* 2.3 Oil and gas production (2004-2014)
* 2.4 Oil and gas production on federal land
* 2.4.1 Land leased
* 3 Energy usage
* 3.1 Consumption
* 4 Prices and taxes
* 4.1 Energy prices
* 4.2 Energy spending
* 4.3 Fuel taxes
* 4.4 Federal tax
* 5 Utilities
* 5.1 Background
* 5.2 Electricity markets
* 5.3 Electric reliability organizations
* 5.3.1 Colorado EROs
* 6 Background
* 6.1 Background on energy resources
* 6.2 Colorado energy profile
* 6.3 State profile
* 6.3.1 Presidential voting pattern
* 6.3.1.1 Pivot Counties (2016)
* 6.3.1.2 Pivot Counties (2020)
* 6.3.2 Economic indicators
* 6.4 See also
* 6.5 Recent news
* 6.6 Footnotes

# Policy[edit]

### State regulations[edit]

The Colorado Oil and Gas Conservation Commission has regulatory authority over the exploration and production of oil and natural gas resources, waste prevention, and the prevention and mitigation of environmental impacts. The commission issues rules and regulations related to oil and gas production, which can be found here.

All oil and gas operators must submit an application to the commission's director before any oil and gas operation can begin. The director of the commission must approve the drilling of any well, the deepening of an existing well, the re-entering or plugging of any well, the operation of any existing well, and the location of each well. The complete text of the regulations covering the drilling, development, production, and abandonment of oil and gas wells can be found here.

#### Fracking[edit]

See also: Fracking in Colorado

Oil and gas operators must provide a written notice of intent to use hydraulic fracturing (also known as fracking) at any well. The commission requires that well components be designed to maintain certain high pressures at a site and reservoir. All wells must be cased to prevent the release of oil, gas, and/or water, and all wells must follow state cementing requirements. Each well must meet tests related to the expected conditions brought on by fracking operations. Further, operators must monitor each well's pressure during fracking and report to the commission any large increases in pressure in order to monitor and prevent the release of any fluid.[1][2]

### Renewable energy policies[edit]

States have implemented funding and financial incentive programs to subsidize or otherwise increase investment in renewable energy resources such as wind, solar, and hydroelectric power. These programs include renewable portfolio standards, grants, rebate programs, tax incentives, loans, performance-based incentives, and more. The aim of the policies generally involves reducing the cost of renewable energy production for consumers, reducing regulatory compliance costs, reducing investment risks involving renewable energy, and/or increasing the adoption of renewable energy sources by individuals and businesses.[3]

#### Renewable Portfolio Standard[edit]

See also: Renewable Portfolio Standard

A Renewable Portfolio Standard (RPS), also known as a renewable electricity standard, is a mandate intended to increase the amount of renewable energy production and use. Under these standards, a utility company can be required by a state to have a certain percentage of its electricity come from certain renewable energy resources. In addition, states may give tax credits to utility companies to fulfill these requirements.[4][5]

As of February 2017, Colorado was one of 30 states with a Renewable Portfolio Standard.[6]

Colorado enacted its Renewable Portfolio Standard by an initiated state statute known as Initiative 37 in 2004. The measure requires that a percentage of retail electricity sales come from renewable energy resources. Each qualifying utility must generate electricity from renewable sources or must contribute to the generation of electricity from renewable energy resources by the year 2020 and each subsequent year. Investor-owned utilities must generate 30 percent of their electricity sales from renewable energy by 2020; electric cooperatives that serve 100,000 meters or more must generate 20 percent; and electric cooperatives that serve less than 100,000 meters and municipal utilities that serve more than 40,000 must generate 10 percent of their electric sales from renewable energy by 2020. Eligible renewable energy sources include solar energy, wind energy, geothermal energy, biomass, specified hydroelectric power facilities, and fuel cells that use hydrogen from eligible renewable fuels.[7][8][9][10]

Utilities use renewable energy credits (RECs) to demonstrate compliance with the standard. An REC is given to a utility for each megawatt hour (MWh) of electricity generated from a renewable source. Utilities can purchase, sell, or trade RECs if they obtain and use a certain number of RECs to demonstrate compliance. All publicly owned municipal utilities must submit to the Colorado Public Utilities Commission a statement showing that they have implemented the Renewable Portfolio Standard. All investor-owned utilities and electric cooperatives must submit annual compliance reports to the commission.[8][9]

#### Grant programs[edit]

States, nonprofit organizations, and/or private utilities may operate grant programs for renewable energy. These programs may include state or private funding for energy installation costs, research and development, infrastructure and business development, system testing, and renewable energy feasibility studies (studies that look into the potential for renewable energy use in specific areas). Grants can be provided with or without requiring a recipient to match the grant. Additional incentives, such as lower interest loans, may be included with a grant.[3]

As of March 2015, Colorado was one of nine states with utility-run or locally run grant programs for renewable energy. See the map below for grant programs by state.[3]

States with grant programs for renewable energy as of March 2015 (Source: Environmental Protection Agency)

#### Loan programs[edit]

Loan programs may be used to offer lower interest loans or other financing options to individuals and businesses to reduce the upfront costs of purchasing and installing renewable energy technologies. Loan programs may include programs that use payments from earlier borrowers to provide loans for new borrowers, programs in which building owners reduce their energy consumption to pay their upfront costs for renewable energy technologies, and programs that allow individuals with a higher debt-to-income ratio to purchase homes that use less energy, among others.[3]

As of March 2015, Colorado was one of 24 states with a state-run loan program and locally run, utility-run, and/or privately run loan programs for renewable energy.[3]

In 2009, the Colorado State Legislature enacted the Renewable Energy and Energy Efficiency for Schools Loan Program. The program distributes loans to K-12 school districts to install renewable energy systems and energy efficiency measures. In 2014, the legislature amended the program to include additional eligible energy efficiency projects. Eligible renewable energy sources include solar energy, wind energy, biomass, and smaller hydroelectric power projects. Loans are provided to districts on a competitive basis. A school district can receive a loan for up to $1 million. The maximum loan term was 15 years as of February 2017. School districts submit applications and are ranked on the following criteria, which are weighted differently: technical merit (40 percent of the application), energy cost reductions (30 percent), and educational benefit (30 percent). Loan recipients must submit quarterly progress reports to the Office of Energy as well as a final report.[11][12]

A complete list of state, local, and private incentive, loan, grant, and assistance programs for renewable energy and energy efficiency in Colorado can be found here.

See the map below for renewable energy loan programs by state.

States with loan programs for renewable energy as of March 2015 (Source: Environmental Protection Agency (EPA)

### Energy efficiency regulations[edit]

As of February 2017, Colorado required new residential and commercial buildings to meet energy efficiency standards. By July 2008, any county or municipality with a building code in place was required to implement the 2003 version or 2006 version of the International Energy Conservation Code (IECC). As of October 2015, approximately 83 percent of Colorado's population was covered by the 2009 version or later versions of the IECC, and around 95 percent of all new residential buildings were built under the 2009 IECC. Local governments in jurisdictions that have adopted a building code must enforce the residential energy code and can adopt their own requirements. Under House Bill 1149, passed in 2009, builders of single family homes must offer solar energy as a standard feature to all prospective buyers. The builder must offer a buyer a photovoltaic solar energy system, a solar water heating system, or the necessary infrastructure to install a solar energy system at a later date.[6][13][14][15]

Under Senate Bill 51, enacted in 2007, Colorado requires state-owned buildings, state-assisted buildings, K-12 schools, public universities, and housing projects receiving public assistance to follow energy efficiency standards. Each executive department, public university, the Secretary of State's Office, and the Attorney General's Office must meet energy and water management standards.[6][16][17]

### Net metering[edit]

Net metering is a billing system in which customers who generate their own electricity, usually using renewable sources (such as solar panels) are able to sell their excess electricity back to the electric grid, which is an interconnected network that is used to deliver electricity. This requires electricity to be able to flow both to and from a consumer.[18][19][20]

As of October 2016, Colorado was one of 41 states with a statewide net metering policy. In 2005, the Colorado Public Utilities Commission adopted net metering standards as required by Initiative 37, enacted in 2004. Customers that generate electricity are eligible for net metering. Customers retain ownership of renewable energy credits (RECs) associated with the electricity they generate from renewable sources. Utilities can also purchase RECs from customers.[21][22]

For a complete list of net metering programs by state, click here.[6][23]

### Recent legislation[edit]

The following is a list of recent energy policy bills that have been introduced in or passed by the Colorado State Legislature. To learn more about each of these bills, click the bill title. This information is provided by BillTrack50 and LegiScan.

Note: Due to the nature of the sorting process used to generate this list, some results may not be relevant to the topic. If no bills are displayed below, no legislation pertaining to this topic has been introduced in the legislature recently.

### Ballot measures[edit]

#### Energy policy ballot measures[edit]

See also: Energy on the ballot and List of Colorado ballot measures

Ballotpedia has covered 2 ballot measures relating to state and local energy policy in Colorado.

1. Colorado Energy Development by Cities, Measure 4 (1974)
2. Colorado Renewable Energy Requirement, Initiative 37 (2004)

#### Utility policy ballot measures[edit]

See also: Local utility tax and fees on the ballot

Ballotpedia has not covered any ballot measures relating to local utility tax and fees in Colorado.

# Production[edit]

The sections below include statistics on total energy production in Colorado, oil and natural gas production in Colorado, oil and gas production in Colorado over time (2004-2014), and oil and gas production on federal land, including the amount of federal land leased in Colorado for production.

### Total energy production[edit]

The table below provides information regarding energy production in Colorado in British thermal units (Btu). A British thermal unit is used to measure the heat contained in different fuels. The U.S. Department of Energy defines a Btu as "the quantity of heat required to raise the temperature of 1 pound of liquid water by 1 degree Fahrenheit." Fuels are discussed in terms of Btu to compare fuels with different energy content and prices. For example, one gallon of gasoline equals 120,524 Btu.[24]

Energy production, 2014 (in billion Btu)

State | Biomass | Coal | Crude oil | Nuclear energy | Natural gas | Renewable | Total*
Colorado |  17,818  |  528,242  |  552,114  |  0 |  1,834,169  |  127,109  |  3,059,452
New Mexico |  3,267  |  400,158  |  717,379  |  0  |  1,355,013  |  42,194  |  2,518,011
Utah | 0  |  410,997  |  237,249  |  0  |  500,862  |  21,573  |  1,170,681
Wyoming |  1,621  |  6,880,205  |  441,252  | 0  |  1,986,322  |  53,976  |  9,363,376
U.S. average | 38,759  |  404,181  |  307,301  |  160,980  |  585,731  |  187,132  |  1,684,085
*Total figures were computed by Ballotpedia.
Source: U.S. Energy Information Administration, "Google Sheets API"

### Nonrenewable energy production[edit]

The table below provides information regarding nonrenewable energy production in Colorado. For coal data, the phrase productive capacity refers to the maximum amount of coal that could be expected to be produced in 2014. The natural gas and crude oil production data refer to the amounts of natural gas and crude oil produced in December 2014 and April 2016, respectively.[25][26]

Nonrenewable energy production

State | Coal, productive capacity
(short tons)  | Natural gas
(million cubic feet)  | Crude oil
(thousand barrels)
Date  |  2014  |  December 2014  |  April 2016
Colorado |  29,841,775  |  130,204  |  9,496
New Mexico |  27,400,000  |  93,134  |  12,337
Utah |  24,313,422  |  34,998  |  2,483
Wyoming |  489,262,123  |  144,491  |  6,179
U.S. average |  24,874,314  |  43,350  |  4,388
Source: U.S. Energy Information Administration, "Google Sheets API"

### Oil and gas production (2004-2014)[edit]

Note: This section provides information about oil and gas production on private and state-owned lands. Information on oil and gas production on federal lands is accessible here.

The graph and table below provide information about crude oil production in Colorado. Information from select surrounding states is provided for comparative purposes.[27]

Crude oil production in Colorado and select surrounding states,
in thousand barrels

State | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | Percent of total 2014 production | 2014 Rank
Colorado |  22,532 |  23,226  |  24,562  |  26,116  |  29,594  |  30,227  |  32,765  |  39,243  |  49,310  |  65,257  |  94,414 |  2.97% |  7
New Mexico |  64,517  |  60,964  |  59,454  |  59,180  |  60,143  |  61,143  |  65,377  |  71,286  |  85,218  |  101,373  |  123,623  |  3.89%  |  6
Utah |  14,744  |  16,673  |  17,927  |  19,535  |  22,041  |  22,943  |  24,674  |  26,331  |  30,268  |  34,912  |  40,893  |  1.29%  |  11
Wyoming |  51,940  |  51,768  |  52,973  |  54,115  |  53,044  |  51,532  |  53,116  |  54,649  |  57,837  |  63,295  |  76,072  |  2.39%  |  8
United States | 1,991,394 | 1,891,227 | 1,857,044 | 1,853,166 | 1,830,002 | 1,952,670 | 2,000,861 | 2,060,398 | 2,377,806 | 2,722,171 | 3,180,813 |  \--  |  \--
Source: U.S. Energy Information Administration, "Crude Oil Production"
Note: The data above are field production data.

The graph and table below provide information about natural gas production in Colorado. Information from select surrounding states is provided for comparative purposes.[28]

Natural gas production in Colorado and select surrounding states,
in million cubic feet (MMCF)

State | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | Percent of total 2013 production | 2013 rank
Colorado |  1,021,294 |  1,089,622  |  1,143,985  |  1,214,396  |  1,254,529  |  1,402,845  |  1,511,654  |  1,589,664  |  1,649,306  |  1,709,376  |  1,604,860 |  5.35% |  7
New Mexico |  1,616,179  |  1,644,738  |  1,656,850  |  1,619,528  |  1,555,450  |  1,487,123  |  1,425,222  |  1,341,475  |  1,287,682  |  1,276,296  |  1,271,185  |  4.24%  |  8
Utah |  284,359  |  290,586  |  311,994  |  356,321  |  385,361  |  441,598  |  449,511  |  436,885  |  461,507  |  490,393  |  470,863  |  1.57%  |  11
Wyoming |  1,836,115  |  1,929,040  |  2,003,826  |  2,111,766  |  2,257,884  |  2,488,267  |  2,536,336  |  2,514,657  |  2,375,301  |  2,225,622  |  2,047,757  |  6.82%  |  6
United States | 24,118,978 | 23,969,678 | 23,456,822 | 23,535,018 | 24,663,656 | 25,636,257 | 26,056,893 | 26,816,085 | 28,479,026 | 29,542,313 | 30,005,254 | \-- | \--
Source: U.S. Energy Information Administration, "Natural Gas Gross Withdrawals and Production"
The data presented above are gross withdrawals in million cubic feet (MMCF). Production data for 2014 were estimated for some, but not all, states; "--" indicates data were not available.

### Oil and gas production on federal land[edit]

See also: Oil and natural gas extraction on federal land

The federal government leases federally managed land to private individuals and companies for energy development, including crude oil and natural gas drilling, solar energy development, and geothermal energy development. Approximately 166 million acres of federal land were available to be leased for energy development as of December 2014. The U.S. Bureau of Land Management (BLM) is responsible for regulating oil and gas drilling on federal lands in the United States.[29][30]

The table below provides information about oil and natural gas production on federal lands in Colorado in 2014. Information from select surrounding states is provided for comparison.[31][32]

Oil and natural gas production on federal land, 2014

State  |  Oil production (in thousands of barrels)  |  Natural gas production (in million cubic feet)
Colorado |  4,780  |  339,478
New Mexico |  57,992  |  646,876
Utah |  13,196  |  253,252
Wyoming |  36,373  |  1,118,572
U.S. average |  2,976.06  |  49,996.92
Source: Office of Natural Resource Revenue, "Statistical Information"

#### Land leased[edit]

Private oil and natural gas companies apply for leases from the U.S. Bureau of Land Management (BLM) to develop energy resources on federal lands. After a lease is approved, the company must submit information to the BLM about how it will conduct its drilling and production operations. The BLM also inspects a company’s operations during production.[33]

The table below provides information about oil and gas producing leases and acres on federal lands in Colorado from 2013 to 2015. Information from select surrounding states is provided for comparison.

Oil and gas producing leases and acres on federal land by state, 2013-2015

State  |  FY 2015  |  FY 2014  |  FY 2013
Producing leases  |  Producing acres  |  Producing leases  |  Producing acres  |  Producing leases  |  Producing acres
Colorado |  2,192  |  1,483,943  |  2,179  |  1,478,105  |  2,180  |  1,474,922
New Mexico |  6,579  |  3,751,887  |  6,556  |  3,727,864  |  6,535  |  3,697,459
Utah |  1,492  |  1,134,900  |  1,487  |  1,119,366  |  1,473  |  1,110,875
Wyoming |  7,501  |  4,023,729  |  7,551  |  4,033,994  |  7,546  |  4,011,606
U.S. average |  485  |  257,505  |  483  |  258,996  |  480  |  262,870
Source: U.S. Bureau of Land Management, "Oil and Gas Statistics"

# Energy usage[edit]

The section below includes statistics on electricity consumption in the state by energy type (in 2014).

### Consumption[edit]

The table below provides information about energy consumption by source in Colorado in 2014. Information from select surrounding states is provided for comparison.[25]

Energy consumption in Colorado, 2014 (in billion BtuBtu or British thermal units is a means of measuring the heat contained in fuels. "It is the quantity of heat required to raise the temperature of 1 pound of liquid water by 1 degree Fahrenheit." Fuels are often converted into Btu to make it easier to compare different types of fuels with different energy contents and prices. For comparison, one gallon of gasoline equals 120,524 Btu.[34])

State | Coal | Crude oil and petroleum products | Natural gas | Nuclear energy | Solar | Wind | Geothermal | Hydropower | Wood and wood waste | Biomass
Colorado |  350,526  |  483,029  |  499,668  | 0  |  7,582  |  70,076  |  759  |  16,831  |  14,044  |  36,073
New Mexico |  215,348  |  246,508  |  256,085  |  0  |  6,595  |  21,633  |  451  |  936  |  9,313  |  17,189
Utah |  344,054  |  286,227  |  252,691  |  0  |  536  |  6,276  |  5,769  |  6,018  |  2,974  |  10,562
Wyoming |  489,300  |  175,326  |  141,763  |  0  |  19  |  41,899  |  663  |  8,261  |  1,512  |  4,566
U.S. average |  359,931  |  716,746  |  544,353  |  172,585  |  20,739  |  531,323  |  16,555  |  61,397  |  65,345  |  101,581
Source: U.S. Energy Information Administration, "Google Sheets API"

# Prices and taxes[edit]

The sections below include information on energy prices and spending in Colorado, fuel taxes and state taxes in Colorado and in neighboring states, and an overview of the federal tax on gasoline.

### Energy prices[edit]

The price of electricity is affected by supply and demand. The supply of electricity is affected by fuel prices, environmental and energy regulations, power plant capacity, weather, and other factors. Demand for electricity also affects the price. Because electricity cannot be stored for long periods of time, it must be produced and used when it is needed. As demand for electricity increases, the price also generally increases.[35][36]

The table below provides information about energy prices in Colorado as of April 2016. Information from select surrounding states is provided for comparison.[25]

Note: In comparing dollar amounts across the states, it is important to note that the cost of living can from state to state and within a state. The amounts given on this page have not been adjusted to reflect these differences. For more information on "regional price disparities" and the Consumer Price Index, see the U.S. Department of Commerce, Bureau of Economic Analysis.

Energy prices in Colorado

State | Natural gas
Dollars per thousand cubic foot  | Electricity
Cents per kilowatthour
Date  |  April 2016  |  April 2016
Colorado |  $6.82  |  9.4
New Mexico |  $7.44  |  8.4
Utah |  $8.96  |  8.3
Wyoming |  $7.92  |  8.2
U.S. average |  $11.20  |  10.41
Source: U.S. Energy Information Administration, "Google Sheets API"

Electricity prices can vary depending on the type of consumer; consumer categories include residential, commercial, industrial, and in some cases, transportation. The rate-making process is both political and economic. The table below presents information about electricity prices by consumer type in Colorado in April 2016. Information from select surrounding states is provided for comparison.

Electricity prices in Colorado by sector (in cents per kilowatthour)

State | Commercial | Industrial | Residential | Transportation | Average (all sectors)
Date  |  April 2016  |  April 2016  |  April 2016  |  April 2016  |  April 2016
Colorado |  9.5  |  6.9  |  11.8  |  10.1  |  9.6
New Mexico |  9.0  |  5.6  |  11.3  |  \--  |  8.6
Utah |  8.5  |  6.0  |  10.7  |  10.1  |  8.8
Wyoming |  9.4  |  7.0  |  11.0  |  \--  |  9.1
U.S. average |  10.48  |  7.45  |  13.05  |  10.47  |  10.36
Source: U.S. Energy Information Administration, "Google Sheets API"

### Energy spending[edit]

The table below provides information about energy spending in Colorado as of 2014. Information from select surrounding states is provided for comparison.

Energy spending in Colorado, 2014 (in millions of dollar except per capita spending)

State | Petroleum | Coal | Natural gas | Nuclear | Per capita spending
Colorado |  $12,388  |  $684  |  $2,686  |  $0  |  $3,733
New Mexico |  $6,171  |  $812  |  $975  |  $0  |  $4,325
Utah |  $7,162  |  $726  |  $1,348  |  $ 0 |  $3,653
Wyoming |  $4,019  |  $798  |  $456  |  $0  |  $9,997
U.S. average |  $17,267  |  $1,322  |  $3,786  |  $574  |  $5,304
Source: U.S. Energy Information Administration, "Google Sheets API"

### Fuel taxes[edit]

Click to enlarge.

Revenue collected by federal, state, and local governments from fuel taxes is usually used to fund transportation infrastructure such as roads and bridges. Some states may charge an excise tax based on how much gas or diesel is purchased. Some states may charge retail tax based on the average price of gas over a certain period. Additionally, some states may charge an environmental tax to be used for environmental projects. The Tax Foundation, which created the map to the right, used data from the American Petroleum Institute, which converted each state's different tax structure into cents per gallon to compare each state's gas taxes. In 2016, gas taxes accounted for 23 percent of the price of gasoline. Crude oil accounted for 40 percent of the price of gasoline, refining accounted for 24 percent of the price, and distribution and marketing accounted for 13 percent of the remainder.[37][38]

The table below provides information about state fuel taxes by type (excluding the federal gas taxes) in Colorado as of January 2016. As of January 2016, Colorado levied a 22 cent state gasoline tax and a 20.5 cent state diesel tax. Colorado ranked 37th highest in total gasoline taxes (federal and state) and 41st highest in total diesel fuel taxes as of January 2016.[39][40]

State motor fuel taxes in cents per gallon, January 2016

State | State gasoline tax | Total gasoline tax | Rank | State diesel tax | Total diesel tax | Rank
Colorado |  22.0  |  40.4  |  37  |  20.5  |  44.9  |  41
New Mexico |  18.9  |  37.3  |  44  |  22.9  |  47.3  |  37
Utah |  29.4  |  47.8  |  24  |  29.4  |  53.8  |  22
Wyoming |  24.0  |  42.4  |  32  |  24.0  |  48.4  |  33
U.S. average |  30.29  |  48.69  |  N/A  |  30.01  |  54.41  |  N/A
Source: American Petroleum Institute, "Motor Fuel Taxes"

### Federal tax[edit]

The first federal tax on gasoline was proposed by Secretary of the Treasury Ogden L. Mills under President Herbert Hoover (R) as a revenue generating measure to balance the budget during the Great Depression. A 1-cent tax per gallon of imported gasoline and fuel oil was passed as part of the Revenue Act of 1932 and signed by President Franklin D. Roosevelt (D). The 1-cent tax continued until 1951 when the tax was increased to 2 cents in part to raise revenue during the Korean War. In 1956, the tax was raised to 3 cents to fund the Interstate Highway System. During this time, the Highway Trust Fund was created as a means to fund highway construction. Since 1956, there have been increases to the tax. As of April 2016, the gas tax was last raised by President Bill Clinton (D) in 1993 to 18.4 cents per gallon.[41]

# Utilities[edit]

The sections below include general information on utilities, an overview of utilities and electricity markets, information on the types of utilities in Colorado, an overview of electricity reliability organizations (EROs), and the EROs that oversee electricity in Colorado.

### Background[edit]

Utilities are firms that own and/or operate facilities to generate, transmit, and/or distribute electricity, gas, and/or water to the public. Electric utilities are commercial entities that own and operate facilities to generate, transmit, and distribute electricity to the public and/or the industrial sector. State and local regulators oversee transmission and distribution charges. Local utilities read electric meters and bill individuals or businesses, generally on a monthly basis.[42][43]

Utilities are defined differently in each state and in federal legislation. Two general types of utilities are private and public utilities. Private utilities, commonly known as investor-owned utilities, provide stocks to investors and sell bonds. These utilities are regulated by state regulatory agencies. State agencies are also responsible for setting retail rates charged by investor-owned utilities, overseeing utility infrastructure, and ensuring that investor-owned utilities respond to customer service demands. Public utilities include government or municipally owned utilities. Another type of utility is an electric cooperative. Cooperatives are nonprofit businesses voluntarily owned and managed by the individuals and businesses that use their services. They are commonly used in rural areas that do not have access to a larger state or region-wide electric grid.[43]

### Electricity markets[edit]

Electricity markets in each state are defined as regulated or deregulated. A regulated market includes utilities that own and manage the power plants that generate the electricity, the electricity transmission lines, and the distribution equipment (such as wires and electric poles). In addition, the utilities rates are approved and regulated by local and state agencies. A deregulated market requires utilities to divest ownership in the generation and transmission of electricity. In this market, utilities oversee the interconnection from a meter at a household or business to the power grid and is responsible for billing ratepayers.[44][45]

Depending on the state and/or area, public utilities may provide most or all energy services to homes and businesses, or a state may allow other private electricity providers to transmit and distribute electricity in addition to other utilities. For example, one type of private provider is a retail energy provider, which sells electricity in areas with retail competition. The provider purchases wholesale electricity and the delivery services (such as transmission lines) and can price electricity to particular consumers.[44][45]

As of February 2017, Colorado was one of 40 states with a regulated electricity market. The state had two investor-owned utilities as of February 2017: Xcel Energy (also known as the Public Service Company of Colorado) and Black Hills Energy. These utilities are regulated by the Colorado Public Utilities Commission. The commission is responsible for reviewing rate requests from utilities and setting electricity rates for residential and commercial consumers. In addition, the commission establishes service standards outlining minimum adequacy and reliability standards. Colorado had 29 publicly owned municipal utilities and 22 rural electric cooperatives as of February 2017. These utilities are partially regulated by the Colorado Public Utilities Commission. Every electric utility in Colorado must receive a certificate of public convenience and necessity (CPCN) to operate in the state.[46][47]

### Electric reliability organizations[edit]

The Energy Policy Act of 2005 required the Federal Energy Regulatory Commission (FERC) to designate an electric reliability organization (ERO) for the United States. An ERO oversees the reliability of a nation's electric grid. In 2006, FERC granted authority to the North American Electric Reliability Corporation (NERC) to develop and enforce grid reliability standards for the United States. NERC, a self-regulated nonprofit corporation, is authorized to enforce grid reliability standards for all users, owners, and operators of the U.S. electrical system.[48]

NERC works with eight regional reliability organizations to oversee the U.S. electrical system. These organizations, known as regional entities, are comprised of officials from investor-owned utilities, federal power agencies, electric cooperatives, and state and municipal utilities. Regional entities enforce NERC and regional reliability standards. Further, they forecast electricity demand and coordinate operations with other regional entities.[49]

#### Colorado EROs[edit]

As of February 2017, the Western Electricity Coordinating Council (WECC) was the NERC-affiliated corporation that oversees electricity in Colorado. The WECC conducts studies and assessments of the electricity grid, conducts long-term planning, and develops regional standards for electricity reliability.[50]

# Background[edit]

The sections below include an overview of the types of renewable and nonrenewable energy produced and consumed in the United States, an energy profile of Colorado (from the U.S. Energy Information Administration), a general profile of Colorado (from the 2016 edition of the Almanac of American Politics), and various economic indicators in Colorado.

### Background on energy resources[edit]

Nonrenewable energy sources, such as coal, oil, and natural gas (sometimes known as fossil fuels), and renewable sources, such as hydropower, wind, biofuels, and solar energy, are produced in each state, though at different levels depending on a state's geography, energy consumption, and the raw materials available in a particular state. For example, several states do not have coal, oil, and/or natural gas resources. States that lack these resources import these fuels.[51]

According to the U.S. Department of Energy, oil, coal, and natural gas comprise the majority of the resources used to generate power in the United States. In 2014, the top five energy-producing states were the top five fossil fuel-producing states—Texas, Wyoming, Pennsylvania, Louisiana, and West Virginia. These states' fossil fuel production accounted for approximately 42 percent of U.S. energy production in 2014. States with fewer coal, oil, and natural gas resources generally consume less energy. In 2014, the bottom five energy-producing states—Rhode Island, Delaware, Hawaii, Nevada, and New Hampshire—produced 0.2 percent of U.S. energy and consumed approximately 2 percent of total U.S. energy.[51]

The production of biofuels (liquid fuels created from plant or plant-derived materials) is generally concentrated in the Midwest—states such as Illinois, Iowa, Nebraska, and South Dakota) given the region's agricultural production of crops such as corn, which is used to make ethanol, a biofuel that can be blended with gasoline and used as a transportation fuel.[51]

Other renewable sources are used to generate power in the states include hydroelectric power, which accounted for about half of all renewable energy production in the United States in 2014.[51]

### Colorado energy profile[edit]

As of 2014, Colorado was below the national average in per capita energy consumption. The state's industrial sector, including aerospace and defense industries, electronics manufacturing, agriculture, and food and beverage manufacturing, was the largest energy-consuming sector, followed by the transportation sector.[25]

According to the U.S. Energy Information Administration, crude oil production in Colorado quadrupled from 2010 to 2015 due to greater use of directional drilling and hydraulic fracturing (also known as fracking). In 2015, Colorado produced more than three of every 100 barrels produced in the United States that year. Weld County supplied nine out of every 10 barrels of oil produced in the state in 2015. As of 2015, Colorado had two petroleum refineries in Commerce City near Denver.[25]

From 2001 to 2015, natural gas production in Colorado doubled. As of March 2015, eleven of the 100 largest natural gas fields in the United States were located partly or entirely in Colorado. From 2010 to 2015, the residential sector was the largest consumer of natural gas in the state.[25]

Coal-fired power plants accounted for approximately 60 percent of Colorado's net electricity generation as of October 2016; natural gas accounted for approximately 25 percent. One-sixth of Colorado's net electricity generation in 2015 came from renewable energy sources, particularly wind energy.[25]

In 2004, Colorado voters approved an initiative establishing a state Renewable Portfolio Standard (RPS). Colorado was the first state to enact a ballot measure establishing an RPS. In 2015, wind turbines accounted for approximately 75 percent of the state's electricity generation from renewable sources, followed by hydroelectric power, which produced approximately 17 percent of the state's renewable electricity generation.[25]

## State profile[edit]

File:USA Colorado location map.svg

200px

Demographic data for Colorado

| Colorado| U.S.
Total population:| 5,448,819| 316,515,021
Land area (sq mi):| 103,642| 3,531,905
Race and ethnicity**
White:| 84.2%| 73.6%
Black/African American:| 4%| 12.6%
Asian:| 2.9%| 5.1%
Native American:| 0.9%| 0.8%
Pacific Islander:| 0.1%| 0.2%
Two or more:| 3.5%| 3%
Hispanic/Latino:| 21.1%| 17.1%
Education
High school graduation rate:| 90.7%| 86.7%
College graduation rate:| 38.1%| 29.8%
Income
Median household income:| $60,629| $53,889
Persons below poverty level:| 13.5%| 11.3%
Source: U.S. Census Bureau, "American Community Survey" (5-year estimates 2010-2015)
Click here for more information on the 2020 census and here for more on its impact on the redistricting process in Colorado.

* * *

**Note: Percentages for race and ethnicity may add up to more than 100 percent because respondents may report more than one race and the Hispanic/Latino ethnicity may be selected in conjunction with any race. Read more about race and ethnicity in the census here.

### Presidential voting pattern[edit]

See also: Presidential voting trends in Colorado

Colorado voted for the Democratic candidate in three out of the five presidential elections between 2000 and 2016.

#### Pivot Counties (2016)

Ballotpedia identified 206 counties that voted for Donald Trump (R) in 2016 after voting for Barack Obama (D) in 2008 and 2012. Collectively, Trump won these Pivot Counties by more than 580,000 votes. Of these 206 counties, four are located in Colorado, accounting for 1.94 percent of the total pivot counties.[52]

#### Pivot Counties (2020)

In 2020, Ballotpedia re-examined the 206 Pivot Counties to view their voting patterns following that year's presidential election. Ballotpedia defined those won by Trump won as Retained Pivot Counties and those won by Joe Biden (D) as Boomerang Pivot Counties. Nationwide, there were 181 Retained Pivot Counties and 25 Boomerang Pivot Counties. Colorado had three Retained Pivot Counties and one Boomerang Pivot County, accounting for 1.66 and 4.00 percent of all Retained and Boomerang Pivot Counties, respectively.

More Colorado coverage on Ballotpedia

* Elections in Colorado
* United States congressional delegations from Colorado
* Public policy in Colorado
* Influencers in Colorado
* Colorado fact checks
* More...

### Economic indicators[edit]

See also: Economic indicators by state

Colorado's GDP increased by 4.7 percent in 2014. Click the image to view a larger version.

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.[53][54][55]

In Colorado, the median annual income was $61,634 between 2011 and 2013. This was higher than the national average and all of Colorado's neighbors. Among its neighbors, Colorado also had the largest percentage of residents, 44 percent, that earned incomes that were at least 400 percent above the federal poverty level.[56][57][58][59]

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Various economic indicators by state

State  |  Distribution of population by FPL* (2013)  |  Median annual income (2011-2013)  |  Unemployment rate  |  Total GSP (2013)†
Under 100%  |  100-199%  |  200-399%  |  400%+  |  Sept. 2013  |  Sept. 2014
Colorado |  11%  |  17%  |  29%  |  44%  |  $61,634  |  6.6%  |  4.7%  |  $294,443
New Mexico |  22%  |  20%  |  28%  |  30%  |  $44,472  |  6.9%  |  6.6%  |  $92,245
Utah |  8%  |  20%  |  36%  |  36%  |  $60,053  |  4.3%  |  3.5%  |  $141,240
Wyoming |  12%  |  18%  |  31%  |  39%  |  $56,569  |  4.6%  |  4.7%  |  $45,432
United States | 15% | 19% | 30% | 36% | $52,047 | 7.2% | 5.9% | $16,701,415
* Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government."
† In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state."
Source: The Henry J. Kaiser Family Foundation, "State Health Facts"

## See also[edit]

* Energy policy in the U.S.
* Fracking in Colorado
* Net metering
* Renewable Portfolio Standard
* Environmental policy in Colorado

## Recent news[edit]

The link below is to the most recent stories in a Google news search for the terms Colorado energy policy. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

Energy policy in Colorado - Google News

## Footnotes[edit]

1. ↑ Colorado Oil and Gas Conservation Commission, "Hydraulic fracturing information," accessed March 21, 2017
2. ↑ Colorado Oil and Gas Conservation Commission, "Frequently Asked Questions About Hydraulic Fracturing," accessed March 21, 2017
3. ↑ 3.0 3.1 3.2 3.3 3.4 U.S. Environmental Protection Agency, "Chapter 3. Funding and Financial Incentive Policies," accessed March 1, 2017
4. ↑ National Renewable Energy Laboratory, “State & Local Activities,” accessed January 30, 2014
5. ↑ National Conference of State Legislatures, "State Renewable Portfolio Standards and Goals," accessed March 14, 2017
6. ↑ 6.0 6.1 6.2 6.3 Institute for Energy Research, "Colorado Energy Facts," accessed March 15, 2017
7. ↑ Colorado Energy Office, "Renewable Energy Standard," accessed March 21, 2017
8. ↑ 8.0 8.1 Colorado State Legislature, "Senate Bill 13-252," accessed March 21, 2017
9. ↑ 9.0 9.1 Colorado Revised Statutes 2013, "Title 40 - Utilities," accessed March 21, 2017
10. ↑ DSIRE, "Colorado - Renewable Energy Standard," accessed March 21, 2017
11. ↑ DSIRE, "Colorado - Renewable Energy and Energy Efficiency for Schools Loan," accessed March 22, 2017
12. ↑ Colorado Energy Office, "K-12 Schools," accessed March 22, 2017
13. ↑ DSIRE, "Colorado - Building Energy Code," accessed March 21, 2017
14. ↑ Online Code Environment & Advocacy Network, "Colorado House Bill 07-1146," accessed March 21, 2017
15. ↑ Online Code Environment & Advocacy Network, "Colorado," accessed March 21, 2017
16. ↑ DSIRE, "Colorado - Greening of State Government," accessed March 21, 2017
17. ↑ Colorado State Legislature, "Senate Bill 07-051," accessed March 21, 2017
18. ↑ Database of State Incentives for Renewables and Efficiency, "Glossary," accessed October 22, 2014
19. ↑ Edison Electric Institute, "Straight Talk About Net Metering," September 2013
20. ↑ Call Me Power, "What is the difference between wholesale and retail electricity?" March 12, 2015
21. ↑ Colorado Secretary of State, "Rules Regulating Electric Utilities," accessed March 22, 2017
22. ↑ DSIRE, "Colorado - Net Metering," accessed March 22, 2017
23. ↑ DSIRE, "Net metering programs," accessed February 28, 2017
24. ↑ U.S. Energy Information Administration, "British Thermal Units (Btu)," December 15, 2014
25. ↑ 25.0 25.1 25.2 25.3 25.4 25.5 25.6 25.7 U.S. Energy Information Administration, "Colorado State Energy Profile," May 19, 2016
26. ↑ U.S. Energy Information Administration, "Table 13. Productive Capacity and Capacity Utilization of Underground Coal Mines by State and Mining Method, 2014," accessed July 19, 2016
27. ↑ U.S. Energy Information Administration, "Crude Oil Production," July 31, 2015
28. ↑ U.S. Energy Information Administration, "Natural Gas Gross Withdrawals and Production," July 31, 2015
29. ↑ Congressional Research Service, "Federal Land Ownership: Overview and Data," December 29, 2014
30. ↑ U.S. Bureau of Land Management, "Public Land Statistics 2014," May 2015
31. ↑ Western Energy Alliance, "Production," accessed November 25, 2015
32. ↑ James M. Inhofe - U.S. Senator, Oklahoma, "Inhofe Introduces Bill to Achieve Domestic Energy Independence Through State Control of Federal Energy Resources," June 26, 2013
33. ↑ U.S. Bureau of Land Management, "Oil and Gas Lease Sales," accessed October 20, 2014
34. ↑ U.S. Energy Information Administration, "British Thermal Units (Btu)," December 15, 2014
35. ↑ RWE, "How the electricity price is determined," accessed April 21, 2015
36. ↑ Forbes, "How The Price For Power Is Set," December 26, 2012
37. ↑ U.S. Energy Information Administration, "Gasoline and Diesel Fuel Update," accessed April 25, 2016
38. ↑ Tax Foundation, "How High Are Gas Taxes in Your State?" July 23, 2016
39. ↑ The Washington Post, "A (very) brief history of the state gas tax on its 95th birthday," February 25, 2014
40. ↑ American Petroleum Institute, "Motor Fuel Taxes," accessed April 27, 2016
41. ↑ U.S. Department of Transportation, "When did the Federal Government begin collecting the gas tax?" November 18, 2015
42. ↑ Business Dictionary, "Electric utility," accessed February 28, 2017
43. ↑ 43.0 43.1 U.S. Department of Energy, "A Primer on Electric Utilities, Deregulation, and Restructuring of U.S. Energy Markets," May 2002
44. ↑ 44.0 44.1 Electric Choice, "Map of Deregulated Energy States and Markets (Updated 2017)," accessed February 28, 2017
45. ↑ 45.0 45.1 Allied Power Services, "Deregulated States," accessed February 28, 2017
46. ↑ Colorado Public Utilities Commission, "About Electric," accessed March 22, 2017
47. ↑ Colorado Energy Office, "Electric Utilities," accessed March 22, 2017
48. ↑ WhatIs.com, "North American Electric Reliability Corporation (NERC)," accessed February 28, 2017
49. ↑ North American Electric Reliability Corporation, "Frequently asked questions," August 2013
50. ↑ Western Electricity Coordinating Council, "Standards," accessed March 16, 2017
51. ↑ 51.0 51.1 51.2 51.3 U.S. Department of Energy, "How Much Energy Does Your State Produce?" November 10, 2014
52. ↑ The raw data for this study was provided by Dave Leip of Atlas of U.S. Presidential Elections.
53. ↑ Academy Health, "Impact of the Economy on Health Care," August 2009
54. ↑ The Conversation, "Budget explainer: What do key economic indicators tell us about the state of the economy?" May 6, 2015
55. ↑ Health Affairs, "Socioeconomic Disparities In Health: Pathways And Policies," accessed July 13, 2015
56. ↑ The Henry J. Kaiser Family Foundation, "Distribution of Total Population by Federal Poverty Level," accessed July 17, 2015
57. ↑ The Henry J. Kaiser Family Foundation, "Median Annual Household Income," accessed July 17, 2015
58. ↑ The Henry J. Kaiser Family Foundation, "Unemployment Rate (Seasonally Adjusted)," accessed July 17, 2015
59. ↑ The Henry J. Kaiser Family Foundation, "Total Gross State Product (GSP) (millions of current dollars)," accessed July 17, 2015

v • e

State of Colorado
Denver (capital)

|

Elections |

What's on my ballot? | Elections in 2021 | How to vote | How to run for office | Ballot measures

Government |

Who represents me? | U.S. President | U.S. Congress | Federal courts | State executives | State legislature | State and local courts | Counties | Cities | School districts | Public policy

v • e

Ballotpedia

About|

Overview • What people are saying • Support Ballotpedia • Contact • Contribute • Job opportunities

* * *

Executive: Leslie Graves, President • Gwen Beattie, Chief Operating Officer • Ken Carbullido, Vice President of Election Product and Technology Strategy

Communications: Kayla Harris • Megan Brown • Mary Dunne • Sarah Groat • Lauren Nemerovski
External Relations: Alison Prange • Sara Key • Kari Berger • Hannah Nelson
Operations: Meghann Olshefski • Lauren Dixon • Kelly Rindfleisch • Sara Horton • Elizabeth Brown
Policy: Christopher Nelson • Caitlin Styrsky • Molly Byrne • Katharine Frey • Jace Lington • Jimmy McAllister
Tech: Matt Latourelle, Tech Manager • Ryan Burch • Michael Cella • Kirsten Corrao • Margaret Kearney • Tom Reitz

Contributors: Scott Rasmussen

* * *

Editorial|

Geoff Pallay, Editor-in-Chief • Daniel Anderson, Managing Editor • Josh Altic, Managing Editor • Cory Eucalitto, Managing Editor • Mandy Gillip, Managing Editor • Jerrick Adams • Victoria Antram • Dave Beaudoin • Jaclyn Beran • Marielle Bricker • Ryan Byrne • Kate Carsella • Kelly Coyle • Megan Feeney • Tyler King • Doug Kronaizl • Amee LaTour • David Luchs • Brittony Maag • Andrew McNair • Jackie Mitchell • Elisabeth Moore • Ellen Morrissey • Mackenzie Murphy • Paul Rader • Ethan Rice • Abbey Smith • Janie Valentine • Caitlin Vanden Boom • Joel Williams • Corinne Wolyniec • Samuel Wonacott • Mercedes Yanora