The 120th day 2026 Colorado legislative session concluded on May 13, 2026 after lawmakers navigated budget shortages and wrapped up the final session of Governor Jared Polis’s administration.

For Western Resilience Center and Northwest Colorado, the session produced several meaningful policy wins that advance climate resilience, strengthen local economies, and support long term sustainability across water, energy, transportation and waste systems.

The work was led in many cases by our local elected officials, Senator Dylan Roberts (SD8) and Representative Meghan Lukens (HD26), and reflects ongoing recognition that resilient infrastructure and economic diversification must go hand-in-hand.

Below, we highlight five notable legislative wins that support real progress toward a more resilient Colorado and Yampa Valley. From investing in watershed health, responsible electrification, and next-generation energy systems to preserving regional rail corridors and expanding transit-oriented development, the 2026 session demonstrated growing momentum around solutions that benefit people, communities and the environment.

Land and Water

HB26-1338: 2026 Water Projects Bill

Colorado’s annual Water Projects Bill makes critical investments in water resilience statewide. HB26-1338 appropriates $37.7 million from the Water Plan Implementation Cash Fund for projects focused on water conservation, storage, agricultural efficiency, and watershed health.

The legislation also funds important hydrologic monitoring and forecasting tools, including continued satellite monitoring and water forecasting partnerships that improve drought preparedness and long-term water planning. Additional investments in watershed restoration, flood mitigation, and fish and wildlife resources will help strengthen ecosystem resilience throughout Northwest Colorado and across the state.

In an era of increasing drought pressure, wildfire risk, and hydrologic uncertainty, these investments are essential for protecting both communities and natural systems.

Energy

HB26-1326: Sunset Public Utilities Commission

HB26-1326 reauthorizes the Colorado Public Utilities Commission (PUC) through 2037 while modernizing and strengthening its oversight responsibilities. The PUC plays a central role in implementing Colorado’s clean energy transition, including utility regulation, greenhouse gas reduction goals, and building decarbonization efforts.

The bill also includes updates intended to improve investor-owned utility customer-facing energy programs, such as battery storage incentives and rebate programs. Continued authorization of the PUC provides important regulatory certainty as Colorado works to transition away from coal while supporting communities, workers, and local economies through that transition.

SB26-142: Development of Thermal Energy Resources

SB26-142 expands opportunities for local governments and utilities to develop thermal energy networks and community geothermal systems. The bill authorizes and makes it easier for local governments to finance and build thermal energy infrastructure. The bill also supports the use of geothermal for building heating, cooling, and snowmelt applications.

By encouraging the productive use of geothermal resources and recovered thermal energy, the bill supports innovative approaches to reduce building emissions and improve local energy resilience.

Transportation

HB26-1065: Transit and Housing Investment Zones

HB26-1065 creates a new financing mechanism that allows local governments and transit agencies to establish designated transit investment zones tied to housing and infrastructure development. The bill enables certain state sales tax revenues generated within these zones to be reinvested to support public transit and community infrastructure improvements.

The legislation builds upon the State’s growing commitment to transit-oriented development by better aligning housing growth with multimodal transportation investments. For rural and mountain communities facing both housing shortages and transportation challenges, this approach can help reduce traffic congestion, lower vehicle miles traveled (VMT), and support the long-term viability of regional transit systems such as the Yampa Valley Regional Transportation Authority.

Waste

SB26-003: End-of-Life Management of Electric Vehicle Batteries

As electric vehicle (EV) adoption accelerates, Colorado is taking proactive steps to address the lifecycle impacts of EV batteries. SB26-003 establishes a framework for the responsible reuse and recycling of used EV batteries while assigning manufacturers responsibility for proper battery collection and management.

This policy helps ensure that batteries are safely recycled rather than improperly stored or discarded, reducing environmental risks and supporting a more circular clean energy economy. The bill also reinforces public confidence in EV expansion by pairing transportation electrification goals with responsible waste management practices.

Looking Ahead

As demonstrated through Western Resilience Center’s partnership with the Colorado Energy Office and their rolling out of the Climate Impact Accelerator Funding during 2025-2026, where we worked with regional governments to help identify and pursue funding to support decarbonization policies and projects, we look forward to continuing to work with local governments, regional partners, state leaders, and community stakeholders to ensure these policies translate into durable, on-the-ground benefits for Northwest Colorado and the Yampa Valley.

Matt Kireker is the Policy Director at Western Resilience Center.