Senate panel advances bill to preserve microgrid grant for Rico community
March 25, 2026 | 2026 Legislature CO, Colorado
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The Senate Transportation and Energy Committee voted to refer House Bill 26-1051 to the Appropriations Committee with a favorable recommendation after hearing testimony that removing the program’s repeal date is necessary for San Miguel Power Association (SMPA) to finish a battery-backed microgrid project in Rico.
Supporters told the committee the bill is narrowly written to avoid changing current appropriations while preserving the state grant program that DOLA used to secure federal matching funds. “The elimination of the repeal date will allow for one grantee to complete a significant project that requires more time,” Marguerite Hardin of the Colorado Department of Local Affairs’ Colorado Resiliency Office said. She told senators the program’s state match ($3.2 million) helped unlock roughly $12 million in federal funds administered under the bipartisan infrastructure law.
Why it matters: Rural and high‑mountain communities frequently lack backup power options; local advocates said a microgrid in Rico, Dolores County, would keep essential services running during outages. Wiley Freeman, manager of member and energy services at SMPA, said lengthy equipment lead times and complex installation timelines put the Rico project at risk. “The Rico project risks losing funding without the passage of this bill,” he said.
Committee members questioned administrative costs and the need for a continuing FTE to close out open awards. DOLA’s Hardin said roughly two‑thirds of the state grant awards remain open along with approximately $12 million in federal awards and that staff will be needed to administer and close those grants through 2029.
The action: Senator Pelton moved to refer HB 26-1051 to Appropriations with a favorable recommendation; the committee recorded a vote of 8 to 0 in favor and referred the measure.
What’s next: The bill goes to the Appropriations Committee, where members will review fiscal details and the schedule for grant closeouts.
The sponsor said the change is intended to be limited and focused on allowing awarded projects to be completed and the state to continue administering the program. If passed into law, the change would preserve the state’s ability to meet federal match deadlines and avoid forfeiting federal funds tied to those matches.
Supporters told the committee the bill is narrowly written to avoid changing current appropriations while preserving the state grant program that DOLA used to secure federal matching funds. “The elimination of the repeal date will allow for one grantee to complete a significant project that requires more time,” Marguerite Hardin of the Colorado Department of Local Affairs’ Colorado Resiliency Office said. She told senators the program’s state match ($3.2 million) helped unlock roughly $12 million in federal funds administered under the bipartisan infrastructure law.
Why it matters: Rural and high‑mountain communities frequently lack backup power options; local advocates said a microgrid in Rico, Dolores County, would keep essential services running during outages. Wiley Freeman, manager of member and energy services at SMPA, said lengthy equipment lead times and complex installation timelines put the Rico project at risk. “The Rico project risks losing funding without the passage of this bill,” he said.
Committee members questioned administrative costs and the need for a continuing FTE to close out open awards. DOLA’s Hardin said roughly two‑thirds of the state grant awards remain open along with approximately $12 million in federal awards and that staff will be needed to administer and close those grants through 2029.
The action: Senator Pelton moved to refer HB 26-1051 to Appropriations with a favorable recommendation; the committee recorded a vote of 8 to 0 in favor and referred the measure.
What’s next: The bill goes to the Appropriations Committee, where members will review fiscal details and the schedule for grant closeouts.
The sponsor said the change is intended to be limited and focused on allowing awarded projects to be completed and the state to continue administering the program. If passed into law, the change would preserve the state’s ability to meet federal match deadlines and avoid forfeiting federal funds tied to those matches.
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