USPSA president Phil Strader shared more details on the Combat Optic division on comment section of USPSA's FaceBook. In short,
1. CO will be open to any pistol on the approved Production Division list, provided that it does not exceed the 35oz weight limit (with empty magazine inserted) and is a semi-auto pistol.
2. The optics used must be attached to the slide between the rear of the ejection port and the rear of the slide.
3. We intend to approve the division for Level 1 match use after it is entered into EZWin Score. Ken Nelson has already communicated that it would be an easy update to Practiscore, as well.
4. CO High Hit Factors will be established based on stats analysis using data from Production to come up with a starting point.
Strader also reminded that this is a provisional division and USPSA will re-evaluate the division at the end of year.
The intent seems to be putting optics on top of production guns. Strader states,
I would recommend that members NOT do any modifications to their existing Production guns that would not be allowed Production Division.
In the main body of the post, Strader mentioned that the creation of the division was influenced by some manufacturers' "perception that their guns were no longer competitive in Production [division]." There seems to be some perception that production division is heading towards heavier guns such as CZ SP-01 or Tanfoglios.
Edit: Here is the Appendix for the Combat Optics Division
From: USPSA Facebook