A Bill for an Act
Page 1, Line 101Concerning building decarbonization measures, and, in
Page 1, Line 102connection therewith, creating a building
Page 1, Line 103decarbonization enterprise and making an
Page 1, Line 104appropriation.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
The bill updates energy use benchmarking and performance standard requirements for owners of certain buildings (covered building owners), including:
- A requirement to meet 2040 performance standards, as adopted by the air quality control commission, in consultation with the Colorado energy office (office) and in consideration of recommendations made by a task force convened by the office;
- Authorizing an alternative compliance mechanism for covered building owners to comply with certain performance standards; and
- Aligning civil penalties owed for a violation of the benchmarking and performance standard requirements with civil penalties owed for other air quality violations.
The bill also creates a building decarbonization enterprise (enterprise) to provide financial assistance, technical assistance, and other programmatic assistance to covered building owners to effectively and efficiently implement building decarbonization measures, including energy efficiency measures, electrification measures, energy upgrades, and participation in utility on-bill repayment programs. The enterprise is authorized to impose and collect from covered building owners an annual building decarbonization fee to cover the enterprise's costs in providing the financial, technical, and programmatic assistance.
The bill exempts a local government that adopts building codes from the requirement to adopt an energy code if the local government has adopted an approved wildfire resiliency code.
This Unofficial Version Includes Committee
Amendments Not Yet Adopted on Second Reading
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 30-28-211, add (3.5)(g) as follows:
Page 2, Line 330-28-211. Energy efficient building codes - legislative
Page 2, Line 4declaration - definitions. (3.5) (g) Notwithstanding the
Page 2, Line 5requirements set forth in subsections (3.5)(a) and (3.5)(b) of this
Page 2, Line 6section, a board of county commissioners is not required to
Page 2, Line 7adopt and enforce an energy code that meets the requirements
Page 2, Line 8of subsections (3.5)(a) and (3.5)(b) of this section solely as a result of adopting the wildfire resiliency code.
Page 2, Line 9SECTION 2. In Colorado Revised Statutes, 31-15-602, add
Page 2, Line 10(3.5)(f) as follows:
Page 3, Line 131-15-602. Energy efficient building codes - legislative
Page 3, Line 2declaration - definitions - repeal. (3.5) (f) Notwithstanding the
Page 3, Line 3requirements set forth in subsections (3.5)(a) and (3.5)(b) of this
Page 3, Line 4section, a governing body of a municipality is not required to
Page 3, Line 5adopt and enforce an energy code that meets the requirements
Page 3, Line 6of subsections (3.5)(a) and (3.5)(b) of this section solely as a result of adopting the wildfire resiliency code.
Page 3, Line 7SECTION 3. In Colorado Revised Statutes, 25-7-142, amend
Page 3, Line 8(2)(s), (3), (8)(c)(III), (8)(c)(IV), and (8)(f); and add (1.5), (2)(q.5), (8.5), (8.6), (8.7), and (8.8) as follows:
Page 3, Line 925-7-142. Energy benchmarking - data collection and access
Page 3, Line 10- utility requirements - task force - rules - reports - definitions -
Page 3, Line 11legislative declaration - repeal. (1.5) The general assembly further finds and declares that:
Page 3, Line 12(a) Energy consumption by Colorado's built environment,
Page 3, Line 13including large commercial and residential properties, is a significant contributor to statewide greenhouse gas pollution;
Page 3, Line 14(b) Reducing the greenhouse gas emissions arising from
Page 3, Line 15energy consumption by the built environment is necessary to
Page 3, Line 16achieve the 2050 net-zero greenhouse gas emission reduction goal set forth in section 25-7-102 (2)(g);
Page 3, Line 17(c) The commission adopted rules establishing
Page 3, Line 18benchmarking and performance standards in August 2023 in
Page 3, Line 19accordance with subsections (8)(a)(II) and (8)(c)(II) of this section; and
Page 3, Line 20(d) In implementing the requirements of this section and
Page 3, Line 21the commission's rules adopted pursuant to this section, the
Page 4, Line 1division should, consistent with section 25-7-122 (2), consider an
Page 4, Line 2owner's effort to comply with building performance standards
Page 4, Line 3when implementing enforcement and assessing penalties pursuant to section 25-7-122 and this section.
Page 4, Line 4(2) Definitions. As used in this section, unless the context otherwise requires:
Page 4, Line 5(q.5) "Operator" means an owner, tenant, or other individual or entity:
Page 4, Line 6(I) Occupying or named on the utility bill for a covered building; and
Page 4, Line 7(II) That has access to utility data for the covered building.
Page 4, Line 8(s) "Performance standards" means standards that the commission
Page 4, Line 9establishes by rule pursuant to
subsection (8)(c)Page 4, Line 10(8.5)(a) of this section and with which owners of covered buildings are required to comply.
Page 4, Line 11(3) Benchmarking requirements on owners and operators.
Page 4, Line 12(a)
On or before December 1, 2022, and on or before June 1 of eachPage 4, Line 13
subsequent yearPage 4, Line 14adopted before July 2025, beginning in 2026 for 2025
Page 4, Line 15benchmarking data and for each subsequent year, the owner of a
Page 4, Line 16covered building shall submit a report of the benchmarking data for the previous calendar year to the office on or before November 1.
Page 4, Line 17(b) Notwithstanding subsection (3)(a) of this section,
Page 4, Line 18beginning in 2025 for 2024 benchmarking data and for each
Page 4, Line 19subsequent year, if an owner of a covered building demonstrates
Page 4, Line 20to the office that it lacks access to benchmarking data, the
Page 5, Line 1operator of the covered building shall, on or before November
Page 5, Line 21 of each year, submit to the office a report of the benchmarking data for the covered building for the previous calendar year.
Page 5, Line 3
(b)Page 5, Line 4subsection (3)(a) of this section, an owner of a covered building or
Page 5, Line 5operator shall run any automated data checking function of the benchmarking tool and correct any errors discovered.
Page 5, Line 6
(c)Page 5, Line 7(I) The owner or operator of multiple covered buildings that are part of a master metered group of buildings without submetering;
Page 5, Line 8(II) The owner or operator of a correctional facility; and
Page 5, Line 9(III) The owner or operator of a public building that is a covered building.
Page 5, Line 10(8) Task force recommendations for implementation - rules -
Page 5, Line 11repeal. (c) (III) The commission shall not adopt rules to rescind or
Page 5, Line 12modify the exemptions for owners of public buildings from payment of
Page 5, Line 13the annual fee, as set forth in section 24-38.5-112 (1)(e)(II); from
Page 5, Line 14payment of the building decarbonization fee, as set forth in
Page 5, Line 15section 24-38.5-123 (5)(b); or from payment of civil penalties, as set forthin section 25-7-122 (1)(i).
Page 5, Line 16(IV) The commission shall, as necessary, adopt rules to modify or
Page 5, Line 17continue the performance standards beyond 2030 and until 2050 in order
Page 5, Line 18to achieve or exceed greenhouse gas emission reduction targets set forth in section 25-7-102 (2)(g).
Page 5, Line 19(f) Subsections (8)(a), (8)(b), (8)(c)(I), (8)(c)(II), (8)(d), and
Page 5, Line 20(8)(e) of this section and this subsection (8)(f) are repealed, effective July 1, 2025.
Page 6, Line 1(8.5) 2040 performance standard targets - division to propose
Page 6, Line 2standards - commission to adopt rules - task force - membership -
Page 6, Line 3repeal. (a) (I) To help achieve or exceed greenhouse gas emission
Page 6, Line 4reduction targets pursuant to subsection (8)(c)(IV) of this
Page 6, Line 5section, the commission shall adopt, by rule, 2040performance standards in accordance with section 25-7-102 (2)(g).
Page 6, Line 6(II) On or before June 1, 2029, the division, after
Page 6, Line 7consultation with the office, shall consider recommendations
Page 6, Line 8from the task force created pursuant to subsection(8.5)(c)of
Page 6, Line 9this section and shall propose 2040 performance standards to
Page 6, Line 10the commission for consideration in the rules adopted pursuant to subsection (8.5)(a)(I) of this section.
Page 6, Line 11(b) (I) The division, in proposing 2040 performance
Page 6, Line 12standards, and the commission, in adopting 2040 performance
Page 6, Line 13standards, shall consider whether targets that are included in
Page 6, Line 14the 2040 performance standards to reduce emissions from
Page 6, Line 15covered buildings are consistent with meeting the economy-wide
Page 6, Line 16emission reduction goals set forth in section25-7-102 (2)(g), taking into consideration:
Page 6, Line 17(A) The capital planning periods for covered buildings;
Page 6, Line 18(B) The feasibility of an owner planning and implementing
Page 6, Line 19a building upgrade project ahead of the compliance date for the
Page 6, Line 202040 performance standard that the commission sets by rule pursuant to subsection (8.5)(a)(I) of this section; and
Page 6, Line 21(C) The practical and financial feasibility of meeting the
Page 6, Line 22targets.
Page 7, Line 1(II) The rules adopted pursuant to this subsection (8.5)
Page 7, Line 2must include a requirement that an owner of a covered building
Page 7, Line 3submit with its benchmarking report submitted in 2035 an interim
Page 7, Line 4status report regarding the owner's progress toward the 2040
Page 7, Line 5performance standards and submitted in a format determined by the office.
Page 7, Line 6(c) (I) On or before July 1, 2027, the director of the office
Page 7, Line 7shall appoint and convene a task force. The task force shall
Page 7, Line 8review the benchmarking data submitted for calendar years
Page 7, Line 92021 through 2026 and, on or before July 1, 2028, develop and
Page 7, Line 10provide recommendations to the division regarding the 2040
Page 7, Line 11performance standards, including recommendations on the
Page 7, Line 12content of the interim status reports submitted pursuant to
Page 7, Line 13rules adopted in accordance with subsection (8.5)(b)(II) of this section.
Page 7, Line 14(II) As part of the recommendations developed pursuant
Page 7, Line 15to subsection (8.5)(c)(I) of this section, the task force shall consider:
Page 7, Line 16(A) The economy-wide emission reduction goals set forth in section 25-7-102 (2)(g); and
Page 7, Line 17(B) The capital planning periods for covered buildings and
Page 7, Line 18the feasibility of an owner planning and implementing a building
Page 7, Line 19upgrade project ahead of the compliance date for the 2040
Page 7, Line 20performance standard that the commission sets by rule pursuant to subsection (8.5)(a)(I) of this section.
Page 7, Line 21(d) The task force consists of the following members, all
Page 7, Line 22of whom, except the representatives of the office, the public utilities commission, and the division, are voting members:
Page 8, Line 1(I) The director of the office or the director's designee;(II) The director of the division or the director's designee;
Page 8, Line 2(III) The director of the public utilities commission or the director's designee;
Page 8, Line 3(IV) One member who is an owner of commercial covered
Page 8, Line 4buildings or who represents owners of commercial covered buildings;
Page 8, Line 5(V) One member who is an owner of a multifamily
Page 8, Line 6residential covered building or who represents owners of multifamily residential covered buildings;
Page 8, Line 7(VI) One member who represents an affordable housing organization;
Page 8, Line 8(VII) One member who has direct experience in, or is a
Page 8, Line 9member of an organization representing workers in, mechanical,
Page 8, Line 10HVAC, or electrical work at the commercial or multifamily building level;
Page 8, Line 11(VIII) One member who represents architects;
Page 8, Line 12(IX) One member who represents professional engineers and who has experience working on systems for buildings;
Page 8, Line 13(X) One member who has extensive experience as a building operating engineer;
Page 8, Line 14(XI) One member who represents an electric utility, a gas utility, or a combined electric and gas utility;
Page 8, Line 15(XII) One member who is from an environmental
Page 8, Line 16conservation or environmental justice group with experience in
Page 8, Line 17energy efficiency or the built environment;
Page 9, Line 1(XIII) One member who is from a local government that
Page 9, Line 2has enacted or adopted a benchmarking or building energy performance ordinance or resolution;
Page 9, Line 3(XIV) Two members who have relevant building
Page 9, Line 4performance expertise, as determined by the director of the office; and
Page 9, Line 5(XV) One member representing hospitals or other health-care facilities.
Page 9, Line 6(e) An individual applying to serve on the task force must
Page 9, Line 7submit a recommendation from a member of the group that the
Page 9, Line 8individual seeks to represent on the task force or, if a trade
Page 9, Line 9organization exists that represents the group, a recommendation from the trade organization.
Page 9, Line 10(f) In making appointments to the task force, the director
Page 9, Line 11of the office shall strive to ensure varied geographic representation.
Page 9, Line 12(g) The task force shall conduct a comprehensive
Page 9, Line 13economic analysis of its recommendations for the 2040
Page 9, Line 14performance standards prior to providing the recommendations to the division.
Page 9, Line 15(8.6) Notwithstanding any rules that the commission adopts pursuant to this section before July 1, 2025:
Page 9, Line 16(a) (I) An owner of a covered building may comply with building performance standards adopted by the commission by:
Page 9, Line 17(A) Submitting complete and accurate 2019 benchmarking data to the office no later than January 1, 2026;
Page 9, Line 18(B) In 2026, achieving and maintaining a standard percent
Page 10, Line 1reduction of at least thirteen percent in comparison to the
Page 10, Line 2covered building's 2019 benchmarked baseline weather-normalized site energy use intensity; and
Page 10, Line 3(C) In 2030, achieving and maintaining a standard percent
Page 10, Line 4reduction of at least twenty-nine percent in comparison to the
Page 10, Line 5covered building's 2019 benchmarked baseline weather-normalized energy use intensity;
Page 10, Line 6(II) An owner of a covered building located within the
Page 10, Line 7jurisdiction of a local government that has adopted and
Page 10, Line 8implemented a building performance standards program or
Page 10, Line 9other similar program intended to reduce greenhouse gas
Page 10, Line 10emissions from covered buildings is deemed in compliance with
Page 10, Line 11this section and rules adopted by the commission pursuant to
Page 10, Line 12this section by complying with the requirements of the local program if:
Page 10, Line 13(A) The owner of the covered building maintains
Page 10, Line 14compliance with the local program and certifies its affirmative
Page 10, Line 15compliance status by submitting an affidavit, which affidavit
Page 10, Line 16attests that the covered building meets the requirements of the
Page 10, Line 17local program, in annual benchmarking reports submitted to the office;and
Page 10, Line 18(B) The office has determined that the greenhouse gas
Page 10, Line 19emission reductions from covered buildings complying with the
Page 10, Line 20local program are reasonably similar to the greenhouse gas
Page 10, Line 21emission reductions that would have been achieved through
Page 10, Line 22compliance with this section and the commission's rules adopted
Page 10, Line 23pursuant to this section;
Page 11, Line 1(III) A local jurisdiction that has adopted and
Page 11, Line 2implemented a building performance standards program may
Page 11, Line 3issue a certification or report to the office confirming which covered buildings are in compliance with the program; and
Page 11, Line 4(IV) Decisions made by the office regarding equivalence
Page 11, Line 5pursuant to subsection (8.6)(a)(II)(B) of this section are subject to judicial review pursuant to section 24-4-106.
Page 11, Line 6(b) (I) Notwithstanding subsection (8.6)(a) of this section
Page 11, Line 7and any rules adopted by the commission before July 1, 2025, an
Page 11, Line 8owner may either comply with the 2026 performance standards
Page 11, Line 9or, as part of the owner's benchmarking reports submitted to the office in 2026 through 2029:
Page 11, Line 10(A) Track its progress toward compliance with the performance standards;
Page 11, Line 11(B) Express any need for technical assistance from the office; and
Page 11, Line 12(C) Provide other information that the office deems
Page 11, Line 13necessary demonstrating measures planned or being taken to comply with the 2030 performance standards.
Page 11, Line 14(II) Any rules that the commission adopted before July 1,
Page 11, Line 152025, that impose additional compliance obligations upon a
Page 11, Line 16covered building owner that fails to timely meet a building
Page 11, Line 17performance standard do not apply until 2031 for the 2030 building performance standards.
Page 11, Line 18(III) The office shall prioritize any grant money that is made available for owners of covered buildings:
Page 11, Line 19(A) That comply with or establish plans to go beyond the 2026 performance standards; or
Page 12, Line 1(B) That comply with the 2030 performance standard
Page 12, Line 2early or establish plans to go beyond the 2030 performance standards.
Page 12, Line 3(IV) Nothing in this subsection (8.6)(b) precludes or
Page 12, Line 4modifies the division's authority to enforce against an owner of
Page 12, Line 5a covered building for noncompliance with 2030 performance standards or performance standards set for subsequent years.
Page 12, Line 6(8.7) Notwithstanding the requirements of subsection
Page 12, Line 7(8)(a)(II) of this section or rules adopted pursuant to that
Page 12, Line 8subsection, subsection (8.6) of this section is necessary for
Page 12, Line 9covered buildings to effectively implement the performance
Page 12, Line 10standards. The commission is not required to revise rules that were adopted pursuant to this section before July 1, 2025.
Page 12, Line 11(8.8) Energy use that a covered building owner
Page 12, Line 12demonstrates is attributable to electric vehicle charging shall
Page 12, Line 13not be included in a covered building's total energy usage for purposes of compliance with building performance standards.
Page 12, Line 14SECTION 4. In Colorado Revised Statutes, add24-38.5-123 as follows:
Page 12, Line 1524-38.5-123. Building decarbonization enterprise - creation
Page 12, Line 16- membership - powers and duties - building decarbonization
Page 12, Line 17enterprise cash fund - legislative declaration - definitions - rules -
Page 12, Line 18report - repeal. (1) Legislative declaration. (a) The general assembly finds that:
Page 12, Line 19(I) Reducing greenhouse gas emissions from combustion
Page 12, Line 20devices in residential and commercial buildings:
Page 13, Line 1(A) Is necessary to help the state achieve its statewide
Page 13, Line 2greenhouse gas emission reduction goals set forth in section
Page 13, Line 325-7-102 (2)(g), including the goal to reach net-zero greenhouse gas emissions by 2050; and
Page 13, Line 4(B) Presents significant opportunities to lower and
Page 13, Line 5stabilize energy bills, provide for more comfortable living and
Page 13, Line 6working spaces, and reduce local air pollution that contributes to ground-level ozone;
Page 13, Line 7(II) Covered building owners are required to comply with
Page 13, Line 8benchmarking requirements and performance standard
Page 13, Line 9requirements and would benefit from additional financial and technical assistance to meet those requirements; and
Page 13, Line 10(III) With additional financing and technical assistance,
Page 13, Line 11covered building owners may more effectively and efficiently
Page 13, Line 12implement building decarbonization measures, including, but not limited to, programs that:
Page 13, Line 13(A) Help finance energy efficiency measures, electrification measures, and other energy upgrades; and
Page 13, Line 14(B) Provide assistance for conducting building energy
Page 13, Line 15audits, developing analyses to help building owners evaluate
Page 13, Line 16the best strategies for achieving future performance standard
Page 13, Line 17targets, employing or consulting with building engineers,
Page 13, Line 18purchasing energy use tracking software for covered building
Page 13, Line 19owners to more effectively track energy use, and providing training on such software.
Page 13, Line 20(b) Now, therefore, the general assembly declares that:
Page 13, Line 21(I) It is in the public interest to create an enterprise
Page 14, Line 1within the office that is committed to financing and providing
Page 14, Line 2technical and other support for the implementation of building decarbonization measures;
Page 14, Line 3(II) The activities of the enterprise shall be funded by
Page 14, Line 4revenue generated from a building decarbonization fee paid by
Page 14, Line 5covered building owners and any gifts, grants, and donations received;
Page 14, Line 6(III) It is appropriate that covered building owners should
Page 14, Line 7pay a building decarbonization fee, as covered building owners
Page 14, Line 8are the direct beneficiaries of services provided by the
Page 14, Line 9enterprise, which services include the financing and technical
Page 14, Line 10assistance provided for the building decarbonization measures described in subsection (1)(a)(III) of this section;
Page 14, Line 11(IV) Covered building owners benefit from the
Page 14, Line 12implementation of building decarbonization measures because such measures can:
Page 14, Line 13(A) Reduce covered building owners' long-term costs related to energy use;
Page 14, Line 14(B) Improve building comfort; and
Page 14, Line 15(C) Increase the market value and desirability of covered buildings to tenants;
Page 14, Line 16(V) Consistent with the determination of the Colorado
Page 14, Line 17supreme court in Nicholl v. E-470 Public Highway Authority, 896
Page 14, Line 18P.2d 859 (Colo. 1995), that the power to impose taxes is
Page 14, Line 19inconsistent with enterprise status under section 20 of article
Page 14, Line 20X of the state constitution, the general assembly concludes
Page 14, Line 21that the building decarbonization fee is a fee, not a tax, and the
Page 15, Line 1enterprise operates as a business because the building decarbonization fee is:
Page 15, Line 2(A) Imposed for the specific business purposes of providing
Page 15, Line 3financing and technical assistance to covered building owners
Page 15, Line 4to more effectively and efficiently implement building
Page 15, Line 5decarbonization measures, including feasibility analyses and improvements that will reduce energy use and emissions; and
Page 15, Line 6(B) Collected at a rate that is reasonably related to the overall cost of the business services being provided; and
Page 15, Line 7(VI) So long as the enterprise qualifies as an enterprise
Page 15, Line 8for purposes of section 20 of article X of the state constitution,
Page 15, Line 9the revenue from the building decarbonization fee imposed,
Page 15, Line 10collected, and administered by the enterprise is not state fiscal
Page 15, Line 11year spending, as defined in section 24-77-102 (17), or state
Page 15, Line 12revenues, as defined in section 24-77-103.6 (6)(c), and does not
Page 15, Line 13count against either the state fiscal year spending limit imposed
Page 15, Line 14by section 20 of article X of the state constitution or the excess state revenues cap, as defined in section 24-77-103.6 (6)(b)(I)(G).
Page 15, Line 15(2) As used in this section, unless the context otherwise requires:
Page 15, Line 16(a) "Benchmarking requirements" means the energy
Page 15, Line 17benchmarking requirements set forth in section 25-7-142 (3) with
Page 15, Line 18which an owner or operator of a covered building is required to comply.
Page 15, Line 19(b) "Board" means the board of directors of the enterprise appointed pursuant to subsection (4)(a) of this section.
Page 15, Line 20(c) "Building decarbonization enterprise cash fund" or
Page 16, Line 1"building decarbonization fund" means the building
Page 16, Line 2decarbonization enterprise cash fund created in subsection(6)(a) of this section.
Page 16, Line 3(d) "Building decarbonization fee" or "fee" means the fee
Page 16, Line 4paid by the owner of a covered building pursuant to subsection(5)(b) of this section.
Page 16, Line 5(e) "Covered building" has the meaning set forth in section 25-7-142 (2)(j).
Page 16, Line 6(f) "Covered building owner" means an "owner", as defined in section 25-7-142 (2)(r), of a covered building.
Page 16, Line 7(g) "Enterprise" means the building decarbonization enterprise created in subsection (3) of this section.
Page 16, Line 9(h) "Inflation" means the annual percentage change in the
Page 16, Line 10in the United States department of labor's bureau of labor
Page 16, Line 11statistics consumer price index, or a successor index, for
Page 16, Line 12Denver-Aurora-Lakewood for all items paid for by urban consumers.
Page 16, Line 13(i) "Office" means the Colorado energy office created in section 24-38.5-101.
Page 16, Line 14(j) "On-bill program" means a utility's on-bill
Page 16, Line 15program through which energy efficiency measures,
Page 16, Line 16electrification measures, and energy upgrades installed at a
Page 16, Line 17participating customer's premises that is associated with the
Page 16, Line 18utility meter are financed through loans that are repaid through monthly utility bill payments.
Page 16, Line 19(k) "Performance standards" has the meaning set forth in section 25-7-142 (2)(s).
Page 17, Line 2(3) Enterprise created - loan from the office - repayment.
Page 17, Line 3(a) The building decarbonization enterprise is created in the
Page 17, Line 4office and exercises its powers and performs its duties and
Page 17, Line 5functions as a government-owned business in the office to
Page 17, Line 6execute its business purposes set forth in this subsection (3). The enterprise is created for the purposes of:
Page 17, Line 7(I) Imposing and assessing a building decarbonization fee on owners of covered buildings;
Page 17, Line 8(II) Providing technical assistance, financing, and other
Page 17, Line 9programmatic support for covered building owners' building
Page 17, Line 10decarbonization measures, including, but not limited to,
Page 17, Line 11conducting building energy audits, developing analyses to help
Page 17, Line 12building owners evaluate the best strategies for achieving
Page 17, Line 13future performance standard targets, consulting building
Page 17, Line 14engineers, purchasing energy use tracking software, and providing training on such software;
Page 17, Line 15(III) Having and exercising all rights and powers
Page 17, Line 16necessary or incidental to or implied from the specific powers and duties granted under this section; and
Page 17, Line 17(IV) Ensuring that the building decarbonization fee paid
Page 17, Line 18by covered building owners is used solely to support programs,
Page 17, Line 19technical assistance, and financial assistance for the covered building owners that pay the building decarbonization fee.
Page 17, Line 20(b) The board, in consultation with the office, shall
Page 17, Line 21administer the enterprise in accordance with this section.
Page 18, Line 1(c) (I) The enterprise constitutes an enterprise for
Page 18, Line 2purposes of section 20 of article X of the state constitution so
Page 18, Line 3long as it retains the authority to issue revenue bonds and
Page 18, Line 4receives less than ten percent of its total revenues in grants, as
Page 18, Line 5defined in section 24-77-102 (7), from all Colorado state and
Page 18, Line 6local governments combined. So long as it constitutes an
Page 18, Line 7enterprise, the enterprise is not subject to section 20 of article X of the state constitution.
Page 18, Line 8(II) The enterprise is authorized to issue revenue bonds for
Page 18, Line 9the expenses of the enterprise, secured by revenue of the enterprise.
Page 18, Line 10(d) (I) The office may transfer money from any legally
Page 18, Line 11available source to the enterprise for the purpose of defraying
Page 18, Line 12expenses incurred by the enterprise before it receives fee
Page 18, Line 13revenue. The enterprise may accept and expend any money so
Page 18, Line 14transferred, and, notwithstanding any state fiscal rule or
Page 18, Line 15generally accepted accounting principle that could otherwise
Page 18, Line 16be interpreted to require a contrary conclusion, such a
Page 18, Line 17transfer is a loan from the office to the enterprise that is
Page 18, Line 18required to be repaid and is not a grant for purposes of section
Page 18, Line 1920 (2)(d) of article X of the state constitution or as defined in section 24-77-102 (7).
Page 18, Line 20(II) As the enterprise receives sufficient revenue in excess
Page 18, Line 21of its expenses, the enterprise shall reimburse the office for the
Page 18, Line 22principal amount of any loan made by the office, plus interest at a rate agreed upon by the office and the enterprise.
Page 18, Line 23(4) Enterprise board of directors created - membership -
Page 19, Line 1duties - repeal. (a) The enterprise board of directors is created to
Page 19, Line 2administer the enterprise. The board consists of the following nine members:
Page 19, Line 3(I) The following six members appointed by the governor and confirmed by the senate:
Page 19, Line 4(A) A representative of residential buildings;
Page 19, Line 5(B) Two representatives of commercial buildings, such as offices, mixed-use properties, multifamily homes, or hospitals;
Page 19, Line 6(C) An expert in building energy efficiency and decarbonization;
Page 19, Line 7(D) A local government representative with expertise in planning, energy codes, or building decarbonization;
Page 19, Line 8(E) A utility representative;
(II) The director of the office or the director's designee;
Page 19, Line 9(III) The executive director of the department of public
Page 19, Line 10health and environment or the executive director's designee; and
Page 19, Line 11(IV) The director of the public utilities commission or the director's designee.
Page 19, Line 12(b) (I) The governor shall appoint initial members to the
Page 19, Line 13board pursuant to subsection (4)(a)(I) of this section on or before September 1, 2025.
Page 19, Line 14(II) This subsection (4)(b) is repealed, effective July 1, 2026.
Page 19, Line 15(c) (I) Board members appointed pursuant to subsection
Page 19, Line 16(4)(a)(I) of this section serve three-year terms. A board member may serve an unlimited number of terms.
Page 19, Line 17(II) Notwithstanding subsection (4)(c)(I) of this section,
Page 20, Line 1the governor shall make the initial terms of two of the board
Page 20, Line 2members who are appointed pursuant to subsection (4)(a)(I) of this section two years.
Page 20, Line 3(d) Board members serving pursuant to subsection (4)(a)(I)
Page 20, Line 4of this section may receive compensation from the enterprise on
Page 20, Line 5a per diem basis for reasonable expenses actually incurred in the performance of their duties.
Page 20, Line 6(e) (I) The chair and vice-chair of the board are selected
Page 20, Line 7by the members of the board in accordance with the board's bylaws.
Page 20, Line 8(II) (A) The director of the office or the director's
Page 20, Line 9designee shall call the first meeting of the board, and the board
Page 20, Line 10shall select the chair and vice-chair at that meeting in accordance with subsection (4)(e)(I) of this section.
Page 20, Line 11(B) This subsection (4)(e)(II) is repealed, effective July 1, 2026.
Page 20, Line 12(5) Powers and duties - building decarbonization fee. (a) In
Page 20, Line 13addition to any other powers and duties specified in this section,
Page 20, Line 14the board has the following powers and duties on behalf of the enterprise:
Page 20, Line 15(I) To adopt procedures for conducting the board's affairs;
Page 20, Line 16(II) To engage the services of contractors, consultants,
Page 20, Line 17the division of administration described in section 25-1-102 (2)(a),
Page 20, Line 18and the staff of the office for professional and technical
Page 20, Line 19assistance and advice and to supply other services related to
Page 20, Line 20the conduct of the affairs of the enterprise without regard to
Page 21, Line 1the "Procurement Code", articles 101 to 112 of title 24. The
Page 21, Line 2enterprise shall engage the attorney general's office for legal
Page 21, Line 3services. The enterprise may contract with the office for the
Page 21, Line 4provision of office space and administrative staff to the enterprise at a fair market rate.
Page 21, Line 5(III) To establish and administer a program through which
Page 21, Line 6owners of covered buildings may apply for, and the board may
Page 21, Line 7review and approve applications for, financing or technical
Page 21, Line 8assistance for building decarbonization measures, including, but
Page 21, Line 9not limited to, participating in programs that help finance
Page 21, Line 10energy efficiency measures, electrification measures, and other
Page 21, Line 11energy upgrades; conducting building energy audits; employing
Page 21, Line 12or consulting with building engineers; and purchasing energy use tracking software and providing training on such software;
Page 21, Line 13(IV) To impose the building decarbonization fee described in subsection (5)(b) of this section; and
Page 21, Line 14(V) To have and exercise all rights and powers necessary
Page 21, Line 15or incidental to or implied from the specific powers and duties granted by this section.
Page 21, Line 16(b) (I) Beginning in state fiscal year 2026-27 and in
Page 21, Line 17furtherance of the enterprise's business purposes, the board
Page 21, Line 18shall adopt rules for the purpose of setting the amount of the
Page 21, Line 19building decarbonization fee at the maximum amount authorized
Page 21, Line 20in this section to be imposed upon all covered building owners;
Page 21, Line 21except that the fee shall not be imposed on the owner of a public building, as defined in section 25-7-142 (2)(t).
Page 21, Line 22(II) On or before November 1, 2025, and on or before each
Page 22, Line 1November 1 of each year thereafter, and except as provided in
Page 22, Line 2subsection (5)(b)(III) of this section, each owner of a covered
Page 22, Line 3building shall pay a building decarbonization fee in an amount
Page 22, Line 4of four hundred dollars to the office, which shall collect the building decarbonization fee on behalf of the enterprise.
Page 22, Line 5(III) Beginning in state fiscal year 2027-28, the board may
Page 22, Line 6increase the building decarbonization fee from the previous
Page 22, Line 7year's building decarbonization fee, as adjusted for inflation
Page 22, Line 8and, on or before March 15 of each of the state fiscal years
Page 22, Line 9thereafter, shall notify the office of the adjusted amount of
Page 22, Line 10the building decarbonization fee, if the building decarbonization
Page 22, Line 11fee has been adjusted. On or before April 15 of each of the state
Page 22, Line 12fiscal years thereafter, the enterprise shall publish the updated amount of the fee on the enterprise's website.
Page 22, Line 13(IV) Money collected as a building decarbonization fee
Page 22, Line 14shall be credited to the building decarbonization enterprise cash fund.
Page 22, Line 15(V) Money collected by the office for transfer to the
Page 22, Line 16building decarbonization fund pursuant to subsection (5)(b)(IV) of this section:
Page 22, Line 17(A) Is collected for the enterprise;
Page 22, Line 18(B) Is custodial money intended for the enterprise and
Page 22, Line 19held temporarily by the office and the state treasurer solely
Page 22, Line 20for the purpose of transferring the money to the building decarbonization fund for use by the enterprise; and
Page 22, Line 21(C) Based on the enterprise's status as an enterprise, is
Page 22, Line 22not subject to section 20 of article X of the state constitution at any time during the money's collection, transfer, and use.
Page 23, Line 1(6) Building decarbonization enterprise cash fund - creation
Page 23, Line 2- repeal. (a) The building decarbonization enterprise cash fund
Page 23, Line 3is created in the state treasury. The building decarbonization fund consists of:
Page 23, Line 4(I) Money received from a building decarbonization fee imposed pursuant to subsection (5)(b) of this section;
Page 23, Line 5(II) Any money received from the issuance of revenue bonds, as described in subsection (3)(c)(II) of this section; and
Page 23, Line 6(III) Any other money that the general assembly may appropriate or transfer to the building decarbonization fund.
Page 23, Line 7(b) (I) Section 24-77-108 does not apply to the enterprise
Page 23, Line 8because the total amount of money credited or appropriated to
Page 23, Line 9the building decarbonization fund as a building decarbonization
Page 23, Line 10fee shall not exceed one hundred million dollars in the first five fiscal years of the enterprise's existence.
Page 23, Line 11(II) This subsection (6)(b) is repealed, effective July 1, 2031.
Page 23, Line 12(c) Subject to annual appropriation by the general
Page 23, Line 13assembly, the enterprise may expend money from the building
Page 23, Line 14decarbonization fund for the purposes set forth in this section
Page 23, Line 15and to pay the enterprise's reasonable and necessary operating
Page 23, Line 16expenses. The state treasurer shall credit all interest and
Page 23, Line 17income derived from the deposit and investment of money in the
Page 23, Line 18building decarbonization fund to the building decarbonization fund.
Page 23, Line 19(d) Any unexpended and unencumbered money remaining
Page 23, Line 20in the building decarbonization fund at the end of a fiscal year
Page 24, Line 1remains in the building decarbonization fund and is not credited or transferred to the general fund.
Page 24, Line 2(7) Legislative review of building decarbonization enterprise.
Page 24, Line 3On or before December 1 of each year, the enterprise shall
Page 24, Line 4submit an annual report to the general assembly detailing the
Page 24, Line 5enterprise's expenditures and program outcomes from the
Page 24, Line 6preceding year and the enterprise's financial projections for the following year.
Page 24, Line 7SECTION 5. In Colorado Revised Statutes, 25-7-122, amend(1)(i) as follows:
Page 24, Line 825-7-122. Civil penalties - rules - definitions. (1) Upon
Page 24, Line 9application of the division, the division may collect penalties as
Page 24, Line 10determined under this article 7 by instituting an action in the district court
Page 24, Line 11for the district in which the air pollution source affected is located, in accordance with the following provisions:
Page 24, Line 12 (i) (I) On and after
January 1, 2024Page 24, Line 13as provided in subsection (1)(i)(II) of this section, an owner of a covered
Page 24, Line 14building that violates section 25-7-142
(3) or (6)Page 24, Line 15the commission to implement section 25-7-142 is subject to a civil penalty of:
Page 24, Line 16(A) Up to
five hundredPage 24, Line 17for every thirty days that the owner is in violation for a first
Page 24, Line 18violation,
and up to two thousand dollars for each subsequent violation.Page 24, Line 19
As part of the requirement that the commission adopt rules to establishPage 24, Line 20
performance standards pursuant to section 25-7-142 (8)(c), thePage 24, Line 21
commission shall establish by rule, with regard to a violation of thePage 24, Line 22
performance standards, civil penalties in an amount not to exceed twoPage 25, Line 1
thousand dollars for a first violation and five thousand dollars for aPage 25, Line 2
subsequent violation.Page 25, Line 3annually adjust based on the annual percentage change in the
Page 25, Line 4United States department of labor's bureau of labor statistics
Page 25, Line 5consumer price index, or a successor index, for
Page 25, Line 6Denver-Aurora-Lakewood for all items paid for by urban consumers; and
Page 25, Line 7(B) For each subsequent violation, up to five thousand
Page 25, Line 8eight hundred dollars for every thirty days that the owner is
Page 25, Line 9in violation, which amount the commission may, by rule,
Page 25, Line 10annually adjust in accordance with subsection (1)(i)(I)(A) of this section.
Page 25, Line 11(II) The division shall not assess a civil penalty for a violation related to a public building.
Page 25, Line 12(II.5) Notwithstanding rules that the commission adopted
Page 25, Line 13before July 1, 2025, a civil penalty for a violation of section
Page 25, Line 1425-7-142 or rules adopted by the commission to implement section
Page 25, Line 1525-7-142 shall be determined in a manner consistent with this subsection (1)(i) and subsection (2) of this section.
Page 25, Line 16(III) Notwithstanding section 25-7-129,
the division shall transmitPage 25, Line 17civil penalties collected pursuant to
this subsection (1)(i) to the statePage 25, Line 18
treasurer, whoPage 25, Line 19buildings for a violation of section 25-7-142 or rules adopted by
Page 25, Line 20the commission to implement section 25-7-142, shall
credit themPage 25, Line 21credited to the climate change mitigation and adaptation fund created in section 24-38.5-102.6.
Page 25, Line 22
(IV) As used in this subsection (1)(i):Page 26, Line 1
(A) "Covered building" has the meaning set forth in section 25-7-142 (2)(j).Page 26, Line 2
(B) "Owner" has the meaning set forth in section 25-7-142 (2)(r).Page 26, Line 3SECTION 6. In Colorado Revised Statutes, 24-38.5-403, add (4) as follows:
Page 26, Line 424-38.5-403. Energy code training - energy code adoption -
Page 26, Line 5grant writing assistance. (4) Notwithstanding subsection (3) of
Page 26, Line 6this section, the Colorado energy office may use funding
Page 26, Line 7provided through subsection (3) of this section to cover the costs of the following:
Page 26, Line 8(a) The energy code board convened pursuant to section 24-38.5-401 (2);
Page 26, Line 9(b) The task force created in section 25-7-142 (8.5); and
Page 26, Line 10(c) The costs to the Colorado energy office for
Page 26, Line 11participating in rule-making that the air quality control commission engages in pursuant to section 25-7-142.
Page 26, Line 12SECTION 7. In Colorado Revised Statutes, 24-38.5-102.6, amend (1) introductory portion and (1)(a) as follows:
Page 26, Line 1324-38.5-102.6. Climate change mitigation and adaptation fund
Page 26, Line 14- creation - use. (1) The climate change mitigation and adaptation fund,
Page 26, Line 15referred to in this section as the "fund", is
herebyPage 26, Line 16(a) Civil penalties assessed pursuant to section 25-7-122 (1)(b) and credited to the fund pursuant to section 25-7-122 (1)(i)(III);
Page 26, Line 17SECTION 8. In Colorado Revised Statutes, 24-38.5-112, amend(1)(a)(III) and (1)(a)(IV); and add (1)(a)(V) as follows:
Page 26, Line 1824-38.5-112. Building performance program - duties of the
Page 27, Line 1office - county assessor records database - fees - definitions. (1) The
Page 27, Line 2Colorado energy office shall implement a building performance program as follows:
Page 27, Line 3(a) Based on county assessor records and other available sources
Page 27, Line 4of information, the office shall administer the building performance program by:
Page 27, Line 5(III) Maintaining a list of noncompliant owners;
andPage 27, Line 6(IV) In a form and manner determined by the office, in
Page 27, Line 7consultation with the division of administration in the department of
Page 27, Line 8public health and environment, periodically providing the division with
Page 27, Line 9a list of noncompliant owners for the division's enforcement of the
Page 27, Line 10building performance program pursuant to
section 25-7-122 (1)(i)Page 27, Line 11SECTION 9. Appropriation. (1) For the 2025-26 state fiscal
Page 27, Line 12year, $1,992,000 is appropriated to the office of the governor for use by
Page 27, Line 13the Colorado energy office. This appropriation is from the building
Page 27, Line 14decarbonization enterprise cash fund created in section 25-7-142.5 (6)(a),
Page 27, Line 15C.R.S. To implement this act, the office may use this appropriation for the building decarbonization enterprise.
Page 27, Line 16SECTION 10. Effective date - applicability. (1) This act takes
Page 27, Line 17effect upon passage; except that section 4 of this act takes effect only if House Bill 25-1268 does not become law.
Page 27, Line 18(2) This act applies to conduct occurring on or after the effective date of this act.
Page 27, Line 19SECTION 11. Safety clause. The general assembly finds,
Page 27, Line 20determines, and declares that this act is necessary for the immediate
Page 27, Line 21preservation of the public peace, health, or safety or for appropriations for
Page 28, Line 1the support and maintenance of the departments of the state and state institutions.