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.
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 (3.5)(f) as follows:
Page 2, Line 1031-15-602. Energy efficient building codes - legislative
Page 3, Line 1declaration - definitions - repeal. (3.5) (f) Notwithstanding the
Page 3, Line 2requirements set forth in subsections (3.5)(a) and (3.5)(b) of this
Page 3, Line 3section, a governing body of a municipality is not required to
Page 3, Line 4adopt and enforce an energy code that meets the requirements
Page 3, Line 5of subsections (3.5)(a) and (3.5)(b) of this section solely as a result of adopting the wildfire resiliency code.
Page 3, Line 6SECTION 3. In Colorado Revised Statutes, 25-7-142, amend
Page 3, Line 7(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 825-7-142. Energy benchmarking - data collection and access
Page 3, Line 9- utility requirements - task force - rules - reports - definitions -
Page 3, Line 10legislative declaration - repeal. (1.5) The general assembly further finds and declares that:
Page 3, Line 11(a) Energy consumption by Colorado's built environment,
Page 3, Line 12including large commercial and residential properties, is a significant contributor to statewide greenhouse gas pollution;
Page 3, Line 13(b) Reducing the greenhouse gas emissions arising from
Page 3, Line 14energy consumption by the built environment is necessary to
Page 3, Line 15achieve the 2050 net-zero greenhouse gas emission reduction goal set forth in section 25-7-102 (2)(g);
Page 3, Line 16(c) The commission satisfied the objectives set forth in
Page 3, Line 17subsections (8)(a)(II) and (8)(c)(II) of this section by adopting
Page 3, Line 18benchmarking and performance standard rules in August 2023; and
Page 3, Line 19(d) In implementing the requirements of this section and
Page 3, Line 20the commission's rules adopted pursuant to this section, the
Page 3, Line 21division should, consistent with section 25-7-122 (2), consider an
Page 4, Line 1owner's effort to comply with building performance standards
Page 4, Line 2when implementing enforcement and assessing penalties pursuant to section 25-7-122 and this section.
Page 4, Line 3(2) Definitions. As used in this section, unless the context otherwise requires:
Page 4, Line 4(q.5) "Operator" means an owner, tenant, or other individual or entity:
Page 4, Line 5(I) Occupying or named on the utility bill for a covered building; and
Page 4, Line 6(II) That has access to utility data for the covered building.
Page 4, Line 7(s) "Performance standards" means standards that the commission
Page 4, Line 8establishes by rule pursuant to
subsection (8)(c)Page 4, Line 9(8.5)(a) of this section and with which owners of covered buildings are required to comply.
Page 4, Line 10(3) Benchmarking requirements on owners and operators.
Page 4, Line 11(a)
On or before December 1, 2022, and on or before June 1 of eachPage 4, Line 12
subsequent yearPage 4, Line 13adopted before July 2025, beginning in 2026 for 2025
Page 4, Line 14benchmarking data and for each subsequent year, the owner of a
Page 4, Line 15covered 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 16(b) Notwithstanding subsection (3)(a) of this section, if an
Page 4, Line 17owner of a covered building demonstrates to the office that it
Page 4, Line 18lacks access to benchmarking data, the operator of the covered
Page 4, Line 19building shall, on or before November 1 of each year, submit to
Page 4, Line 20the office a report of the benchmarking data for the covered building for the previous calendar year.
Page 5, Line 1
(b)Page 5, Line 2subsection (3)(a) of this section, an owner of a covered building or
Page 5, Line 3operator shall run any automated data checking function of the benchmarking tool and correct any errors discovered.
Page 5, Line 4
(c)Page 5, Line 5(I) The owner or operator of multiple covered buildings that are part of a master metered group of buildings without submetering;
Page 5, Line 6(II) The owner or operator of a correctional facility; and
Page 5, Line 7(III) The owner or operator of a public building that is a covered building.
Page 5, Line 8(8) Task force recommendations for implementation - rules -
Page 5, Line 9repeal. (c) (III) The commission shall not adopt rules to rescind or
Page 5, Line 10modify the exemptions for owners of public buildings from payment of
Page 5, Line 11the annual fee, as set forth in section 24-38.5-112 (1)(e)(II); from
Page 5, Line 12payment of the building decarbonization fee, as set forth in
Page 5, Line 13section 24-38.5-123 (5)(b); or from payment of civil penalties, as set forth in
section 25-7-122 (1)(i)Page 5, Line 14(IV) The commission shall, as necessary, adopt rules to modify or
Page 5, Line 15continue the performance standards beyond 2030 and until 2050 in order
Page 5, Line 16to achieve or exceed greenhouse gas emission reduction targets set forth in section 25-7-102 (2)(g).
Page 5, Line 17(f) Subsections (8)(a), (8)(b), (8)(c)(I), (8)(c)(II), (8)(d), and
Page 5, Line 18(8)(e) of this section and this subsection (8)(f) are repealed, effective July 1, 2025.
Page 5, Line 19(8.5) 2040 performance standard targets - division to propose
Page 6, Line 1standards - commission to adopt rules - task force - membership -
Page 6, Line 2repeal. (a) (I) To help achieve or exceed greenhouse gas emission
Page 6, Line 3reduction targets pursuant to subsection (8)(c)(IV) of this
Page 6, Line 4section, the commission shall adopt rules to develop 2040 performance standards.
Page 6, Line 5(II) On or before March 31, 2029, the division, after
Page 6, Line 6consultation with the office, shall consider recommendations
Page 6, Line 7from the task force created pursuant to subsection (8.5)(d) of
Page 6, Line 8this section and shall propose 2040 performance standards to
Page 6, Line 9the commission for consideration in the rules adopted pursuant to subsection (8.5)(a)(I) of this section.
Page 6, Line 10(b) (I) The division, in proposing 2040 performance
Page 6, Line 11standards, and the commission, in adopting 2040 performance
Page 6, Line 12standards, shall consider whether the long-term targets
Page 6, Line 13included in the 2040 performance standards support the 2050
Page 6, Line 14economy-wide emission reduction goals set forth in section 25-7-102 (2)(g), taking into consideration:
Page 6, Line 15(A) The capital planning periods for covered buildings;
Page 6, Line 16(B) The feasibility of an owner planning and implementing
Page 6, Line 17a building upgrade project ahead of the compliance date for the
Page 6, Line 182040 performance standard that the commission sets by rule pursuant to subsection (8.5)(a)(I) of this section; and
Page 6, Line 19(C) The practical and financial feasibility of meeting the targets.
Page 6, Line 20(II) The rules adopted pursuant to this subsection (8.5)
Page 6, Line 21must include a requirement that an owner of a covered building
Page 6, Line 22submit with its benchmarking report submitted in 2035 an interim
Page 7, Line 1status report regarding the owner's progress toward the 2040
Page 7, Line 2performance standards and submitted in a format determined by the office.
Page 7, Line 3(c) (I) On or before July 1, 2027, the director of the office
Page 7, Line 4shall appoint and convene a task force. The task force shall
Page 7, Line 5review the benchmarking data submitted for calendar years
Page 7, Line 62021 through 2026 and, on or before July 1, 2028, develop and
Page 7, Line 7provide recommendations to the division regarding the 2040
Page 7, Line 8performance standards, including recommendations on the
Page 7, Line 9content of the interim status reports submitted pursuant to
Page 7, Line 10rules adopted in accordance with subsection (8.5)(b)(II) of this section.
Page 7, Line 11(II) As part of the recommendations developed pursuant
Page 7, Line 12to subsection (8.5)(c)(I) of this section, the task force shall consider:
Page 7, Line 13(A) The 2050 economy-wide emission reduction goals set forth in section 25-7-102 (2)(g); and
Page 7, Line 14(B) The capital planning periods for covered buildings and
Page 7, Line 15the feasibility of an owner planning and implementing a building
Page 7, Line 16upgrade project ahead of the compliance date for the 2040
Page 7, Line 17performance standard that the commission sets by rule pursuant to subsection (8.5)(a)(I) of this section.
Page 7, Line 18(d) The task force consists of the following members, all
Page 7, Line 19of whom, except the representatives of the office, the public utilities commission, and the division, are voting members:
Page 7, Line 20(I) The director of the office or the director's designee;
Page 7, Line 21(II) The director of the division or the director's designee;
Page 8, Line 1(III) The director of the public utilities commission or the director's designee;
Page 8, Line 2(IV) One member who is an owner of commercial covered
Page 8, Line 3buildings or who represents owners of commercial covered buildings;
Page 8, Line 4(V) One member who is an owner of a multifamily
Page 8, Line 5residential covered building or who represents owners of multifamily residential covered buildings;
Page 8, Line 6(VI) One member who represents an affordable housing organization;
Page 8, Line 7(VII) One member who has direct experience in, or is a
Page 8, Line 8member of an organization representing workers in, mechanical,
Page 8, Line 9HVAC, or electrical work at the commercial or multifamily building level;
Page 8, Line 10(VIII) One member who represents architects;
Page 8, Line 11(IX) One member who represents professional engineers
Page 8, Line 12with experience working on systems for buildings or with extensive experience as a building operating engineer;
Page 8, Line 13(X) One member who represents an electric utility, a gas utility, or a combined electric and gas utility;
Page 8, Line 14(XI) One member who is from an environmental
Page 8, Line 15conservation or environmental justice group with experience in energy efficiency or the built environment;
Page 8, Line 16(XII) One member who is from a local government that has
Page 8, Line 17enacted or adopted a benchmarking or building energy performance ordinance or resolution;
Page 8, Line 18(XIII) Three members who have relevant building
Page 9, Line 1performance expertise, as determined by the director of the office; and
Page 9, Line 2(XIV) One member representing hospitals or other health-care facilities.
Page 9, Line 3(e) An individual applying to serve on the task force must
Page 9, Line 4submit a recommendation from a member of the group that the
Page 9, Line 5individual seeks to represent on the task force or, if a trade
Page 9, Line 6organization exists that represents the group, a recommendation from the trade organization.
Page 9, Line 7(f) In making appointments to the task force, the director of the office shall strive to ensure geographic representation.
Page 9, Line 8(8.6) Notwithstanding any rules that the commission adopts pursuant to this section before July 1, 2025:
Page 9, Line 9(a) (I) An owner of a covered building may comply with building performance standards adopted by the commission by:
Page 9, Line 10(A) Submitting complete and accurate 2019 benchmarking data to the office no later than January 1, 2026;
Page 9, Line 11(B) In 2026, achieving and maintaining a standard percent
Page 9, Line 12reduction of at least thirteen percent in comparison to the
Page 9, Line 13covered building's 2019 benchmarked baseline weather-normalized site energy use intensity; and
Page 9, Line 14(C) In 2030, achieving and maintaining a standard percent
Page 9, Line 15reduction of at least twenty-nine percent in comparison to the
Page 9, Line 16covered building's 2019 benchmarked baseline weather-normalized energy use intensity;
Page 9, Line 17(II) An owner of a covered building located within the
Page 9, Line 18jurisdiction of a local government that has adopted and
Page 10, Line 1implemented a building performance standards program or
Page 10, Line 2other similar program intended to reduce greenhouse gas
Page 10, Line 3emissions from covered buildings is deemed in compliance with
Page 10, Line 4this section and rules adopted by the commission pursuant to
Page 10, Line 5this section by complying with the requirements of the local program if:
Page 10, Line 6(A) The owner of the covered building maintains
Page 10, Line 7compliance with the local program and certifies its affirmative
Page 10, Line 8compliance status by submitting an affidavit, subject to civil
Page 10, Line 9penalties for misrepresentation, which affidavit attests that
Page 10, Line 10the covered building meets the requirements of the local
Page 10, Line 11program, in annual benchmarking reports submitted to the office;and
Page 10, Line 12(B) The office has determined that the greenhouse gas
Page 10, Line 13emission reductions from covered buildings complying with the
Page 10, Line 14local program are reasonably similar to the greenhouse gas
Page 10, Line 15emission reductions that would have been achieved through
Page 10, Line 16compliance with this section and the commission's rules adopted pursuant to this section;
Page 10, Line 17(III) A local jurisdiction that has adopted and
Page 10, Line 18implemented a building performance standards program may
Page 10, Line 19issue a certification or report to the office confirming which covered buildings are in compliance with the program; and
Page 10, Line 20(IV) Decisions made by the office regarding equivalence
Page 10, Line 21pursuant to subsection (8.6)(a)(II)(B) of this section are subject to judicial review pursuant to section 24-4-106.
Page 10, Line 22(b) (I) Notwithstanding subsection (8.6)(a) of this section
Page 11, Line 1and any rules adopted by the commission before July 1, 2025, an
Page 11, Line 2owner may either comply with the 2026 performance standards
Page 11, Line 3or, as part of the owner's benchmarking reports submitted to the office in 2026 through 2029:
Page 11, Line 4(A) Track its progress toward compliance with the performance standards;
Page 11, Line 5(B) Express any need for technical assistance from the office; and
Page 11, Line 6(C) Provide other information that the office deems
Page 11, Line 7necessary demonstrating measures planned or being taken to comply with the 2030 performance standards.
Page 11, Line 8(II) Any rules that the commission adopted before July 1,
Page 11, Line 92025, that impose additional compliance obligations upon a
Page 11, Line 10covered building owner that fails to timely meet a building
Page 11, Line 11performance standard do not apply until 2031 for the 2030 building performance standards.
Page 11, Line 12(III) The office shall prioritize any grant money that is made available for owners of covered buildings:
Page 11, Line 13(A) That comply with or establish plans to go beyond the 2026 performance standards; or
Page 11, Line 14(B) That comply with the 2030 performance standard
Page 11, Line 15early or establish plans to go beyond the 2030 performance standards.
Page 11, Line 16(IV) Nothing in this subsection (8.6)(b) precludes or
Page 11, Line 17modifies the division's authority to enforce against an owner of
Page 11, Line 18a covered building for noncompliance with 2030 performance
Page 11, Line 19standards or performance standards set for subsequent years.
Page 12, Line 1(8.7) Notwithstanding the requirements of subsection
Page 12, Line 2(8)(a)(II) of this section or rules adopted pursuant to that
Page 12, Line 3subsection, subsection (8.6) of this section is necessary for
Page 12, Line 4covered buildings to effectively implement the performance
Page 12, Line 5standards. The commission is not required to revise rules adopted pursuant to this section.
Page 12, Line 6(8.8) Energy use that a covered building owner
Page 12, Line 7demonstrates is attributable to electric vehicle charging shall
Page 12, Line 8not be included in a covered building's total energy usage for purposes of compliance with building performance standards.
Page 12, Line 9SECTION 4. In Colorado Revised Statutes, add24-38.5-123 as follows:
Page 12, Line 1024-38.5-123. Building decarbonization enterprise - creation
Page 12, Line 11- membership - powers and duties - building decarbonization
Page 12, Line 12enterprise cash fund - legislative declaration - definitions - rules -
Page 12, Line 13report - repeal. (1) Legislative declaration. (a) The general assembly finds that:
Page 12, Line 14(I) Reducing greenhouse gas emissions from combustion devices in residential and commercial buildings:
Page 12, Line 15(A) Is necessary to help the state achieve its statewide
Page 12, Line 16greenhouse gas emission reduction goals set forth in section
Page 12, Line 1725-7-102 (2)(g), including the goal to reach net-zero greenhouse gas emissions by 2050; and
Page 12, Line 18(B) Presents significant opportunities to lower and
Page 12, Line 19stabilize energy bills, provide for more comfortable living and
Page 12, Line 20working spaces, and reduce local air pollution that contributes
Page 12, Line 21to ground-level ozone;
Page 13, Line 1(II) Covered building owners are required to comply with
Page 13, Line 2benchmarking requirements and performance standard
Page 13, Line 3requirements and would benefit from additional financial and technical assistance to meet those requirements; and
Page 13, Line 4(III) With additional financing and technical assistance,
Page 13, Line 5covered building owners may more effectively and efficiently
Page 13, Line 6implement building decarbonization measures, including, but not limited to, programs that:
Page 13, Line 7(A) Help finance energy efficiency measures, electrification measures, and other energy upgrades; and
Page 13, Line 8(B) Provide assistance for conducting building energy
Page 13, Line 9audits, developing analyses to help building owners evaluate
Page 13, Line 10the best strategies for achieving future performance standard
Page 13, Line 11targets, employing or consulting with building engineers,
Page 13, Line 12purchasing energy use tracking software for covered building
Page 13, Line 13owners to more effectively track energy use, and providing training on such software.
Page 13, Line 14(b) Now, therefore, the general assembly declares that:
Page 13, Line 15(I) It is in the public interest to create an enterprise
Page 13, Line 16within the office that is committed to financing and providing
Page 13, Line 17technical and other support for the implementation of building decarbonization measures;
Page 13, Line 18(II) The activities of the enterprise shall be funded by
Page 13, Line 19revenue generated from building decarbonization fees paid by
Page 13, Line 20covered building owners and any gifts, grants, and donations received;
Page 13, Line 21(III) It is appropriate that covered building owners should
Page 14, Line 1pay a building decarbonization fee, as covered building owners
Page 14, Line 2are the direct beneficiaries of services provided by the
Page 14, Line 3enterprise, which services include the financing and technical
Page 14, Line 4assistance provided for the building decarbonization measures described in subsection (1)(a)(III) of this section;
Page 14, Line 5(IV) Covered building owners benefit from the
Page 14, Line 6implementation of building decarbonization measures because such measures can:
Page 14, Line 7(A) Reduce covered building owners' long-term costs related to energy use;
Page 14, Line 8(B) Improve building comfort; and
Page 14, Line 9(C) Increase the market value and desirability of covered buildings to tenants;
Page 14, Line 10(V) Consistent with the determination of the Colorado
Page 14, Line 11supreme court in Nicholl v. E-470 Public Highway Authority, 896
Page 14, Line 12P.2d 859 (Colo. 1995), that the power to impose taxes is
Page 14, Line 13inconsistent with enterprise status under section 20 of article
Page 14, Line 14X of the state constitution, the general assembly concludes
Page 14, Line 15that the building decarbonization fee is a fee, not a tax, and the
Page 14, Line 16enterprise operates as a business because the building decarbonization fee is:
Page 14, Line 17(A) Imposed for the specific business purposes of providing
Page 14, Line 18financing and technical assistance to covered building owners
Page 14, Line 19to more effectively and efficiently implement building
Page 14, Line 20decarbonization measures, including feasibility analyses and improvements that will reduce energy use and emissions; and
Page 14, Line 21(B) Collected at a rate that is reasonably related to the overall cost of the business services being provided; and
Page 15, Line 1(VI) So long as the enterprise qualifies as an enterprise
Page 15, Line 2for purposes of section 20 of article X of the state constitution,
Page 15, Line 3the revenue from the building decarbonization fee imposed,
Page 15, Line 4collected, and administered by the enterprise is not state fiscal
Page 15, Line 5year spending, as defined in section 24-77-102 (17), or state
Page 15, Line 6revenues, as defined in section 24-77-103.6 (6)(c), and does not
Page 15, Line 7count against either the state fiscal year spending limit imposed
Page 15, Line 8by 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 9(2) As used in this section, unless the context otherwise requires:
Page 15, Line 10(a) "Benchmarking requirements" means the energy
Page 15, Line 11benchmarking requirements set forth in section 25-7-142 (3) with
Page 15, Line 12which an owner or operator of a covered building is required to comply.
Page 15, Line 13(b) "Board" means the board of directors of the enterprise appointed pursuant to subsection (4)(a) of this section.
Page 15, Line 14(c) "Building decarbonization fee" or "fee" means the fee
Page 15, Line 15paid by the owner of a covered building pursuant to subsection(5)(b) of this section.
Page 15, Line 16(d) "Covered building" has the meaning set forth in section 25-7-142 (2)(j).
Page 15, Line 17(e) "Covered building owner" means an "owner", as defined in section 25-7-142 (2)(r), of a covered building.
Page 15, Line 18(f) "Enterprise" means the building decarbonization
Page 15, Line 19enterprise created in subsection (3) of this section.
Page 16, Line 1(g) "Fund" means the building decarbonization enterprise cash fund created in subsection (6)(a) of this section.
Page 16, Line 2(h) "Inflation" means the annual percentage change in the
Page 16, Line 3in the United States department of labor's bureau of labor
Page 16, Line 4statistics consumer price index, or a successor index, for
Page 16, Line 5Denver-Aurora-Lakewood for all items paid for by urban consumers.
Page 16, Line 6(i) "Office" means the Colorado energy office created in section 24-38.5-101.
Page 16, Line 7(j) "On-bill program" means a utility's on-bill
Page 16, Line 8program through which energy efficiency measures,
Page 16, Line 9electrification measures, and energy upgrades installed at a
Page 16, Line 10participating customer's premises that is associated with the
Page 16, Line 11utility meter are financed through loans that are repaid through monthly utility bill payments.
Page 16, Line 12(k) "Performance standards" has the meaning set forth in section 25-7-142 (2)(s).
Page 16, Line 14(3) Enterprise created - loan from the office - repayment.
Page 16, Line 15(a) The building decarbonization enterprise is created in the
Page 16, Line 16office and exercises its powers and performs its duties and
Page 16, Line 17functions as a government-owned business in the office to
Page 16, Line 18execute its business purposes set forth in this subsection (3). The enterprise is created for the purposes of:
Page 16, Line 19(I) Imposing and assessing building decarbonization fees on owners of covered buildings;
Page 16, Line 20(II) Providing technical assistance, financing, and other
Page 17, Line 1programmatic support for covered building owners' building
Page 17, Line 2decarbonization measures, including, but not limited to,
Page 17, Line 3conducting building energy audits, developing analyses to help
Page 17, Line 4building owners evaluate the best strategies for achieving
Page 17, Line 5future performance standard targets, consulting building
Page 17, Line 6engineers, purchasing energy use tracking software, and providing training on such software;
Page 17, Line 7(III) Having and exercising all rights and powers
Page 17, Line 8necessary or incidental to or implied from the specific powers and duties granted under this section; and
Page 17, Line 9(IV) Ensuring that the building decarbonization fees paid
Page 17, Line 10by covered building owners are used solely to support
Page 17, Line 11programs, technical assistance, and financial assistance for the
Page 17, Line 12covered building owners that pay the building decarbonization fees.
Page 17, Line 13(b) The board, in consultation with the office, shall administer the enterprise in accordance with this section.
Page 17, Line 14(c) (I) The enterprise constitutes an enterprise for
Page 17, Line 15purposes of section 20 of article X of the state constitution so
Page 17, Line 16long as it retains the authority to issue revenue bonds and
Page 17, Line 17receives less than ten percent of its total revenues in grants, as
Page 17, Line 18defined in section 24-77-102 (7), from all Colorado state and
Page 17, Line 19local governments combined. So long as it constitutes an
Page 17, Line 20enterprise, the enterprise is not subject to section 20 of article X of the state constitution.
Page 17, Line 21(II) The enterprise is authorized to issue revenue bonds for
Page 17, Line 22the expenses of the enterprise, secured by revenue of the enterprise.
Page 18, Line 1(d) (I) The office may transfer money from any legally
Page 18, Line 2available source to the enterprise for the purpose of defraying
Page 18, Line 3expenses incurred by the enterprise before it receives fee
Page 18, Line 4revenue. The enterprise may accept and expend any money so
Page 18, Line 5transferred, and, notwithstanding any state fiscal rule or
Page 18, Line 6generally accepted accounting principle that could otherwise
Page 18, Line 7be interpreted to require a contrary conclusion, such a
Page 18, Line 8transfer is a loan from the office to the enterprise that is
Page 18, Line 9required to be repaid and is not a grant for purposes of section
Page 18, Line 1020 (2)(d) of article X of the state constitution or as defined in section 24-77-102 (7).
Page 18, Line 11(II) As the enterprise receives sufficient revenue in excess
Page 18, Line 12of its expenses, the enterprise shall reimburse the office for the
Page 18, Line 13principal amount of any loan made by the office, plus interest at a rate agreed upon by the office and the enterprise.
Page 18, Line 14(4) Enterprise board of directors created - membership -
Page 18, Line 15duties - repeal. (a) The enterprise board of directors is created to
Page 18, Line 16administer the enterprise. The board consists of the following seven members:
Page 18, Line 17(I) The following four members appointed by the governor and confirmed by the senate:
Page 18, Line 18(A) A representative of covered building owners;
Page 18, Line 19(B) An expert in building energy efficiency and decarbonization;
Page 18, Line 20(C) A local government representative with expertise in
Page 18, Line 21planning or energy codes; and
(D) A utility representative;
Page 19, Line 1(II) The director of the office or the director's designee;
Page 19, Line 2(III) The executive director of the department of public
Page 19, Line 3health and environment or the executive director's designee; and
Page 19, Line 4(IV) The director of the public utilities commission or the director's designee.
Page 19, Line 5(b) (I) The governor shall appoint initial members to the
Page 19, Line 6board pursuant to subsection (4)(a)(I) of this section on or before September 1, 2025.
Page 19, Line 7(II) This subsection (4)(b) is repealed, effective July 1, 2026.
Page 19, Line 8(c) (I) Board members appointed pursuant to subsection
Page 19, Line 9(4)(a)(I) of this section serve three-year terms. A board member may serve an unlimited number of terms.
Page 19, Line 10(II) Notwithstanding subsection (4)(c)(I) of this section,
Page 19, Line 11the governor shall make the initial terms of two of the board
Page 19, Line 12members who are appointed pursuant to subsection (4)(a)(I) of this section two years.
Page 19, Line 13(d) Board members serving pursuant to subsection (4)(a)(I)
Page 19, Line 14of this section may receive compensation from the enterprise on
Page 19, Line 15a per diem basis for reasonable expenses actually incurred in the performance of their duties.
Page 19, Line 16(e) (I) The chair and vice-chair of the board are selected
Page 19, Line 17by the members of the board in accordance with the board's bylaws.
Page 19, Line 18(II) (A) The director of the office or the director's
Page 19, Line 19designee shall call the first meeting of the board, and the board
Page 20, Line 1shall select the chair and vice-chair at that meeting in accordance with subsection (4)(e)(I) of this section.
Page 20, Line 2(B) This subsection (4)(e)(II) is repealed, effective July 1, 2026.
Page 20, Line 3(5) Powers and duties - building decarbonization fee. (a) In
Page 20, Line 4addition to any other powers and duties specified in this section,
Page 20, Line 5the board has the following powers and duties on behalf of the enterprise:
Page 20, Line 6(I) To adopt procedures for conducting the board's affairs;
Page 20, Line 7(II) To engage the services of contractors, consultants,
Page 20, Line 8the division of administration described in section 25-1-102 (2)(a),
Page 20, Line 9and the staff of the office for professional and technical
Page 20, Line 10assistance and advice and to supply other services related to
Page 20, Line 11the conduct of the affairs of the enterprise without regard to
Page 20, Line 12the "Procurement Code", articles 101 to 112 of title 24. The
Page 20, Line 13enterprise shall engage the attorney general's office for legal
Page 20, Line 14services. The enterprise may contract with the office for the
Page 20, Line 15provision of office space and administrative staff to the enterprise at a fair market rate.
Page 20, Line 16(III) To establish and administer a program through which
Page 20, Line 17owners of covered buildings may apply for, and the board may
Page 20, Line 18review and approve applications for, financing or technical
Page 20, Line 19assistance for building decarbonization measures, including, but
Page 20, Line 20not limited to, participating in programs that help finance
Page 20, Line 21energy efficiency measures, electrification measures, and other
Page 20, Line 22energy upgrades; conducting building energy audits; employing
Page 21, Line 1or consulting with building engineers; and purchasing energy use tracking software and providing training on such software;
Page 21, Line 2(IV) To impose the building decarbonization fee described in subsection (5)(b) of this section; and
Page 21, Line 3(V) To have and exercise all rights and powers necessary
Page 21, Line 4or incidental to or implied from the specific powers and duties granted by this section.
Page 21, Line 5(b) (I) Beginning in state fiscal year 2026-27 and in
Page 21, Line 6furtherance of the enterprise's business purposes, the board
Page 21, Line 7shall adopt rules for the sole purpose of setting the amount of
Page 21, Line 8the building decarbonization enterprise fee at the maximum
Page 21, Line 9amount authorized in this section to be imposed upon all covered
Page 21, Line 10building owners; except 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 11(II) On or before November 1, 2025, and on or before each
Page 21, Line 12November 1 of each year thereafter, and except as provided in
Page 21, Line 13subsection (5)(b)(III) of this section, each owner of a covered
Page 21, Line 14building shall pay a building decarbonization fee in an amount
Page 21, Line 15of four hundred dollars to the office, which shall collect the building decarbonization fee on behalf of the enterprise.
Page 21, Line 16(III) Beginning in state fiscal year 2027-28, the board may
Page 21, Line 17increase the fee from the previous year's fee, as adjusted for
Page 21, Line 18inflation and, on or before March 15 of each of the state fiscal
Page 21, Line 19years thereafter, shall notify the office of the adjusted amount
Page 21, Line 20of the fee. On or before April 15 of each of the state fiscal years
Page 21, Line 21thereafter, the office shall publish the updated amount of the
Page 21, Line 22fee on the enterprise's website.
Page 22, Line 1(IV) Money collected as a building decarbonization fee shall be credited to the fund.
Page 22, Line 2(V) Money collected by the office for transfer to the fund pursuant to subsection (5)(b)(IV) of this section:
Page 22, Line 3(A) Is collected for the enterprise;
Page 22, Line 4(B) Is custodial money intended for the enterprise and
Page 22, Line 5held temporarily by the office and the state treasurer solely
Page 22, Line 6for the purpose of transferring the money to the fund for use by the enterprise; and
Page 22, Line 7(C) Based on the enterprise's status as an enterprise, is
Page 22, Line 8not subject to section 20 of article X of the state constitution at any time during the money's collection, transfer, and use.
Page 22, Line 9(6) Building decarbonization enterprise cash fund - creation
Page 22, Line 10- repeal. (a) The building decarbonization enterprise cash fund is created in the state treasury. The fund consists of:
Page 22, Line 11(I) Money received as building decarbonization fees pursuant to subsection (5)(b) of this section;
Page 22, Line 12(II) Any money received from the issuance of revenue bonds, as described in subsection (3)(c)(II) of this section; and
Page 22, Line 13(III) Any other money that the general assembly may appropriate or transfer to the fund.
Page 22, Line 14(b) (I) Section 24-77-108 does not apply to the enterprise
Page 22, Line 15because the total amount of money credited or appropriated to
Page 22, Line 16the fund as building decarbonization fees shall not exceed one
Page 22, Line 17hundred million dollars in the first five fiscal years of the enterprise's existence.
Page 22, Line 18(II) This subsection (6)(b) is repealed, effective July 1, 2031.
Page 23, Line 1(c) Money credited to the fund is continuously
Page 23, Line 2appropriated to the enterprise for the purposes set forth in this
Page 23, Line 3section and to pay the enterprise's reasonable and necessary
Page 23, Line 4operating expenses. The state treasurer shall credit all
Page 23, Line 5interest and income derived from the deposit and investment of money in the fund to the fund.
Page 23, Line 6(d) Any unexpended and unencumbered money remaining
Page 23, Line 7in the fund at the end of a fiscal year remains in the fund and is not credited or transferred to the general fund.
Page 23, Line 8(7) Legislative review of building decarbonization enterprise.
Page 23, Line 9On or before December 1 of each year, the enterprise shall
Page 23, Line 10submit an annual report to the general assembly detailing the
Page 23, Line 11enterprise's expenditures and program outcomes from the
Page 23, Line 12preceding year and the enterprise's financial projections for the following year.
Page 23, Line 13SECTION 5. In Colorado Revised Statutes, 25-7-122, amend (1)(b) introductory portion and (1)(i) as follows:
Page 23, Line 1425-7-122. Civil penalties - rules - definitions. (1) Upon
Page 23, Line 15application of the division, the division may collect penalties as
Page 23, Line 16determined under this article 7 by instituting an action in the district court
Page 23, Line 17for the district in which the air pollution source affected is located, in accordance with the following provisions:
Page 23, Line 18(b) Any person who violates any requirement or prohibition of a
Page 23, Line 19final order of the division or commission, an applicable emission control
Page 23, Line 20regulation of the commission, the state implementation plan, a
Page 23, Line 21construction permit, any provision for the prevention of significant
Page 23, Line 22deterioration under part 2 of this article 7, any provision related to
Page 24, Line 1attainment under part 3 of this article 7, or any provision of or
Page 24, Line 2commission rule adopted pursuant to section 25-7-105, 25-7-106,
Page 24, Line 325-7-106.3, 25-7-108, 25-7-109, 25-7-109.5, 25-7-111, 25-7-112,
Page 24, Line 425-7-113, 25-7-114.2, 25-7-114.5, 25-7-118, 25-7-141, 25-7-142,
Page 24, Line 525-7-146, 25-7-206, 25-7-403, 25-7-404, 25-7-405, 25-7-407, 42-4-403,
Page 24, Line 642-4-404, 42-4-405, 42-4-406, 42-4-407, 42-4-409, 42-4-410, or
Page 24, Line 742-4-414 is subject to a civil penalty of not more than forty-seven
Page 24, Line 8thousand three hundred fifty-seven dollars per day for each day of the violation; except that:
Page 24, Line 9(i)
(I) On and after January 1, 2024, and except as provided inPage 24, Line 10
subsection (1)(i)(II) of this section, an owner of a covered building thatPage 24, Line 11
violates section 25-7-142 (3) or (6) is subject to a civil penalty of up toPage 24, Line 12
five hundred dollars for a first violation and up to two thousand dollarsPage 24, Line 13
for each subsequent violation. As part of the requirement that thePage 24, Line 14
commission adopt rules to establish performance standards pursuant toPage 24, Line 15
section 25-7-142 (8)(c), the commission shall establish by rule, withPage 24, Line 16
regard to a violation of the performance standards, civil penalties in anPage 24, Line 17
amount not to exceed two thousand dollars for a first violation and five thousand dollars for a subsequent violation.Page 24, Line 18(II) The division shall not assess a civil penalty for a violation related to a public building.
Page 24, Line 19(II.5) Notwithstanding rules that the commission adopted
Page 24, Line 20before July 1, 2025, a civil penalty for a violation of section
Page 24, Line 2125-7-142 or rules adopted by the commission to implement section
Page 24, Line 2225-7-142 shall be determined in a manner consistent with subsections (1)(b) and (2) of this section.
.Page 24, Line 23(III) Notwithstanding section 25-7-129,
the division shall transmitPage 25, Line 1civil penalties collected pursuant to
this subsection (1)(i) to the statePage 25, Line 2
treasurer, whoPage 25, Line 3of covered buildings for a violation of section 25-7-142 or rules
Page 25, Line 4adopted by the commission to implement section 25-7-142, shall
Page 25, Line 5
credit themPage 25, Line 6
(IV) As used in this subsection (1)(i):Page 25, Line 7
(A) "Covered building" has the meaning set forth in section 25-7-142 (2)(j).Page 25, Line 8
(B) "Owner" has the meaning set forth in section 25-7-142 (2)(r).Page 25, Line 9SECTION 6. In Colorado Revised Statutes, 24-38.5-403, add (4) as follows:
Page 25, Line 1024-38.5-403. Energy code training - energy code adoption -
Page 25, Line 11grant writing assistance. (4) Notwithstanding subsection (3) of
Page 25, Line 12this section, the Colorado energy office may use funding
Page 25, Line 13provided through subsection (3) of this section to cover the costs of the following:
Page 25, Line 14(a) The energy code board convened pursuant to section 24-38.5-401 (2);
Page 25, Line 15(b) The task force created in section 25-7-142 (8.5); and
Page 25, Line 16(c) The costs to the Colorado energy office for
Page 25, Line 17participating in rule-making that the air quality control commission engages in pursuant to section 25-7-142.
Page 25, Line 18SECTION 7. In Colorado Revised Statutes, 24-38.5-102.6, amend (1) introductory portion and (1)(a) as follows:
Page 25, Line 1924-38.5-102.6. Climate change mitigation and adaptation fund
Page 25, Line 20- creation - use. (1) The climate change mitigation and adaptation fund,
Page 26, Line 1referred to in this section as the "fund", is
herebyPage 26, Line 2(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 3SECTION 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 424-38.5-112. Building performance program - duties of the
Page 26, Line 5office - county assessor records database - fees - definitions. (1) The
Page 26, Line 6Colorado energy office shall implement a building performance program as follows:
Page 26, Line 7(a) Based on county assessor records and other available sources
Page 26, Line 8of information, the office shall administer the building performance program by:
Page 26, Line 9(III) Maintaining a list of noncompliant owners;
andPage 26, Line 10(IV) In a form and manner determined by the office, in
Page 26, Line 11consultation with the division of administration in the department of
Page 26, Line 12public health and environment, periodically providing the division with
Page 26, Line 13a list of noncompliant owners for the division's enforcement of the
Page 26, Line 14building performance program pursuant to
section 25-7-122 (1)(i)Page 26, Line 15(V) In consultation with the department, developing
Page 26, Line 16guidance that describes the criteria that the office will use to
Page 26, Line 17determine which buildings to refer to the department for
Page 26, Line 18enforcement. Specific criteria must include, but need not be limited to:
Page 26, Line 19(A) Consideration of mitigating circumstances beyond the
Page 26, Line 20owner's control;
Page 27, Line 1(B) Good faith efforts by the owner to comply with benchmarking and building performance requirements; and
Page 27, Line 2(C) Financial solvency concerns.
Page 27, Line 3SECTION 9. Applicability. This act applies to conduct occurring on or after the effective date of this act.
Page 27, Line 4SECTION 10. Safety clause. The general assembly finds,
Page 27, Line 5determines, and declares that this act is necessary for the immediate
Page 27, Line 6preservation of the public peace, health, or safety or for appropriations for
Page 27, Line 7the support and maintenance of the departments of the state and state institutions.