First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 25-0849.01 Jennifer Berman x3286
HOUSE BILL 25-1269
House Committees Senate Committees
Energy & Environment
Finance
Appropriations
A BILL FOR AN ACT
C
ONCERNING BUILDING DE CARBONIZATION MEASURES , AND, IN101
CONNECTION THEREWITH , CREATING A BUILDING102
DECARBONIZATION
ENTERPRISE AND MAKING AN103
APPROPRIATION.104
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:
HOUSE
Amended 3rd Reading
April 23, 2025
HOUSE
Amended 2nd Reading
April 22, 2025
HOUSE SPONSORSHIP
Willford and Valdez, Bacon, Boesenecker, Brown, Clifford, Froelich, Joseph, Lindstedt,
Mabrey, McCormick, Phillips, Ricks, Rutinel, Story, Woodrow
SENATE SPONSORSHIP
Ball and Kipp,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. ! 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.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 30-28-211, add2
(3.5)(g) as follows:3
30-28-211. Energy efficient building codes - legislative4
declaration - definitions. (3.5) (g) N
OTWITHSTANDING THE5
REQUIREMENTS SET FORTH IN SUBSECTIONS (3.5)(a) AND (3.5)(b) OF THIS6
SECTION, A BOARD OF COUNTY COMMISSIONERS IS NOT REQUIRED TO7
ADOPT AND ENFORCE AN ENERGY CODE THAT MEETS THE REQUIREMENTS8
OF SUBSECTIONS (3.5)(a) AND (3.5)(b) OF THIS SECTION SOLELY AS A9
RESULT OF ADOPTING THE WILDFIRE RESILIENCY CODE .10
SECTION 2. In Colorado Revised Statutes, 31-15-602, add11
(3.5)(f) as follows:12
1269-2- 31-15-602. Energy efficient building codes - legislative1
declaration - definitions - repeal. (3.5) (f) N
OTWITHSTANDING THE2
REQUIREMENTS SET FORTH IN SUBSECTIONS (3.5)(a) AND (3.5)(b) OF THIS3SECTION, A GOVERNING BODY OF A MUNICIPALITY IS NOT REQUIRED TO4
ADOPT AND ENFORCE AN ENERGY CODE THAT MEETS THE REQUIREMENTS5
OF SUBSECTIONS (3.5)(a) AND (3.5)(b) OF THIS SECTION SOLELY AS A6
RESULT OF ADOPTING THE WILDFIRE RESILIENCY CODE .7
SECTION 3. In Colorado Revised Statutes, 25-7-142, amend8
(2)(s), (3), (8)(c)(III), and (8)(f); and add (1.5), (2)(q.5), (8.5), (8.6),9
(8.7), and (8.8) as follows:10
25-7-142. Energy benchmarking - data collection and access11
- utility requirements - task force - rules - reports - definitions -12
legislative declaration - repeal. (1.5) T
HE GENERAL ASSEMBLY FURTHER13
FINDS AND DECLARES THAT:14
(a) E
NERGY CONSUMPTION BY COLORADO'S BUILT ENVIRONMENT,15
INCLUDING LARGE COMMERCIAL AND RESIDENTIAL PROPERTIES , IS A16
SIGNIFICANT CONTRIBUTOR TO STATEWIDE GREENHOUSE GAS POLLUTION ;17
(b) R
EDUCING THE GREENHOUSE GAS EMISSIONS ARISING FROM18
ENERGY CONSUMPTION BY THE BUILT ENVIRONMENT IS NECESSARY TO19
ACHIEVE THE 2050 NET-ZERO GREENHOUSE GAS EMISSION REDUCTION20
GOAL SET FORTH IN SECTION 25-7-102 (2)(g);21
(c) T
HE COMMISSION SATISFIED THE OBJECTIVES SET FORTH IN22
SUBSECTIONS (8)(a)(II) AND (8)(c)(II) OF THIS SECTION BY ADOPTING23
BENCHMARKING AND PERFORMANCE STANDARD RULES IN AUGUST 2023;24
AND25
(d) I
N IMPLEMENTING THE REQUIREMENTS OF THIS SECTION AND26
THE COMMISSION'S RULES ADOPTED PURSUANT TO THIS SECTION , THE27
1269
-3- DIVISION SHOULD, CONSISTENT WITH SECTION 25-7-122 (2), CONSIDER AN1
OWNER'S EFFORT TO COMPLY WITH BUILDING PERFORMANCE STANDARDS2
WHEN IMPLEMENTING ENFORCEMENT AND ASSESSING PENALTIES3
PURSUANT TO SECTION 25-7-122 AND THIS SECTION.4
(2) Definitions. As used in this section, unless the context5
otherwise requires:6
(q.5) "OPERATOR" MEANS AN OWNER, TENANT, OR OTHER7
INDIVIDUAL OR ENTITY:8
(I) OCCUPYING OR NAMED ON THE UTILITY BILL FOR A COVERED9
BUILDING; AND10
(II) THAT HAS ACCESS TO UTILITY DATA FOR THE COVERED11
BUILDING.12
(s) "Performance standards" means standards that the commission13
establishes by rule pursuant to subsection (8)(c) SUBSECTION (8)(c) OR14
(8.5)(a) of this section
AND with which owners of covered buildings are15
required to comply.16
(3) Benchmarking requirements on owners and operators.17(a) On or before December 1, 2022, and on or before June 1 of each18
subsequent year NOTWITHSTANDING THE RULES THAT THE COMMISSION19
ADOPTED BEFORE JULY 2025, BEGINNING IN 2026 FOR 202520
BENCHMARKING DATA AND FOR EACH SUBSEQUENT YEAR, the owner of a21
covered building shall submit a report of the benchmarking data for the22
previous calendar year to the office ON OR BEFORE NOVEMBER 1.23
(b) NOTWITHSTANDING SUBSECTION (3)(a) OF THIS SECTION,24
BEGINNING IN 2025 FOR 2024 BENCHMARKING DATA AND FOR EACH25
SUBSEQUENT YEAR, IF AN OWNER OF A COVERED BUILDING DEMONSTRATES26
TO THE OFFICE THAT IT LACKS ACCESS TO BENCHMARKING DATA , THE27
1269
-4- OPERATOR OF THE COVERED BUILDING SHALL , ON OR BEFORE NOVEMBER1
1
OF EACH YEAR, SUBMIT TO THE OFFICE A REPORT OF THE BENCHMARKING2
DATA FOR THE COVERED BUILDING FOR THE PREVIOUS CALENDAR YEAR .3
(b)
(c) Before providing a benchmarking report pursuant to4
subsection (3)(a) of this section, an owner
OF A COVERED BUILDING OR5
OPERATOR shall run any automated data checking function of the6
benchmarking tool and correct any errors discovered.7
(c)
(d) The following owners AND OPERATORS may comply with8
this subsection (3) collectively at the campus-wide level:9
(I) The owner
OR OPERATOR of multiple covered buildings that are10
part of a master metered group of buildings without submetering;11
(II) The owner
OR OPERATOR of a correctional facility; and12
(III) The owner
OR OPERATOR of a public building that is a13
covered building.14
(8) Task force recommendations for implementation - rules -15
repeal. (c) (III) The commission shall not adopt rules to rescind or16
modify the exemptions for owners of public buildings from payment of17
the annual fee, as set forth in section 24-38.5-112 (1)(e)(II); FROM18
PAYMENT OF THE BUILDING DECARBONIZATION FEE, AS SET FORTH IN19
SECTION 24-38.5-123 (5)(b); or from payment of civil penalties, as set20
forth in section 25-7-122 (1)(i).21
(f) Subsections (8)(a), (8)(b), (8)(c)(I), (8)(c)(II), (8)(d), and22
(8)(e) of this section and this subsection (8)(f) are repealed, effective July23
1, 2025.24
(8.5) 2040 performance standard targets - division to propose25
standards - commission to adopt rules - task force - membership -26
repeal. (a) (I) T
O HELP ACHIEVE OR EXCEED GREENHOUSE GAS EMISSION27
1269
-5- REDUCTION TARGETS PURSUANT TO SUBSECTION (8)(c)(IV) OF THIS1
SECTION, THE COMMISSION SHALL ADOPT, BY RULE, 2040 PERFORMANCE2
STANDARDS IN ACCORDANCE WITH SECTION 25-7-102 (2)(g).3
(II) O
N OR BEFORE
JUNE 1, 2029, THE DIVISION, AFTER4
CONSULTATION WITH THE OFFICE, SHALL CONSIDER RECOMMENDATIONS5
FROM THE TASK FORCE CREATED PURSUANT TO SUBSECTION (8.5)(c) OF6
THIS SECTION AND SHALL PROPOSE 2040 PERFORMANCE STANDARDS TO7
THE COMMISSION FOR CONSIDERATION IN THE RULES ADOPTED PURSUANT8
TO SUBSECTION (8.5)(a)(I) OF THIS SECTION.9
(b) THE DIVISION, IN PROPOSING 2040 PERFORMANCE STANDARDS,10
AND THE COMMISSION, IN ADOPTING 2040 PERFORMANCE STANDARDS,11
SHALL CONSIDER WHETHER TARGETS THAT ARE INCLUDED IN THE 204012
PERFORMANCE STANDARDS TO REDUCE EMISSIONS FROM COVERED13
BUILDINGS ARE CONSISTENT WITH MEETING THE EC ONOMY-WIDE EMISSION14
REDUCTION GOALS SET FORTH IN SECTION 25-7-102 (2)(g), TAKING INTO15
CONSIDERATION:16
(I) THE CAPITAL PLANNING PERIODS FOR COVERED BUILDINGS ;17
(II) THE FEASIBILITY OF AN OWNER PLANNING AND IMPLEMENTING18
A BUILDING UPGRADE PROJECT AHEAD OF THE COMPLIANCE DATE FOR THE19
2040
PERFORMANCE STANDARD THAT THE COMMISSION SETS BY RULE20
PURSUANT TO SUBSECTION (8.5)(a)(I) OF THIS
SECTION; AND21
(III) THAT ALL RULES THAT THE COMMISSION ADOPTS MUST BE22
TECHNOLOGICALLY FEASIBLE AND ECONOMICALLY REAS ONABLE23
PURSUANT TO THE REQUIREMENTS SET FORTH IN SECTION 25-7-102 (1).24
(c) (I) O
N OR BEFORE JULY 1, 2027, THE DIRECTOR
OF THE OFFICE25
SHALL APPOINT AND CONVENE A TASK FORCE . THE TASK FORCE SHALL26
REVIEW THE BENCHMARKING DATA SUBMITTED FOR CALENDAR YEARS27
1269
-6- 2021 THROUGH 2026 AND, ON OR BEFORE JULY 1, 2028, DEVELOP AND1
PROVIDE RECOMMENDATIONS TO THE DIVISION REGARDING THE 20402
PERFORMANCE STANDARDS .3
(II) A
S PART OF THE RECOMMENDATIONS DEVELOPED PURSUANT4
TO SUBSECTION (8.5)(c)(I) OF THIS SECTION, THE TASK FORCE SHALL5
CONSIDER:6
(A) T
HE
ECONOMY-WIDE EMISSION REDUCTION GOALS SET7
FORTH IN SECTION 25-7-102 (2)(g); 8
(B) T
HE CAPITAL PLANNING PERIODS FOR COVERED BUILDINGS AND9
THE FEASIBILITY OF AN OWNER PLANNING AND IMPLEMENTING A BUILDING10UPGRADE PROJECT AHEAD OF THE COMPLIANCE DATE ;11
(C) WHETHER THE BUILDING PERFORMANCE PROGRAM SHOULD12
ALLOW A COVERED BUILDING OWNER TO MEET PERFORMANCE TARGETS13
THROUGH THE IMPLEMENTATION OF ENERGY EFFICIENCY IMPROVEMENTS14
OR OTHER ELIGIBLE MEASURES;15
(D) IMPROVEMENTS THAT MATERIALLY ADVANCE COMPLIANCE16
WITH THE PERFORMANCE STANDARD AND AVOID PREMATURE17
REPLACEMENT OF EQUIPMENT THAT REMAINS WITHIN ITS USEFUL SERVICE18
LIFE;19
(E) THE ESTABLISHMENT OF INDIVIDUALIZED COMPLIANCE20
PATHWAYS, INCLUDING THE ABILITY OF THE OFFICE TO ENTER INTO21
AGREEMENTS WITH COVERED BUILDING OWNERS TO DEFINE ALTERNATIVE22
COMPLIANCE METRICS AND SCHEDULES THAT ARE CONSISTENT WITH23
OPERATIONAL NECESSITY AND THAT AVOID UNNECESSARY FINANCIAL24
BURDENS; AND25
(F) ELEMENTS FROM PRIOR RULES REGARDING BUILDING26
PERFORMANCE STANDARDS, WHICH RULES MAY REQUIRE REVISION. THE27
1269
-7- TASK FORCE SHALL MAKE RECOMMENDATIONS REGARDING ANY RULE1
REVISIONS THAT IT BELIEVES ARE NECESSARY .2
(d) T
HE TASK FORCE CONSISTS OF THE FOLLOWING MEMBERS , ALL3
OF WHOM, EXCEPT THE REPRESENTATIVES OF THE
OFFICE, THE PUBLIC4
UTILITIES COMMISSION, AND THE DIVISION, ARE VOTING MEMBERS:5
(I) T
HE DIRECTOR OF THE OFFICE OR THE DIRECTOR 'S DESIGNEE;6
(II) T
HE DIRECTOR OF THE DIVISION OR THE DIRECTOR'S DESIGNEE;7
(III) THE DIRECTOR OF THE PUBLIC UTILITIES COMMISSION OR THE8
DIRECTOR'S DESIGNEE;9
(IV) ONE MEMBER WHO IS AN OWNER OF COMMERCIAL COVERED10
BUILDINGS OR WHO REPRESENTS OWNERS OF COMMERCIAL COVERED11
BUILDINGS;12
(V) ONE MEMBER WHO IS AN OWNER OF A MULTIFAMILY13
RESIDENTIAL COVERED BUILDING OR WHO REPRESENTS OWNERS OF14
MULTIFAMILY RESIDENTIAL COVERED BUILDINGS ;15
(VI) ONE MEMBER WHO REPRESENTS AN AFFORDABLE HOUSING16
ORGANIZATION;17
(VII) ONE MEMBER WHO HAS DIRECT EXPERIENCE IN , OR IS A18
MEMBER OF AN ORGANIZATION REPRESENTING WORKERS IN , MECHANICAL,19
HVAC,
OR ELECTRICAL WORK AT THE COMMERCIAL OR MULTIFAMILY20
BUILDING LEVEL;21 (VIII) ONE MEMBER WHO REPRESENTS ARCHITECTS ;22
(IX) ONE MEMBER WHO REPRESENTS PROFESSIONAL ENGINEERS23
AND WHO HAS EXPERIENCE WORKING ON SYSTEMS FOR BUILDINGS ;24
(X) ONE MEMBER WHO HAS EXTENSIVE EXPERIENCE AS A BUILDING25
OPERATING ENGINEER;26
(XI) ONE MEMBER WHO REPRESENTS AN ELECTRIC UTILITY , A GAS27
1269
-8- UTILITY, OR A COMBINED ELECTRIC AND GAS UTILITY ;1
(XII) ONE MEMBER WHO IS FROM AN ENVIRONMENTAL2
CONSERVATION OR ENVIRONMENTAL JUSTICE GROUP WITH EXPERIENCE IN3
ENERGY EFFICIENCY OR THE BUILT ENVIRONMENT ;4
(XIII) ONE MEMBER WHO IS FROM A LOCAL GOVERNMENT THAT5
HAS ENACTED OR ADOPTED A BENCHMARKING OR BUILDING ENERGY6
PERFORMANCE ORDINANCE OR RESOLUTION ; 7
(XIV) THREE MEMBERS WHO HAVE RELEVANT BUILDING8
PERFORMANCE EXPERTISE , AS DETERMINED BY THE DIRECTOR OF THE9
OFFICE;10
(XV) ONE MEMBER REPRESENTING HOSPITALS OR OTHER11
HEALTH-CARE FACILITIES; AND12
(XVI) ONE MEMBER WHO IS A REPRESENTATIVE OF A MIXED-USE13
COMMERCIAL OFFICE.14
(e) AN INDIVIDUAL APPLYING TO SERVE ON THE TASK FORCE MUST15
SUBMIT A RECOMMENDATION FROM A MEMBER OF THE GROUP THAT THE16
INDIVIDUAL SEEKS TO REPRESENT ON THE TASK FORCE OR, IF A TRADE17
ORGANIZATION EXISTS THAT REPRESENTS THE GROUP , A18
RECOMMENDATION FROM THE TRADE ORGANIZATION .19
(f) IN MAKING APPOINTMENTS TO THE TASK FORCE , THE DIRECTOR20
OF THE OFFICE SHALL STRIVE TO ENSURE VARIED GEOGRAPHIC21
REPRESENTATION.22
(g) THE TASK FORCE SHALL CONDUCT A COMPREHENSIVE23
ECONOMIC ANALYSIS OF ITS RECOMMENDATIONS FOR THE 204024
PERFORMANCE STANDARDS PRIOR TO PROVIDING THE RECOMME NDATIONS25
TO THE DIVISION.26
(8.6) N
OTWITHSTANDING ANY RULES THAT THE COMMISSION27
1269
-9- ADOPTS PURSUANT TO THIS SECTION BEFORE JULY 1, 2025:1
2
(a) (I) AN OWNER OF A COVERED BUILDING THAT MEETS ITS3
PERFORMANCE STANDARDS USING THE STANDARD PERCENTAGE4
REDUCTION BUILDING PERFORMANCE PATHWAY , AS ESTABLISHED BY RULE5
OF THE COMMISSION, MAY USE 2019 BENCHMARKING DATA AS AN6
ALTERNATE BASELINE IF THE OWNER SUBMITS COMPLETE AND ACCURATE7
2019 BENCHMARKING DATA TO THE OFFICE NO LATER THAN NOVEMBER 1,8
2027; AND9
(II) A
N OWNER OF A COVERED BUILDING LOCATED WITHIN THE10
JURISDICTION OF A LOCAL GOVERNMENT THAT HAS ADOPTED AND11
IMPLEMENTED A BUILDING PERF ORMANCE STANDARDS PROGRAM OR12
OTHER SIMILAR PROGRAM INTENDED TO REDUCE GREENHOUSE GAS13
EMISSIONS FROM COVERED BUILDINGS IS DEEMED IN COMPLIANCE WITH14
THIS SECTION AND RULES ADOPTED BY THE COMMISSION PURSUANT TO15
THIS SECTION BY COMPLYING WITH THE REQUIREMENTS OF THE LOCAL16
PROGRAM IF:17
(A) T
HE OWNER OF THE COVERED BUILDING MAINTAINS18
COMPLIANCE WITH THE LOCAL PROGRAM AND CERTIFIES ITS AFFIRMATIVE19
COMPLIANCE STATUS
BY SUBMITTING AN AFFIDAVIT, WHICH AFFIDAVIT20
ATTESTS THAT THE COVERED BUILDING MEETS THE REQUIREMENTS OF THE21
LOCAL PROGRAM, IN ANNUAL BENCHMARKING REPORTS SUBMITTED TO22
THE OFFICE; AND23
(B) T
HE OFFICE HAS DETERMINED THAT THE GREENHOUSE GAS24
EMISSION REDUCTIONS FROM COVERED BUILDINGS COMPLYING WITH THE25
LOCAL PROGRAM ARE REASONABLY SIMILAR TO THE GREENHOUSE GAS26
EMISSION REDUCTIONS THAT WOULD HAVE BEEN ACHIEVED THROUGH27
1269
-10- COMPLIANCE WITH PERFORMANCE STANDARDS ESTABLISHED UNDER THIS1
SECTION;2
(III) A LOCAL JURISDICTION THAT HAS ADOPTED AND3
IMPLEMENTED A BUILDING PERFORMANCE STANDARDS PROGRAM MAY4
ISSUE A CERTIFICATION OR REPORT TO THE OFFICE CONFIRMING WHICH5
COVERED BUILDINGS ARE IN COMPLIANCE WITH THE PROGRAM ; AND6
(IV) DECISIONS MADE BY THE OFFICE REGARDING EQUIVALENCE7
PURSUANT TO SUBSECTION (8.6)(a)(II)(B) OF THIS SECTION ARE SUBJECT8
TO JUDICIAL REVIEW PURSUANT TO SECTION 24-4-106.9
(b) (I) N
OTWITHSTANDING SUBSECTION (8.6)(a) OF THIS SECTION10
AND ANY RULES ADOPTED BY THE COMMISSION BEFORE JULY 1, 2025, AN11
OWNER MAY EITHER COMPLY WITH THE 2026 PERFORMANCE STANDARDS12 OR TRACK ITS PROGRESS TOWARD COMPLIANCE BY SUBMITTING13
BENCHMARKING REPORTS IN ACCORDANCE WITH SUBSECTIONS (3) AND14
(8.6)(b)(II) OF THIS SECTION.15
(II) BEGINNING WITH THE 2025 BENCHMARKING REPORTS16
SUBMITTED IN 2026, AND EACH YEAR THEREAFTER, A COVERED BUILDING17
OWNER OR OPERATOR SHALL, AS PART OF ITS BENCHMARKING REPORTS18
SUBMITTED TO THE OFFICE:19
(A) RESPOND TO ANY STANDARD PROGRESS-RELATED QUESTIONS20
INCLUDED IN THE BENCHMARKING FORM TO HELP ASSESS WHETHER THE21
BUILDING IS ON A PATH TOWARD FUTURE COMPLIANCE ;22
(B) INDICATE WHETHER TECHNICAL ASSISTANCE OR GUIDANCE23
FROM THE OFFICE WOULD BE HELPFUL ; AND24
(C) PROVIDE ANY ADDITIONAL NONPROPRIETARY INFORMATION25
REQUESTED BY THE OFFICE THAT IS RELEVANT TO UNDERSTANDING26
IMPLEMENTATION TRENDS OR COMMON BARRIERS TO COMPLIANCE .27
1269
-11- (III) THE REPORTS REQUIRED UNDER SUBSECTION (8.6)(b)(II) OF1
THIS SECTION MUST INCLUDE ONLY ANSWERS TO THE QUESTIONS THAT ARE2
MINIMALLY NECESSARY TO ASSESS THE COVERED BUILDING OWNER 'S3
PROGRESS TOWARD THE PERFORMANCE STANDARD TARGETS .4
(IV) ANY RULES THE COMMISSION ADOPTED BEFORE JULY 1, 2025,5
THAT IMPOSE ADDITIONAL COMPLIANCE OBLIGATIONS UPON A COVERED6
BUILDING OWNER THAT FAILS TO TIMELY MEET A BUILDING PERFORMANCE7
STANDARD DO NOT APPLY UNTIL 2031 FOR THE 2030 BUILDING8
PERFORMANCE STANDARDS .9
(V) THE OFFICE SHALL PRIORITIZE ANY GRANT MONEY THAT IS10
MADE AVAILABLE FOR OWNERS OF COVERED BUILDINGS :11
(A) T
HAT COMPLY WITH OR ESTABLISH PLANS TO GO BEYOND THE12
2026
PERFORMANCE STANDARDS ; OR13
(B) T
HAT COMPLY WITH THE 2030 PERFORMANCE STANDARD14
EARLY OR ESTABLISH PLANS TO GO BEYOND THE 2030 PERFORMANCE15
STANDARDS.16
(VI) NOTHING IN THIS SUBSECTION (8.6)(b) PRECLUDES OR17
MODIFIES THE DIVISION'S AUTHORITY TO ENFORCE AGAINST AN OWNER OF18
A COVERED BUILDING FOR NONCOMPLIANCE WITH 2030 PERFORMANCE19
STANDARDS OR PERFORMANCE STANDARDS SET FOR SUBSEQUENT YEARS .20
(8.7) N
OTWITHSTANDING THE REQUIREMENTS OF SUBSECTION21
(8)(a)(II)
OF THIS SECTION OR RULES ADOPTED PURSUANT TO THAT22
SUBSECTION, SUBSECTION (8.6) OF THIS SECTION IS NECESSARY
FOR23
COVERED BUILDINGS TO EFFECTIVELY IMPLEMENT THE PERFORMANCE24
STANDARDS. THE COMMISSION IS NOT REQUIRED TO REVISE RULES THAT25
WERE ADOPTED PURSUANT TO THIS SECTION BEFORE JULY 1, 2025.26
(8.8) (a) ENERGY USE THAT A COVERED BUILDING OWNER27
1269
-12- DEMONSTRATES IS ATTRIBUTABLE TO ELECTRIC VEHICLE CHARGING SHALL1
NOT BE INCLUDED IN A COVERED BUILDING'S TOTAL ENERGY USAGE FOR2
PURPOSES OF COMPLIANCE WITH BUILDING PERFORMANCE STANDARDS .3
(b) A COVERED BUILDING OWNER MAY, AFTER CONSULTATION4
WITH THE OFFICE, REQUEST DOCUMENTATION DEMONSTRATING THAT :5
(I) THE COVERED BUILDING IS IN CURRENT COMPLIANCE WITH THE6
COMMISSION'S RULES ADOPTED IN ACCORDANCE WITH THIS SECTION; AND7
(II) THE COVERED BUILDING IS ON A PATH TOWARD MEETING8
UPCOMING COMPLIANCE OBLIGATIONS, BASED ON THE PERFORMANCE9
STANDARDS, CONDITIONS, AND BUILDING-SPECIFIC PLANS THAT ARE IN10
EFFECT AT THE TIME OF THE COVERED BUILDING OWNER 'S REQUEST.11
(c) CONSISTENT WITH RULES ADOPTED BY THE COMMISSION , THE12
OFFICE SHALL DEVELOP GUIDANCE CONCERNING INDIVIDUALIZED TARGET13
AND COMPLIANCE GUIDELINES FOR COVERED BUILDING OWNERS THAT14
DEMONSTRATE A SIGNIFICANT INCREASE IN ENERGY USE DUE TO THE15
EXPANSION OF A DATA CENTER OR TELECOMMUNICATIONS OPERATION. A16
COVERED BUILDING OWNER'S INDIVIDUALIZED ENERGY EFFICIENCY17
TARGET CAN REFLECT INCREASED ELECTRICITY CONSUMPTION OVER TIME18
FROM A DATA CENTER OR TELECOMMUNICATIONS OPERATION IF ALL19
COST-EFFECTIVE ENERGY EFFICIENCY AND ELECTRIFICATION MEASURES20
HAVE BEEN PERFORMED. CONSISTENT WITH RULES ADOPTED BY THE21
COMMISSION REGARDING TIMELINES AND ADJUSTMENTS FOR BUILDING22
PERFORMANCE STANDARD TARGETS, INDIVIDUALIZED TARGETS AND23
COMPLIANCE TIMELINES MAY BE ADJUSTED MULTIPLE TIMES BASED ON THE24
EVOLVING GROWTH OF ENERGY CONSUMPTION BY THE COVERED BUILDING .25
SECTION 4. In Colorado Revised Statutes, add 24-38.5-123 as26
follows:27
1269
-13- 24-38.5-123. Building decarbonization enterprise - creation1
- membership - powers and duties - building decarbonization2
enterprise cash fund - legislative declaration - definitions - rules -3
report - repeal. (1) Legislative declaration. (a) T HE GENERAL4
ASSEMBLY FINDS THAT:5
(I) R
EDUCING GREENHOUSE GAS EMISSIONS FROM COMBUSTION6DEVICES IN RESIDENTIAL AND COMMERCIAL BUILDINGS IS NECESSARY TO7
HELP THE STATE ACHIEVE ITS STATEWIDE GREENHOUSE GAS EMISSION8
REDUCTION GOALS SET FORTH IN SECTION 25-7-102 (2)(g);9
(II) C
OVERED BUILDING OWNERS ARE REQUIRED TO COMPLY WITH10
BENCHMARKING REQUIREMENTS AND PERFORMANCE STANDARD11
REQUIREMENTS AND WOULD BENEFIT FROM ADDITIONAL FINANCIAL AND12
TECHNICAL ASSISTANCE TO MEET THOSE REQUIREMENTS ; AND13
(III) W
ITH ADDITIONAL FINANCING AND TECHNICAL ASSISTANCE ,14
COVERED BUILDING OWNERS MAY
MORE EFFECTIVELY AND EFFICIENTLY15
IMPLEMENT BUILDING DECARBONIZATION MEASURES , INCLUDING, BUT NOT16
LIMITED TO, PROGRAMS THAT PROVIDE ASSISTANCE FOR CONDUCTING17
BUILDING ENERGY AUDITS, DEVELOPING ANALYSES TO HELP BUILDING18
OWNERS EVALUATE THE BEST STRATEGIES FOR ACHIEVING FUTURE19
PERFORMANCE STANDARD TARGETS, EMPLOYING OR CONSULTING WITH20
BUILDING ENGINEERS, PURCHASING ENERGY USE TRACKING SOFTWARE FOR21
COVERED BUILDING OWNERS TO MORE EFFECTIVELY TRACK ENERGY USE ,22
AND PROVIDING TRAINING ON SUCH SOFTWARE .23
(b) N
OW, THEREFORE, THE GENERAL ASSEMBLY DECLARES THAT :24
(I) I
T IS IN THE PUBLIC INTEREST TO CREATE AN ENTERPRISE25
WITHIN THE OFFICE THAT IS COMMITTED TO FINANCING AND PROVIDING26
TECHNICAL AND OTHER SUPPORT FOR THE IMPLEMENTATION OF BUILDING27
1269
-14- DECARBONIZATION MEASURES ;1
(II) T
HE ACTIVITIES OF THE ENTERPRISE SHALL BE FUNDED BY2
REVENUE GENERATED FROM
A BUILDING DECARBONIZATION FEE PAID BY3
COVERED BUILDING OWNERS AND ANY GIFTS , GRANTS, AND DONATIONS4
RECEIVED;5
(III) I
T IS APPROPRIATE THAT COVERED BUILDING OWNERS SHOULD6
PAY A BUILDING DECARBONIZATION FEE , AS COVERED BUILDING OWNERS7
ARE THE DIRECT BENEFICIARIES OF SERVICES PROVIDED BY THE8
ENTERPRISE, WHICH SERVICES INCLUDE THE FINANCING AND TECHNICAL9
ASSISTANCE PROVIDED FOR THE BUILDING DECARBONIZATION MEASURES10
DESCRIBED IN SUBSECTION (1)(a)(III) OF THIS SECTION;11
(IV) C
OVERED BUILDING OWNERS BENEFIT FROM THE12
IMPLEMENTATION OF BUILDING DECARBONIZATION MEASURES BECAUSE13
SUCH MEASURES CAN REDUCE COVERED BUILDING OWNERS ' LONG-TERM14
COSTS RELATED TO ENERGY USE;15
(V) C
ONSISTENT WITH THE DETERMINATION OF THE COLORADO16
SUPREME COURT IN NICHOLL V. E-470 PUBLIC HIGHWAY AUTHORITY, 89617
P.2d 859
(COLO. 1995), THAT THE POWER TO IMPOSE TAXES IS18
INCONSISTENT WITH ENTERPRISE STATUS UNDER SECTION 20 OF ARTICLE19
X
OF THE STATE CONSTITUTION, THE GENERAL ASSEMBLY CONCLUDES20
THAT THE
BUILDING DECARBONIZATION FEE IS A FEE, NOT A TAX, AND THE21
ENTERPRISE OPERATES AS A BUSINESS BECAUSE THE BUILDING22
DECARBONIZATION FEE IS:23
(A) I
MPOSED FOR THE SPECIFIC BUSINESS PURPOSES OF PROVIDING24
FINANCING AND TECHNICAL ASSISTANCE TO COVERED BUILDING OWNERS25
TO
MORE EFFECTIVELY AND EFFICIENTLY IMPLEMENT BUILDING26
DECARBONIZATION MEASURES , INCLUDING FEASIBILITY ANALYSES AND27
1269
-15- IMPROVEMENTS THAT WILL REDUCE ENERGY USE AND EMISSIONS ; AND1
(B) C
OLLECTED AT A RATE THAT IS REASONABLY RELATED TO THE2
OVERALL COST OF THE BUSINESS SERVICES BEING PROVIDED ; AND3
(VI) S
O LONG AS THE ENTERPRISE QUALIFIES AS AN ENTERPRISE4
FOR PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION,5
THE REVENUE FROM THE BUILDING DECARBONIZATION FEE IMPOSED ,6
COLLECTED, AND ADMINISTERED BY THE ENTERPRISE IS NOT STATE FISCAL7
YEAR SPENDING, AS DEFINED IN SECTION 24-77-102 (17), OR STATE8
REVENUES, AS DEFINED IN SECTION 24-77-103.6 (6)(c), AND DOES NOT9
COUNT AGAINST EITHER THE STATE FISCAL YEAR SPENDING LIMIT IMPOSED10
BY SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION OR THE EXCESS11
STATE REVENUES CAP, AS DEFINED IN SECTION 24-77-103.6 (6)(b)(I)(G).12
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE13
REQUIRES:14
(a) "B
ENCHMARKING REQUIREMENTS " MEANS THE ENERGY15
BENCHMARKING REQUIREMENTS SET FORTH IN SECTION 25-7-142 (3) WITH16
WHICH AN OWNER
OR OPERATOR OF A COVERED BUILDING IS REQUIRED TO17
COMPLY.18
(b) "B
OARD" MEANS THE BOARD OF DIRECTORS OF THE ENTERPRISE19
APPOINTED PURSUANT TO SUBSECTION (4)(a) OF THIS SECTION.20 (c) "BUILDING DECARBONIZATION ENTERPRISE CASH FUND" OR21
"BUILDING DECARBONIZATION FUND " MEANS THE BUILDING22
DECARBONIZATION ENTERPRISE CASH FUND CREATED IN SUBSECTION23
(6)(a) OF THIS SECTION.24
(d) "BUILDING DECARBONIZATION FEE" OR "FEE" MEANS THE FEE25
PAID BY THE OWNER OF A COVERED BUILDING PURSUANT TO SUBSECTION26
(5)(b)
OF THIS SECTION.27
1269
-16- (e) "COVERED BUILDING" HAS THE MEANING SET FORTH IN SECTION1
25-7-142 (2)(j).2
(f) "COVERED BUILDING OWNER" MEANS AN "OWNER", AS DEFINED3
IN SECTION 25-7-142 (2)(r), OF A COVERED BUILDING.4
(g) "ENTERPRISE" MEANS THE BUILDING DECARBONIZATION5
ENTERPRISE CREATED IN SUBSECTION (3) OF THIS SECTION.6
7
(h) "I
NFLATION" MEANS THE ANNUAL PERCENTAGE CHANGE IN THE8
IN THE UNITED STATES DEPARTMENT OF LABOR 'S BUREAU OF LABOR9
STATISTICS CONSUMER PRICE INDEX , OR A SUCCESSOR INDEX , FOR10
D
ENVER-AURORA-LAKEWOOD FOR ALL ITEMS PAID FOR BY URBAN11
CONSUMERS.12
(i) "O
FFICE" MEANS THE COLORADO ENERGY OFFICE CREATED IN13
SECTION 24-38.5-101.14
(j) "O
N-BILL
PROGRAM" MEANS A UTILITY'S ON-BILL 15
PROGRAM THROUGH WHICH ENERGY EFFICIENCY MEASURES ,16
ELECTRIFICATION MEASURES, AND ENERGY UPGRADES INSTALLED AT A17
PARTICIPATING CUSTOMER'S PREMISES THAT IS ASSOCIATED WITH THE18
UTILITY METER ARE FI NANCED THROUGH LOANS THAT ARE REPAID19
THROUGH MONTHLY UTILITY BILL PAYMENTS .20
(k) "P
ERFORMANCE STANDARDS " HAS THE MEANING SET FORTH IN21
SECTION 25-7-142 (2)(s).22 23
(3) Enterprise created - loan from the office - repayment.24
(a) T
HE BUILDING DECARBONIZATION ENTERPRISE IS CREATED IN THE25
OFFICE AND EXERCISES ITS POWERS AND PERFORMS ITS DUTIES AND26
FUNCTIONS AS A GOVERNMENT -OWNED BUSINESS IN THE OFFICE TO27
1269
-17- EXECUTE ITS BUSINESS PURPOSES SET FORTH IN THIS SUBSECTION (3). THE1
ENTERPRISE IS CREATED FOR THE PURPOSES OF :2
(I) I
MPOSING AND ASSESSING
A BUILDING DECARBONIZATION FEE3
ON OWNERS OF COVERED BUILDINGS ;4
(II) P
ROVIDING TECHNICAL ASSISTANCE , FINANCING, AND OTHER5
PROGRAMMATIC SUPPORT FOR COVERED BUILDING OWNERS ' BUILDING6
DECARBONIZATION MEASURES , INCLUDING, BUT NOT LIMITED TO ,7 CONDUCTING BUILDING ENERGY AUDITS, DEVELOPING ANALYSES TO HELP8
BUILDING OWNERS EVALUATE THE BEST STRATEGIES FOR ACHIEVING9
FUTURE PERFORMANCE STANDARD TARGETS, CONSULTING BUILDING10
ENGINEERS, PURCHASING ENERGY USE TRACKING SOFTWARE, AND11
PROVIDING TRAINING ON SUCH SOFTWARE ;12
(III) HAVING AND EXERCISING ALL RIGHTS AND POWERS13
NECESSARY OR INCIDENTAL TO OR IMPLIED FROM THE SPECIFIC POWERS14
AND DUTIES GRANTED UNDER THIS SECTION ; AND15
(IV) ENSURING THAT THE BUILDING DECARBONIZATION FEE PAID16
BY COVERED BUILDING OWNERS IS USED SOLELY TO SUPPORT PROGRAMS ,17
TECHNICAL ASSISTANCE, AND FINANCIAL ASSISTANCE FOR THE COVERED18
BUILDING OWNERS THAT PAY THE BUILDING DECARBONIZATION FEE.19
(b) T
HE BOARD, IN CONSULTATION WITH THE OFFICE , SHALL20
ADMINISTER THE ENTERPRISE IN ACCORDANCE WITH THIS SECTION .21
(c) (I) T
HE ENTERPRISE CONSTITUTES AN ENTERPRISE FOR22
PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION SO23
LONG AS IT RETAINS THE AUTHORITY TO ISSUE REVENUE BONDS AND24
RECEIVES LESS THAN TEN PERCENT OF ITS TOTAL REVENUES IN GRANTS , AS25
DEFINED IN SECTION 24-77-102 (7), FROM ALL COLORADO STATE AND26
LOCAL GOVERNMENTS COMBINED . SO LONG AS IT CONSTITUTES AN27
1269
-18- ENTERPRISE, THE ENTERPRISE IS NOT SUBJECT TO SECTION 20 OF ARTICLE1
X
OF THE STATE CONSTITUTION.2
(II) T
HE ENTERPRISE IS AUTHORIZED TO ISSUE REVENUE BONDS FOR3
THE EXPENSES OF THE ENTERPRISE , SECURED BY REVENUE OF THE4
ENTERPRISE.5
(d) (I) THE OFFICE MAY TRANSFER MONEY FROM ANY LEGALLY6
AVAILABLE SOURCE TO THE ENTERPRISE FOR THE PURPOSE OF DEFRAYING7
EXPENSES INCURRED BY THE ENTERPRISE BEFORE IT RECEIVES FEE8
REVENUE. THE ENTERPRISE MAY ACCEPT AND EXPEND ANY MONEY SO9
TRANSFERRED, AND, NOTWITHSTANDING ANY STATE FISCAL RULE OR10
GENERALLY ACCEPTED ACCOUNTING PRINCIPLE THAT COULD OTHERWISE11
BE INTERPRETED TO REQUIRE A CONTRARY CONCLUSION , SUCH A12
TRANSFER IS A LOAN FROM THE OFFICE TO THE ENTERPRISE THAT IS13
REQUIRED TO BE REPAID AND IS NOT A GRANT FOR PURPOSES OF SECTION14
20 (2)(d) OF ARTICLE X OF THE STATE CONSTITUTION OR AS DEFINED IN15
SECTION 24-77-102 (7).16
(II) AS THE ENTERPRISE RECEIVES SUFFICIENT REVENUE IN EXCESS17
OF ITS EXPENSES, THE ENTERPRISE SHALL REIMBURSE THE OFFICE FOR THE18
PRINCIPAL AMOUNT OF ANY LOAN MADE BY THE OFFICE, PLUS INTEREST AT19
A RATE AGREED UPON BY THE OFFICE AND THE ENTERPRISE .20
(4) Enterprise board of directors created - membership -21
duties - repeal. (a) T
HE ENTERPRISE BOARD OF DIRECTORS IS CREATED TO22
ADMINISTER THE ENTERPRISE. THE BOARD CONSISTS OF THE FOLLOWING23
NINE MEMBERS:24
(I) T
HE FOLLOWING
SIX MEMBERS APPOINTED BY THE GOVERNOR25
AND CONFIRMED BY THE SENATE :26
(A) A REPRESENTATIVE OF RESIDENTIAL BUILDINGS ;27
1269
-19- (B) TWO REPRESENTATIVES OF COMMERCIAL BUILDINGS, SUCH AS1
OFFICES, MIXED-USE PROPERTIES, MULTIFAMILY HOMES, OR HOSPITALS;2
(C) AN EXPERT IN BUILDING ENERGY EFFICIENCY AND3
DECARBONIZATION;4
(D) A LOCAL GOVERNMENT REPRESENTATIVE WITH EXPERTISE IN5
PLANNING, ENERGY CODES, OR BUILDING DECARBONIZATION; AND6
(E) A UTILITY REPRESENTATIVE;7
(II) T
HE DIRECTOR OF THE OFFICE OR THE DIRECTOR 'S DESIGNEE;8
(III) T
HE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF PUBLIC9
HEALTH AND ENVIRONMENT OR THE EXECUTIVE DIRECTOR 'S DESIGNEE;10
AND11
(IV) T
HE DIRECTOR OF THE PUBLIC UTILITIES COMMISSION OR THE12
DIRECTOR'S DESIGNEE.13
(b) (I) T
HE GOVERNOR SHALL APPOINT INITIAL MEMBERS TO THE14
BOARD PURSUANT TO SUBSECTION (4)(a)(I) OF THIS SECTION ON OR15
BEFORE SEPTEMBER 1, 2025.16
(II) T
HIS SUBSECTION (4)(b) IS REPEALED, EFFECTIVE JULY 1, 2026.17
(c) (I) B
OARD MEMBERS APPOINTED PURSUANT TO SUBSECTION18
(4)(a)(I)
OF THIS SECTION SERVE THREE-YEAR TERMS. A BOARD MEMBER19
MAY SERVE AN UNLIMITED NUMBER OF TERMS .20
(II) N
OTWITHSTANDING SUBSECTION (4)(c)(I) OF THIS SECTION,21
THE GOVERNOR SHALL MAKE THE INITIAL TERMS OF TWO OF THE BOARD22
MEMBERS WHO ARE APPOINTED PURSUANT TO SUBSECTION (4)(a)(I) OF23
THIS SECTION TWO YEARS.24
(d) B
OARD MEMBERS SERVING PURSUANT TO SUBSECTION (4)(a)(I)25
OF THIS SECTION MAY RECEIVE COMPENSATION FROM THE ENTERPRISE ON26
A PER DIEM BASIS FOR REASONABLE EXPENSES ACTUALLY INCURRED IN27
1269
-20- THE PERFORMANCE OF THEIR DUTIES .1
(e) (I) T
HE CHAIR AND VICE-CHAIR OF THE BOARD ARE SELECTED2
BY THE MEMBERS OF THE BOARD IN ACCORDANCE WITH THE BOARD 'S3
BYLAWS.4
(II) (A) T
HE DIRECTOR OF THE OFFICE OR THE DIRECTOR 'S5
DESIGNEE SHALL CALL THE FIRST MEETING OF THE BOARD , AND THE BOARD6
SHALL SELECT THE CHAIR AND VICE -CHAIR AT THAT MEETING IN7
ACCORDANCE WITH SUBSECTION (4)(e)(I) OF THIS SECTION.8
(B) T
HIS SUBSECTION (4)(e)(II) IS REPEALED, EFFECTIVE JULY 1,9
2026.10
(5) Powers and duties - building decarbonization
fee - rules.11
(a) I
N ADDITION TO ANY OTHER POWERS AND DUTIES SPECIFIED IN THIS12
SECTION, THE BOARD HAS THE FOLLOWING POWERS AND DUTIES ON13
BEHALF OF THE ENTERPRISE:14
(I) T
O ADOPT PROCEDURES FOR CONDUCTING THE BOARD 'S15
AFFAIRS;16
(II) T
O ENGAGE THE SERVICES OF CONTRACTORS , CONSULTANTS,17
THE DIVISION OF ADMINISTRATION DESCRIBED IN SECTION 25-1-102 (2)(a), 18
AND THE STAFF OF THE OFFICE FOR PROFESSIONAL AND TECHNICAL19
ASSISTANCE AND ADVICE AND TO SUPPLY OTHER SERVICES RELATED TO20
THE CONDUCT OF THE AFFAIRS OF THE ENTERPRISE WITHOUT REGARD TO21
THE "PROCUREMENT CODE", ARTICLES 101 TO 112 OF TITLE 24. THE22
ENTERPRISE SHALL ENGAGE THE ATTORNEY GENERAL 'S OFFICE FOR LEGAL23
SERVICES. THE ENTERPRISE MAY CONTRACT WITH THE OFFICE FOR THE24
PROVISION OF OFFICE SPACE AND ADMINISTRATIVE STAFF TO THE25
ENTERPRISE AT A FAIR MARKET RATE.26
(III) T
O ESTABLISH AND ADMINISTER A PROGRAM THROUGH WHICH27
1269
-21- OWNERS OF COVERED BUILDINGS MAY APPLY FOR , AND THE BOARD MAY1
REVIEW AND APPROVE APPLICATIONS FOR , FINANCING OR TECHNICAL2
ASSISTANCE FOR BUILDING DECARBONIZATION MEASURES , INCLUDING, BUT3
NOT LIMITED TO, PARTICIPATING IN PROGRAMS THAT HELP FINANCE4
ENERGY EFFICIENCY MEASURES, ELECTRIFICATION MEASURES, AND OTHER5
ENERGY UPGRADES; CONDUCTING BUILDING ENERGY AUDITS ; EMPLOYING6
OR CONSULTING WITH BUILDING ENGINEERS ; AND PURCHASING ENERGY7
USE TRACKING SOFTWARE AND PROVIDING TRAINING ON SUCH SOFTWARE ;8
(IV) T
O IMPOSE THE BUILDING DECARBONIZATION FEE DESCRIBED9
IN SUBSECTION (5)(b) OF THIS SECTION; AND10
(V) T
O HAVE AND EXERCISE ALL RIGHTS AND POWERS NECESSARY11
OR INCIDENTAL TO OR IMPLIED FROM THE SPECIFIC POWERS AND DUTIES12
GRANTED BY THIS SECTION.13
(b) (I) B
EGINNING IN STATE FISCAL YEAR 2026-27 AND IN14
FURTHERANCE OF THE ENTERPRISE 'S BUSINESS PURPOSES, THE BOARD15
SHALL ADOPT RULES FOR THE PURPOSE OF SETTING THE AMOUNT OF THE16
BUILDING DECARBONIZATION FEE AT THE MAXIMUM AMOUNT AUTHORIZED17
IN THIS SUBSECTION (5) TO BE IMPOSED UPON ALL COVERED BUILDING18
OWNERS; EXCEPT THAT THE FEE SHALL NOT BE IMPOSED ON THE OWNER OF19
A PUBLIC BUILDING, AS DEFINED IN SECTION 25-7-142 (2)(t).20
(II) O
N OR BEFORE NOVEMBER 1,
2025, AND ON OR BEFORE EACH21
N
OVEMBER 1 OF EACH YEAR THEREAFTER, AND EXCEPT AS PROVIDED IN22
SUBSECTION (5)(b)(III) OF THIS SECTION, EACH OWNER OF A COVERED23
BUILDING SHALL PAY A BUILDING DECARBONIZATION FEE IN AN AMOUNT24
OF FOUR HUNDRED DOLLARS TO THE OFFICE , WHICH SHALL COLLECT THE25
BUILDING DECARBONIZATION FEE ON BEHALF OF THE ENTERPRISE .26
(III) B
EGINNING IN STATE FISCAL YEAR
2027-28, THE BOARD MAY27
1269
-22- ONLY INCREASE THE BUILDING DECARBONIZATION FEE FROM THE1
PREVIOUS YEAR'S BUILDING DECARBONIZATION FEE TO ADJUST FOR2
INFLATION AND, ON OR BEFORE MARCH 15 OF EACH OF THE STATE FISCAL3
YEARS THEREAFTER, SHALL NOTIFY THE OFFICE OF THE ADJUSTED AMOUNT4
OF THE BUILDING DECARBONIZATION FEE , IF THE BUILDING5
DECARBONIZATION FEE HAS BEEN ADJUSTED. ON OR BEFORE APRIL 15 OF6
EACH OF THE STATE FISCAL YEARS THEREAFTER , THE ENTERPRISE SHALL7
PUBLISH THE UPDATED AMOUNT OF THE FEE ON THE ENTERPRISE'S8
WEBSITE.9
(IV) M
ONEY COLLECTED AS A BUILDING DECARBONIZATION FEE10
SHALL BE CREDITED TO THE
BUILDING DECARBONIZATION ENTERPRISE11
CASH FUND.12
(V) NOTWITHSTANDING SUBSECTION (5)(b)(I) OF THIS SECTION,13
THE BOARD SHALL NOT SET THE BUILDING DECARBONIZATION FEE IN AN14
AMOUNT HIGHER THAN THAT AUTHORIZED BY SUBSECTIONS (5)(b)(II) AND15
(5)(b)(III) OF THIS SECTION.16
(VI) MONEY COLLECTED BY THE OFFICE FOR TRANSFER TO THE17
BUILDING DECARBONIZATION FUND PURSUANT TO SUBSECTION (5)(b)(IV)18
OF THIS SECTION:19
(A) I
S COLLECTED FOR THE ENTERPRISE;20
(B) I
S CUSTODIAL MONEY INTENDED FOR THE ENTERPRISE AND21
HELD TEMPORARILY BY THE OFFICE AND THE STATE TREASURER SOLELY22
FOR THE PURPOSE OF TRANSFERRING THE MONEY TO THE
BUILDING23
DECARBONIZATION FUND FOR USE BY THE ENTERPRISE ; AND24
(C) B
ASED ON THE ENTERPRISE'S STATUS AS AN ENTERPRISE, IS25
NOT SUBJECT TO SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION26
AT ANY TIME DURING THE MONEY 'S COLLECTION, TRANSFER, AND USE.27
1269
-23- (6) Building decarbonization enterprise cash fund - creation1
- repeal. (a) T
HE BUILDING DECARBONIZATION ENTERPRISE CASH FUND2
IS CREATED IN THE STATE TREASURY. THE
BUILDING DECARBONIZATION3
FUND CONSISTS OF:4
(I) M
ONEY RECEIVED
FROM A BUILDING DECARBONIZATION FEE5
IMPOSED PURSUANT TO SUBSECTION (5)(b) OF THIS SECTION;6
(II) A
NY MONEY RECEIVED FROM THE ISSUANCE OF REVENUE7
BONDS, AS DESCRIBED IN SUBSECTION (3)(c)(II) OF THIS SECTION; AND8
(III) A
NY OTHER MONEY THAT THE GENERAL ASSEMBLY MAY9
APPROPRIATE OR TRANSFER TO THE
BUILDING DECARBONIZATION FUND .10
(b) (I) S
ECTION 24-77-108 DOES NOT APPLY TO THE ENTERPRISE11
BECAUSE THE TOTAL AMOUNT OF MONEY CREDITED OR APPROPRIATED TO12
THE
BUILDING DECARBONIZATION FUND AS A BUILDING DECARBONIZATION13
FEE SHALL NOT EXCEED ONE HUNDRED MILLION DOLLARS IN THE FIRST14
FIVE FISCAL YEARS OF THE ENTERPRISE'S EXISTENCE.15
(II) T
HIS SUBSECTION (6)(b) IS REPEALED, EFFECTIVE JULY 1, 2031.16 (c) SUBJECT TO ANNUAL APPROPRIATION BY THE GENERAL17
ASSEMBLY, THE ENTERPRISE MAY EXPEND MONEY FROM THE BUILDING18
DECARBONIZATION FUND FOR THE PURPOSES SET FORTH IN THIS SECTION19
AND TO PAY THE ENTERPRISE'S REASONABLE AND NECESSARY OPERATING20
EXPENSES. THE STATE TREASURER SHALL CREDIT ALL INTEREST AND21
INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE22
BUILDING DECARBONIZATION FUND TO THE BUILDING DECARBONIZATION23
FUND.24
(d) A
NY UNEXPENDED AND UNENCUMBERED MONEY REMAINING25
IN THE
BUILDING DECARBONIZATION FUND AT THE END OF A FISCAL YEAR26
REMAINS IN THE BUILDING DECARBONIZATION FUND AND IS NOT CREDITED27
1269
-24- OR TRANSFERRED TO THE GENERAL FUND .1
(7) Legislative review of building decarbonization enterprise.2
ON OR BEFORE DECEMBER 1 OF EACH YEAR, THE ENTERPRISE SHALL3
SUBMIT AN ANNUAL REPORT TO THE GENERAL ASSEMBLY DETAILING THE4
ENTERPRISE'S EXPENDITURES AND PROGRAM OUTCOMES FROM THE5
PRECEDING YEAR AND THE ENTERPRISE'S FINANCIAL PROJECTIONS FOR THE6
FOLLOWING YEAR.7
SECTION 5. In Colorado Revised Statutes, 25-7-122, amend8
(1)(i) as follows:9
25-7-122. Civil penalties - rules - definitions. (1) Upon10
application of the division, the division may collect penalties as11
determined under this article 7 by instituting an action in the district court12
for the district in which the air pollution source affected is located, in13
accordance with the following provisions:14
(i) (I) On and after January 1, 2024, and Except as provided15
in subsection (1)(i)(II) of this section, an owner of a covered building that16
violates:17
(A) Section 25-7-142 (3) or (6) is subject to a civil penalty of up18
to five hundred SEVENTY-SEVEN dollars for a first violation and up to two19
thousand THREE HUNDRED dollars for each subsequent violation, As part20
of the requirement that the commission adopt rules to establish21
performance standards pursuant to section 25-7-142 (8)(c), the22
commission shall establish by rule, with regard to a violation of the23
performance standards, civil penalties in an amount not to exceed two24
thousand dollars for a first violation and five thousand dollars for a25
subsequent violation WHICH AMOUNTS THE COMMISSION SHALL, BY RULE,26
ANNUALLY ADJUST BASED ON THE ANNUAL PERCENTAGE CHANGE IN THE27
1269
-25- UNITED STATES DEPARTMENT OF LABOR'S BUREAU OF LABOR STATISTICS1
CONSUMER PRICE INDEX , OR A SUCCESSOR INDEX , FOR2
DENVER-AURORA-LAKEWOOD FOR ALL ITEMS PAID BY URBAN3
CONSUMERS.4
(B) ON AND AFTER JANUARY 1, 2030, PERFORMANCE STANDARDS5
ADOPTED BY THE COMMISSION PURSUANT TO SECTION 25-7-142 OR THAT6
VIOLATES THE REQUIREMENTS OF SECTION 25-7-142 (8.6) IS, FOR A FIRST7
VIOLATION, SUBJECT TO A CIVIL PENALTY IN AN AMOUNT NOT TO EXCEED8
TWO THOUSAND THREE HUNDRED DOLLARS FOR EVERY THIRTY DAYS THAT9
THE OWNER IS IN VIOLATION AND, FOR EACH SUBSEQUENT VIOLATION,10
SUBJECT TO A PENALTY IN AN AMOUNT NOT TO EXCEED FIVE THOUSAND11
EIGHT HUNDRED DOLLARS FOR EVERY THIRTY DAYS THAT THE OWNER IS12
IN VIOLATION, WHICH AMOUNTS THE COMMISSION, BEGINNING IN 2026,13
SHALL, BY RULE, ANNUALLY ADJUST IN ACCORDANCE WITH SUBSECTION14
(1)(i)(I)(A) OF THIS SECTION.15
(II) The division shall not assess a civil penalty for a violation16
related to a public building.17
(II.5) NOTWITHSTANDING RULES THAT THE COMMISSION ADOPTED18
BEFORE JULY 1, 2025, A CIVIL PENALTY FOR A VIOLATION OF SECTION19
25-7-142 OR RULES ADOPTED BY THE COMMISSION TO IMPLEMENT SECTION20
25-7-142 SHALL BE DETERMINED IN A MANNER CONSISTENT WITH THIS21
SUBSECTION (1)(i) AND SUBSECTION (2) OF THIS SECTION.22
(III) Notwithstanding section 25-7-129, the division shall transmit23
civil penalties collected pursuant to this subsection (1)(i) to the state24
treasurer, who THIS SUBSECTION (1)(i), AS PAID BY OWNERS OF COVERED25
BUILDINGS FOR A VIOLATION OF SECTION 25-7-142 OR RULES ADOPTED BY26
THE COMMISSION TO IMPLEMENT SECTION 25-7-142, shall credit them BE27
1269
-26- CREDITED to the climate change mitigation and adaptation fund created1
in section 24-38.5-102.6.2
(IV) As used in this subsection (1)(i):3
(A) "Covered building" has the meaning set forth in section4
25-7-142 (2)(j).5
(B) "Owner" has the meaning set forth in section 25-7-142 (2)(r).6
SECTION 6. In Colorado Revised Statutes, 24-38.5-403, add (4)7
as follows:8
24-38.5-403. Energy code training - energy code adoption -9
grant writing assistance. (4) N
OTWITHSTANDING SUBSECTION (3) OF10
THIS SECTION, THE COLORADO ENERGY OFFICE MAY USE FUNDING11
PROVIDED THROUGH SUBSECTION (3) OF THIS SECTION TO
COVER THE12
COSTS OF THE FOLLOWING: 13
(a) THE ENERGY CODE BOARD CONVENED PURSUANT TO SECTION14
24-38.5-401 (2);15
(b) THE TASK FORCE CREATED IN SECTION 25-7-142 (8.5); AND16
(c) THE COSTS TO THE COLORADO ENERGY OFFICE FOR17
PARTICIPATING IN RULE-MAKING THAT THE AIR QUALITY CONTROL18
COMMISSION ENGAGES IN PURSUANT TO SECTION 25-7-142.19
SECTION 7. In Colorado Revised Statutes, 24-38.5-102.6,20
amend (1) introductory portion and (1)(a) as follows:21
24-38.5-102.6. Climate change mitigation and adaptation fund22
- creation - use. (1) The climate change mitigation and adaptation fund,23
referred to in this section as the "fund", is hereby created in the state24
treasury. The fund consists of:25
(a) Civil penalties ASSESSED PURSUANT TO SECTION 25-7-12226
(1)(b) AND credited to the fund pursuant to section 25-7-122 (1)(i)(III);27
1269
-27- SECTION 8. In Colorado Revised Statutes, 24-38.5-112, amend1
(1)(a)(III) and (1)(a)(IV) as follows:2
24-38.5-112. Building performance program - duties of the3
office - county assessor records database - fees - definitions. (1) The4
Colorado energy office shall implement a building performance program5
as follows:6
(a) Based on county assessor records and other available sources7
of information, the office shall administer the building performance8
program by:9
(III) Maintaining a list of noncompliant owners; and10
(IV) In a form and manner determined by the office, in11
consultation with the division of administration in the department of12
public health and environment, periodically providing the division with13
a list of noncompliant owners for the division's enforcement of the14
building performance program. pursuant to section 25-7-122 (1)(i).15
SECTION 9. Appropriation. (1) For the 2025-26 state fiscal16
year, $3,000,000 is appropriated to the office of the governor for use by17
the Colorado energy office. This appropriation is from the building18
decarbonization enterprise cash fund created in section 25-7-142.5 (6)(a),19
C.R.S. To implement this act, the office may use this appropriation for the20
building decarbonization enterprise.21
SECTION 10. Effective date - applicability. (1) This act takes22
effect upon passage; except that section 4 of this act takes effect only if23
House Bill 25-1268 does not become law.24
(2) This act applies to conduct occurring on or after the effective25
date of this act.26
SECTION 11. Safety clause. The general assembly finds,27
1269
-28- determines, and declares that this act is necessary for the immediate1
preservation of the public peace, health, or safety or for appropriations for2
the support and maintenance of the departments of the state and state3
institutions.4
1269
-29-