Energy Performance For Buildings

Section 1 of the act requires owners of certain large buildings (covered buildings), on an annual basis, to collect and report to the Colorado energy office (office) the covered building's energy use. The act establishes a process requiring certain electric and gas utilities to provide energy-use data to a covered building owner when requested by the covered building owner.

On or before October 1, 2021, the director of the office is required to appoint and convene a task force consisting of various building owners, building professionals, utility representatives, and local government representatives to recommend performance standards for adoption as rules by the air quality control commission (commission). The performance standards set forth in rule would need to achieve a reduction in greenhouse gas emissions of 7% by 2026 compared to 2021 levels as reported in energy benchmarking data and by 20% by 2030 compared to 2021 levels. The performance standards adopted must include a provision that an owner of a public building need only comply with the performance standards with regard to certain types of construction or renovation projects and only if the construction or renovation project has an estimated cost of at least $500,000. Covered building owners would then need to demonstrate their compliance with the performance standards set forth in the commission's rules. The commission is also required to adopt rules regarding the issuance of waivers and extensions of time for performance standard compliance. The commission may adopt additional rules, as the commission deems necessary, to modify or continue the performance standards.

Section 2 authorizes the office to use the energy fund to help finance its work to administer the benchmarking and performance standard program described in section 1 (program).

Section 3 requires the office to administer the program and assist covered building owners with the reporting requirements set forth in section 1 by:

• Creating a database of covered buildings and owners required to comply with section 1;
• Tracking compliance with the program and providing a list of noncompliant owners of covered buildings to the division of administration in the department of public health and environment;
• Developing publicly available, digitally interactive maps and lists showing the energy-use and performance-standard data reported;
• Coordinating with any local government that implements its own energy benchmarking requirements or energy performance program, including coordination of reporting requirements; and
• Collecting an annual fee from owners of covered buildings of $100 per covered building; except that owners of public buildings are exempt from paying the fee. The office is required to transfer the fees collected to the state treasurer, who will credit the fees to the climate change mitigation and adaptation fund (fund) created in section 3.

Section 4 imposes penalties for violations of the benchmarking requirements in amounts up to $500 for a first violation and up to $2,000 for each subsequent violation. The commission is required to establish by rule civil penalties for a violation of the commission's performance standards in an amount not to exceed $2,000 for a first violation and $5,000 for a subsequent violation.

Section 5 modifies the definition of an "energy performance contract" that a governing body of a municipality, county, special district, or school district (board) enters into for evaluation, recommendations, or implementation of energy saving measures to remove requirements that a board's payment for goods and services pursuant to the contract be made within a certain number of years of the contract's execution.

(Note: This summary applies to this bill as enacted.)