Colorado

State Scorecard Rank

Colorado

30.5Scored out of 50Updated 12/2022

State Government
Buildings
CHP
Utilities
Transportation
Appliance Standards

State Government

Score: 3 out of 4.5

State Government Summary List All

Colorado offers several consumer incentives for energy efficiency, as well as PACE financing. The state government leads by example through an energy savings target in public facilities, benchmarking energy usage in state buildings, requiring energy-efficient fleets, and encouraging energy savings performance contracting. Researched focused on energy efficiency takes place at several institutions in the state.

Financial Incentives List All

The state of Colorado offers the following financial incentives to encourage energy efficiency improvements:

Green CO Credit Reserve
Agricultural Energy Efficiency Program: The program works to make achieving energy efficiency easy for Colorado producers by addressing barriers that prevent producers from investing in energy efficiency. The program brings existing resources and partners together while leveraging outside funding, creating a turnkey approach.
Energy Savings for Schools Program
Colorado Residential Energy Upgrade (RENU) Loan Program: The RENU Loan program is a statewide residential loan program sponsored by the Colorado Energy Office in partnership with Elevations Credit Union. It provides low-cost, long-term financing for energy efficiency and renewable energy improvements. Rates start at 2.75%. Terms from 3 to 15 years. Loans from $500 up to $35,000.

Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE Colorado). In addition to these state-funded incentives, Colorado has enabled commercial Property Assessed Clean Energy (PACE) financing and has one active program. For additional information on PACE, visit PACENation.

Last Reviewed: June 2022

Equity Metrics and Workforce DevelopmentList All

Colorado WAP is running a pilot program to install air source heat pumps. This pilot will help WAP clients with electrification both now via direct install and in the future once the pace of electrification and its impacts on energy rates are better understood. Colorado WAP will be expanding its community engagement approach starting July 1, 2021, with a focus on EDI for engagement across Colorado communities.

Workforce Development

The heat pump pilot program will likely lead to significant heat pump expertise development within both Colorado WAP and also across the state. Colorado has a low level of heat pump expertise as a result of historically low level of air conditioning system installation and repair. This low level of air conditioning expertise leads to a lack of knowledge of refrigerant-based cooling and heating systems; as a result, Colorado has a steeper learning curve than other states when it comes to heat pump installation. The WAP air source heat pump pilot will assist in electrification workforce development.

CEO is working closely with utilities such as Xcel Energy, Tri-State Generation & Transmission, Holy Cross Energy, Platte River Power Authority, and other organizations such as the Energy Efficiency Business Coalition as part of the Beneficial Electrification League of Colorado, to coordinate and promote heat pump contractor training across the state. CEO has also funded webinars to raise awareness of heat pump technologies and their benefits.

Additionally, CEO provides funding to a nonprofit, Energy Smart Colorado, to provide partial scholarships to individuals to obtain or maintain a BPI or RESNET certification and who work in rural, mountain, or other underserved areas of the State. The funding also pays for small grants for individuals to purchase or maintain energy testing equipment needed for energy assessments or ratings.

Last Reviewed: July 2021

Carbon Pricing PoliciesList All

The State of Colorado does not yet have carbon pricing policies in place.

Per state legislation HB19-1261 and HB19-1313, Colorado does have a statewide emissions reduction goal in place, specifically to reduce emissions 90% by 2050 (baseline year 2005).

Last Reviewed: September 2022

Building Energy Disclosure List All

There is no disclosure policy in place.

The “Energy Performance for Buildings” Statute (House Bill 21-1286) passed the Colorado General Assembly on June 8, 2021 and went into effect on September 6, 2021. This law requires owners of large commercial, multifamily, and public buildings 50,000 square feet or more to annually report their whole-building energy use to the Colorado Energy Office (CEO) beginning December 1, 2022. Thereafter, buildings will need to report their previous year's energy use by June 1. More information can be found here: www.buildingperformanceco.com

Additionally, several cities across the State have passed building commercial benchmarking policies including Denver, Boulder, Fort Collins, and Aspen.

Last Reviewed: May 2022

Public Building Requirements List All

Executive Order D0011 07 ("Greening of State Government"), signed in 2007, charged State departments, agencies and offices to take a position of leadership in the by reducing state energy consumption. Specifically, the order set a goal that by fiscal year 2011-2012, state government achieve at least a 20 percent reduction in energy consumption of state facilities below fiscal year 2005-2006 levels. Executive Order D 2015-013, signed in 2015, renews this goal and requires all state agencies and departments to reduce energy consumption per square foot by 2% annually and at least 12% by FY 2020, from a baseline of FY 2015. State agencies and departments are further directed to achieve an absolute reduction of energy consumption by 5% over the same time period. As part of the executive order, all agencies are required to use EnergyCAP, a utility management software, to monitor and manage utility use and costs. In addition, on an annual basis, each agency shall develop an energy management plan outlining progress from the previous year and setting out strategies to achieve the energy reduction goal for the upcoming year. This EO establishes a new Greening Government Leadership Council, tasked with supporting efforts to make government operations more sustainable. The Council consists of one representative from every state agency.

Executive Order D 005-05, signed in July 2005, requires all state government agencies and departments to adopt the LEED rating system for existing and new buildings to ensure reductions in energy use to the extent practical and cost effective. The executive order also requires an energy management program within state agencies to monitor and manage utility use and costs. Executive Order D2010-006 expanded this requirement, calling for all state buildings to track energy use, with the exception of higher-educational buildings due to their unique relationship with the state. Under this directive, agencies must provide details from tracking energy and water consumption to paper usage and reduction. K-12 schools are now subject to very high efficiency standards after the passage of SB 13-279 in 2013. The goal of this school efficiency bill is to create resource-efficient schools, which use 33% less energy and 32% less water that their conventional counterparts.

Clean Energy Economy for the Region (CLEER) supports the tracking of energy use in public buildings through its Active Energy Management Program. The program has helped schools and public buildings save 10-30% of their energy use without retrofits. CLEER has assisted over 80 public buildings in western Colorado to track and manage their energy use.

The State of Colorado is in the process of setting one and five year goals in numerous areas including energy and water efficiency, petroleum reduction, environmentally preferable purchasing, and greenhouse gas emission reduction. The State is also developing directives for agencies and departments that ensure successful achievement of the goals. These include the requirement that all agencies prepare annual energy and water management plans and that energy performance contracting feasibility studies be performed for all state-owned buildings.

Colorado's High Performance Certification Program (HPCP) requires that buildings funded with state moneys or with moneys guaranteed or insured by the state where such moneys constitute at least 25 percent of the project cost achieve the highest performance certification attainable as certified by an independent third party pursuant to the high performance standard certification program. Colorado's Office of State Architect has approved the use of three different programs under this policy: U.S. Green Building Council, Leadership in Energy and Environmental Design New Construction (USGBC LEED-NC) guideline with "Gold" as the targeted certification level; the Green Building Initiative (GBI), Green Globes guideline with "Three Globes" as the targeted certification level; and for the Colorado Department of Education, K-12 construction, the Collaborative for High Performance Schools (US-CHPS) is an optional guideline with "Verified Leader" as the targeted certification level.

While State buildings are exempt from local ordinances, the State of Colorado buildings are voluntarily participating in Denver's recently passed ordinance on benchmarking and transparency. Starting in June 2018, all State buildings over 50,000 square feet in the City and County of Denver will voluntarily benchmark utility data using Portfolio Manager and make this information available to the public. In June 2018, the State will do the same for buildings over 25,000 square feet.

Executive Order D 2019 016, signed December 2019, amends and replaces Executive Order D 2018 026 concerning the Greening of State Government. This EO builds on the State's prior greening govenrment efforts, and establishes new goals and directives that will save taxpayers money and reduce the impact of State operations on the environment and public health, including:

Reduce greenhouse gas emissions by at least 10% below 2014-15 levels by the end of fiscal year 2022-2023.
Reduce energy consumption per square foot by at least 15% by the end of fiscal year 2022-23.
Increase the percentage of renewable electricity by 5% by the end of 2022-23. That would come from state-owned renewable energy systems; renewable energy purchased through a power purchase agreement, or through a solar garden subscription; utility renewable energy purchase programs; and/or leased rooftop solar or other renewable energy installation.

In 2022, a new law was passed (HB22-1362) to update the minimum building energy codes that a jurisdiction with building codes needs to adopt, upon adopting or updating any other building codes. This law pertains to all state agencies that oversee building codes, including the Office of the State Architect, which oversees building codes for all construction by state agencies on state-owned or state lease-purchased properties or facilities. It also includes the Colorado Department of Public Safety, Division of Fire Prevention and Control, which adopts building codes for the construction of public K-12 schools and junior colleges.

Last Reviewed: June 2022

Fleets List All

Executive Order D 2015-013 directs all state agencies and departments to reduce average petroleum-based fuel consumption per vehicle by a minimum of 4% annually and at least 20% by 2020 from a baseline of 2015 or 2% annually and at least 10% by 2020 for Department of Public Safety Highway Patrol vehicles. Executive State agencies and departments shall further achieve an absolute reduction in petroleum-based fuel consumption by 15% or 7.5% for vehicles deemed exempt over the same time period.

In January 2018, the State released the Colorado Electric Vehicle Plan. In addition to actions designed to build out high-speed corridor charging stations and accelerate adoption of EVs, there are multiple lead by example goals and strategies assigned to the State of Colorado. These include 200 EVs in the State fleet by 2020, creation of a workplace charging policy, development of a price agreement for EV charging stations, and improvements to the State’s vehicle procurement process that better facilitates purchase of alternative fuel vehicles. In April 2020, the State released an updated version of the Colorado Electric Vehicle Plan. The fleet procurement goal was updated, requiring State agencies to purchase 375 EVs by January 2022, with a goal of electrifying all vehicles that have appropriate use cases by 2030.

Executive Order D 2019 016 directs all agencies to reduce greenhouse gas emissions from State fleet vehicles by at least 15% by the end of FY 2022-23 from a baseline of FY 2014-15 or at least 7.5% by the end of FY 2022-23 for vehicles categorized as special use. The executive order further requires that all agencies priorize EVs for light duty applications.

Executive Order D 2022 016, signed in April 2022, has a number of electrification-related goals and requirements. Agencies are required to purchase battery electric vehicles (BEVs) in cases where BEVs meet the Agency’s and/or Department’s operational needs and infrastructure is in place or is planned to be in place prior to vehicles arriving. Agencies and/or Departments may continue to purchase plug-in hybrid electric vehicles (PHEV) in cases where PHEVs better match the operational needs or charging infrastructure is planned for installation before arrival of the vehicles. Furthermore, Agencies and Departments must ensure that EVs (BEVs and PHEVs) are the default vehicle type for all light-duty vehicles for future vehicle purchases, and if an electric model is available to the State that is the same vehicle type approved for replacement, the agency shall select the EV. In cases where an Agency and/or Department believes that the selected EV will not meet the operational need, Agencies and/or Departments may request reconsideration of the selection or preferably, defer the purchase until the following year.

The 2020 Colorado Electric Vehicle Plan includes a quantitative goal for EV procurement - State agencies will prioritize purchase of ZEVs for light-duty applications, increasing the number of ZEVs in operation or on order from at least 200 by end of 2020 to 375 by January 2022, with a goal of electrifying all vehicles that have appropriate use cases by 2030. During the most recent vehicle procurement cycle, State agencies ordered more than 150 EVs, bringing the number of EVs in the fleet today or on order to approximately 400, exceeding the goal. A 2022 version of the Colorado Electric Vehicle Plan will be released later this year and will include a new goal for agency EV procurement for the next 2 years.

Colorado State Government also has charging infrastructure-related requirements. In addition to installing new stations at nearly 100 State facilities as a result of funding made available through SB21-230, the executive order requires that as part of new construction projects that include parking, 20% of parking spaces must be pre-wired (conduit and wiring) or EV-capable (conduit only) for Level 2 charging, and at least 5% must have Level 2 chargers installed. The installation requirement increases to 10% for proposed projects initiated in or after FY 2025-26. In addition, projects may substitute one direct current fast charger (DCFC) for every five Level 2 ports for the installation and pre-wire or EV-capable requirement where the technology is appropriate for the use case.

Lastly, the State Controller recently relased a policy that allows agencies to assign EVs that are taken home at night and where needed, install infrastructure at an employees home (dedicated circuit and if needed, charging station) and reimburse employees for the electricity used to charge a State vehicle.

Last Reviewed: June 2022

Energy Savings Performance Contracting List All

Since Colorado established its Energy Performance Contracting Program (EPC) in the mid-1990s, 156 public jurisdictions have worked with an energy services company (ESCO) to identify $28.7 million in annual utility savings through a technical energy audit. Because each technical energy audit is a high-quality, investment-grade audit, these guaranteed utility savings have been leveraged to attract $606 million in capital construction funds. As of December 31, 2019, 224 active and completed projects have improved the performance of public school and university buildings, veterans facilities, libraries, parks, state, municipal and county administrative buildings, community and recreation centers, courthouses, capitol buildings, wastewater treatment plants, prisons and other government buildings in communities across 75% of Colorado's counties

Last Reviewed: July 2020

Research & Development List All

The Colorado Energy Office (CEO) conducted research to identify opportunities for energy savings in the marijuana growing industry and the industrial sector. Multiple industry-specific stakeholders and independent researchers contributed to the research reports. Both the marijuana industry and others addressed the need for current energy use data to make informed decisions. The Colorado marijuana energy use research report will provide a cost-benefit calculator to help growers understand the financial benefits of incorporating energy efficient technologies into their operations and identify energy efficient operational strategies and technologies or energy efficiency supportive policies that are relevant and available to the industry.

The Engines and Energy Conversion Lab (EECL) at Colorado State University conducts research on smart grid technology and engine efficiency, primarily in advanced ignition systems and after-treatment systems.

The Institute for the Built Environment (IBE) at Colorado State University engages faculty and industry partners in healthy and sustainable building issues including energy efficient construction, integration of clean energy technologies and sustainable built environments.

The Renewable and Sustainable Energy Institute (RASEI) at the University of Colorado at Boulder is a joint institute with the National Renewable Energy Laboratory with a mission to research and develop ways to produce energy at a lower cost, with higher efficiency, and with reduced emissions.

The Research in Delivery, Usage, and Control of Energy (ReDUCE) research group at the Colorado School of Mines includes energy efficiency projects such as the Cyber-Enabled Efficiency Energy Management of Structure (CEEMS), sponsored by the National Science Foundation, which conducts research on the sensing and control of energy flow in buildings, as enabled by cyber infrastructure.

The Center for Renewable Energy Economic Development (CREED) is a catalyst for economic development in Colorado through clean energy and energy efficiency innovation and entrepreneurship. Its stakeholders support the creation and growth of clean tech companies throughout the State of Colorado and represent economic development, academia, incubators, industry associations, and government.

CREED is a product of National Renewable Energy (NREL) and partners with state government agencies such as the Colorado Energy Office and the Office of Economic Development and International Trade, and industry groups such as the Colorado Cleantech Industry Association. NREL consistently works with Colorado universities on energy efficiency projects and plays a role in a number of collaborations throughout the state. Besides RASEI and CREED, NREL also partners with state universities as part of the Colorado Energy Research Collaboratory, a research consortium that works with industry and public agencies to create and speed the commercialization of renewable energy technologies and energy efficiency.

The Energy Research Collaboratory is a consortium of three state institutions of higher education the University of Colorado at Boulder, Colorado State University, the Colorado School of Mines, and the National Renewable Energy Laboratory. The Energy Research Collaboratory is a consortium of three state institutions of higher education the University of Colorado at Boulder, Colorado State University, the Colorado School of Mines, and the National Renewable Energy Laboratory.

Last Reviewed: July 2019

Important Links List All

Buildings

Score: 8 out of 12

Buildings Summary List All

Colorado is a home-rule state, but under state statute (House Bill 19-1260), local jurisdictions are required to adopt one of the three most recent versions of the International Energy Conservation Code at a minimum, upon updating any other building code. As of May 2021, 86% of Colorado's population is on the 2012, 2015 or 2018 IECC. More than 2.7 million Coloradans, or 48% of the state's population, live in a jurisdiction that has adopted the 2018 IECC. More than 60 jurisdictions have adopted the 2018 IECC so far, with many more in the process or under consideration.

Additional information on Colorado building energy codes can be found here.

Several local jurisdictions have strengthened their building energy codes by requiring electric vehicle readiness and net zero energy construction, among other green construction requirements.

Last reviewed: May 2021

Residential Codes List All

Colorado is a home-rule state, but under state statute, local jurisdictions are required to adopt one of the three most recent versions of the International Energy Conservation Code at a minimum, upon updating any other building code. In 2022, a new law was passed (HB22-1362) to update the minimum building energy codes that a jurisdiction with building codes needs to adopt, upon adopting or updating any other building codes. The 2015 IECC is the adopted code for all modular homes. Local governments are permitted to develop or adopt any stretch, or advanced building code they see fit. Some have adopted EV-ready codes.

As of May 2022, nearly 87% of Colorado's population is on the 2015, 2018, or 2021 IECC. Seventy-five jurisdictions, covering nearly 60% of the state's population, have adopted the 2018 or the 2021 IECC so far, with many more in the process or under consideration.

As a home-rule state, local governments are permitted to develop or adopt any stretch, or advanced building code they see fit. Some have adopted EV-ready codes.

The City of Boulder adopted its own Energy Conservation Code for residential and commercial buildings.
Pitkin County has an Efficient Building Ordinance.
City and County of Denver (link). Denver has also developed a Net Zero Energy roadmap and has begun stakeholder meetings to update its building codes by the end of 2021.
Fort Collins (link)

Last Reviewed: May 2022

Commercial Code List All

The construction of health care and K-12 school facilities is regulated by the State of Colorado Division of Fire Prevention and Control which has adopted the 2021 IECC for these facility types.

The 2018 IECC is the minimum building energy code for the construction of state-owned facilities.

Factory-built nonresidential structures and hotels, motels, and multi-family dwellings in areas of the State where no building codes exist, must meet the 2015 IECC.

Last Reviewed: May 2022

Compliance List All

Baseline & Updated Compliance Studies: Colorado is undergoing a residential code compliance study now as part of a DOE-funded grant that was awarded to NASEO. The field testing has been completed and we are awaiting the analysis from PNNL to begin training focused on any gaps identified in compliance. Previously, in 2016, Colorado completed a commercial code compliance study to assess compliance for 2009 IECC. The Department of Energy requested that Colorado conduct quantitative and qualitative analysis to determine energy saved by complying with the code, as well as energy not saved due to non-compliance. Colorado received feedback from code officials and plan examiners noting that the commercial code is complex and time intensive. As a result, Colorado developed a simple methodology that looks at how buildings use energy and identified the top 15 code requirements that focus on high impact energy uses. Colorado is now administering trainings to jurisdictions and code officials on how to use this top 15 compliance checklist for the most effective use of time and effort. Earlier, in 2013, Colorado completed a statewide evaluation of energy code compliance. It found a rate of more than 90% compliance for residential construction, noting that more work could be done with HVAC systems. It also found that compliance with commercial codes was only 28%.
Utility Involvement: Xcel Energy provided $50,000 per calendar year in 2019 and 2020 to support code trainings within its electric and natural gas service territories. Xcel Energy also plans to conduct a study in 2019 to identify the potential for energy efficiency impacts associated with code trainings and potential product designs for future implementation.
Stakeholder Advisory Group: The Colorado Energy Code Compliance Collaborative is highly involved in building code compliance. The Collaborative's mission is to facilitate compliance with local energy codes and to coordinate energy code actions and policies throughout the state. The Collaborative was originally started and supported with funding from BCAP. Now, it is self-supporting and meets on a quarterly basis.
Training/Outreach: By statute, the Colorado Energy Office provides energy code education to builders, designers, engineers and architects. The CEO provides these services at no additional cost to local governments and stakeholders (including building code officials, plans examiners, inspectors, etc.) The CEO provides in-depth, in-person trainings across the state if jurisdictions request it as well as webinars taught by code experts on a variety of residential and commercial code topics. All of the online trainings are recorded and saved on our YouTube channel (and linked to from CEO's Code Adoption Toolkit) so that anyone can watch the webinars on demand. The Colorado Energy Office also provides technical assistance to local governments – again, at no additional cost – to help them adopt, implement, and enforce building energy codes.

Last Reviewed: May 2022

Important Links List All

CHP

CHP Summary List All

Colorado has some policies in place to encourage CHP including supportive interconnection policies and net metering rules. No new CHP systems were installed in 2018.

Interconnection StandardsList All

Policy: Code of Colorado Regulations 723-3

Description: Modeled very closely on the Federal Energy Regulatory Commission’s (FERC) interconnection standard for small generators, Colorado’s interconnection standards are a product of its Renewable Energy Standard, adopted in 2005. Like the FERC standard, Colorado delineates three distinct tiers of interconnection to cover systems up to 10MW in size. CHP is explicitly eligible for interconnection under these standards. In the 2008, the Colorado House of Representatives enacted H.B. 1160, requiring municipal utilities to essentially adopt the PUC's interconnection rules.

The PUC adopted new rules for net metering in September 2009, as required by SB 51. The new rules made relaxed some of the insurance requirements for interconnection, and addressed utility concerns with highly seasonal circuits and voltage flicker.

Last Updated: July 2018

Encouraging CHP as a ResourceList All

There are currently no state policies designed to acquire energy savings from CHP (like other efficiency resources) or energy generation from CHP (in terms of kWh production) that apply to all forms of CHP.

Last Reviewed: July 2019

Deployment IncentivesList All

Incentives, grants, or financing: CHP may be eligible for loans or other assistance from the Colorado Energy Office. Xcel Energy offers incentives of approximately $11.91/MWh for the first ten years of production.

Net metering: Net metering rules apply to CHP in Colorado. Customer-generators are eligible for net metering in Colorado for retail renewable distributed generation, but different rules apply to investor-owned utilities (IOUs), municipal utilities, and electric cooperatives. All utilities are subject to the rules (except small municipal utilities) and credit net excess generation on the customer's next bill at the retail rate.

Last Reviewed: July 2019

Additional Supportive PoliciesList All

Some additional supportive policies exist to encourage CHP in Colorado. The state encourages the use of renewable-fueled CHP systems and waste heat to power (WHP), which qualify under Colorado’s Renewable Energy Standard.

In a December 2014 ruling, the Colorado Public Utilities Commission approved Public Service Company of Colorado, a subsidiary of Xcel Energy, to provide financial incentives to industrial facilities for WHP in Colorado. The ruling allows Xcel Energy to pay an incentive of about $500 per kilowatt of recycled energy over 10 years, thereby reducing the payback period on a company’s initial investment. Individual projects can be as large as 10 megawatts, and there is no minimum project size.

Colorado Energy Office has partnered with DOE's Upper-West CHP Technical Assistance Partnership to offer recycled energy and CHP no-cost feasibility assessments for a limited number of facilities and Susan Brodie of the Heat is Power Association on an outreach initiative to drive further recycled energy and CHP development in Colorado

Last Reviewed: July 2019

Utilities

Score: 9 out of 15

Utilities Summary List All

Colorado’s utilities administer a growing portfolio of energy efficiency programs with oversight by the Public Utilities Commission (PUC). The state enacted legislation in 2007 requiring the PUC to establish energy savings goals for gas and electric utilities (thereby creating an EERS) and to give investor-owned utilities a financial incentive for implementing cost-effective efficiency programs. Both Xcel Energy, and Black Hills Energy have expanded their demand-side management (DSM) programs in recent years. The utilities file DSM plans annually, and are working toward the most recent EERS targets which have ramped up to 1.68% in 2020.

HB 1227, signed in June 2017, extends electric efficiency programs to 2028 and requires the commission to set goals of at least 5% peak demand reduction and 5% energy savings by 2028 for demand-side management programs implemented during 2019 through 2028 when compared to a 2018 baseline.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last reviewed: April 2022

Customer Energy Efficiency Programs List All

Funding for energy efficiency has increased substantially in Colorado in recent years since the state adopted an EERS in 2007. Xcel Energy (operating as Public Service of Colorado (PSCo)) is the major investor-owned utility (IOU) in Colorado and administers its programs after they have been approved by the Colorado Public Utilities Commission. Xcel Energy’s programs are funded by a demand-side management cost adjustment mechanism rate rider. Black Hills Energy is the other IOU that serves electricity to customers in the state and generally follows Xcel Energy’s energy efficiency savings targets.

Natural gas programs are also available in Colorado. The 2007 state legislation required that the Colorado Public Utilities Commission set energy savings goals for natural gas, which are commensurate with spending targets of at least 0.5% of the prior year’s revenues.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last reviewed: July 2019

Energy Efficiency as a Resource List All

Energy efficiency is not included within the commission’s definition of a supply-side resource in the Rules Regulating Electric Utilities. However, in one of Public Service Company’s Electric Resource Plan filings, it appears that the commission required the company to modify its plan to include modeling for approved DSM programs (Docket No. 07A-447E, Decision No. C08-0929). House Bill 1164 requires the PUC to include the possible impacts of future greenhouse gas regulation on electricity prices when evaluating utility resource plans.

Last reviewed: July 2019

Energy Efficiency Resource Standards List All

Summary: Electric: Starting in 2019, savings targets for PSCo are raised from 400 GWh to 500 GWh per year, or roughly 1.7% of sales. Natural Gas: HB 21-1238 (2021) directs the PUC to set savings targets for gas utility DSM plans based upon the maximum cost-effective and achievable level of savings.

The Colorado legislature passed HB-07-1037 in April 2007, which amended Colorado statutes C.R.S. 40-1-102 and 40-3.2-101-105 by requiring the Colorado Public Utilities Commission (COPUC) to establish energy savings goals for investor-owned electric and gas utilities. The EERS statute did not set a fixed schedule of statewide percentages of energy savings to be achieved by particular years, nor did it require the acquisition of all cost-effective energy efficiency resources. Instead, it set an overall multi-year statewide savings goal for investor-owned electric utilities of at least 5% of the utility's retail sales (and a 5% peak demand reduction) relative to a 2006 baseline to be met by the end of 2018. For investor-owned natural gas utilities, the EERS legislation structured the requirement in two parts. First, the natural gas IOUs were required to set DSM spending targets of more than 0.5% of revenues from customers in the prior year. Energy savings targets are then established by COPUC commensurate with spending and are stated in terms of quantity of gas saved per dollar of efficiency program spending.

HB 1227 (June 2017) extended programs to 2028, requiring the commission to set goals of at least 5% peak demand reduction and 5% energy savings by 2028 for demand-side management programs implemented during 2019 through 2028 compared to a 2018 baseline. The statute includes a similar goal for reduction of peak demand of 5% of the retail system peak in 2006. The Commission ruled in Proceeding No. 17A-0462EG that PSCo's goal for annual energy savings for 2019-2023 be 500 GWh, an increase from the goal of 400 GWh that had been in effect.

HB 21-1238, signed in 2021, strengthens natural gas efficiency programs, directing the PUC to set savings targets for gas utility DSM plans based upon the maximum cost-effective and achievable level of savings. In addition SB 21-264 (2021) created new requirements for the state's large gas utilities to develop comprehensive Clean Heat Plans designed to achieve GHG reductions.

In January 2022 a settlement agreement was reached related to Tri-State Generation and Transmission Association's 2020 Electric Resource Plan, setting GHG reduction targets for 2025-27 with a goal to reduce emissions at least 80% by 2030 from a 2005 baseline. Among the provisions of the agreement are new first-ever incremental annual energy efficiency savings targets for the electric co-op, with goals to reduce system load at least 0.35% in 2023, 0.5% by 2024, 0.75% by 2025, and 1% by 2030.

Last reviewed: April 2022

Utility Business Model List All

All investor-owned natural gas utilities in Colorado recover lost revenues through an Acknowledgement of Lost Revenues (ALR) mechanism. The gas DSM rules were proposed in Proceeding No. 07R-371G and adopted in Decision No. C08-0248, which was issued on March 7, 2008. The ALR is only calculated for first-year savings. Electric utilities do not recover lost revenues.

The 2009/10 Demand-Side Management (DSM) Plan was intended to remove disincentives to efficiency, offset revenue and earnings erosion, and reward utility performance, among other things, for the Public Service Company of Colorado. The PUC indicated that it is not appropriate and likely not feasible to define in a docket the lost margins resulting from DSM. Instead, it addressed the financial disincentives of DSM with a fixed payment of $2 million after taxes (approximately 3.2. million gross) for each year that 80% of the annual energy savings goal for an approved DSM plan is achieved, with the option that the offset could be adjusted downward in the case that the 80% target is not achieved. This amount is recovered over the 12-month period following the year in which the DSM plan is implemented. The PUC specifically notes that this “disincentive offset” should not be considered lost margin recovery but rather as an annual bonus for meeting approved DSM goals. Incentives are also included in the mechanism, and utilities achieving efficiency targets can earn a percentage of the net economic benefits generated by those savings. Combined total incentive payments are capped at 20% of PSCo’s annual DSM expenditures.

In 2018, the Commission ruled that, given the new 500 GWh energy savings goal, PSCo will begin to receive a performance incentive only when reaching 80% of the goal, or at 400 GWh (Decision No. C18-0417 Proceeding No. 17A-0462EG). There will be a disincentive offset of $3M that PSCo will earn in two installments; the first $1.5M will be given once PSCo reaches 400 GWh of savings (80% of goal), and the second $1.5M will be given when the company reaches 450 GWh of savings (90% of goal). The performance incentive for PSCo is 40% of incremental net benefits above 280 GWh up to 550 GWh upon achievement of at least 400 GWh. Total incentives are capped at $18M.

For natural gas utilities, the incentive bonus is capped at 25% of the expenditures or 20% of the net economic benefits of the DSM programs, whichever amount is lower.

Last reviewed: July 2019

Evaluation, Measurement, & Verification List All

Primary cost-effectiveness test(s) used: total resource cost test
Secondary tests used: participant cost test, ratepayer impact measure test, utility cost test, societal cost test

The evaluation of ratepayer-funded energy efficiency programs in Colorado relies on regulatory orders. Evaluations are administered by the utilities. Colorado has established formal rules and procedures for evaluation. The utilities submit a set of technical assumptions as part of their respective plan filings, which are approved by the Commission (see Stipulation and Settlement Agreement in Public Service Company Docket No. 08A-366EG). Statewide evaluations are conducted. According to the Database of State Efficiency Screening Practices (DSESP), Colorado relies on the Total Resource Cost (TRC) test and considers it to be its primary cost-effectiveness test. The rules for benefit-cost tests are stated in PUC HB 07-1037. These benefit-cost tests are required for overall portfolio and total program level screening. Colorado’s TRC accounts for avoided costs of compliance with emissions regulations and benefits associated with improved public health, participant health and environmental benefits. Additional non-energy benefits (NEBs) may be included in a 10% adder as determined by the commission.

Further information on cost-effectiveness screening practices for Colorado is available in the Database of State Efficiency Screening Practices (DSESP), a resource of the National Efficiency Screening Project (NESP). Further information on health and environmental benefits is available in ACEEE’s Overview of State Approaches to Account for Health and Environmental Benefits of Energy Efficiency.

Last Updated: January 2019

Guidelines for Low-Income Energy Efficiency Programs List All

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

HB 21-1238 (2021), requiring gas utilities to develop energy savings targets every four years, includes a requirement that 25% of residential DSM programs target low-income households.

In 2007, the Colorado General Assembly passed HB 1037, which, in addition to establishing energy savings goals for utilities, also instructed them to make sure that low-income customers had access to DSM programs. This was codified in Colorado statute 40-3.2.104, which directs utilities to provide funding for low-income energy-assistance programs such as bill assistance and weatherization through the assessment of a public benefits charge.

This funding is administered by the Colorado Energy Assistance Foundation (now Energy Outreach Colorado), created under section 40-8.5-104. Energy Outreach Colorado is required to file a report with the commission annually, showing amounts of money collected under the public benefits charge and demonstrating that the funds were used towards low-income energy bill payment assistance and energy efficiency improvements for affordable housing and non-profit facilities.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Decision No. C08-0560 directs the Colorado Public Service Commission to pursue all cost-effective low-income DSM programs, “but to not forego DSM programs simply because they do not pass a 1.0 TRC test.” It also directs that, in applying the TRC to low-income DSM programs, “the benefits included in the calculation shall be increased by 20%, to reflect the higher level of non-energy benefits that are likely to accrue from DSM services to low-income customers.” This was increased further to 50% for low-income measures and products in April 2018 under Decision No. C18-0417.

To avoid unintended impacts to calculations of benefits pursuant to performance incentives, the decision also allows utilities to exclude these costs in these determinations: “To address this concern we find that the costs and benefits associated with any low-income DSM program that is approved and has a TRC below 1.0 may be excluded from the calculation of net economic benefits. Further, the energy and demand savings may be applied toward the calculation of overall energy and demand savings, for purposes of determining progress toward annual goals.”

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

The Colorado Commission on Low-Income Energy Assistance is responsible for coordinating the state’s low-income energy assistance services pursuant to C.R.S. § 40-8.5-103.5 and Executive Order D 026 07. Many Colorado utilities have decided to enter into agreements with the Colorado Energy Office, the federal Weatherization Assistance Program grantee, and/or non-profits like Energy Outreach Colorado or community action agencies. In these instances, the funds generated by monthly surcharges are given to these other entities to provide services to the utility’s low-income customers.

Last reviewed: October 2022

Self Direct and Opt-Out Programs List All

Self-direct programs for large customers are offered by Xcel Energy and Black Hills.

Xcel's self-direct program is available to commercial and industrial electric customers who have an aggregated peak load of at least 2 MW in any single month, an aggregated annual energy consumption of at least 10 GWh, and who are not allowed to participate in other conservation products offered by the company. Rebates are paid based on actual savings from a project, up to $525 per customer kW or $0.10 per kWh; rebates are given for either peak demand or energy savings but not both and are limited to 50% of the incremental cost of the project. Xcel uses raw monitoring results and engineering calculations to demonstrate actual energy and demand savings based on monitoring results.

To participate in the C&I Self-Direct program offered by Black Hills, customers must have an aggregated peak load greater than 1 MW in any single month and aggregated annual energy usage of 5,000 MWh. Rebates and savings are calculated on a case-by-case basis; rebate values are calculated as either 50% of the incremental cost of the project or $0.30 per kWh savings, whichever is lower.

More information on large customer self-direct programs can be found in the ACEEE report, Follow the Leaders: Improving Large Customer Self-Direct Programs.

Last reviewed: July 2019

Data AccessList All

Guidelines for Third Party Access

In decision R15-0406 from 2015, the Commission modernized its rules for utilities to provide customer information (including energy use) to third parties with customer consent. A 2-page standardized consent form was authorized, and 4 CCR 723-3 Section 3027(d) was modified to read: “As part of basic utility service, a utility shall provide to the customer’s standard customer data in electronic machine-readable form, without additional charge, to the customer or to any third party recipient to whom the customer has authorized disclosure of the customer’s customer data. Such access shall conform to nationally-recognized open standards and best practices.”

Requirements for Provision of Energy Use Data

No policies are in place that require the provision of energy use data.

Energy Use Data Availability

The state does not have an online standardized system through which access to individual or aggregated energy use data may be requested.

Last Updated: July 2018

Important Links List All

Transportation

Score: 6.5 out of 13

Transportation Summary List All

In 2013, Colorado passed legislation that allows the entire local share of the Highway Users Tax Fund to be used for public transit, bicycle, and pedestrian investments. The state also has incentives for high-efficiency vehicles. Additionally, in 2018 the state passed SB 1, which created a new multimodal transportation fund allocated to bicycle, pedestrian, and transit funding.

On November 16, 2018, Colorado adopted a version of California’s low emission vehicle (LEV) standards for new light-duty and medium-duty motor vehicles sold in Colorado to take effect in the 2022 model year. The standards commit Colorado to increasingly stringent fuel efficiency standards through model year 2025.

In August 2019, the state adopted a zero emission vehicle (ZEV) standard that will impose gradually increasing sales quotas on vehicle manufacturers, thus increasing the percentage of zero emission vehicles in Colorado. The rule allows for early action credit starting with model year 2021. Colorado's Air Quality Control Commission approved the proposed measure 8-1. More information here: https://www.colorado.gov/pacific/cdphe/zero-emission-vehicle-mandate-proposal.

The State of Colorado has adopted the goal of having 940,000 electric vehicles on the road by 2030, including at least 1,000 zero-emission transit vehicles. The State is currently in the process of developing more detailed goals for medium-and heavy duty vehicles.

Tailpipe Emission Standards List All

In August 2019, the State of Colorado adopted a zero emission vehicle (ZEV) standard that will impose gradually increasing sales quotas on vehicle manufacturers, thus increasing the percentage of zero emission vehicles in Colorado. The rule allows for early action credit starting with model year 2021. Colorado's Air Quality Control Commission approved the proposed measure 8-1. More information here: https://www.colorado.gov/pacific/cdphe/zero-emission-vehicle-mandate-proposal.

Last Reviewed: November 2022

Transportation System Efficiency List All

Transportation and Land use Integration: No policy in place or proposed.

VMT Targets: No executive order, legislation, or mandate in place or proposed, but the Colorado Department of Transportation identified a FY 2020 goal to reduce VMT per capita by approximately 1% per year and expects to maintain this goal in future fiscal years.

GHG Reduction Goal: HB19-1261 set GHG reduction goals of 26% by 2025, 50% by 2030 and 90% by 2050 (compared to a 2005 baseline). The Colorado GHG roadmap process is currently in progress with results and recommended GHG reduction measures to be presented to the State Air Quality Control Commission in Fall 2020.

FAST Freight Plans and Goals: Colorado has a state freight plan, but it does not identify a multimodal freight network or include freight energy or greenhouse gas reduction goals. The Colorado Department of Transportation, Colorado Energy Office, and other state partners have committed to working with the Freight Advisory Council and other industry stakeholders to collaboratively develop medium- and heavy-duty zero-emission vehicle goals, strategies, and resources for the freight and delivery sector by July of 2021 with the long-term goal of 100% MD/HD ZEVs.

Last Reviewed: November 2022

Transit Funding List All

Colorado adopted the FASTER legislation in 2009, which created a State Transit and Rail fund that accumulates $5 million annually. The legislation also allocated $10 million a year from the Highway Users Tax Fund to the maintenance and creation of transit facilities.

The state subsequently passed SB 48 in 2013, which allowed for the entire local share of the Highway Users Trust Fund (derived from state gas tax and registration fees) to be used for public transit and bicycle or pedestrian investments.

Additionally, in 2018 the state passed SB 1, which created a new multimodal transportation fund allocated to bicycle, pedestrian, and transit funding. The bill as written allocated approximately $75 million in the current fiscal year; $22.5 million the following year; and $7.5 million/yr for 20 years. In addition, state law requires that a minimum of 10% of any general fund transfer to the DOT must go to public transit. This applies to debt funding authorized by SB 17-267, and is anticipated to result in approximately $92 million of debt financed transit dollars in the next few year.

Last Reviewed: November 2022

Incentives for High-Efficiency Vehicles List All

Colorado offers a flat $4,000 credit for the purchase of a light-duty electric vehicle and makes the credits assignable to a car dealer or finance company effectively turning the credit into a point of sale incentive. In 2021, this credit falls to $2,500 and then again to $2,000 in 2022, before phasing out entirely at the end of 2025. Credits are also available for medium- and heavy-duty trucks. Colorado also offers $2,000 for a leased electric vehicle in calendar year 2020 and $1,500 between 2021 and 2025.

Last Reviewed: November 2022

Equitable Access to TransportationList All

Public transit access

Colorado does not have any state programs in place to incentivize the creation of low-income housing near transit facilities, but it does consider the proximity of transit facilities when distributing federal Low-Income Housing Tax Credits to qualifying property owners.

Equitable transportation electrification

The 2020 Colorado Electric Vehicle Plan contains goals around engaging people that contains several actions related to EV Equity that include: conducting and EV Equity Study and incorporating the findings of that study in transit electrification grant programs and the medium- and heavy-duty vehicle electrification strategies. This plan can be found here.

The Colorado DOT is currently working with partners to develop an approach for ensuring that transit EVs are deployed equitably, providing access to low-income and other underserved communities. The intention to include these considerations in future grant selection criteria and measure the distribution of funds moving forward to track progress and continually improve.

Last Reviewed: November 2022

Appliance Standards

Score: 2 out of 3

Appliance Standards Summary List All

Policy: CRS § 6-7.5-101 et seq.

Description: In 2014, the Colorado state legislature adopted SB 14-103, An Act Concerning the Phase-Out of the Sale of Certain Low-Efficiency Plumbing Fixtures. The policy requires the sale of plumbing fixtures meeting WaterSense standards for lavatory faucets, toilets, urinals and showerheads. These standards went into effect in September 2016.

Legislation in 2019 (HB19-1231) updated and adopted standards for water efficiency and energy efficiency that apply to a list of 15 consumer and commercial appliances and other products. The standards are based on state standards, federal Energy Star and WaterSense specifications, and industry standards in most cases or, where a standard is not incorporated by reference, the standard is specified by statute.

The standards apply to new products sold in Colorado and are phased in over a period of three years, with general service lamps covered beginning in 2020, air compressors and portable air conditioners covered beginning in 2022, and all other listed products covered beginning in 2021. The bill keeps in place the water efficiency standards on certain products that were added to the Colorado statutes in 2014. The bill also includes a provision to adopt federal light bulb standards in case of repeal or rollback.