ColoradoHB25-12692025 Regular SessionHouseWALLET

Building Decarbonization Measures

Sponsored By: Alex Valdez (Democratic), Cathy Kipp (Democratic), Jenny Willford (Democratic), Matt Ball (Democratic)

Signed by Governor

EnergyNatural Resources & Environment

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Bill Overview

Analyzed Economic Effects

11 provisions identified: 7 benefits, 4 costs, 0 mixed.

Local wildfire codes avoid energy-code trigger

Colorado counties and municipalities do not have to adopt and enforce the specified energy code just because they adopt a wildfire resiliency code. This removes that automatic link; it does not remove energy-code duties arising for other reasons.

Building owners gain alternative compliance paths

Owners using the standard percentage-reduction path can use 2019 as their starting point. They must submit complete, accurate 2019 data by November 1, 2027. Local-program compliance also satisfies state standards when the Energy Office finds reasonably similar emissions cuts; owners must maintain compliance and confirm it yearly. Local governments can certify compliant buildings, and Office decisions about program equivalence can be challenged in court. After consulting the Office, owners can request documentation of current compliance and their path toward upcoming duties, based on current rules and plans.

Building owners get early compliance relief

Covered-building owners can report progress instead of meeting the 2026 performance standards. Reports filed in 2026 for 2025 data must answer limited progress questions, identify assistance needs, and provide requested relevant nonproprietary information. Questions must be limited to what is needed to assess progress. Extra duties for missing 2030 standards, imposed by rules adopted before July 1, 2025, do not apply until 2031. These changes do not remove the 2030 standards or enforcement of 2030 and later standards.

More project help for building owners

The law makes the Building Decarbonization Enterprise assistance program contingent on House Bill 25-1268 not becoming law. The program lets covered-building owners apply for financing, energy audits, engineering help, and energy-tracking software and training. Separately, the Energy Office must prioritize available grants for owners meeting the 2026 standards or planning to exceed them. Priority also covers owners meeting 2030 standards early or planning to exceed them. The law does not guarantee grants or set award amounts.

Public buildings keep fee and penalty protections

The Air Quality Control Commission cannot remove or change public-building owners’ exemptions from the annual fee or building decarbonization fee. It also cannot remove or change their civil-penalty exemptions through rule changes.

State funds building upgrade program operations

The law makes the enterprise cash fund and startup-loan authority contingent on House Bill 25-1268 not becoming law. The fund receives fees, bond proceeds, and other state money; spending requires annual legislative approval, and unused money stays in the fund. The Energy Office can lend legally available money for costs incurred before fee revenue arrives. The enterprise must repay principal and agreed interest when revenue exceeds expenses enough to repay. The law also provides $3 million from the fund for implementation and enterprise work in state fiscal year 2025-26.

Tailored energy rules for covered buildings

Owners can exclude energy used for electric-vehicle charging from performance calculations when they show it came from charging. The Energy Office must develop guidance for individualized targets for significant energy increases caused by data-center or telecommunications expansion. Targets can account for added electricity only after all cost-effective efficiency and electrification measures are completed. The guidance can allow repeated target and deadline changes as energy use changes, consistent with commission rules.

Annual fee for covered building owners

The law makes this fee requirement contingent on House Bill 25-1268 not becoming law. It sets a $400 annual building decarbonization fee for covered-building owners, except owners of public buildings. Payments are due November 1, starting in 2025. Beginning in state fiscal year 2027-28, the board can raise the fee using inflation adjustments, within statutory limits. Total fee revenue is capped at $100 million for the first five fiscal years; that cap ends July 1, 2031.

Building owners face recurring violation penalties

Covered-building owners face penalties up to $577 for a first specified violation and $2,300 for each later violation. Starting January 1, 2030, performance-standard and certain related violations carry penalties for every 30 days. Limits are $2,300 per 30 days for a first violation and $5,800 per 30 days for later violations. All amounts adjust yearly with inflation, and violations related to public buildings are exempt. Collected penalties go to the climate change mitigation and adaptation fund.

Building owners must file energy reports

Covered-building owners must submit yearly energy-use reports by November 1, starting in 2026 with 2025 data. Beginning in 2025 for 2024 data, an operator must report when the owner shows it cannot access the required data. Owners and operators must run automated data checks and fix errors. Eligible master-metered groups without submeters, correctional facilities, and public buildings can report together at the campus level.

State sets long-term building energy standards

The Air Quality Control Commission must adopt 2040 building standards that help meet or exceed applicable greenhouse-gas targets. The Air Pollution Control Division must propose them by June 1, 2029, after Energy Office consultation and considering task-force recommendations. The task force must be appointed by July 1, 2027, and deliver recommendations by July 1, 2028. Standards must consider capital-planning cycles, workable upgrade deadlines, technical feasibility, and reasonable costs; task-force analysis must consider avoiding early equipment replacement. The Energy Office can use existing energy-code funding for the Energy Code Board, the task force, and its related rulemaking work.

Sponsors & Cosponsors

Sponsors

  • Alex Valdez

    Democratic • House

  • Cathy Kipp

    Democratic • Senate

  • Jenny Willford

    Democratic • House

  • Matt Ball

    Democratic • Senate

Cosponsors

  • Andrew Boesenecker

    Democratic • House

  • Chad Clifford

    Democratic • House

  • Elizabeth Velasco

    Democratic • House

  • Jennifer Bacon

    Democratic • House

  • Jamie Jackson

    Democratic • House

  • Junie Joseph

    Democratic • House

  • Javier Mabrey

    Democratic • House

  • Julie McCluskie

    Democratic • House

  • Jacque Phillips

    Democratic • House

  • Kyle Brown

    Democratic • House

  • Karen McCormick

    Democratic • House

  • Lesley Smith

    Democratic • House

  • Monica Duran

    Democratic • House

  • Meg Froelich

    Democratic • House

  • Manny Rutinel

    Democratic • House

  • Naquetta Ricks

    Democratic • House

  • Steven Woodrow

    Democratic • House

  • Tammy Story

    Democratic • House

  • William Lindstedt

    Democratic • Senate

  • Dafna Michaelson Jenet

    Democratic • Senate

  • Sen. F. Winter

    Affiliation unavailable

  • Iman Jodeh

    Democratic • Senate

  • Judy Amabile

    Democratic • Senate

  • Jeff Bridges

    Democratic • Senate

  • Katie Wallace

    Democratic • Senate

  • Lisa Cutter

    Democratic • Senate

  • Mike Weissman

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 356 • No: 155

Senate vote • 5/7/2025

Third reading: Amend (l.030)

Yes: 35 • No: 0

House vote • 5/7/2025

Senate amendments: Concur

Yes: 41 • No: 21

House vote • 5/7/2025

Senate amendments: Repass

Yes: 42 • No: 23

Senate vote • 5/7/2025

Third reading: Bill

Yes: 24 • No: 11

Senate vote • 5/6/2025

Third reading: Amend (l.029)

Yes: 35 • No: 0

Senate vote • 5/6/2025

Third reading: Bill

Yes: 24 • No: 11

Senate vote • 5/1/2025

Refer House Bill 25-1269 to the Committee of the Whole.

Yes: 4 • No: 3

Senate vote • 4/29/2025

Refer House Bill 25-1269, as amended, to the Committee on Appropriations.

Yes: 6 • No: 3

House vote • 4/23/2025

Third reading: Bill

Yes: 40 • No: 24

House vote • 4/23/2025

Third reading: Amd (l.021)

Yes: 41 • No: 23

House vote • 4/23/2025

Third reading: Perm

Yes: 42 • No: 21

House vote • 4/11/2025

Refer House Bill 25-1269, as amended, to the Committee of the Whole.

Yes: 6 • No: 5

House vote • 3/27/2025

Refer House Bill 25-1269, as amended, to the Committee on Appropriations.

Yes: 7 • No: 6

House vote • 3/6/2025

Refer House Bill 25-1269, as amended, to the Committee on Finance.

Yes: 9 • No: 4

Actions Timeline

  1. Governor Signed

    5/20/2025House
  2. Signed by the President of the Senate

    5/16/2025Senate
  3. Signed by the Speaker of the House

    5/16/2025House
  4. Sent to the Governor

    5/16/2025House
  5. Senate Recalled Bill From House

    5/7/2025Senate
  6. Senate Third Reading Reconsidered - No Amendments

    5/7/2025Senate
  7. House Considered Senate Amendments - Result was to Concur - Repass

    5/7/2025House
  8. Senate Third Reading Passed with Amendments - Floor

    5/6/2025Senate
  9. House Considered Senate Amendments - Result was to Laid Over Daily

    5/6/2025House
  10. Senate Third Reading Laid Over Daily - No Amendments

    5/5/2025Senate
  11. Senate Second Reading Special Order - Passed with Amendments - Committee, Floor

    5/2/2025Senate
  12. Senate Committee on Appropriations Refer Unamended to Senate Committee of the Whole

    5/1/2025Senate
  13. Senate Committee on Finance Refer Amended to Appropriations

    4/29/2025Senate
  14. Introduced In Senate - Assigned to Finance

    4/24/2025Senate
  15. House Third Reading Passed with Amendments - Floor

    4/23/2025House
  16. House Second Reading Special Order - Passed with Amendments - Committee, Floor

    4/22/2025House
  17. House Second Reading Laid Over Daily - No Amendments

    4/15/2025House
  18. House Committee on Appropriations Refer Amended to House Committee of the Whole

    4/11/2025House
  19. House Committee on Finance Refer Amended to Appropriations

    3/27/2025House
  20. House Committee on Energy & Environment Refer Amended to Finance

    3/6/2025House
  21. Introduced In House - Assigned to Energy & Environment

    2/18/2025House

Bill Text

  • Engrossed

  • Final Act

  • House Appropriations Preamend

  • House Energy & Environment Preamend

  • House Finance Preamend

  • Introduced

  • Reengrossed

  • Rerevised

  • Rerevised (2)

  • Revised

  • Senate Finance Preamend

  • Signed Act

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