Panel advances bill to expand financing and tax incentives for low‑carbon building materials
Loading...
Summary
Senate Bill 182 would allow Colorado’s CPACE financing and the state industrial tax credit (CITCO) to cover embodied‑carbon improvements for private construction projects. The measure passed the committee 11-2 after stakeholder testimony from industry, unions and environmental groups.
Senate Bill 182, which would expand Colorado's commercial property assessed clean energy (CPACE) financing and the industrial tax credit to include low‑carbon or lower embodied‑carbon building materials, passed from the Transportation, Housing & Local Government Committee to the Committee of the Whole on a favorable recommendation, 11-2.
Representative Ped Brown, the bill's sponsor, said the measure "expands CPACE to include low carbon construction materials, which will reduce upfront cost barriers for developers and help level the green premium on alternative materials." Co‑prime sponsor Representative Weinberg said the bill uses incentives rather than mandates and "leaves decision making where it belongs with local governments and private industry." Both urged an aye vote.
The bill drew broad support from labor, environmental and industry witnesses. Elena Santarella of the BlueGreen Alliance said tracking embodied carbon "remains a key strategy to cut pollution from the industrial sector, renew the United States' commitment to high quality manufacturing facilities, and create quality manufacturing jobs in the process." Michael Turner of the Colorado Energy Office described the bill as "a valuable step" and explained that CPACE financing uses private capital and an opt‑in county model; he said CPACE has financed 38 projects totaling just under $300,000,000 since 2015.
Industry witnesses — including Todd Uhlhiser of the Colorado Ready Mix Concrete Association and a Loveland Ready Mix representative — testified in support, saying the financing and incentives would help make lower‑carbon materials cost‑competitive. Chris, the founding director of the 4 Corners Carbon Coalition, and Darma Santos Santiago of NRDC said Colorado‑based innovation and local producers could benefit as demand grows.
Committee members asked substantive implementation questions about greenhouse‑gas accounting and who would receive incentives. Representative Richardson asked how accounting would compare final designs to baselines; Michael Turner said the bill directs the energy office to develop policies for evaluating embodied carbon "in conjunction with stakeholders" after the bill passes.
Representative Soukla and others probed whether imported materials would be eligible; industry witnesses said the bill applies to construction projects in Colorado and that details about eligibility and baselines will be set in rulemaking and program guidance.
Several amendments were offered earlier in the process and the sponsors reported no amendments in committee. Representatives noted this is an opt‑in program using existing financing mechanisms and tax credits rather than new direct state spending.
The committee voted to send SB 182 to the Committee of the Whole with a favorable recommendation. The recorded tally at committee was 11 yes, 2 no. Representative Lindsey moved the referral with a favorable recommendation.
Background and implications: Supporters said embodied carbon can account for a substantial share of a building's lifetime emissions and that including embodied‑carbon mitigation in CPACE and the industrial tax credit (CITCO) will reduce barriers for developers adopting low‑carbon materials. The bill instructs the Colorado Energy Office to develop evaluation policies for accounting and eligibility. Stakeholders asked for clear rules so developers, manufacturers and local governments know how reductions will be recognized and credited.
