House Finance Panel Advances Bill to Ease Building-performance Deadlines, Create Decarbonization Enterprise

House Finance Committee members voted 7-6 to advance House Bill 12-69, a measure that eases near-term compliance requirements for Colorado’s building performance standards and creates a fee-funded building decarbonization enterprise to provide technical and financial assistance to covered buildings.

Supporters said the bill keeps the state on track to reduce building-related greenhouse gas emissions while giving owners more time, clearer rules and new resources to implement efficiency and decarbonization projects.

Representative Valdez, the bill’s sponsor, told the committee the bill converts the 2026 interim target from a mandatory deadline into a voluntary goal, removes duplicative compliance requirements for buildings already subject to local standards and establishes an enterprise to direct fees into technical assistance for building owners. “We’re creating an enterprise that we can actually have the fees that people are paying go into that will then help those very people to implement the projects that we are asking them to do,” Valdez said.

Nut graf: The legislation affects Colorado buildings larger than 50,000 square feet, which sponsors estimate number roughly 8,300 across the state. Sponsors and the Colorado Energy Office (CEO) said the bill is intended to make it easier and less costly for building owners to comply with existing benchmarking and building performance standards adopted after 2021, while maintaining the state’s emissions goals.

The Colorado Energy Office’s executive director, Will Toor, said the office supports the bill and that it reflects lessons learned since the 2021 law and subsequent Regulation 28 rulemaking. Toor said the measure would: (1) allow buildings to use a 2019 pre‑COVID baseline instead of 2021 where occupancy drops distorted benchmarking; (2) create an inclusive task force to recommend post‑2040 standards; and (3) permit local jurisdictions that demonstrate equivalent greenhouse‑gas outcomes to be deemed in compliance so owners subject to local programs need only meet one standard. “This legislation simplifies participation for buildings in three key ways,” Toor said.

The bill also adjusts penalty language to align with the air division’s enforcement approach and retains the original civil‑penalty framework with an inflation adjustment, an amendment sponsors brought forward after stakeholder feedback. Representative Wolford, a co‑sponsor, described five amendments adopted in committee that clarified penalties, required an economic impact analysis for the 2040 target, adjusted governance for the enterprise and harmonized language with related bills.

Opponents representing industry groups said they appreciated the amendments but urged further changes. Paul Seabee, representing Colorado hotel, apartment and large‑building owner groups, argued the bill as drafted still leaves legal and practical concerns tied to Regulation 28 and a federal statute (the Energy Policy and Conservation Act) that his clients believe could be implicated by forced equipment changes. Industry groups asked for clearer language that would make the first enforceable target 2030 rather than 2026, a change sponsors say the bill already accomplishes by making 2026 a goal.

City officials and advocates also testified. Dr. Sharon Jay, who leads Denver’s implementation of the city’s building performance policy, told the committee Denver supports the bill’s option to allow local BPS programs to certify equivalent outcomes so Denver‑regulated owners need not comply with both local and state processes. “In passing this bill, you will reduce the confusion, the administrative burden and the cost for building owners to improve their buildings,” Jay said.

Committee debate touched on costs and the enterprise’s funding. Sponsors said the enterprise will be funded by an annual fee on covered buildings (sponsors cited a $400 annual fee), and that collected fees would be used exclusively to support the enterprise’s activities, including technical assistance, on‑bill repayment support, energy audits, training and pilot programs for under‑resourced buildings. Representative Hartsock questioned near‑term fiscal shortfalls in the fiscal note and asked how the enterprise’s budget would be balanced; sponsors and CEO witnesses said the fee revenue plus federal grants and other programs would be used to support enterprise operations and customer assistance.

The committee adopted five sponsor amendments (L002–L006) that clarified penalties, added an economic impact study requirement for the 2040 target task force, adjusted performance‑standards and board composition language, harmonized enterprise language with companion legislation, and clarified air division considerations in setting 2040 targets. After amendment adoption, the committee moved the bill with a favorable recommendation to the Appropriations Committee; that motion passed on a 7‑6 recorded vote.

Ending: Sponsors said they will continue to work with stakeholders as the bill proceeds through the legislative process. Committee documents and the CEO are expected to publish technical guidance and the enterprise’s scope if the bill advances.