House panel advances bill to adjust Colorado building performance rules, create technical‑assistance enterprise

The Colorado House Finance Committee on Oct. 12 advanced House Bill 12‑69, a measure that revises the state’s building performance standards and creates a fee‑funded Building Decarbonization Enterprise to provide technical assistance to owners of large commercial buildings.

Supporters say the bill eases near‑term compliance burdens while preserving longer‑term greenhouse gas reduction goals. Opponents — largely building‑industry trade groups — said the underlying regulatory program and some aspects of implementation remain legally and economically problematic.

The bill modifies the statutory and regulatory framework created in 2021 (House Bill 21‑1286 and the Air Quality Control Commission’s Regulation 28). Key changes adopted in committee amendments include returning civil penalties to the prior penalty structure (with inflation indexing), making the 2026 interim target a goal rather than an enforceable deadline in many cases, allowing use of a 2019 pre‑pandemic benchmarking year for buildings that saw reduced occupancy, and establishing a task force to conduct an economic impact analysis to inform 2040 targets.

"My name is Will Toor, and I'm the executive director of the Colorado Energy Office. I'm here to speak in favor of House Bill 12‑69," Director Will Toor told the committee during the witness phase. Toor and Colorado Energy Office staff said they negotiated the amendments with a broad set of stakeholders and that the enterprise would provide technical assistance, financing support, and other programmatic services that building owners need to plan and implement energy upgrades.

Sponsors told the committee the bill is intended to reduce duplicate compliance requirements for buildings that are subject to local building performance standards (for example, the City and County of Denver) by allowing a local program to be deemed compliant at the state level. Dr. Sharon Jay, representing the City and County of Denver, said Denver supports the bill’s approach to allow local certification to eliminate duplicate compliance burdens.

Industry witnesses representing hotel, apartment and commercial‑building owners warned of large costs tied to technical studies and retrofit timelines under the existing regime. Paul Seabee, representing several associations including the Colorado Hotel and Lodging Association and NAOP Colorado, told the committee that some retrofit pathways required under Regulation 28 could conflict with federal law and impose high replacement costs for covered products.

Advocates and local governments urged adoption, saying the enterprise and amendments will help smaller or under‑resourced building owners find the information and financing they need. Ben Goldstein and other Colorado Energy Office staff said the enterprise would be funded by an annual fee collected from covered buildings; sponsors noted a proposed $400 annual fee per covered building and estimated roughly 8,300 commercial buildings over 50,000 square feet statewide would fall under the program’s fee structure.

The committee adopted a package of technical and stakeholder‑driven amendments labeled L002 through L006. L002 adjusted civil penalties to match the prior structure with inflation indexing; L003 requires an economic analysis by the 2040 task force; L004 and L005 clarified performance‑standard and enterprise board composition language and harmonized bill text with related legislation; and L006 clarified considerations for the Air Division as it develops 2040 targets.

Several witnesses asked the committee for clearer technical guidance and stronger assurances that the enterprise’s funds would be used for technical assistance and financing programs rather than administrative overhead. Industry witnesses also asked for explicit off‑ramps and clearer timeline adjustments for buildings facing economic distress, historic‑preservation constraints or occupancy changes.

After debate and questions, the committee moved HB 12‑69 as amended to the Appropriations Committee with a favorable recommendation. The committee record shows members asked for continued stakeholder work as the bill proceeds.

The bill will now be considered in Appropriations; additional amendments and fiscal details are expected as the legislature considers program funding and fee mechanics.