Building Owners in Colorado May Be Hard Hit by Carbon Emissions Legislation

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A new bill working its way through the Colorado State Legislature could result in building owners being fined up to $47,000 a day.

The measure as proposed by Democrat Representative Jenny Willford has as its stated purpose the goal of softening some of the requirements that are a part of the Energy Performance for Buildings legislation that was approved in 2021.

That four-year-old bill established a building performance program within the Colorado Energy Office requiring that any structure measuring more than 50,000 square feet must reduce its greenhouse gas emissions footprint by at least 7%.

The 2021 legislation especially required that the 7% reduction must be achieved by 2026.

But since passage of that bill, several building owners across Colorado have said that the 7% mandate might be too costly to reach in the required time frame of the legislation.

Now HB 1269 is setting out the 7% figure as a target rather than a mandate. In so doing, however, the new legislation will create what is being called the Building Decarbonization Enterprise. That program will provide financial and technical assistance to building owners as they adapt to the changes needed to meet the original legislation.

The new legislation also imposes a fee of up to $47,357 per day for building owners who fail to meet the original goal. Those opposed to the bill also note that building owners will be burdened with compliance reporting, consulting, and energy efficiency upgrade costs.

According to a report put together by Colorado’s Legislative Council Staff, the fee will impact an estimated 8,300 buildings in the state over a three-year phased in compliance period.

The measure is now being considered by members of the Colorado House Appropriations Committee.

March 24, 2025

By Garry Boulard

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