The Colorado Energy Office and the Department Of Local Affairs must appoint an energy code board that develops two model codes that are intended to reduce greenhouse gas emissions from buildings, requiring local governments and certain state agencies to adopt and enforce codes that are consistent with the model codes developed by the energy code board, creating the building electrification for public buildings grant program, creating the high-efficiency electric heating and appliances grant program, and establishing the clean air building investments fund.

Under the act, the director of the Colorado Energy Office (office) and the executive director of the Department Of Local Affairs must appoint an energy code board (board) that will develop 2 sets of model codes for adoption by counties, municipalities, and state agencies. An executive committee for the board will be appointed by the director of the office and the executive director of the department. By June 1, 2023, the board will develop a model electric and solar ready code, and by July 1, 2025, a model low energy and carbon code. For counties, municipalities, and state agencies, the office shall identify model green code language independent of the board.

Two-thirds of the board must approve each element of either model code. The executive committee must vote on any element that is not adopted by two-thirds of the board as required by law for either model code. To be adopted, an element of either model code must be approved by the majority of the executive committee.

In the event a conflict exists between the 2021 international energy conservation code, the 2024 international energy conservation code, the model electric ready and solar ready code, or any other model codes adopted by local governments or divisions within the executive branch and either the Colorado plumbing code or the national electric code, the Colorado plumbing code or the national electric code prevails.

According to the act, the state architect, the division of housing, and the division of fire prevention and control must adopt and enforce codes that achieve equivalent or better energy efficiency than the codes adopted by the board as follows:

A state architect, a division of housing, and a division of fire prevention and control shall adopt and enforce on or before January 1, 2025, an energy code that achieves equal or better energy performance than the 2021 international energy conservation code and the model electric and solar ready code developed by the board; and
An energy code that achieves equivalent or better energy and carbon emission performance than the model low energy and carbon code developed by the board is required to be adopted and enforced by the office of the state architect, the division of housing, and the division of fire prevention and control by January 1, 2030.

A similar set of rules is established for when municipalities and counties are required to adopt and enforce codes that are equivalent to or better than those adopted by the board as follows:

Before July 1, 2026, municipalities and counties that update their building codes shall adopt and enforce energy codes that achieve equivalent or better energy efficiency than the international energy conservation code for 2021 and the board’s model electric and solar ready code; and
Cities and counties that update their building codes on or after July 1, 2026, must adopt and enforce an energy code that achieves equivalent or better energy performance than the board’s model low energy and carbon code.

Rural counties that apply for and are not awarded grants that significantly assist in adopting and enforcing energy codes are instead required to adopt and enforce energy codes that achieve equivalent or better performance than the three most recent editions of the international energy conservation code rather than either the model electric and solar ready code or the model low energy and carbon code.

The act also creates 2 primary grant programs that will be administered by the office:

Grants for local governments, school districts, state agencies, and special districts to install high-efficiency electric heating equipment; and
Grants for high-efficiency electric heating and appliances are provided to local governments, utilities, nonprofit organizations, and housing developers in order to install high-efficiency electric heating equipment in multiple structures within a neighborhood and to purchase electrical upgrades and installations to facilitate the installation.

The act establishes the clean air building investments fund, a continuously appropriated cash fund, to fund the creation, implementation, and administration of both grant programs.

Lastly, the act also requires the following transfers from the general fund:

The office will receive $3 million from the energy fund to provide grants and training related to the 2021 international energy conservation code, the electric and solar ready code, as well as the low energy and carbon code;
A contribution of $150,000 to the office’s energy fund for administration costs;
$10 million to the clean air building investments fund for the creation, implementation, and administration of the building electrification for public buildings grant program; and
For the creation, implementation, and administration of the high-efficiency electric heating and appliance grant program, the clean air building investments fund will receive $10,850,000.