Energy Efficiency Resource Standard:

In 2007, CO adopted HB 1037 that requires electric and gas utilities to provide demand-side programs. IOUs required to offer customers demand-side programs that achieve savings targets. Statutory goal to reduce 2006 electricity sales by 5% in 2018. The COPUC periodically adjusted the targets for the two IOUs. Goals set for 2016-2018 period required a 10% energy savings. COPUC uses a modified version of the total resource cost test as the criteria to evaluate cost-effectiveness of energy efficiency programs. Regulated electric utilities are required to develop beneficial electrification (BE) programs to support customer adoption of heat pumps, incorporating all cost effective BE measures, including social cost of GHGs in cost effectiveness tests; regulated gas utilities required to expand DSM programs to goals set by PUC that incorporate all cost effective DSM including social costs of GHGs in test.

Building Codes:

2019 legislation requires local jurisdictions to adopt one of the 3 most recent versions of the international energy conservation code at a minimum. (HB 19-1260); Air Quality Control Commission must adopt regulations to ensure 20% reduction in GHG emissions below 2020 levels by 2030 from existing buildings over 50,000 square feet. (HB 21-1286). 2022 legislation (House Bill 22-1362) creates requirements to adopt the most recent International Energy Conservation Code in new buildings; prewire for EVs, solar and heat pumps;  and locally   adopt a low carbon code starting in 2026 toward near net zero building energy codes by 2030.

Appliance Standards:

2019 legislation updated and adopted standards for water efficiency and energy efficiency that apply to a list of 15 appliances and other products. (HB 2019-12-31)

Natural Gas Efficiency and GHG Reduction Targets:

HB 21-1238 updated and expanded the state’s gas DSM requirements. Modernizes requirements of regulated gas utility demand-side management programs. Beginning in 2022, requires the Public Utilities Commission to set energy savings targets based on all cost effective DSM. Updates methods for determining cost-effectiveness including requiring the social costs of carbon dioxide and methane emissions using a discount rate of no more than 2.55. Implements labor standards for certain commercial or multifamily gas DSM project

Senate Bill 21-264 created a clean heat standard to reduce GHG emissions from gas utilities. Set GHG reduction requirements of 4% by 2025 and 22% reduction by 2030 from a 2015 baseline for gas utilities. Requires investor owned gas utilities (GDU) to file a “Clean Heat Plan” with the Public Utilities Commission to meet reduction targets. Obligates municipal utilities to meet emissions reduction targets. Defines eligible technologies including gas energy efficiency, beneficial electrification, green hydrogen, and recovered methane. Requires the PUC to initiate a rulemaking to implement the legislation. Requires the AQCC to develop rules for recovered methane credits.

Electrification:

Senate Bill 21-246: Defines beneficial electrification including that it reduces GHG emissions. Requires regulated electric utilities to file plans to promote the use of energy-efficient electric equipment in place of less efficient fossil fuel-based systems through the use of rebates and incentives. Directs the Public Utilities Commission to establish targets based on all cost effective electrification. Requires the PUC to use a cost effectiveness test that includes the social cost of carbon and methane, using a discount rate of no more than 2.5%. Implements labor standards for some commercial beneficial electrification projects.