Under the recently launched Building Performance Program, Colorado is taking a two-pronged approach to greenhouse gas (GHG) emissions, emphasizing benchmarking and performance standards.
Mandated in all buildings over 50K square feet and established by House Bill 21-1286, this program sets forth specific energy efficiency measures and emission reduction-based requirements. The targets are 7% less statewide building emissions in FY2026, growing to a reduction of at least 20% by the middle of next decade.
Compliance Pathways: What the Law Says?
Colorado benchmarking offers these pathways for compliance:
1. Energy Efficiency
While diligent property managers constantly look for ways to cut costs through energy savings, meeting ambitious interim and final energy reduction objectives by 2026 and 2030 will require concerted efforts.
2. Lowering GHG Emission
Retrofitting aging infrastructure with state-of-the-art electric alternatives engineered for peak performance can slash emissions at the source instead of merely offsetting them. Transitioning to renewable sources or carbon offset programs also promotes sustainability. However, substituting dated systems with cutting-edge electric options engineered for optimal efficiency offers the most direct path to the mandated lessening of operational footprints within the timeline.
What Building Owners Need To Do
Colorado’s building benchmarking requires large commercial, multifamily, and public buildings to annually report the whole-building energy use data. This is important because it allows owners to save on utility bills and increase net operating income.
Data Collection and Reporting
Building owners must report the previous year’s energy consumption for several power sources – electricity, natural gas, and renewables. In cooperation with the Colorado Energy Office, building owners generate and auto-upload these reports. The user guide available through Colorado Springs Utilities will help you request and deliver your energy usage data.
Owners must have an ENERGY STAR Portfolio Manager Account, and the monthly data goes to the State Energy Office. This ongoing reporting allows for the ability to track improvements.
Compliance and Penalties
Building owners must comply by submitting a benchmarking report or filing for a waiver (both options come with an annual fee of $100 per covered building). Failure to submit the mandatory reports and fees may result in civil penalties, which have been enforced as of January 1, 2024. $500 will be charged for the first year, and thereafter, $2000 must be paid every subsequent year.
Benefits of the Program
The Building Performance Colorado (BPC) program upgrades energy efficiency and helps lower GHG emissions to support the state’s climate goals. This means that building owners will make considerable savings, and the air quality will increase. Savings derived from efficient energy reductions help prevent climate-change issues and eliminate the chance of many deadly diseases resulting from air pollution.
Want to Upgrade Building Performance?
Colorado’s building performance program is a key component of responsible building operation in the state. The program’s clear targets and pathways for realizing energy efficiency and emissions reduction indicate what the future holds.
Owners of buildings are encouraged to actively get involved and reduce operational costs if they want a healthier environment. The expert consultants at The Cotocon Group stand ready to assist with the process. For the rest, building owners can learn more by visiting the state’s dedicated website.
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