Clean State Energy Actions 2011 Update. colorado

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1 Energy Efficiency Building Energy Codes Utility Demand-Side-Management Energy Savings Targets/Energy Efficiency Resource Standards Residential: 2003 IECC, required in jurisdictions with a building code in July 2007 Commercial: 2003 IECC, required in jurisdictions with a building code in July 2007 State energy office is now promoting adoption of the 2009 IECC Provides code-related training for builders, contractors, and local code officials Residential: Updated code to 2009 IECC for all Factory Built and Multi Family structures in areas of Colorado that do not adopt or enforce building codes Commercial: Updated code to 2009 IECC (with reference to ASHRAE ) for all Factory Built and Multi Family structures in areas of Colorado that do not adopt or enforce building codes The PUC is authorized to provide incentives for IOUs to provide DSM Created the Smart Grid Task Force to provide technical and policy recommendations to the public utilities. The final report included six topic areas: Challenges and Opportunities in Colorado; Workforce and Economic Development; Consumer Issues and Data Management; Distributed Energy Resources and Grid Management; Technical Specifications; and Grid Management. Xcel Energy is required to meet approximately 0.38% of total electricity sales by 2013 through energy efficiency; an Energy Efficiency docket is pending at PUC (May 2008); legislation directs utility goals of reduction by 2018 of at least 5% of 2006 retail system peak demand and at least 5% of 2006 retail energy The Colorado Clean Energy Fund provides grants, loans and other financial incentives to attract manufacturers of energy efficient products to the state Creates a clean energy program fund (SB 184, Clean Energy Finance Program Act) Provides below market-rate clean energy loans in limited amounts to eligible homeowners for the purpose of financing clean energy and energy conserving home repairs, additions, or improvements Rural Clean Energy Project Finance program assists localities in financing eligible clean energy projects through issuance of private activity bonds Allows for Property Assessed Clean Energy (PACE) financing (HB 1350, C.R.S et seq., SB 100) Established financing program for companies with building retrofit projects or that are directly involved in the renewable energy sector. The financing is intended to fill funding gaps or provide support to companies that have not been able to secure private investment (See also Clean Electricity and Clean Energy Economic Development). Created rebate program for homeowners to purchase and install certain energy efficient appliances, heating equipment and weatherization materials (ARRA Funded). Created the Green Colorado Credit Reserve, a loan program providing capital to small businesses for energy efficiency retrofits in business offices or manufacturing facilties (See also Clean Energy Economic Development). Created the Governor s Energy Office Revolving Loan Program to finance energy efficiency and renewable energy projects in the state. Projects eligible for loans include large scale retrofits of buildings, and companies whose products directly impact the renewable energy sector economic development (See also Clean Electricity and Clean Energy Economic Development).

2 (continued) Created an improvement district comprised of the entire state and authorized the improvement district to issue up to $800 million in bonds to fund PACE financing programs (HB1328 See also Clean Electricity). Required builders of single-family homes to offer certain water efficient appliances if the buyer is under contract (HB 1358). The Governor s Energy Office established a pilot program offering grants to retrofit the current homes of homeowners selling their house and moving to a more energy efficient home (H.B ). Clean Electricity Renewable/Alternative Energy Portfolio Standards and Goals Net Metering and Interconnection Standards Advanced Coal and Clean Coal Public Benefits Funds Shale Gas Development, Regulation and Policy 20% by 2020 for investor-owned utilities (minimum 4% of total electricity from solar, half of which must be on-site with consumer), 10% by 2020 for electric cooperatives, and 10% by 2020 for municipal utilities (no solar requirement) Updated RPS to require 30 percent of Colorado s electricity come from renewable energy sources by percent must be from local solar power providers. IOUs - Systems up to 2 MW in capacity that generate electricity using qualifying renewable-energy resources are eligible for net metering; interconnection rules are based on the FERC interconnection standards for small generators (three levels of interconnection standards) Requires municipal utilities with more than 5,000 customers and all cooperative utilities to offer net-metering (HB 1160) Residential systems up to 10 kw in capacity and commercial and industrial systems up to 25 kw to be credited monthly at the retail rate for any net excess generation their systems produce; and Co-ops and municipal utilities are authorized to exceed these minimum size standards Amended the net metering rules for investor-owned utilities as they apply to solar electric systems (SB 51) Changes include shifting the maximum system size for solar electric systems from 2 MW to 120% of the annual consumption of the site; Redefines a site to include all contiguous property owned by the consumer; and Allows system owners to make a one-time election in writing to have their annual net excess generation carried forward as a credit from month to month indefinitely, rather than being paid annually at the average hourly incremental cost for that year The Colorado PUC is required to consider proposals of utilities to build plants using IGCC technology; allows utilities to recover extra costs associated with this technology The Colorado Clean Energy Fund (see below) Enacted a law that set disclosure requirements for the content as well as the concentrations of all chemicals used in fracking. The Colorado Clean Energy Fund provides grants, loans and other financial incentives to attract manufacturers of renewable energy products to the state Provides the Renewable Energy Property Tax Assessment, which disregards the additional cost of renewable technology property relative to nonrenewable property

3 (continued) Xcel provides the following incentives: for systems up to 100 kw, they provide a base $2/watt rebate for solar electric generation; systems under 10 kw receive an additional $2.50/watt to purchase RECs for compliance with the solar carve-out in the state s RPS; systems 10 kw-100 kw purchase RECs for $115/MWh; purchase of RECs for larger systems (100 kw 200 MW) is based on a power purchase agreement; the Colorado Clean Energy Fund offers a $1/watt rebate with participating partners if they provide a matching $1/watt rebate for a total of $2/watt solar PV (up to $6,000) and small wind rebate (up to $10,000) in areas not served by IOUs; the Colorado Clean Energy Fund offers a $0.50/watt equivalent rebate for solar domestic hot water systems with participating partners if they provide a matching $0.50/watt for a total of $1/watt equivalent solar domestic hot water rebate (up to $1,500) Solar thermal (non-electric) systems added to the list of renewable energy equipment eligible for the property tax exemption; all sales, storage, and use of components used in solar thermal systems made exempt from the state s sales and use tax Renewable energy and energy efficiency loan program for schools to fund renewable energy projects and battery-powered and hybrid-electric bus projects in qualified school districts Local governments allowed to provide the same incentives for solar thermal installations as provided for solar electric installations; all components used in solar thermals systems used to heat or cool a building, water or a manufacturing process to be exempt from sales taxation Allows for Property Assessed Clean Energy (PACE) financing (HB 1350, C.R.S et seq., SB 100) Requires builders of single family homes to offer solar as a standard feature to all prospective homebuyers (HB 1149) Builders required to give buyers the option to either have a photovoltaic (PV) system or a solar water heating system installed on their new home, or to have all the necessary wiring and/or plumbing installed so that they can easily add a solar system at a later date Builders also required to provide buyers with a list, maintained by the Governor s Energy Office, of every solar installer in the area, so the buyer can obtain expert help in determining if their home s location is suitable for solar and what the estimated cost savings would be Companies with building retrofitting projects or that are directly involved in the renewable energy sector are eligible to obtain financing from the Governor s Energy Office. Required municipal electric utilities serving more than 40,000 customers to offer a green-power program that allows retail customers the choice of supporting emerging renewable technologies. Required Colorado electric utilities to provide customers with a comparison between photovoltaic (PV) systems to any proposed distribution line extension. Only customers with peak demand less than 25 kilowatts (kw) are eligible. Provided rebates through the Governor s Energy Office for qualifying renewable energy systems at commercial and residential buildings. Authorized counties and municipalities to offer property or sales tax rebates or credits to residential and commercial property owners who install renewable energy systems. Created loans of over $100,000 for solar water heat, PV, wind and other distributed generation technologies. Created a biomass working group to promote sustainable forest management and explore potential of woody biomass as an energy source. Also directed the PUC to study biomass as an energy resource for electricity and heating.

4 (continued) Created an improvement district comprised of the entire state and authorized the improvement district to issue up to $800 million in bonds to fund PACE financing programs (HB1328 See also Energy Efficiency). Required the state treasurer to transfer an amount equal to 50% of the clean technology income tax withholding growth to the clean technology discovery evaluation cash fund. Money from these funds are used to provide grants related to the clean technology industries (S.B ). Allowed for the creation of community solar garden owned by a utility or any other for-profit or nonprofit entity or organization. The garden must have at least 10 subscribers who will receive kwh credits on their utility bills in proportion to the size of their subscription (HB 1342). Exempted renewable energy property that is located on a property classified as residential, owned by the residential property owner, and produces energy that is used by the residential property from the state property tax (HB 1267). Created the Governor s Energy Office Revolving Loan Program to finance energy efficiency and renewable energy projects in the state. Projects eligible for loans include large scale retrofits of buildings, and companies whose products directly impact the renewable energy sector economic development (See also Clean Energy Economic Development). Made rebates available to homeowners who install solar water heaters and solar or wind energy systems. Extended the cap on the dollar amount that permitting authorities may charge for solar installations to July 1, The cap is $500 for residential application and $1,000 for non-residential applications. For systems 2 MW and larger, the local government can charge no more than what it actually cost to issue the permit (HB 1199). Alternative Fuels & Vehicles Personal income tax credit for purchase of or conversion to low-emission, ultra lowemission and zero-emission vehicles; provides a state income tax credit for hybrid electric vehicles, and allows hybrid electric vehicles to use HOV lanes; provides an income tax credit for the cost of construction, reconstruction, or acquisition of an alternative fuel fueling facility that is publicly accessible; fuel tax exemptions are granted for compressed natural gas (CNG) and liquefied petroleum gas (LPG) vehicle owners; vehicles, vehicle power sources, or parts used for converting a vehicle power source certified to federal low emissions vehicle standards or better are exempt from state sales tax Extended financial incentives available to purchasers of efficient motor vehicles out to 2015 (HB 1331) Consumers can claim up to $6,000 in tax credits for the purchase of a hybrid, plug-in hybrid or alternative fuel vehicle Individuals that convert a personal vehicle to plug-in hybrid technology can claim up to $7,500 Lead By Example Appliance/Equipment Efficiency Participant in the Climate Savers Computing Initiative

5 Building Efficiency Alternative Fuel and Vehicle Fleets All state facilities are charged with reducing overall energy use by at least 20% by the end of FY ; LEED certification is required for state buildings (LEED Gold for buildings over 5,000 square feet that receives at least 25% of its funding from the state); affordable housing projects must adopt and comply with a green building standard Required a reduction in greenhouse gas emissions and waste sent to landfills, as well as reduced consumption of paper, petroleum and bottled water; required agencies to include energy savings opportunities in their capital construction request, including use of third-party power purchase agreements; required agency directors to conduct an internal review at least annually to make sure their agency is on track to meet their targets. State fleets are required to utilize a blend of 20% biodiesel and 80% petroleum diesel (B20) by 2010; 10% of all state-owned by-fuel vehicles must use ethanol; offers a rebate for the purchase or conversion of alternative fuel vehicles for state use Department of Personnel required to purchase motor vehicles that operate on compressed natural gas, unless the cost of the vehicle is prohibitive GHG Emissions GHG Policies Participant in Climate Registry; issued Climate Action Plan (2007); WCI observer; adopted a GHG goal of 20% reduction below 2005 levels by 2020 and 80% below 2005 levels by 2050 Clean Energy RD&D Partnerships, Grants, Awards, and Dedicated Funding The Bioscience Discovery Evaluation Grant Program provides grants to research institutions for biofuels research projects; NEED (New Energy Economy Development) grants are provided for innovative clean energy projects from the Colorado Clean Energy Fund; SIG (Solar Innovation grants) are provided for market transforming solar energy projects from the Clean Energy Fund; grants for biomass projects, geothermal feasibility studies and small hydro feasibility studies are also provided from the Clean Energy Fund Clean technology discovery evaluation grant program created in the Office of Economic Development and International Trade (OEDIT) for the purpose of improving and expanding the development of new clean technology discoveries at higher education research institutions Requires the OEDIT to administer the program and the director of the office to consult with a Colorado-based clean technology industry association in implementing the program Formed the Colorado Center for Renewable Energy Economic Development (CREED) to expand cleantech entrepreneurship with a partnership with U.S. Department of Energy s (DOE) National Renewable Energy Laboratory (NREL) (See also Clean Energy Economic Development).

6 Clean Energy Economic Development Task Force, Workforce Development, Incentives, Analysis, Etc. The Green Jobs Working Group, a part of the 2007 Governor s Energy Office reorganization, released a Green Jobs Guidebook outlining different job opportunities in the green economy Created the Clean Technology Discovery Evaluation Grant program to support research and development at higher education institutions Provided funding through the Governor s Energy Office to companies with building retrofitting projects or that are directly involved in the renewable energy sector to fill funding gaps or provide support to companies that have not been able to secure private investment. Formed the Colorado Center for Renewable Energy Economic Development (CREED) to expand cleantech entrepreneurship with a partnership with U.S. Department of Energy s (DOE) National Renewable Energy Laboratory (NREL) (See also Clean Energy RD&D). Created the Green Colorado Credit Reserve, providing loans for energy efficiency retrofits in small business offices or manufacturing facilties. Created the Governor s Energy Office Revolving Loan Program to finance energy efficiency and renewable energy projects in the state. Projects eligible for loans include large scale retrofits of buildings, and companies whose products directly impact the renewable energy sector s economic development (See also Clean Electricity).

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