(1) The general assembly hereby finds and declares that there is statewide interest in requiring an effective energy efficient building code for the following reasons: (a) Excessive energy consumption creates effects beyond the boundaries of the local government within which the energy is consumed because the production of power occurs in centralized locations. (b) Air pollutant emissions from energy consumption affects the health of the citizens throughout Colorado. (c) The strain on the grid from peak electric power demands is not confined to jurisdictional boundaries. (d) There is statewide interest in the reliability of the electrical grid and an adequate supply of heating oil and natural gas. (e) Controlling energy costs for residents and businesses furthers a statewide interest in a strong economy and reducing the cost of housing in Colorado. (f) More recent energy codes are more effective at ensuring building durability and structural integrity and protecting public health and safety through better: (I) Moisture management to prevent mold, mildew, and rot; (II) Airflow management; and (III) Protection during severe weather. (g) More recent energy codes incorporate newer building technologies, techniques, and materials and offer more options for builders. (h) Businesses and residents in low-income communities and rural areas of the state deserve at least the same durability, health and safety, and energy cost savings from energy efficient buildings as those in wealthier, urban, and suburban areas of the state. (i) Highly energy efficient homes and buildings can reduce energy use and help consumers save money on energy bills. (j) Highly energy efficient and low carbon new homes and buildings are critical for meeting the greenhouse gas pollution reduction targets established in section 25-7-102 (2)(g). (2) As used in this section, unless the context otherwise requires: (a) "Building code" means regulations related to energy performance, electrical systems, mechanical systems, plumbing systems, or other elements of residential or commercial buildings. (a.5) "Colorado plumbing code" has the meaning set forth in section 12-155-103 (5). (a.8) "Elevator and escalator code" means the rules adopted in accordance with section 9-5.5-112. (b) "Energy code" means a subset of building codes related to the total energy performance and carbon emissions of residential and commercial buildings. (b.5) "International energy conservation code" means the energy code published by the international code council or a successor organization. (b.8) "National electrical code" has the meaning set forth in section 12-115-103 (8). (c) "Office" means the Colorado energy office created in section 24-38.5-101, C.R.S. (3) The governing body of any municipality that has adopted and enforced one or more building codes, or that adopts and enforces one or more building codes after July 1, 2022, shall adopt and enforce an energy code that applies to the construction of, and major renovations and additions to, all commercial and residential buildings as required by the energy code in the municipality to which the building code applies. (3.5) (a) The governing body of a municipality that has adopted and enforced one or more building codes, and that updates one or more building codes on or after July 1, 2023, and before July 1, 2026, shall adopt and enforce an energy code that achieves equivalent or better energy performance than the 2021 international energy conservation code and the model electric ready and solar ready code language developed for adoption by the energy code board pursuant to section 24-38.5-401 (5) at the same time other building codes are updated. (b) The governing body of a municipality that has adopted and enforced one or more building codes, and that updates one or more building codes on or after July 1, 2026, shall adopt and begin enforcing an energy code that achieves equivalent or better energy and carbon emissions performance than the model low energy and carbon code language developed for adoption by the energy code board pursuant to section 24-38.5-401 (6) at the same time other building codes are updated. (c) When adopting or updating a building code prior to July 1, 2023, the governing body of a municipality shall adopt and enforce an energy code that achieves equivalent or better energy performance than one of the three most recent editions of the international energy conservation code. (d) Notwithstanding the timing requirement of subsection (3.5)(a) of this section, a governing body of a municipality may comply with subsection (3.5)(a) of this section when the body adopts one or more building codes other than the national electrical code, the elevator and escalator code, and the Colorado plumbing code, or by June 30, 2026, whichever is earlier, if: (I) The governing body of the municipality adopts or updates: (A) The national electrical code by reference when adopted or updated by the state electrical board; (B) The elevator and escalator code by reference when adopted or updated by the director of the division of oil and public safety within the department of labor and employment; or (C) The Colorado plumbing code by reference when adopted or updated by the state plumbing board; and (II) The adoption or update of the national electrical code, the elevator and escalator code, or the Colorado plumbing code occurs on a timing cycle different from the scheduled adoption or update of one or more building codes other than the national electrical code, the elevator and escalator code, or the Colorado plumbing code. (e) Notwithstanding the timing requirement of subsection (3.5)(b) of this section, a governing body of a municipality may comply with subsection (3.5)(b) of this section when the body adopts one or more building codes other than the national electrical code, the elevator and escalator code, and the Colorado plumbing code, or by June 30, 2030, whichever is earlier, if: (I) The governing body of a municipality adopts or updates: (A) The national electrical code by reference when adopted or updated by the state electrical board; (B) The elevator and escalator code by reference when adopted or updated by the director of the division of oil and public safety within the department of labor and employment; or (C) The Colorado plumbing code by reference when adopted or updated by the state plumbing board; and (II) The adoption or update of the national electrical code, the elevator and escalator code, or the Colorado plumbing code occurs on a timing cycle different from the scheduled adoption or update of one or more building codes other than the national electrical code, the elevator and escalator code, or the Colorado plumbing code. (4) (a) Repealed. (b) (I) (A) Except as otherwise provided in this section, the aggregate of all charges or other related or associated fees a municipality shall impose or assess to install an active solar electric or solar thermal device or system or a geothermal energy system shall not exceed the lesser of the municipality's actual costs in issuing the permit or five hundred dollars for a residential application or one thousand dollars for a nonresidential application if the device or system produces fewer than two megawatts of direct current electricity or an equivalent-sized thermal energy system, or that exceed the municipality's actual costs in issuing the permit if the device or system produces at least two megawatts of direct current electricity or an equivalent- sized thermal energy system. A municipality may increase its fees or other charges as authorized by this subsection (4)(b)(I) by no more than five percent on an annual basis until the five hundred dollar limitation specified in this subsection (4)(b)(I) is achieved. The municipality shall clearly and individually identify all fees and taxes assessed on an application subject to this subsection (4)(b)(I) on the invoice. The general assembly hereby finds that there is a statewide need for certainty regarding the fees that can be assessed for permitting such devices or systems, and therefore declares that this subsection (4)(b) is a matter of statewide concern. (B) In the case of a nonresidential application, on an individual installation basis only, if the municipality incurs actual costs for issuing the permit that are greater than one thousand dollars, the municipality is entitled to recovery of its actual costs for issuing the permit by submitting in writing and disclosing to the applicant for the particular permit proof of the municipality's actual costs. (C) As used in this subsection (4)(b)(I), "active solar energy system" means a single system that contains electric generation, a thermal device, or is an energy storage system as defined in section 40-2-202 (2), and "geothermal energy system" means a system that uses geothermal energy for water heating or space heating or cooling in a single building, for space heating for more than one building through a pipeline network, or for electricity generation. (II) This subsection (4)(b) is repealed, effective December 31, 2029. (5) The following buildings are exempt from subsections (3), (3.5), and (4) of this section: (a) Any building that is otherwise exempt from the provisions of the building code adopted by the governing body of the municipality in which the building is located and buildings that do not contain a conditioned space; (b) Any building that does not use either electricity or fossil fuels for comfort heating. A building will be presumed to be heated by electricity even in the absence of equipment used for electric comfort heating if the building is provided with electrical service in excess of one hundred amps, unless the code enforcement official of the municipality determines that the electrical service is necessary for a purpose other than for providing electric comfort heating. (c) Historic buildings that are listed on the national register of historic places or Colorado state register of historic properties and buildings that have been designated as historically significant or that have been deemed eligible for designation by a local governing body that is authorized to make such designations; and (d) Any building that is exempt pursuant to the energy code. (6) Notwithstanding any other provisions of this section, the governing body of any municipality that is required to adopt an energy code may make any amendments to the energy code that the governing body deems appropriate for local conditions, so long as the amendments do not decrease the effectiveness of the energy code. (7) (a) The office shall ensure that information explaining the requirements of the energy code and describing acceptable methods of compliance is available to builders, designers, engineers, and architects. (b) The office shall provide the governing body of any municipality with technical assistance concerning the implementation and enforcement of the energy code. (8) Nothing in this section restricts the ability of an investor-owned utility with approval from the public utilities commission to: (a) Provide incentives or other energy efficiency program services to help the governing body of any municipality or builders comply with the requirements of this section; or (b) Earn shareholder incentives and claim credits towards its regulatory requirements for energy or greenhouse gas emission savings achieved as a result of incentives provided by the utility to help the governing body of any municipality or builders comply with the requirements of this section. (9) A utility not subject to regulation by the public utilities commission may provide incentives or other energy efficiency program services as they so choose to assist the governing body of any municipality or any builders in complying with the requirements of this section. (10) (a) A utility may count mass-based emissions reductions associated with the requirements of this section towards compliance with its requirements under section 25-7-105 (1)(e)(X.7) or (1)(e)(X.8), section 40-3.2-108 (3)(b), or any similar greenhouse gas emissions reduction program or set of requirements. (b) A utility subject to regulation by the public utilities commission shall not count energy savings or greenhouse gas emissions reductions achieved through the requirements of this section for the purpose of calculating a shareholder incentive established pursuant to sections 40-3.2-103 (2)(d) and 40-3.2-104 (5) if the utility has not provided a financial investment for code adoption as documented in a plan approved by the commission.
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