Colorado § 24-38.5-405 - High-efficiency electric heating and appliances grant program - creation - report - legislative declaration.

§ 24-38.5-405. High-efficiency electric heating and appliances grant program - creation - report - legislative declaration.

(1) The general assembly hereby finds, determines, and declares that:

(a) Emissions from heating buildings are one of the five largest sources of greenhouse gas pollution in Colorado;

(b) Over a million Coloradans live in energy burdened households that spend five percent or more of their household income on energy expenditures;

(c) Newer technologies such as cold climate heat pumps and heat pump water heaters offer many opportunities to reduce greenhouse gas and nitrogen oxide emissions and improve indoor air quality;

(d) Energy upgrades to residential and commercial buildings may be more cost effective and easier to implement when deployed at the neighborhood scale, and neighborhood-scale upgrades may allow utilities to avoid or defer investments in gas and electric distribution, thereby reducing costs for all utility ratepayers; and

(e) Therefore, it is important for the state to support investments in neighborhood-scale energy efficiency upgrades.

(2) There is created in the Colorado energy office the high-efficiency electric heating and appliances grant program to provide grants to institutions of higher education, local governments, utilities, nonprofit organizations, businesses and other entities as determined by the Colorado energy office, and housing developers for the installation of high-efficiency electric heating equipment in multiple structures within a neighborhood.

(3) Grantees may use the money received through the high-efficiency electric heating and appliances grant program for the following purposes:

(a) The purchase and installation of high-efficiency electric equipment for drying clothes, space heating, water heating, cooking in multiple residential or commercial buildings located in close proximity, or for other electric equipment as determined by the Colorado energy office;

(b) The purchase of electrical installations and upgrades necessary to support the installation of high-efficiency electric equipment;

(c) The purchase and installation of other innovative building heating technologies that the Colorado energy office determines will likely achieve equal or lower levels of greenhouse gas emissions than high-efficiency heat pumps operated on the projected 2030 electric grid; and

(d) In the case of local governments, electric and gas utilities, nonprofit organizations, businesses and other entities as determined by the Colorado energy office, or housing developers that operate in low-income, disproportionately impacted communities or just transition communities as those communities are identified by the Colorado energy office, to cover the administrative costs associated with the purchase and installation described in subsections (3)(a), (3)(b), and (3)(c) of this section.

(4) The Colorado energy office shall administer the high-efficiency electric heating and appliances grant program, award grants as provided in this section, and develop policies and procedures as necessary to implement the grant program.

(5) Grants shall be paid out of the clean air buildings investments fund created in section 24-38.5-406.

(6) The Colorado energy office may develop policies and procedures prioritizing the grant applications of local governments, electric and gas utilities, nonprofit organizations, businesses and other entities as determined by the Colorado energy office, or housing developers that operate in low-income, disproportionately impacted communities or just transition communities as those communities are identified by the Colorado energy office, and the Colorado energy office shall award at least thirty percent of the total amount of money it awards through grants pursuant to the high-efficiency electric heating and appliances grant program to such local governments, electric and gas utilities, nonprofit organizations, businesses and other entities as determined by the Colorado energy office, or housing developers.

(7) (a) To receive a grant, a local government, electric or gas utility, nonprofit organization, business and other entity as determined by the Colorado energy office, or housing developer must submit an application to the Colorado energy office in accordance with the policies and procedures specified by the Colorado energy office.

(b) The Colorado energy office shall provide technical assistance in applying for grants through the high-efficiency electric heating and appliances grant program as needed to local governments, electric and gas utilities, nonprofit organizations, businesses and other entities as determined by the Colorado energy office, or housing developers that operate in low-income, disproportionately impacted communities or just transition communities as those communities are identified by the Colorado energy office.

(8) (a) Each grantee that receives a grant through the high-efficiency electric heating and appliances grant program shall submit a report to the Colorado energy office the first five years after receiving the grant.

(b) Repealed.

Source: L. 2022: Entire part added, (HB 22-1362), ch. 301, p. 2175, § 1, effective June 2. L. 2024: (3)(a) amended, (SB 24-214), ch. 191, p. 1096, § 10, effective May 17.

Editor's note: Subsection (8)(b)(II) provided for the repeal of subsection (8)(b), effective July 1, 2026. (See L. 2022, p. 2175.)