Introduction
The Colorado Energy Office (CEO), Colorado’s primary energy policy and oversight agency, administers Building Performance Colorado (BPC), a comprehensive program born from the “Energy Performance for Buildings” statute (House Bill 21-1286). BPC sets energy benchmarking and building performance standards (BPS) requirements for commercial, multifamily, and public buildings 50,000 square feet and larger. Buildings 50,000 square feet and larger that use the building space for less than 50% manufacturing purposes should expect to be subject to Building Performance Standards.
Energy benchmarking is the process of tracking a building’s energy use through its utility data and comparing it to similar building types. It turns the information on a utility bill into actionable knowledge, helping owners and operators identify opportunities to improve efficiency, reduce energy costs, and prioritize investments in electrification and renewable energy upgrades. Once building owners benchmark their utility data, BPS establishes energy performance targets for covered buildings to achieve over the coming years, such as specific reductions in energy use or greenhouse gas (GHG) emissions. House Bill 21-1286 also established building sector-wide GHG emission reduction targets of 7% by 2026 and 20% by 2030, relative to 2021 levels. Learn more about the CEO and their goals at the CEO website and explore the latest information and guidance at Building Performance Colorado.
House Bill 25-1269
Colorado House Bill 25-1269, titled “Concerning Building Decarbonization Measures,” refines BPC and BPS in several ways, including updates to Colorado’s energy benchmarking and building performance requirements for certain covered buildings. It establishes a plan to develop 2040 building performance standards, to be set by the Air Quality Control Commission (AQCC) in consultation with the CEO and authorizes alternative compliance options for owners to meet these standards. Civil penalties have also been updated; for benchmarking violations, fines are up to $577 for a first violation and $2,300 for subsequent violations, while starting January 1, 2030, performance standard violations can result in penalties of up to $2,300 per 30-day period and up to $5,800 for subsequent 30-day periods, with annual inflation adjustments.
The act also authorizes the creation of the Building Decarbonization Enterprise (BDE) to provide financial, technical, and programmatic support for energy efficiency, electrification, and other decarbonization measures, funded through an annual fee collected from covered buildings and deposited into a dedicated cash fund. The BDE will be funded by the annual Building Decarbonization Enterprise (BDE) Fee, which will be required for all covered buildings. The BDE fee is currently $400 and is required to be paid through the Building Energy Analysis Manager (BEAM Platform) portal by November 1, beginning in 2025. Additionally, the act clarifies that local governments adopting a wildfire resiliency code are not required to adopt an energy code solely because of that, and it appropriates $3 million from the cash fund for FY 2025-26 to support the enterprise’s implementation. Access to the latest version of House Bill 25-1269 can be found on the official Colorado General Assembly website.
New Terms and Definitions
House Bill 25-1269 updated the BPC program to formally define an “operator” as the entity or individual responsible for managing a building’s daily operations and, when necessary, fulfilling benchmarking obligations on behalf of the owner. This role is especially relevant for covered building owners who lack direct access to tenant energy data. By clarifying this definition, BPC streamlines compliance for buildings with complex tenant arrangements and improves the program’s ability to track and enhance energy performance statewide.
Targeting and Baseline Year Changes
Under the updated BPC program, the 2026 targets are treated as a goal rather than a mandatory requirement, giving building owners additional time to come into compliance and focus on meeting the 2030 targets. No penalties apply for not achieving the 2026 targets, which now serve as a guideline for 2030 compliance, and the 2030 targets themselves remain unchanged. In addition, building owners may elect to use 2019 as their baseline year instead of 2021 to account for unusually low energy usage during 2021, in accordance with program guidance. This flexibility allows owners to select the baseline that best reflects typical building performance when planning reductions and compliance strategies. Building owners that choose 2019 as their baseline year must submit the 2019 energy use data by November 1, 2027.
Reporting and Compliance
Under House Bill 25‑1269, beginning in 2026, the annual reporting deadline for covered buildings has been moved to November 1, shifted from the previous July 1 deadline. The reporting portal opening dates are still determined by CEO guidance, but it is expected to remain open for several months prior to the deadline. In addition, the annual BDE Fee is now required to be paid for all covered buildings by November 1, starting in 2025. The act also provides flexibility for buildings subject to local building performance standards; if a local program meets or exceeds state standards, covered building owners may be deemed compliant with the state requirements, avoiding duplicate reporting. Buildings with unique operational profiles, such as data centers or telecommunications operations that increase energy demand may request individualized targets, and additional alternative compliance pathways are authorized to account for operational, financial, or technical constraints.
As aforementioned, the bill further clarifies the role of the “operator”, defined as the entity responsible for managing building operations and fulfilling benchmarking obligations on behalf of the owner, reducing reporting and compliance complexity. Updated civil penalties for noncompliance are also included, with fines for benchmarking and performance standard violations subject to the annual inflation adjustments as described above.
2040 Requirements
Colorado has defined a structured process to establish building performance targets for 2040, aimed at significantly reducing energy use and GHG emissions from large buildings statewide. This process is being led by a 16-member BPS Task Force, composed of stakeholders from government, industry, and advocacy sectors. Building energy data collected for years 2021 through 2026 via the state’s benchmarking program will serve as the baseline dataset for analysis. This dataset will inform the development of 2040 energy performance standards that owners of certain covered buildings will be required to meet.
The AQCC within the Colorado Department of Public Health and Environment (CDPHE) holds regulatory authority for adopting these 2040 standards. The BPS Task Force will be appointed by July 1, 2027, and will be required to provide recommendations by July 1, 2028. The 2040 standards are required to be proposed by June 1, 2029. Once finalized, the 2040 targets will form part of the state’s long-term decarbonization strategy, providing covered building owners with a clear compliance pathway and supporting Colorado’s climate and clean energy goals.
Next Steps for Building Owners
Building owners can prepare for these updates by reviewing the new civil penalty structure to ensure timely compliance with benchmarking and performance requirements to avoid escalating fines that will adjust annually for inflation. They should engage with the BDE to access available financial, technical, and programmatic assistance for energy efficiency, electrification, and other decarbonization measures, while planning for the associated annual BDE fee that funds these programs. Proactively identifying and implementing energy upgrades now will help meet future performance standards and minimize compliance risks.
Owners are also encouraged to monitor local regulations that may interact with state requirements and to stay informed of upcoming BDE funding opportunities and resources supported by the $3 million appropriation for FY 2025-26. For support with determining compliance pathways, conducting energy audits, or general questions on how this legislation may impact your building, reach out to Trinity’s Denver office at 720.638.7647.
