Financial Incentives

Colorado

Financial Incentives

Tax Benefits: Colorado provides an exemption from the state’s sales and use tax for certain renewable energy equipment.[1] Colorado also exempts residential renewable energy systems from property taxes.[2] When assessing the value of a commercial renewable energy facility for property tax purposes, the incremental value of the facility compared to a nonrenewable energy facility is disregarded.[3] AFV and HEV users qualify for an income tax credit.[4]

Grants: Colorado, through the Governor’s Energy Office (GEO), provides grant opportunities for renewable energy projects to businesses and individuals.[5]

Rebates: The GEO offers rebates to certain businesses and homeowners who purchase and install a qualifying renewable energy system. Rebates are also available to homeowners who purchase and install certain energy efficient appliances and weatherization products.[6]

Rules and Regulations

Renewable Portfolio Standard: An RPS is currently in place, with a 30 percent requirement by 2020.[7] The Colorado Public Utilities Commission currently acts as the executing agency for this policy.[8] Eligible resources include solar, wind, geothermal, biomass, small hydropower, “recycled energy,” and fuel cells using hydrogen derived from eligible energy resources.[9]

Facility Siting and Permitting: Colorado has enacted a statewide cap on building permit fees for solar PV systems and solar water heating systems.[10] Colorado prohibits residential agreements that restrict solar and wind turbine installation access.[11] Solar easements are allowed to provide access to direct sunlight.[12]

Building Codes, Appliance, and Equipment Standards: Colorado has adopted the 2003 IECC as its residential and commercial building codes.[13] Builders must provide prospective homebuyers with solar installation and water efficient products as standard options.[14] New construction and major renovations of state buildings must meet LEED Gold standards.[15]

Electricity Transmission, Interconnection and Storage: Net metering is available for qualifying renewable energy systems. This electricity generation can be applied towards the utility’s RPS obligation. A three-tiered interconnection policy is also in place, with interconnection levels based upon system complexity.[16] Municipal electric utilities providing service to more than 40,000 customers must offer a green power program to customers.[17]

Fuel Standards and Transportation: The Colorado Division of Oil and Public Safety is required to promulgate regulations so that the process of obtaining a permit for an underground storage tank that contains renewable fuel is more efficient and affordable.[18]

Government Procurement: State facilities must reduce energy consumption 20 percent by fiscal year 2011-2012, compared to 2005-2006.[19] All state agency vehicles using diesel must use biodiesel.[20]

Policies, Plans, and Governmental Affiliations

Plans and Goals: Former Governor Bill Ritter, Jr. has set a goal of reducing statewide GHG emissions to 20 percent below 2005 levels by 2020 and 80 percent below 2005 levels by 2050.[21]

Government Entities: Colorado Department of Local Affairs,[22] Colorado Department of Public Health and Environment,[23] Colorado Department of Revenue,[24] Colorado Office of Economic Development and International Trade,[25] Colorado Public Utilities Commission,[26] Governor’s Energy Office.[27]

Regional Memberships: Colorado is a member of the WGA and an observer of WCI.

[1] Colo. Rev. Stat. § 39-26-724; Colo. Rev. Stat. § 29-2-105; http://www.colorado.gov/cs/Satellite?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1251599352150&ssbinary=true.

[2] Colo. Rev. Stat. § 39-3-102; Colo. Assessors' Reference Library, Vol. 5, Personal Property Manual, page 7.53; House Bill 10-1267.

[3] Colo. Rev. Stat § 39-4-101 et seq.; Senate Bill 09-177; Senate Bill 10-174; Senate Bill 10-177; Senate Bill 10-019.

[4] Colo. Rev. Stat. § 39-22-516; House Bill 10-1196.

[5] http://www.rechargecolorado.com/.

[6] http://www.rechargecolorado.com/.

[7] Colo. Rev. Stat. § 40-2-124; 4 Code of Colo. Reg. § 723-3-3654; House Bill 10-1001; House Bill 10-1418.

[8] http://www.dora.state.co.us/PUC/rulemaking/RenewableEnergyStandard.htm.

[9] 4 Code of Colo. Reg. § 723-3-3652(p).

[10] Senate Bill 08-117.

[11] Colo. Rev. Stat. § 38-30-168; House Bill 08-1270.

[12] Colo. Rev. Stat. § 38-32.5.

[13] House Bill 07-1146.

[14] House Bill 09-1149; House Bill 10-1358.

[15] See Senate Bill 07-051 (directing the Office of the State Architect to develop a high performance standard). The Office of the State Architect selected LEED as their program, and set LEED Gold as their minimum standard.

[16] Colo. Rev. Stat. § 40-2-124; 4 Code of Colo. Reg. § 723-3-3664; Colo. Rev. Stat. § 40-9.5-118; Colo. Pub. Util. Comm’n Decision No. C09-0990; House Bill 10-1342.

[17] Colo. Rev. Stat. § 40-2-124(3)(c).

[18] Colo. Rev. Stat. §§ 8-20.5-202 and 8-20.5-302.

[19] Executive Order D0012 07.

[20] Colo. Rev. Stat. § 24-30-1104.

[21] Executive Order D004 08.

[22] http://dola.colorado.gov/.

[23] http://www.cdphe.state.co.us/.

[24] http://www.colorado.gov/revenue.

[25] http://www.advancecolorado.com/.

[26] http://www.dora.state.co.us/puc/.

[27] http://rechargecolorado.com/.