C.R.S. Section 24-38.5-109
Aggregation of efficiency or renewable energy projects in small or rural schools and small or rural communities in order to attract private sector investment through performance contracting

  • legislative declaration
  • definitions

(1)

The general assembly hereby finds and declares that:

(a)

Performance contracting is an important tool that has been utilized by the state for over fifteen years. The state has established powerful working relationships with private sector energy performance contracting professionals, known as energy service companies, to finance energy savings upgrades for state agencies, school districts, special districts, counties and municipalities, and even at the state capitol building.

(b)

Some small or rural communities lack the opportunity for the benefits of performance contracting, so engaging such communities through education and existing resources is sound policy;

(c)

Such small or rural communities often lack assets or building inventory to attract performance contracting capital;

(d)

Since much of the infrastructure in small or rural communities is outdated, costly to maintain, and energy intensive, efficiency upgrades are needed for buildings, mechanical equipment, electrical systems, lighting, water, motor vehicle fleets, and community entity-owned fueling stations for such motor vehicle fleets;

(e)

Regional identification of efficiency projects and renewable energy projects in small or rural communities is important;

(f)

Aggregating efficiency projects or renewable energy projects in small or rural communities into a dynamic multidimensional portfolio of an acceptable size to attract private sector financing to such communities without creating an obligation of the state will open up the financial market for performance contracting in such communities, will engage the use of local contractors, and will create local jobs; and

(g)

As a result of such aggregation, small or rural community leaders will be supported in their pursuit to make Colorado more energy efficient, equip such communities with much needed modernized infrastructure, and reduce life-cycle costs for taxpayer-supported entities.

(2)

As used in this section, unless the context otherwise requires:

(a)

“Community entity” means a school district, special district, or county or municipality in a small or rural community in the state.

(b)

“Diverse” means a range of efficiency projects and renewable energy projects based on geography, size, long-term and short-term payback periods, overall cost, and types of efficiency projects and renewable energy projects.

(c)

“Efficiency projects” means one or more projects of a community entity that results in the more efficient use of energy or resources, such as:

(I)

Installing equipment and related infrastructure that will help defray energy costs;

(II)

Improving the energy efficiency of a building including but not limited to addressing lighting issues, improving mechanical systems and equipment, improving the building envelope, or improving operations management;

(III)

Reducing water usage or consumption;

(IV)

Re-engineering or improving water or wastewater treatment facilities; or

(V)

Improving the energy usage of motor vehicle fleets or community entity-owned fueling stations for such motor vehicle fleets, including but not limited to increasing the use of alternative fuel vehicles in such motor vehicle fleets.

(d)

“Office” means the Colorado energy office created in section 24-38.5-101.

(e)

“Performance contract” means a contract similar to the contracts described in section 24-30-2001 or 24-38.5-106; except that a performance contract allowed pursuant to this section may not create a financial obligation to the state.

(f)

“Renewable energy projects” means one or more projects of a community entity to install equipment and related infrastructure for renewable energy generation, including, but not limited to geothermal, hydroelectric, wind, solar, or biomass energy.

(3)

In an effort to simplify the process for small and rural communities, the office shall consult with the energy service companies on its list of prequalified energy service companies and have a list available of those prequalified energy service companies that are interested and prepared to work in each region where the department of local affairs maintains a regional office and field staff.

(4)

Intentionally left blank —Ed.

(a)

Without creating a financial obligation to the state, the office may, within existing resources, work together with its prequalified energy service companies to ascertain efficiency projects or renewable energy projects that can be aggregated to create a larger portfolio of diverse efficiency projects or renewable energy projects with costs totaling an amount that in a favorable financial market will attract the investment of private sector banks or investors through performance contracts. In the event such a larger portfolio of diverse efficiency projects or renewable energy projects is established pursuant to this subsection (4) and financed, the financing documents must include a cost of issuance fee payable to the department of local affairs of a percentage of the issuance, not to exceed one percent, that must be credited to the efficient schools and communities performance contracting fund.

(b)

Once there is sufficient money in the efficient schools and communities performance contracting fund from the cost of issuance fee described in paragraph (a) of this subsection (4), in the event a community entity’s efficiency project or renewable energy project is not financed, the department of local affairs shall consult with the office in cooperation with the prequalified energy service companies determined to work within that community entity’s region as described in subsection (3) of this section to review the community entity’s need and, if approved, award a grant to such community entity for a reimbursement of a portion of the technical energy audit completed by the community entity from the cost of issuance fees credited to the fund pursuant to paragraph (a) of this subsection (4). A prequalified energy service company may also seek and the department of local affairs, in consultation with the office, may award a grant from the cost of issuance fees credited to the fund for a portion of the energy service company’s costs if an efficiency project or renewable energy project is not financed. All grants awarded by the department of local affairs pursuant to this paragraph (b) must be prioritized by need and may not exceed the available cost of issuance fees.

(5)

The office shall provide facilitation and technical support for community entities that have been aggregated as described in paragraph (a) of subsection (4) of this section and shall create and provide standardized documents to support local performance contracts.

(6)

The office may consult with nonprofit organizations and the department of local affairs to provide education and outreach to community entities regarding the advantages of performance contracting for purposes of completing efficiency projects or renewable energy projects in such community entities.

(7)

There is hereby created in the state treasury the efficient schools and communities performance contracting fund, referred to in this section as the “fund”, consisting of the cost of issuance fees credited to the department of local affairs pursuant to paragraph (a) of subsection (4) of this section. The moneys in the fund are continuously appropriated by the general assembly to the department of local affairs for awarding grants as specified in paragraph (b) of subsection (4) of this section. In the event the department of local affairs cannot implement the grant program within existing resources, then the department of local affairs may expend up to five percent annually of the moneys in the fund to offset the costs incurred in implementing the grant program. The state treasurer may invest any moneys in the fund not expended for the purpose of this section as provided by law. The state treasurer shall credit all interest and income derived from the investment and deposit of moneys in the fund to the fund. Any unexpended and unencumbered moneys remaining in the fund at the end of a fiscal year remain in the fund and shall not be credited or transferred to the general fund or another fund.

Source: Section 24-38.5-109 — Aggregation of efficiency or renewable energy projects in small or rural schools and small or rural communities in order to attract private sector investment through performance contracting - legislative declaration - definitions, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-24.­pdf (accessed Oct. 20, 2023).

24‑38.5‑101
Colorado energy office - creation 24‑38.5‑102
Colorado energy office - duties and powers - definitions 24‑38.5‑102.4
Energy fund - creation - use of fund - definitions - report - repeal 24‑38.5‑102.5
Innovative energy fund - creation - use of fund - definitions - repeal 24‑38.5‑102.6
Climate change mitigation and adaptation fund - creation - use 24‑38.5‑102.7
Colorado energy saving mortgage program - definitions 24‑38.5‑103
Electric vehicle grant fund - creation - administration - legislative declaration 24‑38.5‑105
Clean energy improvement debt reserve fund - authorization - use 24‑38.5‑106
Financing of capital projects to make state government more energy efficient - financed purchase of asset agreements - legislative declaration - definition 24‑38.5‑107
Colorado energy office - subject to audit 24‑38.5‑108
State agency coordination of review of federal license and license exemption applications for hydroelectric energy projects - legislative declaration - definitions - guidelines 24‑38.5‑109
Aggregation of efficiency or renewable energy projects in small or rural schools and small or rural communities in order to attract private sector investment through performance contracting - legislative declaration - definitions 24‑38.5‑110
Electric vehicle plan and greenhouse gas pollution reduction roadmap - annual progress reports 24‑38.5‑111
Social cost of greenhouse gas pollution - estimate methodology 24‑38.5‑112
Building performance program - duties of the office - county assessor records database - fees - definitions 24‑38.5‑113
Grid resilience and reliability roadmap - microgrid development - stakeholder input - definitions - reporting 24‑38.5‑114
Ozone season transit grant program - fund - creation - policies - report - definitions - repeal 24‑38.5‑115
Sustainable rebuilding program - fund - creation - policies - report - definitions 24‑38.5‑116
Industrial and manufacturing operations clean air grant program - creation - eligibility - fund created - gifts, grants, or donations - transfer - legislative declaration - definitions - reporting - repeal 24‑38.5‑117
Cannabis resource optimization cash fund - creation - gifts, grants, or donations 24‑38.5‑118
Geothermal energy grant program - creation - procedures - fund - report - definitions - legislative declaration - repeal 24‑38.5‑119
Streamlined solar permitting and inspection grant program - creation - eligibility - fund created - gifts, grants, or donations - reporting - legislative declaration - definitions - repeal 24‑38.5‑120
Decarbonization tax credits administration cash fund - definitions - repeal 24‑38.5‑121
Assessment of advanced energy solutions in rural Colorado - northwestern and west end of Montrose county Colorado study - southeastern Colorado study - report - legislative declaration - definitions - repeal 24‑38.5‑122
Carbon management roadmap - creation - requirements - report - definitions - repeal 24‑38.5‑301
Legislative declaration 24‑38.5‑302
Definitions 24‑38.5‑303
Community access enterprise - creation - board - powers and duties - fund - fee - transparency and reporting 24‑38.5‑401
Energy code board - appointment - creation - duties - definitions - repeal 24‑38.5‑402
Model green energy code 24‑38.5‑403
Energy code training - energy code adoption - grant writing assistance 24‑38.5‑404
Building electrification for public buildings grant program - creation - report - legislative declaration 24‑38.5‑405
High-efficiency electric heating and appliances grant program - creation - report - legislative declaration - repeal 24‑38.5‑406
Clean air building investments fund - creation - use of fund 24‑38.5‑501
Legislative declaration 24‑38.5‑502
Definitions 24‑38.5‑503
Community access to electric bicycles grant program - creation - eligibility 24‑38.5‑504
Community access to electric bicycles rebate program - eligibility - reimbursement 24‑38.5‑505
Reporting 24‑38.5‑506
Community access to electric bicycles cash fund - creation - gifts, grants, or donations - transfer 24‑38.5‑507
Repeal of part
Green check means up to date. Up to date

Current through Fall 2024

§ 24-38.5-109’s source at colorado​.gov