Colorado

Incentives/Policies for Renewables & Efficiency

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Local Option - Improvement Districts for Energy Efficiency and Renewable Energy Improvements

Last DSIRE Review: 12/07/2009

Program Overview:

State:	Colorado
Incentive Type:	PACE Financing
Eligible Efficiency Technologies:	Lighting, Lighting Controls/Sensors, Heat pumps, Air conditioners, Heat recovery, Energy Mgmt. Systems/Building Controls, Caulking/Weather-stripping, Building Insulation, Windows, Doors
Eligible Renewable/Other Technologies:	Solar Water Heat, Solar Thermal Electric, Photovoltaics, Wind, Biomass, Geothermal Electric, Geothermal Heat Pumps, Daylighting, Small Hydroelectric, Ethanol, Biodiesel, Fuel Cells using Renewable Fuels
Applicable Sectors:	Commercial, Industrial, Residential, Multi-Family Residential, Low-Income Residential, Agricultural, Institutional
Financing Terms:	Locally determined
Eligible Local Governments:	Cities, counties, and towns
Possible Revenue Sources:	Bonds

Authority 1: C.R.S. 30-20-601.5 et seq. Date Enacted: 5/27/2008
Authority 2: C.R.S. 31-25-500.2 et seq. Date Enacted: 05/27/2008

Summary:

Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. Colorado has authorized local governments to establish such programs, as described below. (Not all local governments in Colorado offer PACE financing; contact your local government to find out if it has established a PACE financing program.)

Colorado enacted legislation in May 2008 (H.B. 1350, Session Law 229) that amended Colorado counties' and cities' existing authority to create improvement districts. The new law allows a city or county board to propose a improvement district specifically for clean energy improvements via resolution or ordinance. The law includes a long list of eligible technologies from which a local government may choose, including:

Solar water heating
Solar thermal-electric
Photovoltaics (PV)
Wind
Biomass
Hydroelectric
Geothermal-electric
Biodiesel and ethanol
Fuel cells that do not use fossil fuels
Insulation
Windows and doors
Automatic energy control systems
HVAC systems
Caulking and weather stripping
Lighting
Daylighting
Energy-recovery systems
Geothermal heat pumps

Local governments are authorized to issue bonds to fund the PACE programs, however voter approval is required. Once the program is established and funding is available, property owners within an improvement district may voluntarily apply and if selected, execute a contract for a loan. The property owners then repay the loan via an assessment on the property. The local government must specify the procedures within the resolution or ordinance governing their PACE program.

In Colorado, Boulder County was the first county to implement a program utilizing this property assessed financing mechanism. See Boulder County ClimateSmart Loan Program

Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.