This grant will help public institutions reduce greenhouse gas pollution, improve indoor air quality, and save taxpayer dollars spent on energy costs
The Colorado Energy Office (CEO) launched its innovative Public Building Electrification Grant (PBEG) program Tuesday. This program is one of the first statewide grant programs in the nation to provide funding to public institutions for building electrification projects, such as replacing gas furnaces with high-efficiency electric heat pumps. A total of $10 million is available for this program through June 2026 as a result of the "Building Greenhouse Gas Emissions" bill (HB22- 1362).
"Public buildings tend to be older with inefficient energy systems and high energy costs," said CEO Building Efficiency and Electrification Lead Brittney VanCuran.
"Limited or restrictive budgets often make energy upgrades in public buildings cost- prohibitive. Enabling public institutions to install new, highly-efficient electric technologies in their buildings will reduce climate-warming greenhouse gas emissions; make our schools, libraries, and other public buildings safer; and save taxpayers money on energy costs."
Fossil fuel use in buildings is among the top-five leading sources of greenhouse gas (GHG) pollution in Colorado, making building electrification a top priority to meet the state's goal of net-zero emissions by 2050. The State has implemented several policies to reduce emissions from this sector, including the recently adopted Building Performance Standards (BPS) and Model Electric Ready and Solar Ready building energy code.
The BPS rules require large buildings to lower their energy usage or GHG emissions a specified amount over time in order to achieve the state's statutory goal to reduce emissions from this sector 7% by 2026 and 20% by 2030 from 2021 levels. PBEG funding will help public institutions that own a public building covered by the BPS rules pay for the energy improvements needed to comply with the rules.
Additionally, the State's Energy Code Board adopted a model electric-ready and solar- ready building energy code in June 2023. Local governments that update any other building code are required to adopt this model code, as well as the 2021 International Energy Conservation Code. The PBEG is available for electrification projects in new construction, enabling new public buildings to comply with and exceed local building energy code requirements.
Higher education institutions, municipalities, counties, public school districts, state agencies, and special districts are eligible to apply for funding from the PBEG program. Awardees may use PBEG funding to identify and plan electrification projects; install high-efficiency electric equipment for heating/cooling, water heating, and cooking; make electrical upgrades to support electrification; and implement other innovative building heating technologies that reduce greenhouse gas emissions.
CEO will cover 50% of the cost of an energy audit (up to $8,000) to plan electrification projects and 75% of total project costs (up to $500,000) to implement energy upgrades.
Enhanced incentives are available for projects in disproportionately impacted (DI), low- income (LI), and just transition (JT) communities, with 75% cost coverage (up to $12,000) for an energy audit, and coverage of an extra 40 hours of administrative time during implementation. In addition to these enhanced incentives, at least 30% of the $10 million allocated for this program is reserved for projects in DI, LI, and JT communities.
In early 2024, CEO will host an electrification technology information session. Applicants who attend will be allowed a $5,000 reduction in their cost match requirement.
CEO will accept applications for the PBEG program on a rolling basis until funding runs out or until June 30, 2026. To learn more about the program, including applicant and project eligibility, program guidelines, and how to apply, please visit the Colorado Energy Office's Public Building Electrification Grant Program webpage.
Public institutions applying for the PBEG program are also eligible for the State's Energy Performance Contracting (EPC) financing program. The EPC program offers cost neutral financing to public institutions to fund energy upgrades. We recommend applicants explore EPC to help identify electrification equipment opportunities, fulfill PBEG application criteria, and provide cash match dollars to meet the grant's financial requirements.
