What HB 25-1269 actually does

In May 2025, Governor Polis signed HB 25-1269 (‘Building Decarbonization Measures’). The headline change is narrow but consequential: the 2026 performance targets under the state’s Building Performance Colorado (BPC) program — which covers existing buildings 50,000 sq ft and above under HB 21-1286 — were converted from enforceable requirements with penalties into non-enforceable goals.

In practice this means three things:

  1. Owners who miss their 2026 EUI or GHG-reduction target will not be assessed penalties for that miss.
  2. Reporting is still mandatory. The benchmarking submission window is now July 1 – November 1 annually.
  3. Annual benchmarking and decarbonization fees still apply.

Critically, the 2030 targets remain fully enforceable. The Colorado Energy Office (CEO) has been clear that the 2030 horizon is now the policy anchor.

What didn’t change

It is easy to read ‘non-enforceable 2026 targets’ and assume the program has been softened. It hasn’t, not really. Here is what is unchanged:

  • The 50,000 sq ft coverage threshold.
  • The annual benchmarking obligation through ENERGY STAR Portfolio Manager.
  • The fee structure.
  • The 2030 enforceable EUI/GHG-reduction targets.
  • The Energize Denver ordinance for buildings 25,000 sq ft and above located in Denver.
  • The 179D federal commercial-buildings energy-efficiency deduction (a separate matter — and it sunsets June 30, 2026, for projects that haven’t begun construction).

The Denver complication

If you own a building in Denver, you have two regulators: the City (Energize Denver, buildings 25,000 sq ft+) and the State (BPC, buildings 50,000 sq ft+). For owners whose buildings hit both thresholds, the state has carved out an interoperability rule: compliance with Energize Denver’s energy-efficiency requirements is recognized as compliance with the state BPC performance targets.

You still file with both. The performance compliance flows through Energize Denver, but the state benchmarking obligation and decarbonization fees are independent.

What 2030 means in EUI terms

For most commercial building types, hitting the 2030 BPC target requires somewhere between 20% and 40% EUI reduction from the 2021 baseline, depending on the building type and starting EUI. The specific number for your asset depends on the building category and your individual baseline; the CEO publishes the current target tables.

A useful framing: most owners will need to be substantially through their decarbonization roadmap by 2028 to land in compliance with 2030 targets, accounting for project lead times, equipment lead times (especially heat pumps and refrigerant transitions to A2L systems), and tenant disruption windows.

What commercial owners should actually do

Five concrete moves between now and end of 2026:

  1. Don’t pause capex on the assumption that policy is loosening. It isn’t. The enforcement timeline shifted by four years. The targets did not.
  2. Get a fresh baseline EUI. If your 2024 benchmarking is what you’re relying on, refresh it. Audit-grade. The 2030 math is unforgiving if you started from the wrong number.
  3. Map the 179D cliff. Projects with construction beginning after June 30, 2026 lose access to the 179D deduction at its post-IRA levels ($0.50–$5.00 per sq ft depending on savings and prevailing-wage compliance). For most owners this is the single biggest 2026 deadline that matters, more than the BPC reporting one.
  4. Sequence the long-lead items first. Heat pumps, chiller replacements, refrigerant-transition work — these have 12–24 month procurement windows. They go on the bench first.
  5. Plan the tenant disruption windows now. A 2029 chiller replacement that requires a stack shutdown needs to be sold to the leasing team in 2026. You can’t compress this.

What we’re seeing on Colorado projects

We’re working two assets through their 2030 pathways now — one office, one multifamily. The pattern is consistent: owners who looked at the 2026 deadline as the operative one are scrambling for retro-commissioning quick-wins. Owners who looked at 2030 and worked backward are in the middle of measured, phased plans.

The bigger picture

HB 25-1269 is the second-generation policy refinement that BPS programs across the US are starting to make: pull back enforcement at the entry deadline (when most owners are still learning the rules), keep enforcement at the deeper deadline (where the carbon math has to actually pencil). New York and DC have made similar moves with LL97 and BEPS respectively. Expect more.

That doesn’t mean BPS is softening. It means the implementation pathway is being adjusted to land owners in the right place by 2030.

If you want to track where your asset sits versus the 2030 line, the calculator we use internally will be released to subscribers later in 2026. Subscribe below.

Sources

  • HB 25-1269, Colorado General Assembly (signed May 2025) — ‘Building Decarbonization Measures’
  • Colorado Energy Office, Building Performance Colorado program page
  • HB 21-1286, Energy Performance for Buildings (original statute)
  • City and County of Denver, Energize Denver ordinance text
  • IRS Section 179D guidance, post-IRA — 179D commercial buildings energy-efficient deduction

Frequently asked questions

Does HB 25-1269 mean I don't have to do anything in 2026?
No. Annual benchmarking reporting is still required, and benchmarking and decarbonization fees still apply. The change is to enforcement of the 2026 performance targets — missing them no longer triggers penalties. The reporting obligation, the fees, and the 2030 enforceable targets are unchanged.
What is the new reporting window?
Reporting season now runs from July 1 to November 1 annually for the Building Performance Colorado (BPC) program covering buildings 50,000 sq ft and above.
How does this interact with Energize Denver?
Energize Denver is the City of Denver's own building performance ordinance and applies to buildings 25,000 sq ft and above. It is administered separately from the state BPC program. Buildings located in Denver and covered by both must continue to report to both, and compliance with Energize Denver's energy-efficiency requirements counts as compliance with the state BPC performance targets.
If 2026 isn't enforced, should I delay my capex plan?
Probably not. The 2030 targets remain enforceable, the 179D commercial deduction sunsets for projects beginning construction after June 30, 2026, and most decarbonization measures with reasonable paybacks need a multi-year planning runway. Delay tends to compound — both technically and financially.
Which buildings does the state BPC program apply to?
All existing facilities with 50,000 sq ft or greater gross floor area, with some exemptions including buildings primarily used as residences and certain agricultural/industrial uses. Confirm specifics against the Colorado Energy Office's current rules.
Where do I find the law text?
HB 25-1269 — 'Building Decarbonization Measures,' signed by Governor Polis in May 2025. The Colorado Energy Office BPC page links the rulemaking documents.
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Chris Mbori
About the author

Chris Mbori

Founder of Eenovators Limited (East African ESCO), partnering with AIM Dynamics. Built Eagles and the ADM portal. AEE Energy Manager of the Year (Sub-Saharan Africa). 10 AEE certifications. Licensed Engineer. Field journal — hype-skeptical, field-tested.