To: Board of County Commissioners
Through: Bryan D. Weimer, Director, Public Works & Development Department
Prepared By:
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Bryan D. Weimer, Director, Public Works & Development Department
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presenter
Presenter: Bryan D. Weimer, Director, Public Works & Development Department
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Subject:
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1:45 PM *DRCOG Decarbonization Grant Program & Building Policy Collaborative
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Purpose and Request:
recommended action
The purpose of this study session is to provide an overview of the Denver Regional Council of Governments (DRCOG) Zero-Emission Building Initiative, and particularly the Building Policy Collaborative Jurisdictional Support Subaward Program. Staff will be asking for direction from the Board of County Commissioners on if they would like Public Works and Development (PWD) Staff to participate in this new program by: 1) executing a letter of commitment, 2) participating in various meetings, 3) apply for an Arapahoe County designated grant of $900,000.
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Alignment with Strategic Plan: Sustainable Growth and Infrastructure - Support environmentally responsible development and energy efficiency in county operations.
Background and Discussion: In August 2024, DRCOG was awarded a $199.7M federal grant from the Environmental Protection Agency’s Climate Pollution Grants, aimed at reducing greenhouse gas (GHG) emissions and other harmful air pollutants. The grant-funded program will support several coordinated initiatives to reduce carbon pollution from buildings, foster workforce development and offer financial incentives for home services and electric appliances, such as heat pumps, water heaters and electric cooktops and ranges. The intent is for each initiative to address specific environmental and industry challenges and improve air quality and public health in the Denver region and promote sustainability across the region. The initiative’s goal is to cut greenhouse gas emissions from buildings by 70% focusing on low-income and disadvantaged communities (LIDAC). Together, these efforts are intended to improve public health, spur innovation, and energize the economy.
The DRCOG workplan of a Zero-Emission Building Initiative focuses on four key GHG Reduction Measures, which are:
• Measure 1, Full-service Decarbonization for LIDAC Populations: (or “LIDAC Decarbonization”) Free home retrofits and upgrade services from start to finish, designed to meet LIDAC resident needs.
• Measure 2, Energy Advising: (or “Advisors”) Free, data-driven, client-focused, and vendor-neutral advising to help residential, multifamily, and commercial building owners through decarbonization.
• Measure 3, Rebates and Incentives: Funds to mitigate costs, accelerate adoption, and spur market growth.
• Measure 4, Building Policy Collaborative: (or “Policy Collaborative”) Facilitated support for accelerating and coordinating zero-emissions building policy implementation region-wide; funds to grow municipal capacity.
This study session will focus on Measure #4. The Building Policy Collaborative (BPC) will individually support DRCOG’s jurisdictions through October 19, 2029, to implement new, above-state-minimum building energy codes and performance standards; equipment replacement standards; permitting reform; embodied carbon standards; and professional licensure requirements. The overall DRCOG aspirational goal is to have the entire DRCOG region move toward a zero or near-zero emission policy for buildings (both existing and new) and have regional consistency among policies and codes. The focus on this GHG reduction is that within the DRCOG region 43.7M metric tons of CO2 is generated annually with 52% coming from buildings, 34% from the transportation sector, and other sources making up the remaining 14%. DRCOG has estimated that this program would impact approximately 3.3M people or roughly 56% of Coloradans. The intent of DRCOG is to address the building sector polluters by addressing building efficiency, electrification barriers, and other barriers, such as:
• Significant deficiencies in workforce and contractor readiness
• There is a multitude of regulatory requirements
• Limited awareness of residents and building owners of electric appliance options
• Higher upfront costs to achieve long-term cost and emissions savings
Through this program $34.8M will be available for jurisdiction subawards of which Arapahoe County would be eligible to receive $900,000 (based on 2025 Population - 30%, 2025 Jobs - 45%, Projected 2050 Population Growth - 10%, Projected 2050 Job Growth - 15%). The subaward program will consist of two rounds - first-round Jurisdictional Support Subaward Program, which is a non-competitive allocation, and a second competitive round that will launch in Spring 2026. Both rounds of allocation are intended to support local jurisdictions in adopting and implementing building decarbonization policies that will improve building energy efficiency and reduce climate pollution emissions. Round 1 applications are due by October 31, 2025.
The Subawards can be used in several ways to implement ambitious, above state-minimum building decarbonization policies at the local level. The local jurisdiction can determine and ultimately support/justify how we use the subaward to meet the goal. Building decarbonization policies are defined as policies addressing climate pollution and other pollutant emissions from building operations by addressing the efficiency of space heating and cooling, and water heating systems, rather than energy generation. Some examples of eligible uses of the funding include:
• Staff Capacity
• Training and Certification
• Permitting and Systems Support
• Technical Assistance
• Jurisdiction-led community engagement and coordination efforts
• Custom measure to support climate pollution reductions from the building sector
The following are potential ideas that PWD has for the use of the $900,000 subaward grant along with their eligibility per initial discussion with DRCOG Staff.
Planning
• Use for consultant or staffing to prepare updated Land Use Codes for -
o Wind
o Solar
o Battery Storage
o Geothermal
o Other
May be Eligible - to be eligible, these updates to the code would likely need to be tied to requiring these alternative energy sources as part of a land use action and approval.
• Use a consultant to develop an Arapahoe County Climate Action Plan. These plans typically include greenhouse gas reduction strategies from buildings, energy supply, transportation, etc. plus also include resilient and sustainability strategies. Currently we have no specific GHG reduction or mitigation goals so difficult to measure progress against a goal or what is trying to be achieved. These could feed into the County’s Comprehensive Plan below.
Eligible - However, these grant funds can only be used to fund the portion of the plan related to GHG reductions in buildings.
• Use for consultant or staffing to prepare updates for inclusion of decarbonization in the Comprehensive Plan including strategies for implementation
Eligible - However, the grant can only fund the building decarbonization side of the update.
• Public input of any updates/modifications to Code and Comp Plan
Eligible - This would fall under Community Engagement as the eligible use to support input on the comp plan.
Building
• Adoption of the New State of Colorado Model Low Energy and Carbon Code
o Consultant and/or staff to help with adoption (required as part of next NEC adoption) and for staff training
o Need to hire an energy specialist for plan review
o Specialty need for inspection
o Public and customer input for adoption
Eligible - From DRCOG staff, this is a common use of these funds, and we encourage jurisdictions to use the subaward to support this policy adoption and implementation.
• Adoption of 2027 Code
o Purchase Code Books and online
o Consultant to train staff
o Support of some kind (Consultant/staffing) for code adoption prep, analysis, etc.
o Public and customer input for adoption
Eligible - Same as noted above. The Collaborative itself will also provide support on this.
• Any Accela updates to accommodate new code requirements
Eligible - It sounds like Denver applied for funds to help with these updates as well. Not entirely sure what that looks like for Arapahoe County and even if needed.
Both Divisions
• Training and certification to increase in-house energy policy expertise, including conference and training attendance on advanced energy codes, performance standards, and high-performance building design and technology.
Eligible - Per DRCOG staff, many jurisdictions are applying for this as well.
• Consultant support in the development of decarbonization policy for the County.
Eligible - Per DRCOG staff, many jurisdictions are applying for this as well.
• Consultant research and data analysis to better understand building stock and implications of policy decisions.
Eligible - Per DRCOG staff
To be eligible for these subawards requires the jurisdiction to be a Building Policy Collaborative participant which requires meeting two criteria:
• At least one representative, or their designee, actively engage in the Building Policy Collaborative, with a goal of attending 75% of meetings and to meaningfully participate in content review and collaborative discussions.
• A letter of commitment signed by the chief elected official or senior administrative official (e.g., City Manager). DRCOG does not require a formal vote or council approval of any new policy to be eligible. These two items are included in the letter of commitment template:"
o Policy Advancement: We are committed to working toward the adoption and implementation of building decarbonization policies that exceed state minimum requirements and meet the grant goals for low-emissions new and existing buildings.
o We also intend to support the broader goals of the Building Decarbonization Program by [add any additional commitments, such as community outreach, workforce engagement/ development, peer collaboration, or data sharing].
A concern of mine is related to the form commitment letter and commitment to the adoption and implementation of decarbonization policies and code that have not been developed yet by DRCOG and how exceeding those current state minimum requirements may impact Arapahoe County.
Tied with this initiative somewhat is the recent release of the Colorado Model Low Energy and Carbon Code produced by the Colorado Energy Office (CEO) and Department of the Local Affairs (DOLA), which is pursuant to Colorado House Bill 22-1362. This Bill mandates that any jurisdiction that updates any of their building codes after July 1, 2026, will be required to adopt this Low Energy and Carbon Code (LECC) or an alternative code that achieves equivalent or better performance than the LECC. This will apply to the County’s requirement pursuant CRS 12-115-107(2)(j), to adopt the latest version of the National Electrical Code (NEC). The County is under the 2023 NEC and the 2026 NEC would be adopted by the County no later than 2nd quarter of 2027, at which time we would be required to adopt the LECC.
Since the LECC was just released on September 2, 2025, we still need to dive into the 150-page code to determine the requirements and impacts to the County operations, but from the CEO & DOLA they estimate that for vast majority of homes (those under 5,000 square feet in size), the code requirements are very similar to IECC 2024. An analysis conducted on behalf of the National Association of Homebuilders found that for most regions in Colorado, moving from IECC 2021 to 2024 would reduce construction costs for new homes by between $3,900 (for homes heated by gas) to $6,750 (for homes heated by electric heat pumps), as well as providing ongoing energy cost savings. This is done by increasing flexibility for builders by providing multiple options to achieve efficiency by removing mandatory on-site renewable energy requirements for commercial buildings and making renewable energy voluntary. It will also fairly credit energy savings from high-efficiency electric heating and water heating. This means that while the code changes do not make it more difficult to build with gas, in many circumstances high-efficiency electric heating and water heating will be the most cost-effective option. Finally, the LECC does eliminate mandatory on-site renewable energy requirements of the State Model Energy and Solar Ready Code for commercial buildings and makes renewable energy voluntary by increasing flexibility for builders by providing multiple options to achieve efficiency.
From my initial evaluation, I have identified a few areas of concern that we should look at the impact as we learn more about the LECC. Adoption requires updating local ordinances to reference the LECC (effective upon adoption, superseding prior codes). Enforcement involves:
• Permitting and Plan Review:
o Require documentation for solar/EV zones, electric-ready spaces, air barriers, and energy credits (e.g., calculations for credits under C406/R408).
o Verify compliance paths (prescriptive/performance); check waivers (e.g., cost differential appeals).
o Mandate labels (e.g., "For Future Solar Electric") and certificates.
• Inspections:
o New focuses: Air barrier sequencing (by approved agencies); EV conduits/receptacles; demand-responsive controls; condensate drains.
o Additions/alterations: Inspect for credits (e.g., 5-10 credits for additions); exemptions for small/sloped roofs.
o Third-party involvement: Approved agencies for air barrier/EV inspections; potential for sampling in multifamily duct testing.
• Staffing and Training:
o Train inspectors/reviewers on amendments (e.g., EV levels, credit calculations, etc.).
o How to handle appeals/waivers: Designate authority (e.g., board) for natural disaster/cost waivers.
• Compliance and Enforcement:
o Issue certificates of occupancy only after verifying (e.g., energy monitoring for >25,000 sq ft commercial).
o Align penalties with existing code violation processes.
o Establish a Timeline and is there an all or phased approach.
• Administrative Changes:
o Update fees if more reviews/inspections are needed.
o Public outreach: Educate builders on flexibilities (e.g., renewable limits) to ease adoption.
o Coordination: With utilities for demand response; state for consistency.
In summary, adoption of the LECC promotes sustainable building but requires upfront investments balanced by long-term benefits. It focusses on all electric readiness to reduce future retrofit costs, it eliminates mandatory onsite renewables in lieu of voluntary by using credit calculations, and incorporates appendices from previous codes into the base code. We will need to assess our capacity for the changes, the impact on the customer and the return on investment, plus look internally at our workload and costs and offset them accordingly, if needed. Thus, the reason portions of the adoption effort of the LECC is eligible as part of the DRCOG subaward grant.
Alternatives: The alternatives before the BOCC are as follows with the pros/cons:
1. Decide that Arapahoe County wants to pursue the $900,000 subaward, by preparing and applying for the grant before the October 31, 2025, deadline. It would require a staff commitment to attend 75% of the Building Policy Collaborative Meetings plus sign a Letter of Commitment. The decision really centers around the level of commitment the County has related to requiring decarbonization of new and existing buildings within the County.
a. Pros - It would allow the County to access the $900,000 without going through a competitive process. It would provide funding for the County to establish energy policies and code adoption in which we typically would either have to fund ourselves with the PWD budget or ask for county funding for such. Not all details would need to be finalized with the application and worked out as part of the IGA scope of work finalization including the timeframe for when funding would be needed, the amount of funding allocated to individual tasks, etc. There would be an opportunity to hire an energy specialist for the period covered with the grant. The Building Policy Collaborative provides legal support for adoption of codes and policy plus consultant support.
b. Cons - It would be a new initiative for PWD. There would be a time commitment by myself, along with some staff time, to pull the application together and submit it to DRCOG. There would be a commitment to attend the meetings and work in between meetings. Over the period of time for the grant, we would need to track costs and provide invoices and reporting to DRCOG. There would be an expectation of the County adopting some of the policies/codes developed by DRCOG without knowing what they may be - ultimately, we could decide not to adopt.
2. This alternative involves the County declining to be involved with the Building Policy Collaborative and not pursuing the $900,000 subaward.
a. Pro - There would be no time commitment to the initiative nor a requirement to adopt a more strict code and decarbonize policy than the state mandated codes. The requirements of accepting the subaward would not apply.
b. Con - Any required funding that is needed for adoption of the state LECC and/or the 2027 International Building Codes would need to be funded by the County either by being absorbed within the PWD budget or through specific budget packages. This includes training of staff, purchasing of resources, policy development resources, etc. Any Accela permitting enhancements would need to be funded by the County. The additional Building Policy Collaborative support for policy development including legal support for policy/code adoptions and consultant support.
3. The final alternative would involve the County declining round one application for the subaward but pursuing funding during round two competitive grant during the spring of 2026.
a. Pro - The timing for preparation of the application for funding would align better for staff availability. We could fine tune our application more specifically.
b. Cons - There is no guarantee that the County would receive funding nor the amount that could be awarded. The same requirements of round 1 subawards would apply to round 2 awards.
Fiscal Impact: The fiscal impact includes an increase in revenue over a 4-year period of a total of $900,000 if the County chooses to pursue a grant from DRCOG and be part of the Building Policy Collaborative. Expenses of the County would be a function of the initiatives pursued with the subaward grant. There would also be incidental costs of managing the grant which would be absorbed by staff. Furthermore, if the County desired to prepare and develop a Climate Action Plan, a mid-level plan with moderate stakeholder engagement, I estimate the costs to be around $300-$400K, of which the grant could cover $100-$150K.
Alignment with Strategic Implementation Strategies: The attached framework helps Arapahoe County institutionalize value-based, transparent decision-making, documenting how we make decisions and carrying out actions to achieve the county’s strategic plan.
Staff Recommendation: This is a new initiative and I/PWD understand that we are to avoid such given our current workload and priorities. However, given that there has been a subaward grant made available to the County of $900,000, the fact that we can provide a high level proposal to DRCOG of the use of the subaward grant, DRCOG staff willingness to help with the preparation of the application, some potential leeway with the deadlines, and that once accepted we can develop the specific workplan and details over a 3-4 month timeframe to finalize the grant utilization as part of the IGA negotiation, I would recommended Alternative #1 targeting the following with the $900,000 subaward grant:
• Determination by the BOCC would want to pursue and fund a portion of a Climate Action Plan in 2027-2028. Given Planning Division mandated deadlines for HB24-1313 and SB24-174 which deadlines are at the end of 2026, plus other code amendments, this timeframe is the first time a plan could be implemented with staffing available to manage.
• Hire a consultant to incorporate a decarbonization element into the Comprehensive Plan in 2028.
• Hire an energy code specialist in 2nd quarter of 2026 to help with the adoption of the Colorado Model Low Energy and Carbon Code in 2027 and new building and energy codes in 2028 (International Code Council version 2027).
• Hire a consultant for training staff on new energy codes both from a plan review and an inspection role during 1st quarter of 2027. Also, training and certification to increase in-house energy policy expertise, including conference and training attendance on advanced energy codes, performance standards, and high-performance building design and technology.
• Hire consultant support in the development of decarbonization policy for the County, as well as research and perform data analysis to better understand building stock and implications of policy decisions. This could be a 2027 or 2028 goal.
• Other initiatives as proposed.
While this is a new initiative, it provides an opportunity to utilize resources typically not available for adoption of codes and having support in developing policies for energy efficiencies and the outreach of such. The discussion by the Board should center around the level at which the Board would like to be when it comes to decarbonization of existing and new buildings between now and into the future, as well as where this fits within the priorities of the County.
Concurrence: The subaward information has been shared with the Grand Squad.