HB24-1352: Affordable Appliances for a Healthy Community

• Starting January 1, 2027, air conditioners manufactured and sold in Colorado must be configured as heat pumps capable of providing winter heating, with enforcement including warnings for first two violations and civil penalties up to $2,000 per ton of cooling for subsequent violations.

• Creates a $5,000 refundable, assignable state income tax credit (up to 10 installations) for home builders and HVAC contractors installing cold-climate or ground-source heat pumps between 2024-2033, with additional $1,000 bonuses for meeting criteria like prevailing wage, disadvantaged communities, or solar integration.

• Requires the Colorado Energy Office to conduct biennial market studies through 2034 and establish a program offering financial incentives to low-income households (earning up to 80% of area median income) to cover cost differences for compliant heat pump systems.

• Mandates public utilities submit proposals by April 1, 2025 for voluntary electricity rates for residential customers using heat pumps as primary heating source.

• Requires new building construction projects receiving state financial assistance to use Energy Star-certified appliances starting January 1, 2025, with waiver provisions and up to $40,000 civil penalties for violations; changes residential window/door standards from Energy Star to International Energy Conservation Code requirements.