2023 Colorado Revised Statutes › Title 40 - UTILITIES (§§ 40-1-101 — 40-43-104) › PUBLIC UTILITIES (§§ 40-1-101 — 40-17.5-105) › GENERAL AND ADMINISTRATIVE (§§ 40-1-101 — 40-9.8-104) › Article 3.2 - AIR QUALITY IMPROVEMENT COSTS (§§ 40-3.2-101 — 40-3.2-210) › Part 1 - GENERAL PROVISIONS (§§ 40-3.2-101 — 40-3.2-110) › Section 40-3.2-105.6 - Labor standards for beneficial electrification projects

(1)
This section applies to all necessary mechanical, plumbing, and electrical work performed in connection with a project undertaken pursuant to a beneficial electrification program under this article 3.2 and for which a customer of an investor-owned electric utility applies for a rebate directly from the utility.
(2)
When practicable, the utility may assign its own employees to perform the work, subject to state licensing requirements and all applicable state and local rules, codes, and standards.
(3)
(a)
The utility shall obtain from the Colorado department of labor and employment and shall make use of a list, referred to in this section as the "certified contractor list", containing the names and contact information of:
(I)
Qualified contractors that participate in apprenticeship programs that are registered with the United States department of labor's office of apprenticeship or with a state apprenticeship agency recognized by the United States department of labor; and
(II)
Qualified mechanical, electrical, and plumbing contractors that meet the graduation standards specified in section
24-92-115(1)(a)(II)
.
(b)
The utility shall publish the certified contractor list on its website and include or reference the list in all of the utility's relevant marketing material for beneficial electrification programs.
(c)
As a condition for customer participation in beneficial electrification programs where a rebate is paid directly to the customer after installation is complete, each investor-owned electric utility shall require its residential customers to verify that they used licensed electricians and plumbers or properly supervised apprentices on all plumbing and electrical work performed by a contractor on residential installations that qualify for a beneficial electrification rebate.
(4)
The following requirements apply to beneficial electrification projects in new or existing industrial, commercial, or multifamily residential buildings:
(a)
For plumbing, mechanical, or electrical projects undertaken by a commercial or industrial customer in a building that contains twenty thousand square feet or more of conditioned floor space and for which a rebate is to be provided directly to the customer as part of a beneficial electrification program, the utility shall condition payment of the rebate on the customer's exclusive use of contractors from the certified contractor list unless the work is done by employees of the utility.
(b)
(I)
For plumbing, mechanical, or electrical projects that involve the beneficial electrification of central building systems in a multifamily building that contains twenty thousand square feet or more of conditioned floor space and for which a rebate is to be provided directly to the building owner as part of a beneficial electrification program, the utility shall condition payment of the rebate on the building owner's exclusive use of contractors that participate in apprenticeship programs registered with the United States department of labor's office of apprenticeship or with a state apprenticeship agency recognized by the United States department of labor for any necessary plumbing or electrical work. If the contractor chosen by the building owner is not on the certified contractor list, the utility shall require another method of verifying compliance with this subsection (4)(b).
(II)
This subsection (4)(b) does not apply to a beneficial electrification project that is limited to in-unit work in a multifamily building, as undertaken by the owner or tenant of the multifamily building or unit.
(5)
(a)
For a beneficial electrification project in a new or existing industrial, commercial, or multifamily residential building that contains twenty thousand square feet or more of conditioned floor space and for which a rebate is to be provided directly to the building owner as part of the beneficial electrification program, a utility shall not issue any rebates or incentives unless the lead general contractor performing the work for the project signs a notarized affidavit under penalty of perjury stating that all of the requirements of this section have been met and provides the signed affidavit to the sponsoring utility. The affidavit must:
(I)
Identify the contractors or subcontractors that will be used for all mechanical, sheet metal, fire suppression, sprinkler fitting, electrical, and plumbing work required on the project;
(II)
Certify that all firms identified participate in apprenticeship programs registered with the United States department of labor's employment and training administration or state apprenticeship agencies recognized by the United States department of labor and have a proven record of graduating apprentices as follows:
(A)
Beginning July 1, 2021, through June 30, 2026, a minimum of fifteen percent of its apprentices for at least three of the past five years;
(B)
Beginning July 1, 2026, through June 30, 2031, a minimum of twenty percent of apprentices for at least three of the past five years; and
(C)
Beginning July 1, 2031, and each year thereafter, a minimum of thirty percent of apprentices for at least three of the past five years; and
(III)
Supply supporting documentation from the United States department of labor's office of apprenticeship or state apprenticeship agency verifying the information provided in the certification specified in subsection (1)(a)(II) of this section.
(b)
The utility must maintain a database of the information contained in the affidavit for each project awarded a rebate or incentive.
(c)
This subsection (5) does not apply to a beneficial electrification project that is limited to in-unit work in a multifamily building, as undertaken by the owner or tenant of the multifamily building or unit.
(6)
(a)
To ensure compliance with the requirements of subsection (5) of this section, the general contractor or other firm to which the contract is awarded must agree to provide additional documentation to the participating utility offering the rebate or incentive regarding the requirements for affected apprenticeship training programs specified in subsection (5)(a) of this section.
(b)
If the utility offering the rebate or incentive determines that a mechanical, electrical, or plumbing subcontractor has willfully falsified documentation or willfully misrepresented their qualifications as required to comply with this section in the contract, the utility shall direct the contractor to terminate the subcontractor contract immediately and the subcontractor must immediately be removed from the public project. The utility may debar the offending subcontractors for future participation in rebate or incentive programs established under this section.
(c)
If after issuing a rebate or incentive pursuant to this section, A utility determines that a contractor or subcontractor has willfully violated any requirement of this section, the utility may demand a full refund of the rebate or incentive with reasonable penalties and interest and may pursue any remedy provided by law.
(d)
A utility shall maintain a list of contractors and subcontractors that have willfully falsified documentation or willfully misrepresented their qualifications or that are debarred from receiving future rebates or incentives and make that list available to their customers on their website.
(7)
(a)
The utility that offers the rebate or incentive pursuant to this section must establish periodic audits of the qualifying rebates that represent the highest two percent of rebates issued by dollar amount at least every three years to ensure that the contractors or subcontractors maintain compliance with this section.
(b)
If the audit determines that there were willful violations of this section, the utility may demand a full refund of the rebate or incentive with reasonable penalties and interest and may pursue any remedy provided by law.
Amended by 2023 Ch. 247,§ 8, eff. 1/1/2024, app. only to any energy sector public works project for which a public utility or cooperative electric association invitation for bids or proposals is issued on or after 1/1/2024.
Amended by 2023 Ch. 37, § 37, eff. 3/23/2023.
Added by 2021 Ch. 283, § 5, eff. 9/7/2021.
L. 2021: Entire section added, (SB 21-246), ch. 1677, p. 1677, § 5, effective September 7.
2023 Ch. 247, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
2021 Ch. 283, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
For the legislative declaration in SB 21-246, see section 1 of chapter 283, Session Laws of Colorado 2021.