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Requirements for Tenant Utility Billing

Concerning the billing of utility service for tenant utility bills.

HB26-1284 2026 Regular Session Postponed Indefinitely Energy Housing

Cost estimates

At the first note read
$0
FACT March 2, 2026
At the last note read
$0
FACT June 8, 2026
What it actually cost
not published
No Colorado source reports spending for one bill

Every figure here is an estimate by Legislative Council Staff on the date shown, about the version of the bill in front of them that day. It is not a cost.

The appropriation

The note states no appropriation is required.

An appropriation is money the legislature sets aside. It is not money spent.

The appropriation field, read from the note: No appropriation was required.

Bill summary

The bill establishes requirements for landlords, unit owners, and associations governing common interest communities (association) for billing a tenant for utility service. A landlord, a unit owner, or an association may individually bill a tenant using a submeter or bill a tenant through a ratio utility billing system, which is a system that allocates utility service costs among individual tenants based on a unit's square footage, occupancy, or other physical characteristics.

Starting on January 1, 2027, all new residential construction must install individual submeters for each individual unit to measure water consumption for each unit. A tenant's utility bill for water utility service must be calculated based on the individual submeter reading.

For existing residential properties and other types of utility service other than water service, the landlord, unit owner, or association may use a ratio utility billing system if they meet certain requirements.

A landlord, a unit owner, or an association shall disclose to a tenant in the tenant's rental agreement the method by which the tenant's utility bills will be calculated. If a landlord, a unit owner, or an association uses a ratio utility billing system, they must deduct at least 10% of the total utility service bill before allocating individual costs to tenants in order to account for utility service to common areas of a residential premises.

If a landlord, a unit owner, or an association is found in violation of the provisions of the bill, the aggrieved tenant may file a civil action in court and, if the tenant prevails, recover actual damages from utility bill overages, additional damages in an amount not to exceed 25% of the utility bill overages, and any attorney fees or court costs.

FACT Bill summary by Colorado Legislative Council Staff, read 2026-09-23. Printed as published, word for word. Source: leg.colorado.gov (opens in a new tab)