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Boulder taxpayers have supported the city’s climate work for decades, contributing about $4 million annually to climate and sustainability programs. Early next year, a portion of this funding is set to expire, creating a gap in funding.
To close this gap, the city is proposing the creation of a new climate tax. As designed, the new climate tax would raise approximately $6.5 million per year to fund climate and resilience efforts. If approved by council, the climate tax would require voter approval in the November election.
Boulder taxpayers have supported the city’s climate work for decades, contributing about $4 million annually to climate and sustainability programs. Early next year, a portion of this funding is set to expire, creating a gap in funding.
To close this gap, the city is proposing the creation of a new climate tax. As designed, the new climate tax would raise approximately $6.5 million per year to fund climate and resilience efforts. If approved by council, the climate tax would require voter approval in the November election.
Funding Proposal: New Climate Tax
By creating a new climate tax, the city can simplify climate investments, tackle high-impact projects, better align with the scale of investment necessary and address inequities created by the current tax.
Tax Proposal Details
Note: Details subject to City Council changes.
New climate tax to be collected 2023 to 2040
Replace existing taxes that fund climate work
Fund climate and wildfire resilience projects
Continue to collect tax on Xcel Energy utility bills
Raise revenues by approximately 6.5 million per year
Change rates for customer classes
Proposed Changes to Average Annual Costs, By Customer Type
Customer Type
Current Annual Cost (CAP + UOT)
Proposed Annual Cost (Climate Tax)
Residential
$42.95
$49.66
Commercial
$292.42
$487.37
Industrial
$1,084.11
$1,806.85
Total Revenue for Climate Efforts
$3.9 million
$6.5 million
What would it fund?
If approved, revenues from this tax would support ongoing and new climate and resilience projects. Those could include:
Direct cash assistance to homeowners, landlords and businesses to fund energy efficiency upgrades
Projects such as microgrids and energy storage to support resilience and renewable energy development
Residential and commercial building electrification
Expansion of transportation electrification projects and electric vehicle charging stations; and
Advancement of natural climate solutions.
Wildfire resilience projects could include:
Funding for a dedicated fire risk assessment team;
Grants to support residential wildfire risk prevention measures like vegetation management, fence reconstruction and roofing/siding replacement;
