When we think about the energy used by a home or business, we probably picture furnaces, water heaters, appliances and lights. But what about the energy used outside the building?
Across our region, local governments are taking a closer look at that question through a regulation called an Exterior Energy Offset Program, or EEOP.
An EEOP addresses the energy use and greenhouse gas emissions associated with heated outdoor amenities at residential and commercial properties. These can include snowmelt systems for sidewalks, walkways and driveways; pools and spas; heat tape; and outdoor gas fireplaces.
Today, four communities in the valley have adopted EEOPs: Eagle County and the towns of Avon, Eagle and Minturn.
An idea that started next door
The idea isn’t entirely new. In fact, our neighbors to the southwest have been experimenting with it for more than 25 years.
In 2000, Aspen and Pitkin County became the first local governments to adopt this type of policy. They created the Renewable Energy Mitigation Program, or REMP, to address the energy and carbon impacts of exterior energy uses in the Roaring Fork Valley.
Since its creation, REMP has reinvested millions of dollars into the local economy to support grants and rebates that reduce carbon emissions through energy efficiency and electrification upgrades. The program has also helped fund solar installations on schools and government buildings and supported jobs for contractors and other clean energy professionals. Aspen and Pitkin County work with the local nonprofit Community Office for Resource Efficiency, or CORE, to administer the funding.
The success of this approach helped inspire other mountain communities to develop similar policies.
Why regulate energy use outside the building?
Local governments adopt building energy codes to improve the efficiency and resiliency of homes and buildings. Energy codes are designed so buildings use less energy and water, effectively lowering operating costs. They also improve a building’s resiliency, allowing people to stay safe and comfortable in the face of extreme weather or power outages.
However, exterior energy systems are generally not covered by traditional building energy codes. That can leave a significant gap, particularly when you know that building energy use is one of the largest sources of greenhouse gas emissions.
Snowmelt systems, for example, use an extraordinary amount of energy. On a square-foot basis, they can consume roughly twice as much energy as the average home. In extreme cases, a snowmelt system can use as much energy as the rest of the home.
That energy use comes with a climate cost, particularly when the system is powered by fossil fuels and contributes to local air pollution.
How does an EEOP work?
The basic idea is simple: if a project creates a significant new exterior energy demand, it should also take responsibility for reducing or offsetting the impact.
The primary objective of these programs is to encourage projects with exterior energy systems to eliminate or reduce their energy source emissions through better design. The next best option is to offset some of their other energy use through on-site renewable energy or other eligible measures, such as heat pumps or battery storage. If those options aren’t feasible, a building owner or developer can pay a one-time fee-in-lieu based on the cost of installing an equivalent renewable energy system.
EEOP thresholds are tiered, meaning small systems or projects with minimal energy loads may be exempt, while larger, higher-impact projects carry a greater responsibility. An EEOP calculator is the primary tool that project developers use to determine their compliance pathway.
The goal isn’t to prevent people from having heated outdoor spaces. Rather, it’s to make sure the energy and climate impacts of those amenities are considered when they are designed and built.
There’s an important distinction when it comes to exterior energy systems: what powers the system matters. Many exterior amenities rely on natural gas. Installing solar panels doesn’t eliminate the greenhouse gas emissions produced by burning natural gas in an outdoor fireplace, pool heater or other system. The impacts of these outdoor amenities also extend beyond an individual property. Greenhouse gas emissions contribute to climate change, while energy-intensive systems can increase demand on shared energy infrastructure.
EEOP regulations recognize that these impacts have a societal cost, and seek to put some of that cost back into solutions that benefit the community. One of the most important features of EEOP is that 100% of the fees collected stay local and are reinvested in the community. EEOP revenue helps fund energy efficiency and electrification projects, including weatherization assistance and energy-efficiency upgrades for income-qualified households.
For example, in 2024, Eagle County’s EEOP reduced 528 tons of greenhouse gases, equal to annual electricity use emissions of 110 homes, weatherized and electrified 33 homes, and provided 196 rebates for energy improvements. These programs directly support lowering energy use and utility costs for homes and businesses.
Looking beyond the obvious
Heated driveways, snowmelt systems on decks, and outdoor fireplaces may seem small compared with the energy used by a large industrial plant. But collectively, the energy impacts of these outdoor amenities add up and they represent an opportunity to rethink how we design and power our homes and businesses. EEOPs are just one tool that our communities are using to address an overlooked source of energy use while working to make our community more resilient and to achieve our ambitious climate goals.
Kim Burke is the Director of Climate Strategy for the Climate Action Collaborative with Walking Mountains. The Climate Action Collaborative is working to reduce greenhouse gas emissions in Eagle County 50% by 2030 and 80% by 2050.
