Inflation Reduction Act Boosts Energy Efficiency Efforts in Colorado’s Huerfano County

Named for local landmark, Huerfano Butte, Huerfano County is one of Colorado’s original counties — founded in 1861 — known as “Spanish Peaks Country.” The starting point of 82 miles of scenic byway, known as the Highway of Legends, Huerfano County in Walsenburg is the historical and natural gem of southern Colorado.  

For many rural municipalities like Huerfano, the hearts of their communities reside in the local and historical infrastructure — from community centers and recreational spaces to courthouses and religious buildings. By prioritizing the revitalization of these impactful spaces through energy efficiency projects, municipalities not only build resiliency and ensure longevity, but their investment also demonstrates purposeful community stewardship. 

When partnering with McKinstry on this critical revitalization project — executed through an Energy Savings Performance Contract (ESPC) — the county hoped to utilize energy savings, grants and stimulus dollars to improve aging buildings, develop its renewable energy portfolio, reduce maintenance challenges and decrease county-wide utility costs.  

The project began in 2021 with an investment grade audit (IGA). The IGA results indicated a need for a combination of capital-intense improvements, safety measures and energy efficiency conservation measures including LED lighting upgrades, solar installation, controls optimization, plus mechanical retrofits and refurbishment that would yield big annual savings. 

In addition to the ESPC delivery method, the county collaborated with McKinstry on an innovative financing strategy including:  

• $750,000 Colorado Department of Local Affairs’ (DOLA) Energy and Mineral Impact Assistance Program Grant (EIAF)  

• US Department of Agriculture financing at 0% over 10 years 

• One-time utility rebates on specific scope within the project  

• Anticipated 30% – 40% IRA investment tax credit direct payment 

The ESPC allowed the county to retrofit 21 lighting sites, install 212 solar panels across four rooftops and improve water conservation through mechanical retrofits that will save more than 430,000 gallons of water annually. The county stands to save $56,000 in utilities thanks to the energy-efficient measures that will decrease use by 26%. The historic Inflation Reduction Act (IRA) also contributed in meaningful ways to Huerfano County and the local southern Colorado clean energy economy.  

Since its enactment in 2022, McKinstry has led the industry in understanding and utilization of IRA programming on behalf of our clients and communities. In addition to the anticipated 30% investment tax credit (ITC), Huerfano has been awarded the highly competitive low-income bonus, adding an additional 10% to the county’s baseline credit for a total 40% ITC. The county is anticipated to receive approximately $130,000 for its solar investment. 

In July 2024 the county and its partners, including McKinstry, celebrated the completion of this project with a ribbon cutting at the local community center.  

“This celebration marks the end of a major undertaking by the county,” said Carl Young, Huerfano County administrator. “We’ve made strides toward preparing for the future — and saving county residents money – through these projects, which were created without using taxpayer dollars. We believe these projects set the county ahead of the rest of the state in terms of resilience and conservation of our natural resources, which is always a goal here in Huerfano County.” 

Looking ahead, McKinstry is proud to continue our trusted partnership with the county through two unique projects including the renovation and expansion of a vacated hospital to an emergency dispatch space; McKinstry’s first architectural remodel project in the state. With the county’s resiliency and facilities preservation goals top of mind, the second project will include the restoration and electrification of the historic Fox Theater, a local landmark since 1917. The new Fox Theater will boast upgraded stage lighting, interior upgrades and a new electrified HVAC system. Construction for these two projects is scheduled to begin in late 2024.  

McKinstry is proud to partner with Huerfano County, an exemplar of purposeful community stewardship in southern Colorado, demonstrating what is possible when municipalities work strategically to combat the climate crisis and improve resident and visitor experience.