State awards Vail a $1.78 million tax credit for new geothermal system
Project will install a bore field near the library and will use waste heat from Dobson Arena
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The town of Vail has been awarded a $1.78 million geothermal energy tax credit from the Colorado Energy Office to be used for a geothermal energy project at the Vail Public Library.
The project is a key part of a long-term geothermal vision that is aiming to reduce town-wide emissions by more than 10,000 metric tons annually. The system at the Vail Library will connect the library to a geothermal bore field and to the waste-heat loop at Dobson Ice Arena, the first part of a three-phase plan to meet the town’s goal of 80% emission reductions by 2050.
The $1.78 million geothermal energy tax credit will offset some of the project’s estimated $6 million cost, an expense the town council approved in November.
“Kudos to the state for stepping up,” Council Member Kevin Foley said on Tuesday.
Under the project plan, a bore field will be installed adjacent to the library. The library will receive an HVAC retrofit, including heat pumps, new controls and associated equipment, allowing it to heat and cool the building using geothermal energy. A new electrical switchgear will also be installed to accommodate increased electrical demand.
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The nearby Dobson Ice Arena will contribute excess waste heat from its operations to help supplement the system, and an underground connection will link the arena and library to share thermal energy.
The project’s stated objective is to demonstrate how multiple buildings can be served by a shared thermal energy network, reducing reliance on traditional natural gas and electric heating systems.
The GETCO tax credit reservation applies to qualified expenditures made during the credit period, which runs from the agreement’s effective date through Dec. 31, 2027. The project scope is expected to be completed by fall 2027.
As part of the intergovernmental agreement, the town must comply with detailed reporting and auditing requirements set by the Colorado Energy Office. Those include a kickoff meeting within 45 days of the agreement’s execution; mid-year development progress reports during each eligible tax year; annual tax credit cost certificate requests, audited by a Colorado-licensed certified public accountant; a final project completion report, and up to four years of post-completion performance reporting documenting continued operation and greenhouse gas reductions.
State officials may also conduct site visits before, during or after installation to verify compliance and performance.
Construction and installation of the thermal energy network must be completed by Dec. 31, 2027, under the agreement’s terms.
