Client Alert - Energize Denver Building Performance Requirements

As you may be aware, the Energize Denver Performance Requirements were passed by Denver City Council back in November 2021 based on recommendations from the Energize Denver Task Force. Among other things, the new ordinance establishes energy use intensity (EUI) targets for commercial and multifamily buildings 25,000 square feet and larger, prescriptive measures for buildings 5,000-25,000 square feet, and electrification requirements for all buildings. Incentives are being developed along with alternative compliance options to help everyone meet the 2024, 2027, and 2030 targets. 
Importantly, by June 1 of each year all buildings in Denver at or over 25,000 square feet are required to assess and report their energy performance using the ENERGY STAR Portfolio Manager tool. What can you do right now?

  1. Check to make sure you are in compliance with 2021 requirements. This reporting requirement is not new, but other portions of the regulation are. If you’ve benchmarked before, you can see new information here. If you are benchmarking for the first time, you can find information here.
  2. If you have not done so before, set up an account with ENERGY STAR Portfolio Management Tool.
  3. Evaluate where you are and begin planning to reduce emissions. You can learn more about reducing emissions through The Colorado Forum’s Building Change Handbook, which Moye White co-authored. 

Finally, you may be exempt from this reporting requirement if

  • The building was not occupied and did not have a certificate of occupancy or temporary certificate of occupancy for all twelve (12) months of the calendar year for which benchmarking is required.
  • The building was not occupied, due to renovation, for all twelve (12) months of the calendar year for which benchmarking is required.
  • A demolition permit has been issued for the entire building, and demolition work has commenced on or before the date the benchmarking report is due.
  • The building is presently experiencing qualifying financial distress, as defined by any of the following: (1) the building is the subject of a qualified tax lien sale or public auction due to property tax arrearages; (2) the building is controlled by a court appointed receiver; or (3) the building has been acquired by a deed in lieu of foreclosure.
  • The building is used primarily for manufacturing or agricultural processes. This exclusion only applies if the manufacturing or agricultural process uses significant energy. Distribution centers and warehouses are benchmarkable space types that DO NOT qualify for this exemption. To qualify for this exemption, please explain below what sort of industrial or agricultural process is happening in the building and state if that process uses electricity or natural gas.

 If you believe you are exempt, you still must fill out the exemption form.

Please note that we have been made aware that the City has already begun sending notices regarding reporting and compliance. If you receive these notices, the Moye White team is happy to provide assistance and guidance to navigate the new local and state requirements. Specifically, we have expertise in:

  1. creating an energy baseline, 
  2. what the new benchmark requirements mean, 
  3. what the new electrification requirements mean and how to achieve them, 
  4. options for financing improvements, 
  5. integration of on-site solar or off-site solar into your building or energy plans,
  6. compliance with and navigation of Denver’s Green Building Ordinance, and
  7. best practices for energy efficiency retrofits. 

The Moye White team is closely monitoring developments here and will continue to provide updates as the City of Denver puts out further regulations and requirements.

We look forward to continuing to work with you,

Moye White Real Estate Team