By Jacque Martin, Reserve Advisors
Adopted in 2021, the Energize Denver Building Performance Policy underscores the city’s commitment to reducing greenhouse gas emissions by 30% in the next 5 years. The policy applies to multifamily buildings over 5,000 square feet, with stricter compliance requirements for those 25,000 square feet or larger. Applicable buildings must meet specific performance targets by 2030, or else apply for a timeline extension through Energize Denver.
Since 2018, such buildings have been required to conduct annual energy benchmarking. Using the city’s historical benchmarking data, the policy has established a goal for multifamily buildings to reduce and maintain an Energy Use Intensity (EUI) of 44.2 by 2030.
EUI measures a building’s energy consumption relative to its size and is calculated through annual benchmarking. If a building's EUI is above 44.2, it’s time to take action. It is critical for those that are at or slightly above the stated goal to continue to monitor their EUI as they must continue maintain an EUI of 44.2 or below.
Regulation Updates
The energy benchmarking deadline is being extended in 2025 to begin April 1st with the deadline occurring by September 1st. Additionally, properties must include third-party verification on energy benchmark reports either in 2025 or 2026. This will ensure the benchmarking data is accurate and your property is pursuing the correct action to meet the 2030 EUI target.
Prior to 2024, the policy had two interim compliance dates, years 2025 and 2027. Energize Denver is currently reviewing changes to defer the first interim compliance year to 2026 and remove the 2027 interim compliance. The intent of these changes is to provide greater flexibility with developing a path towards compliance while also ensuring accountability or progress towards the long-term goals of Energize Denver. While long-term goals are consistent across all buildings, interim target goals are unique to each building and are established by the city. You can find your building’s interim EUI goal as well as your current EUI at lookup.energizedenver.org.
Major additional proposed changes to the current policies include lower penalty rates, a new option for custom target adjustments, and a more robust appeals process. The city expects to finalize and adopt the updated rules by the end of March 2025.
What’s Next?
While many modern buildings and recent conversions are more energy efficient than older buildings with dated infrastructure, they are not exempt from meeting the 2026 interim compliance goal and the 2030 target goal. If your EUI is above the target threshold, action is necessary to avoid non-compliance. The following steps can ensure your building is on the right path forward.
Step 1: Consider an energy audit
The most common audits are the ASHRAE Level I and Level II energy audits, both which focus on key building systems including HVAC, building envelopes, lighting, water heating efficiency, and more. A Level I audit is the least extensive, providing a walk-through assessment of the building and identifying potential energy-saving opportunities with general cost savings. A Level II audit is more comprehensive and identifies specific cost-effective energy-saving measures and associated ROIs.
These services provide qualitative and quantitative energy saving measures so building stakeholders can make the most informed decisions when evaluating which energy improvement to undertake. A building near the EUI threshold may find a level I audit sufficient. However, buildings that require significant improvements in EUI by 2030 will benefit most from a level II audit. The goal is to identify the most impactful areas for energy savings and long-term improvements.
Step 2: Develop an implementation plan
Boards should prioritize upgrades based on their ability to lower the building’s EUI score and meet both the 2026 interim goal and the 2030 compliance target. With an audit in hand, it is essential to include your reserve study consultant in future collaboration with your energy consultant as this team of professionals is critical to building a sound strategic plan.
Working with your reserve study provider, energy improvements can be coordinated with planned maintenance or system upgrades. This is a cost-effective way to improve your buildings’ overall energy performance. Your reserve study and subsequent updates can help identify areas where future upgrades should be considered and budgeted for through reserves.
For example, a building’s 15-year-old boiler may be functioning fine and have a remaining useful life of eight- to ten-years, but the energy audit may find that it is highly advantageous to replace the boiler with a modern, more efficient system in the next one- to two-years to meet energy compliance. In this case, the reserve study would evaluate the decision to move replacement timing up prior to end of the functional useful life. Thus, the building will meet energy compliance targets while also ensuring long-term financial stability for the property.
Step 3: Communication with Unit Owners
Keep unit owners informed and engaged throughout the process. Regular updates on energy performance, planned improvements, financial implications, and progress toward compliance goals will help maintain transparency and support for the project overall.
A Look Ahead
Although the 2026 and 2030 deadlines may seem far off, making energy-efficient upgrades requires time for planning, implementation, and financing. By taking action now, your community can spread costs over time, leverage its capital reserve study plan, benefit from current incentives, and see energy cost savings sooner rather than later. Most importantly, you’ll position your property for long-term value in an increasingly energy-conscious market. Stay up to date with the latest information by visiting energizedenver.org.
Authored by: Jacque Martin
Founded in 1991, Reserve Advisors specializes in capital planning solutions for community associations across the United States. The firm has partnered with over 19,000 community associations to help them understand the true cost of property ownership through its comprehensive reserve study, energy benchmarking, and energy auditing services.
