In the new Denver case, the plaintiffs are attacking the building codes that have been created under the Energize Denver program that specifically prohibit the installation or replacement of natural gas fired appliances including space heating and hot water heaters in both new construction and when replacement of existing equipment at the end of its useful life.

Read more here.

One of five buildings already meet the city’s 2030 Energize Denver goals. Early results have shown that Denver’s large buildings are using less energy per square foot since 2021, adding value for Denver’s buildings while cutting the pollution equivalent of more than 58,000 cars on the road for a year.

Read more here.

Thanks to the support leveraged by Energy Outreach Colorado, more than 400 residents at Kavod Senior Life received new LED lights in their apartments during the first quarter of 2024, moving Kavod towards the goal of achieving its Energize Denver performance requirements with minimal impact to Kavod’s overall budget.

Kavod reaped a wealth of other benefits, including:

$190,574 of lighting upgrade funding

2,741 total LED light fixtures replaced

397 apartments impacted

Only 7% of project expenses paid by Kavod

Future annual energy savings of $10,000 and 93,914kWh per year forecasted

Read more here.

Apartments owners have filed a lawsuit in Denver District Court to stop Colorado’s mandate to reduce energy consumption for large buildings. The owners, along with a trade organization representing more than 3,600 members who own and manage more than 350,000 apartments, argue that the Colorado Air Pollution Control Division delayed release of the proposed "Building Benchmarking and Performance Standards" rule by two years — and then rushed to pass the regulation beginning in February 2023. In doing so, the state denied the public and building owners meaningful opportunity to participate in the rule making process, the lawsuit said.

Read more here.

Denver is offering carrots and sticks — very big sticks — in its efforts to cut carbon emissions and electrify buildings larger than 25,000 square. The fine can be as much as $0.70 per kBtu — a measure of heat — per year over an energy-savings target set by the city. For a 150,000 square-foot office building that overshoots its energy savings goal by 9.5 million kBtu by 2030, the owner could face a cumulative penalty of more than $2.8 million, according to documents outlining penalties from the Denver’s Office of Climate Action, Sustainability and Resiliency. Read more here.

Denver’s Office of Climate Action, Sustainability & Resiliency was funded through a local sales tax increase that Denver voters passed in 2020. Three years ago, Liz Babcock helped create the office. Now, Denver Mayor Mike Johnston has appointed her to lead it. Read more here.

Although Regulation 28 offers some flexibility and leniency for affordable housing, market-rate apartment buildings will be saddled with increased costs that landlords will likely pass on to tenants through higher rents, according to CREA. This could inflame an already difficult affordability problem in the state. Similar concerns have been raised about Energize Denver.

Moreover, office landlords are already suffering in a post-COVID environment as tenants downsize or abandon properties altogether. This added strain could be enough to push many buildings into foreclosure. Finally, many buildings may find it difficult to comply with Energize Denver and Regulation 28 due to the specific uses in the building, the age of the building, unique building characteristics and a general shortage in skilled trades. For example, hospitals are among the most energy-intensive uses, and they will have to implement extraordinary renovations and upgrades to comply with the coming EUI performance targets. And even if all 8,000 building owners promptly move forward with implementation, it would require that about 1,200 buildings per year (e.g., 95 buildings per month, 22 per week or three per day) be modified before 2030 when there may not be enough contractors and laborers to perform the work.

Read more here and in the fact sheet here from the Colorado Real Estate Alliance (CREA)

Property managers are uniquely positioned to bridge the gap between the ordinance’s requirements and the owner’s understanding and compliance. This role involves extensive communication and education. Managers must present clear, concise information on the legal requirements, timelines, and the work needed to meet these demands. Read more here.

Electrification can potentially add millions of dollars to a buildings capital expenditure plan to replace boiler/chiller systems with air or ground source heat pumps. Being the owner caught between this mandate is going to be rough without an effective financing mechanism to fund the additional costs and spread the burden over the lifespan of the systems themselves. Read more here.

Starting on Jan 1, 2024, gas furnaces and water heaters will not be allowed in new commercial and multifamily construction. In 2025, the city will no longer issue permits for certain types of gas heating and cooling systems for existing commercial and multifamily buildings. And, after 2027, the city will no longer issue permits for any gas heating and cooling equipment in commercial buildings. Read more here.