Building Energy Compliance Requirements are Coming Quickly – Get Ready! (Denver Edition)

You may have heard that there are laws all over the country requiring commercial buildings to reduce energy use to meet energy performance standards. Lack of compliance means substantial fines in some areas; you need to start work now. To make it more complicated, the law is different in each municipality.

NPC’s energy team can help and will be publishing a brief summary the requirement in each City and State to let you know what’s coming. Reach out if we can help!

Requirements of the Energize Denver Program:

• Energy Use Intensity (EUI) of 62.1 kBTU/sf by 2030 (adjustments available)
• Interim EUI reduction targets in 2024 and 2027.
• Fines for not meeting interim and final EUI targets, which for some buildings can be in the $$millions!

If you need more time, there is an option to submit an Alternative Compliance Pathway plan that can push the interim targets and reduce the associated fines and penalty rates. 

Application deadlines and fines are shown below:

Here’s an example of the fine calculation for a 200,000sf building:

• 2024 EUI = 80 kBTU/sf
• Target EUI = 62.1 kBTU/sf
• Fine for not meeting target:
• 80-62.1 = 17.9 kBTU/sf not achieved
• 17.9 kBTU/sf * $0.50/kBTU * 200,000sf = $1,790,000

There is still time to prepare a plan by the 12/31/24 deadline. Next Steps:

• Perform a ASHRAE Level II Energy Audit.
• Apply for goal target adjustment.
• Select Alternative Compliance Pathway and prepare plan with supporting documentation.
• Prepare the Alternative Compliance Pathway plan, which includes an electrification study and options to achieve targets.
• Submit the plan to the City for acceptance.
• Implement the plan