Energize Denver - Denver Building Performance Standard
One of the jurisdictions that has passed a Building Performance Standard (BPS) policy is the City and County of Denver, Colorado. This policy, called Energize Denver, is overseen by the City and County of Denver’s Office of Climate Action, Sustainability and Resiliency (CASR) and enables them to set energy use intensity (EUI) targets. Energize Denver has required benchmarking since 2016 and now requires energy performance targets (EUI targets) to be met beginning with the 2024 interim target.
What is the goal of the BPS Policy?
Denver states the impact of the Energize Denver will reduce greenhouse gas emissions, lower energy bills, and improve indoor air quality and comfort for building users. The City and County of Denver’s Climate Action Plan commits to an 80% reduction in greenhouse gas emissions by 2050 from a 2005 baseline. The Energize Denver policy aims for net zero energy by 2040 which will save 13.7 million metric tons of CO2 by 2040.
Who is affected by this policy?
This policy applies to commercial and multifamily buildings and has two targets: The first target is for Commercial buildings, which includes Multifamily, that are 25,000 square feet and larger. The second target has slightly different requirements for commercial and multifamily buildings 5,000-24,999 square feet. We will break down the two requirements separately.
Small Building Performance requirements
Buildings 5,000-24,999 square feet must perform one of the following options:
Lighting Upgrade - install at least 90% LEDs
Solar Installation or Purchase - enough to meet 20% of the building’s annual energy usage
It is important to consider that these requirements are related to the entire building which includes within the unit, not just the Owner Paid, common area.
What are the requirements for buildings that are 25,000+ square feet?
There are two parts of complying with the policy: benchmarking and performance. Both are required for each building and have separate penalties associated with them for noncompliance. Benchmarking refers to reporting while performance refers to your building’s energy usage compared to the limits set by the policy.
Benchmarking
Buildings 25,000 square feet and above are required to benchmark using Energy Star Portfolio Manager (ESPM) annually by June 1st.
Data verification by a third party is also required for benchmarking reports in the years 2024, 2027, and 2030. Third party verifiers must be qualified under the guidelines of the policy.
Performance
Buildings 25,000 square feet or more must meet energy performance targets for calendar years 2025, 2027, and 2030.
Performance targets are measured using weather normalized site energy use intensity (EUI). Weather normalized refers to energy your building would use under average conditions to take into account a year that may have been colder or hotter than usual (and you used more energy for heating and cooling). EUI is the amount of heat and electricity consumed by buildings based on utility bills divided by gross square footage.
Penalties
There are penalties for benchmarking, target non-compliance, and maintenance non-compliance.
Benchmarking Penalty: Failure to benchmark, failure to correct errors, and withholding or inaccurate information results in an annual $2,000 fine. For example, if the Gross Floor Area you use in your benchmark does not match that in the tax record, this is a trigger for non compliance. The property will be given a window in which to resolve the issue and unless the penalty will be issued.
Target Penalty: If your building did not reach the 2024 EUI interim target, 2027 EUI interim target, or 2030 EUI target, you will be penalized $0.30/kBtu in excess.
Maintenance Penalty: Buildings that do not meet the 2030 target for years 2031 and then on will be switched to maintenance penalties of $0.05/kBtu in exceedance.
Are there exemptions?
Exemptions and alternative compliance options must be applied for with proper documentation and reasoning. They must be approved CASR otherwise the bundling is subject to the original standards and policy.
Is data publicized?
Basic information may be made public such as property name, Energy Star Score, etc., but no identifiable information is included. Data is available on the Benchmarking Map and the Open data catalog.
Currently there are over 10K multifamily sites that would need to participate in this BPS program.
How do I fund my upgrades?
The Energize Denver program provides resources for building owners, including help desks, case studies, webinars, funding, and more. Denver Climate Action and other partner organizations support incentives, rebates, and other funding to help you implement building upgrades.
Denver’s Energize Denver BPS policy aims to reduce carbon emissions, lower energy bills, and increase resident comfort. Staying in compliance with this policy for both benchmarking and performance is essential for avoiding unnecessary monetary fines that could impact the overall NOI of the property.
GreenT Climate Software provides a streamlined solution to help you stay current on compliance requirements and manage risk. For more information, please contact us.