Mayor Mike Johnston and Denver’s Office of Climate Action, Sustainability and Resiliency (CASR) have announced improvements to make it more practical for businesses to reduce energy use and pollution as part of Energize Denver.
Approved by Denver City Council in November 2021, Energize Denver sets unique energy reduction targets for buildings 25,000 square feet and larger as part of Denver’s goal to eliminate emissions and reduce pollution by 2040. After six months of engagement with more than 2,000 business owners and property managers, the city is extending compliance deadlines, decreasing penalties, and offering more support for businesses as they work to meet their energy reduction targets.
“Denver is showing how a major city can craft policies that are both business-friendly and climate-friendly,” said Mayor Mike Johnston. “I’m thankful for everyone who shared feedback these past several months as we work to improve Energize Denver and build a stronger and more sustainable city.”
In response to feedback, this city is making the following updates to Energize Denver to support buildings with a more practical, achievable compliance process:
- Extended Timelines: Deadlines for interim compliance are now extended from 2025 to 2028, with final compliance deadlines moved from 2030 to 2032. Building owners may also apply for extensions beyond 2032. This gives buildings more time to plan, budget, and implement energy efficiency improvements.
- Lower Penalties: The focus of this program is on energy efficiency, not penalties—penalties have been cut in half, none have been issued to date, and none will be assessed until 2029.
- Expanded Financial Support: New rebates will make energy audits more affordable and create more energy management training opportunities for staff. The Energize Denver Help Desk also now offers improved navigation of additional financial relief opportunities.
- Clearer Compliance Steps: Improved guidance and communication between the city and building owners to ensure they have the support they need to meet compliance requirements.
- More Resources & Collaboration: Additional tools and transparent compliance guidance will help buildings successfully implement improvements and achieve their energy reduction targets.
“Our goal is to work alongside Denver’s building owners, property managers, and service providers to make reducing energy use practical, more affordable, and better aligned with each unique building,” said Elizabeth Babcock, executive director of CASR. “We’ve increased the options available to buildings to help put compliance within reach – and strengthen Denver’s commitment to climate and economic resiliency. Denverites support climate action, and with these changes, we’ll ensure that Denver will continue making progress on our climate goals.”
Buildings are the largest source of carbon pollution in Denver. One of Denver’s most impactful opportunities to create cleaner air and cut greenhouse gas emissions is to ensure that buildings are reducing energy use through operations and equipment improvements. Denver is one of the first cities in the United States to adopt a building performance policy, and today, 28% of the city’s large buildings already meet their energy reduction targets.
“In this challenging market, it’s critical that we work together to find solutions that keep Denver competitive today and in the future. I want to thank the Mayor and the city’s Energize Denver staff for continuously working with DMCAR, listening to our members’ challenges, and collaborating with us to make this a more realistic, manageable program that puts energy and cost savings at the forefront of this work. It is this sort of connectedness moving forward that will bring about successful outcomes for all.” – Katie Kruger, CEO, Denver Metro Commercial Association of Realtors.
The city has posted proposed rules and regulations for final public comment and set the adoption virtual hearing for April 1. Building owners, property managers and service providers can find the proposed rules changes and support at the Energize Denver Hub.
CLICK HERE to sign up for a virtual briefing on the changes on March 14, 2025, at noon MT.
