Denver High-Performance Existing Buildings Program: A Compliance Guide for Building Owners

Understanding Denver’s Building Performance Standards

Denver has established the High-Performance Existing Buildings Program also known as "Energize Denver Building Performance Policy" to reduce greenhouse gas emissions, improve energy efficiency, and support the city’s transition to net-zero energy buildings. The ordinance mandates energy benchmarking, performance targets, and electrification requirements to help buildings reduce energy waste and lower carbon emissions.

For building owners, compliance with this policy is crucial to avoiding penalties, lowering operational costs, and maintaining long-term sustainability. This guide breaks down the key requirements, deadlines, and actionable steps for compliance.

Who Must Comply With Denver’s High-Performance Existing Buildings Program?

The ordinance applies to:

• Buildings 25,000 square feet and larger: These buildings must submit annual benchmarking data and meet specific energy efficiency targets.
• Buildings between 5,000 and 24,999 square feet: These buildings must implement either lighting upgrades or renewable energy installations by 2027.

Buildings under 5,000 square feet are not required to comply with performance standards but should consider energy efficiency improvements when replacing equipment.

Key Compliance Requirements For Denver’s Energy Ordinance

1. Annual Energy Benchmarking & Reporting

Building owners must track and report their annual energy consumption using the ENERGY STAR Portfolio Manager, a tool that provides insights into energy efficiency performance.

The benchmarking process includes:

• Collecting 12 months of energy data from utility providers.
• Entering data into ENERGY STAR Portfolio Manager to generate a building performance score.
• Submitting the benchmarking report to the City of Denver by June 1 each year.

2. Energy Performance Targets

Buildings over 25,000 square feet must meet specific energy performance targets, measured by Site Energy Use Intensity (EUI), by the following deadlines:

• 2024 Interim Target: Partial EUI reduction required.
• 2027 Interim Target: Further reduction in EUI.
• 2030 Final Target: Full compliance with net-zero goals.

Each building’s required EUI reduction depends on its current energy use and building type.

3. Electrification Requirements

To support the city’s carbon reduction goals, all buildings, regardless of size, must:

• Transition from natural gas to electric heating systems when replacing existing gas-fired equipment.
• Electrify space and water heating systems whenever feasible and cost-effective.

Denver encourages heat pump adoption and other electric alternatives to replace traditional gas-based systems.

4. Prescriptive Measures for Smaller Buildings (5,000 - 24,999 Sq. Ft.)

Buildings within this size range must implement at least one of the following by December 31, 2027:

• Lighting Upgrades: Install energy-efficient LED lighting.
• Renewable Energy Installation: Add solar panels or other renewable energy systems.

Compliance Deadlines and Penalties

• Annual Benchmarking Reports: Due June 1 each year for buildings 25,000 square feet and larger.
• 2024 Interim EUI Target: Must be met by December 31, 2024.
• 2027 Interim EUI Target: Must be met by December 31, 2027.
• 2030 Final EUI Target: Must be met by December 31, 2030.
• Lighting or Renewable Energy Upgrades (for smaller buildings): Must be completed by December 31, 2027.

Non-compliance can result in fines and enforcement actions from the City of Denver.

How to Achieve Compliance

1. Determine If Your Building is Covered

First, verify whether your property falls under the ordinance’s requirements based on square footage and building type.

2. Collect and Benchmark Energy Data

Gather 12 months of energy usage data from your utility providers and enter it into ENERGY STAR Portfolio Manager. This step provides insights into building performance trends and compliance status.

3. Conduct an Energy Audit and Implement Efficiency Upgrades

An energy audit helps identify the most effective upgrades to improve efficiency and reduce operating costs. Common efficiency measures include:

• HVAC system upgrades to high-efficiency models.
• Smart thermostats and automated HVAC controls to reduce energy waste.
• Building envelope improvements such as insulation and high-performance windows.

4. Develop an Electrification Strategy

Buildings should plan for gradual electrification by:

• Replacing gas heating systems with heat pumps.
• Upgrading water heating systems to electric models.
• Exploring electrification incentives and rebates to offset costs.

5. Submit Your Benchmarking Report On Time

Ensure your annual energy report is submitted before the June 1 deadline to maintain compliance.

Financial Incentives and Assistance Programs

Denver offers several programs to help building owners comply with the energy ordinance, including:

• Energy Efficiency Rebates: Utility rebates for lighting, HVAC, and insulation upgrades.
• Electrification Incentives: Financial support for heat pump installations and electric water heaters.
• PACE Financing: Low-interest financing for energy efficiency and renewable energy projects.
• Solar Incentives: State and federal tax credits for installing on-site solar panels.

Taking advantage of these programs can reduce compliance costs and improve long-term energy savings.

Why Compliance Matters for Building Owners

Complying with the High-Performance Existing Buildings Program benefits building owners by:

• Lowering Energy Costs: Energy-efficient upgrades help reduce monthly utility expenses.
• Increasing Property Value: Energy-efficient buildings attract higher-value tenants and buyers.
• Avoiding Penalties: Meeting deadlines prevents costly fines and enforcement actions.
• Supporting Sustainability Goals: Compliance contributes to Denver’s climate action plan.

Next Steps for Building Owners

If your building is subject to Denver’s High-Performance Existing Buildings Program, take these immediate steps to ensure compliance:

1. Confirm your building’s compliance requirements based on size and type.
2. Collect and benchmark energy data using ENERGY STAR Portfolio Manager.
3. Schedule an energy audit to identify efficiency improvements.
4. Develop a long-term electrification strategy.
5. Submit your annual benchmarking report by June 1.
6. Explore financial incentives for efficiency upgrades and electrification.

By staying ahead of compliance deadlines, you can improve building efficiency, reduce operational costs, and contribute to Denver’s sustainability goals.