What are the Energize Denver Performance Requirements for buildings 25,000 square feet and larger?
Buildings 25,000 square feet and larger must meet long-term energy performance targets by 2030. A performance target has been set for each building type. Every individual building will have its own trajectory to achieve the target for its building type, with binding 2024 and 2027 interim targets. Energy performance targets are Weather Normalized Site Energy Use Intensity (EUI) targets specific to different building types (e.g., multi-family housing, office, hotel, medical office, retail store, etc.).
Do I need to comply with both the Performance Requirements and the Green Buildings Ordinance?
Yes, buildings over 25,000 square feet are required to comply with both ordinances. Energize Denver Performance Requirements are ongoing performance requirements for existing buildings. The Green Building Ordinance is triggered by roof replacement, at which time buildings have a number of options to comply. Please visit the Green Buildings Ordinance site for more information.
When does a new building become an existing building?
After the building is constructed and has been in operation for 12 months in one calendar year (e.g., a building that received its certificate of occupancy in June 2022 would become an existing building, and would have to submit its first benchmarking report by June 1, 2024).
Are new buildings required to comply with the Energize Denver requirements?
Once a new building becomes an existing building, it will be required to comply with the Energize Denver requirements. New buildings coming in under Denver's current building code should easily be performing at or below the target EUI because Denver’s building code is designed to at least meet the 2030 targets.
How do I comply with the Performance Requirements?
Owners of buildings 25,000 square feet and larger will demonstrate compliance with the energy performance targets by continuing to submit their annual Energize Denver Benchmarking Report. The submission reports the building’s annual energy performance and will be used to verify that interim and final energy performance targets are met. Building owners do not need to submit additional documentation to show compliance.
Building owners will need to monitor their energy performance to ensure they are on track to meet their interim and final energy performance targets and take necessary actions to improve their energy performance. Buildings must be performing at or below their interim target EUIs in each interim target year (i.e., 2024 and 2027) and maintain performance each year until the next target is due. Below is a sample timeline of the compliance process.
15% of buildings in Denver already perform better than the final targets so these high performers will only have to maintain their current performance and continue to submit annual benchmarking reports to comply with the Energize Denver ordinance.
What is the energy performance target for my building?
CASR published final 2030 site energy use intensity (EUI) targets by building types as part of the rulemaking that was finalized in the public hearing on January 13, 2021. CASR will set interim targets for each building and notify building owners by mail and email in March 2022.
15% of buildings in Denver already perform better than the final targets, so these high performers will only have to maintain their current performance and continue to submit annual benchmarking reports to comply with the Energize Denver ordinance.
What is Energy Use Intensity (EUI)?
Energy Use Intensity is a measure of your building’s total energy usage, measured in kBtu, divided by its square footage. It is a standard metric that enables a comparison of different sized buildings. The more energy efficient a building is, the lower its EUI will be. For example, an office building with an EUI of 35 performs better and is more efficient than an office building with an EUI of 90.
The energy performance targets were created using Weather Normalized site EUI measurements, meaning energy use is measured as energy consumption on-site, during 30-year average weather conditions. A building’s EUI will be calculated and displayed in the building owner’s ENERGY STAR® Portfolio Manager® Account, which is the platform used to submit the annual Energize Denver benchmarking report.
The following image visually demonstrates how EUI is calculated:
How were the energy performance targets determined?
CASR conducted an analysis of all benchmarked buildings in Denver and reviewed national EUI data available through the 2012 Commercial Building Energy Consumption Survey (CBECS) to determine a list of building types and target EUIs for each building type in the City.
For 30% energy savings to be achieved across all large buildings in the City, all large buildings in the City must perform at the same efficiency as the 15th percentile performer. The 15th percentile performer means that 85% buildings in that building type use more energy per square foot.
For building types with 25 or more buildings in the 2019 Denver Benchmarking data set, the EUI target was set based on the 15th percentile weather normalized EUI for that building type.
For building types with fewer than 25 buildings in the Denver Benchmarking data set, 2012 CBECS data was utilized to determine the target EUI. To set the target EUI for these buildings, a 30% savings rate was applied to the regionally adjusted 2012 CBECS Median EUI for each building type.
For a more in-depth explanation, review the Building Typology and EUI Targets methodology(PDF, 327KB).
How were the baseline and interim targets established?
CASR has calculated baseline EUIs for each covered building based on 2019 benchmarking data. Notices will be sent out in March. CASR will establish interim targets for 2024 and 2027 by drawing a straight line from a building’s 2019 baseline EUI to the final 2030 EUI target for that building type. This ensures that the EUI reduction between each target is gradual. For example, if your baseline EUI is 100 and your final target EUI is 48, you need to reduce your building’s EUI by a total of 52 (or 52%) by 2030. At each interim target you would need to reduce your building’s EUI to a specific level. Buildings must maintain interim targets each subsequent year, and must maintain the final energy performance target indefinitely. Please see the “EUI Target Example” drop-down for an illustrated example.
How does the policy affect buildings that are campuses?
For campuses, compliance has to be achieved for every building (unless the buildings are metered together and therefore cannot be separated). Of note, renewables owned on-site can be allocated or distributed to any building as needed to bring the campus as a whole into compliance. If there are individual buildings for which it is not possible to reach the EUI targets due to inherent characteristics of the building, then there will be alternative compliance options to adjust the targets or timelines for compliance by individual buildings.
How does the policy affect historic buildings?
In most cases, a building’s historic status does not interfere with its ability to meet the energy performance requirements. See below for a graphic demonstrating this concept. CASR may approve an alternate compliance option for these buildings, same as any other building.
What is the City doing in municipal buildings to comply with Energize Denver requirements?
The City is developing detailed plans to bring all City buildings into compliance so that we can lead by example.
Will my targets associated with the Building Performance Policy be publicly disclosed?
Building energy benchmarking information is publicly available now through the Energize Denver Map and Denver’s Open Data Catalog. The Map will be updated to reflect Site EUI and targets more clearly in 2022.
Why do different building types have different EUI reduction targets?
Some building types have higher EUI targets because their operations require more energy per square foot than others. For example, a laboratory uses significantly more energy per square foot than an office building. A more energy-intensive building will have a different EUI target based on the energy intensity required for the operations conducted in the building.
If the building changes ownership, which owner is responsible for meeting the goal?
The owner of the building at the time of each compliance deadline is responsible for complying with the Performance Requirements. If a covered building is sold, its compliance status will transfer to the new owner.
According to 10-404(e) of the municipal code, “Disclosure upon sale. The owner of a covered building shall disclose the covered building's compliance status, including all performance targets, any approved alternate compliance pathways, and any penalties assessed, to a prospective buyer prior to the sale of the building. The owner shall disclose to all prospective buyers the covered building's compliance status in all documentation or advertising concerning the sale of the covered building including, but not limited to, any listings, notices, advertisements of sale, term sheets, and contracts of sale.”
How can heat pumps lower my building’s EUI?
Heat pumps move heat instead of creating it, achieving 200-300% better efficiency. Depending on the type of existing heating in your building (rooftop unit, furnace, boiler, PTAC, etc.) and on the type of heat pump installed, the EUI of the building will be reduced 5-30%. Replacing rooftop units and furnaces with heat pumps will result in the greatest EUI reduction (24-30%). Heat pumps can also replace water heaters. For example, replacing a gas water heater with a heat pump water heater can reduce EUI by up to 15%. Heat pumps are often similar in cost to comparable gas systems, with the added benefits of reduced EUI, lower gas bills, and improved indoor air quality.
How does CASR plan to update the policy to account for changes in technology over time?
CASR is committed to performing a review of the technology landscape every four years. This will allow us to determine whether any adjustments are required to account for changes in technology within this ordinance. CASR may also make adjustments to the policy based on implementation and stakeholder feedback.
What is the penalty for not complying with the Energize Denver Performance Requirements or not reaching an energy performance target?
CASR is committed to supporting building owners in their efforts and exploring the flexibility that alternate compliance options can afford. Buildings that do not achieve the EUI Targets could be subject to penalties based on kBtu reduction not achieved.