To comply with the Energize Denver Performance Requirements, buildings meet their energy efficiency target by the deadline. Buildings show the city that they have met their target when they submit their annual benchmarking report. Benchmarking reports show the previous calendar year's energy use. For example, you would prove that you have met your 2032 target when you submit benchmarking data in 2033. The data you will send us will be from January 1, 2032 to December 31, 2032.
Every building will demonstrate progress at an interim energy efficiency target. You can look up your building's details in the Performance Requirements Look Up Tool.
As the ordinance was written, all buildings had an interim energy efficiency target in 2024, another in 2026, and a final target in 2030. We then offered an automatic Timeline Extension to all buildings who had completed their 2021 benchmarking report. This Timeline Extension moved the first interim compliance year from 2024 to 2025.
During the 2025 benchmarking season, all buildings will have the opportunity to opt into an updated timeline when they submit their benchmarking report. This new timeline:
- Shifts your first interim target year to 2028
- Eliminates your second interim target year
- Shifts your final target year from 2030 to 2032
Each building's energy efficiency targets are unique to that building and based on how you report the building's various uses. We assign your 2032 target based on how much of the building is used for different functions. For example, if your building has both commercial office space and restaurant space, you will have a blended target based on the percentage of gross floor area assigned to each building type.
The targets we used to create your building's unique final energy efficiency target are below. You can also find them in Appendix A in the Technical Guidance.
Find Your Building Type
ENERGY STAR
Portfolio Manager Building Type
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Final Target measure in EUI (kBtu/sf/yr)
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Ambulatory Surgical Center
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Automobile (Vehicle) Dealership
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Fitness Center/Health Club/Gym
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Hospital (General Medical & Surgical)
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Mailing Center/Post Office
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52.9 |
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Non-Refrigerated Warehouse
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Other - Entertainment/Public Assembly
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Other - Lodging/Residential
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Other - Services (Shoe, Locksmith, Etc)
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Other - Specialty Hospital
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Other - Technology/Science
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Outpatient Rehabilitation/Physical Therapy
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| Performing Arts |
53.2 |
Personal Services (Health/Beauty, Dry Cleaning, etc.)
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Residential Care Facility
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Supermarket/Grocery Store
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Transportation Terminal/Station
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Urgent Care/Clinic/Other Outpatient
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34.6 |
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Wholesale Club/Supercenter
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Performance Evaluation refers to the times when the city verifies that you have met either your interim or final energy efficiency goal. This process begins on June 1 of the year following the measurement year. We will be looking at your energy use data from January 1 through December 31 of the measurement year (the year when the target was due). For example, we will go through the Performance Evaluation process starting on June 1, 2029, to review your data from 2028 and verify that you met your interim energy efficiency target.
The Performance Evaluation process includes:
If the building’s current site EUI (the way we measure energy efficiency) is higher than the target, the building is not in compliance with that year’s energy efficiency target. See Section 8 of the Technical Guidance for more information on this process.
We will notify building owners of compliance status by an email from EnergizeDenver@denvergov.org. If we do not have an email on file, we will mail a physical letter to the building’s main address.
There are multiple opportunities to avoid penalties in this program:
Corrective Action Process
When you receive an energy audit, the audit report will include a list of estimated energy efficiency gains. However, these estimates may vary from actual energy efficiency gains when you actually implement building improvements. Many factors can influence this final outcome, including:
- The specific equipment selected during the bidding process
- Installation quality
- Proper commissioning procedures
- Ongoing operation and maintenance practices
- Occupant behavior patterns
To account for this, we developed a corrective action process to allow you to make adjustments to your building instead of being assessed penalties.
- If the building is 5% or less away from the target, you can file a corrective action plan following the instructions in Section 9.2.4 of Technical Guidance.
- If the building is 6% or more away from the target, a more comprehensive response is required.
- You will need to complete a new energy audit and compliance plan
- You will submit these new items using the Timeline Extension process (described in Section 7.2 of the Technical Guidance)
Performance Requirements Enforcement Steps
- Warning Notice: Once we determine that a building is not in compliance, we will send a warning notice to the building owner. The owner will have ninety (90) days from the date of the warning notice to apply for:
- A corrective action plan if you are within 5% of your target and can make adjustments to your building within one year
- A timeline extension if a long-term plan is needed
- Notice of Violation: If the building owner has not applied for a timeline extension or corrective action plan by the end of the 90 days, we will issue a notice of violation. The building owner will have thirty (30) days to file an appeal of the notice of violation.
- Civil Penalty – Administrative Citation: If the building owner has not filed an appeal, an administrative citation is issued. The building owner has one hundred eighty (180) days from the administrative citation date to pay the penalty with the manager of finance.
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Property Lien: If a building owner fails to pay the required amount within one hundred eighty (180) days, the civil penalty will be considered a debt to the city until paid in full. The debt is a perpetual lien on the property until the civil penalty owed, delinquent interest, and recording fees have been paid in full.
Performance Evaluation and Enforcement Timeline
Appeals
A building owner has the right to appeal an administrative citation or decision by filing a “petition for appeal.” See Section 10 of the Technical Guidance for the appeals processes based on the type of appeal you wish to request.
See Energize Denver Forms
The city’s 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. We’ve increased the options available to buildings to help put compliance within reach. This ranges from adjusting energy efficiency targets and compliance deadlines to developing customized plans for phased improvements.
Our commitment is to work with your building, support you with your efforts, and explore adjustments and extensions to the fullest extent possible so that penalties are not assessed.
There are multiple opportunities to avoid penalties with this program. If penalties are assessed, the penalty structure below will be assessed. See Section 9.2 of Technical Guidance for more information.
Types of Penalties
There are two main types of penalties:
- Target Penalties: Occur if the building does not reach the Interim Target, Final Target
- Maintenance Penalties: Occur after the building reaches their final target if you do not maintain your Final Target indefinitely. If your annual site EUI is 5% worse than the target you are supposed to be maintaining, we will switch you back to the target penalty level until you achieve the target again.
Penalties are assessed by first determining the “kBtu not achieved,” which is the difference between your energy efficiency goal and your actual energy use. You can see how this is calculated in the Performance Evaluation section of the Technical Guidance. We then multiply that value it by the penalty rate. The resulting total is the the penalty amount.
Penalty Schedule
With the April 2025 rules and regulations update, penalty rates were reduced based a reassessment of the cost of compliance analysis.(PDF, 991KB)
Penalty Type
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Penalty Rate
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Assessment Period
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- Buildings that do not opt into the updated compliance timeline
- Buildings that fall out of compliance after meeting their interim or final target
- New constructed buildings
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$0.30 $0.15/kBtu not achieved |
If the building does not opt into the updated compliance timeline, they will be assessed penalties in 2024/2025, 2027, 2030, and annually if the building does not meet their 2030 target.
Otherwise, penalties will be assessed in 2032 or after.
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| Buildings that are following our standard updated timeline with an interim target in 2028 and a final target in 2032. |
$0.42 $0.23/kBtu not achieved |
2028, 2032, and then annually if the building has not yet met its final target |
| Buildings that got a timeline extension and so only have one target year for which we are assessing the data. |
$0.63 $0.35/kBtu not achieved |
2032, and then annually if the building has not yet met its final target |
| Buildings that request a Timeline Extension after December 31 of the target due date you are requesting an extension for |
$0.10/kBtu added to the penalty rate |
The new target year that was determined by the timeline extension application process |
- Buildings that have never submitted a benchmarking report
- Buildings for whom the most recent benchmarking report is from before 2019
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$10.00/square foot listed by the Office of the Assessor |
2024, 2027, 2030, and then annually if the building does not meet their final target. |
How did Denver Determine the Energy Efficiency Targets?
Denver has set a goal for existing buildings to reach net zero energy by 2040. The Energize Denver Task Force used that goal as a starting place to set the final energy efficiency targets.
Targets were set by building type (e.g. an office vs. a hotel vs. a restaurant) to account for the different amounts of energy they use. The city used ENERGY STAR® Portfolio Manager® building types from the annual benchmarking submissions. From there, we determined the target energy efficiency level for each building type needed to reach the city’s goals.
For a more in-depth explanation of our methods, review the Building Typology and EUI Targets methodology.
How did Denver Determine the Baseline and Interim Targets?
The baseline EUI and interim target EUI is unique to each building.
We set each building’s baseline EUI based on the 2019 benchmarking data submitted to the city. Originally, to determine the 2024 and 2027 interim targets, we drew a straight line from a building’s 2019 baseline EUI to their 2030 EUI target. Whatever value the EUI was in 2024/2025 and 2027 became the interim targets for that individual building.
With the rules update in April 2025, we took the original 2024 target and shifted it back to 2028 and eliminated the 2027 target. But if the building does not benchmark in 2025 and request the shift in timeline, their building stays on the 2024/2025, 2027, 2030 timeline.
Doesn't each building just have to reduce their energy use by 30%?
No, the ordinance's overarching goal is a 30% reduction in energy use, but each building’s target is unique.
Are new buildings required to comply with the Energize Denver requirements?
Yes, but a new building will not be required to comply until it has been in operation for one full calendar year. That’s when the building shifts from being ”new construction” to an “existing building.”
What if my building was assigned a Denver Building ID and it did not have a certificate of occupancy (or temporary certificate of occupancy) for all twelve months of the calendar year? Please submit an exemption application for that year’s benchmarking requirement.
New buildings under Denver's 2022 Building Code should perform at or below their target EUI. Exactly how it performs depends on the code compliance pathway chosen during design.
When does a new building become an existing building that must start benchmarking?
After the building is constructed and has been in operation for 12 months in one calendar year. For example, a building that received its certificate of occupancy in June 2022 would become an existing building in the 2023 calendar year. It would have to submit its first benchmarking report for the 2023 calendar year (January 1, 2023 to December 31, 2023) to our office by June 1, 2024. The building will then be assigned final performance targets.
My building is new. What is my baseline?
If a new building is not yet performing at its final energy efficiency target, we will use the predicted energy efficiency that was submitted as part of energy code compliance as the baseline.
If there is no predicted EUI, the city will establish a reasonable baseline based on the building type. If the building is using less energy than its final energy efficiency target, all the building has to do is maintain their performance.
How do the building performance requirements affect campuses?
For campuses, every qualifying building must reach compliance individually. When all the buildings are on a single meter and cannot be separated, the campus is issued one energy efficiency target based on how they benchmark.
Breaking down the high-intensity building types on a campus is critical to setting the correct energy efficiency target. A campus option is available for submitting an application for a timeline extension. We will work with the campus to apply for renewable credits.
How does Energize Denver affect historic buildings?
In many cases, a building's historic status does not interfere with its ability to meet its energy efficiency targets, unless the Landmark Preservation Board has limited the energy efficiency measures the building is allowed to implement. Historic buildings are eligible for a customized target adjustment if this is the case.
How does Energize Denver affect municipal buildings?
The ordinance affects municipal buildings the same as private buildings, so the City and County of Denver is developing detailed plans to bring all covered municipal buildings into compliance so that we can lead by example.
How does Energize Denver account for changes in technology over time?
Denver 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. The city may also adjust the policy over time based on implementation and stakeholder feedback.
How do electric vehicle (EV) chargers affect my performance?
Denver considers the electricity used to power EV charging stations a "transportation" use, rather than a "building" use. This means you can exclude this energy from your benchmarking report. The Technical Guidance has instructions for excluding EV charging stations in Section 4.2. You can find other items to exclude from your benchmarking report in the Benchmarking Checklist(PDF, 622KB).
My building did not benchmark in 2019. What is my baseline?
For buildings that have never benchmarked, we assigned a baseline energy use based on other buildings of its type in Denver.
If the building had 2018 or 2020 benchmarking data, one of those years was chosen to be the baseline.
If you would like to correct the absence of data so that we can assign a more accurate baseline and interim targets, please reach out to the Help Desk.
Can I change my baseline EUI?
Yes. You can apply for a Target Adjustment to update your building's baseline if:
- Your building’s 2019 benchmarking data was inaccurate
- That year did not reflect normal operations
- You do not have access to data from a previous building owner
Changing your baseline year does not affect your final energy efficiency target! It only changes your interim target. Before submitting the adjustment request to change your baseline, please reach out to the Energize Denver Help Desk.
Why is the new maximum reduction cap set at 42%?
When the State designed their performance policy in 2023, they included a maximum reduction cap. We liked that idea.
When we set the energy efficiency targets in 2022, we estimated an overall energy reduction of 33% across all covered buildings.
The ordinance requires a 30% energy reduction. We used the 3% buffer to create an emissions cap, which we calculated at 42%(PDF, 150KB).
What is the estimated cost for buildings to comply with Energize Denver?
Each building is unique, so the steps building owners may have to take to reach their energy reduction targets are also unique.
Energy reduction targets are based on both a building’s benchmarking and energy audit. Those steps provide the baseline for what upgrades could be needed, and what they could cost.
The Office of Climate Action performed a cost of compliance analysis in 2022 to set penalty levels. The analysis showed a range of costs of $0.27-16.96 per square foot. The high end of the range includes costs for major system equipment that would have been replaced at the end of system life anyway.
These same costs could also generate utility savings of $0.06-1.15 per kBtu saved. Focusing on energy efficiency measures with a quicker payback and including utility rebates and tax credits available in 2022, the cost range was $0.00-0.89 per kBtu saved.
I own the building, but my tenant consumes the energy. How can I hit my targets?
This is what we call a "split incentive." Split incentives occur when:
- One party (the owner) pays for energy improvements
- The other party (the tenant) receives the benefits of reduced utility costs
This can act as a barrier to energy efficiency improvements in rental properties. Working through the "Smart Leasing" process is the best resource for:
- Aligning the tenant and landlord's interests
- Reducing operating costs,
- Improving productivity
- Meeting the performance requirements
Smart leases differ from traditional leasing agreements. They include clauses targeting the opposing interests between owners and tenants. Smart Leasing encourages all stakeholders in the leasing process to discuss:
- Efficiency
- Sustainability
- Building performance
We recommend these conversations happen at all points in the leasing process:
- Pre-lease and site selection
- Lease negotiation and build-out
- Occupancy and operations
Lease clauses that are optimized for the performance requirements should include:
- An information disclosure that allows owners to get utility information for benchmarking requirements
- Requirements enabling owners to implement energy efficiency and electrification upgrades
- Specifications to ensure compliance with Denver’s requirement to electrify equipment
- Energy efficiency standards for leased spaces.
If the building changes ownership, which owner is responsible for meeting the goal?
The owner of the building at the time each target is due is responsible for complying with the requirements. If a covered building is sold, its compliance status transfers to the new owner.
If a building is transferred to a new owner during a compliance measurement period, the new building owner will need to work with the Energize Denver Help Desk to adjust the building compliance due dates to give them more time if needed.