What Denver’s Energize Denver Building Performance Policy Means for Commercial Buildings

What Denver’s Energize Denver Building Performance Policy Means for Commercial Buildings

Over the last few years, the city of Denver has been cracking down on energy regulations. Similar to the efforts in California, the Energize Denver Building Performance Policy limits energy use and greenhouse gas emissions from commercial and multifamily buildings. If you’re a building owner in the Denver area — understanding the policy and how to approach compliance is essential.

This guide breaks down the core components of the Energize Denver Policy, explains what building owners need to know, and highlights why it matters for both operations and long-term value.

What Is the Energize Denver Building Performance Policy?

The Energize Denver Building Performance Policy is a set of requirements designed to reduce energy use across Denver’s commercial buildings. The policy was originally adopted in 2021 and most recently updated with new rules effective April 1, 2025, to make compliance more practical and achievable for owners.

At its core, Energize Denver requires many commercial and multifamily buildings to:

• Benchmark energy use annually

• Meet defined energy performance targets

• Submit compliance documentation through the city’s management portal

Buildings are grouped into size categories, with different requirements depending on square footage and use.

Which Buildings Are Covered?

Energize Denver divides buildings into two primary groups:

Buildings 25,000 sq. ft. and Larger

Large commercial and multifamily buildings fall under the most comprehensive set of requirements. These buildings must:

• Submit annual energy benchmarking reports

• Establish an energy efficiency target, measured in energy use intensity (EUI)

• Demonstrate progress toward meeting that target over time through energy performance reporting.

The city assigns a unique target for each building based on its size, type, and historical energy use. Benchmarks are established using energy data reported through ENERGY STAR Portfolio Manager, which the city then reviews to determine compliance.

Buildings 5,000 to 24,999 sq. ft.

Smaller commercial buildings are not exempt. These buildings are required to meet prescriptive requirements focused on efficiency measures, such as upgraded lighting or increased usage of renewables. The aim is to reduce energy consumption across a broader range of building types, not just the largest ones.

How Denver Sets and Tracks Performance Targets

A cornerstone of Energize Denver is the energy performance target assigned to each large building. These targets are expressed in energy use intensity (EUI) — a metric that shows how much energy a building uses per square foot per year.

How Targets Are Determined

Each building’s target reflects:

• The building’s size and use type

• Baseline energy performance

• A path toward reduced energy use over time

Once a building’s EUI target is established, annual benchmarking reports help Denver assess whether the building is trending toward compliance.

Energy Benchmarks and Verification

Annual benchmarking submissions must include accurate energy data. Denver emphasizes data quality: incomplete or inaccurate benchmarking can result in incorrect targets, and owners have the option to request a target adjustment if unique circumstances (such as specific building uses or occupancy patterns) warrant it.

In addition to annual benchmarking reports, building owners must complete third-party verification of those reports by June 1, 2026 — ensuring the data reflects real energy use and informs the correct target.

Timeline and Compliance Milestones

The policy’s timeline was updated in 2025 to provide owners with greater flexibility and clarity:

• The first major performance check for many buildings now occurs closer to 2028, with the final targets extended to 2032.

• Timeline extensions are available for buildings facing specific circumstances, such as vacancy or long-term compliance planning.

These extensions allow owners to align energy performance improvements with capital planning cycles, avoiding rushed decisions that could disrupt operations or strain budgets.

Why Denver’s Approach Matters

Energize Denver is not just another regulation. It reflects a broader shift in how cities manage building energy use, and it has implications well beyond Denver’s borders.

1. Alignment With Climate Goals

Denver aims to reduce greenhouse gas emissions citywide and reach net-zero emissions by 2040. Buildings are a major contributor to emissions, and improving energy performance is a key lever for achieving these targets.

2. Operational Improvement

Benchmarking and performance targets provide owners with actionable data about how their buildings behave over time. Instead of reacting to issues, owners can spot trends, evaluate efficiency projects, and prioritize upgrades that yield measurable results.

3. Cost Management and Resilience

Improved energy performance often means lower utility bills and reduced operational risk. Over time, better-running buildings tend to have lower maintenance costs and higher tenant satisfaction — traits that enhance long-term value.

4. Flexibility and Practicality

Unlike static, one-size-fits-all mandates, Energize Denver recognizes that every building is different. Owners can request target adjustments, timeline extensions, and compliance holds based on real circumstances, helping balance regulatory goals with economic realities.

Practical Steps for Building Owners

If your building is subject to Energize Denver requirements, here’s how to navigate the policy:

1. Benchmark Accurately Every Year

Annual submissions form the basis for performance evaluation and target tracking. Ensure meters, tenant loads, and all use types are included.

2. Verify Your Data

Third-party verification is required and critical for accurate target setting. Choose a provider who understands Denver’s rules and can confirm energy use data.

3. Review Your Target

If the assigned EUI target doesn’t match your building’s real use patterns, seek a target adjustment. Getting this right early can save headaches later.

4. Plan Performance Improvements Strategically

Targets are long-term goals. Use interim benchmarking data to plan upgrades that deliver savings and move your building toward compliance incrementally.

5. Explore Timeline Extensions

If capital planning or operational conditions make meeting interim deadlines challenging, don’t hesitate to explore extensions or compliance holds through Denver’s process.

Conclusion

Denver’s Energize Denver Building Performance Policy marks a significant evolution in how cities approach building energy performance. It blends data-driven targets, practical flexibility, and long-term climate objectives into a framework that encourages real improvement over time.

For building owners and managers, the policy is more than a regulatory hurdle. It is an opportunity to better understand energy use, cut operating costs, and future-proof buildings in a landscape that increasingly values performance — not just compliance.