Energize Denver ordinance
Understanding and Navigating Energize Denver
Key information, timelines, and how Trane can support your journey toward compliance.
What is Energize Denver?
The Energize Denver ordinance is a pivotal legislative initiative aimed at enhancing energy efficiency and sustainability in Denver's larger buildings, specifically those with a total floor area of 25,000 square feet or more. With commercial and industrial (C&I) buildings contributing to 49% of the city and county’s CO2 emissions, the ordinance sets ambitious short-term goals to reduce these buildings' energy use intensity (EUI) by 30% by 2030. To achieve this, building owners and managers are mandated to annually measure and report their energy usage and greenhouse gas emissions, establishing a performance benchmark.
Buildings of 25,000 square feet or larger will be required to submit energy benchmarking data. Benchmarking will be required for new construction after 12 months of operation. All retrofits must also adhere to emissions reporting rules. Benchmarking must be verified by a third party referencing the ENERGY STAR® Portfolio Manager Data Verification Checklist before submission. Benchmarking reports are due each year on June 1, with the first reports due this year for calendar year 2023, though one-year extensions are permitted in some cases. Building owners can check their benchmarking status at energizedenver.org.
Trane is an authorized Energize Denver benchmarking services provider.
The new performance standards require overall building energy efficiency improvements as measured by energy use intensity (EUI). To meet these targets, most facilities will need to do more than upgrade their air conditioning units or install heat pumps. A variety of energy conservation measures (ECMs) will need to be implemented such as upgraded lighting, building controls, and/or upgraded windows and roofing. Improvements and reporting requirements go into effect for some buildings starting this year (2024).
In general, all commercial, municipal, and manufacturing buildings larger than 25,000 square feet will be required to reduce site energy use intensity (EUI) according to their sector-defined target by at least 30% by 2030. They must achieve certain scaling targets between 2024 and 2030 and adhere to the current green building ordinance (GBO) sustainable cool roof rules that were updated in the 2022 building code. All commercial, municipal, and manufacturing buildings between 5,000 and 24,999 square feet in size must upgrade 90% of their building’s total lighting load to LED lights. Further, on- or off-site renewable power generation must meet a minimum of 20% of the building’s annual site energy usage.
For new construction, BPS targets will be set within (6) months of receiving the first benchmarking report. Retrofits will require new targets to be set every 3 years.
How can I make sure my building(s) meet the requirements of the Energize Denver legislation?
Understanding and navigating the new limits introduced as part of Energize Denver can be overwhelming and stressful for building owners. Each journey toward compliance may look different but rest assured, effective collaboration can support you at any stage. The path to meeting the requirements can be summed up in one word—decarbonization.
It’s important to first understand what is meant by decarbonization. Decarbonization is the process of decreasing or eliminating GHG emissions that come from a building. Like vehicles that are helping to reduce emissions by becoming more fuel-efficient or powered by electric batteries, buildings are decarbonizing, too. Buildings can help meet decarbonization goals through a thoughtful combination of improved equipment, controls, and services, thereby adhering to more rigorous environmental laws.
Next Steps towards compliance...
Navigating the requirements of the Energize Denver initiative can be complex, but following a structured approach can help to simplify the process:
- Confirm Your Performance Target: Begin by identifying the specific energy performance targets set for your building. Understanding these benchmarks is crucial for planning your compliance strategy.
- Decide on Your Strategy to Meet Your Compliance Deadline: Develop a comprehensive plan to achieve your energy performance targets by the specified deadlines. This may involve a combination of energy efficiency upgrades, operational changes, and possibly the integration of renewable energy sources.
- Verify the Accuracy of Your Benchmarking: Ensure that your building's energy usage data is accurately benchmarked. This involves verifying that all data submitted is correct and up-to-date, as accurate benchmarking is essential for tracking progress and compliance.
- Consider an Energy Audit: Conduct an energy audit to identify areas where your building can improve energy efficiency. An audit will provide a detailed analysis of your building's energy use and recommend specific measures to reduce consumption.
- Leverage available Funding Resources*: Explore financial incentives, rebates, and other programs that can help offset the costs of energy efficiency upgrades. Utilities nationwide are awarding billions of dollars in incentives for electrification, energy efficiency, demand response, and decarbonization program solutions.
- Prepare for the 2025 EUI Target: Begin preparations to meet your first Energy Use Intensity (EUI) target in 2025.
*Entities like Xcel, Commercial Property Assessed Clean Energy (C-PACE), the Colorado Clean Energy Fund, and the City and County of Denver offer numerous rebates, incentives, and funding mechanisms to support your efforts. While the Xcel Energy rebate program is designed to provide performance-based incentives, the recently enacted Inflation Reduction Act (IRA) is available for specific project types. The IRA, signed on August 16, 2022, is the nation’s most significant investment in clean energy solutions to date. The IRA offers a variety of clean energy tax credits to building owners to help ease the financial load. Many include a base tax credit with opportunities for bonus tax credits for projects meeting specific requirements.
How can Trane help?
Trane is committed to supporting building owners in their journey to comply with the Energize Denver initiative. Our team of experts can assist you at every step, from confirming your performance targets to conducting energy audits and identifying cost-saving opportunities. We offer tailored solutions to enhance your building's energy efficiency, leveraging our extensive experience and innovative technologies. With a depth and breadth of expertise, backgrounds, and perspectives, Trane can provide tailored solutions and end-to-end support to help you meet performance requirements now and in the future. Whether you’re interested in heat electrification, benchmarking, or performance data collection and analytics, our comprehensive solutions help facilitate adherence to regulations while helping to drive long-term energy savings and reduce environmental impact.
Below are some helpful resources with more information:
- The White House: Inflation Reduction Act Guidebook
- Trane Commercial: Legislation and Incentives Resource Center
You don’t have to become an expert in decarbonization to meet the new Energize Denver requirements. Trane can do the heavy lifting by helping you navigate complex regulations, implement energy-efficient systems, and improve your building’s overall performance. Trane will work with you to navigate, plan, and develop a solution that’s right for your building. We honor the legacy we’ve created and build on it by helping make buildings more comfortable and more cost-effective. Now, and for generations to come.
Start planning today!
What can you expect?
Trane uses a proven 4-step process when engaging with our customers.
The journey to decarbonize your building is uniquely yours.
Let Trane® be your trusted guide.