Energize Denver Ordinance: Targets, Penalties, and Exemptions

The Energize Denver ordinance, codified in Chapter 10, Article XIV of the Denver Revised Municipal Code, requires most commercial and multifamily buildings in Denver to benchmark their energy use every year and meet tightening efficiency targets on a schedule that runs through 2032.¹ Miss a target and the city charges you by the kBtu you fell short. Skip benchmarking entirely and the penalty jumps to $10 per square foot of building.

Which Buildings Are Covered

Coverage is set by gross floor area as recorded in the Denver Assessor’s records, and your square footage decides which track you follow.

Large buildings at 25,000 square feet or more face annual benchmarking plus mandatory Energy Use Intensity (EUI) targets that tighten over time.
Small buildings between 5,000 and 24,999 square feet follow a simpler prescriptive path built around specific equipment upgrades rather than a calculated energy target.
Manufacturing, agricultural, and industrial (MAI) buildings at or above 25,000 square feet must benchmark but may use an alternate compliance path tailored to operations that inherently consume more energy than a typical office or apartment building.

Verify your classification against the Assessor’s recorded square footage before doing anything else. The wrong classification means the wrong compliance schedule entirely.

Annual Benchmarking and the June 1 Deadline

Every covered building has to report its energy use for the previous calendar year through ENERGY STAR Portfolio Manager, the EPA’s free benchmarking tool.² You need records for every energy source feeding the property: electricity, natural gas, steam, and chilled water. Every meter counts. Monthly consumption figures are preferable to annual totals because they catch anomalies.

Once your data is finalized in Portfolio Manager, submit it through the Denver Benchmarking portal by June 1. Keep the confirmation. The city reviews the report and notifies you whether the building is compliant.

Performance Targets for Large Buildings

Large buildings must hit EUI targets measured in kBtu per square foot per year. Targets vary by building type because a hotel naturally uses more energy than a retail store. The city’s current final targets include:³

Office: 48.3 kBtu/sf/yr
Multifamily housing: 44.2 kBtu/sf/yr
Retail store: 43.5 kBtu/sf/yr
Hotel: 61.1 kBtu/sf/yr

Under the updated compliance timeline, buildings face an interim target in 2028 and a final target in 2032.³ For many older buildings, reaching those numbers means upgrading HVAC, insulation, or lighting well before the deadline.

Prescriptive Requirements for Small Buildings

Buildings between 5,000 and 24,999 square feet don’t calculate an EUI target. Instead, the ordinance gives you a checklist.

The core requirement is converting at least 90% of lighting to LED or equivalent low-power technology. For most small commercial spaces, lighting is a large enough share of total energy use that this single upgrade moves the needle significantly.⁴

You also need to source a portion of your energy from renewables. That requirement can be met by generating the equivalent of 20% of the building’s annual energy use through on-site solar panels or a community solar garden subscription. The May 2026 amendments extended due dates for small buildings, so check the city’s technical guidance page for your current deadline.⁵

The Electrification Alternative

You are not required to replace a working gas furnace or water heater. The city has, however, introduced a prescriptive electrification pathway as an alternative way to comply. Installing qualifying heat pump equipment for primary space heating can, on its own, satisfy Energize Denver requirements for small buildings.⁴ If your heating system is near the end of its useful life, one equipment swap could handle the entire compliance obligation.

What Non-Compliance Costs

Penalties are tiered, and the rate depends on where your building sits in the compliance timeline. The city calculates the charge based on how many kBtu per square foot the building missed its target by.³

$0.15 per kBtu not achieved for buildings that did not opt into the updated timeline, buildings that fall out of compliance after previously meeting a target, and newly constructed buildings.
$0.23 per kBtu not achieved for buildings on the standard updated timeline with a 2028 interim target and 2032 final target.
$0.35 per kBtu not achieved for buildings on a timeline extension with only one target year.
$0.10 per kBtu surcharge added to the applicable rate if you request a timeline extension after December 31 of the target year you’re requesting relief for. Late extension requests cost more.

The worst tier applies to buildings that have never submitted a benchmarking report or whose most recent report predates 2019: $10.00 per square foot as listed by the Assessor’s Office. For a 50,000-square-foot building, that is $500,000. Even if you can’t hit your EUI target right away, filing the benchmarking report on time avoids the worst-case scenario by a wide margin.

Third-Party Verification

Your benchmarking data has to be verified by a qualified third party twice during the compliance cycle: once by June 1, 2026, and again during the calendar year in which your final target is measured, typically 2032.⁶ Qualified verifiers include licensed Professional Engineers, Registered Architects, Certified Energy Managers, Building Energy Assessment Professionals, and Energy Management Professionals. The verifier cannot be the building owner or an employee of the owner, though the same person who prepared the benchmarking report is allowed to also perform the verification. For the 2026 deadline, either your 2024 or 2025 calendar year report can be verified to satisfy the requirement.

Target Adjustments and Exemptions

Not every building can reasonably meet the standard EUI targets. The city reviews adjustment applications case by case with supporting documentation.⁷

High-intensity uses like data centers, hospitals, and broadcast studios can request a modified target.
Buildings in financial distress, such as those under a notice of default or in active foreclosure, may qualify for an extension or reduced target.
Buildings that just completed a major retrofit can request time for the performance data to catch up with the improvements.
Buildings scheduled for demolition or a major use change within a defined timeframe can seek relief from current targets.

Historic Buildings

Buildings designated as landmarks by the Denver Landmark Preservation Commission or listed on the National Register of Historic Places can apply for an alternative compliance plan with a modified target or exemption from specific requirements if meeting the standard targets would compromise historic integrity.⁸ The standard is demonstrating that compliance isn’t technically or economically feasible given the designation, not simply that it would be expensive.

Disclosures When Selling a Covered Building

If you sell a commercial property covered by the ordinance, you must disclose the building’s Energize Denver compliance status to the buyer before the transfer closes. Required disclosures include:⁹

Current compliance status with benchmarking requirements
The building’s current EUI
Future energy efficiency targets the building must meet
Any approved target adjustments or alternate compliance arrangements
Copies of existing compliance plans

The city runs an online Energize Denver Disclosure Tool where entering the building address generates the compliance report for the buyer. If you’re buying, treat this disclosure as a due diligence item. A building that has never benchmarked carries an immediate $10-per-square-foot penalty risk that can dwarf closing costs.

May 2026 Amendments

On May 18, 2026, Denver City Council approved amendments to the ordinance covering four areas: simplifying compliance processes and definitions, extending due dates for small buildings (5,000 to 24,999 square feet), formalizing reduced penalty structures and appeals processes, and aligning the ordinance with updated national building performance standard best practices.⁵ Updated rules and technical guidance were expected the week of June 8, 2026. Small building owners should confirm revised deadlines on the city’s technical guidance page before planning any upgrades against an older schedule.

1
City and County of Denver. Energize Denver Task Force
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ENERGY STAR. Benchmark Your Building With Portfolio Manager
3
City and County of Denver. Performance Requirements
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City and County of Denver. Energize Denver Ordinance Update Overview for Buildings 5,000 – 24,999 sq ft
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City and County of Denver. Rules and Technical Guidance
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City and County of Denver. Energize Denver Data Verification Guide
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City and County of Denver. Benchmarking and Setting Your Energy Efficiency Target
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City and County of Denver. Energize Denver Building Performance Policy
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City and County of Denver. Information for Selling Your Commercial Property