Update: Energize Denver Part Two

The Energize Denver ordinance is the City’s commitment to energy efficiency and sustainability.  The ordinance shows our city’s role as leaders in balancing economic growth with environmental stewardship. However, the ordinance comes with  a significant cost to the city’s property owners, who are faced with complicated decisions regarding capital improvements, sustainable retrofits and the integration of renewable energy.

We checked in with Zaki Robbins, Director, Business & Finance, Fennemore Denver for an update on the Energize Denver Ordinance surrounding energy efficiency and sustainability.  This is part two of a two-part series.

Does the City of Denver dictate how building owns must reduce their carbon footprint and greenhouse gas emissions?

No, the city does not dictate how building owners achieve these goals as Denver’s office of the Climate Action, Sustainability and Resiliency (CASR) explicitly intended this program to be flexible and adaptive. CASR encourages each building to undergo an energy audit to identify the building’s largest energy consumers and for energy experts to tailor strategies for achieving specific EUI goals.

In your opinion how will these goals be achieved?

Building owners should begin by benchmarking their current energy use and conducting energy audits to identify areas for improvement. Many buildings will achieve the necessary goals through retrofitting HVAC systems, replacing natural gas appliances with electric alternatives like heat pumps, and installing energy management systems. Owners can also take advantage of federal and local incentives to offset the costs of these upgrades. It is important to note that compliance with the Energize Denver anticipates a phased approach, with partial compliance by 2027 and full electrification in subsequent years​

Are the required retrofits costly for building owners? If so, what resources are available to building owners?

While the necessary retrofits and upgrades may be costly, federal, state, and local resources can help building owners identify and implement energy-efficient measures. The federal Inflation Reduction Act contains many helpful provisions.

They include:

(a) expanding Section 179D tax deduction for energy-efficient commercial buildings, including updated eligibility criteria;

 (b) extending the Investment Tax Credit for renewable energy installations such as solar panels;

(c) prolonging and improving energy-efficient building projects to promote advanced energy-saving technologies;

 (d) and, providing grants and rebates to support energy-efficient electrification and retrofits covering HVAC upgrades, insulation and more.

Are there any other incentives that Denver offers that owners should be aware of?

Yes, Denver, through its CASR office, also offers incentives to reduce greenhouse gas emissions and improve building efficiency, including rebates for energy-efficient upgrades, such as installing electric heat pumps, energy-efficient lighting, and upgrading insulation. The City also offers financial support for building owners to transition to renewable energy sources like solar power. Additionally, Denver provides grants and low-interest financing options for retrofitting buildings to meet the city’s emissions reduction targets. Incentives are designed to offset the upfront costs of meeting the energy performance standards and to make the transition more affordable for property owners​

Are there strategies you recommend for future proofing building?

Absolutely, owners can consider embracing  technology, investing in smart building technologies that enable real-time monitoring and control of energy usage all of which allow building owners to adapt to changing energy needs and optimize performance. Owners can also incorporate renewable energy sources like solar panels to increase self-sustaining energy and decrease carbon emissions, implement a proactive maintenance schedule to ensure that energy-efficient systems and equipment continue to perform optimally, and educate and involve building occupants in energy-saving practices, that can impact a building’s energy consumption.

Is there any other advice you would give to building owners related to complying with Energize Denver?

Yes, first and foremost building owners must be proactive and assess their current energy usage then develop attainable plans to achieve and finance the required reduction targets.  They must also balance the risks posed by and obligations owed to the tenants of their buildings. And of course, if you need legal advice, consult with an expert who is knowledgeable about in the field of advanced and renewal energy.

Zaki Robbins’ practice covers a broad range of corporate and transactional matters, focusing on mergers and acquisitions, corporate & real estate finance, as well as general corporate, transactional, and governance matters. In addition, Zaki has substantial experience in the field of advanced and renewable energy, where he handles matters involving energy generation and storage, construction, distribution, and investment and finance. In addition to his day-to-day representation of founders, executives, and boards, Zaki has served as an author, speaker, and presenter at conferences and continuing legal education programs for lawyers and other participants in the corporate and renewable energy industries.

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