We want to work collaboratively with you toward energy efficiency.
Upgrading your building’s performance to meet Energize Denver targets takes time, planning, and funding. The city is here to help. Every building is different, and compliance is not one-size-fits-all. Some need a simple tune-up, while others require more work over time. We’re committed to reducing costs and increasing options so your path to compliance makes sense for your building. We’ll help you navigate the process, develop an improvement plan, and find financial support—all without incurring penalties.
We’ve designed the policy to allow buildings the flexibility to get into compliance using a pathway that works for them. There are a variety of adjustments and extension options that buildings can use to customize their pathway to compliance.
Review the options below to see which may work for you and your building. Making full use of these options is a great way to bring your energy efficiency target within reach.
Not sure which options to pursue? We recommend that you contact our Help Desk to discuss your building and the options that may work best for you. You can also look at Section 5 in Technical Guidance for more details about each of these items.
Compliance Option Frequently Asked Questions
My building is on the downtown district steam loop. What are my options for compliance?
Just because your building is on district steam does not mean it can't be high performing. For instance, 15% of our steam buildings already meet their final energy efficiency targets!
We are working with Xcel Energy to examine how to decarbonize the steam loop at a system level. Because of this, we’d rather you not upgrade expensive equipment until a plan is completed. You have the option to apply for a Timeline Extension. This will allow you to delay decisions on the equipment attached to the steam system. You’ll still need to address all of the other energy use in your building in the meantime (like improving operations, lighting, and building automation systems, etc.).
If I had a tenant change, do I need to apply for a Target Adjustment?
Only if the new tenant is a different building use type than the previous tenant.
For example, if the previous tenant was an “office” use type and the new tenant is also an “office,” there’s no need for a target adjustment. If the previous tenant was an "office" use type and the new tenant is a "restaurant" use type, you will need a target adjustment. This is to reflect the higher energy use of a restaurant compared to an office.
Reach out to the Energize Denver Help Desk to help you with this.
I was told that there are energy service capacity issues at my location that would prevent me from upgrading my equipment or installing electric vehicle charging stations. What can I do?
We often engage with builders, developers, and customers who want upgraded service. Often this is to support building electrification. Unfortunately, we often hear that these projects are delayed or prevented. This is because distribution- and/or service-level equipment may have insufficient capacity. Denver’s goal is to work with Xcel Energy and the Public Utilities Commission (PUC) to address capacity constraints. This is critical for meeting our climate goals.
Energy service capacity constraints are one of the situations for which we will grant a timeline extension. If Xcel Energy has informed you that it does not have capacity to serve your project or you have a capacity constraint within the building, you should apply for a timeline extension. See Section 7.3.2 of the Technical Guidance for more guidance.
How much does an ASHRAE Energy Audit cost?
The cost of an ASHRAE energy audit is influenced by several factors, including:
- The audit level
- Building size and complexity
- Location
- Any required specialization
- Travel and logistical considerations
- Data availability
- The auditing firm's reputation and expertise.
Specifically, Level 1 audits are basic and thus less expensive, focusing on a general walk-through and analysis. In contrast, Level 2 audits delve deeper into energy use patterns, while Level 3 audits are the most comprehensive, targeting specific energy conservation measures.
To determine the exact cost, building owners should seek quotes from multiple audit providers, bearing in mind that prices can range from a few hundred dollars for small spaces with Level 1 needs to tens of thousands of dollars for expansive commercial areas requiring Level 3 analysis.
Checking your benchmarking to make sure you have accounted for any special benchmarking considerations that could lower your energy use or adjust your final energy efficiency target.
You can apply to adjust your building’s 2032 energy efficiency target for a variety of reasons:
- Previous benchmarking submission had one of these common inaccuracies:
- Wrong building type classification
- Inaccurate gross area square footage reported
- Inaccurate energy data that affects your baseline
- A high-intensity space (such as a restaurant) was not accounted for in the largest three building types
- Significant variations in operations, certain energy uses you could not exclude, or inherent characteristics of the building itself:
- Operating hours
- Parking
- Heated swimming pools
- Data centers
- Electric vehicle (EV) charging stations
- Adaptive reuse - the building was originally built for a different use than it is currently being used for (for example, a warehouse that was converted to multifamily housing).
- Your energy efficiency target would require more than a 42% reduction in energy use.
- Building alterations:
- Building type has changed due to a renovation
- Building has added or demolished square footage with a different or high-intensity property type
We are currently offering the following energy efficiency target adjustments, based on the Environmental Protection Agency (EPA) methods. More adjustments may be added in the future as the EPA develops additional methodology. Sections 5.4 and Appendix B of the Technical Guidance.
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Office, Retail Store, Worship Facility, Non-refrigerated Warehouse, Refrigerated Warehouse, Supermarket/Grocery Store
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Indoor Heated Swimming Pool
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Outdoor Heated Swimming Pool
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Parking – partially enclosed
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Parking – completely enclosed
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All building types with Class B data centers
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| EV Charging Stations |
All building types |
| Adaptive Reuse |
Must have changed the building occupancy classification (retroactive and for future projects). See Section 5.4.2 of the Technical Guidance for more information about adaptive reuse. |
All standard target adjustment requests will require you to submit the following:
If you are a building owner that is planning to join the Denver District Cooling Loop, please reach out to the Energize Denver Help Desk after you submit your first benchmarking report with district chilled water usage. Because you are on this loop, we will apply a target adjustment to your final target. This adjustment does not require an application.
Apply for a Standard Target Adjustment
Deadline for Target Adjustment Submissions
You can apply for a standard target adjustment at any time. However, you need to be aware of the impact the adjustment could make, not only on your final target, but also your interim target. The earlier you submit the application, the better off you will be when it comes to performance evaluation.
We must receive your target adjustment application by the end of the calendar year that is being evaluated. This will ensure we have ample time to process the application before performance evaluation begins. For example, if you want to apply for a standard target adjustment for your 2028 interim target, the deadline for submission is December 31, 2028.
Customized energy efficiency targets are available for buildings in specific circumstances.
Historical and Unique Buildings
Who Qualifies for this?
- Buildings on Denver’s Historic Landmarks and Districts list on the Community Planning and Development Landmark Preservation website
- Buildings on the National or Colorado State Register of Historic Places
- Buildings with specific building classifications:
- Aquarium
- Convention Center
- Ice/Curling Rink
- Indoor Arena
- Museum
- Other – Entertainment/Public Assembly
- Other – Technology/Science
- Transportation Terminal/Station
- Zoo
If you believe you are eligible for a customized target, please reach out to the Energize Denver Help Desk. We will walk you through the process. See Section 5.6.1 in Technical Guidance for more information about this process.
Apply for a Historical and Unique Building Target Adjustment
Custom Targets
Some buildings may take all available steps and still cannot determine a viable way to reach their final energy efficiency target. If you have:
- Received an approved Standard Target Adjustment
- Performed an energy audit
- Explored renewable energy options
We can work with you on the custom target process.
The first step of this process is to seek a more advanced energy audit. We will look at the estimated savings identified in that audit and use that as a guide to adjust your current energy efficiency target. This custom final target will be created using the estimated energy use savings from:
- Planning for Energy efficiency measures identified in the audit with less than a 20-year simple payback
- Improving the building envelop if this is identified as an issue in the energy audit
- Looking at replacing/upgrading equipment from the End of System Service Life Chart
- Examining the role of viable renewable energy options
If you believe you need to pursue a custom target, please read the requirements of the Custom Target process in Section 5.6.2 of the Technical Guidance. Reach out to the Energize Denver Help Desk with any questions.
Apply for a Custom Target
Electrification Incentive
Electric equipment tends to be much more efficient than natural gas equipment. Plus, Xcel Energy is committed to 80% or more renewable electricity by 2030. The more you electrify, the more you can take advantage of that clean energy. Plus, it’s better for indoor air quality and building comfort. The Energize Denver Building Performance Policy does NOT REQUIRE you to electrify your space or water heating equipment.
If at least 80% of your building’s total energy use comes from electricity, we will make your final target 10% easier to reach. For example, if your final target is to reach an EUI of 50, we would give you a 10% "bonus," making your new target a 55.
- For buildings that showed they get at least 80% of its energy from electricity in their last benchmarking report, we added your 10% "bonus” automatically.
- We will calculate your percent electricity every year after we receive your benchmarking report. If we find that you have reached 80% electrification, we will add the 10% "bonus" to your target before we apply renewable credits and check to see if you are in compliance.
- MAI Buildings are eligible for a Fossil Fuel Reduction Credit instead of the Electrification Incentive.
You can read more about how to get this electrification incentive in Section 5.7.2 of the Technical Guidance.
Electrification Frequently Asked Questions
What is building electrification?
Replacing natural gas systems in your building with electric equipment.
Building electrification refers most often to replacing gas furnaces and hot water heaters with heat pumps. However, fully electrifying a building also includes replacing things like gas stoves and boilers with electric alternatives as well.
What is a heat pump?
Heat pumps are an energy-efficient alternative to furnaces and air conditioners for all climates. That's right; heat pumps can heat AND cool your building or home. Like your refrigerator, heat pumps use electricity to transfer heat from a colder space to a warmer space rather than generating heat.
- In winter, heat pumps gather heat from the outdoors and move it into your building or home to warm it.
- In summer, heat pumps collect heat from your home and transfer it outside to cool your building or home.
- Heat pump water heaters collect heat from the area outside of the unit and use that heat to heat water.
Since heat pumps move heat instead of creating it, they achieve 200-300% efficiency. While natural gas is currently less expensive than electricity, more efficient heat pumps use 2-3 times less energy than gas heating systems.
Learn more about heat pumps
Will heat pumps help me reach my Performance Requirements?  
Heat pumps are much more efficient than other types of heating and cooling systems because they move heat instead of creating it. Depending on the type of existing heating in your building and on the type of heat pump installed, you may be able to reach a reduction in energy use of 5-30%.
Replacing rooftop units and furnaces with heat pumps will result in the greatest EUI reduction (24-30%). Heat pumps can also replace water heaters. For example, replacing a gas water heater with a heat pump water heater can reduce energy use by up to 15%. Heat pumps are often similar in cost to comparable gas systems, with the added benefits of reduced EUI, lower gas bills and improved indoor air quality.
I want to install electric vehicle (EV) charging stations but won’t that increase my EUI?
Denver considers the electricity used to power EV charging stations a “transportation” use, instead of a “building” use. This means you can exclude the energy can from your benchmarking report. Our Special Considerations page has instructions on excluding EV charging stations. You can also find other things you can exclude from your benchmarking.
I was told that there are energy service capacity issues at my location that would prevent me from upgrading my equipment or installing electric vehicle charging stations. What can I do?
We often engage with builders, developers, and customers who want upgraded service. Often this is to support building electrification. Unfortunately, we often hear that these projects are delayed or prevented. This is because distribution- and/or service-level equipment may have insufficient capacity. Denver’s goal is to work with Xcel Energy and the Public Utilities Commission (PUC) to address capacity constraints. This is critical for meeting our climate goals.
Energy service capacity constraints are one of the situations for which we will grant a timeline extension. If Xcel Energy has informed you that it does not have capacity to serve your project or you have a capacity constraint within the building, you should apply for a timeline extension. See Section 7.3.2 of the Technical Guidance for more guidance.
Non-emitting Thermal Energy Network Incentive
We encourage you to use "non-emitting thermal energy networks" to improve energy efficiency and reduce greenhouse gas emissions. A Non-emitting Thermal Energy Network is defined as:
"A system that is operated, owned, used, or intended to be used for distribution of a non-emitting thermal resource to two or more buildings for heating, cooling, or hot water. It includes, but is not limited to, a geothermal system or other system that uses a method of exchanging noncombustible fluids that are piped through the ground, through a wastewater treatment facility, or through other systems that circulate thermal energy to achieve a desired temperature."
We have added this incentive to encourage building owners to consider joining a district thermal network. The incentive is added to your final target and is based on:
- The building's historical use of the energy that gets moved to the district network
- The efficiency of the new equipment attached to the district network
You may still maintain connections to energy systems like gas, but the connection must be for emergency backup purposes only. Section 5.7.1 in Technical Guidance describes this in more detail.
Building owners that currently receive energy from non-emitting thermal energy networks can apply online. At least one of the following documents must be included with the application:
- Interconnection agreements with utilities
- Construction permits
- Network operational records
Application for the Non-Emitting Thermal Energy Network Incentive will be live later in 2025.
We want to see more renewable energy capacity built and added to our electric grid. Xcel Energy incentivizes a large percentage of the renewable energy projects in Denver. Xcel Energy retains the Renewable Energy Credits (RECs) in exchange for those incentives. Because of this, Energize Denver will give you credit for renewable generation regardless of who owns the RECs.
We will credit on- and off-site solar or wind power generation to the building’s total energy use before we evaluate your building's performance. For every kWh your solar and/or wind systems generate from January 1 - December 31 in your target year, we will remove 1 kWh from your building's reported energy use.
However, we wanted to further incentivize growing wind and solar systems in the City and County of Denver. For on-site and off-site renewable energy located within the City and County of Denver (not subscriptions), you will get credited with 1.5 kWh for every 1 kWh generated. We will calculate the credit on an annual basis, based on generation from the 12-month performance period being evaluated.
The renewable energy your solar and/or wind systems generated will count whether you retained the RECs or not.
Section 6 of the Technical Guidance has more details about how we measure, assess, and credit renewable energy generation.
The Performance Forecasting Calculator can help you see how renewable energy generation can affect your pathway to compliance.
Renewable Energy Installation and Contract Requirements
There are caveats for short- and long-term solar and wind installation and contracts:
Long-term Installation or Contract Requirements:
- On-site installation: You must show proof that you have installed renewable energy
- Off-site installation: You must show proof of interconnection and permission to operate. The installation must be within the State of Colorado or Public Service of Colorado territory.
- Off-site owned by third party: You must show evidence of a subscription, lease, or purchase of a share in either a voluntary renewable energy program offered by Xcel Energy OR a community project located in the State of Colorado or Public Service Company of Colorado territory. The term of purchase must be at least five (5) years and must be renewed a minimum of every five (5) years for the life of the building
Short-term Contract or Subscription Requirements:
We allow short-term contracts to assist you with your interim target only. These short-term contracts must meet several standards:
- They must be through an Xcel Energy program or a community project located in the State of Colorado or Public Service Company of Colorado territory.
- The contract must be at least 12 months long.
- The contract must cover all 12 months of the measurement period (January 1 - December 31 of the target year).
- You must renew the contract annually for maintenance of the target through the next interim target date.
- If you wish to use renewable credits for your final target, you should replace short-term contracts with long-term contracts over time.
We will allow short-term contracts for renewable generation to cover up to 20% of the building's electricity usage.
Examples of Renewables in Denver
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Type of Contract
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Solar/Wind power generated capacity on-site
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Net Metering, Solar*Rewards
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Solar/Wind power generated capacity off-site
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Multifamily building where tenants purchased solar through Community Solar Garden subscription
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Community Solar Garden Host (credit available if a portion of kWhs generated are distributed to building directly)
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Subscription for solar and/or wind power generation (5 years minimum contract)
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Subscription for solar and/or wind generation (month-to-month or less than 5 years)
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You will need to submit information on renewable energy generation every year to receive the Renewable Energy Credit. You will need to prepare the following information before going to the submission form:
- Total kWhs generated or purchased during the 12-month performance period
- Which type of installation or contract it is (long vs. short term)
- Were the RECs retained?
- A copy of the ownership paperwork or contract (you only need to submit this once)
- Upload one month’s example of a bill or report that shows the kWhs generated in that year
Apply for the Renewable Energy Credit
Renewable Energy Credit Frequently Asked Questions
Can I get the Renewable Energy Credit if I buy out-of-state renewable energy?
No. You may use renewable energy subscriptions owned by a third party. But you can only receive the Renewable Credit if: the renewable energy is located in the State of Colorado or within the Public Service Company of Colorado territory. See Section 6 in Technical Guidance for more details.
If I can't find any renewable subscription capacity or current community solar gardens are at capacity, can I get a Timeline Extension? Does being on a waitlist get me the Renewable Credit?
No. You are not currently able to get a Timeline Extension based on the availability of any renewable option. This applies regardless of waitlist status. We encourage you to explore energy efficiency and electrification measures.
The first step is to get an ASHRAE Level 2 audit of your building. Then focus on projects that improve your energy efficiency.
Can I purchase RECs to receive renewables credits instead of installing solar?
Yes. We encourage you to consider a long-term contract to buy Renewable Energy Credits (RECs). But those RECs must be from a project in the Public Service Company of Colorado territory or within the State of Colorado. Section 6 in the Technical Guidance has more detailed information about these requirements.
See How to Report Renewables
Does a building need to have full 12 months of renewables in order to have it count?
The subscription or installation must be long term but you can count your renewables if you have subscribed at any point in a performance year. For example, if the project went live in June, you could count the kWh generated from June to December that year.
If I use renewables for part of my compliance in Denver, will it count at the state level also?
Colorado and Denver have different renewable energy rules in their building performance policies. Denver uses it as a bonus to incentivize local renewable energy. Colorado is stricter about how and when renewable energy counts towards compliance.
See the Colorado Energy Office BPP
Do other types of renewable energy like geothermal or hydropower count towards my performance target?
In the April 2025 rules update, we aligned our definition of “renewable energy” with the state. Here’s the definition:
“useful electrical, thermal, or mechanical energy converted directly or indirectly from resources of continuous energy flow or that are perpetually replenished and whose utilization is sustainable indefinitely and can be measured in kWh. The term includes, if it can be measured in kWh provided, sunlight, the wind, geothermal energy, hydrodynamic forces, and organic matter available on a renewable basis such as forest residues, agricultural crops and wastes, wood and wood wastes, animal wastes, livestock operation residue, aquatic plants, and municipal wastes.”
You may apply for several types of extensions that give you more time to meet your energy efficiency targets, depending on the situation:
- Interim Compliance Hold: A two-year pause on requirements for temporary situations
- Timeline Extension: A long-term extension driven by an owner-developed compliance plan
- Residential Condominium Reserves Option: A long-term extension specifically for condominium HOAs who need more time to fundraise for building improvements
Important Note: During the 2025 benchmarking reporting year, building representatives will have an opportunity to opt-in to a timeline extension that shifts your 2024/2025 interim target deadline to 2028, eliminates the 2027 interim target deadline, and shifts your final target deadline from 2030 to 2032.
Interim Compliance Holds
The interim compliance hold is used for temporary situations, such as:
- Qualifying financial distress
- Financial solvency concerns
- Vacancy rates cause a financial solvency concern
- Lease terminations
- Redevelopment areas
- Demolition
- Adaptive reuse project timing
- Change of building ownership
- Natural or man-made disasters
- Benchmarking exemptions
- Landmark preservation commission review
- Other reasons considered on a case-by-case basis
Once you submit the application with the required documentation, we will review the materials to ensure you are eligible. Once we approve your application, we will place a 24-month pause on the performance requirements from the date of approval. Annual benchmarking still required while on an interim compliance hold. At the 12-month mark, you will check in with the city on your status in recovering from the situation. These short-term holds can be extended if needed.
Application:
Schedule a call with the Energize Denver Help Desk to discuss you situation before filling out an application. You can also read more about Interim Compliance Holds in Section 7.1 of the Technical Guidance.
We will accept applications for an Interim Compliance Hold at any time. The application for this hold requires:
- The online application form
- A narrative letter containing:
- The request for the hold,
- The allowable reason(s) for the hold
- Why the compliance hold is needed.
- A signature from a member of the building owner’s executive level leadership team
- Documentation that supports the current reason requested
- Contact information for who will provide annual updates
Apply for an Interim Compliance Hold
Timeline Extensions
You can apply for an extension to your compliance timeline. There are a variety of reasons that could make achieving your interim or final targets difficult. You can apply for a Timeline Extension that addresses just one target (such as 2028 only) or both the interim and final targets with a single application.
Reasons to seek a Timeline Extension include, but are not limited to:
- Planning for end of major equipment system life (according to service life chart in Appendix C of the Technical Guidance)
- Planning for major renovation
- Electrification of space and water heating equipment or the entire building that takes more time
- District steam loop system limitations
- Energy service capacity issues (use this template(DOCX, 25KB) to gather information from Xcel Energy)
- You are taking an innovative approach to energy efficiency in your building which results in implementation delays inherent in novel designs. Delays may include:
- A longer design development process
- Lengthier permit review process
- Extended product lead times
- Prolonged installation timelines
- Equipment troubleshooting and commissioning
- Other reasons, on a case-by-case basis
- Under-resourced buildings may qualify for additional reasons not listed, such as financing cycles for qualified affordable housing buildings, considered on a case-by-case basis
Putting together your application for a Timeline Extension is a robust process. We recommend that you read Section 7.2 of the Technical Guidance before proceeding. The Timeline Extension application for a single building requires:
- An online application form asking:
- What reasons are present in the building
- Details on justification for the delay and supporting documentation that proves the reason
- Details on your plans for renewable energy
- Required attachments*:
- An ASHRAE Level 2 Energy Audit that meets the minimum requirements
- Your Compliance Plan (using this template(DOCX, 37KB))
- The compliance plan must detail what work you will complete in the building to meet your energy efficiency target and on what timeline (see Section 7.2.2 of the Technical Guidance).
- The compliance plan must detail how you intend to complete energy efficiency projects identified in your energy audit that have a simple payback period of less than 10 years if your reason for the timeline extension is:
- End of equipment system service life
- Energy service capacity issues
- Steam loop limitations
- Operations and Maintenance (O&M) Program document that meets minimum requirements (see Section 7.2.2.3 of the Technical Guidance)
- Other documentation that would support your request (find suggestions in Section 7.2.2.4 of the Technical Guidance)
When adding a building in the Audit Template Tool, you must submit it through the "Denver Energy Audit Report." You can add the report in two different ways:
- Manually add each field through the website
- Utilize the import feature to upload your building audit.
You can utilize the import spreadsheet(XLSX, 49KB) which highlights the required fields needed in order to submit your report. It is the auditor's responsibility to review and ensure all fields are added and correct prior to submitting the report.
Apply for a Timeline Extension
Application Deadlines
We will accept Timeline Extension applications will at any time, even after we complete your performance evaluation. However, if you do not complete the compliance plan as described, we will assess penalties for noncompliance at a higher level you submit your Timeline Extension application after the target year ends. For example, if you want a Timeline Extension for your 2028 energy efficiency target, but you do not submit your application until after December 31, 2028, we will assess penalties at a higher level if you do not complete your compliance plan as described. See Section 9.2.2 of the Technical Guidance for more details on this.
Residential Condominium Reserves Option
Homeowner associations (HOAs) may need additional time to raise funding to make energy efficiency improvements. If so, they should use this option to ask for more time. This option is voluntary; condo buildings do not have to use this option if it does not help them. If a residential condominium does not need extra time for fundraising, but does need extra time for other reasons, they should use the Timeline Extension process.
Eligible Reasons
- The balance of the building’s capital reserves fund is less than 30% of what the reserve study recommends is needed for the work identified.
- Extra time is needed to raise funding for energy efficiency projects or major equipment replacement through dues or special assessments.
- Other financial limitations on a case-by-case basis.
Application
The application requires the same items as the Timeline Extension (see above). In addition, the Residential Condominium Reserves Option application requires:
- An online application form
- A compliance plan that includes:
- An overview of all energy efficiency measures (EEMs), operations and maintenance improvements, and/or renewable plans necessary to reach the final target.
- How the HOA will complete HOA-controlled EEMs that are identified in the energy audit that have less than a 5-year simple payback. These items need to be completed within three years of approval.
- A plan and timeline for each individual condo owner to complete their EEMs and how that information will be collected and submitted to the city
- Individual condo owners can choose renewable subscriptions in lieu of EEMs
- A fundraising plan that includes:
- Details on why extra time is needed to raise the funds
- What funding is needed
- How the HOA will collect the funds
- The timeline needed
- Supporting documentation could include:
- A copy of the reserve study
- Current dues or assessments collected
- A financial analysis of the plan
Apply for the Residential Condominium Reserves Option