FOR IMMEDIATE RELEASE
April 4, 2025
Contacts:
Josh Valentine, SWEEP | jvalentine@swenergy.org
Christine Brinker, SWEEP | cbrinker@swenergy.org
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[DENVER, CO] – Colorado and Denver secured a major legal victory on Friday as a U.S. District Court judge dismissed a lawsuit challenging energy efficiency regulations for large buildings.
The lawsuit, filed by industry groups representing corporate landlords, sought to invalidate two pivotal programs designed to reduce the energy use and energy costs of large commercial and multifamily buildings – the state’s Regulation 28 and the city’s Energize Denver program.
The ruling allows these important programs to continue, ensuring that Colorado and Denver remain leaders in energy efficiency and climate action.
“We commend both the state of Colorado and Denver for standing firm on these important policies,” said Christine Brinker, Senior Buildings Policy Manager for the Southwest Energy Efficiency Project (SWEEP), who provided expertise for the design and adoption of both policies. “As these programs move forward, they will continue to provide economic, health, and sustainability benefits for residents, small businesses, and property owners alike.”
About benchmarking and Building Performance Standards
Regulation 28 requires buildings over 50,000 square feet to measure their energy usage compared to similar properties, in a policy known as “benchmarking.” Energize Denver is similar but applies to buildings over 25,000 square feet. Benchmarking allows building owners, investors, and tenants alike to see how one property’s energy use compares to others and helps prioritize which buildings need improvements.
Both the State and City policies then take the next step by setting targets for low-performing buildings to achieve over time, in a policy known as Building Performance Standards. Together, benchmarking and Building Performance Standards provide the data-driven foundation and the accountability needed to drive meaningful improvements in building energy use.
“We have always had confidence in the legality, the design, and the effectiveness of these policies,” said Brinker. “They were crafted with very extensive input from building owners, real estate developers, utilities, building energy experts, and community advocates, and they built upon similar policies prevalent across the country.”
Refuting the claims and countering misinformation
In filing the lawsuit, the corporate landlord groups alleged they would be forced to remove functional heating and cooling equipment and purchase new systems that are better than federal minimum standards, which the court found was both incorrect and unjustified. Instead, the policies have a flexible framework that allows each building owner to choose their own path to reach their target using countless combinations of energy efficiency measures. Both the Colorado and Denver policies also contain exemptions and adjustments for properties that have unique circumstances or financial hardships.
The court dismissed the case “without prejudice,” allowing the plaintiffs the return within 21 days with more concrete proof that they cannot pursue any other energy efficiency measures or seek the exemptions or adjustments included in the laws.
Supporting property owners and communities
Energy efficiency measures have a proven track record of delivering substantial benefits, including cost savings for occupants, increased property values for owners, and job creation in the energy sector, while making indoor spaces more comfortable and healthier. The upheld regulations are expected to drive innovation and investment in energy-saving technologies across the state.
Colorado’s policy aims to improve energy efficiency across large buildings by 20% by 2030, and the Denver policy aims to reach near-zero emissions from the building sector by 2040.
“Colorado has the tools, workforce, expertise, and financial incentives to help buildings with whichever options they choose,” said Brinker. “We know change is never easy, but improving the energy performance of our buildings is increasingly necessary and unavoidable.”
Upcoming changes
Separate from the lawsuit, both the state and the city have been working closely with other building owners and stakeholders to improve the programs. The city recently finalized changes to the Energize Denver to make compliance more practical and achievable – including extended timelines, reduced penalties, expanded financial support, and additional tools and resources. The state legislature, meanwhile, is looking to ease near-term targets, simplify compliance for many of the buildings, and establish a long-term funding source to provide more technical assistance to building owners, in House Bill 25-1269. SWEEP is highly supportive of both efforts.
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The Southwest Energy Efficiency Project (SWEEP) is a public interest organization promoting greater energy efficiency and clean transportation in Arizona, Colorado, Nevada, New Mexico, Utah, and Wyoming. swenergy.org
Rewiring America is a nonprofit dedicated to electrifying homes, businesses, and communities to reduce emissions, lower energy costs, and create jobs. rewiringamerica.org
Earthjustice is a nonprofit environmental law organization working to protect health, wildlife, and clean energy solutions through the power of law. earthjustice.org
