Denver building owners face potentially millions in fines for failing to comply with energy requirements

Denver is offering carrots and sticks — very big sticks — in its efforts to cut carbon emissions and electrify buildings larger than 25,000 square.

The fine can be as much as $0.70 per kBtu — a measure of heat — per year over an energy-savings target set by the city.

For a 150,000 square-foot office building that overshoots its energy savings goal by 9.5 million kBtu by 2030, the owner could face a cumulative penalty of more than $2.8 million, according to documents outlining penalties from the Denver’s Office of Climate Action, Sustainability and Resiliency.

A building that hits its target in 2031 but goes out of compliance in 2033 and 2034 could potentially face a penalty of $226,500, the documents showed.

Dave Davia, CEO for the Rocky Mountain Mechanical Contractors Association, a construction trade organization, urged officials to be "thoughtful" in pursuing energy mandates. 

“The move to decouple from fossil fuel and move towards an all-electric energy environment is going to be challenging, especially within the timeframes that they've outlined,” said Davia. “So, for example, in Denver, getting a permit through the process for site development and things like that is about a two-year process right now."

He added: "And so, 2026 is coming up upon us. What are we doing with the projects that have yet to be permitted?"

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