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Denver Backpedals on Energy Usage Regulations
Thursday, March 13, 2025
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Regulation rollback: After years of pushing buildings to comply with energy mandates, Denver is now rolling them back to appease the real estate industry.
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San Francisco was the first municipality to enact energy efficiency mandates for buildings to help the city meet its sustainability goals. Since San Francisco’s green building ordinance was passed in 2008, 55 other cities have followed suit. Over time, these regulations expanded to include existing buildings, most notably New York City’s Local Law 97, which imposed hefty fines on owners who failed to comply with required upgrades. But now, with Donald Trump winning the presidential election, the political climate has shifted, and some cities are considering rolling back their energy efficiency regulations. The first to do so is Denver, whose mayor announced that he would loosen the rules for its “Energize Denver” building performance policy.
After months of negotiating with landlords, Mayor Mike Johnston decided to push back Denver’s current energy usage targets and reduce penalties for non-compliance by up to half. The new regulation also allows building owners to apply for extensions—enabling them to wait until heating and cooling systems need replacing—and creates a new rebate program that will subsidize staff training and energy audits. In a statement about the move, Johnston explained, “This is the heart of Denver’s brand. We are pro-business and we are pro-climate.”
So far, Denver is the only city that has followed the federal government’s lead in easing sustainability restrictions. But, if Mayor Johnston succeeds in appeasing conservatives and raising more money for the real estate industry, other mayors might adopt a similar approach.
While there have not been large-scale protests by citizens, the real estate industry has lobbied intensively for less stringent mandates—efforts that are now bearing fruit. One concern early on was that overly demanding regulations would provoke pushback. Going forward, city officials will need to use both incentives and penalties to encourage building owners to improve energy efficiency—or they risk facing challenges in financing their campaigns and securing voter support.
Overheard
It's been encouraging to see an increased focused on housing codes' costs. But surprisingly few have taken on the increasing burden of energy-efficiency codes. These can cost tens of thousands of dollars and offer fewer benefits than advertised. My @CivitasOutlook (below).
— Judge Glock (@judgeglock)
1:39 PM • Mar 12, 2025
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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.
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