retrofitting existing buildings to convert natural gas equipment to electric space and water heating , meeting energy efficiency targets , using a combination of efficiency and natural gas conversion measures , or installing on-site renewable power generation .
How does Energize Denver compel building owners to electrify equipment ?
The regulations provide a 10 % increase in required EUI targets for covered buildings that demonstrate their building is 80 % electrified , emphasizing the push towards electrification .
What penalties are in place for noncompliance with Energize Denver ?
Penalties for covered buildings failing to meet EUI building performance standards are steep , with fines up to $ 0.70 for each required kBtu reduction not achieved . These penalties can result in significant and ongoing fines for building owners .
How can covered buildings apply for timeline adjustments ?
Covered building owners can apply for timeline adjustments for deadlines in 2024 , 2027 , and 2030 based on factors such as end of major equipment system life , major renovation , change of ownership or tenant , and financial distress . These applications are handled individually by Denver ' s Office of Climate Action , Sustainability , and Resiliency ( CASR ).
What challenges do covered buildings face under Energize Denver ?
Covered buildings may face challenges in meeting stringent energy efficiency requirements , potentially impacting marketability and financing , as well as affecting and disrupting residing residents .
The fines , if not paid within 180 days , become a perpetual lien on the covered building , taking precedence over other liens , except for general taxes and prior special assessments .
About the Litigation Funding Strategy
What is the purpose of the voluntary " Assessment " mentioned in the communications ?
The voluntary " Assessment " is a term used for a voluntary contribution from members to support legal costs associated with challenging State and City of Denver energy regulations . It is part of a funding strategy aimed at protecting members from potential Billions of dollars in expenses related to converting natural gas to electric energy .
CAA has set up a specific fund account called " Fair & Affordable Energy ", which contributions can be made to , or directory to CAA .
Who is being asked to contribute , and how are funds collected used ?
The group targeted for requested contributions includes Apartment Association members and non-members with buildings over 25,000 sq . ft . that will be impacted . Funds collected will be specifically used for legal and research expenses associated with energy regulations . Administrative costs are covered by AAMD & CAA general funds .
How has the response been from members , and is contribution mandatory ?
The response from members has been positive and supportive of the funding strategy . However , contribution is entirely voluntary , and there are no plans to mandate contributions . The association ( s ) have the financial capacity to support any potential shortfall from the membership .
What is the funding strategy and how is it determined ?
The funding strategy involves a per-building assessment , with buildings between 25,000-50,000 sq ft assessed $ 1,250 , and buildings over 50,000 sq ft assessed $ 2,500 . The strategy was approved by the AAMD Board of Directors , CAA Board , Joint Legislative Advisory Council , and the AAMD Alliance .
How is the legal team involved , and who leads the effort ?
The legal team leading the effort is GreenbergTraurig , a reputed firm for these types of cases . Paul Seby leads the team at GT . The Association already invested to participate as a formal party to the Colorado Regulation 28 rulemaking process .
How can companies provide support beyond financial contributions ?
Beyond financial support , the Association seeks individuals with experience on the issues of conversion costs , time frames , and negative impacts on residents to help articulate the challenges . Additionally , a professional fundraising group is engaged to seek support from other industries negatively impacted by these regulations .
What happens if more money is raised than needed ?
In the unlikely event of excess funds , a pro rata share refund policy is in place to ensure responsible handling of contributions .
For any additional questions or clarification , feel free to reach out to the Association directly . Thank you for your consideration and support . www . aamdhq . org FEBRUARY 2024 TRENDS | 19