BOARD PERSPECTIVE
BY MARK WILLIAMS , BEXECUTIVE VICE PRESIDENT
Working for Fair and Affordable Energy Solutions
In March of 2023 , after evaluating the devastating impact of poorly thought-out energy regulations coming out of the State and City of Denver , the Apartment Association took bold action . We began the process of educating members about the billions of dollars in costs associated with complying with the regulations , as well as studying our options of litigation to fight the regulations . Since that time , AAMD and CAA have invested substantial resources and money into the litigation strategy . We ’ ve also held a multitude of live and zoom meetings educating our members on the progress of this action .
Last month , AAMD & CAA were joined by the Colorado Hotel and Lodging Association and National Association of Industry & Office Properties ( NAIOP Colorado ) in filing a lawsuit in the U . S . District Court to challenge the building performance mandates established in Colorado Regulation 28 and Energize
Denver . The lawsuit contends these mandates violate the federal Energy Policy and Conservation Act ( EPCA ), which prohibits state and local regulations that are more stringent than federal law . EPCA ’ s goal is to set consistent and nationwide energyefficiency standards , including systems for large buildings like apartments , hotels and commercial buildings in Colorado .
AAMD & CAA — along with our partners in the lawsuit — participated in the public processes that resulted in both Reg . 28 and Energize Denver . We provided input on the technical and economic issues associated with improving the energy efficiency of buildings , particularly the challenges of retrofitting existing buildings to meet the standards that were being proposed . Our shared goal was final regulations that combined the aspirational goals of reducing carbon emissions from the built environment and the realities of implementation . Unfortunately , our industry ’ s input was largely ignored , resulting in impractical and costly mandates that will increase costs , displace tenants , and divert capital and other resources from more effective energy efficiency strategies .
Ultimately , these regulations will seriously increase the cost of living in Denver and in Colorado . Additionally , the regulations will impose new and unexpected burdens on the real estate sector already suffering from high interest rates , and create serious headwinds for Colorado ’ s economy .
The boards of our four partner organizations felt it was imperative to quickly address the myriad concerns with these regulations — and at this point , the only remaining pathway available is a legal challenge to both regulations . We will continue to keep you updated as the lawsuit moves forward .
Mark Williams is the Executive Vice President at Apartment Association of Metro Denver
6 | TRENDS MAY 2024 www . aamdhq . org