PROTECTING OUR INDUSTRY
BY MARK WILLIAMS , EXECUTIVE VICE PRESIDENT
New Energy Regulations to be Challenged
As you ’ re probably aware by now , the State of Colorado and the City of Denver through erroneous regulations and benchmarking are effectively outlawing natural gas in buildings over 50,000 square feet ( State ) and 25,000 square feet ( Denver ). This will impact an estimated 8,000 buildings in Colorado , including hundreds of AAMD member buildings . Conversion over the next few years to electricity will be extremely costly and disruptive ; but only have an estimated . 0007 % impact on our global climate if 100 % successful !
AAMD and CAA took serious action against these rulings & regulations , and have strategically placed our organization to fight these battles in State and Federal Court . AAMD and CAA have already invested over $ 175,000 through our legal team of Greenberg Traurig to be formal participants in the rulemaking process . AAMD & CAA have set the foundation to have legal standing to litigate these new requirements . We anticipate the next phase of the litigation ( suits requesting injunctive relief in federal and state district courts ) process will exceed a million dollars . When weighed against the potential conversion costs currently estimated between $ 6-8 BILLION – clearly this is too important of an issue not to implement the lawsuit .
The AAMD Board of Directors , the CAA Board of Directors , our Joint Legislative Advisory Council , and the AAMD Alliance – ( ALL 4 governing groups ) voted to approve a member financial assessment schedule to help fund this important litigation . Members with buildings greater than 25,000 ft .² in Denver are being asked to contribute $ 1,250 towards the Association ' s million dollar litigation fund . Members with buildings greater than 50,000 ft .² outside of Denver are being asked to contribute $ 2.500 . These contributions are a tiny fraction of the cost of either compliance with or independent litigation of these burdensome regulatory requirements .
Beyond financial support , we ’ re hopeful that you or someone within your company , would have some experience on the issues of conversion costs , time frames , negative impacts on residents and impracticality of conversion projects . We ask each of you to think through and possibly identify an individual to help tell the story of how costly conversion from natural gas will be .
Finally , we are engaging a professional fundraising group to reach out to the many other industries that are negatively impacted by these regulations . We hope to reduce the portion of the burden of the cost of litigation to keep it from falling solely on multifamily rental housing . However , regardless of what other industries step up to answer the call , it is clear that if we don ’ t pursue these legal avenues , others will sleep until it ’ s too late .
See page 7 for important information and an outline of the facts regarding these regulations .
Legal Challenge
• Colorado Apartment Association and Apartment Association of Metro Denver have engaged attorney Paul M . Seby of Greenberg Traurig to develop lawsuits for both federal and state courts .
Paul M . Seby , Greenberg Traurig
Next Steps
• CAA and AAMD are working to build a coalition of “ covered building ,” energy providers , utilities and other impacted stakeholders to fund the legal challenge .
• CAA and AAMD have already assumed the costs for the initial legal review , complaint filings in federal and state courts , staff time and other expenses .
• CAA and AAMD ’ s Board and members are committed to seeing this legal challenge through , but your support and contributions will allow our legal team to be more impactful and have the evidence and witnesses necessary for this scale and scope of a legal challenge .
Both Reg . 28 and Energize Denver have fast approaching compliance deadlines , so we must act now .
For more information : Bill Ray | 303-885-1881 | bill @ wr-communications . com
6 | TRENDS NOV / DEC 2023 www . aamdhq . org