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 energy-efficiency 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.