Federal Court Weighs Whether Building Emissions Rules Exceed Local Authority
Magistrate Judge Kathryn Starnella recommended that a lawsuit challenging Denver’s Energize Denver ordinance and Colorado’s Regulation 28 move forward, finding that commercial property groups have standing to argue the policies violate federal law. The Colorado Apartment Association, Apartment Association of Metro Denver, Colorado Hotel and Lodging Association, and the Commercial Real Estate Development Association filed the suit. Denver plans to bring in outside counsel to defend the rules, which require large commercial properties and apartment complexes to meet energy efficiency targets and reduce greenhouse gas emissions by 2032.
Starnella wrote that the plaintiffs plausibly alleged the regulations bear an impermissible connection to products covered under the federal Energy Policy and Conservation Act, which the property groups say prevents local governments from regulating HVAC and water-heating systems. She rejected the city’s argument that the case was not ripe for review, writing that EPCA preemption is a legal question about regulatory authority rather than future outcomes. Federal Judge Regina Rodriguez will decide whether to adopt Starnella’s recommendation after reviewing objections due Friday.
Energize Denver requires buildings over 25,000 square feet to become 30% more energy efficient by 2032 and aims to eliminate 80% of their greenhouse gas emissions. As of late 2025, 35% of covered buildings were in compliance, up from 15% in 2022. Commercial buildings accounted for 43% of Denver’s greenhouse gas emissions in 2024. The city’s climate office said most compliant buildings still use gas systems, countering the lawsuit’s claim that the policy effectively mandates electrification.
Rodriguez initially dismissed the lawsuit in 2025 but allowed a revised version to proceed. The Sierra Club, Natural Resources Defense Council, Colorado Solar And Storage Association, and Coalition For Community Solar Access intervened in support of the regulations. The U.S. government filed a notice in June indicating it may participate if the case advances past dismissal motions. Starnella found that claims regarding consumer products under Energize Denver are time-barred, but those concerning industrial and commercial products can proceed.
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