# The Energize Denver Lawsuit Just Got Real. Comply Anyway. > A federal judge let part of the trade groups' challenge to Energize Denver and Building Performance Colorado move forward. Here's what the September 30 ruling actually decided, what it didn't, and why the safest move for your building is still to keep complying. - Source: https://energyzedworld.com/bps/energize-denver-lawsuit-ruling-comply-anyway - Publication: EnergyzedWorld (https://energyzedworld.com) - Publisher: Eenovators Limited — https://eenovators.com - Category: Building Performance Standards - Published: 2026-10-26 - JSON: https://energyzedworld.com/api/posts/bps/energize-denver-lawsuit-ruling-comply-anyway.json ## TL;DR - On September 30, 2026, a federal judge let the trade groups' EUI preemption claims against Energize Denver and Regulation 28 move forward. That is a pleading-stage finding, not a win for the owners. - The greenhouse gas claim was dismissed, and the consumer-appliance claims were dismissed as filed too late. Commercial and industrial equipment claims remain. - Nothing was struck down, and the order didn't pause enforcement of either program. - Keep complying: the Building Performance Colorado report and fee are due November 1, and Energize Denver reports are due June 1. - Prioritize measures that cut both energy and emissions. They hold their value no matter how the case ends. --- Over the past few weeks, almost every conversation I've had with a Denver building owner or property manager has drifted to the same question: *"Didn't a judge just throw out Energize Denver?"* No. But something real did happen, and it's worth understanding, because it's going to shape how a lot of owners make decisions over the next year or two. So let me walk you through it the way I'd explain it over coffee. ## What happened on September 30 Four trade groups sued the State of Colorado and the City and County of Denver in 2024: the **Colorado Apartment Association**, the **Apartment Association of Metro Denver**, the **Colorado Hotel and Lodging Association**, and the commercial real estate group **CREDA Colorado** (formerly NAIOP Colorado). They're challenging two programs: the state's **Regulation 28** (Building Performance Colorado) and Denver's **Energize Denver** ordinance. Their argument rests on a federal law called the **Energy Policy and Conservation Act (EPCA)**. EPCA sets national efficiency standards for covered equipment, such as HVAC units and water heaters, and generally stops states and cities from setting their own efficiency rules for that equipment. The owners say a building-wide energy-use-intensity (EUI) target is really an equipment mandate in disguise. If you can't hit the target without ripping out working, federally compliant equipment before the end of its life, they argue, the target is preempted. Denver and the state asked the court to dismiss the case. On September 30, U.S. District Judge Regina M. Rodriguez gave a split decision. ![What the court decided on September 30, 2026](/images/posts/bps/energize-denver-lawsuit-ruling/court-decision.png) - **The EUI claims move forward.** The court found the owners had *plausibly* alleged that building-wide energy reduction mandates could fall within EPCA's reach. That's a pleading-stage finding. It means the case continues, not that the owners have won. - **The greenhouse gas claim was dismissed.** Following earlier decisions in Maryland and Washington, D.C., the court wasn't persuaded that Regulation 28's GHG-intensity cap is preempted. - **The consumer-appliance claims were dismissed as too late.** The court held those were filed after the two-year limitations period. Claims about commercial and industrial equipment are still in the case. - **Nothing was struck down.** This isn't a final judgment, and the order didn't pause enforcement of either program. If you want the legal deep dive, ArentFox Schiff published a [clear write-up on October 26](https://www.afslaw.com/perspectives/energy-cleantech-counsel/colorado-ruling-keeps-federal-preemption-challenge-building), and the [court's order](https://docs.justia.com/cases/federal/district-courts/colorado/codce/1:2024cv01093/233303/122) is public. I also touched on the ruling in my October 12 post, [Your Lender Is Now Reading Your Energize Denver Scorecard](/bps/your-lender-is-now-reading-your-energize-denver-scorecard/). ## The bigger picture: courts don't agree This case doesn't sit in a vacuum. The Ninth Circuit struck down Berkeley's ban on gas piping in new buildings, a decision that helps the owners' theory. The Second Circuit went the other way on New York City's restrictions on fossil fuels in new buildings. On July 2, the Ninth Circuit upheld Southern California's zero-NOx appliance standards in the *Rinnai* case. According to ArentFox Schiff, the reported deadline to ask the U.S. Supreme Court to review the New York case is **November 24**, absent an extension. Translation: this is going to take a while, and the law is genuinely unsettled. Nobody can tell you today how it ends. ## So what should you actually do? Comply. Here's my honest take as someone who works on these buildings every week: **the lawsuit hasn't changed a single one of your obligations.** The deadlines are real, enforcement is real, and Building Performance Colorado has already started enforcing benchmarking. Even the law firm on the owners' side says it plainly: the ruling is "not a final preemption judgment or permission to disregard applicable requirements." There's also a practical reason. Look at what survived: the *emissions* side of the rules held up. If the EUI piece ever does fall, compliance would likely lean harder on emissions-based paths. Work that cuts **both** energy and emissions holds its value either way. Doing nothing doesn't. And the program is working. Denver says **44% of covered large buildings already meet their final efficiency target**, up from 15% in 2022, and total reported energy use from large buildings has dropped 9% since 2018 ([City of Denver, Sept 2, 2026](https://www.denvergov.org/Government/Agencies-Departments-Offices/Agencies-Departments-Offices-Directory/Climate-Action-Sustainability-and-Resiliency/News-Events/News/2026/Energize-Denver-Updated-Rules)). Your neighbors are getting there. ## A practical compliance checklist ![Compliance checklist for Colorado and Denver building owners](/images/posts/bps/energize-denver-lawsuit-ruling/checklist.png) 1. **Hit the state deadline first.** If your building is 50,000 sq ft or larger, the [Building Performance Colorado](https://energyoffice.colorado.gov/bpc) benchmarking report and fee are due **November 1** every year. Late reports and fees are subject to penalties. 2. **Keep Denver benchmarking on schedule.** Energize Denver reports for buildings 25,000 sq ft and larger are due **June 1** each year for the prior calendar year. If your building is covered by both, report to both. Denver's energy efficiency compliance counts toward the state's performance targets, but it doesn't replace state reporting or fees. 3. **Clean up your data.** Keep your utility bills, meter lists and ENERGY STAR Portfolio Manager records tidy and complete. Accurate data is the foundation of your target, and of any argument you'd ever want to make about it. 4. **Know your target and your timeline.** For most Denver large buildings, the interim target year is now **2028** and the final target is **2032** ([Energize Denver Navigation Center](https://www.energizedenver.org/large-buildings-overview)). 5. **Use the flexibility that exists.** Denver's updated rules took effect **August 27, 2026**, with revised technical guidance on **September 1**, adding target adjustments, timeline options and alternate compliance paths. At the state level, you can change your 2030 compliance pathway without extra documentation until **November 1, 2028**. 6. **Get a real study before you spend capital.** An energy assessment or efficiency study, ideally backed by metered data, tells you which measures actually move your EUI and emissions, and in what order. 7. **Prioritize measures that cut both energy and emissions,** like controls, LED lighting, scheduling and right-sized equipment at end of life. They hold their value no matter how the case ends. 8. **Watch the case, but don't wait on it.** I'll keep an eye on it here. ## A quick word before you go I'm an energy engineer, not a lawyer, so treat this as news and general perspective, not legal advice. If you're making a big decision based on the lawsuit, talk to your attorney. What I *can* help with is the engineering side: benchmarking, metering, and efficiency studies that turn a compliance requirement into a plan that saves money. That's the work I do every day with Aim Dynamics, including BPS compliance studies through Efficiency Works. If your building is wrestling with any of this, reach out. I'm always happy to talk it through. *Chris Mbori, Business Development and Energy Engineer, Aim Dynamics* ## Sources 1. [ArentFox Schiff, "Colorado Ruling Keeps Federal Preemption Challenge to Building Energy Mandates Alive," Oct 26, 2026](https://www.afslaw.com/perspectives/energy-cleantech-counsel/colorado-ruling-keeps-federal-preemption-challenge-building) 2. [U.S. District Court for the District of Colorado, Order in *Colorado Apartment Association et al. v. Ryan et al.*, No. 24-cv-01093, Sept 30, 2026](https://docs.justia.com/cases/federal/district-courts/colorado/codce/1:2024cv01093/233303/122) 3. [Colorado Energy Office, Building Performance Colorado](https://energyoffice.colorado.gov/bpc) 4. [Energize Denver Navigation Center, Large Building Compliance Overview](https://www.energizedenver.org/large-buildings-overview) 5. [City and County of Denver, "Energize Denver Adopts Updated Rules, Improves Supports for Buildings," Sept 2, 2026](https://www.denvergov.org/Government/Agencies-Departments-Offices/Agencies-Departments-Offices-Directory/Climate-Action-Sustainability-and-Resiliency/News-Events/News/2026/Energize-Denver-Updated-Rules) ## Frequently asked questions ### Did a judge throw out Energize Denver? No. On September 30, 2026, the court let the energy-use-intensity (EUI) preemption claims move forward, dismissed the greenhouse gas claim, and dismissed the consumer-appliance claims as too late. Nothing was struck down. ### Does the ruling pause enforcement of Energize Denver or Building Performance Colorado? No. This isn't a final judgment, and the order didn't pause enforcement of either program. The deadlines are still real. ### What is the lawsuit actually arguing? The trade groups argue that the federal Energy Policy and Conservation Act (EPCA) preempts building-wide EUI targets, because hitting them could require ripping out working, federally compliant equipment before the end of its life. ### When is the Building Performance Colorado deadline? If your building is 50,000 sq ft or larger, the Building Performance Colorado benchmarking report and fee are due November 1 every year. Late reports and fees are subject to penalties. ### What should building owners do while the case is pending? Keep complying. Keep benchmarking on schedule, clean up your data, know your target and timeline, use the flexibility in the rules, get a real study before spending capital, and prioritize measures that cut both energy and emissions. ### Is this legal advice? No. It's news and general perspective from an energy engineer, not a lawyer. If you're making a big decision based on the lawsuit, talk to your attorney. --- Content © Eenovators Limited. Quote with attribution and a link to https://energyzedworld.com/bps/energize-denver-lawsuit-ruling-comply-anyway. For energy audits, monitoring deployments, M&V or BPS compliance, contact info@eenovators.com or https://eenovators.com/contact.