Denver takes steps to cut greenhouse gases from commercial buildings

Denver is rapidly moving towards electrifying buildings and homes by eliminating gas stoves and chimneys.

The news is driving: Denver City Council unanimously passed an ordinance last week that requires large office and apartment buildings to use solar power and switch to electrical and water heating systems by 2030.

• The measure was passed without any formal objection and with the support of the local commercial property development association.

Why it matters: Natural gas used in commercial and apartment buildings in Denver is responsible for 49% of the region’s greenhouse gas emissions, according to the city’s climate protection bureau.

• Lowering these levels could help contain Denver’s carbon footprint and reduce building emissions by about 80% over the next two decades, city studies show.

The big picture: The newly passed ordinance is part of Denver’s broader plans to cut emissions and be 100% renewable energy by 2040.

Details: Denver ordinance stipulates that buildings larger than 25,000 square feet will see 30% energy savings or face penalties by the end of this decade.

• Large building owners must start converting their systems from natural gas heating to electric heating by 2025 when building systems need to be modernized or older systems need to be replaced.
• And commercial building owners with smaller areas between 5,000 and 25,000 square meters must introduce all LED lighting by 2030 or obtain at least 20% of their electricity from solar systems.

Yes but: According to findings from RMI, a renewable energy think tank in Boulder, all-electric buildings could be more expensive to run than buildings that run on natural gas.

• Moving from low operating costs to natural gas-fired buildings is an equity and affordability issue that needs to be addressed, city officials say.
• To help, Denver officials will start offering financial incentives starting in 2023 to encourage building owners to adopt greener systems, half of which will be prioritized for owners with fewer resources.

What’s next: In January, a committee will begin discussions to push a regulation that will require electrification of all new buildings and apartments by 2030, climate bureau spokeswoman Winna MacLaren told Axios.

• Officials also plan to launch a similar process to change city rules to encourage electrification of industrial and manufacturing sites, which are estimated to account for 10% of the city’s greenhouse gas emissions.
• But, but, but: Similar measures have proven controversial in other states and communities where the natural gas industry has pushed back – some states have passed laws preventing communities from banning natural gas connections in new buildings.

This story first appeared in the Axios Denver newsletter, which is designed to help readers get faster and smarter on the most momentous news that unfolds in their own backyard.