Energy Benchmarking and Building Performance Standards: What Colorado Building Owners Need to Know in 2026
If you own or manage a commercial building over 50,000 square feet in Colorado, you've probably heard about energy benchmarking and Building Performance Standards (BPS). Maybe you've even received notices from the Colorado Energy Office (“CEO”). But if you're like many building owners I talk to, the details remain fuzzy—and with the next reporting period opening March 2026, now's the time to get clear on what's required. We’ve worked with building owners across Colorado who are facing these exact requirements.
Here's what you need to know about these requirements, why they matter for your bottom line, and how to avoid penalties that can reach $5,800 monthly for ongoing non-compliance.
What Is Energy Benchmarking?
Energy benchmarking is essentially a report card for your building's energy performance. Using EPA's ENERGY STAR Portfolio Manager tool, you track and report your building's energy consumption, then compare it against similar buildings nationwide or against your own historical usage.
In Colorado, House Bill 21-1286 requires annual benchmarking reports for commercial, multifamily, and public buildings of 50,000 square feet or larger. Recent legislative changes under HB 25-1269 have shifted future reporting deadlines to November 1 annually, starting in 2026.
Think of benchmarking kind of like routine blood work during an annual health check-up with a doctor. It tells you where your building stands—whether you're using less or more energy than comparable buildings around the country. Buildings with high ENERGY STAR scores (75 or above) can even qualify for ENERGY STAR certification, which enhances property value and marketability.
Building Performance Standards: Beyond Reporting
While benchmarking measures performance, Building Performance Standards require you to actually improve it. This is where many building owners hit a wall.
Colorado's BPS program, administered by the CEO and adopted by the Air Quality Control Commission on August 17, 2023, establishes mandatory greenhouse gas emission reduction targets. The original legislation (HB 21-1286, the "Energy Performance for Buildings" statute) required covered buildings to collectively achieve a 7% reduction by 2026 and 20% by 2030, measured against 2021 baseline levels.
Recent legislative changes under amendment HB 25-1269 ("Building Decarbonization Measures"), passed in May 2025, have made the 2026 targets non-enforceable goals rather than strict requirements—meaning no penalties for missing them. However, the 2030 targets remain mandatory and unchanged at 20%. Building owners also now have the option to use 2019 as their baseline year instead of 2021, which may provide more favorable comparison points for buildings affected by pandemic-era occupancy changes.
How Do You Comply?
The state of Colorado offers building owners flexibility through four compliance pathways. Building owners were required to select their pathway by July 1, 2025 (those who didn't select one were automatically defaulted to Option 1). However, pathways can still be changed by submitting a formal Pathway Adjustment Form to the CEO with supporting documentation.
Option 1: Property Type Target (a.k.a. Energy Efficiency) Pathway — Meet specific Site Energy Use Intensity (EUI) targets established for your property type. For example, office buildings have different targets than multifamily or retail properties. These targets were calculated to ensure the overall program meets statewide emission reduction goals.
Option 2: Energy Efficiency Standard Percent Reduction Pathway — Achieve a 13% reduction in Site EUI by 2026 and 29% by 2030 compared to your 2021 or 2019 baseline, regardless of your property type. This pathway works well for buildings that don't fit neatly into a property type category or that already operate efficiently as compared to peers.
Option 3: GHG Intensity Pathway — Meet specific Greenhouse Gas Intensity (GHGI) targets established for your property type. This pathway gives credit for cleaner energy sources, making it attractive for buildings with renewable energy installations or access to low-carbon electricity.
Option 4: GHG Percent Reduction Pathway — Achieve a 13% reduction in greenhouse gas emissions by 2026 and 29% by 2030 compared to your baseline. Similar to Option 2 but targeting emissions rather than energy consumption.
Buildings that cannot feasibly meet their targets can request timeline or performance target adjustments. These requests require a certified energy audit and must be submitted by December 31, 2025 for 2026 targets (this deadline has passed) or December 31, 2029 for 2030 targets. Approved compliance plans require monthly progress reports to demonstrate ongoing progress toward compliance.
What About Penalties?
Non-compliance isn't cheap. Colorado's penalty structure includes:
Benchmarking violations: Civil penalties currently start at approximately $577 for initial violations and increase to $2,300 or more for subsequent violations, subject to inflation adjustments.
BPS non-compliance starting on January 1st, 2030: performance standard violations can result in penalties of $2,300 for the first violation and up to $5,800 for subsequent (following) 30-day periods with non-compliance, including annual inflation adjustments.
Colorado Isn't Alone
Energy benchmarking and BPS policies are spreading rapidly across the U.S. As of early 2025, more than 40 cities and several states have enacted similar requirements, driven by climate commitments and building sector emission reduction goals.
New York City's Local Law 97, perhaps the most well-known BPS policy, establishes carbon emission limits for buildings over 25,000 square feet with penalties of $268 per metric ton of CO2 over the limit. Seattle requires annual benchmarking for buildings over 20,000 square feet and has implemented Building Tune-Ups alongside its BEPS program. Washington State's Clean Buildings Performance Standard applies to commercial buildings over 50,000 square feet with compliance deadlines phased in through 2028.
Even smaller cities are getting on board. Boulder, Denver, Fort Collins, and Aspen all have their own benchmarking requirements, and Denver is developing building performance standards through its Energize Denver program. Building owners in these jurisdictions must comply with both state and local requirements—they don't replace each other.
The trend is clear: energy performance requirements for large buildings are becoming the norm, not the exception.
Common Compliance Challenges
Most building owners struggle with three main issues:
Accessing utility data. You need complete, accurate energy consumption data from your utility providers. For buildings with multiple tenants, this means coordinating with each tenant or obtaining aggregated data from the utility—which isn't always straightforward. Missing meters or submetered spaces can create gaps in your data.
Data accuracy. Errors in square footage, incorrect property type classifications, or miscalculated energy use can throw off your entire compliance strategy. A building classified as "office" when it should be "mixed-use" could face entirely different performance targets.
Meeting deadlines. Starting in 2026, annual benchmarking reports are due November 1 (previously June 1). The pathway selection deadline of July 1, 2025 has passed—if you haven't selected a pathway, you were automatically defaulted to the Property Type Target Pathway, though you can still request a change with supporting documentation. For buildings that need performance target or timeline adjustments, the deadline is December 31, 2029 for the 2030 targets. The compliance calendar is packed, and missing deadlines can trigger penalties or limit your options.
And here's something many building owners don't realize: utilities are generally required to provide aggregated energy use data to help you comply, but the burden is on you to request it and ensure it's accurate.
Why Compliance Actually Matters Beyond Avoiding Fines
Yes, penalties are a powerful motivator. But there are compelling financial and strategic reasons to take these requirements seriously:
Energy efficiency improvements reduce operating costs. U.S. Department of Energy (“DOE”) and U.S. Environmental Protection Agency (“EPA”) studies have shown that buildings that benchmark consistently see 7-10% energy savings, with some saving as much as 15% within the first few years just from identifying and fixing inefficiencies (often referred to as retro-commissioning or RCx). That translates directly to lower utility bills.
High-performing buildings command higher rents and sale prices. ENERGY STAR certified buildings demonstrate measurably superior performance, which tenants and buyers value. In competitive real estate markets, certification can be a differentiator.
Green financing and incentives become available. Lenders increasingly offer preferential rates for energy-efficient properties. Colorado's new Building Decarbonization Enterprise (established under HB 25-1269) will provide financial support for building improvements, including on-bill financing programs and funding for energy audits.
Future regulations will only get stricter. Colorado is already developing 2040 building performance standards through a new BPS Task Force, with recommendations due by July 1, 2028. Buildings that start improving now will have a much easier path forward than those waiting until the last minute.
What You Should Do Now
If you own or manage a covered building in Colorado, here are some excellent steps to take to save valuable penalty fees:
First, ensure your benchmarking is current. The 2024 benchmarking report (due June 1, 2025) should already be submitted. Your next report covering 2025 data will be due November 1, 2026—the first year under the new reporting deadline month. If you haven't been benchmarking annually, go back and capture your baseline data from either 2019 or 2021 (you can now choose which year to use). You'll need this for your BPS compliance pathway.
Second, verify your compliance pathway selection. The July 1, 2025 deadline for pathway selection has passed. If you didn't actively select a pathway, you were automatically placed on the Property Type Target Pathway. Review whether this default pathway works for your building, or if you should submit a Pathway Adjustment Form to switch to one of the other three options—Standard Percent Reduction, GHG Intensity, or GHG Percent Reduction.
Third, assess your 2030 readiness. While the 2026 targets (7% reduction) are now non-enforceable goals with no penalties, the 2030 targets (20% reduction) remain mandatory. If you're not confident you can meet your 2030 targets, start the energy audit process now. Energy auditors, such as Peak Utility Advisors, can identify improvement opportunities and help you develop a compliance plan. If you need timeline or performance target adjustments for 2030, you must submit your request by December 31, 2029—but starting early gives you more options.
Fourth, align your capital planning. Major equipment replacements, HVAC upgrades, or building envelope improvements take time to plan, budget, and execute. If your 2030 compliance strategy requires significant capital investment, you'll want to incorporate it into your capital plans for the next few years. The new Building Decarbonization Enterprise (BDE) may offer financial and technical assistance—the $400 annual BDE fee you're now paying is funding these support programs.
Finally, track the Colorado Energy Office's guidance closely. The program continues to evolve—HB 25-1269 made significant changes in 2025, including higher penalty fees, the shift to November 1 reporting deadlines, optional 2019 baseline usage, and the creation of the BDE. The 2040 standards development process is already underway. Sign up for updates through the Building Performance Colorado website to stay informed about new resources, funding opportunities, and regulatory developments.
Getting Help With Compliance
Navigating energy benchmarking and BPS requirements doesn't have to be overwhelming. Peak Utility Advisors provides ENERGY STAR benchmarking services to ensure your data is accurate and submitted on time. We help building owners understand their compliance pathways, develop strategies to meet performance targets, and identify cost-effective efficiency improvements.
Whether you're just starting to think about compliance or you're deep in the weeds trying to meet a deadline, we're here to help. Our approach is straightforward: we assess your building's current performance, identify the most practical path to compliance, and support you through implementation—all while looking for opportunities to reduce your utility costs along the way.
Don't wait until penalties start accumulating. The 2026 targets may only be target goals now, but 2030 is coming faster than most building owners realize — and the requirements won’t get any easier.
Additional Resources
· Colorado Energy Office – Building Performance Colorado site
Peak Utility Advisors helps businesses nation-wide reduce utility costs and navigate energy compliance requirements. Contact matt.jochym@peakutilityadvisors.com or (970) 235-1098 to discuss your building's benchmarking and BPS strategy.
