Colorado Springs is the second-largest city in Colorado by population, and its commercial building market reflects an economy anchored by the military, healthcare, and regional retail — each of which generates large buildings that land squarely under Regulation 28’s 50,000 sq ft coverage threshold.
The city’s five major military installations — Fort Carson, Peterson Space Force Base, Schriever Space Force Base, Cheyenne Mountain Space Force Station, and the Air Force Academy — are federal properties and treated differently under Regulation 28’s applicability framework. But the civilian commercial ecosystem that supports those installations is substantial, and most of it is privately owned.
Colorado Springs at a Glance
| Metric | Data |
|---|---|
| Population (city) | 485,000+ |
| El Paso County population | 730,000+ |
| Covered buildings (est. 50k+ sq ft) | 200–280 private commercial properties |
| Primary local utility | Colorado Springs Utilities (CSU) |
| Federal properties | Exempt from Regulation 28 (separate EPA energy requirements) |
| Major commercial zones | Powers Corridor, Briargate Pkwy, N. Nevada Ave, Interquest Pkwy |
| Key building types | Healthcare, office, retail centers, flex/industrial |
Colorado Springs Utilities vs. Xcel Energy: What It Means for Compliance
Unlike most Colorado cities, Colorado Springs operates its own municipal utility — Colorado Springs Utilities (CSU). This has two practical implications for Regulation 28:
First, CSU has its own commercial energy efficiency programs separate from Xcel’s. CSU’s Commercial Rebate Program offers incentives for lighting, HVAC, variable-speed drives, and building envelope improvements. The rebate structure differs from Xcel’s, and we account for CSU programs — not Xcel rates — when developing the incentive analysis for Colorado Springs buildings.
Second, CSU’s energy mix differs from Xcel’s statewide grid mix. For buildings pursuing Pathway 3 or 4 (GHG intensity or GHG reduction), the emission factor used to calculate your building’s carbon footprint is derived from your utility’s generation portfolio. CSU’s coal-heavy legacy mix is being phased out, but the current emission factor still affects your GHG compliance math.
Healthcare: The Dominant Regulation 28 Category in Colorado Springs
UCHealth Memorial Hospital’s main campus on N. Union Boulevard, Penrose-St. Francis Health Services, and several large medical office complexes along the Briargate and Powers corridors represent some of the highest-EUI buildings in El Paso County. Healthcare facilities typically run 150–250 kBtu/sq ft/year — well above the prescribed EUI targets for general commercial use.
For these properties, we don’t start with Pathway 1. We model the GHG-based pathways first, particularly for facilities with any on-site renewable generation or those on CSU’s renewable rate programs. A 13% GHG reduction from a 2021 baseline is often more achievable for a medical campus than hitting a prescribed EUI target that was designed for office or retail buildings.
Office and Retail: The Briargate and Powers Corridor
North of the city, the Briargate Parkway business corridor and Powers Boulevard retail strip contain dozens of large commercial properties in the 50,000–120,000 sq ft range. Most were built between 1995 and 2015, use older rooftop HVAC units (often well past typical 15–20 year lifespan), and have not had a comprehensive energy assessment since construction.
These buildings often have substantial ECM potential: economizer retrofits, LED lighting, building management system upgrades. Depending on CSU rebate availability, many improvements can achieve payback periods under 4 years — meaning the energy cost savings cover the improvement cost before the 2027 compliance deadline.
Defense Contractors and Aerospace: A Growing Sector
Colorado Springs has become a hub for defense contractors and aerospace companies serving the military installations. L3Harris, Northrop Grumman, General Dynamics IT, and dozens of smaller contractors occupy large office and R&D facilities throughout the city.
These civilian-owned facilities are fully subject to Regulation 28, even though their tenants work primarily with federal customers. The property owner — not the tenant — bears the compliance obligation.
Building Types We Audit in Colorado Springs
- Hospital campuses and healthcare systems (UCHealth Memorial, Penrose-St. Francis affiliates)
- Defense contractor and aerospace R&D facilities near Peterson and Schriever
- Large retail centers and power strip developments along Powers and N. Academy
- Office parks in Briargate Business Campus and InterQuest Parkway district
- Industrial and flex-space properties in the northeast quadrant near I-25/Powers interchange
- Multifamily developments serving the military and healthcare workforce
Colorado Springs Regulation 28 Timeline
Benchmarking reports are due to CDPHE by November 1 annually. Performance compliance deadlines:
- December 31, 2026: Colorado Springs buildings 100,000 sq ft and larger
- December 31, 2027: Buildings between 50,000–99,999 sq ft
Note that CSU may independently require energy benchmarking or reporting for some commercial accounts under its sustainability programs — check whether your property has existing CSU reporting obligations that can be leveraged for Regulation 28.
Get a Colorado Springs Audit Quote
Send us your building details → and we’ll have a flat-fee proposal back to you within one business day. Pricing for Colorado Springs buildings follows the same structure as the rest of the state, starting at $6,999 for 50,000–75,000 sq ft properties.