Insights Archives - Green Econome

Energy Benchmarking in Boston — What is BERDO?

December 3, 2024 admin

Cities around the US are implementing energy benchmarking laws. Boston is paving the way for energy efficiency with their Building Energy Reporting and Disclosure Ordinance (BERDO). The BERDO energy benchmarking ordinance provides an excellent opportunity for commercial real estate owners to improve their energy performance while saving money and staying ahead of future greenhouse gas (GHG) emissions reduction requirements. If you're a property owner or manager in the city, staying compliant with BERDO is crucial—and Green Econome is here to help.

What is BERDO Energy Benchmarking in Boston?

Passed in 2013, Boston's Building Energy Reporting and Disclosure Ordinance (BERDO) requires large commercial and residential buildings to report their annual energy and water usage by May 15th annually to the city, as well as stating emissions standards every 5 years, starting in 2025 or 2030 depending on building size. This regulation applies to:

Residential buildings that have 15 or more units

Non-residential buildings that are 20,000 square feet or larger

Parcels with multiple buildings totaling at least 20,000 square feet or 15 units

What are the Benefits of BERDO?

Failing to meet BERDO energy benchmarking reporting requirements can result in penalties of up to $1,000/day!

But beyond compliance, energy benchmarking through ENERGY STAR® Portfolio Manager® can help property owners identify areas for efficiency improvements and cost savings. Tracking and optimizing energy usage can significantly increase the value of your commercial property. Buildings that perform better in energy efficiency often attract more tenants and offer long-term savings on utility bills. By staying ahead of Boston’s energy benchmarking ordinance, you’ll ensure your property remains competitive in the city's fast-growing commercial real estate market.

Maximize Energy Efficiency in Boston with Green Econome’s Energy Benchmarking Services

With over 20 years of combined experience in commercial real estate and benchmarking, Green Econome’s expert team is here to take the stress of BERDO compliance off your plate. Don’t wait until the last minute—get in touch with Green Econome today to simplify the compliance process and unlock energy savings for your property. For more information on how we can assist with Boston BERDO compliance, or energy benchmarking for commercial properties in any US state, contact Green Econome today!

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Insights

The Benefits of ASHRAE Level 2 Energy Audits

October 18, 2024 admin

Here at Green Econome, we have many requests for ASHRAE Level 2 energy audit pricing, primarily for Phase II Audit & Retro-commissioning (A/RCx) requirements of the Los Angeles EBEWE Ordinance. So, what does this mean and why should you do it? On average, ASHRAE Level 2 energy audits can identify 10% - 20% in energy savings. This is just one of the benefits of understanding how your building operates and what can be done to increase the efficiency of the equipment. Let’s get into it.

Why are ASHRAE Energy Audits Required?

The demand for these ASHRAE Level 2 energy audits has risen due to the Building Performance Standards (BPS) that are popping up nationwide. These BPS are what Green Econome calls, “Phase II” of the current string of energy and water disclosure laws. Benchmarking, “Phase I” ensures that building owners understand HOW their buildings are performing, using the ENERGY STAR® Portfolio Manager® software. This benchmarking is an important first step that provides energy and water metrics for a property and compares it’s performance against itself and its peers.

Based on these benchmarking results, Phase II BPS requires building owners to meet certain energy and water reductions. When that doesn’t occur, legislation is focused on owners receiving ASHRAE Level 2 audits for their covered building(s). We should mention, any building can benefit from an ASHRAE Level 2 audit even if they aren’t required to have one performed. ASHRAE Level 2 audits provide WHY buildings are operating at certain efficiencies.

What's Included in an ASHRAE Level 2 Energy Audit?

Our ASHRAE Level 2 energy audits begin with an Executive Summary which provides general information on the size and use of the property and its overall energy and water usage and cost. We provide an outline of the recommended Energy and Water Efficiency measures and the estimated savings that would be reaped if the measures were implemented. Green Econome audits provide a table of total project costs and dollar savings with a simple payback in years. We love the Simple Payback calculation since it helps the owner understand how quickly the project investment is paid back vs. the utility savings earned. Generally, projects under 5 years have the most potential. Anything under 3 years should not be delayed due to the financial implications. And anything under 1 – 2 years is mandatory.

The next section of the report includes a Utility Analysis where we dig deep into understanding the energy and water usage of the building over a historical period. This analysis includes a breakdown of what energy and water equipment is used on a percentage basis. Through this analysis, any imbalance of energy usage can be identified. An example would be lighting that is more than 30% of the total energy load of the building. This section also includes usage and cost trend graphs, which identifies outliers of usage. This section also analyzes the utility rate structure which can reflect immediate cost savings if the property has been incorrectly charged by the utility.

Also useful in these audits is the detailed description of the existing energy and water consuming equipment at the property. Pictures are utilized, helping owners understand what is in their property. This section provides a snapshot of the equipment, which can be very helpful for owners to maintain for their records.

Lastly, the recommended energy and water efficiency measures detailed in the report explain what the benefit of each retrofit is. This section helps ownership understand what the desired effects of the retrofit provide. This is a valuable section, identifying any utility incentives that could exist to help pay for a project.

Audit reports should provide answers to all your questions on why to spend the money.

Get Started on your ASHRAE Energy Audit Today!

After reading an ASHRAE Level 2 energy or water audit report you should be able to understand how your property is performing, what equipment is consuming the most, what you can do to make your buildings more efficient. You will also have a clear understanding of the cost and how quickly you will reap the financial benefits. Benchmarking can be used to confirm the effectiveness of the retrofits in the next disclosure cycle.

Green Econome performs these audits on a weekly basis. Through auditing, benchmarking, and our entire suite of services, we have helped thousands of buildings and their owners stay on top of energy and water usage. Don’t wait to start saving! Contact us with any questions and to get your audit pricing today.

Do you have specific questions about complying with the Los Angeles Existing Buildings Energy and Water Efficiency Phase II A/RCx requirements? If so, visit our EBEWE ordinance webpage, or watch our chaptered video.

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Decarbonization Insights News

California to End the Sale of Fluorescent Lighting

June 13, 2024 admin

After January 1, 2025, California will have effectively banned the sale and distribution of all fluorescent lamps per CA AB 2208. So, what does this mean for business owners and property managers? Those currently using these lamps must start planning to transition to alternative lighting solutions. Although this may require some planning and investment, upgrading to LED lighting is safer and more efficient, contributing to huge operational savings.

Why is CA Banning Fluorescents?

One of the biggest concerns with fluorescent lighting is safety; these lamps contain mercury, a toxic heavy metal that poses significant environmental and health risks. When disposed of in landfills, the mercury contaminates ecosystems through leaching into the soil and water. In addition to these environmental and public health threats, fluorescents are also incredibly inefficient compared to LEDs. They produce more heat bringing operational costs up across all systems and have a shorter life cycle.

Upgrading to LED lighting will save business owners money while protecting Californians’ health and safety.

Here is Your Lighting Retrofit Action Plan

Ban Date
- January 1, 2025 (screw and bayonet base CFLs banned starting 1/1/24)
Next Steps for Business Owners
- Assess Inventory: How many lamps do you have in stock? This will help you plan and prioritize when to implement an LED lighting retrofit.
- Budget for Retrofit: While equipment may be compatible, it is best to scope out the project needs to ensure safety and compatibility. Long-term cost savings of proper LED lighting retrofits are higher than the short-term gain of simply replacing bulbs. Not to mention, safer for the occupant.
- Properly Dispose of Fluorescents: Become familiar with your local regulations, procedures, and disposal facilities to ensure lamps can be removed, recycled, and disposed of properly. The EPA provides helpful information and resources for commercial use.
Retrofit Priorities
- Decide project goals and budget.
- Assess and identify lamp counts, high-burn areas (parking garages, stairwells, etc.), and other inefficiencies to address.
- Explore your options and determine the best equipment and products for each area.
- Take advantage of utility incentives and rebates, while they are available.
- Measure and verify your energy and cost savings through bill analysis and/or benchmarking the building.

Green Econome Specializes in LED Lighting Retrofits... We Can Help You Transition!

Hiring a professional service provider often leads to the best results. Leverage their knowledge and access to contractors/distributors. Get ahead of the ban and take advantage of current incentives for energy efficiency upgrades. Business owners will save money and help keep their community safe by switching to LED lighting! In addition to upgrading the building’s lighting, Green Econome delivers a pre/post-install analysis to track savings. While we have implemented a variety of LED retrofits including, office, residential, and sport lighting, One of our biggest retrofit projects was conducted for a global aerospace company and ultimately resulted in a 25% cost reduction. This retrofit included lighting, HVAC, and thermostat systems. Green Econome is here to help you start saving now!

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Insights Media

CREW OC Behind the Logo: Spotlight on Green Econome

May 15, 2024 admin

Sit down with Green Econome's own Marika Erdely and the inimitable Kate Shoemaker of Assured Partners and CREW Orange County, and enjoy this episode of "Behind The Logo".

In this fun and candid conversation, Kate and Marika discuss everything from the "Need to Do Initiative" of energy efficiency and sustainability in CRE, Arnold Schwarzenegger, networking scaries, and building a better future for all.

As part of CREW Network, the industry’s premier business organization, CREW Orange County transforms the commercial real estate industry by advancing women globally. CREW Network’s membership of 12,000 professionals in over 75 major global markets represents all aspects of commercial real estate—providing our members with direct access to real estate professionals across all geographies and disciplines.

Head over to CREW Orange County to explore their mission, community, and opportunities to connect.

CREW OC WEBSITE

Decarbonization Insights

ESG Explained: How the SEC is Influencing Commercial Real Estate

May 14, 2024 Marika Erdely

Here at Green Econome, we've been at the forefront of ESG (Environmental, Social, Governance) reporting, eagerly anticipating the U.S. Securities and Exchange Commission (SEC) ruling on mandatory disclosures for public companies. Fundamentally, ESG is a way of doing business. Green Econome lives in the world of the “E”, the “Environmental” with our ENERGY STAR® benchmarking and energy and water efficiency services. While we recognize that the “S” and the “G” are equally important for businesses to report on, we are going to focus on the “E” and how that relates to the SEC’s new ruling. Let’s get into it.

Unpacking the SEC Climate-Related Disclosures

What are public companies required to report and how does that intersect with commercial real estate? On March 6, 2024, the SEC passed legislation requiring public companies to measure their Scope 1 and 2 emissions as part of their annual reporting and include how climate risk will affect their businesses in the near future. This ruling is meant to enhance and standardize climate-related disclosures. The SEC also included a materiality clause to help guide businesses as to what to report. Although, it's important to note that since March, there has been intense business opposition. But let’s get to the bottom line here: what are Scope 1 and Scope 2 emissions and why do we need to report on them?

Defining Scope 1, 2, and 3 Emissions

Basically, Scope 1 is for all direct Greenhouse Gas (GHG) emissions through the combustion of gas in buildings or by the business’ fleet. Scope 2 is indirect emissions for the electricity the business is consuming from the grid. Both emissions are part of the collection of data standard to ENERGY STAR benchmarking. Scope 3, although significant, was not included in the SEC’s ruling.

The ‘E’ in ESG is where Green Econome thrives

We are here to ENERGY STAR Benchmark your portfolio to meet your “E” goals and reduce the operating costs of your building. As a woman-owned, full-service energy and water efficiency construction and consulting company, we have over 20 years of combined experience. We provide accurate benchmarking services and insights to recommend solutions and incentives that will increase the NOI and market value of your property. Let us help you better understand and accomplish your property's ESG goals to reduce emissions and meet science-based targets (SBTi).

Contact Founder and CEO Marika Erdely
Mobile: 818-681-5750
Email: [email protected]

DOWNLOAD OUR ESG SERVICES BROCHURE

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Picture of construction workers for 179D-IRA

Financing Insights

Increase Cash Flow with Section 179D of the Inflation Reduction Act

May 12, 2024 Marika Erdely

Who knew when I started Green Econome in 2009 that my previous 30 years in accounting and finance would help building owners understand the opportunities provided by tax benefits in the Inflation Reduction Act (IRA), signed into law by President Biden in late 2022?

This significant package is heavily focused on how commercial real estate owners can invest in their properties to reduce operating costs and emissions by taking advantage of tax deductions and credits. Providing cash flow to owners, some of these benefits can be transferred to others, and non-profits can receive cash tax payments to help pay for these projects.

Let’s break down one of my favorites: Section 179D

This is a tax deduction. For those still learning about financing, a tax deduction is a reduction to the property’s income before tax liabilities are calculated. So, any of these deductions should be considered against the owner’s tax rate.

Section 179D has been around for many years and there is an opportunity to take the original deduction for 2020, 2021, and 2022. The new version, I call “IRA Section 179D” is effective with projects going into service after 1/1/2023.

When I started to research this deduction to help our clients increase their cash flow for these projects, it wasn’t clear that there were two specific periods to be considered for this deduction. The initial period is effective from 1/1/2023 – 12/31/2026. Beginning 1/1/2027, we have a new version (which is not as beneficial).

How is 179D calculated for your new construction or large retrofit project?

It all starts with an energy model. What is this? Well, it is a virtual design of your building. For the initial period, the energy model is a design of the property with the mechanical standards established by ASHRAE 90.1 2007. Note 2007! If you have a building that you are retrofitting in California to Title 24 2022, you are already way more efficient. LEED certification requires buildings to meet ASHRAE 90.1 2010 standards, so again, 2007 is much less efficient.

Next, the energy model is designed to the current material and efficiency standards the building is being built to or retrofit. The driver for this deduction is the “efficiency gain,” which is the difference between the energy used at the ASHRAE 901. 2007 standard vs. the current building code standard. For those projects requiring prevailing rates, the deduction is 5 times higher, which means it can be very significant.

The calculation is the sq. footage of the property multiplied by the corresponding rate based on the efficiency gain. This value is then multiplied by the owner’s tax rate... and there you have it: the anticipated tax deduction! The larger the property, the higher the deduction, but I believe smaller buildings may benefit based on the level of improvements planned.

Efficiency projects built together, pay together

When claiming the 179D tax deduction, it is most beneficial to have completed all the projects together in the same year. Going a step further, there is a tax "sweet spot", where a project can receive the prevailing wage rates adjusted for inflation when a construction or retrofit project started before 1/1/2023, was worked on continuously, and completed after 1/1/2023. We are seeing $5.66 x the square footage on these projects, which makes them very valuable!

Green Econome is a woman-owned, full-service energy and water efficiency project construction and consulting company with over 20 years of combined experience. We can help explain these complex tax benefits and match you with a 179D specialist. Furthermore, we can recommend solutions that will increase the NOI of your property and increase market value. Get the ball rolling and reach out to Green Econome’s founder and CEO, Marika Erdely.

EMAIL MARIKA

DOWNLOAD SECTION 179D INFO SHEET

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Decarbonization Financing Insights

Solar & Battery Storage Benefits of the Inflation Reduction Act

May 11, 2024 Marika Erdely

I love a good federal tax credit since it is a reduction of the tax liability of the owner. Essentially, this is pure cash flow to the owner of the property. What could be better? I have two favorites improved by the Inflation Reduction Act (IRA): the Federal Solar Investment Tax Credits (ITC) for Solar and Battery Storage, and a new 45L for residential construction and major renovations.

Federal Investment Tax Credits (ITC) for Solar and Battery Storage

While there is a suite of tax credits under the ITC for residential, businesses, and manufacturers, Let’s focus on the ITC for businesses. The investment tax credit (ITC) is a federal tax credit that reduces the federal income tax liability for a percentage of the cost of a solar or storage system that is installed during the tax year. Before the passage of the Inflation Reduction Act, this incentive was 26%, but with the help of the IRA, it is back up to 30% of the project cost until 2033. (U.S. Department of Energy).

There are two bonus tax credits at 10% a pop if they are attainable.

Energy Community Bonus: An energy community is an area identified as a brownfield site and/or locations experiencing high unemployment and fossil fuel investment. Looking at the DOE Energy Community map, most of Los Angeles County is currently designated as an energy community. Unfortunately, this is a temporary map and we in the industry aren’t exactly sure when the map is to be reset and areas may drop off.
Domestic Content Bonus: This bonus requires a percentage (starting at 40%) of project materials (by cost) to be produced in the U.S. It is difficult to attain the second additional 10% solar tax credit. I’m told businesses are hard at work on this, making domestic materials readily available. Hooray for U.S. manufacturing!

These projects also benefit from Federal MACRS Bonus Depreciation and State Depreciation (which is, again, a tax deduction—reducing the income of the property for tax purposes).

By the Numbers: Cash Flow for Solar and Battery Storage Projects

Let’s examine some examples of tax savings when installing a solar PV system or an energy storage system. Many people aren’t aware of just how much these tax incentives can help to cover the cost of the project. The numbers speak for themselves.

Energy Storage System (90kW/220kWh)

Gross System Cost	$ 318,244.00
IRA ITC (30% + 10% Energy Community)	$ (127,298.00)	-40%
SCE SGIP Rebate Program to Owner	$ (55,750.00)	-18%
Federal MACRS Bonus Depreciation	$ (53,465.00)	-17%
State (CA) MACRS Depreciation	$ (31,824.00)	-10%
Net Project Cost to Owner	$ 49,907.00	-84%
Estimated Electricity Savings (Year 1)	$ 20,939.00
Estimated Total Net Savings (15 Years)	$ 260,574.00
Payback Period	3.1 Years

Solar PV System (29.4 kW-DC)

Gross System Cost	$ 110,344.00
IRA ITC (30% + 10% Energy Community)	$ (44,137.00)	-40%
Federal MACRS Bonus Depreciation	$ (27,807.00)	-25%
State (CA) MACRS Depreciation	$ (8,828.00)	-8%
Net Project Cost to Owner	$ 29,572.00	-73%
Estimated Annual Electricity Savings (Year 1)	$ 9,700.00
Estimated Total Net Savings (25 Years)	$ 419,117.00
Payback Period	3.8 Years

Tax Benefits Can Cover Over 80% of the Project Cost

The tables above illustrate how HUGE these tax incentives are. In just over 3 years, the entire cost of the energy storage system will have paid itself back. The battery can offset peak kW demand costs in high Time-of-Use (TOU) rates. Looking at the numbers, these energy efficiency projects are a no-brainer.

Green Econome Project Consulting, Construction & Incentive Management Services Have You Covered

Green Econome is here to guide you through the decision-making process and provide you with maximum energy and tax savings! We are a woman-owned, full-service energy and water efficiency construction and consulting company with over 20 years of combined experience. If you have a building for which you are considering solar and battery storage and would like a no-obligation quote, please contact CEO, Marika Erdely.

EMAIL MARIKA

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Decarbonization Financing Insights

More Savings with the 45L Tax Credit for Residential Construction

May 10, 2024 Marika Erdely

What is the 45L Tax Credit?

The Inflation Reduction Act amended Section 45L, a tax credit to incentivize the new development or major renovation of energy-efficient residential properties for lease or sale. The new Section 45L provisions include two tiers of credits for eligible buildings and units certified to applicable ENERGY STAR® residential and U.S. Department of Energy Zero Energy Ready Home (ZERH) program requirements. The updated Section 45L is extended to qualified residential properties acquired from January 1, 2023, through December 31, 2032. The tax credit's value per dwelling unit varies, reaching a maximum of $5,000, based on factors including the home type, number of stories, and compliance with energy efficiency requirements.

This residential construction tax credit is fantastic if you are already constructing or retrofitting at high efficiency and want to recognize your residential project as ENERGY STAR® or ZERH certified right off the bat.

Qualifying for the Section 45L Tax Credit

Here are the basic eligibility requirements for homes acquired and/or completed after December 31, 2022, and located in the U.S., wanting to claim Section 45L (as found on the Department of Energy and IRS websites). It is important to note that there are differences in terms for single-family vs. multi-family homes. Please contact Green Econome for detailed information. This is a basic outline:

Single Family Homes

Certified under the applicable ENERGY STAR Single-Family New Homes (National} Program Requirements.
Certified under the most recent ENERGY STAR Single-Family New Homes Program Requirements applicable to the location of such dwelling unit (as in effect on the latter of January 1, 2023, or January 1 of two calendar years prior to the date the dwelling unit was acquired), or
Certified under the most recent ENERGY STAR Manufactured Home National program requirements as in effect on the latter of January 1, 2023, or January 1 of two calendar years prior to the date such dwelling unit is acquired.

Multi-Family Homes

Certified under the most recent ENERGY STAR Multifamily New Construction National Program Requirements (as in effect on either January 1, 2023, or January 1 of three calendar years prior to the date the dwelling was acquired, whichever is later), and
Certified under the most recent ENERGY STAR Multifamily New Construction Regional Program Requirements applicable to its location. (as in effect on either January 1, 2023, or January 1 of three calendar years prior to the date the dwelling was acquired, whichever is later).

All Eligible Dwelling Units

Must be certified as a zero-energy ready home under the Zero Energy Ready Home (ZERH) program of the Department of Energy as in effect on January 1, 2023 (or any successor program determined by the Secretary).

What are the Additional Benefits to the 45L Amended by the Inflation Reduction Act?

Increased credits: for homes acquired between 2023-2032.
Prevailing wage kicker: tax credit is higher for multifamily projects that meet the prevailing wage requirements.
Double the savings! 45L tax credit can also be utilized with the IRA’s Section 179D for buildings over 4 stories.

Green Econome Helps Maximize Savings on your Multifamily Projects

While Green Econome is not a tax professional, we work with vetted partners and offer incentive and financing management, as well as project construction and building certifications for multifamily properties. We are a woman-owned, full-service energy and water efficiency construction and consulting company, with over 20 years of combined experience. Tax credits can be complicated, don’t miss out on crucial savings and upgrading your building’s energy efficiency! Contact our founder and CEO Marika Erdely for a consultation.

EMAIL MARIKA

DOWNLOAD SECTION 45L INFO SHEET

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Building Performance Standards Insights

Audit Not Required: LA EBEWE Phase II A/RCx Exemptions

March 20, 2023 Marika Erdely

We talk to many building owners and property managers asking what happens if they do not comply with the Phase II Audit/Retro-commissioning (A/RCx) stage of the City of Los Angeles Existing Buildings Energy & Water Efficiency Program (EBEWE) Ordinance. You can read about the fines and penalties for non-compliance here. But, we want people to understand that energy and water exemptions can be met to avoid the cost, time, and labor of ASHRAE Level II audits and retro-commissioning reports. It’s easy to miss the fine print on the notices sent by the Los Angeles Department of Building and Safety (LADBS).

"You may be exempt from performing an A/RCx for energy and/or water if your building falls under the specific exemptions provided in Division 97 of the LAMC. To be considered for an exemption, a request and supporting justification must be submitted by a California licensed engineer or architect to LADBS.”

How to Know if You Qualify for an EBEWE Exemption

We prioritize these least-cost options to save money and provide value to each of our EBEWE clients. After we complete the benchmarking of a building, we deliver a custom progress and goals report which, using the metrics from ENERGY STAR® Portfolio Manager®, illustrates the building’s benchmarked energy and water efficiency performance. The report then outlines all EBEWE Phase II compliance options based on the previous 5-years performance of that building. Surprisingly, often buildings can meet at least one or both energy and water exemptions. The table below shows the Phase II compliance schedule and comparative periods used to determine exemptions.

* The initial compliance due dates for Building IDs ending with 0-3 were impacted by the COVID emergency order tolling of deadlines and are now subject to the reissue due date of September 7, 2023.

Why do EBEWE A/RCx Exemptions Matter?

The cost of meeting an exemption can be up to 65% less than receiving an ASHRAE Level II energy and or water audit and RCx report. Additionally, if you’re meeting an exemption you have a high-performing building, which is contributing to the city’s goal to reduce carbon emissions, and you operate an efficient building, congratulations. If you are eligible, you can also gain ENERGY STAR Certification which can help with the lease rate and marketing of your property.

What do I Have to do to Submit an EBEWE A/RCx Exemption?

Hire Green Econome of course! Whether our team completes it for you or not, here are the basics:

The building must be accurately benchmarked with no estimated data. LADBS requires a CA Professional Engineer or Licensed Architect to validate the results.
Once the exemption is met (reduction verification, ENERGY STAR Certification, etc) a declaration of exemption must be signed by the Licensed Professional and submitted through the LADBS online portal.
Compliance must be met every 5 years, with benchmarking required every year. Since that data is required, it’s best to always stay current on your energy and water benchmarking disclosure compliance.

Of course, you can pay for an audit that someone else tells you is required without considering these exemptions. Not all Service Providers ever mention these exemptions, because their entire approach is to sell you into an audit.

Since the tolling of EBEWE deadlines has been lifted, and the due date is now September 7, 2023, it is time to get moving. Depending on the exemption, it can take 6-8 weeks to complete, so have your building benchmarked if it hasn’t been brought up to compliance and see if it can meet any exemptions.

JUST ANNOUNCED: LADBS will be accepting 2023 ENERGY STAR Certifications for Building IDs 0-3 who need to comply by September 7^th. This is a huge win that Green Econome advocated for. It allows building owners who may not meet a reduction target but are eligible for Certification to still gain that recognition and exemption, where their only other option would have been an A/RCx report. Thank you Los Angeles!

Marika Erdely is the founder and CEO of Green EconoME. Before founding the company, she was CFO/VP at New Millennium Homes, a major home builder, and land developer, bringing with her nearly thirty years as an accounting professional. Marika has her Contractors License B & C-10 and is a LEED AP BD+C, Certified Energy Auditor, and Fitwel Ambassador. Marika holds an MBA from Pepperdine University and a BA in Business Economics from UCSB.

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Insights

What are the fines if I don’t comply with EBEWE Phase II A/RCx?

March 20, 2023 Marika Erdely

Lots of property owners and managers have received a Notice to Comply with Audits and Retro-Commissioning requirements of the Los Angeles Existing Buildings Energy and Water Efficiency (EBEWE) Program. Many property owners and managers properly comply, but many do not. What happens if you don’t comply?

LADBS has provided comprehensive EBEWE Audits & Retro-Commissioning FAQs. Penalties are outlined in item 17, page 9:

17. What are the penalties if we don’t comply?

SEC. 91.9712 of the EBEWE ordinance puts the non-compliance fee at $202. This fee may be subject to Late fees, Collection fees and interest as defined in LAMC SEC. 98.0411. “Pursuant to L.A.M.C. Section 98.0411 (c), if this invoice is NOT PAID within 30 days of the date of the invoice, an additional 250% late charge/collection fee will be imposed and assignment to a collection agency may be made. After 60 DAYS of NO PAYMENT, interest will accrue at the rate of 12% annually (compounded monthly or portion of a month) until this invoice and any additional charges that have accrued since this invoice was issued have been paid.” Please note that payment of the non-compliance fee does not result in Compliance. The building will remain out of compliance with the City of Los Angeles and, as with any Los Angeles Municipal Code violation, will be subject to further legal action. Additionally, the status of each building (Complied or Not Complied) is posted publicly and, in the future, may be recorded on the property as an open violation.

The Case for Submitting Your EBEWE A/RCx Requirement

Yes, the fine is minimal at $202, but I find it interesting that it notes that the building will remain out of compliance with the City of Los Angeles and, as with any Los Angeles Municipal Code violation, will be subject to further legal action.

Hmm, I wonder with our new Mayor, what this will ultimately mean to those unwilling to be accountable to this Ordinance?

As a reminder, benchmarking a building is similar to determining the financial condition of your property. If it is scoring on the lower half of the ENERGY STAR® scoring of 1 to 100 (with 100 being the best), it shows that the building is energy and water inefficient, which ultimately means someone, you or your tenant(s) are spending too much on costs to operate the building. Of course, inefficient buildings create carbon which isn’t good for our atmosphere, which is the entire point of the EBEWE Ordinance.

But, besides all of that, why wouldn’t you want to understand how your property is performing so you can improve its NOI? It just makes financial sense. Contact us for pricing, or to get started with your EBEWE compliance.

About Green Econome

Green Econome is a woman-owned, small business providing energy and water efficiency compliance, consulting, and construction services for commercial real estate. Our Los Angeles-based team of licensed and credentialed professionals takes an integrated approach to finding efficiency solutions that positively affect market valuations, reduce environmental impact, meet ESG and sustainability goals, and ensure regulatory compliance.

CONACT MARIKA

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What is BERDO Energy Benchmarking in Boston?

What are the Benefits of BERDO?

Maximize Energy Efficiency in Boston with Green Econome’s Energy Benchmarking Services

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ENERGY BENCHMARKING

ENERGY & WATER AUDITS

RETROFIT & CONSTRUCTION

Why are ASHRAE Energy Audits Required?

What's Included in an ASHRAE Level 2 Energy Audit?

Get Started on your ASHRAE Energy Audit Today!

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ENERGY STAR® BENCHMARKING

ENERGY & WATER AUDITS

RETROFIT & CONSTRUCTION

Why is CA Banning Fluorescents?

Here is Your Lighting Retrofit Action Plan

Green Econome Specializes in LED Lighting Retrofits... We Can Help You Transition!

RELEVANT SERVICES

ENERGY & WATER AUDITS

RETROFIT & CONSTRUCTION

INCENTIVES & FINANCING

Unpacking the SEC Climate-Related Disclosures

Defining Scope 1, 2, and 3 Emissions

The ‘E’ in ESG is where Green Econome thrives

DOWNLOAD OUR ESG SERVICES BROCHURE

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ESG & SUSTAINABILITY

ENERGY STAR® BENCHMARKING

ENERGY & WATER CONSULTING

Let’s break down one of my favorites: Section 179D

How is 179D calculated for your new construction or large retrofit project?

Efficiency projects built together, pay together

DOWNLOAD SECTION 179D INFO SHEET

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INCENTIVES & FINANCING

ENERGY & WATER CONSULTING

RETROFIT & CONSTRUCTION

Federal Investment Tax Credits (ITC) for Solar and Battery Storage

By the Numbers: Cash Flow for Solar and Battery Storage Projects

Tax Benefits Can Cover Over 80% of the Project Cost

Green Econome Project Consulting, Construction & Incentive Management Services Have You Covered

RELEVANT SERVICES

INCENTIVES & FINANCING

ENERGY & WATER CONSULTING

RETROFIT & CONSTRUCTION

What is the 45L Tax Credit?

Qualifying for the Section 45L Tax Credit

What are the Additional Benefits to the 45L Amended by the Inflation Reduction Act?

Green Econome Helps Maximize Savings on your Multifamily Projects

DOWNLOAD SECTION 45L INFO SHEET

RELEVANT SERVICES

INCENTIVES & FINANCING

ENERGY & WATER CONSULTING

RETROFIT & CONSTRUCTION

How to Know if You Qualify for an EBEWE Exemption

Why do EBEWE A/RCx Exemptions Matter?

What do I Have to do to Submit an EBEWE A/RCx Exemption?

The Case for Submitting Your EBEWE A/RCx Requirement

About Green Econome

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CONSTRUCTION

ENERGY & WATER
CONSULTING

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