Category: Insights

As cities push for lower emissions and a modern built environment, two key policies shape building performance: energy codes and building performance standards (BPS). The ways in which they work together can make a big difference in the efficiency of a community.

The problem is while both aim to improve efficiency, they often operate independently with little coordination. Energy codes ensure new buildings or renovations will perform well, whereas BPS work to bring existing buildings up to modern-day standards. Ultimately, each is playing their role in progressing towards local and state emissions reduction goals.

Energy Codes vs. Building Performance Standards (BPS)

If you aren’t familiar with these terms, let’s break them down. In general, energy codes are implemented as energy efficiency standards for new buildings being constructed. They set the design standards for the building’s heating, cooling, water-heating and other energy-based aspects of the construction.

Conversely, building performance standards (BPS) are used to set an efficiency standard for all emissions of an existing building.

Who is impacted by each policy type?

Since energy codes target new developments, they only apply to buildings under construction or major renovation (building permits often trigger code enforcement). This means that the responsibility to comply generally falls on the construction or design team.

Building performance standards, on the other hand, impact existing buildings. So, when it comes time to comply, the responsibility is on the current building owner.

Why don’t energy codes and BPS collaborate?

While these energy policies act in similar ways, their implementation is quite different. Energy codes tend to regulate certain systems within the building’s design, while BPS regulates the entire building’s emissions. Using different building performance metrics means that compliance with energy codes during the construction of a building doesn’t necessarily mean that it will comply with BPS in the coming years.

This misalignment can quickly become problematic in cases where energy codes are not as strict as a new BPS policy. Cities with weaker energy codes may find that even their newest buildings are not able to meet BPS. Additionally, energy codes and BPS are usually enforced by different departments, often leading to a lack of coordination between the two.

California Title 24 Energy Code

To help drive these concepts home, let’s look at an energy code example in California.

Title 24 Part 6

California’s Title 24 Part 6 sets the minimum energy efficiency standards for new buildings and major renovations to existing buildings. This section of the energy code focuses on systems like lighting, HVAC, and water heating, ensuring buildings are designed to be efficient.

Title 24 Part 11

Title 24 Part 11, known as CALGreen, is the state’s green building code which functions as a statewide energy reach code. It has mandatory measures and voluntary ones that go beyond the basic energy efficiency requirements in Part 6 with broader environmental performance measures.

Code triggers are situations where a building or project submits for a building permit. These sections of Title 24 are triggered when a building is being constructed or undergoing a major addition or alteration.

It is very important that energy codes such as these remain up-to-date and current. Relevance is key. In this case, Title 24 is updated every 3 years. We currently operate under Title 24 – 2022 (effective in 2023).

Los Angeles EBEWE

The Los Angeles Existing Buildings Energy and Water Efficiency program is a great example of Building Performance Standards being implemented to improve existing buildings.

LA EBEWE Phase I requires existing buildings over 20,000 sq. ft. to benchmark their building’s energy and water use, providing insight to its performance

Under LA EBEWE Phase II, buildings must undergo an ASHRAE Level II Audit and Retro-Commissioning (A/RCx), or meet an exemption. The audit provides an analysis of the building’s energy and water-use equipment and is then used to improve the building’s efficiency. These large buildings must improve their efficiency and meet performance standards every 5 years.

How do we connect the dots?

One of the first things that needs to happen is improving energy codes across the country so that they can better align with future BPS. Considering real-world operational outcomes when designing energy code standards will make it much easier for new buildings to comply with BPS.

This connection can be improved via energy reach codes (such as in Title 24) which outlines efficiency measures that go beyond the baseline standards. Energy reach codes help cities and counties better align new construction with long-term sustainability and Building Performance Standards.

From the BPS perspective, when implementing the first performance cycle, compliance should be reasonably achievable for buildings who were recently constructed in accordance with energy codes.

Ultimately, cross-coordination between energy codes and BPS will be extremely important moving forward as cities try to make progress towards their energy reduction goals.

Ready to get started on BPS compliance?

Due to the disconnect between building performance policy, many existing buildings are having to make improvements to comply with BPS. The compliance process can be a challenging, confusing process and hiring a consultant like Green Econome takes the stress out of the equation. Our expertise in benchmarking, data verification, and BPS compliance pathways nationwide makes us a home run for your ongoing BPS needs.

Green Econome, a woman-owned, full-service energy and water efficiency construction and consulting company, has over 20 years of combined experience. We can help explain these standards and make sure your property is reaching compliance in the easiest way possible. Furthermore, we can recommend solutions that will increase the NOI of your property and increase market value. Feel free to reach out to Green Econome’s founder and CEO, Marika Erdely, at marikae@greeneconome.com.

If you work in commercial real estate, property management, or are just fascinated by local government, the odds are you are aware of building performance reporting and improvement standards. Commonly referred to as BPS, short for building performance standards, many cities have been introducing regulations around the efficiency of large commercial properties.

If you aren’t fully aware of how these ordinances work, here are a few articles to help get the ball rolling: 4 Benefits of Benchmarking, Building Performance Standards in California, Ordinance Information. Larger cities, such as Los Angeles, New York City, and Boston were early adopters, which helped shape policy for smaller cities like the five we outline below.

Santa Monica, CA, Clean and Healthy Buildings Ordinance (CHEBO)

One of the newer cities to join the list, Santa Monica has recently initiated their Clean and Healthy Buildings Ordinance (Santa Monica CHEBO). While their BPS policy has yet to be released, their benchmarking is being finalized as of May 2025.

Property Size

Buildings over 20,000 sq ft.

Benchmarking Deadline

June 1, 2026 – annually thereafter.

Building Performance Standards

The City of Santa Monica has yet to finalize their Clean and Healthy Building Ordinance (CHEBO) with its BPS element. However, their BPS program is set to be finalized in 2025 and will go into effect June 1, 2026.

In the proposed policy, covered buildings need to meet greenhouse gas and/or energy use targets every 5 years beginning in 2031 for buildings larger than 50,000 square feet and in 2036 for buildings larger than 20,000 square feet. The final performance target is aimed at net zero emissions by 2050.

Penalties

Penalties for non-compliance in Santa Monica are pending finalization.

West Hollywood, CA, Equitable Buildings Performance Standards (EBPS)

While we’re discussing SoCal policy, West Hollywood also joined the BPS club with their Equitable Building Performance Standards (WeHo EBPS). With benchmarking starting in 2026, they also have set their building improvement deadlines.

Property Size

Buildings over 20,000 sq ft.

Benchmarking Deadline

May 15, 2026 – annually thereafter.

Building Performance Standards

West Hollywood drafted their Equitable Building Performance Standards policy which will require owners of all existing buildings over 20,000 square feet to make improvements to their building to meet performance targets. These will become more stringent over time.

First interim deadline – May 15, 2028

Second interim deadline – May 15, 2032

Final deadline – May 15, 2036

Penalties

Failure to comply with benchmarking deadlines may result in a fine up to $1,000.

Evanston, IL, Healthy Buildings Ordinance (HBO)

Evanston adopted Building Performance Standards (BPS) to cut emissions from buildings through their Healthy Buildings Ordinance (HBO). Beginning with their benchmarking regulations to help property owners identify their baseline to improve upon.

Property Size

Building Type 1: Any building over 100,000 sq ft.

Building Type 2: Any building between 50,000 and 100,000 sq ft.

Building Type 3: Any building between 25,000 and 50,000 sq ft.

Benchmarking Deadline

June 30, annually.

Building Performance Standards

Covered properties in Evanston need to meet interim performance targets beginning in 2031. Every 5 years, performance standards increase, leading to net zero by 2050.

Penalties

Failure to comply with benchmarking reporting requirements can result in a $100 fine monthly until it is resolved. BPS non-compliance penalty amounts will be up to the discretion of the City Manager.

Newton, MA, Building Emissions Reduction Disclosure Ordinance (BERDO)

Newton initiated their BPS to cut emissions from buildings through their Building Emissions Reduction Disclosure Ordinance (BERDO). The program is set up similarly to Evanston, starting with benchmarking and interim performance targets.

Property Size

Buildings over 20,000 sq ft.

Benchmarking Deadline

September 15, 2025 – Non-residential buildings over 100,000 sq ft.

September 15, 2026 – All buildings over 20,000 sq ft.

Building Performance Standards

Similar to Evanston, covered buildings in Newton must comply with BPS requirements in 5-year cycles, ultimately leading to becoming net zero emissions by 2050.

Penalties

For each day in which a building has failed to comply, it will be considered an individual violation with a penalty of $1,000 per day for buildings over 35,000 sq ft. or $300 per day for buildings between 20,000 and 35,000 sq ft.

Providence, RI, Building Energy Reporting Ordinance (BERO)

Last but not least, Providence joined the club with their Building Energy Reporting Ordinance (BERO). Although they have yet to set building performance standards, they have initiated incoming benchmarking requirements for existing buildings.

Property Size

Buildings over 20,000 sq ft.

Benchmarking Deadline

Buildings over 50,000 sq ft: May 15, 2025 – annually thereafter.

Buildings over 20,000 sq ft: May 15, 2026 – annually thereafter.

Building Performance Standards

Building performance standards in Providence have not yet been finalized.

Penalties

First non-compliance violations will be a warning. Second violations result in fines of $40 per day, not exceeding $4000 per year (buildings over 50,000 sq ft.) or $30 per day, not exceeding $3,000 per year (buildings between 20,000 and 50,000 sq ft.).

Benefits to Building Performance

You may be wondering – what’s the point of all of this? Of course, there is the environmental impact of these buildings being inefficient. However, there is also the business side of these ordinances. Properties that are efficient save money on operating costs and increase property value.

Ultimately, cities are beginning to recognize that their building standards are not what they used to be. Pushing these ordinances means that cities are working towards modernizing and improving their infrastructure.

While we couldn’t cover every detail on these ordinances, we encourage you to reach out if you want expert guidance and compliance services. Green Econome, a woman-owned, full-service energy and water efficiency construction and consulting company, has over 20 years of combined experience. Feel free to reach out to Green Econome’s founder and CEO, Marika Erdely, at marikae@greeneconome.com.

While the state of sustainability in the federal government remains on ice, it seems that some states are continuing with their environmental goals. Among them is Colorado. At the end of March, a federal judge dismissed a lawsuit against the state’s energy efficiency standards.

Since it’s here to stay, we wanted to take a moment to dissect the state’s building performance standards, what they are, how to comply, and everything else you need to know.

Why is the State Pushing These Regulations?

I think before getting into Colorado’s building performance standards, it’s worth noting why they implemented them. In recent years, they recognized that they need to consider how to protect the air quality across the state.

As mentioned in the bill, policymakers acknowledge that climate change adversely affects Colorado’s economy, air, and quality of life. As a result, they set goals to achieve at least a 26% reduction in statewide greenhouse gas pollution by 2025, a 50% reduction by 2030, and 90% by 2050.

Building Performance Colorado: State-Wide Policy and Deadlines

There are many nuances involved in Colorado’s Building Performance Colorado (BPC) program, but here are the main points. Covered buildings are required to report benchmarking data every June 1st for the previous calendar year. This started on June 1, 2024 (reporting for 2023 data).

In 2024, the annual benchmarking report required building owners to specify which of the compliance pathways they wanted to follow to reach their 2026 targets. These were pre-set in the bill. Similarly, the 2028 report will need to include their compliance pathway to achieve their 2030 target.

Each of these reports are sent to the Colorado Energy Office (CEO). For benchmarking data reported between 2027-2030, reporting entities need to demonstrate that they met the 2026 site EUI, GHG emission reduction target, data center target, or building specific target.

We recommend reviewing the regulations or contacting us for any fine details.

Energize Denver

In addition to the statewide ordinance, Energize Denver will impact buildings in Denver over 25,000 square feet. It breaks up covered buildings between 5,000 and 24,999 sq. ft. and over 25,000 sq. ft. The city’s main goal is to implement long-term cost savings, a stronger resilient economy, and significantly cut its pollution.

Buildings between 5,000 and 24,999 sq. ft. must certify that 90% of the building’s total lighting load is provided by LED lights or utilize renewable energy generation to meet a minimum of 20% of the building’s annual site energy usage.

Recent Updates to Energize Denver

• Interim and final target deadlines extended to 2028 and 2032 for buildings over 25,000 sq. ft.
• Further extensions allowed for buildings approved with long-term compliance plans
• Vacancy or financial distress allows for 2-year hold on compliance requirements
• Possible financial penalties for energy efficiency non-compliance cut in half and no penalties will be levied until late 2029
• No building is required to reduce energy usage by more than 42%

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Getting Started

Whether you are planning for your next compliance deadline or are just finding out about these regulations now, you should review the state’s guidelines and Denver’s if applicable. Of course, it can get complicated and confusing so consultants like Green Econome make it easy for building owners, managers, and tenants to achieve stress-free compliance. We manage this whole process for you, so you can focus on doing your job while we do ours!

Green Econome, a woman-owned, full-service energy and water efficiency construction and consulting company, has over 20 years of combined experience. We can help explain these complicated tax benefits and make sure your property is getting the most from them. Furthermore, we can recommend solutions that will increase the NOI of your property and increase market value. Feel free to reach out to Green Econome’s founder and CEO, Marika Erdely, at marikae@greeneconome.com.