LA EBEWE Program Deadlines Reinstated

February 7, 2023 Karalyn Shima Honea

UPDATE: The Tolling of Existing Buildings Energy and Water Efficiency (EBEWE) Program Deadlines Has Ended. The New 'Reissued' Deadline is September 7, 2023.

We, as a city and wider community, reached a milestone at the end of February with the rescinding of the City of Los Angeles COVID-19 Emergency Order. Included in the Executive Directive is the termination of 'tolling of Existing Buildings Energy and Water Efficiency (EBEWE) deadlines. In short, you have to comply with EBEWE on-time this year and submit previous non-compliance by September 7, 2023.

Top 3 Takeaways For Tolled Deadline Compliance

The tolling (suspension) of EBEWE deadlines will end on February 28, 2023.
LA Department of Building and Safety (LADBS) sent a "reissued" Notice to Comply for any building not in compliance for impacted years on March 7, 2023.
You will have six (6) months from the notice issue date to submit compliance to LADBS. This means benchmarking and Phase II A/RCx compliance for any affected building must comply by September 7, 2023.

Top 3 Tips for EBEWE Compliance

If your building needs EBEWE benchmarking compliance this year, and for previous years, Green Econome can benchmark and submit compliance for all years, bringing you up to date by the annual June 1st deadline.
If your building requires EBEWE Audit & Retro-Commissioning (A/RCx) for compliance years 2021 or 2022, we recommend starting now. If your building doesn't meet an exemption and needs an ASHRAE Level II audit, allow a minimum of 3 months to comply.
Contact us with questions, or to get started on your EBEWE compliance. We are happy to help!

ORIGINAL STORY

The City's COVID-19 Public Emergency Order Impacts EBEWE Deadlines, While the Program Moves Forward

Good News! In the email titled, “UPDATE REGARDING TOLLING OF EXISTING BUILDINGS ENERGY AND WATER EFFICIENCY (EBEWE) COMPLIANCE DATES” sent on Monday, October 24, 2022, by the Los Angeles Department of Building & Safety (LADBS), they announced that the deadline for EBEWE Phase II Audit / Retro-commissioning (A/RCx) requirements has been “tolled”, or delayed, yet again due to the City of Los Angeles Public Emergency Order (COVID-19), which is still in effect.

What Does This Mean? Three Facts You Need To Know About EBEWE Delays

The December 1, 2022, deadline for buildings due to comply (LADBS Building ID ending with 2 or 3), has been delayed and late compliance will not be fined. This is an update to the already tolled deadlines for Phase I benchmarking program years 2019, 2020, and 2021, AND Phase II A/RCx compliance year 2021.
Although the due dates have been paused while the emergency order is in effect, the program itself has not been paused. The city is encouraging all owners of covered buildings to submit data to continue developing energy and water efficiency programs.
Tolling of Phase II A/RCx deadlines does not change your 5-year compliance timeframe. See the schedule below. This is particularly important for buildings seeking ENERGY STAR® Certification. Certification is independent of LADBS and adheres to the EPA’s application window, which is open until 12/9/22. You cannot submit for Certification of previous years.

What Does This Mean for My Building? Action Items for Compliance

It means that you’ve bought some time; and ultimately, your building should be both in compliance with annual benchmarking and the 5-year A/RCx requirements.

For Green Econome clients, we are moving forward as though the deadlines are in place and doing everything in our power to fulfill your compliance on time.
If you have let any of your reporting lapse, Green Econome can bring you up to date. We offer multi-year contracts with discounted pricing on retroactive benchmarking.
If you have not started Phase II A/RCx for your building(s), please reach out to us ASAP for proposals. Full ASHRAE audits can take 2-3 months to complete. Additionally, ASHRAE audits are costly, and not always necessary if exemptions can be met. We determine your least-cost route to compliance, based on your (accurate) benchmarking data.

Deadlines may wait, but the climate crisis won’t. Nor will the Climate Action Plans and transition to clean energy that the city, county, and state are drafting. Your ENERGY STAR® benchmarking and building performance data directly informs our local policy. Please participate.

The full notice can be viewed and downloaded here. If you have more questions regarding this program in general, view our Q&A presentation, and contact us at any time to discuss your buildings further.

ORIGINAL: The City's COVID-19 Public Emergency Order Impacts EBEWE Deadlines, While the Program Moves Forward

What Does This Mean? Three Facts You Need To Know About EBEWE Delays

The December 1, 2022, deadline for buildings due to comply (LADBS Building ID ending with 2 or 3), has been delayed and late compliance will not be fined. This is an update to the already tolled deadlines for Phase I benchmarking program years 2019, 2020, and 2021, AND Phase II A/RCx compliance year 2021.
Although the due dates have been paused while the emergency order is in effect, the program itself has not been paused. The city is encouraging all owners of covered buildings to submit data to continue developing energy and water efficiency programs.
Tolling of Phase II A/RCx deadlines does not change your 5-year compliance timeframe. See the schedule below. This is particularly important for buildings seeking ENERGY STAR® Certification. Certification is independent of LADBS and adheres to the EPA’s application window, which is open until 12/9/22. You cannot submit for Certification of previous years.

What Does This Mean for My Building? Action Items for Compliance

It means that you’ve bought some time; and ultimately, your building should be both in compliance with annual benchmarking and the 5-year A/RCx requirements.

For Green Econome clients, we are moving forward as though the deadlines are in place and doing everything in our power to fulfill your compliance on time.
If you have let any of your reporting lapse, Green Econome can bring you up to date. We offer multi-year contracts with discounted pricing on retroactive benchmarking.
If you have not started Phase II A/RCx for your building(s), please reach out to us ASAP for proposals. Full ASHRAE audits can take 2-3 months to complete. Additionally, ASHRAE audits are costly, and not always necessary if exemptions can be met. We determine your least-cost route to compliance, based on your (accurate) benchmarking data.

ORIGINAL: The City's COVID-19 Public Emergency Order Impacts EBEWE Deadlines, While the Program Moves Forward

What Does This Mean? Three Facts You Need To Know About EBEWE Delays

The December 1, 2022, deadline for buildings due to comply (LADBS Building ID ending with 2 or 3), has been delayed and late compliance will not be fined. This is an update to the already tolled deadlines for Phase I benchmarking program years 2019, 2020, and 2021, AND Phase II A/RCx compliance year 2021.
Although the due dates have been paused while the emergency order is in effect, the program itself has not been paused. The city is encouraging all owners of covered buildings to submit data to continue developing energy and water efficiency programs.
Tolling of Phase II A/RCx deadlines does not change your 5-year compliance timeframe. See the schedule below. This is particularly important for buildings seeking ENERGY STAR® Certification. Certification is independent of LADBS and adheres to the EPA’s application window, which is open until 12/9/22. You cannot submit for Certification of previous years.

What Does This Mean for My Building? Action Items for Compliance

It means that you’ve bought some time; and ultimately, your building should be both in compliance with annual benchmarking and the 5-year A/RCx requirements.

For Green Econome clients, we are moving forward as though the deadlines are in place and doing everything in our power to fulfill your compliance on time.
If you have let any of your reporting lapse, Green Econome can bring you up to date. We offer multi-year contracts with discounted pricing on retroactive benchmarking.
If you have not started Phase II A/RCx for your building(s), please reach out to us ASAP for proposals. Full ASHRAE audits can take 2-3 months to complete. Additionally, ASHRAE audits are costly, and not always necessary if exemptions can be met. We determine your least-cost route to compliance, based on your (accurate) benchmarking data.

Prioritizing ESG in Commerical Real Estate

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Prioritizing ESG In Commercial Real Estate

November 22, 2022 Marika Erdely

The latest focus in sustainable commercial real estate is on “Environmental, Social, and Governance,” also known as ESG. ESG has received attention from regulators and investors, and, according to a recent report from Deloitte, “sustainability has become a strategic imperative across industries”. Real estate professionals need to begin focusing on how ESG can impact portfolios and policy. Let's identify:

What is ESG and how will it affect commercial real estate?
How will the Inflation Reduction Act benefit my real estate portfolio?

Here is a simple table identifying some of the elements of ESG:

Setting the Standard: The SEC Proposed Ruling

Soon, public companies will need to report on the three ESG categories, also known as an ESG Strategy, to their investors. The SEC’s proposed Rule on Climate Disclosure gives companies a roadmap for ESG reporting and requires disclosures related to climate-related risks that could have an impact on their businesses, whether it’s their day-to-day operations or a financial impact on their real estate assets.

The SEC proposed reporting will be part of the public corporation's quarterly and annual disclosures and will detail the company’s carbon footprint and include reporting on greenhouse gas emissions from real estate and the climate-related risks to those assets. At NAREIT’s ESG conference I attended this fall, several panelists suggested that insurance companies and banking institutions will be considering climate disclosures in their financial metrics. Additionally, it was mentioned that investors from the European Union would also be looking at ESG disclosures when considering investments in the U.S. Most public companies have been focusing on their ESG strategies, and the process of gathering data for this year’s ESG disclosures is already underway.

Privately-Held Companies and Building Owners Can Benefit

What about private companies, and the private commercial real estate owners that lease to space public companies? Private owners should also focus on having an energy-efficient property and should not ignore the trend toward ESG.

The “E” in the ESG framework stands for “environmental,” which refers in part, to real estate and the efficiency of buildings. All buildings emit carbon emissions, and these emissions (in the forms of kWh and therms) can be broken down into three kinds: Scopes 1, 2, and 3.

Scope 1: Direct emissions that stem from sources that are owned, or controlled by the organization, such as company vehicles and the fuel they burn, process emissions from industrial activities, leaks from refrigeration, etc.
Scope 2: Indirect emissions that arise from the generation of purchased electricity, heating, cooling, and steam (Any utility bill creates emissions such as electricity or gas used by the building)
Scope 3: Other indirect emissions that are directly from the supply chain of goods and services that the public company purchases. (This is the largest scope and most complicated coming from the organization’s operations, purchasing and selling goods, such as leased assets, business travel, and employee commuting)

Initially, Scope 1 and 2 emissions will be required to be disclosed by the SEC. However, public companies will soon be mandated to report Scope 3 emissions as well.

Mandated reporting means that if you have a tenant in one of your buildings that is providing products to a public company, the tenant will soon have to be reporting on their building’s emissions and activities. There will then be an effort to reduce those emissions, even if your building is not operated by a public company.

How Do You Measure Your Property’s Emissions?

As with anything new, standards and protocols are being established, along with a host of innovative technologies to harness data. As a trusted platform, Green Econome utilizes ENERGY STAR® Portfolio Manager, which gives owners data that can be used to calculate the property’s total emissions. The EPA is actively developing the platform further, to better meet the demands of GHG accounting and scope emissions reporting.

Green Econome takes a systematic approach to ESG, along with a team of advisors, we measure, identify opportunities, implement, and analyze results to ensure you are on target to achieve your environmental goals. If building certification is part of your strategy, we can fulfill those as well.

Click Here

Inflation Reduction Act: Tax Strategies and Incentives for Property Owners

There’s good news! There are many financial benefits from the new Inflation Reduction Act of 2022 (IRA) to commercial property owners and developers.

Personally, I like the investment tax credit (ITC) known as the federal solar tax credit and the fact that it is now back up from 26% to 30% of the total project cost through 2033. Currently, our solar pv projects are benefiting from 58% of the project cost being covered by this tax credit and federal and state depreciation deductions.

Section 179 (a tax deduction) of the IRA provides owners with a dollar amount per square foot if the commercial or residential building meets a certain efficiency standard. Owners can earn $5 per sq. ft. for new construction or retrofitting a building, depending on its resulting energy efficiency. It is a laddered benefit ranging from $2.50 sq. ft. for a 25% reduction in energy usage up to a maximum of $5.00 sq. ft. for 50% or more.

For multifamily landlords, Section 45L (a tax credit) allows up to $5,000 per unit (single-family or apartment) if the building meets certain energy efficiency criteria.

What's In It For Commercial Real Estate?

Energy-efficient buildings will be worth more and will be more attractive for public companies concerned about emissions. Soon, everyone will be thinking about ENERGY STAR Benchmarking —a viable tool to produce data for reporting on your building’s performance.

ENERGY STAR Benchmarking is already widely used for energy and water disclosure laws across the county (and Canada). You can view IMT's national map of programs currently in place.

As an expert in reducing commercial property emissions, I anticipate a big push to move real estate into the world of ESG reporting, which goes a long way toward environmental sustainability. Once the SEC finalizes its ruling, all public companies will be required to focus on the “E” on their buildings like never before. Additionally, I believe that when companies also consider the “S” for Social and “G” for Governance, they will ultimately be better stewards of the planet.

If you need an expert to understand your building’s energy or water efficiency and emissions, please reach out to me at Marika@greeneconome.com. At Green Econome, a team of professionals is ready to help you meet your ESG requirements, save operating costs, and increase the value of your property.

Marika Erdely, MBA, LEED AP+C, Certified Energy Auditor, Fitwel Ambassador
Marika@GreenEconome.com
(818) 681-5750

Marika is an expert in energy and water efficiency and is the Founder and CEO of Green Econome, an energy consulting and construction company located in Santa Monica, CA. Marika has over 30 years of professional financial experience and approaches sustainability through an economic lens.

Insights

Inflation Reduction Act: A Cheat Sheet

October 13, 2022 Karalyn Shima Honea

Sunworks Solar Power: Surge of new solar projects predicted, following the passage of the Inflation Reduction Act

The energy sector, among many others, has been preparing for the transition to clean energy for a while now. While strides have been made, the roadmap has been less than straight. The passage of the Inflation Reduction Act (IRA) steadies the wheel and gives consumers clear direction. So, how do we get to cleaner energy? The following blog from our friends at Sunworks Solar Power succinctly explains what the IRA includes, and how organizations of all shapes and sizes can access new incentives and choices to achieve the highest return from solar, storage, and electrification projects.

READ BLOG

Sunworks Solar Power (2022, September 23). Surge of new solar projects predicted, following the passage of the IRA – Sunworks. Sunworksusa. https://sunworksusa.com/surge-of-new-solar-projects-predicted-following-the-passage-of-the-ira/

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What is the EBEWE A/RCx Requirement?

June 16, 2022 Marika Erdely

I have been receiving many phone calls asking this same question since the City of Los Angeles sent notices to building owners on June 1, 2022. The notices were sent to owners whose properties are over the 20,000 sq. ft. threshold and were tagged to comply with the City’s Existing Buildings Energy and Water Efficiency (EBEWE) Program. Within this threshold, the notice was sent to those required to comply with Phase II of the Ordinance and have an LA City Building ID ending in either a 2 or a 3. These properties have a Phase II compliance due date of December 1, 2022.

What is an Audit and Retro-commissioning (A/RCx) Report?

This is the second year of compliance for the City’s EBEWE Phase II which is required every five years after the initial compliance year.

Audits and Retro-commissioning (A/RCX) for both energy and water are required including performing the evaluations and generating the subsequent ASHRAE Level II reports. All work for Phase II must be done under the direct supervision of a California licensed engineer or architect as specified in Division 97 of the Los Angeles Municipal Code (LAMC).

The audit reports must include recommendations to improve the energy and water usage efficiency and a cost-benefit analysis for retrofitting the properties.

Do I Have Options?

Yes! Little does everyone know, although it is noted in item 2. of the notice, that a property may be exempted from performing the A/RCx.

There are in fact energy and water exemptions that can be met to avoid a costly ASHRAE Level II audit. Contact us to learn more. Stay tuned for Blog 2

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.

CONACT MARIKA

Green EconoME Utility Incentives Consulting

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Top 3 Utility Incentives for Saving Energy

March 17, 2022 Karalyn Shima Honea

At Green EconoME we are passionate about saving building owners and operators energy, on their energy costs and maximizing their capital investments. That’s why we cringe when people tell us they finished a project and didn’t take advantage of any of the many available utility incentives. Right now, utility incentives and tax benefits for energy efficiency and clean energy generation are the vehicle that governments are using to mobilize clean energy goals. What motivates you to make improvements to your commercial real estate is yours. What matters to us is that we each benefit from the actions we take, and that those actions hold long term value.

Utility Incentives 101

Utility incentives are financial and sometimes technical support available to specified projects or equipment. They can be offered by the utility directly, a program administrator, or are publicly administered programs. This year, there has been a shift toward centralizing some incentives and programs to be available across California, rather than at the regional utility level. This shift marks California’s response to clean energy mandates and helps distribute funds equitably to all utility customers. It creates a bigger funnel for end-user incentives and rebates to assist with efficiency, renewables, resilience, EV infrastructure, and building decarbonization. Confused? Call us.

Our Top Three California Energy Saving Incentives

Aside from not knowing about available incentives, another barrier simply is that there are so many options, decision-making can be difficult. Here are some key programs that, from our experience to date, are easy to manage, pay well, and have a stable stream of funding:

LADWP Commercial Lighting Incentive Program (CLIP)This is offered through LADWP directly to its qualifying business customers. CLIP is for lighting retrofit projects where the building has an annual average monthly electrical demand (kW) above 200 kilowatts. Every efficiency project Green EconoME has completed has included LED lighting retrofits. We leverage this incentive where we can, and consistently see on average 30% savings on the total project cost.
SoCalREN Multifamily Program (SCR)The County of Los Angeles administers the Southern California Regional Energy Network (SoCalREN) programs. The SoCalREN offers financial assistance to public agencies and multifamily residential property owners for energy efficiency retrofits impacting both electric and gas use. Green EconoME has served as a consultant and contractor on several SCR multifamily retrofit projects over the past 2 years. See our Case Studies for results. We have seen energy savings exceed program requirements, and have been awarded further program credits.
California Energy Design Assistance (CEDA) ProgramCalifornia Energy Design Assistance provides complimentary energy design assistance and financial incentives for commercial, public, industrial, agriculture, and high-rise multifamily new construction projects, or major alterations that are in their early design phases. The goal of the program is for buildings to be designed efficiently from the start, thereby realizing lifelong savings and less environmental impact. CEDA helps the design team identify the most energy efficient strategies through custom energy modeling, then helps the owner implement those measures through incentives to reduce cost. CEDA, along with LADWP’s Zero By Design (ZBD) understands that every team is different and allows room for the professionals you bring to the project to complete some or all of the work, as long as it meets set criteria.

Tax Benefits

A powerful 1-2 punch is combining utility incentives with tax deductions like Section 179D, and the CARES Act Qualified Improvement Property (QIP), which allows for accelerated depreciation, while the solar tax credit (ITC) is a full credit off the owner’s tax liability. A clean energy future, regardless of how we feel about it, is the direction California is already moving. Local, state, and federal policy around clean grid infrastructure and lowering carbon emissions can strain property owners, which is why these robust incentives are available, being widely funded, and introduced at a rapid pace. Green EconoME has been helping clients navigate and manage available incentives for their projects, ensuring the richest paybacks possible. Schedule a meeting to discuss your current or future projects.

CONACT US TO START SAVING

Green EconoME is a full-service provider. Our team of multidisciplinary, qualified professionals can fulfill your 1-5-10 and are versed in the latest incentive programs and financing options. It is what our integrated approach is based on. Whether your goal is to simply comply or to fulfill ESG strategies, Green EconoME analyzes energy use, and existing conditions to provide solutions that reduce operating costs, and increase the value of your property. Contact us with questions or for pricing. Chula Vista, we are so excited for the health and future of your community, congratulations! We can’t wait to get started.

Insights

Top 4 Reasons to Pay Attention to ESG Now

November 3, 2021 Karalyn Shima Honea

Discover the opportunity for Commercial Real Estate in corporate accountability.

ESG, or Environmental, Social, and Governance is a set of standards used to evaluate an organization or community’s commitment to sustainable (Environmental), ethical (Social) practices, and outlines how those goals will be measured and achieved (Governance). Driven in large part by the boom of ESG or sustainable investing, it is important to look at the wider implications this has, specifically for commercial real estate.

You don’t have to be courting investors, or publicly traded to implement ESG strategies. The bottom line is this is the direction the world is moving. From our perspective, here are four important reasons to consider real estate ESG:

Altruism and profitability are not mutually exclusive
Operating a more environmentally friendly and equitable company/building reduces waste, cuts cost, and increases efficiency, according to 2019 McKinsey & Company Research. As an energy efficiency consulting and construction firm, this is top of the list for Green EconoME when it comes to reasons to invest in ESG.
Attract top talent & tenants
Unless you plan to go the way of the dinosaur, formalizing your corporate values and commitments and applying them to your assets will keep you competitive. Make no mistake, prioritizing ESG is a choice, just like the one your prospective tenant, lender, future employee, or buyer will make when considering you and your properties.
Plan ahead: policy and the role of ESG
Globally and locally, regulation is expanding to meet science-based goals for climate action and social responsibility. While ESG or related benchmark reporting isn’t yet mandatory, just like ENERGY STAR(r) benchmarking, ESG data is becoming a leading performance indicator for real estate, and inevitably will become a standardized source of data for government-based carbon reduction targets or other asset assessments.
Data in, reporting easy
The modalities and data collected for ESG measurement are being integrated into risk assessment, financial reporting, and other annual real estate-related requirements. ESG is proving to be a reliable source for centralized data collection that serves the purpose of many. Think of the ways this can increase the efficiency of your organization.

As much as ESG is seen as a trend, it is so because it is at the tipping point of a new paradigm defining this generation and generations to come. It is a framework to approach this decade of action that we are in. The space between energy efficiency, the main business model for Green EconoME, sustainability, and carbon reduction is growing closer, rapidly. Accounting for the impact of your business on its community and the value of who makes it hum is not only responsibility, it's economic success. If you are ready to start your ESG journey, or if you have more questions about ESG, please reach out to Green EconoME.

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3 Benefits of Green Infrastructure

August 25, 2021 Mandy Reinhart

With the Senate passing the $1.2 trillion infrastructure bill, it is apparent that there is a collective vision of redefining and modernizing our built environment. There is a call to action on how we adapt to meet the needs of future generations. We are reeling with the long-term domino effects of urban sprawl. Socioeconomic inequality, poor building design, limited reliable public transportation, and a decline in public health has brought us to a tipping point. We must prepare to revitalize our cities, retrofit our existing buildings with energy-efficient measures, and reconstruct our transportation networks.

Cleaning Up Our Existing Buildings

The existing building sector is responsible for 29% of GHG emissions, with 40% coming from inefficient HVAC systems. If buildings in Los Angeles are expected to reach net-zero carbon by 2050 as a part of the C40 pledge, there needs to be immediate action. Building systems – electrical, lighting, heating, ventilation, and air-conditioning must be retrofitted to the highest energy efficiency standards. Or better yet - break the ceiling on them.

Government subsidies and utility incentive programs need to be more accessible to building owners so they can invest in on-site power generation for their buildings, such as solar PV and batteries. We can then contribute clean energy to our outdated electrical grid and create the demand for green jobs. While we have the innovative technologies that can support such a system, there also needs to be innovative policy reform that will build these self-sufficient power systems to be scaled to the neighborhood level.

Another upgrade that building owners and citizens benefit from is the installation of a cool roof, which reflects sunlight and absorbs less heat than traditional asphalt shingles. Urban heat islands caused by non-reflective material can cause the ambient temperatures to be artificially elevated by more than 10 degrees in our cities. Dense concentrations of pavement from streets, parking lots, and roofs absorb direct heat, thereby increasing the HVAC usage and exacerbating air pollution, contributing to the poor air quality present in high-density urban areas.

Access For All

Cities thrive when they are made of well-connected neighborhoods, with reliable transit, safe bike paths, and sidewalks made for the pedestrian.

In addition to constructing sustainable buildings, we need to construct smart buildings. Buildings integrated into their surrounding streets through mixed-use design, incorporate a balanced mix of institutional uses that stimulate local economies and increase the use of public services.

There needs to be a push for creating smart circulation networks within cities and neighborhoods that incentivizes walking, biking, and public transportation. This can only be accomplished if it is less challenging to alter zoning ordinances, urban growth boundaries, and rate of growth controls. Through smart growth planning, we can adapt to our changing environment and effectively prepare for a growing population. Transportation is a primary culprit in the progression of climate change. It accounts for 29%of all greenhouse gases in the United States, and it is also one of the fastest-growing emission sectors. Leapfrog development patterns make driving even short distances necessary, due to the extensive lengths of blocks, architectural design of shopping centers, and the extensive parking requirements required to support vehicles.

One of the most powerful statements I have heard is “frequency = freedom”. The frequency of a reliable bus, light rail, subway, gives its citizens the freedom to go where they want and at whatever time they need to. It is both unsustainable and unrealistic to expect equality in a city where every citizen needs their own automobile to get to their next destination.

Becoming a Pioneer of Change

It is vital that we construct an equitable environment for all, and create space for opportunity, growth, and city-wide resiliency. It is our responsibility to meet the needs of future generations and be the leaders of innovative strategies that respond to our climate crisis. Buildings are the foundation of cities. They are a place where people work, create, and collaborate to make the impactful decisions that design our future environment. We need existing and future building owners to take responsibility for their building’s carbon footprint and be held accountable to make responsible decisions in their building operations.

How do we galvanize a community to be the pioneers of an environmentally equitable city through decarbonization and smart growth planning? We need to make citizens and building owners aware of how crucial buildings are in reversing climate change, cleaning our air, and the potential economic savings that come from a carbon-neutral building. Cities do this by working directly with building owners, engaging in public outreach, and being educators.

Mandy Reinhart, LEED AP Neighborhood Development, Fitwel Ambassador, has earned her BS in Environmental Sciences with a Minor in Sustainability. She is passionate about urban planning and studying neighborhood design. As Assistant Project Manager at Green EconoME, Mandy can be found working with clients out in the field, moving their efficiency goals forward.

CONACT MANDY

Insights

Guide to LA EBEWE Phase II A/RCx Requirements

February 4, 2021 Karalyn Shima Honea

Los Angeles Existing Buildings Energy and Water Efficiency Ordinance (EBEWE): Phase II – What to Expect

If your building is a covered building and ≥20,000 sq. ft. (a.k.a. needs to comply with EBEWE), then you should have a few years of ENERGY STARⓇ benchmarking under your belt. If not, stop reading and call us immediately at (424) 422–9696! In addition to your annual benchmarking, every five years you are required to show that you have either maintained a high-performing building or are taking steps to become one. Our job is to keep you informed, efficient and in compliance. Your job, when it comes to Phase II, is to make sure you have an efficiency budget in place and enough time to comply by your unique due date.

Below, we’ve outlined the program and Phase II compliance. We’ve also included an infographic for you visual learners, and some tips to comply:

EBEWE Program Summary

Local Policy: Los Angeles’ Green New Deal

Phase I Benchmarking Report: Due by June 1, annually

Phase II Performance Report: Due by December 1, every five-years based on the last digit of your LADBS Building ID

Program Fees: LADBS registration fee + surcharge for benchmarking is $66.41 / building / year, and $183 per audit/RCx confirmation submittal (subject to change)

SEE IF YOU ARE EXEMPT

The EBEWE Phase II Requirements

For Phase II, Building owners must either complete an ASHRAE Level II audit and retro-commissioning (RCx) OR meet one of the exemptions noted below before their compliance due date, which is determined by the last digit of the building’s LADBS Building ID.

EBEWE_Chart — https://www.betterbuildingsla.com/_images/content/EBEWE_Ordinance_Brochure.pdf

Prescriptive Path

a) ASHRAE Level II Audit
The in-depth identification and documentation of a building’s energy and water-use equipment. Audits examine existing conditions to pinpoint potential areas of improvement for energy and water efficiency. Must meet or exceed ASHRAE Level II standards.

b) Retro-commissioning (RCx)
RCx is the re-tuning and maintenance of existing systems (energy and water). Your ASHRAE Level II audit will list recommended RCx measures. It will be important to have an implementation plan and budget in place prior to your due date.

Performance Path

Buildings that do not have to go through an Energy Audit and Retro-commissioning qualify for one of the following exemptions:

ENERGY STAR Certification: The building has received this certification from the EPA for the year of the building’s compliance due date, or 2 of the 3 years prior.
For buildings not eligible to receive an ENERGY STAR score, the building must perform 25% better than the national median of similar building types. This data is available through your benchmarking reporting.
The building has reduced its Source Energy Use Intensity (EUI) by 15% when compared to the five years before a building’s compliance due date.
Buildings that do not have a central cooling system must retrofit four of six prescribed energy efficiency measures noted in the EBEWE guidelines (available upon request).

Water Exemption to the Audit and Retro-commissioning:

Buildings that meet one of the below exemptions do not have to go through a Water Audit and RCx:

The building has reduced its water use intensity by at least 20% when compared to the five years prior to the building’s compliance due date.
Buildings that do not have a central cooling system must retrofit two of three prescribed water efficiency measures noted in the EBEWE guidelines (available upon request).
The building’s water use conforms to the LA Municipal and Title 24 Code in effect at any time during the five-year compliance cycle.
The building is new and has been occupied for less than five years from its occupancy date based on the Temporary or final Certificate of Occupancy.

*All exemptions must be certified by, or performed under the supervision of, a California licensed architect or engineer.

Know the Facts: Compliance Tips

Don’t be fooled into believing your building MUST receive an audit to comply. Not all buildings need to be audited. The price of an ASHRAE Level II audit can be significantly higher than available exemptions, so make sure you are being advised on the most efficient and cost-effective Phase II path to compliance for your building(s).
Performance metrics rely on twelve months of actual energy usage and information about the operations and physical characteristics of the building’s type and use. If this information is estimated or defaulted in your benchmarking report, the metrics will not be correct. Make sure your building has been accurately benchmarked.
As you see, this isn’t something that can be done quickly, or for free. If you need more information on creating a budget or financing options, call us.
Cities throughout the state (and country for that matter), also have local energy efficiency policy. If you have buildings outside of LA, make sure you are in compliance by checking our 2021 Guide.

As part of Green EconoME’s compliance services, we offer a consultation on the report's results, which includes an explanation and recommendations for energy efficiency improvements and how to meet EBEWE Phase II compliance. We will always make recommendations in the best interest of your building, budget and efficiency priorities.

Contact Green EconoME to meet your compliance requirements.

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California Existing Buildings Energy Disclosure Guide: 2021

January 19, 2021 Karalyn Shima Honea

California’s energy efficiency action plan for existing buildings is ramping up in 2021. We are offering this guide to help identify what your city’s climate policy is and what the requirements are for existing commercial and residential buildings. Included are some tips for making the most of your efficiency compliance.

Why Existing Buildings?

Existing buildings are the second-largest source of GHG emissions in California. Identifying energy and water waste in our buildings provides valuable insight for policymakers. The chosen method of identifying is through local and state-mandated Energy Benchmarking and Performance Reporting. Benchmarking is the comparison of a site’s energy performance to similar type and use buildings over a specified period of time. ENERGY STARⓇ Portfolio Manager is the approved tool used to complete and submit benchmarking reports for compliance. Here are a few overall notes on meeting energy disclosure requirements:

The owner of the building is the responsible party
These benchmarking laws are required annually
“Covered or disclosable buildings” are the building types that need to comply. Exceptions exist and vary per ordinance so be sure to check with your individual city’s program or contact us for program requirements
When you comply with your local benchmarking ordinances, the city shares the data with the state, placing you in AB 802 compliance as well
Benchmarking provides insight into how efficient or inefficient your building is operating. Efficient buildings provide for lower operating costs and higher market valuations
Funding: there are available rebates and incentives through your utilities and in some places, local funding for compliance and energy efficiency projects. Most ordinance pages have links to these programs. Also check your electric, gas, and water company webpages for info, or contact us
The State of California and the City of San Diego only require annual energy disclosure. However, some cities also require buildings to become energy efficient or show their performance by meeting Energy Star Certification requirements

5 Tips for Compliance & Becoming a High-Performing Building

Hire Green EconoME to complete your compliance and energy efficiency consulting. We understand that you have benchmarking service provider options; however, from our experience benchmarking over 1,600 buildings properly, not all benchmarking is the same. We place emphasis on accurately measuring your data, rather than meeting the bare minimum for compliance. It is not only the legal thing to do, it is also more economic in the long run. The data in your benchmarking report is valuable to the operation and investment of your property, and the basis of your performance reporting. If corners are cut, you may end up paying more in unnecessary (and costly) audits or having to rehire another firm to correct the work.
Add tenant authorization to your lease to release energy and water use data from the utilities. In some cases where the tenants are the electric/gas/water account holder, they are required to sign an authorization to share their usage data. As you can imagine, this is time consuming and not always successful. In lieu of the authorization, we can submit a copy of the lease if it includes authorization language.
Create an energy efficiency budget. The Better Buildings Financing Navigator is a great resource which outlines common barriers, solutions and considerations to energy financing. These ordinances are all-for-none if building owners and operators do not invest in the goal of achieving more energy and water efficient buildings by 2030. Visit our case studies for examples of the cost to savings you can achieve through efficiency projects.
Leverage available rebates and incentives. In addition to outside funding and loans, there are robust programs for energy efficiency and clean power through utilities, local and federal government. Word on the street is that further funding (and further policy) will be proposed soon after the new administration takes office. Green EconoME calculates available rebates & incentives savings into our estimates and/or audit reports.
Put your data to work. Use monthly data to track your energy & water use in ENERGY STAR Portfolio Manager. Demonstrating energy and water reductions through the benchmarking tool in some cities is a path to performance compliance. Either way, you now have a powerful tool that tracks your ongoing use, so take advantage of it. Green EconoME offers consultations to assess your building’s performance and identify problem areas or opportunities for savings.

Our hope is that the purpose of the requirements is clear and can inspire long term efficiency in your buildings. Our city and state leadership also recognize this can come as a big ask, and so they are supporting owners and communities through funding programs. Take advantage of them. Most importantly, existing buildings are recognized across the globe as a vital part of the solution. That is a big opportunity when you throw your hat in the ring. Good luck and call us if you need us. We cannot wait to see what California buildings can do.

Benchmarking Only

Benchmarking and Performance Reporting

Statewide Program

California State AB 802

State Policy: Clean Energy and Pollution Reduction Act - SB 350

Benchmarking Report: Due by June 1, annually

Performance Report: N/A

Fees: N/A

Program Summary: Commercial buildings with more than 50,000 sq. ft. and no residential utility accounts, and multifamily residential buildings with more than 50,000 sq. ft. and 17 or more utility accounts must submit whole-building energy benchmarking reports annually.

Enforcement: Per Public Resource Code #25321, the California Energy Commission is able to enforce this law. This code states:¨If after five working days, the owner does not comply, the owner will be subject to a civil penalty (after a hearing that complies with constitutional requirements. Civil Penalty will not be less than $500 nor more than $2,000 for each category of data for each day the violation existed and continues to exist.”

Bay Area Programs By City

San Jose Energy and Water Building Performance Ordinance (BPO)

Local Policy: Climate Smart San Jose

Benchmarking Report: Due by May 1, annually

Performance Report: Due every five years based on building size and last digit of APN

Fees: $150 annual benchmarking reporting fee

Program Summary: Commercial and multifamily buildings 20,000 square feet and over required to submit the whole building energy and water benchmarking report annually to the City. Starting in 2021, buildings must submit a report demonstrating high-performance or efforts toward reducing energy and water use. See program details and schedule for performance compliance here.

Enforcement: “It is unlawful to violate any provision or to fail to comply. Each and every violation shall constitute a separate violation each day for ongoing violations and shall be subject to the remedies and enforcement measures authorized by the Code.”

San Francisco Existing Buildings Energy Performance Ordinance

Local Policy: San Francisco Climate Action Plan

Benchmarking Report: Due annually on April 1*

Performance Report: Required every 5 years for nonresidential buildings

Buildings 50,000 square feet and larger: ASHRAE Level II audit
Buildings 10,000 to 49,999 square feet: ASHRAE Level I audit

Fees: N/A

Program Summary: Existing non-residential buildings with 10,000 square feet or more of space that is heated or cooled and existing multifamily residential buildings with 50,000 square feet or more of space that is heated or cooled. The Ordinance has two separate requirements: whole building energy benchmarking and energy audits.

Enforcement: “Fine can be levied 45 days after the written notice of violation. Buildings of 25,000 sq.ft. and larger can be subject to fines of $100 per day, up to a maximum of $2,500 per violation. Buildings smaller than 25,000 sq.ft. can be subject to fines of $50 per day, up to a maximum of $1,500 per violation.”

Berkeley Building Emissions Saving Ordinance (BESO)

Local Policy: Berkeley Climate Action Plan

Benchmarking Report: Due by July 1, annually for buildings 25,000 sq. ft and above. Buildings 15,000 sq. ft and above will be required to comply beginning July 1, 2022.

Performance Report: Assessment is due every five-years for buildings over 25,000 sq.ft., and time of listing for buildings under 25,000 sq. ft.

Fees: No benchmarking fees. $240 energy assessment filing fee for large buildings over 25,000 sq. ft. See table for a time of sale assessment filing fees.

Program Summary: Commercial and residential buildings below 15,000 sq. ft. are required to complete and submit an energy assessment at the time of sale. Assessments must be completed by registered assessors/auditors. Buildings 15,000 sq.ft. and above must submit benchmarking reports annually, in addition to their assessment requirement. See table:

guidechart — BESO - City of Berkeley, CA - https://www.cityofberkeley.info/BESO/

Enforcement: “Any person who violates the Ordinance may be subject to a fine of $100 for each violation, and an additional fine of up to $25 for each day that the violation continues, up to a maximum of $1,000 per violation.”

Southern California Programs By City

Los Angeles Existing Buildings Energy and Water Efficiency Program (EBEWE)

Local Policy: Los Angeles’ Green New Deal

Benchmarking Report: Due by June 1, annually

Performance Report: Due by December 1, every five-years based on the last digit of your LADBS Building ID

Fees: LADBS registration fee + surcharge for benchmarking is $66.41 / building / year, and $183 per audit/RCx confirmation submittal.

Program Summary: Buildings 20,000 sq ft or more in gross floor area privately owned or owned by a local agency of the State in the City of Los Angeles must report energy and water use annually, and a performance report every five years, based on qualifying performance metrics or prescribed efficiency measures outlined in the ordinance. Head to our EBEWE page for further program details.

Enforcement: Program non-compliance fee of $202 / building, plus disruption to LADBS permitting requests, or transactions. This fee is subject to double digit interest each month.

City of San Diego Building Energy Benchmarking Ordinance

Local Policy: The City of San Diego Climate Action Plan (CAP)

Benchmarking Report: Due by June 1, annually

Performance Report: N/A

Fees: N/A

Program Summary: Commercial buildings over 50,000 square feet and multifamily and mixed-use buildings greater than 50,000 square feet and with 17 or more residential accounts in the City of San Diego are required to submit whole-building energy data (water not required).

Enforcement: Violations may be prosecuted as misdemeanors subject to the fines and custody provided in San Diego Municipal Code. Additionally, the Department Director may seek injunctive relief and civil penalties in the Superior Court pursuant to San Diego Municipal Code.

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Everything You Need to Know About Decarbonization

November 30, 2020 Karalyn Shima Honea

Human activities such as burning coal and fossil fuels have led to increases of roughly 90% in carbon dioxide emissions and 78% in greenhouse gas emissions globally since 1970. As of 2014, the United States is responsible for nearly 15% of that CO2. The five highest polluting sectors are energy production (grid), land-use (deforestation, agriculture), transportation, industrial activities...and buildings.

Across the globe, the above statistics are widely understood. The fact that it is our responsibility to solve and clean up the problem is also widely understood. Local, federal, and international energy policies have aligned with deep decarbonization targets by 2050. In an effort to meet these goals, collaborative programs, coalitions, and think tanks are energized, creating coordinated solutions across the private sectors.

These coordinated efforts along with meaningful change, are fundamental to adopting a paradigm shift. In this article, we hope to offer a clear understanding of what decarbonization is, and a strong business case for why becoming part of the solution works, no matter where you place the value.

Defining Decarbonization

Decarbonization is the process of removing carbon. The act of decarbonization, or to decarbonize is to reduce or eliminate greenhouse gas emissions in order to address atmospheric pollution and meet climate goals. This is the basis of the decarbonized economy.

The Decarbonized Economy

Mobilized by climate policy, a decarbonized or low-carbon economy uses clean power sources and practices to lower greenhouse gases, specifically carbon dioxide output into the atmosphere. The need to deploy clean energy strategies with speed and to scale, stimulates research, innovation, job creation, and economic growth. Additionally, a decarbonized economy prioritizes ecosystem resilience, including not only biodiversity but humanitarian issues.

What are the benefits of a decarbonized US economy, specifically? The World Resource Institute compiled data that shows clear economic benefits to decarbonization.

It’s cheaper to save the planet than it is to ruin it. Low-carbon technologies have become more efficient and affordable compared to fossil fuels.
US clean energy investment and deployment are creating approximately twice as many jobs as those in fossil fuels.
Net-zero means net-savings for the US. Despite the trillions in spending projected for 2050 emissions targets, energy revenues are greater. Morgan Stanley Research released data on how decarbonization will strengthen the economy, as well as listed their 5 recommended investment strategies.

Strategies for Decarbonization

So how are we going to do this? The strategies to achieve deep decarbonization nationally and globally are wide and well, deep. For example reforestation, carbon capture, family planning are all ways to offset and reduce emissions. For our purposes, let’s focus on our business: strategies for decarbonizing buildings.

Building decarbonization is segmented into embodied carbon, which in simple terms are the cumulative emissions from construction and operational carbon which are the emissions from the use of a building. The primary strategies in operational decarbonization are:

Decarbonize the grid. The grid is the biggest culprit of GHG emissions. Our blog about SCE rate increases spotlights how our aging infrastructure is sparking hazardous weather events, and how utilities are depending on their customers to help upgrade and electrify the grid with clean, renewable energy.
Electrification of buildings. Switching from fossil fuels (burning natural gas) to electric is another key component to moving the needle. So much so that new building codes are being implemented in certain cities, like Berkeley, CA, banning the installation of natural gas lines. Fuel switching incentives, coming in 2021 for multi-family and single family homes, will be another tool, enabling customers to move from carbon-emitting gas appliances to cleaner electric ones.
Self-generation. Solar, battery storage, and other scalable renewables can move you to net-zero the moment it goes live.
Retrofit to cleaner, next-gen units. The implementation of green technology is pivotal to the progress that needs to be made. One household, one building at a time truly does make the difference.

These strategies are mainly focused on operational decarbonization; however, it’s important to be embodied and operational inclusive. Even with retrofits to existing buildings, coordinating design, new technologies, methods, and deeper savings through synergistic measures will increase the value and efficacy of the project.

Climate Transition: Environmental Effects of Decarbonization

Globally, if we can accomplish this mid-century deep decarbonization we will make strides in restoring our vital ecosystems for a millennium. If as a nation we can overcome the barriers we face to take action, we can, year by year reverse the climate crisis we already experience through increased and costly events such as wildfires, flooding, hurricanes, pandemics, and heat waves. Climate change is interconnected with human development as well. Stabilizing temperatures stabilize our crops and food supply chain. Energy efficiency benefits everyone, but especially low-income families. Making cleaner, low-cost energy available in poorer communities ensures energy security and access to healthier environments inside homes and neighborhoods.

Your Path to Decarbonization

Green EconoME founder and CEO, Marika Erdely is invested in getting customers to their decarbonization goals and inspired by getting to net-zero. “The ability to eliminate gas in a building, replace it with electrical equipment, add solar PV, and a storage battery and then go off the grid while also reducing ongoing operating costs is exciting. Electrical costs will continue to rise, but if we are able to add the generation and storage factor to the building, we will be able to offset these increases in costs. To get to a net-zero carbon building would be fantastic!” Marika speaks in detail on this topic on the Building the Future podcast. Multi-family residential is one good example of a property type where we see opportunity for deep savings and impact on the community. Paired with the SoCalREN incentive program, decarbonization of the building and providing low-cost energy to each tenant is achievable.

Marika is also Co-Chair of the New and Existing Building Committee of the USGBC, LA Chapter, Decarb Committee. A collaboration of Los Angeles’ energy leaders, their mission is to transform the way buildings and communities are designed, built, and operated. Schedule a personal Q&A to explore and get started on becoming part of the solution.

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