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%

DOWNLOAD ENERGIZE DENVER BROCHURE

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 [email protected].

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So, you just received your phase I benchmarking report back. Now what? If Green Econome did your benchmarking, it’s time to schedule your consultation, which is included with your services. During this meeting, we review the results of your benchmarking, discuss areas of concern, and identify potential opportunities for savings. Your building’s benchmarking gives you the foundation to understand how the building is performing. This baseline is required in most building performance ordinances, and it’s the key to unlocking energy and water reduction and cost savings.

Having a comprehensive benchmarking report prepares you perfectly for phase II audits and retrofits. With all the preliminary information in hand, let’s dive into what happens next.

What is Phase II?

If you benchmarked for LA EBEWE Phase I, then you should be looking at Phase II Audit and Retro-commissioning (A/RCx) requirements. If your building does not meet an exemption, you will need an ASHRAE Level II audit. These energy and water audits summarize your building’s performance and then take a detailed account of the specific conditions of your building. Each report identifies room for growth with a cost-benefit analysis of various retrofits that you could complete.

With compliance being required every 5 years, we have found that our clients are best off investing in retrofits to improve their property and qualify for an exemption rather than spending thousands on audits to remain compliant but not gain the value of becoming more efficient.

Across all ordinances with building performance standards (BPS), this second phase is one of the key parts of your local government’s strategy to meet climate action goals. And if a BPS hasn’t already been implemented in your city or state, you can expect it to be in the future as more governments adopt these programs.

It’s important to remember that this audit benefits your building. On average, 30% of the energy used in commercial buildings is wasted, and identifying these inefficiencies presents an opportunity to significantly reduce your operating costs.

Improving Efficiency

Once you have someone complete the audit, you will have a clear understanding of where your building is struggling and what type of project it would benefit from. This is where retrofits come into play.

A great example is a large aerospace company was looking to reduce their energy usage at their manufacturing plants. After upgrading their lighting to LED, incorporating occupancy sensors, and installing more efficient HVAC equipment, we were able to reduce their energy cost by 25%.

We live for projects like that. There are thousands of buildings who benchmark just for compliance sake without using that valuable data to drive high-return improvement projects. Not only are they missing out on savings, but they are having to spend the money unnecessarily on audits moving forward. If you want to see an example of an audit, reach out to us and we can walk you through one!

Why Should I Care?

Beyond the environmental benefits of making your property as efficient as possible, your business becomes future-proofed and saves on costs.

Future Proofing

Efficient buildings ensure long-run operational reliability. While others are paying obscene amounts of money for rising energy costs, you will be doing the opposite while protecting the viability of your investment. And as your local government continues establishing building efficiency regulations, you will be eligible for compliance exemptions having already completed your retrofit.

Cost Saving

In terms of immediate effects, inefficient buildings are expensive. If your benchmarking revealed obvious inefficiencies, a level II audit and potential retrofit can remedy the issue. These don’t have to be intrusive projects. We start with no or low-cost adjustments, then make the best recommendations based on our cost-benefit analysis. Sometimes, it can be as small as a new thermostat system that can make improvements.

Getting Started

If you feel like all of this is confusing, that’s because it is. Every term has its own rabbit hole of information that could leave you with more questions than answers. That’s where we thrive. We manage this whole process for you. Starting with benchmarking, then the audit and our free follow-up consultation to walk you through the important takeaways.

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 [email protected].

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While there is a seemingly endless list of changes being made by the federal government, especially with respect to ESG and sustainability standards, many states are carrying on as usual. On the state level, New York, New Jersey, Illinois, and Colorado have joined California in continuing to uphold building performance standards.

With so much going on, let’s review existing standards and upcoming reporting deadlines to make sure everyone is up to date.

Reviewing LA EBEWE and Standards in SoCal

If you are reading this post and are located in the Los Angeles area, odds are you are already well aware of LA EBEWE. As a quick refresher, the City of Los Angeles Existing Buildings Energy and Water Efficiency program is a two-part ordinance. Phase I benchmarking required reporting for commercial buildings with more than 20,000 sq. ft. and no residential utility accounts, and residential buildings with more than 20,000 sq. ft. and 17 or more utility accounts. Phase II Audit/Retro-commissioning (A/RCx) requirements are due every 5 years and compliance is based on the benchmarking and performance results of the building.

Most currently, if your building ID from LADBS ends in 8 or 9, your compliance due date is December 1, 2025. That’s this year! While that may seem daunting, exemptions can streamline the entire process and save you money. You can dive into that here.

What’s Happening Across California?

AB 802 requires commercial buildings over 50,000 sq. ft. with no utility accounts and multi-family residential buildings with 50,000 sq. ft. and more than 17 utility accounts to make benchmarking reports annually.

Beyond Los Angeles, the state of California has continued pushing energy compliance and reporting standards. Most notably, Senate Bills 253 and 261, and Assembly Bill 98. SB 253 and 261 are part of the state’s Corporate Climate Data Accountability Act, requiring businesses to report on their emissions and climate-related financial risks. AB 98, on the other hand, impacts warehousing standards, implementing several specific requirements for logistics use facilities of varied sizes.

Locally across California, many cities have ordinances like LA EBEWE such as:

States That Are Following Suit

You may be thinking “oh, well that’s just California”. Well, not quite. In addition to California, New York, New Jersey, Illinois, Colorado, and other states nationally have followed suit. Each has come up with their own reporting standards, along the lines of California’s reporting bills. It is likely that more states are coming.

Moreover, many cities across the country have local ordinances that will require various levels of reporting and building performance standards. Examples that come to mind are Boston BERDO and Orlando BEWES.

How Do I Afford the Reporting Process?

If you find that you are one of many who are required to report it can be daunting, especially financially. Luckily, there are many ways to fund the reporting and retrofitting process.

For LA EBEWE, 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. If you are eligible, you can also gain ENERGY STAR Certification which can help with the lease rate and marketing of your property.

High performing, efficient buildings also save money on utility bills and attract higher value tenants that can help offset the costs of an audit or retrofit. There are also many opportunities for tax credits and other financial incentives for buildings that exceed standards depending on your region.

Where Can I Learn More?

Depending on where you are located, you should review the local and state requirements for your business or property. Green Econome specializes in consulting through these processes and has tons of informational materials for ordinances across the country.

The most important part is starting your benchmarking and audits now. These building compliance projects are not done overnight. By getting ahead of the game you will be able to offset future costs and reduce your current operating expenses.

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 [email protected].

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With the impacts of greenhouse gas emissions already being seen across the world, it is important now more than ever to plan for the future.

If you follow Green Econome, then you probably read about the Climate Corporate Data Accountability Act (SB 253). Senate Bill 261 works alongside it, acting as its little brother. As with our previous post, we will discuss who is impacted by it, and what exactly they are expected to do. Let’s dive in.

What’s the Purpose of SB 261 and Who Needs to Report?

This bill was prefaced with the following assumptions:

  • Climate change is impacting California’s communities and economy.
  • Global leaders have established that long-term economic strength is dependent on an economy’s ability to withstand climate-related risks.

The state decided to pass SB 261 to improve transparency amongst businesses that operate in California and their preparedness for the impacts of climate-change.

Covered entities are businesses that operate in California and had more than $500 million in revenue in the prior fiscal year. As with SB 253, this revenue figure applies to the entire business, not just the business it does in the state.

Here’s the Specifics of SB 261

Covered entities are expected to report in accordance with the framework outlined by the Task Force on Climate-related Financial Disclosures (June 2017). The first report will be on or before January 1, 2026 and biennially moving forward. The report must be publicly accessible (via corporate website, or other means).

Additionally, the state board will contract with a climate reporting organization to prepare a report that reviews a subset of the risk reports and analyzes the systemic and sector-wide climate-related financial risks in California.

Additional Points to Consider

For larger businesses, they only need to report on the parent company level. Each of its subsidiaries are not expected to report individually. Also, for any business that is subject to regulation by the Department of Insurance, they are not expected to report. If any covered entity does not complete a report consistent with the required disclosures, they need to complete a report to the best of its ability and provide a detailed explanation for reporting gaps.

What is the Cost to Comply?

Maybe the better question is what is the cost to everyone if companies don’t comply? But as for the law, there are associated fees due when filing the report. While the bill does not define the amount, it specifies that it will be, “an amount adequate to cover the state board’s full costs of administrating and implementing this section”. Any proceeds will go to the Climate-Related Financial Risk Disclosure Fund, which will continuously be appropriated toward purposes of the bill. Failure to report may impose a penalty of up to $50,000 in a reporting year.

First Step for Covered Entities

It is essential that businesses work on their data collection immediately and engage with reporting experts. If you are looking to further your emission reductions and save on operating costs, please reach out.

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 [email protected].

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Let’s be honest, government writing is boring. These bills can be bothersome to read – I would be lying if I said I didn’t have to read it a few times before fully grasping its contents. That being said, SB 253 has an interesting framework that will improve transparency for businesses operating in California and their contributions to greenhouse gas emissions 

Whether you are a consumer, business owner, or are just curious about one of California’s latest regulations, I’m here to help break down exactly what this bill means. In this post, we will cover what needs to be reported, who needs to report, and the implications of the Climate Corporate Data Accountability Act.

You should also see our post about SB 261, the adjoining senate bill regarding climate-related financial risk. 

What’s the Purpose of SB 253 and Who Needs to Report?

The purpose behind this bill is to improve transparency and accountability amongst businesses that operate in California. The state recognizes that climate change poses a threat to companies’ long-term economic success and the value chains they rely on. Thus, emphasizing the importance of companies being transparent about their contributions to greenhouse gas emissions. 

However, this bill does not apply to all businesses across the state. Reporting entities are any businesses (corporations, LLCs, Partnerships, etc.) that operate in California and had more than $1 billion in revenue in the prior fiscal year. This revenue standard applies to the entire business, not only the revenue generated in California. 

Here’s the Specifics of the Climate Corporate Data Accountability Act

The Clean Air Resources Board of California (CARB) oversees the specific reporting requirements and ensures that the standards are updated as needed in the coming years.  

Although that information has yet to come out, we do know it will focus on three types of emissions: Scope 1, Scope 2, and Scope 3. 

What Needs to be Reported?

Scope Emissions Pyramid

Scope 1 Emissions: 

  • All direct greenhouse gas emissions that stem from sources that a reporting entity owns or directly controls, regardless of location 
  • Including but not limited to fuel combustion activities 

Scope 2 Emissions: 

  • Indirect greenhouse gas emissions from consumed electricity, steam, heating, or cooling purchased or acquired by reporting entity, regardless of location 

Scope 3 Emissions: 

  • Indirect upstream and downstream GHG emissions, other than scope 2 emissions, from sources the entity doesn’t own or control 
  • May include but is not limited to:  
    • Purchased goods or services 
    • Business travel 
    • Employee commutes 
    • Processing and use of sold products 

What is the Timeline?

Additional Points to Consider

In addition to creating and publicly disclosing the reports, reporting entities must also engage with a third-party assurance provider to ensure accurate information.  

Upon submission of reports, businesses will also need to pay a fee to CARB that has yet to be set. If they fail to report, the board can distribute fines upwards of $500,000 depending on the case. 

If you are worried about reporting your first cycle, it is worth noting that CARB has issued an Enforcement Discretion Notice. Thus, for the first reporting cycle, reporting entities are only required to report information that they are already tracking at the time of the bill’s passing. 

How to Prepare

It is essential that businesses work on their data collection immediately and engage with reporting experts. Even though the first cycle has been slightly altered, these reports aren’t going anywhere. In fact, they are likely only going to become more extensive.

3 Ways We Can Help With SB 253 Compliance

1. Data Collection, and ENERGY STAR® Benchmarking 

The foundation of SB 253 reporting is in the collection of data and benchmarking energy, water, and waste use. Benchmarking helps you develop a baseline understanding of your property’s performance and prepares your data for reporting. 

2. Third Party Verification 

After collecting all the required data for a report, it must be verified and audited for accuracy and compliance. Green Econome acts as a third-party verification entity by scrubbing data to evaluate and verify a company’s greenhouse gas emissions. 

3. Consulting

If you are looking to further your emission reductions and save on operating costs, please reach out. Properties and businesses can save immense amounts of money by reducing emissions, lowering operating costs, and setting themselves up to report impressive data. Using the data collected, Green Econome can consult and provide businesses with strategic plans to increase efficiency and reach its savings goals.  

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 [email protected]. 

DOWNLOAD SB 253 BROCHURE

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Approved by Governor Newsom in September 2024, Assembly Bill No. 98 (AB 98) is making waves in California’s logistics development and has left many in the logistics real estate industry grappling with its implications. While the new energy efficiency requirements bring challenges, it also opens the door to unexpected opportunities in warehouse sustainability. 

What if complying with AB 98 could save money, attract tenants, and give logistics properties an edge above their competition? Let’s look at the bill and how to take advantage of it. 

What Is AB 98?

Taking effect on January 1, 2026, this bill is poised to change the future of logistics in California. Its main goals are to reduce the environmental impact of logistics developments, particularly for warehouses near sensitive receptors. Since the bill also incorporates forthcoming California Title 24 building energy standards and CALGreen reach codes, it poses a challenge to the development of logistics properties in the state. 

AB 98 Key Terms

Logisitics Use Facility

Which Building Types are Affected by AB 98?

To reduce the impact on surrounding communities and set up infrastructure for a more efficient future, any newly proposed logistics development or existing ones expanding by 20% and within 900 feet of a sensitive receptor, will face many new restrictions.  

What are 21st Century Warehouse Design and Build Standards?

  • Truck loading bays will need to be oriented away from sensitive receptors
  • New minimum distances between loading bays and residential areas
  • Updated mitigation standards for noise and light pollution using screening and buffering
  • Must incorporate energy-efficient features, such as EV charging infrastructure, PV solar panels and battery storage, cool roofing, and high-efficiency HVAC systems

In addition to the updated building standards, facility operators will need to submit truck routing plans to and from the state highway system that avoid sensitive receptors. AB 98 also seeks to protect affordable housing, requiring a 2-to-1 replacement of demolished housing units that have been occupied within the last 10 years.  

Who is Affected by AB 98?

As with most newly passed bills, there are many stakeholders that will be impacted. Logistics owners and developers will certainly face higher costs as they design and build around the updated building regulations. While existing properties are unaffected, any new developments or current buildings wanting to expand by 20% or more will need to be green building compliant 

Simultaneously, the communities surrounding these facilities will benefit from reduced pollution and face fewer disruptions from truck routes. 

Top 5 Ways to Offset AB 98 Development Costs

1. 21st Century Warehouse Retrofitting

Retrofitting existing facilities with features like PV solar panels, LED lighting, and high-efficiency HVAC systems will be essential in being AB 98 compliant. If a property is looking to expand, having these features will make the entire development process simpler and more cost effective in the long run. 

2. Cost Offsets from High-Efficiency Developments

By optimizing logistics developments to be as energy efficient as possible, building owners can save on operational costs, offsetting the more expensive regulations required under AB 98. Additionally, they could take advantage of tax incentives and rebates for renewable energy adoption, further offsetting the cost of becoming AB 98 compliant.

3. Property Value Enhancement

Beyond basic level compliance, qualifying for building certifications such as ENERGY STAR, Fitwel, LEED, and WELL can make your development more attractive to investors and prospective tenants. Having higher-value tenants and certified buildings can give you a significant competitive advantage while other developments struggle to become compliant.  

4. Roadmap to Become AB 98 Compliant

With all the new regulations of California warehouse compliance, it can be daunting to adjust. A consultant, such as Green Econome, can help owners procure the necessary experts, manage the implementation of AB 98 requirements, and help secure financial incentives. Additionally, Green Econome can measure and monitor savings through ongoing l benchmarking of existing data and find the most effective path to staying compliant with AB 98 and current energy policy. 

5. Facility Futureproofing

Although AB 98 is extremely expansive in its regulations, it is likely just the beginning of the transition towards more sustainable practices both within the commercial real estate industry, and the ESG requirements of the tenants that occupy those spaces. The way I see it, forward-thinking developers and real estate owners have the chance to get ahead of the curve and improve their property’s efficiency to protect the longevity of their investments.  

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 regulations and make sure your property is exceeding basic-level compliance. Furthermore, we can recommend solutions that will increase the NOI of your property and increase market value. Please Contact Us for more information or to get started with your project. 

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Are you ready for the next era of warehousing in CA? Watch the presentation recording of AIR CRE’s Town Hall for an exclusive webinar with Marika Erdely, Founder & CEO of Green Econome, as she provides strategic guidance on how to navigate the new legislative requirements of AB 98. Learn how to build the 21st Century Warehouse—an efficient, sustainable, and compliant facility that reduces environmental impact while increasing property value.

KEY TAKEAWAYS

  • A clear understanding of AB 98’s compliance requirements.
  • The long-term benefits of futureproofing your building.
  • Insight into the financial incentives for energy-efficient designs.

ABOUT AIR CRE

AIR CRE is an innovative, member-owned organization that provides commercial real estate professionals in Southern California with the critical tools they need to be successful. AIR CRE curates the best resources that the industry has to offer, and packages them together as a single integrated network. Members have unparalleled access to a system of market research, property listings, contracts, networking, education and dispute resolution services.

As Boston tightens its regulations to combat climate change, building owners are facing new challenges to stay compliant with the Building Emissions Reduction and Disclosure Ordinance (BERDO). If you own or manage a large commercial property, understanding how to navigate these standards is crucial to avoid fines and penalties. That’s where Green Econome steps in—helping you comply, reduce emissions, and achieve long-term energy savings. 

What Are BERDO Emissions Requirements? 

To reduce the environmental impact of Boston’s largest buildings, the city has set strict emissions standards that gradually lower every five years, aiming for net-zero emissions by 2050. Here are the key points you should be aware of: 

  • Buildings over 20,000 square feet or residential properties with 15+ units must comply. 
  • By 2025 or 2030 (depending on your building’s size), you’ll need to report your energy use and greenhouse gas emissions to the city annually.  
  • Every five years, buildings must either reduce emissions by 15% or complete a detailed energy assessment. 

Emissions reduction schedule by building type: 

How Green Econome Simplifies BERDO Compliance  

We specialize in helping Boston commercial real estate owners meet energy benchmarking and emissions reduction targets. With our expert team, you can: 

We assist in benchmarking, tracking, and reporting your building’s energy use and emissions through ENERGY STAR® Portfolio Manager®. We ensure that your data is accurate and submitted on time, so you stay compliant with BERDO’s requirements year after year. If you already have benchmarking covered, we can provide third-party verification services.   

Beyond benchmarking, Green Econome can help plan an effective strategy that aligns your reduction targets with company goals and budget. By conducting energy audits and analyses, Green Econome acts as an extension of your team to make efficiency recommendations, provide energy management, verify and track reductions to ensure you are on track for BERDO compliance.  

Green Econome is an end-to-end service provider that can manage and/or install your energy and water efficiency projects. Whether an LED lighting retrofit or a full scale building decarbonization and clean energy system, we leverage a national team of professionals to get the job done. 

Avoid Penalties – Act Today! 

The clock is ticking on Boston’s emissions standards, and penalties for non-compliance can add up fast, up to $1,000/day! Green Econome offers a streamlined approach to meet BERDO’s energy and emissions requirements, saving you time, money, and stress. Ready to make your building more efficient and compliant? Contact Green Econome today for a consultation and see how we can help you reduce emissions, lower costs, and stay ahead of Boston’s climate regulations. 

The clock is ticking on Boston’s emissions standards, and penalties for non-compliance can add up fast, up to $1,000/day! Green Econome offers a streamlined approach to meet BERDO’s energy and emissions requirements, saving you time, money, and stress. Ready to make your building more efficient and compliant? Contact Green Econome today for a consultation and see how we can help you reduce emissions, lower costs, and stay ahead of Boston’s climate regulations. 

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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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Here at Green Econome, we have many requests for ASHRAE Level 2 energy audit pricing, primarily for Phase II Audit & Retrocommissioning (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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