Category: Insights

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

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

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

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

Property Size

Buildings over 20,000 sq ft.

Benchmarking Deadline

June 1, 2026 – annually thereafter.

Building Performance Standards

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

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

Penalties

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

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

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

Property Size

Buildings over 20,000 sq ft.

Benchmarking Deadline

May 15, 2026 – annually thereafter.

Building Performance Standards

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

First interim deadline – May 15, 2028

Second interim deadline – May 15, 2032

Final deadline – May 15, 2036

Penalties

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

Evanston, IL, Healthy Buildings Ordinance (HBO)

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

Property Size

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

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

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

Benchmarking Deadline

June 30, annually.

Building Performance Standards

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

Penalties

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

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

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

Property Size

Buildings over 20,000 sq ft.

Benchmarking Deadline

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

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

Building Performance Standards

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

Penalties

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

Providence, RI, Building Energy Reporting Ordinance (BERO)

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

Property Size

Buildings over 20,000 sq ft.

Benchmarking Deadline

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

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

Building Performance Standards

Building performance standards in Providence have not yet been finalized.

Penalties

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

Benefits to Building Performance

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

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

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

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

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

Why is the State Pushing These Regulations?

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

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

Building Performance Colorado: State-Wide Policy and Deadlines

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

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

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

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

Energize Denver

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

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

Recent Updates to Energize Denver

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

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Getting Started

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

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

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 marikae@greeneconome.com.