So, you received a letter from the City of West Hollywood notifying you that your building must comply with the new Equitable Building Performance Standards (EBPS). Most owners have never even heard of this new law, so what comes next?
With energy reporting and performance laws becoming increasingly common nationwide, owners of large commercial properties and multifamily buildings may feel the burden of new requirements (along with the associated work and costs). Between Title 24, Assembly Bill 802, and local energy standards, understanding how to navigate compliance now and as regulations evolve makes all the difference. With the right plan in place, energy projects can become a cost-effective advantage rather than a sunk cost.
This is especially true in West Hollywood, where the Energy and Water Building Performance Standards program adds another layer of local compliance. But with a clear understanding of the requirements, compliance can become an opportunity to improve performance and strengthen your assets. Let’s take a look.
Key Takeaways: How to Prepare for West Hollywood EBPS
- West Hollywood buildings 20,000 square feet or larger must comply with the Equitable Building Performance Standards (EBPS).
- There are two distinct phases to WeHo EBPS:
- Benchmarking (2026+): Covered building owners must report their energy use annually. 2026 benchmarking reports require third-party data verification.
- Performance (2028-2036): Starting in 2028, covered buildings must meet specific Greenhouse Gas Intensity (GHGI) targets.
- Procrastination is the biggest financial risk. 2028 may seem far away, but waiting to address performance targets could leave you with a “stranded asset” requiring expensive, last-minute capital improvements.
- Partnering with a credible BPS compliance consultant now will help you translate your initial benchmarking data into a practical, cost-effective action plan, allowing you to take advantage of available incentive programs before the 2028 deadline hits.
West Hollywood Equitable Building Performance Standards (EBPS) Requirements
What buildings must comply with West Hollywood Equitable Building Performance Standards?
- All commercial properties (office, retail, etc.) 20,000 Sq. Ft. or larger.
- Apartment complexes and residential buildings with 5 or more units that are 20,000 Sq. Ft. or larger.
- Residential condominiums that are 20,000 Sq. Ft. or larger (benchmarking only, exempt from BPS).
Property managers should carefully review West Hollywood EBPS covered building list to verify their asset falls under the mandate or reach out to us with any questions about their address.
What Is Required by West Hollywood Equitable Building Performance Standards?
WeHo EBPS requires covered buildings to report their energy use annually and meet interim and final GHGI targets from 2028-2036. It also requires third party data verification of benchmarking reports in 2026.
Keep a close eye on the official West Hollywood energy benchmarking deadline to ensure your third-party data verification is performed by a credible compliance provider and submitted prior to the deadline.
What Are the Penalties If I Don’t Comply with West Hollywood Equitable Building Performance Standards?
Failure to meet WeHo EBPS benchmarking requirements can result in a fine of up to $1,000. Failure to provide accurate information can result in an additional fine of $1,000 per instance. If a building fails to comply with the BPS (Building Performance Standards) portion of the policy, it may face fines calculated using the social cost of carbon, applied to the amount by which the building missed its target. Complete failure to comply with the policy in all respects can result in a fine of $10 per square foot of the building.
Complying with West Hollywood EBPS: Why Commercial Building Owners Should Get Ahead of EBPS Requirements
Since managing large commercial properties is challenging and time-consuming, owners often treat energy benchmarking and data verification as an administrative task to be completed passively and at-the-time-of. But in doing so, they miss a clear opportunity to better understand their investment and simplify compliance.
Benchmarking can reveal unseen patterns in a building’s energy consumption. Once the data is verified, owners are equipped with clean, accurate information that points to clear paths forward for resolving any utility discrepancies and inefficiencies. When West Hollywood’s performance targets take effect in 2028, buildings that took these initial compliance years seriously will already have an action plan in place, and in some cases will already be outperforming the market.
Passively managing compliance with WeHo’s Equitable Building Performance Standards could leave building owners with stranded assets requiring extensive capital improvements and moonshot projects on a tight timeline.
Maximize Your Property’s ROI: Why Should Owners Comply with West Hollywood EBPS
Building performance standards are often viewed through an environmental lens, but the financial business case for high-performing buildings is equally compelling.
Upgrading commercial properties doesn’t just cut emissions, for each dollar saved in energy costs, a building’s market value can increase by $18.32 assuming a capitalization rate of 5.5%. Moreover, achieving a green building label that certifies high performance will exceed compliance while boosting value. LEED-certified buildings benefit from 21.4% higher market sales price per square foot on average since 2018 compared to non-LEED buildings.
In a competitive market like Los Angeles, it is essential to remain proactive in upkeeping building performance. Building owners who treat West Hollywood EBPS as a box to check are leaving an immense opportunity on the table, one that could improve long term performance and market valuation.
The Benefits of Planning WeHo EBPS Compliance Early
This is the first year of West Hollywood energy benchmarking reporting, and building owners have a chance to plan their approach by integrating EBPS requirements into long-term capital improvement projects.
Reporting and Planning for WeHo EBPS
Performing complete and accurate benchmarking beginning this year will shine light on building efficiencies and anomalies in energy consumption. Next, building owners can utilize an energy and water audit to identify low-cost projects that would improve building performance to meet the 2028 performance target.
Planning building efficiency projects early avoids expensive last-minute costs associated with rushed projects and allows building managers to take advantage of incentives programs to cover large portions of the project expenses.
Compliance Assistance for WeHo EBPS
Managing large commercial properties is a constant, time-consuming job which makes complying with energy reporting and improvement more challenging. Covered West Hollywood buildings will need to start meeting performance targets in 2028, and if you’re an owner who isn’t working with a credible BPS compliance consultant and energy engineer, that lack of preparation and experience will rear its ugly head in last-minute costs and a rush to meet standards.
Work with a West Hollywood Energy Benchmarking Consultant to Protect Your Investment
Navigating West Hollywood Equitable Building Performance Standards compliance pathways is not something you want to guess your way through. Our building performance team helps property owners turn compliance into a capital-preserving strategy that spans the entire building life cycle. As West Hollywood EBPS compliance experts, we manage the entire process from tenant outreach for data collection to navigating least-cost pathways to compliance.
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