The City of Los Angeles has required existing buildings to report their energy and water performance since 2016, through the Existing Buildings Energy & Water Efficiency (EBEWE) Ordinance. The program runs in two phases:
Phase I: Annual benchmarking through ENERGY STAR® Portfolio Manager®.
Phase II: Complete an ASHRAE Level II energy and/or water audit and retro-commissioning (A/RCx) report once every five years.
Energy and water audits are the standard pathway to compliance for buildings facing Phase II deadlines, but a full audit isn’t automatically required. With the next deadline landing December 1, 2026, it’s worth knowing which path is actually best for you before committing budget to an audit you don’t need.
Key Takeaways: LA EBEWE A/RCx Exemptions
- An audit isn’t automatically required. Many buildings are exempt from performing an ASHRAE Level II energy or water audit.
- The deadline is December 1, 2026 for buildings whose LADBS Building ID ends in 0 or 1 and December 1, 2027 for building IDs ending in 2 or 3.
- Qualifying for an exemption can save up to 65% compared to the cost of a full audit.
My building’s LA DBS ID ends in 0 or 1. Do I Need an Audit?
If you own or manage a commercial, industrial, or multifamily building over 20,000 square feet in Los Angeles and your LA DBS Building ID ends in 0 or 1, you are probably gearing up to meet EBEWE Audit and Retro-commissioning (A/RCx) compliance. As Phase II of the program, the A/RCx provision requires buildings to perform an ASHRAE Level II energy and/or water audit every five years. The compliance cycle requires 0s and 1s to comply by December 1 of this year.
Most owners start pricing out an audit when A/RCx deadline arrives, but they could be missing an opportunity to meet an exemption.
The Least-cost Path to Comply with EBEWE A/RCx
Buried in the fine print of the EBEWE is a single sentence that is the key to saving money. You may be exempt from performing an A/RCx for energy and/or water if your building falls under the specific exemptions provided in Division 97 of the LAMC.
In other words, compliance doesn’t automatically mean audit. If your building already performs well through one of the following metrics, it is eligible for exemption:
- ENERGY STAR® certification for the year of the building’s compliance due date
- ENERGY STAR® certification for two of the three years preceding the compliance due date
- For buildings ineligible to be certified, a CA licensed engineer certifies the building is performing 25% better than the median of similar buildings
- A CA licensed engineer certifies the building reduced its weather normalized energy use intensity (EUI) by 15% relative to the five years preceding the compliance due date
- 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
The catch is that nobody flags this for you. LADBS doesn’t proactively check your eligibility, and it’s easy to miss the exemption language entirely if you’re not looking for it. In fact, many energy consultants default to an expensive energy audit, rather than trying to submit for an exemption.
EBEWE Compliance: ASHRAE Level II Audit vs. Exemption
Assuming you need a full ASHRAE Level II audit and RCx report when you don’t is expensive in more ways than one.
Higher Compliance Costs
While ASHRAE audits are a valuable tool, an energy or water audit can cost up to 65% more than qualifying for an exemption. Audits also take longer to scope, schedule, and complete than an exemption request. If you’re already close to the deadline, performing an audit could extend your compliance timeline and even push beyond the deadline.
Missed Certification Opportunities
Buildings that qualify for an exemption are often eligible for ENERGY STAR® Certification, which can support stronger lease rates and market positioning. Defaulting straight to an audit misses that opportunity entirely.
Vendors vs. Partners
The right advisor doesn’t start with a service to sell, they start with your building and what it needs. By looking at your benchmarking data and available exemptions together, we can identify the most practical, least-cost path forward.
How to Qualify for an EBEWE A/RCx Exemption
The good news is qualifying for an exemption is usually a faster, cheaper, and more straightforward process than most owners expect. It starts with information you likely already have.
- Benchmark accurately. Your building must be benchmarked in ENERGY STAR® Portfolio Manager® with real, accurate data.
- Review your Progress and Goals report. Analyzing your provided progress and goals will show whether you meet an energy exemption, a water exemption, or both. If you already earned an ENERGY STAR® Certification, you’re ready to submit for exemption.
- Have a licensed professional validate it. A California-licensed engineer or architect must confirm the results and sign the declaration of exemption submitted through the LADBS online portal.
- Submit and repeat every 5 years. Once approved, you’re clear until your next cycle as long as your annual benchmarking stays current.
We prioritize the least-cost compliance path for every one of our EBEWE clients. A high-performing building shouldn’t have to pay for an audit it doesn’t need. If your LADBS building ID ends in 0 or 1, we’ll tell you plainly whether you qualify for an exemption before anyone talks about audit pricing.
To make compliance effortless, we offer long-term building performance management through our clients’ next A/RCx cycle. A single upfront contract secures lower pricing and saves our clients the administrative time and costs required to re-contract energy consultants every year.
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