San Jose CA Building Performance Ordinance

Guide to San José BPO

July 16, 2023 admin

COMPLIANCE GUIDE

WHAT IS THE SAN JOSÉ BUILDING PERFORMANCE ORDINANCE (BPO)?

The San Jose Energy and Water Building Performance Ordinance (BPO), is a citywide energy benchmarking & building performance program requiring owners of existing commercial and multifamily buildings to report energy use annually, using ENERGY STAR® Portfolio Manager®, and meet building performance standards on a rolling five-year basis, or perform improvements if standards are not met.

DOWNLOAD SAN JOSÉ BPO BROCHURE

BPO PROGRAM HIGHLIGHTS

Policy

CLIMATE SMART SAN JOSÉ

Bill Text

SAN JOSÉ BUILDING PERFORMANCE ORDINANCE

Enforcing Agency

CITY OF SAN JOSÉ

Size of Property

20,000 SQ. FT. AND ABOVE

Property Type

COMMERCIAL, MULTIFAMILY BUILDINGS

Required Information

12 MONTHS ENERGY AND BUILDING USE DATA

Phase II Building Performance
Standards

BEYOND BENCHMARKING PROGRAM

Due Date

MAY 1, ANNUALLY

Fees

$150 (City of San José) Annual Benchmarking Submission Fee

TBD (City of San José) Beyond Benchmarking Submission Fee

EXEMPTIONS FROM BENCHMARKING

The building meets certain use types, as determined by the city.
The building is in financial distress, as determined by the city.
Disclosure of usage data would result in the release of proprietary information, violating privacy rights under applicable laws.
The building was unoccupied during the reporting year, or demolition commenced on, or before the compliance deadline.

A full list of exemptions can be found on the City's Exemption Request Form.

PROGRAM ENFORCEMENT

Failure to comply with annual benchmarking may incur a monetary penalty from $25-$50/day of non-compliance, up to $5,000 per calendar year.

PHASE II BUILDING PERFORMANCE STANDARDS

Phase II, 'Beyond Benchmarking' is due every 5 years, starting May 1, 2023. Covered buildings will be required to demonstrate satisfactory building efficiency (Performance Pathway) OR improvement standards (Improvement Pathway). Due dates are phased in based on Sq. Ft. and the last digit of the APN. See the compliance schedule table below.

OPTION 1

PERFORMANCE PATHWAY

For properties that can meet energy and/or water Key Performance Standards. This step requires data verification of benchmarking reports by a licensed professional and the submission of a Performance Verification Report.

LEARN MORE

OPTION 2

IMPROVEMENT PATHWAY

For properties unable to meet energy and/or water Key Performance Standards, the owner must implement one of three actions for each, and submit corresponding report(s) from a CA-licensed professional.

LEARN MORE

BEYOND BENCHMARKING COMPLIANCE SCHEDULE

Covered buildings are required to comply with Phase II performance requirements starting on the initial due dates below, with subsequent compliance due dates due every five (5) years thereafter.

LAST DIGIT OF APN	FIRST DUE DATE ≥ 50,000+ SQ.FT	FIRST DUE DATE 20K-49,999+ SQ.FT
0	May 1, 2023	May 1, 2024
1	May 1, 2023	May 1, 2024
2	May 1, 2024	May 1, 2025
3	May 1, 2024	May 1, 2025
4	May 1, 2025	May 1, 2026
5	May 1, 2025	May 1, 2026
6	May 1, 2026	May 1, 2027
7	May 1, 2026	May 1, 2027
8	May 1, 2027	May 1, 2028
9	May 1, 2027	May 1, 2028

BEYOND BENCHMARKING EXEMPTIONS

All exemption requests must be submitted via the City of San José webform by April 1, prior to the building's deadline. The following exemptions may qualify:

The building is zoned as exclusively industrial (HI, LI, IP).
The building is under 20,000 Sq. Ft.

WATER EFFICIENCY EXEMPTION

Your covered building may qualify for a water exemption if the building is Residential, under 50,000 Sq. Ft., and not sub-metered for water use.

PERFORMANCE PATHWAY DETAIL

To qualify, buildings must satisfy the following for energy and/or water respectively.

Be in full compliance with all years of Phase I benchmarking.
Have complete and accurate benchmarking data.
New construction, and occupied for less than five (5) years.
Meet one of the following Key Performance Standards for 2 of the 3 years preceding its Beyond Benchmarking deadline:

ENERGY

LEED™ Existing Buildings O&M v4 Certified.
ENERGY STAR® score of 75 or greater.
ENERGY STAR® score improvement of 15 points or greater, from the baseline year.
Weather Normalized Site Energy Use Intensity (EUI-WN) that is a minimum of 25% below the calculated mean for the property use type.
15% or greater reduction in Site EUI-WN from the baseline year.

WATER

Water Use Intensity (WUI) is a minimum of 25% below the locally calculated mean for that property type.
WUI reduction by at least 15% from the baseline year.
Multifamily Only: US EPA Water Score of 75; or
Multifamily Only: US EPA Water Score improvement of 15 points or greater, from the baseline year.

COMPLETION

To complete compliance the building owner/agent must hire a CA-Licensed Professional (as specified by the City's ordinance, Green Econome is a qualified LP).

The LP will review the benchmarking data and sign the Performance Verification Report, verifying that the energy and /or water data is complete and accurate.
Submit the Report and form, one per utility (energy and/or water).

IMPROVEMENT PATHWAY DETAIL

For covered buildings that do not meet the Performance Pathway Key Performance Standards for energy and/or water, the property owner/agent must implement one of the following three actions respectively, and submit a corresponding report authorized by a CA Licensed Professional (like Green Econome).

ASHRAE Level II or higher audit, conducted by a Qualified Auditor.
Retrocommissioning (RCx), conducted by a Qualified Retrocommissioning
Professional.
Install two (2) Targeted Efficiency Improvement Measures, selected from a prescribed list, in accordance with California Building Standards Code Title 24.

COMPLETION

To complete compliance the building owner/agent must hire a CA-Licensed Professional (as specified by the City's ordinance, Green Econome is a qualified LP).

The improvement pathway at a minimum must be planned and contracted with a CA LP by the Beyond Benchmarking deadline. The action must be planned/completed within the 5-year compliance window. No earlier.
The LP will conduct the Improvement Pathway, sign the Compliance Report, and provide all documentation to the building owner.

Meeting exemptions can save up to 65% off the cost of a full ASHRAE Level II Audit/RCx Report. If you need benchmarking performed or an evaluation of your existing benchmarking report, please contact us right away.

GREEN ECONOME PHASE II (A/RCx) PROCESS

1. Evaluate the Phase I benchmarking report(s) for the building's least-cost path to Phase II compliance (or complete benchmarking, if annual disclosure hasn't been met).
2. Provide Phase II proposals for applicable services.
3. Upon signed agreement, fulfill Phase II services, submit compliance requirements to the City, and provide reports to the building owner/representative.

AS BENCHMARKING CONSULTANTS AND ESG REPORTING EXPERTS, WE WILL WORK WITH YOU TO DEVELOP A BUILDING PERFORMANCE BASELINE FOR COMPLIANCE

Green Econome takes an accurate, efficient, and comprehensive approach to ENERGY STAR® benchmarking that ensures you receive meaningful data about the performance of your building for disclosure compliance, ESG reporting, green loans, auditing, or whatever your project needs may be. Our property use details and utility data collection, review, and verification process leads to complete benchmarking.

Energy Policy

Guide to Chula Vista BESO

July 14, 2023 admin

COMPLIANCE GUIDE

WHAT IS THE CHULA VISTA BUILDING ENERGY SAVING ORDINANCE (BESO)?

The Chula Vista Building Energy Saving Ordinance (BESO), is a citywide energy benchmarking & building performance program requiring owners of existing commercial and multifamily buildings to report energy use annually, using ENERGY STAR® Portfolio Manager®, meet building performance standards every 5 years, and demonstrate improvements every 10 years.

DOWNLOAD CHULA VISTA BESO BROCHURE

BESO PROGRAM HIGHLIGHTS

Policy

CITY OF CHULA VISTA CLIMATE ACTION PLAN

Bill Text

CHULA VISTA BUILDING ENERGY SAVING ORDINANCE

Enforcing Agency

CITY OF CHULA VISTA

Size of Property

20,000 SQ. FT. AND ABOVE

Property Type

COMMERCIAL, INDUSTRIAL, MULTIFAMILY BUILDINGS

Required Information

12 MONTHS ENERGY AND BUILDING USE DATA

Phase II Building Performance
Standards Compliance

YES

Fees

N/A

BESO ORDINANCE DEADLINES

PHASE I – BENCHMARKING DISCLOSURE

May 20 - Annually

PHASE II – BUILDING PERFORMANCE STANDARDS

CONSERVATION REQUIREMENT	COMPLIANCE DUE DATE 50,000+ SQ.FT.	COMPLIANCE DUE DATE 20,000-49,999 SQ.FT.
Commercial Buildings Performance Targets / A/RCx	Every five (5) years beginning 2023 or later. Schedule TBD.	Every five (5) years beginning 2026 or later. Schedule TBD.
Commercial Buildings Min. Improvement Requirements	Every ten (10) years beginning 2028 or later. Schedule TBD.	Every ten (10) years beginning 2031 or later. Schedule TBD.
Multifamily Prescriptive Upgrades	2023 or later, schedule TBD.	2023 or later, schedule TBD.

EXEMPTIONS FROM BENCHMARKING

No/temporary certificate of occupancy for more than half of the reporting calendar year.
The building is scheduled to be demolished one year or less from the reporting date.
The building is under financial distress.
The building does not receive energy or water service.
Disclosure of energy usage data would result in the release of proprietary information covered by applicable privacy law(s).

PROGRAM ENFORCEMENT

Failure to comply with this law results in a notification and a 60-day window. If a building owner/agent does not submit the report within that time, they are subject to fines of up to $2,250 on a per-incident basis, with the amount based on the building’s gross floor area (GFA).

PHASE II BUILDING PERFORMANCE STANDARDS REQUIREMENTS

Phase II consists of conservation requirements every five (5) years, and demonstrating minimum improvements every ten (10) years. The requirements are categorized between multifamily and commercial building types.

COMMERCIAL

CONSERVATION REQUIREMENTS

Buildings must meet either the Performance Targets or the Audit Requirement every 5 years, and the Minimum Improvement requirement every 10 years.

LEARN MORE

MULTIFAMILY

PRESCRIPTIVE MEASURES

Buildings built prior to 2006 must perform prescribed measures. Properties with Significant Common Load are subject to Commercial Conservation Requirements.

LEARN MORE

COMMERCIAL PROPERTIES: CONSERVATION REQUIREMENT DETAIL

High Performing Buildings are exempt from all requirements. All other covered commercial buildings must demonstrate energy reductions that meet or exceed Performance Targets, and submit an ASHRAE Level I or higher energy audit and retro-commissioning report (A/RCx).

EXEMPTIONS

Buildings must meet one of the following requirements to be exempt from both the 5-year Performance Targets and the 10-year Minimum Improvement Requirement:

HIGH PERFORMANCE BUILDING:
- Submit a benchmarking report for the most recent compliance deadline AND meet any of the following:
- ENERGY STAR score of 80 or greater
- Achieved ENERGY STAR certification
- Achieved LEED Existing Building Certification for three (3) of five (5) preceding years
The Property has been occupied for less than five (5) years
The Property is in Financial Distress
A demolition permit for the entire Property has been issued and demolition work has commenced
The Property is not subject to the Benchmarking Requirement

CONSERVATION REQUIREMENT DETAIL

Non-residential buildings, and multifamily buildings with Significant Common Load which do not meet any of the above exemptions must:

EVERY FIVE (5) YEARS

Meet or exceed the Improvement Target % (see chart below) by reducing energy use compared to the baseline ENERGY STAR score or EUI equivalent, within the 5-year compliance window. OR;
If the building does not meet or exceed the Improvement Target %, An ASHRAE Level I or higher energy Audit and Retro-commissioning (A/RCx) report must be conducted and submitted to the City.

EVERY TEN (10) YEARS

Meet or exceed the Mandatory Minimum Improvement (see chart below) by reducing energy use compared to the previous (5-year) baseline ENERGY STAR score or EUI equivalent.

BASELINE ENERGY STAR SCORE / EQUIVALENT SITE EUI-WN	5-YEAR IMPROVEMENT TARGET	10-YEAR MANDATORY IMPROVEMENT
1-45 / 80+	30%	15%
46-65 / 51-79	20%	10%
66-79 / 19-50	10%	Exempt
80+ / 0-18	Exempt	Exempt

MULTIFAMILY PROPERTIES: CONSERVATION REQUIREMENT DETAIL

High Performing Buildings are exempt from all requirements. All other covered multifamily buildings must meet the prescriptive measures requirement by their first 5-year deadline. Additionally, buildings with Significant Common Load (10,000+ Sq. Ft. master metered, or shared common meter/load) are subject to the Conservation Requirements outlined above for commercial properties.

EXEMPTIONS

Buildings must meet one of the following requirements to be exempt from Conservation Requirements:

HIGH PERFORMANCE BUILDING:
- Submit a benchmarking report for the most recent compliance deadline AND meet any of the following:
- ENERGY STAR score of 80 or greater
- Achieved ENERGY STAR certification
- Achieved LEED Existing Building Certification for three (3) of five (5) preceding years
The Property has been occupied for less than five (5) years
The Property is in Financial Distress
A demolition permit for the entire Property has been issued and demolition work has commenced
The Property is not subject to the Benchmarking Requirement

PRESCRIPTIVE MEASURES DETAIL

Multifamily Residential Properties constructed prior to 2006 must perform the minimum number of energy efficiency upgrades, or 'measures' required in the table below, within all tenant spaces where utility costs are borne by tenants. Owners may choose from a prescribed list of applicable measures. Efficiency measures already in place, or not included on the list count toward satisfying the minimum number of measures.

YEAR BUILT	CLIMATE ZONE 7*	CLIMATE ZONE 10*
Pre-1978	Choose four (4) Measures	Chose five (5) Measures
1978 - 1991	Choose three (3) Measures	Chose five (5) Measures
1992 - 2005	Choose two (2) Measures	Chose five (5) Measures

* Chula Vista Climate Zone Map

PRESCRIPTIVE MEASURE LIST SAMPLE

Attic Insulation
Air Sealing
Cool Roof
Duct Sealing
LED Lighting
Water Heating Package
Heat Pump Water Heater Replacement
HVAC Replacement
Windows

GREEN ECONOME PHASE II (A/RCx) PROCESS

1. Evaluate the Phase I benchmarking report(s) for the building's least-cost path to Phase II compliance (or complete benchmarking, if annual disclosure hasn't been met).
2. Provide Phase II proposals for applicable services.
3. Upon signed agreement, fulfill Phase II services, submit compliance requirements to the City, and provide reports to the building owner/representative.

AS BENCHMARKING CONSULTANTS AND ESG REPORTING EXPERTS, WE WILL WORK WITH YOU TO DEVELOP A BUILDING PERFORMANCE BASELINE FOR COMPLIANCE

Energy Policy

Guide to San Diego Benchmarking

July 10, 2023 admin

COMPLIANCE GUIDE

WHAT IS THE SAN DIEGO BUILDING ENERGY BENCHMARKING ORDINANCE (BEBO)?

The City of San Diego Building Energy Benchmarking Ordinance (BEBO), is a citywide energy benchmarking & disclosure program requiring owners of existing commercial and multifamily buildings to report energy use annually, using ENERGY STAR® Portfolio Manager®. This program provides building owners insight into their building’s energy efficiency and helps meet the City of San Diego’s Climate Action Plan goals.

DOWNLOAD SAN DIEGO BEBO BROCHURE

BEBO PROGRAM HIGHLIGHTS

Policy

CITY OF SAN DIEGO CLIMATE ACTION PLAN

Bill Text

SAN DIEGO BUILDING ENERGY BENCHMARKING ORDINANCE

Enforcing Agency

CITY OF SAN DIEGO

Due Date

JUNE 1, ANNUALLY

Size of Property

50,000 SQ. FT. AND ABOVE

Property Type

COMMERCIAL, INDUSTRIAL, MULTIFAMILY BUILDINGS

Required Information

12 MONTHS ENERGY AND BUILDING USE DATA

Phase II Building Performance
Standards Compliance

NO

Fees

N/A

PROGRAM ENFORCEMENT

San Diego has not initiated any fines or penalties at this time. As of January 2022, the city is working on initiating non-compliance penalties starting next reporting year, which will most likely apply to previous non-compliance years.

EXEMPTIONS FROM BENCHMARKING

No/temporary certificate of occupancy for more than half of the reporting calendar year.
The building is scheduled to be demolished one year or less from the reporting date.
Condominium complexes.
When more than half of the gross floor area of a building is used for scientific experiments requiring controlled environments, or for manufacturing with production lines or industrial purposes.

WHAT IS BENCHMARKING?

ENERGY STAR benchmarking measures a building's efficiency performance by calculating its energy/water, and property use data, then compares those metrics to similar buildings in the EPA's software. The building may receive an ENERGY STAR score from 1-100, with 100 being the most energy efficient. Eligible building types with a score over 75 may be eligible for ENERGY STAR Certification.

WHY EXISTING BUILDINGS?

Existing buildings are the second-largest source of GHG emissions in California. Identifying energy and water inefficiencies in our buildings provides valuable insights. The chosen method of identifying and analyzing this data is through local and state-mandated Energy Benchmarking and Performance Reporting. Below are key points for meeting energy disclosure requirements:

The owner of the building is the responsible party.
Benchmarking disclosure is required annually.
“Covered or disclosable buildings” are the building types that need to comply.
When you comply with your local benchmarking ordinance, 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.
The State of California only requires annual energy disclosure; however, some cities also require buildings to become energy efficient or meet building performance standards.

5 TIPS FOR BENCHMARKING COMPLIANCE

Hire Green Econome to complete your energy and water compliance and energy efficiency consulting. We have benchmarked over 2,000 commercial, industrial, and multifamily buildings. 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, but 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 and/or ESG reporting.
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 a utility authorization to share their usage data. As you can imagine, collecting 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 outlines common barriers, solutions, and options for energy financing. Energy ordinances are all-for-none if building owners and operators do not invest in reduction goals. Visit our case studies for examples of the cost 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. 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 or a requirement for ESG strategies that the building owner or tenant company has in place. Either way, you now have a powerful tool that tracks your ongoing use, so take advantage of it. Green Econome includes benchmarking consultations to assess your building’s performance and identify problem areas or opportunities for savings.

AS BENCHMARKING CONSULTANTS AND ESG REPORTING EXPERTS, WE WILL WORK WITH YOU TO DEVELOP A BUILDING PERFORMANCE BASELINE FOR COMPLIANCE

Energy Policy

Guide to Los Angeles EBEWE

June 13, 2023 admin

WHAT IS THE LOS ANGELES EXISTING BUILDINGS ENERGY AND WATER EFFICIENCY PROGRAM?

The City of Los Angeles Existing Buildings Energy and Water Efficiency Program (EBEWE), is a two-part local ordinance. Phase I benchmarking requires 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 to submit whole-building energy and water benchmarking reports annually. Phase II Audit/Retro-commissioning (A/RCx) requirements are due every five years and compliance is based on the benchmarking results and performance of the building.

LA EBEWE PROGRAM HIGHLIGHTS

Policy: Los Angeles’ Green New Deal

Bill Text: Division 97 to the Los Angeles Municipal Code (LAMC)

Enforcing Agency: California Energy Commission (CEC)

Benchmarking Report Due Date: June 1, annually

Phase II A/RCx Due Date: December 1, every five years, based on the below schedule

Size of Property: 20,000 Sq.Ft. and above

Property Type: Commercial, industrial, multifamily

Required Information: 12 months of energy, water, and building use data

Performance Reporting: Yes

Fees: $66.41 Phase I annual benchmarking registration fee, $199.22 Phase II 5-year A/RCx registration fee (includes processing fee)

Enforcement: $202 non-compliance fee. Payment of this fine does not constitute compliance.

Exemptions:

The building is scheduled to be demolished within the calendar year.
The building is and/or was unoccupied for the entire compliance year.
The building did not receive energy or water service during the entire compliance year.
The building use types are excluded in 91.9703. SCOPE.

Compliance List: LA City Public Disclosure Dashboard

GET STARTED

DOWNLOAD THE LA EBEWE BROCHURE

PHASE II BUILDING PERFORMANCE STANDARDS REQUIREMENTS

Every 5 years, covered buildings must undergo an ASHRAE Level II Energy & Water Audit and Retro-Commissioning (A/RCx), unless they meet certain energy and/or water exemptions.

LA EBEWE PHASE II A/RCx COMPLIANCE SCHEDULE

LAST DIGIT OF DBS BUILDING ID	INITIAL COMPLIANCE DUE DATE	ENERGY CONSUMPTION COMPARATIVE PERIOD	NEXT COMPLIANCE DUE DATE
0 or 1	Sept 7, 2023*	Jan 2016 – Dec 2020	Dec 1, 2026
2 or 3	Sept 7, 2023*	Jan 2017 – Dec 2021	Dec 1, 2027
4 or 5	Dec 1, 2023	Jan 2018 – Dec 2022	Dec 1, 2028
6 or 7	Dec 1, 2024	Jan 2019 – Dec 2023	Dec 1, 2029
8 or 9	Dec 1, 2025	Jan 2020 – Dec 2024	Dec 1, 2030

*Reissued deadlines due to the tolling of deadlines associated with the COVID-19 Emergency Order issued in 2020, and lifted in 2023.

PHASE II BUILDING PERFORMANCE STANDARDS REQUIREMENTS

Option 1:
PERFORMANCE EXEMPTIONSMeet Energy and/or Water Exemptions based on program-defined efficiency standards.

–OR–

Option 2:
AUDIT REPORTINGPerform an ASHRAE Level II Energy and/or Water Audit and Retro-commissioning (A/RCx) Report.

OPTION 1: PERFORMANCE EXEMPTION DETAIL

Buildings that meet an Energy Exemption are not required to have an Energy Audit & RCx. Likewise, buildings that meet a Water Exemption are not required to have a Water Audit & RCx. All Energy and Water Exemptions, except Water Exemption #4, must be certified by a California-licensed architect or engineer.

ENERGY EXEMPTIONS

Buildings must meet one of the following requirements to be exempt:

ENERGY STAR Certification for the building’s compliance year (CY). Requires ENERGY STAR score greater than 75.
ENERGY STAR Certification for two of the three years preceding the building’s compliance year. Requires ENERGY STAR score greater than 75.
For property types not eligible to receive an ENERGY STAR score, the building must perform 25% better than the national median of similar building types.
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.
A building that does not have a central cooling system or has a cooling system having an aggregate input capacity of less than 100 refrigeration tons (1,200,000 Btu/h) and has completed four of six prescribed measures within the five-year Phase II compliance cycle, in accordance with Title 24, and permitted when required.
The building is new and has been occupied for less than five years based on the Temporary or Final Certificate of Occupancy.
The tenant pays the energy and water bills as specified in Section 91.9704.

WATER EXEMPTIONS

Buildings must meet one of the following requirements to be exempt:

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.
A building with no central cooling system or a cooling system that does not operate by the consumption of water as part of the cooling process and has installed two of the three prescribed measures within the five-year Phase II compliance cycle, in accordance with Title 24, and permitted when required.
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 based on the Temporary or Final Certificate of Occupancy.
The tenant pays the energy and water bills as specified in Section 91.9704.

OPTION 2: AUDIT REPORTING DETAIL

ASHRAE LEVEL II AUDIT (A)

The American Society of Heating, Refrigeration and Air-Conditioning Engineers (ASHRAE) Level II Audit includes an in-depth identification and documentation of a building’s energy and water-use equipment, by examining existing conditions to pinpoint potential areas of improvement for energy and water efficiency. A building must meet or exceed ASHRAE Level II standards to comply.

RETRO-COMMISSIONING REPORT (RCx)

The report creates a schedule of maintenance and repairs (i.e. “tune-ups”) for existing building systems (energy and water). The owner does not have to utilize these options to comply with the ordinance. The owner must only be informed that such options and incentives exist.

GREEN ECONOME PHASE II (A/RCx) PROCESS

1. Evaluate the Phase I benchmarking report(s) for the building's best path to Phase II compliance (or complete benchmarking, if annual EBEWE disclosure hasn't been met).
2. Provide Phase II proposals for those exemption and/or audit services.
3. Upon signed agreement, fulfill Phase II services, submit proof of compliance to LADBS, and provide reports to the building owner/representative.

GET STARTED

Energy Policy

Guide to California AB 802

May 31, 2023 admin

WHAT IS CALIFORNIA ASSEMBLY BILL (AB) 802?

CALIFORNIA STATE AB 802

Policy: Clean Energy and Pollution Reduction Act - SB 350

Bill Text: Assembly Bill 802

Enforcing Agency: California Energy Commission (CEC)

Benchmarking Report Due Date: June 1, annually

Size of Property: 50,000 Sq.Ft. and above

Property Type: Commercial, industrial, multifamily

Required Information: 12 months of energy and building use data

Performance Reporting: 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: Public Resource Code #25321 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.”

Exemptions:

No/temporary certificate of occupancy for more than half of the reporting calendar year.
The building is scheduled to be demolished one year or less from the reporting date.
Condominium complexes.
When more than half of the gross floor area of a building is used for scientific experiments requiring controlled environments, or for manufacturing with production lines or industrial purposes.
The building is in compliance with its local disclosure law listed on the CEC’s website (e.g. City of LA’s EBEWE), granted that the square footage requirements are met by each program.

Compliance List: AB 802 Energy Disclosure Dashboard

DOWNLOAD AB 802 BROCHURE

GET STARTED

What is Benchmarking?

Why Existing Buildings?

Existing buildings are the second-largest source of GHG emissions in California. Identifying energy and water inefficiencies in our buildings provides valuable insight for policymakers. The chosen method of identifying and analyzing this data is through local and state-mandated Energy Benchmarking and Performance Reporting. Benchmarking is comparing a site’s energy performance to similar building types and uses over a specified period. ENERGY STARⓇ Portfolio ManagerⓇ is the approved tool 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.
Benchmarking disclosure is 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 ordinance, 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 only requires annual energy disclosure; however, some cities also require buildings to become energy efficient or meet building performance standards.

5 Tips for Compliance & Becoming a High-Performing Building

Hire Green Econome to complete your energy and water compliance and energy efficiency consulting. We understand that you have benchmarking service provider options; however, from our experience benchmarking over 2,000 commercial, industrial, and multifamily 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, but 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 and/or ESG 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 a utility 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. 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 or a requirement for ESG strategies that the building owner or tenant company has in place. Either way, you now have a powerful tool that tracks your ongoing use, so take advantage of it. Green Econome includes benchmarking consultations to assess your building’s performance and identify problem areas or opportunities for savings.

Our hope is that these regulations can inspire real efficiency in your buildings. Our city and state leadership also recognize this can come as a big ask, and so they are supporting commercial real estate owners and communities through incentive 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 for California building owners and property managers to throw their hats in the ring. Good luck and call us if you need us. We cannot wait to see what California buildings can do.

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Building Performance Standards News

Big Win for Los Angeles EBEWE Buildings

April 6, 2023 Marika Erdely

What does the Reissued A/RCx Notice mean and why is it wonderful?

Recently, the Los Angeles Department of Building and Safety (LADBS) released a notice that they will allow building owners with the reissued A/RCx due date of September 7, 2023, to meet exemption with 2023 ENERGY STAR Certification, which previously they had not. This comes after Green Econome had advocated for the move on behalf of our EBEWE clients whose buildings are eligible for certification but leveraged the tolled deadlines afforded under the COVID emergency order. We feel it is fair for high-performing buildings to be exempt from the A/RCx report, and beneficial to the EBEWE program and the city at large to increase the number of ENERGY STAR Certified buildings throughout Los Angeles.

In plain English, there are many building owners that have not complied with EBEWE Phase II. Their understanding was that the entire program was ‘tolled’ or suspended while the COVID-19 Emergency Order was in place.

One of Mayor Bass’ initial efforts was to release this Emergency Order which also released the tolling of EBEWE Phase II deadlines.

Notices were recently sent out to buildings ending with Building IDs of 0, 1, 2, or 3 that the tolling was lifted and they were required to meet the compliance requirements. However, this lifting did not allow buildings to be ENERGY STAR certified as the window had passed if you didn’t conduct this certification the year it was required.

As you may know, we are big advocates of the available energy and water exemptions and ENERGY STAR Certification is Energy Exemption #1. Buildings must be eligible for this certification identified in the ENERGY STAR Portfolio Manager® software with an ENERGY STAR score of 75 and above. The ENERGY STAR scoring is from 1- 100 with 100 being the most energy efficient.

Along with this score, the property must have three tests conducted and verified by a licensed PE or Architect. The tests measure indoor air ventilation (quality), thermal comfort, and illumination (lighting). These test scores are then sent in an application to the EPA, which reviews the documentation and either approves or disapproves the samplings.

Why should you have your building ENERGY STAR Certified? Well besides having a nice blue decal on the entrance to your property advertising what a great building you own and operate, it has been proven by BOMA, CoStar, and others that ENERGY STAR Certified properties have higher sales prices and lease rates and lower vacancy rates.

So for those of you who want to invest in your properties, this is a wise investment! Contact us at (424) 422-9696 for information and a free quote for this certification. Please do not delay, especially if you are complying with the 9/1/23 deadline. Certification can take 2-3 months to complete.

About Green Econome

Green Econome is a woman-owned, small business providing energy and water efficiency compliance, consulting, and construction services for commercial real estate. Our Los Angeles-based team of licensed and credentialed professionals takes an integrated approach to finding efficiency solutions that positively affect market valuations, reduce environmental impact, meet ESG and sustainability goals, and ensure regulatory compliance.

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

Building Performance Standards Insights

Audit Not Required: LA EBEWE Phase II A/RCx Exemptions

March 20, 2023 Marika Erdely

We talk to many building owners and property managers asking what happens if they do not comply with the Phase II Audit/Retro-commissioning (A/RCx) stage of the City of Los Angeles Existing Buildings Energy & Water Efficiency Program (EBEWE) Ordinance. You can read about the fines and penalties for non-compliance here. But, we want people to understand that energy and water exemptions can be met to avoid the cost, time, and labor of ASHRAE Level II audits and retro-commissioning reports. It’s easy to miss the fine print on the notices sent by the Los Angeles Department of Building and Safety (LADBS).

"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. To be considered for an exemption, a request and supporting justification must be submitted by a California licensed engineer or architect to LADBS.”

How to Know if You Qualify for an EBEWE Exemption

We prioritize these least-cost options to save money and provide value to each of our EBEWE clients. After we complete the benchmarking of a building, we deliver a custom progress and goals report which, using the metrics from ENERGY STAR® Portfolio Manager®, illustrates the building’s benchmarked energy and water efficiency performance. The report then outlines all EBEWE Phase II compliance options based on the previous 5-years performance of that building. Surprisingly, often buildings can meet at least one or both energy and water exemptions. The table below shows the Phase II compliance schedule and comparative periods used to determine exemptions.

* The initial compliance due dates for Building IDs ending with 0-3 were impacted by the COVID emergency order tolling of deadlines and are now subject to the reissue due date of September 7, 2023.

Why do EBEWE A/RCx Exemptions Matter?

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. Additionally, if you’re meeting an exemption you have a high-performing building, which is contributing to the city’s goal to reduce carbon emissions, and you operate an efficient building, congratulations. If you are eligible, you can also gain ENERGY STAR Certification which can help with the lease rate and marketing of your property.

What do I Have to do to Submit an EBEWE A/RCx Exemption?

Hire Green Econome of course! Whether our team completes it for you or not, here are the basics:

The building must be accurately benchmarked with no estimated data. LADBS requires a CA Professional Engineer or Licensed Architect to validate the results.
Once the exemption is met (reduction verification, ENERGY STAR Certification, etc) a declaration of exemption must be signed by the Licensed Professional and submitted through the LADBS online portal.
Compliance must be met every 5 years, with benchmarking required every year. Since that data is required, it’s best to always stay current on your energy and water benchmarking disclosure compliance.

Of course, you can pay for an audit that someone else tells you is required without considering these exemptions. Not all Service Providers ever mention these exemptions, because their entire approach is to sell you into an audit.

Since the tolling of EBEWE deadlines has been lifted, and the due date is now September 7, 2023, it is time to get moving. Depending on the exemption, it can take 6-8 weeks to complete, so have your building benchmarked if it hasn’t been brought up to compliance and see if it can meet any exemptions.

JUST ANNOUNCED: LADBS will be accepting 2023 ENERGY STAR Certifications for Building IDs 0-3 who need to comply by September 7^th. This is a huge win that Green Econome advocated for. It allows building owners who may not meet a reduction target but are eligible for Certification to still gain that recognition and exemption, where their only other option would have been an A/RCx report. Thank you Los Angeles!

CONACT MARIKA

Insights

What are the fines if I don’t comply with EBEWE Phase II A/RCx?

March 20, 2023 Marika Erdely

Lots of property owners and managers have received a Notice to Comply with Audits and Retro-Commissioning requirements of the Los Angeles Existing Buildings Energy and Water Efficiency (EBEWE) Program. Many property owners and managers properly comply, but many do not. What happens if you don’t comply?

LADBS has provided comprehensive EBEWE Audits & Retro-Commissioning FAQs. Penalties are outlined in item 17, page 9:

17. What are the penalties if we don’t comply?

SEC. 91.9712 of the EBEWE ordinance puts the non-compliance fee at $202. This fee may be subject to Late fees, Collection fees and interest as defined in LAMC SEC. 98.0411. “Pursuant to L.A.M.C. Section 98.0411 (c), if this invoice is NOT PAID within 30 days of the date of the invoice, an additional 250% late charge/collection fee will be imposed and assignment to a collection agency may be made. After 60 DAYS of NO PAYMENT, interest will accrue at the rate of 12% annually (compounded monthly or portion of a month) until this invoice and any additional charges that have accrued since this invoice was issued have been paid.” Please note that payment of the non-compliance fee does not result in Compliance. The building will remain out of compliance with the City of Los Angeles and, as with any Los Angeles Municipal Code violation, will be subject to further legal action. Additionally, the status of each building (Complied or Not Complied) is posted publicly and, in the future, may be recorded on the property as an open violation.

The Case for Submitting Your EBEWE A/RCx Requirement

Yes, the fine is minimal at $202, but I find it interesting that it notes that the building will remain out of compliance with the City of Los Angeles and, as with any Los Angeles Municipal Code violation, will be subject to further legal action.

Hmm, I wonder with our new Mayor, what this will ultimately mean to those unwilling to be accountable to this Ordinance?

As a reminder, benchmarking a building is similar to determining the financial condition of your property. If it is scoring on the lower half of the ENERGY STAR® scoring of 1 to 100 (with 100 being the best), it shows that the building is energy and water inefficient, which ultimately means someone, you or your tenant(s) are spending too much on costs to operate the building. Of course, inefficient buildings create carbon which isn’t good for our atmosphere, which is the entire point of the EBEWE Ordinance.

But, besides all of that, why wouldn’t you want to understand how your property is performing so you can improve its NOI? It just makes financial sense. Contact us for pricing, or to get started with your EBEWE compliance.

About Green Econome

CONACT MARIKA

Benchmarking Building Performance Standards News

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.

Building Performance Standards Insights

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

CONACT MARIKA

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