energy policy Archives - Green Econome

Webinar Recording: West Hollywood EBPS Overview

March 27, 2026 Connor Chow

Are you ready for West Hollywood’s Equitable Building Performance Standards? Watch our webinar featuring Marika Erdely, Principal, and Jake Goldstein, Sales Representative, as they provide strategic guidance on how to navigate the upcoming WeHo EBPS requirement for buildings 20,000 Sq. Ft. and larger.

KEY TAKEAWAYS

Why building performance matters
What you have to gain from the EBPS
What your ENERGY STAR® benchmarking data tells you
How you can afford to do this now

Did you miss this one? Don’t panic! You can still schedule a presentation for your team.

BOOK A PRESENTATION

Don’t forget to sign up for our next webinars! There are two more in our ongoing series. Join us as we discuss benchmarking, BPS, and energy efficiency policies in Colorado/Denver and Washington/Seattle.

Top 5 Myths About Energy Efficiency Upgrades for Large Buildings

October 30, 2025 Connor Chow

Energy efficiency isn’t just about being green – it’s about identifying opportunity and protecting your business. From tax credits to experienced consultants, there are several ways to take advantage of energy efficiency to invest in the future of your building.

As our industry has grown, so has the benefits and potential for competitive advantage through efficiency improvement projects. Unfortunately, so have the misconceptions surrounding sustainable projects in commercial real estate. So, in honor of Energy Efficiency Awareness Month, let’s look at 5 common “myths” about energy efficiency and debunk them.

What Are Energy Efficiency Upgrades?

“Energy efficiency upgrades” or “energy projects” can mean many things. The overarching theme, as the name suggests, is that after the work is completed the building will perform more efficiently.

In practice, projects can take shape in many ways from LED lighting retrofits to energy monitoring to full-blown solar installations. The level of investment required of the building owner will vary from project to project, but the key is improvements to building performance.

Myth #1: Energy Efficiency is Too Expensive

In reality, there is a wide range of cost-effective efficiency upgrades, starting with no or low-cost measures like changing thermostat or occupancy sensor set points. Many energy performance upgrades and retrofits are eligible for tax incentives to lighten the burden of that initial cost. Even more, lots of projects have a relatively short payback period.

Take this audit and retrofit project for example. Green Econome conducted an energy audit and identified lighting, HVAC, and thermostat system inefficiencies across three manufacturing plants.

The project payback period was 1.2 years, and it received over $267,000 via the LADWP CLIP incentive. After the LED retrofit, thermostat, and HVAC upgrades, they saved an average of 25% on energy costs across the three buildings.

Myth #2: Older Buildings Can’t Be Efficient

Old buildings in many ways have the most to gain from energy projects. Since the equipment is often outdated, quick upgrades with proper planning and implementation could have an immense impact.

While building envelope upgrades can be much more involved, simple retrofits or even just energy audits could reveal opportunities for major improvements. The Hoxton Hotel in Downtown Los Angeles is a prime example of historic building projects.

Green Econome supported the Hoxton with incentive management, utilizing the California Energy Design Assistance (CEDA) program and the SoCal Gas Food Service Equipment Rebates. After the project was completed, the hundred-year-old building saw a 25% energy cost reduction and received $100,000 in incentives.

Myth #3: Efficiency is just about Saving Energy

Efficiency is much more than simply saving energy. According the Institute for Market Transformation, properties that are energy efficient will see occupancy levels up to 10% higher and sale prices up to 25% higher than less efficient properties.

Likewise, ENERGY STAR and its partners have helped Americans save over $500 billion in energy costs since 1992. This is why ENERGY STAR certification and other certifications are more than just a label – they represent improvements and savings in your buildings.

With more emissions-related laws being enacted, efficiency will also become a big factor for tenants. California’s SB 253 requires reporting of Scope 1, 2, and 3 GHG emissions. Energy used in a company’s leased building could fall into Scope 1 and 2 emissions, which will be disclosed via the California Air Resources Board (CARB). As corporations prepare to report, energy efficiency will be top-of-mind.

Myth #4: I Already Track My Energy Bills – That’s Enough

Simple utility tracking captures only part of the story. Detailed audits, benchmarking, and real-time energy monitoring identify hidden inefficiencies, operational waste, and tenant behavior patterns. These insights unlock savings that monthly bills alone will never reveal. Green Econome’s Building Performance Dashboard transforms energy consumption data into actionable performance insights.

Many cities have building performance ordinances that require large commercial properties to reduce their energy use and GHG emissions over time. We often see that buildings who don’t meet these building performance standards must then conduct energy audits. Why? Because they provide actionable data that go beyond an energy bill to show you where you can reduce emissions and save money.

Myth #5: Efficiency Projects Disrupt Operations

Modern energy upgrades can be phased to minimize impact, and many improvements (like lighting retrofits or smart building controls) are virtually seamless. With proper planning and coordination, tenants and staff can continue normal operations while projects deliver energy and cost savings.

This is when hiring a consultant can be massively beneficial because their whole job is to see the bigger picture and develop a plan that satisfies the needs of the building owner while ensuring effective project implementation.

Money Spent Now Equals Savings Over Time

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 efficiency projects. Properties that are efficient save money on operating costs and increase property value.

Building efficiency is an opportunity, not a burden. It’s not just about saving kilowatts, it’s also about saving money, attracting tenants, and improving the longevity of your property.

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.

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SB 219: Latest Guidelines to California’s Climate Disclosure Laws

October 22, 2025 Connor Chow

2025 has been an unprecedented time of change, including uncertainty around climate related policy. Despite some delay and ongoing litigation, California’s climate disclosure laws: SB 253, SB 261, and SB 219, affectionately called, “the 200’s” are moving forward.

In August the California Resources Board (CARB) released regulation frameworks, definitions, and additional guidance. Below we outline what you need to know about the most recent updates.

What Are California’s Climate Disclosure Laws?

In 2023 California passed SB 253: The Climate Corporate Data Accountability Act, and SB 261: The Climate-Related Financial Risk Act. Here’s a high-level overview of their requirements:

SB 253

Who needs to report?

Corporations that do business in California and made over $1 billion in revenue in the previous fiscal year.

What is reported?

The company’s scope 1, 2, and 3 Greenhouse Gas Emissions.

When is the reporting deadline?

2026 (scope 1 and 2 emissions) and 2027 (scope 3 emissions); reports annually thereafter.

SB 261

Who needs to report?

Corporations that do business in California and made over $500 million in revenue in the previous fiscal year.

What is reported?

The company’s climate-related financial risk and mitigation strategy.

When is the reporting deadline?

January 1, 2026; reports biennially thereafter.

Meeting these reporting requirements involves in-depth carbon accounting and accurate data collection. Scope emissions must be measured precisely, and reports must be assurance-ready.

SB 219 Amendments

In the two years since the initial passing of the bills, many stakeholders brought forward concerns over how to comply. That is where SB 219 comes into play. Passed into law in 2024, SB 219 is the companion bill that updates the following details:

Granted California Air Resources Board (CARB) discretion to set a distinct Scope 3 emissions reporting schedule. Previously, they were required within 180 days of Scope 1 and Scope 2 emissions disclosure.
Allows CARB to directly receive GHG emissions reports rather than through an “emissions reporting organization”. They still have the option to delegate this duty to a reporting organization.
Allows subsidiaries to consolidate SB 253 reports under parent companies, which was previously only specified for SB 261 reports.
Gave CARB until July 1, 2025 to specify regulations for reporting GHG emissions. In the initial bill text, they were supposed to do so by January 1, 2025.

Remember that these changes did not impact the reporting schedule for SB 253 and SB 261 – they simply updated some of the details.

Key Takeaways from CARB’s Updated Guidance

In their most recent public workshop held on August 21, 2025, CARB provided additional guidance on regulation development and implementation, reporting, and timeline requirements. Here is the complete Virtual Public Workshop recording and presentation. CARB also released this Climate Related Financial Risk Disclosures: Draft Checklist, which provides guidelines for SB 261 reporting.

Below is a selection of additional guidance from the 8/21/25 workshop:

SB 253

Scope 1 and 2 reporting deadline is proposed for June 30, 2026 (2025 data).

This is not yet a final deadline; CARB staff is taking public feedback.
Scope 1 and 2 reports in the future (not in 2026) will need to meet “limited assurance”. This means data collection, hygiene, and transparency are paramount. Green Econome’s data consulting services can help you get your data assurance ready.

Allows for the use of existing reporting standards, such as the GHG protocol, ISO 14064, TCFD, CSRD, etc.

SB 261

CARB will open a public docket for SB 261 reporting entities to post a link to their initial financial risk reports (due January 1, 2026).

The disclosure requirement is every two (2) years.

CARB will accept “good faith effort” reports for SB 261, meaning in 2026 they will accept climate-related risk reports that were prepared to the best extent possible by the entity.

Reporting entities may use any of the following frameworks for Climate-Related Financial Risk Reports:

The Final Report of Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) (June 2017) published by the TCFD (or any successor)
The International Financial Reporting Standards Sustainability Disclosure Standards, as issued by the International Sustainability Standards Board (IFRS S2)
A report developed in accordance with any regulated exchange, national government, or other governmental entity, including a law or regulation issued by the United States government (see HSC § 38533(b)(3)(A) for details).

How Companies Can Prepare for SB 253

Build a reliable data collection and management system for tracking Scope 1, 2, and 3 emissions. The sooner you have this in place, the better positioned you are for near-term reporting and long-term corporate requirements. Green Econome blends online data platforms and human expertise to create a robust system that responds to your needs.
Secure your verification and assurance providers early. If you haven’t already, now is the time to get your team in place. As these climate laws take effect, in California and globally, the market will be under pressure.
Step 3: Scope 3. There is a reason SB 253 and other reporting requirements are delaying Scope 3 emissions. It’s complex, hard to measure, and verify. You need to start tackling your scope 3 with 1 and 2, because it may take you that extra time to get it assurance ready.

Using Climate Disclosure to Gain a Competitive Advantage

Many stakeholders in the industry see these reporting laws as headaches and hurdles for their business. But could they also be an advantage?

Reporting GHG emissions and climate-related risks transparently could attract investors looking for long-term value. From a business perspective, these reports can be eye-opening and with proper analysis could be a value-add that improves the company’s resilience over time.

Let’s also not forget the potential non-compliance penalties upwards of $500,000 (SB 253) and $50,000 (SB 261) each reporting year.

How Can Green Econome Help?

Green Econome provides multiple related services for SB 253 reporting. We can perform ENERGY STAR® benchmarking, data collection, data verification, carbon accounting of your GHG emissions, and provide ongoing support for your long-term compliance. We have been entrusted by large, publicly traded companies and are ready to help you meet these stringent requirements. Reporting can take time, and the initial deadlines are fast approaching. Contact us to see how we can assist your team today.

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Decarbonization Insights

An Overview of California SB 253 – Scope Emissions Reporting

October 22, 2025 admin

[UPDATED OCTOBER 2025] 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.

SB 253 is one part of California’s Corporate Climate Disclosure Laws – the others being SB 261 and SB 219. In this post we will cover what needs to be reported, who needs to report, and the implications of the SB 253.

You should also see our post about SB 261, the adjoining senate bill regarding climate-related financial risk and our Guide to Updates to California’s Climate Disclosure Laws.

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 SB 253

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

Under SB 253, the first report on Scope 1 and 2 emissions will be due in 2026 and annually thereafter. CARB is expected to require annual Scope 3 emissions reporting beginning in 2027.

Much of the language in SB 253 left the door open for the state to further develop these regulations and define what must be reported. The resulting companion bill, SB 219, updated the following aspects of SB 253:

Companies with different subsidiaries can consolidate reports at the parent company level
Allows CARB to receive GHG emissions report directly, rather than through a third party
Allows CARB to set a distinct Scope 3 Emission reporting schedule. Originally they were required within 180 days of Scope 1 and 2 reports.

What Needs to be Reported?

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. Larger companies are able to report at the parent company level meaning subsidiaries do not need to report individually.

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 marikae@greeneconome.com.

DOWNLOAD SB 219 SECTION 1 BROCHURE

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California Senate Bill 261 - Climate-Related Financial Risk Reporting

Decarbonization Insights

An Overview of California SB 261 – Climate-Related Financial Risk

October 22, 2025 admin

[UPDATED OCTOBER 2025] One of the hottest topics in corporate sustainability right now is the passing of California’s Corporate Climate Disclosure Laws. If you follow Green Econome, then you probably read about SB 253, which focuses on corporate contributions to GHG emissions.

On the other hand, SB 261 requires large corporations to report their climate-related financial risk. As with our previous post, we will discuss who is impacted by it, and what exactly they are expected to do.

If you haven’t yet, I highly suggest checking out our Guide to Updates to California’s Climate Disclosure Laws.

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). These guidelines ask companies to report on their exposure to climate-related financial risks and what tactics they are implementing to reduce those risks.

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.

Much of the language in SB 261 left the door open for the state to further develop these regulations and define what must be reported. The resulting companion bill, SB 219, allows CARB to act as a reporting organization, rather than delegating it to a third party if they choose to.

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.

How to Prepare

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.

DOWNLOAD SB 261 BROCHURE

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Decarbonization Insights

ITC Solar Tax Credit Impacted by the OBBB – Take Action Now

August 1, 2025 Connor Chow

For commercial solar projects, the Investment Tax Credit (ITC) has been the crown jewel of federal incentives—offering 30%+ in potential tax savings with the right project conditions. The ITC is a federal tax credit that reduces federal income tax liability by a percentage of the cost of the solar system placed in service during that tax year. The Inflation Reduction Act (IRA) set this credit to 30%, with additional 10% bonuses available on top of the base credit.

The Trump Administration’s One Big Beautiful Bill Act (OBBB) has initiated a major shakeup. Some of the changes include: solar and wind projects will be phased out of the credit, the requirements for eligibility have become stricter, and projects now face tight deadlines to receive the credit.

Let’s look at the changes the OBBB has made to the ITC and how solar projects need to act now to take advantage of the tax benefits before they are gone.

Key Terms

Inflation Reduction Act (IRA): The Inflation Reduction Act of 2022 was a major federal law that expanded clean energy incentives like the ITC.

Investment Tax Credit (ITC): A tax credit that allows taxpayers to deduct at least 30% of the cost of a clean energy project (like solar) from their federal taxes.

One Big Beautiful Bill (OBBB): Passed into law on July 4, 2025, it is a legislative package created by the Trump Administration that significantly impacted the IRA and ITC regulations.

Material Assistance: A prohibited amount of support in the form of components or materials from a prohibited foreign entity (PFE). This is determined using a Material Assistance Cost Ratio.

Foreign Entity of Concern (FEOC): A foreign entity that is defined by the United States government to be an adversary or directly controlled by one.

Prohibited Foreign Entity (PFE): An entity that is disqualified from receiving the tax credit due to ownership or involvement with a foreign entity.

In Service: A project that is placed in service means it is fully operational and legally ready to produce energy. The project is complete.

Safe Harbor: A provision of the ITC that preserves tax credits when a project has “begun construction” by incurring 5% or more of the total project cost, or started significant physical work.

The One Big Beautiful Bill and Solar ITC: What You Need to Know Now.

Your solar/wind project needs to start construction before the end of this year (2025) to take advantage of the current, full IRA ITC of 30%+ without any new restrictions.
Projects that begin within the next 11 months may still claim the 30%+ ITC; however, must comply with new, stricter FEOC rules.
The IRA version of the ITC guidelines remain in place for battery storage projects but are still subject to FEOC restrictions.

Updated Timeline and Key Deadlines

Green Econome - Timeline of the OBBB Changes to the ITC Solar Tax Incentive

DOWNLOAD ITC INFO SHEET

To further outline the key deadlines, solar and wind projects that:

Start construction before December 31, 2025: are unaffected and can claim current IRA ITC (grandfathered).
Start construction by July 4, 2026: can claim the ITC (subject to stricter FEOC rules). They have 4 years to place the project in service.
Start Construction after July 4, 2026, AND placed in service before December 31, 2027: can claim the ITC (subject to stricter FEOC rules).
Miss both deadlines: will be ineligible for the credit moving forward.

Before we go any further, let’s be clear: the window for ITC eligibility has shortened significantly. Solar projects are now operating on an accelerated timeline. With demand spiking, both material and construction costs are also expected to increase. On top of that, new tariffs on imported components could further drive project costs higher.

Solar ITC Construction Start Date and Grandfathering

You may be wondering what constitutes construction being “started”. The existing guidance from the IRS follows two Safe Harbor tests. Under the 5% Safe Harbor rule, if a project has incurred 5% of its total cost, then it has technically begun construction. Under the physical work test, if there has been “significant work” on or off-site, then construction has begun.

Why is this important? The criteria for Safe Harboring is crucial to understanding where projects fall into this new version of the ITC.

New Restrictions Regarding Foreign Entities of Concern (FEOC)

The other aspects of the ITC that have been impacted are the restrictions on projects that involve foreign entities of concern (FEOC) and material assistance – the details of which are described in Section 70512 (b) of the OBBB.

Material Assistance

Under the bill, projects that receive “material assistance” from a prohibited foreign entity (PFE) are ineligible for the tax credits. For the sake of solar this mostly applies to Chinese material suppliers, even if they are operating outside of China.

In 2026, a project is determined to satisfy the requirement for non-FEOC materials, if their material assistance cost ratio is above the threshold allowed. This threshold begins at 40% in 2026 and increases annually to 60% in 2029.

Material Assistance Cost Thresholds-3 (1)

The above chart represents the minimum non-FEOC materials percentage of total direct costs required to obtain the credit, which increases by 5% annually.

FEOC Ownership

Under the FEOC restrictions, if the taxpayer of a project is owned or influenced by a PFE, they will no longer be eligible for the credit. Curious what it means to be influenced by a PFE? Let’s use China as an example. The taxpaying entity would be ineligible to receive the credit if a:

Chinese company owns more than 25%
Chinese company and other PFEs own more than an aggregate 40%
Chinese company holds more than 15% of the entity’s debt

Continuation of ITC for Batteries

While solar and wind are being phased out by the new bill, other technologies such as battery storage are eligible for the credit moving forward. Though, they are not untouched. They will have updated requirements, especially when it comes to foreign entity involvement.

These FEOC restrictions will become particularly problematic for energy storage projects since the overwhelming majority of the world’s battery supply chain — from raw materials to the finished battery cells — is dominated by China and Chinese-owned companies.

The above chart represents the minimum amount of material (cost) that must come from non-FEOC sources, which increase over time.

Continuation of 10% Adders

Another aspect of the ITC that will remain available to qualified projects is the 10% tax bonuses. Adders like the Energy Community and Domestic Content Bonuses each stack an additional 10% on top of the 30% base ITC.

The OBBB has not made changes to these bonus credits, meaning if your project is eligible, you can still receive 40%+ in tax credits while the base ITC remains available.

What’s the Bigger Picture of the ITC?

The message is clear: if you’re considering solar, start your project as soon as possible. With rushed project deadlines and restrictive FEOC rules, waiting to complete a project will complicate the development process.

We have reached the global clean energy tipping point. 74% of new energy worldwide is from renewables. It’s cheaper, more efficient, and more scalable than ever before. The ITC is just one piece of the solar equation. Clean energy is the long game—and even without the ITC, the long-term return on solar still shines bright.

Want to Learn More About This Deduction and Get Started on Saving?

This page was developed in collaboration with Xero Solar, whose expertise in the solar industry provided valuable insight on how policy changes are affecting projects in the field.

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News

Meet With Marika Erdely at the IMN ESG Forum in Laguna Beach

July 3, 2025 Connor Chow

SCHEDULE A MEETING

Heading to the IMN ESG Forum in Laguna Beach? If you are looking for a provider to support the data management and environmental strategies for your portfolio, schedule a meeting with Marika Erdely, Founder and CEO of Green Econome, to see if our services are aligned with your needs. Click on the button above to book a time! See you in Laguna!

About Green Econome

Green Econome is a woman-owned small business specializing in energy and water efficiency compliance, consulting, and construction for commercial real estate. Based in Los Angeles, our licensed and credentialed team takes a consultative approach to reduce environmental impact, enhance property values, and achieve regulatory and ESG goals.

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Building Performance Standards Insights

Energy Codes vs. BPS – Building Performance Policy Explained

July 3, 2025 Connor Chow

As cities push for lower emissions and a modern built environment, two key policies shape building performance: energy codes and building performance standards (BPS). The ways in which they work together can make a big difference in the efficiency of a community.

The problem is while both aim to improve efficiency, they often operate independently with little coordination. Energy codes ensure new buildings or renovations will perform well, whereas BPS work to bring existing buildings up to modern-day standards. Ultimately, each is playing their role in progressing towards local and state emissions reduction goals.

Energy Codes vs. Building Performance Standards (BPS)

If you aren’t familiar with these terms, let’s break them down. In general, energy codes are implemented as energy efficiency standards for new buildings being constructed. They set the design standards for the building’s heating, cooling, water-heating and other energy-based aspects of the construction.

Conversely, building performance standards (BPS) are used to set an efficiency standard for all emissions of an existing building.

Who is impacted by each policy type?

Since energy codes target new developments, they only apply to buildings under construction or major renovation (building permits often trigger code enforcement). This means that the responsibility to comply generally falls on the construction or design team.

Building performance standards, on the other hand, impact existing buildings. So, when it comes time to comply, the responsibility is on the current building owner.

Why don’t energy codes and BPS collaborate?

While these energy policies act in similar ways, their implementation is quite different. Energy codes tend to regulate certain systems within the building’s design, while BPS regulates the entire building’s emissions. Using different building performance metrics means that compliance with energy codes during the construction of a building doesn’t necessarily mean that it will comply with BPS in the coming years.

This misalignment can quickly become problematic in cases where energy codes are not as strict as a new BPS policy. Cities with weaker energy codes may find that even their newest buildings are not able to meet BPS. Additionally, energy codes and BPS are usually enforced by different departments, often leading to a lack of coordination between the two.

California Title 24 Energy Code

To help drive these concepts home, let’s look at an energy code example in California.

Title 24 Part 6

California’s Title 24 Part 6 sets the minimum energy efficiency standards for new buildings and major renovations to existing buildings. This section of the energy code focuses on systems like lighting, HVAC, and water heating, ensuring buildings are designed to be efficient.

Title 24 Part 11

Title 24 Part 11, known as CALGreen, is the state’s green building code which functions as a statewide energy reach code. It has mandatory measures and voluntary ones that go beyond the basic energy efficiency requirements in Part 6 with broader environmental performance measures.

Code triggers are situations where a building or project submits for a building permit. These sections of Title 24 are triggered when a building is being constructed or undergoing a major addition or alteration.

It is very important that energy codes such as these remain up-to-date and current. Relevance is key. In this case, Title 24 is updated every 3 years. We currently operate under Title 24 – 2022 (effective in 2023).

Los Angeles EBEWE

The Los Angeles Existing Buildings Energy and Water Efficiency program is a great example of Building Performance Standards being implemented to improve existing buildings.

LA EBEWE Phase I requires existing buildings over 20,000 sq. ft. to benchmark their building’s energy and water use, providing insight to its performance

Under LA EBEWE Phase II, buildings must undergo an ASHRAE Level II Audit and Retro-Commissioning (A/RCx), or meet an exemption. The audit provides an analysis of the building’s energy and water-use equipment and is then used to improve the building’s efficiency. These large buildings must improve their efficiency and meet performance standards every 5 years.

How do we connect the dots?

One of the first things that needs to happen is improving energy codes across the country so that they can better align with future BPS. Considering real-world operational outcomes when designing energy code standards will make it much easier for new buildings to comply with BPS.

This connection can be improved via energy reach codes (such as in Title 24) which outlines efficiency measures that go beyond the baseline standards. Energy reach codes help cities and counties better align new construction with long-term sustainability and Building Performance Standards.

From the BPS perspective, when implementing the first performance cycle, compliance should be reasonably achievable for buildings who were recently constructed in accordance with energy codes.

Ultimately, cross-coordination between energy codes and BPS will be extremely important moving forward as cities try to make progress towards their energy reduction goals.

Ready to get started on BPS compliance?

Due to the disconnect between building performance policy, many existing buildings are having to make improvements to comply with BPS. The compliance process can be a challenging, confusing process and hiring a consultant like Green Econome takes the stress out of the equation. Our expertise in benchmarking, data verification, and BPS compliance pathways nationwide makes us a home run for your ongoing BPS needs.

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 standards and make sure your property is reaching compliance in the easiest way possible. 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.

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Insights Media

GM Properties & Marika Erdely Talk Energy Bill Reduction

May 29, 2025 Connor Chow

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Marika Erdely, Founder and CEO of Green Econome, recently sat down with GM Properties to discuss energy regulations and optimizing property performance for commercial real estate stakeholders in Southern California.

KEY TAKEAWAYS

5 effective ways to reduce energy bills in commercial properties
LED lighting retrofit
Thermostat optimization
Upgrading HVAC systems
Improving roof efficiency
Window upgrades and films

Summary

This article outlines the most effective ways to reduce high energy bills in commercial properties. It explains various upgrades, such as LED and HVAC, and breaks down exactly how they can benefit your property. Insights from Marika highlight how to boost efficiency, reduce costs, and increase property value, with actionable tips for property owners.

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About GM Properties

GM Properties is a Southern California-based boutique commercial real estate firm compiled of seasoned professionals in real estate, property management, and brokerage services. The company has served a wide range of clients since 1963 across industrial, office, retail, and land assets. GM Properties’ team leverages industry-leading platforms to deliver efficient management and access to off-market opportunities.

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Building Performance Standards Insights

These 5 Cities Just Adopted Building Performance Ordinances

May 27, 2025 Connor Chow

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.

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ENERGY STAR® Benchmarking

SUSTAINABILITY CONSULTING

INCENTIVES & FINANCING

What Are Energy Efficiency Upgrades?

Myth #1: Energy Efficiency is Too Expensive

Myth #2: Older Buildings Can’t Be Efficient

Myth #3: Efficiency is just about Saving Energy

Myth #4: I Already Track My Energy Bills – That’s Enough

Myth #5: Efficiency Projects Disrupt Operations

Money Spent Now Equals Savings Over Time

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ENERGY & WATER AUDITS

RETROFIT & CONSTRUCTION

INCENTIVES & FINANCING

What Are California’s Climate Disclosure Laws?

SB 253

SB 261

SB 219 Amendments

Key Takeaways from CARB’s Updated Guidance

SB 253

SB 261

How Companies Can Prepare for SB 253

Using Climate Disclosure to Gain a Competitive Advantage

How Can Green Econome Help?

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ENERGY & WATER CONSULTING

ENERGY STAR® Benchmarking

ESG & SUSTAINABILITY

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

Here’s the Specifics of SB 253

What Needs to be Reported?

What is the Timeline?

Additional Points to Consider

How to Prepare

3 Ways We Can Help With SB 253 Compliance

1. Data Collection, and ENERGY STAR® Benchmarking

2. Third Party Verification

3. Consulting

DOWNLOAD SB 219 SECTION 1 BROCHURE

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ENERGY & WATER CONSULTING

ENERGY STAR® Benchmarking

ESG & SUSTAINABILITY

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

Here’s the Specifics of SB 261

Additional Points to Consider

What is the Cost to Comply?

How to Prepare

DOWNLOAD SB 261 BROCHURE

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ENERGY & WATER CONSULTING

INCENTINES & FINANCING

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Key Terms

The One Big Beautiful Bill and Solar ITC: What You Need to Know Now.

Updated Timeline and Key Deadlines

Solar ITC Construction Start Date and Grandfathering

New Restrictions Regarding Foreign Entities of Concern (FEOC)

Material Assistance

FEOC Ownership

Continuation of ITC for Batteries

Continuation of 10% Adders

What’s the Bigger Picture of the ITC?

Want to Learn More About This Deduction and Get Started on Saving?

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About Green Econome

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Energy Codes vs. Building Performance Standards (BPS)

Who is impacted by each policy type?

Why don’t energy codes and BPS collaborate?

California Title 24 Energy Code

Los Angeles EBEWE

How do we connect the dots?