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

  1. The building meets certain use types, as determined by the city.
  2. The building is in financial distress, as determined by the city.
  3. Disclosure of usage data would result in the release of proprietary information, violating privacy rights under applicable laws.
  4. 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.

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.

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:

  1. The building is zoned as exclusively industrial (HI, LI, IP).
  2. 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).

  1. ASHRAE Level II or higher audit, conducted by a Qualified Auditor.
  2. Retrocommissioning (RCx), conducted by a Qualified Retrocommissioning
    Professional.
  3. 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.

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

  1. No/temporary certificate of occupancy for more than half of the reporting calendar year.
  2. The building is scheduled to be demolished one year or less from the reporting date.
  3. The building is under financial distress.
  4. The building does not receive energy or water service.
  5. 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.

MULTIFAMILY

PRESCRIPTIVE MEASURES

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

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.

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:

  1. 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
  2. The Property has been occupied for less than five (5) years
  3. The Property is in Financial Distress
  4. A demolition permit for the entire Property has been issued and demolition work has commenced
  5. 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:

  1. 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
  2. The Property has been occupied for less than five (5) years
  3. The Property is in Financial Distress
  4. A demolition permit for the entire Property has been issued and demolition work has commenced
  5. 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

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.

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

  1. No/temporary certificate of occupancy for more than half of the reporting calendar year.
  2. The building is scheduled to be demolished one year or less from the reporting date.
  3. Condominium complexes.
  4. 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

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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

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.

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

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:

  1. ENERGY STAR Certification for the building’s compliance year (CY). Requires ENERGY STAR score greater than 75.
  2. ENERGY STAR Certification for two of the three years preceding the building’s compliance year. Requires ENERGY STAR score greater than 75.
  3. 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.
  4. 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.
  5. 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.
  6. The building is new and has been occupied for less than five years based on the Temporary or Final Certificate of Occupancy.
  7. 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:

  1. 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.
  2. 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.
  3. 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.
  4. The building is new and has been occupied for less than five years based on the Temporary or Final Certificate of Occupancy.
  5. 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.

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. Our company has been working with Los Angeles EBEWE compliance since the beginning.

WHAT IS CALIFORNIA ASSEMBLY BILL (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

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 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

  1. 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. 
  2. 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. 
  3. 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.
  4. 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.
  5. 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.

Santa Monica, CA (March 28, 2023)—Green Econome is proud to announce that it has received the 2023 ENERGY STAR Partner of the Year Award from the U.S. Environmental Protection Agency and the U.S. Department of Energy.

Marika Erdely, Founder and CEO of Green Econome states, “Receiving this recognition for our partnership with the EPA and ENERGY STAR program is a significant milestone for our organization. Green Econome was founded to meet the demand for ENERGY STAR benchmarking as local and state energy disclosure laws were put into place over a decade ago. Green Econome is celebrating ten years of compliance services, so earning 2023 Partner of the Year is that much sweeter. We have benchmarked nearly 2,000 properties and pride ourselves on being a leader in accurate reporting and industry expertise. We wholeheartedly invest in ENERGY STAR as a trusted platform that we lean into for benchmarking, building certifications, and now GHG emissions metrics, data management for our client’s ESG goals, and driving reduction targets.”

“As we accelerate historic efforts to address climate change, public-private partnerships will be essential to realizing the scale of our ambition,” said EPA Administrator Michael S. Regan. “I applaud this year’s ENERGY STAR award winners for working with EPA to deliver a clean energy future that saves American consumers and businesses money and creates jobs.”

Each year, the ENERGY STAR program honors a select group of businesses and organizations that have made outstanding contributions to the transition to a clean energy economy. ENERGY STAR award winners lead their industries in the production, sale, and adoption of energy-efficient products, homes, buildings, services, and strategies. These efforts are essential to fighting the climate crisis, protecting public health, and creating a clean energy future for everyone.

Winners are selected from a network of thousands of ENERGY STAR partners. Visit Green Econome's profile page, or for a complete list of 2023 winners and more information about ENERGY STAR’s awards program, visit energystar.gov/awardwinners.

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.

About ENERGY STAR

ENERGY STAR® is the government-backed symbol for energy efficiency, providing simple, credible, and unbiased information that consumers and businesses rely on to make well-informed decisions. Thousands of industrial, commercial, utility, state, and local organizations rely on their partnership with the U.S. Environmental Protection Agency (EPA) to deliver cost-saving energy efficiency solutions. Since 1992, ENERGY STAR and its partners helped American families and businesses avoid more than $500 billion in energy costs and achieve more than 4 billion metric tons of greenhouse gas reductions. More background information about ENERGY STAR’s impacts can be found at www.energystar.gov/impacts.

Media Contact:

Karalyn Honea
karalyn@greeneconome.com

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

  1. 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.
  2. 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.
  3. 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

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

  1. 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.
  2. 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.
  3. 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

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

  1. 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.
  2. 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.
  3. 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.

The latest focus in sustainable commercial real estate is on “Environmental, Social, and Governance,” also known as ESG. ESG has received attention from regulators and investors, and, according to a recent report from Deloitte,  “sustainability has become a strategic imperative across industries”. Real estate professionals need to begin focusing on how ESG can impact portfolios and policy. Let's identify:

  1. What is ESG and how will it affect commercial real estate?
  2. How will the Inflation Reduction Act benefit my real estate portfolio?

Here is a simple table identifying some of the elements of ESG:

Setting the Standard: The SEC Proposed Ruling

Soon, public companies will need to report on the three ESG categories, also known as an ESG Strategy, to their investors. The SEC’s proposed Rule on Climate Disclosure gives companies a roadmap for ESG reporting and requires disclosures related to climate-related risks that could have an impact on their businesses, whether it’s their day-to-day operations or a financial impact on their real estate assets.

The SEC proposed reporting will be part of the public corporation's quarterly and annual disclosures and will detail the company’s carbon footprint and include reporting on greenhouse gas emissions from real estate and the climate-related risks to those assets. At NAREIT’s ESG conference I attended this fall, several panelists suggested that insurance companies and banking institutions will be considering climate disclosures in their financial metrics. Additionally, it was mentioned that investors from the European Union would also be looking at ESG disclosures when considering investments in the U.S. Most public companies have been focusing on their ESG strategies, and the process of gathering data for this year’s ESG disclosures is already underway.

Privately-Held Companies and Building Owners Can Benefit

What about private companies, and the private commercial real estate owners that lease to space public companies? Private owners should also focus on having an energy-efficient property and should not ignore the trend toward ESG.

The “E” in the ESG framework stands for “environmental,” which refers in part, to real estate and the efficiency of buildings. All buildings emit carbon emissions, and these emissions (in the forms of kWh and therms) can be broken down into three kinds: Scopes 1, 2, and 3.

  • Scope 1: Direct emissions that stem from sources that are owned, or controlled by the organization, such as company vehicles and the fuel they burn, process emissions from industrial activities, leaks from refrigeration, etc.
  • Scope 2: Indirect emissions that arise from the generation of purchased electricity, heating, cooling, and steam (Any utility bill creates emissions such as electricity or gas used by the building)
  • Scope 3: Other indirect emissions that are directly from the supply chain of goods and services that the public company purchases. (This is the largest scope and most complicated coming from the organization’s operations, purchasing and selling goods, such as leased assets, business travel, and employee commuting)

Initially, Scope 1 and 2 emissions will be required to be disclosed by the SEC. However, public companies will soon be mandated to report Scope 3 emissions as well.

Mandated reporting means that if you have a tenant in one of your buildings that is providing products to a public company, the tenant will soon have to be reporting on their building’s emissions and activities. There will then be an effort to reduce those emissions, even if your building is not operated by a public company.

How Do You Measure Your Property’s Emissions?

As with anything new, standards and protocols are being established, along with a host of innovative technologies to harness data. As a trusted platform, Green Econome utilizes ENERGY STAR® Portfolio Manager, which gives owners data that can be used to calculate the property’s total emissions. The EPA is actively developing the platform further, to better meet the demands of GHG accounting and scope emissions reporting.

Green Econome takes a systematic approach to ESG, along with a team of advisors, we measure, identify opportunities, implement, and analyze results to ensure you are on target to achieve your environmental goals. If building certification is part of your strategy, we can fulfill those as well.

Inflation Reduction Act: Tax Strategies and Incentives for Property Owners

There’s good news! There are many financial benefits from the new Inflation Reduction Act of 2022 (IRA) to commercial property owners and developers.

Personally, I like the investment tax credit (ITC) known as the federal solar tax credit and the fact that it is now back up from 26% to 30% of the total project cost through 2033. Currently, our solar pv projects are benefiting from 58% of the project cost being covered by this tax credit and federal and state depreciation deductions.

Section 179 (a tax deduction) of the IRA provides owners with a dollar amount per square foot if the commercial or residential building meets a certain efficiency standard. Owners can earn $5 per sq. ft. for new construction or retrofitting a building, depending on its resulting energy efficiency. It is a laddered benefit ranging from $2.50 sq. ft. for a 25% reduction in energy usage up to a maximum of $5.00 sq. ft. for 50% or more.

For multifamily landlords, Section 45L (a tax credit) allows up to $5,000 per unit (single-family or apartment) if the building meets certain energy efficiency criteria.

What's In It For Commercial Real Estate?

Energy-efficient buildings will be worth more and will be more attractive for public companies concerned about emissions. Soon, everyone will be thinking about ENERGY STAR Benchmarking —a viable tool to produce data for reporting on your building’s performance.

ENERGY STAR Benchmarking is already widely used for energy and water disclosure laws across the county (and Canada). You can view IMT's national map of programs currently in place.

As an expert in reducing commercial property emissions, I anticipate a big push to move real estate into the world of ESG reporting, which goes a long way toward environmental sustainability. Once the SEC finalizes its ruling, all public companies will be required to focus on the “E” on their buildings like never before. Additionally, I believe that when companies also consider the “S” for Social and “G” for Governance, they will ultimately be better stewards of the planet.

If you need an expert to understand your building’s energy or water efficiency and emissions, please reach out to me at Marika@greeneconome.com. At Green Econome, a team of professionals is ready to help you meet your ESG requirements, save operating costs, and increase the value of your property.

Marika Erdely Headshot

Marika Erdely, MBA, LEED AP+C, Certified Energy Auditor, Fitwel Ambassador
MarikaE@GreenEconome.com
(818) 681-5750

Marika is an expert in energy and water efficiency and is the Founder and CEO of Green Econome, an energy consulting and construction company located in Santa Monica, CA. Marika has over 30 years of professional financial experience and approaches sustainability through an economic lens.

Chula Vista, CA joins a growing list of municipalities with building benchmarking and performance targets.

Chula Vista is the second-largest city in the San Diego metropolitan area and known as, “the lemon capital of the world”. It’s marine to mountain biodiversity and urban landscape requires the city to prioritize the unique challenges to the local community, on how it consumes and conserves natural resources. Which is why they are all-in on their 2017 Climate Action Plan. That and, it’s what all cities should be doing. As a building compliance service provider, we want to break down the why, what, who, when, and how of the ordinance, because we like to help!

WHY: Chula Vista Climate Action Plan

The 2017 Chula Vista Climate Action Plan is exemplary, with clear objectives and holistic strategies targeting clean growth, transportation, infrastructure, urban forestry, and energy, water, and waste reduction. Through the Plan, the city has committed to reducing greenhouse gas (GHG) emissions to 15% below 2005 levels by 2020 and 55% below 2005 levels by 2030. 

WHAT: Building Energy Saving Ordinance

One of the Climate Action Plan strategies to energy conservation in existing buildings comes as a familiar code and, for Chula Vista, is known as the Building Energy Saving Ordinance (BESO). Where cities like Los Angeles currently take a two-pronged approach: benchmarking and performance reporting, Chula Vista goes a step further to include minimum improvement requirements and transactional disclosure when applicable. 

We’ll call it the 1-5-10 Rule:

  • Every (1) year - ENERGY STAR® benchmark your building
  • Every five (5) years - meet conservation (performance targets) or audit (A/RCx) requirements
  • Every ten (10) years - demonstrate that your building is meeting the mandatory minimum improvement requirements
WHO: Owners of 20,000+ Sq.Ft. Multifamily & Commercial Buildings

Section 15.26.050 of the Municipal Code now requires multifamily and nonresidential buildings of at least 20,000 square feet to comply with the above Rule. The law and subsequent non-compliance fines apply to the owner, aka title holder of the property. The owner is responsible for maintaining all records related to their reporting. There are, of course, exemptions. Download our info sheet for a full list, but here are exemptions by building type:

  •       Residential buildings with less than five (residential) utility accounts
  •       Local and federal owned buildings
  •       Buildings owned by the Metropolitan Transit Service, Chula Vista and Sweetwater School Districts
WHEN: As Soon as January 2022

There is a gradual implementation of compliance reporting; however, benchmarking submission should be available starting in January. We’ll go back to the 1-5-10 Rule below, giving you a basic guideline:

 (1) Annual Benchmarking First Due Date:

  • March 20, 2022 - Buildings 20,000 - 49,999 Sq.Ft.
  • May 20, 2022 - Buildings 50,000+ Sq.Ft. 

(5) Year Conservation Requirements First Due Date:

  • Beginning 2023 or later - Buildings 50,000+ Sq.Ft. 
  • Beginning 2026 or later - Buildings 20,000 - 49,999 Sq.Ft.

(10) Year Minimum Improvement Requirements First Due Date:

  • Beginning 2023 or later - Multifamily Prescriptive Upgrades
  • Beginning 2028 or later - Buildings 50,000+ Sq.Ft.
  • Beginning 2031 or later - Buildings 20,000 - 49,999 Sq.Ft.
HOW: With a Little Help from Some Friends

The City of Chula Vista and ENERGY STAR Portfolio Manager websites can help guide you through the benchmarking process and how to connect your SDG&E data. We always recommend automatic data upload, unless of course, you like manually entering billing data year after year. You can also hire us to do all of it!

There is currently no cost to comply; however, there is a cost to not comply! Failure to comply with this law results in a notification and 60-day window. If a building does not submit their report within that time, they are subject to fines of up to $2,250 on a per-incident basis, based on the building’s gross floor area (GFA).

All good plans come with a solution. There are incentives and programs available through the city to help businesses (and residents) identify areas of improvement and pay for efficiency upgrades. There are many incentives at the utility, state, and federal levels to help implement building resiliency as well.

Green EconoME is a full-service provider. Our team of multidisciplinary, qualified professionals can fulfill your 1-5-10 and are versed in the latest incentive programs and financing options. It is what our integrated approach is based on. Whether your goal is to simply comply or to fulfill ESG strategies, Green EconoME analyzes energy use, and existing conditions to provide solutions that reduce operating costs, and increase the value of your property. Contact us with questions or for pricing. Chula Vista, we are so excited for the health and future of your community, congratulations! We can’t wait to get started.

Los Angeles Existing Buildings Energy and Water Efficiency Ordinance (EBEWE): Phase II – What to Expect

If your building is a covered building and ≥20,000 sq. ft. (a.k.a. needs to comply with EBEWE), then you should have a few years of ENERGY STAR benchmarking under your belt. If not, stop reading and call us immediately at (424) 422–9696! In addition to your annual benchmarking, every five years you are required to show that you have either maintained a high-performing building or are taking steps to become one. Our job is to keep you informed, efficient and in compliance. Your job, when it comes to Phase II, is to make sure you have an efficiency budget in place and enough time to comply by your unique due date.

Below, we’ve outlined the program and Phase II compliance. We’ve also included an infographic for you visual learners, and some tips to comply:

EBEWE Program Summary

Local Policy: Los Angeles’ Green New Deal

Phase I Benchmarking Report: Due by June 1, annually

Phase II Performance Report: Due by December 1, every five-years based on the last digit of your LADBS Building ID

Program Fees: LADBS registration fee + surcharge for benchmarking is $66.41 / building / year, and $183 per audit/RCx confirmation submittal (subject to change)

The EBEWE Phase II Requirements

For Phase II, Building owners must either complete an ASHRAE Level II audit and retro-commissioning (RCx) OR meet one of the exemptions noted below before their compliance due date, which is determined by the last digit of the building’s LADBS Building ID.

https://www.betterbuildingsla.com/_images/content/EBEWE_Ordinance_Brochure.pdf

Prescriptive Path

a) ASHRAE Level II Audit
The in-depth identification and documentation of a building’s energy and water-use equipment. Audits examine existing conditions to pinpoint potential areas of improvement for energy and water efficiency. Must meet or exceed ASHRAE Level II standards.

b) Retro-commissioning (RCx)
RCx is the re-tuning and maintenance of existing systems (energy and water). Your ASHRAE Level II audit will list recommended RCx measures. It will be important to have an implementation plan and budget in place prior to your due date.

Performance Path

Buildings that do not have to go through an Energy Audit and Retro-commissioning qualify for one of the following exemptions:

  1. ENERGY STAR Certification: The building has received this certification from the EPA for the year of the building’s compliance due date, or 2 of the 3 years prior.
  2. For buildings not eligible to receive an ENERGY STAR score, the building must perform 25% better than the national median of similar building types. This data is available through your benchmarking reporting.
  3. 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.
  4. Buildings that do not have a central cooling system must retrofit four of six prescribed energy efficiency measures noted in the EBEWE guidelines (available upon request).

Water Exemption to the Audit and Retro-commissioning:

Buildings that meet one of the below exemptions do not have to go through a Water Audit and RCx:

  1. 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.
  2. Buildings that do not have a central cooling system must retrofit two of three prescribed water efficiency measures noted in the EBEWE guidelines (available upon request).
  3. 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.
  4. The building is new and has been occupied for less than five years from its occupancy date based on the Temporary or final Certificate of Occupancy.

*All exemptions must be certified by, or performed under the supervision of, a California licensed architect or engineer.

Know the Facts: Compliance Tips

  • Don’t be fooled into believing your building MUST receive an audit to comply. Not all buildings need to be audited. The price of an ASHRAE Level II audit can be significantly higher than available exemptions, so make sure you are being advised on the most efficient and cost-effective Phase II path to compliance for your building(s).
  • Performance metrics rely on twelve months of actual energy usage and information about the operations and physical characteristics of the building’s type and use. If this information is estimated or defaulted in your benchmarking report, the metrics will not be correct. Make sure your building has been accurately benchmarked.
  • As you see, this isn’t something that can be done quickly, or for free. If you need more information on creating a budget or financing options, call us.
  • Cities throughout the state (and country for that matter), also have local energy efficiency policy. If you have buildings outside of LA, make sure you are in compliance by checking our 2021 Guide.

As part of Green EconoME’s compliance services, we offer a consultation on the report's results, which includes an explanation and recommendations for energy efficiency improvements and how to meet EBEWE Phase II compliance. We will always make recommendations in the best interest of your building, budget and efficiency priorities.

Contact Green EconoME to meet your compliance requirements.