During National Clean Energy Action Month, take steps toward climate action for your commercial real estate.

Since our inception, the U.S. EPA’s ENERGY STAR® programs have been at the core of Green Econome’s services to help our customers save energy, save money, and protect the planet. As a commercial real estate owner or manager, you have the power to make a positive impact on the environment and your bottom line. October is National Clean Energy Action Month, a perfect time to take action and implement energy-efficient practices in your buildings. One of the best ways to start is through ENERGY STAR benchmarking and certification.

ENERGY STAR is a program by the U.S. Environmental Protection Agency (EPA) that helps businesses and individuals save money and protect the environment by promoting energy-efficient products and practices. Through benchmarking, you can compare your building's energy performance to similar buildings and identify areas for improvement. Certification, on the other hand, recognizes buildings that meet strict energy efficiency standards and have lower energy costs and greenhouse gas (GHG) emissions. By using ENERGY STAR benchmarking and certification, you can reap numerous benefits for your buildings and your business.

Top 5 Reasons for Clean Energy Action

Comply with Local and State Energy Benchmarking and Building Performance Policy

Cities and states nationwide are adopting climate action plans, which in many cases include annual ENERGY STAR benchmarking to track energy and water use and building performance standards to reduce GHG emissions across their existing building stock. Often ENERGY STAR certification is an exemption from having to perform costly audits, retro-commissioning, and efficiency improvements.

Lower Energy Costs

Energy-efficient buildings consume less energy and therefore have lower energy bills. According to ENERGY STAR, certified buildings use 35% less energy and emit 35% less carbon dioxide than typical buildings. By benchmarking your building's energy performance, you can identify ways to reduce energy waste and save money in the long run.

Higher Property Value

ENERGY STAR certification is a badge of honor that can increase your building's value and appeal to potential tenants or buyers. Certified buildings are more attractive to environmentally conscious tenants who prefer to work or live in sustainable spaces. Moreover, building certifications are being used as ESG targets and requirements by tenant companies, REITs, and investment firms.

Improved Indoor Comfort

Energy-efficient buildings are not only good for the environment and your wallet, but also for the health and comfort of occupants. By reducing energy waste, you can improve indoor air quality, reduce noise levels, and enhance thermal comfort. This can result in higher productivity, better health outcomes, and happier occupants.

Positive Public Relations

Implementing energy-efficient practices and achieving ENERGY STAR certification can improve your business's public image and reputation. You can promote your achievements to your stakeholders, customers, and the media, and showcase your commitment to sustainability and energy conservation.

Join us this month in celebrating the progress made, and more importantly, taking steps to further the clean energy transition needed to sustain our future. Take a moment, gather your team, and discuss with purpose what changes and goals you can commit to in 2024 and beyond. When you have the vision, take action. Call (424) 422-9696 or Contact Us. Talk to you soon!

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.

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

TABLE OF CONTENTS
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 and water 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, WATER, 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.
  • Meet one of the following Key Performance Standards for 2 of the 3 years preceding its Beyond Benchmarking deadline:
ENERGY
  • New construction, and occupied for less than five (5) years.
  • 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.

GREEN ECONOME PHASE II 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.

RELEVANT SERVICES

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.

TABLE OF CONTENTS
COMPLIANCE GUIDE

WHAT ARE THE NYC SUSTAINABLE BUILDING LAWS?

As part of the Climate Mobilization Act to achieve carbon neutrality by 2050, the City of New York has enacted a series of Local Laws (LL) to cut carbon emissions from buildings and improve the quality of life and health across its five boroughs. While the laws continue evolving, Green Econome works with Benchmarking and Energy Grades LL 84/133, LL 33/95, Audits and Retro-commissioning (RCx) LL 87, and Greenhouse Gas (GHG) Emission Reporting LL 97.

DOWNLOAD THE NYC LOCAL LAWS BROCHURE

NYC LOCAL LAW HIGHLIGHTS

Policy

CLIMATE MOBILIZATION ACT

Local Laws

LOCAL LAWS (84/133, 33/95) BENCHMARKING & ENERGY GRADES
LOCAL LAW 87 AUDITS/RCx
LOCAL LAW 97 GHG EMISSIONS LIMITS

Enforcing Agency

NYC DEPARTMENT OF BUILDINGS

Size of Property

25,000 SQ. FT. AND ABOVE

Property Type

COMMERCIAL, INDUSTRIAL, MULTIFAMILY BUILDINGS

LL 84 Required Information

12 MONTHS ENERGY, WATER AND BUILDING USE DATA

LL 87 Building Performance
Standards

AUDITS & RETRO-COMMISSIONING (A/RCx) REQUIREMENT

LL 97 GHG Emission Reporting

ANNUAL GHG EMISSION LIMIT COMPLIANCE REPORTING

Due Dates

LL 84 BENCHMARKING: MAY 1, ANNUALLY
LL 33 ENERGY GRADE LABEL: OCT. 31, ANNUALLY
LL 87 A/RCx REQUIREMENT: EVERY 10 YEARS
LL 97/147 GHG EMISSION REPORT: MAY 1, ANNUALLY

LOCAL LAW 84/133: BENCHMARKING

Buildings with a minimum gross floor area of 25,000 square feet must submit an annual energy & water benchmarking report to the City using ENERGY STAR® Portfolio Manager.

STEPS TO COMPLIANCE:
  • Check the Covered Buildings List every late February to early March. This list will confirm whether you need to comply and if you are required to include water consumption in your report.
  • Complete ENERGY STAR benchmarking and submit the report by May 1, annually.
  • Print and post Energy Grade Label by October 31, annually (see below).

EXEMPTIONS FROM BENCHMARKING

  1. Multifamily buildings with less than 20 units, enclosed parking, or other property types not eligible to receive a 1-100 ENERGY STAR Score.
  2. Buildings that contain a data center, television studio, and/or trading floor that together exceed ten percent of the Gross Floor Area (GFA).
  3. Properties with New Built or Demolition permits and no Temporary Certificate of occupancy in a reporting year, or properties with the ownership change in a reporting year may be eligible for a temporary exemption by request only.

PROGRAM ENFORCEMENT

Civil penalty of $500 for each quarter the report is late, up to a maximum of $2,000 per year.

LOCAL LAW 33/95: BUILDING EFFICIENCY RATINGS (ENERGY GRADES)

Buildings complying with LL 84 in most cases, are given an efficiency rating in the form of a letter grade by October 1, every year. Owners/agents must download, print, and display their energy grade label near the main entrance to the building by October 31, for the entire year.

EXEMPTIONS FROM GRADING LABEL

  1. Properties not eligible for an ENERGY STAR score will receive an “N” grade and are exempt from benchmarking and disclosure requirements.
  2. Properties with New Built or Demolition permits and no Temporary Certificate of occupancy in a reporting year, or properties with the ownership change in a reporting year may be eligible for a temporary exemption by request only.

PROGRAM ENFORCEMENT

Failure to display the grading label by October 31 results in a $1,250 fine.

LOCAL LAW 87: AUDITS & RETRO-COMMISSIONING

Once every 10 years, covered buildings over 50,000 Sq. Ft. must submit an Energy Efficiency Report (EER). Owners must submit their EER in the calendar year in which the last digit of the year coincides with the last digit of the building’s tax block number.

An ASHRAE Level II energy audit and retro-commissioning (RCx) report must be conducted by an approved energy auditor and submitted by the owner/agent.

EXEMPTIONS

Additional exemptions apply for high-performing buildings and certain conditions including (but not limited to):

  • ENERGY STAR certification for 2 of the 3 years before the due date.
  • LEED certification within 4 years of the due date.
  • Simple building that completes 6 prescriptive retrofits.
  • Less than 10 years old.
  • Undergone major renovation (as defined by law), within 10 years.
  • Experiencing substantial financial hardship.

PROGRAM ENFORCEMENT

Failure to submit an EER is a Major (Class 2) violation which may result in a penalty of $3000 in the first year and $5000 for each additional year until the EER is submitted.

LOCAL LAW 97: GHG EMISSION LIMITS

Per LL 97, most buildings over 25,000 Sq. Ft., are required to meet annual energy efficiency and greenhouse gas (GHG) emissions limits, with reporting starting May 1, 2025, and due every year thereafter. The carbon caps vary and depend on the building's size, property type, and LL 97 compliance year.

PROGRAM HIGHLIGHTS

  • Covered buildings are ≥ 25,000 sq.ft. and tax lots or condominiums containing two or more buildings totalling ≥ 50,000 Sq.Ft.
  • Property Type is based on the type determined and defined in the ENERGY STAR Portfolio Manager tool.
  • The first compliance reports for buildings covered by LL97 are due by May 1, 2025, and reflect emissions in calendar year 2024.
  • The first carbon emission limits per property type are listed here.
  • Building owners will be allowed to submit application requests to the Department of Buildings (DOB) for cap adjustments due to excessive emissions and special uses.
  • Owners may apply for deductions to the limit set for their emissions by purchasing greenhouse gas offsets, renewable energy credits, or by using distributed energy resources.

EXCEPTIONS TO COVERED BUILDINGS

The following buildings are exempt, even if they otherwise meet the definition of a covered building:

  • An industrial facility primarily used for the generation of electric power or steam.
  • Real property, not more than three stories, consisting of a series of attached, detached, or semi-detached dwellings, for which ownership and the responsibility for maintenance of the HVAC systems and hot water heating systems is held by each dwelling unit owner, and with no HVAC system or hot water heating system in the series serving more than 25,000 gross square feet, as certified by a registered design professional to the department.
  • A city building.
  • A housing development or building on land owned by the New York City Housing Authority.
  • A rent-regulated accommodation.
  • A building whose main use or dominant occupancy is classified as occupancy group A-3 religious house of worship.
  • Real property owned by a housing development fund company organized under the business corporation law and article eleven of the private housing finance law.
  • A building that participates in a project-based federal housing program.

PROGRAM ENFORCEMENT

Covered buildings that exceed annual emissions limits will face annual fines of $268 per ton of CO2 equivalent over the limit. Emissions are calculated based on tons of COequivalent per square foot.

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.

RELEVANT SERVICES

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.

TABLE OF CONTENTS
COMPLIANCE GUIDE

WHAT IS THE NEW JERSEY CLEAN ENERGY ACT (CEA) BENCHMARKING PROGRAM?

New Jersey joins an increasing number of states and municipalities across the United States in establishing benchmarking laws to measure the energy and water performance of buildings. New Jersey’s Clean Energy Act (CEA) of 2018 states the following:

No later than five years after the date of enactment of P.L. 2018, c.17 (C.48:3-87.8 et al.), the board shall require the owner or operator of each commercial building over 25,000 square feet in the State to benchmark energy and water use for the prior calendar year using the United States Environmental Protection Agency’s Portfolio Manager tool.

DOWNLOAD NJ CEA BENCHMARKING BROCHURE

CEA PROGRAM HIGHLIGHTS

Policy

CEA BENCHMARKING

Bill Text

BENCHMARKING POLICY PROPOSAL

Enforcing Agency

NEW JERSEY BOARD OF PUBLIC UTILITIES

Size of Property

> 25,000 SQ. FT.

Property Type

COMMERCIAL & MULTIFAMILY BUILDINGS

Required Information

12 MONTHS ENERGY, WATER, AND BUILDING USE DATA

Phase II Building Performance
Standards

ENERGY SAVINGS IMPROVEMENT PROGRAM (OPTIONAL)

Benchmarking Due Date

JULY 1, ANNUALLY

EXEMPTIONS FROM CLEAN ENERGY ACT BENCHMARKING

  • New Buildings – New buildings must be operational for a full calendar year before a building owner is required to benchmark that Covered Building.  The New Jersey tax assessment database, MOD-IV, will be used to qualify new buildings as operational for purposes of benchmarking. A commercial building will not be added to the Covered Buildings list until the second year after the year-built, as listed in the MOD-IV database. 
  • Demolitions – Recently- or soon-to-be-demolished buildings may be removed from the Covered Buildings list, provided that the building owner submits a certificate of approval for demolition. 
  • Unoccupied – If a building is unoccupied for a full year (365 days), the building owner may receive an exemption, provided that the building owner submits an affidavit or certification of non-occupancy.  
  • Foreclosure or Bankruptcy – If an action for foreclosure or bankruptcy has been filed during a particular reporting year, the building owner may apply to receive an exemption for the given reporting year. 
  • Other Conditions – Certain other situations for good cause may be removed from the Covered Buildings list (e.g., the building’s size falls below the threshold, there is an error in the Covered Buildings list, or an unregulated utility does not apply the 4/50 rule and provide aggregated building-level data and refuses to provide individual data even with tenant consent), and after providing appropriate evidence justifying such removal. 

ENERGY SAVINGS IMPROVEMENT PLAN

The Energy Savings Improvement Program is a performance contracting program administered by the BPU. ESIP is a financing mechanism used to pay for energy efficiency projects for all public entities. Any public entity that has completed a preliminary energy audit and can demonstrate energy savings may participate in the ESIP program.

TABLE OF CONTENTS
COMPLIANCE GUIDE

WHAT IS THE BOSTON BUILDING EMISSIONS REDUCTION AND DISCLOSURE ORDINANCE (BERDO)?

BERDO is a local law that aims to reduce air pollution and greenhouse gas emissions generated by large buildings in Boston. Owners of buildings subject to BERDO are required to report their buildings’ annual energy and water consumption. Starting in either 2025 or 2030, they will also need to comply with building emissions standards (i.e., emissions limits). The emissions standards set by BERDO decrease over time, with all buildings expected to reach net-zero emissions by 2050. 

DOWNLOAD BOSTON BERDO BROCHURE

BERDO PROGRAM HIGHLIGHTS

Policy

BUILDING EMISSIONS REDUCTION AND DISCLOSURE

Bill Text

BERDO ORDINANCE

Enforcing Agency

CITY OF BOSTON ENVIRONMENT DEPARTMENT

Size of Property

RESIDENTIAL: 15+ UNITS
NON-RESIDENTIAL: 20,000 SQ. FT. AND ABOVE

Property Type

COMMERCIAL, RESIDENTIAL, MULTIFAMILY BUILDINGS

Required Information

12 MONTHS ENERGY, WATER, AND BUILDING USE DATA

Phase II Building Performance
Standards

BUILDING EMISSIONS STANDARD

Benchmarking Due Date

MAY 15, ANNUALLY

Fines for Non-Compliance

BENCHMARKING: $150 - $300/DAY
EMISSION STANDARDS: $300 - $1,000/DAY
ACCURATE REPORTING: $1,000 - $5,000

EXEMPTIONS FROM BERDO BENCHMARKING

Owners with extenuating circumstances may file a request with the Environment Department to report information required by Section 7-2.2 on a basis other than the building

THIRD PARTY VERIFICATION REQUIREMENT

As a part of Boston's Building Emissions Reduction and Disclosure Ordinance, you must hire a third-party qualified energy professional to verify your reported data. Third-party verification is required for the first year of reporting and every "Verification Year" thereafter. Verification Years include: 

  • 2022
  • 2026
  • 2031
  • 2036
  • 2041
  • 2046
  • 2051

BERDO BENCHMARKING PROGRAM ENFORCEMENT

  • $300/day for Residential and Non-Residential Buildings +35 units or > 35,000 sq ft. 
  • $150/day for Non-Residential Buildings > 20,000 sq ft but < 35,000 sq ft or 15+ units but less than 35 units. 

PHASE II BUILDING PERFORMANCE STANDARDS 

In addition to the reporting requirement, every five years, buildings must show they have taken action to reduce their energy use or emissions by 15 percent or conducted a detailed assessment of options to reduce their energy use. In 2019, the first cohort of buildings that began reporting to BERDO are now completing the energy action and assessment requirement.  

Buildings can decrease their emissions by 1) reducing energy use and transitioning away from fossil fuels, 2) using or buying renewable energy, or 3) investing in environmental justice communities through Alternative Compliance Payments. 

OPTION 1: Reduce Energy Use in Building

The most impactful approach you can take is to reduce your building’s overall direct emissions through building retrofits or improvements. This includes: • Upgrading to high efficiency electric appliances • Replacing fossil fuels with electricity for heating and cooling systems • Improving insulation • Tightening window seals • Adding energy-efficient lighting such as LED bulbs. 

OPTION 2: Obtain Renewable Energy

Reduce your building emissions from electricity with eligible renewable energy. Renewable energy can only be used to reduce emissions from electricity. Boston Community Choice Electricity (BCCE) Sign up for the Green 100 plan through the City of Boston’s CCE program to receive 100% renewable electricity. Commercial and industrial accounts cannot exceed 1.5 million kWh/yr to be eligible. Solar Energy Solar generated on-site or anywhere in Boston can be used for compliance. If you are buying solar energy, or related energy credits, from a project outside of Boston, please reach out to the BERDO team to confirm its eligibility. Renewable Energy Certificates (RECs) MA Class I RECs certify that the electricity was created using non-emitting renewable energy generated in New England. Power Purchase Agreements (PPA) A PPA is a long term contract to buy renewable energy. BERDO has specific requirements for PPAs. 

OPTION 3: Invest in Your Communities' Decarbonization

You can comply with emissions standards and mitigate your emissions from fossil fuel and electricity use by making an Alternative Compliance Payment (ACP). ACPs go into the new Equitable Emissions Investment Fund, which will fund future decarbonization projects in Boston’s environmental justice communities. ACPs are payments of $234 for every metric ton of CO2e a building is above its emissions limit. ACPs can be made annually to keep your building in compliance. Please note, ACPs are not the same as fines. An ACP is considered a compliance mechanism under BERDO. 

EMISSIONS STANDARDS COMPLIANCE SCHEDULE

Click here to get the full list of compliance dates.

ENERGY USE EXEMPT FROM EMISSIONS REQUIREMENTS

  • In the event that Emergency Backup Generation/Backup Power or EVSE serve, or have the potential to serve, multiple Buildings in a Building 11 Portfolio, the Energy use from such activities shall be allocated for individual Buildings in proportion to the square footage of each Building.
  • Emergency Backup Generation/Backup Power provides Energy only to the Building or Building Portfolio. 
  • Electrical Vehicle Supply Equipment is separately metered or EVSE is capable of tracking and reporting accurate energy usage, and EVSE meets specifications as defined by the Regulations.
  • Building Owners annually report (i) Energy used by Emergency Backup Generation / Backup Power and Electrical Vehicle Supply Equipment; (ii) the date(s), hour(s) and conditions that required the use of Emergency Backup Generation/Backup Power; and (iii) any other information required by the Regulations. Such reporting shall be subject to the self-certification and third-party verification procedures in section (h).

HARDSHIP COMPLIANCE PLAN

Alternative emissions reduction targets and/or timelines for a Building or Building Portfolio. A Building Owner may apply to the Review Board for a Hardship Compliance Plan if there are Building characteristics or circumstances that present a hardship in complying with the Emissions standards in this Ordinance. Such characteristics or circumstances, to be detailed in the Regulations, may include historic Building designations, affordable housing refinancing timelines, pre-existing long-term Energy contracts without reopeners, or financial hardship.

PENALTIES FOR EMISSION STANDARDS

$1000/day for Residential and Non-Residential Buildings +35 units or > 35,000 sq. ft.

$300/day for Residential and Non-Residential Buildings > 20,000 sq ft but < 35,000 sq. ft. or 15+ units but less than 35 units. 

GREEN ECONOME PHASE II 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 Third Party Verification (if we have not already benchmarked for those buildings).
    3. Provide Phase II proposals for applicable services.
    4. Upon signed agreement, fulfill Phase II services, submit compliance requirements to the City, and provide reports to the building owner/representative.

Green Econome’s CEO, Marika Erdely, sat down with CREtech Climate Podcast host, Michael Beckerman, to share insights on:

  • Steering the Commercial Real Estate industry to reduce the carbon emissions of existing buildings.
  • Challenges and solutions to sourcing funding for climate change investments.

The CREtech Climate Cast is a podcast series devoted to educating, inspiring, and leading the built environment to address the world’s biggest crisis - climate change. Tune in to in-depth conversations with the leading real estate and tech innovators from across the globe with CREtech Climate CEO, Michael Beckerman.

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.