Tag: ENERGY STAR Benchmarking

Events

January 10, 2024 CREW Connections Lunch & Learn

January 4, 2024

CREW Orange County and Green Econome present Connections 2024 Outlook Lunch and Learn

Please join us on Wednesday, January 10, 2024, for lunch, learning, and networking at Tangram Interiors' beautiful space in Newport Beach. Green Econome CEO, Marika Erdely will be discussing:

  • What you need to know about energy and water disclosure laws for existing buildings.
  • Critical insight into ESG and its impact on commercial real estate.
  • Available utility incentives and tax benefits of the Inflation Reduction Act for new development, renovations, and efficiency upgrades.

Space is limited. Registration is required and closes on January 9, 2024 at noon. We hope to see you there!

CREW Connections 2024 Outlook Lunch and Learn

Wednesday, January 10th
12:00 pm - 1:00 pm

Tangram Interiors
1375 Dove Street, Suite 300
Newport Beach, CA 92660

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Chula Vista Benchmarking Ordinance
Energy Policy

Chula Vista Building Energy Saving Ordinance

December 1, 2023
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.

LEARN MORE

MULTIFAMILY

PRESCRIPTIVE MEASURES

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

LEARN MORE

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.

CONTACT US

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.

CONTACT US
San Deigo Benchmarking
Energy Policy

San Diego Building Energy Benchmarking Ordinance

November 1, 2023
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.

CONTACT US
5 Reasons for Clean Energy Action image
News

5 Reasons for Clean Energy Action Now

October 4, 2023

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.

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Green Econome Earns 2023 ENERGY STAR Partner of the Year Award
News Recognition

Green Econome Earns 2023 ENERGY STAR® Partner of the Year Award

March 28, 2023

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
[email protected]

San Jose CA Building Performance Ordinance
Energy Policy

San José Building Performance Ordinance

February 16, 2023
TABLE OF CONTENTS
DOWNLOAD SAN JOSÉ BPO BROCHURE
EXEMPTIONS FROM BENCHMARKING
PHASE II BUILDING PERFORMANCE STANDARDS
BEYOND BENCHMARKING COMPLIANCE SCHEDULE
PERFORMANCE PATHWAY DETAIL
IMPROVEMENT PATHWAY DETAIL
GREEN ECONOME PHASE II PROCESS
GET STARTED
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.

LEARN MORE

OPTION 2

IMPROVEMENT PATHWAY

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

LEARN MORE

BEYOND BENCHMARKING COMPLIANCE SCHEDULE

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

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

BEYOND BENCHMARKING EXEMPTIONS

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

  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.

CONTACT US

RELEVANT SERVICES

ENERGY STAR®
BENCHMARKING

Accurate benchmarking and ESG reporting establishes a building performance baseline for compliance

LEARN MORE

ENERGY & WATER AUDITS

On-site building audits uncover opportunities for operational efficiencies which improve property performance

LEARN MORE

BUILDING CERTIFICATIONS

Achieve ESG goals and attract sustainable investment with green building certifications

LEARN MORE

Benchmarking Building Performance Standards News

LA EBEWE Program Deadlines Reinstated

February 7, 2023

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!
CONTACT US
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.

CONTACT US
NYC skyline
Energy Policy

New York City Sustainable Building Laws

January 1, 2023
TABLE OF CONTENTS
LOCAL LAW 84/133: BENCHMARKING
LOCAL LAW 33/95: BUILDING EFFICIENCY RATINGS
LOCAL LAW 87: AUDITS & RETRO-COMMISSIONING
LOCAL LAW 97: GHG EMISSION LIMITS
GET STARTED
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 CO2 equivalent 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.

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RELEVANT SERVICES

ENERGY STAR®
BENCHMARKING

Accurate benchmarking and ESG reporting establishes a building performance baseline for compliance

LEARN MORE

ENERGY & WATER AUDITS

On-site building audits uncover opportunities for operational efficiencies which improve property performance

LEARN MORE

BUILDING CERTIFICATIONS

Achieve ESG goals and attract sustainable investment with green building certifications

LEARN MORE

Prioritizing ESG in Commerical Real Estate
Decarbonization Insights

Prioritizing ESG In Commercial Real Estate

November 22, 2022

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.

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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 [email protected]. 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
[email protected]
(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.

Energy Policy

New Jersey Clean Energy Act Benchmarking Program

November 15, 2022
TABLE OF CONTENTS
DOWNLOAD NJ CEA BENCHMARKING BROCHURE
EXEMPTIONS FROM BENCHMARKING
ENERGY SAVINGS IMPROVEMENT PLAN
GET STARTED
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.

GET STARTED WITH BENCHMARKING OR AUDITS

ENERGY STAR®
BENCHMARKING

Accurate benchmarking and ESG reporting establishes a building performance baseline for compliance

LEARN MORE

ENERGY & WATER AUDITS

On-site building audits uncover opportunities for operational efficiencies which improve property performance

LEARN MORE

BUILDING CERTIFICATIONS

Achieve ESG goals and attract sustainable investment with green building certifications

LEARN MORE

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