California to End the Sale of Fluorescent Lighting

June 13, 2024 admin

After January 1, 2025, California will have effectively banned the sale and distribution of all fluorescent lamps per CA AB 2208. So, what does this mean for business owners and property managers? Those currently using these lamps must start planning to transition to alternative lighting solutions. Although this may require some planning and investment, upgrading to LED lighting is safer and more efficient, contributing to huge operational savings.

Why is CA Banning Fluorescents?

One of the biggest concerns with fluorescent lighting is safety; these lamps contain mercury, a toxic heavy metal that poses significant environmental and health risks. When disposed of in landfills, the mercury contaminates ecosystems through leaching into the soil and water. In addition to these environmental and public health threats, fluorescents are also incredibly inefficient compared to LEDs. They produce more heat bringing operational costs up across all systems and have a shorter life cycle.

Upgrading to LED lighting will save business owners money while protecting Californians’ health and safety.

Here is Your Lighting Retrofit Action Plan

Ban Date
- January 1, 2025 (screw and bayonet base CFLs banned starting 1/1/24)
Next Steps for Business Owners
- Assess Inventory: How many lamps do you have in stock? This will help you plan and prioritize when to implement an LED lighting retrofit.
- Budget for Retrofit: While equipment may be compatible, it is best to scope out the project needs to ensure safety and compatibility. Long-term cost savings of proper LED lighting retrofits are higher than the short-term gain of simply replacing bulbs. Not to mention, safer for the occupant.
- Properly Dispose of Fluorescents: Become familiar with your local regulations, procedures, and disposal facilities to ensure lamps can be removed, recycled, and disposed of properly. The EPA provides helpful information and resources for commercial use.
Retrofit Priorities
- Decide project goals and budget.
- Assess and identify lamp counts, high-burn areas (parking garages, stairwells, etc.), and other inefficiencies to address.
- Explore your options and determine the best equipment and products for each area.
- Take advantage of utility incentives and rebates, while they are available.
- Measure and verify your energy and cost savings through bill analysis and/or benchmarking the building.

Green Econome Specializes in LED Lighting Retrofits... We Can Help You Transition!

Hiring a professional service provider often leads to the best results. Leverage their knowledge and access to contractors/distributors. Get ahead of the ban and take advantage of current incentives for energy efficiency upgrades. Business owners will save money and help keep their community safe by switching to LED lighting! In addition to upgrading the building’s lighting, Green Econome delivers a pre/post-install analysis to track savings. While we have implemented a variety of LED retrofits including, office, residential, and sport lighting, One of our biggest retrofit projects was conducted for a global aerospace company and ultimately resulted in a 25% cost reduction. This retrofit included lighting, HVAC, and thermostat systems. Green Econome is here to help you start saving now!

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Decarbonization Insights

ESG Explained: How the SEC is Influencing Commercial Real Estate

May 14, 2024 Marika Erdely

Here at Green Econome, we've been at the forefront of ESG (Environmental, Social, Governance) reporting, eagerly anticipating the U.S. Securities and Exchange Commission (SEC) ruling on mandatory disclosures for public companies. Fundamentally, ESG is a way of doing business. Green Econome lives in the world of the “E”, the “Environmental” with our ENERGY STAR® benchmarking and energy and water efficiency services. While we recognize that the “S” and the “G” are equally important for businesses to report on, we are going to focus on the “E” and how that relates to the SEC’s new ruling. Let’s get into it.

Unpacking the SEC Climate-Related Disclosures

What are public companies required to report and how does that intersect with commercial real estate? On March 6, 2024, the SEC passed legislation requiring public companies to measure their Scope 1 and 2 emissions as part of their annual reporting and include how climate risk will affect their businesses in the near future. This ruling is meant to enhance and standardize climate-related disclosures. The SEC also included a materiality clause to help guide businesses as to what to report. Although, it's important to note that since March, there has been intense business opposition. But let’s get to the bottom line here: what are Scope 1 and Scope 2 emissions and why do we need to report on them?

Defining Scope 1, 2, and 3 Emissions

Basically, Scope 1 is for all direct Greenhouse Gas (GHG) emissions through the combustion of gas in buildings or by the business’ fleet. Scope 2 is indirect emissions for the electricity the business is consuming from the grid. Both emissions are part of the collection of data standard to ENERGY STAR benchmarking. Scope 3, although significant, was not included in the SEC’s ruling.

The ‘E’ in ESG is where Green Econome thrives

We are here to ENERGY STAR Benchmark your portfolio to meet your “E” goals and reduce the operating costs of your building. As a woman-owned, full-service energy and water efficiency construction and consulting company, we have over 20 years of combined experience. We provide accurate benchmarking services and insights to recommend solutions and incentives that will increase the NOI and market value of your property. Let us help you better understand and accomplish your property's ESG goals to reduce emissions and meet science-based targets (SBTi).

Contact Founder and CEO Marika Erdely
Mobile: 818-681-5750
Email: [email protected]

DOWNLOAD OUR ESG SERVICES BROCHURE

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Picture of construction workers for 179D-IRA

Financing Insights

Increase Cash Flow with Section 179D of the Inflation Reduction Act

May 12, 2024 Marika Erdely

Who knew when I started Green Econome in 2009 that my previous 30 years in accounting and finance would help building owners understand the opportunities provided by tax benefits in the Inflation Reduction Act (IRA), signed into law by President Biden in late 2022?

This significant package is heavily focused on how commercial real estate owners can invest in their properties to reduce operating costs and emissions by taking advantage of tax deductions and credits. Providing cash flow to owners, some of these benefits can be transferred to others, and non-profits can receive cash tax payments to help pay for these projects.

Let’s break down one of my favorites: Section 179D

This is a tax deduction. For those still learning about financing, a tax deduction is a reduction to the property’s income before tax liabilities are calculated. So, any of these deductions should be considered against the owner’s tax rate.

Section 179D has been around for many years and there is an opportunity to take the original deduction for 2020, 2021, and 2022. The new version, I call “IRA Section 179D” is effective with projects going into service after 1/1/2023.

When I started to research this deduction to help our clients increase their cash flow for these projects, it wasn’t clear that there were two specific periods to be considered for this deduction. The initial period is effective from 1/1/2023 – 12/31/2026. Beginning 1/1/2027, we have a new version (which is not as beneficial).

How is 179D calculated for your new construction or large retrofit project?

It all starts with an energy model. What is this? Well, it is a virtual design of your building. For the initial period, the energy model is a design of the property with the mechanical standards established by ASHRAE 90.1 2007. Note 2007! If you have a building that you are retrofitting in California to Title 24 2022, you are already way more efficient. LEED certification requires buildings to meet ASHRAE 90.1 2010 standards, so again, 2007 is much less efficient.

Next, the energy model is designed to the current material and efficiency standards the building is being built to or retrofit. The driver for this deduction is the “efficiency gain,” which is the difference between the energy used at the ASHRAE 901. 2007 standard vs. the current building code standard. For those projects requiring prevailing rates, the deduction is 5 times higher, which means it can be very significant.

The calculation is the sq. footage of the property multiplied by the corresponding rate based on the efficiency gain. This value is then multiplied by the owner’s tax rate... and there you have it: the anticipated tax deduction! The larger the property, the higher the deduction, but I believe smaller buildings may benefit based on the level of improvements planned.

Efficiency projects built together, pay together

When claiming the 179D tax deduction, it is most beneficial to have completed all the projects together in the same year. Going a step further, there is a tax "sweet spot", where a project can receive the prevailing wage rates adjusted for inflation when a construction or retrofit project started before 1/1/2023, was worked on continuously, and completed after 1/1/2023. We are seeing $5.66 x the square footage on these projects, which makes them very valuable!

Green Econome is a woman-owned, full-service energy and water efficiency project construction and consulting company with over 20 years of combined experience. We can help explain these complex tax benefits and match you with a 179D specialist. Furthermore, we can recommend solutions that will increase the NOI of your property and increase market value. Get the ball rolling and reach out to Green Econome’s founder and CEO, Marika Erdely.

EMAIL MARIKA

DOWNLOAD SECTION 179D INFO SHEET

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Decarbonization Financing Insights

Solar & Battery Storage Benefits of the Inflation Reduction Act

May 11, 2024 Marika Erdely

I love a good federal tax credit since it is a reduction of the tax liability of the owner. Essentially, this is pure cash flow to the owner of the property. What could be better? I have two favorites improved by the Inflation Reduction Act (IRA): the Federal Solar Investment Tax Credits (ITC) for Solar and Battery Storage, and a new 45L for residential construction and major renovations.

Federal Investment Tax Credits (ITC) for Solar and Battery Storage

While there is a suite of tax credits under the ITC for residential, businesses, and manufacturers, Let’s focus on the ITC for businesses. The investment tax credit (ITC) is a federal tax credit that reduces the federal income tax liability for a percentage of the cost of a solar or storage system that is installed during the tax year. Before the passage of the Inflation Reduction Act, this incentive was 26%, but with the help of the IRA, it is back up to 30% of the project cost until 2033. (U.S. Department of Energy).

There are two bonus tax credits at 10% a pop if they are attainable.

Energy Community Bonus: An energy community is an area identified as a brownfield site and/or locations experiencing high unemployment and fossil fuel investment. Looking at the DOE Energy Community map, most of Los Angeles County is currently designated as an energy community. Unfortunately, this is a temporary map and we in the industry aren’t exactly sure when the map is to be reset and areas may drop off.
Domestic Content Bonus: This bonus requires a percentage (starting at 40%) of project materials (by cost) to be produced in the U.S. It is difficult to attain the second additional 10% solar tax credit. I’m told businesses are hard at work on this, making domestic materials readily available. Hooray for U.S. manufacturing!

These projects also benefit from Federal MACRS Bonus Depreciation and State Depreciation (which is, again, a tax deduction—reducing the income of the property for tax purposes).

By the Numbers: Cash Flow for Solar and Battery Storage Projects

Let’s examine some examples of tax savings when installing a solar PV system or an energy storage system. Many people aren’t aware of just how much these tax incentives can help to cover the cost of the project. The numbers speak for themselves.

Energy Storage System (90kW/220kWh)

Gross System Cost	$ 318,244.00
IRA ITC (30% + 10% Energy Community)	$ (127,298.00)	-40%
SCE SGIP Rebate Program to Owner	$ (55,750.00)	-18%
Federal MACRS Bonus Depreciation	$ (53,465.00)	-17%
State (CA) MACRS Depreciation	$ (31,824.00)	-10%
Net Project Cost to Owner	$ 49,907.00	-84%
Estimated Electricity Savings (Year 1)	$ 20,939.00
Estimated Total Net Savings (15 Years)	$ 260,574.00
Payback Period	3.1 Years

Solar PV System (29.4 kW-DC)

Gross System Cost	$ 110,344.00
IRA ITC (30% + 10% Energy Community)	$ (44,137.00)	-40%
Federal MACRS Bonus Depreciation	$ (27,807.00)	-25%
State (CA) MACRS Depreciation	$ (8,828.00)	-8%
Net Project Cost to Owner	$ 29,572.00	-73%
Estimated Annual Electricity Savings (Year 1)	$ 9,700.00
Estimated Total Net Savings (25 Years)	$ 419,117.00
Payback Period	3.8 Years

Tax Benefits Can Cover Over 80% of the Project Cost

The tables above illustrate how HUGE these tax incentives are. In just over 3 years, the entire cost of the energy storage system will have paid itself back. The battery can offset peak kW demand costs in high Time-of-Use (TOU) rates. Looking at the numbers, these energy efficiency projects are a no-brainer.

Green Econome Project Consulting, Construction & Incentive Management Services Have You Covered

Green Econome is here to guide you through the decision-making process and provide you with maximum energy and tax savings! We are a woman-owned, full-service energy and water efficiency construction and consulting company with over 20 years of combined experience. If you have a building for which you are considering solar and battery storage and would like a no-obligation quote, please contact CEO, Marika Erdely.

EMAIL MARIKA

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Decarbonization Financing Insights

More Savings with the 45L Tax Credit for Residential Construction

May 10, 2024 Marika Erdely

What is the 45L Tax Credit?

The Inflation Reduction Act amended Section 45L, a tax credit to incentivize the new development or major renovation of energy-efficient residential properties for lease or sale. The new Section 45L provisions include two tiers of credits for eligible buildings and units certified to applicable ENERGY STAR® residential and U.S. Department of Energy Zero Energy Ready Home (ZERH) program requirements. The updated Section 45L is extended to qualified residential properties acquired from January 1, 2023, through December 31, 2032. The tax credit's value per dwelling unit varies, reaching a maximum of $5,000, based on factors including the home type, number of stories, and compliance with energy efficiency requirements.

This residential construction tax credit is fantastic if you are already constructing or retrofitting at high efficiency and want to recognize your residential project as ENERGY STAR® or ZERH certified right off the bat.

Qualifying for the Section 45L Tax Credit

Here are the basic eligibility requirements for homes acquired and/or completed after December 31, 2022, and located in the U.S., wanting to claim Section 45L (as found on the Department of Energy and IRS websites). It is important to note that there are differences in terms for single-family vs. multi-family homes. Please contact Green Econome for detailed information. This is a basic outline:

Single Family Homes

Certified under the applicable ENERGY STAR Single-Family New Homes (National} Program Requirements.
Certified under the most recent ENERGY STAR Single-Family New Homes Program Requirements applicable to the location of such dwelling unit (as in effect on the latter of January 1, 2023, or January 1 of two calendar years prior to the date the dwelling unit was acquired), or
Certified under the most recent ENERGY STAR Manufactured Home National program requirements as in effect on the latter of January 1, 2023, or January 1 of two calendar years prior to the date such dwelling unit is acquired.

Multi-Family Homes

Certified under the most recent ENERGY STAR Multifamily New Construction National Program Requirements (as in effect on either January 1, 2023, or January 1 of three calendar years prior to the date the dwelling was acquired, whichever is later), and
Certified under the most recent ENERGY STAR Multifamily New Construction Regional Program Requirements applicable to its location. (as in effect on either January 1, 2023, or January 1 of three calendar years prior to the date the dwelling was acquired, whichever is later).

All Eligible Dwelling Units

Must be certified as a zero-energy ready home under the Zero Energy Ready Home (ZERH) program of the Department of Energy as in effect on January 1, 2023 (or any successor program determined by the Secretary).

What are the Additional Benefits to the 45L Amended by the Inflation Reduction Act?

Increased credits: for homes acquired between 2023-2032.
Prevailing wage kicker: tax credit is higher for multifamily projects that meet the prevailing wage requirements.
Double the savings! 45L tax credit can also be utilized with the IRA’s Section 179D for buildings over 4 stories.

Green Econome Helps Maximize Savings on your Multifamily Projects

While Green Econome is not a tax professional, we work with vetted partners and offer incentive and financing management, as well as project construction and building certifications for multifamily properties. We are a woman-owned, full-service energy and water efficiency construction and consulting company, with over 20 years of combined experience. Tax credits can be complicated, don’t miss out on crucial savings and upgrading your building’s energy efficiency! Contact our founder and CEO Marika Erdely for a consultation.

EMAIL MARIKA

DOWNLOAD SECTION 45L INFO SHEET

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Energy Policy

California Assembly Bill 802

February 16, 2024 admin

DOWNLOAD AB 802 BROCHURE

EXEMPTIONS FROM BENCHMARKING

WHAT IS BENCHMARKING?

GET STARTED

COMPLIANCE GUIDE

WHAT IS THE CALIFORNIA ASSEMBLY BILL 802?

Commercial buildings with more than 50,000 sq. ft. and no residential utility accounts, and multifamily residential buildings with more than 50,000 sq. ft. and 17 or more utility accounts must submit whole-building energy benchmarking reports annually.

AB 802 PROGRAM HIGHLIGHTS

Policy

CLEAN ENERGY AND POLLUTION REDUCTION ACT SB 350

Bill Text

CA ASSEMBLY BILL 802

Enforcing Agency

CALIFORNIA ENERGY COMMISSION (CEC)

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

N/A

Due Date

JUNE 1, ANNUALLY

Fees

N/A

DOWNLOAD AB 802 BROCHURE

EXEMPTIONS FROM BENCHMARKING

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

PROGRAM ENFORCEMENT

Public Resource Code #25321 states:¨If after five working days, the owner does not comply, the owner will be subject to a civil penalty (after a hearing that complies with constitutional requirements. Civil Penalty will not be less than $500 nor more than $2,000 for each category of data for each day the violation existed and continues to exist.”

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.

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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Energy Policy

Los Angeles Existing Buildings Energy and Water Efficiency Program

February 1, 2024 admin

DOWNLOAD LOS ANGELES EBEWE BROCHURE

EXEMPTIONS FROM BENCHMARKING

PHASE II BUILDING PERFORMANCE STANDARDS

LA EBEWE PHASE II A/RCx COMPLIANCE SCHEDULE

PERFORMANCE PATHWAY DETAIL

PRESCRIPTIVE PATHWAY DETAIL

GREEN ECONOME PHASE II PROCESS

GET STARTED

COMPLIANCE GUIDE

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

The City of Los Angeles Existing Buildings Energy and Water Efficiency Program (EBEWE), is a two-part local ordinance. Phase I benchmarking requires commercial buildings with more than 20,000 sq. ft. and no residential utility accounts, and multifamily residential buildings with more than 20,000 sq. ft. and 17 or more utility accounts to submit whole-building energy and water benchmarking reports annually. Phase II Audit/Retro-commissioning (A/RCx) requirements are due every five years and compliance is based on the benchmarking results and performance of the building.

DOWNLOAD THE LA EBEWE BROCHURE

LA EBEWE PROGRAM HIGHLIGHTS

Policy

LOS ANGELES' GREEN NEW DEAL

Bill Text

DIVISION 97 TO THE LOS ANGELES MUNICIPAL CODE (LAMC)

Enforcing Agency

LOS ANGELES DEPT. OF BUILDING AND SAFETY (LADBS)

Size of Property

20,000 SQ. FT. AND ABOVE

Property Type

COMMERCIAL, INDUSTRIAL, MULTIFAMILY BUILDINGS

Required Information

12 MONTHS ENERGY, WATER AND BUILDING USE DATA

Phase II Building Performance
Standards

AUDITS & RETRO-COMMISSIONING (A/RCx) REQUIREMENT

Due Date

BENCHMARKING: JUNE 1, ANNUALLY

A/RCx REQUIREMENT: EVERY 5 YEARS

Fees

$66.41 ANNUAL BENCHMARKING REGISTRATION FEE

$199.22 5-YEAR A/RCx REGISTRATION FEE

EXEMPTIONS FROM BENCHMARKING

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

Compliance List: LA City Public Disclosure Dashboard

PROGRAM ENFORCEMENT

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

PHASE II BUILDING PERFORMANCE STANDARDS

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

OPTION 1

PERFORMANCE PATHWAY

Meet Energy and/or Water Exemptions based on program-defined efficiency standards.

LEARN MORE

OPTION 2

PRESCRIPTIVE PATHWAY

Perform an ASHRAE Level II Energy and/or Water Audit and Retro-Commissioning (A/RCx) Report.

LEARN MORE

LA EBEWE PHASE II A/RCx COMPLIANCE SCHEDULE

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

* Bold text (0-3) reflects the reissued due date from tolled deadlines.
* Green Econome can provide historic benchmarking and Phase II reporting, to bring any past-due EBEWE compliance up to date.

OPTION 1: PERFORMANCE PATHWAY DETAIL

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

ENERGY EXEMPTIONS

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

ENERGY STAR Certification for the building’s compliance year (CY). Requires ENERGY STAR score greater than 75.
ENERGY STAR Certification for two of the three years preceding the building’s compliance year. Requires ENERGY STAR score greater than 75.
For property types not eligible to receive an ENERGY STAR score, the building must perform 25% better than the national median of similar building types.
The building has reduced its Source Energy Use Intensity (EUI) by 15% when compared to the five years before a building’s compliance due date.
A building that does not have a central cooling system or has a cooling system having an aggregate input capacity of less than 100 refrigeration tons (1,200,000 Btu/h) and has completed four of six prescribed measures within the five-year Phase II compliance cycle, in accordance with Title 24, and permitted when required.
The building is new and has been occupied for less than five years based on the Temporary or Final Certificate of Occupancy.
The tenant pays the energy and water bills as specified in Section 91.9704.

WATER EXEMPTIONS

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

The building has reduced its Water Use Intensity by at least 20% when compared to the five years prior to the building’s compliance due date.
A building with no central cooling system or a cooling system that does not operate by the consumption of water as part of the cooling process and has installed two of the three prescribed measures within the five-year Phase II compliance cycle, in accordance with Title 24, and permitted when required.
The building’s water use conforms to the LA Municipal and Title 24 Code in effect at any time during the five-year compliance cycle.
The building is new and has been occupied for less than five years based on the Temporary or Final Certificate of Occupancy.
The tenant pays the energy and water bills as specified in Section 91.9704.

OPTION 2: PRESCRIPTIVE PATHWAY DETAIL

ASHRAE LEVEL II AUDIT (A)

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

RETRO-COMMISSIONING REPORT (RCx)

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

GREEN ECONOME PHASE II (A/RCx) PROCESS

1. Evaluate the Phase I benchmarking report(s) for the building's 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.

Meeting exemptions can save up to 65% off the cost of a full ASHRAE Level II Audit/RCx Report. If you need benchmarking performed or an evaluation of your existing benchmarking report, please contact us right away. Our company has been working with Los Angeles EBEWE compliance since the beginning.

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

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Energy Policy

Chula Vista Building Energy Saving Ordinance

December 1, 2023 admin

COMPLIANCE GUIDE

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

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

DOWNLOAD CHULA VISTA BESO BROCHURE

BESO PROGRAM HIGHLIGHTS

Policy

CITY OF CHULA VISTA CLIMATE ACTION PLAN

Bill Text

CHULA VISTA BUILDING ENERGY SAVING ORDINANCE

Enforcing Agency

CITY OF CHULA VISTA

Size of Property

20,000 SQ. FT. AND ABOVE

Property Type

COMMERCIAL, INDUSTRIAL, MULTIFAMILY BUILDINGS

Required Information

12 MONTHS ENERGY AND BUILDING USE DATA

Phase II Building Performance
Standards Compliance

YES

Fees

N/A

BESO ORDINANCE DEADLINES

PHASE I – BENCHMARKING DISCLOSURE

May 20 - Annually

PHASE II – BUILDING PERFORMANCE STANDARDS

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

EXEMPTIONS FROM BENCHMARKING

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

PROGRAM ENFORCEMENT

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

PHASE II BUILDING PERFORMANCE STANDARDS REQUIREMENTS

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

COMMERCIAL

CONSERVATION REQUIREMENTS

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

LEARN MORE

MULTIFAMILY

PRESCRIPTIVE MEASURES

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

LEARN MORE

COMMERCIAL PROPERTIES: CONSERVATION REQUIREMENT DETAIL

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

EXEMPTIONS

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

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

CONSERVATION REQUIREMENT DETAIL

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

EVERY FIVE (5) YEARS

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

EVERY TEN (10) YEARS

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

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

MULTIFAMILY PROPERTIES: CONSERVATION REQUIREMENT DETAIL

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

EXEMPTIONS

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

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

PRESCRIPTIVE MEASURES DETAIL

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

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

* Chula Vista Climate Zone Map

PRESCRIPTIVE MEASURE LIST SAMPLE

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

GREEN ECONOME PHASE II (A/RCx) PROCESS

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

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

Energy Policy

San Diego Building Energy Benchmarking Ordinance

November 1, 2023 admin

COMPLIANCE GUIDE

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

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

DOWNLOAD SAN DIEGO BEBO BROCHURE

BEBO PROGRAM HIGHLIGHTS

Policy

CITY OF SAN DIEGO CLIMATE ACTION PLAN

Bill Text

SAN DIEGO BUILDING ENERGY BENCHMARKING ORDINANCE

Enforcing Agency

CITY OF SAN DIEGO

Due Date

JUNE 1, ANNUALLY

Size of Property

50,000 SQ. FT. AND ABOVE

Property Type

COMMERCIAL, INDUSTRIAL, MULTIFAMILY BUILDINGS

Required Information

12 MONTHS ENERGY AND BUILDING USE DATA

Phase II Building Performance
Standards Compliance

NO

Fees

N/A

PROGRAM ENFORCEMENT

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

EXEMPTIONS FROM BENCHMARKING

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

WHAT IS BENCHMARKING?

WHY EXISTING BUILDINGS?

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

The owner of the building is the responsible party.
Benchmarking disclosure is required annually.
“Covered or disclosable buildings” are the building types that need to comply.
When you comply with your local benchmarking ordinance, the city shares the data with the state, placing you in AB 802 compliance as well.
Benchmarking provides insight into how efficient or inefficient your building is operating. Efficient buildings provide for lower operating costs and higher market valuations.
The State of California only requires annual energy disclosure; however, some cities also require buildings to become energy efficient or meet building performance standards.

5 TIPS FOR BENCHMARKING COMPLIANCE

Hire Green Econome to complete your energy and water compliance and energy efficiency consulting. We have benchmarked over 2,000 commercial, industrial, and multifamily buildings. We place emphasis on accurately measuring your data, rather than meeting the bare minimum for compliance. It is not only the legal thing to do, but also more economic in the long run. The data in your benchmarking report is valuable to the operation and investment of your property, and the basis of your performance and/or ESG reporting.
Add tenant authorization to your lease to release energy and water use data from the utilities. In some cases where the tenants are the electric/gas/water account holder, they are required to sign a utility authorization to share their usage data. As you can imagine, collecting this is time-consuming and not always successful. In lieu of the authorization, we can submit a copy of the lease if it includes authorization language.
Create an energy efficiency budget. The Better Buildings Financing Navigator outlines common barriers, solutions, and options for energy financing. Energy ordinances are all-for-none if building owners and operators do not invest in reduction goals. Visit our case studies for examples of the cost savings you can achieve through efficiency projects.
Leverage available rebates and incentives. In addition to outside funding and loans, there are robust programs for energy efficiency and clean power through utilities, local and federal government. Green Econome calculates available rebates & incentives savings into our estimates and/or audit reports.
Put your data to work. Use monthly data to track your energy & water use in ENERGY STAR Portfolio Manager. Demonstrating energy and water reductions through the benchmarking tool in some cities is a path to performance compliance or a requirement for ESG strategies that the building owner or tenant company has in place. Either way, you now have a powerful tool that tracks your ongoing use, so take advantage of it. Green Econome includes benchmarking consultations to assess your building’s performance and identify problem areas or opportunities for savings.

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

San Jose CA Building Performance Ordinance

Energy Policy

San José Building Performance Ordinance

February 16, 2023 admin

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

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

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

PROGRAM ENFORCEMENT

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

PHASE II BUILDING PERFORMANCE STANDARDS

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

OPTION 1

PERFORMANCE PATHWAY

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

LEARN MORE

OPTION 2

IMPROVEMENT PATHWAY

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

LEARN MORE

BEYOND BENCHMARKING COMPLIANCE SCHEDULE

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

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

BEYOND BENCHMARKING EXEMPTIONS

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

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

WATER EFFICIENCY EXEMPTION

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

PERFORMANCE PATHWAY DETAIL

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

Be in full compliance with all years of Phase I benchmarking.
Have complete and accurate benchmarking data.
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).

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

COMPLETION

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

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

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

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Here is Your Lighting Retrofit Action Plan

Green Econome Specializes in LED Lighting Retrofits... We Can Help You Transition!

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INCENTIVES & FINANCING

Unpacking the SEC Climate-Related Disclosures

Defining Scope 1, 2, and 3 Emissions

The ‘E’ in ESG is where Green Econome thrives

DOWNLOAD OUR ESG SERVICES BROCHURE

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ENERGY & WATER CONSULTING

Let’s break down one of my favorites: Section 179D

How is 179D calculated for your new construction or large retrofit project?

Efficiency projects built together, pay together

DOWNLOAD SECTION 179D INFO SHEET

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Federal Investment Tax Credits (ITC) for Solar and Battery Storage

By the Numbers: Cash Flow for Solar and Battery Storage Projects

Tax Benefits Can Cover Over 80% of the Project Cost

Green Econome Project Consulting, Construction & Incentive Management Services Have You Covered

RELEVANT SERVICES

INCENTIVES & FINANCING

ENERGY & WATER CONSULTING

RETROFIT & CONSTRUCTION

What is the 45L Tax Credit?

Qualifying for the Section 45L Tax Credit

What are the Additional Benefits to the 45L Amended by the Inflation Reduction Act?

Green Econome Helps Maximize Savings on your Multifamily Projects

DOWNLOAD SECTION 45L INFO SHEET

RELEVANT SERVICES

INCENTIVES & FINANCING

ENERGY & WATER CONSULTING

RETROFIT & CONSTRUCTION

TABLE OF CONTENTS

COMPLIANCE GUIDE

WHAT IS THE CALIFORNIA ASSEMBLY BILL 802?

AB 802 PROGRAM HIGHLIGHTS

50,000 SQ. FT. AND ABOVE

COMMERCIAL, INDUSTRIAL, MULTIFAMILY BUILDINGS

12 MONTHS ENERGY AND BUILDING USE DATA

N/A

JUNE 1, ANNUALLY

N/A

DOWNLOAD AB 802 BROCHURE

EXEMPTIONS FROM BENCHMARKING

PROGRAM ENFORCEMENT

WHAT IS BENCHMARKING

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

RELEVANT SERVICES

ENERGY STAR® BENCHMARKING

ENERGY & WATER AUDITS

BUILDING CERTIFICATIONS

TABLE OF CONTENTS

COMPLIANCE GUIDE

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

DOWNLOAD THE LA EBEWE BROCHURE

LA EBEWE PROGRAM HIGHLIGHTS

20,000 SQ. FT. AND ABOVE

COMMERCIAL, INDUSTRIAL, MULTIFAMILY BUILDINGS

12 MONTHS ENERGY, WATER AND BUILDING USE DATA

AUDITS & RETRO-COMMISSIONING (A/RCx) REQUIREMENT

BENCHMARKING: JUNE 1, ANNUALLY

A/RCx REQUIREMENT: EVERY 5 YEARS

$66.41 ANNUAL BENCHMARKING REGISTRATION FEE

$199.22 5-YEAR A/RCx REGISTRATION FEE

EXEMPTIONS FROM BENCHMARKING

PROGRAM ENFORCEMENT

PHASE II BUILDING PERFORMANCE STANDARDS

OPTION 1

PERFORMANCE PATHWAY

OPTION 2

PRESCRIPTIVE PATHWAY

LA EBEWE PHASE II A/RCx COMPLIANCE SCHEDULE

ENERGY & WATER
AUDITS

ENERGY STAR®
BENCHMARKING

ENERGY & WATER
CONSULTING

ENERGY & WATER
CONSULTING

RETROFIT &
CONSTRUCTION

ENERGY & WATER
CONSULTING

RETROFIT &
CONSTRUCTION

ENERGY & WATER
CONSULTING

RETROFIT &
CONSTRUCTION

ENERGY STAR®
BENCHMARKING

ENERGY STAR®
BENCHMARKING