Building Performance Standards are Changing the Energy Reporting Landscape

­Decarbonization, Zero Waste, and Net Zero carbon emissions: they’re increasingly common goals for organizations, building owners, and facility managers. The first step toward achieving these goals, of course, is to measure building emissions to create a baseline. This measurement allows building owners and operators to assess the effectiveness of their sustainability and energy efficiency initiatives and demonstrate progress toward climate commitments.

Building Energy Performance Standards (BEPS) are outcome-based policies and laws aimed at reducing the carbon impact of the built environment by requiring existing buildings to meet energy and / or greenhouse gas (GHG) emissions-based performance targets. Energy codes such as ASHRAE 90.1 and IECC regulate new construction and major renovations, while BEPS encompasses policy tools for retrofitting existing buildings.

State and local deadlines for BEPS are approaching quickly

Deadlines are quickly approaching for buildings in localities that have adopted BEPS policies, and non-compliance comes at a steep price. The map at right, from EnergyCodes.gov, outlines the current adoption status for BEPS policies across the U.S. In summary:

·       New York City: 2024 marked the first major compliance year under Local Law 97, buildings larger than 25,000 square feet must now meet strict emissions limits that began in 2024, with penalties of $268 per ton of CO₂e over the limit annually.

·       Boston: The Building Emissions Reduction and Disclosure Ordinance (BERDO 2.0) requires buildings over 20,000 square feet to reduce emissions incrementally, with fines amounting to $474,500 annually.

·       Denver: Buildings larger than 25,000 square feet must achieve energy use intensity (EUI) targets by 2026, with additional improvements by 2030; targets are established on building type and usage.

·       St. Louis: The city’s BEPS policy sets energy usage requirements for buildings over 50,000 square feet, with compliance deadlines beginning in 2025.

·       Seattle: The new BEPS framework, set for implementation in 2026, will penalize non-compliant buildings at $10 per square foot annually.

·       California: Senate Bill 48 mandates statewide BEPS for buildings over 50,000 square feet, with regulations finalized by 2026.

·       Colorado: The largest buildings in the state must reduce GHG emissions by 7% by 2026 and 20% by 2030.

Ultimately, by 2026, at least 40 U.S. cities will have BEPS in place, and additional local and state level policies may continue to emerge as adoption ripples through the U.S. It’s also worth noting that many of these decarbonization and efficiency mandates have been enacted at the local level; as long as these entities remain committed to these initiatives, building owners and operators will continue to be responsible for meeting BEPS and environmental, social, and governance (ESG) requirements.

The first step toward compliance: benchmarking energy use

The first step toward compliance is to benchmark your building's energy use. Benchmarking involves measuring the building's energy consumption and then comparing that data to other properties of similar size and usage. This practice can reveal how efficiently the building operates while providing the insight building owners need to make informed decisions about energy efficiency initiatives, overcome performance gaps, and adjust compliance strategies. With a baseline, tracking progress and validating improvements toward emissions and efficiency targets is possible.

But the importance of benchmarking goes beyond a simple compliance exercise. Without accurate data, building owners may overlook opportunities to improve energy efficiency. Benchmarking and reporting can also unlock financing options to fund retrofit and upgrade projects.

Energy Star Portfolio Manager is the industry standard for benchmarking in both the U.S. and Canada; it’s the foundation for compliance in many BEPS policies, and for good reason. Attempting to manually compile, track, and report on building energy data can be cumbersome and prone to error. This is where leveraging an established software platform to manage energy performance data can support building owners. Solutions like Building X® Energy Manager and Sustainability Manager from Siemens streamline the benchmarking and reporting process by automating data collection, integrating Energy Star data, and delivering real-time analytics that help owners take action to stay ahead of compliance deadlines.

Achieving decarbonization in existing buildings: partners in success

Although navigating decarbonization, Zero Waste, Net Zero, and BEPS policy initiatives can feel daunting, building owners aren’t alone. The right technologies can combine with the right expertise to transform compliance from a regulatory burden to real-world opportunities to enhance efficiency, reduce costs, and future-proof your buildings.

Benchmarking is the first step in a proactive, comprehensive approach to staying ahead of performance targets. Now is the time for action – to explore solutions that make compliance easier, not harder. Working with experts who understand the evolving regulatory landscape and technologies that let you manage and act on energy data creates a partnership for success.

You can learn more about Building X Energy Manager here.