Energy Benchmarking Laws and Regulations You Should Know in Your State

Tagged as: energy benchmarking laws.

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Introduction

Energy benchmarking is the process of measuring a building's energy usage, comparing it to its past performance, and evaluating it against similar structures. This method is integral to identifying efficiency improvements and reducing energy costs. The importance of energy benchmarking stems from its ability to highlight energy wastage and provide actionable insights into energy conservation. By tracking energy use, buildings can optimize their operations, contribute to environmental sustainability, and achieve significant cost savings.

Understanding Energy Benchmarking Laws and Regulations

Energy benchmarking laws serve as crucial tools for increasing transparency around energy consumption in buildings. The primary goals of these regulations include improving energy efficiency, reducing carbon emissions, and enhancing the overall value of properties. These laws typically require building owners to annually report their energy usage through platforms such as the Energy Star Portfolio Manager, a widely used tool that helps in tracking and analyzing energy and water consumption. By fostering a competitive spirit and a push towards efficiency, these regulations not only help reduce operational costs but also promote a greener building stock.

Federal Energy Benchmarking Laws and Regulations

On the federal level, energy benchmarking regulations are often integrated into broader energy efficiency initiatives aimed at reducing the operational costs and environmental impacts of government buildings. For instance, the Federal Energy Management Program (FEMP) overseen by the U.S. Department of Energy, implements policies and practices that encourage energy efficiency within the federal government's portfolio of buildings and assets. Federal laws often serve as benchmarks for state and local regulations, promoting best practices in energy management across public and private sectors.

State-Specific Energy Benchmarking Laws and Regulations

1. California

California is at the forefront of energy benchmarking legislation with its Assembly Bill 802 (AB 802), which mandates that buildings over 50,000 square feet report their annual energy use. This law has catalyzed significant energy savings and has been instrumental in moving the market towards more sustainable practices. More information on AB 802 can be found on the California Energy Commission's website.

2. New York

In New York, Local Law 84 under the Greener, Greater Buildings Plan requires annual energy benchmarking for buildings larger than 25,000 square feet. This initiative is crucial for New York City’s vision to reduce greenhouse gas emissions and enhance the energy efficiency of its building stock. The details are outlined on New York City's official website.

3. Illinois

Chicago’s Energy Benchmarking Ordinance is part of the city’s broader Sustainable Chicago action plan, which covers buildings over 50,000 square feet. This ordinance not only boosts the city’s energy efficiency but also helps in tracking progress toward its environmental targets. Compliance details and resources can be accessed through the City of Chicago's website.

4. Massachusetts

Massachusetts requires all state-owned buildings and many public facilities to comply with stringent energy benchmarking standards that are part of its Leading by Example program. This state-level initiative underscores the role of public buildings as front-runners in energy conservation efforts.

5. Texas

Although Texas does not have comprehensive state-level energy benchmarking laws, cities like Austin have stepped up with local regulations. Austin Energy’s Building Energy Performance Ordinance requires energy audits and disclosures for commercial properties, setting a precedent for energy management in the state.

The Role of Local Governments in Energy Benchmarking

Local governments often augment state laws with their own specific regulations and initiatives. These local ordinances are vital as they address the unique needs of communities and push for improvements in local building stocks. Municipalities sometimes offer incentives such as tax breaks or support services to encourage compliance and drive performance improvements in energy use.

Impact of Non-Compliance

Non-compliance with energy benchmarking laws can lead to various penalties. Beyond the immediate legal repercussions such as fines, there are also reputational risks. Buildings known for poor energy performance might find it harder to attract tenants or buyers. Moreover, jurisdictions may publicly disclose the names of non-compliant properties, potentially affecting their market value and investment potential.

Future of Energy Benchmarking Laws and Regulations

The future of energy benchmarking laws will likely see tighter regulations, an expansion in the scope of covered buildings, and an increased integration of advanced technologies. The growing use of AI and IoT in energy management systems points to a future where real-time energy tracking and automated efficiency improvements could become standard practice.

Conclusion

Energy benchmarking is not just about regulatory compliance; it is a strategic tool that drives significant economic and environmental benefits. By staying informed about and actively participating in benchmarking initiatives, building owners and managers can lead the charge toward a more sustainable and efficient future. Engaging with local and state regulations, utilizing tools like the Energy Star Portfolio Manager, and staying abreast of new technologies are essential steps in this ongoing journey toward energy optimization.

This comprehensive understanding of energy benchmarking laws across different jurisdictions underscores the importance of proactive engagement in energy management practices. Whether through complying with existing laws or leveraging benchmarking for strategic business advantages, the role of energy benchmarking in shaping a sustainable future remains pivotal.

VertPro serves as a resourceful platform for property owners and managers seeking to enhance their buildings' energy efficiency. The site offers a range of services, including Commercial Energy Audits, Benchmark Compliance consultancy, and a Construction Marketplace. At the heart of VertPro® is a suite of SaaS technology-based solutions designed to assist in navigating the complexities of Energy Benchmarking and Energy Audits/RCx Plus, while ensuring adherence to over 60 Energy Benchmarking and Energy Efficiency Laws across the country.

For those looking to improve their property's energy usage and operational value, VertPro.com provides a diverse array of tools and information. The site aims to facilitate a better understanding of energy efficiency practices and legislation, helping building owners and property managers make informed decisions about their energy strategies while complying with all energy ordinances and laws.

Published December 13, 2024