Understanding Building Ordinance Requirements

What is an Energy and Water Building Ordinance?

A building ordinance, referring to data and water utility data, is a requirement established by a city or state that requires certain buildings within a set parameter to report their consumption data to the local governing body. 

Legislation mandating these requirements differs across cities and states but tends to be determined according to use type (e.g., commercial, residential) and square footage (e.g., buildings over 50,000 sq. ft.). Based on these requirements, buildings are assigned a unique identification number and must be submitted yearly to avoid fines.

What is benchmarking?

A common term in building ordinances is benchmarking. Benchmarking is the term for tracking a property’s details and consumption data. When an ordinance requires a property to be benchmarked, it is looking for all of the data to be tracked and collected.

How do I track the data?

Most of the reporting and data tracking is done through the EPA’s online program, Energy Star Portfolio Manager. 

Portfolio Manager stores details such as building use type and onsite conditions, such as the number of workers on the main shift. It can also track a property’s consumption data, energy (electric, gas, oil, steam, solar), water, and/or waste. All of these factors impact a property’s overall Energy Star score, energy usage and greenhouse gases (GHG).

Where can I find the requirements?

The ordinance body will often send out notification letters to the buildings detailing the requirements, due date, and unique identifying number. More details can often be found online. Lists of cities and states with these requirements can be found online (Here is a webpage UL has with details and dates: Benchmarking and Ordinance Compliance). Once a building ordinance is established, research into the requirements is recommended, as some may require additional items like audits or GHG reductions.

How do I submit?

Each ordinance is different, but most commonly, you submit through Energy Star Portfolio Manager. First, make sure the property’s unique ID# is entered under the details tab on the left side. Add by selecting the applicable ordinance and then inputting the number.

Second, on the building profile, under the summary tab, there is a button titled Check for Possible Errors. Run this for the year the property is being submitted for. Once no errors or red exclamation marks are discovered, the property can be submitted.

Third, the ordinance website will provide a link to Portfolio Manager, where the required property can be selected and submitted.

Are there any additional requirements?

Ordinance requirements can vary by city or state. Some may have multiple requirements that each property must comply with. Two examples are New York City, with three requirements, LL84, LL88 and LL97, and Los Angeles, with two requirements, a benchmarking portion and an audit portion. Building owners must comply with all requirements.

Are there penalties for noncompliance?

Penalties vary per ordinance. Some cities require properties to be submitted and, if not, only withhold future requests to the city until the ordinance requirements are met. Other cities have monetary fines ranging from hundreds to millions of dollars, depending on compliance. 

For example, LL97 is New York City’s GHG reduction ordinance. It requires a reduction based on building type and size. The fine for missing the target is decided by how far off from the target the building emissions are. You will take your actual emissions minus them by the annual emissions limit, then multiply that number by $268.00. The fees can add up quickly if no corrective actions are taken.

What is a Building Performance Standard (BPS)?

As more cities and states announce Net Zero Goals, the latest trend in ordinance requirements is the Building Performance Standard, which aims to lower GHG emissions and energy consumption. This ordinance establishes a 3, 5, 6 or 10-year cycle; a baseline year is then selected, and the property will be required to reduce its overall site energy use index (EUI) and GHG emissions within that cycle. If the property does not meet the target limit, the building owner will be fined based on how far away they are from the target, as in the LL97 example above.

How can I meet all of these requirements?

Hiring a third-party benchmarking organization is the simplest way. Tracking the ordinances, reading the legislation, and documenting the properties can be daunting tasks. Knowledge is the best tool when it comes to meeting these detailed requirements.