Benchmarking Brilliance: How to Stay Ahead of Energy Ordinance

As cities and states ramp up efforts to combat climate change and promote energy efficiency, energy benchmarking ordinances have become a cornerstone of sustainable building practices. These regulations require building owners to measure and report their energy consumption, helping to identify inefficiencies, reduce operating costs, and drive environmental sustainability. By creating transparency and encouraging energy-efficient upgrades, benchmarking ordinances are pushing the real estate industry toward a greener future. 

In this blog, we’ll explore energy benchmarking ordinances, the importance of state-specific requirements, and important tools that can help buildings meet their energy goals.

Understanding energy benchmarking ordinance

An energy benchmarking ordinance is a regulation that mandates property owners to assess and report the energy performance of their buildings. The data collected allows building owners to track energy usage over time and compare it to other similar buildings, helping to easily spot areas where improvements can be made. These ordinances aim to improve energy efficiency, reduce carbon emissions, and contribute to environmental sustainability. 

At its core, energy benchmarking involves gathering data and reporting on a building’s energy use, usually through tools like ENERGY STAR® Portfolio Manager®. Property owners are required to gather energy usage data for their buildings, often on an annual basis, and submit it to local authorities. The data helps authorities track overall energy consumption in the built environment and identify areas where energy efficiency improvements can be made. 

Energy performance data is often publicly disclosed, allowing tenants, buyers, and investors to make informed decisions based on a building’s energy efficiency. This level of transparency creates a competitive environment where energy-efficient buildings may be more attractive, thus encouraging property owners to make improvements.

State-specific energy benchmarking requirements

While the core concept of benchmarking energy usage is consistent, energy benchmarking ordinances vary significantly across states, with each state—and often individual cities—setting its own requirements for data collection, reporting deadlines, penalties for non-compliance, and energy efficiency goals. These differences reflect the unique environmental and economic priorities of each region. 

The requirements vary—some states may mandate annual reporting for buildings over a certain square footage, while others only require benchmarking every few years. The threshold for which buildings are required to comply can also fluctuate, with some states targeting only large commercial buildings and others including smaller properties. The format and tools used for reporting also differ, with some states using standardized tools like ENERGY STAR Portfolio Manager, while others may have their own reporting systems. 

California stands out as an example of a state with detailed energy benchmarking requirements. The California Energy Commission (CEC) has developed robust benchmarking regulations that require large commercial buildings (those over 50,000 square feet) to track and report energy use annually. The state’s California Building Energy Benchmarking Program serves as the framework for these regulations, making it easier for property owners to comply and track performance improvements over time. Additionally, California provides incentives and financial assistance to buildings that invest in energy-efficient upgrades, encouraging compliance while promoting long-term savings.

Cities like Los Angeles and San Jose have adopted their own energy benchmarking ordinances that align with California’s broader climate goals but are tailored to local needs. Los Angeles has the Los Angeles Energy Benchmarking Ordinance, which requires buildings over 20,000 square feet to report their energy data annually. Similarly, San Jose has implemented the San Jose Beyond Benchmarking initiative, which goes beyond the basic reporting requirements by encouraging building owners to exceed baseline performance and adopt additional energy-saving measures.

Implementing energy benchmarking programs

One of the most effective tools for energy benchmarking is ENERGY STAR, a government-backed program that allows building owners to measure their energy use and receive an ENERGY STAR score. The ENERGY STAR benchmarking program helps buildings compare their energy performance to similar properties, set goals for energy savings, and identify areas for improvement. 

Establishing a building energy benchmarking program involves several important steps to ensure effective energy management and compliance with energy efficiency standards:

1. Collect building energy data

After you’ve researched and understood your local, state, and federal energy benchmarking regulations, you can begin to gather the necessary energy usage data. This includes accurate and up-to-date electricity, water, and natural gas consumption, from utility bills or other sources. Obtaining at least 12 months of energy data to establish a baseline for performance is advised. Need help capturing this data? EnergyCAP has you covered!

2. Enter and analyze data

Input the collected data into your benchmarking tool of choice—like, ENERGY STAR Portfolio Manager—and ensure all relevant details about the building (such as square footage, operating hours, and occupancy levels) are accurately entered. The tool will generate an energy performance score, which helps identify areas for improvement. Watch this webinar to learn how EnergyCAP helps customers submit to ENERGY STAR and analyze their data for efficiency opportunities.

3. Set energy goals, identify areas of improvement, and implement energy efficiency measures

Based on the benchmarking results, you can establish realistic energy-saving goals for your building. Identify areas where energy performance can be improved, then take action to implement energy-saving measures identified in your analysis. This may include upgrading insulation, installing energy-efficient lighting, upgrading HVAC systems, improving insulation, or introducing smart building technologies that can optimize energy use.

4. Engage stakeholders

Involve key stakeholders such as building tenants, property managers, and maintenance staff in the energy benchmarking program. Educating them about energy-saving practices and encouraging their participation can help optimize energy efficiency across the building.

5. Report and disclose energy performance

Some jurisdictions require the public disclosure of energy performance data. Prepare for regular reporting of your energy benchmarking results to meet these requirements. Sharing this information can also enhance transparency and demonstrate a commitment to sustainability.

6. Monitor and update the program

Regularly monitor your building’s energy usage and track progress toward meeting energy goals. Update the benchmarking tool with new energy data, periodically reviewing your benchmarking program to ensure it remains effective. Adjust your goals as needed and incorporate new technologies or practices to continually improve energy efficiency and meet evolving regulations.

Utility benchmarking for energy efficiency

Utility benchmarking is another beneficial strategy for improving energy efficiency. By tracking utility usage (such as electricity, water, and natural gas) alongside energy consumption, building owners can gain deeper insights into areas where they may be wasting energy or water. Utility benchmarking helps pinpoint inefficiencies, prioritize upgrades, and track improvements over time. 

Collaboration with utility companies can also provide valuable data and incentive programs to support energy-saving measures. Utility benchmarking can complement energy performance data and contribute to a holistic approach to reducing operational costs and enhancing sustainability.

Creating comprehensive energy benchmarking reports

Detailed energy benchmarking reports are essential for both compliance and identifying areas for improvement. These reports should include energy performance data, an analysis of energy usage trends, and recommendations for energy-saving upgrades. For building owners, these reports demonstrate compliance with energy benchmarking ordinances and in making informed decisions about energy improvements. 

A comprehensive report not only supports regulatory compliance but also serves as a tool for tracking the impact of energy-saving initiatives and measuring progress toward sustainability goals. The more detailed the report, the easier it is to identify underperforming areas and target improvements effectively.

Leveraging energy benchmarking tools

Effective energy benchmarking relies on robust tools that allow building owners and managers to collect, analyze, and report energy data accurately. The most widely used benchmarking tool is ENERGY STAR Portfolio Manager, which provides a comprehensive view of a building’s energy use and generates an ENERGY STAR score, offering insight into potential areas for improvement. However, ENERGY STAR Portfolio Manager is just one component of a broader energy management strategy.

EnergyCAP Utility Management is another essential tool for effective energy benchmarking and can play a key role in the collection, analysis, and reporting of energy data. Helping organizations streamline the entire energy management process, EnergyCAP integrates data from utility bills, on-site meters, and other sources, providing a centralized platform for energy tracking. With EnergyCAP, building managers can automate data collection, reducing manual errors and improving the accuracy of the information. 

EnergyCAP offers advanced analysis tools that allow users to identify energy trends, benchmark performance against historical data, and detect inefficiencies. It generates detailed, customizable reports that are essential for both compliance and efficiency improvement and can be used to meet regulatory requirements and track progress toward sustainability goals. EnergyCAP’s ability to integrate with ENERGY STAR Portfolio Manager and other systems allows for seamless tracking and benchmarking of energy performance across multiple buildings or portfolios. 

By leveraging EnergyCAP’s capabilities, organizations can ensure accurate data management, improve energy efficiency, and maintain compliance with energy benchmarking regulations, all while making informed decisions about future energy-saving initiatives.

Conclusion

Energy benchmarking ordinances play a vital role in improving building energy efficiency and driving sustainability goals. Understanding state-specific requirements is essential for ensuring compliance and taking advantage of available incentives. Tools like ENRGY STAR and EnergyCAP help streamline the benchmarking process, making it easier for building owners to meet regulatory requirements while also improving energy performance. If you’re looking to ensure your building meets energy benchmarking standards, using EnergyCAP can simplify data collection and reporting, setting you down a path to a more efficient and sustainable future.