Building Energy Performance Standards: Everything You Need to Know

Building Energy Performance Standards (BEPS) are emerging as a critical driver of sustainability and energy efficiency in commercial real estate across the DC and Baltimore regions. These regulations, much like NYC’s Local Law 97, are reshaping how buildings are operated, maintained, and upgraded, making it essential for building operators to understand their implications. As a building operator, mastering the nuances of BEPS can help you ensure compliance, enhance energy efficiency, and achieve long-term cost savings.

This guide offers a comprehensive overview of Building Energy Performance Standards, actionable steps for compliance, and strategies to leverage these regulations for operational and financial benefits.

What Are Building Energy Performance Standards?

Building Energy Performance Standards, or BEPS, are regulatory frameworks that reduce buildings' energy consumption and greenhouse gas emissions. These standards typically set minimum energy performance thresholds, requiring buildings to meet or exceed these benchmarks within specified timeframes.

BEPS are enforced at the local, state, or national level, with each jurisdiction tailoring requirements to its climate and energy goals. These regulations often include:

• Benchmarking: Measuring and comparing a building’s energy use against established standards.
• Mandatory Retrofits: Requiring upgrades to systems or equipment that fail to meet energy efficiency standards.
• Reporting Obligations: Mandating the disclosure of energy performance data to regulatory authorities.

Failure to comply with Building Energy Performance Standards can result in financial penalties, reduced tenant satisfaction, and reputational harm. On the other hand, proactive compliance can lead to lower energy bills, increased property value, and improved tenant retention.

How Building Energy Performance Standards Impact Operators

Building Energy Performance Standards significantly influence the responsibilities of building operators, who are tasked with ensuring buildings meet regulatory thresholds. These standards necessitate operational changes, system upgrades, and ongoing performance monitoring.

Operational Changes and System Optimization

Building operators must often revise existing operational protocols to meet BEPS requirements. This might involve deploying energy management systems, optimizing HVAC operations, upgrading lighting systems, or improving insulation. Effective energy monitoring and performance tracking are essential to identify inefficiencies and take corrective action.

Stakeholder Collaboration

Operators play a key role in aligning building owners, tenants, and service providers with BEPS objectives. Owners must often approve capital investments, while tenants need to understand how energy upgrades may affect their space. Effective communication ensures that all parties are informed and supportive of compliance measures.

Steps to Comply with Building Energy Performance Standards

Compliance with Building Energy Performance Standards involves a strategic approach. Breaking the process into clear, actionable steps can simplify implementation and minimize disruptions.

1. Understand Your Jurisdiction’s Requirements

Regulations governing BEPS vary by location. Research the specific performance standards, deadlines, and penalties applicable to your property. Engage with local authorities, attend workshops, and consult industry professionals to ensure full understanding.

2. Benchmark Your Building’s Energy Performance

Use tools like ENERGY STAR Portfolio Manager and Runwise to measure your building’s current energy use. Benchmarking allows you to identify inefficiencies, compare performance to similar properties, and establish a baseline for future improvements.

3. Create a Compliance Action Plan

Based on benchmarking results, develop a comprehensive plan to address energy deficiencies. Include:

• Equipment upgrades (e.g., HVAC systems, lighting, smart controls, and insulation).
• Operational changes to reduce waste and improve efficiency.
• A timeline and budget to meet compliance deadlines.

4. Partner with Energy Experts

Collaborate with energy consultants, engineers, and contractors who specialize in BEPS compliance. These professionals can recommend cost-effective solutions, perform energy audits, and assist with implementation.

5. Train Your Team

Equip your facilities management team with the skills needed to maintain upgraded systems and optimize building performance. Training ensures that your team is well-prepared to monitor, manage, and improve energy use over time.

Cost Implications and Financial Incentives

The cost of compliance with Building Energy Performance Standards can be significant, but it’s an investment that delivers long-term returns. Upgrades to building systems, such as HVAC units, lighting, and renewable energy installations, often lead to substantial reductions in operating costs.

Take Advantage of Incentives

Many jurisdictions offer financial incentives to ease the burden of compliance. Look for:

• Rebates: Offered by local utilities for adopting energy-efficient technologies.
• Grants: Provided by government programs for energy retrofits.
• PACE Financing: A program that funds energy upgrades through property taxes, allowing for gradual repayment.

Achieve Long-Term ROI

Buildings that meet or exceed BEPS requirements are often more attractive to tenants and investors. Energy-efficient properties command higher rents, lower vacancy rates, and increased market value, making compliance a strategic advantage.

Leveraging Technology to Meet Building Energy Performance Standards

Technological innovation plays a vital role in helping buildings meet BEPS requirements. Advanced systems can enhance efficiency and simplify compliance efforts.

Smart Building Technologies

Smart building technologies enable real-time monitoring and control of energy systems, making it easier to optimize energy consumption. Tools like smart boiler controls use sensors and algorithms to adjust heating systems based on factors like outdoor temperatures and occupancy, reducing waste while maintaining tenant comfort. Automated HVAC and lighting systems further enhance efficiency by adapting to real-time conditions, helping buildings meet energy performance goals.

Renewable Energy Solutions

Integrating renewable energy sources such as solar panels or wind turbines can help buildings meet energy performance goals while reducing reliance on non-renewable energy.

Routine Maintenance and System Upgrades

Preventative maintenance is critical for sustaining energy efficiency. Regularly inspect HVAC systems, lighting, and building envelopes to identify and address issues before they escalate.

Why Proactive Compliance with BEPS Matters

Proactive compliance with Building Energy Performance Standards is about more than avoiding penalties—it’s a strategic move that benefits building operators and owners alike. Staying ahead of regulations positions your property as a leader in sustainability and efficiency.

Enhanced Tenant Experience

Energy-efficient buildings provide tenants with a comfortable, reliable environment while reducing utility costs. These benefits increase tenant satisfaction and retention, creating a competitive edge.

Increased Market Value

Buildings that meet BEPS requirements are often more desirable to environmentally conscious tenants and investors. Compliance demonstrates a commitment to sustainability, boosting a property’s reputation and market value.

The Future of Building Energy Performance Standards

Building Energy Performance Standards will continue to evolve as governments intensify efforts to combat climate change. Future regulations may introduce stricter performance targets, new renewable energy requirements, and broader adoption of artificial intelligence for energy management.

Building operators should stay informed about regulatory updates, emerging technologies, and industry best practices. Investing in continuous improvement and fostering a culture of sustainability will ensure long-term success.

Take the first step toward smarter energy management by exploring how Runwise’s smart controls can help your property meet current and future energy performance standards.