How Energy Compliance Drives Decarbonization
A New Era of Sustainability
In cities across California, sustainability is no longer just an option—it’s policy. As the state requires strict procedures to combat climate change, municipalities are mandating energy performance standards that push buildings to operate more efficiently and reduce carbon emissions. However, this shift is now transforming how we view energy audits, benchmarking, and compliance. To some, these standards have a reputation of being bureaucratic checkboxes, but it’s important that they are also seen as tools for building owners to contribute to a low-carbon future.
From Los Angeles and San Francisco, to San Jose and Berkeley, these programs mark a new era of sustainability in California. This blog will explain how energy compliance supports decarbonization, enhances building performance, and helps owners future-proof their assets.
Why Building Efficiency Matters in Climate Action
Buildings are responsible for nearly 40% of global carbon emissions, primarily from energy use for heating, cooling, lighting, and operations. In dense urban areas like San Francisco, Berkeley, Los Angeles, and San Jose, improving energy efficiency in a building is one of the fastest ways to cut emissions.
To address this, cities have introduced energy performance ordinances that require owners to:
Benchmark energy and water use
Conduct periodic energy audits
Complete retro-commissioning (RCx)
Submit performance reports
These measures ensure that buildings are not only measured against efficiency standards, but that underperformance is addressed and improved upon. Compliance is now a key factor in the push toward decarbonization.
Los Angeles EBEWE
The Existing Buildings Energy and Water Efficiency (EBEWE) ordinance in LA is a cornerstone of the city’s Green New Deal. It requires annual benchmarking for all commercial and multifamily buildings over 20,000 sq. ft., and a detailed ASHRAE Level II Energy Audit and RCx every five years (Phase II).
These audits identify energy conservation measures (ECMs) that, when implemented, reduce energy use and emissions. EBEWE Compliance is not just about reporting data—it’s about taking action.
San Francisco Energy Audit Requirements
San Francisco's ordinance mirrors LA’s with mandatory benchmarking and energy audits. Owners must submit a San Francisco Energy Audit and RCx every five years to stay compliant.
These audits serve two purposes:
Highlight inefficient systems
Prioritize upgrades with the greatest environmental impact
When audit recommendations are followed, building emissions drop—and operational costs usually follow.
San Jose BPO (Building Performance Ordinance)
The San Jose BPO mandates annual benchmarking for buildings over 20,000 sq. ft. and sets specific energy performance targets. Buildings that fail to meet performance thresholds are required to undergo audits or retrofits.
This performance-based approach ensures that actual reductions in energy use and carbon output are achieved, not just reported.
BESO Benchmarking Berkeley
The Building Emissions Saving Ordinance (BESO) takes a lifecycle approach. It requires benchmarking at key points such as time of sale or renovation, and for certain building types on a scheduled basis. BESO Benchmarking Berkeley aligns with the city’s Climate Action Plan, which includes reducing building emissions by 80% by 2050.
Berkeley’s program helps create long-term accountability for building emissions and drives a culture of continuous improvement.
Turning Compliance Into Climate Action
Energy compliance programs generate massive amounts of data. But the real opportunity lies in turning that data into action. When building owners act on audit recommendations, they achieve:
Lower carbon footprints through reduced energy consumption
Better indoor air quality and occupant comfort
Increased property value and marketability
Access to incentives and rebates for green upgrades
This is where energy compliance services come in. A qualified partner doesn’t just file reports—they help implement meaningful change. From performing detailed audits to managing retrofits and documentation, the right compliance provider bridges the gap between data and decarbonization.
The ROI of Sustainable Upgrades
Sustainability isn’t just good for the environment—it’s good for business. Here are some tangible returns from investing in energy upgrades:
5–20% reduction in utility bills from efficiency improvements
Improved tenant retention due to better comfort and ESG alignment
Fewer fines and smoother transactions during sales or refinancing
Eligibility for green loans, grants, and local incentives
Whether it’s LED lighting retrofits, HVAC optimization, or automation controls, many improvements pay for themselves within a few years.
A Roadmap for Owners: From Data to Decarbonization
If you're a building owner in California, here's how to turn compliance into climate action:
Benchmark Accurately
Use ENERGY STAR Portfolio Manager and ensure your data is up to date and verified.
Conduct a High-Quality Audit
Choose a provider that understands your city’s ordinance and delivers a thorough ASHRAE Level II audit.
Prioritize Retrofits
Focus on ECMs with the biggest impact: HVAC, lighting, insulation, and controls.
Implement & Document
Follow through on audit recommendations and keep detailed records for compliance and future incentives.
Track & Optimize
Continue benchmarking and tune systems regularly. Improvements made now can help you qualify for performance exemptions in future cycles.
The Role of Energy Compliance Services in Sustainability
Working with an experienced energy compliance service simplifies the path to sustainability. At Inland Empire Energy, we help clients navigate every stage:
Benchmarking for EBEWE, BESO, San Jose BPO, and San Francisco audits
Performing detailed energy audits and retro-commissioning
Identifying, prioritizing, and executing upgrades
Managing compliance deadlines and avoiding fines
Maximizing performance, comfort, and long-term value
We believe that sustainability shouldn’t be complicated. It should be achievable, strategic, and cost-effective.
In Conclusion
Energy compliance is no longer just a legal obligation—it’s a critical component of your building’s environmental impact and financial success. Programs like Los Angeles EBEWE, San Francisco Energy Audits, San Jose BPO, and BESO Benchmarking Berkeley are creating accountability and helping cities meet their climate goals.
But compliance alone isn’t the win. Action is.
With the right plan and the right partner, every audit and benchmarking report becomes a step toward decarbonization. Let’s make our buildings greener, our cities healthier, and our future more sustainable.
