Qualifying For Base Building Exemption: What Owners Need To Know
For many Los Angeles building owners, the EBEWE Program’s Audit and Retro-Commissioning (A/RCx) requirements can feel daunting. But not every building actually needs to go through the full process. Under certain circumstances, you may qualify for what’s called a Base Building Exemption—a way to demonstrate compliance without unnecessary audits or costs.
Understanding how these exemptions work, and what documentation is required, can save both time and money.
What Is a Base Building Exemption?
The Los Angeles Municipal Code (LAMC) defines Base Building Systems (BBS) as the core systems in a property that impact energy and water use—things like HVAC, plumbing, lighting, electrical, domestic hot water, and irrigation.
A Base Building Exemption applies when these systems are not controlled or maintained by the property owner, but instead by tenants or individual unit owners. In those cases, the building is exempt from A/RCx requirements for energy and/or water.
Who Can Qualify?
There are three main exemption pathways under Section 91.9704 of the LAMC:
Whole Building Lease (Commercial/Industrial/Retail)
The entire building is leased to one tenant.
That tenant is fully responsible for maintaining energy and water equipment.
Systems do not serve any areas outside the tenant’s control (e.g., lobbies, restrooms, common areas).
The tenant pays the utility bills directly
Tenant Space (Partial Lease)
A tenant leases part of the building and meets the same criteria above.
In this case, exemptions can apply to individual spaces, though the owner may still be responsible for common areas
Residential Units (Condominiums)
Systems serving the unit are owned and maintained by the condo owner.
They exclusively serve that unit (not common areas or other units).
The unit owner pays their own energy and water bills
Additionally, certain industrial process equipment—such as machinery used in manufacturing—can be exempt from A/RCx. However, HVAC, lighting, and plumbing systems serving the building itself are still subject to compliance.
What’s Required to Prove Eligibility?
To request an exemption, owners (or their representatives) must email ladbs.arcx@lacity.org with specific information:
Subject line: “BBS Exemption – [LADBS Building ID] – [Building Address]”
Body of email: State which exemption type you’re claiming (whole building, tenant space, or residential), explain how your building meets the criteria, and provide contact details.
Attachments may include:
Completed EBEWE Base Building Exemption Lease Checklist.
Copies of lease agreements or deeds.
Utility bills showing the tenant or unit owner pays for energy/water.
Floor plans (for tenant space exemptions) marking leased and common areas
Note: Month-to-month leases do not qualify. The lease must cover the exemption request date, compliance due date, and the following 12 months
How LADBS Reviews Requests
Once submitted, LADBS staff conduct a preliminary review. If anything is missing, the request will be rejected and you’ll need to re-submit. When all materials are complete, LADBS will either approve or deny the request and notify you by email
If approved, the exemption will be logged in the city’s compliance records, and your building (or tenant space) will be considered compliant for that cycle.
Common Mistakes That Lead to Denied Exemptions
One of the biggest challenges we see is owners submitting incomplete or unclear documentation. For example, leases that don’t explicitly assign responsibility for energy and water systems, or utility bills that are bundled under the owner’s account, can make it difficult for LADBS to confirm eligibility. Another common mistake is failing to address common areas — even if tenants control their spaces, systems serving lobbies, stairwells, or shared restrooms still fall under the owner’s responsibility. Taking the time to carefully review leases, utility structures, and building operations before applying can prevent delays and rejections.
Why It Matters
A Base Building Exemption can:
Save money by avoiding unnecessary audits and retro-commissioning.
Reduce paperwork by aligning compliance obligations with actual operational responsibilities.
Clarify responsibilities between owners and tenants regarding system maintenance and utilities.
For building owners with fully leased spaces or condo-style units, this exemption is often the most cost-effective compliance path.
Final Thoughts
Qualifying for a Base Building Exemption isn’t automatic—you need to carefully document how your building or tenant arrangement meets the city’s requirements. But with the right preparation, it can eliminate unnecessary costs and streamline compliance under the EBEWE ordinance.
If you’re not sure whether your property qualifies, it may be worth consulting with an Energy Compliance Service provider who can review your leases, utility structures, and building systems to ensure you’re not paying for audits you don’t need.
