Why Energy Benchmarking Isn’t Just a Box to Check – It’s a Strategy
In California's rapidly evolving regulatory environment, energy benchmarking is no longer just a compliance obligation; it's a strategic decision that can transform your building operations, increase property value, and align your organization with sustainability goals. For cities like Los Angeles, San Francisco, San Jose, and Berkeley, programs like the EBEWE Program and BESO Benchmarking Berkeley require property owners to keep track of, and report their energy and water usage. Those who view these requirements as mere checkboxes miss out on major opportunities for long-term efficiency and profitability.
Understanding Energy Benchmarking
Energy benchmarking is the process of measuring a building's energy performance and comparing it against other buildings of similar purpose. It provides insights into how much energy your property uses, identifies hidden inefficiencies, and highlights potential savings.
The EBEWE Program in Los Angeles mandates energy and water benchmarking for buildings over 20,000 square feet. San Francisco and San Jose have similar requirements under their own local ordinances, and Berkeley's BESO Benchmarking Berkeley requires benchmarking as part of its broader Building Emissions Saving Ordinance.
These programs serve not only as regulatory mechanisms but also as gateways to improving your building's performance.
Beyond Compliance: The Strategic Value
Often, property managers treat benchmarking like a burden required by their respective cities. But in truth, when done correctly, it becomes a powerful decision-making tool. Here's how:
1. Informed Operational Decisions
Benchmarking reveals exactly where your building is losing energy and where you can make improvements. Whether it's HVAC inefficiencies, outdated lighting systems, or poor insulation, benchmarking data provides the facts you need to make informed operational decisions.
2. Lower Operating Costs
Identifying energy and water inefficiencies allows you to implement cost-effective retrofits to your building. These improvements can lead to substantial savings in utility costs.
3. Increased Property Value
Benchmarking helps you track and showcase improvements over time, making it easier to demonstrate your building's value and justify rental rates or sale prices. Energy-efficient buildings are also more attractive to tenants and investors.
4. Access to Incentives and Rebates
Municipalities and utility companies often offer incentives to property owners who participate in energy-saving programs. Having benchmarking data is helpful for accessing these programs, allowing you to fund upgrades with minimal out-of-pocket costs.
Local Programs That Make Benchmarking Essential
Los Angeles: EBEWE Program
Los Angeles’ Existing Buildings Energy and Water Efficiency (EBEWE) Program is one of the most comprehensive in the state. It mandates:
Annual benchmarking of energy and water usage.
ASHRAE Level II audits and retro-commissioning every five years for certain buildings. Failure to comply can result in significant fines and penalties. But compliance offers building owners insight into how to streamline building systems and cut operational costs.
San Francisco: Existing Commercial Buildings Energy Performance Ordinance
San Francisco requires all non-residential buildings over 10,000 square feet to report energy usage annually and undergo energy audits every five years. The city provides free tools and guidance, but also imposes penalties for non-compliance.
San Jose: Energy and Water Building Performance Ordinance
San Jose mandates benchmarking for buildings over 20,000 square feet, including multifamily properties. Unlike some cities, San Jose publishes benchmarking data to encourage transparency and competition in building performance.
Berkeley: BESO Benchmarking Berkeley
The Building Emissions Saving Ordinance (BESO) in Berkeley is part of the city's climate action plan. It requires residential and commercial buildings to disclose their energy usage and make improvements over time. The aim is not just compliance but a long-term reduction in carbon emissions.
A Strategic Plan for Success
To fully leverage benchmarking as a strategic tool, building owners should:
Start Early Don’t wait for the deadline to begin. Getting a head start allows you to collect quality data, avoid penalties, and plan for improvements over time.
Choose the Right Partner Work with experienced professionals who understand the local ordinances and can provide comprehensive energy audits and support services. A knowledgeable partner can help you make sense of your benchmarking data and recommend practical steps.
Integrate with Facility Management Treat benchmarking as part of your regular facility maintenance and operations. Share benchmarking reports with building engineers, property managers, and other stakeholders.
Track Progress Year Over Year Use the data to track performance improvements over time. This allows you to identify trends, measure ROI on upgrades, and make informed decisions for capital planning.
Communicate Results Use your benchmarking data to inform tenants, investors, and city agencies about your commitment to sustainability and performance. Transparency builds trust and sets you apart in competitive real estate markets.
So Why Wait?
Energy benchmarking requirements in Los Angeles, San Francisco, San Jose, and Berkeley aren’t going away. In fact, they’re only becoming more stringent as California pursues its climate goals. And treating these programs as mere compliance requirements is a missed opportunity.
Instead, building owners and managers should view energy benchmarking as a powerful strategy. Whether in Los Angeles, San Francisco, San Jose, Berkely, or anywhere else in the state, there is a correct path to take: those who benchmark proactively will be better positioned to save money, meet sustainability goals, and enhance their buildings' long-term value.
Start thinking of benchmarking not as a box to check, but as a strategy to lead the way into a smarter, greener future. And make sure to do it with Inland Empire Energy.
