Energy benchmarking is a popular
practice among commercial
building owners and managers, and,
increasingly, it also is becoming a
popular focus of local governments
across the United States. Over the past several
years, more than 20 U.S. cities have enacted benchmarking
ordinances, with a number of other municipalities currently considering proposals. This presents both challenges and
opportunities to the commercial real estate industry, and, as
a result, the industry is finding ways to play an active role in
the development of these ordinances.
BENCHMARKING BACKGROUND
Energy benchmarking is simply the practice of evaluating
the energy efficiency of a building over time and comparing
it to similar buildings. Benchmarking can be used to discover where there may be opportunities
to make a building more energy
efficient and, in turn, reduce its
energy consumption and expenses.
The commercial real estate industry
has long recognized the benefits
of energy savings, both in terms of the
financial bottom line and as a key element
of sustainability efforts, and local
governments have begun to take note
as well. Benchmarking ordinances are
becoming more commonplace as local
governments view them as an effective
tool to confront a variety of issues,
such as lowering emissions or reducing
energy bills. Local businesses
related to energy efficiency also stand
to benefit.
Benchmarking
ordinances are
becoming more
commonplace as local
governments
view them as
an effective tool to confront
a variety of issues.
While benchmarking may be simple
in concept and offer a number of benefits,
in practice, the development of an
ordinance involves a host of variables,
some of which have the potential to
negatively affect the industry. These
variables include decisions on which
buildings are covered, what exemptions
are allowed and what information
is made public.
BOMA’S POSITION
BOMA International strongly supports
and encourages benchmarking as a
tool to enable commercial buildings
to become more energy efficient and
identify opportunities to cut waste. In
fact, BOMA actively promotes benchmarking
on a voluntary basis through
the U.S. Environmental Protection
Agency’s ENERGY STAR® Portfolio
Manager tool. However, BOMA’s
official policy opposes mandates for
energy benchmarking, disclosure
and labeling. Public disclosure of
a building’s ENERGY STAR rating
and energy usage data is particularly
disconcerting, as it could unfairly disadvantage a property owner who
has otherwise been proactive and
responsible in terms of energy usage.
A building may receive a lower score
due to elements outside the control
of the property owner, such as tenant
energy usage and a lack of whole building
energy data.
The decision to support any particular
local benchmarking ordinance—
with or without public disclosure—is up to each BOMA local association.
Participation in the process is critical,
ideally before ordinances are introduced.
BOMA local associations have
proven to be strong and active voices
on the issue of benchmarking, even
as individual experiences have varied
tremendously, hinging on the processes
employed by local governments.
In Pittsburgh, for example, a lengthy,
but inclusive, process involved the BOMA local association from the start.
“We were at the table from the very
beginning,” shares Mike Embrescia,
executive director of BOMA/Pittsburgh.
“We met monthly at the mayor’s office
for over two years, along with a large
stakeholder group of 15-20 people.”
In the end, while the ordinance was
not exactly what the local commercial
real estate community would have preferred, BOMA/Pittsburgh was
comfortable supporting the final version.
“This was not an easy process,”
says Embrescia, “but BOMA’s opinion
was well-represented, we were able to
agree on terms that were both reasonable
and relevant and we anticipate
continuing to work with the city.”
BOMA/Orlando, however, found
itself on the defensive when the city of Orlando,
Florida, released
a completed
draft ordinance.
“If we were
given notice,
we would have
worked with the
city rather than
reacting fullthrottle,”
says
Allyson Peters,
executive director
of BOMA/
Orlando. Partnering
with other real estate organizations,
BOMA/Orlando was successful
in pushing back and amending
the ordinance, including removing
fines for noncompliance and creating
a stakeholder advisory committee
to monitor its implementation. “We
were able to make changes,” Peters
says, “but I would advise that, if you
get wind of an ordinance in your
area, ask your city to be involved
in the writing and be a part of
the process.”
Public disclosure of
a building’s ENERGY
STAR rating and
energy usage data
could unfairly
disadvantage
a property
owner who has
otherwise been
proactive and
responsible in
terms of energy
usage.
ENGAGEMENT TOOLKIT
AND OTHER RESOURCES
This summer, BOMA International
released a new iteration of its Energy
Benchmarking Ordinances Engagement
Toolkit. The document provides
background on the issue, as
well as guidance on how to engage
and collaborate with local officials
and stakeholders. Appendices
include a “policy variable” list, which
details the multiple options that
likely will be considered during the
development of a policy, and a table
summarizing existing municipal
benchmarking ordinances.
BOMA International also is coordinating
with BOMA local associations
to plan ahead where ordinances are
anticipated. Advocacy staff members
are available to assist by providing
guidance, conducting research and
developing talking points and additional
materials. For more information,
download the toolkit at www.
boma.org/energybenchmarking or
contact BOMA International’s advocacy
team at govt@boma.org.
This article was originally published in the September/October 2017 issue of BOMA Magazine.