Important Updates for DC Building Owners on the DC Building Energy Performance Standards (BEPS)
Introduction
To achieve DC’s greenhouse gas reduction goals of 50% by 2032, the District Department of Energy and the Environment (DOEE) has released requirements for District buildings to meet Building Energy Performance Standards (BEPS), which supplement the existing Energy Benchmarking Program (EBP). The BEPS and EBP will ultimately have broad implications for DC’s sustainability goals for decades to come, and buildings that fail to comply can face fines of up to $7.5 million and civil infractions.
Responsible building owners will use this opportunity to upgrade their facility, reduce operating costs, and eliminate the risk of non-compliance.
As a locally-based leader in energy engineering and construction, CEG helps buildings comply with the BEPS and EBP, so please contact us to schedule a meeting with an engineer to learn more about your options for compliance. Typically, we can guarantee BEPS compliance for building owners at no net cost by designing high-value utility savings measures.
While this article focuses on the BEPS and how to avoid the steep fines, we have a similar post explaining the EBP, and a webpage on how CEG can guarantee local energy compliance, including BEPS.
What are the DC Building Energy Performance Standards (BEPS)?
The BEPS is a minimum level of energy performance based on the local median EnergyStar score for a property type. EnergyStar scores range from 1-100 and quantify a building’s energy performance relative to similar buildings nationwide. A score of 90 means your building is more efficient than 90% of similar buildings and a score of 50 means your building meets a median level of efficiency. The 2021 BEPS ruling outlines the EnergyStar targets for each property type in DC (a condensed version is shown below).
|
Property type |
EnergyStar Score Target |
|
Hospital |
50 |
|
Hotel |
54 |
|
Office |
71 |
|
Retail store |
64 |
|
Data center |
50 |
|
Multifamily Housing |
66 |
Since the BEPS are based on the local median EnergyStar score, approximately half of the buildings in the DC area will likely initially be performing below the BEPS target. For colleges and universities, which cannot receive an EnergyStar score, the BEPS uses a Blended Custom Source Energy Use Intensity (EUI), which takes into account the diversity of building uses and campus operations. The BEPS target for each university can be viewed in the official ruling document.
Does my building have to achieve BEPS?
Starting January 1, 2021, private buildings larger than 50,000 gross square feet will have to achieve the BEPS target. Smaller private buildings are phased in every 6 years from 25,000 SF (2027) to 10,000 SF (2033).
How does my building meet the BEPS?
If your building is required to meet the BEPS, then it must achieve an EnergyStar score greater than or equal to its BEPS target. For example, if your building is a multifamily building or office building you must earn an EnergyStar score of at least 66 or 71, respectively. If your building cannot earn an EnergyStar score, then it must achieve a Normalized Source EUI score less than or equal to the corresponding BEPS target (which is outlined in the official ruling document). Finally, if your building cannot earn an EnergyStar score nor a Normalized Source EUI, then it must achieve a Source EUI that is less than or equal to the corresponding BEPS target. All of these targets are outlined in the official BEPS 2021 ruling.
What if my building does not meet the BEPS?
If your building is required to meet the BEPS and fails to do so, then it will be placed in a “compliance cycle” — a five-year period of time given to comply with the BEPS. Building owners must choose one of three available principal compliance pathways, or choose an alternative compliance pathway, to achieve the BEPS:
Performance - Achieve a 20% or more decrease in your Adjusted Site Energy Use Intensity (EUI)
Standard Target - Achieve the BEPS target for your building type
Prescriptive - Meet reporting milestones and implement one or more of the DOEE pre-determined energy efficiency measures
Alternative Performance - Complete energy savings measures that are designed to meet or exceed the goals outlined in the performance pathway. Such measures will be determined and agreed upon by the building owner and the DOEE
If your building cannot achieve an EnergyStar score, then there are alternate pathways to choose from, and our engineers can help you execute the most cost-effective pathway for your building. Notice that only one of these pathways (the standard target) uses the BEPS target, despite the fact that all of these pathways are designed to achieve the BEPS. Thus, there are several ways to meet the BEPS, and the specific pathway that you choose will likely be the most cost-effective pathway for your building.
Penalties for non-compliance
If your building goes through a compliance cycle and fails to achieve the BEPS, then penalties are in order. The maximum penalty rate is $10/square foot of gross floor area. The maximum penalty amount for a building will not exceed $7,500,000. There is also a single maximum penalty amount of $7,500,000 for college/university campuses and hospital campuses.
These penalties are designed to be greater than the cost of compliance to ensure that non-compliance is not a cost-effective option. Moreover, penalties will be based on the percentage of achievement towards the BEPS goal, so you will only be charged the full penalty if your building has made 0% progress towards its BEPS target by the end of your compliance cycle.
Does COVID-19 change any of this?
For the BEPS period beginning on January 1, 2021, all deadlines have been extended by one year due to the current COVID-19 pandemic. In other words, buildings that have to achieve BEPS compliance starting January 1, 2021 will have six (rather than five) years to achieve compliance.
Exemptions from the BEPS
The DOEE allows exemptions from the BEPS under certain circumstances, including major building renovations, demonstrated financial distress, unoccupied building status, and pending building demolition. That said, all exemptions will be determined by the DOEE on a case-by-case basis and it is the responsibility of the building owner to apply for exemptions in a timely manner.
Conclusion
The BEPS program requires building owners to meet increasing efficiency requirements or face steep fines. Our conversations with the DOEE indicate that they are fully prepared to enforce fines and issue civil infractions for buildings that fail to meet the BEPS requirements.
The key to avoiding DOEE audits, fines, and forced compliance periods is to track your building’s energy consumption and invest in cost-effective energy upgrades.
CEG provides turnkey benchmarking and BEPS compliance to simplify your operations and uncover energy savings. As locally-based experts in energy engineering, we will track, design, and install energy savings improvements to meet the BEPS and reduce your utility/operating costs. Beyond compliance, our energy savings will improve your net operating income (NOI) and invest in CapEx upgrades to modernize your building’s energy infrastructure. We even offer full financing packages to eliminate upfront cost via low-cost energy efficiency financing and DC incentives. To comply with the BEPS and EBP and save on your energy bill with no upfront cost, contact our engineering team today.
