By the end of 2024, 20% of U.S. buildings square footage is projected to be subject to one or more emissions compliance requirements. Washington, Oregon, Colorado and Minnesota are just a few states leading the charge nationwide.
Building Performance Standards
Projects
Understanding Building Performance Standards
McKinstry is your partner for the entire life cycle of your building, helping you to meet building performance standards and eliminate environmental harm by developing streamlined compliance roadmaps through our robust suite of services including benchmarking and verification, financial strategy development, implementation and energy management and maintenance.
For portfolio managers with multiple buildings in different regions, leveraging program similarities makes navigating the complexities of implementation easier. Choosing the right partner – with a robust history supporting clients in achieving compliance with ever-expanding and complicated legislation – can ensure success in developing an energy reduction strategy and timely implementation of prescribed measures. As legislation expands across the country, McKinstry has proudly supported a diverse set of clients in achieving their building compliance standard targets.
What is BPS?
- In the US, buildings account for more than a third of all Green House Gas emissions.
- The U.S. Department of Energy has provided federal guidance for decarbonizing U.S. buildings, aiming to reduce building emissions 65% by 2035 and 90% by 2050.
- Spurred in part by that federal emphasis, many states and local jurisdictions have passed Building Performance Standards (BPS), with more on the horizon.
- BPS are outcome-based laws and regulations that require buildings to meet emissions or energy usage targets by a certain date.
- These laws and regulations are designed to provide flexibility in achieving reduction goals but progressively tighten their targets to continue to drive more efficient and cleaner buildings.
How does McKinstry Approach BPS?
For McKinstry and our clients, a holistic approach to compliance includes comprehensive capital planning, robust data collection, bundled services and a strategic compliance implementation plan.
- Education: Conducting EUI benchmarking, retro commissioning (RCx) and comprehensive data collection with full portfolio assessment for compliance pathway planning.
- Developing a Timeline: Align on key benchmarking and reporting schedules across multiple compliance programs and/or multiple buildings to systematically tackle compliance.
- Capital Planning: Build upon energy savings by developing operational and low-cost capital improvements to serve your mission and create a more sustainable return on investment. Consider end-of-lifecycle equipment replacements to improve efficiency in a budget-friendly way.
- Implementation and Energy Management and Maintenance: Submission and documentation proposals, delivering a long-term plan for compliance. Plus, ongoing consultation, monitoring and maintenance road mapping.
Understanding BPS Timelines
BPS programs are performance-based programs with progressively tighter targets for emissions and energy use. While each program timeline is unique, BPS requirements typically have some similar features:
- Benchmarking: BPS programs will first require you to measure and verify your current energy use intensity (EUI) or Greenhouse Gas Intensity (GHGI). This is accompanied by also determining your target EUI (EUIt) or GHGI (GHGIt).
- Interim Compliance Reporting: In some jurisdictions, the regulatory body will ask you to report on your initial progress in achieving your target. This ensures you have started the process and are on your way to successfully complying.
- Initial Compliance Deadline: BPS programs set an initial compliance deadline to meet your EUIt or GHGIt. There are often alternative paths for buildings that can comply by the deadline and for those that may need to pursue significant investment in energy or greenhouse gas reductions.
- Ongoing Compliance Deadlines: BPS programs are designed to be more rigorous over time. The EUIt and GHGIts will lower over a prescribed period of time and you will likely need to complete ongoing compliance reporting as you work toward meeting those targets.
- Penalties for Non-Compliance: If building owners do not comply with their BPS targets, they may face monetary penalties anywhere from a few thousand dollars per building to over $1.50/square foot.
What buildings are impacted?
BPS programs group building by size and/or use-type. Small buildings and single-family homes are often exempt from compliance. Building between 20k-35k square feet and larger are usually subject to the BPS requirements. There are also other exempt categories of buildings, which may include agricultural or industrial buildings or even data centers.
How can I get started?
BPS compliance is a marathon, not a sprint. It is important to have a holistic plan that’s forward looking in order to meet compliance in a way that works for your organization. A comprehensive compliance plan should not just take into account the BPS requirements but also the values and priorities of your organization. A great BPS partner will you help you meet your compliance deadlines while also helping you incorporate your capital management plan, sustainability goals, and occupant and stakeholder feedback. McKinstry is your partner for compliance standards and for the life of your building.
Interested in Learning More?
Please complete the required fields below to learn more about how McKinstry can help your organization in developing streamlined compliance roadmaps.
Financial Disclaimer: McKinstry is not engaged in providing legal, tax or financial advice. The information provided herein is intended only to assist you in your decision-making and is broad in scope. Accordingly, before making any final decisions you should consider obtaining additional information and advice from your accountant or other financial advisers who are fully aware of your specific circumstances.
Spark Innovation
What Building Performance Standards May Mean for Your Bus…
How the needs of special use case buildings helped add nuance to legislation designed to impact positive climate chan…