This is the seventh and final installment in a series of articles outlining recent updates to building performance policies across the U.S. Check out our other posts to learn about the recently implemented BPS measures and how to navigate them.
Today, we’ll explore the implications of recent amendments to Cambridge, Massachusetts’ 2014 Building Energy Use Disclosure Ordinance (BEUDO). This policy is poised to significantly impact commercial and industrial businesses, pushing the boundaries of energy efficiency and sustainability.
Aiming for Net Zero Emissions
Cambridge, Massachusetts, has been a leader in energy efficiency since the enactment of the BEUDO in 2014. The ordinance was a key step in reducing Cambridge’s greenhouse gas (GHG) emissions, with energy use in buildings accounting for about 80% of the city’s GHG emissions.
In 2023, Cambridge passed amendments to the BEUDO, establishing GHG emissions limits for non-residential buildings. Large buildings over 100,000 sq ft must reach net zero emissions by 2035, while smaller ones (25,000-99,999 sq ft) have until 2050 to achieve the same. This means these buildings must balance the amount of emitted greenhouse gases with the equivalent emissions that are either offset or sequestered. While Cambridge doesn’t specifically call this a Building Performance Standard (BPS), it is one in practice.
These amendments are expected to reduce overall emissions for buildings covered by the Ordinance by approximately 50% by 2030 compared to a 2018-2019 baseline and by approximately 70% by 2035. This is a significant stride towards a more sustainable future, making Cambridge the first known city in the U.S. to require large buildings to reduce their emissions to net zero.
Implications for Commercial and Industrial Businesses
Commercial and industrial businesses in Cambridge need to be aware of the new deadlines set by the BEUDO amendments. Large non-residential buildings must reach net zero emissions by 2035, while small non-residential buildings have until 2050. The annual deadline to submit BEUDO benchmarking reports for data covering the previous calendar year is May 1.
While the specific penalties for non-compliance are not explicitly mentioned, there will likely be penalties or fines. To achieve compliance, building owners are required to track and report annual energy use to the city. The city will review reports as they are submitted, conduct basic quality assurance checks, and work with you to resolve any issues. Eversource facilitates reporting by providing aggregated energy use data for buildings through its Energy Data Portal.
Navigating Compliance with Cambridge’s BEUDO
As businesses face the new building performance standards set by the BEUDO amendments, they can take the following steps toward compliance:
Step 1: Assess Your Risk Exposure and Consider Your Options
The first step to managing compliance with any BPS is to understand the performance of your portfolio and its risk exposure. How many buildings are performing over the allowable limit, and what are the fines associated with that overage? Conducting a high-level risk assessment will enable you to prioritize resources for the buildings that need it most. And often, the low-performing buildings with significant risk of non-compliance and fines are also the buildings with the most opportunity for cost-effective and high ROI projects.
Step 2: Choose a Best-Fit Strategy for Your Building Portfolio
There is no one-size-fits-all strategy to optimize building performance to comply with Cambridge’s BEUDO. Instead, businesses should consider the best-fit option for their portfolio. Here are just two of the possible options:
High-ROI Energy Efficiency Projects
Consider implementing high-ROI energy efficiency projects to reduce GHG emissions.
Buying Renewable Energy Through Carbon Offset Credits
Non-residential Covered Properties of 100,000 Covered Square Feet or more may use Verified Carbon Credits to offset their GHG emissions.
Step 3: Track and Report Energy Use
This includes examining and quantifying each building’s greenhouse gas emissions. May 1 is the annual deadline for submitting BEUDO reports for data covering the previous calendar year. Ensure your data is accurate before submission.
In Conclusion
The amendments to Cambridge’s BEUDO are just the latest example of how cities are taking action to reduce greenhouse gas emissions and promote energy efficiency. As we move towards a more sustainable future, it’s clear that building performance standards will play a crucial role.
As Cambridge, MA’s building performance standards shape its local business environment, we’ll continue to provide updates and insights. We encourage you to visit our website and subscribe to our newsletter for the latest developments.
Mantis Innovation is at the forefront of helping organizations understand and navigate this rapidly evolving regulatory environment and is adept at driving compliance efforts for building owners and operators.
Contact us today to learn how we can help you become and remain compliant, avoid penalties, and create value for stakeholders through the process.
Read our other recent posts for more updates on building performance standards across the U.S. to stay updated on your local BPS.
