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 1. Resiliency & Sustainability
    
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BUILDING PERFORMANCE STANDARDS: HOW TO GET READY (IFMA 2023)

Sept. 29, 2023

Building Performance Standards, policies aimed at decarbonizing the building
sector, are spreading across the U.S. Building owners and managers need to start
planning now.
Janelle Penny
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A patchwork of Building Performance Standards (BPS)—policies aimed at
decarbonizing the building sector, including existing buildings—are picking up
steam nationwide.

As of September 2023, 37 cities and states have committed to the National
Building Performance Standards Coalition, and several jurisdictions—including
Denver, which hosted IFMA’s 2023 World Workplace conference and expo—have
already passed specific standards with energy or carbon reduction targets. More
jurisdictions are currently debating whether to pass their own standards.

The message to building owners and facilities managers is clear—these standards
aren’t going away and are likely to come to your jurisdiction at some point.
Anyone involved in owning or managing real estate should understand the basics
of BPS policies and how to plan for the future, so you’re not faced with fines
down the road, a point echoed by a panel at World Workplace 2023.




WHAT IS A BUILDING PERFORMANCE STANDARD?

BPS policies are just what they sound like—a set of performance standards that
buildings—including existing buildings—must meet. The specifics vary from
jurisdiction to jurisdiction, but policies typically target either energy
efficiency (such as in Denver, St. Louis and Washington, D.C.) or carbon
emissions (New York City, Boston, Seattle). Some places, including Denver, are
also requiring buildings to choose electric-powered equipment whenever older
equipment powered by fossil fuels is ready for replacement.

“Generally, these are long-term policies that are often tied to greenhouse gas
reduction goals,” explained Brendan Hall, environmental policy analyst for the
EPA. “They seek to drive reductions through specific targets and deadlines that
ratchet down. By having specific targets and deadlines, including those that go
out in longer time horizons, they can shift building owners to a continuous
improvement cycle. What am I doing now to reach the standards that are a few
years out, and how am I preparing long-term to make sure my asset is going to
reach that standard in 2040?”


WHAT DOES A BUILDING PERFORMANCE STANDARD LOOK LIKE?

Every jurisdiction sets different targets and deadlines, so every BPS passed so
far is different. However, there are some common themes:

 * The standards get more stringent over time.
 * Buildings are progressing toward net-zero carbon or energy performance.
 * Continuous improvement is necessary to achieve the goals set by the standard.

Denver has different requirements based on the size of the building, explained
Dr. Sharon Jaye, building performance policy manager for Denver’s Office of
Climate Action, Sustainability and Resiliency. Buildings that are 25,000 square
feet or larger are held to the strictest standards; they must submit annual
energy use benchmarking, meet performance requirements based on the building’s
Energy Use Intensity (EUI), electrify when replacing space and water heating
equipment at the end of its life, and install a cool roof or meet other
compliance options when it’s time to replace the roof.




Buildings between 5,000 and 24,999 square feet don’t have to complete
benchmarking reports or meet energy requirements, but they do have to meet one
of two compliance paths to meet the standard. They can either 1) prove that 90%
of the building’s total lighting load is provided by LED lighting, or that all
lighting meets the 2019 Denver Building and Fire Code for lighting power
density, or 2) use on-site or off-site renewable power generation to meet at
least 20% of the building’s annual site energy usage.

Buildings under 5,000 square feet don’t have to meet any performance
requirements, but they do have to partially electrify when replacing gas-fired
heating and cooling equipment at the end of their lives.


5 NEXT STEPS FOR FACILITIES MANAGERS

Regardless of whether your jurisdiction is debating BPS adoption, it’s important
to prepare for the future, advised Zachary Hart, associate director of energy
and sustainability programs for energy intelligence provider Touchstone IQ. Hart
offered five tips to help any facility professional get ready for a BPS policy.

1. Know the law. Understand your building’s final and interim performance
targets. Some laws require you to hit a goal in the short term—say, 10 years
from now—but in some places, like New York City, the requirements stretch out to
2050, Hart said. “You really have to keep the future in mind and have a
long-term plan for how you’re going to meet your requirements,” he urged.



2. Make sure your benchmarking is correct. Are you already benchmarking in
ENERGY STAR’s Portfolio Manager tool? If so, make sure all your building use
types are covered, especially if you have a mixed-use building that has
restaurants or another energy-intensive use type.

3. Identify operational and capital improvement opportunities in each building.
“Facilities managers who have an idea of what you’d like to do in your building
to make it perform better, this is an opportunity to get those investments
made,” Hart said. “Many utilities are offering free or subsidized energy audits
where they come in and help you figure out where to invest your capital to meet
your targets.”

4. Check for compliance support from state and local governments, your utility
and even specialty lenders who may have financial products to help fund energy
projects, Hart said.

5. Create a retrofit plan to reach your targets. “If you’re working with
consultants to help you figure this out, make sure they really understand the
BPS requirements and aren’t just giving you a standard set of products they know
about,” Hart said. “The details of the policy are super important. …Make sure
you’re working with people who understand the laws, because that can make or
break your retrofit plan.”





About the Author


JANELLE PENNY | EDITOR-IN-CHIEF AT BUILDINGS


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