Boston’s Building Emissions Reduction and Disclosure Ordinance (BERDO): A Complete Guide

Massachusetts has long been a leader in climate action, with Boston at the forefront of adopting innovative strategies to combat greenhouse gas emissions. Buildings, particularly large commercial and residential properties, are among the state's most significant contributors to carbon emissions, accounting for a substantial share of energy consumption. To address this, cities like Boston have implemented bold measures such as the Building Emissions Reduction and Disclosure Ordinance (BERDO). This ordinance not only aligns with the state's aggressive climate goals but also reflects the growing urgency across the real estate industry to transition toward sustainable and energy-efficient operations. In this blog, we’ll dive into what BERDO entails, its implications for building owners, and how it fits into Massachusetts’ broader push for net-zero emissions by 2050.

What is BERDO?

The Building Emissions Reduction and Disclosure Ordinance (BERDO) is a local law in Massachusetts, mainly used in Boston, aimed at reducing greenhouse gas emissions from large buildings to achieve net-zero emissions by 2050. It requires owners of sizable buildings to report annual energy and water consumption and comply with progressively stringent emissions standards. While BERDO initially focused on reporting energy use, recent amendments have introduced carbon reduction requirements, which make it a vital tool in Massachusetts’ climate action strategy.

Why Was BERDO Created?

BERDO was established to address Boston's significant greenhouse gas emissions from large buildings, which constitute nearly 70% of the city's total emissions.

The ordinance mandates that owners of sizable buildings report their annual energy and water consumption and adhere to progressively stringent emissions standards, aiming for net-zero emissions by 2050.

By targeting these major sources of emissions, BERDO plays a crucial role in Boston's strategy to combat climate change and promote sustainable building practices.

Who Needs to Comply with BERDO?

The Building Emissions Reduction and Disclosure Ordinance applies to:

• Non-residential buildings that are 20,000 square feet or larger (excluding parking).
• Residential buildings with 15 or more units.
• Parcels with multiple buildings that collectively meet the above criteria.

Owners of these properties are required to:

1. Annually report energy and water usage.
2. Undergo third-party verification of reported data in the first reporting year and every five years thereafter.
3. Comply with emissions standards, which become more stringent over time, aiming for net-zero emissions by 2050.

How BERDO Compliance Works

Complying with BERDO involves several key steps for building owners:

1. Annual Reporting: Each year, building owners must report their property's energy and water usage using the ENERGY STAR Portfolio Manager and complete the BERDO Reporting Form. This data submission is due by May 15 for the previous calendar year.
2. Third-Party Verification: The reported data must be verified by a qualified third party in the first reporting year and every five years thereafter. This ensures the accuracy of the information submitted.
3. Emissions Standards Compliance: Starting in 2025 for larger buildings and 2030 for smaller ones, properties must meet specific emissions standards that become more stringent over time, aiming for net-zero emissions by 2050. Compliance can be achieved through:
   • Reducing Energy Consumption: Implementing energy efficiency measures, such as upgrading HVAC systems, improving insulation, and installing energy-efficient lighting.
   • Procuring Renewable Energy: Utilizing renewable energy sources, like enrolling in Boston's Community Choice Electricity program or installing on-site solar panels, to offset emissions from electricity use.
   • Alternative Compliance Payments (ACPs): If emissions limits are exceeded, owners can make ACPs of $234 per metric ton of CO₂ equivalent over the limit. These payments contribute to the Equitable Emissions Investment Fund, supporting decarbonization projects in Boston's environmental justice communities.
4. Flexibility Measures: BERDO offers flexibility mechanisms for compliance, including:
   • Blended Emissions Standards: For buildings with multiple primary uses, owners can calculate a blended emissions standard based on the mix of uses.
   • Building Portfolios: Owners of multiple buildings can comply with a single portfolio-level emissions standard, allowing for coordinated emissions reductions across properties.
   • Individual Compliance Schedules: Owners can apply for an alternative emissions reduction schedule based on a chosen baseline year, requiring a 50% reduction by 2030 and net-zero by 2050.
   • Hardship Compliance Plans: For buildings facing financial, technical, or operational challenges, owners can apply for adjusted compliance obligations.

BERDO Penalties for Non-Compliance

Non-compliance with Boston's Building Emissions Reduction and Disclosure Ordinance (BERDO) can result in significant financial penalties for building owners. The fines are structured as follows:

1. Reporting Requirements Non-Compliance:
   • Failure to submit annual energy and water usage reports can lead to daily fines ranging from $150 to $300, depending on the building's size.
2. Emissions Standards Non-Compliance:
   • Buildings that do not meet the prescribed emissions standards may incur daily fines between $300 and $1,000, based on the property's size and the extent of non-compliance.
3. Inaccurate Reporting:
   • Submitting inaccurate or false information can result in fines ranging from $1,000 to $5,000.

Additionally, if a building exceeds its emissions limits, owners have the option to make Alternative Compliance Payments (ACPs) at a rate of $234 per metric ton of CO₂ equivalent over the limit. These payments contribute to the Equitable Emissions Investment Fund, which supports decarbonization projects in Boston's environmental justice communities.

It's crucial for building owners to adhere to BERDO's requirements to avoid these penalties and contribute to Boston's goal of achieving net-zero emissions by 2050.

BERDO Adoption Beyond Boston

Building Emissions Reduction and Disclosure Ordinance model is being adopted by other municipalities in Massachusetts beyond Boston. Notably, Newton is in the process of implementing its own BERDO to address greenhouse gas emissions from large buildings. Newton's proposed ordinance targets commercial buildings over 20,000 square feet, which account for approximately 23% of the city's total greenhouse gas emissions. The goal is to achieve net-zero emissions by 2050, with progressively stricter emission standards over time.

Similarly, Cambridge has adopted a BERDO-like ordinance, and other municipalities such as Lexington and Watertown are considering similar measures to regulate and reduce emissions from large buildings.

These initiatives reflect a growing trend among Massachusetts municipalities to implement building emissions reduction ordinances to meet climate goals and reduce greenhouse gas emissions from the building sector.

How Can Building Owners Comply with BERDO?

Preparing for compliance with Boston's Building Emissions Reduction and Disclosure Ordinance involves several strategic steps for building owners:

1. Establish Accurate Data Collection:
   • Set Up Energy Tracking: Utilize the ENERGY STAR Portfolio Manager to monitor and record your building's energy and water usage.
   • Gather Historical Data: Collect past energy and water consumption data to establish a baseline for future reporting.
2. Conduct a Building Assessment:
   • Energy Audit: Perform an energy audit to identify areas where energy efficiency can be improved.
   • Evaluate Emissions: Assess current greenhouse gas emissions to understand your building's starting point relative to BERDO's emissions standards.
3. Develop a Compliance Plan:
   • Set Emissions Reduction Targets: Align your building's operational goals with BERDO's progressively stringent emissions standards, aiming for net-zero emissions by 2050.
   • Plan Energy Efficiency Upgrades: Identify and prioritize upgrades such as HVAC improvements, enhanced insulation, and energy-efficient lighting.
   • Explore Renewable Energy Options: Consider integrating renewable energy sources, like on-site solar panels or purchasing renewable energy credits, to offset emissions.
4. Engage Qualified Professionals:
   • Third-Party Verification: Hire a qualified energy professional to verify your reported data in the first reporting year and every five years thereafter.
   • Consult Energy Experts: Work with energy consultants to develop and implement effective emissions reduction strategies.
5. Utilize Available Resources:
   • City of Boston's BERDO Resources: Access guides, templates, and support provided by the City to assist in compliance efforts.
   • Incentive Programs: Explore programs like Mass Save for potential incentives and rebates on energy efficiency improvements.
6. Stay Informed on Deadlines and Updates:
   • Reporting Deadlines: Annual reports are due by May 15 for the previous calendar year.
   • Regulatory Changes: Regularly check for updates to BERDO regulations to ensure ongoing compliance.

By following these steps, building owners can effectively prepare for BERDO compliance, contributing to Boston's citywide emissions reduction goals and avoiding potential penalties associated with non-compliance.

How Can Building Analytics Software Help with BERDO Compliance?

Building analytics software plays a crucial role in helping property owners comply with Boston's Building Emissions Reduction and Disclosure Ordinance (BERDO). Key benefits include:

1. Automated Data Collection and Reporting:

These platforms streamline the gathering of energy and water usage data, ensuring accurate and timely annual submissions as mandated by BERDO.

2. Real-Time Monitoring:

Continuous tracking of energy consumption and emissions allows for immediate identification and correction of inefficiencies, aiding in meeting progressively stringent emissions standards.

3. Performance Benchmarking:

Analytics tools enable comparison of a building's performance against BERDO's emissions standards and similar properties, highlighting areas for improvement.

4. Predictive Maintenance and Fault Detection:

By identifying equipment issues early, these systems prevent energy waste and ensure optimal building performance.

5. Strategic Planning for Emissions Reduction:

Advanced analytics assist in evaluating the impact of potential energy efficiency upgrades and renewable energy integrations, facilitating informed decision-making to achieve compliance.

6. Simplified Third-Party Verification:

Comprehensive data reports generated by these platforms support the required third-party verification process, ensuring data accuracy and compliance.

Implementing building analytics software not only aids in BERDO compliance but also enhances overall building efficiency, reduces operational costs, and supports sustainability goals.

Discover how CIM’s PEAK Platform simplifies compliance and optimizes building performance.

‍Watch a demo today to see how real-time insights and advanced analytics can transform your building management.