Washington D.C.’s Building Energy Performance Standards: Everything You Need to Know

December 5, 2024

As cities around the world confront the challenge of reducing greenhouse gas emissions, Washington D.C. has established ambitious energy efficiency standards for its buildings. The Building Energy Performance Standards (BEPS) aim to lower emissions citywide, improve building efficiency, and support D.C.’s goal of achieving carbon neutrality by 2050. Here’s a closer look at BEPS, how it works, and what building owners and managers need to know to stay compliant.

What is BEPS?

Washington D.C.’s Building Energy Performance Standards (BEPS) were established as part of the city’s Clean Energy DC Omnibus Act of 2018. BEPS is designed to improve the energy performance of buildings across the district by setting minimum energy efficiency standards that buildings must meet. The overarching goal is to reduce greenhouse gas emissions from one of the city’s largest sectors: building operations. By targeting energy performance, BEPS supports D.C.’s roadmap to becoming a sustainable, climate-resilient city.

Key objectives of BEPS

BEPS sets mandatory energy performance standards for large buildings, aiming to ensure continuous energy improvement. Buildings that fail to meet these standards must either improve energy efficiency or take specific measures to achieve compliance. With each compliance cycle, BEPS standards are updated to encourage consistent progress toward higher efficiency.

Why does BEPS matter?

Addressing climate change locally

Buildings in Washington D.C. account for around 74% of total greenhouse gas emissions. BEPS provides a direct mechanism to reduce these emissions and help the city meet its climate targets, including the ambitious goal of cutting emissions by 50% by 2032 and achieving carbon neutrality by 2050.

‍Economic and health benefits

Implementing BEPS helps reduce energy consumption, leading to lower utility costs for building owners and tenants. Moreover, more energy-efficient buildings contribute to healthier indoor environments, benefiting the well-being of D.C.’s residents. By investing in BEPS compliance, building owners not only align with local regulations but also improve their buildings’ marketability and long-term operational savings.

Key requirements and compliance for building owners

Who is impacted?

BEPS applies to large buildings, initially covering those 50,000 square feet and above. However, the standards will expand in future cycles to include buildings as small as 10,000 square feet by 2027. This phased approach allows building owners to prepare for compliance while expanding the scope of energy savings across more properties. ‍

Compliance pathways

BEPS offers several compliance pathways to meet the required standards. Here’s an overview of the primary pathways available:

1. Performance pathway

Building owners can achieve compliance by reducing their site Energy Use Intensity (EUI) by at least 20% over the five-year compliance period.

‍2. Standard target pathway

Alternatively, buildings can meet a predefined EUI target specific to their property type, as set by the Department of Energy & Environment (DOEE).

3. Prescriptive pathway

This pathway involves a series of actions and upgrades to improve energy efficiency, regardless of specific EUI targets. The Prescriptive Pathway may include HVAC system improvements, lighting upgrades, or retrofits for building envelopes.

4. Alternative compliance path

Building owners who face unique challenges or limitations in meeting BEPS can work with DOEE to establish a custom compliance pathway that aligns with the building’s operational constraints and opportunities.

Penalties for Non-Compliance with Washington D.C. BEPS

Failure to meet BEPS requirements can lead to substantial financial penalties. These are calculated at $10 per square foot of gross floor area, capped at $7.5 million per property. Additional fines may be imposed for submitting inaccurate data or missing reporting deadlines.

Penalty calculation:

The DOEE determines fines on a case-by-case basis, often using a formula based on the building's size and the degree of non-compliance.

For example, penalties may scale with how far a building's EUI deviates from the target or the timeline for achieving reductions.

Incentive to comply:

Fines are structured to make non-compliance more costly than investing in energy-efficient upgrades. The objective is to encourage building owners to prioritize improvements rather than face financial repercussions.

Cycle-specific enforcement:

Non-compliance penalties escalate with each compliance cycle, reflecting the district’s push for continuous improvement toward carbon neutrality.

Compliance cycles and deadlines

Washington D.C. BEPS compliance is organized in five-year cycles, with each cycle introducing updated standards. The first cycle began in 2021, focusing on buildings over 50,000 square feet, with additional compliance milestones set for 2027 and beyond. To stay on track, building owners should actively monitor each cycle’s requirements, plan for improvements, and prepare for future adjustments in BEPS standards.

Timeline of BEPS cycles

- Cycle 1: Began in 2021 (for buildings 50,000 sq. ft. and up)

- Cycle 2: Expands to buildings 25,000 sq. ft. and up

- Cycle 3 (2027): Will include buildings 10,000 sq. ft. and up

How to prepare for BEPS compliance

Preparing for BEPS compliance is not only a regulatory requirement but also an opportunity to optimize building operations and cut costs. Here are some steps to consider:

1. Benchmark energy performance

Use ENERGY STAR Portfolio Manager to benchmark your building’s current energy use and determine its site EUI. Benchmarking helps identify areas where efficiency can improve and prepares you to select the most appropriate compliance pathway.

2. Assess and plan upgrades

Engage with an energy consultant to evaluate your building’s current systems and recommend upgrades. From HVAC to lighting, focusing on energy-intensive areas can yield significant savings and improve compliance prospects.

3. Explore financial incentives

The Department of Energy & Environment offers resources and incentives for energy efficiency projects. Check for grant opportunities, rebates, or low-interest loans that can offset the cost of compliance-related upgrades.

4. Stay informed on BEPS updates

Each cycle introduces updated performance standards, so staying informed is crucial. Keep an eye on DOEE communications to understand upcoming changes and ensure your building is on track to meet new requirements.

Resources for D.C. building owners

Washington D.C. offers a range of resources and programs to support building owners in meeting BEPS requirements, including:

DOEE’s BEPS Helpdesk: This is the primary hub for information on compliance pathways, updates, and resources.
Building Innovation Hub: This resource center, created by the Institute for Market Transformation (IMT), offers technical guidance, case studies, and expert advice for navigating BEPS compliance.

How building analytics software can help comply with BEPS

Building analytics software is a powerful tool for property owners in Washington, D.C., aiming to comply with the Building Energy Performance Standards (BEPS). Here's how it supports compliance efforts:

Energy performance benchmarking:

Use software to track real-time energy use and measure a building's Energy Use Intensity (EUI) against BEPS thresholds.

Identifying efficiency opportunities:

Use software like CIM’s PEAK Platform to pinpoint underperforming systems (e.g., HVAC, lighting, elevators) and prioritize upgrades for maximum impact on energy efficiency.

Selecting optimal pathways:

Analytics tools help compare BEPS compliance options, such as reducing EUI by 20% or meeting a specific target, based on cost-effectiveness and building operations.

Monitoring and adjusting in real time:

Continuous performance tracking ensures that upgrades achieve expected results, helping owners stay on track for compliance deadlines.

By integrating these capabilities, analytics software allows building owners to proactively manage energy performance, lower operational costs, and comply with BEPS standards.