Building Performance Laid Bare: Energy Reporting Laws Taking Effect

Laws taking effect now are advertising the real energy performance of large buildings in cities like New York for all to see.

Monitoring your energy use isn’t just a good idea—it’s now the law in some cities and states. As we report on in our new EBN feature article, Energy Reporting—It’s the Law, the public is about to find out just how much energy is being consumed in thousands of large buildings in New York City, and similar laws are being enacted and taking effect in several other U.S. cities.

Benchmarking vs. Reporting: What’s the Difference?

Many of the laws that require energy reporting are called “benchmarking” laws. But actual benchmarking may or may not be part of the process. These key definitions should help cut through the confusion.

• Reporting: The recent spate of energy benchmarking laws that apply to commercial buildings all require that the building owner report the building’s energy use using the online Energy Star Portfolio Manager. In some cases owners (or their consultants) have to collect and enter the data themselves; in others they can just enter basic building information and authorize the utility company to provide the data.
• Benchmarking: Once the data is in Energy Star Portfolio Manager it might or might not be compared against other, similar buildings. If the building is of a type (such as office, school, etc.) for which Energy Star has reliable data, then it can be compared against that data set and assigned a comparative benchmark score. These scores are adjusted to account for variables such as square footage, number of occupants, and how the space is used.
• Disclosure: Voluntary use of benchmarking programs like Portfolio Manager has been an option for building owners for over a decade. Requiring owners to disclose either their data or a benchmark score is a more recent development (although one New York State “Truth in Heating” law for homes goes back to 1980). The laws all require that owners disclose their Energy Star Portfolio Manager data to the city or state. Some cities will post that information publicly, while other cities and states only require that it be disclosed to parties involved in a real estate transaction.

Owners get nervous about being embarrassed by having to report poor energy efficiency—or arguably, by reporting a simple number when a more complex story must often be told (such as one involving high occupancy rates contributing to high energy use) to understand a building’s performance. A reporting requirement in Philadelphia was passed over the objections of one owners’ group.

How much effect will the laws have?

We’re on the cusp of a new era of building energy labels. Here are some of the things we're wondering about.

• How strong a role will reporting, benchmarking, and disclosure play in “raising the floor” of building performance, and how will it interact with efforts like the LEED rating system to “raise the ceiling”?
• To what extent will the culture of building owners move toward embracing transparency and improved performance, versus reporting being be seen as just another law to minimally comply with?
• Will energy reporting programs be seen as a low-cost way for governments to encourage efficiency in their real estate sectors, or will they fall victim to budget-cutting axes in the tough economy?
• How far will energy reporting mandates spread across the U.S., and how quickly?
• What new tools and utility programs will develop to make reporting easier, and the results more comprehensible?
• Will more widespread reporting lead to greater integration between design and construction on the one hand and operations and maintenance on the other?

Please post your thoughts below! And of course, for more investigation, see Energy Reporting—It’s the Law in EBN.

Image note: We love the EnergyGuide image shown here, and since it's now all over the Internet we don't know who originated it. If you know, let us know!