Condo Associations: Staying Ahead in Energy Benchmarking

Is your condo or co-op association ready to report your building’s energy usage annually? If not, and if your property spans 50,000 square feet or more, it might be time to prepare. As energy conservation rises on the priority list, many jurisdictions are poised to introduce mandatory energy benchmarking.

These regulations provide transparency, allowing anyone, including potential buyers, to evaluate your building’s energy performance compared to others. Buildings with poor energy ratings tend to be less attractive, which can lead to a decline in property values.

Energy Benchmarking Requirements Across North America

Currently, seventeen cities and one county in the U.S. require energy benchmarking, covering both mid-rise and high-rise multifamily as well as commercial buildings. Cities like Chicago, New York, and Austin are on this list. California's state-wide energy benchmarking law mandates large multifamily buildings to report energy use starting from 2019, though several cities within the state already have existing rules.

In Canada, Ontario set the precedent with a new regulation that requires multifamily buildings to start energy benchmarking by July 2017.

The Push for Mandatory Energy Benchmarking

Buildings are a major contributor to total energy consumption. For instance, data from the Ontario Environmental Registry showed that in 2013, buildings contributed to 19 percent of the province's greenhouse gas emissions. In New York City, buildings were responsible for an astonishing 68 percent of emissions in 2014.

Cities like Ontario and New York have prioritized energy conservation, incorporating benchmarking as a key element of their sustainability plans. Chicago’s energy benchmarking ordinance emerged as part of the Sustainable Chicago action agenda.

These regulations serve to increase awareness about energy use. The transparency allows building owners as well as prospective buyers and creditors to view and compare a building’s energy performance annually with similar structures. Remarkably, buildings subject to benchmarking tend to improve their energy use over time, even if no specific upgrades are mandated. This happens because owners often discover the extent of their energy use only once benchmarking begins. Transparency becomes a powerful motivator; no one wants their property to lag behind others.

Voluntary Benchmarking: Why Start Now?

Condo or co-op boards are always on the lookout for cost-saving measures, and reducing energy consumption is an effective way to achieve savings. However, to make informed energy-saving changes, detailed information is necessary.

Benchmarking is a crucial step in improving energy efficiency, offering board members and residents valuable data on yearly usage trends.

Learning from Energy Benchmarking

Analyzing monthly and yearly energy usage variations can highlight problem areas in your utility budget. If your building has already made some efficiency upgrades, benchmarking can confirm whether these efforts have significantly improved performance.

Most buildings could potentially cut up to 15 percent of their energy costs. Even with some improvements, additional savings opportunities likely exist.

Taking Action with Benchmarking Data

With solid benchmarking data in hand, conducting an energy audit is a wise next step. If it’s been a while since your last audit, this should be a priority. Your management company might offer this service. An audit will outline the most beneficial retrofit options, project costs, and potential energy and cost savings.

Education is equally important. Inquire whether your management company provides training sessions for board members, residents, and staff on energy conservation. Some may offer free energy-saving workshops. Additionally, many cities, states, or provinces offer sustainability courses, and federal programs like Energy Star® provide extensive resources on efficiency strategies and products.

Energy benchmarking regulations are likely headed your way eventually. Proactively addressing energy efficiency now will ease compliance later and enhance your building's performance from the outset. Your association and the environment stand to gain from any immediate improvements to building efficiency.