As the impetus for economy-wide decarbonization increases, a growing number of state and local governments are exploring the adoption of building performance standards (BPS), a policy trend that has the potential to significantly reduce energy, carbon and water use in existing buildings. To not overwhelm building owners and operators, BPS policies take an incremental approach, requiring buildings to meet specified levels of performance that grow more rigorous over time. BPS policies do not prescribe how the performance requirement will be met, leaving it to owners to determine the most cost-effective strategy for their building. Jurisdictions may choose to create standards around energy use, carbon emissions, water use or other metrics.
USGBC is highly supportive of BPS policies and is actively supporting legislation on both coasts in varying stages of development. Here’s a roundup of where we’re working:
- California: SB 48, known as the Building Energy Savings Act, has been significantly amended since it was introduced by state Sen. Josh Becker in December (it was initially titled the Water and Energy Savings Act). In its current version, the bill would require the California Energy Commission to develop a strategy for using energy usage data to track and manage energy usage and GHG emissions for large buildings to achieve the state’s emissions goals—including by exploring the feasibility of a BPS policy. The strategy, along with recommendations for future legislative action, would be submitted to the legislature by August 1, 2026. USGBC has joined a coalition of supporters advocating for the enactment of this bill.
- Maryland: Maryland became the third state (following Colorado and Washington) to enact a BPS policy in 2022, when its legislature enacted the Climate Solutions Now Act of 2022. The law requires buildings 35,000 square feet and larger to achieve a 20% reduction in net direct GHG emissions by 2030, and net zero emissions by 2040. Maryland’s Department of Environment initiated a rulemaking in the summer of 2022 and completed a draft regulation in March 2023. USGBC provided comments on the draft regulation, recommending the inclusion of a requirement for noncomplying buildings to create a plan for future compliance.
- Massachusetts: The Better Buildings Act—jointly introduced in the Senate and House as S 2178 and H 3213, respectively—would direct the state’s Office of Energy Resources to establish a BPS policy for buildings over 20,000 square feet. USGBC is supportive of this bill and is advocating for amendments to improve its effectiveness. The Better Buildings Act is making its way through both chambers.
- Oregon: Oregon became the most recent state to enact a BPS policy when Gov. Tina Kotek signed HB 3409 into law in June. The BPS, which was packaged alongside other environmental and climate change policies aimed at meeting the state’s GHG reduction targets, applies to commercial buildings larger than 35,000 square feet.
- Rhode Island: During its 2023 legislative session, which adjourned in June, Rhode Island state legislators introduced S 166 and H 5425, which proposed to create benchmarking requirements and direct the establishment of a BPS policy for large commercial and residential buildings. While the bill did not progress this year, it will likely be introduced in 2024. USGBC is engaged in advocacy to improve and advance this legislation next session.
- Seattle, Washington: Gov. Jay Inslee signed a statewide BPS policy into law in 2019 (and strengthened it last year), but Washington state’s largest city is upping the ante by introducing its own standard—one that targets emissions rather than energy. Building on the city’s existing Energy Benchmarking and Building Tune-Ups programs, the proposed Building Emissions Performance Standard requires commercial and multifamily buildings larger than 20,000 square feet to achieve net zero emissions by 2050. The city estimates that this would cover 1,650 nonresidential buildings and about 1,885 multifamily buildings. The city is seeking feedback from stakeholders, and USGBC is involved with a coalition of supporters. It is anticipated the city council will vote on the policy in September.
https://www.usgbc.org/articles/states-explore-adopting-building-performance-standards-policies
