State Energy Performance Standard.

Overview.

The State Energy Performance Standard (the Standard), often referred to as the Clean Buildings Performance Standard, requires the Department of Commerce (Commerce) to establish rules for energy performance standards for covered commercial buildings, to collect data on compliance, and to report on outcomes.  The Standard seeks to maximize reductions in greenhouse gas emissions from the building sector.  The Standard includes requirements for buildings to meet energy use intensity targets by building type, and includes requirements for certain building owners to develop energy management plans, operations and maintenance programs, conduct energy efficiency audits, and make investments in energy efficiency measures

The Standard must include energy use intensity targets and investments in energy efficiency measures designed to meet the targets.  Commerce must use the 2018 version of Standard 100 authored by the American National Standards Institute, the American Society of Heating Refrigerating and Air-Conditioning Engineers, and the Illuminating Engineering Society (ANSI/ASHRAE/IES Standard 100-2018) as an initial model for standard development. 

Commerce may impose penalties on building owners for failing to demonstrate compliance with the Standard.

Application to Buildings.

The Standard applies to two categories of buildings:  

• Tier 1 covered commercial buildings are buildings where the sum of nonresidential, hotel, motel, and dormitory floor areas exceed 50,000 square feet, excluding the parking garage area.
• Tier 2 covered buildings are commercial buildings greater than 20,000 square feet but less than 50,000 square feet, and multifamily residential buildings greater than 20,000 square feet.

All elements of the Standard apply to Tier 1 buildings.  Tier 2 building owners are responsible for the energy management and benchmark requirements; they are not responsible for complying with the energy use intensity targets.

The owner of a covered commercial building is exempt from the Standard if the building:

• did not have a certificate of occupancy or a temporary certificate of occupancy for a year before the compliance schedule;
• did not have an average occupancy of at least 50 percent throughout the calendar year before the compliance schedule;
• contains conditioned space which is less than 50,000 square feet;
• is primarily used for manufacturing or industry;
• is an agricultural structure; or
• meets certain conditions of financial hardship.

Energy Use Intensity Targets.

Commerce must develop energy use intensity targets that are no greater than the average energy use intensity of a building type with adjustments for unique energy use features, and must consider regional and local building energy use data when establishing targets.  The energy use intensity targets must be developed for two or more climate zones and represent energy use in a normal weather year.

Energy use intensity is a measurement that normalizes a building's site energy use relative to its size and is calculated by dividing the total net energy consumed in a year by the floor area of the building.

Exemptions to Energy Use Intensity Targets. 

There are exemptions to the requirement to meet energy use intensity targets.  One involves an alternative compliance pathway for certain building owners; the owner of a state campus district energy system is not required to meet the energy use intensity target or to otherwise comply with the Standard under certain conditions involving implementing a decarbonization plan.

Additionally, under Commerce rules, buildings may demonstrate compliance by implementing energy efficiency measures that achieve an investment criteria as specified in rule, and there are also exemptions for grouped buildings.

Utility Requirement to Provide Energy Data for Large Commercial Buildings.

All electric and gas utilities serving 25,000 or more customers in the state must either upload a covered commercial building's energy consumption data to the United States Environment Protection Agency (EPA) Energy Star Portfolio Manager or provide building owners with the consumption data.  These utilities must provide building owners with monthly energy consumption data to benchmark the building.

Alternative Metric Targets Authorized for Tier 1 Building Compliance.

Commerce may adopt additional compliance pathways for building owners to comply with the Standard by using alternative metrics.

Commerce may develop alternative metric targets related to energy use and greenhouse gas emissions if these alternative metrics are included in the ANSI/ASHRAE/IES Standard 100-2018 or subsequent versions of the ANSI/ASHRAE/IES Standard 100-2018.  Alternative metrics apply in most instances where energy use intensity targets apply in the Standard, except alternative metrics do not apply to the early adoption incentive program.

Additional Exemptions and Extensions.

The owner of a covered building is exempt from meeting the Standard if:

• the building meets a combination of multiple partial exemptions affecting more than 50 percent of the building's area;
• a building meets one of the following new conditions of financial hardship: (1) the building is a kindergarten through grade 12 school or a private school that has financial hardships related to capital construction or improvements including a failed bond and/or levy, limited school district debt capacity, and/or the building is actively correcting a violation of State Board of Health rules; or (2) the building is a public hospital in a public hospital district that lacks the debt capacity to cover the cost of compliance; or
• extenuating conditions exist, as approved by Commerce prior to the reporting date, to include buildings:  (1) for which meeting the Standard would impair the historic integrity of the building; (2) for which meeting the Standard would impair national security interests; (3) that have had significant losses in assessed value since the COVID-19 pandemic which prevents owners from securing loans; and (4) with other extenuating circumstances identified by Commerce by rule that may still require benchmarking, operations and maintenance programs, and energy management plan reporting.

The exemption for buildings primarily used for manufacturing or industrial purposes includes spaces with nonexempt occupancy classifications that are within the building and does not include tenant spaces not associated with the primary use of the building.

Covered building owners may apply to Commerce for an extension no earlier than six months before and up to six months after the building's compliance date.  Commerce may approve extension requests for conditions including, but not limited to, conditions beyond the control of the building owner.  Extensions are valid for two years beyond the building's compliance date, after which the building owner may apply to Commerce for an extension renewal or file for an exemption.

Utility Requirement to Provide Energy Data for All Covered Buildings.

Gas and electric utilities that must provide consumption data to the EPA or building owners for very large buildings must now also provide that data for Tier 2 buildings.

Restriction on Passing Penalty Costs Along to Tenants.

Penalties incurred from noncompliance may not be passed along to tenants, so long as tenants are providing access to utility use data, physical spaces in the buildings, and are responsive to needs from building owners to facilitate compliance with the Standard.