BESO applies to commercial buildings, multi-family buildings, houses and mixed-use buildings (commercial and residential use).

Large Buildings

• 50,000 sqft or more

  • First Phase in Cycle: 7/1/2018

  • Required at Time of Sale: No

  • Requirement: Energy Assessment every 5 years & ENERGY STAR Portfolio Manager Performance Score (Benchmark Report) annually

• 25,000 – 49,999 sqft

  • First Phase in Cycle: 7/1/2019

  • Required at Time of Sale: No

  • Requirement: Energy Assessment every 5 years & ENERGY STAR Portfolio Manager Performance Score (Benchmark Report) annually

Medium / Small Buildings

• 15,000 – 24,999 sqft

  • First Phase in Cycle: 7/1/2020

  • Required at Time of Sale: Yes

  • Requirement: Energy Assessment every 10 years or at time of sale, whichever occurs first

• 5,000 – 14,999 sqft

  • First Phase in Cycle: 7/1/2021

  • Required at Time of Sale: Yes

  • Requirement: Energy Assessment every 10 years or at time of sale, whichever occurs first

• 600 – 4,999 sqft

  • First Phase in Cycle: 7/1/2022

  • Required at Time of Sale: Yes

  • Requirement: Energy Assessment every 10 years or at time of sale, whichever occurs first

Houses

• 1 – 4 Dwelling Units

  • First Phase in Cycle: N/A

  • Required at Time of Sale: Yes

  • Requirement: Energy Assessment at time of sale

Given the licensing requirements of the Registered Energy Assessor required to prepare the assessment report and the description of the ENERGY REPORT needed, this would be defined by ASHRAE as an Energy Audit. Appendix D defines the required energy assessment as an ASHRAE Level 2 audit for commercial and multi-family buildings over 50,000 square feet and an ASHRAE Level 1 for commercial and multi-family buildings under 50,000 square feet.  For mixed-use buildings, the determining size is 10,000 square feet. Those over 10,000 square feet required an ASHRAE Level 1 or 2 audit for both building types, while those under 10,000 square feet required only an ASHRAE Level 1 audit for the predominant use.

This would be defined within the industry as a benchmark report using the ENERGY STAR Portfolio Manager tool to prepare a Statement of Energy Performance. For annual reporting, buildings will report to the City through a data request within the Energy Star tool.

The Energy Assessment report has a filing fee ranging from $79 for a house to $240 for a large building.  This is in addition to the preparer’s fees. Benchmarking alone does not require a filing fee.

Prior to executing a contract for Sale, the Building Owner is responsible for complying with the energy assessment and reporting requirement for all buildings under 25,000 sqft.

There are several exemptions, deferrals, and extensions available. This document does not profess to list them all, but some are as follows:

1. High-Performance Exemption for buildings that have achieved significant energy efficiency, as demonstrated by one of several industry certifications available.

2. Time of sale deferrals that apply if the BUYER concurs and agrees to fulfill the reporting requirements within the deferral period of up to 12 months (includes a $48 filing fee).

3. Hardship Extensions and Deferrals include deferrals for buildings under rent control before January 1, 1999.

4. Deferral for new construction and extensively renovated buildings

5. Low energy use deferral for commercial buildings operating less than 24 hours per week and for buildings with a verified ENERGY STAR score of 80 or greater.

6. Data unavailable deferral for building owners who have been unable to obtain tenant authorization to access tenant utility data

7. Contracted registered energy assessor extension for building owners who have the energy assessment report under contract with a registered energy assessor and await their deliverable.

8. Unconditioned floor space reclassification whereby the unconditioned space (not heated or cooled) may be subtracted from the gross floor area to establish a reclassified building size and an adjusted compliance deadline.

9. There is an exemption for the sale of a unit that is part of a larger building, such as the sale of an attached condominium unit within a larger building (including co-ops and TICs). However, the condominium association must comply with BESO by the phase-in date.

Like all other municipal and state requirements, a licensed assessor is not required to prepare these reports.  ENERGY STAR service providers experienced in preparing these reports, such as Pegasus Energy Solutions, can usually prepare them for far less money.

There are fines of $100 for each violation and an additional fine of up to $25 per day for each day that the violation continues, up to a maximum of $1000 per violation.