Cycle 1 of the Building Energy Performance Standard (BEPS) pertains to buildings > 50,000 SF.
Compliance with BEPS is determined by the average ENERGY STAR Scores for the years 2019 and 2020*, known as the Baseline Years.
*Under the default COVID-19 PHE Delay, BEPS compliance is determined by the average ENERGY STAR Scores for the years 2018 and 2019.
Buildings must complete energy efficiency upgrades by 2023 to prove compliance in the years 2024 and 2025*.
*Under the default COVID-19 PHE Delay, buildings must complete energy efficiency upgrades by 2025 to prove compliance in the year 2026.
The first step is to select a compliance pathway.
You must complete and submit a Pathway Selection Form by April 1st, 2022*
*Under the default COVID-19 PHE Delay, you must complete and submit the Pathway Selection Form by April 1st, 2023.
Depending on your performance requirement, there are four (4) compliance pathways:
Performance Pathway
Standard Target Pathway
Prescriptive Pathway*
Alternative Compliance Pathway
*Building owners may choose to opt for the prescriptive pathway under any performance requirement, however this is not recommended by Capital Efficiency.
If the Distance from BEPS or Performance Requirement is ≥ 20%, you must select the Performance Pathway*
For the Performance Pathway, the building must reduce its Site EUI by 20%.
Utilizing ENERGY STAR Portfolio Manager, this will be measured in one of two ways:
Failure to meet compliance will be subject to a financial penalty of $10/SF (Max $7.5MM)
The penalty will be reduced based on an 'Adjustment Factor' to reflect improved building performance that has fallen short of the 20% Site EUI reduction.
Example - PASS
Example - FAIL
DON'T PAY TO COMPLY!
Capital Efficiency provides turn-key services to upgrade your building to be more energy efficient with 100% project financing and no out-of-pocket expenses. We'll leave no stone unturned and based on your comfortability (invasiveness to the building and/or tenants) upgrade anything that has an impact on energy use:
HVAC & Controls
Lighting & Controls
Domestic Hot Water
Renewable Energy + Energy Storage
Building Envelope:
Windows, Roof, Insulation
We'll help with water efficiency too!:
Landscape irrigation
Low-flow fixtures
Rest assured.
We will satisfy the Performance Pathway requirements of reducing site Energy Use Intensity (EUI) by 20%. In fact, we are confident in helping you achieve the Alternative Compliance Pathway (reducing Site EUI ≥ 36%), having identified energy savings of 93% on a building with an ENERGY STAR Score of 95!
You won't have to do a thing, our turn-key services handle everything for you, and we'll even populate ENERGY STAR Portfolio Manager on your behalf (satisfying the 3-year requirement of third party data verification requirement by a licensed PE), as we perform this service with all of our projects as part of our Measurement & Verification process.
Again, don't pay to upgrade for compliance!
100% Project Financing covers all hard and soft costs of the energy efficiency project and when provided the upfront financial capital, the project becomes a positive cash flow deal (you save more than you owe, i.e. the Savings-to-Investment Ratio (SIR) is greater than one). There's no need for CapEx Funds, and you no longer need to ask for the simple payback, Internal Rate of Return (IRR), or Net Present Value (NPV)... those financial metrics are N/A!
With 100% Project Financing that:
Transfers with the sale of the property
Passes thru to tenants in a triple net (NNN) lease
Off-balance sheet
Non-recourse
Non-accelerating, fully amortized
BEPS regulation aside, energy efficiency just makes good business sense.
Avoid the cost of delay and continuing to pay higher energy bills. Energy efficiency increases property value and net operating income (NOI), improves health and human comfort, attracts and retains more tenants, and reduces carbon emissions.
Contact us to get started saving energy (money) today!
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Note the Building Energy Performance Standard (BEPS) has routinely gone through periods of revisions after public comment. While the regulation is certainly official and in effect, the proposed rules and guidelines are still being finalized.
While this article is continuously being updated to reflect updates and changes, please refer to the following links for the latest official releases from the DC DOEE: