Key Takeaways
- New Jersey commercial buildings over 25,000 square feet are due for their annual energy and water usage benchmark
- Benchmarking helps building owners identify efficiency opportunities
- New Jersey Benchmarking is part of a broader effort to improve energy efficiency
- New Yorks Local Laws 84 and 97 demonstrate how benchmarking programs can evolve into stricter building performance standards
- Working with an experienced benchmarking provider can simplify data collection, reporting, and compliance.
Is Your Building Required to Benchmark?
If you own or manage a large commercial building in New Jersey, an important annual compliance deadline may be approaching!
The New Jersey Clean Energy Act of 2018
In 2018, New Jersey legislators designed the Clean Energy Act to transition to cleaner energy, improve energy efficiency, and support the long-term goal of achieving 100% clean energy statewide by 2050.
Key Goals of the Clean Energy Act
- Increase energy efficiency across New Jersey
- Expand renewable energy generation (i.e. Solar)
- Support offshore wind development
- Reducing greenhouse gas emissions
- Helping businesses and property owners identify opportunities to reduce energy and water consumption
Where benchmarking fits in
The Clean Energy Act directed the New Jersey Board of Public Utilities (NJBPU) to establish a statewide energy and water benchmarking program. Commercial building owners with properties over 25,000 square feet must track and submit their energy and water performance each year.
Why Benchmarking exists:
- Identifying opportunities for efficiency improvements
- Comparing performance against similar sized buildings/facilities
- Tracking improvement over time
- Potentially reducing operating expenses through efficiency measures
- Providing better comfort and indoor air quality to tenants and customers
- Enhancing marketability for benchmarked buildings
Local Law 97
Other states are similarly using benchmarking as a motivator to reduce energy consumption and applying fines with buildings with higher Energy Use Intensity (EUI).
New York City enacted Local Law 97 in 2019 as part of its Climate Mobilization Act, a package of legislation designed to reduce greenhouse gas emissions. City leaders introduced the law because buildings generate roughly two-thirds to 70% of New York City’s emissions, making them the city’s largest source of carbon pollution.
Local Law 97 requires owners to:
- Report emissions annually
- Stay below a prescribed carbon limit
- Potentially invest in upgrades if emissions exceed the cap
- Pay penalties if they fail to comply
The first emissions limits took effect in 2024. The current compliance period runs from 2024–2029, with significantly stricter limits beginning in 2030 and tightening further in later compliance periods through 2050.
Many buildings can meet the initial limits through operational improvements, but the 2030 requirements will likely drive owners to invest in electrification, HVAC modernization, controls, and energy efficiency upgrades.
Local Law 97 builds upon the foundation of benchmarking built by the implementation of Local Law 84.
Local Law 84
In 2009, Local Law 84 as part of New York City’s Greener, Greater Buildings Plan (GGBP). The law established one of the nation’s first large-scale building benchmarking programs and requires covered buildings to annually track and report their energy and water consumption.
At the time New York City introduced LL84, buildings used most of the city’s energy and produced the majority of its carbon emissions. Policymakers believed that simply requiring owners to measure and understand their consumption would lead to better decision-making and improved building performance.
Experts widely regard LL97 as one of the most ambitious building decarbonization laws in the United States, and policymakers across other states and cities have used it as a model for similar building performance standards. Many energy professionals consider it a model for future regulations that move beyond benchmarking toward actual emissions reduction requirements.
Get Your Benchmarking Done Today!
While the reporting process may seem straightforward, many building owners discover that gathering utility data and ensuring accurate submissions can be time-consuming. Working with an experienced benchmarking provider can help reduce administrative burden and improve data accuracy.
Contact VBS today to schedule your benchmarking with an experienced benchmarking provider!
Stop paying for energy you don’t need!
FAQ: Benchmarking Basics
How do I know if my building is required to benchmark?
Under New Jersey’s Energy and Water Benchmarking Program, most commercial buildings greater than 25,000 square feet are required to annually track and report their energy and water consumption.
What information is needed to complete benchmarking?
Building owners typically need utility consumption data, building characteristics such as square footage and occupancy information, and an ENERGY STAR Portfolio Manager account.
Why should I hire a benchmarking provider instead of doing it myself?
While benchmarking can be completed independently, many building owners find that collecting utility data, managing ENERGY STAR Portfolio Manager, and meeting reporting deadlines requires significant time and attention. A benchmarking provider can streamline the process, reduce administrative burden, improve data accuracy, and help ensure your submission is completed correctly and on time.