US cities sharpen focus on building performance standards to meet net-zero goals. Over 40 cities will have these standards in place by 2026, compelling building owners to prioritize energy efficiency and emissions reduction measures, according to a report from JLL. State and local governments are turning to building performance standards, or BPS, as a key measure to cut emissions and meet climate targets, according to a report from JLL released last week.
Thirteen U.S. cities have a BPS in place, accounting for about 25% of all U.S. buildings as of early 2024, and over 30 additional U.S. cities have pledged to pass BPS by 2026 or earlier, according to the report. While noncompliance rates are relatively lower in the first round of limits for New York City and Boston, these costs “quickly ratchet up [for] the second round and steadily increase thereafter,” the report says.
By 2026, at least 40 U.S. cities will have BPS in place, with many setting net-zero targets by 2050 or earlier, the report says. Owners should proactively take action to understand, manage and improve their buildings’ energy and emissions performance through data collection and measurement and compliance documentation to avoid future fines or challenges complying with these requirements. an example of a cost-benefit analysis it ran on a 500,000-square-foot Class A office building in New York, powered by natural gas and electricity. The firm says the team that determined that a maximum net-zero carbon retrofit would cost the owner nearly $15 million, but cut energy costs by about 35% and allow the owner to avoid over $2.5 million in penalties.
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