Greener Greater Buildings Plan for New York City

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As part of a new series of papers regarding federal, state and local decisions to expand energy efficiency choices for consumers, Distributed Energy Financial Group (DEFG) has published a free report on New York City’s “Greener Greater Buildings Plan.”

The Greener Greater Buildings Plan is a key component of an effort to reduce pollution and energy costs in the city by 30 percent by 2030 and was initially touted as “first of its kind.” This benchmarking initiative began in 2007 with Mayor Bloomberg’s PlaNYC which addresses aspects of the city’s aging infrastructure.

Under NYC’s benchmarking law, Benchmarking Energy and Water Use, facilities have to disclose their energy utilization index, water use per gross square foot, the Energy Star rating, and a year-to-year comparison of this data. Annual benchmarking for city-owned buildings larger than 10,000 square began May 1, 2010 and commercial facilities over 50,000 square feet must begin benchmarking May 1, 2011.

Not surprisingly, it was scaled back after pressure from local building owners. The author, Cynthia Boland, Esq., has provided a discussion of the opposition to the law, potential business and legal challenges, and comments on the future of green building legislation.

Why is the GGBP a harbinger of things to come? It is a landmark legislation that mandates compliance with four laws:

a municipal energy code setting standards and energy use in large buildings
a sub‐metering requirement
requirements for energy audits
requirements for retro‐commissioning

Yet, the process and the politics can shed light on the complexities of getting this kind of legislation enacted in the future. The story of GGBP can serve as a “earning experience for other major cities considering legislation to improve energy efficiency in existing buildings.

NYC isn’t the first jurisdiction to require buildings to benchmark energy use. In California the legislation began in 2007, requiring benchmarking and limited disclosure for the parties involved in a sale or lease of a facility starting on Jan. 1, 2010. But Washington, D.C. went further in 2008 by requiring phased-in public disclosure of energy use beginning this year. NYC’s 2009 legislation took it further by mandating full compliance years ahead of the D.C. legislation for a far greater swath of building types.

As the trend gains momentum other cities are considering doing the same. Seattle passed its own energy-use benchmarking and disclosure law in January. Jayson Antonoff, a sustainable infrastructure and green building policy advisor for the City of Seattle department of planning and development commented, “Everyone should have it on their radar,” Antonoff says. “I definitely see it becoming a national trend.”

The NYC law could lay the groundwork for the growth of this trend. Encompassing the highest concentration of commercial hi-rises in the US…more than a million buildings spread across five boroughs…the city’s action catalyzes energy benchmarking in the nation’s largest real-estate market. Benchmarked data will be submitted to the city via the U.S. EPA‘s Star Portfolio Manager tool, a free online benchmarking program. Fines will be imposed for those that fail to upload benchmarked data into Portfolio Manager.

Finally, the story of Greener Greater Buildings Plan highlights the fact that despite all the commotion about federal climate change legislation, most of the action with respect to energy efficiency and renewable energy is occurring at the state and local level. This means that we can all have a big impact on promoting change-not just within your our own businesses, but by working together to change attitudes, influence policymakers, and promote innovation.

When you begin to think about getting involved, think nationally, think statewide-and think locally. Many issues related to sustainability and your business-from energy policy to recycling services-are addressed at a local or state level.