Building Performance Standards (BPS) are being implemented in cities, counties, and states across the country. These standards are very familiar to developers in early-adopter cities like New York, but in other places, developers may just be starting to hear rumblings about them. Rest assured, even if you haven’t heard much about them, you will.
A BPS policy is a set of standards designed to reduce carbon emissions in buildings. The policies require improved energy and water use – in other words, energy and water efficiency which reduces carbon emissions from fossil fuels. These standards become stricter over time with the goal of driving continuous, long-term improvement in the building stock. The BPS work in conjunction with local building energy codes. BPS won’t replace building energy codes but will create additional requirements to complement local codes.
According to the Institute for Market Transformation (www.imt.org), “leading-edge states and local governments are shifting to mandatory building performance policies. The most powerful of these is a building performance standard (BPS).” The National BPS Coalition, made up of over 50 cities and counties from across the country, has pledged to pass BPS by Earth Day 2024. In other words, Building Performance Standards are coming soon to a municipality near you! You can view the map of participating municipalities here.
PACE Equity provides an excellent funding tool for building renovations and improvements such as those required by BPS. The required renovations won’t just meet local requirements – they will result in improved occupancy rates and higher property values PLUS improved operating incomes due to lower energy costs. Remember, tenants want energy efficient and healthy buildings in which to live and work.
PACE Equity funding delivers the same wins for your development projects – higher value properties and happier tenants who benefit from energy efficient spaces. Our CIRRUS Low Carbon offering, with lower rates when you build or renovate to a higher efficiency level, can be the ideal fit for your next project. Get ahead of the BPS requirements coming soon to your area and talk to a PACE Equity Managing Director today to deliver what your tenants want and your operating budget needs.
PACE Equity Funds Efficiency Measures to Meet Building Performance Standard in New York City
The Brooklyn United Methodist Church Home recently met the BPS requirements by reducing its carbon emissions by 5,265 metric tons. Local Law 97, which became effective on November 15, 2019, sets limits on the carbon emissions for commercial buildings starting in 2024 to help New York City reach the goal of a 40 percent reduction in greenhouse gas emissions from buildings by 2030 and net zero by 2050.
