Building Performance Codes and Ordinances -- A Mandate for Commercial and Larger Multifamily Building Owners to Decarbonize

Gregory King, Managing Director, TSK Energy Solutions LLC, Guest Writer for the MassCEC Blog

Aerial view of large buildings in Boston

In Massachusetts, building performance regulations are primarily governed by the state's building energy codes and local emission ordinances, which are designed to enhance energy efficiency and reduce greenhouse gas emissions. The energy codes, along with the local ordinances, shape the regulatory landscape.

Massachusetts Energy Codes

The state currently references three levels of energy codes, each with increasing levels of stringency. Here’s a summary of the key components:

  1. Base Energy Code: The current Base Energy Code is the 10th edition of the Massachusetts State Building Code, which incorporates the 2021 International Energy Conservation Code (IECC) with Massachusetts-specific amendments.
  2. Stretch Energy Code: The Stretch Code is mandatory for municipalities seeking designation as a Green Community under the Green Communities Act. It emphasizes energy performance rather than prescriptive requirements, aiming for cost-effective construction that is more energy-efficient than the Base Code. The Stretch Code is typically updated every few years to align with the most recent version of the IECC.
  3. Specialized Energy Code: The Specialized Code is a municipal opt-in code designed to ensure new construction aligns with Massachusetts' greenhouse gas limits and sub-limits set every five years from 2025 to 2050. It is essentially an enhanced version of the Stretch Code, with stricter requirements aimed at achieving higher energy efficiency and sustainability.
    1. Residential Low-Rise Construction
      1. Mixed-Fuel Homes 4,000 SF or Under: Must be pre-wired for electrification and install on-site solar PV when following the Stretch Code HERS pathway, with exemptions for shaded sites
      2. Mixed-Fuel Homes Over 4,000 SF: Must achieve HERS 0 or Phius ZERO requirements, be pre-wired for electrification, and meet Zero Energy Ready Home standards
    2. Commercial Construction: Similar enhancements and additional requirements are applied to commercial buildings to ensure higher energy performance and sustainability

These codes are updated regularly to stay in line with the latest energy efficiency standards and to support the state's climate goals. The most recent updates took effect in February 2025.

What Are Building Emissions Reduction and Disclosure Ordinances?

Building Emissions Reduction and Disclosure Ordinances (BERDOs) are local laws designed to reduce greenhouse gas emissions from large buildings. These ordinances typically require building owners to report their annual energy and water consumption and comply with emissions reduction targets over time. Here are some key aspects of BERDOs:

Key Components

  1. Annual Reporting: Building owners must report their building’s energy and water usage each year, often using tools like the ENERGY STAR Portfolio Manager.
  2. Third-Party Verification: Reported data must be verified by a third party in the first reporting year and periodically thereafter.
  3. Emissions Standards: Buildings must meet emissions reduction targets that become more stringent over time, aiming for significant reductions in greenhouse gas emissions.

Impact on Building Owners

  • Operational Changes: Building owners may need to invest in energy efficiency upgrades and retrofits.
  • Financial Implications: Upfront costs can be offset by available incentive programs and long-term savings can be realized through reduced energy consumption.
  • Regulatory Compliance: Staying informed and proactive is crucial to avoid penalties for non-compliance.

In Massachusetts, several municipalities have enacted BERDOs to address greenhouse gas emissions from large buildings. Here are a couple of notable examples:

  • City of Boston's BERDO: BERDO is a local law in Boston aimed at reducing greenhouse gas emissions from large buildings to achieve net-zero emissions by 2050. Boston's BERDO is one of the most comprehensive in the state. It requires owners of large buildings to report their annual energy and water consumption and comply with progressively stringent emissions standards 
  • City of Cambridge BEUDO: The City of Cambridge has implemented the Building Energy Use Disclosure Ordinance (BEUDO) to address greenhouse gas emissions from large buildings. BEUDO requires owners of large buildings to report their annual energy and water consumption and comply with emissions reduction targets. The ordinance aims to reduce Cambridge's greenhouse gas emissions, with a focus on commercial, institutional, and large multifamily buildings.
  • City of Newton BERDO: Newton's BERDO was passed by the City Council in December 2024. This ordinance aims to significantly reduce greenhouse gas emissions from large buildings in the city, contributing to Newton's goal of achieving net-zero emissions by 2050.

These ordinances are part of Massachusetts' efforts to reduce carbon emissions and promote sustainable building practice.

Building Performance Codes vs. Building Emissions Disclosure Ordinances

Building Performance Codes and BERDOs are both important tools for improving energy efficiency and reducing greenhouse gas emissions in buildings, but they serve different purposes and have distinct requirements. Here’s a breakdown of the differences:

Building Performance Codes

  • Scope: Primarily apply to new construction and major renovations
  • Focus: Set minimum energy efficiency standards for building design and construction
  • Implementation: Enforced through the building permitting process. Compliance is required for obtaining building permits and certificates of occupancy
  • Examples: The Massachusetts State Building Code, which incorporates the International Energy Conservation Code (IECC) with state-specific amendments

BERDOs

  • Scope: Target existing buildings, particularly large commercial, institutional, and multifamily buildings.
  • Focus: Require annual reporting of energy and water usage and set emissions reduction targets over time.
  • Implementation: Building owners must report their data annually and comply with progressively stringent emissions standards. Non-compliance can result in penalties.
  • Examples: Boston's BERDO, Cambridge's BEUDO, and Newton’s BERDO, which require large buildings to report their energy use and meet emissions reduction targets.

Key Differences

  • Application: Building Performance Codes are mainly for new buildings and major renovations, while BERDO focuses on existing buildings.
  • Requirements: Performance Codes set design and construction standards, whereas BERDO mandates ongoing reporting and emissions reductions.
  • Enforcement: Performance Codes are enforced through the permitting process, while BERDO involves annual reporting and compliance checks.

Both approaches are crucial for achieving energy efficiency and sustainability goals, but they address different stages of a building's lifecycle.

Why decarbonization planning by building owners is critical to managing the cost of compliance with Building Performance Ordinances

Decarbonization planning is essential for building owners to manage the cost of compliance with Building Performance Ordinances (BPOs) for several reasons:

  1. Cost Efficiency: Proactive decarbonization planning allows building owners to identify and implement energy-efficient upgrades and retrofits over time, spreading out costs and avoiding the financial burden of last-minute compliance
  2. Avoiding Penalties: Many BPOs impose fines for non-compliance. By planning ahead, building owners can ensure they meet the required standards and avoid these penalties
  3. Access to Incentives: Governments often provide financial incentives, grants, and subsidies for early adopters of energy-efficient technologies. Planning ahead enables building owners to take advantage of these opportunities
  4. Operational Savings: Energy-efficient buildings typically have lower operating costs due to reduced energy consumption. These savings can offset the initial investment in decarbonization measures over time
  5. Market Competitiveness: Buildings that meet or exceed performance standards can attract tenants and buyers who prioritize sustainability, potentially increasing property value and occupancy rates
  6. Regulatory Compliance: As regulations become stricter, having a decarbonization plan in place ensures that building owners are prepared for future requirements, reducing the risk of non-compliance

By integrating decarbonization strategies into their long-term planning, building owners can manage costs more effectively, enhance their properties' value, and contribute to broader environmental goals.

Massachusetts Clean Energy Center’s Building Electrification and Transformation Accelerator (BETA): Project Planning Pilot

MassCEC’s BETA: Project Planning pilot seeks to surface and prove out the technical, implementation, and financial models to serve as the basis for electrification and decarbonization of the commercial buildings sector. The pilot provides no cost, in-depth building audits to support commercial and large multifamily building owners in planning electrification and decarbonization retrofits. These plans will help participating building owners navigate and plan for decarbonization and meet or exceed the requirements of local codes and ordinances.

To learn more about the pilot, visit: masscec.com/program/beta-project-planning

 

The views expressed in this guest post are those of the author and do not necessarily reflect the official policy or position of the Massachusetts Clean Energy Center.