DC’s BEPS Update: Performance Requirements and Revised Penalty Structure

June 10, 2021

Scott Emery, PE, SVP, Head of Washington, D.C. Office and BEPS Subject Matter Expert

2 mins

2 min read

The DC Department of Energy & Environment (DOEE) is continuing its work on the Building Energy Performance Standards (BEPS) and as it is getting closer to finalization, it is time for another update.

After posting the 2021 Building Energy Performance Standards on January 1, 2021, in the DC Register and incorporating public comments, the 2021 BEPS Establishment Regulations were finalized and published on April 30, 2021.

Starting on page 72, the regulation includes the performance targets per property type based on ENERGY STAR score (for buildings that received a score) and Source EUI (for buildings that did not receive an ENERGY STAR score). The performance requirements of the first compliance cycle for the most common property types in the District are shown in the table below. The source EUI for Each College/University Campus is listed on page 75 of the 2021 BEPS Establishment Regulations. DOEE shared a document about how the property type groups, metrics, and standards were developed. The guide can be accessed here.

Proposed Changes to Penalty Structure

While the performance standard requirements remained unchanged and most adjustments were clarifications on wording, a new proposed penalty Structure was presented at the March Task Force meeting. Instead of assigning buildings to just 1 of 6 groups defined by building size, the proposed penalty structure would be set on 10,000 ft² increments at a rate of $10 per square foot. For example, the maximum penalty for a building between 50,000 ft² and 60,000 ft² would be $500,000; a building between 60,000 ft² and 70,000 ft² would face a maximum penalty of $600,000 and so on up to a maximum of $7.5 MM for a 750,000-sf building!

Another important revision is related to the Standard Target Pathway and the potential for a pre-adjustment factor that would lower maximum penalties for properties that have scores near to the standard target. This update recognizes and rewards buildings that perform well but come up a little short to meet the BEPS for the building type.

Outlook

While DOEE is working on refining the rules, it is clear that this policy is moving forward and that property owners with non-compliant properties will have to take measures to reduce energy use. In virtually every case, reducing energy use will begin with an energy use assessment and audit. The demand for these services is already on the rise. So, the savvy building owners are already at work planning which pathway to take and how to reduce their building energy use.