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Futuristic City

Building Energy Performance Standards ("BEPS")

Building Energy Performance Standards (BEPS) is a policy that requires building owners to meet performance targets by actively improving their buildings over time or face stiff fines for non-compliance.  Cities, counties, and states around the country (including Montgomery County and Maryland) are adopting similar legislation to meet their sustainability and carbon reduction goals, consequently putting increased pressure on building owners already strained in recent years.

However, forward looking CRE owners and asset managers that adopt strategies to manage their investments using these trends to their advantage will separate themselves from their competitors and thrive.  



The BEPS regulations were enacted to gradually reduce the carbon footprint of the District's buildings in alignment with the city's goal to bring about a 50% reduction of greenhouse gases by 2032.  Since the BEPS are based on a local median EnergyStar score, approximately half of the buildings in DC are performing below the BEPS initial target.  Starting January 1, 2021, private buildings larger than 50,000 gross square feet are required to achieve the BEPS target for their building category.

Penalties for non-compliance are steep, up to $10 per square foot.  Buildings that are not complaint as of January 1, 2021, will need to select one of four compliance pathways by April 3, 2023, leaving little time for building owners to confirm their current building energy performance and to determine a cost-effective strategy to meet compliance and avoid fines.  Every 6 years there will be a new cycle of BEPS with even stricter energy performance requirements, until DC meets its carbon reduction goals.

Bauer Energy is under contract to educate about BEPS and is trained and qualified to provider educational sessions, to speak at events, and give seminars on the topic.  We have intimate knowledge of the program and its ongoing development through relationships in the DC Department of Energy & Environment. 

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