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This memorandum provides a status report on the San José Energy and Water Building Performance Ordinance, which was adopted in 2018 to enhance energy and water efficiency in large buildings. It outlines compliance requirements for Covered Buildings, data analysis on energy and water usage, and greenhouse gas emissions reductions. The report highlights compliance rates, the impact of the ordinance, and planned next steps for enhancing services and support for building owners. It also discusses options for future consideration to improve the ordinance.
Key points
The ordinance requires annual reporting of energy and water usage for commercial and multi-family buildings over specified sizes.
As of 2024, the building sector accounts for 29% of San José's greenhouse gas emissions.
The average benchmarking compliance rate from 2023-2025 was 87%, with a Beyond Benchmarking compliance rate of 71%.
Since 2019, median greenhouse gas emissions per building have decreased by 35%.
The City applies a fee to Covered Buildings to fund the ordinance's implementation.
Future steps include enhancing services for building owners and evaluating potential program redesigns.
Limitations
The document includes unresolved placeholders and lacks specific details such as exact dates for future actions.
The text appears to be a draft, as indicated by the inclusion of 'draft' language and formatting.
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T&E AGENDA: ITEM: 6/8/26 (d)4 TO: TRANSPORTATION AND FROM: Lori Mitchell ENVIRONMENT COMMITTEE SUBJECT: Energy and Water Building Performance Ordinance Status Report Approved DATE: May 18, 2026 Date: 5/26/2026 RECOMMENDATION Accept this status report on the San José Energy and Water Building Performance Ordinance. BACKGROUND In 2018, the San José City Council adopted the City’s Energy and Water Building Performance Ordinance (“Building Performance Ordinance”), the first City policy supporting its Climate Smart San José goals to reduce greenhouse gas emissions and increase energy and water efficiency in existing buildings. The ordinance requires commercial and multi-family buildings 20,000 square feet or larger (“Covered Buildings”) and City-owned buildings 15,000 square feet or larger (“Covered Buildings”) to annually report energy and water usage through the Environmental Protection Agency’s Energy Star Portfolio Manager®, a free online tool, by May 1 each year. Starting in 2023, a subset of Covered Buildings each year must also meet specific performance metrics every five years or choose to implement from a list of specific improvements if they fall short (known as “Beyond...
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Attachment A presents a detailed trend analysis of CO2e emissions and resource use in properties complying with the Building Performance Ordinance (BPO) from 2019 to 2024. It includes trends in emissions by utility type and property type, as well as energy and water conservation metrics. Overall, median energy, electricity, natural gas, and water use have decreased since 2019, although there are indications of increases in certain areas in 2023 and 2024.
Key points
CO2e emissions from electricity were decreasing but began to rise again.
Natural gas emissions spiked in 2023 but fell in 2024.
Total emissions were falling but increased between 2023 and 2024.
Median total energy use decreased by 32%, electricity by 23%, natural gas by 31%, and water by 25% since 2019.
Median Energy Star Score has increased steadily since 2019.
Median energy use intensity has decreased but plateaued in 2022.
Median water use intensity has decreased but started to increase again in 2024.
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Attachment A - Building Performance Ordinance Detailed Trend Analysis Figure 1 below shows CO2e emission (metric tonnes) trends by utility type (electricity, water, and natural gas), summarized from all properties that comply with the BPO from calendar year 2019 through 2024. Emissions from electricity were falling but are now climbing again. Emissions from natural gas spiked in 2023 but fell again in 2024. And total emissions were steadily falling but began to increase again between 2023 and 2024. Figure 1 Figure 2 below shows CO2e emission (metric tonnes) trends by property type (commercial or multi-family), summarized from all properties that comply with the BPO. From calendar year 2019 through 2024. Across both property types we see a decrease in emissions from the start of the ordinance but an uptick beginning again between calendar year 2023 and 2024. 1 Figure 2 Energy and Water Conservation Since calendar year 2019, in BPO-covered properties: Median total energy use has decreased by 32 percent Median electricity use has decreased by 23 percent Median natural gas use has decreased by 31 percent Median water use has decreased by 25 percent Figure 3 below shows that...
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Attachment B provides a comparison of U.S. commercial building energy benchmarking and transparency policies across various states and cities. It includes details such as the year enacted, number of buildings covered, square footage, reporting schedules, and enforcement measures. The document outlines the requirements for different types of real estate and the penalties for non-compliance.
Key points
Comparison of energy benchmarking policies across various U.S. states and cities.
Includes year enacted, number of buildings, and square footage.
Details reporting schedules and types of real estate covered.
Outlines enforcement measures and penalties for non-compliance.
Limitations
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Attachment B - Comparison of U.S. Commercial Building Energy Benchmarking and Transparency Policies Comparison of U.S. Commercial Building Energy Benchmarking and Transparency Policies January 2026 Government State/City/County CA CO Policy Information Year Enacted 2015 2021 # of Bldgs 495,00 8,800 Sq. Ft. 4B 1.2B Policy Schedule Covered Bldgs List Available Types of Real Estate and Sizes (Sq. Ft.) No Yes Reporting to Gov’t Transparency Comm ≥ 50,000, MF ≥ 50,000 and 17 or more residential utility accounts June 1, Annual After June 1, Annual Comm, MF, & Public/Gov’t ≥ 50,000 June 1, 2025. November 1 annually, starting in 2026 with 2025 benchmarking year data. Annual, Date TBD Time of sale or lease Additional Elements Status Updates Water Tracking Enforcement Benchmarking Data Available TRUE The Commission has the authority to institute civil fines of up to $2,000 for non-compliance, after allowing a 30-day period to correct a violation. See here FALSE A building owner who fails to submit a benchmarking report, waiver request, or the corresponding fee ($100/building by June 1), will be considered non-compliant and subject to civil penalties of $500 for the first violation and...