The San Francisco Existing Commercial Buildings Energy Performance Ordinance requires owners of nonresidential buildings to annually measure and disclose benchmark summaries and have energy efficiency audits conducted on their properties.

Building audits have already begun for 1/3 of the entire building stock. Larger buildings (>50,000ft2 ) are required to benchmark first and benchmarking summaries will be published in spring of 2012. By 2014, all buildings >10,000 ft2 will be participating in annual benchmarking, have received an initial audit and will be on schedule to receive an audit once every five years thereafter. A visual timeline and flowchart is provided in the Resources section.

Ensuring that building stakeholders are aware of their relative performance encourages owners to make cost-effective energy efficiency upgrades. These actions directly mitigate climate change, as building energy use accounts for over half of overall carbon dioxide emissions citywide.

Building owners submit benchmark reports annually using Energy Star Portfolio Manager, a free US EPA online tool. Portfolio Manager assesses energy consumption and efficiency normalized for building characteristics, issuing a rating from 1-100. For buildings that do not obtain an Energy Star rating, the building’s Energy Use Intensity (kBtu/sq ft/year) or Weather Normalized Energy Use Intensity (kBtu/sq ft/year based on regional climate) is used to rate the building’s overall efficiency. Annual benchmarks allow comparisons between buildings.

Building audits must meet or exceed the American Society of Heating, Refrigeration, and Air Conditioning Engineers (ASHRAE) requirements, and be conducted by a qualified auditor. The complexity of the audit varies with the size, intricacy and use of each building. Audits include environmental findings that reveal how site-appropriate retrofits can save energy and money. Conducting the audit is mandatory, but implementation of any suggested retrofits is voluntary. Confirmation that audits have been conducted is published, but details of audit performance are kept confidential.

Having made a $35M 10-year investment in efficiency upgrades to municipal buildings, San Francisco plans to lead by example. This ordinance gives the public information about potential further carbon dioxide reductions. Free webinars and 2-day in-class workshops help building owners learn about options and benefits. The Department of Environment also provides direct assistance to those interested in efficiency incentives and rebates. There has been no significant public opposition, as the ordinance is based on recommendations from the Mayor’s Existing Commercial Building Task Force, comprised mainly of industry stakeholders.

This ordinance is expected to result in a doubling of energy retrofits over five years, resulting in a reduction of carbon dioxide emissions by more than 70,800 tons, with a value that will exceed $600M. 70% of audited businesses in similar programs have conducted retrofits.

San Francisco dedicates two full-time employees for report processing and compliance tracking. There are no other significant costs associated with the Program.

Non-compliance fines are not expected to be a significant revenue source. After 30 days, a written notice is issued for failure to report. If the building remains out of compliance for an additional 45 days, owners are subject to $50-$100/day fines depending on building size.