You might follow the rules and still get fined under new energy benchmarking laws. That’s the reality many commercial property owners and managers now face. Across cities like New York, Boston, and San Francisco, benchmarking laws are tightening fast—and the penalties are steep. Some property owners have already been hit with fines as high as $2,000 per building, per quarter. These laws are designed to push building energy efficiency, but even small reporting mistakes can lead to big costs. If your energy data isn't submitted properly or on time, you may end up paying for it—literally.
The rollout isn’t slowing down. Over 40 major cities now enforce energy benchmarking with more joining every year. And as deadlines creep closer, so does the risk of non-compliance. In some areas, final reporting dates are just weeks away. This means now is the time to act—before you get that notice in the mail. We’ll walk you through what’s changing, which tools like benchmarking software and building management systems can help, and how green building standards are reshaping the rules. Keep reading to see if your building is on the line—and how a free consultation with our experts can help you avoid the next fine.
What’s Changing in Benchmarking Laws—and Why It Matters
Energy benchmarking laws are no longer static—they’re evolving rapidly to keep pace with climate goals and rising environmental accountability. Initially, these laws focused on basic data collection, allowing cities and building owners to understand how properties performed in terms of energy consumption. But now, many cities are going beyond just requiring raw usage figures. They're demanding greater precision, stricter reporting formats, and more frequent updates.
For example, New York City’s Local Law 84 originally mandated annual energy and water use reporting for buildings over 50,000 square feet. Today, it has been updated under the Climate Mobilization Act to include Local Law 97, which sets greenhouse gas emission limits for buildings. Similar trends are happening in Boston with BERDO 2.0 and San Francisco’s Environment Code. These updates mean that property owners must now gather more granular data, report more often, and ensure submissions are complete and timely.
Why does this matter? Because even a small oversight—like a wrong utility number or a missed filing date—can trigger significant penalties. More importantly, cities are beginning to make energy data public. Tenants, investors, and city officials can now compare your building's performance against others. If your property ranks poorly, the financial and reputational consequences could be long-term.
The Hidden Costs of Non-Compliance
Many building owners assume that as long as their operations are efficient, they’re safe from penalties. Unfortunately, that’s no longer true. Even compliant buildings are getting fined simply due to reporting errors. The penalties vary by city, but they are often recurring and significant. A missed quarterly report in some areas can lead to fines of $2,000 per building, per quarter, which quickly adds up for portfolio managers handling multiple properties.
But beyond the fines, there are deeper, less obvious risks:
Public Energy Grades: In cities like New York, buildings receive public energy efficiency scores. A low grade can deter potential tenants or buyers.
Reduced Asset Value: A poorly rated building may command a lower resale value or higher cap rate due to perceived inefficiency.
Tenant Loss: Many tenants, especially corporate and tech firms, now demand high-performance, sustainable office spaces. Falling short on energy benchmarks can lead to higher vacancy rates.
Additionally, insurance companies and lenders are beginning to incorporate energy performance into their risk models. Poor benchmarking results could increase premiums or reduce your borrowing power. In short, the cost of not complying—or complying poorly—goes far beyond a single missed deadline.
Green Building Standards Are Reshaping Expectations
Energy benchmarking laws are not evolving in isolation. They are increasingly aligned with broader green building standards like LEED (Leadership in Energy and Environmental Design), ENERGY STAR, and WELL Building Certification. These frameworks, once voluntary, are now influencing public policy and private sector expectations alike.
Cities are using these standards to define what constitutes a “high-performing building.” As a result:
Buildings that don’t meet these benchmarks may be seen as underperforming or even outdated.
Renovation and retrofit incentives are being tied to these standards, offering tax breaks or financing only to those pursuing green certifications.
Real estate investors are applying ESG (Environmental, Social, and Governance) filters, favoring assets aligned with these standards.
For commercial building owners, this means the rules of the game are changing. It’s no longer enough to simply submit reports—you need to show progress toward real efficiency. In the future, benchmarking compliance may not just be a requirement—it could become a market differentiator.
City Spotlight: What This Looks Like on the Ground
To put these concepts in context, let’s look at how top cities are enforcing their rules:
New York City
Through Local Law 97, buildings over 25,000 square feet must now meet annual carbon emissions limits. Failure to do so results in fines starting at $268 per metric ton of CO₂ over the limit. This law applies to over 50,000 buildings, making it one of the most aggressive in the country.
Boston
The city’s updated BERDO 2.0 law mandates buildings to submit annual energy and emissions reports. Starting in 2025, it will also enforce performance standards. Owners must either meet emissions limits or invest in approved mitigation efforts. Non-compliance will result in both public exposure and financial penalties.
San Francisco
Commercial buildings over 10,000 square feet must conduct energy audits every five years and file annual benchmarking reports under the Existing Buildings Energy and Water Efficiency (EBEWE) ordinance. The data is made public and can affect permitting and financing.
Across all these cities, the message is clear: energy performance is becoming central to property operations, financial planning, and competitive positioning.
Don’t Wait for the Fine—Get Ahead of Benchmarking Now
If you own or manage commercial property, the message is clear: energy benchmarking laws are getting stricter, and compliance isn’t optional. This blog explored how laws in major cities are evolving beyond simple reporting to include performance standards, real-time accuracy, and public energy scores. We covered why even small mistakes can cost thousands, how these regulations impact your building’s market value, and how new green building standards are setting the bar for what’s considered “efficient.”
The time to act is now—before missed deadlines or reporting errors put your property at risk. Don’t leave your compliance to chance. Our energy benchmarking experts are here to help you navigate local laws, improve your building’s performance, and avoid costly fines. Sign up for a free consultation today and protect your property’s value, reputation, and bottom line.
VertPro.com offers tools and services to help property owners and managers improve building energy efficiency and meet regulatory standards. Whether you're looking for instant pricing on energy audits, need support with benchmark compliance, or want to explore available building upgrade options, VertPro® provides user-friendly technology solutions to simplify the process. Their platform helps ensure adherence to over 60 Energy Benchmarking and Efficiency Laws across the country.
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