California CRE Owners Face New Standards, Making Benchmarking Data a Must
Commercial building owners across California, particularly those managing portfolios in the area, have been required to comply with annual energy benchmarking requirements that vary by locality and at the state level. Now, as the Golden State is moving to develop its own building performance standards, ensuring they align with new rules and existing local requirements under development by multiple jurisdictions is critical.
The result has been an annual exercise that offers little value to the owner and, in fact, takes time away from more productive work to improve building performance, according to Mike Zatz, senior vice president of global data ecosystem & partnerships for Measurabl, and a former Energy Star Manager.
"Failure to do so will create a patchwork of performance requirements that will require even more complex planning for owners, making it less likely that they will achieve the necessary goals, and in turn resulting in fewer of the emissions reductions that are sought by state officials," Zatz told GlobeSt.com.
What often slows compliance isn't the policy—it's data readiness, he contends.
"Many owners are still dealing with incomplete or inconsistent utility data while juggling multiple reporting requirements across cities," Zatz noted.
"But the ongoing growth of Building Performance Standards at both the local and state level is changing how owners approach building performance data—from a once-a-year compliance exercise with minimal negative impacts in the case of incorrect or incomplete data, to something that must be accurate, consistent, and maintained year-round to avoid potential penalties."
The goal isn't for California's building owners to just comply with regulations, but rather to leverage data to lead, proactively and strategically, according to Ben Stapleton, CEO of USGBC-CA.
"The requirements for benchmarking and performance reporting are helping to pave the way for creating a clearer, whole-building view of energy use, emissions, and operational trends," Stapleton told GlobeSt.com.
"That visibility allows owners to move from reactive compliance to proactive decision-making—identifying underperforming assets, prioritizing operational improvements, and reducing compliance risk well before deadlines arrive."
Advances in technology enable the industry to transform what was once a manual, fragmented reporting process into a continuous, portfolio-wide management process that informs smarter capital allocation and long-term operational strategy, according to Stapleton.
In California, tens of thousands of buildings are required to report energy data each year, "yet too many owners—particularly smaller office properties or naturally occurring affordable housing—still lack the systems and support to truly understand their performance," according to Stapleton.
"When data feels out of reach, compliance becomes a burden rather than a strategic opportunity. If we want better outcomes, we must start with access and education."
He said that making benchmarking data understandable and actionable is the first step toward helping these buildings improve—reducing risk, lowering costs and strengthening communities in the process.
Source: GlobeSt/ALM