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San José Energy and Water Building Performance Ordinance (BPO) FAQ

Building Energy & Water Efficiency Compliance in San José

Welcome to our comprehensive FAQ on the San José Building Performance Ordinance. This guide is designed to help building owners understand compliance requirements, including Beyond Benchmarking, Performance and Improvement Pathways, and more. Whether you're looking to verify your building’s energy and water efficiency or enhance its performance, our team at Insight Energy Consulting is here for you.

General Information

What is the San José Building Performance Ordinance?

The Building Performance Ordinance requires owners to either demonstrate satisfactory building energy and water efficiency or implement improvement actions. This regulation aims to reduce energy and water costs, improve tenant comfort, enhance indoor air quality, and lower greenhouse gas emissions in San José.
Need expert guidance? Contact Insight Energy Consulting for personalized support.

What is Beyond Benchmarking?

Beyond Benchmarking is a key component introduced in 2023. Under this initiative, building owners must either prove their building’s energy and water efficiency or take improvement actions. The requirements roll out in annual cohorts over a 5 year period, with performance or improvement actions required every five years thereafter.
Learn more about Beyond Benchmarking by reaching out to our team.

How do I comply with Beyond Benchmarking requirements?

Compliance is achieved through one of two pathways for both water and energy:

• Performance Pathway: If your building meets key performance standards (based on benchmarking data for 2 out of the last 3 years).
• Improvement Pathway: If your building does not meet performance standards, you must complete an Audit, Retrocommissioning, or implement Efficiency Improvement Measures.
Need assistance with compliance? Schedule a consultation with Insight Energy Consulting today.

When is my building's compliance deadline?

Compliance deadlines depend on:

• The last digit of your building’s Assessor Parcel Number (APN)
• Your building’s Gross Floor Area (GFA)
For example:
• Buildings 50,000+ sq ft: Compliance began in May 2023
• Buildings 20,000–49,999 sq ft: Compliance began in May 2024, with full implementation continuing through 2028
Not sure about your deadline? Contact us to determine your compliance timeline.

Performance Pathway

What qualifies my building for the Performance Pathway?

Your building qualifies if it meets at least one of the following performance standards for 2 out of the 3 years preceding your deadline:

• ENERGY STAR score of 75 or greater
• An ENERGY STAR score improvement of 15+ points from baseline
• Site Energy Use Intensity (EUI) 25% below the mean for your property type
• A 15% or more decrease in Site EUI from baseline Similar standards apply for water efficiency qualification.
Ensure your data meets these standards—learn more about our performance verification services.

Who can verify my data for the Performance Verification Report?

A licensed professional must verify your data, meeting the following criteria:

• Not a regular employee of the property
• At least 2 years of relevant experience in verifying building benchmarking data
• Eligible to work in San José with a valid Business License or Permit
• Possessing required certifications (e.g., California Licensed PE or Architect, Qualified Auditor, or Qualified Retrocommissioning Professional)
Insight Energy Consulting meets all verification requirements. Schedule a consultation to ensure your report is accurate and compliant.

Improvement Pathway

What options do I have under the Improvement Pathway?

If your building does not meet the required performance standards, you can comply by:

• Conducting an ASHRAE Level II Energy Audit
• Performing Retrocommissioning (RCx)
Our experts can help determine the most cost-effective option for your building. Contact us for guidance.

What is an ASHRAE Level II Audit?

An ASHRAE Level II Audit offers an in-depth analysis of your building’s energy costs, usage, and characteristics. It identifies both no cost and low cost efficiency improvement opportunities and must meet or exceed ASHRAE Level II standards for compliance.
Our certified energy auditors deliver comprehensive ASHRAE Level II Audits. Learn more about our audit services.

What is Retrocommissioning?

Retrocommissioning (RCx) is a systematic process to optimize existing building systems, ensuring they operate efficiently according to the owner’s needs. With a typical payback period of less than 3 years, RCx is a cost effective way to boost energy efficiency.
Optimize your building systems with our RCx services. Contact Insight Energy Consulting for more details.

Compliance and Requirements

Do I need to implement audit recommendations to comply?

While you are not required to implement all audit recommendations, doing so is highly encouraged to lower energy/water consumption and reduce utility costs. Note that an audit alone will not boost your benchmarking scores.
Our consultants can help you prioritize recommendations based on ROI and available incentives. Learn more about our strategic planning services.

Do I still need to report my building's energy and water use annually?

Yes, annual reporting remains mandatory for all buildings under the ordinance. Beyond Benchmarking requirements are separate and do not alter the annual benchmarking timelines or obligations.
If you’re struggling with reporting, contact us to manage your ongoing compliance.

Is there a penalty for non compliance?

Yes. Penalties vary based on building size:

• Buildings under 50,000 sq ft: $25 per day (up to $2,500 per year)
• Buildings 50,000+ sq ft: $50 per day (up to $5,000 per year)
Avoid costly fines—let Insight Energy Consulting help you maintain timely compliance. Get in touch today.

Can I get an extension or exemption?

Extensions of up to 180 days may be available.
Exemptions may apply if your building:

• Has a gross floor area under 20,000 sq ft
• Is zoned exclusively industrial
• (For water only) Is a residential property under 50,000 sq ft without water sub-metering
Wondering if you qualify for an extension or exemption? Contact our experts for a detailed review.

Tools and Resources

What is the ENERGY STAR score and how is it calculated?

An ENERGY STAR Score (1 100) is generated by EPA’s ENERGY STAR Portfolio Manager. It compares your building’s efficiency with similar properties in comparable climate zones. A score of 75 or higher qualifies for the Performance Pathway and ENERGY STAR Certification.
Improve your score with our strategic energy management services. Learn more.

How can I find service providers for audits, retrocommissioning, or data verification?

The City of San José maintains a list of qualified professionals for Beyond Benchmarking compliance. Any provider not on this list must submit documentation proving they meet the required qualifications.
Insight Energy Consulting is on the City’s approved list. contact us for all your service needs.

What are the long term benefits of the Building Performance Ordinance?

Benefits include:

• Reduced energy and water costs
• Increased property value
• Improved tenant comfort and indoor air quality
• Enhanced energy and water conservation
• Reduced greenhouse gas emissions
Maximize these benefits with our expert guidance. Schedule a consultation today.

Where can I find more information and assistance?

For more detailed information:

• Visit the official page at sjenvironment.org/beyond benchmarking
• Email: benchmarking@sanjoseca.gov
• Call: 408 975 2540
• For ENERGY STAR Portfolio Manager support, visit energystar.gov/portfoliomanager
For personalized assistance, contact Insight Energy Consulting directly.

Can I comply before my building's deadline?

Yes. You may complete improvement actions up to five years before your compliance deadline, provided they are not linked to a previous pending deadline. Forms become available starting in March of your deadline year.
Get ahead of compliance—contact us to develop a proactive strategy.

What other cities have similar building performance regulations?

Cities like New York, San Francisco, and Los Angeles have adopted similar energy and water efficiency regulations. Our team has extensive experience in multi city compliance and can assist with regulations across jurisdictions.
For multi city compliance assistance, reach out to our experts today