Chicago's Energy Benchmarking Ordinance requires commercial and multifamily buildings to track and report energy performance annually. This guide outlines compliance requirements and deadlines, and how benchmarking, energy audits, and strategic upgrades cut costs and meet regulatory obligations.
Chicago is a leader in urban sustainability, and its Energy Benchmarking Ordinance is a key component of its climate strategy. The ordinance requires large commercial, institutional, and residential buildings to track and report energy consumption to improve efficiency, reduce emissions, and increase transparency.
For businesses and building owners, compliance with the ordinance is mandatory. More than just a regulatory requirement, benchmarking provides valuable insights into energy performance, helping owners identify inefficiencies and cost-saving opportunities.
The ordinance applies to:
Buildings that meet these criteria must comply with annual energy reporting requirements and periodic data verification.
Building owners must report energy consumption annually using the ENERGY STAR Portfolio Manager, a tool that allows businesses to compare energy use against national benchmarks.
Benchmarking involves:
To ensure data accuracy, buildings must undergo third-party verification by a licensed professional every three years. This process confirms that the reported data aligns with actual energy use and helps identify discrepancies or errors in reporting.
Chicago publicly shares energy performance scores for buildings covered by the ordinance. This disclosure encourages property owners to improve efficiency and gives tenants, investors, and policymakers insight into building sustainability.
Failure to meet these deadlines can result in fines and enforcement actions by the city.
Start by collecting 12 months of energy use data from your utility providers. If tenants have separate utility accounts, coordinate to obtain their consumption data.
Use the Portfolio Manager tool to enter energy data. The system calculates a performance score and provides insights into energy efficiency.
If your building is due for verification, hire a licensed professional (such as a professional engineer or certified energy manager) to review and approve your benchmarking report.
Ensure that your benchmarking report is submitted before the June 1 deadline to avoid penalties.
Compliance with the ordinance does more than fulfill legal obligations—it provides actionable insights that can help businesses reduce costs and improve sustainability.
Benchmarking allows building owners to compare their energy use with similar properties, revealing underperforming systems and opportunities for efficiency upgrades.
Improving energy efficiency leads to lower utility bills. Simple upgrades like HVAC system optimization, lighting retrofits, and automated building controls can deliver significant cost savings.
Energy-efficient buildings are more attractive to tenants, buyers, and investors. Public energy disclosure incentivizes property owners to improve performance, boosting market competitiveness.
Invest in high-efficiency HVAC, LED lighting, and smart building controls to lower energy consumption. Retrofitting aging equipment can yield immediate performance gains.
Participate in utility demand response programs that reduce peak electricity demand and lower costs. Smart energy management can help optimize building operations.
Transitioning from natural gas to electric heating and cooling improves sustainability and aligns with Chicago’s broader emissions reduction goals.
Consider on-site solar panels or purchasing renewable energy credits (RECs) to offset energy consumption.
Buildings that fail to submit benchmarking reports face fines of up to $100 per violation, with additional daily penalties of $25 per day until compliance is achieved.
Chicago offers financial assistance to help building owners improve energy efficiency and meet benchmarking requirements:
ComEd and Peoples Gas offer rebates for lighting, HVAC upgrades, and energy efficiency projects.
Provides low-interest financing for energy efficiency improvements and renewable energy installations.
The city offers training workshops and one-on-one support for property owners navigating the compliance process.
Meeting benchmarking requirements is more than just a legal obligation it’s a smart business decision. Key benefits include:
Reducing energy waste translates to significant cost savings.
Data-driven insights help optimize operations and extend equipment lifespan.
High-performing buildings attract better tenants and higher resale values.
Timely compliance prevents costly penalties and enforcement actions.
If your building is subject to Chicago’s Energy Benchmarking Ordinance, take proactive steps to ensure compliance:
By staying ahead of compliance requirements, your business can reduce costs, improve efficiency, and contribute to Chicago’s climate goals.
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