Honolulu Better Buildings Benchmarking: A Compliance Guide for Businesses (Ordinance 22-17)

Understanding Honolulu's Commitment to Sustainable Buildings

Honolulu has established itself as a leader in energy efficiency and climate action through the Better Buildings Benchmarking Program, enacted under Ordinance 22-17. Signed into law by Mayor Blangiardi on July 20, 2022, this program requires large commercial and multifamily buildings across Oahu to benchmark and report their energy and water consumption annually.

The program is a cornerstone of the City and County of Honolulu's Climate Action Plan, which targets net negative emissions by 2045. With the building sector accounting for roughly one-third of Oahu's total greenhouse gas emissions, benchmarking is expected to reduce electricity consumption in large buildings by nearly 7% by 2030.

For businesses operating in Honolulu, understanding and preparing for these requirements is essential to avoid penalties and contribute to the island's sustainable future.

What Is the Honolulu Better Buildings Benchmarking Program?

The Better Buildings Benchmarking Program mandates that owners of large commercial and multifamily buildings track and report their whole-building electricity, gas, and water usage annually through ENERGY STAR Portfolio Manager. Unlike voluntary energy efficiency initiatives, this is a mandatory compliance program with enforcement mechanisms.

Key Requirements Under Ordinance 22-17:

1. Building Size Threshold: All commercial and multifamily buildings 25,000 square feet or larger must comply.
2. Reporting Platform: Data must be submitted through ENERGY STAR Portfolio Manager.
3. Utilities Required: Electricity, natural gas, district energy, water, and any other purchased fuel.
4. Unique Building ID: Each covered building receives an Oahu Building ID for tracking and reporting.
5. Public Transparency: Benchmarking data is published on the City's Buildings Transparency Map.

Compliance Deadlines and Phased Implementation

Honolulu implemented a phased approach to give building owners time to prepare:

Building Size And Compliance Deadline

1. 100,000+ sq ft: Deadline of June 30, 2023
2. 50,000+ sq ft: Deadline of June 30, 2024
3. 25,000+ sq ft: Deadline of September 30, 2025

Building owners must report 12 calendar months of whole-building data. For example, in 2025, owners must report their 2024 utility consumption data.

Who Must Comply With Honolulu's Benchmarking Ordinance?

The ordinance applies to a wide range of property types across Oahu:

• Office buildings and corporate facilities.
• Retail spaces and shopping centers.
• Hotels and hospitality properties.
• Multifamily residential buildings (apartments, condominiums).
• Mixed-use developments.
• Industrial and warehouse facilities.
• Healthcare facilities and medical centers.
• Educational institutions.

Property owners can check the City's Covered Buildings List to verify if their building is included and obtain their unique Oahu Building ID for reporting.

Exemptions From Reporting

Your building may qualify for an exemption if:

1. The property did not have a certificate of occupancy for the entire benchmarking year
2. A demolition permit was issued and work commenced before the reporting deadline
3. The property did not receive utility services for more than 30 days during the year

Building owners seeking exemptions must complete an Exemption Request Form with supporting documentation.

Penalties for Non-Compliance

The Director of Planning and Permitting may issue a notice of order requiring compliance and impose the following penalties:

• Initial Fine: Up to $1,000
• Daily Fine: $100 per day for each day benchmarking information is not reported
• Maximum Annual Penalty: $5,000 per facility per reporting year

Additionally, knowingly submitting false benchmarking reports or data is punishable by a $500 fine plus prosecution costs.

How Businesses Can Achieve Compliance

1. Verify Your Building's Status

Check the City's Covered Buildings List to confirm whether your property is subject to the ordinance and obtain your Oahu Building ID.

2. Set Up ENERGY STAR Portfolio Manager

Create an account in ENERGY STAR Portfolio Manager, the required platform for submitting benchmarking data. Input your building characteristics including gross floor area, building use type, year built, and operating hours.

3. Gather Utility Data

Collect 12 months of utility consumption data for electricity, natural gas, water, district energy (if applicable), and any other purchased fuels. Contact your utility providers to obtain historical consumption records.

4. Implement Energy Monitoring Technology

Manual data collection is time-consuming and error-prone. IoT-based wireless energy monitoring systems provide real-time visibility into building performance, automate data collection, and ensure accurate reporting. Advanced energy management platforms can integrate directly with ENERGY STAR Portfolio Manager, streamlining the compliance process.

5. Submit Reports by the Deadline

Ensure all required data is submitted by the applicable deadline. Calendar year 2024 data must be submitted by September 30, 2025 for buildings 25,000 square feet and larger.

The Connection to Hawaii's Clean Energy Goals

Honolulu's benchmarking program supports Hawaii's broader sustainability objectives:

1. 100% Renewable Energy by 2045: Hawaii was the first state to legally mandate 100% renewable portfolio standards
2. Carbon Neutrality by 2045: The state aims for net-zero greenhouse gas emissions economy-wide
3. 70% GHG Reduction by 2035: Executive Order 25-01 accelerates Oahu's electricity sector emissions reductions

By benchmarking energy performance, building owners contribute to these goals while gaining actionable insights to reduce consumption and costs.

Benefits of Compliance Beyond Avoiding Penalties

A) Cost Savings Through Efficiency

Buildings that benchmark their energy use consistently identify opportunities for efficiency improvements. Studies show that benchmarked buildings reduce energy consumption by 2-3% annually through awareness alone, with greater savings when paired with efficiency upgrades.

B) Enhanced Property Value

Energy-efficient buildings command premium rents and higher property values. Transparent energy performance data attracts environmentally conscious tenants and investors.

C) Competitive Advantage

As Hawaii moves toward 100% clean energy, businesses demonstrating sustainability leadership gain competitive advantages in attracting customers, employees, and partners.

D) Participation in Utility Programs

Benchmarking data positions buildings to participate in Hawaii Energy's incentive programs and demand response opportunities, generating additional revenue streams.

How Technology Enables Seamless Compliance

Modern energy management and IoT solutions transform benchmarking from a compliance burden into a strategic advantage. Key capabilities include:

1. Real-Time Energy Monitoring:

Wireless sensors and smart meters provide continuous visibility into electricity, gas, and water consumption across all building systems.

2. Automated Data Collection:

IoT platforms automatically aggregate utility data, eliminating manual data entry errors and reducing administrative burden.

3. ENERGY STAR Integration:

Advanced platforms integrate directly with ENERGY STAR Portfolio Manager, automating the submission process.

4. Anomaly Detection:

AI-powered analytics identify unusual consumption patterns, enabling rapid response to equipment failures or energy waste.

5. Demand Response Participation:

Connected building systems can automatically reduce load during peak demand periods, earning incentives from utilities.

6. Compliance Dashboards:

Centralized reporting shows real-time compliance status, upcoming deadlines, and historical performance trends.

Sanalife's E360 Energy Monitoring and Management Software provides these capabilities in a unified platform designed specifically for building performance compliance. E360 enables businesses to benchmark efficiently, identify savings opportunities, participate in demand response programs, and demonstrate sustainability leadership—all while reducing operational costs.

Preparing for Honolulu's Benchmarking Requirements

With compliance deadlines in effect, Honolulu building owners must act now to:

1. Verify building coverage and obtain Oahu Building ID
2. Establish ENERGY STAR Portfolio Manager accounts
3. Implement energy monitoring systems for accurate data collection
4. Submit benchmarking reports by applicable deadlines
5. Use performance insights to drive efficiency improvements

Proactive compliance not only avoids penalties but positions businesses to benefit from lower energy costs, enhanced property values, and leadership in Hawaii's clean energy transition.

The City's Buildings Transparency Map already displays benchmarking data from buildings over 50,000 square feet, public visibility that rewards high-performing buildings and motivates improvement across the market.

By embracing benchmarking requirements today, Honolulu businesses contribute to Oahu's resilient, sustainable future while strengthening their own operational and financial performance.