Massachusetts Building Energy Reporting and Performance Standards: What Businesses Need to Know

Massachusetts is taking significant steps toward reducing greenhouse gas (GHG) emissions and improving building energy efficiency. To support this effort, the state has implemented Building Energy Reporting and Performance Standards (BERDO 2.0), which require large commercial and multifamily buildings to track, report, and reduce energy use.

If you own or manage a building over 20,000 square feet, you need to understand these new requirements and take steps to ensure compliance while optimizing building operations and reducing costs.

What Are Building Energy Reporting & Performance Standards?

Building Energy Reporting and Performance Standards (BERDO 2.0) require building owners to measure, report, and improve energy performance over time. These regulations aim to:

• Reduce energy waste and emissions from existing buildings.
• Encourage efficiency upgrades through required performance improvements.
• Increase transparency by making energy data publicly available.
• Support the state’s 2050 net-zero emissions goal by phasing in stricter energy and emissions limits.

Massachusetts’ building energy reporting requirements align with broader Building Performance Standards (BPS) being implemented across the country, helping cities and states transition to cleaner, more efficient building stock.

Who Must Comply To Massachusetts Building Performance Standards?

Massachusetts’ Building Energy Reporting and Performance Standards apply to:

• Commercial buildings over 20,000 square feet.
• Multifamily residential buildings with 15 or more units.
• Municipal buildings over 20,000 square feet.

Building owners must submit annual energy data and meet future performance improvement targets.

Key Compliance Deadlines

Massachusetts has established phased compliance deadlines to help building owners adapt to the new regulations:

• 2025 – Initial energy benchmarking reports due.
• 2030 – First performance standard requirements take effect.
• 2040 – Intermediate energy reduction targets must be met.
• 2050 – Buildings must achieve net-zero emissions compliance.

Failure to comply may result in fines, penalties, or mandatory retrofits.

Steps to Ensure Compliance

1. Benchmark Energy Use and Submit Reports

• Use ENERGY STAR Portfolio Manager to track building energy use intensity (EUI).
• Submit energy reports annually to Massachusetts’ Department of Energy Resources (DOER).

2. Identify Energy Performance Gaps

• Conduct an energy audit to evaluate inefficiencies and opportunities for improvement.
• Compare your building’s current energy performance against required targets.

3. Implement Energy Efficiency Upgrades

• Upgrade HVAC systems, insulation, and windows to reduce energy demand.
• Optimize building controls and automation systems to improve efficiency.

4. Transition to Electrification

• Replace gas-powered heating, water heating, and cooking systems with electric alternatives.
• Upgrade electrical infrastructure to support high-efficiency electric systems.

5. Integrate Renewable Energy

• Install solar panels, battery storage, or connect to community solar programs.
• Explore power purchase agreements (PPAs) to buy clean energy.

6. Monitor Progress and Plan for Future Standards

• Track energy performance improvements to ensure compliance with upcoming targets.
• Adjust strategies as necessary to reduce emissions and improve efficiency.

Alternative Compliance Options

Building owners who struggle to meet performance targets may:

• Apply for alternative compliance pathways, such as phased efficiency upgrades.
• Participate in Massachusetts’ Green Energy Incentives, which offer funding for retrofits.
• Purchase Renewable Energy Credits (RECs) to offset emissions if on-site reductions are not feasible.

Engaging early with Massachusetts DOER and sustainability consultants can help businesses identify cost-effective compliance strategies.

Benefits of Compliance

Aligning with Massachusetts’ Building Energy Reporting and Performance Standards provides significant benefits for businesses and property owners:

• Lower Operating Costs: Energy-efficient buildings use less power, reducing utility bills.
• Higher Property Value: Energy-efficient and net-zero buildings attract tenants and investors.
• Regulatory Readiness: Compliance ensures long-term adaptability to future carbon policies.
• Sustainability Leadership: Supports Massachusetts’ statewide climate action and ESG goals.

What Building Owners Should Do Next

If your building is covered under Massachusetts’ Building Energy Reporting and Performance Standards, take these steps now:

1. Confirm your building’s eligibility under the state’s benchmarking and performance rules.
2. Register with ENERGY STAR Portfolio Manager and begin tracking energy use.
3. Request utility data and assess your current energy performance.
4. Develop an energy improvement strategy to meet compliance deadlines.
5. Apply for state and federal incentives to fund building efficiency upgrades.
6. Stay informed about evolving regulations and future energy performance targets.

Massachusetts’ BERDO 2.0 and BPS regulations are shaping the future of building energy management. Early compliance and proactive energy improvements will help businesses reduce costs, enhance operations, and contribute to the state’s climate goals.