Getting Ahead of Boston’s BERDO Fines

May 30, 2024

Boston’s Building Emissions Reduction and Disclosure Ordinance (BERDO) is a building performance law that focuses on decarbonizing existing large buildings in Boston.

Boston’s Building Emissions Reduction and Disclosure Ordinance (BERDO) is a building performance law that focuses on decarbonizing existing large buildings in Boston.

BERDO sets requirements for large buildings to reduce their greenhouse gas emissions gradually to net zero by 2050. Non-compliance could result in large fines.

The law only targets roughly 4% of buildings across the City of Boston, yet it will address over 60% of Boston’s emissions. This is an essential component of achieving Boston’s net zero goals.

BERDO encourages energy efficiency improvements, fuel switching, retrofits, and renewable energy generation in local buildings. These improvements can increase resident comfort, improve indoor air quality, reduce outdoor air pollution, and direct further investments into building a low-carbon and equitable Boston.

KEY DETAILS

  • BERDO sets emissions limits and reporting requirements for buildings greater than or equal to 20,000 GSF or 15 units
  • Buildings report their emissions by May 15th of each year
  • Emission limits start in 2025 for buildings over 35,000 GSF or 35 units, and in 2030 for buildings between 20,000 – 35,000 GSF or 15-34 units
  • Includes compliance payments for emissions over the limit and large fines for uncooperative buildings

 

This chart show's Boston Emissions Standards by Building and how fast they need to decarbonize.

 

FINES

Not complying with BERDO can be costly. There are 3 different non-compliance fines that can be handed out to buildings.

  • Reporting Requirement Fines: Each day a building owner is out of reporting compliance, fines ranging from $150 to $300 a day will be issued, the amount determined by the building or the number of units.

 

  • Emissions Standards Fines: Each day of a calendar year and each subsequent day a building owner does not comply with the Emissions standard, fines ranging from $300-$1,000 a day will be issued, the amount determined by the building or the number of units.

 

  • Inaccurate Reporting Information Fines: A discrepancy with a building owner’s self-certified reporting will result in a fine of $1,000-$5,000, as determined by the Review Board.

 

  • Alternative Compliance Payments (ACPs): Not quite a fine, but one way to comply with BERDO is through ACPs. Building owners can pay $234 per metric ton CO₂e that exceeds their emissions limit. This is the most cost-effective way to handle BERDO, and can cost significantly more than the other compliance options in the long run.

 

This table showcases the CO2e Emissions Standards by Building Use. It includes all the different build types under BERDO and how quickly they need to scale down.

EMISSIONS REQUIREMENTS PATHWAYS

  • Emissions Standards:
    • Emissions standards set annual emissions limits based on different types of building uses. All emissions standards are measured in kilograms of carbon dioxide equivalent per square foot per year. To comply with emissions standards, building owners must decrease or mitigate the total annual emissions produced by consuming electricity and fossil fuels in their buildings. These annual emissions must stay below the emissions limit for the respective building type. For example, a multi-family apartment building must comply with the emissions standards for “Multifamily Housing” and work towards achieving net-zero emissions by 2050.

 

  • Flexibility Measures 
    • BERDO also offers building owners the opportunity to apply for different flexibility measures, including Building Portfolios, Blended Emissions Standards, Individual Compliance Schedules, and Hardship Compliance Plans. The BERDO Review Board must approve all flexibility measures.

 

  • Compliance Mechanisms
    • BERDO provides building owners with multiple compliance mechanisms, i.e., options to achieve compliance with emissions standards. These include direct emissions reductions in buildings, local renewable energy generation, renewable energy purchases, and the foolish Alternative Compliance Payments ($234 per metric ton CO₂e that exceeds their emissions limit. Very costly, very quickly.)

This is our interpretation of BERDO's key events timeline.

WHAT DATA NEEDS TO BE REPORTED?

  • Covered buildings under BERDO 2.0 must report via Portfolio Manager or as required by the Regulations the following:
    • Energy + water use and other building characteristics are necessary to evaluate CO2 emissions.
    • Primary building use or multiple primary building uses.
    • Renewable Energy Certificates if applicable; and
    • Material terms of energy purchased via an executed Power Purchase Agreement (PPA) if applicable.

 

HOW PARITY CAN HELP

Cameron Rapoport, the Senior Account Manager, Boston at Parity, says, “Regardless of whether your building will face fines in 2025, 2030, or even 2040, now is a great time to seek out common sense, cost-effective decarbonization measures like Parity’s Optimizer service. Not only will you save money and get a good ROI, but you’ll right-size your energy usage and gather data that can be used to make the right decision when it comes time to implement larger, more capital-intensive decarbonization efforts.”

Here’s how Parity can help:

  • Parity can reduce your exposure to BERDO fines by decreasing your building’s energy usage and lowering GHG emissions.
  • Our Optimizer service automatically optimizes your HVAC systems with remote control adjustments to deliver energy-efficient levels of heating and cooling 24/7/365.
  • This reduces your utility bill, cuts CO2 emissions, maintains resident comfort, and reduces on-site staff workloads.
  • Plus, we guarantee our savings or cut you a check.

 

If you want more information on BERDO, head over to the City of Boston’s website. You can also learn more about Parity’s Optimizer service by heading to paritygo.com, or email Cameron (cameron.rapoport@paritygo.com).

Other Blog Posts

October 16, 2024

How Parity Empowers Resident Managers

Resident Managers face growing demands to juggle energy efficiency, resident comfort, and maintaining operational excellence. And the rise of smart [...]
September 16, 2024

Unlocking Efficiency: Boilers and Pumps

As the chilly winds of winter sweep in, apartment buildings and hotels rely on heating systems to keep residents and [...]
August 13, 2024

What is HVAC Optimization as a Service?

Zoom. Spotify. Netflix. These are some of the most popular SaaS, or Software as a Service, companies. But have you [...]