By Michele Brooks and Isabella MacKinnon
Just before the close of 2023, the City of Boston adopted regulations for the Building Emissions Reduction and Disclosure Ordinance (BERDO). The regulations set the guidelines for implementation of the policy to begin. The ordinance requires large buildings in Boston to adhere to strict emissions benchmarks set by the city, and to produce regular reports to monitor compliance. It applies to nonresidential buildings of 20,000 or more square feet, and residential buildings with 15 or more units. These buildings alone contribute over 40% of the city's carbon emissions, underscoring the importance of swift implementation.
Under BERDO, building owners must report their annual total energy and water usage to the city, and they are responsible for having the data verified by a third party every 5 years. The reporting and verification requirements allow the City of Boston to hold buildings accountable for meeting annual emission standards. Building owners must ensure that the consumption of fossil fuels in their buildings does not exceed emission limits. If a building exceeds the limit and does not have an Individual Compliance Plan or Hardship Compliance Plan that was approved by the Review Board, the building owner must pay an alternative compliance payment which is directed into an Equitable Emissions Investment Fund. Individual Compliance Plans and Hardship Compliance Plans allow building owners to comply with alternative compliance schedules and/or targets.
Let’s look at some of the victories achieved under these new regulations!
- The Equitable Emissions Investment Fund is established to support emission reduction projects that prioritize air quality improvements, reduced energy burden, housing stabilization, workforce development and access to green jobs, and clean energy installations in environmental justice communities. The establishment of this fund is a major victory towards achieving equity in the policy and supporting environmental justice communities.
- The Review Board is a significant accomplishment in the policy for ensuring transparency and accountability. The board is made up of two-thirds members nominated by local community based organizations. They are responsible for approving flexibility measures, deciding how to spend the Equitable Emissions Investment Fund, proposing updates to the carbon emissions standards and Alternative Compliance Payments, and enforcing the ordinance and issuing penalties, among others.
- A third achievement in the policy is the inclusion of tenant protections. These include the ability for a group of tenants to request the Review Board to terminate a Building Portfolio if the owner has not complied with the requirements or conditions of the Building Portfolio or if they have not prioritized distribution of benefits to environmental justice populations. A Building Portfolio allows owners of multiple buildings to comply with a single standard that reflects the mix of uses. In addition, Hardship Compliance Plans may include special conditions related to tenants such as: phasing compliance work to avoid disruptions to tenants, sharing the benefits of reduced energy bills, housing affordability and stabilization.
The City of Boston provides resources for building owners to explore retrofitting options and compliance mechanisms. These include improvements such as switching to electric appliances, adding insulation, and energy efficient window and lighting upgrades. Other options include purchasing renewable energy or making payments to the city’s Equitable Emissions Investment Fund for each metric ton of CO2 emissions exceeding a building’s limit.
The deadline placed on buildings to meet emissions standards depends on its size, with the larger residential buildings (35 or more units) given until 2025 and comparatively smaller residential buildings (15-34 units) given until 2030. In residential buildings, the owner of the building is responsible for the compliance of the units occupied by tenants. This data will be made public by the city, allowing building owners and residents to view their building’s standing.
BERDO is a vital component towards the city achieving its goal of carbon neutrality by 2050. The emissions standards set in the policy decrease over time, and require buildings to be net zero by 2050.
If you’re interested in learning more about our advocacy on BERDO, and other building decarbonization related work, contact our lead organizer Michele Brooks.