Grand Rapids Building Performance Standards: A Compliance Guide for Property Owners
How commercial and multifamily buildings in Grand Rapids can meet energy efficiency and emissions reduction goals.
Understanding Grand Rapids' Building Performance Standards
Grand Rapids is taking a leadership role in climate action with its Climate Action and Adaptation Plan (CAAP), which includes Building Performance Standards (BPS) to cut greenhouse gas emissions and improve energy efficiency across the city’s building sector. These standards require commercial and multifamily buildings to meet specific performance targets by reducing energy consumption, transitioning to renewable energy, and implementing electrification strategies.
With buildings accounting for 40% of the city’s total emissions, these new regulations align with Grand Rapids' ambitious goal of achieving carbon neutrality by 2050. Compliance with BPS is essential for property owners looking to reduce operating costs, maintain asset value, and support sustainability efforts.
Who Must Comply With Grand Rapids' BPS?
The BPS applies to:
- Commercial buildings of all sizes.
- Multifamily buildings (5+ units).
- Industrial facilities.
Smaller buildings may not be required to meet full BPS compliance but are encouraged to participate voluntarily.
Key Compliance Requirements For Grand Rapids' BPS
1. Energy Efficiency Performance Targets
Buildings must improve their Energy Use Intensity (EUI) a measure of energy consumption per square foot—by specific percentages each year. This ensures a gradual reduction in energy demand across the city’s building stock.
2. Greenhouse Gas Emissions Reductions
Property owners must track and reduce emissions by transitioning away from fossil fuel-based heating and electricity sources.
3. Benchmarking & Reporting
Annual energy benchmarking reports are required using ENERGY STAR Portfolio Manager to track progress and demonstrate compliance.
4. Electrification Requirements
Buildings must replace natural gas systems with electric alternatives such as:
- Heat pumps for heating and cooling.
- Electric water heating systems.
- Induction cooking and high-efficiency electric appliances.
5. Renewable Energy Procurement
Buildings must transition to 100% renewable electricity by 2030. Options for compliance include:
- On-site solar or wind installations.
- Participation in utility renewable energy programs.
- Purchasing Renewable Energy Credits (RECs).
Compliance Deadlines & Reporting Schedule
Grand Rapids has set phased deadlines for BPS compliance, with interim targets leading up to full carbon neutrality by 2050:
- 2025: First energy benchmarking reports due.
- 2030: 100% renewable electricity requirement.
- 2040: Advanced emissions reductions required.
- 2050: Full carbon neutrality for buildings.
Building owners should start planning now to ensure compliance with the first round of performance targets.
Steps To Achieve Compliance
1. Conduct An Energy Audit
Assessing your building’s current energy performance helps identify inefficiencies and opportunities for cost-effective upgrades.
2. Implement Energy Efficiency Upgrades
To meet BPS performance targets, consider:
- Upgrading HVAC systems to high-efficiency heat pumps.
- Installing LED lighting and smart building controls.
- Enhancing insulation, windows, and air sealing.
- Replacing outdated water heating systems with electric alternatives.
3. Transition To Renewable Energy
To comply with the renewable energy requirement, property owners can:
- Install on-site solar or wind power systems.
- Enroll in Grand Rapids’ community solar programs.
- Purchase RECs to offset emissions.
4. Electrify Building Operations
Electrification is a key pillar of compliance under BPS. Buildings must replace gas-fired systems with high-efficiency electric alternatives to align with citywide carbon reduction goals.
5. Submit Annual Benchmarking Reports
Property owners must track and report energy use annually through ENERGY STAR Portfolio Manager. The city will review submissions and provide compliance feedback.
Financial Incentives & Compliance Support
Grand Rapids offers various programs to assist property owners in meeting BPS compliance, including:
- Utility rebates for energy efficiency projects.
- PACE financing for renewable energy and electrification projects.
- Federal and state tax credits for solar and battery storage installations.
Taking advantage of these financial incentives can help lower the upfront costs of compliance while maximizing long-term savings.
Why Compliance Matters For Building Owners
Meeting the requirements of Grand Rapids’ Building Performance Standards provides multiple benefits:
- Lower Energy Costs: Efficient buildings consume less energy, reducing operational expenses.
- Increased Property Value: Energy-efficient buildings are more attractive to tenants and buyers.
- Regulatory Compliance: Avoid fines and enforcement actions by meeting deadlines.
- Sustainability Leadership: Supporting Grand Rapids’ carbon neutrality goals enhances corporate responsibility.
Next Steps For Building Owners
If your building falls under Grand Rapids' BPS, take these immediate steps to ensure compliance:
- Verify if your building meets compliance requirements.
- Benchmark your energy use using ENERGY STAR Portfolio Manager.
- Schedule an energy audit to identify efficiency improvements.
- Develop a long-term electrification and renewable energy strategy.
- Submit required benchmarking reports and track progress.
- Explore financial incentives to offset upgrade costs.
By taking proactive measures now, property owners can stay ahead of compliance deadlines, reduce costs, and contribute to a more sustainable Grand Rapids.
