Los Angeles Existing Buildings Energy And Water Efficiency (EBEWE) Program: What Businesses Need to Know

Understanding Los Angeles’s Commitment to Sustainable Buildings

Los Angeles is taking significant steps toward sustainability by requiring buildings to meet strict performance targets through its Existing Buildings Energy And Water Efficiency (EBEWE) Program. These regulations are part of the city’s 100% Clean Energy Plan, aimed at reducing emissions, increasing energy efficiency, and transitioning commercial and multifamily buildings to clean energy sources.

If your business operates in Los Angeles, understanding these requirements is essential for compliance. The BPS mandates that buildings reduce energy consumption, lower greenhouse gas emissions, and transition from fossil fuels to electricity. Businesses that fail to comply may face financial penalties and increased operating costs.

What Is a Building Performance Standard (BPS)?

A Building Performance Standard (BPS) is a set of regulations requiring commercial and multifamily buildings to achieve specific energy efficiency and emissions reduction targets. Unlike voluntary sustainability programs, BPS policies are legally enforceable and come with strict compliance deadlines.

Key Elements of Los Angeles’s BPS:

• Energy efficiency requirements to reduce overall consumption.
• Greenhouse gas emissions reduction targets to lower environmental impact.
• Electrification mandates to transition buildings away from fossil fuels.
• Renewable energy integration to support the city’s clean energy goals.
• Water efficiency measures to promote conservation.

Each building must meet performance benchmarks within designated timeframes, with compliance deadlines set for 2030, 2040, and 2050.

Who Must Comply With Los Angeles's BPS?

Los Angeles’s BPS applies to commercial and multifamily buildings over 20,000 square feet, including:

• Office buildings.
• Hotels and lodging facilities.
• Retail properties.
• Multifamily residential properties.
• Industrial and institutional buildings.

If your property falls within these categories, you must track and report energy performance while implementing improvements to meet the city’s energy and emissions goals.

Steps To Ensure Compliance With Los Angeles’s BPS

1. Benchmark and Track Energy Performance

The first step toward compliance is benchmarking energy use to measure building performance against BPS targets.

• Use ENERGY STAR Portfolio Manager to track energy and water consumption.
• Identify energy waste and inefficiencies.
• Establish a baseline for future improvements.

Regular energy monitoring is required to demonstrate compliance and track progress toward efficiency goals.

2. Implement Energy Efficiency Upgrades

Improving building efficiency is key to meeting Los Angeles’s BPS requirements. Businesses should:

• Upgrade HVAC systems to high-efficiency models
• Install LED lighting and smart controls.
• Improve insulation and window glazing to reduce energy loss.
• Adopt automated building management systems to optimize efficiency.

These upgrades reduce operational costs while improving building performance.

3. Transition To Electrification

Los Angeles’s BPS mandates moving away from fossil fuels by electrifying heating, cooling, and other building systems.

• Replace natural gas furnaces with electric heat pumps.
• Upgrade to electric water heaters.
• Transition to electric industrial equipment.

Electrification aligns with the city’s 100% clean energy goal and helps businesses meet emissions reduction targets.

4. Adopt Renewable Energy Solutions

To further cut emissions, businesses must incorporate renewable energy sources into their buildings.

• Install solar panels for on-site power generation.
• Purchase renewable energy credits (RECs).
• Participate in community solar programs.

Renewable energy adoption helps businesses reduce dependence on traditional energy sources while supporting Los Angeles’s sustainability efforts.

5. Optimize Energy Demand & Load Management

Energy demand management helps businesses stay within BPS performance limits while keeping costs low. Businesses can:

• Automate energy use during off-peak hours.
• Use real-time load monitoring to optimize consumption.
• Participate in Demand Response Programs to reduce energy demand.

These strategies improve efficiency while reducing electricity costs.

6. Submit Compliance Reports and Meet Deadlines

Los Angeles requires annual energy performance reporting to track compliance with BPS targets. Businesses must provide:

• Energy usage and emissions data.
• Documentation of efficiency improvements.
• Proof of renewable energy integration.

Failure to submit reports or meet performance targets can result in financial penalties.

Why Businesses Should Comply With Los Angeles’s BPS

1. Lower Energy Costs

Efficiency upgrades reduce long-term energy expenses while lowering maintenance costs. Many businesses qualify for rebates and tax incentives for implementing sustainable solutions.

2. Avoid Regulatory Penalties

Non-compliance with Los Angeles’s BPS can result in fines and enforcement actions. Taking early action ensures regulatory compliance and prevents last-minute challenges.

Improve ESG Performance & Sustainability Credentials

Meeting BPS targets enhances a company’s Environmental, Social, and Governance (ESG) profile, making businesses more attractive to:

• Investors and stakeholders.
• Tenants and customers.
• Government and industry partners.

Sustainability leadership strengthens business reputation and increases market competitiveness.

Overcoming Compliance Challenges

1. Managing Upfront Costs

While efficiency upgrades require investment, businesses can offset costs through:

• Local, state, and federal incentive programs.
• Utility rebates for energy-efficient equipment.
• Long-term savings from lower energy bills.

2. Navigating Reporting Requirements

Tracking energy performance and submitting reports can be complex. Businesses should:

• Use automated energy monitoring solutions.
• Consult with energy efficiency experts.
• Develop a long-term sustainability plan.

3. Adopting New Technologies

Transitioning from gas-powered systems to electric alternatives requires planning. Businesses can phase in smart automation tools to ease the transition.

Preparing For Los Angeles’s BPS Compliance

Los Angeles’s Building Performance Standards are reshaping the way commercial and multifamily buildings operate. To stay compliant, businesses must:

• Benchmark energy performance.
• Invest in energy efficiency upgrades.
• Transition to clean energy solutions.
• Submit compliance reports on time.

By proactively managing building performance, businesses can reduce costs, improve operational efficiency, and meet regulatory requirements while supporting Los Angeles’s ambitious clean energy goals.