State and Local Building Performance Standards
According to the U.S. Department of Energy, Building Performance Standards (BPS) are “outcome-based policies and laws aimed at reducing the carbon impact of the built environment by requiring existing buildings to meet energy and/or greenhouse gas emissions-based performance targets.” BPS efforts to reduce carbon emissions related to commercial real estate have accelerated among state and local governments with the establishment of a National Building Performance Standards (BPS) Coalition to help promote and facilitate state and municipal action.
Each state and local law is unique, creating a patchwork of requirements for property owners, lenders, and others to navigate. One thing the laws have in common is that making the system changes necessary to meet BPS standards will require investment – affecting property capital needs and cash flows in coming years.
MBA supports the financing of high-performing energy efficient and quality homes nationwide, but it urges caution regarding any proposals to attach specific building code requirements to new construction. The impacts of such requirements must be considered in the context of meeting American’s acute housing challenges.
For more information about MBA’s efforts with federal policymakers related to climate-related financial risk and sustainability, visit MBA’s Climate-Related Risk and Sustainability resource center.
Important State and Local Building Performance Standards Resources
Examples of Local Building Performance Standards Laws
- New York City: Local Law 97
- Washington DC: Building Energy Performance Standards
- Seattle: Building Emissions Performance Standards
- Denver: Building Performance Policy
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