D.C. Energy Performance Ratings Set National Precedent

The District of Columbia has set a new precedent for transparency by releasing its first annual energy performance ratings for all public buildings. Energy ratings for privately owned buildings are due out in 2012, as required by the District’s 2008 Clean and Affordable Energy Act.

The District’s privately owned buildings policy, which requires owners to use Energy Star Portfolio Manager to compare the energy performance of buildings 50,000 ft2 (4,600 m2) or larger to the national average and then publicly disclose their ratings, is the first of its kind in the U.S. A similar California law preceded the District’s but requires rating and disclosure only at the time of a transaction, such as a sale, lease, or financing. Annual rating and disclosure requirements set the D.C. policy apart, and it has already served as a model for similar laws in New York City and San Francisco. Many other cities and states are responding with similar initiatives, according to Andrew Burr at the Institute for Market Transformation, which helped Washington and New York develop their policies.

“The District deserves a lot of credit for putting poorly performing buildings out there for people to see,” said Burr, who notes that wasting energy in public buildings means wasting taxpayer money. “All governments should be helping to address fiscal responsibility” by paying more attention to energy performance, he said. “They are also showing the private sector that government will do what it asks industry to do.”

He explained that publicly disclosed ratings for private buildings will help tenants more accurately assess utility expenses before moving in. “Particular tenants will now be able to know if they are going to lease an energy-efficient building rather than an energy hog,” said Burr. He added that the measure also has long-term environmental benefits: “We expect that with more transparency, building owners are going to become more competitive, and that will drive a lot of operational and structural improvements to buildings.”

The District will release energy ratings from privately owned buildings 200,000 ft2 (18,000 m2) or larger in 2012, but disclosures about smaller buildings will come later. Phase-in of the policy for privately owned buildings should be complete by 2015.

– Paula Melton