Tier 2 Rulemaking: Annex Y

Today’s Clean Buildings Performance Standard Rulemaking Workshop covered Annex Y and definitions, focusing on administrative procedures.

SB 5722 was signed into law in March 2022, expanding the Clean Buildings Performance Standard to Tier 2 buildings, that is, commercial buildings between 20,000 and 50,000 square feet of gross floor area, and multifamily residential buildings over 20,000 square feet of gross floor area. Today’s workshop was the fourth in a series of rulemaking workshops for the Clean Buildings Expansion Law. Rulemaking will continue through December 2023.

The Tier 2 building owner survey is still open! Commerce is seeking feedback on the costs and cost savings impact on small business, Tier 2 building owners. Take the survey here. It will remain open through the end of July.

Workshop Highlights

Annex Y is specific to Tier 2 buildings and contains similar information to Annex Z for Tier 1 buildings, including information on penalties.

Owner notification letters for Tier 2 buildings will be sent in 2025. See the timeline below.

The addition of a definition for connected buildings offers Tier 2 buildings an alternative to submetering. Tier 2 buildings with multiple buildings under 50,000 square feet using the same energy meter will be permitted to comply together rather than installing submeters. Buildings under 20,000 square feet under the same meter will also be included, though those buildings will not need to be included in the energy management plan or operations and maintenance program.

connected buildings: a collection of buildings owned by the same building owner that are situated on the same or adjacent parcels and have shared energy meters.

Image above from the workshop slide deck.

Tier 2 buildings will not require a qualified person to submit for compliance in the 2027 compliance cycle. However a qualified energy manager will be required, and will be required to complete a specific training program offered by the Department of Commerce.

Penalties for Tier 2 buildings will be $0.30 per square foot for noncompliance. Unlike penalties for Tier 1 buildings, penalties for Tier 2 buildings will not be prorated based on the time the building remains out of compliance. Rather, $0.30 per square foot is a flat fee. However, Tier 2 buildings will be able to apply for a 180-day compliance extension for their energy management plan and operations and maintenance program only (reporting must still be completed by the compliance deadline).

Finally, noncompliance in the 2027 reporting cycle will disqualify Tier 2 buildings from application for the Early Adopter Incentive Program in future compliance cycles.

View a recording of the workshop, read the full document of proposed changes related to the workshop, and leave feedback using the public comment form. All past Tier 2 workshop materials can be found at the bottom of the Clean Buildings homepage.

The next rulemaking workshop for Tier 2 buildings will be August 24th, 2023 and will cover Tier 1 Amendments. Register for the next workshop to attend and participate in Tier 2 rulemaking, and stay up to date on the latest Clean Buildings news by subscribing to Sershon Systems’ newsletter.