Preparing for 2027 Building Performance Standards
Building Performance Standards continue to expand across the U.S. and now cover a growing share of commercial and multifamily real estate in major markets. In 2026, the industry moved from early preparation into active implementation: first-cycle filings, jurisdiction-specific portals, alternative compliance pathways, and enforcement processes all became more real for building owners.
As BPS programs mature and building owners get more familiar with the various requirements, we are seeing new aspects of BPS compliance to focus on in 2027:
Utility and building characteristic accuracy
Most building owners have been using Energy Star Portfolio Manager (ESPM) for years now and have stopped scrutinizing some of the basic information in ESPM – like the number of energy meters and the property use types. Optimizing your BPS compliance requires that owners triple check these items. Many of our clients have been using inaccurate building and space areas for years. Correcting these can sometimes have dramatic impacts on your compliance and potential fines.
Alternative compliance and credit/offset programs
Many jurisdictions continue to roll out and further define alternative ways of complying with BPS and potential credits that can be used to reduce or eliminate fines. For example, NYC LL97 allows credits for onsite or offsite battery storage, onsite solar, and recently launched Renewable Energy Credits for the 2027 compliance year. Review the latest updates for your local BPS and make sure you are aware of all compliance pathways and credits.
Overlapping BPS policies
Most BPS policies started at the city level, but many counties and states are stepping in with complementary standards of their own – a sign that building performance is becoming a mainstream part of climate policy nationwide. As adoption increases, some overlapping BPS policies may have different deadlines and different compliance metrics. In many cases, meeting a local requirement may satisfy a state requirement, though there are some cases where state and local requirements must be satisfied separately. Many jurisdictions are working toward complementary compliance solutions, so it is always worth checking if you have overlapping policies and whether those policies have compliance reciprocity.
A few overlapping BPS regions to watch:
Seattle and State of Washington – Seattle’s BEPS and Washington’s CBPS apply separately, and buildings covered by both must meet compliance requirements for both policies.
Montgomery County and State of Maryland – Buildings that are covered by Montgomery County’s BEPS are exempt from the State of Maryland’s BEPS.
Denver and State of Colorado – Buildings that meet their targets under Energize Denver are automatically “deemed compliant” with Colorado’s BPS.
California is developing a BPS and the California Energy Commission’s latest recommendations include accommodating local policy requirements to avoid creating duplicative compliance efforts.
Start planning for the second cycle
Most BPS jurisdictions get more stringent around 2030, with tighter limits and harsher fines. We are seeing some buildings with projected annual fines of $1M or more starting in 2030. Buildings that are currently compliant may be surprised to see what they need to do to achieve compliance in the second cycle. Start your planning now to avoid rushed projects and higher implementation costs. You want to have time to evaluate feasible measures, budget properly, install and commission them all before the second cycle requirements kick in.
Risks of non-compliance go beyond annual fines
The risk of non-compliance with BPS policies extends beyond short-term financial penalties. Buildings that miss BPS deadlines or do not meet performance requirements create longer term liabilities for their owners. Investors, lenders and tenants are now asking about BPS compliance during their due diligence and downgrading buildings that are not in compliance. This risk can impact leasing, sales, and capital raising for building owners that ignore BPS requirements. Any building owner trying to raise money from institutional capital is already being asked about current and future BPS risk, and this will only accelerate. Building owners can reduce this risk by creating proactive plans to meet current and future BPS requirements before the risk seriously erodes real estate asset value.
BPS Policy Updates for 2027
In 2027, BPS compliance will continue to mature in jurisdictions where reporting is already underway, as several programs expand coverage, begin new compliance cycles, or move closer to enforceable performance requirements.
Major 2027 BPS updates to watch include:
New York City, NY: LL97 is now in annual reporting mode for most covered buildings over 25,000 square feet. Owners should use 2027 planning to validate 2026 emissions performance, resolve any data quality issues, and model future exposure under the much stricter 2030 limits.
Boston, MA: BERDO compliance is no longer a future concern for covered buildings. Owners should confirm whether buildings are meeting emissions standards, whether eligible renewable energy instruments are needed, and whether any compliance schedule, hardship, or building portfolio approach is appropriate.
Washington, DC: BEPS Cycle 1 compliance wraps into 2027 for many covered buildings. Owners should prepare completed-actions documentation, confirm third-party verification needs, and begin evaluating performance for future cycles.
Washington State: The Clean Buildings Performance Standard expands beyond the largest buildings, with commercial buildings in the 90,000 to 220,000 square foot tier, and all multifamily buildings over 20,000 square feet facing a 2027 compliance deadline. Owners should confirm gross floor area, covered building status, and whether an energy management plan or investment criteria pathway is needed.
Colorado: Building Performance Colorado remains a key statewide program for buildings over 50,000 square feet. Owners should continue annual benchmarking, track greenhouse gas performance against interim requirements, and monitor rulemaking that may extend or adjust long-term targets.
Denver, CO: Energize Denver remains focused on energy use intensity reductions for buildings over 25,000 square feet. Even where extensions or alternate timelines apply, 2027 is a critical year for confirming EUI targets, capital planning, and electrification impacts.
Maryland and Montgomery County, MD: State and county BPS programs are moving toward future performance deadlines. 2027 planning should include portfolio coverage screening, benchmarking quality control, and early assessment of buildings likely to need upgrades.
Oregon: Oregon’s statewide BPS is entering implementation, with benchmarking and first compliance obligations approaching for large commercial buildings. Owners should confirm whether buildings over the applicable threshold are covered and begin collecting data needed for future reporting.
When planning for 2027 BPS compliance, remember the following:
Screen your entire portfolio for covered buildings. Policy thresholds, covered building lists, and local guidance can change, so do not assume last year’s coverage review is still applicable.
Compare 2024, 2025, and emerging 2026 calendar year energy and emissions performance against applicable BPS targets so you can identify near-term filings and longer-term exposure before deadlines arrive.
For buildings that are over near-term BPS targets:
Review all alternative compliance pathways and consider reaching out to local regulators to discuss a decarbonization plan, compliance schedule, or other pathway that could reduce penalty exposure.
Develop decarbonization plans to implement major upgrades. While these efforts may not impact the next filing, they will ease future compliance filings and can ensure your buildings meet long-term BPS targets.
Most local regulators don’t want to levy fines; they want buildings to improve. If you are actively working on data quality, engineering analysis, and implementation planning, document that progress and use it to support conversations with regulators where appropriate.
Find The Right BPS Partner
Streamline your BPS planning process by finding an experienced service provider to deliver successful outcomes for all of your covered buildings. A good service provider can:
Support data collection, portfolio screening, and compliance filings for all buildings covered by BPS policies in your portfolio.
Evaluate BPS performance beyond the current reporting cycle – looking out to 2030 or later to give you a longer-term view of required improvements.
Conduct energy audits, engineering calculations, and develop decarbonization roadmaps to ensure that your buildings meet future BPS targets and comply with policy requirements.
Maximize financial incentives for upgrades and retrofits. Many jurisdictions have cost share programs and rebates to offset the soft and hard costs of efficiency upgrades.
Help you prioritize which properties need attention in the near, medium and long-term.
Coordinate with your building-level teams and ensure they are involved in the process. Operations and management teams can be great collaborators if they are involved from the start.
It is never too early to get started!
To be successful, your BPS compliance effort should start with data collection and screening in the fall so when January arrives you only need the final 2026 utility bills to finalize your 2027 filings and performance assessments.
A comprehensive approach to successful BPS filings will require nuanced planning for certain buildings, including engineering and energy modeling to identify and prioritize upgrades, and conversations with local regulators to ensure alignment with BPS requirements. This is much more complex than the typical benchmark filing, so plan early and budget accordingly.
Happy BPS season 2027!!
If you have questions about BPS and your portfolio, or want support with engineering calculations or a decarbonization roadmap for your buildings covered by a BPS, contact us at info@codegreen.com