Boston Multifamily Owners: The Path to Net-Zero Starts with These 5 Steps
Note: This is the second blog in a series written to help building owners understand how to comply with BERDO, Boston’s ambitious climate action plan. For more information on BERDO and how it affects multifamily owners, read the first installment in our series.
Download our BERDO Compliance Playbook
A variety of compliance mechanisms to meet emissions requirements, tips for planning and funding, and solutions that meet the unique needs of multifamily properties.
Boston’s Building Emissions Reduction and Disclosure Ordinance (BERDO) aims to reduce greenhouse gas emissions (GHG), improve energy efficiency, and promote sustainability across the city’s building stock, which is responsible for over 70% of the greenhouse gas emissions.
Multifamily building owners are now required to report energy usage and carbon emissions annually, and starting in 2025 buildings over 35,000 sq ft or with more than 35 units who haven’t achieved the identified emissions reduction targets will be subject to fines. Buildings with 15-34 units and 20,000-34,000 sq ft must be in compliance in 2030. All buildings covered by BERDO are required to achieve net-zero emissions by 2050.
The Path to Zero Carbon Starts Today
At a high level, achieving a net-zero emissions building will mean implementing change in five areas:
Improving energy efficiency with weatherization to improve the building envelope, improving building controls and preventing overheating and overcooling. This lowers operating expenses immediately, and reduces future HVAC capital costs and operating costs which can make the difference between a decarbonization plan being practical or not.
Replacing all on-site fossil fuel-consuming equipment with all-electric alternatives. Common options include mini-split heat pumps, central air-to-air heat pumps, central air-to-water heat pumps connected to existing hydronic heating infrastructure, and ground source heat pumps. These choices involve many factors to select the most cost effective solution.
Sourcing electricity from zero carbon sources including on-site solar, renewable power purchasing, or simply waiting for the grid to become 100% emissions free over time.
Adding on-site energy storage (battery or thermal) to help manage peak load and provide resiliency.
Implementing a building control and sensing platform that can report on energy consumption, equipment health and occupant behavior. Typically, building controls can immediately reduce carbon emissions approximately 20% while also providing comprehensive data on building performance. In the future, the building can interact with the smart grid to improve electricity reliability and reduce carbon emissions.
Timing and Funding are Key Considerations
Turning the five steps into a concrete plan is governed by two key factors: timing and how to pay for it.
Multifamily owners must consider:
• The remaining life of different building elements. A capital needs assessment will identify when major elements - boilers, chillers, in-apartment HVAC equipment, roof and even things like windows and cladding need replacing. A decarbonization project will be much cheaper (or may only be economically feasible at all) if it is aligned with the capital plan. Replacing a boiler at the end of its life with a heat pump system makes sense. Replacing a two year old boiler with a heat pump most likely does not.
• The availability of funding sources including utility incentives and green bank funds. Timing decarbonization capital projects to coincide with refinancing may provide more access to funds for decarbonization than if the project was done on its own. Post-retrofit building performance can also be considered in financing, with lower operating costs allowing for better loan terms. Also, look at options for onsite or community solar and model the costs of purchasing renewable energy.
It’s important to remember that every step on the path to zero doesn’t need to be mapped out today. Technologies such as large capacity commercial building air-to-water heat pumps (that can replace boilers and chillers) may not be cost effective now but are expected to be more feasible by the 2030s.
Keys to BERDO Compliance and Success
Once a general strategy is defined, develop a timeline with early steps that map to BERDO limits. After long term directions and goals are established, focus on the near term goals - 2025 and 2030 - with the goal to avoid the risk of fines for this period. By taking action now, owners will avoid fines, enjoy better performing buildings and set buildings on the path to net-zero by 2050.
Learn how Embue can help your buildings comply with BERDO
by downloading our BERDO Compliance Playbook or by scheduling a demo with the Embue team.