‘Energy use benchmarking’ ordinance passes

11-Sep-13 – After hearing passionate debate from both sides, including 42nd Ward Alderman Brendan Reilly, who opposed it, the Chicago City Council on Wednesday voted 32-17 in favor of requiring buildings in the city to monitor their energy use.

The ordinance could affect about 3,500 residential, commercial, and municipal buildings bigger than 50,000 square feet. Energy consumption data would be posted on a city website. It would allow prospective owners and renters to compare energy use of buildings but some say it would be unfair to older buildings and harm property values.

While the cost to a homeowners association of the initial energy audit could be no more than a few thousand dollars, Reilly told the council that once a residential building’s energy data is posted, “public shaming kicks in.” To raise its performance score and compete with buildings that are more energy efficient, a condo association could spend “hundreds of thousands of dollars” and require a special assessment.

“Every month that we meet here, somehow it becomes more costly for you to raise a family in the city of Chicago,” lamented Reilly (left). “And in this particular ordinance, God help you if you live in a high-rise.”

Reilly urged the council to at least exclude residential buildings from the ordinance.

“We should not be in the business of picking winners and losers in the real estate market just as we’re recovering from the 2008 global economic collapse.”

47th Ward Alderman Ameya Pawar pointed out the ordinance does not mandate that a building retrofit to become energy efficient, just that it report its energy efficiency. Residential buildings would have two years to begin participating.

“At most, you’re talking about a $2,000 fee to certify your building and show your data. And then it’s up to you.”

“It seems like we’re down to the point where it’s never the right time to protect the environment,” said Pawar (right). “The time to do the right thing by the environment passed a long time ago. The impact that we’re faced with now we can no longer reverse. Now we just have to manage. So I just have a question, if not now, when is the right time?”

Buildings will report annually on energy use

Mayor Rahm Emanuel introduced the ordinance. In a news release after the vote, Emanuel explained how benchmarking would work. Buildings will report energy use data to the city once a year using Portfolio Manager, a free web-based tool administered by the U.S. Environmental Protection Agency. Every three years, the data will have to be verified by a licensed architect, engineer, or similar professional.

The city will publish an annual report on energy efficiency and starting in June 2015, publicly disclose the energy performances of individual buildings.

“Good data drives markets and innovation,” said Emanuel. “This ordinance will accelerate Chicago’s growth as a capital for green jobs by arming building owners, real estate companies, energy service companies, and others with the information they need to make smart, cost-saving investments.”

Buildings that used Portfolio Manager from 2008 to 2011, according to the mayor, saved seven percent in energy costs each year.

“If the buildings covered by this ordinance make energy efficiency improvements that result in just five percent of energy savings, this will result in a $250 million investment.”

 Related story: Reilly gets vote on energy benchmarking postponed