Blog
Berkeley BESO Explained: What Commercial Real Estate Owners Must Know
By: Brendan Cleary, Founder
What is the Building Emissions Savings Ordinance (BESO)?
The City of Berkeley's BESO is an ordinance that requires property owners to conduct energy assessments, reports, benchmarking, and resilience upgrades to address energy efficiency in properties and uncover savings opportunities.
Recently, the City of Berkeley amended and expanded BESO, which went into effect this year. This includes updated energy assessment and benchmarking obligations for property owners. Commercial buildings are now subject to more requirements under this law.
The primary goal of this policy is to identify energy and greenhouse gas savings opportunities.
Berkeley’s BESO comes as the United States rapidly implements new energy regulations for buildings (see our report on the rise of building energy laws nationwide).
This ordinance was first implemented in 2015, requiring owners to submit energy assessments, building information, and benchmarking status, with specific requirements varying by asset class. In April 2024, Berkeley amended BESO, expanding both its scope and enforcement authority, which now include mandatory assessments and resilience standards.
Why Berkeley strengthened the Building Emissions Savings Ordinance (BESO)
Berkeley’s motivation behind this law comes down to a few core reasons. First, buildings are the city’s largest greenhouse gas emitters. The ordinance is designed to uncover energy costs and greenhouse gas savings opportunities. Secondly, Berkeley recognized that the existing building stock, not just new construction, is the primary emitter of greenhouse gases. This bill marks a turning point for energy regulations in the city. Previously, this bill was more about disclosing information only; now it’s a mandatory and action-based upgrade requirement.
What commercial property owners must do under BESO
For commercial property owners, Berkeley BESO compliance is split into three tiers based on building size.
| Building size (commercial) | BESO requirements |
|---|---|
| Up to 14,999 sq ft | Energy assessment at the time of listing |
| 15,000–24,999 sq ft | Energy assessment at the time of listing and annual benchmarking |
| 25,000 sq ft or greater | Energy assessment every 5 years and annual benchmarking |
For commercial property owners, now is the time to review your building’s BESO compliance requirements. Whether your property requires an energy assessment, annual benchmarking, or both, staying ahead of Berkeley’s deadlines can help avoid delays and penalties at sale or in the future.
Looking ahead
Berkeley is unlikely to be the last city to strengthen its building performance regulations. Across the country, local governments are shifting from energy disclosure requirements toward policies that aim to actively reduce greenhouse gas emissions from buildings and reduce overall energy consumption. While Berkeley’s BESO does not impose an emissions cap like New York City’s Local Law 97, the city’s recent amendments suggest that building energy regulations will continue to grow and strengthen in the coming years.
San Francisco is one of several cities already moving in this direction, actively developing legislation that will impose stricter energy performance requirements on existing buildings.
How Forsa can help
If your building needs BESO annual benchmarking, energy savings analysis, or retrofit support, Forsa provides energy benchmarking and compliance services for real estate throughout the Bay Area. We provide fast, efficient, and professional services to ensure your building remains compliant with Berkeley energy laws. Contact us today to discuss your property or portfolio. We are available seven days a week to help you stay ahead of Berkeley’s deadlines.
FAQs
What is Berkeley’s Building Emissions Savings Ordinance (BESO)?
BESO is a building energy performance regulation that applies to existing buildings in the city of Berkeley. It requires energy assessments, resilience upgrades, and energy benchmarking to be conducted, depending on building size and type. The goal of the law is to help buildings in Berkeley become energy-efficient, sustainable, and healthy.
Who must comply with Berkeley BESO?
BESO applies to most commercial, multifamily, and residential properties in Berkeley, though specific requirements vary based on building size and type.
What are the BESO requirements by commercial building size?
Commercial buildings require an energy assessment at the time of listing. Multifamily (3+ units) that are up to 14,999 sq. ft. also require an energy assessment at the time of listing.
What is annual energy benchmarking under BESO?
BESO requires owners to benchmark their utility data and submit it to the City of Berkeley. Energy benchmarking is the process of comparing energy/utility data to peers. This involves aggregating 12-months of data from a property or portfolio, running the data through Energy Star Portfolio Manager, verifying and confirming the accuracy, then submitting.
What does energy resilience mean?
Resilience in real estate refers to a building's ability to support and maintain safe and efficient energy during disruptions such as outages, extreme weather events, blackouts, or high demand periods.
How can Forsa help with BESO compliance?
Forsa provides energy benchmarking services to manage the reporting process for you. Additionally, we track additional regulations to make sure you stay compliant. Contact us here.