What is BERDO?

BERDO stands for Building Emissions Reduction and Disclosure Ordinance and is a regulation that was originally passed by the City Council in May 2014 to reduce air pollution and greenhouse emissions from large buildings in Boston. The 2014 ordinance applied only to residential buildings with 35 or more units and non-residential buildings that are 35,000 more square feet. BERDO also covers properties that have multiple buildings which, when combined, meet those unit number or square footage requirements. A building is considered residential if 50% or more of its gross floor area has a residential use. Otherwise, it is considered non-residential.

The penalties for non-compliance with BERDO are steep, so it is very important to ensure that your building complies with both the reporting and emissions requirements.

On October 5, 2021, an amendment to the original BERDO was passed, and has been dubbed “BERDO 2.0.” BERDO 2.0 contains significant changes from the original ordinance, both in terms of the entities covered by the ordinance and what the requirements are for compliance. The goal of BERDO 2.0 is for the City of Boston to reach carbon neutrality by the year 2050.

To what entities does BERDO 2.0 apply?

BERDO 2.0 expands coverage to all residential buildings with 15 or more units and all non-residential buildings that are 20,000 or more square feet. The result of BERDO 2.0 is that significantly more buildings will be covered than were covered by the original BERDO. The City of Boston has provided a comprehensive list of the buildings that are required to comply with BERDO, which can be found here.

If you have a question as to whether BERDO 2.0 applies to your building, please email energyreporting@boston.gov or contact your attorney’s office.

What are the requirements for buildings under BERDO 2.0?

There are three main categories of obligations under BERDO 2.0: reporting, third-party verification, and emissions reduction. The owner of the building (for condominiums, that would be the condominium association) is responsible for making sure these requirements are met.

Reporting

By May 15 of each calendar year, buildings subject to BERDO 2.0 must report the building’s water and energy use for the preceding year. Reporting is done through Energy Star Portfolio Manager, which can be accessed here.

Once there, the owner will need to create an account and then complete the BERDO reporting form. For assistance with or questions about reporting, please email energyreporting@boston.gov or contact your attorney’s office.

Third Party Verification

Each building covered by BERDO 2.0 must also hire a third-party qualified energy professional to verify the reported data. Please note that third-party verification is only required in the first year of reporting, and then only on designated “verification years” thereafter. The first “verification year” is 2026, and then every five years after that (i.e., 2031, 2036, 2041, etc.).

Emissions Reduction

The final requirement of BERDO 2.0 is that each building reduce its emissions in accordance with the standards set forth by the City. Buildings must begin complying with emissions standards in 2025 or 2030, depending on their size. For residential buildings that have 35 or more units and non-residential buildings that have 35,000 or more square feet, compliance with the emissions requirements begins in 2025. For residential buildings that have between 15-34 units and non-residential buildings that have 20,000-34,999 square feet, compliance with the emissions requirements begins in 2030. Different types of buildings have different emissions standards, which are set forth in the chart below:

As you can see, the volume of emissions that are permitted in each building type decrease over time, with the goal for each building type being zero by 2050. It is thus important to start considering long-term options for emissions reduction that will allow your building to comply with BERDO 2.0.

What happens if a building is not in compliance?

The penalties for non-compliance with BERDO are steep, so it is very important to ensure that your building complies with both the reporting and emissions requirements. Failure to comply with the reporting requirements will result in fines that range from $150 to $300 per day, depending on the size of the building. Failure to comply with the emissions standards will result in fines that range from $300 to $1,000 per day, depending on the size of the building. However, penalties will not begin to be assessed until thirty days after receipt of a notice of violation from the City. In other words, buildings will have a thirty-day grace period to correct violations before fines begin.

If you are worried about your building’s ability to comply with the emissions standards and want to avoid fines, the best option is to seek a “flexibility measure” from the BERDO Review Board. Flexibility measures, if approved by the Board, allow buildings to adjust their emissions limits and/or reduction timelines.

Conclusion

The City of Boston website also has a number of resources that can be utilized to assist you with the process. If you have any questions about BERDO, including whether your building applies, what the reporting dates are, how to comply with the BERDO requirements, or anything else related to BERDO, we encourage you to email energyreporting@boston.gov or contact your attorney’s office.