BPS Laws Explained: Where Performance Is Required (And Where It Isn’t)

Building Performance Standards Explained: Where BPS Laws Apply (And Where They Don’t)

Building Performance Standards (BPS) are reshaping energy compliance. Most owners still misunderstand where they actually apply. 

Across the U.S., cities and states are moving beyond simple reporting and into enforceable performance laws that require buildings to improve energy use over time. That shift has created confusion, especially as benchmarking laws, audit mandates, and BPS laws are often lumped together. 

This guide clarifies what Building Performance Standards are, which states have them, and how they differ from benchmarking, so you can plan compliance correctly instead of reacting too late. 

What Building Performance Standards Actually Are

Building Performance Standards are laws that require buildings to meet measurable energy or emissions targets, not just file reports. 

Unlike benchmarking, which tracks and discloses energy use, BPS laws set a minimum performance threshold that buildings must hit by a specific year. If a property falls short, the owner must either improve performance or face penalties. 

The key difference is enforcement. Benchmarking answers “How is my building performing?” while BPS laws ask “Is my building good enough?” 

This distinction matters because many owners believe they are compliant when they are only reporting data. 

Why BPS Laws Are Expanding Nationwide

Cities are adopting BPS laws because data alone doesn’t reduce emissions. 

Buildings account for a major share of urban emissions, and policymakers have learned that disclosure without consequences doesn’t drive change. BPS laws close that gap by tying performance targets to deadlines and penalties. 

From a policy standpoint, BPS laws also give owners flexibility. Rather than mandating specific upgrades, most laws allow buildings to choose how they improve, as long as results are achieved. 

That flexibility makes early planning critical. 

Where Building Performance Standards Apply Today

BPS laws are not universal, but they are concentrated in specific states and cities. 

The following jurisdictions currently have enforceable Building Performance Standards or performance-based energy laws:

  1. Washington State (WA BPS): Statewide Clean Buildings Performance Standard with Tier 1 and Tier 2 thresholds 
  2. Oregon (OR BPS): State-level Building Performance Standard with early compliance incentives 
  3. Boston, MA (BERDO): Emissions-based performance limits by building type 
  4. Washington, D.C. (DC BEPS): ENERGY STAR score–based performance requirements 
  5. Philadelphia, PA: Building performance law tied to energy targets and improvement pathways 

These laws go beyond reporting and require verified performance outcomes. 

Washington BPS: The First Statewide Model

Washington became the first state to implement a true statewide BPS law. 

The Washington Clean Buildings Performance Standard applies to non-residential buildings and is structured in tiers based on size. Covered buildings must meet Energy Use Intensity (EUI) targets or follow approved compliance pathways. 

Washington’s approach also introduced early adopter incentives, recognizing that compliance takes planning, not panic. 

Because it is statewide, Washington BPS often serves as a blueprint for other states considering similar laws. 

Oregon BPS: A Performance Law With Incentives

Oregon’s Building Performance Standard pairs compliance requirements with funding opportunities. 

Oregon requires covered buildings to improve performance over time, but the state has emphasized early action by offering incentive funding for planning, benchmarking, audits, and compliance preparation. 

This structure signals a broader trend: future BPS laws are likely to include both penalties and incentives, rewarding owners who act before enforcement ramps up. 

For portfolio owners, Oregon BPS reinforces the value of multi-year compliance planning. 

Boston BERDO: Emissions, Not Just Energy

Boston’s BERDO law focuses on emissions caps rather than energy use alone. 

Under BERDO, buildings must meet declining emissions limits based on property type. Owners who exceed caps must either reduce emissions, purchase credits, or face fines. 

This model introduces a new layer of complexity, because of electrification, fuel choice, and grid emissions all matter. 

Boston demonstrates how BPS laws are evolving from energy metrics into full climate compliance frameworks. 

DC BEPS: Performance Based On Scores

Washington, D.C. ties compliance directly to ENERGY STAR performance. 

Under DC BEPS, buildings must achieve a minimum ENERGY STAR score or complete approved improvement actions. Buildings that underperform are placed into compliance cycles with defined timelines.

This structure blends benchmarking and BPS concepts, but the enforcement trigger is performance, not reporting. 

DC BEPS highlights how ENERGY STAR scores are increasingly used as regulatory thresholds, not just informational metrics. 

Philadelphia’s Building Performance Law

Philadelphia uses performance standards to push improvement without mandating specific upgrades. 

The city’s law requires covered buildings to meet energy performance targets or submit improvement plans showing how compliance will be achieved. 

Philadelphia’s approach emphasizes planning and transparency, but penalties still apply if progress stalls. 

This reinforces a core BPS theme: documentation alone is no longer sufficient. 

Where BPS Laws Do Not Apply (Yet)

Not every city with energy laws has Building Performance Standards. This is where misinformation is most common. San Francisco and San Jose do not currently have BPS laws. These cities enforce benchmarking and audit requirements, not performance mandates. California focuses on reporting, audits, and disclosures rather than statewide performance caps. That distinction matters. Treating benchmarking cities like BPS cities can lead to over- or under-compliance. Understanding which rules apply is the foundation of a sound compliance strategy. 

Benchmarking VS. BPS: The Critical Difference

Benchmarking measures performance, while BPS laws enforce improvement. 

Requirement Type  What It Does  Enforcement 
Benchmarking  Tracks and reports energy use  Penalties for non-filing 
Energy Audits  Identifies efficiency opportunities  Penalties for non-completion 
BPS Laws  Require meeting performance targets  Penalties for underperformance 

Benchmarking feeds BPS compliance, but it does not replace it. 

Why BPS Laws Change Compliance Strategy

Once BPS laws apply, compliance becomes a multi-year planning exercise. 

Owners must track performance trends, model future targets, schedule audits strategically, and plan capital improvements in advance. Reactive compliance no longer works. 

For portfolios spanning multiple states, the risk multiplies when different buildings fall under different rule types. 

This is why centralized compliance visibility is becoming essential. 

What Building Owners Should Do Next

The smartest move is to identify where BPS laws apply before the deadlines cluster. 

Owners should first map their properties by jurisdiction, then determine whether each location is subject to benchmarking, audits, or performance standards. 

From there, a portfolio-wide compliance strategy can align reporting, audits, and performance planning instead of treating each requirement separately. 

Early visibility turns BPS from a risk into a manageable process. 

Final Takeaway: BPS Laws Are The Future Of Energy Compliance

Building Performance Standards represent a permanent shift, not a temporary trend. 

More states will adopt them, enforcement will increase, and performance will matter more than paperwork. Owners who understand where BPS laws apply today will avoid confusion, penalties, and rushed decisions tomorrow. 

Compliance no longer starts with filing. It starts with visibility.

If you manage buildings across multiple states, knowing where BPS laws apply is the first step toward staying ahead of them.

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