Are You Prepared for New Jersey’s July 1, 2024 Deadline for Commercial Building Energy Audits?

If you own or operate a commercial building in New Jersey larger than 25,000 square feet, you may have received a letter from the NJ Board of Public Utilities informing you of the requirement to audit and report the building’s 2023 water and energy usage by July 1, 2024. Below are the answers to some common questions we’ve received about this regulatory requirement.

Why was my building defined as a “commercial” building under the regulation?

The NJ Board of Public Utilities defines “commercial” by a building’s property tax assessment business class – Class 4A Commercial and Class 4C Apartments are subject to the required audits and considered “covered buildings.”

Who’s qualified to perform this audit?

The state of New Jersey certifies professionals as benchmarkers through the NJ Clean Energy Learning Center, who can perform the audit for you. Building owners also have the option to navigate the process and submit on their own.

What information is reported to the Board?

The Certified Benchmarkers use the United States Environmental Protection Agency (EPA)’s Portfolio Manager tool to collect utility data (water, sewer, electricity, gas, and other); analyze the building’s energy consumption and emissions via the Energy Star Portfolio Manager; and submit the findings. This establishes the required initial benchmark of the building’s energy and water use, allowing the benchmarker or others to follow up annually to record the efficiencies maintained or achieved.

Will I be expected to make any changes or upgrades to my facility after the audit?

Currently, the benchmarking is to provide information to state government which may guide future regulation. At this time, commercial building owners in New Jersey whose properties are subject to this regulation are only required to provide annual benchmarking reports. States that started similar programs several years ago are now establishing specific efficiency goals and deadlines.

Are there any benefits from benchmarking?

Measuring the energy and water performance of your commercial building provides several benefits to a building owner or operator:

• Establishes a score of 1-100 from the U.S. EPA, based on your building’s performance compared to others of comparable use, allowing you to track increased energy efficiency over time
• Prepares your building for easier compliance with anticipated, future energy efficiency programs, similar to those already enacted in surrounding states
• Enhances your property’s value by demonstrating its measurable and efficient water and energy use to prospective tenants or buyers
• Supports your corporate sustainability goals 

Contact GZA’s Victoria Curran, a New Jersey Certified Benchmarker, for more information at Victoria.Curran@GZA.com or 862-268-6343.