Rick Dimino
Last week, the Boston City Council unanimously approved an amendment to the city’s Building Energy and Reporting Disclosure Ordinance, known as BERDO 2.0, that sets aggressive benchmarks to achieve carbon neutrality in the building sector. This move is critical, as the large buildings sector, which is just 4 percent of Boston’s building stock, accounts for 60 percent of citywide emissions.
Since 2013, the city of Boston has required the owners of large buildings of at least 35,000 square feet to report and disclose their greenhouse gas emissions as a step toward encouraging energy efficient buildings. Now, the updated rules will require the owners of even more commercial and residential buildings to demonstrably reduce their greenhouse gas emissions to zero by 2050. All buildings of at least 20,000 square feet and residential buildings with 15 or more units will be included.
Over the past two years, A Better City and its member businesses and institutions have worked closely with the city’s environment team, city councilors, business organizations and advocates to shape the final ordinance language. Based on input from the business community, the new requirements are clearer and more achievable. For example, ensuring data reporting requirements include a defined methodology for calculating emissions that allow for the most up-to-date and accurate emissions factors customized to generation sources serving the local grid in Boston.
Oversight Board to be Formed
Acting Mayor Kim Janey is expected to sign the bill into law in the coming days. In the months ahead, the city’s continued engagement with the business community will be essential as technical details about reporting and approval processes are developed. In particular, the next mayor will be tasked with approving appointments to the nine-person independent review board charged with drafting revisions to regulations, approving individual and hardship compliance plans and issuing fines and penalties.
The board is slated to include experts in architecture, engineering, real estate development and management, as well as hospital operations, in addition to affordable housing, environmental justice, labor and workers’ rights and workforce development. A Better City looks forward to recommending specific appointments to the board and to working collaboratively with the board once it is convened. We also stand ready to support any working groups that may be convened to tackle unique challenges like healthcare institutions connected to district energy systems powered by fossil fuel.
The mayoral election is just a few weeks away, which may lead to significant turnover of the public officials responsible for implementing this bold new policy. In addition, City Councilor Matt O’Malley, who has led this effort, is not seeking reelection. He and the officials in the city of Boston’s Department of Energy, Environment and Open Space, deserve praise for leading a transparent and collaborative process and for their willingness to hear concerns, including those from the business community. Moving forward, constructive engagement with the Greater Boston business community will be necessary to make the next iteration of BERDO 2.0 a success.
CRE Needs Sympathy from City
Our elected and public officials must understand both the severity of the climate challenges facing Boston alongside the economic challenges facing the commercial sector of the Greater Boston economy. Boston’s building sector remains vulnerable, both from the immediate disruption related to the pandemic and the longer-term impacts of climate change. Amid declining revenues, heightened financial instability and increased operating costs, reaching net zero will be a challenge – but the sector is poised to rise to the occasion with partnership and support from the city and state.
There will also need to be careful coordination with buildings policy updates at a state level. A specialized opt-in stretch energy code under development, Gov. Charlie Baker is convening a “Commission on Clean Heat to set emissions reduction targets from heating fuels for buildings. The state’s three-year energy efficiency plans for 2022-2024 are also being updated to adhere to targets set by the Baker administration in July. In light of these changes, Boston and the state will need to identify additional funding mechanisms to ensure these emission targets can be met. How this new revenue is generated is another difficult policy area that is yet to materialize.
For now, we can be proud that Boston has taken such an important step toward achieving net zero carbon emissions by 2050. BERDO 2.0 lays a foundation for the city to achieve its climate targets, while protecting and improving the health and well-being of all our communities. The hard work is still ahead of us. Businesses, residents and elected officials alike must all work together to ensure its success.
Rick Dimino is CEO of A Better City.
