Building Energy Benchmarking Ordinance Passes – Biz New Orleans

Report on the New Orleans Building Energy Benchmarking Ordinance

Introduction and Strategic Context

On July 10, the New Orleans City Council enacted Ordinance No. 35,154, establishing the city’s first Building Energy Benchmarking program. This legislation mandates that large buildings exceeding 20,000 square feet must annually track and report their energy consumption. The ordinance is a cornerstone of the City’s Climate Action Plan, designed to reduce greenhouse gas emissions and enhance urban climate resilience. Large commercial buildings in New Orleans are responsible for approximately 20% of citywide greenhouse gas emissions, making this a targeted and impactful policy.

The initiative is supported by key municipal figures, including Mayor LaToya Cantrell and City Council Vice President Helena Moreno, who have highlighted its role in building a more equitable, efficient, and resilient city. The City’s Office of Resilience & Sustainability (ORS) spearheaded the ordinance’s development, building on its experience benchmarking municipal buildings since 2012, which resulted in a 23% energy use reduction between 2018 and 2021.

Alignment with Sustainable Development Goals (SDGs)

The Building Energy Benchmarking ordinance directly supports several United Nations Sustainable Development Goals (SDGs), positioning New Orleans as a forward-looking city committed to global sustainability targets.

• SDG 13: Climate Action: The ordinance’s primary objective is to reduce greenhouse gas emissions from the building sector. By collecting and publishing energy use data, the city can track progress towards its goal of achieving net-zero emissions by 2050, directly contributing to climate change mitigation efforts.
• SDG 7: Affordable and Clean Energy: By promoting energy efficiency, the ordinance advances the goal of ensuring access to affordable, reliable, and sustainable energy. Benchmarking helps building owners identify energy waste, leading to operational savings and lower utility bills for businesses and residents. This aligns with efforts to improve energy efficiency citywide.
• SDG 11: Sustainable Cities and Communities: The policy is a foundational step in making New Orleans more inclusive, safe, resilient, and sustainable. It improves building performance, enhances transparency in the building sector, and supports the development of a climate-resilient urban environment.
• SDG 8: Decent Work and Economic Growth: The ordinance is expected to catalyze the market for energy efficiency upgrades. This will stimulate investment in the green economy and create local jobs in energy services, retrofitting, and building management, promoting sustainable economic growth.
• SDG 12: Responsible Consumption and Production: The program encourages more responsible consumption of energy resources by making energy use visible and manageable for the city’s largest consumers.

Ordinance Requirements and Implementation

Compliance Framework

The ordinance will be phased in to allow building owners time to adapt. The requirements are as follows:

1. Phase 1 (January 1, 2026): Properties with a building area of 50,000 square feet or more must begin reporting annual energy use.
2. Phase 2 (January 1, 2027): The reporting requirement extends to properties with a building area between 20,000 and 50,000 square feet.

Reporting will be conducted using the U.S. Environmental Protection Agency’s (EPA) free ENERGY STAR Portfolio Manager tool. To ensure public transparency and inform future policy, the City will publish the annual energy performance data for all covered properties. Noncompliance may result in fines, though penalties will be waived during the first year a property is subject to the requirements.

Support and Funding

The implementation of the benchmarking program is supported by a $1.5 million grant from the EPA’s Climate Pollution Reduction Grant (CPRG) program, received in 2024. This funding will cover essential program costs, including:

• Staffing for program management.
• Public outreach and educational initiatives.
• Technical assistance to help building owners comply with reporting requirements.

The Office of Resilience & Sustainability will lead these support efforts to ensure a smooth rollout and maximize the program’s benefits.

Projected Impacts and Significance

Environmental and Economic Benefits

Energy benchmarking is a proven strategy with significant positive outcomes. According to the EPA, buildings that consistently benchmark their energy use save an average of 2.4% annually. The anticipated benefits for New Orleans include:

• Reduced Emissions: Directly addresses a major source of greenhouse gases, helping the city meet its climate goals.
• Cost Savings: Lowers utility costs for building owners and tenants through improved energy efficiency.
• Job Creation: Spurs demand for energy efficiency services, creating green jobs and strengthening the local economy.
• Improved Public Health: Reduced energy consumption from fossil fuels can lead to better air quality.
• Data-Driven Policy: Provides the City with critical data to evaluate and refine energy efficiency incentives and policies.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on New Orleans’ Building Energy Benchmarking ordinance addresses several Sustainable Development Goals (SDGs) by focusing on energy efficiency, climate action, sustainable urban development, economic growth, and collaboration.

• SDG 7: Affordable and Clean Energy: The core of the ordinance is to improve energy efficiency in large buildings, which directly contributes to this goal.
• SDG 11: Sustainable Cities and Communities: The initiative is a city-level policy aimed at making New Orleans more sustainable, resilient, and reducing its environmental footprint.
• SDG 13: Climate Action: The ordinance is explicitly identified as a key strategy in the city’s Climate Action Plan to reduce greenhouse gas emissions.
• SDG 8: Decent Work and Economic Growth: The article mentions that the policy is expected to create green jobs and strengthen the local economy.
• SDG 17: Partnerships for the Goals: The development and implementation of the ordinance involved collaboration between various city departments, private companies, non-profits, and a federal agency.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the specific actions and objectives described in the article, the following SDG targets can be identified:

1. SDG 7: Affordable and Clean Energy

   • Target 7.3: “By 2030, double the global rate of improvement in energy efficiency.” The article’s entire focus is on improving energy efficiency through the benchmarking ordinance. It states that the ordinance will help “reduce energy waste,” “lower utility bills,” and that buildings that benchmark save an average of “2.4% in energy use per year.”

2. SDG 11: Sustainable Cities and Communities

   • Target 11.6: “By 2030, reduce the adverse per capita environmental impact of cities…” The ordinance directly addresses this by targeting large commercial buildings, which “account for roughly 20% of citywide greenhouse gas emissions,” aiming to reduce the city’s overall environmental impact.
   • Target 11.b: “…implementing integrated policies and plans towards… resource efficiency, mitigation and adaptation to climate change, resilience to disasters…” The article presents the ordinance as an integrated policy that is part of the “City’s Climate Action Plan” to build a “more climate-resilient New Orleans.”

3. SDG 13: Climate Action

   • Target 13.2: “Integrate climate change measures into national policies, strategies and planning.” The ordinance is a clear example of a city-level government integrating climate change measures into its local policies, as it is a “key strategy identified in the City’s Climate Action Plan to reduce greenhouse gas emissions.”

4. SDG 8: Decent Work and Economic Growth

   • Target 8.2: “Achieve higher levels of economic productivity through… technological upgrading and innovation…” The article suggests the ordinance will “catalyze green jobs related to energy efficiency” and “strengthen local economies,” which aligns with promoting economic growth through a focus on the green technology sector.

5. SDG 17: Partnerships for the Goals

   • Target 17.17: “Encourage and promote effective public, public-private and civil society partnerships…” The article highlights the collaborative effort, mentioning the New Orleans City Council, the Office of Resilience & Sustainability (ORS), Entergy New Orleans, the Institute for Market Transformation (IMT), the Alliance for Affordable Energy, and the U.S. Environmental Protection Agency (EPA) as key partners in developing and supporting the ordinance.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article mentions or implies several quantitative and qualitative indicators that can be used to track progress:

1. Indicators for SDG 7 (Target 7.3)

   • Annual energy use of buildings: The ordinance requires buildings over 20,000 sq. ft. to “track and report their annual energy use.” This data is a direct indicator of energy consumption.
   • Percentage reduction in energy use: The article cites that the city’s municipal buildings achieved a “23% reduction in energy use between 2018 and 2021” and that benchmarked buildings save an “average of 2.4% in energy use per year,” establishing this as a key performance indicator.

2. Indicators for SDG 11 (Targets 11.6 & 11.b)

   • Volume of greenhouse gas emissions from the building sector: The article states the goal is to “reduce greenhouse gas emissions” and notes that large buildings account for “20% of citywide greenhouse gas emissions.” Tracking this percentage is a direct indicator of progress.
   • Number of buildings complying with the ordinance: The phased implementation (buildings >50,000 sq. ft. by 2026, and >20,000 sq. ft. by 2027) provides a clear metric for adoption of this sustainable policy.

3. Indicators for SDG 13 (Target 13.2)

   • Adoption of a climate action policy: The passage of “Ordinance No. 35,154” itself serves as a primary indicator that the city has implemented a specific policy to meet its climate goals.
   • Progress towards long-term climate goals: The article mentions the data will help the city “track progress and evaluate… policies to achieve net zero greenhouse gas emissions by 2050.”

4. Indicators for SDG 8 (Target 8.2)

   • Number of green jobs created: The article implies this indicator by stating the ordinance will “catalyze green jobs related to energy efficiency.”

5. Indicators for SDG 17 (Target 17.17)

   • Value of financial support from partnerships: The article explicitly mentions the city received “$1.5 million from the U.S. Environmental Protection Agency’s Climate Pollution Reduction Grant (CPRG).”
   • Number of stakeholders engaged: The article notes that the Office of Resilience & Sustainability “engaged over 200 stakeholders” and lists multiple public, private, and non-profit partners.

4. Table of SDGs, Targets, and Indicators

Source: bizneworleans.com