Letter grades are coming!
NYC’s building owners and real estate management firms now have one more thing on their plate to consider: Local Law 33 of 2018. LL33 compliance will assign letter grades to buildings required to benchmark energy and water consumption. The energy efficiency score will relate to the Energy Star Rating earned using the U.S. EPA Energy Star Portfolio Manager (PM).
The law will come into effect on January 1, 2020, and will utilize the previous year energy data to set the energy efficiency score and letter grade as follows:
B – score is equal to or greater than 70 but less than 85;
C – score is equal to or greater than 55 but less than 70;
D – score is less than 55;
F – for buildings that fail to submit required benchmarking information;
N – for buildings exempted from benchmarking or not covered by the Energy Star program.
Why is my letter grade lower than expected?
Property owners should be made aware that if their property earned an energy efficiency score of 75 for the 2018 Benchmarking filing, the new score for the 2019 benchmarking filing may have fallen as much as 20 points. In LL33 terms, what could have been a letter grade “B” could now be “C” or “D” based on PM updates implemented in August 2018. Property owners will want to learn how the Energy Star PM update will affect their LL33 letter grade.
To understand the correlation and impact that the August 26, 2018 Energy Star PM update will have, it is important to look back at what took place as part of that update.