Chicago’s Commercial Buildings Now Required To Report Energy Performance: How will Chicago’s biggest buildings compare?

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Ken Anno, Founder and Managing Partner of CIC Energy Consulting, says, “The passage of this ordinance steps up the competition for commercial building energy performance. It is an important step in realizing the city’s goal to reduce energy usage by 30% in half of Chicago buildings by 2020.”

On September 12, 2013 the Chicago City Council passed Municipal Code 18-14 also known as the Building Energy Use Benchmarking Ordinance requiring the city’s largest buildings to benchmark their energy use for public disclosure. This public disclosure is designed to encourage property owners to manage and improve energy efficiency. Code 18-14 covers an estimated 3,500 commercial, multifamily, and public sector buildings, representing less than 1% of the City’s buildings but 22% of total energy consumption. Merchandise Mart, Willis Tower, Chicago Public Schools and residential buildings with 50,000 square feet or more are covered by the ordinance. Reporting requirements begin June 1, 2014 or June 1, 2015 based on building size.

“The passage of this ordinance steps up the competition for commercial building energy performance. It is an important step in realizing the city’s goal to reduce energy usage by 30% in half of Chicago buildings by 2020,” said Ken Anno, Founder and Managing Partner of CIC Energy Consulting, LLC.

Energy costs represent the single largest operating expense in commercial office buildings and are second only to personnel costs for K-12 school district operating budgets. The ordinance is a part of a national regulatory trend to reduce the consumption of energy by commercial buildings, which account for 36% of all electricity produced in the U.S. and 17% of total U.S. greenhouse gas emissions. According to the U.S. EPA, $107.9 billion is spent annually on energy by commercial buildings, with over 30% wasted or inefficiently used. This Chicago benchmarking requirement follows similar ordinances in New York, Philadelphia, Minneapolis, Seattle and San Francisco. Approximately 80 Chicago real estate, energy, and environment agencies backed the Chicago ordinance. The City has estimated the cost of compliance at $1,000 over two years for most buildings.

CIC Energy provides building owners with outsourced data collection and benchmarking services in accordance with standards set forth under American Society of Testing Materials (“ASTM”) E-2797-11 Standard Practice for Building Energy Performance Assessment for a Building Involved in a Real Estate Transaction (“BEPA”). CIC Energy performs all tasks necessary to ensure timely and accurate benchmarking in compliance with Ordinance 18-14. CIC Energy Consulting is located at CME Center, 30 S. Wacker Dr. Suite 1700, Chicago, Illinois, http://www.CICenergyconsulting.com.

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For more information or to schedule an interview with Michael Potter or Ken Anno,
Managing Partners of CIC Energy Consulting, please contact Marie Curatolo at CIC Energy Consulting, LLC. Phone 312-466-0500 or email Curatolo(at)CICenergyconsulting(dot)com.

CHICAGO IL: Office of City Clerk Municipal Code 18-14 https://chicago.legistar.com/LegislationDetail.aspx?ID=1450727&GUID=561901F3-54B2-4CB0-8F24-A62108ABC0A9

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Marie Curatolo

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