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Definition
Boston's building performance standard, updated and significantly strengthened in 2021, requiring commercial and multifamily buildings over 20,000 square feet to reduce greenhouse gas (GHG) emissions on a mandatory schedule toward net-zero by 2050. Buildings must meet interim emissions intensity standards — measured in kg CO₂e per square foot per year — in 5-year compliance periods (2025, 2030, 2035, 2040, 2045). Emissions limits vary by building type and tighten with each period. Noncompliant buildings face escalating per-ton-CO₂e penalties enforced by the Boston Inspectional Services Department (ISD). BERDO applies to approximately 3,500 large buildings in Boston, covering the majority of the city's commercial and multifamily building stock by square footage.
Why It Matters for Your Business
BERDO directly affects operating costs, asset values, and transaction risk for commercial property owners in Boston. Buildings that do not meet the 2025 or 2030 interim targets face annual penalties calculated per metric ton of CO₂e over the limit — penalties that compound year over year. Early compliance through HVAC decarbonization, electrification, and envelope upgrades is typically far cheaper than paying penalties over multiple compliance periods. BERDO also creates strong retrofit demand in Boston's commercial real estate market: building owners seeking compliance are primary buyers of heat pumps, building automation systems, LED lighting, and efficiency financing products like C-PACE. BERDO is frequently cited as a model ordinance; similar Building Performance Standards (BPS) have been adopted in New York City (Local Law 97), Washington D.C., Denver, and Seattle — with more cities following annually.
Frequently Asked Questions
What buildings does BERDO apply to in Boston?
BERDO applies to commercial and multifamily buildings with 20,000 square feet or more of gross floor area located in Boston. This covers approximately 3,500 buildings. Building types subject to BERDO include office buildings, retail, hotels, multifamily residential (4+ units), healthcare facilities, higher education, and industrial buildings. Buildings under 20,000 sq ft are exempt from the emissions limits but may still be subject to benchmarking requirements under Boston's earlier Building Energy Reporting and Disclosure Ordinance (the original BERDO, enacted 2013).
What are the BERDO 2025 and 2030 emissions limits?
BERDO sets emissions intensity limits by building type in kg CO₂e per square foot per year. Limits tighten in each 5-year compliance period. For example, office buildings face a specific kg CO₂e/sqft/yr target for 2025 and a lower limit for 2030. The exact targets vary by property type (office, retail, multifamily, hotel, etc.) and are published by the Boston Environment Department. Buildings must meet the applicable standard for their primary use type. Contact the Boston ISD or visit boston.gov/departments/environment/berdo for current published limits by building type.
What is the penalty for BERDO noncompliance?
Penalties are assessed per metric ton of CO₂e that a building emits above its applicable annual emissions standard. The penalty rate is set by the Boston Environment Department and escalates over compliance periods to incentivize earlier action. A building significantly over its limit faces compounding annual penalties that can reach hundreds of thousands of dollars per year for large buildings. Penalties are enforced by the Boston Inspectional Services Department. Compliance plans and alternative compliance payments may be available for buildings with documented hardship — contact the Boston ISD for current penalty schedule and alternative compliance options.
How do Boston buildings typically achieve BERDO compliance?
The most common compliance strategies depend on a building's current emissions profile and primary fuel sources. For buildings heavily dependent on natural gas for heating: (1) High-efficiency heat pump systems replacing gas boilers and HVAC — the highest-impact single upgrade; (2) Building envelope improvements (insulation, windows) that reduce heating load and enable smaller heat pump systems; (3) LED lighting and building automation systems that reduce plug and lighting loads. For buildings already using electricity for most systems: optimization of HVAC controls, high-performance rooftop units, and demand management. Fuel switching from gas to electric is typically the critical path for Boston buildings, which have historically relied on natural gas for space heating.
Does BERDO apply only to Boston?
BERDO is Boston's specific ordinance. However, similar Building Performance Standards (BPS) have been enacted in multiple major cities: New York City (Local Law 97 — applies to buildings 25,000+ sq ft, with annual penalties starting 2024), Washington D.C. (Clean Buildings Act — covers 50,000+ sq ft buildings), Denver (Energize Denver — covers 25,000+ sq ft commercial buildings), Seattle (Building Tune-Up ordinance — operational performance requirements), and more cities are adopting BPS programs annually. If your building portfolio includes properties in multiple cities, each jurisdiction has its own compliance timeline, thresholds, and penalty structure — a portfolio-level compliance assessment is advisable.