As of Oct. 1, 2023, all New Jersey commercial properties and buildings larger than 25,000 square feet are mandated to benchmark their energy and water consumption for 2022. Benchmarking enables building owners and property managers to measure, track and analyze energy and water consumption and compare their performance on each factor to that of other properties.
With the data obtained from benchmarking, owners and operators can assess opportunities for improvements that reduce water and energy consumption, as well as realize additional benefits in the form of energy cost savings, reductions in greenhouse gas (GHG) emissions and property appreciation.
The law defines a commercial property as any building with Class 4A (commercial) or Class 4C (apartment) tax assessment classifications. New Jersey provides a publicly available “Covered Buildings Spreadsheet” that can be consulted to determine whether a building or facility is covered under the mandate.
How do I comply with the New Jersey Clean Energy Act?
In order to comply with the law, submissions must be made using the ENERGY STAR® Portfolio Manager, a tool for tracking and assessing energy and water use that’s utilized by property owners and managers representing nearly 25 percent of US commercial building space.1
Covered buildings should have received a notification from the Board of Public Utilities by July 1, 2023. While there are no financial penalties for noncompliance at this time, the board has stated it may revisit the issue depending on the voluntary compliance level achieved.
How Mazars can help
- We can help owners calculate GHG emissions of individual properties or the entire portfolio. We create systems that automate data collection and monitor for change over time.
- We can help with target setting and public disclosure by setting achievable, measurable, time-bound GHG emission and resource-use reduction targets.
- We can help devise an approach to sustainability reporting and disclosure of sustainability-related information.
- We can help define an approach to engage with stakeholders, including assessing and responding to their needs.
Contact Mazars' Sustainability Practice to formulate mid- to long-term sustainability strategies in ESG metrics and to hedge against the potential of future regulations and other risks.
Kajsa Ralston, Sustainability Manager
Ryan Elivo, Sustainability Consultant
1. Benchmark Your Building Using ENERGY STAR® Portfolio Manager®. https://www.energystar.gov/buildings/benchmark.
The information provided here is for general guidance only, and does not constitute the provision of tax advice, accounting services, investment advice, legal advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal or other competent advisers.