Rethink your approach to regulatory compliance
Building Performance Standards Across the Country
A significant operational shift is underway as jurisdictions across the United States implement mandatory Building Energy Performance Standards (BEPS). These regulations are becoming increasingly stringent, requiring carbon reduction beyond what efficiency measures can achieve alone, and tacking on major fines for non-compliance.
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Enacted Local Law 97, setting emissions caps for buildings over 25,000 square feet, first targets in 2024 with steep penalties
Requirements: 40% emissions reduction by 2030, 80% by 2050
Penalties: $268 per metric ton of CO2e over the limit annually
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Requires privately owned buildings larger than 50,000 square feet to meet emission standards, with first target in 2026
Requirements: 50% emissions reduction by 2032, carbon neutrality by 2050
Penalties: $10 per square foot annually for non-compliance
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Targets net-zero emissions through its new BEPS program for buildings over 35,000 sq ft initially, then expands to smaller buildings, first targets in 2030
Requirements: 20% emissions reduction by 2030, net-zero by 2045
Penalties: $1 per square foot per year for buildings failing to meet standards
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Requires 7% emissions reductions by 2026, escalating to 20% by 2030 through Regulation 28, first targets in 2026
Requirements: Greenhouse gas emission reduction targets for covered buildings
Penalties: $20 per ton of CO2e above compliance threshold, increasing over time PLUS $5,000 for each month out of compliance
The cost of inaction
Operational Costs
Buildings without comprehensive carbon reduction systems face up to 50% higher energy costs than their low-carbon counterparts, with this gap widening as utility rates rise. Carbon-intensive systems have shorter lifespans, and consume more resources, creating a compounding financial burden.
Compliance Penalties
Traditional energy efficiency measures achieve only 15-20% emissions reductions, far below the 40-80% now required by most regulations. Annual fines ranging from $1-10 per square foot are designed specifically to exceed the cost of comprehensive carbon reduction solutions.
market risk
A widening performance gap exists between merely efficient buildings and low-carbon buildings. This disparity directly impacts tenant attraction, rental rates, and asset valuation, creating a challenging market position for buildings without advanced carbon reduction systems.
HOW WE CAN HELP
Our Carbon Reduction System goes beyond conventional efficiency measures to deliver true carbon reduction
Our Carbon Reduction System cuts HVAC energy use by up to 50% while actively removing CO₂ from indoor air. Building owners gain verifiable data on energy savings and carbon capture for regulatory compliance and ESG reporting—delivering substantial cost benefits and environmental impact without the compliance headaches.
Model case study
the following is a model* case study of a building in Denver Colorado out of compliance with Regulation 28.
Location: Denver, CO
Specs: Large commercial office building with event and meeting spaces - 195,426 sq. ft.
Current site EUI as of 10/2024: 80.8
Carbon Reform can reduce EUI by ~16% on average with full building implementation*
Result: EUI decrease to 67.9 which will satisfy their their regulatory targets until 2030
*This case study represents a hypothetical implementation of Carbon Reform technology at a site where we have not performed actual work. The building's energy usage intensity (EUI) data is derived from public reporting records, and the projected energy savings and emissions reductions are estimates based on our technology's performance in similar conditions.
These results should not be interpreted as guaranteed outcomes or proof of performance for any specific building.
