As New Jersey pushes for a cleaner, greener future, energy efficiency is taking center stage. A major step in this direction is the New Jersey Building Energy Benchmarking Program, a policy aimed at helping building owners track and reduce energy and water consumption.
At The Cotocon Group, we’ve been receiving a high volume of inquiries from multifamily and commercial property owners across New Jersey who are seeking guidance on this law. Here’s everything you need to know — from what the program entails to how to stay compliant and unlock energy savings.
What Is NJ Building Energy Benchmarking?
Building energy benchmarking is the process of measuring and comparing a building’s energy and water usage to similar buildings using the EPA’s ENERGY STAR Portfolio Manager tool.
The program assigns a score between 1 and 100, where 100 means your building is performing at top energy efficiency. This score helps owners identify where their building stands and what improvements can be made.
Who Needs to Comply?
As of 2023, benchmarking is mandatory for:
- Commercial buildings larger than 25,000 square feet
- Properties classified as:
- Class 4A Commercial (e.g., offices)
- Class 4C Apartments (residential buildings with five or more units)
Exemptions include:
- Shopping malls
- Restaurants
- Industrial facilities
- Assisted living centers
- Buildings under 25,000 SF
These classifications are based on New Jersey’s property tax assessment system, not on building use.
Why Benchmarking Matters
Benchmarking goes beyond compliance — it’s a valuable tool to:
- Cut operating costs
- Improve energy efficiency
- Increase property value
- Attract sustainability-minded tenants
- Support New Jersey’s clean energy goals (100% clean energy by 2050)
In the words of the late NJBPU President Joseph L. Fiordaliso, benchmarking is “the next crucial step toward establishing a statewide, energy-saving program.”
Key Benefits of NJ Energy Benchmarking
- Track Utility Usage: Identify where you’re spending the most.
- Compare Performance: See how your building stacks up to others.
- Plan Upgrades: Spot opportunities to save energy and reduce costs.
- Show Commitment: Demonstrate your dedication to sustainability.
- Access Future Incentives: Required for participation in certain state energy programs.
How to Comply with the NJ Benchmarking Law
Follow these steps to stay compliant and avoid penalties:
- Check your building classification:
Only Class 4A and 4C buildings over 25,000 SF are required to comply. - Collect your utility data (2023 calendar year):
Download gas, electric, and water bills. - Register with ENERGY STAR Portfolio Manager:
Create a free account at energystar.gov. - Input your building information and upload utility data:
Portfolio Manager will calculate your efficiency score.
- Submit your benchmarking report to NJBPU.
- Optional: Share your score publicly to improve transparency and appeal to eco-conscious tenants.
- Repeat annually: Keep tracking and updating your data every year.
Are There Penalties for Non-Compliance?
Currently, the NJ Board of Public Utilities (NJBPU) does not impose fines for non-compliance. However:
- Warning letters will be sent to non-compliant buildings.
- Buildings that ignore the warning will be listed as non-compliant in a public NJBPU database.
- Non-compliance may disqualify your building from future utility energy efficiency programs.
Is Benchmarking Required Forever?
Yes — this is an annual requirement. Buildings must report their energy and water data each year to remain compliant and to participate in state energy initiatives.
How The Cotocon Group Can Help
Feeling overwhelmed? That’s where The Cotocon Group steps in. We provide full-service support for energy benchmarking in New Jersey. Our experts:
- Identify if your building qualifies
- Gather utility data and building info
- Input accurate data into Portfolio Manager
- Submit reports on time to NJBPU
- Analyze your building’s energy score
- Recommend actionable improvements to save energy and money
By partnering with us, you’re not just ensuring compliance — you’re investing in your building’s long-term energy performance.
Final Thoughts
The New Jersey Building Energy Benchmarking Program is more than a regulation — it’s an opportunity. By tracking energy usage and making informed improvements, you’ll not only reduce operating costs but also future-proof your property.
Whether you’re managing a high-rise apartment building or a large commercial office, benchmarking is your first step toward a smarter, more sustainable future.
