Boston - Building Emissions Reduction and Disclosure Ordinance (BERDO 2.0)

Introduction

Boston's Building Emissions Reduction and Disclosure Ordinance (BERDO 2.0) represents a significant expansion of the original 2013 BERDO legislation, enacted in 2021 under the City of Boston Code, Ordinances, Chapter VII. Implemented by the Air Pollution Control Commission (APCC), BERDO 2.0 builds upon the foundation of its predecessor, which initially focused on energy benchmarking, by introducing enforceable carbon emissions standards for large buildings. This initiative directly supports Boston's 2019 Climate Action Plan and its ambitious goal of achieving carbon neutrality by 2050. The ordinance aligns with similar municipal efforts across the nation, notably New York City's Local Law 97, and specifically targets buildings which account for most of Boston's total emissions. Through its combination of emissions caps, renewable energy incentives, and the establishment of an Equitable Emissions Investment Fund, BERDO 2.0 demonstrates Boston's leadership in urban climate policy while addressing critical environmental justice concerns.

Reporting Requirements

Beginning in 2025, BERDO 2.0 mandates comprehensive annual reporting from covered buildings, requiring submission of detailed energy and water usage data, carbon emissions calculations, and building characteristics through the ENERGY STAR Portfolio Manager platform. Reports are due by May 15 each year, with an extended deadline of June 15 for initial filings. Building owners must provide specific information including energy consumption broken down by fuel type and meter, which serves as the basis for calculating CO₂ equivalent emissions. The reporting also requires documentation of building use types and floor areas, which determine applicable emissions standards, as well as any renewable energy purchases such as Renewable Energy Certificates or Power Purchase Agreements. Importantly, the ordinance requires third-party verification by qualified professionals during the first reporting year and subsequently every five years to ensure data accuracy and compliance.

Covered Buildings

The ordinance applies to two primary categories of buildings: non-residential properties exceeding 20,000 square feet and residential buildings containing 15 or more units or spanning 20,000 square feet or more. A list of covered buildings published by the APCC identifies 5,596 buildings in Boston (as of 23 April 2025) that fall under these reporting requirements in the year 2025, including city-owned properties and buildings managed by the Boston Housing Authority. The implementation schedule of BERDO 2.0 varies by building size, with larger structures (35,000+ square feet or 35+ units) subject to emissions standards beginning in 2025, while smaller covered buildings (20,000-34,999 square feet or 15-34 units) have until 2030 to comply with these requirements.

Enforcement and Penalties

BERDO 2.0 sets a strict enforcement framework with escalating penalties for noncompliance. Buildings that fail to meet reporting deadlines face daily fines ranging from $150 to $300, with the amount determined by the building's size. More significant penalties apply to buildings that exceed emissions caps, with fines potentially reaching $300 to $1,000 per day. The ordinance provides alternative compliance options, allowing building owners to make payments of $234 per metric ton of CO₂ equivalent emissions above the limit. Non-compliant entities may face public disclosure of their violations and could lose access to flexibility measures such as blended emissions standards. Notably, revenue generated from these penalties directly supports the Equitable Emissions Investment Fund, which prioritizes environmental justice initiatives throughout the city. This comprehensive approach combines rigorous reporting requirements with meaningful enforcement mechanisms to drive measurable progress toward Boston's decarbonization goals.