045 of 2017 - Building Benchmarking and Transparency Ordinance 0 17-1
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SALT LAKE CITY ORDINANCE
No. 45 of 2017
(Building Benchmarking and Transparency Ordinance)
An ordinance enacting Chapter 18.94 of the Salt Lake City Code, to improve market
transparency and recognition of energy efficient large municipal and private buildings through a
requirement for building energy benchmarking and disclosure.
WHEREAS, the City Council finds that enacting the ordinance set forth in Chapter 18.94
furthers the health, safety, or welfare of the citizens of Salt Lake City; and
WHEREAS, with Salt Lake City's projected population increase, energy efficiency of
buildings is important for long-term sustainability and conservation of our natural resources is
important for long-term utility savings;
WHEREAS,the U.S. Department of Energy and U.S. Environmental Protection
Agency recognize that the average commercial building wastes approximately 30% of the energy
it consumes;
WHEREAS, energy efficiency is a widely recognized cost-effective strategy to reduce
energy waste in buildings, therefore making wise use of energy resources, lowering associated
local pollution emissions and greenhouse gas emissions, and lowering utility costs;
WHEREAS, numerous leading businesses and organizations throughout Salt Lake City
have demonstrated commitment to benchmarking and implementing energy efficiency
improvements and this ordinance seeks to recognize their leadership and encourage greater
participation in these best practices;
WHEREAS, as an outcome of Sustainable Salt Lake: Plan 2015 sustainability goals, Salt
Lake City was selected as a participating city in the City Energy Project to further energy
efficiency and find solutions to cut energy waste, boost local economies, and reduce pollution.
WHEREAS, according to Envision Utah's Your Utah Your Future survey report Salt
Lake City residents identify poor air quality as both the number one environmental concern and
the area where the least progress is being made and an air pollution-reduction strategy supported
by the majority of Utahns, including residents of Salt Lake City, is to, "Retrofit ...buildings to
significantly improve their energy efficiency";
WHEREAS, in April 2016, the American Lung Association ranked the Salt lake City-
Provo-Orem area as having the 83rd worst annual particle pollution out of 171 monitored
metropolitan areas, and as having the 6th worst short-term particle air pollution among 186
monitored metropolitan areas;
WHEREAS, according to the Utah Division of Air Quality, air pollution emissions from
commercial buildings make up 3.9% of the total Wasatch Front air pollution on a typical winter
day or six tons per day of nitrogen oxides (NOx) emissions;
WHEREAS, according to Lawrence Berkeley National Laboratory, building tune-ups
represent a highly cost effective strategy to improve building energy efficiency with an average
simple payback of 1.1 years; and
WHEREAS, as Utah's capital city, Salt Lake City is taking the lead on implementing this
strategy to improve city-wide efficiency through adoption of market-based policies and
programs;
WHEREAS, on July 12, 2016, the Salt Lake City Council and Mayor Jackie Biskupski
formally adopted a Joint Resolution to transition the Salt Lake City community to 100 percent
renewable electricity sources by 2032, to reduce 80 percent of Salt Lake City's carbon emissions
by 2040, and to achieve these goals through energy efficiency as an important cost-effective
measure to achieve these goals;
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WHEREAS, recent economic and statistical analyses based on data from other cities
across the nation found that building energy benchmarking and transparency policies are strongly
correlated to energy savings in large commercial buildings;
NOW, THEREFORE, be it ordained by the City Council of Salt Lake City, Utah:
SECTION 1. New chapter 18.94, of the Salt Lake City Code shall be, and hereby is
enacted to read as follows:
Chapter 18.94
Commercial Building Benchmarking and Market Transparency
Sections:
18.94.010 PURPOSE.
18.94.020 SCOPE.
18.94.030 DEFINITIONS.
18.94.040 SUMMARY OF BUILDING ENERGY PERFORMANCE
REQUIREMENTS AND INITIAL COMPLIANCE DATES.
18.94.050 BENCHMARKING AND BENCHMARKING SUBMISSION
REQUIRED.
18.94.060 BUILDING ENERGY PERFORMANCE TRANSPARENCY.
18.94.070 PROVIDING BENCHMARKING INFORMATION TO THE
PROPERTY OWNER.
18.94.080 TUNE-UP EVALUATIONS REQUIRED.
18.94.090 NOTIFICATION.
18.94.0100 VIOLATIONS AND ENFORCEMENT.
18.94.0110 APPEALS PROCESS.
18.94.010 PURPOSE.
The purpose of this chapter is to promote long-term economic development in Salt Lake City
through the enhanced energy efficiency of existing commercial buildings, and to reduce local air
pollution and greenhouse gas emissions resulting from energy consumption in such buildings
through increased energy efficiency,by requiring certain non-residential buildings to benchmark
and report energy consumption and investigate opportunities to implement cost-effective
building energy tune-ups. Promoting and recognizing efficient buildings will contribute to a
cleaner environment and a more efficient use of energy resources.
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18.94.020 SCOPE.
The provisions of this chapter apply to buildings and building owners as follows:
A. All buildings owned by the city, that are not used for residential purposes, wastewater
reclamation plants, or for heavy manufacturing purposes as defined in chapter 21A.62.040,
with 3,000 square feet or more of Gross Floor Area; provided, however, no building with
less than 22,000 square feet of Gross Floor Area shall be subject to the provisions of Section
18.94.090.
B. All other Governed Buildings or Campuses of buildings that are not used for residential
purposes within Salt Lake City's geographic boundaries, where at least one of the buildings
is comprised of at least 25,000 square feet of Gross Floor Area. To the extent a Governed
Building contains elements or uses that are not included within the definition of a Governed
Building under this ordinance, the square footage of Gross Floor Area of such elements or
uses shall be excluded from the square footage of Gross Floor Area of such building and
shall not be considered a part of the Governed Building for purposes of this ordinance.
C. Exemptions
1. Governed Buildings that are new construction and the Certificate of Occupation was
issued less than two years prior to the applicable deadlines; or
2. Governed Buildings that do not have a Certificate of Occupation or temporary
Certificate of Occupation for all 12 months of the calendar year being benchmarked;
or
3. Governed Buildings where a full demolition permit has been issued for the prior
calendar year, provided that demolition work has commenced, some energy-related
systems have been compromised, and legal occupancy is no longer possible at some
point during the calendar year being benchmarked; or
4. Governed Buildings, including individual buildings or structures, that do not receive
utility services; or
5. Any of the following: a property or building that is not assessed ad valorem real
property taxes by Salt Lake County, houses of worship, apartments, agricultural
storage facilities and greenhouses, buildings used for heavy manufacturing purposes
as defined in chapter 21A.62.040, oil and gas production facilities, buildings that
contain a movie/television/radio production studios, soundstages, broadcast antennae,
data center, or trading floor that together exceed 10% of Gross Floor Area;
D. Governed Buildings do not include properties owned by state or federal government.
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18.94.030 DEFINTIONS.
A. "Base Building Systems" means a building assembly made up of various components that
serve a specific function and that are controlled and operated by the Owner or designee,
including:
1. The building envelope;
2. The HVAC (heating ventilating and air conditioning) systems;
3. Conveying systems;
4. Electrical and lighting systems;
5. Domestic hot water systems;
B. "Benchmark" means to track and report the total energy consumed for a Governed Building
for the previous calendar year and other descriptive information for such building as captured
by the Benchmarking Tool. Total energy consumption may not include separately metered
uses that are not integral to building operations, such as broadcast antennas and electric
vehicle charging stations.
C. "Benchmarking Submission" means a subset of:
1. Information input into the Benchmarking Tool; and
2. Benchmarking information generated by the Benchmarking Tool.
D. "Benchmarking Tool" means the Energy Star Portfolio Manager or any replacement tool
adopted by the U.S. Environmental Protection Agency, and any substantially similar tool
approved by the Director.
E. "Building ID Number" means the identification number that is unique to a Governed
Building.
F. "Building Management System"means a computer-based system that monitors and controls
a building's mechanical and electrical equipment, such as HVAC, lighting, power, fire, and
security systems, including an energy management system, incorporating interior
temperature sensors and a central processing unit and controls, which are used to monitor and
control gas, steam and oil usage, as applicable.
G. "Campus" means a collection of two or more buildings where at least one of the buildings
has at 25,000 square feet of Gross Floor Area or more and that act as a single cohesive
property with a single shared primary function, and are generally owned and operated by the
same party.
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H. "City Property" means all buildings owned by the city, that are not used for residential
purposes, wastewater reclamation plants, or for heavy manufacturing purposes as defined in
Chapter 21A.62.040.
I. "Department" means the Salt Lake City Department of Sustainability.
J. "Director" means the Director of the Salt Lake City Department of Sustainability.
K. "Energy Star Score"means the 1-100 numeric rating generated by the Energy Star Portfolio
Manager tool.
L. "Energy Star Portfolio Manager"means the tool developed and maintained by the U.S.
Environmental Protection Agency to track and assess the relative energy performance of
buildings nationwide.
M. "Financial Hardship" means a property that:
1. Had arrears of property taxes or water or wastewater charges that resulted in the
property's inclusion, within the prior two years, on the city's annual tax lien sale list;
or
2. Has a court appointed receiver in control of the property due to financial distress; or
3. Is owned by a financial institution through default by the borrower; or
4. Has been acquired by a deed in lieu of foreclosure; or
5. Has a senior mortgage subject to a notice of default.
N. "Governed Building" means all stand-alone and enclosed buildings used or occupied for a
commercial use, including:
1. Banking/financial services;
2. Stand-alone data centers;
3. Education (including K-12, daycare, pre-school, vocational school);
4. Entertainment/public assembly (including convention centers, gyms, movie theaters,
performing arts, meeting halls, recreation centers);
5. Food sales and services (including restaurants, supermarkets, grocery stores,
convenience stores);
6. Healthcare (including hospitals, medical offices, senior care communities, assisted
living and nursing care);
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7. Lodging (including hotels, motels);
8. Mixed use;
9. Offices;
10. Retail (including retail goods establishments, retail service establishments,
department stores, mass merchandising stores, specialty stores, enclosed retail malls
and shopping centers);
11. Technology/science (including data centers and research facilities);
12. Warehouses, distribution, and package delivery facilities;
O. "Gross Floor Area"means all gross floor area, which is the area included within the exterior
walls of a building or portion thereof, including mezzanines, enclosed interior balconies,
enclosed porches, basement floor area, penthouses, attic space having headroom of seven feet
(7') or more, and interior connected floor area devoted to accessory uses. Gross Floor Area
does not include balconies, patios, crawl spaces, courts, convertible indoor/outdoor space,
parking or loading areas, and covered walkways.
P. "Heavy Manufacturing" means the same as defined in chapter 21A.62.040.
Q. "Occupancy" means the physical occupancy of a unit or space by an occupant or a Tenant.
R. "Owner" means any of the following:
1. An individual or entity possessing title to a Governed Property;
2. The net lessee in the case of a property subject to a triple net lease with a single
Tenant;
3. The board of managers in the case of a nonresidential condominium;
4. An agent or party duly authorized to act on behalf of the owner.
S. "Persistent Commissioning"means an ongoing process of comparing data obtained through
the Building Management System with analytic models; identifying problematic sensors,
controls and equipment; and resolving operating problems, optimizing energy use and
identifying retrofits for existing buildings.
T. "Shared Benchmarking Information" means any descriptive information identifying
Governed Buildings with Energy Star scores above 50, and any portions of the Submitted
Benchmarking Information that Owner elects to be posted publicly on the Department's
website.
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U. "Submitted Benchmarking Information"means whole-building information generated by the
benchmarking tool and descriptive information about the Governed Building and its
operational characteristics, which is submitted to the Department. The information shall be
limited to:
1. Descriptive information
a. Property address;
b. Primary use type;
c. Gross Floor Area;
2. Output information
a. Site electricity consumption (kWh);
b. Site natural gas consumption(therms);
c. Site energy use intensity (site EUI);
d. Weather normalized source energy use intensity (source EUI);
e. Total annual greenhouse gas emissions;
f. Water use per gross square foot (if available);
g. The Energy Star Score, where available; and
3. Comparable information based on updates/revisions to Energy Star Portfolio
Manager.
V. "Tenant"means a person or entity occupying or holding possession of all or a portion of real
property, or all or a portion of a Governed Building pursuant to a rental or lease agreement.
W. "Tune-Up Evaluation" means a utility sponsored retro-commissioning process that
systematically evaluates Base Building Systems and identifies improvements to achieve
optimal building performance. This includes planning, investigation, and documentation to
optimize operation, maintenance and performance of the facility and/or its Base Building
Systems and assemblies.
X. "Tune-Up Evaluation Report" means a report certified by the Tune-Up Professional
demonstrating that a Tune-up Evaluation was conducted through a utility-sponsored tune-up
incentive program.
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Y. "Tune-Up Professional" means an individual or entity approved or utilized by local utilities
to provide tune-up evaluation services or who possesses other substantially similar credential
to perform a Tune-Up Evaluation required by this ordinance.
18.94.050 SUMMARY OF BUILDING ENERGY PERFORMANCE
REQUIREMENTS AND FIRST COMPLIANCE DATES.
Submitted Shared Date when first
Benchmarking Frequency of
Properties Benchmarking Information Tune-Up Tune-Up
Information Evaluation Report
Due Made Publically must be filed Evaluation
Available
City Property May 1,2018 Sept. 1, 2018 May 1, 2020 Prior to Dec. 31
of every fifth year
Governed
Building
(50,000 square Prior to Dec. 31
feet of Gross May 1, 2019 Sept. 1, 2020 May 1, 2021 of every fifth year
Floor Area or
larger)
Governed
Building
(25,000 square Prior to Dec. 31
May 1, 2020 Sept. 1, 2021 May 1, 2022
feet of Gross of every fifth year
Floor Area or
larger)
18.94.060 BENCHMARKING AND BENCHMARKING SUBMISSION REQUIRED.
A. Governed Buildings and City Properties shall be Benchmarked annually for the previous
calendar year according to the following schedule:
1. Each City Property shall be benchmarked no later than May 1, 2018, and every May 1
thereafter.
2. Each Governed Building with a gross floor area of 50,000 square feet or more shall
be benchmarked no later than May 1, 2019, and every May 1 thereafter.
3. Each Governed Building with a gross floor area of 25,000 square feet or more shall
be benchmarked no later than May 1, 2020, and every May 1 thereafter.
B. Below is a summary table of the first Benchmarking Submission compliance dates:
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Properties Benchmarking Submission by
Building Owner
City Property May 1, 2018
Governed Building (50,000 square feet of Gross Floor May 1, 2019
Area or larger)
Governed Building (25,000 square feet of Gross Floor May 1, 2020
Area or larger)
C. Benchmarking shall be performed and/or verified by the Owner.
D. Before making a Benchmarking Submission the Owner shall run all automated data quality
checker functions available within the benchmarking tool, and shall correct all missing or
incorrect information identified.
E. If the current Owner receives notification from the City that any information reported as part
of the Benchmarking Submission is inaccurate or incomplete, the information so reported
shall be amended in the benchmarking tool by the Owner and the Owner shall provide an
updated Benchmarking Submission to the Director within 60 days of the notification.
F. EXCEPTIONS:
1. Governed Buildings whose average Occupancy throughout the calendar year for
which benchmarking is required is less than sixty percent (60%); or
2. Governed Buildings under Financial Hardship; or
3. Due to special circumstances unique to the applicant's facility and not based on a
condition caused by actions of the applicant, strict compliance with provisions of this
ordinance would cause undue hardship or would not be in the public interest; or
4. An Owner is unable to benchmark due to the failure of either a utility provider or a
Tenant (or both) to report the information necessary for the Owner to complete any
benchmarking submittal requirement.
G. For properties qualifying for these exceptions, the Owner shall file documentation, in such
form and with such certifications as required by the Director, with the Department in the year
prior to the due date for the Benchmarking Submission, establishing that the Governed
Building qualifies for such an exception.
H. A randomly-selected subset of Benchmarking Submission not to exceed 10% of the total
Benchmarking Submissions completed in a given year may be subject to verification by the
city. Such reviews shall be conducted in a way so as to preserve the anonymity of individual
properties and shall be conducted at no cost to the Owner.
I. An Owner may make a claim of confidentiality for any Submitted Benchmarking
Information pursuant to the limitations under state law.
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18.94.070 BUILDING ENERGY PERFORMANCE TRANSPARENCY.
A. The city shall make accessible to the public the Shared Benchmarking Information for the
previous calendar year.
1. For each Governed Building with a Gross Floor Area of 50,000 square feet or more, on or
about September 1, 2020, and on or about each September 1 thereafter.
2. For each Governed Building with a Gross Floor Area of 25,000 square feet or more, on or
about September 1, 2021, and each September 1 thereafter.
B. The Department may, upon request, make available the Submitted Benchmarking
Information for the previous calendar year for an individual City Property or Governed
Building.
18.94.080 PROVIDING BENCHMARKING INFORMATION TO THE PROPERTY
OWNER.
A. Each Tenant occupying a Governed Building shall, within 60 days of a request by the Owner
and in a form to be determined by the Director, provide all information that cannot otherwise
be acquired by the Owner and that is needed by the Owner to comply with the requirements
of this ordinance.
18.94.090 TUNE-UP EVALUATIONS REQUIRED.
A. Tune-up evaluations are required for Governed Buildings and City Properties that are eligible
for participation in a utility-sponsored tune-up incentive program, as determined by the
utility offering the incentive program and that have an Energy Star Score of 49 and below.
Implementation of tune-up measures in addition to evaluations is encouraged but not
required.
B. The Owner shall conduct a Tune-Up Evaluation of the Base Building Systems of a qualifying
Governed Building and file a Tune-Up Evaluation Report prior to December 31 of the year in
which the tune-up evaluation is being performed. The initial reporting year shall be
determined by the last digit of the property's tax ID number as illustrated below, and
subsequent tune-up evaluation shall be completed and tune-up evaluation Reports filed every
fifth year thereafter:
Last digit of 50,000 25,000 square
tax ID square feet feet & above
number & above of of Gross Floor
Gross Area
Floor Area
0 2021 2022
1 2021 2022
2 2022 2023
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3 2022 2023
4 2023 2024
5 2023 2024
6 2024 2025
7 2024 2025
8 2025 2026
9 2025 2026
C. The Owner shall submit the Tune-Up Evaluation Report to the city.
D. EXCEPTIONS: Tune-Up Evaluations are not required if any of the following are met:
1. If the Governed Building is less than 5 years old; or
2. If a registered design professional or Tune-Up Professional certifies that:
a.The Governed Building has an Energy Star Score of 50 or above for the year
prior to the first tune-up due date or for at least two of the three years
preceding the due date of the Governed Building's Tune-Up Evaluation
Report.
b.There is no Energy Star rating for the building type and Owner submits
documentation that the Property's energy performance is better than the
energy performance of an average building of its type for two of the three
years preceding the due date of the Governed Building's Tune-Up Report.
c.The Governed Building has received certification under the most recent LEED
2009 rating system for Existing Buildings or Operation and Maintenance, or
Existing Buildings Version 4 rating system or future iterations of LEED
published by the U.S. Green Building Council or other substantially similar
rating systems for existing buildings, for at least two of the three years
preceding the due date for the Governed Building's Tune-Up Evaluation
Reports.
d. The Governed Building has performed a Tune-Up Evaluation within the past
5 years prior to the Tune-Up Evaluation due date.
3. If the Governed Building has a Persistent Commissioning program in place.
4. For properties qualifying for these exceptions, the Owner shall file documentation, in
such form and with such certifications as required by the Director, with the
Department in the year prior to the due date for the Tune-Up Report, establishing that
the Governed Building qualifies for such an exception.
E. A randomly-selected subset of Tune-Up Evaluation Reports not to exceed 10% of the total
Tune-Up Evaluation Reports completed in a given year may be subject to verification by the
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city. Such reviews shall be conducted in a way so as to preserve the anonymity of individual
properties and shall be conducted at no cost to the Owner.
18.94.90 NOTIFICATION.
A. Between January 1 and March 1 of each year during which an Owner is required to provide a
Benchmarking Submission, the Director shall notify these Owners of their obligation to
Benchmark performance for the previous calendar year through whatever means the Director
so chooses.
18.94.100 VIOLATIONS AND ENFORCEMENT.
A. If the Director determines that an Owner has failed to comply with the requirements of this
ordinance or the Owner submits incomplete or false information,the Director may issue up
to three written notices of noncompliance to the Owner, allowing Owner to cure such
noncompliance within 90 days after each notice of violation. After the third written notice of
violation, the Director may impose a fine of up to $500 per violation thereafter not exceeding
a total of$1,000 annually.
18.94.110 APPEALS PROCESS.
A. Any Owner affected by the Director's determination related to that Owner's property
regarding enforcement of this ordinance may request, within thirty (30) days of Owner's
written notification of the Director's determination, in writing filed with the Department, an
appeal hearing before the board of appeals and examiners, established under this Chapter.
SECTION 2. Effective Date. This Ordinance shall become effective on the date of its first
publication.
Passed by the City Council of Salt Lake City, Utah,this 29th day of
August , 2017.
CHAIRPERSON
ATTEST AND COUNTERSIGN:
Sa ke Ci Record is Office
CITY RECORDER
Transmitted to Mayor on August 30, 2017 •
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Mayor's Action: Approved. Vetoed.
11'644441)46(
AYOR
APPROVED AS TO FORM:
ITY RECORDER Salt Lake City Attorney's Office
�yPiGTh
4, Date 23
(SEAL) `' ,,� > Sign
* �; a�i egan ePaulis
*tq• Senior City Attorney
it'RA'MS��
Bill No. 45 of 2017.
Published: September 10, 2017 •
HB_ATTY-#63311-v 1-ORDINANCE_-_Benchmarking_(FINAL).docx
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