Newton’s City Council Zoning and Planning Committee discussed a draft Building Energy Reduction and Disclosure Ordinance (BERDO) at its October 28 meeting. BERDO would require owners of buildings 20,000 square feet and larger to report greenhouse gas emissions (excluding electricity) and replace fossil fuel heating and cooling systems on a schedule that varies with building size and use. Non-residential buildings over 100,000 square feet would begin reporting emissions in September 2025, and buildings between 20,000 square feet and 100,000 square feet would begin reporting emissions in September 2026.
Electricity is excluded from this reporting because the State has committed to using renewable energy sources for electrical power production. Currently, renewable power produces roughly three-tenths of in-state electrical generation. About half of the electrical power used in Massachusetts is produced in-state, and the rest is brought in over the regional grid managed by ISO New England, which is 12% renewable.
BERDO has been under discussion in Newton’s City Council since March of 2022, with multiple information sessions and opportunities for public input. According to the City’s presentation at the May 28, 2024, Zoning and Planning Committee, the focus of BERDO is to make a “large impact by regulating a small number of buildings.” Specifically, BERDO will regulate 293 large commercial buildings and 120 large residential buildings that together represent 28% of Newton’s greenhouse gas emissions.
The City began converting its municipal and school buildings to electrical systems eight years ago and should be in full compliance with BERDO through 2040. Commissioner of Public Buildings Josh Morse said that beginning in 2018, the City found that the cost of electrifying buildings is at or below the cost of fossil fuel systems.
Newton has 412 large buildings that would fall under the BERDO ordinance. About 67% will be in compliance with BERDO until 2040. Six large buildings in Newton will need system improvements to comply by 2027, and forty will need improvements by 2040. Large buildings not in compliance will be required to pay an Alternative Compliance Payment (ACP) of $234 per metric ton of carbon dioxide equivalent generated. Using data from the City’s May 28, 2024, draft BERDO presentation (page 11), Fig City News calculates that the ACP payment for a 20,000 sq. ft. commercial building would be roughly $40,000 per year.
The City plans to form an advisory group, including property owners, to write BERDO’s regulations and hold a public hearing to gather input.
The Charles River Regional Chamber has expressed concern that adding multifamily residential buildings to BERDO would increase housing costs in Newton and exacerbate the housing affordability crisis. Residential buildings comprise about 20% of Newton’s large buildings. During the last public comment period on BERDO, residential buildings were not included in the proposal.
The City Council’s Zoning and Planning Committee will continue the discussion of BERDO at an upcoming meeting.
