Chapter 17M-i. Commercial and Local Government Property Energy Conservation.

Subchapter I. Commercial Energy Conservation.

§ 8–1772.01. Definitions.

For the purposes of this subchapter, the term:

(1) “Air conditioner” means an appliance, system, or mechanism designed to remove heat and humidity from ambient air for thermal comfort.

(2) Repealed.

(3) “Commercial property” means income-producing property as identified under zoning classifications that would allow for uses such as office buildings, retail stores, and service facilities pursuant to Chapter 7 of Title 11 of the District of Columbia Municipal Regulations (11 DCMR § 700 et seq.).

(3A) "DOEE" means the Department of Energy and Environment.

(4) “Person” means:

(A) The owner or lessee of the portion of a commercial building or structure that is a retail or wholesale establishment that sells goods or provides services to consumers; and

(B) The record owner or lessee of any other portion of a commercial building or structure.

(5) Repealed.

§ 8–1772.02. Commercial property energy conservation.

(a) A commercial property shall keep exterior doors and windows closed when an air conditioner that cools the adjacent area is in operation, except:

(1) As needed to permit the ingress and egress of people or the delivery or shipping of goods;

(2) As needed to permit vehicular access to or for a loading dock; or

(3) When an emergency situation exists that requires an exterior door or window to be kept open.

(b) This section shall not apply to exterior doors or windows of hotels and restaurants that adjoin an indoor or outdoor seating area where food or beverages are served during times when the indoor or outdoor seating area is open for use by customers.

§ 8–1772.03. Penalties.

(a) If the Mayor determines that a violation of this subchapter has occurred, the person in violation shall be subject to the penalties set forth in this section.

(b) The Mayor shall impose a penalty on retail establishments in violation of this subchapter, which shall be a class 4 infraction under the schedule of fines in Chapter 32 of Title 16 of the District of Columbia Municipal Regulations (16 DCMR § 3200 et seq.)

(d) If payment of any amounts due under this section is not received by or before the due date, a penalty shall be added as provided by the Mayor through rulemaking.

(e) A violation of this subchapter shall be a civil infraction for purposes of Chapter 18 of Title 2 [§ 2-1801.01 et seq.] (“Civil Infractions Act”). Civil fines, penalties, and fees may be imposed as sanctions for an infraction of the provisions of this subchapter, or the rules issued under authority of this subchapter, pursuant to the Civil Infractions Act. Adjudication of infractions shall be pursuant to the Civil Infractions Act.

(f) The enforcement of this subchapter shall be administered by DOEE.

§ 8–1772.04. Rules.

The Mayor, pursuant to subchapter I of Chapter 5 of Title 2, may issue rules to implement the provisions of this subchapter.

Subchapter II. Building Energy Performance Standards and Benchmarking.

§ 8–1772.21. Establishment of a Building Energy Performance Standard Program.

(a) This section shall apply to:

(1) Beginning January 1, 2021, all privately-owned buildings with at least 50,000 square feet of gross floor area and all District-owned or District instrumentality-owned buildings with at least 10,000 square feet of gross floor area;

(2) Beginning January 1, 2027, all privately-owned buildings with at least 25,000 square feet of gross floor area; and

(3) Beginning January 1, 2033, all privately-owned buildings with at least 10,000 square feet of gross floor area.

(b)(1)(A) No later than January 1, 2021, and every 6 years thereafter, DOEE shall, by rulemaking or publication on the DOEE website, establish property types and building energy performance standards for each property type, or an equivalent metric for buildings that do not receive an ENERGY STAR score.

(B) DOEE shall establish reporting and data verification requirements for each 5-year compliance cycle.

(C)(i) In developing energy performance standards, DOEE shall seek to help the District achieve its short- and long-term climate commitments, including reducing greenhouse gas emissions by 60% by 2030 and carbon neutrality by 2045.

(ii) For buildings that are eligible for an ENERGY STAR score, the building energy performance standard shall be no lower than the District median ENERGY STAR score for buildings of each property type.

(2) DOEE shall establish campus-wide energy performance standards for post-secondary educational institutions and hospitals with multiple buildings in a single location that are owned by a single entity; provided, that the development of any standard by DOEE shall be based upon an analysis of the existing building efficiency of each campus and the compliance pathways shall achieve savings comparable to those outlined in subsection (d)(1) of this section. In establishing specific performance standards, DOEE shall consider:

(A) The existence of any historic buildings and any restrictions related to the treatment of historic buildings or districts;

(B) The diversity of building uses and requirements for the campus and its operations; and

(c) All buildings below the energy performance standard for their property type, established pursuant to subsection (b)(1) and (2) of this section, shall have 5 years from the date the performance standards are established to meet the building energy performance requirements established by DOEE.

(d) DOEE shall establish multiple compliance pathways for buildings to meet the building energy performance requirements, including:

(1) A performance pathway, which shall require a building to demonstrate a greater than 20% decrease in normalized site energy use intensity averaged over the last 2 years of the 5-year compliance cycle, as compared to the normalized site energy use intensity averaged over the 2 years preceding the first year of the 5-year compliance cycle; and;

(2) A prescriptive pathway for buildings to achieve compliance by implementing cost-effective energy efficiency measures with savings comparable to the performance pathway; and

(3) Other compliance pathways established by DOEE.

(e)(1) DOEE shall establish exemption criteria for qualifying buildings to delay compliance with the building energy performance requirements for up to 3 years if the owner demonstrates, to the satisfaction of DOEE, financial distress, change of ownership, vacancy, major renovation, pending demolition, or other acceptable circumstances determined by DOEE by regulation.

(2) DOEE may establish an exemption criterion for qualifying affordable housing buildings to delay compliance with the building energy performance requirements for more than 3 years; provided, that the owner demonstrates, to the satisfaction of DOEE, financial distress, change of ownership, vacancy, major renovation, pending demolition, or other acceptable circumstances as determined by DOEE by regulation.

(f) DOEE shall coordinate with the Sustainable Energy Utility, selected pursuant to Chapter 17N of this title, and the Green Finance Authority, established by § 8-173.21, to establish an incentive and financial assistance program for qualifying building owners and affordable housing providers to meet building energy performance requirements.

(g) Buildings failing to comply with the building energy performance requirements at the end of the 5-year compliance period shall pay an alternative compliance penalty established by DOEE. Penalties collected pursuant to this provision shall be deposited into the Sustainable Energy Trust Fund.

(h) By January 1, 2023, DOEE shall publish a report assessing whether the building energy performance standard should be revised to a standard based on reducing contribution to greenhouse gas emissions, and if so, recommend a method and timeline for doing so, including any statutory changes needed.

(i) DOEE may impose civil infraction penalties, fines, and fees as sanctions for a violation of this section or a regulation issued pursuant to this section, pursuant to Chapter 18 of Title 2.

(j) The Attorney General for the District of Columbia may commence a civil action in the Superior Court of the District of Columbia or any other court of competent jurisdiction for damages, cost recovery, reasonable attorney and expert witness fees, and injunctive or other appropriate relief to enforce compliance with this section or a regulation issued pursuant to this section.

(k) For the purposes of this section, the term "affordable housing" means buildings that are primarily residential, contain 5 or more dwelling units, and:

(1) In which use restrictions or other covenants require that at least 50% of all of the building's dwelling units are occupied by households that have household incomes of less than or equal to 80% of the area median income; or

(2) The building owner can demonstrate that at least 50% of the dwelling units rent at levels that are affordable to households with incomes less than or equal to 80% of the area median income.

§ 8–1772.22. Strategic energy management plan for District government buildings.

By January 1, 2022, the Department of General Services ("DGS") shall develop a strategic energy management plan for reducing energy and water use across the DGS portfolio of buildings. The plan shall include timelines and cost estimates for implementing:

(1) An energy retrofit program across at least 9% of the DGS portfolio of District government-owned buildings by square footage between 2021 and 2024, prioritizing buildings that have core systems and equipment nearing the end of their useful lives, with a goal of achieving at least 30% reductions in energy and greenhouse gas emissions; and

(2) A net-zero energy retrofit program across at least 12.5% of the DGS portfolio of District government-owned buildings between 2026 and 2032.

§ 8–1772.23. Rulemaking.

The Mayor, pursuant to subchapter I of Chapter 5 of Title 2, may issue rules to implement the provisions of this subchapter, including rules that increase the minimum size of the solar zone for particular classes of residential buildings.

Subchapter III. Sustainable Energy Infrastructure Capacity Building and Pipeline Program.

§ 8–1772.31. Sustainable Energy Infrastructure Capacity Building and Pipeline Program; establishment.

(a) There is established within the Department of Energy and Environment ("DOEE") the Sustainable Energy Infrastructure Capacity Building and Pipeline Program ("Program") with the purpose of increasing the participation and capacity of certified business enterprises, as defined in § 2-218.02(1D), or eligible businesses in energy efficiency fields.

(b) The Program shall apply to all energy efficiency measures designed to increase the renewable energy portfolio standard, as defined in § 34-1431(11), to 100% by 2032, including contracts and procurements related to professional services, construction, inspection, maintenance, or installation of energy efficient technology or materials.

(c) DOEE and the Office of Contracting and Procurement shall develop and use procurement criteria that includes Certified Business Enterprise utilization as an evaluation factor when shortlisting and selecting businesses for professional services and when selecting contractors in best value procurements with a contract value of more than $250,000.

§ 8–1772.32. DOEE and DSLBD; memorandum of understanding.

The Department of Energy and Environment shall enter a memorandum of understanding with the Department of Small and Local Business Development to maintain a training and certification program, with a duration of not less than 5 years, for certified business enterprises ("CBE") and CBE-eligible firms to increase their capacity to engage in renewable energy and efficiency design, construction, inspection, and maintenance.

§ 8–1772.33. Reporting requirements.

The Department of Energy and Environment shall submit an annual report to the Mayor and the Council on the program required by § 8-1772.32, which shall include detailed information on recruitment initiatives and the creation of contracting opportunities.