Boston BERDO: A guide to compliance for buildings

What is Building Emissions Reduction Disclosure (BERDO)?

The Building Emissions Reduction and Disclosure Ordinance, commonly known as BERDO, is a City of Boston law that requires certain buildings to track, report, and reduce their environmental impact over time. Under BERDO, owners must report annual energy and water usage and meet gradually tightening emissions standards aimed at reaching citywide carbon neutrality by 2050. These updates are part of Boston’s strategy to reduce building emissions, which account for roughly 71% of Boston’s total carbon footprint.

This article is not intended to and does not constitute legal advice or create an attorney-client relationship. Board members should consult their association’s attorney to discuss the legal implications of their decisions or actions prior to proceeding.
 

Who needs to comply with BERDO?

BERDO applies to residential buildings with 15 or more units and non-residential buildings that are 20,000 square feet or larger. If multiple buildings sit on the same parcel, their square footage or unit count is combined when determining whether the property is covered. If your building meets that threshold, you’re required to comply with the ordinance.
 

Annual reporting requirements

Covered buildings must report their total energy and water consumption to the City of Boston every year. This data is submitted through ENERGY STAR Portfolio Manager and must include both site and source energy use. The annual deadline to file is May 15. Missing this deadline, or submitting incomplete or inaccurate information, may result in financial penalties. This reporting requirement applies to all covered buildings, regardless of size or use. Accurate data collection, verification, and transparency are essential for effective reporting and future planning under BERDO guidelines.
 

Verification requirements

BERDO also requires third-party verification of your energy and water data every five years. The verification must be completed by a qualified energy professional. The next scheduled verification years are 2026, 2031, 2036, and 2041. Buildings covered by the ordinance must complete verification during those cycles, even if they’ve previously submitted annual reports.
 

Emissions performance standards

BERDO introduces binding emissions limits for larger buildings. Starting in 2025, residential buildings with 35+ units and non-residential buildings that are 35,000+ square feet must stay within city-defined greenhouse gas emissions caps. In 2030, these performance standards will expand to include residential buildings starting at 15 units and non-residential buildings starting at 20,000 square feet.

Building owners are responsible for measuring total greenhouse gas emissions and comparing them to the allowable thresholds. If a building exceeds the cap, owners must either reduce emissions or submit a plan to the city that explains how the building will meet compliance in the future. This plan must be submitted to the Building Emissions Review Board and is subject to approval.
 

Tips for compliance

Meeting BERDO requirements may feel overwhelming, but with the right approach, boards and owners can stay compliant and identify opportunities for long-term savings.

• Get familiar with your baseline: Understand your building’s current energy usage and emissions profile. Use Portfolio Manager to benchmark against similar properties.
   
• Act early: Don’t wait for deadlines. Identify inefficiencies, consider building upgrades, and develop a long-term strategy for emissions reductions.
   
• Plan for capital improvements: Focus on HVAC upgrades, lighting retrofits, insulation improvements, and smart building technologies. These investments can lower emissions and operating costs.
   
• Coordinate with your team: Involve your management company to align efforts and get expert advice.
   
• Consider financial incentives: Look for rebates or grant programs that can support your energy efficiency projects.

FirstService Energy, the energy advisory affiliate of FirstService Residential, can help support BERDO compliance by benchmarking building performance, coordinating third-party verification, and identifying practical energy upgrades.
 

Penalties for non-compliance

BERDO includes financial penalties for buildings that don’t meet reporting, verification, or emissions requirements:

• Reporting violations: $300 per day for large buildings (≥ 35k sq ft / ≥ 35 units) and $150 per day for smaller covered buildings, after a 30-day cure period.
   
• Failing to submit third-party verifications: This is typically treated as a reporting violation and carries the same daily fines.
   
• Discrepancies: If a third-party verifier finds a reporting error that isn’t corrected, the City may issue an additional fine between $1,000 and $5,000, depending on the severity and whether the mistake impacted emissions compliance.
   
• Emissions standard violations: $1,000 per day for large buildings and $300 per day for smaller covered buildings until the building demonstrates compliance or secures an approved plan.

Each type of violation is treated separately, so a single property may be fined for more than one issue in the same reporting year. Boston officials continue to provide updates on enforcement and options for flexibility. If your building is at risk of missing a target, you may be able to request an adjustment or apply for a custom compliance plan, subject to review and approval by the Emissions Review Board.
 

BERDO exemptions and alternative compliance pathways

BERDO recognizes that not all buildings are the same. Properties with unique challenges — such as historic buildings, lab facilities, or those facing financial hardship — may be able to request Individual Compliance Schedules or Hardship Compliance Plans. These requests must be submitted to the Emissions Review Board with supporting documentation and a proposed long-term plan. While these options don’t remove the obligation to comply, they may offer more flexibility on how and when targets are met.
 

How BERDO affects capital planning and budgeting

BERDO is changing how building owners and board members approach long-term planning. To meet emissions caps, many properties will need major upgrades, such as HVAC overhauls, building envelope improvements, or lighting retrofits. These projects may not be part of your current reserve study or capital plan. As a result, boards are reassessing their budgets to account for energy assessments, consultant support, and phased emissions reduction work.

In some cases, other planned improvements may need to be postponed or reprioritized to stay in step with BERDO requirements. A professional management company can help you build a realistic plan that balances compliance, timing, and cost. If you need help navigating BERDO requirements, contact FirstService Residential today for guidance tailored to your property.