BERDO and building emissions compliance in New England

What is BERDO?

The Building Emissions Reduction and Disclosure Ordinance (BERDO) requires certain buildings in Boston to report their energy and water use, submit third-party data verification, and meet increasingly strict emissions caps over time. Its ultimate goal is to reach net zero building emissions by 2050.

While BERDO is a Boston ordinance, the model it creates is increasingly relevant for buildings across New England. Cities across Connecticut, Massachusetts, and Maine have passed or are considering their own benchmarking and decarbonization laws. Understanding how BERDO works can help boards and owners across the region prepare for what may be coming next.

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 BERDO applies to

BERDO applies to residential buildings in Boston with 15 or more units and non-residential buildings that are 20,000 square feet or larger. If multiple buildings share a parcel, their size or unit count is considered together to determine coverage. Once a building is subject to BERDO, owners are required to do three things: report energy and water use annually, verify that data every five years, and stay under city-defined emissions limits.

Each year by May 15, covered buildings must report total energy and water usage through ENERGY STAR Portfolio Manager. This includes both site and source energy data. Third-party verification by a qualified energy professional is required every five years, regardless of how long you’ve been reporting. The next verification windows are in 2026, 2031, 2036, and 2041.

Starting in 2025, larger buildings — residential buildings with 35 or more units and non-residential buildings 35,000 square feet and up — must also meet specific greenhouse gas emissions standards. In 2030, those performance requirements will apply to smaller properties that meet the original BERDO coverage thresholds. Buildings that exceed their cap must either take corrective action or submit a formal plan for review by the Emissions Review Board.
 

Fines, flexibility, and alternative pathways

Failing to meet BERDO requirements can result in daily fines. Reporting and verification violations may lead to penalties of $150 to $300 per day, depending on the property size. If a third-party verifier uncovers an uncorrected reporting discrepancy, the City may issue an additional fine between $1,000 and $5,000. Exceeding the emissions cap can result in fines of $300 to $1,000 per day until the issue is resolved or an approved plan is in place.

If the property faces challenges like historic preservation limits, lab operations, or financial constraints, it may be eligible to request an alternative compliance plan. These include Individual Compliance Schedules or Hardship Compliance Plans, which must be submitted to the Review Board with detailed documentation. While they don’t eliminate obligations, they can offer more flexibility in how and when a property meets emissions targets.
 

Energy disclosure rules across New England

BERDO is currently the most developed building emissions law in New England, but it’s not the only regulation residential property owners and boards should be watching. Several nearby states and cities have launched energy disclosure and benchmarking programs that include larger multifamily buildings, and these may evolve into emissions caps or building performance standards in the coming years.
 

Connecticut

House Bill 5004, passed by the legislature in June 2025 and now awaiting the governor’s signature, directs the Department of Energy & Environmental Protection to deliver a comprehensive climate strategy report by 2026. If signed into law, the rulemaking could lay the groundwork for future residential benchmarking requirements.
 

Maine

Portland requires annual energy benchmarking for single-tenant residential buildings that are 20,000 square feet or larger, with multi‑tenant buildings of the same size beginning in 2026. The city is using the collected data to evaluate whether emissions caps or performance targets are feasible for residential buildings.
 

Massachusetts

Massachusetts’ Large Building Energy Reporting (LBER) program requires residential buildings 20,000 square feet and up to report annual energy use. Owners must submit any unmetered fuel data through the state’s BEAM Portal each year by June 30.

Cambridge’s Building Energy Use Disclosure Ordinance (BEUDO) requires residential buildings with 50 or more units to report energy use annually. Recent amendments exclude residential buildings from the city's new net zero targets, so while multifamily owners must continue reporting, they’re not currently subject to emissions caps.
 

Preparing your building for emissions regulations

New England property owners, boards, and managers should be proactive. Whether you’re in a city that already has benchmarking rules or you’re trying to anticipate upcoming state policy, here are steps that apply widely:

• Benchmark now: Use ENERGY STAR Portfolio Manager to track your building’s performance and spot inefficiencies.
   
• Understand your building systems: Schedule energy audits to identify where your emissions are coming from and what upgrades would have the biggest impact.
   
• Update your reserve study: Many reserve studies don’t account for large capital projects like HVAC retrofits, envelope improvements, or electrification—yet these may be necessary to meet future emissions targets.
   
• Stay plugged in: New state and local programs, incentives, and laws are launching regularly. Your management company or energy advisor can help you monitor what applies where.

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. That expertise is just as valuable for boards preparing for similar rules elsewhere.
 

How emissions laws affect capital planning and budgeting

Building performance and benchmarking rules across New England are shifting how communities plan for the long term. Boards are adjusting their budgets to include energy audits, consultant support, and phased retrofit investments. Some are postponing noncritical projects or reshaping reserve strategies to cover expected emissions-related infrastructure needs.

With local rules continuing to emerge, even properties not yet regulated can benefit from early planning. 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.