San José Energy and Water Building Performance Ordinance
What is San José's Building Performance Ordinance?
San José benchmarking is required by the Energy and Water Building Performance Ordinance (BPO), Municipal Code Chapter 17.85. It requires owners of commercial and multifamily buildings of 20,000 square feet or more to benchmark their energy and water use every year and report it to the City of San José.
The ordinance has two parts. Annual benchmarking is due every May 1. Beyond Benchmarking, which started in 2023, requires buildings to show good energy and water performance, or make improvements, once every five years.
What buildings must comply in San José?
- Commercial (nonresidential) buildings of 20,000 sq ft or more
- Multifamily buildings of 20,000 sq ft or more
- City-owned buildings of 15,000 sq ft or more
Buildings zoned Heavy or Light Industrial have a permanent exemption. Other owners can apply each year for an exemption for vacancy, renovation or demolition, no certificate of occupancy, financial hardship, or a utility service lapse of 30 days or more. Churches and nonprofits are not automatically exempt, and exemptions must be renewed every year.
What is the penalty for non-compliance?
- Under 50,000 sq ft: up to $25 per day, capped at $2,500 per year.
- 50,000 sq ft and larger: up to $50 per day, capped at $5,000 per year.
- Warning notices: the City sends 30-day and 60-day notices to buildings that miss the deadline.
- Public disclosure: energy, water and compliance status appear on the City’s public disclosure map.
The City’s November 2025 FAQ says it is not currently issuing fines, but the penalties remain in the ordinance.
What is the compliance process?
San José owners report through ENERGY STAR Portfolio Manager. A typical filing looks like this:
- First, find your San José Building ID on the City’s Covered Buildings List.
- Next, gather 12 months of electricity, gas and water data for the previous year, including from tenants on separate meters.
- If you qualify for an exemption, submit your request by April 1.
- Then submit your report through the City’s reporting link, which opens each March 1, and pay the annual reporting fee (currently $150).
- Finally, if your building is in this year’s Beyond Benchmarking cohort, submit a Performance Pathway or Improvement Pathway report by May 1.
Need more time? You can request a 60-day or 180-day extension before May 1. The fee is still due on time.
What is the deadline for San José benchmarking?
San José benchmarking reports are due May 1 every year and cover the previous calendar year.
Next deadlineMay 1, 2027 for calendar-year 2026 data
Beyond Benchmarking reports are due May 1 of your building’s cohort year. The City notifies owners about six months before their due date.
Beyond Benchmarking performance standards
Every five years, each building must show it meets at least one energy standard and one water standard in at least two of the three previous years. If it does not, the owner must take the Improvement Pathway (an ASHRAE Level II audit, retro-commissioning or efficiency upgrades).
| Option | Energy standard | Water standard |
|---|---|---|
| High score | ENERGY STAR score of 75 or higher | EPA Water Score of 75 or higher |
| Score improvement | Score up 15+ points from baseline | Water Score up 15+ points from baseline |
| Low use intensity | Weather-normalized site EUI 25% below the mean for your property type | WUI 25% below the local mean for your property type |
| Use reduction | EUI cut 15% from baseline | WUI cut 15% from baseline |
Who goes when? Cohorts are set by building size and the last digit of the Assessor’s Parcel Number (APN). The first cohort in 2023 was buildings over 50,000 sq ft with APNs ending in 0 or 1. Newer buildings and buildings with LEED O&M certification may qualify for the Performance Pathway.
What utilities are required for benchmarking reporting?
- Water
- Electricity
- Natural Gas
- District Energy
- Any other purchased fuel
What is the purpose of San José's Building Performance Ordinance?
Buildings are a major source of energy use, water use and emissions in San José. The ordinance supports Climate Smart San José in two main ways:
Improve building performance. Beyond Benchmarking pushes lower-performing buildings to find and fix energy and water waste.
Make performance transparent. Public data helps tenants and buyers compare buildings. Buildings scoring 75 or higher can also apply for ENERGY STAR certification.
See our California AB 802 guide, our San Francisco guide, or our full energy benchmarking compliance guide.
This program includes an energy audit, assessment or tune-up requirement. Compare it with other cities in our energy audit compliance guide.
Frequently asked questions
When is the San José benchmarking deadline?
May 1 every year. The next deadline is May 1, 2027 for 2026 data. Exemption requests are due April 1.
Is there a fee to report?
Yes. Each covered building pays an annual reporting fee, currently $150. Invoices are mailed in early April.
What happens if my building fails Beyond Benchmarking?
You take the Improvement Pathway: complete an ASHRAE Level II energy or water audit, retro-commissioning, or qualifying efficiency upgrades with a qualified professional.
Do I still report to California under AB 802?
San José’s ordinance covers more buildings than AB 802 and adds water. Buildings over 50,000 sq ft should also confirm their state AB 802 reporting each year.
Can Energy Fave handle my San José compliance?
Yes. Energy Fave can collect utility data, submit your annual report, and prepare your Beyond Benchmarking Performance or Improvement Pathway filing.
Interested in benchmarking help?
San José BPO at a Glance
- Who's covered
- Commercial & multifamily 20,000+ sq ft
- Next deadline
- May 1, 2027The 2026 report was due May 1, 2026. Not filed yet? We can file it now →
- Late penalty
- Up to $50 per day
- Every 5 years
- Beyond Benchmarking
- Reporting tool
- Portfolio Manager + San José Building ID