Energy benchmarking mandates began in 2008, when a few select cities began requiring building owners to track and report energy usage for certain building types. Since then, over 50 cities and states across the country have adopted energy benchmarking and audit mandates.
States such as California (AB-802), New York (CLCPA), Washington, Illinois, Colorado, and others have such mandates, with cities like San Francisco, San Diego, Los Angeles (EBEWE), Berkeley, St. Louis, Orlando, Pittsburgh, Minneapolis, Portland, and others expanding on state requirements.
California set the bar with sustainability reporting requirements with SB 253 and SB 261, which are among the first U.S. laws to mandate corporate climate disclosures. This means entities that are eligible must report on Scope 1, 2, and 3 emissions while also reporting on their climate related financial risks. Since then, Minnesota has followed suit with NY, CO, NJ, IL, all proposing similar regulations.
SB 253: requires organizations doing business in CA with gross revenues over $1 Billion to disclose Scope 1, 2, and 3 emissions starting in 2026.
Compliance is due annually with fines up to $500,000 for non compliance. SB 261: mandates climate-related financial risk disclosures per TCFD standards for organizations with gross revenues over $500 Million starting in 2026. Compliance is due biannually with fines up to $50,000 per year.
