H.F. 5423 Summary

• Establishes a building energy performance standards program requiring covered buildings to reduce aggregated energy use intensity by 30% and greenhouse gas emissions by 90% from 2005 baseline levels by 2045.

• Classifies covered buildings into three classes based on ownership and size, with different compliance deadlines: Class 1 (public buildings, 50,000+ sq ft) by 2043; Class 2 (private buildings, 100,000+ sq ft) by 2044; Class 3 (private buildings, 50,000+ sq ft) by 2045.

• Requires interim performance standards every five years beginning in 2028, with final standards to be established by January 1, 2026, using Energy Star Portfolio Manager building types or alternatives.

• Allows owners to request extensions, exemptions, or adjustments for buildings in financial distress, low occupancy, or where compliance causes hardship; imposes penalties up to $1,000 for late requests and annual compliance payments for non-compliance.

• Provides financial and technical assistance through a contracted nonprofit hub, establishes a Building Performance Advisory Committee by August 15, 2024, and creates a grant program funded by compliance penalties to help owners implement energy efficiency improvements.