New Jersey Energy Benchmarking Law

Marvelous move to save the planet. Time-consuming hassle for building owners. 

Let us be your helping hand. 


Quick Overview – 

  • Annual Deadline: October 1 
  • Who Must Comply: Multifamily and commercial properties with over 25,000 sq. ft. area.

As the resident, manager, or vendor for a multifamily building, you may be getting a notification from the NJ Board of Public Utilities detailing that the property you own is obligated to evaluate its power consumption for 2022.  


Buildings on the Covered Buildings List, published on July 1, 2023, recently got similar notifications from the New Jersey Board of Public Utilities. If specific conditions aren’t met, buildings that are on this list or those that get written notification can be compelled to finish the benchmarking procedure for 2023. 


If you have gotten a letter, please make sure you maintain both a physical and electronic copy of it since it provides important details needed to move forward with New Jersey Energy Benchmarking requirements, including a special building ID to use to bring your property into compliance. 


The Cotocon Group has gotten numerous phone calls from our multifamily clientele in New Jersey this past week, asking for assistance and explanation. Residents, board members, and property managers have gotten in touch with us since they trust our advice. 


Some people might be shocked to find that if a building’s square footage equals or surpasses 25,000 sq. ft, the law will be obliged to benchmark the energy usage of their structures around New Jersey.


Here, get an in-depth review of the most recent energy benchmarking norms in New Jersey, which could possibly apply to where you live. Also, learn how our experts at The Cotocon Group can help you comply with the New Jersey Energy Benchmarking laws.

New Jersey Energy Benchmarking: What Is It?


A law in New Jersey called “NJ Energy Benchmarking Law” mandates that specific facilities track and report their energy and water consumption. Owners and managers in New Jersey must comply with the burdensome but effective New Jersey Energy & Water Benchmarking requirement. The procedure aids in locating energy savings, but compliance costs can be high.


We, the Cotocon Group, are the best at bridging the gap between the drawbacks and advantages that this regulation brings about. For New Jersey properties above 25,000 square feet that are either commercial properties (class 4A) or apartments intended for five or more families (class 4C), the benchmarking requirement is applicable. 

The Intention & Goal Behind New Jersey Energy Benchmarking Program

By forcing building owners to measure and report their energy and water usage, New Jersey’s benchmarking policy seeks to increase the efficiency of the state’s buildings in both areas. 


Building owners and managers can find possibilities to boost productivity, cut expenses, and contribute to reducing greenhouse gas emissions and preserving natural resources by gathering and analyzing this data. 


The obligation for public disclosure also intends to encourage energy and water awareness among renters and potential buyers or lessees, urging them to prioritize energy efficiency when choosing a place to live or work. 


Let Us Give You a Quick Recap on What Energy Benchmarking Is


When the state benchmarks a building or complex of buildings, they enter the energy performance of the buildings into the US EPA Portfolio Manager program. The EPA Portfolio Manager application accepts monthly or annual utility usage data for the following energy sources: green power, water and sewer consumption, propane, fuel oil, natural gas, and aggregate electricity. 


The EPA’s Portfolio Manager tool examines the energy usage of your property by calendar year, compares the type, size, location, and age of your building to buildings with comparable characteristics, and assigns the building an energy performance rating on a scale of 1 to 100, with 1 being the lowest performing and 100 representing the highest performing. 


The building can move forward with Energy Star Certification if it receives an EPA score of 75 or above for most building types, including multifamily buildings and communities. You can learn how to reduce operational expenses, draw in tenants and owners, and raise the building’s overall property value over time by hiring The Cotocon Group.


Grading a building’s energy efficiency can assist property managers, community clubs, and inhabitants in determining the energy performance parameters of the facility. It also helps your community start implementing modifications to reduce energy and water use.

Types of Buildings That Must Comply WIth NJ Energy Benchmarking Law


You must comply if you own or manage a structure that is at least 25,000 square feet in size and contains commercial or multifamily units. If any of the following hold true for your building, you may be eligible for an exemption: 


    • A building owner is not required to benchmark a new building until it has been used for a full calendar year. New buildings will be certified as operable for benchmarking purposes using the MOD-IV New Jersey tax assessment database. The MOD-IV database states that a commercial building will not be included in the Covered Buildings list until the second year following its construction. 
    • Buildings that have recently or will soon be demolished may be removed from the list of Covered Buildings, providing the building owner obtains a certificate of approval for demolition. Building owners who file an affidavit or certification of non-occupancy after a building is vacant for a full year (365 days) may be granted an exemption. The building owner may apply for an exemption for the specific reporting year if a foreclosure or bankruptcy action was filed during that reporting year. 
    • Other circumstances, such as when a building’s size is below the threshold, a mistake in the list of covered buildings, or when an unregulated utility disregards the 4/50 rule and only provides aggregated building-level data while refusing to provide tenant-specific information, may also warrant removal from the list of covered buildings, provided that sufficient justification is provided.


Got an Email/Mail That Your Community Must Comply With NJ Energy Benchmark Law? Let us Be Your Guide.


Implementing the New Jersey Clean Energy Act of 2023 comes with a deadline of October 1. However, recently, the state extended the deadline by 30 days more. 


Moreover, the New Jersey Board of Public Utilities mandates that commercial buildings with a floor area of less than 25,000 sq. ft. benchmark their energy use annually. The Cotocon Group is here to help whether your building is listed as one of the “covered buildings” or if you recently received a notification informing you that your community must adhere to the new energy benchmarking standard by October 1. 


At low New Jersey Energy benchmarking costs, our Cotocon staff specialists will provide energy benchmarking services for your neighborhood. They can assist you in navigating the exceptions to the list of covered buildings. 




  • The initial submission deadline is October 1, 2023, but there is a 90-day grace period before that date. 



How Can We Help You With NJ Energy Benchmarking Compliance?


Building owners must provide data about their energy consumption to the EPA’s Portfolio Manager. This reporting tool enables building owners to assess the energy efficiency of their structure in comparison to other comparable structures.




Our experts at The Cotocon Group hold expertise in using EPA’s Portfolio Manager. For building managers and owners searching for ideas on cost-saving measures and easier compliance, reap the most of our expert-led benchmarking. We also help you create a Building ID for the benchmarking report filing procedure. 


So, Leave The Hectic Chore of NJ Energy Benchmarking Compliance To Us


The Cotocon Group offers expert-led benchmarking compliance solutions for the major properties in New Jersey. Our energy audit procedures allow you to streamline compliance with energy benchmarking requirements while acquiring the resources to cut costs and improve your energy intelligence. 


To secure significant reductions in energy consumption for your commercial, multifamily, or public facility, gain access to the nation’s top energy specialists. To help organizations of all sizes cut their carbon footprints, meet challenging goals, and adhere to new rules, our team has partnered with New Jersey, benchmarking companies of all sizes. 


We can provide thorough, step-by-step help to create your energy management strategy or a convenient, user-friendly benchmarking solution. Schedule your free, customized demo right away, or get in touch with us to ask about pricing.


We, The Cotocon Group, have been providing Energy Benchmarking solutions for over ten years. With the implementation of the state of New Jersey’s clean energy and emissions mitigation programs, our Accredited NJ Benchmarkers on board are prepared to start this process.


New Jersey Benchmarking Compliance Cost 


Many property owners are concerned about the expense of adhering to New Jersey Energy Benchmarking compliance. The following are the many expenses that building owners must cover: 


    • Audit Cost: Building owners must hire a qualified auditor, which will cost money. Our auditor’s fee will change depending on the property’s size and level of detail. 
    • Execution Costs: Building owners must make several alterations to implement the specialists’ recommendations for retro-commissioning and energy audits. Our experts perform evaluations to check which energy-consuming equipment or tool at your property consumes the most energy and needs improvisation.
    • Filing Fee: A $minimal initial filing fee is required to submit the benchmarking report. Additionally, extension and amendment fees are the responsibility of property owners.


For Immediate Assistance, Contact On This Cotocon New Jersey Benchmarking Phone Number: (212) 889-6566



What is NJ’s requirement for new energy benchmarking? 


According to the 2018 NJ Clean Energy Act, starting in 2023 and for the prior calendar year (2022), all commercial buildings under 25,000 square feet must benchmark their yearly water and energy usage. 


Which structures must take part in the benchmarking program? 


Commercial properties (class 4A), residences with five or more families (class 4C), and specific state properties (a subsection of class 15C) must take part. The program does not include vacant land, homes with four families or fewer, farms, industrial assets, railroad properties, public schools, and other structures. 


How will the list of participating buildings be created?


Data from the State’s MOD-IV tax assessment database will be used to create the list, which is referred to as the Covered Buildings list. Every year, it will be updated. 


Do the benchmarking criteria have any exceptions? 


Yes, there are exemptions available for brand-new structures in their first year, structures that have been destroyed, structures that have been vacant for a full year, and structures that are in foreclosure or bankruptcy. Given enough proof, other circumstances may be exempt based on individual cases. 


Which tools are offered to building owners in relation to the benchmarking program? 


A comprehensive outreach strategy will be implemented for the program, including using a CRM system with a support desk, a training website with information modules, educational workshops, cooperation with state-level stakeholder organizations, and posting of benchmarking program material on the BPU’s benchmarking portal. 


How are the implementation costs for the benchmarking program covered? 


You must submit a cost recovery claim for any substantial costs incurred during the implementation of the benchmarking requirement. 


What steps are taken to optimize the benchmarking program’s advantages? 


The program supports energy-conserving initiatives for all NJ-based properties. Also, it uses utility data to identify and approach high-energy-use buildings. Moreover, the program aims to cooperate with other NJ-based energy-saving projects and programs for more efficient results.


How does the software protect the confidentiality of user data? 


To anonymize customer utility data, the program has leveraged data aggregation techniques, including the 4/50 rule. A stakeholder conference will also be held to get input on public reporting of benchmarking data to achieve an equilibrium between disclosure and data security. 


How does the 4/50 rule work? 


The standard procedure for data aggregation is the 4/50 rule. Utility data is pooled to make it anonymous if there are four or more tenants in a building or if no single renter consumes more than 50% of the electricity or water. Tenants’ explicit permission is required otherwise for building owners to view water and energy data.

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