BEPS Compliance and Enforcement Guidebook for Compliance Cycle 1
Chapter 4 - Alternative Compliance Pathway Options (Intro)

The CEDC Act gives DOEE the authority to establish additional compliance methods as it deems necessary. The Alternative Compliance Pathway (ACP) allows for methods for compliance outside of the three Principal Pathways (Performance Pathway, Standard Target Pathway, or Prescriptive Pathway) that achieve the equivalent or greater energy savings than the Principal Pathways. There are multiple forms the ACP can take, and the final requirements will be specified in the ACP Agreement (detailed in Section 4.1). An ACP option could target energy savings beyond the minimum energy performance requirements or account for a building’s unique circumstance. DOEE has outlined a number of options that building owners may propose to use for the ACP and DOEE will readily agree to. This chapter provides guidance and further explanation of DOEE’s policy related to the ACP options.

This chapter is divided into sections based on the ACP options:
• Deep energy retrofits
• New construction or change of property type
• Baseline adjustments
• Custom application

Other than the option for a deep energy retrofit with accelerated savings recognition, most ACP options will only apply to a small percentage of DC’s building stock and have specific eligibility restrictions.

For Cycle 1, ACP options outlined in this Chapter generally use baseline and evaluation years in line with the COVID-19 PHE delay (Sections 2.1 and 2.4). One-Cycle ACP options will use the delay to establish the end of the Compliance Cycle as December 31, 2026, unless otherwise stated. This means that buildings will use the baseline years of CY2018–2019 and an evaluation year of CY2026 unless the Pathway energy performance requirements are evaluated over multiple Compliance Cycles. The adjusted evaluation years and reporting verification deadlines will be outlined in the ACP Agreement described in Section 4.1.

4.1 – ACP Approval Process

Building owners who wish to follow the ACP will submit a proposal as part of their Pathway Selection or Pathway Change Application in accordance with the requirements of the ACP option (outlined in following sections) and select a backup Pathway from Chapter 3 in case DOEE does not approve the ACP proposal. DOEE will review the proposal to ensure that it aligns with all requirements. DOEE may request additional documentation, clarification on any of the submitted documents, or submission of a revised proposal. After DOEE has completed its review, it will use the proposed information to create an ACP Agreement.
 
The ACP Agreement will include the following:
• the status of the proposal: agreed to, agreed to with modifications, or not agreed to,
• the performance-based and/or action-based energy performance requirements for each Cycle (used to determine alternative compliance penalty adjustments described in Chapter 6); and
• the documentation methods that will serve as the reporting/verification requirements.
 
After DOEE has issued the ACP Agreement, the building owner will have thirty (30) days to appeal the agreement by submitting a revised ACP proposal through the Portal. DOEE will review the revised ACP proposal and either issue a new ACP Agreement, ask for additional clarification or documentation, or reject the appeal. If the appeal is rejected the building owner may proceed with the ACP as agreed to by DOEE or use its backup Pathway. All items included in the ACP Agreement become requirements of the Pathway for that building and a building owner must successfully complete all of the requirements to be in compliance.