BEPS Compliance and Enforcement Guidebook for Compliance Cycle 1
Chapter 4.2 - ACP Options for Deep Energy Retrofits

This section outlines the deep energy retrofit ACP options for building owners that have targeted a higher savings goal than required under a Principal Pathway. These options were developed with significant input from the BEPS Task Force and stakeholder groups.

4.2.1 – Accelerated Savings Recognition ACP Option

The Accelerated Savings Recognition (ASR) ACP Option is designed for buildings owners who achieve deep energy retrofits in Cycle 1 that meet the long-term goals of the BEPS Program and hasten energy efficiency work to meet DC’s climate goals. A building will follow the energy performance and reporting/verification requirements of its approved Principal Pathway for Cycle 1 (using the COVID-19 PHE delay evaluation year of CY2026). If the energy performance at the end of Cycle 1 reaches a level listed in Table 16, the building is eligible to choose the ASR ACP Option in future Cycles. The ASR option will be applicable in future Cycles, even if the building does not meet the Standard for its property type at the beginning of that BEPS Period. The ASR ACP Option is open to all property types.
 
Table 16 – Accelerated Savings Recognition Option Requirements

 
The ASR option’s energy performance requirements are the building must demonstrate it has maintained at least 75% of the level's savings by the end of each Cycle where recognition is earned. For example, a building that achieves an ASR level 2 goal of 49% savings must show that it maintained at least 37% of those savings by the end of Cycle 2 and Cycle 3. Buildings that do not maintain savings will have an opportunity to implement corrective measures over the Compliance Cycle, or they will be subject to an alternative compliance penalty.
 
Buildings that wish to propose the ASR Option for an ACP must submit a Pathway Selection Form for each applicable Compliance Cycle. Building owners should include the propose the level of ASR they are requesting and documentation showing that they qualify (District Benchmark Results and Compliance Reports can be used). The maintained savings energy performance and reporting/verification requirements will be outlined in an ACP Agreement. The Pathway Selection process and ACP Agreement will be completed by the deadlines of each applicable Compliance Cycle.
 

4.2.2 – Extended Deep Energy Retrofits ACP Option

The Extended Deep Energy Retrofit (EDER) ACP Option is designed for buildings that may wish to implement deeper retrofits to target higher energy savings that exceed the energy performance requirements over several Cycles and can be categorized as one of the following:
 
• affordable housing buildings (referred to as “Affordable Multifamily Housing”),
• rent-controlled buildings seeking to avoid a Capital Improvement (CI) petition for the purpose of meeting the energy performance requirements of a Compliance Cycle,
• College/University/Hospital campuses (referred to as “Campuses”), or
• for Cycle 1, buildings that are under financial distress due to the COVID-19 PHE.
 
In exchange for additional time to achieve energy savings, this option requires more robust energy performance targets to make up for lost early savings.
 
The EDER option follows multiple Compliance Cycles built around each building or campus’s relative distance from its target under a performance-based Principal Pathway. To ensure this option aligns with the District’s long-term energy and climate goals, DOEE has set the Site EUI savings targets listed in Table 17.
 
Buildings eligible for the EDER option due to financial distress due to the COVID-19 PHE may only request a two-Cycle EDER option.
 
The EDER option has energy performance and reporting/verification requirements for each Cycle based on the proposal outlined in Section 4.2.2.1 and set forth in an ACP Agreement.
 
Table 17 – EDER Option Energy Performance Requirement

 
For certain buildings/campuses, the energy performance requirement under the EDER option is expressed as a function of the building’s distance from the BEPS. The distance from the BEPS is determined by comparing a building’s or campus’s energy performance reported in CY2019, the most recent year available when the 2021 BEPS were established, against the energy performance the building would have needed to meet the BEPS. The distance between the two is expressed as a percentage of CY2019 energy use intensity.
 
A building/campus approved for the EDER ACP option that is able to meet the energy performance and reporting/verification requirements of a performance-based Principal Pathway by the end of Compliance Cycle 1—for example, by accelerating the implementation of energy efficiency measures and submitting a Completed Actions Report—will be considered compliant with requirements of Compliance Cycle 1. Such a building/campus not meeting the BEPS for a future Period(s) that is/are covered under the term of the ACP agreement may either continue implementing the existing agreement, i.e., meet the two- or three-cycle energy performance and reporting/verification requirements, or select a new Pathway for the future Compliance Cycle.
 
4.2.2.1 – EDER ACP Option Plan Submission and Approval
Affordable Multifamily Housing buildings, rent-controlled buildings, Campuses, and (for the first cycle only) buildings under financial distress due to the COVID-19 PHE that wish to propose the EDER option for an ACP must submit a Pathway Selection Form with a Cycle 1 delayed submission deadline of April 3, 2023. Building owners should include a completed EDER Proposed Milestone Plan described below. Additional information required if applicable for each building (either Affordable Multifamily Housing, rent-controlled, or buildings under financial distress due to the COVID-19 PHE) is designated below.
The EDER Proposed Milestone Plan should be as follows:
 

 
DOEE will review the proposed plan and may request clarification, additional documentation, or explanations. DOEE will only agree to proposals that meet the intent of the EDER option to achieve robust energy performance savings in exchange for the additional time. If agreed to, DOEE will prepare an ACP Agreement that outline the energy performance requirements, reporting/verification requirements and deadlines, and the alternative compliance penalty. At a minimum, requirements will include:
 
• Energy performance and reporting/verification requirements for each Cycle.
• Deadlines for the EDER Milestone Reports that provide DOEE with an update on progress with supporting documentation requirements. Milestone Reports are an opportunity for a building owner to communicate challenges and work with DOEE to adjust the plan accordingly to achieve the savings target.
• Deadline for the final Milestone Report submitted at the end of the applicable Cycle with supporting documentation requirements on completed actions and final savings achieved.
 
In reviewing energy performance and reporting/verification compliance at the end of each Cycle, buildings/campuses that do not meet the agreed-upon Cycle requirements could be removed from the Pathway. Failure to meet the energy performance or reporting/verification requirement of an ACP Agreement may subject the building owner to enforcement actions for that Cycle.