NYC doesn’t just want your data—it wants you to understand it. That’s the real goal behind New York City’s benchmarking laws, which require commercial property owners to track and report their building’s energy use. But many building managers are still unclear on how this data ties into something they see all the time: their ENERGY STAR score. Understanding the link between local energy compliance requirements and national ENERGY STAR certifications isn’t just a nice-to-know—it’s critical. Knowing how your building stacks up against others could be the key to avoiding fines, lowering energy costs, and achieving ENERGY STAR certified status. 

In this article, we’ll break down how benchmarking laws impact your ENERGY STAR score—and how that score reflects your building’s actual energy efficiency. If you're a commercial property owner or manager in NYC, this information is especially relevant. The goal isn’t just compliance; it’s performance. And when your building performs better, you save money, attract tenants, and meet stricter sustainability goals. Ready to connect the dots between reporting and results? Let’s get into how these laws and ratings work together—and why acting now matters. 

Understanding NYC Benchmarking Laws 

New York City’s benchmarking laws, introduced through Local Law 84 and later updated by Local Law 133, were designed to create accountability and transparency around building energy usage. These laws mandate that owners of large commercial and multifamily buildings report their energy and water consumption annually. The submission is completed using the ENERGY STAR Portfolio Manager, a platform maintained by the U.S. Environmental Protection Agency (EPA). 

The real purpose of these laws isn’t just to collect data—it’s to push buildings toward better performance. The assumption is simple: what gets measured gets managed. By requiring standardized reporting, the city ensures that building owners have a clear picture of where their properties stand in terms of efficiency—and provides the public with access to that information. 

Key details include: 

1. Who Must Report: Owners of buildings 25,000 square feet or larger. 

2. When to Report: Data must be submitted by May 1st every year. 

3. What to Report: Energy consumption (electricity, gas, oil, steam, etc.), water usage, and occupancy data. 

4. Submission Platform: ENERGY STAR Portfolio Manager. 

Penalties apply for late or incomplete reports, typically $500 per missed building per quarter, up to $2,000 annually. But beyond fines, poor compliance can result in energy grades that damage a property’s market perception. 

How the ENERGY STAR Score Is Calculated 

The ENERGY STAR score is a comparative rating, measured on a scale from 1 to 100, that evaluates how efficiently a building uses energy relative to similar buildings nationwide. A score of 50 represents median performance, while a score of 75 or higher qualifies a property for ENERGY STAR certification. 

The calculation methodology is data-driven and normalized for factors like weather, building size, and usage. In other words, it’s not just about how much energy your building uses—it’s how efficiently it uses that energy, given its operating conditions. 

Variables that influence the score: 

1. Energy Inputs: Monthly usage across all fuel types. 

2. Property Characteristics: Gross floor area, operating hours, number of occupants. 

3. Location: ZIP code and local climate zone. 

4. Use Type: Office, hotel, multifamily, retail, etc. 

5. Occupancy and Vacancy Rates: To reflect real-world operational conditions. 

This is why accurate and complete benchmarking data is so crucial. If you underreport occupancy or forget a fuel source, your ENERGY STAR score could drop significantly—even if your building is performing well. 

Why ENERGY STAR Scores Matter for NYC Buildings 

In NYC’s tightening regulatory landscape, a strong ENERGY STAR score can no longer be considered optional or simply “nice to have.” It’s becoming a powerful benchmark for everything from emissions compliance to leasing potential. 

The implications are wide-ranging: 

1. Regulatory Compliance: ENERGY STAR scores influence a building’s energy grade, which must be publicly posted. Low grades attract scrutiny and can lower tenant interest. 

2. Tenant Expectations: More companies now factor sustainability into leasing decisions. Buildings with better scores are viewed as more desirable and responsible. 

3. Market Value: ENERGY STAR certified buildings have been shown to command higher rents and resale values. 

4. Operational Efficiency: High-scoring buildings typically have lower energy costs, contributing to long-term cost savings. 

5. Climate Mobilization Act (Local Law 97): As emission caps roll out, ENERGY STAR data can help forecast compliance risks and plan retrofits. 

In short, your ENERGY STAR score is becoming part of your building’s public identity. For owners and managers, it’s no longer just a number—it’s a reputational and financial asset. 

Common Mistakes That Skew Both Benchmarking and ENERGY STAR Scores 

Even the best-intentioned building managers can fall into common traps during benchmarking. These errors don’t just affect compliance—they directly reduce your ENERGY STAR score, leading to poor public energy grades and unnecessary financial risk. 

Frequent issues include: 

1. Incorrect Square Footage: Including or excluding mechanical rooms, lobbies, or shared spaces inaccurately skews performance calculations. 

2. Missing Energy Sources: Overlooking oil deliveries, backup generator use, or tenant-paid utility bills leads to underreporting. 

3. Outdated Property Use Data: Not updating changes in occupancy, tenant turnover, or building renovations results in misaligned metrics. 

4. Metering Errors: Duplicate meters or combined readings that aren’t properly attributed can double-count or omit key usage. 

5. Assumed vs. Actual Data: Estimating usage or occupancy instead of pulling from real data sources introduces inconsistencies. 

Each of these mistakes undermines both your local benchmarking report and your national ENERGY STAR score. Worse, they’re often not discovered until after submission—making proactive auditing essential. 

How to Improve Your Score Through Better Benchmarking 

Improving your ENERGY STAR score doesn’t always require major capital upgrades. In many cases, the path to better performance starts with more accurate benchmarking. That means using your data not just for compliance, but as a strategic tool. 

Best practices include: 

1. Perform Routine Data Audits: At least quarterly, validate utility data against original bills and meter readings. 

2. Leverage Submetering: Break out tenant energy use to avoid overestimating landlord-controlled consumption. 

3. Update Space Attributes Regularly: Ensure gross floor area, use types, and operating hours reflect real-world conditions. 

4. Hire a Professional: Energy consultants can provide third-party reviews and ensure Portfolio Manager inputs align with EPA standards. 

5. Align with Capital Planning: Use benchmarking insights to identify low-performing systems and justify upgrades. 

The more accurate and detailed your benchmarking inputs, the more reliable your ENERGY STAR score will be. And once your data is dialed in, it becomes easier to spot inefficiencies, plan improvements, and meet both compliance and performance targets. 

When ENERGY STAR Certification Comes Into Play 

Achieving ENERGY STAR certification signifies that your building ranks among the top 25% of energy performers in the country. In NYC, this designation does more than enhance credibility—it can influence financing, leasing, and emissions planning. 

Certification requires: 

1. A Score of 75 or Higher: Based on verified benchmarking data. 

2. Third-Party Verification: A licensed professional engineer or architect must validate your submission. 

3. Consistent Data Quality: EPA requires all inputs to be accurate and well-documented. 

Benefits of certification: 

1. Public Recognition: ENERGY STAR certified buildings receive a plaque and digital badge for use in marketing. 

2. Incentive Eligibility: Some state and local programs offer rebates, priority permitting, or grants to certified buildings. 

3. Portfolio Differentiation: Especially useful for REITs and commercial portfolios that want to showcase ESG alignment. 

4. Tenant Retention: Green-certified buildings consistently attract and retain tenants with sustainability goals. 

While certification is voluntary, it’s a clear sign that a building is optimized—and it often starts with a clean, accurate benchmarking submission. 

Accurate Benchmarking Starts With the Right Data: Your Submission Checklist 

To help NYC building managers avoid common pitfalls, use this benchmarking submission checklist before filing each year: 

✅ Confirm your building is on the city’s Covered Buildings List. 

✅ Gather 12 months of utility and water data (all fuel types). 

✅ Match utility accounts to correct meters in Portfolio Manager. 

✅ Update property use types, floor area, and operating details. 

✅ Include tenant data if submeters or shared meters apply. 

✅ Assign correct space categories (office, retail, lobby, etc.). 

✅ Validate climate location and ZIP code for weather normalization. 

✅ Use Portfolio Manager’s “Data Quality Checker” before submission. 

✅ Generate and submit NYC benchmarking report by May 1. 

✅ Save all documentation for audits or ENERGY STAR certification. 

Benchmarking is not a one-and-done task—it’s a yearly opportunity to get smarter about your building’s energy performance. Use this checklist as your baseline for better reporting, better scores, and better long-term strategy. 

Turn Compliance Into Competitive Advantage 

By now, it’s clear that NYC’s benchmarking laws and your ENERGY STAR score are more connected than many property owners realize. Reporting energy data isn’t just a box to check—it’s the starting point for driving real performance. When your submissions are accurate and your metrics dialed in, you not only stay compliant but position your building as a top-tier energy performer. From avoiding fines to boosting tenant appeal, ENERGY STAR certified buildings offer advantages that go far beyond sustainability. 

If you're ready to turn your annual benchmarking into a strategic asset, let’s talk. Our NYC energy benchmarking experts are here to help you decode your data, improve your ENERGY STAR score, and move toward certification—without the guesswork. Sign up now for a free consultation and get one step closer to a more energy-efficient, compliant, and profitable building.