Building Performance Standards (BPS): Driving Energy Efficiency and Decarbonization in Existing Buildings 

Figure 1. The BPS map highlights the current status of BPS adoption at the state and local level across the U.S. Jurisdictions are colored according to their BPS adoption status and selected performance metric (e.g., emissions or energy).

By Elizabeth Willis

Buildings account for nearly 40% of the energy consumed annually in the United States, making them not only one of the largest contributors to greenhouse gas emissions but also one of the most promising sectors for meaningful improvement. Even small gains in building efficiency can have an outsized impact, driving significant emissions reductions and positioning buildings as a critical focal point for climate action. 

As cities and states across the U.S. begin implementing ambitious climate plans, Building Performance Standards (BPS) are emerging as a powerful and effective policy tool. By focusing on improving the energy efficiency of existing buildings, BPS policies fill a gap that traditional building codes—primarily aimed at new construction—fail to address. This is especially critical because most of the buildings that will be in use by 2050 have already been built. Achieving meaningful emissions reductions requires modernizing the aging building stock to meet higher energy performance standards. Building Performance Standards (BPS) help accomplish this by driving energy efficiency improvements, lowering operational costs, and reducing greenhouse gas emissions while delivering broader benefits such as improved air quality, job creation, and community health. 

In this post, we’ll delve into the fundamentals of Building Performance Standards, their importance in advancing climate goals, the challenges of implementing them, and why they hold particular promise for the Southeast, where unique hurdles intersect with urgent needs for equity-driven energy policy. 

Figure 1. The BPS map highlights the current status of BPS adoption at the state and local level across the U.S. Jurisdictions are colored according to their BPS adoption status and selected performance metric (e.g., emissions or energy).
Building Performance Standard Map

Map by U.S. Department of Energy

What Are Building Performance Standards (BPS)? 

Building Performance Standards (BPS) are policies that require existing buildings to meet specific energy or emissions performance targets. These policies are typically adopted by municipalities or states seeking to cut energy consumption, reduce carbon emissions, and improve public health. BPS policies typically focus on large commercial and multifamily buildings, requiring owners to meet measurable benchmarks that get more stringent over time, mandating continuous improvement in the buildings’ performance.  

Unlike traditional building codes, which focus on prescriptive requirements for new construction, BPS take an outcome-based approach. Property owners are granted the flexibility to choose the strategies that work best for their buildings, whether it’s retrofitting HVAC systems, improving insulation, installing renewable energy systems, or upgrading windows. What matters is the result: improved energy performance that aligns with the jurisdiction’s climate and energy goals. 

The brilliance of BPS lies in its focus on existing buildings—a critical yet often overlooked segment of the built environment. While new buildings constructed under modern codes already achieve high efficiency levels, older structures usually lag behind. By requiring existing buildings to improve their performance, BPS ensures that the entire building stock contributes to long-term energy savings and carbon reductions. 

The Benefits of BPS 

Building Performance Standards (BPS) offer a spectrum of benefits that extend beyond energy efficiency. They drive substantial energy savings, lower greenhouse gas emissions, and enhance the functionality of existing buildings. By modernizing aging infrastructure, BPS boost property values, stimulate local construction jobs, and improve indoor living conditions, promoting better air quality, comfort, and productivity for occupants. Communities benefit from cleaner outdoor air, improved public health, and measurable progress toward climate goals. Furthermore, these standards provide state and local governments with actionable insights, increase market transparency, and strengthen tenant satisfaction by fostering sustainable and efficient building operations. 

Why Building Performance Standards Are Essential 

Buildings are at the center of the climate challenge—and the solution. Accounting for nearly 40% of energy consumption in the U.S., buildings are one of the largest contributors to greenhouse gas emissions. Yet, they also represent a massive opportunity for progress. 

Most of the buildings we rely on today will still be in use decades from now. Focusing exclusively on making new buildings energy-efficient isn’t enough to meet our climate goals. Instead, we need policies that drive retrofitting and modernization in existing structures, where the potential for energy savings is most significant. 

This is where BPS policies shine. By setting clear, measurable performance standards, they provide a structured pathway for building owners to upgrade their properties over time. Jurisdictions with ambitious climate action plans—such as Washington, D.C., and New York City—are leveraging BPS to reduce emissions and energy use across their building stock, demonstrating the potential for other cities and states to follow suit. 

Challenges to Implementing BPS in the Southeast 

The Southeastern United States faces unique challenges that make implementing BPS both more complicated and more necessary. This region, characterized by high energy consumption, aging infrastructure, and inequities in energy access, provides a vivid case for why BPS policies are needed—and what makes them challenging to implement. 

One of the primary challenges to building innovation in the Southeast is the regulatory environment . States like Tennessee and Kentucky prohibit local jurisdictions from adopting building policies that go beyond state-mandated codes. This creates a roadblock for cities like Nashville and Louisville, which have expressed interest in BPS but are unable to move forward under current laws. 

Another significant hurdle is the prevalence of historic buildings in the region. While these structures are culturally and architecturally valuable, they are often expensive and difficult to retrofit for energy efficiency. Preservation restrictions can further complicate efforts to modernize these buildings, limiting the types of upgrades that can be made. 

Perhaps the most pressing—and often overlooked—challenge in the Southeast is the region’s high energy burden and widespread energy insecurity. The Southeast has the highest proportion of households in the U.S. that spend an unsustainable percentage of their income on energy costs. This problem disproportionately affects low-income families and communities of color, many of whom struggle to afford consistent and reliable energy. 

Energy insecurity forces families to choose between paying their utility bills and meeting other basic needs like food, medicine, or rent. By reducing energy consumption and lowering energy bills, BPS policies have the potential to alleviate this burden, creating a more equitable energy future. However, historic disinvestment in underserved communities complicates this process. Many property owners in these neighborhoods lack access to the capital needed for retrofits, perpetuating a cycle of inefficiency and inequity. 

Despite these challenges, the Southeast represents an immense opportunity for BPS to make a meaningful impact—especially when policies prioritize equity and target resources to areas that need them most. 

Establishing Benchmarking as a First Step 

Implementing a full-scale BPS policy begins with benchmarking. A benchmarking policy requires building owners to measure and report their energy use, creating a comprehensive dataset that helps jurisdictions understand the energy performance of their building stock. 

Benchmarking is a foundation for future BPS policies that sheds light on the energy performance of each building in a particular jurisdiction and provides a way to compare buildings. It also raises awareness among property owners, often spurring voluntary improvements before mandatory policies are enacted. For example, Atlanta’s voluntary benchmarking policy has provided valuable insights into energy consumption patterns, though the lack of required performance targets limits its potential to drive impactful upgrades. 

Leading by Example with Public Buildings 

Many jurisdictions begin their BPS journey with government buildings, using them as a proving ground for the policy. By mandating performance standards on public facilities, cities and states can demonstrate the feasibility of retrofitting projects, leading by example and highlighting the benefits of energy upgrades. 

This “lead by example” approach generates momentum for broader public adoption and helps refine the policy before extending it to the private sector. Public buildings provide a controlled environment for testing strategies, making them ideal starting points for BPS implementation. 

Conclusion: Building a Sustainable and Equitable Future 

With its unique challenges, the Southeast represents both a significant hurdle and an unparalleled opportunity. By prioritizing energy equity and targeting resources to underserved communities, BPS policies can do more than just reduce emissions—they can improve quality of life, alleviate energy burdens, and foster long-overdue investments in historically disinvested neighborhoods. 

As cities and states across the country work to meet ambitious climate goals, BPS offers a powerful tool to ensure that progress is inclusive, impactful, and far-reaching. Building Performance Standards are more than just an energy policy—they’re a pathway to a more sustainable, equitable, and resilient future.