Introduction
On August 11, 2026, the District Department of Energy and the Environment (DOEE) released version 1.2 of the Building Energy Performance Standards (BEPS) Compliance and Enforcement Guidebook for Compliance Cycle 1 (“Guidebook”). The Guidebook’s purpose is to assist you in understanding DOEE’s requirements, compliance methods, and enforcement of the BEPS Program – in short, to make it easier for you to succeed as we approach the conclusion of BEPS Compliance Cycle 1.
The updated Guidebook aims to reflect changes made in the BEPS Amendment Act of 2024, provide additional clarity, and detail new flexibility options to facilitate compliance and encourage energy efficiency in future compliance cycles.
Driving these changes is feedback from you, the buildings community. A Task Force of building stakeholders and subject matter experts, as well as direct feedback from owners, advocates, and service providers, informed the BEPS Amendment Act of 2024 and provided public comments on the proposed revision to the Guidebook issued in late 2025. Other changes arise from policy design updates outside of an official legislative or regulatory requirement. Read more about the changes between the Guidebook’s original text and the new version here.
Key Deadlines
- December 31, 2026 Compliance Cycle 1 ends
- April 1, 2027 Request for an exemption or delay
- May 3, 2027 Reporting deadline for Compliance Cycle 1
Summary of changes
The table below spells out some of the changes from version 1.1 of the Guidebook (published originally in February 2023), and what these changes may mean for you. This is not an exhaustive list but rather highlights larger shifts aimed at optimizing the effectiveness of BEPS for you while achieving the District’s goals.
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Compliance Cycle 1 began January 1, 2021, and ends December 31, 2026, as codified in the BEPS Amendment Act of 2024.
This timeline is unique to Cycle 1 and reflects how the BEPS Amendment Act of 2024 codified the one-year delay of compliance that DOEE previously provided through rulemaking in response to the challenges posed by the COVID-19 pandemic. This now allows those of you requesting a delay of compliance for other reasons to request the full three years. Future BEPS compliance cycles will be five years long.
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The reporting deadline for Compliance Cycle 1 is May 3, 2027, except in the event of an approved delay. This applies to submission of Compliance Actions Reports as well as third-party verified benchmarking data.
The BEPS Amendment Act of 2024 pushed back the benchmarking reporting deadline from April to May of each year, including third-party verification when it’s required in 2027 and every 6 years thereafter. Version 1.2 of the Guidebook also pushes back the Completed Actions Report to the same May deadline to streamline requirements. Delaying the reporting deadline by a month gives you more time to collect data that may not be available until January or February of 2027. In 2027 the due date for Compliance Cycle 1, benchmarking reporting, and the Completed Actions report is May 3, 2027.
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To address possible changes in ENERGY STAR methodology, DOEE created the DC BEPS Score.
The DC BEPS Score applies a consistent score model throughout the Compliance Cycle to account for potential scoring methology changes in ENERGY STAR. The DC BEPS Score still hews closely to ENERGY STAR but is intended to provide certainty to you while scoring and tracking progress.
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Credit for energy savings beyond 20%: Guidebook Section 4.2.1 adds the Accelerated Savings Recognition (ASR) Level 0 option for building owners who achieved deep energy retrofits in Compliance Cycle 1.
This ACP option credits you for achieving high energy reductions early in BEPS. New in Guidebook v1.2 is the Level 0 performance level for this ACP. Level 0 credits a building in Compliance Cycle 2 for having additional energy savings above the 20% requirement in Compliance Cycle 1. Building owners at this level would then need to achieve a 36% EUI savings requirement compared to their Cycle 1 baseline by the end of Compliance Cycle 2.
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Extended Deep Energy Retrofit (EDER): Guidebook Section 4.2.2 (opens in a new tab) confirms that condominiums and cooperatives are eligible to use the EDER ACP.
Allowing condominiums and cooperatives to use the EDER ACP gives those that choose this pathway more time to meet requirements in recognition of the unique challenges of their governance structure. The requirements are more stringent to compensate for the extended time.
The replacement or installation of fuel-burning equipment as part of the EDER Proposed Milestone Plan is prohibited, which aligns with the District’s goals to reduce harmful carbon emissions. The Guidebook notes that, while replacement of a fuel-burning system is not considered an accepted action under BEPS EDER, optimizing an existing fuel-burning system is accepted.
This confirms direction previously provided by DOEE in 2024.
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Incorrectly reported property type: Guidebook Section 4.3 (opens in a new tab) allows a building owner that incorrectly reported the building’s property type prior to the Compliance Cycle to switch pathways to the Change of Property Type ACP option.
This is now an option for incorrectly reported property types because the building may have received an incorrect Standard at the start of the BEPS Compliance Cycle. Buildings that use the Change of Property Type ACP Option are required to meet the Standard for its new property type by the end of the Cycle. See Section 4.3.2 (opens in a new tab) for more.
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Lower embodied carbon systems: Guidebook Section 4.4.1 (opens in a new tab) lays out baseline adjustment eligibility and methodology and now includes a new condition for lower embodied carbon systems.
This baseline adjustment applies to you if, during Compliance Cycle 1, you replaced an existing building system with a new, lower whole-life cycle carbon system that resulted in energy efficiency losses in the building. Your baseline Site EUI would then need to be modified to account for the increase in energy consumption. Effectively, this adjustment acknowledges the value of opting for new systems with lower embodied carbon by not penalizing you for a possible increase in energy consumption.
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Custom ACP prohibits fuel-burning equipment. See Guidebook Section 4.6 (opens in a new tab).
Guidebook Section 4.6 (opens in a new tab) confirms that the Custom Alternative Compliance Pathway Option may not include the replacement or installation of fuel-burning equipment.
Prohibiting the replacement of installation of fuel-burning equipment aligns with the District’s goals to reduce harmful carbon emissions. The Guidebook notes, however, that replacement of auxiliary devices in an existing fuel-fired system (e.g., controls, accessories, interconnecting means, and terminal elements) may be included but not integral parts of the system.
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Financial distress: Guidebook Chapter 6 and Appendix D now provide detail on a new exemption option for buildings that are in financial distress.
If you can demonstrate that it is infeasible for your building to comply with BEPS due to financial distress you may be able to receive an exemption from Compliance Cycle 1. Buildings under financial distress are also able to request a delay of compliance (Chapter 5). See the FAQs for more detail on financial distress and call-out box 2 for details on anticipatory distress. The deadline to apply for an exemption or a delay is April 1, 2027.
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Low occupancy: Guidebook Chapter 6 now provides detail on a new exemption option for buildings that were below occupancy thresholds during either of the two years prior to the compliance cycle (2019 or 2020).
If you can demonstrate that it is infeasible for your building to comply with BEPS due to low occupancy in either 2019 or 2020, you may be able to receive an exemption from this Compliance Cycle 1. The occupancy thresholds as defined by DOEE are outlined in Appendix B. If a building becomes unoccupied during the cycle you may apply for a delay of compliance; however, DOEE must be notified within one year. The deadline to apply for an exemption or a delay is April 1, 2027.
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Enforcement: The Guidebook replaces alternative compliance penalties with alternative compliance payments.
This change allows landlords in commercial buildings to pass along the cost of compliance to commercial tenants, incentivizing landlords and commercial tenants to collaborate on energy efficiency, if the cost pass through is allowed under the specific landlord and tenant’s leasing terms.
The process for DOEE to assess and enforce payment is outlined under the civil infraction process described in Section 7.2.
To calculate the maximum potential payments that may be assessed, use the formulas outlined in Section 7.1 (opens in a new tab) (for performance pathway) and Appendix E (opens in a new tab) (for standard target pathway).
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Building Improvement Agreement: Guidebook Section 7.4 (opens in a new tab) allows for an agreement between DOEE and the building owner where alternative compliance payments can be redirected towards energy efficiency in the building.
If you are assessed an alternative compliance payment, settlement options are available. The “Building Improvement Agreement” is a settlement option that gives you the opportunity to take part of your assessed payment and use it for agreed upon energy efficiency measures, implementing these measures within a timeline generally not to exceed two years. Starting with Compliance Cycle 2, your building would be placed on the trajectory pathway. See the FAQs for more details.
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Good Faith Efforts: While not included in Guidebook v1.2, we anticipate that DOEE will release information regarding Good Faith Efforts in late 2026.
As part of a possible settlement process, the pending Good Faith Efforts are intended for buildings that have made substantial progress but may not have fully met BEPS requirements by the deadline. Depending on the final criteria and process outlined, you may be able to reduce the alternative compliance payment amount.
Make sure to submit all necessary information for DOEE to determine whether your building has met the energy performance requirement on the appropriate pathway. Otherwise, according to Section 7.1, DOEE will assess the maximum payment amount. For buildings on the Performance and Standard Target Pathway, final reporting consists of the Completed Actions Report and third-party verified benchmarking data due May 3, 2027.
Frequently asked questions
Some other questions you may have while glancing through the Guidebook:
What’s a BEPS Score?
The District’s BEPS program uses the ENERGY STAR® scoring for performance targets in specific compliance pathways. As a result, when the ENERGY STAR scoring methodology changes, your building’s score could change as well – including during an ongoing Compliance Cycle. In addition to potentially moving the goalposts, this situation also makes it difficult to see what progress a building has made over time.
In Guidebook v1.2, DOEE addressed this issue by creating the DC BEPS Score: a mechanism that accounts for ENERGY STAR changes and applies a consistent score model throughout the District’s BEPS Compliance Cycle. Guidebook v1.2 confirms the BEPS Score for Cycle 1 is based on the January 1, 2021 model. Don’t worry: the DC BEPS Score and the ENERGY STAR score you see in Portfolio Manager won’t diverge too often. DOEE plans to post BEPS Scores for buildings on the Standard Target Pathway on the Building Owner Portal, and you are welcome to reach out to DOEE with any questions.
In this first cycle, the building typologies subject to BEPS that may be most impacted by ENERGY STAR model changes since 2021 include Hospitals (2021) and Medical Office buildings (2022). Read more about the DC BEPS Score in Guidebook Section 3.2.2.1. To see the BEPS Score for your buildings, log into your Building Owner’s Portal account.
What is the trajectory pathway? Will it be an alternative compliance pathway available in the District of Columbia?
Chapter 7 of the Guidebook mentions a future pathway to compliance that will be on offer in subsequent cycles: the trajectory pathway. This option isn’t offered for Compliance Cycle 1, but beginning in Cycle 2, buildings will be able to choose a trajectory pathway as a possible alternative compliance pathway. This option removes the uncertainty of a new performance target each cycle, instead setting you on a pre-defined path towards a long-term performance target, with performance milestones to hit along the way. Specifics around this pathway are in development, led by a subcommittee of the BEPS Task Force.
BEPS Guidebook v1.2 details expanded options for buildings in financial distress. While a delay of compliance was always an option, the BEPS Amendment Act of 2024 provided additional relief by allowing buildings facing financial hardship to apply for a whole-cycle exemption. The process is now outlined in Guidebook v1.2 (see Guidebook Chapter 6), which allows for a building to pursue either a delay or an exemption in event of financial distress. If a request for a delay is approved, then the building has up to three additional years to meet the energy performance requirements for Cycle 1 (by the end of 2029). If a request for an exemption is approved, this means the building isn’t required to meet the energy performance requirements for Cycle 1.
In order to qualify for an exemption or a delay, buildings must demonstrate both that it is practically infeasible to meet the performance standards for Cycle 1 (see Section 5.1.2.2) and the presence of financial distress during the Compliance Cycle (see Section 5.1.1 and Appendix D).
Whether for a delay or an exemption, the financial distress must be persistent – meaning the distress is severe enough that it reaches the threshold for intervention by an outside entity such as a financial institution, and/or the building has been in financial distress for multiple years.
Buildings must provide documentation to prove the existence of persistent financial distress. This can be done:
- Qualitatively, by providing official documents like notice of default, forbearance agreement, etc., reflecting the state of distress, OR
- Quantitatively, via a quantitative test that examines debt service coverage ratio and cash flow for income-producing buildings or an assessment of revenue for non-income-producing buildings.
Approval of an exemption or delay due to financial distress is up to DOEE and careful documentation that meets the criteria outlined in Appendix D will be needed to facilitate review. The deadline for either an exemption or a delay is April 1, 2027.
In some cases, a building owner might be in the middle of financial distress that doesn’t yet meet the criteria above. This “anticipatory financial distress” is defined in Appendix D.1.2.3 (opens in a new tab) as financial distress that begins during the Compliance Cycle, but is not yet reflected in at least two years of a building’s financials. Anticipatory financial distress can qualify you for relief from BEPS if you can provide additional proof of the expected increase in hard debt or lost income (see Table 35 in Appendix D (opens in a new tab)).
What is a Building Improvement Agreement?
If your building is assessed an alternative compliance payment at the end of the cycle, following the final reporting/verification deadline of the building’s approved Pathway, you can either (1) make the payment or (2) seek a settlement with DOEE. Guidebook v1.2 introduces a new settlement option called a “Building Improvement Agreement” which would allow you to redirect funds from the assessed alternative compliance payment towards implementing energy efficiency measures in your building.
As a general rule, the amount assessed will be adjusted relative to the amount you propose to invest in the building. The settlement amount may be higher than the assessed payment; this is to avoid becoming an incentive for delaying compliance through the settlement process. Table 23 in Guidebook Section 7.4 outlines this potential adjustment.
For more information on the process to enter into a settlement agreement with DOEE see Guidebook Section 7.4.1.
What is happening with the Prescriptive Pathway?
Section 3.3. of the Guidebook details all the requirements for a building owner to comply via the Prescriptive Pathway, an action-based choice you could opt for if you preferred to complete specific actions, reporting, and verification requirements in lieu of meeting a performance target. While this option was available in the current Compliance Cycle 1, there are no buildings on this pathway under Cycle 1 and it may not be offered in future compliance cycles as noted in Appendix C.3.
What, and where, are “Good Faith Efforts”?
“Good Faith Efforts” in this context refers to a process intended for buildings that have made substantial progress but may not have fully met BEPS requirements by the deadline. Under this option, you may be able to reduce the alternative compliance payment amount. DOEE anticipated releasing more information on Good Faith Efforts in Fall 2026.
What happened to the old versions of the Guidebook, v.1.1 and 1.0?
You can access previous iterations of the Guidebook under Development History on DOEE’s Building Performance Helpdesk site.
Closing
As we approach the finish line for the District’s first BEPS Compliance Cycle, finish strong by consulting version 1.2 of the Building Energy Performance Standards (BEPS) Compliance and Enforcement Guidebook. Find the Guidebook and other DOEE resources – including links to submit a direct question – on DOEE’s Helpdesk site, and sign up for the Hub’s newsletter to stay up-to-date on industry and market developments in the greater DC region. We also published a Getting Across the BEPS Finish Line blog to help you take action.