BERDO calculations changes could mean you are compliant

You may have noticed that your site’s greenhouse gas emissions intensity on the Building Emissions Reduction and Disclosure Ordinance (BERDO) calculator has changed in the last few months. When the ordinance was first established in 2021, BERDO and the Independent System Operator of New England (ISO-NE), the organization in charge of the New England electric grid, released predicted grid emissions factors for each year until 2050.

Recently, ISO-NE has released data showing that the electric grid is greener than originally predicted. BERDO calculations changes could mean your institution is actually currently in compliance with regulations.

BERDO has adapted by adding an additional factor to their method for calculating emissions from electricity, increasing the accuracy of calculations and lowering the emissions of many sites. This additional factor is called the Renewable Energy Portfolio Standard (RPS) Class I factor, and it reflects the difference between BERDO and ISO-NE’s original predictions and the amount of renewable energy on the grid now.

How has the calculation been updated?

The updated calculation is as follows:

G = U(1-R)E

Where:

G is the site emissions for a given year attributed to electric usage

U is the site electric usage in MWh for a given year

R is the RPS Class I percentage for a given year

E is the grid emissions factor for a given year

For example, let’s say an organization predicts they will use 150,000 kWh of electricity in 2027. According to Appendix B in the BERDO Emission Factors List, the predicted grid emissions factor for 2027 is 517 lbs of CO2e per MWh. Appendix D shows a RPS Class I factor for 2027 is 33%. 

This organization’s calculation is now:

Accounting for additional renewable energy

It would be great if every calculation was this simple, but emissions get more complex when you involve net metering credits, REC purchasing, or on-site electrical production like cogeneration or solar (all very worthwhile endeavors).

For example, if you opt for the higher blend of renewables in your electricity based on the Boston Community Choice Electric (BCCE) plans, your site’s percentage of renewables will be even higher. The increased amount of renewable electricity in your blend would mean that fewer fossil fuels are being used to generate your power and your associated emissions are lower. 

BCCE’s options include the basic option, the standard option, and the Green 100 option. In 2025, the basic option contains 27% renewable electricity, the standard option is 42% renewable, and the Green 100 is 100% renewable. If you opt for the standard option, your 2025 calculation does not use the RPS Class I factor, but the blend of renewables from BCCE’s standard option. The calculation is now: 

There is a higher associated cost per kWh for “opting up” to more renewable-heavy blends; however, it is important to compare the cost of ACPs to this higher cost of electricity when considering electricity blends. Also keep in mind that predicted grid emissions factors and RPS Class I factors are different for each year, an important variable to factor in when planning projects or capital improvements.

At the end of the day

Regardless of recent BERDO calculations changes, all Boston-based owners of buildings as small as 20,000 square feet will need to comply with BERDO’s ultimate goal of eliminating greenhouse gas emissions from buildings in Boston by 2050. Note that payments kick in this year for non-compliance and failure to meet emissions standards of up to $1,000 per day. 

Building owners will need to comply with BERDO via this three-step process:

• Report key building characteristics and your annual energy and water use through ENERGY STAR Portfolio Manager (ESPM)
• Complete the BERDO Reporting Form to provide key data related to emissions compliance
• Complete third-party verification

GreenerU is here to help with all of this. Reach out and ask about BERDO calculations, third-party verification, and pathways to decarbonization.

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