March 4, 20269 min read

LA EBEWE Ordinance: Energy and Water Compliance for 20,000+ Buildings Across Los Angeles

You own a building over 20,000 square feet in Los Angeles? You're covered by the Existing Buildings Energy & Water Efficiency (EBEWE) Ordinance. This isn't just energy. It's energy AND water. That makes LA's program unique compared to most other cities.

The ordinance covers roughly 20,000 buildings across the city. That's a huge chunk of the commercial and multifamily market. Deadlines are rolling based on your building type and size, and penalties apply if you don't comply. If you're waiting for the city to send you a reminder, don't. They won't.

What Is the EBEWE Ordinance?

LA's EBEWE Ordinance requires large buildings to benchmark energy and water use, conduct periodic energy audits, and implement cost-effective efficiency upgrades. The program launched in 2019 and applies to buildings 20,000 square feet or larger.

What makes EBEWE different from programs in NYC, Chicago, or DC is the water component. Most building performance standards focus exclusively on energy. LA recognized that water efficiency is just as critical in a drought-prone region, so they bundled the two together.

The ordinance is enforced by the LA Department of Building and Safety (LADBS). They track compliance, issue penalties for non-compliance, and provide resources to help building owners meet the requirements.

Who's Covered?

If your building is 20,000 square feet or larger, you're in. That's one of the lowest thresholds in the country. Most cities start at 25,000 or 50,000 square feet. LA went lower because they wanted to capture more of the building stock.

Covered building types include:

  • Office buildings
  • Multifamily residential (5+ units)
  • Retail and commercial
  • Hotels and hospitality
  • Warehouses and distribution centers
  • Mixed-use properties

If you're the building owner, you're responsible. Not your property manager, not your tenants. You. The city will come after whoever's name is on the deed.

Exemptions Are Narrow

There are a few exemptions, but they're limited:

  • City-owned buildings
  • Qualified historical properties (with restrictions)
  • Industrial facilities primarily used for manufacturing
  • Standalone parking structures

If you own a typical commercial building, apartment complex, or retail center, assume you're covered.

Rolling Compliance Deadlines

LA's EBEWE Ordinance has rolling deadlines based on building type and size. The city phased in compliance over several years to avoid overwhelming the market with simultaneous audit and retrofit demand.

How the Deadlines Work

Buildings are assigned to compliance groups. Larger buildings and higher-energy building types faced earlier deadlines. Smaller buildings and lower-intensity property types got more time.

The city publishes a compliance schedule on the LADBS website. You can look up your building's deadline based on its type and size. Don't assume you have years to comply. Many buildings are already past their initial compliance date.

Check your building's deadline now. If you're overdue and you haven't filed, you're accruing penalties. The city doesn't send personal reminders. Compliance is on you.

What You Actually Have to Do

EBEWE has three main requirements: benchmarking, auditing, and retrocommissioning or retro-fitting.

1. Annual Energy and Water Benchmarking

You need to benchmark your building's energy and water use every year in ENERGY STAR Portfolio Manager. This is the same platform used in NYC, Chicago, and most other jurisdictions.

For energy, you're reporting electricity, natural gas, and any other fuel sources. For water, you're reporting total water consumption. Portfolio Manager calculates your building's Energy Use Intensity (EUI) and water use intensity.

You submit the annual report to LADBS. If you miss the deadline or file incomplete data, you're subject to penalties.

2. Energy Audit Every Five Years

EBEWE requires building owners to conduct an ASHRAE Level 2 energy audit every five years. This is a professional assessment of your building's energy use, identifying inefficiencies and recommending cost-effective improvements.

The audit needs to be conducted by a qualified energy auditor. The city maintains a list of approved professionals. Expect to pay $0.10 to $0.30 per square foot for a proper Level 2 audit. On a 50,000 square foot building, that's $5,000 to $15,000.

The audit report gets submitted to LADBS. They review it to make sure it's complete and meets the ordinance requirements.

3. Implement Cost-Effective Measures

Here's where EBEWE gets teeth: you're not just auditing your building. You're required to actually implement the cost-effective energy and water efficiency measures identified in the audit.

"Cost-effective" is defined as measures with a payback period of 10 years or less (or 15 years for certain deep retrofits). If the audit identifies lighting upgrades, HVAC improvements, or water-saving fixtures that meet this threshold, you need to install them.

This is a big deal. Most benchmarking ordinances just require reporting. EBEWE actually requires action. You can't just file paperwork and walk away. You need to do the work.

The good news: cost-effective measures by definition pay for themselves. If the audit says a project has an 8-year payback, you're making money on it in the long run. EBEWE is effectively forcing you to invest in upgrades that improve your bottom line.

Penalties for Non-Compliance

LA takes enforcement seriously. If you fail to comply with EBEWE requirements, the city can issue fines, withhold permits, and place liens on your property.

The standard non-compliance fee is $202 per building per violation under LAMC Section 98.0411. Additional enforcement actions can include permit holds and property liens. While $202 per violation sounds manageable, violations can stack across multiple reporting periods and requirements (benchmarking, audits, retro-commissioning).

And here's the kicker: the city can withhold building permits until you come into compliance. So if you're planning renovations, expansions, or tenant improvements and you're not EBEWE-compliant, your permits get held up. That's a huge operational risk.

The Water Efficiency Component

Most building performance standards ignore water. LA doesn't. The city is in a perpetual state of drought management, and buildings are a major source of water consumption.

EBEWE requires you to benchmark water use and implement water-saving measures identified in your audit. Common upgrades include:

  • Low-flow fixtures: Toilets, faucets, and showerheads that use less water per flush or flow.
  • Irrigation efficiency: Smart controllers, drip systems, and native landscaping that reduce outdoor water use.
  • Leak detection: Automated monitoring systems that catch leaks before they waste thousands of gallons.
  • Cooling tower optimization: For buildings with water-cooled HVAC, improving cycles of concentration reduces makeup water demand.

Water efficiency upgrades often have even faster payback periods than energy measures. Water is expensive in LA, and the savings add up quickly.

What Building Owners Should Do Now

If you're covered by EBEWE, here's your action plan.

1. Confirm Your Compliance Deadline

Look up your building on the LADBS website and confirm when your audit and benchmarking reports are due. If you're overdue, prioritize getting compliant immediately. Penalties are accruing every day.

2. Benchmark Your Building

Get into ENERGY STAR Portfolio Manager and input your energy and water data. You need 12 months of utility bills for all energy sources plus water.

If you've never used Portfolio Manager before, budget a few hours to set up your account and input building details. The interface isn't hard, but it's not intuitive if you're seeing it for the first time.

3. Hire a Qualified Energy Auditor

Don't wait until the last minute to schedule your audit. Good auditors book up months in advance, especially in the spring and fall when everyone wants audits done.

Make sure your auditor is on LADBS's approved list. An audit from an unapproved provider won't meet the ordinance requirements, and you'll have to do it again.

4. Prioritize Cost-Effective Measures

Once you get your audit report, focus on the measures with the shortest payback periods first. These are the projects that save you the most money the fastest.

Typical quick wins include:

  • LED lighting: Still the easiest ROI in most buildings. Payback of 1-3 years is common.
  • Low-flow fixtures: Toilets and faucets that meet WaterSense standards pay for themselves in water savings in 2-4 years.
  • HVAC controls: Basic scheduling and occupancy sensors can cut energy use 10-20% with minimal cost.
  • Pipe and duct insulation: Cheap to install, immediate impact on heating and cooling efficiency.

5. Explore Rebates and Incentives

LA Department of Water and Power (LADWP) and Southern California Gas Company both offer rebate programs for energy and water efficiency upgrades. These can cover 20-50% of project costs for qualifying measures.

Apply early. Incentive budgets are finite, and programs can close once funding is exhausted. The first applicants get funded, the late ones get waitlisted.

6. Plan for the Next Audit Cycle

Remember, audits are required every five years. Once you complete your first audit and implement the measures, start thinking about the next cycle. Energy efficiency is an ongoing process, not a one-time checkbox.

How LA Compares to Other Cities

LA's EBEWE Ordinance is unique because of the water component. Most building performance standards focus exclusively on energy. LA recognized that water is just as critical in their climate, so they built it into the ordinance.

The 20,000 square foot threshold is also lower than most jurisdictions. NYC and Chicago start at 50,000 square feet. Montgomery County starts at 25,000. LA went lower to capture more buildings.

And the requirement to actually implement cost-effective measures sets LA apart from pure reporting programs. You can't just file a report and ignore the recommendations. You need to do the work.

If you own buildings in multiple cities, tracking compliance across all these different programs is a nightmare. Different deadlines, different metrics, different reporting platforms. That's exactly what BPS Check is built for: one tool that covers every major jurisdiction in the country.

The Bottom Line

LA's EBEWE Ordinance is one of the most comprehensive building performance programs in the country. It's not just about reporting. It's about actually improving your building's energy and water efficiency.

If you're covered and you haven't started, check your deadline immediately. If you're overdue, prioritize getting compliant before penalties pile up. And even if you're current, use the audit process to identify cost-effective improvements that boost your bottom line.

The buildings that treat EBEWE as an operational asset (not just a compliance burden) will save money, attract better tenants, and have higher resale value. The ones that ignore it will pay fines, face permit delays, and fall behind the market.

Start today. Benchmark your building, schedule your audit, and figure out what improvements you need to make. Use our free compliance checker to see where you stand.

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