NEW ORLEANS (press release) – On July 10, the New Orleans City Council passed its first Building Energy Benchmarking ordinance (Ordinance No. 35,154), which will require large buildings over 20,000 square feet to track and report their annual energy use. The Building Energy Benchmarking ordinance is a key strategy identified in the City’s Climate Action Plan to reduce greenhouse gas emissions, improve building performance, and support a more climate-resilient New Orleans.
“We’re building a more equitable and efficient city that protects residents from rising energy costs and climate impacts,” said Mayor LaToya Cantrell. “Benchmarking is a foundational step that opens the door to smarter investments and stronger communities.”
Benchmarking is the practice of tracking a building’s energy use over time and comparing it to similar buildings or standards. It helps building owners identify opportunities to lower utility bills, plan for upgrades, and reduce greenhouse gas emissions. In New Orleans, large commercial buildings account for roughly 20% of citywide greenhouse gas emissions.
“The adoption of this ordinance places New Orleans among dozens of forward-looking cities nationwide that are taking bold action on building emissions,” said Greg Nichols, Director of the City’s Office of Resilience & Sustainability (ORS). “Our office has been laying the groundwork for years, and we’re proud to finally launch a program that will reduce emissions, drive investment, and increase transparency across the building sector.”
Since 2012, the City has benchmarked its own municipal buildings. Between 2018 and 2021, that effort helped reduce energy use by 23%, demonstrating the power of data-driven energy management. In 2025, the City released its Municipal Building Energy Use Dashboard, giving residents access to that data for the first time.
The path to this ordinance began in 2018, when the New Orleans City Council, led by Council Vice President Helena Moreno, required Entergy New Orleans to create a Whole Building Data Tool to provide aggregated whole-building level energy data to owners and tenants to support energy tracking.
Councilmember Moreno’s continued support for climate action and building transparency helped make the passage of this ordinance possible.
“Over my time in office, I have served as the Council lead to establish and bolster the City’s commitment to taking strong climate action and reducing greenhouse gas emissions dramatically,” said City Council Vice President Helena Moreno. “As the Chair of the Climate and Sustainability Committee, I understand the need to bring down these emissions by all stakeholders, including our building sector which represents the majority of emissions within New Orleans. The passage of this Benchmarking Ordinance is a measure my office has endorsed as an effective and targeted approach to reduce building-related emissions, catalyze green jobs related to energy efficiency, and ultimately make buildings we work and live in more efficient and comfortable.”
The Office of Resilience & Sustainability (ORS) led the development of the ordinance through a robust community engagement process. In summer 2024, ORS engaged over 200 stakeholders including building owners, energy professionals, housing advocates, and utilities. National and local partners like the Institute for Market Transformation (IMT) and the Alliance for Affordable Energy also played key roles in supporting and developing this ordinance.
“Reducing energy waste in our city’s largest buildings will have an outsized impact on New Orleans’ ability to reduce utility bills for everyone,” said Logan Atkinson Burke, Executive Director of the Alliance for Affordable Energy. “Furthermore, this ordinance will help identify the buildings in our City that can participate in the Council’s Energy Smart program to secure even more savings for businesses and residents.”
In 2024, the City received $1.5 million from the U.S. Environmental Protection Agency’s Climate Pollution Reduction Grant (CPRG) to support the launch of the benchmarking program. The funding covers staffing, outreach, and technical assistance to support building owners in meeting benchmarking requirements.
What the Ordinance Requires
- Beginning Jan. 1, 2026, properties with a building area of 50,000 square feet or more must report annual energy use using the free EPA ENERGY STAR Portfolio Manager tool.
- Beginning Jan. 1, 2027, properties between 20,000 and 50,000 square feet in building area will also be required to comply.
- The City will publish annual energy performance data for covered properties to promote public transparency and support future energy policies.
- Noncompliance could result in fines between $1,000 and $3,000. Penalties will be waived in the first year a property is required to comply.
Why Energy Benchmarking Matters
Benchmarking is a proven strategy to reduce emissions, lower costs, and strengthen local economies:
- Buildings that benchmark save an average of 2.4% in energy use per year, according to the EPA.
- Benchmarking can spur energy efficiency improvements that reduce costs, create jobs, improve public health, and increase occupancy rates.
- Benchmarking data helps the City track progress and evaluate energy efficiency incentives and policies to achieve net zero greenhouse gas emissions by 2050.
The Office of Resilience & Sustainability will continue offering outreach, education, and hands-on support to ensure compliance and maximize the benefits of the program.
For more information regarding the ordinance and information on how to get started, visit https://nola.gov/benchmarking or reach out to benchmarking@nola.gov.
