Everything you need to know about NJ’s Benchmarking + Decarbonization Roadmap

What is NJ doing?

Signed into law on May 2018, the New Jersey Clean Energy Act requires annual energy and water benchmarking for commercial buildings 25,000 sq ft or larger.

Additionally, New Jersey’s Strategic Roadmap for Building Decarbonization was released in November 2025, providing key strategies and recommendations for State agencies to support the transition to clean energy and building decarbonization.

Who Qualifies?

There are no Building Performance Standards enforced yet, so we will classify the cohorts by NJ property tax class (4A commercial vs. 4C industrial/warehouse).

Event Commercial Buildings (Class 4A, 25,000+ sq ft) Industrial / Warehouse Buildings (Class 4C, 25,000+ sq ft)
July 1, 2026 (now)
  • Annual benchmarking deadline: Submit 2025 calendar year energy, water, and building use data to the NJ Board of Public Utilities (NJBPU) via ENERGY STAR Portfolio Manager.
  • Non-compliance may disqualify buildings from state utility energy efficiency programs.
  • Annual benchmarking deadline: Submit 2025 calendar year energy, water, and building use data to the NJBPU via ENERGY STAR Portfolio Manager.
  • Non-compliance may disqualify buildings from state utility energy efficiency programs.
November 2025 – ongoing
  • NJ Strategic Roadmap for Building Decarbonization released November 2025 under Executive Order 316.
  • Policy framework targets electrification of 400,000 residential and 20,000 commercial buildings by 2030.
  • Recommendations cover decarbonization policies, utility regulatory reform, workforce development, and equity.
  • No mandatory compliance requirements yet — roadmap is a policy direction document, not enacted law.
  • NJ Strategic Roadmap for Building Decarbonization released November 2025.
  • Buildings sector accounts for approximately 25% of NJ's total emissions.
  • Roadmap identifies building electrification and energy efficiency as central to the state's 100% clean energy by 2050 goal.
  • No mandatory compliance requirements yet.
July 1, 2027
  • Annual benchmarking deadline: Submit 2026 calendar year data to NJBPU via ENERGY STAR Portfolio Manager.
  • Buildings that consistently benchmark are better positioned for future BPS compliance requirements once legislation is enacted.
  • Annual benchmarking deadline: Submit 2026 calendar year data to NJBPU via ENERGY STAR Portfolio Manager.
  • NJ Clean Energy Program and NJ Economic Development Authority offer incentives for energy efficiency retrofits and building decarbonization projects.
2030 target
  • State goal under Executive Order 316: electrify 20,000 commercial buildings statewide.
  • NJBPU utility programs offering building decarbonization incentives expected to scale.
  • Annual benchmarking continues.
  • BPS legislation anticipated but not yet enacted.
  • State goal under Executive Order 316: electrify 400,000 residential and 20,000 commercial units by 2030.
  • Regional Greenhouse Gas Initiative (RGGI) funds continue to support healthy homes and building decarbonization projects statewide.
TBD — future Building Performance Standard
  • A statewide BPS with mandatory performance targets and compliance timelines is under active development by Rutgers, NJBPU, and NJIT.
  • Once passed into law, covered buildings will face energy or emissions targets, reporting requirements, and financial penalties for non-compliance.
  • Buildings currently benchmarking annually will be well-positioned for future requirements.
  • A statewide BPS is under active development but has not yet been enacted.
  • Timeline, targets, compliance pathways, and penalty structures are TBD pending legislation.
  • Continue annual benchmarking and explore available NJ Clean Energy Program incentives for energy efficiency improvements in the interim.
2050 goal
  • New Jersey 100% clean energy goal.
  • NJ Comprehensive Climate Action Plan (December 2025) targets 80% reduction in economy-wide greenhouse gas emissions from 2006 levels by 2050.
  • Buildings sector decarbonization is a central strategy.
  • New Jersey 100% clean energy goal.
  • Buildings sector, currently accounting for approximately 25% of state emissions, expected to be largely electrified and decarbonized by 2050 per the NJ Energy Master Plan and Comprehensive Climate Action Plan.

Consequences of Non-Compliance

New Jersey does not enforce monetary penalties, but maintains a list of buildings that are out of compliance and restricts their eligibility for incentives.

  • Incentive disqualification: Non-compliance may disqualify your building from future utility energy efficiency programs. Given the depth of NJ Clean Energy Program rebates and NJBPU incentives available, this is a meaningful consequence for building owners pursuing energy upgrades.

  • Public disclosure risk: Benchmarking data may be made publicly available by the NJBPU, which can affect leasing competitiveness and asset perception.