New Massachusetts Energy Codes: How Can Lab Buildings Adapt?

In Massachusetts, new energy codes are forcing lab owners and tenants to greatly reduce their carbon emissions by 2050.

How can life science companies, developers, and universities stay ahead of these new rules and meet higher standards of energy efficiency and carbon reduction?

We asked Adrian Walters, SMMA’s Life Science market leader, to explain the risks and opportunities presented by the new state and local codes.

Adrian, what are you hearing from your life science clients about the new energy codes?

Our clients are exploring how their future lab projects can meet higher standards of energy-efficiency and electrification as required by the new Massachusetts energy code. They want advice on how to achieve carbon reduction goals while avoiding any drag on cost and schedule. Furthermore, there’s some confusion about whether the state energy code applies to existing lab operations, and not just new-builds and renovations.

In Boston and Cambridge, lab owners and tenants are grappling with the implications of local net zero mandates (BERDO and BEUDO, respectively). These carbon neutrality rules are among the toughest in the country, and in many cases call for drastic action on the part of lab operators.

Developers, meanwhile, are trying to figure out the best way to deliver quality, marketable lab space at a reasonable cost in the face of more stringent sustainability requirements.

How New Building Codes Will Transform Massachusetts Lab Buildings

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What exactly is changing?

Massachusetts Codes

At state level, the Massachusetts Stretch Energy Code and Specialized Energy Code require new lab buildings and lab fit outs to meet very high standards of energy efficiency and electrification of heating. The intent is to reduce operational carbon emissions. While the changes do not directly apply to existing lab operations, any alterations or renovations to a lab building will require compliance.

Boston and Cambridge Codes

At city level, Boston’s BERDO and Cambridge’s BEUDO require both new and existing lab buildings toto reduce operational greenhouse gas emissions to carbon neutrality over time through 5-year incremental benchmarks.

What do Boston’s and Cambridge’s carbon reduction goals mean for life science buildings?

It’s going to require some serious preparation. The newest versions of BERDO and BEUDO require all non-residential buildings above a certain size in Boston and Cambridge to have net zero emissions by 2050—or 2035 in Cambridge if your space is 100,000 square feet or above. This goal is particularly hard to achieve for lab buildings, which as we know, use a lot more energy than most other buildings.

The kicker is that these rules apply not just to new projects, but to all existing operations above 20,000 square feet in Boston and 25,000 square feet in Cambridge. Lab tenants must reduce their carbon emissions in five-year increments until they reach carbon neutrality or net zero emissions.

Your emissions targets are set by the city and are measured from a baseline based on your specific operations. Much of the heavy lifting must be done in the first ten years. Cambridge, for example, requires buildings of 100,000 square feet or larger to cut their emissions from 2019 levels by 60% by 2030. For buildings between 25,000 and 99,999 square feet, the cut is 40%.

If you fail to meet your carbon emissions targets for the year, and/or fail to report and verify your energy use by your deadline, you will be fined every day until it’s fixed. Combined fines can be as high as $900 a day in Cambridge and $1,300 a day in Boston.

Who pays—the owner or the tenant?

If your building is owned by a developer or landlord, they will likely pass down the cost of the fine to you, the tenant. If you share a building with other tenants, you may be able to share the burden, provided you all use the same core-and-shell MEP systems. Either way, I doubt any life science company or university in Boston will be happy shelling out up to hundreds of thousands of dollars a year in penalties.

What can lab owners and tenants do to meet BERDO and BEUDO carbon reduction targets?

The latest codes prioritize the building envelope like never before. However, the biggest sustainability challenge for lab buildings remains the extremely high air-change rates needed to protect researchers while performing certain types of science.

For new lab buildings, the first step is to design a building envelope with maximum airtightness and thermal performance. Your building should be oriented for optimal solar heating and cooling. It should be designed with highly efficient primary mechanical systems. And it should include onsite power generation such as solar panels on rooftops and parking areas.

For existing lab buildings and fit outs, the pathway is narrower. Priorities include retrofitting the building’s MEP systems to enhance energy efficiency, as well as finding a way to generate renewable energy. For the existing building envelope, there may be ways to improve its efficiency without compromising the long-term durability of historic materials. If these remedies fall short, you may need to consider moving to a more energy-efficient building.

Boston, MA

SmartLabs at 6 Tide Street

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Are there alternative ways to comply?

The BERDO and BEUDO codes leave some wiggle room in the form of hardship plans, carbon offsets procurement (“Green Power”) or RECs (renewable energy certificates). But ultimately, the only way to guarantee compliance in the long term is to find a sustainable design solution—one based on carbon reduction goals and climate resiliency as part of a building’s operations.

Statewide, what should people know about the new Massachusetts energy codes?

The impact will depend on your location. The stretch energy code requires new lab buildings or lab fit outs to meet high levels of energy efficiency, as well as some level of electrification of heating systems.

More than 85% of communities in Massachusetts have adopted the new Stretch Energy Code, which came into force in 2023. But 48 communities, including many in the Greater Boston area, have also opted in to a more restrictive set of rules called the Specialized Stretch Energy Code. Most new lab projects in Massachusetts will be bound to the “Specialized” code. This mainly builds on the standard stretch code, with an extra focus on heating electrification and renewable energy such as on-site solar photovoltaic installations on site.

There’s a lot of confusion around the Specialized code—we’re often asked if it applies to existing buildings as well. The answer is “no”. Only new lab building projects will fall under scrutiny.

View MA Building Energy Code Adoption by Municipality

The Specialized Stretch Energy Code presents three “pathways” for new lab projects to meet the state’s carbon neutral 2050 targets.

Pathway 1: All-Electric Heating

100% electrification of heating

Pathway 2: Net Zero Energy

Renewable energy (onsite) greater than energy use of building
Fossil fuel only when fully offset with renewable energy from installed solar PV

Pathway 3: Fossil Fuel Heating

High performance equipment efficiencies
Installed solar PV
Pre-wiring for future 100% electrification of heating
HVAC retrofit plan

How are developers reacting to the new energy codes?

Developers are under pressure right now from high interest rates and construction costs. So they’re not exactly thrilled about a new package of stricter energy codes. Federal funding for green building projects is becoming available through the Inflation Reduction Act— safe, at least, until January 2025 and a potential rollback by a new administration. Locally, MassSave utilities and MACEC’s programs offer great incentives for energy efficient systems such as air- and ground-source heat pumps.

That said, these programs lack an important incentive: funds to improve the thermal performance of building enclosures. A robust, airtight building enclosure is a crucial part of designing for net zero emissions. But they’re costly to upgrade for existing buildings.

Enclosure incentives would make it easier to optimize energy reduction on these projects. This in turn would reduce the burden of heating electrification on both the owner’s operational energy costs and the wider electric power grid infrastructure. Currently, that path is not open to us.

Is there any upside for developers?

Ultimately, the march to carbon neutrality in Boston and Cambridge will benefit developers who build more sustainable core-and-shell lab buildings. These labs will attract the growing number of life science companies striving to meet BERDO/BEUDO requirements and other local and global sustainability and carbon reduction goals.

For owners and tenants alike, the appeal is obvious: the more energy efficient your new space is and the lower the baseline, the easier it will be to reach net zero emissions by 2035 or 2050.

Learn How to Achieve Net Zero in Five Steps

Talk with Adrian for advice on how to make the most of new Massachusetts building and energy codes for your next lab project.

Adrian Walters, Life Sciences Market Leader