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Staff outlines audit cost ranges and compliance mechanics for building performance checks

San Jose Transportation and Environment Committee · August 5, 2026
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Summary

Clean Energy staff provided vendor-quote-based median audit costs (energy audit median $5,750; water audit median $3,500; combined median $10,500), explained that property owners generally pay audits, and clarified that beyond-benchmarking applies to existing properties after five years of occupancy.

Committee members pressed staff on who pays for compliance audits and how often properties must repeat the process. Staff said property owners bear the cost of audits and that auditors' prices vary by property size and complexity.

Jenna explained the team's outreach to vendors to estimate pricing: "the median energy audit costs $5,750 but the range we received was at 1,200 to 15 thousand—water audit alone— the median is 3,500 the range we received was 1,000 to 10,000. If a property is doing an energy and water audit together the median was 10,500 with the range we received from 1,600 to 15 thousand," she said. Council members discussed whether subsequent five‑year cycles should require more than repeating the audit if owners had previously done audits without implementing improvements.

Staff clarified the ordinance applies to existing properties (not new construction) and that an owner is typically required to demonstrate either the performance pathway or an improvement pathway (often via an audit) every five years; exemptions exist for vacancy, financial distress and certain land uses.