Published: McLane.com
April 29, 2025
The Massachusetts Department of Energy Resources (MassDOER) has announced 225 CMR 27.00, finalizing regulations to implement the Large Building Energy Reporting Law. These rules impose new annual reporting obligations on owners of large buildings across the Commonwealth and carry potentially significant penalties for non-compliance.
Who Must Comply?
Owners of buildings that exceed 20,000 square feet must
report all energy usage not supplied by a distribution company or
municipal utility to MassDOER each year by June 30. Covered energy
sources may include fuels such as propane, heating oil, and on-site
renewable generation.
Owners can determine if their building is subject to these requirements by checking the official list of covered buildings here: Large Building Energy Reporting Covered Buildings List.
If your building appears on this list, you must "claim" the building to complete the reporting process using MassDOER's online portal: Claim Your Building via the MassBEAM Portal.
Key Compliance Details
- Annual Deadline: June 30 of each year
- Obligation Exists Regardless of Notification: MassDOER is expected to notify owners of covered buildings, but failure to receive a notice does not exempt an owner from compliance
- Non-Compliance Penalties: Up to $150 per day for failure to report
Implications for Real Estate and Corporate
Transactions
These reporting obligations have important implications
for real estate and corporate transactions in Massachusetts. If a
covered building changes ownership, the current (selling) owner is
responsible for notifying MassDOER of the transfer. If this notice
is not provided, the existing owner remains liable for energy
reporting obligations—even after the property has been
sold.
As such, both buyers and sellers must ensure that MassDOER notification is part of any transaction involving large buildings.
Next Steps for Building Owners and Legal Advisors
Building owners should begin by checking whether their
properties appear on the list of covered buildings published by
MassDOER. If a building is listed, the owner must take prompt
action to register the property and ensure compliance with the
reporting requirements by using the MassBEAM portal. Legal advisors
involved in real estate or corporate transactions in Massachusetts
should incorporate a review of these compliance obligations into
their due diligence process. Additionally, any transaction
involving a change in building ownership should include
notification to MassDOER as part of the closing checklist, as
failure to do so could result in the original owner remaining
liable for future reporting and any associated penalties.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
