Month: September 2025

Historic legislation is about to reshape California’s energy landscape—and smart organizations are already positioning themselves to capitalize on the transformation.

Organizations across California are witnessing a pivotal moment in energy infrastructure. AB-825, the groundbreaking legislation currently awaiting Governor Newsom’s signature, represents more than policy change—it’s the catalyst for a West-wide energy revolution that will fundamentally alter how building professionals approach energy design, planning, and cost optimization.

What AB-825 Means for Organizations

This transformative bill, which evolved from SB 540, is poised to unlock billions in utility savings by creating a regional electricity market spanning the Interior West. For organizations operating schools, data centers, and institutional buildings, this isn’t just about policy—it’s about real dollars returning to bottom lines through enhanced grid reliability and expanded renewable energy access.

The legislation will enable California to maximize its clean energy potential while creating market opportunities that extend far beyond state borders. But here’s what many organizations are missing: the real value lies in understanding how to navigate this transition strategically.

When AB-825 takes effect, energy procurement strategies, building performance requirements, and long-term operational planning will all need recalibration. Organizations that proactively adapt their building systems and energy strategies will capture the greatest benefits, while those that wait will find themselves scrambling to catch up.

Understanding AB-825’s Market Transformation

AB-825 establishes a framework for California’s participation in a regional transmission organization, fundamentally changing how electricity flows across western states. The legislation creates mechanisms for enhanced resource sharing, allowing California to export excess renewable energy during peak production periods while importing clean power when local generation is insufficient. This market expansion is expected to reduce electricity costs by billions of dollars over the coming decades while significantly improving grid reliability during extreme weather events. The bill also includes provisions for maintaining California’s environmental standards and climate goals, ensuring that regional market participation accelerates rather than undermines the state’s clean energy transition.

The energy revolution is here. Smart organizations are ensuring they’re not just keeping pace—but leading the charge.

In today’s built environment, smart buildings are no longer a nice-to-have. Owners, developers, architects, and builders are increasingly held accountable for delivering buildings that operate efficiently, reduce environmental impact, enhance occupant well-being, and meet rising investor and regulatory expectations. One framework continues to stand out as the global benchmark for achieving high-performance goals: LEED (Leadership in Energy and Environmental Design).

Defining High-Performance in the Modern Era

High-performance buildings are designed to minimize energy and water use, improve indoor environmental quality, reduce operating costs, and support long-term resilience. But performance is not only about technical efficiency — it’s also about meeting market demand for healthier spaces, complying with local building mandates, and enhancing the asset value of real estate.

This holistic vision requires a structured approach that balances environmental, social, and financial priorities. LEED provides exactly that.

Why LEED Is Critical to Achieving Performance Goals

1. Proven, Credible Framework

LEED is one of the most widely recognized and adopted building certifications in the world, with more than 100,000 projects participating globally. Its rigor and transparency give owners and tenants confidence that sustainability claims are credible, not just aspirational. 

2. Integrated, Whole-Building Approach

High performance isn’t achieved by focusing on one system at a time. LEED addresses every aspect of a building — site selection, energy, water, materials, air quality, and operations. This holistic view ensures that performance strategies don’t work in isolation but complement one another.

3. Data-Driven Outcomes

With LEED, performance is measurable. Energy and water savings, energy reductions, and operational efficiencies are tracked against industry standards, providing owners with hard data to demonstrate ROI and environmental impact.

4. Resilience and Future-Proofing

Regulations and market expectations are rapidly evolving. LEED certification ensures that buildings are not just compliant today, but adaptable for tomorrow. By emphasizing efficiency, health, and resilience, LEED-certified projects are positioned to meet future codes and investor ESG criteria.

5. Market Value and Brand Advantage

High-performance buildings consistently outperform peers in occupancy rates, tenant satisfaction, and resale value. LEED adds an additional layer of differentiation, signaling to investors, tenants, and communities that your building meets the highest standards of performance.

LEED as a Roadmap for Owners, Architects, and Builders

For architects, LEED acts as a design guide to balance creativity with performance metrics. For builders, it provides a quality-control framework that aligns with best construction practices. And for owners, it is a pathway to reduce operating costs and increase marketability. 

By embedding LEED into the earliest stages of planning, project teams can align around clear goals, avoid costly retrofits, and ensure that every decision drives toward a shared definition of high performance.

The Bottom Line

High-performance buildings are no longer optional — they are essential to the future of real estate and construction. LEED remains the most effective, trusted, and future-ready tool for making those goals a reality.

As leaders in LEED consulting, we partner with owners, architects, and builders to streamline certification, uncover performance opportunities, and deliver buildings that raise the bar.