In the 1940s-1950s, cities across the U.S. started embedding minimum parking requirements into zoning ordinances, mandating that new developments include a set number of off-street parking spaces based on use and square footage.
The City of Los Angeles was among the first major U.S. cities to mandate off-street parking requirements in its zoning code. The 1946 Los Angeles Zoning Plan introduced provisions requiring new developments to include a minimum number of off-street parking spaces tailored to the building's use and size.
These mandatory parking lots were part of the urban planning zeitgeist of the time. But even as cities reverse the trend in favor of more walkable city centers, it’s worth remembering that the architects of mandatory parking requirements got at least one thing right.
They understood that a city’s commercial and industrial buildings require a great deal of urban infrastructure resources, yet are also uniquely capable of providing resources that benefit both city residents and themselves.
Therefore, in the late 60s, a dramatic mandatory step started rolling out regarding commercial building permitting across the country: a demand to acquire underground car storage capabilities, or underground parking lots.
What seems now like a very natural and reasonable demand for a permit was, at that time, rather extreme. Building a high-rise six levels below ground level was not an ordinary or a natural part of the required investment from the developer’s point of view. But today, we cannot imagine the evolution of big cities without embracing these regulations.
Building owners today face rising electricity costs, growing energy demand and increasing pressure to maintain reliability without compromising budgets. These challenges are especially pronounced during peak hours, when energy prices spike and outages are more likely, putting operations and tenants at risk.
Although lithium-ion battery systems are often discussed as a solution, they are rarely viable for commercial buildings. Safety concerns, along with complex insurance, permitting and regulatory hurdles, prevent this technology from becoming a feasible solution.
But thermal energy storage, in which my company specializes, offers a more practical alternative. By storing energy in the form of ice during off-peak hours, when electricity is cleaner and cheaper, these systems reduce daytime energy use without changing how buildings operate.
This translates into significant cost savings, particularly for cooling — one of the largest energy loads in commercial buildings during the summer. Ice-based systems such as ours can cut cooling costs by 30 to 50 percent.
Unlike lithium-ion batteries, thermal storage is safe, clean and durable and doesn’t require grid-interconnection permits, which can take years, making it easier to deploy and manage.
As energy storage becomes a standard expectation in modern building design, much like parking once did, thermal solutions give “looking-forward” ownership a way to stay ahead of regulatory shifts while gaining immediate operational and financial benefits
Energy storage is quickly becoming a critical part of commercial building strategy, with strong signals that it may soon be mandated in many jurisdictions. Regulatory shifts, such as New York City’s Local Law 97 and California’s Title 24, are pushing buildings toward lower emissions; storage will likely be a required part of compliance in the near future.
Nationally, the House Committee on Ways and Means proposed a draft 2025 Budget Reconciliation bill that could reshape the storage market, further incentivizing behind-the-meter solutions.
Energy storage is increasingly recognized in LEED certification for its role in demand response and energy optimization, and in states like California and New York, qualified systems can participate in wholesale electricity markets, unlocking new revenue and reducing operational costs.
Buildings with accredited systems can now earn resource adequacy credits, as seen in programs by the California Public Utilities Commission, turning passive energy consumers into active market participants.
Adopting energy storage now helps reduce electricity costs, increases resilience and prepares buildings for coming regulations, just like how parking became a planning standard decades ago. For building owners and managers, the time to act is now.
Yaron Ben Nun is the founder and chief technology officer of Nostromo Energy.
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