California Energy Commission Announces Delay in Implementation for Buildings Between 5,000 and 10,000 Square Feet in Size
California recently introduced the Nonresidential Building Energy Use Disclosure program, requiring property owners disclose one year of energy use data for a building being sold, leased or refinanced. According to the original schedule of implementation, buildings between 5,000 to 10,000 square feet were set to come under compliance requirements on July 1, 2014. However, on Monday August 11, 2014, the California Energy Commission (CEC) announced modifications to the program to delay the compliance date for buildings which are 5,000 to 10,000 square feet in size to July 1, 2016. Specific reasons for the delay have not been announced. AB1103 Energy Disclosure will continue to be required for buildings 10,000 square feet or larger..
California Assembly Bill 1103 Nonresidential Building Energy Use Disclosure program requires property owners to disclosure one year’s worth of electric and gas use through the EPA’s Energy Star Portfolio Manager for each building over 10,000 square feet which is being sold, leased or refinanced. The Portfolio Manager will use the building utility information to benchmark the subject building’s energy performance alongside buildings with similar uses and characteristics. The property owner must then disclose this information to the new tenant during a lease, prospective buyer during a purchase, lender during a refinance, and the CEC.
The most notable property types that are exempt from complying are factory and residential. If the subject property is mixed use and contains one or more of the above uses, the entire property is exempt. Commercial buildings under 5,000 square feet are also exempt under the current law even after July 1, 2016. Unlike commercial energy disclosure policies in New York City and San Francisco, California’s AB1103 does not go the few steps further requiring an energy audit or retro-commissioning. It is the California Energy Commission’s hopes that enforcement for AB1103 will be complaint-driven.
Andersen Environmental understands that the process of a real estate transaction can be hectic and time consuming. We have taken the time to understand this new law and are available to consult and work with you and your clients to fulfill the requirements of AB1103. If you would like assistance in generating the required energy use disclosure, please contact our office at (888) 705-6300 or fill out the service request form below.