An Express Article from the California Land Title Association
The Efficiency Committee of the California Energy Commission conducted a workshop on August 13th to receive public input regarding draft regulations to implement the energy performance rating disclosure requirements for nonresidential buildings specified in Assembly Bill 1103 (AB 1103), which was enacted in 2007.
The Efficiency Committee and Energy Commission staff presented draft language to implement the AB 1103 benchmarking requirements for nonresidential buildings. The draft was developed in advance of the formal rule-making process to provide a foundation for discussion.
AB 1103 added requirements to the law so that starting January 1, 2010, an owner or operator of a nonresidential building must disclose the United States Environmental Protection Agency’s Energy Star Portfolio Manager benchmarking data and ratings, for the most recent 12-month period, to a prospective buyer, lessee of the entire building, or lender that would finance the entire building.
The draft regulations define how that statutory mandate will be interpreted. The regulations mandate not only that the EPA’s Energy Star Portfolio Manager benchmarking data for the building be provided, but also a California Energy Commission Nonresidential Building Energy Performance Report on the building. The regulations also specify when the information is to be provided. In the case of the sale of a non-residential building, the disclosure must be presented “at the time the owner presents a sales contract for the entire building to a prospective buyer.” In the case of a loan, the proposed regulations require the building owner to provide the information “at the time the owner presents a loan application to finance the entire building to a prospective lender.”
Draft regulations on the Nonresidential Building Energy Performance Rating System are posted on the Energy Commission’s website.
The CLTA is working with the California Association of Realtors, the Business Properties Association, and others on this issue.