California

 

BACKGROUND

On Oct. 12, 2007, California Governor Arnold Schwarzenegger signed into law Assembly Bill 1103 requiring ENERGY STAR rating and disclosure, and the automatic uploading of energy bill information by utilities into ENERGY STAR software. The bill was one of seven environmental bills signed that day by the Governor.

 

KEY PROVISIONS

AB 1103 requires owners of nonresidential buildings to rate their buildings using ENERGY STAR software and disclose that information to prospective buyers, lessees and lenders prior to the closing of a transaction. Utilities are required, at the request of a building owner, to automatically upload energy consumption information for a building into ENERGY STAR software.

Rulemaking for AB 1103 is ongoing through the California Energy Commission. According to the most recent draft regulations, the disclosure mandate will be phased-in over two years beginning in 2011. Building owners would be required to disclose an ENERGY STAR Statement of Energy Performance and a California Energy Commission (CEC) Nonresidential Building Energy Performance Report:

  • At the time a sale contract for the entire building is presented to a prospective buyer
  • At the time a lease contract for the entire building is presented to a prospective lessee
  • At the time a loan application for the entire building is presented to a prospective lender

Additionally, the California Energy Commission is developing a statewide program to reduce energy consumption in existing buildings, as required by AB 758. The CEC has indicated it will develop additional building performance rating and labeling programs in California under AB 758. 

 

 

SAN FRANCISCO RATING AND DISCLOSURE

In February 2011, San Francisco enacted an ordinance requiring annual ENERGY STAR benchmarking and the public posting of benchmarking data, as well as energy audits every five years. Each of those provisions was recommended to San Francisco Mayor Gavin Newsom by the San Francisco Task Force on Existing Commercial Buildings, which reported its findings at the end of 2009. The ordinance expands on California's AB 1103 mandate.