Washington State and Seattle
BACKGROUND
On May 8, 2009, Washington Governor Chris Gregoire signed into law SB 5854, also known as the Efficiency First bill. Focusing on energy efficiency in the built environment, the bill requires commercial building energy rating and disclosure, major improvements to the state energy code, and energy performance standards and retrofits (if necessary) for public buildings. The bill also requires the state to recommend a methodology to rate the energy performance of homes.
Separately, the Seattle City Council passed a city ordinance that expands on the rating and disclosure requirements of the Efficiency First bill. Former Seattle Mayor Greg Nickels proposed measuring and disclosing the energy use of Seattle's buildings on Earth Day 2009 as part of his Green Building Capital Initiative, a comprehensive strategy to reduce the climate impact from Seattle's homes and buildings. Seattle Mayor Mike McGinn signed the ordinance into law on Feb 1, 2010.
KEY PROVISIONS
Washington
SB 5854, modeled after AB 1103 in California, 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 beginning Jan. 1, 2010, at the request of a building owner, to automatically upload energy consumption information for a building into ENERGY STAR software.
Nonresidential buildings greater than 50,000 SF are required to rate and disclose beginning January 1, 2011, while buildings greater than 10,000 SF are required to rate and disclose beginning January 1, 2012.
For public buildings, the requirements are more stringent. State agencies must rate public facilities greater than 10,000 SF and disclose benchmarking data by July 1, 2010 to the state General Administration, which will make the information public. A preliminary energy audit is required for buildings with an ENERGY STAR rating less than 50. If that audit identifies cost effective energy savings, an investment grade audit is required by July 1, 2013 and cost-effective measures must be implemented by 2016.
Additionally, beginning January 1, 2010, state agencies may not sign a new lease or renew space in a private building with an ENERGY STAR rating less than 75. Exceptions are allowed when a building owner agrees to undertake an energy audit and implement cost-effective upgrades within the first few years of a state lease. The provision is modeled after a federal requirement on the U.S. General Services Administration enacted under the Energy Independence and Security Act of 2007.
Seattle
On Jan. 25, 2010, the Seattle City Council passed CB 116731 unanimously. Sponsored by Council President Richard Conlin, the city ordinance expands on the building energy rating and disclosure requirements of SB 5854 in three areas:
- Nonresidential buildings are benchmarked annually and the City of Seattle will collect the data
- Multifamily buildings must be rated and disclosed to the city
- Rating data must be disclosed upon request to existing tenants in benchmarked buildings
Multifamily properties with five units or more will report energy performance data to the city annually beginning April 1, 2012. Other nonresidential property will annually report energy performance data to the city beginning April 1, 2011 for buildings 50,000 SF and greater, and beginning April 1, 2012 for buildings 10,000 SF and greater.
The city of Seattle commissioned an economic analysis of the proposed commercial and multifamily rating and disclosure programs. Collectively impacting more than 8,000 buildings, the analysis found that the programs would save more than 47 million kWh annually and create as many as 150 jobs.
PRESS AND MEDIA COVERAGE
McGinn Signs Building Energy Rating and Disclosure Bill in Seattle | City of Seattle press release, 2.01.10
Ray of Light in Washington State's New Energy Law | Puget Sound Business Journal, 5.04.09
Energy Efficiency Bill Heads for Gov. Gregoire's Desk | NW Energy Coaltion, 4.21.09
Seattle Office of the Mayor Press Release | 4.22.09
Seattle's Green Building Capital Initiative: Partnering for Citywide Retrofits | Brookings Institute, 7.01.09
