BuildingRating

Sharing Transparency for a More Efficient Future

California

Policy Description:

The state of California passed Assembly Bill 1103 in October 2007. The law requires benchmarking and disclosure for nonresidential buildings involved in a financial transaction, and includes requirements on utilities to help owners by uploading energy consumption data. The commercial building benchmarking law was complemented by several other executive mandates. Assembly Bill 531, enacted in 2009, allowed the California Energy Commission (CEC) to develop a new compliance schedule for AB 1103. Subsequently, AB 758 called for the development of a statewide effort to reduce energy consumption in existing buildings, including a California-specific building performance rating and labeling program. The state-wide program compliments an annual benchmarking policy for commercial buildings in San Francisco. AB 1103 requires owners of nonresidential buildings over 5,000 SF to rate their buildings using Energy Star software. They must disclose a Statement of Energy Performance to the California Energy Commission (CEC) as well as to prospective buyers, lessees or 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 Portfolio Manager software. Although the law was scheduled to come into effect in 2009 for utilities and in 2010 for building owners, the benchmarking mandate was delayed until 2012. Final regulations were published in March 2012, with dates by which building owners must submit energy performance to the CEC. These deadlines have been delayed several times.

Enacted Date:
2007
Authority in Charge:
California Energy Commission
Tool Name:
ENERGY STAR Portfolio Manager
Building Types Affected Size Compliance Deadline
Non-Residential Greater Than or Equal To 10,000 Sq. Feet 2014-01-01
Non-Residential Greater Than or Equal To 5,000 Sq. Feet 2015-07-01
Notes:
AB 1103 does not apply to multifamily buildings or the partial sale, lease or financing of nonresidential buildings. The Statement of Energy Performance is valid for 120 days following its generation. If a building owner makes a subsequent disclosure outside of this time period, they must re-benchmark the building and generate a new Statement of Energy Performance.
Disclosure:
Required Disclosure?
Yes
Disclosure Recipients:
Buyers, Lessees, Lenders
Disclosure Trigger:
Point of Transaction
Disclosure Trigger Events:
Purchase/sell (required), Rent (required), Financing
Reporting:
Required Reporting:
No
Compliance:
Compliance Enforcement:
No
Additional Program Information:
Water Use Tracking:
No