As of 2015, the California State Legislature repealed Assembly Bill 1103 (AB 1103).
Please note that for 2016, there will be no energy disclosure law.
California’s Assembly Bill 1103 (AB 1103), which passed in 2007, requires the benchmarking and disclosure of a non-residential building’s energy consumption data (from the previous year) to prospective buyers and lessees of the entire building or lenders financing the entire building. AB 1103 requires the use of the Environmental Protection Agency’s ENERGY STAR Portfolio Manager system for benchmarking. This system generates an energy efficiency rating for the building from 1 to 100, with 100 being the most energy efficient. If a building reaches a score of 75 or higher, owners can apply for an ENERGY STAR plaque. Any building applying for the ENERGY STAR label must have their data certified by a licensed professional engineer.
Implementation Schedule for AB 1103 Benchmarking and Disclosure
After many years of delays, implementation of the AB 1103 bill requirements has finally begun as of January 1, 2014 according to the following schedule:
(a) On and after January 1, 2014, for a building with total gross floor area measuring more than 10,000 square feet.
(b) On and after July 1, 2016, for a building with a total gross floor area measuring more than 5,000 square feet.
AB 1103 Building Type Requirements
If you meet the two criteria below, then your building needs to be in compliance with AB1103:
(a) Your entire nonresidential building is being offered for sale, lease, finance or refinance
(b) The building type is one of the following:
- Assembly (A)
- Business (B)
- Educational (E)
- Institutional – Assisted Living (I‐1, R‐1)
- Institutional – Nonambulatory (I‐2)
- Mercantile (M)
- Residential – Transient (R‐1) (for example, a hotel)
- Storage (S)
- Utility – Parking Garage (U)
Energy Disclosure Requirements of AB 1103
AB 1103 requires accurate building data be entered into the ENERGY STAR Portfolio Manager, which will generate an Energy Star Rating and supporting documents. The required disclosure for compliance with AB 1103 is as follows:
(a) A building owner shall disclose the ENERGY STAR Portfolio Manager “Data Verification Checklist” for the building to:
(1) A prospective buyer of the building, no later than 24 hours prior to execution of the sales contract.
(2) A prospective lessee of the entire building, no later than 24 hours prior to execution of the lease.
(3) A prospective lender financing the entire building, no later than submittal of the loan application.
(4) Submit an electronic copy of the “Data Verification Checklist” via email to the CEC at AB1103report@energy.ca.gov.
(b) Nothing in these regulations permits an owner to use tenant energy use data for purposes other than compliance with Public Resources Code, Section 25402.10.
(c) A building owner may supplement the above disclosure with forms from other sources, such as the ASTM International (formerly known as the American Society for Testing and Materials) checklist E2797‐11 (2011), the Standard Practice for Building Energy Performance Assessment for a Building Involved in a Real Estate Transaction.
For Assistance Complying with AB 1103
Partner Energy is expert in the requirements of AB 1103 and has benchmarked hundreds of building. Please visit our AB 1103 Compliance Services page for more information on how we can help you comply easily and cost-efficiently.
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