AB 1103 DISCLOSURE & COMPLIANCE

AB 1103 is a scratch on the surface of what’s about to happen in the built-world.  Simplistic energy efficiency reporting is mandated through AB 1103 but it’s just the first step in the transformation of our marketplace. 

As of July 1, 2014, under the California state law, a building owner must provide an energy use disclosure report to the buyer of any building with 10,000 SF or more at least 24 hours prior to execution of a purchase and sale, lease or finance agreement (excluding factory/industrial building or a residential home, apartment or condominium).

IF YOU’RE A BUSINESS OWNER OR OPERATER AND ANSWER “YES” TO ANY OF THE FOLLOWING, THEN YOU ARE REQUIRED TO DISCLOSE A BUILDING’S ENERGY USE:

1. TRIGGERING TRANSACTIONS – Is your ENTIRE nonresidential building offered for sale, lease, finance or refinance?
2. BUILDING SIZES – Is your building 10,000 SF or larger?
3. OCCUPANCY TYPES – Is your building classified as one of the following:
1. Assembly
2. Business
3. Educational
4. Institutional – Assisted Living
5. Mercantile – Rental
6. Residential – Transient Hotels/Motels
7. Storage
8. Utility – Parking Garage

IF YOU ANSWERED “YES” TO ANY OF THESE QUESTIONS, HERE ARE SOME GUIDELINES TO REFERENCE AND DISCLOSE:

1. Go to https://portfoliomanager.energystar.gov and sign up to manage your portfolio.
2. Confirm your procedures for providing the energy use data by contacting your utility.
3. Use the Portfolio Manager and benchmark your building energy use at least 30 days prior to transaction.
4. Create a DATA VERIFICATION CHECKLIST report in your Portfolio Manager
5. Disclose the DATA VERIFICATION CHECKLIST to a prospective buyer, lessee, or lender at least 24 hours prior to a signature agreement.
6. Submit the DATA VERIFICATION CHECKLIST to the Energy Commission within 30 days of production the report to ab1103report@energy.ca.gov