California Updates Energy Use Disclosure Requirements

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After a short delay in implementation by the California Energy Commission, California’s new energy use disclosure requirements will commence on July 1, 2013, for all non-residential buildings with a total gross floor area measuring more than 50,000 square feet.

Section 25402.10 of the Public Resources Code requires owners or operators of non-residential buildings to disclose the building’s past energy use data to prospective buyers, lessees or lenders of the building prior to the sale, lease, financing or refinancing of the property. This disclosure must be made no later than 24 hours prior to the execution of the sales contract or lease or submittal of the loan application. In order to make the disclosure, a building owner is responsible for uploading the building’s energy usage data to the US Environmental Protection Agency’s ENERGY STAR Portfolio Manager website by setting up an account on the website and authorizing the utility company to release the data (utility companies are already storing the data for upload). The regulations require that this account be opened or updated at least 30 days before a disclosure is to be made

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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