California’s New Energy Benchmarking & Disclosure Law Takes Effect

California’s Assembly Bill (AB) 1103 energy benchmarking and disclosure law became effective as of January 1, 2014.  Implementation of the requirements begins on January 1, 2014, for a building with total gross floor area measuring more than 10,000 square feet, and on July 1, 2014, for a building with a total gross floor area measuring more than 5,000 square feet. The law requires certain non-residential business owners to input energy consumption and other building data into the Environmental Protection Agency’s ENERGY STAR Portfolio Manager system, which generates an energy efficiency rating for the building.  Ratings are from 1 to 100, with 100 being the most energy efficient.  A building’s energy data and rating for the previous year must be disclosed to prospective buyers and tenants of the entire building (at least 24 hours before executing the contract), or lenders financing the entire building (no later than submittal of the loan application), for the following building types: Assembly, Business, Educational, Institutional – Assisted Living, Institutional – Nonambulatory, Mercantile, Residential – Transient (e.g., a hotel), Storage, and Utility – Parking Garage.  An electronic copy of the “Data Verification Checklist” must be sent via email to the California Energy Commission at [email protected].