How to Comply with California’s Nonresidential Building Energy Use Disclosure Program
On July 1, the final phase of the California Energy Commission’s (CEC) Nonresidential Building Energy Use Disclosure Program took effect. Owners of nonresidential buildings with a total gross floor area of more than 5,000 square feet must now disclose the building’s most recent 12 months of energy usage prior to any sale, lease or financing of the entire building.
According to a blog posting from law firm Perkins & Cole, compliance with the disclosure program is required only where the answer to all three of the following questions is affirmative:
- Is an entire nonresidential building being sold, leased, financed or refinanced?
- Is the gross square footage of an individual nonresidential building at least 5,000 square feet?
- Does the nonresidential building have one of the following building code types identified on its building occupancy permit: A, B, E, I-1, I-2, R-1, M, S or U (parking garages)?
If the answer is “yes” to all three questions, and the owner wants to sell or lease the property or obtain financing, a number of steps will be required, including creating an Energy Star Portfolio Manager account, getting energy use data from the utility, and generating a Data Verification Checklist.
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