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Energy Disclosure Law Is Completely Changed with New Law AB-802

Electrical_metersCommercial building owners no longer have the burden of disclosing energy consumption to prospective buyers, tenants or lenders. Effective January 1, 2016, Assembly Bill 802, signed by Governor Brown on October 8, 2015, places the burden for providing energy use data on the utility companies with a completely re-written energy disclosure law.

New Laws (AB 802) Replacing the Existing Energy Use Disclosure Law (AB 1103)

AB 802 creates a new energy use disclosure program for the State of California, and replaces the existing law, Assembly Bill 1103 (AB 1103). The key aspects of AB 802 on are:

  1. AB 1103 will remain in effect until December 31, 2015, and until such time, the disclosure of building energy use shall continue to be required in connection with a sale, lease, finance, or refinance of an entire building.
  2. AB 1103 will be repealed effective January 1, 2016.
  3. There will be no statewide energy use disclosure requirement in 2016.
  4. In 2016, the California Energy Commission (CEC) will engage in a public process to develop regulations and establish a new reporting infrastructure for the new program under AB 802.
  5. The CEC anticipates that new regulations will be in effect by January 1, 2017.
  6. New regulations…..??

The Existing Law – AB 1103

California’s existing energy use disclosure program, AB 1103, has been plagued with implementation problems since the enactment of the law in 2007.
Under AB 1103, utilities are required to maintain records of the energy consumption of certain nonresidential buildings. Utilities are required to make the energy consumption data available upon request of a building owner or operator. An owner or operator in turn is required to disclose benchmarking data and ratings for a building for the most recent 12 months to a prospective buyer, lessee, or lender. (Public Resources Code §25402.10.)

In practice, however, it has been difficult for building owners and operators to obtain the data from the utilities due to, among other things, the demands made by utilities for authorization from tenants, which in many cases has been difficult or even impossible to obtain.

The New Law – AB 802

AB 802 was enacted in response to these and other concerns with AB 1103. The stated intent of the Legislature in enacting AB 802 is that the CEC create a benchmarking and disclosure program which will allow owners and operators of commercial and multifamily buildings containing 50,000 square feet and more to better understand their energy consumption through standardized energy use metrics.

Under the new program, a utility must maintain energy usage data for all buildings served by that utility for at least the most recent 12 complete calendar months. A utility would need to provide the benchmark data to a building owner or operator within four weeks of a request. In addition, AB 802 requires the CEC to develop regulations to govern the delivery of benchmark data to the CEC and the public disclosure of such data.

AB 802 eliminates the private disclosure made between parties to a transaction under AB 1103, and instead will require the public disclosure of certain operating performance data. AB 802 also applies to multifamily buildings, whereas AB 1103 did not.

Thus, while AB 802 does not impose any transactional burdens on building owners and operators – a welcome change from AB 1103 – it will require the disclosure of certain energy use data that was not previously available to the public.

Timing of Implementation

It is important to note that AB 1103 will remain in effect until December 31, 2015, which means that building energy use disclosure continues to be required for the sale, lease, finance, or refinance of certain non-residential buildings until the end of the year. AB 1103 will be repealed effective January 1, 2016, and there will be no statewide energy use disclosure requirement in 2016. The CEC anticipates that regulations for the new AB 802 program will be in effect by January 1, 2017.


A Cool Idea – Electricity Free Air Conditioning

New materials may change the way temperatures are regulated


Cooper Oates Air Conditioning HVAC, Mechanical Contractors, Electricity

A Stanford University research team has invented a way for buildings to dump their heat without the needs for pumps, fans or compressors. This idea, described in a recent issue of Nature, is simple and provocative – radiate the heat back into space. The materials used for this process are still in the prototype stage and in the end would probably not eliminate all of a building’s cooling needs. The idea could be the start of something really cool.  Read More Here.


Using Building Benchmarking As A Tool

Here are 4 ways to use the building benchmarking process more that just a compliance requirement, but a real tool to improve the return on the building investment:

1. How are your buildings doing?
Understand building performance at a building or portfolio level. See performance in simple metrics and benchmark a building against itself, a portfolio, its peers and ENERGY STAR Portfolio Manager®.

2. Are buildings getting better or worse?

Prioritize where to focus attention by watching building energy use and expense move with weather normalization and changes in your building. Spend time finding solutions for those buildings with the greatest needs.

3. Where are the best opportunities for savings?

Implement solutions that will change building performance. Identify low cost operation and maintenance changes, and plan for improvements with a good return on investment.

4. Have past energy improvements paid off? Measure and prove the results. Every investment-large or small-should yield results. Tracking changes and improvements will allow you to build best practices and save more.


For more information on Benchmarking or if you building needs a Benchmark, contact Bill Schmalzel, LEED AP, COAC’s Director of Energy Services.



Benchmarking – more than just a compliance chore

Mandatory benchmarks are impacting sales and leases, know your number and take steps now to set your building apart.

Energy Projects Decision California’s required building benchmarking ordinance (AB1103) can be seen as cumbersome and intrusive to a real estate transaction but when a benchmark is viewed as a valuable tool, it can be the used to enhance marketing appeal, illuminate energy savings, and increase a building’s value. The U.S. EPA found an average energy savings of 2.4 percent per year in buildings that consistently benchmark their energy use.*

Benchmarking uses Energy Star’s Portfolio Manager Software to compare your building’s energy usage to similar buildings and generates a benchmark score. This score is a good but basic indication of how your building is doing compared to others. This information can be very empowering to property/facility managers as a snapshot of the energy use effectiveness and then open discussions for savings opportunities. When benchmarks are adopted as a regularly used tool, very effective information can be created. Information like; knowing the “score” before and after any energy project to determine effectiveness, showcasing ongoing energy efficiency to a prospective buyer or tenant, or demonstrating increased building value by reducing operating costs. For instance, a 100,000-square-foot building that reduces its energy costs by 10 percent, say from $2.00 per square foot to $1.80 per square foot, increases its net operating income by $20,000 and building value at an 8 percent cap rate by $250,000.

To make benchmarking easier, COAC can step you through the process. We have benchmarked dozens of buildings in this region and can easily navigate the convoluted process for you. Whether your need is immediate, for a closing transaction, or a longer term program of benchmarking to identity savings opportunities or validate energy saving projects, COAC Energy Services can take care of it for you. Our website has an easy way to get the benchmark process started or you can email Bill Schmalzel directly to get started.

No More Excuses For Not Using EnergyStar

Energy_Star_LogoEvery facility manager and property manager knows about Energy Star? The program is now in its 20th year, and more than 20,000 facilities carry Energy Star certification. But as well known as Energy Star may be, there are many industry professionals that have misconceptions about the program, which may be preventing them from taking advantage of powerful resources that will help them to use less energy.

This 3-part article from Building Operating Management debunks many of the widely held misconceptions and excuses about the EnergyStar program, its many resources and the benefits available to building professionals.  Read More.Commericial HVAC, Building Controls, EnergyStar, Mechanical Contracting