GOOD NEWS FOR COMMERCIAL PROPERTY SELLERS – AB 1103 HAS BEEN DELAYED

December 31, 2009 on 12:09 am | In Green Building, Green Cities, Green Workplace, Uncategorized, all |

GOOD NEWS FOR COMMERCIAL PROPERTY SELLERS – AB 1103 HAS BEEN DELAYED

By Jodi Summers

Back in October 2007, when Assembly Bill 1103 was signed, the objective of reducing commercial energy consumption by, January 1, 2010, seemed a long ways away.

AB 1103, which was signed into law in October, 2007, requires the tracking of the energy use of all nonresidential buildings and the disclosure of such energy use as part of the sale, lease, or financing of an entire nonresidential building.  The stated purpose of the disclosure requirement is to “motivate building operators to take actions to improve their buildings’ energy profiles” and “to allow building owners and operators to compare their buildings’ performance to that of similar buildings and to manage their buildings’ energy costs.”

In October, 2009, Governor Schwarzenegger signed Assembly Bill 531 (”AB 531″) into law, temporarily delaying for an indefinite period of time the January 1, 2010 commencement date under AB 1103.

The state advises that owners and operators of nonresidential buildings should not delay preparations for the eventual disclosure requirement as compliance will require a year of records.

In order to comply with AB 1103, the state suggests that all owners and operators of nonresidential buildings should:

* Register for an account with Portfolio Manager

* Create a profile within Portfolio Manager for each nonresidential building owned

* Coordinate with each electrical or gas utility to automate the uploading of data to Portfolio Manager to the extent possible

* Track the implementation of AB 531 to determine the revised Disclosure Commencement Date to be set by the State Energy Resources Conservation and Development Commission (”ERCDC”)

* Ensure the Disclosure Data (defined below) is disclosed as part of any sale, lease, or financing affecting an entire nonresidential building concluded on or after the revised Disclosure Commencement Date

The intent of the law is “commercial valuation of energy usage” during a financial transaction, just as square footage is valued, says Martha Brook, senior mechanical engineer with the California Energy Commission (CEC).

A preexisting executive order, S-20-04, already mandated benchmarking the energy efficiency of state buildings.

http://www.martindale.com/environmental-law/article_Allen-Matkins-Leck-Gamble-Mallory_818224.htm

http://www.facilitiesnet.com/energyefficiency/article/California-AB-1103-Requires-Ener%20gy-Benchmarking-Data-Released-During-Sales–11020

http://www.leginfo.ca.gov/pub/07-08/bill/asm/ab_1101-1150/ab_1103_bill_20071012_chaptered.pdf

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  1. Could this be his legacy?

    Comment by Seaunits — December 31, 2009 #

  2. The downturn is encouraging the adoption of energy- and water- efficient practices in renovation projects. Sixty-two percent of owners expect the savings achieved from energy efficiency improvements to recoup their investments within 10 years. The most frequently applied features include energy-efficient lighting or natural lighting. Ninety-two percent also report installing more energy-efficient mechanical and electrical systems.

    Comment by Meeting News — January 1, 2010 #

  3. New crisis is coming quickly - 125% mortgages.

    Comment by Commercial bridging finance — January 3, 2010 #

  4. AB 32 AUTHOR DEFENDS CLIMATE CHANGE LAW

    Senator Fran Pavley (D-Santa Monica) one of the original and strongest proponents of California Climate Change laws has penned an article responding to recent criticisms of the law. In an effort to make sure our members understand both side of the argument, here is a piece by the author.

    “When AB 32, California’s landmark global warming law, was being debated in the legislature, a coalition of polluters and their misguided allies opposed the bill. This week these same opponents, who have also fought against clean air and water quality laws, are unveiling an initiative to suspend AB 32, predicting the sky will fall if the law is implemented. They predict that thousands of Californians would lose their jobs, and it will crush small businesses. There are even blaming the current loss of jobs on AB 32, but new emission reductions don’t even begin until 2012, and then are gradually phased in by 2020.”

    Comment by Senator Fran Pavley (D-Santa Monica) — February 5, 2010 #

  5. Assemblymember Nancy Skinner (D-14), Chair, Committee on Natural Resources, working in partnership with California Attorney General Edmund G. Brown Jr., has introduced AB 2514 (available here) – new legislation that will create a smarter, cleaner electric grid, increase the use of renewable energy, provide Californians with significant savings by avoiding costly new power plants and transmission lines, and reduce air pollution. This transformative legislation will also create thousands of permanent new green-collar jobs.

    AB 2514 will achieve these benefits by closing the gap between the United States and other nations in investments and deployments of energy storage, a booming “green” industry that represents a significant economic development opportunity for California.

    By mandating that utilities incorporate energy storage capacity – 2.25% of daytime peak demand for power by 2014 and 5% of peak demand by 2020 – the bill will provide much-needed lower electricity costs to consumers. Greater use of energy storage will provide the State with a cleaner and less costly alternative to the high costs of generating and supplying primarily fossil fuel-based power for only part-time daytime peak demand for power.

    “Energy storage is the future — it’s a fast-growing clean technology industry that will save the state money and reduce pollution,” said Attorney General Jerry Brown, the bill’s sponsor. “What’s even better is that this new technology could create 8,500 new jobs in California during the next decade.”

    Comment by PR Newswire — March 1, 2010 #

  6. Updated building energy-efficiency standards were adopted by the California Energy Commission last month, after two years of hammering out the details of their requirements.

    Now, commercial and residential builders are expected to be in compliance with the new codes, aimed at saving energy and reducing greenhouse gas emissions, electricity and water demand.

    Summarized, the code changes are a detailed list of new rules for commercial and residential building for insulation, heating and air conditioning, and lighting.

    Comment by MARK LARSON — March 2, 2010 #

  7. I’m surfing internet for Foreclosure and Bankruptcy information till I found your website. Thanks for the information
    Anyway i also have a blog about blood pressure too. Come visit me sometimes.^_^
    http://www.foreclosurequestionsguru.com/

    Comment by Nirltriewly — May 8, 2010 #

  8. The Preservation Green Lab is partnering with the City of Seattle and the New Buildings Institute to pioneer a new energy code compliance framework (for both new and existing buildings) based on actual post-construction performance outcomes. With outcome-based codes, building owners will have the flexibility to pursue whatever retrofit strategies they deem appropriate for their individual buildings, but in return are required to achieve a pre-negotiated performance target on an ongoing basis.

    The ultimate goal of an outcome-based code framework is full accountability for energy performance of all buildings, with complete flexibility in how to achieve it. What works in Seattle will work in other places – and the
    goal is to replicate this innovative model code throughout the country.

    Comment by Patrice Frey — May 20, 2010 #

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