California Energy Use Disclosure Requirements

The California Energy Disclosure Law is a set of regulations mandating the disclosure of energy use data for specific commercial and multifamily buildings. It is essential in promoting transparency, encouraging energy efficiency, and allowing prospective buyers or lessees to make informed decisions.

What Is the California Energy Benchmarking Disclosure?

The California energy benchmarking disclosure is a requirement for owners and operators of nonresidential buildings 10,000 square feet and above to provide energy data and ratings when entering into financial transactions involving the finance, sale, or lease of a building property.

The disclosure must include the building’s energy use benchmark score, which is a measure of the building’s energy efficiency based on its energy use data. The energy use benchmark score ranges from 0 to 100, with higher scores indicating more efficient buildings. The disclosure must also include the building identification number assigned by the California Energy Commission (CEC) and the building owner’s name and contact information.

The purpose of the disclosure is to help potential buyers, tenants, and lenders compare the energy efficiency of different buildings and make informed decisions. The disclosure must be made before the sale, lease, or financing of the building and must be updated annually. The disclosure can be made through various channels, such as online platforms, websites, or documents.

A Brief History of California’s Energy Disclosure Requirements

The momentum for energy disclosure began picking up in California in the early 2010s. With rising environmental concerns and the state’s commitment to sustainability, the California Assembly passed several bills over the years. The most notable among them was the California Assembly Bill 802, which revamped and broadened the state’s energy reporting requirements.

What Are California’s Building Energy Disclosure Requirements Currently?

California’s building energy disclosure requirements are part of the state’s efforts to reduce greenhouse gas emissions and promote energy efficiency in existing buildings. According to the web search results, there are different types of requirements depending on the building size, type and use.

One requirement is that any business with more than $1 billion in revenue must disclose all its climate emissions, not just those directly attributable to its operations. This is called Scope 3 emissions, and they include emissions from the value chain of the business.

Another requirement is that owners and operators of nonresidential buildings 10,000 square feet and above must provide energy data and ratings when entering into financial transactions involving the finance, sale, or lease of a building property. This is called the Nonresidential Building Energy Use Disclosure Program. It requires the disclosure of the building’s energy use benchmark score, which is a measure of the building’s energy efficiency.

A third requirement is that cities may have their own ordinances or programs to require existing commercial and residential buildings to comply with local energy benchmarking and performance reporting standards. These standards may vary by city and may include different methods of measuring and disclosing energy performance.

How Do Owners Report Under the New Rules?

Owners can report under the new rules by following these steps:

1. Open an account in ENERGY STAR Portfolio Manager, a free online tool to measure and track energy consumption provided by the U.S. Environmental Protection Agency.
2. Enter each disclosable building into your account. You can use the building’s address to look up the benchmarking reference number (BRN).
3. Enter your energy use data. You can use the data from your building’s energy bills, meters, or other sources.
4. Clicking the appropriate reporting link on the Energy Commission’s benchmarking page, www.energy.ca.gov/benchmarking will direct you to log into Portfolio Manager.
5. Finalize your benchmark reports and submit them to the Energy Commission by June 1 annually. You can also submit them to comply with each applicable local law agency or program.

For more information on how to report, you can contact the Benchmarking Hotline at Benchmarking@energy.ca.gov or (855) 279-6460 or visit www.ab802benchmark.com. Contact a lawyer if you have further questions or concerns.

What Are the Utilities Responsibilities?

The utilities responsibilities under the new rules are:

• To provide energy consumption data for covered buildings to the building owner or owner’s agent upon request;
• To comply with the benchmarking and public disclosure program established by the California Energy Commission, which requires utilities to report their energy data to the CEC and make it available for public access;
• To ensure that their energy data is accurate, complete, and timely and that it is uploaded to ENERGY STAR Portfolio Manager;
• To cooperate with the CEC and other stakeholders in implementing and enforcing the program.

What Disclosures Will Be Made Public?

The public disclosures that will be made under the new rules are:

• The building identification number assigned by the CEC to each disclosable building;
• The building owner’s name and contact information;
• The building’s energy use benchmark score and ENERGY STAR performance rating;
• The building’s energy use data and benchmarking reference number;
• The building’s energy use data and benchmarking reference number for each building in a portfolio.

Is There a Penalty for Failing to Comply?

Yes, there is a penalty for failing to comply with California building energy disclosure requirements. The penalty may vary depending on the type and severity of the violation, but it may include:

• Civil fines of up to $10,000 for each violation;
• Criminal fines of up to $10,000 and/or imprisonment for up to 1 year;
• Damages up to 3 times the amount suffered by the purchaser or renter;
• Reinstatement of the building’s energy use benchmark score or certification.

It is important to comply with the requirements and report your building’s energy data accurately and timely to avoid these penalties. You can use the ENERGY STAR Portfolio Manager tool to measure and track your building’s energy consumption. You can also check with your city’s program or a California attorney for more information on how to comply.

Should I Consult a Lawyer for Issues With California’s Energy Disclosure Rules?

California’s Energy Disclosure requirements, while instituted for a vital cause, can often present a maze of intricate regulations and obligations. Understanding and complying with these rules can be challenging for property owners, investors, or even tenants. This is where the experience of a seasoned legal professional comes into play.

Having a knowledgeable California attorney by your side, especially one who handles energy or environmental regulations, is not just an asset—it’s a necessity. These attorneys have a deep understanding of the law. They can assist you in multiple areas:

• Clarifying the intricate details of the disclosure obligations, ensuring you’re well-informed;
• Assisting with the meticulous process of reporting, ensuring that all required information is accurate and submitted correctly;
• Providing robust defense and counsel if, unfortunately, you find yourself facing potential penalties or legal challenges due to perceived non-compliance.

Also, the field of energy disclosure, being an evolving area of law, has frequent changes and updates. A dedicated attorney can keep you informed of these changes, ensuring you’re always in compliance and aware of your responsibilities.

For those seeking legal representation, LegalMatch offers an easy, streamlined solution. By using LegalMatch, you can connect with a top-tier California government lawyer tailored to meet the specific nuances of your case. These types of lawyers can offer the precise guidance, advice, and representation required to navigate California’s Energy Disclosure landscape effectively and confidently.