New Energy Use Disclosure Program Goes into Effect (AB 802)

Assembly Bill 802 (AB 802) was signed into law on October 8, 2015 to replace the existing law, Assembly Bill 1103 (AB 1103). AB 802 mandates that the California Energy Commission (CEC) enact a disclosure program to implement benchmark measures for energy consumption for owners and operators of commercial and multi-family buildings exceeding 50,000 square feet.

AB 1103’s statewide energy use disclosure rules in relation to certain real estate transactions, including sales and leases of entire buildings, ceased to be effective after January 1, 2016. AB 1103 has faced numerous obstacles in its operation since 2007. The law required utilities to compile records documenting the energy consumption of nonresidential structures. These utilities were obligated to provide this data to building owners and operators upon their request. The owners and operators of commercial buildings also had disclosure requirements under the law; specifically, they were expected to provide benchmark data and ratings for the buildings over the course of the prior year to any prospective buyer or lessee.

To offset some of the difficulties encountered under AB 1103, including lack of access to information maintained by the utilities, the new law will require the CEC to implement a public process to create new regulations and reporting arrangements under the program. In enacting AB 802, the Legislature sought to authorize the CEC to formulate an effective benchmarking program that will educate owners and operators of affected commercial buildings about their energy consumption patterns through the use of standardized measurements. One significant change from the prior law is that the CEC is responsible for implementing criteria for the delivery of benchmark data that must be disclosed to the public. By making data about energy use widely accessible, proponents of the bill hope to encourage building owners to scale back energy use.

Contact Shane Coons at 949-333-0900 or visit his website at www.ShaneCoonsLaw.com to find out more about the practice.

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New Energy Use Disclosure Program Goes into Effect (AB 802)

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