Partner Engineering and Science

AB1103

California’s Assembly Bill (AB) 1103 energy benchmarking and disclosure law is now in effect as of January 1, 2014.  This website is dedicated to educating the public about the latest updates on CA AB 1103 and its requirements for energy benchmarking and disclosure.

 

Background on AB 1103

In November of 2007, California passed Assembly Bill 1103 (AB 1103), mandating energy benchmarking and energy disclosure for non-residential buildings. AB 1103 requires non-residential business owners to input energy consumption and other building data into the Environmental Protection Agency’s ENERGY STAR Portfolio Manager system, which generates an energy efficiency rating for the building.  Ratings are from 1 to 100, with 100 being the most energy efficient.  If a building reaches a score of 75 or higher, owners can apply for an ENERGY STAR plaque.  Any building applying for the ENERGY STAR label must have their data certified by a licensed professional engineer.

 

Implementation Schedule for AB1103

AB 1103 mandated disclosure of a building’s energy data and rating of the previous year to prospective buyers and lessees of the entire building or lenders financing the entire building.  The original disclosure date was January 1, 2010, but after several delays, implementation of the AB 1103 bill requirements finally begin on January 1, 2014 according to the following schedule:

(a) On and after January 1, 2014, for a building with total gross floor area measuring more than 10,000 square feet.

(b) On and after July 1, 2016, for a building with a total gross floor area measuring more than 5,000 square feet.

Note: Authority cited: Sections 25213, 25218(e), 25402.10, Public Resources Code. Reference: Section 25402.10, Public Resources Code.

The latest updates on AB 1103 can be found on the California Energy Commission (“CEC”) website.

AB 1103 Building Type Requirements

If you answer YES to the following questions, then your building needs to be in compliance:

1)     Is your ENTIRE nonresidential building offered for sale, lease, finance or refinance

2)     The building type is one of the following:

  • Assembly (A)
  • Business (B)
  • Educational (E)
  • Institutional – Assisted Living (I‐1, R‐1)
  • Institutional – Nonambulatory (I‐2)
  • Mercantile (M)
  • Residential – Transient (R‐1) (for example, a hotel)
  • Storage (S)
  • Utility – Parking Garage (U)

 

Energy Disclosure Requirements of AB1103

AB 1103 requires accurate building data be entered into the Energy Star Portfolio Manager.  An Energy Star Rating and supporting documents will be generated.  Below is the required disclosure for compliance with AB 1103:

(a) A building owner shall disclose the ENERGY STAR Portfolio Manager “Data Verification Checklist” for the building to:

(1) A prospective buyer of the building, no later than 24 hours prior to execution of the sales contract.

(2) A prospective lessee of the entire building, no later than 24 hours prior to execution of the lease.

(3) A prospective lender financing the entire building, no later than submittal of the loan application.

(4) Submit an electronic copy of the “Data Verification Checklist” via email to the CEC at AB1103report@energy.ca.gov.

(b) Nothing in these regulations permits an owner to use tenant energy use data for purposes other than compliance with Public Resources Code, Section 25402.10.

(c) A building owner may supplement the above disclosure with forms from other sources, such as the ASTM International (formerly known as the American Society for Testing and Materials) checklist E2797‐11 (2011), the Standard Practice for Building Energy Performance Assessment for a Building Involved in a Real Estate Transaction.

Note: Authority cited: Sections 25213, 25218(e), 25402.10, Public Resources Code. Reference: Section 25402.10, Public Resources Code.

 

Energy Disclosure Services:

Partner Energy has worked with hundreds of building buyers, owners, financiers and tenants to benchmark and disclose the energy performance of their buildings.

 

Partner Energy
www.ptrenergy.com

888-826-1216

 

For information on additional energy disclosure laws around the country, visit this website:  www.energydisclosure.com.