Answers on AB 1103
What is AB 1103?
Assembly Bill 1103 -- also known as the Nonresidential Building Energy Use Disclosure Program -- is a mandated energy benchmarking program approved by the State of California. Owners of non-residential buildings are required to benchmark and disclose their building’s energy use upon the sale, lease, finance, or refinance of the whole building.
Who should care about AB 1103?
1. Owners. It’s your responsibility to make sure your nonresidential building is rated, and that you disclose a Statement of Energy Performance to the California Energy Commission, as well as to your property’s buyer, lessee, or lender prior to the transaction.
2. Buyers, Lessees, Lenders. Be advised of the energy-efficiency of the building you are purchasing or leasing.
3. Brokers representing Buyers/Sellers. To ensure the transaction closes on time, you need to make sure the Owner has complied with the mandatory benchmarking requirement.
Note: AB 1103 does not apply to owners of multifamily, factory, or industrial properties, and does not apply to the partial sale, lease, or refinancing of nonresidential buildings.
When does AB 1103 go into effect?
For buildings 10,000 square feet and over, AB 1103 went into effect on January 1, 2014.
For buildings, 5,000 – 9,999 square feet, the California Energy Commission has confirmed that it will go into effect on July 1, 2016. This is a change from the original date of July 1, 2014.
How do I comply with AB 1103?
We can perform a comprehensive energy benchmarking service that provides insight into a
facility’s energy performance and helps identify energy-saving opportunities and priorities.
Energy consumption of your building will be compared to energy consumption from a large, national database of similar buildings. The database normalizes factors such as weather (including general regional weather patterns), occupancy, operation hours, and other building-specific characteristics. We will use the EPA’s ENERGY STAR Portfolio Manager and provide a Statement of Energy Performance to disclose to the California Energy Commission.
For more information on energy benchmarking and audit services, contact Kaustubh Chabukswar on our Energy Team.