BB&K's Christopher Calfee Comments On New Law Requiring Energy-Use Data in Property Transactions
BB&K In The News
Building Owners Will Be Tasked With Tracking Energy Use, Divulging Data As Properties Are Sold, Leased
MAY 24, 2010
The San Diego Business Journal
Proponents say a new California law requiring commercial building owners to disclose energy-use data — now expected to take effect Jan. 1, 2011 — should make properties more competitive, while giving potential buyers and renters a more precise way to comparison shop for energy-efficient spaces.
Assembly Bill 1103, first introduced by Assembly member Lori Saldana, D-San Diego, and signed into law in 2007, requires owners of existing commercial buildings to disclose their facility’s energy-efficiency and performance records covering a 12-month period, before the property is sold, leased in whole, or financed.
Owners are already able to enter information using the U.S. Environmental Protection Agency’s free, Web-based Energy Star Portfolio Manager, accessible at energystar.gov. Much of the data, including specific energy-usage figures for properties, is being supplied to the EPA by California utility companies.
Chris Calfee, an attorney with the law firm Best Best & Krieger LLP who specializes in environmental issues, said the new law could mean some extra work for brokerage firms, property management companies and building owners at the time of purchase and lease transactions. The energy disclosure will be added to other financial documents already required for those transactions.
But since the EPA’s online program is fairly easy to use, building owners who register with the Energy Star site should have little trouble retrieving the necessary information. However, he recommends that building owners get their data registered well before the law goes into effect.
“There could be a crunch toward December,” he said. “Especially if you’re expecting to have some transaction activity early in the coming year, it’s best to be ready for this ahead of time.”
The law will phase in over time to cover all nonresidential buildings in California. Calfee noted that it will initially apply to commercial buildings that are 50,000 square feet and larger, with properties in other size categories to be phased in at future dates still to be finalized.
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