Complying With The California Nonresidential Building Energy Use Disclosure Program

Effective July 1, 2014, the Nonresidential Building Energy Use Program (also known as the AB 1103 regulation) requires that the owner of a nonresidential building with a gross footage of 5,000 square feet or more to benchmark and disclose the building’s energy use data prior to the sale, lease or financing of the entire building.

The program covers the following building types: Assembly (A), Business (B), Educational (E), Institutional – Assisted Living (I-1) and Nonambulatory (I-2), Mercantile (M), Residential – Transient (R-1) (Hotels/Motels), Storage (S), and Utility – Parking Garage (U).

The Statute and Regulations require the building owner to use the ENERGY STAR® Portfolio Manager tool to benchmark and disclose the building’s energy use data. Compliance with the program can achieved through the following steps:

  1. Go to the ENERGY STAR® Portfolio Manager website and sign-up to create a new account at https://portfoliomanager.energystar.gov;
  2. Contact your utility to confirm their procedures for providing energy use data;
  3. Benchmark the building’s energy use via Portfolio Manager at least 30 days prior to the transaction;
  4. Produce a Data Verification Checklist report in Portfolio Manager;
  5. Disclose the Data Verification Checklist to a prospective buyer, lessee, or lender at least 24 hours prior to a signature agreement; and
  6. Submit the Data Verification Checklist to the Energy Commission at ab1103report@energy.ca.gov within 30 days of generating the report.

The Energy Commission’s enforcement actions for noncompliance with the program may include:

  • Investigating noncompliance allegations;
  • Initiating administrative proceedings before the full Energy Commission for an order compelling compliance;
  • Initiating a civil judicial proceeding to enforce an Energy Commission order;
  • Initiating a civil judicial proceeding to obtain injunctive relief; and
  • Settling enforcement actions through negotiated settlements that impose reasonable and appropriate requirements, including possible payment of penalties.

Teter Engineering can help you comply with Nonresidential Energy Use Disclosure Program by contacting the utilities for your energy use data and benchmarking your building’s energy use via the ENERGY STAR® Portfolio Manager. We can also assist you in resolving issues with missing data, obtaining data from building tenants, and estimating energy use if required. Please contact us at david@teterengineering.com or (415) 889-8875 for assistance.