The California Energy Commission delayed the implementation of AB 1103, California’s landmark energy disclosure law.   This is the 4th time that the law’s implementation has been delayed in the past two years.   Now the first set of buildings will require energy disclosure in January of 2012–unless the law is delayed again.   

No doubt the law has serious opponents.  

There is still plenty of activity in the world of energy audits and energy benchmarking on the local level and the Federal level. 

Keywords

energy disclosure, ab 1103, energy audit, energy disclosure

Non-Residential Energy Performance Disclosure and Energy Audit Requirement Summary

On February 8^th, 2011, the city of San Francisco adopted the San Francisco Existing Commercial Building Energy Performance Ordinance, requiring owners of non-residential buildings in San Francisco to obtain energy efficiency audits, as well as to measure and disclose energy performance annually.

Energy Performance Disclosure Requirement

The owner of every non-residential building in the city of San Francisco shall annually file with the Department of the Environment an Annual Energy Benchmark Summary report (AEBS) for each covered building using ENERGY STAR^® Portfolio Manager.  The AEBS shall be based on assessment in Portfolio Manager of the entire non-residential building and related facilities and must use 12 continuous months of data ending no earlier than two months prior to submittal to the Department of the Environment.

Energy Disclosure Schedule

Annual Energy Benchmark Summary reports from Portfolio Manager shall be filed with the Department of the Environment according to the following schedule:

1. For buildings greater than 50,000 square feet in gross area, the owner must complete and submit the initial Annual Energy Benchmark Summary report on or before April 1, 2011, and annually no later than April 1 thereafter.
2. For buildings greater than 10,000 square feet but less than or equal to 49,999 square feet in gross area, the owner must complete and submit the initial AEBS on or before April 1, 2012, and annually no later than April 1 thereafter.
3. For buildings greater than 5,000 square feet but less than 9,999 square feet in gross area, the owner must complete and submit the initial AEBS on or before April 1, 2013, and annually no later than April 1 thereafter.

Energy Efficiency Audit and Report Requirement

The owner of any non-residential building with a gross area of 5,000 square feet or greater shall conduct a comprehensive energy audit for each such building not less than once every five (5) years.  The energy efficiency audit shall meet or exceed standards set forth by the American Society of Heating, Refrigerating, and Air-conditioning Engineers (ASHRAE) Procedures for Commercial Building Energy Audits (2004).

1. Buildings greater than 50,000 square feet in gross area shall receive a comprehensive audit of the whole building which meets or exceeds the Level II Audit standard as defined by ASHRAE.
2. Buildings greater than 4,999 square feet and less than or equal to 49,999 square feet in gross area receive a walkthrough audit of the whole building which meets or exceeds the Level I audit standard, as defined by ASHRAE.

The energy professional performing or supervising the energy efficiency audit must have one of the following qualifications:

1. Licensed Professional Engineer (PE)
2. Association of Energy Engineers Certified Energy Manager (CEM)
3. Association of Energy Engineers Certified Energy Auditor (CEA)
4. A person with similar professional credentials as determined by the Department of the Environment

Energy Efficiency Audit and Report Schedule

The owner of every non-residential building shall file a Confirmation of Energy Efficiency Audit for each covered building with the Department of the Environment.  The Department of the Environment shall establish a schedule such that:

1. Due dates for all covered buildings shall be staggered over a five year rolling deadline, with subsequent energy efficiency audits and energy efficiency audit reports due every five years thereafter.
2. All buildings required to undertake an energy efficiency audit shall be assigned a specific date when a completed energy efficiency audit is due.

Buildings owners may comply with the first assigned due date for an energy efficiency audit by submitting records of audits, retro-commissioning, and retrofits performed not more than three (3) years prior to the effective date of this ordinance.

The new San Francisco Existing Commercial Building Energy Performance Ordinance will force building owners to benchmark their buildings via EPA’s Energy Star, which they really need to anyway to comply with Califronia Energy Disclosure Law AB 1103.   AB 1103 requires property owners to disclose their buildings Energy Star Portfolio Manager ratings during lease, sale, and financing transactions.   So on some level, building owners were required to do their energy benchmarking work anyway. 

2011 should be an interesting year.  Email me if you have further if you have further quesiton:  joe@partneresi.com.

Keywords

San Francisco Commercial Energy Performance Disclosure and Energy Audit Ordinance, SF Energy Audit, Energy Audit, SF Energy Disclosure, San Francisco Energy Law, Energy Audit San Francisco

Earlier this year, Wal-Mart announced goals to reduce its carbon footprint by reducing greenhouse gas (GHG) emissions from its supply chain.  Wal-Mart’s GHG emissions goal was set at a 20 million metric ton reduction of GHG emissions by 2015.  The implication for suppliers is clear and substantial – measure your footprint and find ways to improve.

Measuring your carbon footprint (which also refers to any greenhouse gas, measured in carbon dioxide equivalents or “CO2e”) is the first step in reducing GHG emissions, providing a baseline from which to start.  A carbon footprint study can also identify areas where you can cut down on energy use.  From this point, an energy audit or sustainability consultation can provide a comprehensive look at how to reduce or off-set your impact.  The value of such a program is not just good PR (though the benefit of employee moral or customer goodwill should not be underestimated) – it can produce savings through reduced fuel, utility or travel costs and reduced material consumption, as well as allow a corporation to get ahead of future carbon cap and trade regulations or taxes.

Wal-Mart has realized the relationship between being a profitable business and a sustainable business.  Many retailers are also taking up this charge – Target, Whole Foods and Starbucks have similar programs in place for their supply chain.  Carbon Partner has seen the result of this movement first-hand in recently working with several wholesale suppliers to Wal-Mart, Target and Whole Foods to measure and reduce their carbon footprint.  Carbon Partner expects this trend will continue as public pressure mounts for corporations to show measurable steps to advance their sustainability platforms.

”Up to 80 percent of the energy used by commercial buildings is going up in smoke”… per a new study by Next 10 that examined energy use among California’s existing commerical buildings. Read a news article about the study below:

http://www.sacbee.com/2010/07/14/2888438/california-conservation-group.html#ixzz0uMJM3Z5A

Here is a link to the actual Next 10 report:
http://www.next10.org/research/research_eeijc.html

Property Condition Report

What is included in a Property Condition Report (PCR)? The short answer is that the Property Condition Report evaluates all improvements.    Most Property Condition Reports done for lenders are done within the scope and limitation of the ASTM Standard E2018. 

My firm, Partner Engineering and Science, typically defines the scope as follows:

1. Conduct a thorough walk-thru inspection of the asset by an experienced building inspector or engineer;
2. Interview tenants, building maintenance staff, and building management;
3. Visit the city building department to look for violations, records of improvements, and the certificate of occupancy;
4. Review of building plans, quotations for work, and warranties provided by the seller;
5. Develop a schedule of Immediate Repairs necessary due to failed systems, systems being past their useful life, and/or building code violations;
6.  Develop a Replacement Reserve Schedule for the next 12 years (or the requested reserve period), where Partner will estimate the remaining useful life of major systems and provide an estimate of the replacement cost at that time in the future;
7. Prepare a detailed report discussing each building system and its condition.

Partner’s PCR will evaluate the following systems and conditions:

• Site Improvements
• Site Access and Traffic Flow
• Topography
• Storm Water Drainage
• Paving Type/Age
• Curbing/Wheel Stops
• Pavement Striping
• Parking
• Flatwork/Stairs/Railing
• Landscaping and Appurtenances
• Retaining Walls
• Utilities
• Site Lighting
• Waste Storage Area
• Site and Building Signage
• Other Site Amenities/Recreational Facilities
• Structural Foundation and Frame
• Structural Design Criteria
• Soils/Geotechnical
• Foundations
• Structural Frame
• Parking Garage/Carport
• Facades/Exterior Wall Systems
• Exterior Walls
• Windows
• Insulation
• Doors/Frames
• Balconies
• Stairs
• Roofing
• Roof Type
• Active Leaks
• Roof Drainage
• Thermal Insulation
• Flashings/Details
• Expansion Joints
• Maintenance
• Warranty
• Ancillary roof(s)
• Mechanical, Electrical & Plumbing
• HVAC Systems
• Electrical Systems
• Plumbing Systems
• Vertical Transportation/Conveyor Systems
• Elevators
• Escalators
• Fire/Life Safety
• Fire Sprinklers
• Life Safety/Alarm Systems
• Interior Elements
• Viewed Spaces
• Floor Coverings
• Ceiling/Walls/Window Coverings
• Common Areas

All of these elements are inspected during a walk-through inspection. The inspector will not be turning systems on and off; rather, the inspector will visually inspect the systems and ask questions of building personnel. Some clients want us to do more, and for those clients, Partner will hire sub-specialist to accompany our inspector.   

POTENTIAL EXTRA SPECIALTY SERVICES:

In addition to our walk-thru assessment, Partner can provide specialty inspections. Specialty inspections are done by our significant roster of sub-contract specialist. The Specialty Inspectors investigate beyond the requirements of ASTM E2018. For example, Partner’s general inspector will inspect the elevator and the elevator controls, but an elevator specialist is qualified to open and inspect the elevator pit. The following specialty inspections are often added to Equity Property Condition Reports: 

Specialty                                                   Description 

Energy Audit                                           Model the entire building’s energy consumption, rate building against peer buildings; enter into Portfolio Manager; and make recommendations for energy efficiency improvements.

Energy Benchmark/Disclosure   Enter the building’s utility data and relevant building parameters into EPA’s Portfolio Manager and get a rating for the building.

Structural Inspection                      A registered engineer / structural engineer will inspect the sites superstructure foundations for signs of deflection, structural sagging, cracking, and vulnerability to future loading (seismic if applicable).

Elevator Inspection                         Inspect elevator cab, elevator equipment room, the elevator shaft and hydraulic lifts.

HVAC Inspection                               Inspect all heating and cooling equipment as well as ducting and heat conveyance systems.   Test the heating and cooling output regardless of the season (i.e. test the air condition in the winter).

ADA Compliance Inspection     Inspect the entire asset for compliance with the Americans Disability Act (ADA) and catalogue each system that does not meet ADA Compliance.   Provide a cost estimate for bringing the asset into compliance with ADA.  

Roof Inspection                                     A Roof Inspector will inspect the roof of each of the buildings.  The roof inspector will map all signs of roof aging and failure including: cracking, silting, ponding, bowing, leaking, and patches.

Building Envelope Inspection    Inspect the entire building envelope and curtain wall for its ability to serve as an effective moisture barrier.  Complex curtain wall systems should be evaluated by a specialist.

California is requiring Energy Disclosure via Assembly Bill 1103 (AB 1103) starting in 2011.   The California Energy Commission recently published the AB 1103 implementation schedule.

Real Estate owners are actively beginning to do energy audits and energy benchmarking to prepare for the implementation of this law in 8 months.

Building owners must disclose their building’s energy rating when:

(a) at or before the time the owner presents a sales contract to a prospective buyer;

(b) at or before the time the owner presents a lease for the entire building to a prospective lessee; and

(c) at or before the time the owner presents a loan application to finance the entire building to a prospective lender.

 The implementation schedule is as follows:

 (a) On and after January 1, 2011, a building owner shall disclose, pursuant to Section 1684, the building’s the CEC Commercial Building Energy Disclosure report for nonresidential buildings that:

     (1) are solely occupied by the owner; or

     (2) measure more than 50,000 square feet.

(b) On and after January 1, 2012, a building owner shall disclose, pursuant to Section 1684, the CEC Commercial Building Energy Disclosure report for nonresidential buildings that measure 10,000 to 50,000 square feet.

(c) On and after July 1, 2012, a building owner shall disclose, as described in Section 1684, the CEC Commercial Building Energy Disclosure report for buildings that measure from 1,000 to 10,000 square feet.

My firm, Partner Energy, is actively benchmarking hundreds of large commercial office buildings.   Give us a call at 888-826-1216 when you are ready to address this requirement.

TRIENCE (noun) – pertaining to and the study of the ENVIRONMENT, ENGINEERING AND ENERGY as they pertain to facility management.

Is Trience really a word?  Do people really study these things?  Are they teaching Trience in high school labs and college lecture halls?  Is Trience part of the newly enacted federal government regulations developed to stimulate economic growth?

The answer to three of these questions is generally “No”.  However, professionals like us really do study Trience (however, we really don’t call it that yet…).  As an environmental engineering consultant (would that make us Trientists…?), our job is to provide intellect and answers to the eternal “what if” when man’s development and progress intersects with protecting human health and the environment.   Our core expertise often includes some element of environmental assessment, engineering investigation and/or energy audit services (Trience).

Many of our public as well as private sector clients rely upon us to assist them in the identification and resolution of environmental issues such as asbestos, mold, underground storage tanks (USTs), contaminated soils and groundwater. We work closely with many commercial real estate based clients who look for our building assessment expertise in evaluating all major building systems and site improvements as part of the Property Condition Assessment (PCA).  In addition, we perform Energy Audits in order to identify how energy efficient a building is, and how to increase its efficiency and reduce consumption costs.

We apply sound engineering and scientific principles to our recommendations, designs and solutions.  Whether we are preparing a Phase I Environmental Site Assessment (ESA) as part of the standard course of due diligence, estimating immediate and reserve costs as part of the PCA or establishing a facility’s energy star rating, we prepare our reports to exceed the expectations of everyone involved including peers, lenders, and regulators.  We practice good Trience.

By Steve Kitzke