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

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.

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.