Assembly Bill 1103 - Energy Use Disclosure in Commercial Buildings

In 2007 AB 1103 was passed into law. It states that commercial buildings in the state of California that are bought, sold or leased in their entirety must provide an energy use disclosure in the transfer documents. This legislation was imposed to simultaneously educate building owners, tenants and property managers about the energy consumption in the buildings they work in and to spur energy conservation in these buildings.

If you are in the business of building transactions then it is imperative that you learn the energy benchmark score of your properties before they go up for sale or lease as it will have an affect on the valuation of the property.

What is an energy use disclosure?

Think of it as a miles per gallon rating for your building. An Energy Benchmark Score is a rating from 1-100 of how efficient your building is operating. Any building receiving a score of 75 or higher is eligible for the Energy Star Rating. AB 1103 uses this score and it's checklist as the method for satisfying the energy use disclosure requirement.

The score works by collecting information about the building like type, size, number of occupants, operating hours etc. and comparing that to a rolling 12 month average of building energy use. It then compares all of that data to other buildings of similar size and type and provides a score. Buildings that use less energy have higher scores. As you implement conservation measures and your bills start to go down then your score begins to rise. This is why it is so important for building owners and managers to determine their buildings' scores before they are put up for sale. It takes months for scores to begin to rise after the energy savings measures have been put in place. By starting well in advance of a sale or lease owners are able to increase their score and simultaneously increase the value of their buildings!

How can I comply?

Clicking on the infographic above will answer a lot of questions regarding AB1103. In order to comply you must have all items on the Sample Date Verification Checklist completed. This checklist is part of the Statement of Energy Performance that must be submitted. It must be stamped by a Professional Engineer in the state of California. The checklist can be downloaded below.

How can Jackson & Blanc help?

Jackson & Blanc's professional engineering staff can help by providing the benchmark rating and completing the statement of energy performance for our customers so they fully comply with AB 1103. We can also come up with a list of Energy Conservation Measures (ECM) that can be implemented to quickly raise the building score, attracting more buyers and selling or leasing at a higher price.