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Does the Nonresidential Property Energy Use Disclosure Requirement Apply to Me?
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Does the Nonresidential Property Energy Use Disclosure Requirement Apply to Me?

We recently alerted our readers to the California Energy Commission’s Nonresidential Building Energy Use Disclosure Program, which requires nonresidential property owners to comply with certain requirements prior to the sale, lease and/or financing of an entire building. The most common questions about the disclosure requirement are whether compliance is necessary for a particular parcel and, if so, when.

First, nonresidential buildings less than 5,000 square feet are not required to comply with the regulation. If your property is larger than 5,000 square feet, use the following checklist from the CEC to help determine whether your parcel is subject to the energy use disclosure requirement:

  1. Is the entire nonresidential building being offered for sale or lease or subject to new financing (Section 1683)?
  2. As of today, is the gross square footage of the nonresidential building greater than the following limits (Section 1682)?
    • If today is after September 1, 2013, is the building larger than 50,000 square feet?
    • If today is after January 1, 2014, is the building larger than 10,000 square feet?
    • If today is after July 1, 2014, is the building square footage equal to or greater than 5,000 square feet?
  3. Is the nonresidential building one of the following types (Section 1681[i])?
    • Assembly (A)
    • Business (B)
    • Education (E)
    • Institutional – Assisted Living (I‐1, R‐1)
    • Institutional – Nonambulatory (I‐2)
    • Mercantile (M)
    • Residential – Transient (R‐1) (for example, a hotel)
    • Storage (S)
    • Parking Garage (U)

The building occupancy permit lists the building occupancy type. These occupancy types are defined in the California Building Code, Title 24, Section 302 (2007).

If you answered yes to at least one part of each of the three questions above, then you must comply with the energy use disclosure requirement.

If you are a nonresidential property owner concerned about compliance or other real estate transaction issues, contact the experienced attorneys at Glass & Goldberg.  Glass & Goldberg provides high quality and cost-effective legal services and advice for clients in all aspects of business litigation, commercial real estate and transactional law.  Call us at (818) 888-2220, email us at info@glassgoldberg.com or visit us at www.glassgoldberg.com to learn more about our firm and sign up for future newsletters.

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