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CEC Delays Compliance Deadline for Smaller Nonresidential Building Energy Use Disclosure Program – Glass & Goldberg | Financing, Property & Bankruptcy Law
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CEC Delays Compliance Deadline for Smaller Nonresidential Building Energy Use Disclosure Program

cecseal-copy1The California Energy Commission has delayed for two years the implementation of its Nonresidential Building Energy Use Disclosure Program for buildings of at least 5,000 square feet.

The CEC implemented the first phase of the Nonresidential Building Energy Use Disclosure Program — which requires building owners or operators to benchmark a nonresidential building’s energy usage for 30 days and disclose that information to a prospective buyer, lender or lessee — in January 2014 for buildings of at least 10,000 square feet.

The CEC was scheduled to implement the second phase to smaller nonresidential buildings on July 1, 2014. That date has now been pushed to July 1, 2016, with the CEC citing several significant barriers to compliance as the reason for the delay.

Currently, owners of nonresidential buildings will be required to comply with the new disclosure program if all of the following apply:

  • Entire nonresidential building is being sold, leased, financed or refinanced;
  • Gross square footage of the building is at least 10,000 square feet; and
  • The building has one of the following building code types specified on its occupancy permit: A (Assembly); B (Business); E (Education); I-1 or I-2 (Assisted Living); M (Mercantile-Retail); R-1 (Residential-Transient Hotel/Motel); S (Storage); or U (Utility-Parking Garage)

To comply, nonresidential building owners or operators must sign up on the Energy Star Portfolio Manager website and benchmark energy usage for 30 days. The website then generates the report that must be provided to prospective buyers, lenders or tenants at least 24 hours before a signed agreement is executed.

The attorneys at Glass & Goldberg in California provide high quality, cost-effective legal services and advice for clients in all aspects of commercial compliance, business litigation and transactional law. Call us at (818) 888-2220, send an email inquiry to info@glassgoldberg.com or visit us online at glassgoldberg.com to learn more about the firm and to sign up for future newsletters.

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