Tuesday, May 14, 2013

Should you waste energy worrying about AB 1103?

I provide Location Advice to owners and occupants of industrial buildings in Southern California. Today's post explains, in layman's terms, AB 1103, The Energy Star Benchmarking requirement that will take effect July 1, 2013 for commercial buildings in California.

Today's discussion is general. Should your desire be for a more thorough discussion, please contact Elizabeth Watson, partner, Greenberg Glusker or Marika Erdely, CEO, Green EconoMe.

Purpose of the law? The law's purpose is to provide a national reporting benchmark for a commercial building's energy consumption and energy efficiency.

What buildings are affected? Any commercial building (office, retail, industrial, service commercial, hospital, school, etc.) 5000 or greater square feet that is leased, sold, or financed from a contract created July 1, 2013 or after.

Are all commercial buildings over 5000 square feet affected? Ultimately, yes. There are "phase in" provisions for the law...buildings over 50,000 sf on July 1, 2013, Buildings between 10,000 and 50,000 sf on January 1, 2014 and buildings 5000 sf and larger on July 1, 2014.

What will be required of a building owner? If your building meets the criteria above, you will be required to disclose the Statement of Energy Performance to any prospective tenant, buyer, or lender before sign a lease, a purchase and sale agreement or loan documents.

What will be required of a building occupant (tenant)? Your building's owner, property manager or facility manager may require you to disclose your utility bills to them (which are the data that comprise the Statement of Energy Performance). New leases may contain provisions or forms for the disclosure of these energy bills (electric and gas...water not currently included) to the property owner.

What happens if I don't comply? The disclosure is a California State Law but penalties haven't been established as of this post. The best service is to comply and avoid any potential backlash.

How do I make the disclosure? The disclosure must be made within a 30 day window prior to executing a lease, PSA or loan documents on energy data from the prior year.

The general steps are:

Open a Energy Star Portfolio Manager account (ESPM), and input space usage information
Select a service provider, allows access to account
Upload the Energy Usage Data to Energy Portfolio Manager
Access the CEC website (California energy Commission)
Download the Disclosure Summary Sheet
Owner uses link from CEC website to access ESPM
Owner submits Compliance Verification Report within ESPM
Owner generates ESPM standard forms to use for disclosure
Owner presents four documents at or prior to transaction: Disclosure Summary Sheet, Statement of Energy Performance, Data Checklist, and Facility summary

As a building owner, what should I do today?


Figure out if your building meets the size parameters and decide if your building will be leased, sold or re-financed after July 1, 2013.

If so, Create a means of collecting utility bills...easy if you are the occupant...more difficult if you are a landlord.

Create an Energy Star Portfolio Manager account

Seek counsel to include the disclosure and utility bill access in your agreements.



  1. You are a great writer !!

    Jack Haley, CCIM | Principal
    Lee & Associates Commercial Real Estate Services, Inc. - Orange
    Direct: 714-564-7172
    Main: 714-647-9100
    Fax: 714-543-5285
    1004 W. Taft Avenue, Suite 150
    Orange, CA 92865

  2. Good stuff. Thanks.

    David E. Newton, SIOR, CCIM, CFP | Principal
    Lee & Associates Commercial Real Estate Services, Inc. – Orange

  3. You are badass…love the word play “wasting energy” that is awesome….we need to group up and make sure clients are aware of your blog and get on your list to receive it as that is the stuff that differentiates us from the rest and could really pull down some biz

    Thank you,
    Peter Sowa | Principal
    Lee & Associates Commercial Real Estate Services, Inc. - Orange

  4. Thank You Allen!!

    Johnny Eubanks | Principal
    Lee & Associates Commercial Real Estate Services, Inc. – Orange

  5. Allen:

    Thanks so much. Your blog post is terrific in distilling the key aspects of the 1103 disclosures.

    Let me know if you encounter any follow-up questions or concerns that would be worth addressing in our future presentations.


    Elizabeth Watson | Attorney at Law | Biography
    LEED Accredited Professional
    D: 310.201.7439 | F: 310.201.2339 | EWatson@greenbergglusker.com

    Greenberg Glusker Fields Claman & Machtinger LLP
    1900 Avenue of the Stars, 21st Floor, Los Angeles, CA 90067
    O: 310.553.3610 | GreenbergGlusker.com

  6. Thanks for reading Elizabeth and for the very informative seminar. I hope that you will visit my blog and maybe become a follower. Please forward the post to any that you believe would benefit. I transposed your email into the blog's comments section along with your contact info.

    If there are other topics that would make interesting posts, please let me know and we can collaborate.

  7. Very nice blog.


  8. Nice, and easy to read.

    Best Regards,

    Carla Buchanan - Owner
    Business Brandings
    Imprinted Apparel and Promotional Products

  9. Thank you.

    Chris Barnett | Vice President
    Lee & Associates | Newport Beach, Inc.

    Direct: 949.724.4706
    Cell: 949.266.4077
    Main: 949.724.1000
    Fax: 949.623.6306
    3991 MacArthur Blvd, Suite 100
    Newport Beach, California 92660

  10. Hi Allen,
    Great Blog!!

    Can you fix my email address to Marika@greeneconome.com. Both emails work, but I prefer to use this one.


    Marika Erdely, MBA, LEED AP BD+C