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ARTICLE · 16 AUGUST 2012

California Energy Usage Disclosure Mandate

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Commercial real estate owners and operators of California property, including potential sellers, should be aware that the State of California will require certain energy usage related disclosures.

United StatesReal Estate and Construction
Leonard Rosenberg
Leonard Rosenberg
Scott Buser
Scott Buser
Brian Aronson
Brian Aronson
Dave Shong
Dave Shong
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Keywords: California, energy usage, disclosure mandate

Commercial real estate owners and operators of California property, including potential sellers, should be aware that the State of California will require certain energy usage related disclosures beginning on January 1, 2013. Owners and operators should make plans now to be in compliance for early 2013 transactions.

Disclosure Required

Starting on January 1, 2013, most1 owners of commercial buildings in California will be required to formally disclose, in writing, information related to the historic energy use and efficiency of their buildings to potential purchasers, lenders and tenants entering into a lease of an entire building (the mandate)2 According to the California legislature (the Legislature), this mandate was adopted in 2007 (and amended in 2009) to "motivate building operators to take actions to improve the building's energy profile and help to justify financial investments" in energy

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