California Postpones Energy Disclosure Requirements (Again)

I previously wrote about the California Nonresidential Energy Use Disclosure Program, which requires nonresidential building owners to disclose to prospective buyers, tenants and lenders, their building’s energy use data and ratings for the most recent year.  Building owners whose buildings have gross square footage equal to or greater than 5,000 square feet but less than 10,000 square feet, were required to make energy disclosures to potential buyers, tenants and lenders on or after July 1, 2014.  That date has now been changed to July 1, 2016.

The California Energy Commission (CEC) cited the fact that postponement of the compliance requirement was needed “to avoid potential market confusion, which could cause delays and drive up transaction costs in commercial real estate transactions.”  The CEC also stated that the additional time was needed to provide stakeholders, including utilities, to develop and implement best practices to accommodate smaller buildings and to allow the CEC to develop and adopt regulations to promote compliance with the Program.