New Regulations Require Disclosure of Energy Use in Certain Buildings

by Manatt, Phelps & Phillips, LLP

Manatt, Phelps & Phillips, LLP

On March 7, 2018, the California Energy Commission (CEC) implemented the regulations behind California Assembly Bill 802 (AB 802). AB 802 directed the CEC to create a statewide building energy use benchmarking and public disclosure program for buildings larger than 50,000 square feet. The following is what you need to know about the new regulations.

What is a disclosable building?

  • Any commercial building over 50,000 square feet, or
  • Any residential building over 50,000 square feet that has more than 17 residential utility accounts

What are the exceptions to the disclosure requirements?

The following buildings are not subject to disclosure requirements:

  • A building in which more than half of the gross floor area is used for scientific experiments, manufacturing or industrial purposes;
  • A building that did not have a certificate of occupancy or temporary certificate of occupancy for more than half of the calendar year for which reporting to the CEC is required;
  • A building scheduled to be demolished one year or less from the required reporting date; or
  • A building that complies with the applicable local energy disclosure program implemented by the local jurisdiction and approved by the CEC.

What must be reported to the CEC?

All owners of a disclosable building must establish an Energy Star Portfolio Manager account. The owner of a disclosable building with more than three active utility accounts must do the following:

  • Request energy use data for the building from the utility company and upload it to the owner’s Energy Star Portfolio Manager account (this will typically all be done through the Energy Star Portfolio Manager account interface); and
  • Complete the reporting steps in the Energy Star Portfolio Manager account interface.

Are there different rules for owners of buildings with fewer than three utility accounts?

Yes. Building owners must first receive the permission of each utility account customer before uploading and reporting the energy use data for the building. Permission may be granted through a provision in a lease or through any other written means, so long as it also permits public disclosure of the information. If any utility account customers do not provide the necessary permission, the building owner will be required to report energy use data according to a modified process that is outlined in the Energy Star Portfolio Manager, and the data will not be publicly reported. Building owners may also request that the executive director of the CEC determine that the building owner’s energy use data is proprietary information, if (i) a building owner owns a utility account within the building, (ii) the building has fewer than three active utility accounts, and (iii) the other utility account customers within the building consent to reporting the energy use data of the building. If the executive director grants such request, the building owner will report the building’s energy use data through a modified process and the data will not be publicly reported. If the executive director denies the request, the building owner will be required to report the building’s energy use data through the standard procedure and such data will be publicly reported.

What must be reported to tenants?

Nothing must be reported to tenants.

What are the reporting deadlines?

Energy data must be requested by March 1 of each year. Energy data must be reported by June 1 of each year. Owners of commercial disclosable buildings will be required to report energy data to the CEC by June 1, 2018, and annually thereafter. Owners of residential disclosable buildings will be required to report energy data to the CEC by June 1, 2019, and annually thereafter.

What are the penalties for noncompliance?

The CEC may impose civil penalties if the offending party has not cured a violation after 30 days’ notice. The civil penalty will be at least $500, but no more than $2,000, for each category of data the person did not provide or fraudulently provided and for each day the violation has existed and continues to exist.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Manatt, Phelps & Phillips, LLP | Attorney Advertising

Written by:

Manatt, Phelps & Phillips, LLP

Manatt, Phelps & Phillips, LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.


JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at:

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.