Introducing The Mandatory Disclosure of Commercial Office Energy Efficiency Scheme
Australian, state and territory government energy ministers recently approved the parameters of the new disclosure scheme for office building energy efficiency, with Commonwealth legislation now being developed. Starting in the second half of 2010, building owners will need to provide up-to-date energy efficiency information when they sell or lease office space covering more than 2,000 square metres.
What is the national energy efficiency scheme?
The national energy efficiency scheme is part of an ambitious plan to make Australia’s homes and businesses more energy efficient, by improving base standards and star ratings for appliances, equipment and buildings, and by phasing out inefficient technologies.
Why is the new scheme being enforced?
Improving energy efficiency is a rapid and effective method of convalescing Australia’s greenhouse gas emissions. The scheme will provide a strong incentive for building owners to improve their properties by investing in cost-effective upgrades.
Minister for the Environment, Heritage and the Arts, Peter Garrett stated that “Greener offices are not only more comfortable to work in, they can also boost productivity, bring down sick leave, support green building industry jobs and have the potential to deliver savings of 20-40 percent on energy bills.”
Disclosure of commercial office building energy efficiency will also:
- Encourage reductions in energy use and greenhouse gas emissions;
- Aid businesses in saving money on their energy bills and building maintenance costs;
- Help stimulate demand for and investment in more energy efficient buildings; and
- Have the potential to improve staff morale, productivity and stimulate green jobs.
Who is affected by the new scheme?
Commercial office building owners will be required to provide up to date energy efficiency information when they sell or lease office space with a net lettable area (NLA) covering more than 2,000 square metres.
This means that the building owners, potential purchasers and tenants will have access to consistent and meaningful information about a building’s energy efficiency and will be able to make informed decisions when they purchase or lease a building.
In a later phase, the Government will consider expanding this measure to other building types including hotels, shops, schools and hospitals.
What do building owners need to do?
The new scheme will require building owners to:
- Disclose a valid Building Energy Efficiency Certificate to prospective buyers and lessees at the point of sale and lease of office space over 2,000 square metres; and
- Include a National Australian Built Environment Rating System (NABERS) Energy base building star rating, an assessment of the lighting energy efficiency of tenancies and some suggestions on how to improve the building’s energy efficiency.
The Building Energy Efficiency Certificate will remain valid for 12 months and, once legislation is in place, owners who don’t comply will risk a fine or prosecution.
Efficiency Rating Tool – NABERS
It is proposed that the NABERS Energy accredited rating tool will initially be the sole rating tool. The NABERS Energy rating tool benchmarks actual operating energy use of the commercial office building by measuring the energy use per square metre NLA based on twelve contiguous months of metered fuel data (electricity, gas, diesel).
The rating tool awards from one star (high greenhouse impact) to five stars (low greenhouse impact) depending on the energy efficiency and greenhouse performance of the rated space. NABERS has a trained and accredited group of assessors who independently assess the rating of a building.
In preparation for the scheme’s implementation, a NABERS Energy base building assessment is a great way for building owners to get a snapshot of their buildings performance. Property owners who haven’t already rated their building under NABERS Energy should familiarise themselves with the system.
Exemptions from the Scheme
Exemptions will be considered for buildings with less than 12 months worth of contiguous data (i.e. new building), or where inadequate metering or other factors preventing an accredited assessor from being able to achieve the required quality standards of a NABERS Energy assessment. Situations where it is not feasible to prepare a valid energy efficiency assessment of a particular building or tenancy will be exempted from the scheme.
Summary
The Australian Government has agreed to the new national scheme to improve the energy efficiency of commercial office buildings.
Commercial office building owners will be required to provide up to date energy efficiency information when they sell or lease office space covering more than 2,000 square metres.
More information on the new energy efficiency scheme is available at the following web links:
Mandatory Disclosure of Commercial Office Building Energy Efficiency – Regulation Document
Mandatory Disclosure of Commercial Office Building Energy Efficiency – Regulation Impact Statement
Additional information regarding NABERS Energy base building star ratings can be found at the NABERS website.
