Building Energy Efficiency Disclosure

WHAT IS IT and WHY IS IT BEING INTRODUCED?

The Building Energy Efficiency Disclosure Act 2010 has a policy objective of improving the energy efficiency of large commercial premises. 

The premise underlying the Act is that by requiring sellers and lessors to disclose the energy efficiency rating of their buildings, the rating will come to influence both price paid for the building and desirability of owning/leasing that building.  In turn, it will be within the interests of sellers/lessors to strive to lower their energy consumption in order to raise their energy efficiency ratings.  In the long-term, this will help reduce greenhouse gas emissions and reduce our carbon footprint.

So important is lessening the impact of climate change that this Act is simply one part of a larger reform package linked to National Strategy on Energy Efficiency.

The Australian Government Department of Climate Change and Energy Efficiency is responsible for the management of this project. 


WHO DOES IT AFFECT?

Vendors and Landlords of commercial buildings with office areas of 2,000 square metres or more.  The Act requires Vendors and Landlords of such premises to access and disclose to a purchaser/lessee an up-to-date energy efficiency rating.


EXCEPTIONS AND EXEMPTIONS

The disclosure obligations imposed by the Act do not apply to buildings which:

• Are new OR undergoing major refurbishment AND where a certificate of occupancy is yet to be issued or has been issued for a period less than 2 years.
• Are strata-titled.
• Have a total office space which is less than 75% of the net lettable area of the building.

The following transactions also do not require compliance with disclosure obligations:

• Sale effected through selling shares or units.
• Leases and subleases which run for 12 months or less (this timing includes any options to extend).

Exemptions may be granted in the following circumstances:

• Where police or security operations utilise the building.
• Where it is impossible to assess the energy efficiency rating of the building using standard assessment methods.
• A discretion also exists to grant exemptions where appropriate.

A fee may be applied to seek an exemption, and all exemptions must be sought at a time prior to when the disclosure obligations would otherwise affect the building.  

WHAT DO YOU NEED TO DO TO COMPLY?

Disclosure obligations came into effect as of 1 November 2010.

A transition period operates from 1 November 2010 to 31 October 2011 (1 year).

• During this period a valid National Australian Built Environment Rating System (NABERS) Energy rating must be disclosed.
• As of mid-2011, a seller/lessor can disclose either a NABERS energy rating or a Building Energy Efficiency Certificate (BEEC).

As of 1 November 2011 a full BEEC must be disclosed. 

• BEECs are valid for 12 months only and must be accessible on the online Building Energy Efficiency Register.   
• The BEEC must include:

1. A NABERS Energy star rating (NOTE: this must also be mentioned in advertising associated with the sale/lease/sub-lease);
2. A tenancy lighting assessment pertaining to the area being sold or leased; and
3. General information regarding the energy efficiency of the building.

SUMMARY OF IMPORTANT DATES

The dates detailed below are extracted from the Australian Government Commercial Building Disclosure website: http://www.cbd.gov.au/Transition.aspx

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