Energy Saving News
Australian Building Energy Efficiency Law Imminent
FROM 1 November in Australia many sellers and lessors of office space of 2,000 square meters or more will have to obtain and make available an up-to-date energy efficiency rating for their space, if they fail to fulfill this requirement they will face significant penalties along with the wrong kind of publicity.
These obligations are part of Australia’s Building Energy Efficiency Disclosure Act 2010 and what the Commonwealth Department of Climate Change and Energy Efficiency calls the Commercial Building Disclosure (CBD) program.
Many of the provisions of the Act started in July and now the disclosure obligations will commence, in part from November, with a 12 month transitional period until full implementation in November 2011.
What will need to be disclosed?
• obtaining and registering the relevant energy efficiency information for the "disclosure affected" building or area;
• in some cases, giving a bona fide prospective purchaser or lessee a copy of the documents containing that information; and
• including the relevant energy efficiency rating for the "disclosure affected" building or area in any advertisement for the sale, lease or sublease of the building or area.
From November 2011 the Act requires disclosure of a Building Energy Efficiency Certificate (BEEC). BEECs are valid for 12 months, must be publicly accessible on the online Building Energy Efficiency Register, and include NABERS((National Australian Built Environment Rating System) Energy rating for the "disclosure affected building" or the building in which the "disclosure affected area of a building" is located; an assessment of tenancy lighting in the area of the building or area which is being sold or leased; and guidance on how energy efficiency might be improved.
For the initial 12 month from November this year the Act requires disclosure of a current NABERS Energy base building rating for the relevant building instead of a BEEC, which will need to be disclosed.
The Act currently limits the disclosure obligations in the CBD program to commercial office space. However, Phase 2 of the CBD program is expected to expand disclosure to other types of commercial buildings including hotels, retail, schools and hospitals.
Breaches of the Act carry significant maximum penalties, as an example, civil penalties of up to $110,000 for a body corporate and $38,500 for an individual apply for failing to provide a BEEC when required. Alternatively, the Department Secretary may issue an infringement notice with a penalty of up to $11,000 for a body corporate or $3,850 for an individual.
The CBD program will have less of an impact on office owners and tenants who already focus on energy efficiency. But, all owners and tenants of substantial office space should be putting in place systems to avoid delays in office space transactions, and consider energy efficiency measures to improve competitiveness in transactions.
Owners of office buildings should consider obtaining an energy efficiency rating for their buildings. Given the time it takes (and the energy use records required) to obtain ratings, early action is important. Owners may also want to consider carrying out upgrade works or changes to building operations should be carried out to improve the building's energy efficiency.
As reported on these pages yesterday, a similar scheme is being promoted for the UK and it is expected that more and more legislation along these lines will be rolled out around the globe.
Picture by mugley
Friday 3rd September 2010
