What is Energy performance disclosure law for buildings?

Energy Performance Disclosure Law for Buildings is a regulatory requirement mandating that property owners publicly report a building's energy consumption and efficiency data, typically at the time of sale, lease, or on an annual basis, to increase transparency for buyers, tenants, and regulators.

How Energy Performance Disclosure Laws Work

• Building owners are required to track and report energy usage data, often through standardized benchmarking tools.
• Disclosure requirements typically apply at specific transaction points, such as property sale or lease, or on a recurring annual basis.
• Reported data may be made publicly available or shared directly with prospective buyers, tenants, or regulators.
• Non-compliance can result in fines or restrictions on completing property transactions.

What Is an Energy Performance Disclosure Law for Buildings

• A policy tool designed to increase market transparency around building energy performance.
• Often a precursor or companion regulation to broader building performance standards.
• Applicable to varying building types and sizes depending on the specific jurisdiction's requirements.
• An increasingly common requirement across major cities pursuing climate and sustainability goals.

Best Practices for Complying with Energy Disclosure Laws

• Establish accurate, ongoing energy tracking systems well ahead of required disclosure deadlines.
• Understand the specific benchmarking tools and reporting formats required by the local jurisdiction.
• Use disclosure data proactively to identify and address underperforming building systems.
• Stay current on evolving disclosure requirements, as regulations are frequently updated and expanded.

Energy performance disclosure laws increase transparency in real estate markets, giving buyers, tenants, and regulators better information to evaluate a building's efficiency and operating costs.