New Scheme for Mandatory Disclosure of Commercial Building Rnergy Efficiency

A new scheme requiring mandatory disclosure of commercial building energy efficiency will be implemented on a national scale next year.

The scheme is being developed by the Department of Environment, Water, Heritage and the Arts (DEWHA) and will require owners of existing commercial office buildings with a net lettable area greater than 2,000 square metres to provide energy efficiency information of the building to prospective purchasers and tenants. Mandatory disclosure is intended to provide purchasers and tenants with meaningful information that will enable them to compare a building’s energy efficiency and make informed decisions about the buildings they choose to buy or lease. It is hoped that mandatory disclosure will encourage building owners to improve the energy efficiency of their buildings and reduce carbon emissions.

In order to comply with the new scheme, building owners will be required to:

• disclose a NABERS Energy star rating in any advertisement for the sale or lease of the property;
• disclose a Building Energy Efficiency Certificate (BEEC);
• disclose an Energy Efficient Assessment Report (EEAR); and
• disclosure of a valid BEEC and EEAR to a central registry (administered by DEWHA).

All building owners affected by the scheme are encouraged to prepare for its introduction in mid 2010.