The last time I heard about Energy Use disclosure for commercial real estate transactions it was in relation with California AB1103: which requires energy use disclosure for commercial real estate transaction. The latest addition to that is, ASTM standard under development. I read a few articles by major real estate law firms regarding the concerns about inconsistencies/data manipulation possible in energy disclosure. ASTM standard under development ASTM WK24707 : Guide for Building Energy Performance disclosure aims to address those concerns. I feel the current scope of ASTM standard goes beyond mere energy use disclosure to cover applicable energy codes, economic grants and incentives (federal/state), green building certification, carbon footprint and carbon neutrality potential.
For those readers interested in checking out what areas will be covered by the Standard to bring consistency and transparency in the real estate transactional disclosure please check out the link below.
I listened a few hours ago to a Lexis/Nexis (premier law content provider) podcast on the ASTM standards under development. Please click on the link below for the podcast and learn about the potential influence of this upcoming standard!
I am very happy with the development in this sphere, especially since the disclosure will bring in rigor and financial motivation for prospective sellers to make energy efficiency upgrades a priority. It is a kind of economic/financial push to force ambivalent owners/sellers of existing buildings towards greening their buildings. A feather in the hat would have been the inclusion of mandatory Energy Use Label from EPA for existing old buildings under Waxman -Markey Bill. However, real estate industry has used influence to eliminate the mandatory label on existing buildings. At least AB1103/ASTM standard will provide the market based incentives for energy efficiency investments.