MANDATORY BENCHMARKING LAW POTENTIAL FIX

As part of late breaking discussion on a bill relating to energy efficiency, we are currently working on a potential deal that would re-write the AB 1103 Mandatory Benchmarking Law.  Many in the commercial real estate industry have found the benchmarking law to be cumbersome and expensive to undertake on multi-tenanted buildings.  The law also forces properties to benchmark event when a building has been vacant and a benchmark would not produce particularly helpful information.   Under the framework of language, benchmarking would still be mandatory in California, however, time-of-sale/lease triggers would be removed and the Energy Commission would have more flexibility to promulgate regulations across the different building types that make more sense than a mandate on “all buildings.”  Keep your fingers crossed.

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