In July 2010 we reported on the Building Energy Efficiency Disclosure Bill 2010 which foreshadowed the introduction of the Building Energy Efficiency Disclosure Act 2010 (Cth) (Act). The Act established a scheme for the national mandatory disclosure of the energy efficiency of certain commercial buildings. The transition period under the Act ends on 1 November 2011.
What is required from 1 November 2011?
During the transition period, most owners and lessors have been required to disclose a valid National Australian Built Environment Rating System (NABERS) energy star rating when offering for sale, lease or sublease commercial office space with a net lettable area of 2,000 m2 or more (unless an exemption applies).
From 1 November 2011, owners and lessors of affected buildings will need to obtain and register a valid building energy efficiency certificate (BEEC).
What are the requirements of a BEEC?
A BEEC has three components:
- the existing NABERS energy efficiency rating for the building
- information about the energy efficiency of the tenancy lighting
- generic guidance on how energy efficiency for the building might be improved.
All BEECs will be available to the public via an online registry. Owners and lessors will also have an obligation to provide prospective purchasers and tenants with a copy of a BEEC upon request.
A BEEC will be valid for 12 months and must be prepared and registered by an accredited assessor. It is important BEECs are renewed on time for each building and that there is no lapsing period.
Owners and lessors will also be required to disclose the building energy efficiency rating in any advertisements for the sale, lease or sublease of an affected building. Each advertisement not disclosing the energy efficiency rating will be considered a separate breach of the disclosure obligations.
What happens if you don't comply?
- You will risk delays in the sale or lease of an affected building
- Fines of up to A$110,000 per breach, with the potential for ongoing penalties for each day of a continuing breach.
What should you do before 1 November 2011?
- Consider whether you are an owner or lessor of an affected building. Note that there are a number of exceptions to the disclosure obligations, some of which include: strata titled buildings, new (less than two years old) or significantly refurbished buildings, short term leases, leases within a building for a net lettable area of less than 2,000 m2 and buildings which have less then 75% commercial office space.
- Speak with an accredited assessor to find out what is required to obtain a BEEC, how long it will take and how much it will cost so you have plenty of time to comply before the transition period ends.
- Check that your leases include appropriate clauses to ensure tenants work with the landlord to improve energy efficiency, maintain detailed and up to date energy records, and allow unrestricted access for assessments and works.
- Ensure sale contracts for affected buildings contain specific BEEC disclosures and that advertising requirements in the Act are strictly adhered to.
- Consider how you propose to deal with energy efficiency obligations between yourself and your managing agents.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
