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News release


Mandatory Disclosure of energy efficiency one step closer to implementation

Building Energy Efficiency Disclosure Bill due for debate in current Parliamentary sitting

MELBOURNE, 1 June 2010 – The outcome of the Federal Government’s Building Energy Efficiency Disclosure Bill is expected to be known during the current Federal Parliamentary session which ends on 24 June 2010.
If the Bill is passed as previously drafted, it will mean Mandatory Disclosure of Commercial Office Building Energy Efficiency for all buildings over 2,000 sqm. Latest reports from the Department of Climate Change and Energy Efficiency (April 2010) state that once the Bill has been passed, all related legislation will be in place for the disclosure requirements to come into effect around October 2010.
James Palmer, Jones Lang LaSalle Leasing Associate Director said, “Once the legislation is passed, building owners or tenants will have to provide a Building Energy Efficiency Certificate (BEEC) when they sell, lease or sub-lease relevant office space.
“The certificate will consist of three components: A National Australian Built Environment Rating System (NABERS) Energy rating; a register of tenancy lighting specifications; and energy efficiency guidance.  According to the Property Council of Australia, failure to comply with the scheme will incur penalties of up to $110,000 per offence.
“What many owners and occupiers may not realise is that this legislation is likely to be retrospective in nature.  To make disclosures in the second half of this year will require data from the latter half of 2009, as NABERS Energy ratings require 12 months of continuous historical energy data,” Mr Palmer said.
The new scheme will provide unprecedented levels of transparency to potential purchasers and renters on the energy performance of buildings, and is predicted to drive major changes in how building tenants and owners select buildings.
“Acting now is critical not only to ensure compliance with the new scheme, but to protect and enhance your building’s value and market attractiveness going forward.
“Owners and tenants need to familiarise themselves with the requirements of the proposed scheme now, and move quickly to gather all relevant data, including historical energy performance.  The next step is ensuring appropriate systems are in place to make the disclosure of energy performance a standard part of purchasing or leasing a building,” Mr Palmer said.
Jones Lang LaSalle’s Energy and Sustainability Services Team specialises in building sustainability, and continues to work closely with a range of clients on preparations for Mandatory Disclosure, including improving the NABERS Energy rating of their building.