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Commercial Building Disclosure Program – ‘Mandatory Disclosure’ - May 2011

Advisory Note

May, 2011

With the passing of the Building Energy Efficiency Disclosure Bill 2010, the disclosure requirements under the Commercial Building Disclosure (CBD) program came into effect on 1 November 2010.

The aim of the program is to ensure that credible and meaningful energy efficiency information is given to prospective purchasers and lessees of large commercial office space. Initially the program requires owners and lessors of commercial office space with a net lettable area of 2,000m² or more, to disclose the energy efficiency rating to prospective purchasers and tenants when the space is to be sold, leased or subleased.

Transitional provisions
The legislation contains transitional provisions that will apply for the first twelve months of the program until November 2011. During this period, a valid National Australian Built Environment Rating System (NABERS) Energy base or whole building rating obtained up until the end of the transitional period, can be disclosed instead of a full Building Energy Efficiency Certificate (BEEC). The NABERS Energy star rating will need to be disclosed in any advertisement about the sale, lease or sublease of the office.

Building Energy Efficiency Certificate
The requirements to disclose a Building Energy Efficiency Certificate (BEEC) will commence in the second year of the program (November 2011) and must include three components:
1. NABERS Energy base building rating
2. Tenancy lighting assessment
3. Energy efficiency guidance.

The BEEC will be valid for up to 12 months. At the time of disclosure, the certificate will need to be valid, current and registered on the scheme’s online central registry. The NABERS Energy star rating will need to be disclosed in any advertisement about the sale, lease or sublease of the office.

It should be noted that 12 consecutive months of energy consumption and related operational information is required for a NABERS Energy rating. If a base building rating cannot be obtained due to inadequate metering, a whole building rating will need to be disclosed.

Importantly, NABERS Energy ratings disclosed under the program must be exclusive of green power.

Tenancy lighting assessment and energy efficiency guidance
The tenancy lighting assessment will benchmark the existing tenancy lighting against best practice. Accredited assessors will complete a survey of the lighting and enter data into a calculator.

The energy efficiency guidance will provide general advice to building owners and tenants on common energy efficiency opportunities in commercial office buildings. The material will not be tailored to the individual building and will not be an energy audit. The program does not require building owners to undertake a comprehensive energy audit.

Both the tenancy lighting assessment and energy efficiency guidance will not be required during the transitional period.

Accredited Assessors
Assessments for BEECs will be undertaken by NABERS assessors who have also been accredited under the CBD program. Accredited NABERS assessors do not need to be accredited under the program to assess buildings under the transitional provisions.

For guidance on the scheme, information about obtaining a NABERS Rating, a BEEC or guidance on improving energy efficiency contact:

Bart Taylor, A.G. Coombs Advisory
E: btaylor@agcoombs.com.au
T: 03 9248 2700

More information
For further details about the program and links to the Act and subordinate legislation go to the Commercial Building Disclosure program website: www.cbd.gov.au

While every effort has been made to ensure the accuracy of the information in this publication A. G. Coombs assumes no responsibility for errors or omissions or for any consequences of reliance on this publication.