AB 802 Frequently Asked Questions

Assembly Bill (AB) 802 is California's energy benchmarking program.  AB 802 requires owners of commercial and multi-family buildings over 50,000 square feet to submit an annual energy benchmark report which is due on June 1st.

Actually, there are exemptions and exceptions.  Exemptions include:

• Buildings that did not have a certificate of occupancy during the year the report is due
• Buildings scheduled to be demolished one year or less from the reporting date.

• Buildings covered by a local benchmarking program, like those in LA, SF, SJ, and other California cities.

  Exceptions include:

• Condominiums.
• Buildings where more than half of the building's gross floor area is used for:
  • Industrial (manufacturing, fabrication, processing) purposes 
  • Scientific experiments requiring a controlled environment.

An Energy Benchmark calculates a building's energy-use "intensity" (EUI) in "energy-use per square foot," which is like calculating your car's energy use in miles per gallon (MPG).

This EUI is compared to the EUI of similar buildings to determine its ranking or ENERGY STAR score. A score of 50 indicates average energy performance.  Half of the buildings in the national database perform better while others have performed worse.  An ENERGY STAR score of 75 means that your building is more energy efficient than 74% of similar buildings in the national database.

There is an established procedure in the event this happens.

If your building has three or more tenants, your utility will "aggregate" the building's energy consumption so that no one tenant's energy use is known. In this case, a tenant's permission is not required.

For buildings with fewer than three tenants’ utility Accounts, where a tenant has not granted permission, the building owner or owner’s agent can:

• Attest that permission was not received from all utility customers.
• Share only the building information (not tenant energy use data) with the CEC

Owners of "disclosable" buildings in cities or counties with benchmark reporting requirements are not required to report to the State.

This remains to be determined. Some buyers may prefer to purchase a building that is already operating at peak energy efficiency. Others may prefer to purchase a building "as is"at a lower cost and make energy efficiency improvements to reduce operating costs and increase the value of the building. 

To improve the building’s score, the owner needs to improve its energy efficiency. This means lowering energy consumption, which is more cost-effective than adding locally generated energy. Adding solar power does not reduce energy consumption; it just changes where your energy comes from.  (Solar energy does have other benefits, though.)

If the sum of the buildings sharing a common meter exceed 50,000 square feet, then AB 802 applies.

If the buildings have separate meters, with no one building (or group of buildings) exceeding 50,000 square feet, then AB 802 does not apply.

Besides complying with the ordinance, conducting an energy benchmark measures your building's performance and tells you how efficient or inefficient it may be.

Taking the next step and conducting an energy audit is more manageable than it may seem. In fact, some energy reductions can be achieved at little or no cost to you. Others may have a very short payback period, with some investments paying off in less than a year. Plus, your utility may offer rebates and incentives for certain energy-saving investments. A simple energy audit can uncover these opportunities, making the process even more cost-effective.

The adage, "You can’t manage what you don’t measure," applies. Frequent benchmarking can measure your building's energy efficiency over time so that you can take appropriate action if energy costs are above average or trending upward for no apparent reason.

The proposed regulation provides for the Energy Commission to impose a civil penalty for violation of the regulations by a building owner.

The CEC will notify the offending party of the violation and provide 30 days to correct the violation. If owners still fail to comply they’ll be subject to a civil penalty between $500 and $2,000 for each day the violation existed and continues to exist.

Yes. For a building with fewer than three utility accounts, one of which belongs to the Building Owner where the tenant has consented to the provision of data to facilitate disclosure, the building owner must do one of the following:

• Include building owner’s own energy-use data
• File a request for determination by the Energy Commission Executive Director that the disclosure of the building owner’s energy use data would result in release of proprietary information which can be characterized as a trade secret.
• Share the building information (not energy use data) with the Energy Commission’s ENERGY STAR Portfolio Manager account.

About 40% of total U.S. energy consumption was consumed in residential and commercial buildings. California’s usage pattern is no exception. The California legislature’s goal is to minimize the energy used by these buildings.

AB 802 imposes certain requirements on the Public Utilities Commission and the California Energy Commission to assess and forecast all aspect of energy industry needs and to use these assessments and forecasts to develop and valuate energy policies that "conserve resources, protect the environment, ensure energy reliability, enhance the state’s economy and protect public health and safety."

To comply with the above, the California Energy Commission has created an energy benchmarking and disclosure program for buildings over 50,000 square feet.

California’s SB-350, the Clean Energy and Pollution Reduction Act of 2015, requires the state to double statewide energy efficiency savings in electricity and natural gas end uses by 2030.

AB 802 supports this mission by authorizing the California Energy Commission to create a building energy-use benchmarking and disclosure program. In addition, AB 802 expands the CEC’s data collection authority to improve the development and evaluation of policy and programs, and the state’s energy infrastructure planning efforts.

The specific benefit anticipated from AB 802 is improved building energy efficiency statewide, resulting in less demand for energy, thus reducing the environmental impact of operating buildings, including reducing greenhouse gas emissions.

The energy benchmark information enables building owners to make informed decisions regarding whether and how to make building improvements. Plus, public disclosure of building‐level performance information provides an incentive for building owners to improve their buildings, and provides a valuable tool to help prospective building owners and tenants understand more fully a building they are considering purchasing or renting.

A building’s ENERGY STAR score is a metric on a 1-100 scale that demonstrates how efficient a building is compared to similar buildings.  Buildings with a score of 75 or better are in the top 25% of performers and can apply for the ENERGY STAR certification. Getting an ENERGY STAR certification or award gives the building owner recognition for its energy and water efficiency, providing positive publicity and a competitive edge in the marketplace.

Yes. The proposed regulations require owners of "disclosable" buildings, including those owned by local government entities, to benchmark and disclose their buildings annually. 
This includes local schools and school district facilities.

Call Chuck at 415-937-5046.