Mandatory Disclosure FAQ

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    environment.gov.au/buildings

    National Strategy on Energy Efciency

    Australian, state and territory governments agreed to

    phase in the disclosure of commercial building energy

    efciency through the National Strategy on Energy

    Efciency announced in July 2009.

    The disclosure scheme will happen in two phases:

    Phase one ofce buildings covering 2,000 squaremetres or more

    Phase two expanding disclosure to other

    commercial building types, including hotels, shops,

    schools and hospitals

    The parameters for the implementation of phase one

    were agreed by governments in November 2009.

    Visit www.environment.gov.au/buildings to nd

    out more

    Email your questions to

    [email protected]

    DISCLOSURE OF COMMERCIALBUILDING ENERGY EFFICIENCY

    Starting in the second half of 2010, up-to-date energy efciency information will need to be disclosed to

    prospective buyers or tenants when ofce space covering 2,000 square metres or more is sold, leased

    or sub-leased.

    The energy efciency disclosure scheme for commercial buildings is part of an ambitious plan to drive

    more energy efcient homes and workplaces.

    Image credits Page 1 (L to R): Ecologically Sustainable Development (ESD) Building

    Management (Erica Lauthier, Michelle McAulay, Erica Lauthier)

    What difference will disclosure make?

    Energy efciency disclosure creates a more informed

    market that rewards better performing buildings and

    stimulates greater investment in energy efciency.

    Disclosure will:

    Deliver consistent, credible, comparative and

    meaningful information about building energyefciency

    Allow energy efciency and energy costs to be

    considered by prospective buyers and tenants

    Provide building owners with information on how

    their building rates, and

    Encourage more efcient buildings, lower energy

    use and lower emissions.

    More sustainable buildings can also deliver

    improvements to staff morale, productivity and help

    support green jobs.

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    environment.gov.au/buildings

    When will disclosure occur?

    When ofce space is advertised for sale or lease, a

    NABERS Energy star rating must be included in the

    advertisement.

    When prospective buyers or tenants enquire about

    ofce space, they must be provided with a valid

    building energy efciency certicate as early as

    possible in the process, free of charge, whether

    requested or not.

    Prospective buyers or tenants will also be able to

    access the certicate on an online registry using a

    unique reference number.

    Will ratings be publicly available?NABERS Energy star ratings will be publicly

    accessible on the online registry via a searchable

    database. However, to access a full building energy

    efciency certicate on the registry, you will need a

    unique reference number.

    Are there any penalties?

    Compliance and enforcement details will be specied

    in the legislation. Possible enforcement provisions

    could include:

    a maximum penalty of $100,000 for each offence of

    non-disclosure, and

    publishing the name of organisations who have not

    complied on a publicly accessible website.

    When will the scheme commence?

    Commonwealth legislation is now being developed to

    give effect to the scheme in the second half of 2010,

    with a nal commencement date dependant on the

    passage of the legislation through Parliament.

    Who needs to disclose?

    Building owners need to meet the requirements of the

    scheme if they are selling or leasing ofce space with

    a net lettable area of 2,000 square metres or more.

    Tenants who are sub-leasing ofce space with a net

    lettable area of 2,000 square metres or more will also

    need to comply.

    New ofce buildings will be exempt from the scheme

    until they have sufcient energy use data to obtain a

    rating.

    In the legislation, limited exemptions will also be

    granted in certain situations, for example where a valid

    energy efciency rating cannot be obtained.

    What will be disclosed?

    In all cases, a building energy efciency certicate

    will need to be disclosed. The certicate will generally

    include three components:

    a National Australian Built Environment Rating1.

    System (NABERS) Energy base building star rating,

    tenancy lighting details, and2.

    energy efciency guidance.3.

    The specic components required will depend on thenature of the transaction and will be prescribed in

    legislation for the scheme.

    If a building has inadequate metering to obtain a base

    building rating, a whole building rating will be required.

    For ofce buildings that have been substantially

    refurbished within the previous 12 months, the scheme

    will allow the star rating to be modelled in accordance

    with the NABERS Energy simulation protocol.

    For sub-leases, the NABERS Energy star rating

    will only need to be disclosed if an existing rating isavailable to the tenant who is sub-letting ofce space.

    Building energy efciency certicates will remain valid

    for 12 months.

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    Image credits Page 2 (L to R): Ecologically Sustainable Development (ESD) Building

    Management (Sebastian Immaraj, Sebastian Immaraj, Erica Lauthier)