California AB 802: Compliance Standards for Building Energy Benchmarking
A guide for commercial and multifamily building owners on complying with California’s energy benchmarking requirements.
California’s AB 802: What Building Owners Need to Know
California is leading the way in energy efficiency and sustainability with Assembly Bill 802 (AB 802), which mandates energy benchmarking for commercial and multifamily buildings. If you own or manage a large building in the state, you are now required to track and report energy use annually. Compliance is crucial not only to meet regulatory requirements but also to improve operational efficiency and reduce costs.
What does this mean for your business? How can you ensure compliance while maximizing the benefits of energy management? This guide breaks down the key aspects of AB 802, including who must comply, how to report energy data, and the consequences of failing to meet the requirements.
What Is AB 802?
AB 802 is California’s energy benchmarking and disclosure law, signed into effect in 2015. It replaces previous energy benchmarking laws and expands reporting requirements to include more buildings. The law requires commercial and multifamily buildings over 50,000 square feet to report annual energy usage to the California Energy Commission (CEC).
The goal is to improve transparency in energy consumption and drive efficiency improvements across the state. By tracking and analyzing energy data, building owners can identify waste, implement efficiency measures, and contribute to California’s long-term climate goals.
Who Must Comply AB 802?
Not all buildings are covered under AB 802. To determine if your property falls under this regulation, check the following criteria:
1. Commercial buildings:
Must be 50,000 square feet or larger and not have residential utility accounts.
2. Multifamily buildings:
Must be at least 50,000 square feet and have 17 or more separately metered residential utility accounts.
Certain exemptions exist, such as buildings without a certificate of occupancy for more than half of the reporting year or those primarily used for industrial or manufacturing purposes.
How To Comply With AB 802
1. Gather Energy Data
To report energy usage, you must collect at least 12 months of energy consumption data from your utility providers. California utilities are required to provide aggregated data for covered buildings upon request.
2. Use ENERGY STAR Portfolio Manager
The CEC mandates that building owners submit their benchmarking data using ENERGY STAR Portfolio Manager, a free tool provided by the U.S. Environmental Protection Agency. This platform allows you to track energy consumption, compare performance against similar buildings, and generate reports.
3. Submit Data To The California Energy Commission
Once your data is uploaded and verified, you must submit your report to the CEC annually by June 1. Failure to meet this deadline can result in penalties.
What Happens If You Don’t Comply?
Non-compliance with AB 802 carries significant risks. The CEC enforces penalties for failure to report, which may include fines of up to $2,000 per day until compliance is achieved. Beyond financial penalties, non-compliance can impact a building’s marketability and eligibility for energy efficiency incentives.
Why Compliance Matters
While AB 802 introduces regulatory obligations, it also provides opportunities for building owners and businesses to benefit from better energy management.
1. Cost Savings:
Tracking energy use helps identify inefficiencies and reduce utility bills.
2. Sustainability Goals:
Energy efficiency improvements align with corporate sustainability commitments and contribute to California’s climate action plan.
3. Competitive Advantage:
Buildings with strong energy performance are more attractive to tenants and investors.
Next Steps For Building Owners
If your building is subject to AB 802, take proactive steps to ensure compliance. Begin by collecting energy data, setting up an ENERGY STAR Portfolio Manager account, and preparing to submit your annual report before the June 1 deadline.
By meeting these requirements, you not only avoid penalties but also unlock long-term benefits that enhance operational efficiency and sustainability.
For more details, visit the California Energy Commission’s official website.
