BACKGROUND
On May 8, 2009, Washington Governor Chris Gregoire signed into law SB 5854, also known as the Efficiency First bill. Focusing on energy efficiency in the built environment, the bill requires commercial building energy rating and disclosure, major improvements to building energy codes and energy performance standards and retrofits (if necessary) for public buildings. The bill also requires the state to recommend a methodology to rate the energy performance of homes.
Separately, Seattle Mayor Greg Nickels announced on Earth Day 2009 his Green Building Capital Initiative, a comprehensive strategy to reduce the climate impact from Seattle's homes and buildings. Measures include higher efficiency standards for new buildings, subsidized home energy audits, a loan program for home retrofits and expanded training programs for green building-related jobs. The plan also includes new rulemaking on building energy rating and disclosure that goes beyond the requirements of the Efficiency First bill. [Photo: Former Seattle Mayor Greg Nickels. Courtesy www.seattle.gov.]
KEY PROVISIONS
Washington
SB 5854, modeled after AB 1103 in California, requires owners of nonresidential buildings to rate their buildings using ENERGY STAR software and disclose that information to prospective buyers, lessees and lenders prior to the closing of a transaction. Utilities are required beginning Jan. 1, 2010, at the request of a building owner, to automatically upload energy consumption information for a building into ENERGY STAR software.
Nonresidential buildings greater than 50,000 SF are required to rate and disclose beginning January 1, 2011, while buildings greater than 10,000 SF are required to rate and disclose beginning January 1, 2012.
For public buildings, the requirements are more stringent. State agencies must rate public facilities greater than 10,000 SF and disclose benchmarking data by July 1, 2010 to the state General Administration, which will make the information public. A preliminary energy audit is required for buildings with an ENERGY STAR rating less than 50. If that audit identifies cost effective energy savings, an investment grade audit is required by July 1, 2013 and cost-effective measures must be implemented by 2016.
Additionally, beginning January 1, 2010, state agencies may not sign a new lease or renew space in a private building with an ENERGY STAR rating less than 75. Exceptions are allowed when a building owner agrees to undertake an energy audit and implement cost-effective upgrades within the first few years of a state lease. The provision is modeled after a federal requirement on the U.S. General Services Administration enacted under the Energy Independence and Security Act of 2007.
Seattle
On Nov. 16, 2009, CB 116731 was introduced into the Seattle City Council. Sponsored by Council President Richard Conlin, the proposed city ordinance would expand the building energy rating and disclosure requirements of SB 5854 in three areas:
- Multifamily projects are also subject to the disclosure requirements
- Rating data must be disclosed upon request to a current tenant; and
- Energy performance data is reported to the City of Seattle
Multifamily property with 20 units or more would report energy performance data to the city every three years beginning Jan. 1, 2011 for buildings with 20 or more units, and Jan. 1, 2012 for buildings with 5 units to 20 units. Other nonresidential property would follow the same disclosure schedule as in SB 5854 and report data to the city annually. According to the bill, the city would disclose the data upon inquiry but not post the data publicly. The bill is currently pending.
The city of Seattle commissioned an economic analysis of the proposed commercial and multifamily rating and disclosure programs. Collectively impacting more than 8,000 buildings, the analysis found that the programs would save more than 47 million kWh annually and create as many as 150 jobs.
PRESS AND MEDIA COVERAGE
Ray of Light in Washington State's New Energy Law | Puget Sound Business Journal, 5.04.09
Energy Efficiency Bill Heads for Gov. Gregoire's Desk | NW Energy Coaltion, 4.21.09
Seattle Office of the Mayor Press Release | 4.22.09
Seattle's Green Building Capital Initiative: Partnering for Citywide Retrofits | Brookings Institute, 7.01.09