The issue of energy compliance is currently under the spotlight as a growing number of US states, along with the District of Columbia, have enacted greenhouse gas legislation. These laws consist of a mandate for owners of particular commercial infrastructures which stipulates adherence to state energy standards and necessitates annual reporting of building energy consumption. According to law firm Ballard Spahr LLP, the deadlines for these vital compliance reports are soon approaching, which highlights the urgency for commercial landlords to address energy efficiency protocols.
It is critically important for commercial landlords to prepare for this upcoming deadline, particularly since the energy compliance reports require fairly comprehensive access to building information. Therefore, landlords may need to consider updating their lease agreements to incorporate provisions that allow the retrieval of such pertinent information to accomplish their reporting obligations.
An obvious consideration now lies in the preparation of lease agreements and the extent of the reporting requirement. Aside from merely capturing and reporting quantitative energy consumption data, legislation across various states may necessitate qualitative assessments too. This can encompass various factors such as the building’s construction type, its management of energy resources, the energy efficiency of its systems and its provisions for monitoring and managing energy usage.
An insightful example of comprehensive guidelines comes from New York City’s Local Law 97 of 2019, which enforces stringent action against buildings that exceed specific greenhouse gas emissions. The law even provides a model for other states to follow when enforcing greenhouse gas legislation. Demanding comprehensive reporting could provide the impetus for more effective energy management and ultimately, a great leap in the global fight against climate change.
As these reporting deadlines approach, it becomes clear that prompt action is not just a matter of legal compliance, it impacts landlords’ reputation and their long-term standing in the industry. Keeping abreast with these laws turnout to be vital for all stakeholders in commercial real-estate, as it’s a significant step towards creating a more sustainable future.