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October 1, 2010

Energy Disclosure for Commercial Properties

By Joseph Derhake, PE

Improving energy efficiency in California buildings is a hot topic, and the state is now pushing the issue by requiring disclosure of energy ratings during lease, lending, and sale transactions for non-residential buildings.

In 2007, section 25402.10 was added to the California Public Resources Code to create a system for measuring the energy consumption of Nonresidential buildings. The goal? A 20 percent increase in energy efficiency by 2015. The statute outlines a simple, two-part benchmarking and disclosure process.

This 2010 article addresses and summarizes the new regulations.

About the Authors

Joseph Derhake, PE

Joseph Derhake, PE

Chief Executive Officer
Joe Derhake, PE, serves as CEO of Partner Engineering and Science, a global environmental, engineering, and energy consulting firm. A registered Professional Engineer for over 25 years, Mr. Derhake has touched thousands of commercial real estate projects, from development and transactional due diligence to site remediation, asset optimization, ESG initiatives and more. His clientele includes many of the world’s largest lenders, real estate investors, and corporations. Mr. Derhake is a registered civil engineer in multiple states. He holds a bachelors degree in civil engineering from Michigan State University and Masters in Business Administration from University of Southern California.

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