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Energy Disclosure for Commercial Properties

Published in California Lawyer:

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 nonresidential 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.

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