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Industrial Real Estate Specialists Since 1976

Assembly Bill 1103 Went into Effect Jan. 1st, 2014

Assembly Bill 1103 Went into Effect Jan. 1st, 2014

 

AB1103 requires the disclosure of energy consumption information for lease, sale or refinance transactions involving non-residential buildings.  California Energy Commission regulations have established exemptions for certain types of non-residential building uses.  One of those exemptions excludes industrial buildings used for manufacturing.  However, industrial buildings used for storage, such as warehouses and distribution centers, are not exempt.

The key determinant of whether AB 1103 disclosures apply is the building's use classification.  If the classification is Group F (Factory), the building is exempt.  If the classification is Group S (Storage), AB 1103 applies.  Use classifications are defined under the statewide California Building Code, but the local municipality selects the use classification for a particular building in its issuance of the occupancy permit.  Consequently, local interpretations and applications of the use classifications can vary.  In the case of industrial buildings utilized for manufacturing, assembly or fabrication activities, the exemption will clearly apply.  However, warehouses, depots and distribution centers are likely to be classified as Group S and, therefore, subject to the regulations.  In those cases, the occupancy permit documentation is the best means of determining whether AB 1103 applies.

AB 1103 encompasses, office, institutional, hospitality and other commercial uses as well.  For your reference, listed below are the use classifications that are NOT exempt.  I've included a link to a page on the International Code Council website HERE that lists the various use classifications with links to the types of businesses that are included in each classification.  

If any portion of a building includes a use classification that is exempt, such as residential units or manufacturing, the entire building is exempt from AB 1103 compliance.

i. Assembly (A)

ii. Business (B)

iii. Education (E)

iv. Institutional - Assisted Living (I-1, R-2)

v. Institutional - Nonambulatory (I-2)

vi. Mercantile (M)

vii. Residential - Transient (R-1) (for example, a hotel)

viii. Storage (S)

ix. Utility - Parking Garage (U)

 
For more information on this legislation and on generating a disclosure report check out:
 
The California Energy Commission's Website:
 
Green EconoMe