As interest in energy efficiency and green buildings continues to build, it is easy to imagine that property due diligence by prospective buyers and lessees will begin to include such environmental considerations, which can impact property values and rental rates. This is particularly true in light of legislation such as California’s Assembly Bill 1103, a new law that became effective Jan. 1 and is directed at benchmarking energy use in existing commercial buildings.
In order to accommodate these changes, ASTM International Committee E50 on Environmental Assessment, Risk Management and Corrective Action is developing a proposed new standard for the collection and disclosure of energy use information associated with buildings involved in real estate transactions.
The proposed new standard, ASTM WK24707, Guide for Building Energy Performance Disclosure, is under the jurisdiction of Subcommittee E50.02 on Real Estate Assessment and Management.
ASTM WK24707 will be used by professionals conducting due diligence for prospective property purchasers and lessees.
“It is anticipated that energy disclosure obligations will be incorporated into the traditional legal obligations of landlords and sellers relative to traditional real estate-related disclosures as to the conditions of a property,” says Anthony Buonicore, a member of Committee E50. “Thus, our efforts to standardize this process will assist in establishing disclosure clarity in a routine commercial real estate sale or lease transaction upon which all parties to the transaction can rely.”
Areas that could be covered in the screening process to be described in ASTM WK24707 include:
Property and building characteristics (property type, building age, last major renovation, number of floors, square footage, occupancy, heating system, air conditioning system, etc.);
Electrical consumption and cost (minimum prior 12 months);
Oil, natural gas and steam consumption and cost (minimum prior 12 months);
Benchmarking against peer buildings as determined by green building certification and rating systems;
Water consumption and cost (minimum prior 12 months);
Carbon dioxide emissions, carbon footprint, carbon neutral potential;
Energy audit history;
Green building certification/rating;
Applicable energy efficiency ordinances/codes (local/federal); and
Applicable economic incentives, credits and grants for energy efficiency improvements (federal, state, local, utility).
All interested parties are invited to join in the ongoing work on ASTM WK24707 and in other standards developing activities of E50.02.
For technical information, contact Anthony Buonicore, Buonicore Group, Milford, Conn. (phone: 800-238-184; ajb@bepinfo.com). ASTM Committee E50 meets Oct. 20-22 during October committee week in Atlanta, Ga.
ASTM International welcomes and encourages participation in the development of its standards. ASTM’s open consensus process, using advance Internet-based standards development tools, ensures worldwide access for all interested individuals. For more information on becoming an ASTM member, please contact Daniel Smith, ASTM International (phone: 610-832-9730; dsmith@astm.org).
Release #8325