The BEED Act
(Act) was passed by the Commonwealth
parliament as part of the National Strategy on Energy Efficiency
released by federal, state and territory governments in July
2009.
The Act sets out the requirements and
obligations regarding the disclosure of energy efficiency of
commercial buildings.
From 1 November 2011, vendors and
lessors of office space of 2,000 m2 or more will be
required to obtain and disclose an up to date energy efficiency
rating.
Buildings affected
The Act, implemented through the
Commercial Building Disclosure program (CBD),
applies to:
-
building owners selling an office
building with net lettable area (which is measured in accordance
with the Property Council of Australia method of measurement) of
2,000 m2 or more;
-
building owners leasing office space
of 2,000 m2 or more; and
-
tenants who are subletting part of
their premises with a net lettable area of 2,000 m2 or
more.
Disclosure requirements
If a building or an area of a building
is disclosure affected, and you are selling the building, leasing
the building, or leasing an area of a building that is disclosure
affected, then you are required to obtain and register a Building
Energy Efficiency Certificate (BEEC).
A BEEC includes the following
information:
-
a NABERS energy star rating for the
building (it is important to note that the NABERS rating system has
now been extended to six (6) stars);
-
an assessment of tenancy lighting in
the area of the building that is being sold or leased; and
-
general energy efficiency
guidance.
In order to comply with the disclosure
obligations under the Act, building owners and lessors can meet
their obligations by:
-
obtaining and disclosing an up to
date energy efficiency rating through a BEEC; and
-
including the NABERS energy
efficiency rating in any advertisement for the sale, lease or
sublease of the office (the rating must be displayed prominently
within an advertisement so that it is clearly visible, is not
obscured, and the number and the text included in the rating is at
least as large as the majority of the text contained in the
advertisement.
Exemptions
Certain exemptions are available under
the Act, and an owner or a lessor who considers that their building
or area would be eligible for an exemption, is entitled to submit
an application for an exemption under section 17 of the Act. An
application for an exemption must be made to the Secretary of the
Department of Climate Change and Energy Efficiency along with a
$350 application fee.
Some examples of exemptions include
where the building or the area of the building is used for:
-
police or security operations;
or
-
if, because of the characteristics of
the building or the area of the building in relation to which the
obligation would apply, it is not possible to assign an energy
efficiency rating to the building, or assess the efficiency of
lighting of the building or the area of the building, in accordance
with the assessment methods and standards determined under the
Act.
The BEEC
A BEEC can only be applied for and
obtained by a commercial building disclosure accredited
assessor.
There is no fee for applying for a
BEEC; however the building owner or lessor will be responsible for
the fees to the accredited assessor.
The BEEC will be issued and remain
current until the expiry of either the NABERS energy rating or the
lighting assessment, whichever is the first (a NABERS energy rating
is usually given for 12 months).
Increase value and level of demand by improving energy
ratings
The Australian Property Institute has
recently released a report: 'Building Better Returns, A Study of
the Financial Performance of Green Office Buildings in
Australia'.
The report was based on using a
portfolio of green star and NABERS rating office buildings in
Sydney and Canberra and benchmarking these buildings against a
portfolio of non green office buildings in similar markets.
The report showed 'a clear link between
enhanced green premiums in value with the higher rated NABERS
energy rating categories'.
Consequence of non disclosure
The Act imposes civil penalties on
corporations and individuals who fail to comply with the
requirements under the Act, including significant monetary
penalties for each day that a disclosure affected building or
disclosure affected area of a building is offered for sale or lease
without a BEEC.