Nonresidential Building Energy Use Disclosure Program (AB 1103) and Utilities



Since 2007, there has been a giant increase in California’s renewable and alternative electricity markets. At that point, Assemblywoman Lori Saldana drafted rules and the Nonresidential Building Energy Use Disclosure Program (AB1103) to promote increased exposure for our financial system’s greening. Part of the law contained language that would quickly provide one vicinity of ridicule among the populace of California and the gas and electric companies strolling their organizations. The language, “On and after January 1, 2009, electric and gas utilities shall keep data of the energy intake facts of all nonresidential buildings to which they offer carrier. This fact shall be maintained, in a layout compatible for uploading to the United States Environmental Protection Agency’s Energy Star Portfolio Manager, for as a minimum the most current three hundred and sixty-five days” (Saldana, 2007) provided a foundation for future discussion at the pathway to implementation for the legislation.


As an enterprise owner actively concerned about making the most of such regulation, I have paid specific attention to the diverse problems in the public debate. I have even diagnosed three principal areas of the exam. The first of those areas is the enforcement problem at the gas and energy software degree. The next issue is the difficulties of enforcement at the building proprietor level and, in the end, the issue of operating with the California Energy Commission and the federal agency of the Environmental Protection Agency (EPA). All three aspects present particular challenges in transferring toward adoption. The diverse stakeholders’ legal and moral requirements are juxtaposed, and the influences and reactions provide remarks on the technique as it unfolds.

Nonresidential Building

My company has witnessed and taken part in all three areas of exploration. From beta checking out the EPA Portfolio Manager device used in AB1103 to position weather, change has staked my company in this process. The slow-recovering financial system that became especially dysfunctional in the commercial capital markets has contributed to discontinuity, confusion, and adoption at every turn. From the utility attitude, a case is made that such commercial regulation is unreasonable to its capability to the characteristic. With such a myriad of dysfunctions and competing for favored consequences, it is clear that AB1103 posted sizeable and unexpected departments inside California.


There are three number-one regions of the challenge, which could all be considered from awesome views relying on an Owner, an agency of the state/federal government, or public software. In California, we’ve got investor-owned utilities (IOU). These public utilities are defined as “Any agency that affords services to most people, although it can be privately owned. Public utilities consist of electric-powered, fuel, smartphone, water, and television cable systems, in addition to streetcar and bus traces. They are allowed monopoly rights due to the realistic need to carry whole geographic regions with one device. Still, they’re regulated utilizing country, county, and town public utility commissions underneath kingdom laws” (Hill & Hill, 2014). The three essential subject matters stroll through every vicinity of a problem dealing with monetary, technological, and philosophical troubles.


First, allow us to study the general public utility attitude of managing federal and kingdom organizations. The IOUs have staked their role by checking out the legalities of AB1103. “The first involved capability aggregation of entire constructing information for launch into the owner’s Portfolio Manager account. The IOUs often mentioned the so-called “15/15” rule as a restriction to aggregation. The 15/15 Rule (CPUC Decision ninety-seven-10-031) advanced through the CPUC to enable utilities to release aggregated data to the general public in certain complaints. The rule requires aggregation to include at least 15 provider accounts from exceptional clients, and no character provider account might also account for 15% or more of the entire electricity usage. However, as supported by using statements from the CPUC legal professional throughout the conferences, the 15/15 Rule no longer applies to the AB 1103 rules. Second, the IOUs expressed challenges concerning section 8380 of the Public Utilities Code and the latest CPUC policies about protecting purchaser identification in clever grid data. (CPUC Decision (11-07-056), Attachment D.) Staff recommends that the Energy Commission state that section 8380 permits the release of strength use facts to comply with a country’s law, including AB 1103. (Pub. Util. Code, § 8380, sub. (e) (3).)” (Mayer, 2012). Here, we’ve got to ward off the IOUs as they seek rationalization toward implementing AB 1103. The tactic to slow the adoption of AB 1103 becomes driven through legal clarification on the definitions, limits, and scope. Here are a few examples:

Portfolio Manager’s definition has changed: “U.S. Environmental Protection Agency’s” replaced “EPA’s” to do away with the need to outline the acronym. The purpose of Prospective Buyer changed to clarify at what stage a capability purchaser of a nonresidential construction is entitled to acquire power use disclosures. A prospective lender’s report was added to make clear to what degree a capable lender financing an entire nonresidential construction is authorized to accept power use disclosures. Prospective Lessee’s definition becomes clear at what level a potential lessee of a nonresidential building is entitled to obtain energy use disclosures.

The period Square Feet and its definition were deleted as useless because segment 1682 changed to encompass an explanation of the term, thereby obviating the need for a separate report. (Rulemaking, 2013)
Another difficulty in considering the IOU angle is the shortage of eras to adopt AB1103. The funding during this period to create techniques and management for the call for statistics is widespread. Considering that the IOUs are enterprises, it turns hard to assess their expectancy and observe the voluntary diminishing of their business prowess by making them give up users who are much less likely to buy from them.

Next, let us examine the relation of AB1103 between IOUs and the building owners. Here, a lack of schooling and philosophical congruence act pri hurdlhurdlesdoption. The duty falls when determining who must be liable for education. The constructing owners on how to comply and finally leverage AB1103 for the promised economic gains upon this regulation changed into around built. One entity closely monitoring this for building owners has been the Building Owners and Managers Association (BOMA). The position of BOMA has been capable of painting with the IOUs to reduce the effect on building proprietors. In the latest replaces BOMA has won these allowances from the California Energy Commission based totally on the Commission’s oversight of the IOS:

The Energy Commission will not require the disclosure or reporting of the Facility Summary Report.
If data are lacking from disclosure, and if the proprietor has made an inexpensive effort to examine the missing information, the owner can also then use an approximation of the records, supplied that the approximation is diagnosed as such, is reasonable, is based on the high-quality statistics to be had to the owner, and isn’t always used for the reason of circumventing or evading this article. The Energy Commission is comparing options to amend the rules. (Loyer, 2013)

Again, we are confronted with a huge unforeseen roadblock in adoption. The IOUs’ governance is inherently connected to the espousal and rationalization of the California Energy Commission, which guides the California Public Utility Commission that speaks for the IOUs in the long run. The constructing owners have realized that any additional costs or procedural compliance may be staved off with the aid of becoming a member of the IOUs in muddying troubles also aligned with the IOS ones, once more to the benefit of the IOUs.

Lastly, we examine the federal attitude and the EPA’s position in handling the IOU angle method. Aside from the USA economic system’s extended financial instability, the economic capital markets collapsing, and their sluggish recuperation having dwindled adoption of AB1103, a larger hassle exists that is woven within the one’s problems. Within coins-strapped confines, “The EPA is last in on the scheduled launch in their newly upgraded Energy Star Portfolio Manager to make benchmarking constructing energy performance extra, for loss of a better phrase, efficient. The improvement will encompass database structure, machine processing, internet offerings, and user interface modifications. All adjustments are being made with an overarching motive of enhancing capability and usability for all parties. The most extremely good thing for the Portfolio Manager user is that the web offerings, formally called Automated Benchmarking Services (ABS), can have a brand new software design to simplify the manner of exchanging statistics with Portfolio Manager” (Segan, 2013). Imagine the paperwork of adopting a central authority rollout of the technology. Current news headlines retell the story, “Government Tech Problems: Blame the People or the Process?” (Hu, 2014). “President Obama has repeatedly stated that authorities wish to improve how it procures and uses generics. But to this point, the White House hasn’t planned to tackle the difficulty” (Hu, 2014). Here, we take a look at the final part of the competition puzzle. The IOUs are yet again armed with an extra purpose to slow the adoption of AB1103. Climate change’s philosophical problem and a lack of era and economics are abjectly tied together on this ultimate issue.



To summarize, the dilemma of dissenting opinion at the implementation of AB 1103 is being perpetrated via the IOUs, which, at the beginning, were deemed to assist it. The troubles are clean, yet little has been achieved to resolve their impact on California’s populace. Is weather change real? How will we get a business to harm itself and remain inside criminal limitations? Who is chargeable for disseminating the level of education essential to fully embrace the law supposed to provide a lift to Californians? These are the three vast topics affecting the federal and state organizations, the building owners, and the IOUs tasked with using the manner. Traditional commercial enterprise frameworks are being urged to new paradigms. The effects of macro-stage monetary instability continue to squeeze all events, and a fashionable malaise exists for training on such topics. At the same time, different financial factors, including keeping the doors open, all preside at the forefront of all events.

AB1103 was meant as a boon to California. What has evolved is any other example of company America’s electricity and influence dictating the what, who, and when of our lives. Originally set to begin in 2009, the state-of-the-art postponement has AB1103 becoming energetic simply this 12 months (2014) and for best specific and slender contributors. As referred to above, even the enforcement has been mitigated to satisfactory attempt fame. It is also clear that at the time of manifestation, the IOUs were going to be positioned to deter AB1103 adoption, with a myriad of prison wrangling and inefficiencies in the paperwork of its governance surroundings.

It is now upon California’s person to renew our efforts at holding the IOUs accountable for these seemingly unethical tactics in adopting AB1103. Subsequent rules, such as AB531, have been drafted to clarify positioning on AB1103, but not to the advantage of the California populace. More and greater political partisanship has created a cloud of bewilderment and mistrust within the implementation of AB1103. From the proof amassed, it’s apparent that the very entities IOUs in the middle of the performance of AB1103 are the drivers of most, if not all, problems. Pushback at every flip has happened to the detriment of Californians. Where and the way this process ends up genuinely lies with the IOUs? Either manner, it’s far safe to say that the larger issue of the greening of an economy will take precedence over corporate benefit. This paradigm shift toward sustainable practices is a pressure past anyone’s purview. Our lives, or our youngsters’ lives, are at stake, and nothing can forestall us from changing the will of humans or at least this small commercial enterprise owner.


Hill, G., & Hill, K. (2014, January 28). Legal Dictionary.
Hu, E. (2014, January 9). Government.
Loyer, J. (2013, August 29). Uploads.
Mayer, R. M. (2012, November 26). Rulemaking.
Rulemaking. (2013, March). /2013-03-08_Final_Statement_of_Reasons_TN-69881.Pdf
Saldana, L. (2007). Nonresidential Building Energy Use Disclosure Program (AB1103). Sacramento: California Energy Commission.
Segan, D. (2013, June 07). Energy Star Portfolio Manager Upgrade: What Is It?
Michael Vargas is the founder and important representative of Atlas Project Support. This San Diego County-based company specializes in strength conservation, sustainable building practices, and preconstruction offerings for public and personal customers. Michael holds instructional and industry credentials and has over thirteen years of production and project control experience.

In addition to his consulting enterprise, Michael is a Professor at the Donald R. Tapia School of Business at Saint Leo University, a Catholic University in Florida, and the San Diego State University College of Extended Studies. This academic thing resonates with Michael’s professional life as he additionally conducts education in sustainable business practices for groups and corporations. Michael also donates his efforts to aid the San Diego State Foundation Energy Innovations Small Grant Technology Transfer Program at the Lavin Center as an MBA pupil mentor.

Mr. Vargas is a candidate for a Doctor of Education in Leadership Studies at Creighton University. He earned a Master’s in Business Administration, a Master’s in Project Management, and a Graduate Certificate in Financial Analysis from the Keller Graduate School of Management. Michael finished a Bachelor’s of Science in Business Administration at San Diego State University and a Green Building and Construction Certificate.