Mandatory Disclosure
Mandatory Disclosure of energy efficiency for buildings is a regulatory framework proposed by the COAG to improve the energy efficiency and reduce the GHG emissions of Australian buildings. Currently the mandatory disclosure of energy efficiency for commercial building (CBD) is in effect and plans and studies are being undertaken to phase in the mandatory disclosure of residential buildings from 2011. We will keep updating this page with the most relevant information on the scheme whenever they are released.
Mandatory Disclosure
Overview of Mandatory Disclosure
Poor energy efficiency performance of Australian commercial building sector introduces a major impact on the environment and energy consumption of Australia. The government's obligation under the Kyoto Protocol and alignment with global focus on energy efficiency as the most successful method of mitigating climate change has resulted in the development of mandatory disclosure scheme by the Australian government.
Department of Environment, Water, Heritage and Art (DEWHA) in December 2008 released a consultation regulation impact statement document regarding the proposal of the mandatory disclosure of the energy efficiency of buildings. Several information forums were also held in Australian capital cities in January and February 2009 and 41 written responses were received for the proposed regulations.
The Council of Australian Governments (COAG) on 2nd July 2009, addressing the key elements of National Strategy on Energy Efficiency, formally announced to introduce the mandatory disclosure of commercial office buildings from 2010 and gradually phase in the complete mandatory disclosure of all types of commercial buildings.
On 25 June 2010 the passing of Energy Efficiency Disclosure Bill 2010 by the parliament was formally announced by Minister for Climate Change and Energy Efficiency, Senator Penny Wong. Following that date phase one of the mandatory disclosure of commercial buildings is now in effect which requires the owners of commercial office buildings with the NLA of more than 2000 m² to disclose the energy efficiency rating of their building before advertisement for lease or purchase. The next phase of the commercial building mandatory disclosure is to address other types of commercial buildings including hotels, retail centres, schools and hospitals.
Mandatory disclosure is not for the owners of the commercial buildings only but plans are in motion to introduce a Residential Building Mandatory Disclosure (RBMD) scheme following the current announcement of CBD scheme. In July 2009 COAG announced that from 2011 the minimum energy star rating of new residential homes has to be 6 stars which is now reflected in the Building Code of Australia 2010. They also announced the plans for mandatory disclosure of energy efficiency, green house impact and water efficiency of residential developments at point of purchase or rent from May 2011.
The Department of Climate Change and Energy Efficiency has commissioned the Construction and Property Services Industry Skills Council (CPSISC) to undertake a study on the training requirements for successful introduction of Residential Building Mandatory Disclosure (RBMD) from the currently existing pool of NatHERS Accredited Assessors. The results of this study will provide the basis for a nationally acceptable accreditation and certification scheme for implementation of RBMD by NatHERS assessors. Based on the outcomes of the initial national consultation workshop in Canberra CPSISC has undertaken consultation in each Australian state and territory in July 2010 to finalise the study of the proposed mandatory disclosure scheme.
ACT is the only state which already has a mandatory disclosure scheme for energy efficiency of residential buildings in effect and soon a similar scheme might be applicable to all Australian states and territories if the mandatory disclosure of residential buildings is announced by the COAG as anticipated for May 2011.
There are several enforcement legislative instruments in effect to ascertain the seamless deployment of the mandatory disclosure in action including civil penalties and imprisonment.
