The Building Emissions Saving Ordinance (BESO) is a point of sale requirement in the city of Berkeley. It requires property owners to complete and disclose an assessment of their building’s energy performance when it changes ownership.

 

In keeping with its forward-thinking stance on protecting the environment, Berkeley undertook research to improve its support for energy efficiency. According to this research, 45% of Berkeley’s overall greenhouse gas emissions come from buildings.

 

Responding to this data, the Berkeley City Council crafted BESO and put it in place. The stated intent of BESO is to make “building energy use information more transparent to owners and prospective renters or buyers” and to motivate owners to increase their investment in energy-efficient upgrades.

 

If you’re considering buying or selling residential property in Berkeley, it’s important to understand the BESO compliance process.

 

Use the BESO portal to check the home’s current status. When listed for sale it must be “Compliant,” ”Exempt,” or “Pending - Deferral to Buyer Requested.” If no status is listed, you can comply in various ways.

 

For 1-4 units, consult with a registered BESO assessor (look here for commercial, mixed use or 5-plus units). They will produce a report which is then provided to the city and any prospective buyers. The assessment will offer ways to save energy and eliminate fossil fuels. It will also provide options and incentives for energy efficiency and electrification upgrades. You may then decide to complete improvements, making the building more efficient.

 

As a home seller, improving a home’s energy efficiency offers a clear upside to prospective buyers. Besides the environmental benefits, completing a retrofit enhances the overall appeal of the property, and eventually your return on investment.

 

Some valuable energy saving steps to consider include transitioning from natural gas to a heat pump water heater and/or HVAC system, installing an induction cooktop, and making thorough insulation upgrades.

 

Owners of multi-unit buildings can complete a comprehensive energy improvement project with a minimum increase of 10% energy efficiency, such as the Bay Area Multifamily Building Enhancement Program.

 

If these requirements are met, the property Form A will be issued and provided to potential buyers.

 

A seller may also pay a fee (currently $79 for a single family home) and apply to transfer responsibility for the BESO assessment to the buyer. Once the property is in escrow, the buyer submits an application to accept the BESO deferral and will need to complete the assessment within 6 months.

 

Instead of the assessment, a Fuel Source Disclosure may be provided with the disclosure documents. This disclosure informs the buyer about current energy sources for all major systems and appliances, an overview and the benefits of electrification, possible incentives and rebates as well as an outline of local and state electrification goals.

 

Owners may also apply to defer the assessment for ten years if it is new construction or if extensive renovations are undertaken. Permits must be provided with the application. Otherwise, since BESO recommendations and building conditions change over time, the assessment expires after five years.

 

If the building is sold again after the assessment has expired, the seller will need to bring it into compliance before listing.

 

If the building is less than 850 sq ft or larger than 25,000 sq ft, it is exempt. Attached condos are also currently exempt.

 

To obtain clear direction on BESO and how it affects your property, as well as for hardship or other deferrals, reach out to the BESO personnel directly at [email protected].

 

Berkeley is often on the leading edge of environmental action and other municipalities frequently follow. Regardless of the locale, it benefits all of us to act with an eye toward our environmental impact.

 

Are you interested in some common sense advice on BESO or some resources for energy efficient retrofits? Red Oak is carbon neutral, green certified and is an earnest advocate for responsible building practices. Contact us - we’re happy to help.