Date
Inquiry

This CIR pertains to EA Credit 3 - CASE A, where one point is available in cases where the lease has been set up such that "the energy costs are paid by the tenant and not included in the base rent". The Reference Guide indicates that if the landlord prorates utilities based on the tenant\'s portion of leasable area, this is an acceptable strategy, so long as the proration is based on actual quantities used. My question is in two parts: 1. Would the following text satisfy this requirement, so long as the tenant is presented with utility cost/use information as part of the adjustment? 2. If it is not satisfactory as is, what changes would be required to the text? * the lessee may make application to a utility company for the supply of electrical power required for the operation of special equipment, installed and used in the leased premised .... * the lessor shall permit the installation of meters and other facilities required for the above purposes * in the base year and in each and every subsequent year the lessee shall pay the lessor any amount by which the proportionate share of operating costs for the base year exceeds the base unit operating costs * if operating costs for any subsequent year are more or less than the operating costs for the base year, the lessee shall pay to the lessor the proportionate share of any such increase or the lessor shall pay to the lessee the proportionate share of any decrease.

Ruling

For Case A - when the project area is less than 75% of the total building area - the payments for energy consumed for lighting, plug loads, heating, cooling, and service water are to be based on actual consumption. When a project is interested in earning only one point, based on the payment terms controlled by the lease, these payments may be based on the actual building consumption and prorated on the project\'s portion of the total building lease area. The proposed lease language, with the adjustments up and down to a base year amount, satisfies the credit requirement. Special equipment, which the LEED-CI v2.0 First Edition Reference Guide refers to in Table 1 on page 178 as process uses, need to be submetered when installed. The occupant must make payments based on the actual consumption, but these payments do not necessarily have to be made directly to the utility. If the process uses are part of the project, the requirements need to be satisfied prior to certification. Neither the credit requirement nor the LEED-CI v2.0 First Edition Reference Guide stipulate that provisions must be made to anticipate future additions of process uses, but the lease language proposed by this project teams seems adequate to provide for that eventuality. Applicable internationally.

Internationally Applicable
On
Campus Applicable
Off