NZE Lease Excerpts Note

This document provides a collection of lease excerpts from various Net Zero Energy (NZE) buildings, illustrating legal language used to manage energy budgets, submetering, recommissioning, and the recovery of capital improvements for energy efficiency.

• The Bullitt Center employs a specific energy budget system where tenants are allocated a 'Tenant’s kWh Allowance' based on their share of the building and the total tenant load. If a tenant stays within this allowance, the landlord reimburses 100% of their utility costs (excluding taxes and connection fees) via rent credit or check. Conversely, exceeding the allowance results in the landlord retaining the utility payments as liquidated damages, and exceeding it for two consecutive years may be treated as a nonmonetary default.
• At the Bullitt Center, a 'Plug Load Maximum' of 7 kBtu per Useable Square Foot per calendar year is established. If a tenant exceeds this limit, the landlord purchases Renewable Energy Certificates (RECs) to maintain the NZE goal, and the actual cost of these RECs is billed directly to the tenant as Additional Rent.
• Boulder Commons implements a mandatory annual recommissioning of the base building system starting January 1, 208 [sic], adhering to ASHRAE Guideline 0.2 or ASHRAE Guideline 202. This process covers HVAC, refrigeration, lighting, and domestic hot water systems, with costs billed to tenants as an Operating Expense. If NZE is not achieved, the landlord and tenants must mutually establish an energy optimization plan.
• The Bullitt Center utilizes a Building Monitoring System to track electricity consumption in real time and provides tenants with annualized statements for both kWh and water consumption. The landlord also reserves the right to share this real-time operational data with the public.
• At 1400 Page Mill Road, electricity costs are billed by the landlord at the same rate as the City of Palo Alto Utilities, regardless of whether the power is supplied by the utility or generated by on-site solar power.
• PLANYC's Model Energy Aligned Clause allows landlords to include the costs of energy-efficiency capital improvements in Operating Expenses. The recoverable amount is limited to 80% of the 'Projected Annual Savings' and is amortized over 125% of the 'simple payback period'. These costs are further reduced by any government incentives or tax credits received by the landlord.

APA

RMI (n.d.). NZE Lease Excerpts Note. https://rmi.org/app/uploads/2018/01/NZE_Lease_Excerpts.pdf

Chicago

RMI. NZE Lease Excerpts Note. n.d. https://rmi.org/app/uploads/2018/01/NZE_Lease_Excerpts.pdf.

Wikipedia

{{cite report |author=RMI |title=NZE Lease Excerpts Note |url=https://rmi.org/app/uploads/2018/01/NZE_Lease_Excerpts.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmindnze, author = {{RMI}}, title = {{NZE Lease Excerpts Note}}, institution = {RMI}, url = {https://rmi.org/app/uploads/2018/01/NZE_Lease_Excerpts.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }