NZE Lease Excerpts Note

The document presents specific legal clauses from NZE leases, including the Bullitt Center, Boulder Commons, 1400 Page Mill Road, and PLANYC. These excerpts cover mechanisms for managing energy budgets, submetering electricity and water, annual recommissioning of building systems, and the amortization of capital improvements intended to improve energy efficiency.

• The Bullitt Center utilizes a Renewable Energy Management Program where tenants are allocated a specific kWh allowance based on their share of the building. If a tenant stays within this allowance, the landlord reimburses 100% of utility costs (excluding taxes and connection fees) via rent credit or check; however, exceeding the allowance results in the landlord retaining the utility payments as liquidated damages.
• At the Bullitt Center, a 'Plug Load Maximum' is established at 7 kBtu per Useable Square Foot per calendar year. To maintain NZE goals, the landlord purchases Renewable Energy Certificates (RECs) to offset any energy use exceeding this maximum, with the actual cost of the RECs billed directly to the tenant as Additional Rent.
• Boulder Commons implements annual recommissioning of base building systems starting January 1, 208 [sic], following ASHRAE Guideline 0.2 or 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 lease for 1400 Page Mill Road stipulates that 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 costs of energy-efficiency capital improvements in Operating Expenses, provided they are certified by an Independent Engineer to reduce utility consumption. These costs are reduced by government incentives or tax credits and are amortized over an 'Adjusted Payback Period' equal to 125% of the simple payback period, with the landlord recovering 80% of the Projected Annual Savings.

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} }