Camden's Clause

Environmental Performance Clause

Drafting for leasehold agreements that impose obligations on buyers and tenants to use the property in an environmentally conscious way.

Updated: Not maintained
Jurisdiction: USA
Practice areas: Real estate and property
Sectors: Real estate

What this clause does

Obliges buyers and tenants to use the property in an environmentally conscious way. The covenants make flat owners and tenants aware of what is required to use a building efficiently and make such behavior mainstream [taken from Emma's Clause].

Clauses

1. Environmental Performance

Landlord and Tenant agree to the following provisions relating to the Environmental Performance of the Premises and the Building. These provisions shall apply to the fullest extent permitted under applicable law. [In the event of a conflict between the terms of this Clause and the other provisions of the Lease, the terms of this Clause shall control].

1.2 Excessive energy use

If Landlord is the supplier of energy and/or heat to the Premises, Tenant agrees that Landlord and/or Manager may receive, collect, and monitor Data concerning or resulting from the consumption of [energy and/or heat] at the Premises when available and to use such Data in accordance with the provisions of this Clause. If in the reasonable opinion of Landlord and/or Manager, the consumption of [energy and/or heat] at the Premises is excessive (by way of comparison to [other similar premises in the Building over not less than three calendar years or exceeds the average usage for a rental premises of the same size on the Property by [●] percent OR [other objective standard]]) then Tenant shall pay to Landlord as additional rent the reasonable cost of such excess consumption [determined at the rates charged by Landlord's utility provider]. Such additional rent shall be due and payable no later than [●] days after written demand to Tenant.

1.3 Repair

[Supplementing Section [●] of the Lease,] Tenant agrees to keep the Premises in good repair and condition. Where the Lease requires Tenant to replace or renew any relevant fixtures or fittings or other appliances at the Premises, Tenant shall do so with replacements of equivalent quality and value and with equivalent [or better] sustainability and Environmental Performance credentials, such as (where applicable) with A+++ rating models and/or Energy Star models and/or LED light bulbs [or other designation] where applicable, or as Landlord or Manager otherwise approve in writing. [All repairs shall be performed in accordance with the EMP.] 

1.4 Decoration, maintenance, and cleaning

[Supplementing Section [●] of the Lease,] Tenant agrees to carry out all works of repair, decoration and maintenance and other treatment of the Premises in a proper and workmanlike manner in accordance with good practice current at the time and using good quality sustainable, environmentally friendly, and sufficient materials. [All decorations shall be performed in accordance with the EMP, including but not limited to that Tenant shall use low or no-volatile organic compound (VOC) paints, solvents, and adhesives.]

1.5 Alterations

[Supplementing Section [●] of the Lease,] Tenant shall not carry out any alterations to the Premises that may adversely affect the Environmental Performance, energy efficiency, or sustainability characteristics of the Premises existing as of the commencement of the Lease without the prior written consent of Landlord or Manager. [All alterations shall be performed in accordance with the EMP.]

1.6 Assignments

[Supplementing Section [●] of the Lease,] any assignment of this Lease or sublease of all or any portion of the Premises, whether or not Landlord's consent is required, shall be conditioned on the assignee or subtenant agreeing to occupy the Premises in accordance with the requirements of this Clause.

1.7 Rules and Regulations

[Supplementing the Rules and Regulations of the Lease,] Tenant shall:

1.7.1 Ensure that the electricity consumed at the Premises is purchased from a supplier of renewable energy sources, if available. 

1.7.2 Use reasonable efforts to minimize the consumption of energy [and/or heat] at the Premises to help meet the Greenhouse Gas emissions targets set by Landlord and Manager in respect of the Building and/or the Property.

1.7.3 Not store or use any patio heater or any other exterior high energy heating equipment on any external patio terrace or other external areas forming part of the Premises.

1.7.4 Comply with all reasonable requirements and recommendations from Landlord and/or Manager related to the energy efficient use of the Premises and associated equipment and fixtures [at no out of pocket cost to Tenant].

1.7.5 Not carry out any works to the Premises which could affect the heat insulation or the rate of transfer of heat through the Premises structure, windows, and doors ('U Value'). 

1.7.6 Not damage, tamper with, or make any alterations, modifications, additions to the heat interface unit or heat infrastructure within the Premises or any meter installed in the Premises. Tenant agrees to reimburse Landlord as additional rent for the reasonable cost of repairing, reinstating, or replacing any such heat interface unit, heat infrastructure, or meter so damaged, tampered with, altered, or modified. Such additional rent shall be due and payable no later than [●] days after written demand to Tenant.

1.7.7 Upon written notice from Landlord or Manager, [use reasonable efforts to] observe, follow, and perform all such further regulations as Landlord or Manager may from time to time in its reasonable discretion, implement for the energy efficient use of the Premises, the Building, and the Property and the comfort, safety and convenience of other tenants, guests, and invitees to the Building and the Property.

1.8 Duty to Cooperate

Tenant agrees that Landlord and Manager may take such reasonable steps as are required to promote and improve the Environmental Performance of the Premises, Building, and the Property; and identify and pursue appropriate strategies to improve the Environmental Performance and energy efficiency of the Premises[, the Building, and the Property]. Tenant shall cooperate with such initiatives [at no out of pocket cost to Tenant].

1.9 Environmental Management Plan

Landlord may adopt, revise from time to time, and implement an appropriate EMP. Tenant agrees that Landlord and/or Manager may use the Data for the purposes of creating the EMP and ensuring that the Building (including the Premises) and the Property are operated in a sustainable way that improves their Environmental Performance, energy efficiency, and sustainability characteristics. Tenant shall comply with any requirements that Landlord and/or Manager may adopt from time to time relating to the Environmental Performance, energy efficiency, and sustainability characteristics of the Premises, the Building, and/or the Property. 

1.10 Data Sharing and Metering 

1.10.1 Landlord and Manager shall have the right (at Landlord’s cost) to install, inspect, maintain, and receive Data from meters relating to energy and heat consumption used in the Premises. Tenant shall give Landlord the necessary access for such metering to be inspected, repaired, maintained, and replaced, subject to Landlord or Manager complying with the access requirements of the Lease. Tenant acknowledges that applicable law(s) ('Energy Reporting Laws') may require Landlord to report certain energy use data for the Premises and the Building ('Energy Use Data'). If Tenant contracts directly with a utility for energy, Tenant shall retain all information reasonably necessary to document Tenant's energy use at the Premises (for example, copies of Tenant's utility bills and invoices) for a period of 12 months from the date received ('Tenant's Energy Information'). Upon request, Tenant shall deliver correct and complete copies of Tenant's Energy Information to Landlord or Manager. Tenant further authorizes Landlord or Manager to receive Energy Use Data directly from applicable utilities and to disclose aggregated Energy Use Data, including Tenant's Energy Information as may be required by Energy Reporting Laws. Tenant shall reasonably comply with any applicable utility requirements to disclose Energy Use Data to Landlord or Manager, including but not limited to providing any authorization or consent that may be required for the utility to disclose such data.

1.10.2 If Landlord is the supplier of energy and/or heat to the Premises, Tenant agrees that Landlord and/or Manager may receive, collect, and monitor Data concerning or resulting from the consumption of [energy and/or heat] at the Premises.

1.10.3 To the extent disclosure is permitted by Energy Reporting Laws and further provided that no sensitive personal data shall not be publicly disclosed, Landlord and Manager may collect Data (including Tenant's Energy Information) and share the same with any other third party that Landlord and/or Manager determine, in their sole discretion, to have a need to receive and use the Data. Additionally, Landlord and Manager may disclose the Data to third parties in order to promote the sustainability credentials of the Building and/or the Property and to encourage and promote sustainability to third parties within the housebuilding and construction sector.

1.10.4 Landlord and/or Manager shall only share or disclose the Data to comply with Energy Reporting Laws and for the purposes of procuring, promoting, or encouraging Environmental Performance or improving the Environmental Performance, the energy efficiency, and the sustainability characteristics of the Building (including the Premises) and the Property. This Clause constitutes Tenant's written permission to all such disclosures for the purpose of the Energy Reporting Laws.

1.11 Tenant’s general obligation on energy efficiency and information

Tenant shall not do anything that adversely affects the Environmental Performance, energy efficiency, or sustainability characteristics of the Premises, the Building, or the Property. Tenant shall provide to Landlord and/or Manager (and all persons authorized by Landlord and/or Manager) all information, assistance, and access to the Premises and other facilities, in each case as reasonably requested by Landlord or Manager and for access to the Premises, subject to Landlord or Manager complying with the access requirements of the Lease. Tenant shall cooperate with Landlord in relation to any initiatives in connection with the Environmental Performance, energy efficiency, or sustainability characteristics of the Building or the Property. 

Tenant shall use reasonable efforts to minimize energy consumption and waste and to recycle waste generated on the Premises.

1.12 Costs

Tenant expressly waives and releases any and all claims for reduction of the rent payable by Tenant under this Lease on account of any efficiency gains or reductions in building operating costs that result from the implementation of Environmental Performance measures.

Definitions

The following definitions shall apply:

Building means the building in which the Premises is located.

Data means all and any data (including Tenant's Energy Information as defined herein) involving the Environmental Performance of the Premises, the Building, and/or the Property (as the context requires).

EMP means an environmental management plan for the Building (including the Premises) and the Property.

Environmental Performance means individually or collectively the following in relation to the Premises, the Building, and the Property:

(a) energy consumption (including heat consumption, if not separately metered);

(b) heat consumption (if separately metered from energy consumption); 

(c) water consumption and discharge;

(d) waste generation and management; 

(e) generation and/or emission of Greenhouse Gases; and/or

(f) other adverse environmental impacts.

Manager means [company name], the management company duly authorized to act as the agent on behalf of Landlord in all matters pertaining to the rental of the Premises, except as otherwise provided.

Parties means Tenant and Landlord.

Premises means the rental premises at [address], which are the subject of this Lease.

Property means the Property at [address], at which the Building and the Premises are located.

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