Energize Denver

Unlocking Opportunity in Denver

Public Input Session

April 25, 2016

How are we doing?

• #9 on ENERGY STAR ranking of cities

• #10 on ACEEE ranking of cities:

– #1 on local government action

– #16 on buildings policy, our lowest rank

– #7 on utilities programs due to Xcel

Policy

Cities Implementing

Best Practices

Policy Cities with Policy in Place

Benchmarking and Transparency

(ENERGY STAR Reporting)

Atlanta, Austin, Berkley, Boston,

Boulder, Cambridge, Chicago,

Kansas City, Minneapolis,

Montgomery County (MD), NYC,

Philadelphia, Portland, Seattle,

San Francisco, Washington DCRetuning/Retrocommissioning

(Rcx) Requirement

Boston, Boulder, NYC, and San

Francisco

Energy Audit Requirement Atlanta, Austin, Berkeley, Boston,

Boulder, NYC, and San Francisco

Lighting Upgrades New York City

Energy Efficiency

Unlocks Savings

- Lighting upgrades

- Tune-ups (RcX)

- Efficient heating/AC

- Upgraded controls

Source: “United States Building Energy Efficiency Retrofits: Market Sizing and Financing Models.” Rockefeller

Foundation and Deutsche Bank Group. March 2012. Numbers scaled to City and County of Denver.

Local Climate Impacts

Denver Climate Goals and

Emissions Sources

Commercial

and Multi-

family

Buildings

57%

Single Family

Residential

Buildings

14%

Transportation

27%

Street Lights

1%

Waste

1%

2012 Denver Emissions by Sector

(thousand mt-CO2e)

Climate Goals: 1990 levels of emissions by 2020

80% reduction in emissions by 2050

Total Energy Consumption by

Sector and Fuel 2005-2014*

(mmBTU)

*As Reported by Xcel

Energy Annual

Consumption Report for

Denver

Who Benefits?

Building Owners

= A More Valuable Asset(NPV of $40,000 per year is $424,000)

Studies by CoStar verify this.

Invest $100,000 in improved energy efficiency

Lower operating costs: $40,000 in annual energy savings

Increase Net Operating Income: $40,000 increase in income

Who Benefits?

Businesses

ENERGY STAR = 35% more efficient

$.50/sf savings

Attract business to Denver

Source: USEPA and Xcel Energy

• Energy efficient commercial buildings makes Denver more attractive to global firms

• Sustainability helped win Panasonic, “It made it a slam dunk.”

• Millennials want sustainability. Attracting millennials could attract business.

• Energy efficiency can help us beat our top competitor cities such as Salt Lake City and Dallas

Who Benefits?

A Globally Competitive City

Energize Denver Task Force GoalReduce energy consumption of commercial and multifamily buildings by

10% by the end of 2020 and double that in the following decade.

11

2012

Energy Usage in

Commercial and

Multifamily

Buildings

38.3 million

MMBTU

x 10% =3.8 million

MMBTU

Taskforce

Goal is to Reduce

Energy

Consumption this

Much by 2020

• Double the 2020 goal by 2030 means another 3.8 million MMBTU reduction in

energy consumption by commercial and multi-family buildings by 2030.

ENERGIZE DENVER TASK FORCE

WORK TO DATE

Benchmarking Program, launch, trainings,

case studies, Lease for Efficiency Challenge

July 2014-present

Announcement of process to develop Energize

Denver program to meet efficiency goals.December 2015

Energize Denver Task Force Meetings 1-5

April 8 – May 18th 2016

Public Input Session: April 25th

Task Force Meeting 6: April 29th

Task Force Meeting 7: May 18th

May-June 2016Development of an ordinance based

on Task Force recommendations.

Ordinance introduced into city council

committee

Ordinance passes out of committee

June 2016

July 2016

Ordinance passed by City Council August 2016

Implementation begins September 2016

Energize Denver Timeline

January 21 – April 8 2016

Public Input Session and Energize Denver Task

Force Meetings 6-7

Energy Efficiency Measures

and Payback

20 year payback

0.2 year payback

• Heating, Ventilation, Cooling (HVAC) System Upgrades – New Boiler

– New Chiller/AC

– New Air Handling Unit

– High-Efficiency Motors

– Optimized Motor Sizing

– Heat Pumps

• Controls upgrades – Pneumatic to electronic

– Upgrades to electronic controls

• Matching Supply to Demand

– Variable Frequency Drives

– Variable-Air-Volume Systems, Demand Control Ventilation

– Scheduling

• Taking advantage of natural conditions– Air economizer

– Heat recovery

• Lighting Upgrades and Controls

• Tuning Controls (Re-commissioning)

15 year payback

3 year paybackTaskforce

Municipal Buildings

• Executive Order 123 requires all

municipal buildings to

– Certify their Energy Star (score of 75 or

higher) annually, if they qualify

– Incorporate LEED EB O+M into all

operations

– Achieve 20% energy savings by 2020

(across city building portfolio)

Policies 1 and 2

Benchmarking and Transparency

AnnuallyMunicipal, Commercial and Multi-family Buildings

>50,000 sq ft 2017, >25,000 sq ft 2018

ENERGY STAR score

(or EUI if can’t get ENERGY

STAR score)

Policy 1: Annual

Benchmarking

Policy 2:

Transparency

Transparency Exemptions

One year delay in

transparency

Confidential business

practices

16 other cities have these policies. They have seen 2-3% annual energy

savings, free tool, 4-5 hours to set up an account, 1-2 hours of staff time to

enter data annually.

High Performers are Celebrated and

Exempted from Further Requirements

High Performer Exemption from Further

Requirements: CertificationENERGY STAR or LEED certified in last 5-7 years.

ENERGY STAR certification costs $1-3k depending

on building size, LEED somewhat more

Celebrate High Performers!

Policies 3, 4 and 5

Flexible options for improving efficiency

Complete once every 5-7-years (14-20% of buildings each year;

starting 2019/2020; phase in by size, and/or random order.)

Policy 3: Performance Improve EUI by 12-15% from a 2016 baseline. (EUI weather adjusted)

Policy 4: RetrocommissioningBuilding “tune-up”. RCx study plus implementation.

Base building systems only in multi-family

Policy 5: Audit and UpgradeOwner completes an audit and implements measures from the audit with

<3 year payback OR implements other upgrades with similar savings

-or-

-or-

RcX has 16% avg. energy savings, ~$.75/sq ft, .02-2 yr payback, Xcel

pays 75% up to $25k. Many Xcel incentives available for other options

Summary Schedule

2016 2017 2018 2019 2020

Commercial buildings

>100,000 sq ft

Benchmarking

and

Transparency

2017?

3, 4, 5, 2018?

Commercial buildings

>50,000 sq ft

Benchmarking Transparency? 3, 4, 5

Multi-family >50,000

sq ft

Benchmarking Transparency? 3, 4, 5

Commercial 25,000-

50,000 sq ft

Education and

training

Benchmarking Transparency?

3, 4?, 5

Multi-family 25,000-

50,000 sq ft

Education and

training

Benchmarking Transparency? 3, 4?,

5

< 25,000 None None None None

Estimate of number

of covered buildings

Square footageNumber of

Buildings

% of

Buildings

% of Square

Footage

25,000-50,000 1260 21% 11%

50,000+ 1830 31% 76%

The buildings are spread all over Denver – only 5% of buildings and 10%

of the square footage is in the central business district.

Policy Draft Outline

Annually(Municipal,

Commercial

and Multi-

family

Buildings

>50,000 sq ft

2017,

>25,000 sq ft

2018)

Complete

once every 5-

7-years (14-

20% of buildings

each year;

starting

2019/2020;

phase in by size,

and/or random.)

-or-

-and-

Policy 3: Performance Improve EUI by 12-15% from a 2016 baseline. (EUI would be adjusted for weather)

Policy 4: Retrocommissioning(building “tune-up”, RCx study plus implementation)

• Base building systems only in multi-family

Policy 5: Audit and Upgrade Owner completes an audit of base building systems and implements measures from

the audit with <3 year payback OR

Owner completes other upgrades recommended by the audit to achieve similar savings

-or-

ENERGY STAR score

(or EUI if can’t get ENERGY STAR score)

Policy 1: Annual

BenchmarkingPolicy 2: Transparency

Transparency Exemptions

One year delay in transparency

Confidential business practices

High Performer Exemption: Certification ENERGY STAR or LEED EBOM certified in last 5-7 years.

-or-

Notes on Energy

Savings/Cost/

Payback/Incentives

2-3% annual energy

savings, free tool, 1-

2 hours of staff time

to enter data

annually.

12-15% savings,

cost varies, many

Xcel incentives

available

16% avg. energy

savings, ~$.75/sq ft,

.02-2 yr payback, Xcel

pays 75% up to $25k

Savings vary by

building, roughly

similar to policy 3,

3 year payback,

many Xcel

incentives available

ES certification

costs $1-3k, LEED

somewhat more

Step 0: Municipal Buildings Lead by ExampleCommitted to benchmarking annually and 20% energy savings by 2020 in all City buildings.