Show Me the Data: How transparency for building energy use is transforming our cities

Cliff Majersik Institute for Market Transformation (IMT) Cannon Design October 22, 2012

Background on IMT

The Institute for Market Transformation (IMT) is a Washington, DC-based nonprofit organization promoting energy efficiency, green building, and environmental protection in the United States and abroad. IMT’s work addresses market failures that inhibit investment in energy efficiency and sustainability in the building sector.

• Building Energy Performance Policy • Building Energy Codes – Compliance • Energy Efficiency Financing –

Commercial and Residential • Green Leasing

What Is Market Transformation?

Why Energy Efficiency Matters Market transformation is a strategic process of market intervention which aims to remove barriers, leverage opportunities and internalize the value of energy efficiency as a matter of standard practice.

Existing Buildings

Projection: 85% of buildings operating in 2030 have already been built

Style is more than a gloss on your concepts. It’s part and parcel of literary substance—defining your material, enabling comprehension of your points, and persuading the audience to adopt your way of thinking.

Building Energy Rating and Disclosure

A Familiar Concept

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

2002: Energy Performance of Buildings Directive

(EPBD) EU Member States are required to

establish mandatory energy certification schemes

for all homes and buildings

1997: Denmark requires energy certification for homes and buildings

2004: Norway, part of the European

Economic Area, formally agrees to implement the

EPBD and building certification requirements

2007: Brazil adopts voluntary building rating regulations that become mandatory in 2012

2010: Australia passes the Building Energy Efficiency Disclosure Act requiring energy performance disclosure for commercial buildings at point of sale or lease

Rating Laws: International Timeline

2010: EPBD Recast The EPBD is recast to strengthen the energy performance requirements for all EU Member States and to clarify and streamline provisions from the original Directive

2008: China adopts a

mandatory energy rating

program for government

buildings.

A Virtuous Cycle “When performance is measured, performance improves. When performance is measured and reported back, the rate of improvement accelerates.”

FLO-0103-2DC-5N

4.Ownersimprove efficiencyto stay competitive

1.Building ratings disclosed to market

2.Market compares building performance

3. Marketrewardsefficient

buildings

5.Efficiency of buildings continuously improves

Benchmarking on the Rise

nearly 270,000 commercial buildings benchmarked in 2011

ENERGY STAR Portfolio Manager

• Free, Online Tool • Track Record since 1999 • Management Tool

– Assess whole building energy and water consumption

– Track change in energy, water, carbon emissions, & cost over time

– Track green power purchases – Share/report data with

others – Create custom reports – Apply for ENERGY STAR

certification – Apples-to-apples comparison

with similar buildings

www.energystar.gov/benchmark

ENERGY STAR Portfolio Manager

• Metrics Calculator – Energy consumption (source,

site, weather normalized) – Water consumption – Greenhouse gas emissions

(indirect, direct, total, avoided)

– ENERGY STAR 1-to-100 score • For 15 building types • 75+ for Energy Star label

• Required data

– Square feet by space type – Space Use Attributes – Zip Code – 12 months of Utility Data

Industry Standard 27 billion sq. ft. of commercial & institutional office space Nearly 40% of commercial market

Through 2011, nearly 16,500 ENERGY STAR Certified buildings

• Saved nearly $2.3 billion in energy costs annually

• Reduced the equivalent of 12 Million Metric Tons of CO2 a year

Equivalent to the emissions from electric use of over 1.5 million homes

U.S. Policy Landscape

Policy Impact

Approximately 4 billion square feet More than 3x the floor area of every Walmart, Target, Home Depot,

Barnes & Noble and Costco store in America

Policies by Jurisdiction

New York City

• Requires annual

benchmarking and public disclosure, periodic audits and RCx, lighting retrofits and submetering in large commercial and multifamily buildings

• May 1, 2012: Second

deadline for private buildings reporting

• September 2012:

Individual building ratings published

New York City

• If all comparatively inefficient large buildings were brought up to the median EUI, NYC could reduce energy consumption in large buildings by roughly 18% and GHG emissions by 20%.

• Newer office buildings in NYC tend to use more energy per square foot than older ones.

The Numbers Are In

DC Benchmarking: Publication of Results

• Benchmark results will be made public in 2nd reporting year • Results will be reported on the DDOE website

(www.ddoe.dc.gov)

Address Year Built

Energy Performance Rating (1-100) Energy Intensity

Electricity Use Natural Gas Use

Water Use CO2 Emissions

Space Type Gross Building Area

• DC Energy Act requires projects over 50,000 sq. ft. that submit 1st building permit after January 1, 2012 to model their energy performance using the ENERGY STAR Target Finder Tool and report results to the District

• Results will be made public online alongside benchmarks

Target Finder for New DC Buildings

Energy models disclosed along with benchmarking results will create the “feedback loop” connecting design and performance that will drive energy efficiency higher

Benchmarking Guides Investment

Survey of hundreds of facility managers . Audin, Lindsay. “Finding Your Best Energy Opportunity.” Building Operating Management. December 2011.

Jobs: First Wave in Energy Services

“As a Silicon Valley venture capitalist … I tell our green startup companies to focus on San Francisco or New York City. That’s where the action is going to be.” - Elton Sherwin, venture capitalist, senior managing director, Ridgewood Capital

“Over the past year, we have begun working with over 75 million square feet of real estate in New York and over 400 new clients.” - Lindsay Napor McLean, COO, Ecological

“When an owner sees a benchmarking score that is lower than expected, they’re a little more receptive to improvements to bring the score up, which in turn lowers their utility costs.” - Kevin Dingle, president, Sustaining Structures

Management gurus who write airport books aren’t great writers, but their jargon has seeped into our culture anyway. Some of their buzz words have already become clichéd. They can make the user sound pretentious, as if he or she thinks the jargon term sounds “smarter” than the common equivalent. (It doesn’t.)

“leverage”

“synergy”

“impactful”

Benchmarking and audits/RCx compliance

Sustainability / green building consulting

Retrofits and renovations

Opportunities for A/E firms

How Can Architects Help Advance Benchmarking Policy?

New York City

• Get your local

AIA and/or USGBC chapter involved

• Coalition-building is key

• If you have clients who benchmark, see if they’ll vouch for benefits of benchmarking

“Architects? Are you listening? This is big. You need to be fully up to speed with benchmarking … and convinced that it spells win-win-win for everyone. …it’s easy to imagine the deep-energy-retrofit work this change may produce.”

-Mike Davis, FAIA, incoming president of the Boston Society of Architects Writing in IMT’s blog, The Current

Energy Star Buildings Command Market Premiums

Added Value of ENERGY STAR-Labeled

Commercial Buildings in the U.S. Market

Management gurus who write airport books aren’t great writers, but their jargon has seeped into our culture anyway. Some of their buzz words have already become clichéd. They can make the user sound pretentious, as if he or she thinks the jargon term sounds “smarter” than the common equivalent. (It doesn’t.)

“synergy”

Benchmarking compliance

Retrofit and renovation

Helping appraisers assess the value of efficiency

May 2012: IMT and the Appraisal Institute present both statistical data and case-study summaries of how buyers and renters place value on energy performance and green building.

Benchmarking and energy modeling

• Widespread benchmarking should lead to more realistic assumptions in energy models

• In the future, energy models will inform building design more

Benchmarking and Energy Codes • Benchmarking will provide

volumes of data about how buildings new and old perform. Codes, though increasingly stringent, are based on assumptions, not performance data.

• Benchmarking data will inform the process of

developing better codes for buildings that perform better in actual operations, not just in theory.