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SEE Action Existing Commercial Buildings
Working Group
Harnessing the Free Market to Improve
Energy Efficiency:
State Benchmarking and Disclosure Policies Jim Gallagher, New York Independent System Operator
Marshall Duer-Balkind, Washington, DC District Department of the Environment
Bill Prindle, ICF International
June 12, 2012
This information was developed as a product of the State and Local Energy Efficiency Action Network (SEE Action), facilitated by
the U.S. Department of Energy/U.S. Environmental Protection Agency. Content does not imply an endorsement by individuals or
organizations that are part of SEE Action working groups, or reflect the views, policies, or otherwise of the federal government.
www.seeaction.energy.gov
• SEE Action Overview
• Priority Policies and Programs
• How to Get Involved
• State Experience with Benchmarking &
Disclosure Policy: Washington, DC
• Related DOE Initiatives
• Discussion
Agenda
SEE Action Overview
3
www.seeaction.energy.gov
A state and local effort facilitated by the
federal government that helps states,
utilities, and other local stakeholders take
energy efficiency to scale and achieve all
cost-effective energy efficiency by 2020.
What is SEE Action?
For more information, visit:
www.seeaction.energy.gov
www.seeaction.energy.gov
• Executive Group of more
than 30 stakeholders
including state and local
governments, associations,
business leaders, non-
governmental organizations,
and others.
• Eight Working Groups help
SEE Action achieve its goal
of capturing all cost-effective
energy efficiency by 2020.
SEE Action Leadership
5
www.seeaction.energy.gov
• The majority of office space that will be used in next decade has been built.
• Commercial buildings use:
– ~50% of U.S. building energy use.
– ~20% of total U.S. energy use and GHG emissions.
• Public buildings are ~25% more energy-intensive than private buildings.
• Commercial building owners/managers spend more than $2 per sq. ft. on energy.
• ~5 to 15 jobs created per $1M invested in energy efficiency.
• Energy-efficient buildings have higher occupancy levels, lease rates, and sales prices.
Commercial Working Group:
Motivation
www.seeaction.energy.gov
• Drive Demand for Energy Efficiency
– Benchmarking, Rating, and Disclosure
– Retro-commissioning
– Ratepayer-funded Programs
– Public-Private Partnerships (Energy Challenges)
• Enable Efficiency Operations and Investment
– Strategic Energy Management
– High-Performance Leasing
– Financing Innovation
Commercial Energy Efficiency Policies and
Programs
• Build the Workforce
– Education & Training
– Materials
– Certification
• Move the Market
– High-Performance Procurement
– Emerging Technology Demonstration
Priority Policies and
Programs
8
www.seeaction.energy.gov
• What is benchmarking, rating, and disclosure?
– Benchmarking: Measuring how efficiently a building uses energy relative to (1) itself over time, (2) similar buildings, or (3) a modeled baseline
– Rating: Assigning a numeric rating according to a pre-determined scale (e.g., 1-100)
– Disclosure: Sharing energy performance data to facilitate market transformation
• Why benchmarking, rating, and disclosure?
– Increase energy awareness and investment
– Stimulate local economy
– Strengthen local real estate markets
– Build public trust and confidence while saving taxpayer dollars
Benchmarking, Rating, and Disclosure:
Overview
www.seeaction.energy.gov
California: Assembly Bill 1103
• Adopted: 2007 (updated 2009) / Effective: 2013
• Affected Property Types: Public and private buildings > 5,000 sq. ft.
• Key Requirements:
– Use of ENERGY STAR® Portfolio Manager
– Disclosure to California Energy Commission and potential buyers, tenants, and lenders upon sale, lease, or financing of a building
– Automated energy data transfer from utilities to affected building owners
– Phases in over 2 years based on building size
Benchmarking, Rating, and Disclosure:
Key Examples
www.seeaction.energy.gov
Massachusetts: Green Communities Act
• Adopted: 2008 / Effective: 2009
• Affected Property Types: All public buildings
• Key Requirements:
– Use of state-specific benchmarking tool
(MassEnergyInsight) or Portfolio Manager
– Ties benchmarking and energy plan development to
state funding and “green community” designation
Benchmarking, Rating, and Disclosure:
Key Examples
www.seeaction.energy.gov
Minnesota: 2001 Minnesota Session Laws, Ch. 212,
Sec. 3 (part of the Buildings, Benchmarks, and
Beyond [B3] Project)
• Adopted: 2001 / Effective: 2003
• Affected Property Types: Public buildings > 5,000 sq.
ft.
• Key Requirements:
– Use of state-specific B3 benchmarking tool
– Links with other state programs as a screening tool
– Helps focus energy efficiency investments in buildings with
poor energy performance as part of larger energy
management plan
Benchmarking, Rating, and Disclosure:
Key Examples
www.seeaction.energy.gov
New York City: Local Law 84
• Adopted: 2009 / Effective: 2011
• Affected Property Types: Public buildings > 10,000
sq. ft. and private buildings > 50,000
• Key Requirements:
– Use of ENERGY STAR® Portfolio Manager
– Annual submission to the City
– Phased in public disclosure on City website
– Automated water data transfer from city to affected
building owners
Benchmarking, Rating, and Disclosure:
Key Examples
www.seeaction.energy.gov
• What is retro-commissioning?
– Systematic process for identifying and improving
energy performance in existing buildings
• Why retro-commissioning?
– Cost-effective investment
– Reliable energy and cost savings
– Minimize risk
– Build public trust and confidence while saving
taxpayer dollars
Retro-commissioning:
Overview
14
www.seeaction.energy.gov
EPA’s ENERGY STAR
Guidelines for Energy
Management
• What is strategic energy management?
– Holistic approach to energy management that sets long-term goals and systematically monitors progress at building and organizational level
• Why strategic energy management?
– Increase energy savings and savings persistence
– Capture greater share of energy savings potential
Strategic Energy Management:
Overview
15
www.seeaction.energy.gov
• What is high performance leasing?
– Strategies to overcome barriers between owners
and tenants that inhibit energy efficiency
improvements in existing commercial buildings
• Why high performance leasing?
– Address “split incentive” barrier between tenants and
property owners
– Transform leasing market towards more sustainable
practices
High Performance Leasing:
Overview
16
How to Get Involved
17
www.seeaction.energy.gov
• Fact sheets: benchmarking, rating, and disclosure;
retro-commissioning; high-performance leasing;
strategic energy management programs
• Model policy design guides: benchmarking, rating,
and disclosure; retro-commissioning (under
development)
• Expert / peer support: guidance on adopting and
enhancing policy and program solutions
Commercial Working Group:
Resources
18
Have other ideas?
Please let us know.
www.seeaction.energy.gov
• Download and share SEE Action resources.
– Visit http://www1.eere.energy.gov/seeaction/existing_commercial.html .
• Tell us your story.
– E-mail cody.taylor@ee.doe.gov and let us know what you’re doing to
promote energy efficiency in existing commercial buildings.
• Share your data.
– E-mail cody.taylor@ee.doe.gov to participate in the SEED platform or
asset rating pilots.
• Request assistance.
– E-mail cody.taylor@ee.doe.gov and let us know which policy/program
you are interested in learning more about.
How State Governments Can Get Involved
19
State Experience With
Benchmarking and
Disclosure Policy:
Washington, DC
20
www.seeaction.energy.gov
A Familiar Concept…
21
www.seeaction.energy.gov
…Applied to a new area
22
www.seeaction.energy.gov
Buildings (75%)
Transportation (24%)
Waste Management (1%)
Buildings are
largest source of
DC’s Greenhouse
Gas Emissions:
Utilities are the
largest single
expense for
building owners:
32% - Utilities 22% - Repairs/Maintenance
21% - Admin
5% - Security
1% - Grounds
Source: BOMA
Source: DC 2006 GHG
Inventory
Why Benchmark?
www.seeaction.energy.gov
Benchmarking Drives Investment
Survey of hundreds of facility managers. Audin, Lindsay. “Finding Your Best Energy Opportunity.” Building Operating Management. December, 2011.
www.seeaction.energy.gov
25
Energy Efficiency & Property Value
www.seeaction.energy.gov
District of Columbia Requirements
Clean and Affordable Energy Act of 2008:
• Public Building ENERGY STAR benchmarking
(>10,000 sq. ft.) and public reporting of scores,
beginning 2010.
• Private Building ENERGY STAR benchmarking
(>50,000 sq. ft.), phased in by building size, with
public reporting of scores beginning with second year
of data.
• First law of its kind in the country
• Implementing regulations still being finalized; expect
data later in 2012
www.seeaction.energy.gov
Progress in Other Cities
• NYC, Seattle, San Francisco, & Austin all have similar
benchmarking programs
• NYC, Seattle, & San Francisco collected first data in
2011
• NYC law covers ~16,000 buildings > 50,000 sq. ft.
• Seattle law covers ~8,000 buildings >10,000 sq. ft.
• DC law covers ~1,800 buildings > 50,000 sq. ft.
• 60% of all NYC benchmarking done by consultants
• Access to aggregate building energy data key to success
• US DoE has designed common data platform for all cities
www.seeaction.energy.gov
1. Benchmarking Tool
2. Building Classes
3. Size Threshold & Phase-In
4. Utility Data Access
5. Public vs. Transactional Disclosure
Key Decision Points
28
www.seeaction.energy.gov
• Operational Rating
• Strong brand awareness (70%+)
• Track record (ESPM created 1999)
• Economies of scale; already widely
used among building owners
• Free, online, relatively easy to use
(and about to get easier)
• 1-100 score for many building types
• Delivers energy performance metrics
based on utility and space use
information
• Supported by the EPA:
– Trainings, materials, ABS
– Customized reporting forms for
jurisdictions with mandates
Why ENERGY STAR Portfolio Manager?
29
Over a ¼ million buildings
benchmarked with ESPM
www.seeaction.energy.gov
• Start with public buildings — lead by example
• Large commercial buildings
– Higher adoption rate — especially so in DC
• Multifamily buildings
– Makes most sense in places with large stocks of
multifamily buildings
– Will make increased sense when/if EPA unveils
rating for multifamily in 2013
– DC didn’t initially intend to include multifamily, but
law does include them
Building Classes
30
www.seeaction.energy.gov
Thresholds and Phase-In
Building
Size
(g.s.f.)
1st Utility
Year
Data
Original 1st
Reporting
Deadline
Projected 1st
Reporting
Deadline
% of
Covered
Buildings
% of Covered
Building
Area
200,000+ 2010 July 1, 2011* Fall 2012* 36% 66%
150,000+ 2011 April 1, 2012* Fall 2012* 47% 76%
100,000+ 2012 April 1, 2013 April 1, 2013 62% 86%
50,000+ 2013 April 1, 2014 April 1, 2014 100% 100%
* Deadlines for 2010 and 2011 data are in flux based on the ongoing
rulemaking process
Deadlines will be annually on April 1 following initial reporting
Economies of scale > 50,000 square feet:
9% of buildings, 73% of building area
Relatively Sophisticated Class of Owners
www.seeaction.energy.gov
Solving the data access challenge?
• Owners can’t easily access all tenant data
• Utilities can provide solution: Aggregate Whole-Building
Data
• Critical to success in other cities: NYC, Seattle, Chicago
• Limited privacy concerns in large buildings
• BOMA, RER, IMT, USGBC form DATA Alliance to work with
utilities and regulators
• National Association of Regulatory Utility Commissioners
(NARUC) resolution passed in summer 2011 calling on state
commissions to provide better data access to commercial
owners www.energydataalliance.org
www.seeaction.energy.gov
• In DC: Still no access to aggregate data
• States have power to compel utility companies to
provide aggregate data
• Aggregate data access should be required by
legislation well before first benchmarking reporting
deadline (as in SEE Action model policy)
• Not known in 2008, but DDOE is now working with
DC Council, PSC, and utility companies to enable
aggregate data services to DC
• Interim: Partial building reporting
Data Access: The State Advantage
33
www.seeaction.energy.gov
Why Public Disclosure
Harness the
power of the
free market to
drive
efficiency!
Transactional
disclosure
provides less
leverage and
harder to
enforce; insets
state in private
transactions
www.seeaction.energy.gov
What will be published
• Benchmark results will be made public in 2nd reporting
yr
• Results will be reported on the DDOE website
(www.ddoe.dc.gov)
• Whole vs. Partial building data will be distinguished
• Data stored in secure US DoE database
Address Year Built
Energy Performance Rating (1-
100)
Energy Intensity
Electricity Use Natural Gas Use
Water Use CO2 Emissions
Space Type Gross Building Area
www.seeaction.energy.gov
• Lack of dedicated funding source for implementation
• Shift to include residential sector
• More complex than initially anticipated
– Multiple buildings on a lot
– Retail tenants
– High energy intensity tenants
– IT needs: DoE’s SEED Platform offers help
• Data access challenges
• Trainings and Outreach
Stumbling blocks in implementation in DC
36
www.seeaction.energy.gov
• Build support among larger, progressive real estate
stakeholders to help develop policy
• At state level, BOMA represents overwhelmingly
small to medium assets, so ambassadors needed
• Thresholds Critical
• State can provide the enabling environment for cities
to go further — the Washington State example:
• WA State law: benchmarking at time of transaction only,
only commercial, no disclosure to government
• Seattle, WA: yearly benchmarking, inclusion of multifamily,
disclosure to city
Thoughts on adoption at state level
37
www.seeaction.energy.gov
• Mandatory benchmarking and disclosure is good for
building owners, but also for state policy and planning
• Opens up access to granular energy consumption
data that no policy makers have has access to before
• Increase fiscal responsibility and impact of incentive
programs by targeting areas of greater need
• SEE Action Policy Design Guide and Sample Policy
Language is a good starting place
Policy Opportunities
38
Related DOE Initiatives
39
www.seeaction.energy.gov
• Includes database and data analysis tools to evaluate commercial and residential energy efficiency products and services using a common taxonomy
• Initial Tools:
– Energy Performance Forecasting Tool
– Financial Risk Management Tool
• Key Features:
– Contains empirical data that reflects actual building operations
– Establishes first national data taxonomy to facilitate building comparisons
– Includes rigorous QA/QC
Buildings Performance Database (BPD)
40
For more information, visit:
http://www.buildings.energy.gov/buildingsperformance/
www.seeaction.energy.gov
– Common taxonomy: a standardized “data model” to organize energy use and building characteristic data
– Data management: processes and tools to support the on-boarding and validation of data from multiple
sources
– Applications: web-enabled tools to forecast energy savings and related cash flows.
– 3rd party tool support: API allows 3rd parties to create new applications to use the data in the database
Buildings Performance Database Structure
1
2
3
4
Energy Performance Forecasting Tool
External Data Sources
Financial Risk Management Tool
Third Party Tools
Data Management Cleansing, Validation, and Ingestion Processes
2
3
4
3
API
1
www.seeaction.energy.gov
Standard Energy Efficiency Data (SEED)
Platform
42
The Standard Energy Efficiency Data Platform (SEED)
is a software tool that allows state and local
governments to quickly and easily create their own
database using a standard building energy
performance taxonomy, and easily share selected data
with other parties as needed.
www.seeaction.energy.gov
• Multiple jurisdictions publishing energy performance data in the same structure can help energy efficiency enter market decisions in a meaningful way
• This can affect:
– Investment in energy efficiency
– Incentives for building owners and managers
– Buildings across the entire market (not just the top performers)
Open Data Standards Can Spur
Innovation and Efficiency
www.seeaction.energy.gov
Benchmarking & Disclosure Process with
Portfolio Manager and SEED
State creates a
reporting
“template” in
Portfolio Manager
State sends a link
for this template to
building owners,
along with building
ID numbers
State loads
municipal records
identifying all
known buildings
into SEED, which
assigns each
building a unique
ID number
State logs into
SEED and clicks
button to import
Portfolio Manager
data into SEED
State creates
report in SEED to
check buildings’
compliance
1 2 3 4 5 6 7 8 9
1
2 3
Building owner clicks the
link to log into Portfolio
Manager and accesses
reporting template
4
Building owner enters
data into Portfolio
Manager, including
unique building ID
number
5
Reporting template
auto-populates with
the data that
building owner has
entered
6
Building owner clicks
“submit” on the
state’s report to send
data to state
7
8
9
State Actions
Building Owner
Actions
State publishes
selected data in
SEED via API
10
10
www.seeaction.energy.gov
SEED Progress to Date and the Way Ahead
45
Key Accomplishments
Extended DOE Buildings Performance Database taxonomy for SEED needs
Integrated connection to Portfolio Manager
Actively engaged with six cities/states (Seattle, San Francisco, Austin, NYC, DC, CA)
in design of SEED
Launched a beta of SEED (February 2012) with partner cities/states
DOE Work on SEED in Summer/Fall 2012
Partner cities/states load their data into SEED from Portfolio Manager and other
systems
Work with partners to shape data collection and data management for energy audit
data
Create API to allow public sharing of structured data
Work with data analysts to encourage creation of tools
Communicate value of a standard data taxonomy and SEED to larger audience
(utilities, states, cities, real estate)
www.seeaction.energy.gov
• Complements Portfolio Manager providing a common
platform for:
– Evaluating the inherent energy performance of
buildings’ physical characteristics while controlling
for building operation and tenant behavior
– Identifying energy efficiency improvements
• Looking for pilot participants to test tool for select
building types (office, school unrefrigerated
warehouse, public assembly)
Commercial Building Asset Rating Program
46
For more information, visit: http://www.commercialbuildings.energy.gov/assetrating.html
Questions?
Jim Gallagher
JGallagher@nyiso.com
47
Marshall Duer-Balkind
marshall.duer-balkind@dc.gov
Cody Taylor
Cody.Taylor@ee.doe.gov
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