What is your Energy Level?Residential and Commercial Energy

Ratings

Garbett Homes of Salt Lake City, Utah Photograph by: Orlo Stitt

Sandra K. Adomatis, SRA, LEED GA

Adomatis@hotmail.com Adomatis Appraisal Service

Punta Gorda, FloridaConsultant with Advanced Energy, Raleigh North Carolina

http://www.advancedenergy.org/

Objectives

• Review the reasons the market’s view of

energy is changing

• Describe the physical traits of energy

efficiency

• Identify Energy Modeling Programs

• List documents supporting energy rating

Energy Efficiency

Energy efficiency is “using less energy to provide the same service”.

Turning off a light is energy conservation, not energy efficiency. http://eetd.lbl.gov/ee/ee-1.html

Remember …..

“Let’s Get Physical!” Olivia Newton John

Let me hear your building talk!

NAHB consumer survey found 51.8% of residential consumers found the term energy efficiency as positive.

How important is energy efficiency to the residential user?

NAHB Research Center400 Prince George’s BlvdUpper Marlboro, MD 20774

800.638.8556www.nahbrc.org

Why is energy efficiency such a big deal?

• Government Mandates• TAJ –First Draft Exposure

Valuation of Green Bldgs

• Oil Crisis

• Market Transformation

The term market transformation is the strategic process of intervening in a market to create lasting change in market behavior by removing identified barriers or exploiting opportunities to accelerate the adoption of all cost-effective energy efficiency as a matter of standard practice.

http://www.aceee.org/portal/market-transformation

http://www.imt.org/resources/detail/save-act-fact-sheet

Benefits of energy efficiency• Reduce expenses

• CoStar Group – July 28, 2010, reports energy-efficient retrofits of commercial buildings has the potential to return twice as much in savings to owners and tenants as they require in investments.

Commercial

• A much easier sell – because– The investor cares about the bottom line......

• Lender accepts income approach as the norm…. – Lower utilities = higher net income

Case Study on 250,000-square-foot office building

Energy Star Portfolio Manager Estimated Cost

$2,000

Full-blown energy assessment estimated cost

$5,000 to $10,000

5-Year costs for ES Portfolio Model and 1 energy assessment*ES=Energy Star

$10,000 to $20,000

Energy Assessment might identify HVAC and lighting upgrades at estimated cost

$450,000

Utility supports a third of upgrade costs for net cost of approximately

$300,000

Energy Assessment might identify behavior changes to save 3% of energy cost

$30,000 savings

Source: http://blog.groomenergy.com/ Author Jon Guerster April 15, 2013

Case Study on 250,000-square-foot office building

Earnings before upgrades $4.7 Million

Earnings after upgrades $4.9 Million

After improvements building is worth approximately

$2.4 Million more than before upgrades and assessments

If owner does not make upgrades but does assessment, it will still likely save $30,000

Income Taxes reduced using Federal EPAct accelerated depreciation

Is it worth knowing your energy level?Source: http://blog.groomenergy.com/ Author Jon Guerster April 15, 2013

Residential

• Does the market care?

– In California, new homes may be required to

meet net-zero energy level by 2020

• Will the underwriter accept energy

efficiency as an element of comparison?

– Depends

Residential Case in PointResidential Property Iowa

Living area 6,800 square feet

Age of structure 7.5 years

Heating/cooling source Geothermal

Cost of geothermal after incentives

$5,609/when built

Range of monthly utility bill over 7. 5 years

$52-to-$106

Maintenance issues with geothermal

None

Residential Rating SystemsMeasuring Sticks

HERS Index

Performed by Home Energy Raters (HERS Raters) trained and qualified through RESNET. http://www.resnet.us/certified-auditor-rater

Energy Audit versus Energy Rating

Energy Rating provides a comparative analysis on how energy efficient a home is when compared to other similar homes.

• Provides a HERS Index score and uses diagnostic testing

Energy audit (aka energy assessment) pinpoints where and how a home is losing energy, which systems are working efficiently, and measure what cost-effective measures can be taken to rectify the situation.

• Does not provide a HERS Index score and does NOT use diagnostic testing

Energy Audit versus Energy Rating

Austin City Council has a new mandate for all homes older than 10 years to have an energy audit before selling a home.

http://www.energystar.gov/index.cfm?fuseaction=pt_awards.showAwardDetails&esa_id=3649

• MPG rating for homes – Standardized method for

assessing the energy performance of a home’s major energy systems and envelope

• Low cost service – Takes about 15 minutes if in

concert with other assessment; less than 1 hour if stand-alone

– Not intended to replace a full energy audit or diagnostics

HES Score

http://www2.eere.energy.gov/buildings/residential/hes_research.html#webinars

Home Energy Score Partners– Local and state governments, utilities, non-profits, and other home

performance industry organizations

Qualified Assessors– Must be certified as BPI building analysts or HERS Raters

– Must also pass a 2-part DOE exam (free, on-line, proctored by a Home Energy Score Partner)

Homeowner Report– Asset Score (given standard operating assumptions)

– Home Facts: List of data collected by a Qualified Assessor

– Recommendations for improvements

• DOE is continuing to recruit Partners to implement program

– Score at least 200 homes per year

– Fulfill DOE’s quality assurance requirements (re-score 5% of homes)

• 30 organizations have signed on to be Home Energy Score Partners

Energy Performance Score(EPS) - A MPH Rating for homes

http://energy-performance-score.com/

Provides a standardized assessment of a home’s energy use and associated carbon emissions. The EPS allows for one homes energy use comparison to another without the influence of varying occupant behavior.

HERS Insulation Installation Rating

• Grade 1 – The best – installed per manufacturers instructions.

• Grade II- The second best – Has some gaps

• Grade III – The lowest grade – Has substandard gaps and voids.

http://www.greenbuildingadvisor.com/blogs/dept/building-science/grading-installation-quality-insulation

Envelope Sealing RatingAir Changes Per Hour (ACH): The movement of a volume of air in a given period of time; if a house has one air change per hour, it means that the air in the house will be replaced in a one-hour period.http://www.seattle.gov/dpd/GreenBuilding/Resources/Greenbuildingglossary/default.asp

http://hespro.lbl.gov/pro/

Green Buttonhttp://www.greenbuttondata.org/

Residential Energy Documents

• HERS Index Report – full report• Green Score and worksheet• Complete Energy Audit• Res. Green & Energy Efficient

Addendum• HES Score

Actual Utility Bills

Are they the most reliable document for developing energy costs of the residential or commercial use building? Why or why not?

Physical signs of energy efficiency

• Landscaping• Site orientation• Energy efficient equipment• Window types /shades/ skylights /solar tubes• Overhang• Renewal energy equipment• Timers/ programmable equipment /dashboards• Maintenance history

Commercial Energy Ratings

Measuring Sticks

https://buildingdata.energy.gov/about

DOE Buildings DatabaseThe Database includes information on the energy use, environmental performance, design process, finances, and other aspects of each project. Members of the design and construction teams are listed, as are sources for additional information. In total, up to twelve screens of detailed information are provided for each project profile. Projects range in size from small single-family homes or tenant fit-outs within buildings to large commercial and institutional buildings and even entire campuses.

Commercial Energy Benchmark

• A first step

• Social driver to change occupant habits

• Changing occupant habits• reduces usage• increases net income• increases value

ENERGY STAR Portfolio Manager provides Statement of Energy

Performance, including–Benchmark Score (statistical ranking)

• 70 means your building ranks in the 70th percentile of similar buildings in terms of utility usage

–Based on actual utility bills and current operations–100 point scale based on regression developed using

CBECs data

Energy asset rating provides a standard report including

-Current score and potential score• Buildings with the same current score may

have different potential scores.-Uses EnergyPlus model to predict EUI given

standard set of operating assumptions-Scale still under development

• Adjusted for climate to allow comparison across U.S.

• Adjusted for building type

Asset Score•No requirement for utility bills•Not comparing to CBECS or other building database•Allows comparison of buildings given standard assumed operation

Asset Score•No requirement for utility bills•Not comparing to CBECS or other building database•Allows comparison of buildings given standard assumed operation

Energy asset rating

EUI

• EUI – Energy Use Intensity, is a unit of measurement that describes a building’s energy use. EUI represents energy consumed by a building relative to its size. (Total energy consumed in 1 yr in kBtu/total floor space of building)

Source: http://www.energystar.gov/index.cfm?fuseaction=buildingcontest.eui

Areas with Energy Benchmarking Programs City/State Year Implemented

Austin, TX 2011

Minneapolis, MN 2013

New York City, NY 2012

Philadelphia, PA 2012

San Francisco, CA 2011

Seattle, WA 2012

Washington DC 2013

California State Sept 1, 2013 Effective

Washington State 2009

http://www.phillybuildingbenchmarking.com/index.php/benchmarking/

The ordinance states that buildings over 50,000 square feet will be required to receive an EPA Energy Star Score, track and verify their energy consumption. The proposed compliance dates are:

Commercial and Municipal Buildings:6/2014 for those larger than 250,000 square feet6/2015 for those between 50,000 and 250,000 square feet

Residential Buildings:6/2015 for those larger than 250,000 square feet6/2016 for those between 50,000 and 250,000 square feet

After one year of compliance, the city would be able to publish individual building performance data, adding a public incentive for owners to improve efficiency. Exempt from the law are industrial facilities, storage units, hazardous use units, as well as certain newly constructed units and those that are facing financial distress.

Chicago Proposes Energy Benchmarking Law for BuildingsJuly 2013

http://www.cityofchicago.org/content/dam/city/progs/env/SustainableChicago2015.pdf

http://apps1.eere.energy.gov/buildings/tools_directory/doe_sponsored.cfm

http://www.gbig.org/collections/4022/activities?view=map

Green Building Information Gateway -GBIG

http://www.usgbc.org/DisplayPage.aspx?CMSPageID=2201

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Energy Asset Score

• Energy asset score reflects the as-built physical characteristics of a building and its overall energy efficiency, independent of occupancy and operational choices.

• The physical characteristics include

– Building envelope (window, wall, roof)

– HVAC system (heating, cooling, air distribution)

– Lighting system (luminaire and lighting control systems)

– Service hot water system

– Other major energy-using equipment (e.g. commercial refrigerator, commercial kitchen appliances, etc.)

Energy Asset Score

Building energy use is affected by many factors.

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Relevance of Asset Score

• Buildings #1 and #2 have similar ENERGY STAR scores, but widely divergent asset scores.• Used together, an energy asset score and an energy benchmark can inform the decisions of a

building owner, operator, buyer, or lessee. Asset Score links to PMS.

• Good energy assets• Poor operation• May be a candidate for low-cost

operational improvements.

• Poor energy assets• Good operation• Low asset score may highlight need to replace

outdated equipment or prepare for replacement costs in the near future.

Equivalent ENERGY STAR

Portfolio Manager

Score

O&M/ Occupant Behavior

Energy Assets

Building #1: High Asset Score Building #2: Low Asset Score

47 I Energy Asset Score eere.energy.gov

Energy Asset Scoring Tool

User clicks “Score Building” and receives Energy Asset Score Report• EnergyPlus engine used to estimated energy use

intensity (EUI) and generate an asset score based on the building envelope, mechanical and electrical systems, and other major energy-using equipment. – similar to Home Energy Score for Res.

• Provides building system evaluations for building envelope, service hot water, HVAC, and lighting systems.

• Identifies cost-effective improvements.

• Provides an additional "after upgrades” score that demonstrates the potential energy impact of the recommendations.

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• Required to generate score and report

• Inference engine generates default values for a few fields

• Users provide data for as many of the additional fields as they choose

Data Requirements

• Users can enter different amounts of data to receive results of varying degrees of specificity for their building.

Verified

Advanced

Simple

• Will likely require a qualified professional to verify and submit the data

• Intended to support public statements about building asset

• Not available during pilot

• Requirements still TBD

49 I Energy Asset Score eere.energy.gov

Levels of Use

Prel

imin

ary

Simple or Advanced Level Verified Level (still under development)

Step 1 Collect & input data using energy asset scoring tool

Will require greater amount of data as well as verification by a qualified professional

Step 2 Submit data online Submit for rating online

Step 3 System infers values that user leaves blank

Limited inferences allowed.

Step 4 Receive preliminary energy asset score report – new or existing bldg

Receive verified energy asset score report

For building owner or

operator’s information

For building owner or

operator’s information

For appraisal, real estate

transaction, or public display

For appraisal, real estate

transaction, or public display Ve

rifie

d

50 I Energy Asset Score eere.energy.gov

Recent Program & Scoring Tool Improvements

• Refined data requirements based on sensitivity analysis • Redesigned user interface based on 2012 Pilot feedback and user-centered

research– Added detailed on-screen user help throughout tool-– Live demo on line

• Created multi-block function for mixed-use buildings and buildings with complex geometries, envelope properties, and HVAC systems

• Added greater variety of use types – Refrigeration areas not handled yet– 2012 Pilot: office, school, retail, warehouse only– 2013 Pilot: 2012 Pilot use types + lodging, multifamily, library, courthouse, mixed use

(can also include senior center, city hall, post office, medical office) Expanded HVAC options-provides more accurate score of mixed use

• Developed application programming interface (API) for third-party tools• Added a link to Energy Star Portfolio Manager (ESPM)

– Allows user to download building info directly from ESPM

• Improved weather adjustment methodology– Separately adjust for heating and cooling

51 I Energy Asset Score eere.energy.gov

2013 Pilot

Objectives• Test new user interface including multi-block feature• Collect data on wide range of buildings to assess 100-point scale and its application to

different building types and climates• Gather feedback on the data collection process and Asset Score Report • Follow up with 2012 Pilot Participants on impressions of new Asset Score Report– All 2012 Pilot Participants will receive updated Asset Score reports for their buildings– 2012 Pilot Participants are welcome to add data and/or buildings as part of the 2013 Pilot

• Test API codes with third-party software developers

Timeline• Jul 1 – Sep 30: Pilot Participants collect data & score buildings using Scoring Tool– Throughout process, Pilot Participants are strongly encouraged to provide feedback to DOE via informal

discussions, webinars, and on-line questionnaire

• Oct 1 – Dec 31: DOE analyzes data • January 2014: DOE presents Pilot findings • TBD 2014: DOE releases new version of Scoring Tool

52 I Energy Asset Score eere.energy.gov

Anticipated Program & Tool Updates (post 2013 Pilot)

High Priority• Improve user interface, scoring methodology, Asset Score Report, etc. based on 2013 Pilot feedback • Allow users to pick energy efficiency measures and test how different scenarios affect “score with

improvements” – Link to NREL Building Component Library

• Add Phase III use types– Focus on parking garage, food service; potentially include food sale and data center

• Customize user interface based on climate and use type• Continue expanding list of HVAC systems and controls • Add renewable energy data fields and calculations• Continue to refine recommendations– Incorporate findings from Spring 2013 evaluation which compared the Scoring Tool’s recommendations with those of 2 professional

auditors following onsite audits of 4 different buildings

Secondary Improvements• Allow users to enter their utility rates to evaluate efficiency upgrade options• Add advanced lighting controls • Develop user interface for utility program administrators• Develop user interface for qualified assessors who provided “verified” score• Link to other tools/database (DSIRE, OpenEI, Google Geocode, Google Map, Portfolio Manager)

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Useful Links• Energy Asset Score website

http://www1.eere.energy.gov/buildings/commercial/assetscore.html

• Energy Asset Scoring Toolbuildingenergyscore.energy.gov/

• Asset Score Email Boxasset.score@ee.doe.gov

Consequences of high and low performing buildings

• High utility costs / Lower net income

• Longer marketing periods

• Lower rents

• Could penalties assessed through

additional taxes be next for inefficient

buildings?

www.dsireusa.org

AI Green Resourceshttp://www.appraisalinstitute.org/education/

green/default.aspx

Appraiser’s Guide to Identifying Green Building Features in a Home By Kathy Price-Robinson

http://www.appraiserresearch.org/research-results/green-guide.html

Advanced Energy – Knowledge Libraryhttp://www.advancedenergy.org/buildings/programs/energy_star/

http://www.appraisalinstitute.org/education/green/default.aspx

Sandra K. Adomatis, SRA, LEED GAAdomatis@hotmail.com