The Role of Taxonomy and Ontology in Semantic Layers - Heather Hedden.pdf
The Role of Energy in High-Performance Buildings
1. The Role of Energy in High-Performance Buildings
Create Jobs, Save Taxpayer Money, and Conserve Resources
Cliff Majersik
Executive Director, Institute for Market
Transformation (IMT)
HIGH-PERFORMANCE BUILDING CONGRESSIONAL CAUCUS
COALITION
--www.HPBCCC.org--
2. U.S. Building Industry
Represents more than 50% of the
nation’s wealth
New construction and renovation activity
amounts to over $800 billion
annually
Responsible for13% of the GDP
Employs over ten million people
(5% of total U.S. employment)
3. Today’s Realities
New construction outlook remains weak
Construction sector unemployment around 20%
Buildings responsible for 42% of U.S. energy
consumption; building energy use projected to grow
$422 billion annual energy costs
70% of U.S. electricity consumption
39% of U.S. CO2 emissions
To remain competitive and profitable we must reshape
the efficiency of our building sector
4. “When it comes to saving money and growing
our economy, energy efficiency isn't just low
hanging fruit; it's fruit laying on the ground.”
- Secretary of Energy, Steven Chu
ENERGY EFFICIENCY:
Promotes job creation Reduces dependence
and economic growth on fossil fuels
Reduces consumer Ensures a stable &
energy bills reliable electric
system
Strengthens property
values, revitalizes Lowers greenhouse
communities gas (GHG) emissions
5. Macroeconomic
Impacts Energy U.S. GDP Expansion as a Function of
Efficiency Improvements, 1970-2008
3.50
U.S. Gross Domestic Product
3.00 GDP Index (1970=1)
2.50 Productivity
growth as a
function of energy
2.00
efficiency improvements
1.50
Expansion of the economy, based growth
1.00 in labor, capital, and energy
1970 1980 1990 2000 2008
Source: Laiter, Skip. ACEEE adapting Ayres and Warr (2009) using BEA and EIA data.
8. Economic Impacts
Energy
Jobs GDP CO2
savings
Center for Retrofitting 40% of the U.S.
Create 625,000
American building stock could: $500 billion $64 billion
new jobs
Progress (2010)
Create
By 2020, capturing the
McKinsey & 500,000- $685 billion 720
economy’s full efficiency
Company (2009) 750,000 new megatons
potential will:
jobs
Total value of the green
Supported 2.4 $1.3 billion
construction market 2000– $173 billion
2008 million jobs
USGBC (2009)
Projected value of the Support over
green construction market 7.9 million $554 billion $6 billion
2009–2013 jobs
9. High
Performance
Buildings:
Benefits to
Lower utility bills, Marketing/PR
Owners, operating expenses value
Benefits beyond Increase worker
Tenants energy savings: productivity
Increase in building Reduced employee
value sick days
Higher rent Enhanced ability to
premiums attract and retain
employees
Increased
occupancy rates
12. Small Businesses and Job Creation
A Virtuous Cycle
When performance is measured,
performance improves. When performance
is measured and reported back, the rate of
improvement accelerates.
One result:
Exceptionally
cost-effective
peak load
reductions
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14. U.S. Policy Overview
Policy Impact Projections
Annual Policy Impact Projection on Building Annual Policy Impact Projection on Number
Area (in Square Feet) by Jurisdiction of Buildings by Jurisdiction
Approximately 4 billion square feet
More than 3x the floor area of every Walmart, Target, Home Depot, Barnes &
Noble and Costco store in America
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15. Policy Requirements by Jurisdiction
Why ENERGY STAR Benchmark?
Nearly 270,000 buildings ENERGY STAR benchmarked
• Economies of scale; already
widely used among building
owners for energy tracking
• Free, readily available online,
relatively easy to use
• Delivers energy performance
metrics based on utility data
• Supported by the US EPA
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16. Small Businesses and Job Creation
Jobs
First report documenting job growth
from energy benchmarking policies
Profiles of small businesses adding staff and
increasing client bases
KEY TAKEAWAY: Financing not the key barrier.
Primary issue is demand.
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17. Small Businesses and Job Creation
Jobs
“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
“The Greener Greater Buildings Plan has spurred the New York Market to interest and activity
around energy efficiency. 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
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18. Energy and Job Impacts of Benchmarking & Disclosure
Project advisory panel of leading real estate industry experts
Jobs analysis by IMT and the Political Economy Research Institute at
the University of Massachusetts
Hypothetical policy:
Annual energy benchmarking and public disclosure
Commercial properties 25,000 SF and greater
Multifamily residential properties 20 units and greater
2015 2020
Energy Savings
(cumulative, $3.8 $18.2
in billions)
Net New Jobs 17,098 59,620
www.imt.org/energy-disclosure-and-job-creation
19. Incorporating Energy Efficiency into Mortgage Underwriting
Aligning mortgage policy with energy efficiency
Energy costs now exceed
property taxes and insurance,
which are accounted for in
mortgage underwriting.
A homeowner who spends less
on utilities will have more
money to make mortgage
payments
For a typical house :
o Median home price - $175,000
o Average 30-year commitment to
energy costs - $70,000
20. Incorporating Energy Efficiency into Mortgage Underwriting
Mortgage Underwriting:
• Borrower capacity is adjusted for energy
costs.
• Value of the home reflects the energy
cost savings.
The Three C’s of
Underwriting
Capacity Collateral
Borrower’s ability to pay the Appraised value of the
Credit monthly mortgage home
Debt-to-Income Test Loan to Value Ratio
Energy “blind spot”
21. Incorporating Energy Efficiency into Mortgage Underwriting
• SAVE Act (S. 1737) introduced by Senators Bennet (D-CO) and
Isakson (R-GA)
• SAVE Act would create 83,000 jobs and $1.1 billion in savings to
Americans' energy bills in 2020
Annual Annual Energy
Year
Jobs Bill Savings*
2015 16,000 $95 million
2017 50,000 $380 million
2020 83,000 $1.1 billion
Source: 2011 study by the American Council for an Energy-Efficient Economy
(ACEEE) and the Institute for Market Transformation (IMT).
www.imt.org/SAVE_Act
22. Incorporating Energy Efficiency into Mortgage Underwriting
The SAVE Act: S. 1737
Leading business, industry, and environmental support the proposal.
The construction industry plays a dominant role in sustaining U.S. economic growth. Construction is one of the largest individual contributors to GDP.
From the materials produced to construct buildings and the energy used to operate them, buildings consume vast amounts of resources and are responsible for nearly half of all greenhouse gas emissions. How do we confront this crisis?Generate sustained new demand for construction workers through energy efficient constructionAdd real value to the economy through enhanced productivity, greater efficiency, and improved asset value for real estate.
Energy efficiency, often regarded as “the lowest-hanging fruit” (or “fruit on the ground,” as Secretary Chu likes to say)A healthy economy relies on a healthy building sector. Creating a demand for deep energy reductions in buildings is a cost effective ways to generate new jobs and jumpstart the U.S. economyJOBS: The construction industry employs millions of workers, which cannot be outsourced. Energy savings free consumers to spend their money in more productive ways. This redirected spending has the potential to generate massive amounts of private investment,spending, and jobs.PROPERTY VALUES, REVITALIZE COMMUNITIES: Investing in building sector efficiency adds value to our building stock and establishes the foundation for public infrastructure projects and services by generating the tax revenue needed for these projects. UTILITY INFRASTRUCTURE:Costs far less than building new energy sources such as coal, natural gas and nuclear plants.
Reducing energy demand through building efficiency is significantly cheaper than producing the same amount of energy by coal or nuclear power.
Lower energy dependency & poverty / Resilience to future oil shocks
A sustainable building may cost more up front, but saves through lower operating costs over the life of the building. Highly efficient “green” buildings use less energy, attract higher rents,spend less time vacant, and command higher prices at the time ofsale.Investing in energy efficiency provides economic benefits in otherways:enhanced comfort, better health, and improved economic value.
While benchmarking and disclosure do not yield direct energy savings, they have significant potential to trigger a virtuous cycle of competition and motivate energy performance improvement and investment. Benchmarking is a proven tool to increase awareness about building energy performance among key real estate decision-makers, such as owners, operators, managers and tenants. Disclosure improves energy performance recognition among real estate stakeholders, including tenants, appraisers and investors, and facilitates greater competition in the marketplace based on energy efficiency.
We know that a homeowner who spends less on energy will have more money to make mortgage payments, yet mortgage lenders largely ignore these costs when qualifying a family for a home because they’re not part of standard mortgage underwriting criteria. The typical U.S. Household spends more than $2,300 in annual energy costs – more than the average cost of property taxes or homeowners insurance, two expenses that are routinely underwritten in a mortgage loan.Over the course of a 30-year mortgage, energy costs can accumulate to over $70,000. This is a huge cost, especially considering the median U.S. home price is around $175,000. The SAVE (Sensible Accounting to Value Energy) Act, a new proposal championed by Senator Michael Bennet (D-CO) with support from efficiency advocates and leading homebuilders, would seek to correct this energy “blind spot” in mortgage underwriting and appraisal.