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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


is a Washington, DC-based nonprofit organization
The Institute for Market Transformation (IMT)

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
        •

        •
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.




What Is Market Transformation?
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
Rating Laws: International Timeline
                                                  2004: Norway,                                                             2010: EPBD Recast
                                                part of the European
                                                                                                                            The EPBD is recast to
                                            Economic Area, formally
                                                                                                                            strengthen the energy
                                           agrees to implement the               2007: Brazil adopts voluntary              performance
                                                   EPBD and building
          1997: Denmark                                                          building rating regulations that           requirements for all EU
                                          certification requirements
          requires energy                                                        become mandatory in 2012                   Member States and to
          certification for                                                                                                 clarify and streamline
          homes and                                                                                                         provisions from the
          buildings                                                                                                         original Directive




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



                                      2002:                                             2008: China
                       Energy Performance                                                     adopts a
                                                                                            mandatory
                      of Buildings Directive                                              energy rating
                          (EPBD) EU Member                                                 program for
                             States are required to                                        government                             2010: Australia
                      establish mandatory energy                                             buildings.                           passes the Building
                              certification schemes                                                                               Energy Efficiency
                       for all homes and buildings                                                                                Disclosure Act
                                                                                                                                  requiring energy
                                                                                                                                  performance
                                                                                                                                  disclosure for
                                                                                                                                  commercial buildings
                                                                                                                                  at point of sale or
                                                                                                                                  lease
“When performance is measured, performance
                            improves. When performance is measured and
A Virtuous Cycle            reported back, the rate of improvement
                            accelerates.”



                                    2.Market compares
                                  building performance
      1.Building ratings
      disclosed to market
      5.Efficiency
      of buildings
      continuously
      improves
                                                3. Market
      4.Owners                                   rewards
      improve efficiency                         efficient
      to stay competitive                       buildings

                                                  FLO-0103-2DC-5N
270,000
Benchmarking on the Rise


nearly                  commercial
buildings benchmarked in 2011
• Free, Online Tool
ENERGY STAR                    • Track Record since 1999
Portfolio Manager              • 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
www.energystar.gov/benchmark     – Apples-to-apples comparison
                                   with similar buildings
• Metrics Calculator
ENERGY STAR           – Energy consumption (source,
                        site, weather normalized)
Portfolio Manager     – 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

of commercial &
27 billion sq. ft.

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                  New York City
    Requires annual
•
    City
    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
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
Target Finder for New DC Buildings
• 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




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
                   Benchmarking
                                  write airport books aren’t
                   and audits/RCx
                                  great writers, but their
                   compliance
                                  jargon has seeped into
  “leverage

                                  our culture anyway. Some
  ”

                                  of their buzz words have
                                  already become clichéd.
Sustainability /                  They can make the user
green building         Opportunities for A/E firms he
                                  sound pretentious, as if
consulting                        or she thinks the jargon
                     “synergy”

                                  term sounds “smarter”
                                  than the common
                                  equivalent. (It doesn’t.)
                   Retrofits and
 “impactful”       renovations
How Can Architects Help Advance
Benchmarking Policy?
Get your local   “Architects? Are you
    New York
    AIA and/or       listening? This is big. You
•

    USGBC chapter    need to be fully up to
    City
    involved         speed with benchmarking
                     … and convinced that it
                     spells win-win-win for
• Coalition-         everyone.
  building is key
                     …it’s easy to imagine the
• If you have        deep-energy-retrofit work
                     this change may produce.”
  clients who
  benchmark, see      -Mike Davis, FAIA, incoming president of the Boston
  if they’ll vouch    Society of Architects
  for benefits of
  benchmarking
                      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
            Benchmarking  write airport books aren’t
Helping    appraisers assess the value of
efficiency compliance     great writers, but their
                                   jargon has seeped into
                                   our culture anyway. Some
                                   of their buzz words have
                                   already become clichéd.
             May 2012: IMT and
             the Appraisal         They can make the user
             Institute present     sound pretentious, as if he
             both statistical      or she thinks the jargon
                 “synergy”
             data and case-        term sounds “smarter”
                                   than the common
             of how buyers and
                                   equivalent. (It doesn’t.)
             study summaries

             renters place value
             on energy and
               Retrofit
               renovation
             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.

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Show Me the Data: Cannon Design Environmental Awareness Week 2012

  • 1. 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
  • 2. Background on IMT is a Washington, DC-based nonprofit organization The Institute for Market Transformation (IMT) 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 • •
  • 3. 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. What Is Market Transformation?
  • 4. Existing Buildings Projection: 85% of buildings operating in 2030 have already been built
  • 5. 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
  • 7. Rating Laws: International Timeline 2004: Norway, 2010: EPBD Recast part of the European The EPBD is recast to Economic Area, formally strengthen the energy agrees to implement the 2007: Brazil adopts voluntary performance EPBD and building 1997: Denmark building rating regulations that requirements for all EU certification requirements requires energy become mandatory in 2012 Member States and to certification for clarify and streamline homes and provisions from the buildings original Directive 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2002: 2008: China Energy Performance adopts a mandatory of Buildings Directive energy rating (EPBD) EU Member program for States are required to government 2010: Australia establish mandatory energy buildings. passes the Building certification schemes Energy Efficiency for all homes and buildings Disclosure Act requiring energy performance disclosure for commercial buildings at point of sale or lease
  • 8. “When performance is measured, performance improves. When performance is measured and A Virtuous Cycle reported back, the rate of improvement accelerates.” 2.Market compares building performance 1.Building ratings disclosed to market 5.Efficiency of buildings continuously improves 3. Market 4.Owners rewards improve efficiency efficient to stay competitive buildings FLO-0103-2DC-5N
  • 9. 270,000 Benchmarking on the Rise nearly commercial buildings benchmarked in 2011
  • 10. • Free, Online Tool ENERGY STAR • Track Record since 1999 Portfolio Manager • 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 www.energystar.gov/benchmark – Apples-to-apples comparison with similar buildings
  • 11. • Metrics Calculator ENERGY STAR – Energy consumption (source, site, weather normalized) Portfolio Manager – 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
  • 12. Industry Standard of commercial & 27 billion sq. ft. institutional office space Nearly 40% of commercial market
  • 13. 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
  • 15. 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
  • 17. New York New York City Requires annual • City 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
  • 18. 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
  • 19.
  • 20. 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
  • 21. Target Finder for New DC Buildings • 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 Energy models disclosed along with benchmarking results will create the “feedback loop” connecting design and performance that will drive energy efficiency higher
  • 22. Benchmarking Guides Investment Survey of hundreds of facility managers . Audin, Lindsay. “Finding Your Best Energy Opportunity.” Building Operating Management. December 2011.
  • 23. 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
  • 24. Management gurus who Benchmarking write airport books aren’t and audits/RCx great writers, but their compliance jargon has seeped into “leverage our culture anyway. Some ” of their buzz words have already become clichéd. Sustainability / They can make the user green building Opportunities for A/E firms he sound pretentious, as if consulting or she thinks the jargon “synergy” term sounds “smarter” than the common equivalent. (It doesn’t.) Retrofits and “impactful” renovations
  • 25. How Can Architects Help Advance Benchmarking Policy?
  • 26. Get your local “Architects? Are you New York AIA and/or listening? This is big. You • USGBC chapter need to be fully up to City involved speed with benchmarking … and convinced that it spells win-win-win for • Coalition- everyone. building is key …it’s easy to imagine the • If you have deep-energy-retrofit work this change may produce.” clients who benchmark, see -Mike Davis, FAIA, incoming president of the Boston if they’ll vouch Society of Architects for benefits of benchmarking Writing in IMT’s blog, The Current
  • 27. Energy Star Buildings Command Market Premiums Added Value of ENERGY STAR-Labeled Commercial Buildings in the U.S. Market
  • 28. Management gurus who Benchmarking write airport books aren’t Helping appraisers assess the value of efficiency compliance great writers, but their jargon has seeped into our culture anyway. Some of their buzz words have already become clichéd. May 2012: IMT and the Appraisal They can make the user Institute present sound pretentious, as if he both statistical or she thinks the jargon “synergy” data and case- term sounds “smarter” than the common of how buyers and equivalent. (It doesn’t.) study summaries renters place value on energy and Retrofit renovation performance and green building.
  • 30. • Widespread benchmarking should lead to more realistic assumptions in energy models • In the future, energy models will inform building design more
  • 31. 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.