A presentation by Elton Sherwin on building efficiency and job creation: Straightforward actions that cities, counties and states can implement. Prepared for the Governing Sustainability Summit, New York City – June 21, 2011. Elton is the Author of “Addicted to Energy.”
Global Terrorism and its types and prevention ppt.
Job Creation: Three Things Government Can Do
1. Three Simple Things Government Can
Do to Create Jobs
Governing Sustainability Summit
New York City – June 21, 2011
Elton B. Sherwin
Sr. Managing Director
Ridgewood Capital
Author of
The Silicon Valley Way and
These slides express the opinions of the author and Addicted to Energy
have not been endorsed by any organization or government agency
2. Agenda
• Connect the dots: Building efficiency = jobs
– Improving building efficiency creates jobs
• Policy recommendations
– Potential to create millions of jobs
– Permanent, sustainable American jobs
• Do not require ongoing subsidies
• Cannot be offshored
– Modeled on New York City
and San Francisco programs
525 University Ave.
Palo Alto, CA
3. Thought experiment Old Town Green Town
Imagine Two
Identical Towns
• Once a month all building owners go up on
their roofs and burn money
– In “Old Town” everyone burns $1,000
– In “Green Town” everyone burns only $100
– Both towns do this every month
• Towns are otherwise identical
• After one year, which town is richer?
• After ten years, which town has more jobs?
7. Improved Efficiency
Creates Jobs Several Ways
• Initial labor
– Contractors
• Savings
– “Export” fewer energy dollars
– Increased local spending
• Wealthier individuals and businesses
– Spend more
• More competitive infrastructure
8. Green Town
Green Town:
Is richer
Has more jobs
Smarter place to buy real-estate
Better place to raise children
12. I Would Like to:
Grade every building A+ to D-
Based on their actual energy consumption
Post the grade above the front door
D+ C+
B- D- C+
D-
D- C+ B-
D- B A-
Grades for illustration only, not based on real measurements
13. In Some Cities the “D” Buildings
Use More Than Half the Electricity
Just motivating them to upgrade to a C
would be a big win
D+ C+
B- D- C+
D-
D- C+ B-
D- B A-
Grades for illustration only, not based on real measurements
14. Lets talk about realistically
what can be done. Analyzed 17
Building Rating Systems
Around the World
European Unions Energy Performance Certificates
UK Display Energy Certificates
LEED – New Construction
LEED – Health Care
ENERGY STAR – Commercial buildings
ENERGY STAR homes
PlaNYC (New York City)
Australia’s Greenhouse Rating
HERS
ASHRE EQ
CALGreen level 2
California AB 1103
California AB 758
DOE home energy scoring pilot
Passive Home Certification
City of Seattle
San Francisco Details at Slideshare.com
15. Winning Strategy
New York and San Francisco
Required to calculate
ENERGY STAR score
High = 100
Low = 1
After two years:
Public disclosure
New York, San Francisco, Washington DC, Seattle, and the State of California
all use the same rating tool: US EPA Portfolio Manager
16. An example
Rating + Disclosure = Action
Class A office
• Score of 17
• Hire an auditor, who discovers
– Error in building control software
– Valves set incorrectly
– Wires reversed
– Wrong windows on south side of the building
• And upgrades are made
• Jobs are created
17. Public Disclosure of ENERGY STAR Scores
Will Create Jobs
• Construction trades*
– General contractors
=
– HVAC mechanics and installers
– Electricians
– Plumbers
• Manufacturing
– Building materials, windows and coatings
• Environmental scientists, specialists, and technicians
• Energy auditors and accountants
• Truck drivers and more…
*Renewable Energy and Energy Efficiency: Economic Drivers for the 21st Century, Roger Bezdek.
18. What Can Your City/State Do?
1. Disclose ENERGY STAR ratings
– Government buildings
– Schools
– Contests
2. Copy San Francisco or NYC Regulation
– Straightforward
– Requires all commercial buildings to calculate
Energy Star score
– In year 2: disclose it on the city website
3. Celebrate buildings scoring 90+
19. Celebrate Success
New York City
• 111 Offices
• Five Banks
• Four K-12
• Two Hotels
• One Hospital
• One Courthouse
Two built in 1800’s
• 49 before WW II
http://www.energystar.gov/index.cfm?fuseaction=labeled_buildings.locator
20. Palo Alto, CA
Celebrate Success
Built in 1966
• Lots of exposed glass in a
sunny climate
• Property Manger:
CB Richard Ellis 525 University Ave.
Palo Alto, CA
87 94 94 92
2007 2008 2009 2010
21. East Palo Alto, CA
Celebrate Success
• Lighting retrofit of 397 fixtures
saves over $5,000 per month.
– Breakeven less than two years
• Anticipated savings are
$822,460 over 10 years
University Circle • Property Manger:
East Palo Alto, CA
Wells Real Estate
85 86 92 90
2007 2008 2009 2011
22. Every City and State Should Be
Able to Do This
1. Disclose ENERGY STAR ratings
– Government buildings
– Schools
– Contests
2. Copy San Francisco or NYC Regulation
– Straightforward
– Requires all commercial buildings to calculate
Energy Star score
– In year 2: disclose it on the city website
3. Celebrate buildings scoring 90+
23. Sherwin’s Law
“When performance is graded
performance improves.
When grades are published,
the rate of improvement accelerates.”
Phrasing adapted from Thomas S.
A
Monson
24. National Target
• Above 60: all existing buildings
• Above 80: all new buildings
vs. 2003 average ENERGY STAR score
25. Three Simple Things You
Can Do to Create Jobs
1. Disclose ENERGY STAR ratings
– Government buildings
– Schools
– Contests
2. Copy San Francisco or NYC Regulation
– Straightforward
– Requires all commercial buildings to calculate
Energy Star score
– In year 2: disclose it on the city website
3. Celebrate buildings scoring 90+
28. An example
Rating + Disclosure = Action
Class A office
• Score of 17
• Hire an auditor, who discovers
– Error in building control software
– Valves set incorrectly
– Wires reversed
– Wrong windows on south side of the building
• And upgrades are made
• Jobs are created
29. Over One Million Jobs
Just in California
Accelerating the Pace of Energy Efficiency
*Renewable Energy and Energy Efficiency: Economic Drivers for the 21st Century, by Roger Bezdek.
Bezdek’s results are summarized here by Aaron Lehmer, in Renewable Energy Development Creates More Jobs than
Fossil Fuels.
Almost all the jobs created in the energy efficiency category relate to buildings and their contents. The actual
number of new jobs created by aggressive programs promoting building, appliance and electronics efficiency may be
closer to 16 million jobs nationwide (32.18 million minus 14.9 million minus the transportation sector). California’s share
of these jobs is at least 10% or 1.5 million. The challenge is to accelerate these jobs from into the current timeframe and
to get on the advanced scenario, which could created these 1.5 million additional jobs.
30. References
Job Creation data
• Energy Pathways for the California Economy, David Roland-
Holst and Fredrich Kahrl, UNIVERSITY OF CALIFORNIA
• Renewable Energy and Energy Efficiency: Economic Drivers for
the 21st Century, Roger Bezdek.
31. More Conservative Estimates
• The Center for American Progress, using a
more conservative methodology, estimates
that doing deep energy upgrades on 50
million buildings would create 625,000
permanent new jobs.
http://www.energyfuturecoalition.org/files/webfmuploads/R
ebuildingAmerica_Vision_Statement_FINAL.pdf
34. References
ENERGY STAR Hyperlinks (click on reference)
• ENERGY STAR Program for commercial buildings.
• San Francisco benchmarking legislation
• New York City benchmarking program overview
• Overview of all US disclosure programs (from IMT)
35. Question: Where can we find a
list and map of Energy Star
buildings?
Answer: On the EPA website
36. EPA Website Available Today
New York City
• 111 Offices
• Five Banks
• Four K-12
• Two Hotels
• One Hospital
• One Courthouse
Two built in 1800’s
• 49 before WW II
http://www.energystar.gov/index.cfm?fuseaction=labeled_buildings.locator
37. Afterwards, a question in the hallway:
Question: My city won’t force
building owners to disclose
anything. What should we do?
38. Check the EPA Website
http://www.energystar.gov/index.cfm?fuseaction=labeled_buildings.locator
39. Focus on the Winning Buildings
1. Disclose ENERGY STAR ratings
– Government buildings
– Schools
– Contests
2. Copy San Francisco or NYC Regulation
– Straightforward
– Requires all commercial buildings to calculate
Energy Star score
– In year 2: disclose it on the city website
3. Celebrate buildings scoring 90+
41. Additional Steps
Residential
• Disclose last two years of energy costs*
in residential MLS
• Require disclosure with green claims
– No “green” claims without disclosing actual
energy consumption.
– Five years of disclosure
• Prior two and next three years
– Use signage laws
* Optionally, home sellers can disclose a HERS score.
42. Use Signage Laws to Ban Advertising
Without Disclosure
Energy Saving
Green Home
(Data not disclosed)
Require
• Last 2 yrs utility bills
• Next 3 yrs
43. A
For the Brave
Grade Every Building in the State
A+ to D-
Based on Energy Consumption
And publish
the grades
1 Main St. D-
2 Main St. A-
44. Send Window Stickers to the
Top Performing Buildings
Posting is optional
97
C+
Internet disclosure and window stickers
will create a lot of jobs
46. Letter to a fictional governor
• 70 recommendations for
state policy
• Job creation
Previous Book
• Creating new products
• Creating new companies
These slides: www.EltonSherwin.com and on slideshare