ASHRAE benchmarking presentation by IMT 1-18-2014

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Energy Benchmarking and Disclosure in U.S. Cities Cliff Majersik Executive Director, Institute for Market Transformation [email protected] @IMTCliff

Transcript of ASHRAE benchmarking presentation by IMT 1-18-2014

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Energy Benchmarking and Disclosure in U.S. CitiesCliff MajersikExecutive Director, Institute for Market [email protected]@IMTCliff

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The building sector is the dominant user of energy and generator of CO2 emissions in the U.S. This is more true in cities due to density.

US Chicago Dallas Minneapolis New York City Philadelphia Salt Lake City Washington, DC

38

70

51

65

75

62

75 74

Percentage of Total Carbon Emissions from Building Sector

Building Sector Greenhouse Gas Emissions

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Link between Codes and Energy Performance Policy

Construction Operation Renovation Operation

Energy Codes

Energy Performance Policy

time

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Rating and disclosure drives demand and competition

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Rental Premiums for Green Commercial Buildings in the US

Jackson, 2009 Pivo & Fisher, 2010 Fuerst & McAllister, 2011

Eicholtz, 2010Wiley et al., 2010

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Added Value of ENERGY STAR-Labeled Commercial Buildings in the U.S. Market

Rental price Sale price Occupancy rate

0%

5%

10%

15%

20%

25%

30%

Wiley et al 2010*

Fuerst & McAllister 2009/11

Jackson 2009

Pivo & Fischer 2010*

Eicholtz et al 2010*AveragePremium

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When performance is measured, performance improves. When performance is measured and reported back, the rate of improvement accelerates.

A Virtuous Cycle

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U.S. Benchmarking Policy Landscape

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Covered Properties

New York City San Francisco

Buildings 50k SF+~16,000 buildings, 2.5 billion SF

Buildings 10k SF+~2,700 buildings, 205 million SF

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New York City15,300

Washington, DC2,000

California13,600

Austin2,800

Washington State4,600

Seattle3,600

San Francisco2,700

NUMBER OF PROPERTIES COVERED ANNUALLY

Philadelphia1,400

Chicago3,500Boston

1,600

Source: IMT

Each year, existing policies will impact more than

51,000 properties

Minneapolis625

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New York City2.8 billion SF

Washington, DC357 million SF

California347 million SF

Austin113 million SF

Washington State247 million SF

Seattle295 million SF

San Francisco205 million SF

BUILDING AREA (IN SQUARE FEET) COVERED ANNUALLY

Philadelphia244.5 million SF

Minneapolis110 million SF

Boston250 million SF

Source: IMT

Totaling approximately

5.8 billion SF of floor space in major real estate markets

Chicago900 million SF

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Early Energy Intensity Findings in New York City

The poorest performing buildings use 4 to 8 times the energy of the highest performing buildings.

By improving the poor performerscitywide energy reductions of 18% to 31% could be achieved.

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Small Businesses and Job Creation

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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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“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

Small Businesses and Job Creation

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Boldest action is in cities- Federal outlook remains uncertain; state and local action to continue

Leading cities are looking beyond disclosure

- Integrated policy frameworks emerging with focus on poor performers

Business and professional leadership is key

Takeaways

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The Data Access and Transparency Alliance (DATA) is a collaborative effort led by the commercial real estate industry and green building organizations to provide building operators with energy consumption data to advance energy-efficiency and energy cost savings in buildings.

More information can be found: http://www.energydataalliance.org/

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Thank you!

Cliff MajersikExecutive Director, Institute for Market TransformationWashington, [email protected]@IMTCliff

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

2002: The European Parliament adopts the

Energy Performance of Buildings Directive (EPBD),

requiring all EU Member States to establish mandatory energy

certification schemes for homes and buildings

1997: Denmark requires energy certification for homes and buildings

2004: Norway, part of the European

Economic Area, formally agrees to implement the

EPBD and building certification requirements

2007: Brazil adopts voluntary building rating regulations that become mandatory in 2012

2008: Turkey adopts a mandatory certification scheme

2010: Australia enacts mandatory energy rating for commercial structures.

2010: EPBD Recast The EPBD is recast to strengthen the energy performance requirements for all EU Member States

2008: China adopts a mandatory energy rating program for

government buildings.

1999: Australian Capital Territory requires energy certification for homes

International Policy Timeline

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Partners of Green Lease Libraryhttp://www.greenleaselibrary.com/

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Green Lease Leaders is a recognition program developed by www.GreenLeaseLibrary.com, with support from the Institute for Market Transformation (IMT) and the Department of Energy’s Better Buildings Alliance.

The Green Lease Leader designation recognizes companies or broker teams that have successfully implemented green lease language into their new or existing leases.

The website and application process will be launching this January 2014.

Green Lease Leaders Recognition Program