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District Energy / Second Quarter 2009 2

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S E C O N D Q U A R T E R 2 0 0 9

ENERGY STAR®

Buildings:Saving money

and theenvironment

Real-TimeModeling, Simulation

Yield Results

Realizing DistrictEnergy’s Potential

in Europe

GSA Launches OnlineEnergy Manager

EU’s Nascent EmissionTrading Scheme

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Upcoming AnnualConference, Gala

Mark IDEA’s100 Years

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24 District Energy / Second Quarter 2009 © 2009 International District Energy Association. ALL RIGHTS RESERVED.

CoverStory

Customers earn high marks forenergy efficiency

Editor’s Note: Through presentations and a special poster exhibition, IDEA’s 100th Annual

Conference in June will showcase ENERGY STAR-label buildings that are district energy customers.

Here are representative success stories.

Businesses are buzzing about ENERGY STAR. Whether they’re retrofitting existing office space or

designing a new structure, companies from coast to coast are seeking the U.S. Environmental

Protection Agency’s (EPA) ENERGY STAR label, the national symbol of energy efficiency. Why?

Because it is helping building owners and managers measure – and reduce – their facilities’ energy

consumption. And that is good news for the bottom line and the environment.

Keith Oldham from State House Square, a Class A building that is a district energy customer in

Hartford, Conn., explains: “ENERGY STAR is a simple and easy way to track a building's energy

usage without spending a great deal of time or money. It is also a testament to your company’s

desire to positively impact not only your regional environment but the world environment as well.

I recommend that all facility managers and/or chief engineers at least take a look at this program.

At minimum, you will have a comfort level that your facility is performing as well, if not better, than

similar buildings throughout the country.”

State House Square should know. This district energy customer has earned the ENERGY STAR

label five years in a row.

ENERGY STAR®

Performers:

Metro Ranking onEPA List of Top 25

No. of ENERGY STAR- Cities With the MostQualified Buildings ENERGY STAR-

IDEA Member on District Energy City Population Qualified BuildingsCity District Energy System System as of 2008* (2007) in 2008**

New York, N.Y. Con Edison Steam Operations 44 8,274,537 12

Denver, Colo. Xcel Energy Inc. 24 588,349 7

San Francisco, Calif. NRG Energy Center San Francisco 18 799,183 2

Seattle, Wash. Seattle Steam Co. 13 594,210 10

Minneapolis, Minn. NRG Energy Center Minneapolis 9 377,392 8***

St. Paul, Minn. District Energy St. Paul 8 277,251 8***

Philadelphia, Pa. Trigen, A Veolia Company 8 1,449,634 17

Hartford, Conn. Hartford Steam Co. 6 124,563 na

Detroit, Mich. Detroit Thermal LLC 6 916,952 14

Chicago, Ill. Thermal Chicago Corp. 5 2,836, 658 6

Baltimore, Md. Comfort Link 4 637,455 na

Indianapolis, Ind. Citizens Thermal 4 795,458 na

Austin, Texas Austin Energy 2 743,074 13

Harrisburg, Pa. NRG Energy Center Harrisburg 1 47,196 na

Table 1. District Energy Systems Serving ENERGY STAR-Qualified Buildings: A Representative List.

Source: IDEA survey of representative member district energy systems; Top 25 Cities With the Most ENERGY STAR Qualified Buildings in 2008, U.S. EPA (www.energystar.gov/ia/business/downloads/2008_Top_25_cities_chart.pdf); 2007 Population Estimates, U.S. Census Bureau.

*Number reflects only those buildings connected to district energy systems serving central business districts. Additional ENERGY STAR buildings may beserved by other district energy systems also within city boundaries but outside of the central business district; they are not included here.**Metro area includes but is not limited to the central business district or district energy system service area.***Listed in ranking as metro area Minneapolis-St. Paul.

Behind the BuzzIn the United States, commercial

buildings and manufacturing plants con-sume nearly half of the total energy usedand account for nearly half of all green-house gas emissions. But an increasingnumber of buildings are taking measuresto save energy and money and lessentheir environmental impact.

In 2008, more than 3,300 commercialbuildings and manufacturing plants in theUnited States earned the ENERGY STARlabel (see sidebar on next page), repre-senting savings of more than $1 billion inutility bills and more than 7 million metrictons of carbon dioxide emissions. Lastyear’s new ENERGY STAR recipients morethan doubled the total number of ENERGYSTAR-labeled buildings in 2007. Thatbrought the number of qualified buildingsand plants to more than 6,200 with over-all annual utility savings exceeding $1.7billion and prevented greenhouse gasemissions from an equivalent of morethan 2 million cars a year.

Many ENERGY STAR buildings also

most ENERGY STAR-qualified buildingshave district energy systems.

Just as 2008 was a banner year for theoverall ENERGY STAR program, it also was abig qualifying year for district energy cus-tomers. In Seattle, for example, 6 out of the13 ENERGY STAR buildings served bySeattle Steam Co. earned the label lastyear for the first time; another three, in2007. The story is similar in other cities. Asmore and more buildings, including districtenergy customers, pursue the ENERGYSTAR label, it is appropriate to ask, WhyENERGY STAR? How are these facilitiesearning this distinction? Has it beenworth the time and expense?

Why ENERGY STAR?The U.S. Environmental Protection

Agency and the U.S. Department of Energycreated the ENERGY STAR program forcommercial buildings and plants to helpbusinesses save money and protect theenvironment. The program appears to bedelivering. Its effectiveness was recentlyvalidated by a study released by the New

happen to be district energy customers(table 1). In a number of U.S. cities, districtenergy systems serve a majority of theENERGY STAR-qualified buildings in theirservice areas, for example:� St. Paul – All 8 ENERGY STAR buildings in

District Energy St. Paul’s service area aredistrict energy customers.

� Hartford – Hartford Steam Co. counts 6of 7 ENERGY STAR buildings in its marketas customers.

� Minneapolis – NRG Energy CenterMinneapolis supplies 9 of 12 ENERGYSTAR buildings in its service area.

� New York – In Con Edison SteamOperations’ service area, 44 of 54 ENERGYSTAR recipients are district energy cus-tomers.

� Seattle – 13 out of 20 ENERGY STARbuildings in the central business districtare connected to Seattle Steam Co.

� Philadelphia – Trigen, A Veolia Company,serves 8 out of 14 ENERGY STAR facilitiesin its service area.

Based on an EPA ranking, 8 of thetop 10 U.S. metropolitan areas with the


Using ENERGY STAR’s free Web-based tools and training,

facilities can measure their current energy performance, set goals

and track savings. Here’s how building owners and managers

can achieve the ENERGY STAR label:

1. Complete a building energy analysis using ENERGY

STAR’s Portfolio Manager online benchmarking tool. Enter

energy usage data into the program, and it will calculate a

score for the building on a scale of 1 to 100 relative to compa-

rable facilities nationwide.

2. Determine if the building achieves a rating of 75 or

above. If so, it is among the top 25 percent of similar facilities

in the country for energy performance and eligible to apply

for the ENERGY STAR label.

3. Obtain validation of results by a professional engineer.

This individual will need to verify a data checklist and statement

of energy performance.

4. Submit the necessary documents to EPA.

More than 6,200 U.S. buildings and plants have qualified

for ENERGY STAR to date, but they’re just the tip of the iceberg:

More than 62,000 buildings have been rated by the system. A

growing number of district energy customers seem to be

embracing the program. In a recent customer survey conducted

by Seattle Steam Co., respondents were asked if they found

ENERGY STAR to be an effective benchmarking tool. Nearly two-

thirds said yes, with a number of them explaining their response:

� “Energy is money...it is my job to save it.”

� “Very concise central location to handle energy consumption.”

� “Analysis of consumption increases awareness and promotes

reduction strategies.”

� “Well-developed profile of building system/envelope.”

� “The familiar phrase ‘What gets measured, gets done.’ With

trending you can find opportunities for improvement, in this

case energy savings and increased sustainability. Portfolio

Manager is one way to do so…”

� “Puts everyone on the same scale/standard.”

� “Perfect tool for seeing total energy usage, great start to carbon

counting.”

� “ENERGY STAR is an effective tool because once all the past

data is input into the system areas of potential energy reduction

are more easily located.”

John F. Kattner, president of Kattner Associates LLC, points

out, “ENERGY STAR-label buildings show how much you can do

to improve a building's energy efficiency without changing the

source of the energy. If a building is an energy hog, it's an energy

hog – no matter the energy source. So increasing energy efficiency

is certainly compatible with being a district energy customer.

Buildings without their own boilers and chillers can focus their

efforts on optimizing the HVAC system and other elements of

their operation, rather than spend money and time in the boiler

room or on the roof.”

For more details on ENERGY STAR for buildings and plants,

and the application process, visit www.energystar.gov.

Jeff Lindberg, Hartford Steam Co. (right), congratulates Jeffrey Royx,director of facilities management, Phoenix Life Insurance Co., on earningthe ENERGY STAR label in 2007 for the company’s headquarters buildingin downtown Hartford. Buildings receiving ENERGY STAR certificationare awarded a plaque they can display, showing that their buildingmeets strict guidelines for superior energy performance.

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Introduced in 1992, ENERGY STAR is a joint program of the

U.S. Environmental Protection Agency and the U.S. Department

of Energy that helps consumers and businesses save energy and

money through energy-efficient products and practices. Today the

ENERGY STAR stands for superior energy performance in America.

It is awarded to more than 50 different categories of products

and, since 1999, also to commercial buildings that meet certain

energy efficiency standards. In 2006, the label was extended to

cover manufacturing plants as well.

ENERGY STAR and District Energy


Buildings both new and old have qualified for the ENERGY STAR label. Case in point: Seattle’s historicSkinner Building houses not only offices and retailers but also the nationally acclaimed 5th Avenue Theatre(shown here). One of the Skinner’s original tenants, dating to the building’s beginnings in 1926, the theaterbrings approximately 150 live musical performances to the stage each year.

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Climate Leaders program, an industry-gov-ernment partnership that works with com-panies to develop climate change strategies,and the company found the two programscomplemented each other well.

The decision to pursue the ENERGYSTAR label also can start at the top. Someproperty owners make achieving ENERGYSTAR a portfolio-wide project. Such is thecase, for example, with Hines, where energyefficiency has long been a corporate priority(see sidebar p. 31). The company currentlymanages 130 ENERGY STAR buildingsnationwide, representing 75 million sq ft(including 5 of the 9 ENERGY STAR build-ings served by NRG Energy CenterMinneapolis).

The Skinner Building, a 206,000-sq-ftcommercial and retail building served bySeattle Steam Co., also got involved in theENERGY STAR program through its owner/manager, Unico Properties LLC. The firm iscommitted to obtaining LEED® (Leadershipin Energy and Environmental Design) greenbuilding certification for all its existing andnew buildings, and the ENERGY STARlabel is a prerequisite for LEED for ExistingBuildings (LEED-EB).

Another reason ENERGY STAR is onthe radar screen for many building ownersand managers is that some state and localgovernments are bringing it to the forefront.

Legislation in California, Illinois, Michigan,Minnesota, Ohio, Virginia and the Districtof Columbia references ENERGY STAR toolssuch as Target Finder and Portfolio Manager.Target Finder sets whole building energyperformance targets in new buildingdesign. Portfolio Manager tracks energyuse, energy costs and carbon emissions inexisting buildings.

The city of Denver requires that existingand future city-owned and -operated build-ings be benchmarked in Portfolio Managerand that new construction and major ren-ovations of city buildings be designed toearn the ENERGY STAR. The borough ofWest Chester, Pa., takes it a step farther,requiring all new commercial constructionto be designed to earn the ENERGY STARand be benchmarked annually in PortfolioManager. ENERGY STAR benchmarkingrequirements also have been proposed bythe city of Seattle.

How They Did ItTo earn the ENERGY STAR, building

owners or managers must benchmarktheir energy consumption (12 months ofenergy data and operational characteristics)in the program’s online Portfolio Managertool, which rates building energy efficiencyon a scale of 1-100 as compared to similarbuildings nationwide. Buildings scoring 75or higher that have been professionally ver-ified to meet current indoor environmentalstandards are eligible to apply for theENERGY STAR from the EPA.

By most accounts, the applicationprocess is straightforward. The 1.1 million-sq-ft Wells Fargo Center in Minneapolis, anNRG Energy Center customer, completedits first energy analysis using PortfolioManager in just a couple of days back in1999, scoring an 80. It finds the annualrenewal process to be easy and rewarding:The building has earned the ENERGY STARlabel every year consecutively since 2002,progressively raising its score to 95 in both2007 and 2008.

Similarly, Hartford Steam customer280 Trumbull St., which earned the ENERGYSTAR last year with a 91 rating, found theprocess simpler than expected. Buildingmanager Grunberg Management was ableto compile, review and run its historicalenergy use data through Portfolio Managerand ready it for verification in less than 10hours – mainly because of excellent record-

Buildings Institute, which found that ENERGYSTAR-labeled buildings use an average ofalmost 40 percent less energy than averagenon-ENERGY STAR buildings and emit 35percent less carbon.

ENERGY STAR is good for businessfor other reasons as well. A recent studyconducted by the CoStar Group showedthat rental rates in ENERGY STAR buildingshave a $2.38-per-sq-ft premium over theirnon-ENERGY STAR peers and 3.6 percenthigher occupancy; in addition, they sell for$61 more per square foot on average.

These factors are behind many districtenergy customers’ decisions to go for thelabel. The 356,000-sq-ft Phoenix LifeInsurance Co. building, a Hartford SteamCo. customer, achieved ENERGY STAR statusin 2007. It had been an ENERGY STARPartner for 10 years, focusing on energyefficiency as part of its formal commitmentto continuously improve energy performance.Phoenix’s facilities organization pursuedthe ENERGY STAR label to demonstrate tosenior management it was operatingeffectively.

Another Hartford Steam customer, St.Paul Travelers’ 2.4 million-sq-ft corporateheadquarters building, also got involved inENERGY STAR through its facilities man-agement department. Simultaneously, sen-ior management was pursuing the EPA’s


keeping. Seattle’s Skinner Building likewisefound the process went quickly, pulling allnecessary information together and enteringit into Portfolio Manager with 10 hours ofengineering staff time.

The verification process – having alicensed, trained professional engineer val-idate energy performance data – may takeat least one full day, according to HartfordSteam customer State House Square, an845,000-sq-ft office building that firstreceived the Energy Star in 2004.

If buildings have focused on continu-ously improving energy efficiency, they oftenimmediately meet the ENERGY STAR-labelcriteria. Hartford’s 28-story 280 TrumbullSt., for example, easily achieved the ENERGYSTAR the first time it engaged in the process.

Rather than repairing old technologies, itsowner consistently replaces old failingequipment with newer, more efficienttechnologies like variable-frequency drives,efficient bulbs and ballasts, etc. In fact,energy efficiency improvements are nowjust ‘business as usual.’ The owner’s long-term plan for the building takes advantageof retrofit/upgrade incentives offered bythe local electric utility and charges itsstaff-driven team to be focused on theseenergy programs. This approach, asopposed to embarking on upgrades solelyto achieve the ENERGY STAR label, makesimprovement costs more manageable.

Many facilities, like U.S. Bank Plaza inMinneapolis, an NRG Energy Center cus-tomer, earn the ENERGY STAR rating with

a solid combina-tion of existingfeatures andretrofit projects.Constructed in1981, the 1.8 mil-lion-sq-ft complexconsists of twotowers and is theworld headquartersfor The PillsburyCo. It has under-gone a completeretrofit of allincandescentlighting with high-efficiency fluores-cent fixtures andthe installation ofhigh-efficiencymotors and vari-able-frequencydrives on buildingair-handling unitsand a buildingautomation systemto control buildingequipment opera-tion.

Even newerbuildings thatwere designedwith energy effi-ciency in mindembark onimprovements tohelp earn theENERGY STARlabel. Take, for

example, the 1.2-million-sq-ft AmeripriseClient Service Center, another NRG EnergyCenter Minneapolis customer. Built in2002, it features numerous state-of-the-artsystems to efficiently regulate energyusage. Yet owner Ameriprise Financial Inc. iscommitted to continual improvements andhas an ongoing commissioning programin place to identify further operating effi-ciencies. After just three years of operation,Ameriprise invested in even more energyreductions – through more lightingupgrades, window films to reduce sun-light energy, improved HVAC controls,electrical peak-shaving controls and in-house conservation programs. The buildingfirst earned the ENERGY STAR with a scoreof 90 in 2007, raising its rating to 94 in 2008.

While many existing buildings qualifyfor ENERGY STAR after upgrades, retrofitsand ongoing improvements, some arespecifically designed to qualify for theENERGY STAR label right from the start.There is even a special EPA designationcalled Designed to Earn the ENERGYSTAR, which was introduced in 2004 fornew construction. It can be obtained bythe architect of record for building designsexpected to qualify for the ENERGY STARlabel once in operation. More than 100designs have been awarded this distinction,a large majority within the past two years.

Both new and existing buildings mayfind that district energy service gives theman advantage when it comes to qualifyingfor the ENERGY STAR rating. The SkinnerBuilding, for example, found that its con-nection to Seattle Steam helped it score ahigher number of points than would havebeen possible using electric heating. Unico’sClarence Clipper observes, “We truly don’tbelieve we would have received ENERGYSTAR certification without our connectionto Seattle Steam and district energy.”

The PaybackSo are the time and expense spent

pursuing ENERGY STAR certification worthit to district energy customers? Ned Gorskiof Grunberg Management thinks so. Hiscompany’s 280 Trumbull St. building inHartford spent less than $2,000 on thecertification process, start to finish. Themajority of the cost went toward hiringthe required ENERGY STAR-approved engi-neer to perform a site visit and validate allsubmitted data. “This is an extremely small

Developed, owned and managed by Hines, 225 So. Sixth is a 1.4 million-sq-ftoffice complex in downtown Minneapolis and one of the area's most prestigiousproperties. The 59-story tower and adjacent 18-story Park Building have useda five-phase program of retrofits and upgrades to earn the ENERGY STARlabel 9 of the past 10 years. Phase V included variable-frequency drives onair-handling units on each floor. The structure has an energy intensity of just54.2 kBtu/sq ft/yr.

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Coast to Coast:Three of district energy’s brightest ENERGY STARs

Skinner BuildingSeattle, Wash.

District energy provider: Seattle Steam Co.Service provided: steam for space heatingand hot waterYear connected to system: 1927

Year ENERGY STAR-labeled (rating): 2008 (95)Address: 1326 5th Ave.Facility type: office and retailTotal square feet served by Seattle Steam Co.:205,866Year constructed: 1926Building owner/property manager: UnicoProperties LLC

An elegant eight-story building that is home tooffices and several luxury retailers, includingBrooks Brothers, St. John Boutique and Gucci.Also houses the historic 5th Avenue Theatre,called “a national treasure” by Helen Hayes,which has been a showplace for vaudeville,movies and Broadway productions for morethan 80 years.

The Skinner Building sought the ENERGY STARlabel as part of its efforts to achieve LEED forExisting Buildings certification. Unico Properties’Clarence Clipper says obtaining an ENERGYSTAR rating and LEED certification “is theresponsible approach to managing an officebuilding, reducing our carbon footprint andreducing utility costs for our tenants. Webelieve many tenants seeking a new locationlook for buildings that are well-managed andhave reasonable expenses. Our ENERGY STARcertification speaks to that.”

Other ENERGY STAR buildings served bySeattle Steam Co. (years labeled):Century Square (2008)Federal Office Building (2000, 2008)IBM Building (2008)Jackson Federal Building (2008)One Union Square (2005)Plaza 600 Building (2007)Puget Sound Plaza (2008)Seattle Tower (2008)Second & Seneca Building (2000, 2007)Two Union Square (2005)WaMu Center (2007)Washington Mutual Tower (2007)

Wells Fargo CenterMinneapolis, Minn.

District energy provider: NRG Energy CenterMinneapolisService provided: steam for space heatingand domestic hot waterYear connected to system: 1988

Year ENERGY STAR-labeled (rating):2008 (95) 2004 (83)2007 (95) 2003 (78)2006 (87) 2002 (75)2005 (86) 1999 (80)Address: 90 South 7th St.Facility type: office towerTotal square feet served by NRG EnergyCenter: 1,105,105Year constructed: 1987Building owner/property manager: Hines

A 57-story downtown landmark designed byCesar Pelli & Associates in a style recalling early20th-century Art Deco skyscrapers. Features afull-block pedestrian promenade with a 100-ft-high skylit rotunda on one side and formallobby on the other. Major tenants include WellsFargo Bank, Faegre & Benson, and KPMG LLP.Building has received awards from the UrbanLand Institute, the National Association ofIndustrial and Office Properties and the BuildingOwners and Managers Association.

On supporting customers like Wells Fargo inpursuing ENERGY STAR, NRG Energy Center’sJerry Pittman says, “Our goal is to serve as acredible, useful resource to our customers andhelp them improve their energy efficiency and‘go green.’ ENERGY STAR is the natural firststep to becoming either Green Globes- orLEED-certified, and we want to support thatnext step as well.”

Other ENERGY STAR buildings served byNRG Energy Center Minneapolis (yearslabeled):225 South Sixth (1999, 2001-2008)Accenture Tower at Metropolitan Centre (2002-2005, 2007-2008)100 Washington Ave. So. (2008)Ameriprise Client Service Center (2007-2008)Thrivent Financial (2007)U.S. Bank Plaza (2001-2008)US Bancorp Center (2006, 2007)Campbell Mithun Tower (2002, 2004, 2005, 2007)

280 Trumbull StreetHartford, Conn.

District energy provider: Hartford Steam Co.Service provided: steam for space heatingand domestic hot water, chilled water for spacecooling and data loadYear connected to system: 1997

Year ENERGY STAR-labeled (rating): 2008 (91)Address: 280 Trumbull St.Facility type: Class A commercial office towerTotal square feet served by Hartford SteamCo.: 699,300Year constructed: 1984Building owner/property manager: GrunbergManagement

A 28-story office tower with some of the mostexpansive views of Hartford and the surround-ing areas. Located in the heart of the centralbusiness district, across from the Hilton Hoteland Hartford Stage. Was named the BuildingOwners and Managers Association’s Building ofthe Year in 1999 and 2000. Major tenantsinclude Prudential Financial, UPS Capital andthe U.S. National Labor Relations Board.Building was renovated substantially in 1999and 2005, when the lobby was substantiallyrefurbished.

Energy efficiency improvements are a key ele-ment in Grunberg Management’s long-termplan for the building. The firm views earningENERGY STAR both as a way to be environmen-tally and socially responsible and as a means tostay competitive in the industry, by reducingutility costs and becoming a more efficient userof those utilities.

Other ENERGY STAR buildings served byHartford Steam Co. (years labeled):Connecticut Department of EnvironmentalProtection (2005)St. Paul Travelers (2006-2008)One State Street (1999, 2002, 2006, 2008)Phoenix Life Insurance Co. (2007)State House Square (2004-2008)

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cost given the benefits that the rating hasprovided us,” Gorski maintains.

In the case of Seattle’s Skinner Building,the validation process did not cost UnicoProperties anything at all. The engineeringconsultation costs for verification werecovered by the Building Owners andManagers Association of Seattle andBetterBricks, a commercial building initiativeof the Northwest Energy Efficiency Alliancethat advocates for changes to energy-related business practices.

While the expenses incurred in thecertification process itself are minimal, thecosts of attaining the energy efficiency

level needed to qualify for ENERGY STARalso provide a good return on investment.Building owners and managers can reapsavings without having to fund large capitalimprovements. As part of its ENERGY STAR-related retrofits, Hartford’s State HouseSquare saw payback on a 2007 garagelighting upgrade in less than two years,with a 47 percent rebate obtained fromConnecticut Light & Power.

In Minneapolis, Wells Fargo Centerexperienced a one-year payback on theequipment it installed on its path to theENERGY STAR – variable-frequency drivesand high-efficiency motors on heating water

pumping stations and air-handler motors.A lighting retrofit alone saves an estimated2 million kWh annually. Elsewhere down-town, Ameriprise Client Service Center’sinvestments in energy-efficient technologiesand processes were so successful that elec-trical consumption decreased by 8 percent,and the building was able to reduce districtheating use by more than 25 percent.These reductions saved Ameriprise Financialmore than $125,000 in utility costs whilereducing greenhouse gas emissions.

Larger improvement projects en routeto the ENERGY STAR also have yieldeddramatic energy- and money-saving resultsfor district energy customers. The PhoenixLife Insurance building’s $26 million, 2-1/2-year renovation included electrical andmechanical infrastructure improvements,HVAC and other energy retrofits, bettercontrol strategies and much more. In2008, the year after qualifying for thelabel, the facility used nearly 25 percentless energy than it did in 1998 – with nochange in footprint and little change inoccupancy. Jeffrey Royx, Phoenix’s directorof facilities management, concludes, “TheENERGY STAR process has validated ourstrategy and our investments. We can seeit’s making a difference…The investmentswe’ve made in energy efficiency over theyears continue to provide economic bene-fits. We’ve made a conscientious effort toreduce our energy use and that pays offyear after year.”

In addition to the more direct bottom-line benefits of achieving ENERGY STARstatus, building owners and managers alsoderive marketing value from the label.Qualifying facilities receive an ENERGYSTAR plaque as a symbol of their commit-ment to environmental responsibility.

Kudos to the Stars of 2009!Congratulations to Austin Energy, Xcel Energy and real estate firm

Hines. They’re all winners of the U.S. Environmental Protection

Agency’s (EPA) prestigious 2009 ENERGY STAR Awards. In March they

were among 89 organizations recognized for their leadership in energy

efficiency in three award categories: Sustained Excellence, for long-

term commitment to protecting the environment through superior

energy efficiency; Partner of the Year, for outstanding accomplishments

in reducing greenhouse gas emissions through energy efficiency; and

Excellence, for outstanding work in promoting energy-efficient homes,

products and practices to employees, consumers and the community.

IDEA-member Austin Energy received an ENERGY STAR award for

Sustained Excellence – Program Delivery. IDEA-member Xcel Energy

received the ENERGY STAR Partner of the Year – Program Delivery

award. District energy customer Hines received the ENERGY STAR

award for Sustained Excellence – Energy Management. In 2008, Hines

increased the number of ENERGY STAR-qualified buildings it manages

by more than 60, for a total of 130; these buildings save more than

$103 million in energy costs annually. More than 80 percent of

Hines-managed properties are benchmarked using Portfolio Manager.

In addition, Building Owners and Managers (BOMA) International

received a Sustained Excellence Award for Program Delivery this year.

The organization was honored for expanding and improving its

successful BOMA Energy Efficiency Program (BEEP), which delivers

innovative operational excellence training and resources to industry

professionals. In 2008, as part of BEEP, BOMA trained 14,000 industry

practitioners on energy efficiency strategies using Portfolio Manager.

More than 440 member buildings have been benchmarked to date,

totaling almost 160 million sq ft and achieving a portfolio-wide average

score of 80.


“We truly don’tbelieve we would havereceived ENERGY STARcertification without our

connection toSeattle Steam anddistrict energy.”

Displaying it sends a positive message tolenders, appraisers, owners, investors andpotential customers. Says Jeffrey Hines,president and chief executive officer ofHines: “ENERGY STAR signals lowerexpenses for our tenants, higher returnsto our investors and a better environmentfor everyone.”

Ned Gorski of Hartford’s 280 TrumbullSt. agrees: “We have received publicity asa result of our ENERGY STAR, and we douse it in our marketing and promotionalmaterials. It is a great competitive edge inthe industry given the higher awarenessthat people have in regards to the environ-ment and cost savings due to efficiencies.”Unico Properties, owners of Seattle’s SkinnerBuilding, leverages its buildings’ ENERGYSTAR status as well. The company hasplaced plaques in the lobbies of all itsqualifying facilities and noted the accom-plishment on its corporate Web site; a larg-

er publicity push isplanned too.Seattle Steam hashelped spread theword about theSkinner Building’sachievement byrecognizing itsENERGY STARlabel and those ofother Unico prop-erties in its cus-tomer newsletter.

The ENERGYSTAR label’s PRvalue extends tointernal as well asexternal audiences.Ameriprise, forexample, has pro-moted its ENERGYSTAR label on thefront page of itsemployee newspa-per and on thecompany’s intranethome page, thank-ing workers fortheir role in con-serving energyand encouragingparticipation inthe company’sother green initia-tives.

And in an interesting new development,consumers, too, are beginning to take noticeof – and reward – energy efficiency in thecommercial real estate world. Quoted in aMarch 28, 2009, article by CoStar Group’sAndrew Burr, Alyssa Quarforth, programmanager of ENERGY STAR’s commercial[real estate work], says, “[Organizations]like Orbitz and Travelocity have started toshow ENERGY STAR-labeled hotels on theirWeb pages so consumers can make decisionsabout where they want to stay. We’ve seena lot of interest from owners and operatorsof stadiums, arenas and even museumsthat want to participate in benchmarkingtheir energy consumption, both from acost-savings perspective and to put them-selves out there as leaders in energy effi-ciency and the environment.”

To help ENERGY STAR buildings derivefurther marketing benefit, the EPA alsoshowcases qualifying facilities in press releases

and partners with building owners/managerson various other media activities. WhenSt. Paul Travelers was awarded the ENERGYSTAR in Hartford, for example, the EPAdeputy regional administrator attendedthe company’s ceremonial unveiling of theplaque, joining company executives, thestate environmental protection commis-sioner and other dignitaries. St. Paul Travelersalso used the occasion to simultaneouslykick off its participation in the EPA’s ClimateLeaders program.

What’s Next?Earning the ENERGY STAR label may

distinguish buildings as energy superstars,but it typically does not end their questfor greater efficiency. For many facilities,it may also become the foundation forpursuing certification in the LEED or GreenGlobes™ green building rating systems.“We often say that the first step to greenis energy efficiency,” says the EPA’sQuarforth in the CoStar article. “ENERGYSTAR fits into LEED for Existing Buildingsas part of the requirements for Energy andAtmosphere credits, although ENERGYSTAR by itself requires a higher energyperformance standard than the energyportion of LEED-EB. So to guarantee anenergy-efficient and green building, bothprograms should be utilized.”

Like the Skinner Building, Phoenix LifeInsurance is now working toward LEED-EBcertification, while 280 Trumbull St. isinvestigating the possibility of achievingeither a LEED or Green Globes rating. Asthe latter’s management company pointsout, however, its goal is not to amass cer-tifications, but rather to maintain a com-petitive and viable business while meetingobligations to tenants and the environ-

The Phoenix Life Insurance Co. headquarters, known affectionately as the“boat building” in downtown Hartford, was the first two-sided building inthe world and is on the National Register of Historic Places. The building’srecent upgrades helped it earn the ENERGY STAR label. From a chilled-waterand steam perspective, the most significant retrofit was the creation of asplit-loop system in the tower from the original single-loop design.

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In addition to themore direct bottom-

line benefits of achievingENERGY STAR status, build-ing owners and managersalso derive marketing value

from the label.

ment. If the decisions they make toreduce operating costs and the building’senvironmental footprint should happen toqualify it for a certain certification, thenthat is an added benefit.

The ENERGY STAR for buildings pro-gram is responding to the increased inter-est and participation by looking for newopportunities to expand. It has begundeveloping resources for the entertain-ment industry and multifamily housingand will explore creation of an energy per-formance rating for data centers. In spring2009, the EPA hopes to release increasedreporting capability in Portfolio Managerthat will allow owners and operators totrack and demonstrate their change in ratingover time with graphical displays. ProgramManager Quarforth notes in the CoStararticle, “Perhaps, with the stimulus moneycoming out and a lot of it going towardenergy efficiency practices, the reportingcapability will allow people to more easily

show how they’ve seen the improvementin a building if they’re benchmarkingbefore and after the arrival of thosefunds.”

As more and more district energycustomers seek to cut operating costs andlower carbon emissions, district heatingand cooling companies can help by con-tinuing to offer energy efficiency recom-mendations – and by directing customersto the ENERGY STAR labeling and bench-marking programs.

“Seattle Steam strongly supports anyefforts building operators take to improveenergy efficiency and reduce operatingcosts,” states David Easton, vice presidentof business development for Seattle SteamCo. “We’re truly concerned about thehuman impact on the global environment,and we are concerned about the cost ofenergy. ENERGY STAR benchmarking andcertification is a smart first step a buildingoperator can take, and inexpensively, to

begin to understand where the buildingmay be operating well or inefficiently ascompared to other similar buildings.”

Particularly in the current economy, asbusinesses everywhere struggle to savemoney and energy, district energy systemscan perform a valued service by supportingcustomers’ efforts to get involved in theENERGY STAR program. As one SeattleSteam customer succinctly summarized,“Energy is money…it’s my job to save it.”

IDEA thanks David Easton, Seattle Steam;Jeff Lindberg, Hartford Steam Co.; JerryPittman, NRG Energy Center Minneapolis;and their customers for their contributionsto this article. IDEA also thanks the CoStarGroup for permission to reprint portionsof its article “10 Questions With ENERGYSTAR’s Alyssa Quarforth,” available onlinehere: www.costar.com/News/Article.aspx?id=EA045EF8E6CD5F69B4015DB33DB628D5.


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