Pending Building Energy Standards

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THE RISING COST OF ENERGY AND THE PENDING REGLATORY STANDARDS FOR BUILDINGS . . . Yes, I Do See A Light At the End Of This Tunnel . . . Is That A Freight Train Headed My Way?

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Regulation Trends in Building Energy Performance Standards.

Transcript of Pending Building Energy Standards

Page 1: Pending Building Energy Standards

THE RISING COST OF ENERGY AND THE PENDING

REGLATORY STANDARDS FOR BUILDINGS

. . . Yes, I Do See A Light At the End Of This Tunnel . . . Is That A Freight Train Headed My Way?

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Fuel Costs Are Increasing . . .

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. . . And So Is The Cost Of Operating A Building Today . . .

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Where Is This All Going?

What Is The New Direction With Building Energy

Consumption And Subsequent Performance?

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Mandated State and Federal Energy Performance

Standards For Buildings

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The Pending Energy Performance Standards for

Buildings

ASTM Building Energy Performance Assessment (BEPA)Standard E 2797

Presented by: Anthony J. Buonicore, PE, QEP, BCEE CEO, The Buonicore

Group ASTM BEPA Task Group Chairman EBA

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ASTM BEPA Standard E2797

Overview:

Driving Forces What’s the problem? What the BEPA standard accomplishes

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Regulatory Driving Forces: Energy Performance Disclosure in EU (2003) California - AB 1103 (2007, effective 2011) District of Columbia (2008, effective 2010) Austin, TX (2008, effective 2011) Washington State (2009, effective 2011) Seattle, WA (2010, effective 2011) New York City, NY (2009, effective 2011)

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Additional Cities considering

Denver, Portland, San Francisco

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Additional States considering

Illinois, Massachusetts, Maryland, Michigan, Minnisota, Ohio & Oregan

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Business Driving Forces:

More energy efficient buildings

Lower operating costs Higher net operating income More valuable More attractive to tenants

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Business Driving Forces:

Less energy efficient buildings:

Less competitive in the marketplace In danger of obsolescence

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What’s the problem? Prospective purchasers as part of due diligence

are asking what is the “building’s energy consumption?”

Pro Forma provided to lenders by buyers for

financing has line item for utilities under building

operating costs

a.) Lenders want a “reasonable” and “realistic” value here

b. ) No consistent methodology exists to provide answers

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What’s the problem? (cont.)Significant variability depending on:

Period of time chosen over which the data was collected (1 yr, 2 yrs, 3 yrs) and how it was calendarized

Whether or not changes in building occupancy was considered

How weather conditions were factored in and baseline conditions established

How building operating hours were considered Whether or not major building renovations were

considered

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What does the BEPA Standard accomplish?

Standardizes the collection and reporting of energy consumption information for a building involved in a real estate transaction

Provides a supplementary scope of work that can compliment property due diligence (e.g. Phase I or PCA)

Use of the BEPA standard will facilitate improved benchmarking (by others)

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Report Deliverables Pro Forma (representative) building energy use Pro Forma (representative) building energy cost Projected range of building energy use for:

lower, upper and average case Projected range of building energy cost for:

lower, upper and average case Actual building energy use data for each year

collected Actual building energy cost data for each year

collected

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Use of BEPAs in the marketplace: Likely to be combined with an ASHRAE Level I Energy Audit and/or Benchmarking (BEPA Plus) ESCOs energy auditing (BEPA and BEPA Plus) Asset management of property portfolios (BEPA

Plus) Property due diligence in acquisition or disposition

(BEPA and BEPA Plus) Building energy use regulatory disclosure (BEPA) Support “energy efficiency” loans (BEPA Plus)

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Getting On Board With This Building Trend . . .

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For Your Personalized Building Analysis So As To Improve Your Operational Costs In The Area of Energy Consumption . . .

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Jim FreibergNew Intersections, LLC(303) [email protected]

Contact: