BUILDING ENERGY EFFICIENCY OVERVIEW

Briefing for Senate Staff JIM OREILLY DIRECTOR OF PUBLIC POLICY NORTHEAST ENERGY EFFICIENCY PARTNERSHIPS (NEEP)
July 11, 2011

NORTHEAST ENERGY EFFICIENCY PARTNERSHIPS

Accelerating Energy Efficiency

MISSION Accelerate the efficient use of energy in the Northeast and Mid-Atlantic Regions APPROACH Overcome barriers to efficiency through Collaboration, Education & Advocacy VISION Transform the way we think about and use energy in the world around us.

THE CHALLENGE
In the U.S., residential and commercial buildings together use more energy and emit more CO2 than either the industrial or transportation sectors. Buildings use: o 39 % of our total energy o 66 % of our electricity Each year in the U.S., we build or renovate ~10 billion SF of commercial and residential floor space. We also tear down ~1.75 billion SF. By 2035, ~75 % of U.S. building sector will be either new or renovated. Todays building energy codes/policies will determine the buildings we live with for generations to come. - Source: US EIA, 2009, and Architecture 2030
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THE CHALLENGE

WHERE THAT ENERGY GOES

- 2010 Buildings Energy Data Book, Building Technologies Program, Office of Energy Efficiency and Renewable Energy, U.S. Department of Energy, November 2010.

WHY ARENT BUILDINGS MORE EFFICIENT?

Missed

Opportunities

SEE Action Network Blueprint for Energy Efficiency Follow on to National Action Plan for Energy Efficiency Includes RTOs, utilities, real estate, government organizations, NGOs Based goals on McKinsey 09 estimate of ~ 2.275 quads of cost-effective energy efficiency potential in commercial buildings Four Priority Solution Pillars o Drive Demand for Energy Efficiency
o Enable Efficient Operations and Investment o Build the Workforce o Move the Market
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WHY ARENT BUILDINGS MORE EFFICIENT?

New

construction

Split incentives (landlord/tenant) Lack of information/understanding Code compliance One solution: better code development, adoption,

compliance processes Net Zero Energy Buildings

Existing buildings/retrofits
Split incentives (landlord/tenant) Tenant turnover Lack of information/understanding - discounting energy savings Financing One solution: building energy rating& disclosure

One solution: equipment efficiency standards

MANAGING OUR BUILDING ENERGY USE

New

construction:

Building energy codes Development Adoption Compliance High performance building standards Stretch codes Zero Net Energy Buildings Existing

buildings/retrofits

Financing Building energy rating Appliance/equipment efficiency standards

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MANAGING OUR BUILDING ENERGY USE

Building

energy codes

Cover for residential & commercial, the building

shell, its systems and built-in equipment:

Building Envelope Mechanical Service Water Heating Lighting Electrical Power

Set minimum requirements for energy-

efficient design in new construction and substantial renovation

MANAGING OUR BUILDING ENERGY USE

Building

energy codes

Building codes are a long established practice

Code of Hammurabi (3000 B.C.) established builder liability for a home that collapsed Established in U.S. in late 19th and early 20th century, demanded by insurance industry Designed to protect public health, safety and general welfare Energy added in mid-1970s to address general welfare of energy crisis

EXAMPLES OF CODE REQUIREMENTS

The energy code specifies the insulation levels in the floor, ceiling, and walls and requirements intended to seal the building against air leakage and moisture migration.

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EXAMPLES OF CODE REQUIREMENTS

Energy codes provide criteria for the size and efficiency of HVAC systems and equipment.

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EXAMPLES OF CODE REQUIREMENTS

The energy codes provide minimum criteria to support efficient, effective lighting and in commercial spaces lighting controls.

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MANAGING OUR BUILDING ENERGY USE

Building

energy codes

Development National model code bodies ICC, ASHRAE Updated every three years currently IECC 2012 & ASHRAE 90.1-2010 Tied to DOE stated goal of net zero buildings by 2030 Adoption On state-by-state basis o Legislative Can include automatic update provision o Administrative Some 12 states w/o mandatory C or R energy code ARRA funding tied to IECC 2009/ASHRAE 2007 adoption
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MANAGING OUR BUILDING ENERGY USE

Building

energy codes

Compliance Generally by local building officials Part of overall building code enforcement Should be verified for compliance prior to issuing CO Issues of: o Time/resources o Knowledge/understanding o Priority: often falls behind health/safety codes o Accountability ARRA funding tied to commitment to 90 % compliance by 2018
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MANAGING OUR BUILDING ENERGY USE

Building

energy efficiency

Shaheen-Portman Energy Savings and Industrial Competitiveness Act of 2011 Codifies DOE goal-setting and certification practices re: building energy code development Requires DOE to support state energy code training and education Requires states to certify energy code updates and compliance plans Must also certify whether achieved 90 % compliance If not, state must submit status report to DOE Conformance may be required by DOE as a criterion for grants or other support
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MANAGING OUR BUILDING ENERGY USE

Existing

buildings/retrofits

Issues/obstacles Split incentives (landlord/tenant) Tenant turnover Lack of information/understanding Discounting energy savings Financing One solution: building energy rating& disclosure

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BUILDING ENERGY RATING/DISCLOSURE

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BUILDING ENERGY RATING/DISCLOSURE

Building rating or label Scorecard of home or buildings relative energy performance Technical scale of performance Experience in EU, Australia, several U.S. municipalities Disclosure to consumers Provide label/rating/information to buyers/renters Disclose early enough to impact sales/rentals Both residential and consumer Analogous to product Energy Guides, but for properties Allow markets to drive energy efficiency retrofits Properties become valued for higher energy performance Prompt upgrades before properties go to market Allow energy performance to be negotiated into price
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MANAGING OUR BUILDING ENERGY USE

Home/Building

Energy Rating & Disclosure

Waxman-Markey (09) required DOE to establish model home/building rating model & would provide federal $ to states if they mandated based on those models White House CEQ/Recovery Through Retrofit IDs home rating as key to retrofit DOE began developing in 10, pilot tested in 10 states Program refinement/next phase announced Sept. 11 Similar effort soon to launch for commercial RFI will seek comments/input to commercial tool Several important questions to be addressed: o Site vs. source energy? o Asset or operational rating, or both? 19 o Frequency?

RESIDENTIAL NOW, COMMERCIAL TO COME

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MANAGING OUR BUILDING ENERGY USE

Building

Energy Rating & Disclosure

Many good models to work with/from: o International: o European Union o Australian Capital Territory o US: o California Assembly Bill 1103 o DC Clean and Affordable Energy Act (2008) o NYC Greener, Greater Buildings Plan o San Francisco Existing Commercial Buildings Energy Performance Ordinance

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DOING WELL BY DOING GOOD

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DOING WELL BY DOING GOOD

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IN THE MEANTIME
What

about commercial building benchmarking?

In April, EIAs FY 2011 funding cut by $15.2 million,

hitting energy data, analysis and forecasting

Resulted in suspension of 2011 Commercial Buildings Energy Consumption Survey (CBECS) - only source of statistical data on energy use/characteristics of commercial buildings Also basis for ENERGY STAR Portfolio Manager National Institute for Building Science (NIBS) proposing High-Performance Building Data Collection Initiative o Hearing July 18 on data needs, existing sources

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BUILDING ENERGY EFFICIENCY OVERVIEW

Jim OReilly Director of Public Policy [email protected] NORTHEAST ENERGY EFFICIENCY PARTNERSHIPS (NEEP) July 11, 2011
91 Hartwell Avenue Lexington, MA 02421 P: 781.860.9177 www.neep.org

THANK YOU