DOE s Commercial Buildings Program: A Market-Based Approach to Zero-Energy Performance

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1 DOE s Commercial Buildings Program: A Market-Based Approach to Zero-Energy Performance September 11, 2008 David Rodgers, Deputy Assistant Secretary U.S. Department of Energy Capitol Hill Forum on Sustainability

2 Why Focus on Building Energy Use is Important 40% of U.S. Primary Energy Consumption The combined residential and commercial buildings sector is the largest energy consumer in the U.S. 72% of U.S. Electricity Source: 2007 Buildings Energy Data Book. Tables 1.1.3, 1.2.3, % of U.S. Natural Gas Total U.S. Energy Consumption (Quads) Source: 2008 EIA Annual Energy Outlook 2

3 Fastest-Growing Energy Sector Buildings sector energy consumption is growing faster than any other sector Industrial Transportation Buildings Total Quads Source: EIA Annual Energy Review, Tables 2.1b-2.1f., Year June

4 Large Environmental Footprint 52% of U.S. SO 2 Emissions 39% of U.S. CO 2 Emissions 48% 52% 28% 39% Rest of U.S. Buildings Industry Buildings 33% Transportation 19% of U.S. NO x Emissions 19% 81% Buildings Rest of U.S. Source: 2007 BED, Tables and 3.3.1; EIA 4

5 Commercial Buildings Share In 2007, buildings used 40 percent of energy (~40 quads) in the United States and accounted for 39 percent of greenhouse emissions (2320 MMT). Buildings in the U.S. are 8% of total global C0 2 emissions. U.S. building emissions are approximately equal to the combined emissions of Japan, France, and the U.K. Commercial buildings used nearly half of this or 19 percent of U.S. energy and accounted for 18 percent of greenhouse gas emissions (~1000 MMT of CO 2 e) Slightly less than India's entire energy consumption and GHG emissions, and predicted to increase by 50% by

6 2030 U.S. Commercial Buildings Projection for Business as Usual 1,210 square miles of new commercial floor space will add 580 million metric tons of CO 2 Commercial buildings will use an additional 7 quads of energy use, 90% of it electricity Commercial buildings will contribute 53% of total growth in electricity usage, or 100 GW 6

7 Commercial Building Initiative: EISA Partnership Authorizations Energy Independence and Security Act of 2007 Section (421)(f)(1) Not later than 90 days after the date of enactment of this Act, the Commercial Director shall formally recognize one or more groups that qualify as high-performance green building partnership consortia. Section (422)(b)(2) Not later than 180 days after the date of enactment of this Act, the Commercial Director shall competitively select, and enter into an agreement with, a consortium to develop and carry out the initiative. In entering into an agreement with a consortium, the Commercial Director shall use the authority described in section 646(g) of the Department of Energy Organization Act (42 U.S.C. 7256(g)), to the maximum extent practicable. 7

8 Net-Zero Energy Commercial Building Initiative Public-private partnerships to achieve continuous technology improvement and commercialization of advanced building technologies at an accelerated pace Enable market-ready net-zero energy commercial buildings no later than 2025 in all climate zones Continuous technology improvement and commercialization to transform the built environment 8

9 Commercial Building Initiative: Implementation and Partners Guiding technology advances from laboratory to marketplace 9

10 Commercial Building Initiative: Commercial Building Energy Alliances What Are They? Independent associations of commercial building owners and operators by sector Retailer Energy Alliance General merchandise, grocery store, restaurant, warehousing/distribution Commercial Real Estate Energy Alliance Office, shopping center, hospitality, medical office, GSA Institutional Energy Alliance Federal/state/local government Hospitals (Energy Smart Hospitals, Hospital Energy Alliance) Colleges/universities/K-12 schools (EnergySmart Schools) Forming early next year Commercial Building Industry Energy Alliance Manufacturers, suppliers, designer community, utilities, ESCOs, finance Forming early next year 10

11 Commercial Building Initiative: Commercial Building Energy Alliances (con t) CBEA Goals: Improve energy performance in new construction by 50% by 2015; 70% by 2025 Improve existing building stock energy performance by 30% by 2025 over CBECS 2003 baseline Establish strong market focus via alliances in retail and other building subsectors and with national accounts as key participants Share knowledge/experience to improve energy efficiency Pull equipment to higher levels of efficiency through joint procurements Consider new design, construction, and operations approaches provided in Technology Option Sets and Building Decision Tools 11

12 Commercial Building Initiative: Commercial Building Energy Alliances (con t) CBEA Objectives: Provide information network for sharing best practices, integration, energy-use measurement, and benchmarking Tap technical expertise of DOE and its National Laboratories and shape federal building R&D to address business needs Deploy through technology procurements and information sharing within commercial subsectors Conduct deployment, dissemination, and technical assistance activities to encourage adoption of technologies, practices, and policies Develop training materials and courses for building professionals and trades deploy through Commercial Building Energy Alliances partners Develop and disseminate public education materials on benefits and costeffectiveness of high-performance, energy-efficient buildings 12

13 Commercial Building Initiative: Commercial Building Energy Alliances (con t) DOE s Role in CBEAs: Convene critical stakeholders to develop best practices, provide technical tools and training, and ensure openness Collaborate with stakeholders on pilot projects of energy-saving technologies Lead open verification process of results from pilot projects and technical tools Provide a business case for using technologies and tools to communicate successes to internal and external audiences Facilitate projects to bring energy-efficient technologies to market at a competitive price 13

14 Retailer Energy Alliance Since launching in February, the REA has grown dramatically 24 members Represents more than 2 billion square feet Market penetration of 14% (based on total square footage) $816 billion in revenue 52,804 stores REA Members by Sector Big Box 37% Grocery 8% General Merchandise 31% Restaurants 5% Mid Box 19% 14

15 Commercial Building Initiative: More Sector Partners National Accounts Business with significant building portfolios, regular new construction and retrofit of existing buildings Agree to target 50% energy savings in new buildings and 30% energy savings in existing buildings by Each National Account to build at least one prototype at 50% energy savings and retrofit at least one existing building to achieve 30% savings. (Targets increase to 70% for 2015 and net-zero energy for 2018.) Cost-share testing, evaluation, and demonstration of technologies and approaches Conduct pilot programs and demonstration projects to evaluate replicable approaches National lab call closed last month, decision to be announced this week. 15

16 Where Are We? EISA 2007 signed into law on December 19, 2007 DOE establishes and launches Net-Zero Energy Commercial Buildings Initiative (congruent with BTP mission) Designate BT Program Manager as Commercial Director In progress Federal Register notice for recognition of high-performance green building partnership consortia (in concurrence) Issue competitive solicitation for consortium (June days) (in review) Establish public-private partnerships (CBEAs/National Accounts) (in progress) Established National Laboratory Collaborative on Building Technologies (launched this month) Competitive lab call in FY 2008 to support CBI requires cost-sharing (National Accounts) Competitive procurement in FY 2009 to support CBI requires cost-sharing (National Accounts) OSTP, DOE, and DOC/NIST leading development of Federal Agenda for RD&D of High- Performance Green Buildings (EPAct 2005 Section 913) (in progress) Working with GSA to establish National Clearinghouse on High-Performance Green Buildings by building on existing DOE High-Performance Buildings database GSA/BTP staff established regular meetings on activities of GSA and BTP High-Performance Green Building Offices Report to Congress (December 2009) 16

17 Thanks! Commercial Building Energy Alliances: buildings.energy.gov/alliances.html DOE Building Technologies Program: buildings.energy.gov DOE Energy Efficiency and Renewable Energy 17