Responding to Climate Change Imperative: Reducing Energy Use & Operating Costs with ENERGY STAR

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1 Responding to Climate Change Imperative: Reducing Energy Use & Operating Costs with ENERGY STAR Karen P. Butler Energy Star Commercial Building Design US Environmental Protection Agency Overview Climate Change and Energy Use Role of ENERGY STAR EPA Tools and Resources Closing the Performance Gap The Business Case Recognizing the Best

2 Emissions by Countries Emissions Sources What do you think is the top cause of greenhouse gas emissions today? Car & Trucks Power Plants Natural Causes Don t Know Other Commercial Buildings Aerosol Cans 40% 19% 15% 10% 8% 7% 1% Source: The Tarrance Group, 2007 / N=1,000 Registered Voters

3 It s the Buildings ENERGY CONSUMPTION= BURNING FOSSIL FUELS= CO 2 EMISSIONS= GLOBAL CLIMATE CHANGE Emissions by Sector

4 Energy Use by Sector Major Cities CO 2 Commercial Buildings account for 79% CO 2 emissions New York

5 Energy by Fuel Source Electricity Natural Gas Residential Commercial Buildings Coal Industrial Petroleum Transportation Natural Gas and Sources 58% of end-use energy operating buildings is consumed "on site", burning oil, natural gas or propane to power boilers, furnaces or hot water heaters

6 Electricity & GHG Emissions Average Life of a US Building is 75 years Emissions & Electricity Generate & transmit 67% Consumed at building 33% Only 33 percent of fuel s embodied energy is consumed at the building site as electricity.

7 Preventing Emissions Many energy-efficiency options cost less than $50/ton CO 2 e Cheaper to integrate efficiency into new buildings So what are we doing

8 Industry Goals President Obama & Industry leaders are working together to set aggressive targets Challenge AIA USGBC BOMA US Government EPA ENERGY STAR Sustainable Practice BOMA: targeting financial incentives encourage property owners to make 20 % percent energy cuts to their buildings. AIA Sustainable Practice: architects accept responsibility for creating the built environment and to join in to change the course of the planet s future.

9 Economic Stimulus Bill President Obama s economic stimulus triple play: Employment, Energy and Environment. Transparency Accountability Role of ENERGY STAR Product Specifications Homes Rating Commercial Building & Industrial Benchmarks and Label Commercial Building Design Target & Rating

10 ENERGY STAR EPA Energy Rating & Certification Transparency Accountability Best Practices Energy Management EPA Energy Performance Statement

11 States Jump Start Efficiency Michigan Ohio Utah California Minnesota Texas New Mexico District of Columbia Commercial Building Design An action plan that translates design intent to operational performance.

12 50% 50% of What? Commercial Building Energy Consumption Survey (CBECS) Regionalized and type specific Measured in kbtu/sf/year Target Finder/Portfolio Manager Ratings/Targets for energy use

13 EPA Performance Targets Fuel Efficiency MPG Energy Performance Rating kbtu/sf/yr EPA Energy Performance Rating How to Use Target Finder: Set target for energy performance OR Set target for percent energy reduction THEN Target Finder determines total annual energy use intensity (kbtu/sf)

14 EPA Energy Performance Rating EPA Target Finder 11 Building Types Normalizes Climate/weather Building size Occupancy density/schedule Document design energy use, cost & CO 2 CBECS National Averages

15 Target Finder: Set Energy Goal CBECS database scale Benchmark based performance targets ENERGY STAR > Challenge/AIA Goal Percent better than average building Other Space Types

16 Challenge for Architects a glass box in phoenix form follows function. mimicking desert forms Design Strategies Bioclimatic Design Size (# floors) & orientation Massing/envelop Passive: heat, cool & daylighting Glazing Efficient lighting system & HVAC system design Energy Source & Cost Carbon Neutral

17 Energy Codes Codes serve an indispensable role Modeling is an important tool Modeling a design to a code compliant baseline (ie 30% better than code) Doesn t accurately predict performance Doesn t provide an explicit target Doesn t facilitate measurement/feedback Target Finder: Evaluate Design Energy Energy Model & BIM software Check energy use early Compare design alternative Check design energy in TF

18 Energy Modeling Use comprehensive design & modeling tools Autodesk: Green Building Studio Enables parametric studies on whole building energy use Input schedules & equipment efficiencies; not defaults Model/estimate energy use of domestic hot water, exterior lighting, elevators, plug & process loads, operating schedules and occupants effect on systems Determine whole building energy use Calculate annual totals for electricity and natural gas or other energy sources Target Finder: Design Rating

19 Document Energy Design Intent Building Operations You can t manage what you can t measure

20 Challenge: Building Owners Reduce Energy Use, Cost & Dependence Increase asset value Prevent Greenhouse Gas Emissions Why Buildings Don t Perform Technology Performance Exceeding Code Confused with Performance Energy Use Documentation Lacking Metrics Difficult to Understand Limited Follow Through

21 Performance vs. Code <- Measured Losses Measured Savings -> 100% 75% 50% 25% 0% -25% -50% -75% -100% 0% saving more than expected saving less than expected 25% 50% 75% Proposed Savings % 100% Certified Silver Gold-Platinum These buildings use more energy than the code baseline! EPA Rating for LEED Bldgs

22 Simulation v. Actual Electricity Natural Gas Measured Performance Energy Use Intensity EPA Energy Performance Rating: 45

23 Distribution of Building EUI Similar Buildings Perform Differently Energy Intensity of Office Buildings Number of Buildings EPA Rating & Best Performers Energy Intensity (kbtu/ft 2 -year) Worst Performers EPA Energy Performance Rating: 75 or EUI 65.7 kbtu/sf/yr Post-Occupancy Follow Through EPA s Portfolio Manager Compares to CBECS 12 consecutive months of energy data Imports real weather data Output data Percentile ranking (1 100) Energy & CO 2 reduction Rating calculations: source energy GHG Establish baseline & track improvements Energy & CO 2 Water LEED-EB Energy & Atmosphere prerequisite/points

24 EPA Portfolio Manager EPA E-grid Emissions Chart ELECTRIC FUEL MIX (%) Coal 34.4 Oil 0.3 Gas 10.6 Nuclear 3.6 Hydro 49.0 Biomass / Wood 1.2 Wind 0.5 Solar 0.0 Geothermal 0.3 Other fossil fuels lbs CO 2 /MWh

25 LEED EB & EPA Energy Rating ENERGY STAR Rating LEED for Existing Buildings: O&M Points N/A Document Energy Performance

26 Start to Finish: EPA Rating The Business Case Investors are willing to pay more for energy efficient buildings.

27 The Business Case Investment Decisions Shareholder Resolutions Lending & Financing Operating Policies Real Carbon Reductions

28 Real Estate & Green Building Labels Type of label matters in the marketplace: ENERGY STAR has significant effect by reducing energy use; investors pay more for energy efficient buildings. ENERGY STAR buildings yield 3.3 percent higher rental rates than other green buildings. Net rental contracts tenants pay higher rent for energy efficient buildings. 10% decrease in energy use = increase in rental rates by nearly 20 basis points (0.20%) over above the 6% premium for labeled building. On average: $1 of energy savings = $18 dollars in increased market value. Source: Institute of Business & Economic Research The Business Case

29 Sales Price/SF Occupancy Rates

30 Direct Rental Rates E 2 Value Proposition

31 Portland Energy Showdown 2007 with BOMA Energy Efficiency Program (BEEP) Recognized superior energy efficiency office buildings EPA Portfolio Manager to tracked energy use for program awards Showdown winners cash prizes ENERGY STAR label properties engineering certification funded by Energy Trust of Oregon. 200 Market Building, managed by Russell Development Company HINES Real Estate Developer Hines Press Release ENERGY STAR sends signal to investors of green buildings validates green investments Design & Portfolio Properties

32 EPA Recognition Designed to Earn the ENERGY STAR ENERGY STAR Building Label ENERGY STAR Challenge Annual Awards AIA Convention Gallery Online case studies Designed to Performance EPA Region 8 Office Building Denver Kinard Junior High Fort Collins Rice Elementary Fort Collins

33 EPA Recognition Projects that achieve a 75 rating or higher Projects that meet 2030 Challenge Summary Reduce Greenhouse gas emissions now Architects & engineers are critical Use EPA s Target Finder/Portfolio Manager for easy performance comparisons Leverage business success Be recognized for energy-efficient design

34 Contact Information Karen Butler, US EPA Jared Silliker, The Cadmus Group, Inc Web Site: General Questions: 17 March 2009 projects due for AIA