ENERGY STAR for Commercial Buildings – A Best Practice in Energy Efficiency Alyssa Quarforth ENERGY STAR Commercial Properties September 25, 2008

3 Take Away Points  Benchmark, Benchmark, Benchmark!  Don’t forget the importance of O&M  Be proactive through voluntary efforts

A voluntary public-private partnership program A strategic approach to energy management Energy efficient practices and products ENERGY STAR is…. Recognized by over 70% of Americans An internationally recognized brand Also recognized in Australia, Canada, Europe, and Japan

ENERGY STAR for Commercial Buildings  Nearly 30 percent of Fortune 500 companies are ENERGY STAR partners  Over 71,000 buildings, representing about 9.5 billion square feet of space, have measured their energy performance with ENERGY STAR  On average, ENERGY STAR buildings use 40 percent less energy than average buildings and emit 35% less carbon emissions  CoStar reports “ENERGY STAR office properties gross higher rents and higher occupancy rates than their non- ENERGY STAR counterparts.”

Success Stories PepsiCo has saved more than $250 million since the inception of its corporate energy management program in 2000 Transwestern has invested $68 million in energy efficiency upgrades while increasing the asset value of its building portfolio by nearly $750 million Food Lion’s energy savings since 2000 are equal to the energy needed to power 450 virtual stores, as if 37% of its chain uses no energy at all Davenport Community School District reduced the annual energy cost per student to $88 compared to the national average of $181 per student Marriott’s savings in 2006 equal a reduction in operating costs of 10 cents per occupied room night

Energy as a Percentage of Total Office Building Operating Expenses Data based on BOMA Experience Exchange Report (Average of Urban & Suburban Non-Government Buildings)

ENERGY STAR Provides a Standardized Metric ENERGY STAR Energy Performance Rating…  Provides a standardized, comparable metric of whole building energy performance  Compares the energy efficiency of one building against the energy efficiency of a representative sample of similar buildings (according to CBECS survey)  Uses a simple “score” where 50 is an average building  Normalizes for factors such as weather, occupancy, operating hours, and other building-specific characteristics

Benchmarking becomes a business practice – setting priorities Invest Tune Reward & Learn 25 Invest & Tune 8 High scoring buildings provide lessons learned and label candidates RCx & O&M improvements yield savings and label candidates Best investment opportunities are in lower quartiles - greatest potential for improvement Energy Performance Rating

Five Stage Approach Equipment Controls Occupants’ Behavior Benchmark to show cost, energy and carbon emission savings O & M Lighting Use a staged approach Benchmark  Benchmark 

Other Opportunities with Portfolio Manager: Set baselines and target ratings, monitor progress toward goals and impact of energy and water efficiency improvements Manage applications for ENERGY STAR labels and building profiles Track carbon inventory Perform financial and environmental assessment of behavioral changes and capital improvements (BUVC) Monitor impact of property manager performance Demonstrate increased value to clients and tenants

Fuel Efficiency MPG Is 18 MPG high or low for an automobile? Energy Performance EPA Benchmarking Is 80 kBtu/SF/YR high or low for a building? Is Your Building Performing Well?

Myth #1: Age Matters My building is new, so I know it’s energy efficient.

1 Worst PerformersBest Performers Number of Buildings Top performing buildings use 3 to 4 times less energy per ft 2 than the worst performers. Newer buildings are equally represented across all quartiles. Based on a sample of 4,000 buildings nationwide % of buildings with a rating of 75 or better are less than 25 years old 42% of buildings with a rating between 25 and 74 are less than 25 years old 35% of buildings with a rating between 0 and 24 are less than 25 years old EPA Performance Rating & Energy Intensity (kBtu/ft 2 -year) New Doesn’t Always Equal Efficient

Myth #2: Technology Matters I installed energy efficient technologies, so I know my building is energy efficient.

Technology does not guarantee energy efficient performance Note: “CBECS” is the Energy Information Administration’s Commercial Building Energy Consumption Survey, Technology Doesn't Always Equal Performance... 0% 25% 50% 75% 100% VAV EMS Economizer VSDs Motion Sensors Energy Audit ENERGY STAR kBtu/ft2/yr CBECS Bottom 25% kBtu/ft2/yr `

If you’re still not convinced that benchmarking energy use is a good idea…

20 Similar Buildings – 20 Different Energy Use Patterns 20 Similar Buildings – Different Energy Use

Improving Operations and Management Strategies 1900 K Street, Washington DC  New Construction (1996) with energy efficiency in mind but oversized equipment  EPA Rating  In 1999  32  In 2006  78  Harnessed building automation systems to improve efficiency  VFDs on chillers to match measure demand  Improved operating standards – static pressure set points  Continuous tracking of energy use using EPA’s rating system  Improvements to lighting systems  Savings reflect synergy between building technology and energy management practices

Making the Most of the Staged Approach International Square Case Study Lighting retrofit and new VFD’s first As a result of the reduced heat load, two 3,800 ton chillers were replaced with two 3,400 ton chillers CostCost / sfAnnual Savings Annual Savings / sf PaybackROIAsset Value Increase Annual Energy Savings $577,39761¢$241,50026¢2.4 years42%$3 mil3 mil kWh ENERGY STAR Energy Performance Rating = 84

Current Legislation Be proactive and ahead of legislation….. Current Legislation including Energy Star benchmarking (examples): –State of California: Bill AB 1103 –District of Columbia: The Green Building Act of 2006 –State of Illinois: Senate Joint Resolution 27 –State of Ohio: Executive Order –State of Minnesota: The Next Generation Energy Act of 2007 –City of Denver, CO: Mayor's Executive Order 123 –Borough of West Chester, PA: Borough Ordinance –State of Virginia: Executive Order 48 –State of Michigan: Executive Order

Washington, D.C. – Mandatory Benchmarking and Disclosure for Existing Buildings Clean and Affordable Energy Act of 2008 All privately-owned buildings shall be benchmarked annually using the Energy Star® Portfolio Manager benchmarking tool... Benchmark and Energy Star® statements of energy performance for each building shall, by January 1 of the following year, be made available to DDOE. DDOE shall, upon the receipt of the 2nd annual benchmarking data for each building, make the data accessible to the public via an online database. 01/ pdf

Get Started Now Start benchmarking with Portfolio Manager ( ) Share your information DC BID and BOMA Master Account Sign up for your next training ( ): –Oct 8 th 1pm: Office Buildings – Rating Energy Performance with Portfolio Manager –Oct 15 th 1pm: Commercial Real Estate – Best Practices in Energy Efficiency ENERGY STAR Quantity Quotes ( )

Further Questions? Alyssa Quarforth Program Manager ENERGY STAR Commercial Properties Climate Protection Partnerships Division, US EPA questions to: Visit our website: Contact Information