1 | Energy Efficiency and Renewable Energyeere.energy.gov Measuring the Impact of Benchmarking & Transparency: Handbook of Methods and the NYC Example June 18, 2015 Cody Taylor, DOE Sarah Zaleski, DOE

2 To Cover Today 1.Momentum of benchmarking policies and programs 2.Drivers of the Handbook 3.How to use the Handbook 4.Logic model of change and barriers 5.Handbook methods 6.NYC findings 7.Next steps 8.Other DOE benchmarking resources

3 Benchmarking Policies

4 Recently Published Resources

5 Drivers of Developing the Handbook Increasing number of benchmarking policies and programs around the country Cities and states need consistent ways to analyze the impact of these efforts Benefit of deploying these resources/tools soon, as they may impact program design Desire to establish baselines as early as possible Increasing interest in measuring the energy and GHG reduction impacts of efforts

6 Use of Handbook Intended to provide local governments and their partners with a “how-to-guide” with clear steps and data requirements Set of feasible, replicable, and defensible methods Both primary and secondary methods For use in the near (baseline collection), medium, and long term Recognition that foundational aspect of benchmarking policies are difficult to measure

7 Barriers Benchmarking Addresses Internal Barriers: Lack of owner or property manager visibility into, or focus on, the building’s energy use Market Barriers: Lack of transparency about energy performance among real estate professionals, tenants, investors, and underwriters External Barriers: Lack of broader market data to support efficiency program and policy design

8 Logic Model

9 Expected Market Changes Over Time

10 Methods Common Themes: Use data already collected through the B&T policies Relying on background and historical documents in the public domain Obtaining feedback from key stakeholders and partners Ways to Evaluate: Market transformation Energy use impacts GHG emissions impacts Job creation

11 Market Transformation Methods Logic model and market transformation indicators (MTIs) provide a method for assessing the degree to which the policy is: a)Changing market perceptions, structures and operations related to energy efficiency b)Motivating market actors towards increased energy efficiency in the overall market Survey and interview instruments are included in the Handbook

12 Gather Information on Market Transformation

13 Energy Savings Methods Gross Impacts: The change in buildings’ energy usage over time inclusive of actions taken to reduce energy consumption as well as their participation in other energy efficiency activities or programs.  Primary: Analysis of iterative EUI outputs from Portfolio Manager of reporting buildings 1.Identify baseline and reporting year 2.Determine which buildings have data in baseline and reporting year 3.Calculate average EUI by building segment for both baseline and reporting year 4.Calculate total gross impacts for all buildings through a weighted average 5.Repeat steps 1-4 for next annual increment 6.Sum gross energy impacts for each year to determine impacts over desired period 7.Develop analysis categories.  Secondary: Augmented analysis of iterative EUI outputs

14 Energy Savings Methods Net Impacts: The subset of measured gross energy changes attributable to the B&T policy. That is, the net savings after taking into account natural market forces, common practice, and the impacts from other local, state, federal, and utility energy efficiency programs and tax credit initiatives.  Primary: Historical tracing and structured expert judgment  Secondary: Quasi-experimental design such as regression discontinuity and comparison city

15 GHG Emissions Method GHG emissions data can be sourced directly from Portfolio Manager 1.Collect emissions data for baseline and reporting year in each building 2.Normalize emissions data by building floor area for each year 3.Calculate difference from this adjusted baseline

16 Job Creation Methods

17 NYC Example Local Law 84 Enacted in 2009 Buildings over 50,000 square feet Affects over 2.8 billion square feet First year of data collected in 2010 Chance to apply the Handbook methods

18 NYC Gross Energy Savings 5.7% source energy savings $267,492,147 estimated savings : 0.3% : 3.7% : 4.4%

19 Energy Savings by Building Type

20 Dollar Savings

21 NYC GHG Emissions Reductions

22 NYC Job Creation

23 Moving Forward Measuring the impact of policies can help to understand their success or failure and deciding whether to continue, expand, or replicate them Rigorously assessing energy efficiency impact of policies can help ensure that their contributions to state energy savings can be recognized Consider early interviews of key stakeholders at the time of policy initiation to set a baseline for measuring future market transformation Use the data collected through benchmarking to measure changes in energy performance over time Begin measuring relationship between energy performance and building valuation to set a baseline for future changes

24 Related DOE Resources SEE Action ( – Energy Benchmarking, Rating, and Disclosure for Local Governments Fact Sheet – Benchmarking and Disclosure: State and Local Policy Design Guide and Sample Policy Language – Greater Energy Savings through Building Energy Performance Policy: Four Leading Policy and Program Options – A Utility Regulator’s Guide to Data Access for Commercial Building Energy Performance Benchmarking Standard Energy Efficiency Data (SEED) Platform Better Buildings Energy Data Accelerator Uniform Methods Project

25 To Access Today’s Resources DOE’s State and Local Solution Center under Featured Publications Handbook transparency-policy-and-program-impact-evaluation-handbook NYC Report benchmarking-and-transparency-policy-impact-evaluation-report

26 Questions Cody Taylor - Sarah Zaleski - Jay Luboff - Ken Seiden -