ENERGY STAR Jean Lupinacci, Director ENERGY STAR Commercial and Industrial Branch Climate Protection Partnerships Division US EPA

ENERGY STAR Reduce greenhouse gas (GHG) emissions through large win-win- win opportunities with today’s energy efficient technologies and practices –30% savings in many buildings, homes, and facilities Provide credible information to buyers to –reduce transaction (research) costs –reduce perceptions of risk –enhance investment in efficient technologies and practices Work with the marketplace to build on motivations of important individual actors

Build Upon Intersection of Market Interests Consumer Preferences Environmental Protection Manufacturer/Retailer Interests Utility Program Sponsor Interests Complement Codes and Standards, other Policies Consumer is Key

Broad Strategies Residential Commercial / Industrial Labeled Products Corporate energy management products / 1400 manufacturers -- benchmarking, goals, upgrades % more efficient (management, systems more than widgets) Labeled New Homes -- whole building labeling for excellence -- 30% more efficient Home Improvement Labeled Products Services -- for plug loads -- not system components -- beyond products -- ducts / home sealing Small business initiative -- whole home retrofits

Success to date Started in 1992; now the government backed symbol for energy efficiency In 2005, Americans, with help of ENERGY STAR: saved $12 billion on energy bills prevented ghg emissions equal to 23 million cars ENERGY STAR recognized by over 60% of Americans

To date More than 1.5 billion ENERGY STAR products have been sold to date. More than 2,500 builders have constructed over 360,000 ENERGY STAR homes. EPA’s Energy Performance Rating System has been used to evaluate more than 21,000 buildings; 20% of office buildings, 13% percent of schools, 21% of supermarkets, 34% of hospitals, 9% of hotels have been benchmarked. More than 2,000 buildings have earned the ENERGY STAR.

Commercial Building Opportunities Many cost-effective improvements –efficient building uses 40% less than average buildings –paybacks of less than 3 to 5 years Focus on: Whole Building Performance –promote integration of systems –about energy savings -- not presence of new technology –achieve twice the savings for a given investment Performance Measurement System –can not manage what you can not measure –fix missing market information how to measure efficiency / performance when is a building efficient –provide information linked to real market transactions (like energy bills)

ENERGY STAR Challenge National campaign focused on building energy efficiency– promote 10%, 20%, 30% improvements and strategic energy management Launched in March 2005 Now supported by ~50 leading associations and states across all sectors (more than half of US states) Creating national call to action to reduce energy use in all building sectors: K-12 Schools Higher Education State and Local Government Commercial and Corporate Real Estate Healthcare

A Changing Landscape Increases Importance of Energy Efficiency Energy consumption and costs are rising Market volatility is increasing risk and uncertainty Managing the risk of climate change is becoming a reality for many organizations. Trend toward green building is not necessarily leading to energy-efficient buildings

Energy Efficiency Smart Business Taxpayers benefits from cost-effective reductions: ENERGY STAR qualified offices demonstrate: –35% less energy use –$0.50 per square foot less to operate –Energy performance persists over multiple years –Designing to earn ENERGY STAR helps high performance green buildings stay within conventional construction budget

Energy’s Role in Green Building  Energy efficiency should be foundation for green building  Market assumes green buildings are energy efficient Studies now show that this is not necessarily the case  ROI for green buildings comes largely from energy  Large environmental benefits from reducing greenhouse gas and other air emissions.  Can’t rely solely on technology and code requirements for energy performance Problem: –“Better than code” is only weakly correlated to energy performance –Specific technologies do not guarantee energy performance

1 Worst Performers Best Performers Number of Buildings EPA Rating & Energy Intensity (kBtu/ft 2 -year) Normalized EUI for existing office buildings varies widely 30 kbtu/ft2 to 340 kBtu/ft2 Age and equipment not significant drivers of EUI Energy performance gap

Fuel Efficiency MPG Is 10 MPG high or low for an automobile? Energy Performance EPA Rating Is 80 kBtu/SF/YR high or low for a building? Simple Energy Metric

Normalize Building Energy Consumption from bills –Weather, hours, occupant density, plug load –Whole-building “mpg” rating Compare –Benchmark against similar buildings in national stock –Receive score Reward: –Buildings in top 25% qualify for the ENERGY STAR –Buildings with intent to perform in top 25% designated “Designed to Earn ENERGY STAR. –Organizations with portfolio improvement 10, 20, and 30 point qualify as ENERGY STAR Leader EPA’s Energy Performance Rating System

Building types with ratings: –Office Buildings: Courthouses Bank branches –K -12 Schools –Supermarkets/Grocery Stores –Hospitals –Hotels/Motels –Medical Offices –Warehouses –Residence Halls/Dormitories Simple Energy Metric

ENERGY STAR Estimate Energy Use at Design –Target Finder Verify energy use in operation –Portfolio Manager Reduce energy across portfolio –ENERGY STAR Guidelines for Energy Management

EPA Provides Energy Management Guidance ENERGY STAR’s Guidelines for Energy Management: Organization-wide commitment to continuous improvement “Best practices” from top ENERGY STAR partners.

EPA Provides Management Tools Establishing Organizational Commitment Partnership Letter Communication resources Measuring Energy Performance Objective, accessible, 3rd party rating system Demonstrating Financial Value Calculators to estimate earnings/share, asset value, cost of delay Analysis to confirm financial performance link Recognition for Leadership ENERGY STAR Label, Awards

EPA Provides Technical Guidance Technical Guidance to make building more efficient: –Building Upgrade Manual for existing buildings –New Design Guidance –Operations and Maintenance Reports –Case Studies/Registry of Energy Star qualified buildings –Monthly networking meeting

New Model for Achieving Green and Energy Efficiency Guiding Principles for Federal Leadership in High Performance and Sustainable Buildings focus on performance: –Establish whole building performance target: Design to Earn ENERGY STAR –Reduce energy cost budget 30% from ASHRAE Increase efficiency of components –Measure and verify energy use Compare to design target Use EPA’s energy performance rating

ENERGY STAR Can Help

Opportunities to Integrate ENERGY STAR Use EPA’s Energy Performance Rating System to benchmark and set improvement goals Formally incorporate performance targets into: –Leases –RFQs, RFPs –Energy Services Agreements, and –New building contracts with architects and builders.

energystar.gov

…it’s not on a sustainable path. If it’s not energy efficient …