2. What is your Energy Level? Residential and Commercial Energy Ratings Garbett Homes of Salt Lake City, Utah Photograph by: Orlo Stitt

3. Sandra K. Adomatis, SRA, LEED GA Adomatis@hotmail.com Adomatis Appraisal Service Punta Gorda, Florida Consultant with Advanced Energy, Raleigh North Carolina http://www.advancedenergy.org/

4. Objectives Review the reasons the market’s view of energy is changing Describe the physical traits of energy efficiency Identify Energy Modeling Programs List documents supporting energy rating

5. Energy Efficiency Energy efficiency is “using less energy to provide the same service”. Turning off a light is energy conservation, not energy efficiency. http://eetd.lbl.gov/ee/ee-1.html http://eetd.lbl.gov/ee/ee-1.html

6. Remember ….. “Let’s Get Physical!” Olivia Newton John Let me hear your building talk!

7. NAHB consumer survey found 51.8% of residential consumers found the term energy efficiency as positive. How important is energy efficiency to the residential user? NAHB Research Center 400 Prince George’s Blvd Upper Marlboro, MD 20774 800.638.8556 www.nahbrc.org

8. Why is energy efficiency such a big deal? Government Mandates TAJ –First Draft Exposure Valuation of Green Bldgs Oil Crisis Market Transformation

9. The term market transformation is the strategic process of intervening in a market to create lasting change in market behavior by removing identified barriers or exploiting opportunities to accelerate the adoption of all cost-effective energy efficiency as a matter of standard practice. http://www.aceee.org/portal/market-transformation

10. http://www.imt.org/resources/detail/save-act-fact- sheet

11. Benefits of energy efficiency Reduce expenses CoStar Group – July 28, 2010, reports energy-efficient retrofits of commercial buildings has the potential to return twice as much in savings to owners and tenants as they require in investments.

12. Commercial A much easier sell – because – The investor cares about the bottom line...... Lender accepts income approach as the norm…. – Lower utilities = higher net income

13. Case Study on 250,000-square-foot office building Energy Star Portfolio Manager Estimated Cost $2,000 Full-blown energy assessment estimated cost $5,000 to $10,000 5-Year costs for ES Portfolio Model and 1 energy assessment *ES=Energy Star $10,000 to $20,000 Energy Assessment might identify HVAC and lighting upgrades at estimated cost $450,000 Utility supports a third of upgrade costs for net cost of approximately $300,000 Energy Assessment might identify behavior changes to save 3% of energy cost $30,000 savings Source: http://blog.groomenergy.com/ Author Jon Guerster April 15, 2013http://blog.groomenergy.com/

14. Case Study on 250,000-square-foot office building Earnings before upgrades$4.7 Million Earnings after upgrades$4.9 Million After improvements building is worth approximately $2.4 Million more than before upgrades and assessments If owner does not make upgrades but does assessment, it will still likely save $30,000 Income Taxes reduced using Federal EPAct accelerated depreciation Is it worth knowing your energy level? Source: http://blog.groomenergy.com/ Author Jon Guerster April 15, 2013http://blog.groomenergy.com/

15. Residential Does the market care? – In California, new homes may be required to meet net-zero energy level by 2020 Will the underwriter accept energy efficiency as an element of comparison? – Depends

16. Residential Case in Point Residential PropertyIowa Living area6,800 square feet Age of structure7.5 years Heating/cooling sourceGeothermal Cost of geothermal after incentives $5,609/when built Range of monthly utility bill over 7. 5 years $52-to-$106 Maintenance issues with geothermal None

17. Residential Rating Systems Measuring Sticks

18. HERS Index Performed by Home Energy Raters (HERS Raters) trained and qualified through RESNET. http://www.resnet.us/certified-auditor- rater

19. Energy Audit versus Energy Rating Energy Rating provides a comparative analysis on how energy efficient a home is when compared to other similar homes. Provides a HERS Index score and uses diagnostic testing Energy audit (aka energy assessment) pinpoints where and how a home is losing energy, which systems are working efficiently, and measure what cost-effective measures can be taken to rectify the situation. Does not provide a HERS Index score and does NOT use diagnostic testing

20. Energy Audit versus Energy Rating Austin City Council has a new mandate for all homes older than 10 years to have an energy audit before selling a home. http://www.energystar.gov/index.cfm?fuseaction=pt_awards. showAwardDetails&esa_id=3649

21. MPG rating for homes – Standardized method for assessing the energy performance of a home’s major energy systems and envelope Low cost service – Takes about 15 minutes if in concert with other assessment; less than 1 hour if stand-alone – Not intended to replace a full energy audit or diagnostics

22. HES Score http://www2.eere.energy.gov/buildings/residenti al/hes_research.html#webinars Home Energy Score Partners –Local and state governments, utilities, non-profits, and other home performance industry organizations Qualified Assessors –Must be certified as BPI building analysts or HERS Raters –Must also pass a 2-part DOE exam (free, on-line, proctored by a Home Energy Score Partner) Homeowner Report –Asset Score (given standard operating assumptions) –Home Facts: List of data collected by a Qualified Assessor –Recommendations for improvements

23. DOE is continuing to recruit Partners to implement program –Score at least 200 homes per year –Fulfill DOE’s quality assurance requirements (re-score 5% of homes) 30 organizations have signed on to be Home Energy Score Partners

24. Energy Performance Score (EPS) - A MPH Rating for homes http://energy-performance-score.com/ Provides a standardized assessment of a home’s energy use and associated carbon emissions. The EPS allows for one homes energy use comparison to another without the influence of varying occupant behavior.

25. HERS Insulation Installation Rating Grade 1 – The best – installed per manufacturers instructions. Grade II- The second best – Has some gaps Grade III – The lowest grade – Has substandard gaps and voids. http://www.greenbuildingadvisor.com/blogs/dept/building-science/grading-installation- quality-insulation

26. Envelope Sealing Rating Air Changes Per Hour (ACH): The movement of a volume of air in a given period of time; if a house has one air change per hour, it means that the air in the house will be replaced in a one-hour period. http://www.seattle.gov/dpd/GreenBuilding/R esources/Greenbuildingglossary/default.asp

27. http://hespro.lbl.gov/pro/

28. Green Button http://www.greenbuttondata.org/

29. Residential Energy Documents HERS Index Report – full report Green Score and worksheet Complete Energy Audit Res. Green & Energy Efficient Addendum HES Score

30. Actual Utility Bills Are they the most reliable document for developing energy costs of the residential or commercial use building? Why or why not?

31. Physical signs of energy efficiency Landscaping Site orientation Energy efficient equipment Window types /shades/ skylights /solar tubes Overhang Renewal energy equipment Timers/ programmable equipment /dashboards Maintenance history

32. Commercial Energy Ratings Measuring Sticks

33. https://buildingdata.energy.gov/about DOE Buildings Database The Database includes information on the energy use, environmental performance, design process, finances, and other aspects of each project. Members of the design and construction teams are listed, as are sources for additional information. In total, up to twelve screens of detailed information are provided for each project profile. Projects range in size from small single- family homes or tenant fit-outs within buildings to large commercial and institutional buildings and even entire campuses.

34. Commercial Energy Benchmark A first step Social driver to change occupant habits Changing occupant habits reduces usage increases net income increases value

35. ENERGY STAR Portfolio Manager provides Statement of Energy Performance, including – Benchmark Score (statistical ranking) 70 means your building ranks in the 70 th percentile of similar buildings in terms of utility usage – Based on actual utility bills and current operations – 100 point scale based on regression developed using CBECs data

36. Energy asset rating provides a standard report including -Current score and potential score Buildings with the same current score may have different potential scores. -Uses EnergyPlus model to predict EUI given standard set of operating assumptions -Scale still under development Adjusted for climate to allow comparison across U.S. Adjusted for building type

37. Asset Score No requirement for utility bills Not comparing to CBECS or other building database Allows comparison of buildings given standard assumed operation Asset Score No requirement for utility bills Not comparing to CBECS or other building database Allows comparison of buildings given standard assumed operation Energy asset rating

38. EUI EUI – Energy Use Intensity, is a unit of measurement that describes a building’s energy use. EUI represents energy consumed by a building relative to its size. (Total energy consumed in 1 yr in kBtu/total floor space of building) Source: http://www.energystar.gov/index.cfm?fuseaction=buildingcontest.euihttp://www.energystar.gov/index.cfm?fuseaction=buildingcontest.eui

39. Areas with Energy Benchmarking Programs City/StateYear Implemented Austin, TX2011 Minneapolis, MN2013 New York City, NY2012 Philadelphia, PA2012 San Francisco, CA2011 Seattle, WA2012 Washington DC2013 California StateSept 1, 2013 Effective Washington State2009

40. http://www.phillybuildingbe nchmarking.com/index.php/ benchmarking/

41. The ordinance states that buildings over 50,000 square feet will be required to receive an EPA Energy Star Score, track and verify their energy consumption. The proposed compliance dates are: Commercial and Municipal Buildings: 6/2014 for those larger than 250,000 square feet 6/2015 for those between 50,000 and 250,000 square feet Residential Buildings: 6/2015 for those larger than 250,000 square feet 6/2016 for those between 50,000 and 250,000 square feet After one year of compliance, the city would be able to publish individual building performance data, adding a public incentive for owners to improve efficiency. Exempt from the law are industrial facilities, storage units, hazardous use units, as well as certain newly constructed units and those that are facing financial distress. Chicago Proposes Energy Benchmarking Law for Buildings July 2013 http://www.cityofchicago.org/content/dam/city/progs/env/SustainableChicago2015.pdf

42. http://apps1.eere.energy.gov/buildings/tools_directory/doe_sponsored.cfm

43. http://www.gbig.org/collections/4022/activities?view=map Green Building Information Gateway -GBIG

44. http://www.usgbc.org/DisplayPage.aspx?CMSPageID=2201

45. 45 I Energy Asset Scoreeere.energy.gov Energy Asset Score Energy asset score reflects the as- built physical characteristics of a building and its overall energy efficiency, independent of occupancy and operational choices. The physical characteristics include –Building envelope (window, wall, roof) –HVAC system (heating, cooling, air distribution) –Lighting system (luminaire and lighting control systems) –Service hot water system –Other major energy-using equipment (e.g. commercial refrigerator, commercial kitchen appliances, etc.) Energy Asset Score Building energy use is affected by many factors.

46. 46 I Energy Asset Scoreeere.energy.gov Relevance of Asset Score Buildings #1 and #2 have similar ENERGY STAR scores, but widely divergent asset scores. Used together, an energy asset score and an energy benchmark can inform the decisions of a building owner, operator, buyer, or lessee. Asset Score links to PMS. Good energy assets Poor operation May be a candidate for low-cost operational improvements. Poor energy assets Good operation Low asset score may highlight need to replace outdated equipment or prepare for replacement costs in the near future. Equivalent ENERGY STAR Portfolio Manager Score O&M/ Occupant Behavior Energy Assets Building #1: High Asset Score Building #2: Low Asset Score

47. 47 I Energy Asset Scoreeere.energy.gov Energy Asset Scoring Tool User clicks “Score Building” and receives Energy Asset Score Report EnergyPlus engine used to estimated energy use intensity (EUI) and generate an asset score based on the building envelope, mechanical and electrical systems, and other major energy-using equipment. – similar to Home Energy Score for Res. Provides building system evaluations for building envelope, service hot water, HVAC, and lighting systems. Identifies cost-effective improvements. Provides an additional "after upgrades” score that demonstrates the potential energy impact of the recommendations.

48. 48 I Energy Asset Scoreeere.energy.gov Required to generate score and report Inference engine generates default values for a few fields Users provide data for as many of the additional fields as they choose Data Requirements Users can enter different amounts of data to receive results of varying degrees of specificity for their building. Verified Advanced Simple Detailed inputs with validation by qualified party More detailed input set Basic minimum data needed Anyone can do Will likely require a qualified professional to verify and submit the data Intended to support public statements about building asset Not available during pilot Requirements still TBD

49. 49 I Energy Asset Scoreeere.energy.gov Levels of Use Preliminary Simple or Advanced LevelVerified Level (still under development) Step 1Collect & input data using energy asset scoring tool Will require greater amount of data as well as verification by a qualified professional Step 2Submit data onlineSubmit for rating online Step 3System infers values that user leaves blank Limited inferences allowed. Step 4Receive preliminary energy asset score report – new or existing bldg Receive verified energy asset score report For building owner or operator’s information For appraisal, real estate transaction, or public display Verified

50. 50 I Energy Asset Scoreeere.energy.gov Recent Program & Scoring Tool Improvements Refined data requirements based on sensitivity analysis Redesigned user interface based on 2012 Pilot feedback and user-centered research – Added detailed on-screen user help throughout tool-– Live demo on line Created multi-block function for mixed-use buildings and buildings with complex geometries, envelope properties, and HVAC systems Added greater variety of use types – Refrigeration areas not handled yet – 2012 Pilot: office, school, retail, warehouse only – 2013 Pilot: 2012 Pilot use types + lodging, multifamily, library, courthouse, mixed use (can also include senior center, city hall, post office, medical office) Expanded HVAC options-provides more accurate score of mixed use Developed application programming interface (API) for third-party tools Added a link to Energy Star Portfolio Manager (ESPM) – Allows user to download building info directly from ESPM Improved weather adjustment methodology – Separately adjust for heating and cooling

51. 51 I Energy Asset Scoreeere.energy.gov 2013 Pilot Objectives Test new user interface including multi-block feature Collect data on wide range of buildings to assess 100-point scale and its application to different building types and climates Gather feedback on the data collection process and Asset Score Report Follow up with 2012 Pilot Participants on impressions of new Asset Score Report – All 2012 Pilot Participants will receive updated Asset Score reports for their buildings – 2012 Pilot Participants are welcome to add data and/or buildings as part of the 2013 Pilot Test API codes with third-party software developers Timeline Jul 1 – Sep 30: Pilot Participants collect data & score buildings using Scoring Tool – Throughout process, Pilot Participants are strongly encouraged to provide feedback to DOE via informal discussions, webinars, and on-line questionnaire Oct 1 – Dec 31: DOE analyzes data January 2014: DOE presents Pilot findings TBD 2014: DOE releases new version of Scoring Tool

52. 52 I Energy Asset Scoreeere.energy.gov Anticipated Program & Tool Updates (post 2013 Pilot) High Priority Improve user interface, scoring methodology, Asset Score Report, etc. based on 2013 Pilot feedback Allow users to pick energy efficiency measures and test how different scenarios affect “score with improvements” – Link to NREL Building Component Library Add Phase III use types – Focus on parking garage, food service; potentially include food sale and data center Customize user interface based on climate and use type Continue expanding list of HVAC systems and controls Add renewable energy data fields and calculations Continue to refine recommendations – Incorporate findings from Spring 2013 evaluation which compared the Scoring Tool’s recommendations with those of 2 professional auditors following onsite audits of 4 different buildings Secondary Improvements Allow users to enter their utility rates to evaluate efficiency upgrade options Add advanced lighting controls Develop user interface for utility program administrators Develop user interface for qualified assessors who provided “verified” score Link to other tools/database (DSIRE, OpenEI, Google Geocode, Google Map, Portfolio Manager)

53. 53 I Energy Asset Scoreeere.energy.gov Useful Links Energy Asset Score website http://www1.eere.energy.gov/buildings/c ommercial/assetscore.html Energy Asset Scoring Tool buildingenergyscore.energy.gov/ Asset Score Email Box asset.score@ee.doe.gov

54. Consequences of high and low performing buildings High utility costs / Lower net income Longer marketing periods Lower rents Could penalties assessed through additional taxes be next for inefficient buildings?

55. www.dsireusa.org

56. AI Green Resources http://www.appraisalinstitute.org/education/ green/default.aspx http://www.appraisalinstitute.org/education/ green/default.aspx Appraiser’s Guide to Identifying Green Building Features in a Home By Kathy Price-Robinson http://www.appraiserresearch.org/research-results/green-guide.html Advanced Energy – Knowledge Library http://www.advancedenergy.org/buildings/programs/energy_star/

57. http://www.appraisalinstitute.org/education/green/default.aspx

58. Sandra K. Adomatis, SRA, LEED GA Adomatis@hotmail.com