British Columbia s Energy Efficient Buildings Strategy

Transcription

1 British Columbia s Energy Efficient Buildings Strategy Andrew Pape-Salmon, P.Eng, MRM Katherine Muncaster, MRM Erik Kaye Member ASHRAE ABSTRACT British Columbia s Energy Efficient Buildings Strategy established targets for significant energy and emission reductions in new and existing buildings by the year It promoted systemic market transformation through the introduction, adoption and eventual regulation of new energy efficient building designs, products and technologies, and ensures that demand-side management programs and government leadership, incentives and regulations lead to permanent changes in the market. This paper outlines key policy measures, estimates energy savings and identifies a framework for evaluating the Strategy s progress, including indicators of success. A quantitative analysis on current and planned energy efficiency measures indicated that the targeted 20% reduction in energy use per household can be met and that the 9% reduction in commercial and institutional energy use can be exceeded. The composition of savings was well-distributed across measures, with 38% relying on utility and government programs and rates and 50% from codes and standards. INTRODUCTION In 2008 the government of British Columbia (BC) released the second version of the Energy Efficient Buildings Strategy (EEBS) (BCMEMPR 2008), supporting the 2007 Energy Plan and 2008 Climate Action Plan that sets a greenhouse gas emission reduction target of 33% by The EEBS promotes energy efficiency through the introduction, widespread adoption and eventual regulation of energy efficient building designs and end-use technologies, leading to new codes and standards. An earlier version of EEBS (BCMEMPR 2005) set a foundation for voluntary action and stimulated significant investment into new programs that enabled market readiness for most of the regulations under the BC Energy Efficiency Act. This paper provides an overview of the market transformation measures established under EEBS by the provincial and federal governments, energy utilities and industry associations between 2005 and It also provides estimates of the associated percentage energy demand reductions projected for Finally, it presents a framework for evaluating the effectiveness of EEBS, along with indicators of success, based on a literature review of case studies from other jurisdictions. This evaluation will inform the development of a collaborative workplan for the provincial government, three major electricity and natural gas utilities, the BC Utilities Commission (the public utility regulator), local and federal governments and industry associations. This will support the achievement of the EEBS targets by 2020 (i.e., 20% reduction in energy use per household, 9% reduction per square meter of commercial/institutional floor space). MARKET TRANSFORMATION APPROACH FOR ENERGY EFFICIENCY The market transformation (MT) approach aims to create a permanent shift toward energy efficiency by setting a 5-10 year vision for energy performance, reducing market and institutional barriers and engaging key influencers, investors and program delivery agents on a collaborative workplan to achieve a common set of goals. In reality, each organization has Andrew Pape-Salmon is a Director of the Energy Efficiency Branch with the BC Ministry of Energy, Mines and Petroleum Resources. Erik Kaye and Katherine Muncaster are Senior Policy Advisors with the Energy Efficiency Branch.

2 independent goals and thus, the MT workplan aims to maximize institutional efficiency and prevent conflicting efforts. The EEBS (BCMEMPR 2008) was the policy document that articulated MEMPR s vision, mandate and workplan to advance MT, including regulations that led to permanent improvements in energy efficiency. The achievement of MT can be measured on the basis of the Five A s of Market Transformation (NRCan 2010), including the following indicators of success for an energy efficient product or building design: Consumer and industry awareness of the energy efficient product/design (e.g., are people aware of which home improvements will achieve the highest energy savings?). Product/design availability in both urban and rural areas (e.g., do window manufacturers in small cities have an ENERGY STAR qualified product line?). Accessibility for a broad range of market segments (e.g., is there a compact fluorescent bulb option for all types of light fixtures?). Affordability and cost-effectiveness (e.g., do new houses with an EnerGuide rating of 80 have energy savings that exceed incremental capital costs within a reasonable timeframe such as five to ten years?) Public and industry acceptance (e.g., do HVAC system designers generally agree that condensing boilers are sufficiently reliable to specify them?). MEMPR has facilitated the deployment of five distinct types of measures that support MT, as follows: 1. Information, branding and labelling raising awareness and acceptance among consumers and key influencers. For example, establishing a high-efficiency window standard, simplifying the message associated with the standard, establishing a brand so that it is easily recognizable (e.g., ENERGY STAR), and a labelling system that illustrates the benefits of the standard compared to its peers (e.g., U-value label). 2. Certification, training and demonstration improving industry capacity to provide energy efficient options, addressing product acceptance, availability and accessibility and improving quality and durability of goods and services. For example, BC invested in the Quality First training program for furnace and heat pump installers, run by the Thermal Environmental Comfort Association of BC, promoting appropriate sizing of heating equipment and ducting systems to reflect the size of, and heat loss from a house or building. 3. Pricing and incentives stimulating investment in energy efficiency, addressing awareness, availability and affordability to consumers. For example a consumer tax break or utility rebate connected with the construction of high-performance buildings. 4. Voluntary measures institutionalizing energy efficiency by supporting market leaders who voluntarily adopt energy efficient levels, providing economies of scale through large-scale procurement. For example, a builder that only specifies ENERGY STAR qualified windows in their houses. 5. Regulated standards - making energy efficiency universal through policy and regulatory measures, addressing all Five A s, raising the floor across an entire product line or building sector and ensuring that inefficient products are permanently phased out of the market. Nadel et.al., (2003) provided a comprehensive evaluation of MT efforts in the United States, considering 28 major initiatives of federal, state, regional and local governments over a decade and drawing the following conclusions: (pp ): It is important to enlist input, participation and support of major players such as equipment manufacturers and real estate management companies. Energy saving targets need to be achievable by industry, but sufficiently high to attract the interest of program operators (energy utilities, agencies, energy service companies). Attention needs to be provided to field performance of technologies, not just the metrics determined by manufacturers. Success often happens when efficient products and services can be differentiated from conventional ones by consumers, through certification such as ENERGY STAR or Building Operator Certification. The full range of benefits of products and services (e.g., improved student performance in energy efficient schools) need to be promoted, not just the energy savings.

3 Training can be provided to service providers and equipment salespeople. Incentives can help attract attention to, and address higher costs of new products, and can be reduced or ended when consumer awareness, widespread availability and salesperson and installer experience improves. Most successful MT initiatives are multi-pronged efforts that involve several different market interventions and multiple organizations that evolve through time. Programs must be kept simple for participants, such as a single efficiency specification (e.g., for motors). The product or service must be reliable. A companion ASHRAE conference paper (Pape-Salmon et.al 2010a) highlights the specific market transformation efforts for windows and glazing assembles in buildings. BUILDING STRATEGY MEASURES The Energy Efficient Buildings Strategy (EEBS) includes a number of government initiatives to improve the efficiency of buildings and energy-using equipment through programs and regulations. These are complemented by BC Hydro s extensive efforts under their Power Smart program, new conservation rates and the installation of digitally-operated smart meters for their customers by In addition, other energy utilities such as Terasen Gas and FortisBC have extensive demand-side management (DSM) programs. Finally, Natural Resources Canada s Office of Energy Efficiency administers the ENERGY STAR program in Canada and oversees national energy efficiency regulations for products and equipment, among other initiatives. Residential Sector Programs The LiveSmart BC: Efficiency Incentive Program provides a simplified approach for homeowners and residential landlords to access whole-house energy audits, advice on improvement options, incentives for upgrades and provision of an energy label. Provincial and utility rebates are provided through a single program for efficiency upgrades for space and water heating equipment, windows and doors, insulation, air tightness and the installation of renewable energy systems. The program also included access to federal government rebates which were phased-out in early Incentives for efficiency upgrades were determined on the basis of the greenhouse gas emission reductions. An energy model was developed using Hot2000 software to determine typical energy savings and emissions reductions compared with a reference house for two regions of the province. As of August 2010 over 47,000 participants had completed an energy assessment and received an EnerGuide label. About 29,000 had already completed energy efficiency improvements and a second assessment to confirm the savings. Over 150 certified energy advisors were working on house assessments. They would play a critical role for proposed policy directions such as energy labeling (see below) and air tightness testing for new construction if required in the BC Building Code. At the start of the program in 2008, only 30 energy advisors were trained. In order to stimulate significant investments in energy efficiency, new policies are being developed for energy labelling at the time of property transfer or sale. MEMPR has established pilot projects with utilities, local governments and regional Real Estate Boards to test the impact of energy labels on consumer behavior. Participants receive an extra incentive for their LiveSmart BC energy assessments if they agree to disclose their energy rating on the MLS listing and provide the assessment report to prospective buyers on request. An evaluation of pilot projects will be conducted in EEBS includes support for super-efficient new homes (that are designed to minimize purchased energy, including clean energy supplies on-site or in the community). Eight small developments with residential units are under construction. The Minister of Housing and Social Development challenged the construction industry to be building housing that is net zero for GHG emissions by 2020, with superior airtightness and insulation that will enable net zero energy performance through the addition of renewable energy generation such as solar panels (BCOHCS 2010). The Buildings Strategy focuses on incentives and consumer information as the initial stages of market transformation for homes in British Columbia, supporting changes in regulations outlined below.

4 Programs for Commercial, Institutional and Government Buildings EEBS aims to increase energy efficiency for buildings through government leadership for new construction and the existing public sector building stock of approximately 6,500 buildings, enabling utilities to undertake extensive DSM programs, support for building labeling and certification programs and market mechanisms such as conservation rate structures and smart meters. Specific examples of voluntary measures include: Developing and testing an energy performance benchmarking tool and labeling system; Supporting industry associations such as the Canada Green Building Council and the Building Owners and Managers Association (BOMA) BC to introduce energy evaluation, labeling and certification programs; Investing in training programs for energy managers and building systems operators to achieve energy savings through management, controls and occupant engagement delivered by BOMA and Douglas College; Installing energy information systems with real-time dashboards in several public buildings, to be used as a tool for engaging building occupants on energy conservation campaigns (see Owen et.al. 2010); Legislating carbon neutrality (net zero emissions) for operations of core government, Crown Corporations, health and public education organizations by the end of 2010 (and the majority of local governments by 2012) by tracking and reducing emissions and purchasing greenhouse gas offsets through the Pacific Carbon Trust; Implementing the Public Sector Energy Conservation Agreement with an electricity reduction target of 20% by 2020 and employing approximately 30 energy managers across the public sector organizations; and, Requiring all new government buildings and facilities to meet the standard of LEED Gold or equivalent certification, including use of BC wood products. A mix of voluntary measures, incentives and regulations characterize the market transformation approach to the commercial, institutional and government sectors, which reflect the diversity of the sector itself. This sector remains a challenge for energy efficiency programs due to the focus on short-term paybacks and frequent turnover of tenants. Innovative mechanisms are needed to address the spilt-incentive barriers in a sector where most energy users are tenants. Utility Regulatory Initiatives The Clean Energy Act (CEA) (Queens Printer 2010) established a new planning framework for BC Hydro to support economic development through clean energy. Under the CEA, BC Hydro is required to submit a long-term Integrated Resource Plan (IRP) that will consider B.C. s electricity needs over the next 30 years. This will support the Province s ambitious target of reducing the expected growth in demand for electricity by at least 66 per cent by the year 2020 through conservation and energy efficiency. The Province established a revenue-neutral carbon tax, valued at $20 per metric tonne in 2010, adding $1GJ of natural gas purchases. The CEA provides utilities with opportunities to recover costs for programs that reduce GHG emissions by switching to lower-carbon forms of energy and supporting charging infrastructure for low-or-zero emission vehicles (e.g. plug-in hybrids, natural gas buses and trucks). The CEA approach to energy efficiency and conservation is built on three pillars: 1. New and increased programs and financial incentives for businesses, industry and consumers 2. Conservation rates to provide incentives to use less electricity and save more money - Smart Meters, new energy pricing tools, large general service rate. conservation rate, industrial stepped rate 3. Improvements to the BC Building Code and energy performance standards for products and equipment under B.C.s Energy Efficiency Act. Public utilities are also required to develop demand-side management (DSM) plans to implement all cost-effective DSM opportunities for their customers under the Utilities Commission Act (UCA) (Queens Printer 2010). The BC Utilities Commission (BCUC) provides oversight via their review of resource plans that are typically submitted every 2 to 3 years (except for BC Hydro who will submit their plan to government), along with annual revenue plans and capital submissions for major investments. Cost-effective DSM must be considered before new supply-side measures and utilities must

5 demonstrate why any new supply requests cannot be met through increased DSM efforts. In 2008 the provincial government approved the Demand-Side Measures regulation (Queens Printer 2008) that defines cost-effectiveness for DSM and requires all utilities to include low-income and rental DSM programs in their resource plans, along with educational programs for K-12 and post-secondary institutions. Under this regulation, low-income DSM programs have an additional 30% non-energy benefit added to the traditional total resource cost test equation. This is to reflect the societal benefit in terms of reduced service cut-offs and increased health and well-being and productivity resulting from energy efficiency improvements to low-income housing stock. In a similar vein, the cost-effectiveness of DSM training, community engagement, technology innovation and educational programs (K-12 and post-secondary) must be evaluated at the level of a whole portfolio of DSM programs. This recognizes that energy savings cannot be directly ascribed to such programs, but are essential to the success of a utility DSM strategy as they help change societal norms and attitudes and build awareness of support for energy efficiency and conservation among British Columbians. Codes and Standards EEBS includes a strong emphasis on developing new regulations and performance targets by 2012 under the Energy Efficiency Act. Standards will be developed for windows and doors, high efficiency furnaces, commercial lighting, general service lighting, water heating systems, motors, standby losses of electrical equipment and residential appliances. Regulations typically have effective dates up to three years into the future to facilitate market readiness among a wide spectrum of players. BC s regulations are complemented by NRCan energy efficiency regulations that apply to products imported into BC, including standards for commercial heating, ventilation and air-conditioning systems and commercial refrigeration. In September 2009, new standards were introduced for light bulbs, residential water heaters and industrial motors. The light bulb efficiency standards take effect in January 2011 for 75 and 100 watt bulbs, a year ahead of the effective date for the Canadian federal regulations, and the new British Columbia standards for gas and electric water heaters are the first in North America for these products. As of December 31, 2009, all furnaces sold in Canada must have an efficiency (i.e., AFUE) of greater than or equal to 90%. The regulations for windows and glazing are covered by a companion ASHRAE conference paper (Pape-Salmon et.al. 2010a). The BC Energy Efficiency Act standards are based on the principles of market transformation and are developed in close partnership with energy utilities, industry and consumer stakeholders, and other levels of government. MEMPR strives to integrate its regulatory work with LiveSmart BC and utility programs, leadership measures and tax policy so that voluntary initiatives support the development and implementation of regulated efficiency standards. For example, 32% of BC Hydro s projected savings from its 2008 DSM strategy are achieved through codes and standards (BCH 2009). The BC Building Code (BCBC) applies to for new construction and major building retrofits, generally enforced by local government building officials. Since September 2008 the BCBC requires compliance with the ASHRAE 90.1 (2004) standard, applying to large and high-rise buildings (BCOHCS 2008). Low-rise buildings and houses are subject to prescriptive insulation standards. The BCBC will be amended by 2011 to require energy performance for housing that, combined with provisions under the BC Energy Efficiency Act, will be equivalent to EnerGuide 80 (BCOHCS 2010). EVALUATION AND ESTIMATED ENERGY SAVINGS The Energy Efficient Buildings Strategy (EEBS) set targets for the built environment: a 20% reduction in energy use per household, and a 9% reduction per square meter of commercial/institutional floor space, compared with These targets were estimated using the upper achievable energy savings listed in the BC Hydro Conservation Potential Review (Marbek 2007), for electricity, and a study for the Canadian Gas Association for natural gas (Marbek 2006). Achievable is meant to denote energy savings that have a net economic benefit and could be realistically implemented and adopted in the timeframe. Upper achievable represents savings that are possible with not only utility incentives, but also broader policy initiatives, aggressive codes and standards, and land use measures.

6 Energy Savings TJ/yr In 2009 MEMPR commissioned an analysis for internal purposes to determine whether existing and currently planned measures would meet the EEBS targets. The Pembina Institute (2010) was hired to produce a spreadsheet and report calculating savings for items listed in EEBS, the 2007 Energy Plan, the Climate Action Plan, and utility DSM plans. The study evaluated current and planned: BC Energy Efficiency Act standards for equipment and manufactured building components; BC Hydro's DSM programs and conservation (i.e., stepped) rates; Actions within the BC Climate Action Plan (e.g., carbon tax, Public Sector Energy Conservation Agreement); Terasen Gas' DSM programs; Building codes (BC and City of Vancouver); Federal (Natural Resources Canada) Energy Efficiency Act standards for equipment; LiveSmart BC program for existing homes; FortisBC's DSM programs; and, Additional measures in EEBS such solar thermal incentives and the Community Action on Energy and Emissions Program that promotes energy efficiency policies among local governments. Individual measures were categorized for data quality and policy certainty. 54% of total energy savings had high data quality and 63% had high policy certainty (i.e., likely to be implemented). The residential target of 20% reduction per home was met if all measures were included, but reached 10% if only high-certainty measures were included. The commercial target of 9% reduction per m 2 was greatly exceeded in both the all-inclusive and high certainty scenarios (28% and 25% respectively). This was due to an updated Business As Usual (BAU) scenario that had a higher consumption in 2007 compared to that assumed for the EEBS target (i.e., 1.95 GJ/m 2 versus 1.49), along with a 12% decrease in the BAU intensity instead of a 6% increase by The composition of savings was found to be well-distributed across measures, with 38% relying on utility and government DSM (programs and rates) and 50% codes and standards. Figure 1 illustrates the predicted savings from the measures, expressed in terms of annual Terajoules (TJ) of energy savings. Total savings are estimated at 21,211 TJ in the year 2012, 38,831 TJ in 2016 and 54,720 TJ in 2020 (Pembina 2010). Figure 1: Cumulative annual energy savings 14,000 12,000 10,000 BC EEA Regulations BCH DSM BC CAP (including BC's Carbon Tax) 8,000 6,000 4,000 2, Terasen Gas DSM BC & City of Vancouver Building Code Federal EEA Regulations LiveSmart BC FortisBC DSM 2007 Energy Plan & EEBS The outcomes projected from the analysis are dependent on supportive voluntary measures that make codes and standards politically and economically feasible. While few direct energy savings can be attributed to such measures as product labeling, industry training, and demonstration projects, the market transformation approach outlined in this paper suggests that these are a necessary precursor to any successful regulations. For this reason, a more holistic evaluation framework should be used to complement quantitative analyses.

7 Harmelink et. al. (2008) and Richerzhagen et. al. (2008) list a number of success factors for regulations, including: The standard has been justified on the basis of technology progress, life-cycle cost studies and market readiness. General acceptance of the merits of a standard and preparedness among industry players, supported by information campaigns, demonstration projects and skills-focused training programs. Sufficient mandate and resources within government (knowledge, capacity, time, budget, priority) to develop, implement and enforce (i.e., with adequate penalties for non compliance) the regulated standard. Regulations are coupled with innovation focused measures that encourage higher energy performance on a voluntary basis (e.g., rewards for leadership). More general success factors include: Independent implementing agency with a clear mandate (e.g., executive and political support), responsibility and adequate resources to implement the strategy. If this responsibility is shared across multiple agencies, coordination of efforts is paramount. Continuity of measures through a multi-year timeframe and budget, albeit with flexibility to respond to changing conditions and to integrate with complementary measures (e.g., climate action strategies). Extensive involvement of stakeholders (e.g., consumer organizations, industry influencers, public utilities, other governments) in the design and implementation of measures and strategies. Investments and sub-strategies that aim to support permanent market transformation and are designed with exit strategies and planned obsolescence as the market embraces new energy efficiency standards without government or utility intervention. Although ultimately a plan s success is measured by the energy savings achieved, interim evaluations and program planning would be well informed by an assessment of these success factors. CONCLUSION The Energy Efficient Buildings Strategy (EEBS) promotes energy efficiency through the introduction, widespread adoption and eventual regulation of energy efficient building designs and end-use technologies, leading to new codes and standards. It is based on a market transformation approach aims to create a permanent shift toward energy efficiency by setting a 5-10 year vision for energy performance, reducing market and institutional barriers and engaging key influencers, investors and program delivery agents in a collaborative workplan to maximize institutional efficiency and prevent conflicting efforts. MEMPR has implemented a number of market transformation measures in collaboration with energy utilities, other governments and the private sector. These have included regulations for manufactured building components and equipment under the BC Energy Efficiency Act, including standards for gas and electric water heaters that are unique in North America. Also, the BC Building Code references the ASHRAE standard 90.1 (2004). A quantitative analysis on current and planned energy efficiency measures indicated that the targeted 20% reduction in energy use per household can be met if all measures are implemented and that the 9% reduction in commercial and institutional energy use per square meter can be exceeded, resulting in a 28% reduction in energy intensity. The composition of savings was well-distributed across measures, with 38% relying on utility and government programs and rates and 50% from codes and standards. One fundamental limitation in quantitative evaluations is the challenge of attributing savings to complementary measures. For example, savings are dependent on supportive voluntary measures that make codes and standards politically and economically feasible. As such, a number of qualitative indicators of success must be considered, as outlined in the literature. ACKNOWLEDGMENTS The authors wish to acknowledge the financial support from the federal Opportunities Envelope for EEBS.

8 REFERENCES [BCH] BC Hydro Long-Term Acquisition Plan. Revision of February 27, [BCMEMPR] BC Ministry of Energy, Mines and Petroleum Resources Energy Efficient Buildings Strategy: More Action, Less Energy. BCMEMPR Energy Efficient Buildings: A Plan for BC. [BCOHCS] BC Office of Housing and Construction Standards Website: BCOHCS Revisions to the 2006 BC Building Code and 2006 Fire Code. [EC] European Commission Directorate General for Energy and Transport Background Information Paper for the Public Consultation on the Evaluation and Revision of the Action Plan for Energy Efficiency (COM (2006) 545). Harmelink, Mirjam; Nilsson, Lars; and Harmsen, Robert Theory-based policy evaluation of 20 energy efficiency instruments. Energy Efficiency (2008) 1: Marbek Resource Consultants BC Hydro 2007 Conservation Potential Review The Potential for Electricity Savings, : Residential, Commercial and Industrial Sectors in British Columbia Summary Report. Marbek Resource Consultants and MK Jaccard and Associates Demand-Side Management Potential in Canada: Energy Efficiency Study. Nadel, Steven, Jennifer Thorne, Harvey Sachs, Bill Prindle and Neal Elliot Market Transformation: Substantial Progress from a Decade of Work. American Council for an Energy Efficient Economy. [NRCan] Natural Resources Canada Canada s ENERGY STAR Market Transformation Awards - The Five A's of Market Transformation. Owen, Tom and Andrew Pape-Salmon and Brooke McMurchy. Employee Engagement and Energy Information Software Supporting Carbon Neutrality. Presented at 2010 American Council for an Energy Efficient Economy (ACEEE) conference Summer Study for Energy Efficiency in Buildings. Pape-Salmon, Andrew and Warren Knowles. 2010a. Codes and Standards for Windows and Glazing in British Columbia. Presented at ASHRAE 2011 Winter Conference. Pape-Salmon, Andrew and Dian Ross. 2010b. Market Transformation Strategy for Windows and Doors in British Columbia. Presented at 2010 ACEEE conference Summer Study for Energy Efficiency in Buildings. Pembina Institute Energy Efficient Building Strategy Gap Analysis. Spreadsheet prepared for BCMEMPR and BC Hydro by Katie Laufenberg and Matt Horne. Richerzhagen, Carmen; von Frieling, Tabea; Hansen, Nils; Minnaert, Anja; Netzer, Nina; Rußbild, Jonas Energy Efficiency in Buildings in China: Policies, Barriers and Opportunities. German Development Institute, in collaboration with the Research Centre for Sustainable Development of the Chinese Academy of Social Science. Queens Printer Clean Energy Act and Utilities Commission Act. Queens Printer Energy Efficiency Standards Regulation under the Energy Efficiency Act. Queens Printer Demand-Side Measures Regulation under the Utilities Commission Act.