Manager, ENERGY STAR Commercial Buildings. Make the Most of Your Energy Efficiency Stimulus Funding- Leveraging ENERGY STAR. March 2009.

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1 Make the Most of Your Energy Efficiency Stimulus Funding- Leveraging ENERGY STAR Mike Zatz Manager, ENERGY STAR Commercial Buildings March 2009

2 ENERGY STAR Buildings Shriner s Hospital for Children Houston, TX Transamerica Pyramid San Francisco, CA Westin San Francisco Airport Millbrae, CA Twin Peaks Charter Academy Longmont, CO 500 Boylston St. Boston, MA Blue Earth County Courthouse Mankato, MN

3 What is ENERGY STAR for Buildings? U.S. Environmental Protection Agency energy management program. Offers proven solutions to help building owners and managers reduce energy consumption. Program for new construction and existing buildings. Works in markets with a focus on: Commercial property (offices, retail, hotels) Public sector (government, K-12, higher ed) Healthcare Small business and congregations

4 Who is ENERGY STAR for Buildings? Over 2,400 Partners operating more than 14 billion square feet of space (nearly 20% of space in the U.S.). Over 5,000 small business and congregation network participants. Nearly 120 utility and energy efficiency program sponsors. Over 2,000 service/product providers. Over 83,000 buildings, representing more than 11.5 billion square feet of space, measure and track their energy performance with ENERGY STAR.

5 Who s Improving Performance with ENERGY STAR State and Local Governments (California, Pennsylvania, Washington, DC, Austin, Louisville, Montgomery County (MD), Arlington County (VA)) K-12 Schools (New York City Schools, San Diego Schools, nearly 100 Wisconsin school districts) Commercial Real Estate (CB Richard Ellis, Hines, Jones Lang LaSalle, USAA Realty, Transwestern) Retail (JCPenney, Kohl s, Target, Dick s Sporting Goods, Food Lion, Stop & Shop) Hospitality (Marriott, Best Western, Wyndham) Healthcare (Sunrise Assisted Living, Providence Health, Inova Health System) Higher Education (University of New Hampshire, City University of New York, University of Michigan)

6 ENERGY STAR Partner Organizations US Conference of Mayors (USCM) National Association of Counties (NACo) Building Owners and Managers Association (BOMA) CoStar (Commercial Building Multiple Listing Service) American Hotel and Lodging Association (AH&LA) Professional Retail Store Maintenance Association (PRSM) Stadium Managers Association (SMA) National Small Business Association (NSBA) National Automobile Dealers Association (NADA) American Society of Healthcare Engineers (ASHE) International Community Bankers Association (ICBA) National Association of Evangelicals (NAE)... and many more.

7 Portfolio Manager Tracking Performance in Existing Buildings Free online tool for existing buildings: Assess the energy use of existing buildings Compare your energy use against your peers Receive an energy performance rating (1-100 score) or comparison to national average energy use. Track changes in energy use over time in single buildings, groups of buildings, or entire portfolios. Track cost savings and CO 2 reductions. Track water usage.

8 Sample Portfolio Manager View

9 Portfolio Manager for Use of Stimulus Funds 1. Identify Projects 2. Track Progress 3. Document Savings Results

10 Portfolio Manager for Use of Stimulus Funds 1. Identify Projects Input data on all buildings to identify your worst performing buildings to target for investment.

11 Identify Energy Efficiency Projects Identify under-performing buildings to target for energy efficiency improvements. Estabish baselines to set goals and measure progress Fire Stations: Energy Use Comparison Energy Use Intensity (kbtu/sf) Fire Station 1 Fire Station 2 Fire Station 3 Fire Station 4 Fire Station5 FireStation6 Fire Station 7 Fire Station 8 Fire Station 9 Fire Station 10 Fire Stations

12 Portfolio Manager for Use of Stimulus Funds 1. Identify Projects Input data on all buildings to identify your worst performing buildings to target for investment. 2. Track Progress Enter utility bills each month to track changes in energy consumption after projects are implemented.

13 Track Progress Over Time Set a baseline and monitor energy efficiency improvements over time View percent improvement in weather-normalized energy use intensity. Track reductions in greenhouse gas emissions. Monitor energy and water costs

14 Portfolio Manager for Use of Stimulus Funds 1. Identify Projects Input data on all buildings to identify your worst performing buildings to target for investment. 2. Track Progress Enter utility bills each month to track changes in energy consumption after projects are implemented. 3. Document Savings Results Print a Statement of Energy Performance to show energy savings and emission reductions.

15 Document Savings Results Provide transparency and accountability to help demonstrate strategic use of capital improvement funding. Quickly and accurately demonstrate savings for an individual building or entire portfolio: Energy use GHG emissions Water use Energy costs Download performance metrics from Portfolio Manager into Excel. Generate a Statement of Energy Performance (SEP) for each building, summarizing important performance indicators, including energy intensity and CO 2 emissions. Generate an Energy Performance Report showing reductions in key indicators over a user-specified time period. Visit to get started

16 Document Savings Results: Statement of Energy Performance

17 Document Savings Results: Energy Performance Report Comparative Energy Performance Report Facilities selected: All (25) Located in: Date Generated: 12/10/08 Number of facilities in report: 25* Year ending 9/2007 Year ending 9/2008 Change TotalFloorspace (sq. ft.) 2,833,780 2,872,451 38,671 Average Rating Number of Facilities with a Rating Number of Facilities not eligible to receive a rating** Total Site Energy Use (kbtu) 193,623, ,371,128-11,252,713 Total Weather Normalized Source Energy Use (kbtu) 410,558, ,847,428-32,710,697 Average Weather Normalized Source Energy Intensity (kbtu/sq. Ft.) Average Site Energy Intensity (kbtu/sq. Ft.) TotalSite Electric Use (kwh) 25,131,058 23,929,962-1,201,096 Total Site Natural Gas Use (Therms) 1,078,767 1,007,221-71,546 Average Actual Annual Source Energy Intensity (kbtu/sq. Ft.) *Only facilities with a full year of energy and attribute data in each of the two comparison years are included in the facility summary. **Facilities that are not eligible to receive a rating are defined as buildings that currently are ineligible to receive the ENERGY STAR rating due to (1) their operating characterisitcs; (2) their property type; and/or (3) incomplete energy data for the period being rated.

18 ENERGY STAR Buildings Beyond Benchmarking Tools to benchmark and track energy performance in existing buildings. Guidelines for Energy Management. Building Upgrade Manual. Small Business Energy Efficiency Guides Calculators to track returns on investments. Live and recorded trainings. Materials to communicate with employees, customers, stakeholders, and the media about energy efficiency. Platform for local governments to launch community energy efficiency programs.

19 Government Emissions A Small Piece of the Pie Total Arlington County Greenhouse Gas Emissions by Sector, 2000 Total community emissions: 2.9 million tons CO2-equivalent Government < 4% of total, so community outreach critical Private and commercial vehicles, 29.3% Residential buildings, 23.0% Government buildings, 2.3% Solid waste flow, 3.0% Gov't Commercial buildings, 40.9% Water/sewer operations, 0.7% Streetlights, 0.4% Government vehicles, 0.4% Slide Courtesy of: John Morrill, Energy Manager, Arlington County, VA

20 A Win-Win-Win Proposition Public-private partnership to promote energy efficiency in buildings benefits everyone: City/County Government Save $, makes progress toward meeting GHG emission goals. Private Organizations Save $, recognition as good corporate citizen, develop positive relationship with city/county government. Citizens Improved environmental quality, healthier learning, work, and play environment.

21 Louisville Kilowatt Crackdown Louisville Energy Alliance formed in response to Mayor Abramson s launch of the ENERGY STAR Challenge to the community The first joint EE campaign led by major commercial real estate organizations in Louisville BOMA (Building Owners and Managers Assoc.) CCIM (Certified Commercial Investment Member) ICSC (International Council of Shopping Centers) IFMA (International Facility Management Assoc.) IREM (Institute for Real Estate Management)

22 ENERGY STAR Taking Off in Louisville Louisville s first year as an ENERGY STAR Partner and a model city showed big results: By the end of 2008, the number of ENERGY STAR Partners in Louisville had doubled from 7 to 14, and the number of labeled buildings had also doubled, from 5 to 10 As of December 2008, 232 buildings were registered to participate in the 2009 Louisville Kilowatt Crackdown In the first three quarters of 2008, the number of buildings benchmarked in Portfolio Manager increased 120%, from 92 to 212. Made use of Portfolio Manager a requirement to document results in a recently awarded Energy Savings Performance Contract.

23 Engineering, Asset Management and Sustainability Services ENERGY STAR Portfolio Manager as Part of Montgomery County s Comprehensive Energy Management Strategy March 18 th, 2009 Presented to: ENERGY STAR National Webinar Make the Most of Your Energy Efficiency Stimulus Funding - Plan, Monitor, and Report Results with ENERGY STAR Tools

24 Engineering, Asset Management and Sustainability Services Montgomery County Team Energy Policy Eric R. Coffman (Department of Environmental Protection Energy Engineering Lead Victor Sousa (Division of General Services) Consulting Team EMG Lead Matt Munter 150+ Technical staff Comprehensive Sustainability/Facility Analysis Recent successful completion of similar projects Asset Calc / H.A.P. Software

25 Engineering, Asset Management and Sustainability Services Policy Timeline How We got Here Historically Montgomery County has been a national leader in energy management, advanced procurement and accountability July 2007, Montgomery County Executive Isiah Leggett commits to the Cool County Climate Stabilization Declaration, 80% reductions by 2050 Earth Day 2008, County Council passes bill with support of County Executive requiring the establishment of a baseline and energy savings plan for County facilities and establishes a funding source to overcome initial capital issues Simultaneously passes bill reiterating climate targets and creating the Sustainability Working Group (SWG) to craft a Climate Protection Plan 3

26 Engineering, Asset Management and Sustainability Services Sustainability Working Group 26 members government and private sector, over 100 additional individuals involved in sub-committees Charged with creating a comprehensive Climate Protection Plan (published January 15 th ) Climate Protection Plan includes 58 actionable items across building energy-efficiency, renewable energy, transportation, forest conservation and more Specifically. Recommended a goal of a 25% reduction in all existing building energy consumption by 2020, including benchmarking all public and private buildings by 2010 Recommended enhanced energy management and reinvestment strategies for public buildings 4

27 Engineering, Asset Management and Sustainability Services Building Statistics 124 Buildings in Benchmark Study Age Ranging from 1-50 Years Square Footage is 3.1 Million SF Size Range 1,000 SF to 300,000 SF 5

28 Engineering, Asset Management and Sustainability Services Benchmarking Process Overview Offices and Courthouses Police and Fire, Libraries and Community Centers 6

29 Engineering, Asset Management and Sustainability Services Benchmarking Process Overview 7

30 Engineering, Asset Management and Sustainability Services Potential Savings 8

31 Engineering, Asset Management and Sustainability Services Consumption Savings 9

32 Engineering, Asset Management and Sustainability Services 10

33 Engineering, Asset Management and Sustainability Services 11

34 Engineering, Asset Management and Sustainability Services 12

35 Engineering, Asset Management and Sustainability Services Implementation Process Overview 13

36 Engineering, Asset Management and Sustainability Services Phase Target Completion Date Gross Capital Cost Annual Energy Target (MMBTU) Annual Energy Target (%) Annual Cost Target ($) Annual Cost Target (%) GHG Reductio n (MtCO2e ) I 2013 $33 36 M 136,000 51% $ M 51% 24,000 II 2014 $ M 25,000 39% $760,000 39% 2,500 III 2015 $ M 9,000 24% $240,000 24% 1,500 IV ( if needed) 2016 If Needed If Needed If Needed If Needed If Needed If Needed Procurement 2013 $9.0-11M 0 0% $1,100, % 0 Renewables 2013 $ M 0 0% $ 980, % 30,000 Totals 2015 $57-67M 170,000 45% $7,200,000 60% 58,000* 14

37 Engineering, Asset Management and Sustainability Services Conclusion of Analysis Current County Facilities Consumption ~$12 million/yr. ~390,000 MMBTU Top Line Targets Cost Savings ~ 25% Energy Savings ~ 25% Potential Savings thru all Phases of Plan Utility Cost - 65% Energy Reduction - Potential Reductions ~$7.9 million/yr. ~200,000 MMBTU Proposed Plan Phased Plan Site specific audits Prioritized Implementation of Conservation Measures 5-7 year plan 15

38 Engineering, Asset Management and Sustainability Services Overcoming Funding Challenges American Recovery and Reinvestment Act (ARRA) of 2009 will likely provide significant initial resources to jumpstart comprehensive upgrades (e.g., Energy- Efficiency Block Grants) Long-term improvements will need to be sustained by harnessing energy savings. Need to leverage ESCOs and reinvest energy savings effectively 16

39 Engineering, Asset Management and Sustainability Services Specific Financing Recommendations of the Sustainability Working Group Create mechanisms to shift money from utility budgets to energy saving projects where cash-flow is positive. Reinvest savings beyond payment of any principal or interest into a energy bank to fund additional projects. Make decisions based on sound analysis with rigorous reporting. 17

40 Engineering, Asset Management and Sustainability Services Contact Information Eric R. Coffman Senior Energy Planner, Department of Environmental Protection Victor Sousa Energy Engineer, Department of General Services Matthew Munter - Senior VP, EMG msmunter@emgcorp.com, ext 2709 Download Information for Climate Protection Report Climate Protection Plan, See Appendix C for Energy Analysis

41 Small Business Ombudsman Julien F. Gaudion Small Business Energy Efficiency Grant Program For the Design and Administration of Using ENERGY STAR Resources

42 Development of the Small Business Energy Efficiency Grant Background: Small Business Advantage Grant Program Five year s of experience in administering over 1,200 grants totaling over $4 million. Small reimbursement grants administered on a first-come firstserved basis for eligible energy efficiency and pollution prevention projects Eligibility requirements and performance expectations are detailed in the guidelines

43 Development of the Small Business Energy Efficiency Grant Origination: The Alternative Energy Investment Act, signed into law by Governor Edward G. Rendell in July, Allocates $650 million in funding over the next eight years for alternative energy and conservation in the Commonwealth of Pennsylvania The Small Business Energy Efficiency Grant was developed based on the authorizing state legislation and the successful features of the prior five year s experience with the Small Business Advantage Grant

44 Development of the Small Business Energy Efficiency Grant Key Elements to Continue from Prior Grant Program: Clear performance requirements and eligibility standards for perspective applicants First-come first-served application process. Similar projects in lighting, heating and cooling and process equipment. Reduced staff time for review either complete and eligible application or not. No scoring and ranking as in a competitive program. Maintain speed and certainty to the applicant of the money being awarded.

45 Development of the Small Business Energy Efficiency Grant Key Elements Added: Improved monitoring and verification. Collection and reporting of energy consumption for the year prior and year after the project has been completed. Partnership with ENERGY STAR and use of EPA s Portfolio Manager Required energy assessment or energy savings calculations by a third party professional Minimum annual dollar savings amount in addition to the percentage of energy saved requirement

46 Small Business Energy Efficiency Grant Overview: Only for-profit small businesses are eligible. Examples include: manufacturers, retailers, service providers, agriculture Qualifying energy efficiency improvements include, lighting, heating and cooling systems, process machinery as well as building insulation projects.

47 Small Business Energy Efficiency Grant Overview: Qualifying projects must save at least 20% of the energy costs for the system being replaced or 20% for the entire facilities energy consumption. The project must also save the small business at least $1,000 a year in energy costs. All applications must have the projected energy savings provided by a trained energy assessment professional, a small business assistance organization, or by a trained equipment vendor.

48 Small Business Energy Efficiency Grant Overview: $3 million in funding has been allocated to this first grant round which began January 12, 2009 and ends May 1, The grant will provide 25% of the project s cost for equipment and installation with a maximum grant award of $25,000. Only project costs incurred after the grant opening date of January 12, 2009 will be eligible. Projects must be completed no later than 180 days after the grant agreement has been fully executed or by October 30, 2009.

49 Small Business Energy Efficiency Grant Measurement & Verification Applicants must provide documentation supporting the projected energy savings by attaching energy assessment reports, equipment specifications and energy consumption calculations. Applicants must provide one year s worth of energy consumption data before and after the completion of the energy efficiency upgrade.

50 Small Business Energy Efficiency Grant ENERGY STAR Requirements: Require the installation of ENERGY STAR qualified equipment if that class of equipment is rated by ENERGY STAR. Require business applicant to register a Portfolio Manager account and set up a read only shared account access with Pennsylvania s Department of Environmental Protection small business master account.

51 Small Business Energy Efficiency Grant ENERGY STAR Benefits: Introduce ENERGY STAR s Program capabilities to the Pennsylvania Small Business Community and the assessment providers and vendors. Reporting features of weather normalization, CO 2 reductions and business comparisons by sector or region. Goal Automated energy consumption data provided by the utilities directly to Portfolio Manager accounts. Promotion of continued energy consumption tracking by small businesses once they have completed the grant process.

52 Small Business Energy Efficiency Grant For more information regarding this grant program visit our website at keyword: Small Business Energy Efficiency Grant or by at or by phone at (717) Business Assistance Providers with Energy Assessment Capabilities Pennsylvania s Small Business Development Center s Environmental Management Assistance Program (SBDC-EMAP) phone: 877-ask-emap or internet: Pennsylvania s Technical Assistance Program (PennTAP) phone: or internet:

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54 Benchmarking California State Buildings Douglas Mahone, Heschong Mahone Group (HMG) Chair, California Benchmarking Work Group March 2009

55 Why do benchmarking? Compare buildings on energy use Motivate energy efficiency action Prioritize buildings for action Track changes over time Why Portfolio Manager? It s here, it works, it s free It s national and recognized ENERGY STAR brand value (Competing systems exist) March,

56 Basic Efficiency Tool Portfolio Manager Metrics Everybody can understand: Rating of bldgs (1 100 scale) More technical version: EUI (annual energy per sq.ft.) Other metrics: Cost per sq.ft., Energy by fuel Combines: Asset efficiency Operational efficiency Group portfolios: by dept, by agency, by all state buildings March,

57 Why did CA do benchmarking? Governor s Executive Order: Ordered state buildings to benchmark Goal: reduce energy use 20% by 2015 (vs. 2003) Use Portfolio Manager to track Encourage comm l bldgs to benchmark also Utilities: Benchmark EE program participants Help customers prioritize projects Statewide Strategic Plan includes benchmarking State law: Disclose benchmarking data with real estate transactions Note: public disclosure not required March,

58 CA Early Goals Develop infrastructure for automated benchmarking Make benchmarking universally available Include in utility efficiency programs Use benchmarking to track progress toward statewide goals March,

59 Early Consideration #1: Coordination It won t happen on its own Established Benchmarking Work Group State agencies Utilities Industry stakeholders EPA and their programmers Technical support provided Train energy managers Help compile data in correct format Interface with EPA and utilities March,

60 Early Consideration #2: Confidentiality CA s data release authorization form: Signed by building owner (utility account owner) Authorizes utility to release customer billing data to Portfolio Manager Grants utility access to customers benchmarking data (valuable information) March,

61 Early Consideration #3: Automation Automated billing data transfer from utility to PM facility accounts Manual data transfer not sustainable for most users Universal benchmarking must be simple/reliable Utility data people implement PM s Automated Benchmarking System (ABS 2.0) XML schema for data transfer Handles customer authentication Gives utility access to benchmarked accounts March,

62 Early Consideration #4: Verification High level: Independent engineer verifies building & billing data (needed for ENERGY STAR Building label) Lowest level: User manually enters all data (typos, wrong info, etc.) Better: Utility verifies accuracy of billing data Trust, but verify March,

63 Tracking the 20% savings goal March,

64 Progress toward the goal 120,000 California Energy Use (based on 8/1/08 Portfolio Manager data) 100,000 80,000 60,000 40,000 20,000 Total energy: 3.8% Natural gas: 14% Electricity: 11% Weather-Adjusted Energy Use (Btu/SqFt) 0 March,

65 Rated buildings CA State Buildings Energy Performance Ratings ENERGY STAR Building Energy Performance Rating Number of Buildings March,

66 EUI for all state buildings CA State Buildings Weather Normalized Source Energy Intensity 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Weather Normalized Source Energy Intensity (kbtu/st.ft) March, Number of Buildings 861 Buildings

67 Disclosure with real estate Required as of next January, 2010 Only disclosed to parties, but Expect it to become standard info Hope it will be used by appraisers Verification through normal due diligence process Buyers/tenants interested in efficiency will now know March,

68 As benchmarking grows Will become common knowledge Will be tracked over time Will enable utilities to compare customers across territory E.g., compare all groceries Will become measure of societal progress toward energy efficiency March,

69 Questions/Comments Douglas Mahone, Chair Benchmarking Work Group Heschong Mahone Group, Inc Fair Oaks Blvd. #302 Fair Oaks, CA (Sacramento area) (916) or BMWG Project web page at: March,

70 Q&A Log on and begin using Portfolio Manager to: 1) Identify projects 2) Track progress 3) Verify results U.S. Environmental Protection Agency Leslie Cook (202) The Cadmus Group, Inc. (EPA contractor) Kudret Utebay (703)