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Commercial Buildings Integration NASEO Energy Policy Outlook Feb. 10, 2016 Jason Hartke Commercial Buildings February 10, 2016

CBI Updates Energy Efficiency Improvement Act of 2015 Tenant Star Legislation Timeline DOE Responsibilities & Progress Launch of the SEED Collaborative Commercial Building Energy Asset Score Introducing Preview National Leadership Network 2

Design and Construction; Occupancy- Based Recognition Timelines Design and Construction Recognition (underscored dates specified by law) April 30, 2015 July 30, 2015 September 30, 2015 April 30, 2016 After July 15, 2016 President Obama signs law. DOE: Publish Fed. Reg. notice inviting public comment re: high performance D&C methods, practices and measures in leased spaces (Estimated 60 day comment period) Public comment window closes. DOE: Complete study on high performance measures and opportunities in leased spaces. Publish study on DOE website EPA consulting w/ DOE: May develop a voluntary program to recognize owners and tenants that use high performance D&C measures in leased spaces, following public comment period Occupancy-Based Recognition (all dates estimated) April 30, 2015 2017-2018 2019 After 2020 President Obama signs law. (Estimated date of next CBECS) EIA: Collect tenant energy use data as part of CBECS or develop capabilities and start collecting such data. EIA: Earliest date of TBECS completion. Publicly release and provide data to EPA. ( Not later than 1 year after sufficient data received and following public comment period) EPA: Develop policies and procedures modeled after E* for voluntary tenant occupancy-based recognition. Establish categories of tenants eligible for recognition based on TBECS and other appropriate data sources. 3

Separate Spaces Report Early Takeaways 4 DOE is on track to release the report by the end of April. We are scheduling an advanced peak webinar for the beginning of April to share the findings and recommendations of the full report. You can download a copy of the report when it is available, and register for the webinar by going to www.betterbuildingssolutionscenter.energy.gov. Submetering remains a barrier to increasing the energy efficiency of tenant spaces advancements have been made in wireless technologies which make it easier and less expensive to submeter individual tenant spaces, but most existing spaces do not currently have this capability installed and there is a persistent issue with who pays for the installation. Market needs easier to compare packages of energy efficient technologies with better understood costs and returns off the shelf technologies exist today to increase the energy efficiency of tenant spaces, but implementing such technologies in build-outs proves to be complicated and time consuming. The ability to readily compare packages of technologies through interactive tools or prescriptive build-out checklists are potential ways to increase the uptake and reduce the time and cost of selecting more efficient options. Opportunity for low-cost energy models for tenant spaces until recently, energy modelling was used to compare options for whole-building energy consuming equipment and the interaction of measures. Recently modelling has been applied to assessing good, better, and best options for tenant build-outs, but the process is not currently financially feasible for smaller tenant spaces. Lease Language and Broker Engagement are two additional areas that will aid in greater adoption of energy efficiency during the build-out process. GSA, IMT, BOMA, and others have developed good models of lease language, along with recognition and talking points for brokers to use during pre-leasing that mitigate the landlord-tenant split-incentive problem.

Market Problem - Challenges of Data Management Stats $.30 of every EE program dollar is spent on administration including data collection, management, and verification. Cities are spending 0.5-1.0 FTEs each year at a cost of $50-100,000 on data needs related to energy benchmarking and compliance. 5

The Standard Energy Efficiency Data Platform 6

The SEED Platform Collaborative Partners Allies Affiliates City of Atlanta, GA City of Berkeley, CA City of Cambridge, MA City of Houston, TX City of Kansas City, MO City of New York, NY City of Orlando, FL City of Philadelphia, PA Salt Lake City, UT California Energy Commission District of Columbia Montgomery County, Maryland C40 Cities Climate Leadership Group Institute for Market Transformation Natural Resources Defense Council National League of Cities National Association of State Energy Officials CakeSystems McQuillen Interactive Performance Systems Development Quick Left Maalka 7

Asset Score Overview National, free software tool that diagnoses opportunities to improve EE - Assesses the efficiency of structural, mechanical, and electrical building components - Diagnostic tool, not an energy management tool Demand is expanding - Asset scores generated for 825 buildings totaling 80 million SF nationwide 8

9 Asset Score Full Version

10 Asset Score Preview

Asset Score National Leadership Network Launched in January 2016, the Leadership Network includes 21 organizations that will work with DOE to use the Asset Score, conduct case studies, and help improve the tool AECOM Arup Association of Energy Engineers CH2M Hill City of Milwaukee DNV GL FS Energy Ingersoll Rand JBG Companies Liberty Property Trust Marriott International Marx Okubo National Oceanic and Atmospheric Administration Performance Systems Development Skidmore, Owings & Merrill State of Missouri State of Rhode Island Steven Winter Associates Transwestern U.S. General Services Administration YR&G 11

12 THANK YOU