ENERGY STAR Jean Lupinacci Director ENERGY STAR Commercial

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-winwin 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 Environmental Protection Manufacturer/Retailer Interests Consumer Preferences Utility Program Sponsor Interests Consumer is Key Complement Codes and Standards, other Policies

Broad Strategies Residential Commercial / Industrial Labeled Products Corporate energy management -- 40+ products / 1400 manufacturers -- benchmarking, goals, upgrades -- 10 -60% more efficient Labeled New Homes (management, systems more than widgets) -- whole building labeling for excellence -- 30% more efficient Home Improvement Services Labeled Products -- for plug loads -- not system components -- beyond products -- ducts / home sealing -- whole home retrofits Small business initiative

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 Ø Energy efficiency should be foundation for green building Ø Market assumes green buildings are energy efficient • Studies now show that this is not necessarily the case Ø ROI for green buildings comes largely from energy Ø Large environmental benefits from reducing greenhouse gas and other air emissions. Ø 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

Energy performance gap • Normalized EUI for existing office buildings varies widely Number of Buildings • 30 kbtu/ft 2 to 340 k. Btu/ft 2 • Age and equipment not significant drivers of EUI 100 75 50 25 1 29. 9 86. 0 121. 1 165. 7 339. 4 EPA Rating & Energy Intensity Best Performers (k. Btu/ft 2 -year) Worst Performers

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

Simple Energy Metric EPA’s Energy Performance Rating System • 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 1 -100 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

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

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 ü Partnership Letter ü Communication resources • Measuring Energy Performance ü Objective, accessible, 3 rd party rating system • Demonstrating Financial Value ü Calculators to estimate earnings/share, asset value, cost of delay ü Analysis to confirm financial performance link • Recognition for Leadership ü 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 90. 12004 • 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

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