Introduction to Commercial Building Energy Efficiency through EPA’s

ENERGY STAR program

Week 3: Market Transformation and the Role of the ENERGY STAR

Program

Outline

• Class Objectives

• Market Transformation and the Role of the ENERGY STAR Program– Program purpose– ENERGY STAR brand influence on consumer

and organization decisions– ENERGY STAR Challenge call to action to save

energy use by 10% or more and connection to stimulus dollars

– Increasing ENERGY STAR program effectiveness

Class Objectives

Upon completion of this unit, you will be able to:•Describe the purpose of the ENERGY STAR program•Explain how the ENERGY STAR brand has influenced consumer and organization decisions•Explain how the ENERGY STAR Challenge is a call to action to save energy use by 10% or more. Explain how local governments are creating campaigns to save energy in privately owned buildings and connecting this to stimulus dollars they receive from DOE’s Energy Efficiency Conservation Block Grant program.•Discuss how the ENERGY STAR program could increase its effectiveness

Program Purpose

Opportunities for Energy Efficiency

• The energy used by a building to support just one office worker for a day causes more than twice as many greenhouse gas emissions as that worker’s drive to and from work.

5

6

What is ENERGY STAR?

• Voluntary program administered by the U.S. Environmental Protection Agency

1992 First ENERGY STAR qualified

product

1999 First ENERGY STAR qualified

building

2003First commercial

building design and first ENERGY STAR qualified plant

1995First ENERGY STAR qualified

home

Builds Upon Intersection of Interests

ConsumerPreferences

Environmental Protection

Manufacturer/RetailerInterests

UtilityProgram Sponsor Interests

Consumer is key!

• Cost-effective

• No sacrifice in performance

7

ENERGY STAR Promise

Brand Promise• Protects the environment through superior energy

efficiency• No tradeoffs in performance or quality• Cost effective (2nd price tag)

Why it works• Government-backed symbol providing reliable, unbiased

information—source of authority • Binary (Y/N)• Power of the individual to make a difference• Fair treatment across technologies/ manufacturers for

products that deliver similar savings to the consumer

8

Growing Awareness and Interest in ENERGY STAR

• Awareness & influence continues to grow!– Public awareness had grown to more than 75% by the end of

2009.

• Substantial portions of U.S. households recognize, understand, and are influenced by the ENERGY STAR label. – Over 1 in 3 households knowingly purchased an ENERGY

STAR qualified product in 2009, and 80% of those households

credited the label as an important factor in their decision.

Source: National Awareness of ENERGY STAR for 2008: Analysis of CEE Household Survey

Residential Labeled Products• 60+ products / 3,000

manufacturers

• 10-60% more efficient

Labeled New Homes• 20-30% more efficient

Home Improvement Services• Beyond products

• Ducts / home sealing

• Whole home retrofits

International partnerships—Canada, EU, Japan, etc.

ENERGY STAR Strategies

10

Commercial/ Industrial Corporate Energy Management• Benchmarking, goals, upgrades (mgmt &

systems --not widgets)

• Whole building labeling for excellence

– Technical assistance

Labeled Products• For plug load, not system components

Industrial

Small Business Initiative

11

ENERGY STAR: At Home

Qualified Products• 50+ product categories including lighting, appliances, electronics, etc• 2,000+ manufacturers

Qualified New Homes• ~20-30% more efficient than standard homes

Home Improvement• Tools to assess energy efficiency of existing homes • Improve with proper sealing and insulating; efficient heating and cooling • Whole home approach

12

ENERGY STAR: In Your Community

Qualified Buildings and Industrial Facilities • The places where we work, shop, play and learn:

Schools, hotels, hospitals, supermarkets, offices, retail stores, banks, dormitories, medical offices, courthouses, warehouses

Auto assembly, cement manufacturing, corn refining, and petroleum refining facilities

• More than 5,300 as of September 2008• Nearly 100 Designed to Earn the ENERGY STAR

(pre-construction) commercial projects• 40% more efficient, emit 35% less carbon dioxide

13

ENERGY STAR: In Your Community(cont)

Corporate Energy Management • Company-wide approach

– Strategic goal setting and planning, benchmarking, operational changes, upgrades & improvement, employee involvement (management & systems vs. widgets & technology)

• Tools to assess & improve energy efficiency of commercial buildings and industrial facilities– National Energy Performance Rating System (1-100

scale)– Energy tracking tool (Portfolio Manager) – Plant Energy Performance Indicators (EPIs)

Success: 2009 Accomplishments

• Americans ,with the help of ENERGY STAR, saved $17 billion on energy bills and prevented 45 million metric tons of GHG emissions—equivalent to the emissions from 30 million vehicles

• Over 75% consumer awareness• 17,000 partners• More than 3 billion qualified products sold since 2000• Over 1 million new homes are ENERGY STAR• Tens of thousands buildings benchmarked and thousands upgraded

14

ENERGY STAR Brand Influence

16

ENERGY STAR: Brand Promise and Key Principles

• The Promise– Protects the Environment

through superior energy efficiency– No Tradeoffs

in performance or quality

– Cost Effective low-cost energy efficiency improvements

• The Principles– Source of Authority

Govt.-backed symbol providing valuable, unbiased information – Power of the Individual

to make a difference

17

Strategy: EDUCATE and ACTIVATE

Goal:• Raise awareness to help Americans save energy and fight global

warming

Audiences: • Consumers & Employees (create demand)• Corporate Level Executives (drive strategy and progress)• Energy & Facility Managers (direct and implement)

Desired Results:• Increased consumer/employee awareness of energy saving actions

they can take where they work, shop, play, and learn• Increased consumer/employee demand for energy efficiency where

they work, shop, play, and learn• Increased awareness of your organization’s efforts, in partnership

with ENERGY STAR, to save energy and fight global warming

Ultimate Result: Decrease greenhouse gas emissions

Reaching Consumers—Speaking to the Head AND the Heart

• Americans are concerned about the environment and climate change– 87% strongly agree or agree with the statement “I am very concerned

about the environment.”

– 93% strongly agree that “Saving energy helps the environment”

– 80% of Americans say they believe in global warming, and there is widespread belief that human behavior is contributing to the problem. (Poll, Spring 2008)

• Protecting the environment creates a long term connection for action; helps to motivate change.

• Environment and future for next generations is an emotional connection

• Energy efficiency is a rational decision—saves energy and money

18

• Not just changing preferences—changing behavior

• Educate consumer– Second price tag (life cycle costs)

– Environmental choice

– Credible source

– Tools/ advice/ unbiased information

– Information at transaction points

• Link to measurement/ performance– Measured performance incents behavior change

• Link to quality services

Change Consumer Behavior

19

Clear Process for Setting/ Revising ENERGY STAR Specifications

• Criteria weighed when developing or revising ENERGY STAR product specifications:– Significant energy (GHG) savings will be realized on a national

basis– Product energy consumption and performance can be

measured and verified with testing– Product performance will be maintained or enhanced.– Purchasers of the product will recover any cost difference within

a reasonable time period– Specifications do not unjustly favor any one technology– Labeling will effectively differentiate products to purchasers

• Strive for top 25%of product models (not sales) but key criteria can trump that goal

• Use a well-documented, transparent process

20

Loyalty is the Goal

SatisfactionSatisfactionDifferentialValueDifferentialValue

RelevanceRelevanceAwarenessAwareness

PerformanceCommunications

LoyaltyLoyalty

21

Loyalty is the Goal—How Are is ENERGY STAR Doing?

SatisfactionSatisfactionDifferentialValueDifferentialValue

RelevanceRelevanceAwarenessAwareness LoyaltyLoyalty

75+% of households recognize the label.

65+% of households that recognized ENERGY STAR feel that “buying ENERGY STAR labeled products helps protect the environment for future generations.”

55+% agree “buying ENERGY STAR labeled products makes me feel like I am contributing to society.”

75% agree that the ENERGY STAR label means “I am getting a more energy-efficient product.”

90+% of knowing purchasers would likely recommend ENERGY STAR to a friend.

22

Brand Influences Product Purchases

ENERGY STAR Challenge

• EPA’s national call-to-action to improve the energy efficiency of America’s commercial and industrial buildings by 10% or more.

25

ENERGY STAR Challenge

www.energystar.gov/challenge

Opportunities for Energy Efficiency

• If the energy efficiency of U.S. commercial and industrial buildings improved by 10%:– Amount of money that would be saved: $20

billion– Amount of greenhouse gas emissions that

would be reduced: Equal to about 30 million vehicles

26

The ENERGY STAR Challenge

• More than 2,600 organizations and individuals have joined the Challenge.

• Participants are encouraged to:– Design commercial buildings to be energy

efficient. – Measure and track energy use – Develop a plan for energy improvements – Make energy efficiency upgrades – Help spread the energy efficiency word to others. – Become an ENERGY STAR Partner

27

Who’s Improving Performance with ENERGY STAR

• Commercial Real Estate (CB Richard Ellis, Hines, Jones Lang LaSalle, USAA Realty, Transwestern)

• Retail (JCPenney, Kohl’s, Target, Verizon Wireless, Food Lion, Stop & Shop)

• Hospitality (Marriott, Best Western, Wyndham)

• Healthcare (Sunrise Assisted Living, Providence Health, Inova Health System, NY Presbyterian)

• State and Local Government (California, New York City, Washington, DC, Louisville, Arlington County (VA))

• K-12 Schools (New York City Schools, San Diego Schools, over 75 Wisconsin school districts)

• Higher Education (University of New Hampshire, City University of New York, University of Michigan)

Louisville Kilowatt Crackdown – Launched January 2009

• An energy management contest open to ALL Louisville commercial buildings (including commercial real estate, health care, K-12, hospitality, etc.)

• Awards based on Portfolio Manager benchmarking results Greatest Improvement in Efficiency– Most Improved Over Time– Most Efficient

• For properties with the highest overall efficiency ratings

– The Kilowatt Cup• Jury awarded trophy recognizing

superior achievements in energy management

ENERGY STAR Taking Off in Louisville

• Louisville’s first year as an ENERGY STAR Partner and a model city showed big results:– By the close 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 ratable buildings benchmarked in PM increased 120%, from 92 to 212.

Benchmarking —The First Step to Energy Savings in Buildings

Benchmarking through ENERGY STAR allows a building owner/manager to:• Compare one building against a national

sample of similar buildings

• Compare all buildings of a similar type to each other

• Set priorities for use of limited staff time and/or investment capital

Fuel Efficiency

MPG

Is 60 MPG high or low for an automobile?

Statement of Energy Performance

EPA Rating

Is 80 kBtu/SF/YR high or low for a building?

Rating System for Buildings

1

Worst PerformersBest Performers

Num

ber

of

Build

ings

25507590

Top performing buildings use 3 to 4 times less energy per ft2 than the worst performers.

Newer buildings are equally represented across all quartiles.

Based on a sample of 4,000 buildings nationwide.

10

39 percent of buildings with a rating of 75 or better are less than 25 years old

42 percent of buildings with a rating between 25 and 74 are less than 25 years old

35 percent of buildings with a rating between 0 and 24 are less than 25 years old

121.129.9 165.786.0 339.4

EPA Performance Rating &

Energy Intensity(kBtu/ft2-year)

Energy Performance Gap

Technology ≠ Performance

• 60 percent of building fan systems oversized on average by 60 percent (EPA fan study)

• Chillers oversized 50 percent to 200 percent (Lawrence Berkeley National Laboratory)

• Improper installation and poor maintenance

NEXT: So what can Portfolio Manager help us do?

ENERGY STAR Portfolio Manager

– Assess the whole bridling energy use of existing buildings (weather normalized EUI)

– Receive an energy performance rating (1-100 score) or comparison to national average

– Track changes in energy and water use over time in single buildings, groups of buildings, or entire portfolios

– Track CO2 reductions and cost savings

EPA’s no-cost online tool: www.energystar.gov/benchmark

ENERGY STAR Portfolio Manager: New Features

– NEW! • Custom reporting and graphing features

• Enhanced water use tracking (change from baseline per SF, %, total)

• 1-100 House of Worship and Data Center ratings now available

• Track onsite renewable wind and solar energy production

• Track Renewable Energy Certificates (RECs) at the building level

EPA’s no-cost online tool: www.energystar.gov/benchmark

Portfolio Manager for ARRA-funded Projects

• Use Portfolio Manager to:

1. Identify Projects2. Track Progress3. Document Savings Results

• Growing need for consistent, transparent, and accountable energy and GHG savings tracking

• For Municipal building projects and other EE programs available to building owners in your community.

1. Identify Best Opportunities for Energy Efficiency Improvements

• Identify under-performing buildings to target for energy efficiency improvements.

• Estabish baselines to set goals and measure progress

2. 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

3. Verify 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

Custom Reporting

• Demonstrate savings for an individual building or entire portfolio: – Whole building energy performance – Improvements over a baseline– GHG emissions – Water use– Energy costs

• Create custom reports and collect benchmarking results from multiple PM users. – Create custom reports by choosing from key energy, environmental,

and cost performance indicators – Download data in Excel, CSV, PDF, and XML formats– Streamlines the process of data collection when evaluating

programmatic savings

Custom Reporting

1. Choose the data for reporting

2. Add custom instructions

3. Distribute report via unique URL

4. Data from recipients is aggregated electronically

Examples of Portfolio Manager in ARRA-funded State Programs

State Program

Iowa Iowa SEP Grant Program

MaineEfficiency Maine Commercial Project Grant Program

New Mexico EECBG Grant Program

New York New York Energy Efficiency Program

Pennsylvania Pennsylvania Conservation Works! Program

UtahUtah Advanced Energy Efficiency Strategies for Buildings Program

Increasing Program Effectiveness

Engaging People of All Ages

Campaign: Change the World, Start with ENERGY STAR 2009/2010

• Combat global warming

• Launched Earth Day 2009

• Expanded ENERGY STAR Pledge

• Nationwide events with local sponsors

• Focus: youth (8-15) and families

• Community service projects

• National youth organization partnerships

– Boys & Girls Clubs of America

– PTO Today

• Many ways to leverage

46

Cornerstone: The ENERGY STAR Pledge

More than 2 million Pledges

47

48

Bring Your Green to Work

• “Job Seekers are recognizing the importance of finding a green workplace; 35% rank an environmentally-aware workplace as either a ‘Requirement’ or ‘Deciding Factor’ for their next job, according to Beyond.com.”

– Business Wire, 4/15/2008

• EPA, through ENERGY STAR, can help you encourage energy efficiency in the workplace.

49

Top 10 Cities with ENERGY STAR Qualified Buildings and Plants

Drawing Attention to Buildings and Industry

50

Review

Review Questions

1. Describe the purpose of the ENERGY STAR program.

2. Explain how the ENERGY STAR brand has influenced consumer decisions.

3. How can ENERGY STAR awareness among consumers help increase energy efficiency in the commercial market place?

4. How does the ENERGY STAR program help home owners move beyond individual product purchasing decisions? What is Home Performance with ENERGY STAR?

5. From “Celebrating a Decade of ENERGY STAR Buildings,” explain why and how EPA brought the ENERGY STAR brand into the commercial buildings market. Why did EPA move to a “whole building” approach in the commercial market?

6. Describe the ENERGY STAR Challenge and explain how local governments are creating campaigns to save energy in privately owned buildings.

7. Explain how state and local governments are incorporating ENERGY STAR Portfolio Manager into initiatives/programs funded with stimulus funding from DOE’s Energy Efficiency Conservation Block Grant program.

Up Next: Week 4

• ENERGY STAR for Commercial Buildings—Benchmarking Buildings and Prioritizing Improvements within a Portfolio of Buildings– Benchmark the energy use of a building using monthly

energy bill and other required building data– Analyze and explain the benchmarking results to others in

the class (and possibly the building owner/manager) using data from Portfolio Manager

– Generate a Statement of Energy Performance and a Building Checklist from Portfolio Manager for a building and review the data to confirm its accuracy

– Explain how to identify priority projects with a portfolio of buildings