July 18, 2013 David Gilford, Assistant Director Energy and Climate Change Action Lab: The New York City Perspective

NYC ECONOMIC DEVELOPMENT CORPORATION 1 Energy and Climate Change Action Lab: The New York City Perspective Overview  Objectives for NYC  Economic development  Sustainability  Policies for sustainability  PlaNYC  Greener, Greater Buildings Plan  Beyond policy: stimulating innovation and adoption  Open Data and Competitions  Energy Aligned Clause  Topics for discussion

NYC ECONOMIC DEVELOPMENT CORPORATION 2 NYCEDC’s Objectives in Clean Technology and Energy Linking sustainability and economic growth Credit: NYC Mayor’s Office of Long-term Planning and Sustainability Growth in employment, companies and investment while: increasing energy efficiency, expanding the production of clean energy, reducing greenhouse gas emissions, waste and pollution, and conserving water and other natural resources. Growth in employment, companies and investment while: increasing energy efficiency, expanding the production of clean energy, reducing greenhouse gas emissions, waste and pollution, and conserving water and other natural resources.

NYC ECONOMIC DEVELOPMENT CORPORATION 3 New York City’s Sustainability Objectives PlaNYC has 10 categories of goals for 2030, through 132 initiatives Neighborhoods and Housing Creates homes for almost a million more New Yorkers while making housing and neighborhoods more affordable and sustainable Parks and Public Space Ensures that all New Yorkers live within a ten-minute walk of a park Brownfields Cleans up all contaminated land in New York City Waterways Improves the quality of New York City’s waterways to increase opportunities for recreation and restore coastal ecosystems Water Supply Ensures the high quality and reliability of the water supply system Climate Change Reduce greenhouse gas emissions by more than 30% and increase the resilience of communities, natural systems, and infrastructure to climate risks Transportation Expand sustainable transportation choices and ensure the reliability and quality of the transportation network Energy Reduce energy consumption and make energy systems cleaner and more reliable Air Quality Achieve the cleanest air quality of any large U.S. city Solid Waste Divert 75% of solid waste from landfills PlaNYC is estimated to create 7,666 direct jobs annually through 2030

NYC ECONOMIC DEVELOPMENT CORPORATION 4 New York City has:  ~1 million buildings  15,000 properties 50k ft 2 or larger, which is less than 2% of all buildings  45% of energy used citywide is in large buildings Policies for Sustainability Energy efficiency in large buildings is critical to NYC Source: NYC Mayor’s Office

NYC ECONOMIC DEVELOPMENT CORPORATION 5 Greener, Greater Buildings Plan (GGBP)  Will reduce almost 5% of citywide GHG emissions  NYC Green Codes Task Force  111 proposals to green local codes, with 51 reducing energy use in buildings  x 17, Mayor’s Carbon Challenges to Hospitals & Universities 30x17 and Mayor’s Carbon Challenges  Targeted sectors “challenged” to achieve 30% GHG emissions reduction in 10 years   Policies for Sustainability PlaNYC launched 3 major energy efficiency initiatives

NYC ECONOMIC DEVELOPMENT CORPORATION 6 Beyond Policy: Open Data and Competitions Energy data challenges and “hackathons” are cost-effective yet powerful tools

NYC ECONOMIC DEVELOPMENT CORPORATION 7 Beyond Policy: Energy Aligned Clause Incentives are often misaligned, preventing investment in retrofits  Problem: In typical leases, savings from energy retrofits are passed through to the tenants, so:  It is not in the owners’ immediate interest to invest capital in improvements.  Thus savings and other benefits are left on the floor.  60% of commercial landlords surveyed in NYC say split incentives inhibit them from undertaking energy retrofits.  Goal: Create conditions so both commercial building owners and tenants can benefit financially from base-building energy retrofits

NYC ECONOMIC DEVELOPMENT CORPORATION 8 Beyond Policy: Energy Aligned Clause Building a “win-win-win” solution The EAC, an overview, and the financial model are available at

NYC ECONOMIC DEVELOPMENT CORPORATION 9 Questions for Discussion  What are the key barriers to greater investment in energy efficiency? Financial? Informational? Regulatory? Others?  Is the availability of financing a major issue?  How is the split incentive problem being addressed elsewhere?  How do companies evaluate the uncertainty in projections of savings and payback periods?  What role can data and analytics play in improving decision-making?  Is the NYC experience unique? What factors vary at the city, regional or national level?

NYC ECONOMIC DEVELOPMENT CORPORATION 10 Thank You David Gilford Assistant Director, NYCEDC