The Challenges & Opportunities created by California’s new Benchmarking Legislation Martha Brook California Energy Commission 2008 ASHRAE Annual Meeting, Salt Lake City

Presentation Topics CA’s new benchmarking policies Challenges of benchmarking the diversity of CA’s commercial buildings Creating a regional market for efficient commercial real estate Energy use benchmarks from building design through operations 2008 ASHRAE Annual Meeting, Salt Lake City

State Building Benchmarking State buildings > 50,000 sf U.S. EPA’s Energy Star Portfolio Manager Benchmarks by January, % efficiency improvements by ASHRAE Annual Meeting, Salt Lake City Part of the Governor’s 2004 Green Building Initiative

State Building Benchmarking Weather normalized Energy Use Intensity Longitudinal Benchmarks – tracking building energy use over time Using benchmarks to document Green Building Initiative progress 2008 ASHRAE Annual Meeting, Salt Lake City

State Building Benchmarking Process 1 Account info Facility and space use info Meter IDs CA State Agencies EPA’s Portfolio Manager Utilities 4 view ratings 3 12 months of Energy Consumption PM user shares agency facility data 2 Data Authorization

Benchmarking as a Prerequisite to PV To receive incentive payment for a solar electric system, existing commercial buildings must get benchmarked Policy intent: All cost- effective energy efficiency options are considered before an investment in renewable energy is made 2008 ASHRAE Annual Meeting, Salt Lake City 2007 Guidelines for California’s Solar Electric Incentives Program

AB 1103, Saldana (2007) January 1, 2009 Electric and gas utilities must maintain records of the energy consumption data of all nonresidential buildings to which they provide service, in a format compatible for uploading to Energy Star Portfolio Manager, for at least the most recent 12 months. Upon authorization of building owner or operator, electric or gas utility must upload all of the energy consumption data for a building to the Energy Star Portfolio Manager. January 1, 2010 Nonresidential building owner or operator must disclose Energy Star Portfolio Manager benchmarking data and ratings, for the most recent 12-month period, to a prospective buyer, lessee, or lender. Energy Benchmarking for Commercial Buildings

Benchmarking at Time of Lease, Lend or Sale Get decision makers to think about energy performance at one of the rare times they are paying attention to their building Facilitate the real estate market to value energy performance within the framework of comparable property listings Create commercial building market differentiation within CA  cross-sectional, NOT longitudinal benchmarking 2008 ASHRAE Annual Meeting, Salt Lake City

U.S. EPA’s Energy Star Performance Rating Energy Intensity Carbon Intensity Worst PerformersBest Performers Number of Buildings (kBtu/ft2-year) ENERGY STAR® Performance Rating

Energy Star Rating Energy Star brand is recognized and valued by consumers rating is easily understood Portfolio Manager designed to use common rating for buildings across the nation 2008 ASHRAE Annual Meeting, Salt Lake City Benefits:Challenges: Energy performance distribution in CA buildings often NOT the same as distribution across the U.S. Cannot create market differentiation if only narrow band of rating gets applied to CA buildings Most CA buildings do not fall into Energy Star rating categories

Energy Star for CA Buildings * * If CA building energy use was exactly like USA building energy use, we would expect these each to be 25% * * * *

HospitalsRetailOffice BuildingsHotels Medical Office Buildings Waste Water Treatment Plants CourthousesFinancial Centers Warehouses DormitoriesSupermarketsSchools Energy Star Rating Eligible Space Types

CA Commercial Sector dominated by Small, Miscellaneous Buildings

Energy Star for CA Buildings Table 1 California Buildings That Are "Unratable" Using Energy Star Characteristic of California Buildings in CEUS 2003 Database "Unratable" Buildings CEUS Total Unratable Total Percent of CEUS Total Number of buildings525,728460,57488% Number of building types (space types) % Floor area (million sf)4,5392,39753% Energy use (billion Btu)329,655194,59559%

Disclosing Energy Performance Data 91 PORTFOLIO MANAGER ENERGY STAR

Disclosing Energy Performance Data

Other CA Benchmarking Initiatives CA looking to incorporate benchmarks into future building energy efficiency standards  Modeled after European Union’s Energy Performance of Buildings Directive Beyond Whole Building Benchmarks

Understanding How Your Building Stacks Up

Understanding Potential Impact from Energy Efficiency Options

Action-oriented Benchmarking