ENERGY STAR Jean Lupinacci, Director ENERGY STAR Commercial and Industrial Branch Climate Protection Partnerships Division US EPA.

ENERGY STAR

Jean Lupinacci, Director

ENERGY STAR Commercial and Industrial Branch

Climate Protection Partnerships Division

US EPA

Greenhouse Gas Emissions by Sector2000

Industrial CO222%

Residential CO217%

Other CO2 4%

Transportation CO225%

Commercial CO215%

Other Gases

ENERGY STAR • Reduce greenhouse gas (GHG)

emissions through large win-win-win 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 ofMarket Interests

ConsumerPreferences

Environmental Protection

Manufacturer/RetailerInterests

UtilityProgram Sponsor Interests

Complement Codes and Standards, other Policies

Consumer is Key

Broad Strategies

Residential Commercial / Industrial

Labeled Products Corporate energy management-- 40+ products / 1400 manufacturers -- benchmarking, goals, upgrades

-- 10-60% more efficient (management, systems more than widgets)

Labeled New Homes -- whole building labeling for excellence

-- 30% more efficient

Home Improvement Labeled Products Services -- for plug loads -- not system components

-- beyond products -- ducts / home sealing Small business initiative

-- whole home retrofits

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 IncreasesImportance 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

Energy efficiency should be foundation for green building

Market assumes green buildings are energy efficient

• Studies now show that this is not necessarily the case

ROI for green buildings comes largely from energy

Large environmental benefits from reducing greenhouse gas and other air emissions.

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

1

Worst PerformersBest Performers

Num

ber

of

Build

ings

255075100

EPA Rating &Energy Intensity

(kBtu/ft2-year)

121.129.9 165.786.0 339.4

•Normalized EUI for existing

office buildings varies widely

• 30 kbtu/ft2 to 340 kBtu/ft2

•Age and equipment not significant drivers of EUI

Energy performance gapEnergy performance gap

Fuel Efficiency

MPG

Is 10 MPG high or low for an automobile?

Energy Performance

EPA Rating

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

Simple Energy Metric

Simple Energy Metric

• 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

EPA’s Energy Performance Rating SystemEPA’s Energy Performance Rating System

• Building types with ratings:– Office Buildings:

• Courthouses• Bank branches

– K -12 Schools– Supermarkets/Grocery Stores– Hospitals– Hotels/Motels– Medical Offices– Warehouses– Residence Halls/Dormitories

Simple Energy Metric

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 EnergyManagement 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 Partnership Letter

Communication resources

• Measuring Energy Performance Objective, accessible, 3rd party rating system

• Demonstrating Financial Value Calculators to estimate earnings/share, asset value, cost of

delay

Analysis to confirm financial performance link

• Recognition for Leadership 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 90.1-2004

• 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 IntegrateENERGY 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

……it’s not on a sustainable path.it’s not on a sustainable path.

If it’s not energy efficient …If it’s not energy efficient …