city initiatives for energy efficiency, speer conference, february.2014
TRANSCRIPT
City Initiatives for Energy EfficiencyCliff MajersikExecutive Director, Institute for Market [email protected]@IMTCliff
Link between Codes and Energy Performance Policy
Construction Operation Renovation Operation
Energy Codes
Energy Performance Policy
time
Added Value of ENERGY STAR-Labeled Commercial Buildings in the U.S. Market
Rental price Sale price Occupancy rate
0%
5%
10%
15%
20%
25%
30%
Wiley et al 2010*
Fuerst & McAllister 2009/11
Jackson 2009
Pivo & Fischer 2010*
Eicholtz et al 2010*AveragePremium
5
Rating and disclosure drives demand and competition
7
When performance is measured, performance improves. When performance is measured and reported back, the rate of improvement accelerates.
A Virtuous Cycle
U.S. Benchmarking Policy Landscape
Covered Properties
New York City San Francisco
Buildings 50k SF+~16,000 buildings, 2.5 billion SF
Buildings 10k SF+~2,700 buildings, 205 million SF
New York City15,300
Washington, DC2,000
California13,600
Austin2,800
Washington State4,600
Seattle3,600
San Francisco2,700
NUMBER OF PROPERTIES COVERED ANNUALLY
Philadelphia1,400
Chicago3,500Boston
1,600
Source: IMT
Each year, existing policies will impact more than
51,000 properties
Minneapolis625
New York City2.8 billion SF
Washington, DC357 million SF
California347 million SF
Austin113 million SF
Washington State247 million SF
Seattle295 million SF
San Francisco205 million SF
BUILDING AREA (IN SQUARE FEET) COVERED ANNUALLY
Philadelphia244.5 million SF
Minneapolis110 million SF
Boston250 million SF
Source: IMT
Totaling approximately
5.8 billion SF of floor space in major real estate markets
Chicago900 million SF
Early Energy Intensity Findings in New York City
The poorest performing buildings use 4 to 8 times the energy of the highest performing buildings.
By improving the poor performerscitywide energy reductions of 18% to 31% could be achieved.
Small Businesses and Job Creation
13
First report documenting job growth from energy benchmarking policies
Profiles of small businesses adding staff and increasing client bases
KEY TAKEAWAY: Financing not the key barrier. Primary issue is demand.
14
“As a Silicon Valley venture capitalist … I tell our green startup companies to focus on San Francisco or New York City. That’s where the action is going to be.”
- Elton Sherwin, venture capitalist, senior managing director, Ridgewood Capital
“The Greener Greater Buildings Plan has spurred the New York Market to interest and activity around energy efficiency. Over the past year, we have begun working with over 75 million square feet of real estate in New York and over 400 new clients.”
- Lindsay Napor McLean, COO, Ecological
“When an owner sees a benchmarking score that is lower than expected, they’re a little more receptive to improvements to bring the score up, which in turn lowers their utility costs.”
- Kevin Dingle, president, Sustaining Structures
Small Businesses and Job Creation
Boldest action is in cities- Federal outlook remains uncertain; state and local action to continue
Leading cities are looking beyond disclosure
- Integrated policy frameworks emerging with focus on poor performers
Support from business sector is critical
Takeaways
AtlantaBostonChicagoDenverHoustonKansas City, MOLos AngelesOrlandoPhiladelphiaSalt Lake City
Thank you!
Cliff MajersikExecutive Director, Institute for Market TransformationWashington, [email protected]@IMTCliff
Small Businesses and Job Creation
18
Policy Benefits
Audin, Lindsay. “Finding Your Best Energy Opportunity.” Building Operating Management. December, 2011.
Jobs and Economic Growth
A national rating and disclosure policy would create 59,000 net jobs by 2020.
Source: IMT and PERI. “Analysis of Job Creation and Energy Savings from Building Energy Rating and Disclosure Policy.”
2012 2013 2014 2015 2016 2017 2018 2019 2020 -
10,000
20,000
30,000
40,000
50,000
60,000
70,000
7,106 11,855
17,098
23,713
30,989
38,513
46,165
52,975
59,620
Jobs Created From Benchmarking Policy
Net
new
jobs
Early Energy Intensity Findings in New York City
Energy intensity is greater in newer buildings than older buildings.
ENERGY STAR scores are higher in older buildings than newer buildings.
Building owners often can’t get energy data for their buildings
Barriers:•Separately-metered tenants
•Lack of clear procedures
•Utility policies and state privacy laws
•Lack of standardization
Bill Payer(s)
Tenants
Building Owner
Building Physical and Operating Characteristics
Energy Consumption
The Data Access and Transparency Alliance (DATA) is a collaborative effort led by the commercial real estate industry and green building organizations to provide building operators with energy consumption data to advance energy-efficiency and energy cost savings in buildings.
More information can be found: http://www.energydataalliance.org/
Green Lease Leaders is a recognition program developed by www.GreenLeaseLibrary.com, with support from the Institute for Market Transformation (IMT) and the Department of Energy’s Better Buildings Alliance.
The Green Lease Leader designation recognizes companies or broker teams that have successfully implemented green lease language into their new or existing leases.
The website and application process will be launching this January 2014.
Green Lease Leaders Recognition Program
