energy efficiency trends in residential and commercial buildings

8/10/2019 Energy Efficiency Trends in Residential and Commercial Buildings

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Energy EfficiencyTrends inResidential andCommercial BuildingsAugust 2010

Prepared by McGraw-Hill Construction for theU.S. Department of Energy, Office of Energy Efficiency

and Renewable Energy


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O N RGY

Table of

ContentsINTRODUCTION 3

EXECUTIVE SUMMARY 4

Chapter One DRIVERS OF ENERGY USE IN BUILDINGS 5

Chapter Two PROFILES OF BUILDING-S ECTOR ENERGY USE 13

Chapter Three PATTERNS OF ENERGY-E FFICIENT BUILDING PRODUCT ADOPTIONIN COMMERCIAL BUILDING DESIGN 17

Chapter Four INDUSTRY RESEARCH FINDINGS DRIVING ENERGY-E FFICIENT BUILDINGS 25

Chapter Five ENERGY EFFICIENCY STANDARDS , CODES AND INCENTIVES 31

Chapter Six VOLUNTARY PROGRAMS AND LOCAL AND STATE POLICIES FOR GREEN ANDENERGY-E FFICIENT BUILDINGS 38

Chapter Seven RESOURCES FOR MORE INFORMATION 50

Notes and denitions:

Commercial buildings are dened as buildings with more than 50% of oorspace used for commercial or industrial activities, including(but not limited to) stores, offices, schools, churches, libraries, museums, stadiums, hospitals, clinics and warehouses.

As dened by the U.S. Department of Energys Energy Information Administration (EIA), commercial energy use is mostly, but not exclusively, attributed to commercial buildings. EIA commercial data also include sewage treatment, irrigation pumping, highway lighting andcertain industrial facilities.

Data from public sources available to evaluate residential energy performance are more robust than those available to evaluate commercial energy performance. That disparity may be evident in sections of this report.

All the market opinion data in chapter four are pulled from the McGraw-Hill Construction research database and do not reect the opinion of the U.S. Department of Energy or Pacic Northwest Laboratory, nor does analysis incorporated into the narrative.National

ENERGY EFFICIENCY TRENDS IN RESIDENTIAL AND COMMERCIAL BUILDINGS


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IntroductionThe building industry is critical to the U.S. economy and to peoples lives. Today, construction of commercial and residentialbuildings contributes approximately 6.5% to U.S. Gross Domestic Product (GDP), second only to healthcare, and it generates

jobs for designers, engineers, contractors, home builders and tradespeople as well as jobs at rms that manufacture, develop,assemble and deliver products and services to the creation of those buildings.

Over time, buildings have changed to meet the needs of society, including changes in design and construction strategies, materials and product development and needed skill sets. For example, skyscrapers emerged on the landscape a century ago,and those supertall buildings have only gotten bigger and more pervasive over the last fteen years (see page 9). The adventof these types of buildings enabled growth with a contained footprint and denser urban populations.

Homes have changed as wellwith home sizes linearly increasing to where the average size home of 2,200 square feet in2008 is 1.3 times larger than homes in the 1980s.

Today, there is more attention on the role of buildings in U.S. energy consumption, with attention on the energy, carbon and

environmental footprint of commercial and residential buildings. However, rms and homeowners are also facing the realitiesof the economic recession. Driven by the need to maximize economic resources such as time and budget, they are looking forways to also reduce expenses in the long-run. At the same time, there is a growing acknowledgement of the need to conservenatural resourcessuch as clean air, water, energy and land. Transformative technologies and innovative practices are one ofthe key aspects of helping the U.S. adapt to these changing needs.

,

Report Overview

This report overview s trends in the construction industry, including proles of buildings and the resulting impacts on energyconsumption. It begins with an executive summary of the key ndings found in the body of the report, so some of the dataand charts are replicated in this section. Its intent is to provide in a concise place key data points and conclusions.

The remainder of the report provides a specic prole of the construction industry and patterns of energy use followed by

sections providing product and market insights and information on policy efforts, such as taxes and regulations, which are intended to inuence building energy use. Information on voluntary programs is also offered.

Report Data

This report is built off a 2008 version covering similar trends. Much of the data presented is pulled from proprietary resourcesand based solely around data that can be tracked and measured over time. Therefore, data from government surveys thathave been discontinued are not included in this report even if they were contained in the En ergy Efficiency Trends in Residential and Commercial Buildings Report issued by the U.S. Department of Energy (DOE) in 2008.

Specically, the buildings start data are pulled from McGraw-Hill Constructions proprietary data sources and are representative of all U.S. commercial buildings. Used by the U.S. Census Bureau to help calculate GDP contribution from construction, this data collection is real-time and not based on surveys. Data presented in chapters 3 and 6 are derived from

McGraw-Hill Constructions approximately 60,000 project plans and specications of current buildings. These specicationsonly cover the commercial buildings sector, and trends offered reect that. For comparison, DOEs 2003 Commercial Buildings Energy Consumption Survey (CBECS) is built off a representative sample of 6,380 building cases eligible for survey.The data are based on 5,215 responding building cases (82% response rate). The 2003 survey is the most recent available.For more information, visit www.eia.doe.gov/emeu/cbecs/2003sampl e.htmlhttp:// .

While this report was sponsored by the Building Technologies Program within the U.S. Department of Energys Office of Energy Efficiency and Renewable Energy and managed by the Pacic Northwest National Laboratory, it is not a description ofDOEs programs nor an attempt to advocate any position related to energy use or industry activity. Its intent is to documentapparent trends related to energy efficiency in the U.S. buildings substantiated by data and analysis.

http://www.eia.doe.gov/emeu/cbecs/2003sample.htmlhttp://www.eia.doe.gov/emeu/cbecs/2003sample.htmlhttp://www.eia.doe.gov/emeu/cbecs/2003sample.html


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ExecutiveSummary Executive Summary

Impact and Changing Trends in Construction Figure i: Commercial Construction Based on Projects StartedConstruction is critical to the U.S. economy, with residen- 80%tial construction serving as an indicator of changes in 70%economic patterns. In the recent downturn there has 60%

20%

10%

0%

Year

AlterationsNewAdditions

Source: McGraw-Hill Construction, Construction Starts Database,20052009

Market Drivers

Large corporate owners are starting to see the business advantages of investing in green buildings and energy efficiency intheir building portfolios. As a result, the inuence governmentpolicies are having in motivating this sector is decreasing overtime.

Despite being only one component of a green building, energyefficiency is driving the market that wayboth for residentialand commercial buildings.

Voluntary Programs and Policies

ENERGY STAR and the LEED Green Building Certication Program by the U.S. Green Building Council are the best knowngreen building programs nationally. There is increasing inclu

2005 2006 2007 2008 2009

been a shift in construction to more emphasis onrenovation projects altering existing building space

P e r c e n

t a g e 50%

40%Fig ure i) as less capital is available for new projects .

Furthermore, only a small percentage of the total building stock is new every year. For example, in 2008, newcommercial construction accounted for only 1.8% of totalbuilding oor area. Therefore, while attention to efficiency and other green priorities in new building con

struction is important to impact efficiency gains inlong-term building stock, both short-term and long-termefficiency goals require a focus on improving efficiencyin existing buildings.

McGraw-Hill Construction market estimates of the shareof new and existing building construction that is greenshows increases over time. From 2005 to 2008, theshare of green new commercial buildings increased from2% in 2005 to 10% in 2008. For existing building projects, the 2009 share estimate d to be green was 8% andenergy-efficient, nearly two-thirds.

Energy Use in Buildings

Buildings account for 40% of all energy use in the U.S. Infact, the construction industry consumes more energythan the industrial or transportation sectors. (Figure ii)

The U.S. is responsible for 20% of the worlds carbon dioxide emissions, with U.S. buildings energy use responsiblefor 8%.

30%

sion of these terms in projectFigure ii: Growth in Building Energy Use Relative to Other Sectors plans and specications.

45Policies oriented toward green

40 building ha ve also been in35

30

25

20

15

10

5

01980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Industrial TransportationResidential Commercial

Source: U.S. Department of Energy, Office of Energy Efficiency & Renewable Energy, 2009 Buildings Energy Data Book

T r i l l i o n

B t u ( T h o u s a n d s )

creasing. By the end of 2009,35 states and Washington, DChad instituted green buildingpolicies, as did 253 city andlocal governmentsan increase of 66% over 2008.

U.S. D EPARTMENT OF ENERGY4
http://buildingsdatabook.eren.doe.gov/http://buildingsdatabook.eren.doe.gov/


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Chapter 1

Drivers of Energy Use in Buildings

The services demanded of buildingsfor lighting, heating,cooling, water heating, electronic entertainment, computingand cookingrequire signicant energy use, approximately40 quadrillion Btus per year, 1 costing the U.S. populationover $ 392 billion in 2006 alone. 2 These same demands leadto the nations commercial buildings and homes accountingfor 40% of all U.S. energy usemore energy than either thetransportation or industry sectorsand corresponding toapproximately 40% of U.S. carbon dioxide emissions.

The way a building and its systems are constructed helpsdetermine how efficiently the building consumes energy.Therefore, understanding the building design and construc-tion industry and tracking its trends provides insight intostrategies for turning U.S. energy consumption patternsaround.

Though the recent economic recession has impacted theconstruction industry, it has not changed the types of build-ings being built or the energy needed for those buildings.The biggest impact of the recession may be a strongerawareness and prioritization of the need to improve the per-formance of the existing building stock as new constructionactivity slows.

Energy use today is driven by the following fac-tors, explored in this section:

Population growth: An increasing population drivesnot just housing, but other service needs such asschools, public buildings and retail.

Economic changes: Growth can mean booms in con-struction, but recession can still encourage changesto the existing built environment.

Building size: In both the commercial and residentialsectors in the U.S., the size of those buildings is grow-ing (see Figure 7 on page 9 and Figure 13 on page12), which will require more energy to heat and coolthese larger spaces. The size of buildings can changethe efficiency required for systems to reduce theiroverall energy consumption.

Service demands/Plug loads: With shifts to elec-tronic forms of communication, pervasiveness ofcomputers and home electronics, larger servers forinformation services and the use of complex new

technologies in schools, hospitals and office build-ings, the demand for energy services is growing.

Efficiency of energy use: Efficiency gains includemore efficient technologies that use electricity, suchas appliances, lighting and other building systems, aswell as ways of operating and maintaining buildingsto achieve maximum efficiency.

Technology advancements that will help buildings be moreefficient over time and provide access to new energysources will allow buildings to shift away from reliance oncoal and natural gas. However, there are a number of factorsthat can improve the efficiency of buildings without signi-

cant investment or research, including more widespread useof integrated design practices, energy use reduction strate-gies targeted to the specic needs in geographic regions, anincrease in effective policies at all levels of government, andbetter operation and maintenance of existing buildings.

1 Buildings Energy Databook, 2009, Table 1.1.1, U.S. Department of Energy < http://buildingsdatabook.eren.doe.gov/TableView.aspx?table=1.1.1 >.2 Buildings Energy Databook, 2009, Table 1.2.3, U.S. Department of Energy < http://buildingsdatabook.eren.doe.gov/TableView.aspx?table=1.2.3 >.

ENERGY EFFICIENCY TRENDS IN RESIDENTIAL AND COMMERCIALBUILDINGS
http://buildingsdatabook.eren.doe.gov/TableView.aspx?table=1.1.1http://buildingsdatabook.eren.doe.gov/TableView.aspx?table=1.2.3http://buildingsdatabook.eren.doe.gov/TableView.aspx?table=1.1.1http://buildingsdatabook.eren.doe.gov/TableView.aspx?table=1.2.3


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All BuildingsConstruction Value Over TimeNew Building and Renovation

Construction of commercial and residential buildings is the second largest contributor to Gross Domestic Product (GDP), behind onlyhealthcare, suggesting the critical importance of construction on the U.S. economy. In 2005, both commercial and residential build-ings contributed 6.5% to GDP and accounted for approximately $800 billion.

COMMERCIAL CONSTRUCTION Figure 1Value of Private Commercial Building Construction

Though there has been a decrease in new commercial construc-350,000tion activity since the economic downturn in 2007, the share of

GDP from these buildings has remained strong (Figure 1).

8,000

9,000

10,000

11,000

12,000

13,000

14,000

Further, as the economy has slowed, the focus on renovationwork has increased. In 2009, the number of major renovation/al-teration projects comprised 60.7% of all construction activity oc-curring in the U.S., an increase in share of 12% from 2008 (from54.2% of projects in 2008 ) . (Figure 2)

Though renovation work is still lower in value than new projects,the share of activity from renovation/alteration grew to com-prise 25.3% of all construction value in 2009, up 28% from 2008.New construction still comprises the highest share of construc-tion by value. However, that share dropped from 65% in 2008 to

C o n s t r u c t

i o n

( $ 2 0 0 5 m

i l l i o n s

) 300,000

250,000

200,000

150,000

100,000

1 9 9 3

1 9 9 4

1 9 9 5

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1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

Commercial Construction GDP58% in 2009. (Figure 3)Source: U.S. Department of Commerce, Bureau of the Census, Value of Construction Put in Place,

1993-2009 (Construction Value); U.S. Department of Commerce, Bureau of Economic Analysishttp://www.bea.gov/national/index.htm#gdp (GDP). 2005 GDP deator U.S. Department ofCommerce, Bureau of Economic Analysis

Figure 2 Figure 3Commercial Construction Based on Projects Started Commercial Construction Based on Value Started

80% 80%

70% 70%

60% 60%

P e r c e n

t a g e 50%

P e r c e n

t a g e 50%

40% 40%

30% 30%

20% 20%

10% 10%

0% 0%2005 2006 2007 2008 2009 2005 2006 2007 2008 2009

Year Year

Alterations

NewAlterations

New

Additions Additions

Source: McGraw-Hill Construction, Construction Starts Database, Source: McGraw-Hill Construction, Construction Starts Database,20052009 20052009

* Note: Alterations, or renovation projects, are ones that modify existing space but do not add square footage. Additions are projects that add square footage toan existing building but do not modify the existing space.

U.S. DEPARTMENT OF ENERGY6
http://www.bea.gov/national/index.htm#gdphttp://www.bea.gov/national/index.htm#gdp


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Figure 4 RESIDENTIAL CONSTRUCTIONResidential Construction Value

The economic downturn caused a severe decline in new home500,000construction, starting in 2007. Home improvement activity also

M i l l i o n s o f

$ 2 0 0 5

400,000

300,000

200,000

100,000

0

declined 24.7% from its height in 2006, going from $140 millionin 2006 to $106 million in 2009. However, even with this decline,home improvement activity is still higher than it was prior to therecession. Home improvements tracked here do not includemaintenance or repair work, but they do include efficiency up-grades.

1 9 9 3

1 9 9 4

1 9 9 5

1 9 9 6

1 9 9 7

1 9 9 8

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

Source: U.S. Department of Commerce, Bureau of the Census, Value ofConstruction Put in Place, 1993-2009

Improvements New

Figure 5Percent Growth in Square Footage of Building Inventory

over 30 Years (19782008)

Square Footage Growth Over Time by Region

Over the last 30 years, the volume of building area has growndramatically in the South and West, with the volume of both

U. S.

West

Midwest

South

Northeast

73%

78%

103%

110%

45%

54%

105%

111%

30%

32%

Residential residential and commercial space more than doubling.

Commercial The North Central region saw less than a 50% increase over thesame time, while Northeast growth lagged at less than one halfthe rates of the South and West.

0% 20% 40% 60% 80% 100% 120%

Source: McGraw-Hill Construction, Building Stock Database, 1978-2008

The regions include the following states: West: CA, WA, OR, NV, HI, AZ, NM, UT, CO, WY, ID, MT, AK Midwest: IL, IN, MI, OH, WI, IA, KS, MN, MO, NE, ND, SD South: AL, KY, MS, TN, DC, FL, GA, MD, NC, SC, VA, WV, AR, LA, OK, TX Northeast: NJ, NY, PA, CT, ME, MA, NH, RI, VT



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Commercial Building Trends

Commercial Square Footage Over Time

New commercial construction generally cycles slightly behindthe overall economy. For both of the brief recessions in the early1990s and 2000s, construction continued to dip a year or twoafter the recession ended. This pattern suggests that commercial construction will not recover from the current recession untilafter the economy improves.

Figure 6Total Square Footage Started in Commercial Buildings

During the boom years of the late 1990s and the mid-2000s, newconstruction often equalled 1.5 billion square feet or more peryear. The current recession continues to depress new commercialconstruction, with levels falling to less than half of those at peaktimes. However, even in peak years, the square footage added tooverall building stock from new construction was only 2%.3

M i l l i o n s o f

S q u a r e

F e e t

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

1 9 8 0

1 9 8 1

1 9 8 2

1 9 8 3

1 9 8 4

1 9 8 5

1 9 8 6

1 9 8 7

1 9 8 8

1 9 8 9

1 9 9 0

1 9 9 1

1 9 9 2

1 9 9 3

1 9 9 4

1 9 9 5

1 9 9 6

1 9 9 7

1 9 9 8

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

Indicates periods of recession as recorded by the National Bureau of Economic Research

Source: McGraw-Hill Construction, Construction Starts Database, 1978-2008

3 Building Stock Database, McGraw-Hill Construction, through 2009.

U.S. D EPARTMENT OF ENERGY8


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Large Project Growth Over Time

The volume of new commercial construction coming from largeprojects has grown over time, particularly since the mid-1990s.(Figure 7)

However, the number of these projects has been decreasingover time and is low compared to the number of smaller projects occurring. (Figure 8) This suggests that the buildings inthese project size ranges are becoming larger.

Figure 7New Commercial Construction Started by Size of Projects

These big projects (over 50,000 square feet) are also seeingmore volatile cycles, booming in good times and crashing in badtimes, with the largest projects (over 200,000 square feet) seeing the most volatility. (Figure 7)

Figure 8New Commercial Construction Started by Number of Projects

600 70,000

50060,000

40050,000

r o j e c t s

200

300

M i l l i o n s

o f S q u a r e

F e e t

20,000

30,000

40,000

N u m

b e r o f

P

10010,000

0 0

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2 0 0 1

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2 0 0 7

Size of individual projects (sq. ft.) Size of individual projects (sq. ft.)


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O ffi c e

R e t a i

l & M a l l

E d u c a

t i o n

W a r & S

t e h o

u s e

o r a g e

L o d g i n

g

S e r v i

c e

P u b l i c

A s s e m

b l y

R e l i g i

o u s W

o r s h i p

H e a l t h C

a r e

F o o d

S a l e s

P u b l i c

O r d e

r

& S a f e

t y O t h e r

*

V a c a n

t

F o o d

S e r v i

c e


Commercial Building Composition andEnergy Use by Sector

Commercial building types can be characterized by number ofbuildings, oorspace and energy use. In terms of squarefootage, the building types with the largest share are office(17%), retail (16%), education (14%) and warehouses (14%). Thebuilding types with the largest number of projects are office(17%), retail (14%), service (13%) and warehouses (12%).

Figure 9Commercial Building Types and Energy Consumption:Floorspace, Number of Buildings, Primary Energy Consump-tion and Primary Energy Intensity by Square Foot

20

18

16

For the most part, share of energy use by building type is consistent with the total oor area of the project, with the largestenergy users being office (19%), retail (18%) and education (11%).Healthcare buildings are the exception. Comprising the fourthlargest share of commercial building primary energy consumption, healthcare buildings, including hospitals, have a muchhigher primary energy intensity with only 4% of the total commercial oorspace and 3% of the total number of buildings.Food sales, food service and public order buildings all also have

high primary energy intensities. By comparison, the buildingswith the lowest energy use per square foot are religious worship, lodging and warehouses.

600

500

P r i m a r y

E n e r g y

I n t e n s

i t y

( 1 , 0

0 0 B t u / s q .

f t . / y e

a r )

P e r c e n

t a g e

14

1210

8

6

4

2

0

400

300

200

100

0

Total Floorspace Total Buildings Primary Energy Consumption

Primary Energy Intensity (1,000 Btu/sq.ft./year)

Source: 2009 Buildings Energy Data Book, U.S. Department of Energy, October 2009, Table 3.1.10 and Table 3.2.2 .

* Other buildings refer to buildings that are industrial or agricultural with some retail space; buildings having several different commercial activities that, together,omprise 50 percent or more of the oorspace, but whose largest single activity is agricultural, industrial/ manufacturing, or residential; and all other miscellaneous

buildings that do not t into any other category.

10 U.S. D EPARTMENT OF ENERGY
http://buildingsdatabook.eren.doe.gov/http://buildingsdatabook.eren.doe.gov/


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The total number of housing units in the U.S. has steadily grown


Residential BuildingsHousing Units Continue to Increase Figure 10

Occupied Housing Units

unit.

over the last 30 years. (Figure 10) Based on historical record, anincrease in the number of homes has correlated with an increasein energy use, including for heating, cooling and appliances. Fig-ure 14 on page 14 shows that the share of energy used in homeshas increased over time. The increase in use of home appliancesand electronics, however, could be offset by efficiency gains per

New Housing Starts Over Time

New residential construction has cycled with the overall econ-omy, with a downturn in new activity a precursor of each reces-sion period. (Figure 11) The boom years of the 2000s sawbetween 1.5 and 2 million new homes annually. Unlike commer-cial construction, the growth in new home starts correspondswith recovery from recessions. Mortgage interest rate declinesmay in part account for those immediate recovery rates.

These data points reinforce the traditional perception that thehousing market is an indicator of where the economy is headed,with the economic depression of 20082009 being accompa-nied by housing starts at historic lows.

Source: U.S. Department of Commerce, Bureau of the Census, Housing Vacancy Survey, 1980-2008

1 9 8 0

1 9 8 2

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1 9 9 0

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2 0 0 0

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T h o u s a n

d s o f

U n i

t s

70,000

80,000

90,000

100,000

110,000

120,000

I n t e r e s t

R a t e

( % )

18

16

14

12

10

8

6

42

0

Cyclicality in Housing StartsFigure 11

N e w

P r i v a t e l y

O w n e

d H o u s i n g

S t a r

t s

( t h o u s a n

d s )

2500

2000

1500

1000

500

0

1 9 6 1

1 9 6 3

1 9 6 5

1 9 6 7

1 9 6 9

1 9 7 1

1 9 7 3

1 9 7 5

1 9 7 7

1 9 7 9

1 9 8 1

1 9 8 3

1 9 8 5

1 9 8 7

1 9 8 9

1 9 9 1

1 9 9 3

1 9 9 5

1 9 9 7

1 9 9 9

2 0 0 1

2 0 0 3

2 0 0 5

2 0 0 7

2 0 0 9

New Privately Owned Housing Starts 30 Year Fixed Mortgage Interest Rate (%)

Indicates periods of recession as recorded by the National Bureau of Economic Research

Source: U.S. Department of Census, 1961-2009 < http://www.census.gov/const/starts_cust.xls >; Primary Mortgage Market Survey data provided byFreddie Mac

http://www.census.gov/const/starts_cust.xlshttp://www.federalreserve.gov/releases/H15/data/Annual/H15_MORTG_NA.txthttp://www.census.gov/const/starts_cust.xlshttp://www.federalreserve.gov/releases/H15/data/Annual/H15_MORTG_NA.txt


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S q u a r e

F e e t

T h o u s a n d s o

f U n i

t s

1 9 7 3

1 9 7 0

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1 9 7 2

1 9 7 6

1 9 7 3

1 9 7 7

1 9 7 4



REGIONAL CHANGES IN HOUSING STARTS

The decrease in overall housing starts with the economic downturn also is reected regionally. However, despite the downturn,the South still has the largest number of housing starts, reecting the population shift to the Sunbelt and coastal states.

AVERAGE HOUSE SIZE GREW THROUGH 2007

After years of increasing house sizes, the recessionary market in2008 experienced the rst decline in the median size of a single-family home. Further data are needed to determine if this 3%

0

200

400

600

800

1000

1200

Source: U.S. Department of Commerce, Bureau of the Census, 1970-2008

South West Midwest Northeast

The regions include the following states: South: AL, KY, MS, TN, DC, FL, GA, MD, NC, SC, VA, WV, AR, LA, OK, TX

West: CA, WA, OR, NV, HI, AZ, NM, UT, CO, WY, ID, MT, AK Midwest: IL, IN, MI, OH, WI, IA, KS, MN, MO, NE, ND, SD Northeast: NJ, NY, PA, CT, ME, MA, NH, RI, VT

Figure 12U.S. Housing Starts by Region (19702008)

1,500

1,600

1,700

1,800

1,900

2,000

2,100 2,200

2,300

Source: U.S. Department of Commerce, Bureau of t he Census, 1973-2008

Figure 13U.S. Median Single Family House Size of Completed Projects

decline marks a long-term trend toward smaller homes or just ashort-term response to the recession. However, even with thisrecent drop in size, homes are still signicantly larger than in the1990s or early 2000s, equating to an increase in space per person.

1 9 7 5

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2 0 0 2

2 0 0 4

2 0 0 3

2 0 0 5

2 0 0 4

2 0 0 6

2 0 0 5

2 0 0 7

2 0 0 6

2 0 0 8

2 0 0 7

2 0 0 8


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Chapter 2

Proles of Building Sector Energy Use

Overall growth in U.S. construction has driven an increase inelectricity consumption. Electricity is the largest energysource for buildings, and that predominance has grown overtime. Natural gas is the second largest energy source andpetroleum (primarily heating oil) a distant third. Buildingsdemand for electricity was the principal force behind the58% growth in net electricity generation between 1985 and2006.

69.4% of U.S. electricity is generated by burning coal, petroleum or natural gas, another 20.7% by nuclear power stations and 9.% from renewable sources, including largehydropower. 4 Conversion from one fuel form to another entails losses, as does the transmission and distribution ofelectricity over power lines. Those losses are roughly twicethe size of actual purchases, making electricity the largestprimary source of energy for buildings, at about 72% in2005.

Given the size of the construction market and its growthover time (see Chapter I), it is important to put buildingsinto context with regard to other sectors using energy andelectricity, as well as their role in overall greenhouse gasemissions.

4 Buildings Energy Data Book, 2009, Table 6.1.2, U.S. Department of Energy.

http://buildingsdatabook.eren.doe.gov/TableView.aspx?table=6.1.2http://buildingsdatabook.eren.doe.gov/TableView.aspx?table=6.1.2


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Growth in Building Energy Use

Versus Other Non-Building SectorsBuildings account for 40% of all energy use in the U.S. in primary energy terms. In fact, buildings consume more energythan the industrial or transportation sectors, surpassing industrial in 1998 as the number one consumer of energy. Unlikethose two sectors, the building sector also has continued to increase its energy use, even during the ongoing economic downturn that began in 2007. Residential consumption currentlyexceeds that of commercial buildings, but the share of energyuse from commercial buildings has grown at a faster rate in recent years. (Figure 14)

Figure 14Growth in Building Energy Use Relative to Other Sectors

Electricity Consumed by Buildings

Versus Industry AverageElectricity use in buildings has increased dramatically relative toindustrys use, which has remained flat over the last 20 plusyears. Despite brief periods of recession, electricity use by thebuilding sector has steadily increased. (Figure 15)

This increasing energy consumption places a higher demand onpower plants and utilities, requiring the need for more generation and thus, more coal, uranium and natural gas to meet thatneed. Coal-red plants account for 39% of that increase, naturalgas-red 31% and nuclear plants 28% (much of which is due toincreased plant capacity, which rose to 90% in 2006, up from

only 58% in 1985).

69.4% of U.S. electricity is generated by burning coal, petroleumor natural gas, another 20.7% by nuclear power stations and 9.%

from renewable sources, including45 large hydropower. Conversion from40 one fuel form to another entails

T r i l l i o n

B t u ( T h o u s a n

d s )

losses, as does the transmission anddistribution of electricity over power

35

30 lines. Those losses are roughly twice

25 the size of actual purchases, making20 electricity the largest primary source15 of energy for buildings, at about 72%

in 2005.10 5

0

Industrial Transportation Residential Commercial


1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Figure 15Growth in Electricity Sales in Buildings Relative to Industry

3,000

2,500

1985 1987 1989 1991 1995 1997 1999 2001 2001 2003 2005 2007

S a l e s

( B i l l i o n

k W h )

2,000

1,500

1,000

500

0

Buildings Industry


http://buildingsdatabook.eren.doe.gov/http://buildingsdatabook.eren.doe.gov/http://buildingsdatabook.eren.doe.gov/http://buildingsdatabook.eren.doe.gov/


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Most CO 2 Emissions from Electricity

Use Are Attributable to Coal-FiredGenerationThe increased need for electricity has created growing carbondioxide emissions. The U.S. is responsible for 20% of the worldscarbon dioxide emissions, with U.S. buildings energy use re-sponsible for 8%.5 The majority of carbon dioxide emissions arestill attributable to coal. Contributions from geothermal and mu-nicipal solid waste have remained insignicant, with little changeover the last 20 years.

Figure 16Contributors to Electricity-Related CO 2 Emissions

C O

2 E m i s s i o n s

( M i l l i o n

M e t r i c

T o n s

) 2500

2000

1500

1000

500

01990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Coal Oil Natural Gas Municipal Solid Waste

*Due to its comparatively small contribution to electricity CO 2 emissions, geothermal energy is not included in this chart.


5 U.S. Department of Energy, Energy Information Administration, < http://www.eia.doe.gov/oiaf/1605/ggrpt/#global >.

http://buildingsdatabook.eren.doe.gov/http://www.eia.doe.gov/oiaf/1605/ggrpt/#globalhttp://buildingsdatabook.eren.doe.gov/http://www.eia.doe.gov/oiaf/1605/ggrpt/#global


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Energy Use in Commercial BuildingsThe way energy is used in a commercial buildings has a large effect on energy efficiency strategies. The most important energyend-use across the stock of commercial buildings is lighting,which accounts for one-quarter of total primary energy use.

Heating and cooling are next in importance, each with aboutone-seventh of the total. Equal in magnitudethough not well-dened by the U.S. DOE Energy Information Administrationisan aggregate category of miscellaneous other uses, such asservice station equipment, ATM machines, medical equipmentand telecommunications equipment. Ventilation uses another7% of energy, making HVAC as a whole the largest user of energy in commercial buildings at nearly 32%.

Water heating and office equipment (not counting personalcomputers) use similar amounts of energy (6%7.5%), and refrigeration, computer use and cooking consuming the least.

Energy Use in Residential Buildings

Space heating comprises the largest energy use in a home, atone quarteralmost twice any other end use. Space cooling,water heating and lighting all use roughly the same percentageof energy in a home (12%13%), followed by another set of useselectronics, refrigeration and wet cleaningsharing similar levels of use from 6% to 8%.


Figure 17Commercial Primary Energy End-Use Splits, 2006

24.8%

12.7%

12.1% 6.8%

2.0%

13.2%

6.3%

5.7%

4.1%

3.8%

7.5%

Lighting

Space Cooling

Space Heating

Ventilation

Electronics

Water Heating

Refrigeration

Computers

Cooking

Other

* EnergyAdjustment

Source: 2009 Buildings Energy Data Book, U.S. Department of Energy, Table 3.1.4

* Energy adjustment U.S. Department of Energy, Energy Information Administrationuses to adjust for discrepencies between data sources. Energy attributed to thecommercial buildings sector, but not directly to any specic end-use.

Figure 18Residential Primary Energy End-Use Splits, 2006

26.4%

13.0%

12.4%

11.6%

1.0%

8.1%

3.6% 5.7%

7.2%

6.2%

4.7%

Space Heating

Space Cooling

Water Heating

Lighting

Electronics

Refrigeration

Wet Clean

Cooking

Computers

Other

* EnergyAdjustment

Source: 2009 Buildings Energy Data Book, U.S. Department of Energy, Table 2.1.5

* Energy adjustment U.S. Department of Energy, Energy Information Administrationuses to adjust for discrepencies between data sources. Energy attributed to theresidential buildings sector, but not directly to any specic end-use.
http://buildingsdatabook.eere.energy.gov/docs/xls_pdf/3.1.4.pdfhttp://buildingsdatabook.eere.energy.gov/docs/xls_pdf/2.1.5.pdfhttp://buildingsdatabook.eere.energy.gov/docs/xls_pdf/3.1.4.pdfhttp://buildingsdatabook.eere.energy.gov/docs/xls_pdf/2.1.5.pdf


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Chapter 3

Patterns of Energy-Efficient

Building Product Adoption inCommercial Building Design

The kinds of products and systems selected for building design can signicantly inuence how those buildings use energy and where the opportunities for reduction lie. The moreaware the design and construction community is of alternative design practices and technologies that lead to more efcient buildings, the easier it will be to lessen the overall useof energy.

Given the importance of lighting and space cooling and theavailability of McGraw-Hill Construction specications datafor these two end uses, these product types are the focus ofthe investigation in this section.

The specication searches draw from McGraw-Hill Constructions proprietary database of approximately 60,000 actualproject plans and specications. These searches provide insight into trends regarding how well known and adoptedspecic product types are in the design of new and majorrenovation commercial building projects. The analysis bybuilding type and geography reveal nuances of where thelargest awareness is by designers and speciers today. How

McGraw-Hill Construction Specication DatabaseEach year McGraw-Hill Construction (MHC) collects and digitizesapproximately 60,000 project plans and specications, approximately 10% of construction projects at pre-start stages. Thespecications are written by the project designers and containthe specic types of products that have been approved for useduring construction, as well as legal requirements and other information about the building not included on the drawings. Thefrequency of appearance of a product, term or requirement inthe specications can demonstrate its level of adoption by thedesign and construction professions.

MHCs digitized project plans and specications are for new andmajor renovation/alteration commercial projects. Actual installation rates are not available through the specications and onlyreect what has been recommended in the specication.

MHC does not capture every project in its specications database as compared to MHCs Dodge project data that reect allcommercial activity in the U.S.

ever, the specication data do not indicate specic marketshare of a product.

Searches of specications measure incidence of the product or search term in the specication, not actual installation rates. Therefore, the number of products in a buildingcannot be determined based on specication rate. For example, whether there is one elevator in a building or multiple elevators, the specication rate for that buildingwould show up as one count for the specication rate ofelevators regardless of number.

Key ndings:

Ballasts: Though there is little variation in the specication of ballasts among different building types,offices and living spaces, such as apartments anddormitories, have the highest level of specicationof magnetic ballastswhich have been demon

strated to be less efficient than uorescent lightswith electronic ballasts.

LED lighting: LED lighting is evolving quickly, andmany industry experts expect costs of these xtures to go down considerably in the next 15 years.Dormitories and education buildings see the highest specication rates at over 13%.

Solar panels and photovoltaic cells: Though low,tracking the specication of these products overtime will show where this market growth is occurring as well as the impact of various incentives offered by utilities and by government agencies atthe federal, state and local levels.



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Patterns of Energy-Efficient Building Product Adoption in Commercial Building Design

LightingBallasts Figure 19

Florescent Ballast Specication Rates by Building TypeFluorescent lights with electronic ballasts have been demon- Electronic Versus Magnetic Ballasts (JanuaryMay 2010)strated to be 13%36% more efficient than those with magneticballasts. 6 In addition, the University of Michigan Department of U.S. AverageOccupational Safety and Environmental Health reports thatusing xtures with electronic ballasts can result in 5%10% air Warehouse

7.2%

7.3%

11.2%

11.8%

14.5%

14.9%

15.2%

16.5%

17.6%

19.0%

20.0%

21.5%

21.7%

14.4%

Parking Garages)

B u i

l d i n g

T p y e 99.1%

94.1%

99.2%

97.8%

conditioning cost reduction, due to the reduced amount of heatApartmentsgenerated by the operation of the lights. 7 Electronic ballasts also 97.8%

eliminate the hum associated with uorescent lighting and offer Dormitories97.8%a better light color. 8

Office

While electronic ballasts are still more expensive than traditionaluorescent ballasts, the energy savings associated with properlyinstalled xtures can offer a relatively short payback of the investment.

Given the benets of electronic ballasts, it would be consistent

99.1%

Auto (Car Sales & Service,

Transportation Buildings (AirportTerminals, Train Stations, etc.) 100.0

Amusement/Leisure (Theaters,Auditoriums, Arenas) 99.2%

lights. However, 14.4% still include magnetic ballasts in their de-Educationfor them to be specied on most projects involving uorescent

(K-12, Higher Education) 99.4%

sign. Since the specications do not provide clarity on whether Public (Courthouses, etc.) 100.0

ing for their primary energy consumption, there may still be opthe majority of these buildings are using magnetic ballast light-

Hotels

efficiency.portunity for signicant improvement in lighting energy Healthcare (Hospitals, Clinics,

Nursing Homes) 98.7%

Religious98.9%

Though there is little variation among building types, offices andRetail (Restaurants, Stores,

living spaces, such as apartments and dormitories, have the Shopping Centers) 99.2%highest level of specication of magnetic ballasts. 0% 20% 40% 60% 80% 100%

Specication Rate

Magnetic Ballasts

Electronic Ballasts

Source: McGraw-Hill Construction Analytics,SpecShare, January-May 2010

6 Fluorescent Lamp Ballast Analytical Spreadsheets: Lifecycle Costs Spreadsheet, Appliance and Commercial Equipment Standards . U.S. Department of Energy..7 Energy Conservation: Ballast Retrots, P2000 Manual . University of Michigan Pollution Prevention Program < http://www.p2000.umich.edu /energy_conservation/ec2.htm>.8 Electronic Ballasts: Non Dimming Electronic Ballasts for 4-foot and 8-foot Fluorescent Lamps , Specier Reports, Vol 8, No1, May 2000. National Lighting ProductInformation Program.(NLPIP) < http://www.lrc.rpi.edu/programs/NLPIP/PDF/VIEW/SREB2.pdf >.

http://www1.eere.energy.gov/buildings/appliance_standards/residential/gs_fluorescent_tools.htmlhttp:///reader/full/http://www.p2000.umich.eduhttp://www.lrc.rpi.edu/programs/NLPIP/PDF/VIEW/SREB2.pdfhttp://www1.eere.energy.gov/buildings/appliance_standards/residential/gs_fluorescent_tools.htmlhttp:///reader/full/http://www.p2000.umich.eduhttp://www.lrc.rpi.edu/programs/NLPIP/PDF/VIEW/SREB2.pdf


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LED Lighting Figure 20LED Lighting Specication Rates by Building Type

Light emitting diodes (LEDs) are an emerging technology in en- (JanuaryMarch 2010)ergy-efficient lighting. They have potential to lead to signicantenergy savings as well as other benets, such as longer operating life, lower operating costs, compact size and shorter startuptime as compared to conventional light sources (incandescent,neon). 9

Currently , the price of LEDs could be an obstacle to its use incertain sectors. However, LED technology is evolving quickly,and many industry experts expect the cost of these xtures togo down signicantly in the next 15 years. 10 The U.S. Department

Dormitories

Education(K-12, Higher Education)

Office

Healthcare (Hospitals,Clinics, Nursing Homes)

4.8

2.9%

6

%

7.

7.

6.

.4

U.S

1

10

9.

8.7

3%

0%

9%

%

8.1%

. Average9.2%

13

13.

0.37%

.0%

8%

%

.9%

5%

Transportation Buildings (AirportTerminals, Train Stations, etc.)

Religious

Public (Courthouses, etc.)

Amusement/Leisure (Theaters,Auditoriums, Arenas)

of Energys Solid State Lighting (SSL) Research & Development(R&D) Program is investing in activities to improve efficiency,lifetime and quality of light while decreasing the cost of theselight sources.

LEDs are suitable for applications like adjustable task lighting B u i

l d i n g

T y p e

and outdoor lighting as well as in elevators and spaces with occupancy sensors. Tracking specication rates over time mayshow how the design community is inuenced as the technology develops and whether these applications correlate with

Auto (Car Sales & Service, Parking Garages)

Hotelsbuilding type.

WarehouseThe LED lighting specication rates shown in Figure 20 includeLEDs for interior lighting and emergency lighting, which may ac- Retail (Restaurants, Stores,count for an average specication rate of 9% for an emerging Shopping Centers)technology.

Apartments

Dormitories and educational buildings see the highest specication rates for LEDs, both over 13%. The other building types thathave a higher specication rate than the average are healthcare,office and transportation. Like education-related buildings, manyhealthcare buildings, such as hospitals, and office buildingssuch as government-owned officesare largely occupied bytheir owners, who may be more likely to support the investmentin long-term efficiency gains or willing to pilot a new technology.

0% 4% 8% 12% 16% 20%Specication Rate

Source: McGraw-Hill Construction Analytics,SpecShare, January-March 2010

9 Multi-Year Program Plan Solid-State Lighting Research and Development: Multi-Year Program Plan, prepared for U.S. Department of Energy, Office ofEnergy Efficiency and Renewable Energy, Building Technologies Program by Bardsley Consulting, Navigant Consulting, Inc., Radcliffe Advisors, Inc., SBConsulting, and Solid State Lighting Services, Inc., March 2010 < http://www1.eere.energy.gov/buildings/ssl/projects.html#2008portfolio >.10 LED Basics U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy < http://www1.eere.energy.gov/buildings/

ssl/basics.html>.

http:///reader/full/years.10http:///reader/full/years.10http://www1.eere.energy.gov/buildings/ssl/projects.html#2008portfoliohttp://www1.eere.energy.gov/buildings/ssl/basics.htmlhttp://www1.eere.energy.gov/buildings/ssl/basics.htmlhttp:///reader/full/years.10http://www1.eere.energy.gov/buildings/ssl/projects.html#2008portfoliohttp://www1.eere.energy.gov/buildings/ssl/basics.html


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Heating and CoolingSpace heating and cooling account for 40% of residential primary energy use (see Figure 18 on page 16). In commercialbuildings, space heating, ventilation and air conditioning/cooling(HVAC) activity account for nearly one third of their primary energy use. This represents an opportunity for energy savingsusing proven technologies and design concepts.

Often more than one HVAC system may be specied for a singlebuilding. As a result, the specication rate for a building type ismore than 100%.

Cooling Equipment

Rooftop units and packaged AC units are the most frequentlyspecied type of cooling equipment in all commercial buildingtypes.

Figure 21HVAC Systems Aggregated Specication Rates by BuildingType (JanuaryJune 2010)

U.S. Average

Retail (Restaurants, Stores,Shopping Centers)

Hotels

Religious

Education

Rooftop/ PackagedAC Units

Room AirCondition

CentrifugChillers

ReciprocaChillers

Rotary ScChillers

Rooftop units and packaged systems tend to be the most commonly employed in smaller buildings, especially those that are20,000 square feet or less. Rooftop units and packaged systemsalso are typically less expensive to install and maintain. Buildingsover 100,000 square feet tend to use one or more custom designed, central systems based on how their space is used. 11

Hotels are the only major category with room air conditioners

specied in over 50% of projects, although specication ratesfor room air conditioners are relatively high in most other project types compared to other kinds of cooling systems.

Warehouse

Office


Auto (Car Sales & Service,Parking Garages)

Apartments

Healthcare (Hospitals, Clinics,Nursing Homes)

Dormitories

0% 20% 40% 60% 80% 100%

Specication Rate

Source: McGraw-Hill Construction Analytics,SpecShare, January-June 2010

(K-12, Higher Education)


Amusement/Leisure (Theaters,Auditoriums, Arenas) B

u i l d i n g

T y p e

11High Performing HVAC Systems, Online Guide to Energy-Efficient Commercial Equipment. American Council for an Energy-Efficient Economy..

http://www.aceee.org/ogeece/ch3_index.htmhttp://www.aceee.org/ogeece/ch3_index.htm


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Central Air Conditioning SystemsChillers

Central air conditioning systems have a specication rate of lessthan 10% in any building type, which corresponds to the factthat the majority of commercial building projects are signicantly less than 100,000 square feet (see Figure 8 on page 9).However, because of their use on large volume projects, such ashospitals and large office buildings, the impact of chillers on energy use is much larger than their specication rate implies.

Three common types of chillers used in central air conditioningsystems in commercial buildings are rotary-screw chillers, reciprocating chillers and centrifugal chillers. According to the Appli-

Figure 22Central Air Conditioning Product Specication Rates byBuilding Type (JanuaryJune 2010)

CentrifugalChillers

ReciprocatinDormitories

U.S. Average

Chillers

Rotary ScrewTransportation Buildings (Airport ChillersTerminals, Train Stations, etc.)

Healthcare (Hospitals, Clinics,Nursing Homes)


cations Team at the Lawrence Berkeley National Laboratory, thefollowing characteristics apply to the three types of chillers.

Reciprocating chillers serve the smallest loads efficiently.

Rotary-screw chillers provide the highest level ofexibility.

Centrifugal chillers provide the most efficiency whenfully loaded. 12

The specication rates (Figure 22) follow these characteristics.

Building types that tend to be large or complex, such as

hospitals, public buildings, offices and educational buildings, most frequently specify centrifugal chillers.

Buildings with a wide range of uses like educationalbuildings and hospitals also have a relatively high specication rate for rotary-screw chillers.

Buildings that are often publicly owned, such as publicbuildings, education buildings and dormitories, have thehighest specication rate for reciprocating chillers.

Dormitories have the highest specication rate for alltypes of central system air conditioning, with each typeof chiller specied at the same frequency.

Office

0% 2% 4% 6% 8% 10%

B u i

l d i n g

T y p e



Warehouse


Religious

Apartments

Retail (Restaurants, Stores,

Shopping Centers)

Hotels

Specication Rate

Source: McGraw-Hill Construction Analytics,SpecShare, January-June 2010

12Chillers, Design Guide for Energy-Efficient Research LaboratoriesVersion 4.0 . Lawrence Berkeley National Laboratory, Center for Building Science Applications Team, prepared July 1996, updated August 2003 < http://ateam.lbl.gov/Design-Guide/DGHtm/chillers.htm >.

http:///reader/full/loaded.12http:///reader/full/loaded.12http://ateam.lbl.gov/Design-Guide/DGHtm/chillers.htmhttp:///reader/full/loaded.12http://ateam.lbl.gov/Design-Guide/DGHtm/chillers.htm


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Split Systems and Variable Refrigerant Figure 23Flow Split Systems Split Systems and Variable Refrigerant Flow Split Systems Spec-

ication Rates by Building Type (JanuaryDecember 2009)Variable refrigerant ow (VRF) systems are ductless commercial

0% 5% 10% 15% 20% 25% 30% 35%

U.S. Average17.8%

25.4%

24.6%

23.5%

22.3%

20.8%

18.7%

16.5%

16.0%

15.3%

14.6%

13.8%

12.1%

5.4%

neous heating and cooling, VRF can lead to a high coefficient ofperformance. 15

B u i

l d i n g T y p e

Religious

Building types that benet most from VRF systems include Healthcare (Hospitals,Clinics, Nursing Homes)

those having varying loads and different zones, such as schools,Amusement/Leisure (Theaters,hotels, hospitals and office buildings. 16 Buildings less likely to Auditoriums, Arenas)

benet include stadiums and warehouses. This is consistent withthe building types that are specifying VRF systems. Apartments


Auto (Car Sales & Service, Parking Garages)

Warehouse

Retail (Restaurants, Stores, Shopping Centers)

Specication RateSource: McGraw-Hill Construction Analytics,SpecShare, January-December 2009

HVAC systems that provide a high level of design exibility,quiet operations, the ability for individual controls over temperature and some energy-efficiency savings. 13 They were rst introduced in Japan in 1982 and since have gained attention in othermarkets. 14 The VRF systems typically include a centralized monitoring application. Because they can have individual zone controls, locations needing little or no cooling can be adjusted, thuslowering energy consumption. In buildings that require simulta-

Hotels



Dormitories

Office

13 Roth, Kurt W; Detlef Westphalen; John Dieckmann; Sephir D. Hamilton; William Goetzler, Energy Consumption of Commercial Building HVAC Systems VolumeIII: Energy savings Potential, TIAX, LLC, prepared for the U.S. Department of Energy, Building Technologies Program, July 2002.14 Ibid.15 Ibid.16 Ibid.

http:///reader/full/performance.15http:///reader/full/performance.15http:///reader/full/buildings.16http:///reader/full/buildings.16http:///reader/full/savings.13http:///reader/full/savings.13http:///reader/full/markets.14http:///reader/full/markets.14http://apps1.eere.energy.gov/buildings/publications/pdfs/commercial_initiative/hvac_volume3_final_report.pdfhttp:///reader/full/performance.15http:///reader/full/buildings.16http:///reader/full/savings.13http:///reader/full/markets.14http://apps1.eere.energy.gov/buildings/publications/pdfs/commercial_initiative/hvac_volume3_final_report.pdf


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Green/Vegetated RoongGreen roofs reduce energy use by absorbing heat and insulating Figure 24buildings. Specic energy savings from green roofs depend on Vegetated Roof Specication Rates by Region

(JanuaryDecember 2009)the local climate and individual building and roof characteristics, 17 but many studies indicate that green roofs reduce buildingenergy use by reducing the demand for cooling in the summerand heating in the winter. 18 One study conducted in Canadafound that heat gain was reduced by 95% in the summer andheat loss was reduced by 26% in the winter. The benets fromheat loss reductions allow green roofs to provide energy costsavings in the winter as well as the summer. They also offer additional environmental and social benets over traditional roofing materials, namely management of stormwater runoffandthe resulting energy use savings from reduced need for waterpumpingand creation of green spaces fostering wildlife and

R e g i o n

Middle Atlantic

East North Central

Pacic Northwest

Pacic Southwest

South Atlantic

New England

habitat. 19 West North Central

Currently, with such minimal penetration, building types and climate zones do not seem to correlate with specication rates of East South Centralgreen roofs. However, there are some differences by region.Those specifying green roofs at a considerably higher rate than West South Central

1.6

1.2%

1.9

%

U.S.

2.4

2.4

2.3%

%

Average2.4%

3.5

3.4

2.8%

%

%

%

%

the national average include:

Middle Atlantic

East North Central Pacic Northwest

Policies encouraging green roofs may have an inuence onthese higher specication rates:

Middle Atlantic: Green roof subsidy program in Washington, DC, and tax credits for the use of a green roofs inNew York City and Philadelphia

East North Central: Green roofs grant program launchedby the City of Chicago in 2005

Pacic Northwest: Floor area ratio bonuses in Seattle,

WA and Portland, OR, which increase the amount of oorarea a developer can add to a building without additionalpermitting if the project includes a green roof.

0% 1% 2% 3% 4% 5Specication Rate

Source: McGraw-Hill Construction Analytics, SpecShare,

January-December 2009

The regions include the following states: Middle Atlantic: NJ, NY, PA East North Central: IL, IN, MI, OH, WI Pacic Northwest: AK, ID, MT, OR, WA, WY Pacic Southwest: AZ, CA, CO, HI, NV, NM, UT South Atlantic: DE, DC, FL, GA, MD, NC, SC, VA, WV New England: CT, ME, MA, NH, RI, VT West North Central: IA, KS, MN, MO, NE, ND, SD East South Central: AL, KY, MS, TN West South Central: AR, LA, OK, TX

17 Reducing Urban Heat Islands: Compendium of Strategies, Green Roofs Draft from the U.S. EPA, October 2008 < http://www.epa.gov/heatisland /resources/pdf/GreenRoofsCompendium.pdf>.18 Liu, K.L., and B. Baskaran. Thermal Performance of Green Roofs through Field Evaluation. Presented at Greening Rooftops for Sustainable Communities, the First North American Green Roofs Infrastructure Conference, Awards, and Trade Show, Chicago, IL, May 29-30, 2003. National Research Council,Institute for Research in Construction referenced in Green Roofs. Federal Technology Alert: A New Technology Demonstration Publication, U.S. Department of Energy, Federal Energy Management Program < http://www1.eere.energy.gov/femp/pdfs/fta_green_roofs.pdf >.19 Green Roofs. Federal Technology Alert: A New Technology Demonstration Publication, U.S. Department of Energy, Federal Energy Management Program < http://www1.eere.energy.gov/femp/pdfs/fta_green_roofs.pdf >, and DDC Cool and Green Roong Manual , June 2007, New York City Department ofDesign and Construction < http://www.nyc.gov/html/ddc/downloads/pdf/cool_green_roof_man.pdf >.

http:///reader/full/winter.18http:///reader/full/winter.18http:///reader/full/habitat.19http:///reader/full/habitat.19http://www.epa.gov/heatislandhttp://www1.eere.energy.gov/femp/pdfs/fta_green_roofs.pdfhttp://www1.eere.energy.gov/femp/pdfs/fta_green_roofs.pdfhttp://www.nyc.gov/html/ddc/downloads/pdf/cool_green_roof_man.pdfhttp:///reader/full/winter.18http:///reader/full/habitat.19http://www.epa.gov/heatislandhttp://www1.eere.energy.gov/femp/pdfs/fta_green_roofs.pdfhttp://www1.eere.energy.gov/femp/pdfs/fta_green_roofs.pdfhttp://www.nyc.gov/html/ddc/downloads/pdf/cool_green_roof_man.pdf


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B u i

l d i n g T y p e

RenewablesSolar Panels and

Photovoltaic CellsAlthough the specication rate of solar panels and photovoltaiccells (1.89%) is low in commercial construction, there are somesectors that are specifying solar energy product use at signicantly higher rates than average, most notably dormitories andeducation projects, as well as amusement projects (e.g., stadiums, theaters) and apartment buildings.

The use of these technologies is consistent with the features ofthe buildings themselves and with policies encouraging renewables. Amusement projects tend to have more space in which to

install panels, while dormitories and apartments can easily utilize the hot water generated by solar panels. Further, there are anumber of incentives in place to encourage use of renewables inschools and office buildings.

Big box stores, such as Walmart, Target and Home Depot, maypresent opportunities for solar with large roof areas over one-story buildings. However, the specication rates are signicantlylower than average. This rate may be diluted by the smallerstores and restaurants that comprise a large number of projectsin this sector.

Tracking the specication of these products over time will showwhere this market grows as well as the impact of various incentives by utilities and at the federal, state and local levels.


Figure 25Solar and Photovoltaic System Specication Ratesby Building Type (October 2009March 2010)


Dormitories


Apartments

Office




Warehouse

Healthcare (Hospitals,Clinics, Nursing Homes)

Religious

Retail (Restaurants, Stores,Shopping Centers)

Hotels

0% 1% 2% 3% 4

3.3%

3.0%

2.8%

2.7%

2.0%

1.9%

1.9%

1.8%

1.2%

0.4%

0.4%

0.1%U.S. Average

0.0% 1.9%

Specication Rate

Source: McGraw-Hill Construction Analytics,SpecShare, October 2009-March 2010


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Chapter 4

Industry Research Findings Driving

Energy-Efficient BuildingsThe U.S. built environment comprises more than 77.9 billion square feet of commercial buildings 20approximately5.3 million buildings 21and 114 million homes. 22 Only asmall percentage of the total building stock is new everyyear. For example, in 2008, new commercial constructionaccounted for only 1.8% of total building oor area. 23 Whileattention to efficiency and other green priorities in newbuilding construction is important to impact efficiencygains in long-term building stock, both short-term and

long-term efficiency goals require a focus on improving efciency in existing buildings.

Different players in the industry are motivated to shift tomore efficient buildings, whether they are involved in commercial or home construction, new or renovation projects.Understanding the market drivers is critical to achieve energy reduction goals.

Since 2005, McGraw-Hill Construction has regularly surveyed a representative sample of construction industryplayers (owners, architects, engineers and contractors) togauge the industry on various topics related to green

building and energy performance of new and existingbuildingsboth commercial and residential. Those studyresults feed the collective MHC proprietary market research database. Results in this section are primarily derived from that data.

What is Green Building?McGraw-Hill Construction uses the following denition ofgreen building, which encompasses more than just energyefficiency.

To be considered a green building, a project must be energy efficient, water efficient, have improved indoor airquality and include aspects of the building that use resources efficiently through materials selection.

Therefore, a building that focuses solely on one aspect ofenvironmental performance (e.g., energy) is not considered a green building. Neither is a building that has onlyone or two products that lead to improved environmentalperformance.

Buildings certied under recognized green building standards (e.g., LEED Green Building Certication program,Green Globes) are typically more narrowly dened greenbuildings given their specic requirements for responsible

site management and other aspects of construction.These buildings are a subset within McGraw-Hill Constructions denition.

20 Annual Energy Outlook 2010, U.S. Department of Energy, Energy Information Administration < http://www.eia.doe.gov/oiaf/aeo/excel/aeotab_5.xls >.21 Calculated based on the total square footage from Annual Energy Outlook 2010, U.S. Department of Energy, Energy Information Administration divided by the average size of a commercial building from Commercial Buildings Energy Consumption Survey, 2003, U.S. Department of Energy, Energy Information Administration, table a1 < http://www.eia.doe.gov/emeu/cbecs/cbecs2003 /detailed_tables_2003/2003set1/2003pdf/a1.pdf>.22 U.S. Department of Commerce, Census Bureau23 McGraw-Hill Construction, Buildings Stock Database

http:///reader/full/homes.22http:///reader/full/homes.22http://www.eia.doe.gov/oiaf/aeo/excel/aeotab_5.xlshttp://www.eia.doe.gov/oiaf/aeo/excel/aeotab_5.xlshttp://www.eia.doe.gov/emeu/cbecs/cbecs2003http:///reader/full/homes.22http://www.eia.doe.gov/oiaf/aeo/excel/aeotab_5.xlshttp://www.eia.doe.gov/oiaf/aeo/excel/aeotab_5.xlshttp://www.eia.doe.gov/emeu/cbecs/cbecs2003


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Industry Research Findings Driving Energy-Efficient Buildings

Corporate Drivers to Energy-Efficient

Building PortfoliosCorporate America Sees Strong Value inGreening Portfolios

Corporate leaders report an increased level of green buildingsince 2006. 24 However, the motivations behind green buildinghave overall remained quite consistent over time.

The only major change is the decrease in the relative inuenceof government regulation, as green building is an increasinglycommon building practice and becoming increasingly motivatedby business benets. (Figure 26)

Corporate leaderschief executive officers (CEOs), chief operating officers and chief nancial officersbelieve that the difficulty in creating proper benchmarks and measuring againstthose benchmarks is one of their biggest challenges to increasing their commitment to improving the energy and environmental performance of their buildings. 25 (Figure 27) Other industryplayersarchitects, engineers and contractorsbelieve the rstcosts of green building is their largest hindrance. 26 This suggestsa shift in leadership and policy trends, with the emphasis by bigprivate owners on proving results more than on immediate rstcosts.

Sustainable Practices in Corporations AreBeing Driven by Energy Cost Savings andCompetitive Advantage

There is a correlation between how corporate executives viewsustainability policies overall and how much they commit toenergy-efficient and green buildings.

Energy and cost savings are the most important drivers promoting corporate sustainability.

When asked to rank their number one driver, energy and costsavings remain the top driver for all corporate leaders. However,nearly one fth of all CEOs believe competitive advantage isdriving them toward more sustainable practices (Figure 28).Forced ranking also dropped technology changes down fromsecond position to third.

24 The Greening of Corporate America SmartMarket Report , 2007, McGraw-HillConstruction; The Greening of Corporate America Report 2009, McGraw-HillConstruction/Siemens.25 The Greening of Corporate America Report 2009 , McGraw-Hill Construction/Siemens.26 Commercial and Institutional Green Building SmartMarket Report, McGraw-Hill Construction, 2008.

Figure 26Motivations Behind Green Building in Corporate America

Increased energy prices are a 73% major driver to green building 75%

Government regulation 29% is driving green building 40%

Globalization is 25% 2009motivating green building 26%

Understanding ROI for 26% 2006green buil d ing is challenging 27%

Lack of service providers 14% is limiting adoption 20%

of green building

Source: 2009 Greening of Corporate America Report Siemens/McGraw-Hill Construction, 2009

Figure 27Drivers Promoting Sustainability(selected by more than 50% of respondents)

Energy/costsavings

Changes intechnology

Customer need

Competitiveadvantage

Public relations/media coverage

Increasedregulation

67%

66%

65%

59%

91%

79%

Source: 2009 Greening of Corporate America Report ,Siemens/McGraw-Hill Construction, 2009

Figure 28Most Important Key Driver in Promoting Corporate Sustain-ability (by Position in Firm)

60%

45%

30%

15%

0%Energy & Cost Savings Competitive Advantage

37% 37%

51%

17%

9%

2%

Chief Executive Officer

Chief Financial Officer

Chief SustainabilityOfficer

Source: 2009 Greening of Corporate America Report ,Siemens/McGraw-Hill Construction, 2009

http:///reader/full/buildings.25http:///reader/full/buildings.25http:///reader/full/hindrance.26http:///reader/full/hindrance.26http:///reader/full/buildings.25http:///reader/full/hindrance.26


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T o t a

l

C o m

m e r

c i a l

R e s i d

e n t i a

l

T o t a

l

C o m

m e r

c i a l

R e s i d

e n t i a

l


Figure 29Green and Energy-Efficient BuildingEnergy-Efficient and Green Building Market Share of 2009

Market Opportunity Commercial Retrot and Renovation Construction ActivityEnergy-Efficiency Improvements Are a Well-Established Part of Commercial Renovationand Retrot Practice

In 2009, the overall value of the major retrot and alterationmarket (projects over $1 million) was approximately $41 billion.Renovation/alteration projects that include energy-efficiencyimprovements made up approximately two-thirds of that activity, 27 demonstrating a strong established market for energy efficiency, but one with room for growth.

Green building, which encompasses more than energy efficiency(see denition of green building on page 25), comprised 8% ofthe total commercial renovation and alteration work in 2009.This smaller number reects the broader acceptance of energyefficiency standards in renovation work compared to the morevaried and stringent green building requirements. 28

New Green Building Market Has GrownDramatically Over Time

In both commercial and residential new construction, the sharethat is green grew signicantly between 2005 and 2008from$10 billion in 2005 to $45 billion in 2008. Despite a dramatic

8%

66%

Green Building Energy Efficiency

Source: Green Buidling Retrot & Renovation SmartMarket Report , McGraw-Hill Construction, 2009

Figure 30Green Building Market Size (20052008)

60

$45

$29

$16 $10

$3 $7

downturn in the residential market, the residential share that 45was green also grew from 2% to 8% of the market from 2005 to2008. 29

$ ( b i l l i o n s

)

30This market growth has implications for energy efficiency, whichis one of the fundamental aspects of a green building. As greenbuilding becomes standard construction practice, energy effi 15 ciency will become a core aspect of buildingsboth residentialand commercial.

0

2005 2008 Source: Green Outlook 2009 , McGraw-Hill Construction, 2008

27 Note: Even if a project includes an energy-efficient feature, that does not suggest that the entire value of that retrot/renovation project can be attributedto energy efficiency practices.28 See page 25 for denition of a green building.29 Green Building Outlook 2009 , McGraw-Hill Construction, 2008.

http:///reader/full/requirements.28http:///reader/full/requirements.28http:///reader/full/requirements.28


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45%

73

71%

84%

78%

%


Commercial Building TrendsImproved Energy Performance Is the MajorDriver and a Highly Valued Aspect of GreenCommercial Buildings

The same factors inuence owners of new green buildings andowners of existing buildings considering a greenrenovation/retrot, but not always to the same degree.

Energy cost increases: Though a green building is focused on more than just energy efficiency, the most important driver moving an owner toward green building isthe price of energyboth for new and existing buildings.

Performance: Superior performance, such as through energy and water savings or increased occupant well-beingand satisfaction, is also an important driver for owners toinvest in green buildings. This bodes well for specic energy and water-efficient technologies and practices sincethey are the easier aspects of green buildings to measure.

Government inuence: Government mandates (regulations) are equally inuential for owners of new buildingsand existing buildings, while incentives (rebates) areslightly more inuential at inuencing new green buildingconstruction.

Selection of Green Products for CommercialRetrot and Renovation Projects Corresponds to Overall Emphasis on BuildingEnergy Performance

There are a variety of products and practices that owners reporthaving included in their green retrot and renovation projects,including energy efficient technologies.

Most owners who engage in green retrots and renovations install energy-efficient lighting and mechanical systems. Thoughthere are a variety of other products and practices beyond energy efficiency used in these projectswhich denes them as

green renovation or retrot projectsnearly all of them are improving lighting. There are a number of reasons likely, includingthe higher nancial return on investment, availability of technology and practices familiar to designers and contractors.

Figure 31Building Owners: Triggers for Greening Buildings(new and existing)

87%

72%

74%

68%

68% 60%

44% 54%

60% 60%

63% 49%

61% 49%

NewConstructRetrot/Renovatio

Source: Commercial & Institutional Green Building SmartMarket Report , McGraw-Hill Construction,2008; Green Building Retrot & Renovation SmartMarket Report , McGraw-Hill Construction, 2009

Figure 32Popular Products for Building Owners ConductingRetrot/Renovation of Existing Buildings

Energy-EfficientMechanical Systems

Energy - EfficientLighting

OccupancySensors

IndividualLighting Controls

Water-EfficientPlumbing

Individual ThermalComfort Controls

9

Source: Green Building Retrot & Renovation SmartMarket Report ,McGraw-Hill Construction, 2009



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Residential Building TrendsGreen Homeowners Are as Concerned AboutEnergy Efficiency as Green CommercialBuilding Owners

Homeowners engaged in green remodeling are as energy con-scious as consumers buying new green homes or commercialbuilding owners. Again, though energy efficiency is not the soleenvironmentally benecial aspect of their green homes, it is acore factor, as is homeowner comfort.

Efficient HVAC systems are the most common feature re-ported to be used in green home remodeling. Despite

potential higher rst costs, HVAC systems have a numberof factors behind their increased use, including their needfor replacement, cost savings from energy savings andimproved comfort.

Building envelope improvements that increase energy ef-ciencynew windows, window equipment anddoorsare another prominent feature. These productsalso have cost, environmental and comfort benets. Theprevalence of these products may suggest a positive in-uence from government rebate s and tax incentives.

Water efficiency is also important in plumbing upgradesor repairs, with more than one fth reporting this aspectof their projects.

Figure 33Features Most Often Replaced in Green Home Remodeling(according to Homeowners)

49HVAC

New/Replacement 47%Windows

Windows Equipment/Hardware

Doors

Plumbing

Siding

Roong

Flooring

Cabinets/Countertops

12%

10%

21%

21%

19%

33%

30%

Source: The Green Home Consumer SmartMarket Report ,McGraw-Hill Construction, 2008



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Home Builders Recognize Importance ofEnergy Efficiency to Green Homeowners

Home builders recognize green homeowner concerns as themain drivers for the market. When measuring obstacles to greenmarket growth, home builders are also concerned about thecosts of projects, but there are a number of factors driving themtoward green home building activity.

Energy costs: In 2008, home builders reported two factors as having the greatest impact on the potentialgrowth of the green home building market: energycosts/utility rebates and a greater emphasis on efficiency.

Consumer demand: When asked to rank factors having

the most inuence , half the home builders noted the inuence of consumer demand on the green housing market. This was particularly true of larger builders versussmall, custom builders.

Nearly all home builders surveyed report using some featurewith a high level of energy efficiency in the green homes theyconstruct.

Low-E glass was very common, with 87% reporting itsuse.

Energy-efficient appliances with the ENERGY STAR labelwere reported used by 80% of builders, though this mayrefer to only one type of appliance.

Features that improve building envelope and HVAC werealso important, being used by over 60% of builders.

30 U

energy efficiency trends in residential and commercial buildings

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