Energy Labeling Policy for U.S. Homes and

Buildings

National League of Cities EENR Steering Committee Fall MeetingAugust 27, 2010 | Gillette, WY

Institute for Market Transformationwww.imt.org

Andrew BurrProgram Manager, IMTandrew@imt.org

ASHRAE Existing Buildings in Urban Areas Conference

Outline

Introduction to U.S. labeling of homes and buildings

Why is it important?

Policy Overview – City, State and Federal

ASHRAE Existing Buildings in Urban Areas Conference

What is Building Energy Labeling?

Label = Comparative energy performance measurement, rating and disclosure

Asset rating – Measures structural performanceOperational rating – Measures actual performance

Commercial and residential labeling highly segmented

ASHRAE Existing Buildings in Urban Areas Conference

Residential Labels

Energy Performance Score labelHERS label

ASHRAE Existing Buildings in Urban Areas Conference

Residential Labels

DOE EnergySmart Home Scale

ASHRAE Existing Buildings in Urban Areas Conference

Residential Labels

• The housing stock is very inefficient, with a typical existing home scoring about a 130 on the E-Scale (with 100 as 2004 IECC)

ASHRAE Existing Buildings in Urban Areas Conference

Commercial Labels

ENERGY STAR label ASHRAE Building EQ label

ASHRAE Existing Buildings in Urban Areas ConferenceWhy are we LabelingBuildings?

Industrial 27%

Transportation33%

Residential21%

Commercial 19%Buildings

40%

U.S. Energy-Related Carbon Dioxide Emissions by End Use Sector, 2008

ASHRAE Existing Buildings in Urban Areas Conference

Helps us understand building performance U.S. existing building stock: ~300 billion SF = 115,00

ESBs Can’t manage what we aren’t measuring Smarter policies, effective incentives, better building

operations

Increases accountability for building energy performance

Feedback loop among architects, engineers, operators and tenants

Will help bring predicted performance in line with actual performance

Why are we LabelingBuildings?

ASHRAE Existing Buildings in Urban Areas Conference

Leveraging the Market?

ASHRAE Existing Buildings in Urban Areas Conference

A Familiar Concept

Menu Labeling to Go National, Thanks to Health Bill’s

Passage Calorie Data to be Posted at Most ChainsUS Law to Make Calorie Counts Hard to Ignore

ASHRAE Existing Buildings in Urban Areas Conference

Energy performance is a blind spot for consumers - homebuyers, homeowners, building owners, small business tenants and banks

Market can’t value what it doesn’t know

Consumers deserve this information

Creating competition based on energy efficiency will save consumers money and result in more efficient buildings (retrofits, management and behavior)

Get the Market ThinkingAbout Energy

ASHRAE Existing Buildings in Urban Areas ConferenceEnergy LabelingCycle of Improvement

Market Premiums of Energy Star-labeled U.S. Commercial Buildings

See www.imt.org/rating-value for more information

ASHRAE Existing Buildings in Urban Areas Conference

Building Labeling Policy

Innovative policies at state and local levels, some action on federal level

Voluntary labeling is not sufficient Information barriers are persistent –

labeling is the first step to improving the performance of existing homes and buildings

ASHRAE Existing Buildings in Urban Areas Conference

NEW YORK CITY (‘09)

AUSTIN (‘08)

CALIFORNIA (‘07)

SEATTLE (‘10)

WASHINGTON (‘09)

DISTRICT OF COLUMBIA (‘08)

OREGON

SAN FRANCISCO

MASSACHUSETTS

MARYLAND

ILLINOIS

Existing Rating + Disclosure

Existing Residential DisclosurePublic Buildings Only

Under Consideration

PORTLAND, ORE.

U.S. Labeling PoliciesState and local

NEW MEXICO

MAINE

ASHRAE Existing Buildings in Urban Areas Conference

Austin ECAD Ordinance

Enacted 2008 and effective mid-2009 4,500+ home energy audits conducted

Results: Ducts leak almost twice the code standard Older homes need ~10 inches of insulation

to meet Austin Energy recommended levels 68% need in-home weatherization 58% need solar shading 68% need HVAC air duct system renovation

and sealing 79% need additional attic insulation

ASHRAE Existing Buildings in Urban Areas Conference

NYC Greener, GreaterBuildings Plan

Enacted 2009 Requires:

Building Energy Rating and Disclosure

Water Benchmarking Tenant Submetering Lighting Upgrades Code Improvements

ASHRAE Existing Buildings in Urban Areas Conference

NYC Greener, GreaterBuildings Plan

*“Energy Star rated” data from EPA Energy Star Snapshot Spring 2010 report. “Potential” data from PlaNYC Report

ASHRAE Existing Buildings in Urban Areas ConferenceFederal Policy

No U.S. federal policy on labeling

American Clean Energy and Security Act (ACES, Waxman-Markey) passes House in Summer 2009

American Clean Energy and Leadership Act (ACELA, Bingaman) passes out of committee in Summer 2009

Bills direct EPA and DOE to create building energy certificates – neither has passed

ASHRAE Existing Buildings in Urban Areas ConferenceAdministration Support

Vice President Biden’s “Middle Class Task Force” and CEQ release “Recovery Through Retrofit” October 2009

Outlines economic recovery plan through creating a home retrofit industry to make homes more efficient, create jobs

Identifies home energy labeling as priority

ASHRAE Existing Buildings in Urban Areas ConferenceDOE and EPA Take Action

Create National Building Rating Program, October 2009 in DOE-EPA MOU

DOE in the process of designing a home energy label and rating methodology Includes home energy registry

Work on commercial label to follow

Reaction from industry has been mixed

ASHRAE Existing Buildings in Urban Areas ConferenceNBRP Mock Labels

ASHRAE Existing Buildings in Urban Areas ConferenceOther Federal Initiatives

EISA of 2007 (Bush Energy Bill) – requires GSA to lease space in buildings that are top Energy Star achievers beginning end of 2010

SAVE Act in drafting Mortgage underwriting would account for

expected energy costs and energy cost savings

Expected cost savings demonstrated through home energy ratings

Supported by homebuilders

ASHRAE Existing Buildings in Urban Areas ConferenceSAVE Act

Average annual energy costs exceed taxes and insurance, which are underwritten in mortgages

Closing Thoughts• Energy reduction strategies for existing buildings

must leverage the market and must bridge the information gap

• Labeling for homes and buildings is already mandatory in many other parts of the world – Europe, China and Australia

• Federal guidance can be helpful as more local policies and rating systems come online

• Most action happening in states and cities levels – Cities can lead the way by labeling city buildings and enacting local policies

ANDREW BURRPROGRAM MANAGER, IMTANDREW@IMT.ORG

Thank you!Questions?

www.imt.org