Infrastructure and Investment Opportunities for

Energy Efficiency in Buildings

Visit with the Inter-American Visit with the Inter-American Development Bank

Jeffrey HarrisVice President - Programs

Overview

1) Why buildings?2) New Buildings3) Existing Buildings3) Existing Buildings4) Cross-Cutting Strategies

Commercial Building Energy: Fastest Growth

Percent Change, 2010 to 2030

Elements of a Zero-Energy Buildings Strategy

� Research and Development – Create new technology- RD&D Partnerships with Industry

� Incentives & voluntary programs – Create buyer demand- Tax incentives, rebates, loan guarantees, etc.- Utility programs (DSM, Demand Response, REPS/EEPS)- Utility programs (DSM, Demand Response, REPS/EEPS)

� Public Education – Build market share- Consumer education and awareness campaigns- Energy labels (equipment and buildings)

� Standards – Set a floor & trigger innovation- Appliance standards, building codes, vehicles- Utility Energy Efficiency Resource Standards (EERS)

� Public sector leadership – Reduce market risk� Workforce development – Capacity building

Setting a Long-term Goal: “Net-Zero” Energy

Defining NZE: A building that is designed, constructed, and operated: operated: - To greatly reduce energy use (i.e. ~80%)-…and meet remaining energy needs from

renewable sources- Carbon-neutral- Economically viable (net-zero cash flow)

Changing Policy Landscape for NZE Buildings

� Architecture2030, Cool Mayors, AIA “commitment”� ASHRAE Std 90.1, Std 189, Advanced Guides� NAHB Green Standard & ICC Green Code� California AB 32 & Strategic Plan� California AB 32 & Strategic Plan� Federal goals for NZE- Existing & new buildings- Zero Energy Commercial Buildings Initiative

� 2007 EISA, 2008 tax credit extensions, 2009 ARRA� Next: ACES, ACELA, ECJAPA… – and EPA

regulation of GHGs (?)

Commercial Sector –Where Are We Today?

“Net-Zero”

Source: R. Anderson, NREL

Driving Efficiency through Building Energy Codes

� Federal legislation pending- 30% improvement in model energy codes by 2010- 50% before 2020

� 2009 IECC Model Energy Code for Homes:-- ~13% efficiency improvement over 2006- Remainder of 30%+ goal in 2012 code cycle

� ASHRAE 2010 Goal (Commercial): 30% by 2010� Cumulative savings thru 2020: 4 quads (1015

Btu); ~230 million tons CO2

Multi-Level Alliance Strategy for Energy Codes

1) Code Advancement- EECC advocates for stronger Model Energy

Code- BEECN pursues legislation for national code - BEECN pursues legislation for national code

targets and funding

2) Code Adoption- BCAP & RECA pursue state by state action

3) Code Implementation (compliance)- BCAP technical support for statewide

planning & implementation

Potential Savings from Codes

� By 2030 our nation could save each year:� 8% of total building energy use� $28 billion a year in consumer energy bills

CO emissions of 46 million autos� CO2 emissions of 46 million autos

New Codes Paradigm: 1) “Dynamic” Codes

Ene

rgy

Use

1) Make regular code advancement the norm (create market expectation of continuous improvement)

Ene

rgy

Use

Years

2) Prepare market for the next step:� Training� Incentives� Recognition

New Codes Paradigm: 2) “Technology-Ready”

� Current approach: -We make decisions on a 30-50+ year asset

based on ~5 year economics (builder or first owner)owner)- Codes represent the low end of the “Valley of

Economic Indifference”

� New approach:- Pay most attention to most permanent feature-Where feasible, build in “technology-readiness”

Existing Buildings: No Silver Bullets!

� “Deep” retrofits vs “opportunistic upgrades”� Innovative financing (PACE, utility-bill

financing, neighborhood targeting, etc.)financing, neighborhood targeting, etc.)� Energy management as a process not an

event (Retro-Cx, operator training, etc.)� Feedback, benchmarking, energy rating &

disclosure

Building Energy Rating and Disclosure

� Goals: -Make energy performance visible to the market- Capitalize (securitize) future $ savings

� Labeling approach:-

� Labeling approach:- Technically valid – and perceived as valid- Empirical – based on available data (or “default”)- Practical – consider cost vs value of information- Target key decisions (decision-makers) :

� Asset rating (buy/sell/rent/finance)� Operational rating (manage, retrofit)� Main EE features (all)

- Universal (mandatory not voluntary)

Building Energy Performance: Labels, Labels, Everywhere!

Federal Building Successes –But a Steeper Path Ahead!

10% Goal - 1995 (NECPA)Actual Energy Use

Actual site energy use

120

130

140

Site Energy, 1000 Btu/sq.ft.

FISCAL YEAR

20% Goal - 2000 (EPACT)

30% Goal - 2005

35% Goal - 2010

1985 1990 1995 2000 2005 2010

110

100

90

120

Site Energy, 1000 Btu/sq.ft.

29.6% Reduction, 2005

Putting It All Together: Zero Energy Commercial Buildings Initiative

� Authorized in EISA (12/07)� Net-zero commercial building goals- 2030: New construction- 2050: Entire stock

Broad government/industry consortium� Broad government/industry consortium� Comprehensive approach (R&D deployment)� Coordinate (initiate) national and local actions- Measure, benchmark, disclose energy performance- R&D for critical technologies and systems - Demo’s: scalable, replicable system solutions- Transform market: Education/training, finance,

appraisal, incentives, codes, buyer demand-pull

Leveraging Financial Resources

Retrofit

Construction Bid Range: 5-15%

“Waste” in Industry: 10-30%

Cost of “green”: 0-5%

Cost of ZEB: 0-20%

18

Deployment

Programs

$2 Billion/yr

National

ZEB Program

$200 Million/yr

New Construction

$200 Billion/year

Energy Costs

$150 Billion/year

Retrofit

$200 Billion/year

Thinking “Outside the [Building] Envelope…”

� Locational efficiency- Transit-Mixed-use

Grid integration (“net-zero energy” � Grid integration (“net-zero energy” framework is incomplete)- Smart grids-Microgrids

� Rediscover district heat/cooling� Managing potable water (“use cascading”)

THANK YOU –Questions?

Jeffrey HarrisVice President – Programs

JHarris@ase.orgJHarris@ase.org202 530 2243www.ase.org