# Presentation: 876726

## Beyond Requirements:Use ENERGY STAR for Effective Energy Management

- Beyond Requirements:Use ENERGY STAR for Effective Energy Management

**Jean Lupinacci, **
**US EPA**
**Federal Environmental Symposium**
**June 5, 2007 **

**Notes:**
Good morning/afternoon. My name is Clark Reed, and with are Brian Dean and Erin Milfeit.  We work on the Healthcare Team at Energy Star, helping our hospital partners attain higher energy performance of their facilities.  Thank you for your interest in Energy Star.  We are very pleased to be here to speak about how you can use the US EPA’s energy performance rating system to determine the energy performance of your facilities.  We intend this to be an interactive session so during the next hour, please feel free to raise questions or comments.  

## Federal Agencies Lead on Energy

- Legislation and Executive Order:
- Reduce energy intensity and greenhouse gas emissions relative to 2003 by:
- (i) 3 percent annually through the end of fiscal year 2015, or
- (ii) 30 percent by the end of fiscal year 2015,
- Reduce water consumption intensity, relative to the baseline of the agency’s water consumption in fiscal year 2007 by:
- 2 percent annually through the end of fiscal year 2015 or
- 16 percent by the end of fiscal year 2015;
- Implement sustainable/high performance buildings in new construction and major renovation:
- comply with *Federal Leadership in High Performance and Sustainable Buildings MOU  (2006)*, and
- (ii) 15 percent of the existing Federal capital asset building inventory of the agency as of the end of fiscal year 2015 incorporates the sustainable practices in the Guiding Principles;
- Install meters and advanced electric meters on all federal buildings (where practicable) by 2012,

## Instructions:Executive Order 13423

- Use ENERGY STAR Tools:
- Meet Energy Star Building criteria:
- Use Portfolio Manager to track energy and water use in all facilities
- Integrate rating tool into facility audits:
-  10% of facilities each year
- Meter facilities to track and benchmark energy
- Procure ENERGY STAR and FEMP designated products
- Sustainable Design:
- Establish whole building energy performance target
- Design to Earn ENERGY STAR
- After one year- rate buildings using ENERGY STAR
- Enter building into DOE High Performance Building Database:
- Include ENERGY STAR rating

## Tools to Facilitate Energy Management

- Identify key components from successful programs.
- Provide tools at each step along the way
- Think beyond requirements

- Tools to Facilitate Energy Management

- ENERGY STAR Guidelines for
- Energy Management

**Notes:**
Leading organizations develop a systematic approach to energy management.
Because ENERGY STAR has active participation with organizations that represent over 13% of the commercial floor space, and more than 7,000 businesses and organizations, EPA has been able to distill the common elements of  successful practices.  And in turn have created guidelines to help others adopt a superior energy management approach, which is represented in this graphic.
The first step is making a top-level commitment to continuous improvement of energy performance.  [If appropriate:] If your organization is not an ENERGY STAR partner, you are missing an opportunity to demonstrate this commitment through ENERGY STAR.  Visit www.energystar.gov for more information.
Today, we are focusing on the second critical step, assess performance.

## Management Tools to Help

**Establishing Organizational Commitment**
- Partnership Letter
- Communication resources
**Measuring Energy Performance**
- Objective, accessible, 3rd party rating system
**Demonstrating Financial Value**
- Asset value, NOI, cost of delay
- Calculators to estimate
- Analysis to confirm financial performance link
**Recognition for Leadership**
- ENERGY STAR Label
- Awards
- Portfolio improvements

**Notes:**
Whether you are just getting started or looking for ways to supplement your current energy strategy, you can find a mulitude of resources out there.

What EPA brings to this mix is a set of tools to guide you through a successful management strategy.

Primary among these tools is a partnership with EPA, the energy performance in an on-line tracking tool called Portfolio manager, and Energy Star recognition.

## Technical Tools to Help

- Building Upgrade Manual
- Operations and Maintenance Reports
- New Building Design guidance
- Case Studies/Registry of Energy Star qualified buildings
- Monthly partner networking meeting to exchange best practices

- www.energystar.gov

**Notes:**
But EPA also provides technical tools on our website.

The Building upgrade manual provides more guidance on the 5 Staged approach, with individual chapters dedicated to building tune up and load reductions.

There are O&M reports and case studies are also available, which were co-funded with DOE.

You can find the Registry of Energy Star qualified buildings, many of which have written case studies.

And for Energy Star partners, EPA holds monthly web conferences to provide a forum to network and exchange energy practices.

Thank you for your attention.  And please feel free to contact me if you have any questions later.

## Beyond Requirement: Assess Building Performance

- Why?
- Understand organization-wide resource use
- Establish baseline to measure progress
- Prioritize energy efficiency investments
- Enable benchmarking comparisons and goal setting
- Set appropriate, aggressive energy targets for new buildings
- Verify savings

**Notes:**
Assess your company wide energy use, establish baselines, set goals.

Adding the element of benchmarking enables organizations to compare to their competitors and to seek out best practice.

These steps provide the necessary basis for identifying investment needs and securing resources as well as defining and ranking individual project investments.

## How Does Your Building Perform?

**Fuel Efficiency Rating: MPG**

- Is 10 MPG high or low for an automobile?

- Is 65.7 kBtu/sf/yr high or low for a building?

**Vehicles**

**EPA Energy Performance Rating: kBtu/sf/yr**

**Buildings**

**Notes:**
Note:  this is the first slide that uses the term kBtu—check with the attendees to see if anyone needs you to define it

So now, anyone can understand how well a building performs by knowing its energy performance rating, just as anyone can quickly understand how fuel efficient a car is by knowing how many miles per gallon it will get.
The SEP is analogous to the sticker that is placed in the window of a new car. Just as the MPG sticker provides useful information for making an automobile purchasing decision, the energy performance rating offers useful information when conducting numerous building transactions (contracting energy services, leasing space in a building, purchasing real estate, etc.).

(If you have time and it is appropriate for your sector, you may want to discuss the following—this seems to come up a lot, people think their buildings are more energy efficient if the energy costs are passed through to the tenant (occupant). 

Try to engage attendees in the discussion:
Is a car more efficient if you can buy gas in a rural area for 25 cents less than you can buy gas in the city?
NO, buying gas at a cheaper rate doesn’t make the car more energy efficient—it makes it more cost efficient.  
Similarly, buying energy off peak demand is a smart cost efficient approach that results in higher profits, but it DOES NOT make the building more energy efficient.  

Likewise, passing energy costs through to the tenant (occupant) does NOT make the building more energy efficient.

## Huge Variation in Energy Performance 

- * Normalized energy intensity varies widely
- *Age and equipment are not predictors of energy use

- Huge Variation in Energy Performance

**Notes:**
This slide shows the distribution of actual energy use/sq. ft. of existing OFFICE buildings.  The chart uses data from the U.S. commercial buildings energy consumption survey (CBECS) conducted by DOE.   

What you will notice is that there is wide variation of energy use in office buildings. This is after energy use is adjusted for factors that can lead to differences in energy requirements for buildings, like weather, hours of operation, number of occupants, and number of computers. And although the chart above is a representation of office building energy use, the same general principle can be applied to other building types.  

Factors which you may believe will predict which buildings fall among the best and worst performers is not necessarily always the case.  Essentially, newer buildings, with newer technologies, appear with similar frequency among the worst performing buildings as they do among the best.  

## EPA Energy Performance Rating System

- Normalizes building energy consumption
- Weather, hours of operation, number of occupants, plug load
- Whole building “mpg” rating
- Benchmarks for comparison
- Similar buildings in national stock
- Building assigned 1-100 score
- Recognizes top performing buildings
- Top 25% qualify for ENERGY STAR
- Recognizes portfolio improvement
- Baseline improvements of 10, 20 and 30 points

**Notes:**
What does the EPA energy performance rating system do?  You input a year’s worth of energy data and some key characteristics of your building, and the system provides you with a rating on a scale of 1-100.  In addition to sf, the energy performance rating normalizes for weather, hours of operations, occupant density, and plug load.

A building’s ENERGY PERFORMANCE RATING can be compared to similar buildings across the US

Top performing buildings are recognized for outstanding performance, we’ll talk more about recognition opportunities and the ES label throughout the training.

The ENERGY PERFORMANCE RATING SYSTEM will also be able to identify portfolio improvement.

## Eligible Space Types

**K-12 Schools**

**Hotels**

**Supermarkets**

**MOBs**

- Others include: Warehouse, Residence Halls, Courthouses, Financial Centers

**Notes:**
8 space-types can currently use the rating system.  Medical office buildings and acute care and children’s hospitals can be benchmarked using the system.  If you have a multiple building campus, then the score you receive will be for the entire campus.

One-third of the acute care market has already rated their energy performance using EPA’s tool.  And much of this activity has been as a result of ASHE members who tell us they regularly track and manage their energy use.  

## www.energystar.gov/benchmark

**Notes:**
Supporting documents and information

Login button

## Portfolio Manager Benefits

- Secure facility data sharing
- Assess, rank and create benchmarks across portfolio
- Track reductions in energy and water use for all facilities and portfolio
- Rate buildings and use in conjunction with ESPC contracts
- Gain recognition for improvement or top performance

**Notes:**
Portfolio Manager, EPA’s tool that houses the rating system, has several features to help organize data and simplify organization-wide energy management. 

These features include the ability to securely share facility data with other users, customize views for specific data, and group facilities in your portfolio by common characteristics.  We’ll look at how to use these and other features as we go through the tool.

The Portfolio Manager which houses the facility rating capability, can also give you an average energy performance rating for an entire portfolio of eligible buildings. 

## Rating to Assess and Set Goals

- Prioritize buildings for improvements

**Notes:**
U.S. EPA’s energy performance rating system provides a third party evaluation of your customers’ properties – the scores can be understood at any level of your customer’s organization, and you can use the ratings to:

Sell higher in the organization, engage customers at the portfolio level, set priorities across portfolios, and facilitate aggressive upgrade projects,.

You can work with your customers to develop a plan of action once you have benchmarked their facilities.
If your customer’s buildings receive a rating and is considered among the:
Lowest Performers —  scoring 1 to 49
These facilities are performing below the national average and present the greatest potential for financial and environmental improvement. 

If they are among some of the:
Above Average Performers — scoring 50 to 74
Energy performance in these facilities is considered above the industry average, and may be within reach of achieving the Energy Star label with no-cost, low-cost measures, such as O&M.

If they are among some of the:
Top Performers — scoring 75 to 100
Then they are in the top 25% of the industry in terms of energy performance.  They can provide lessons learned to apply across the portfolio and present a great opportunity for publicity–to internally recognize staff and externally demonstrate environmental leadership.  These facilities are eligible for the ENERGY STAR label. 

## Continuous Process

## Are Your Projects... 

- Are Your Projects...

- U.S. ENVIRONMENTAL PROTECTION AGENCY

**Notes:**
E* is a voluntary program within EPA’s office of Air & Radiation
It is a public/private partnership aimed at reducing greenhouse gas emissions through energy efficiency.

## Yes.....

- If they are designed to:
- Aggressive whole building energy use targets
- Include all energy uses in the building
- Eligible to earn the ENERGY STAR when the building meets energy criteria and maintains superior performance after one year.

## Target Finder Sets Design Goals

## Join a Growing Trend..

- 5 billion square feet;
- 30,000 buildings rated;
- 3,600 buildings ENERGY STAR
- +160 federal