1 | Building Technologies Program eere.energy.gov The Parker Ranch installation in Hawaii 

## BUILDING TECHNOLOGIES PROGRAM

Fossil Fuel Energy Consumption Reductions in New and Major Renovations in Federal Buildings 10 CFR Parts 433 and 435 Margo Appel U.S. Department of Energy Energy Efficiency & Renewable Energy Margo.Appel@ee.doe.gov November 12, 20102 | Building Technologies Program eere.energy.gov 

### ● Introductions ● Meeting Ground Rules ● Background ● Objective and Schedule ● Enabling Legislation ● Scope of Fossil Fuel Reductions ● Request for Comments on the following topics  Buildings Subject to the Rule  Energy Calculations  Baseline Energy Use  Climate Adjustment  Regional Fossil Fuel Mix  Calculating Energy Use and Credits  Cost Analysis  Petitions for Downward Adjustments  Additional Training Needs 

## Today’s Agenda3 | Building Technologies Program eere.energy.gov 

### ● DOE is developing a rule designed to eliminate fossil fuel - generated energy consumption in certain new Federal buildings and Federal buildings undergoing major renovations ● DOE has published a Notice of Proposed Rulemaking (NOPR) that proposed to:

 Implement the statutory requirement to reduce fossil-fuel generated energy consumption in specified Federal buildings  Clarify which building types are covered and excluded  Establish a methodology for compliance with graduated percentage reduction requirements  Establish procedures for agencies (other than GSA) to petition DOE for downward adjustment of the applicable percentage reduction requirement 

## Background4 | Building Technologies Program eere.energy.gov 

### ● NOPR published October 15, 2010 (75 FR 63404) ● Today’s public hearing is to accept public comments on this NOPR (November 12, 2010) ● DOE will accept written comments, data, and information regarding this NOPR no later than December 14, 2010 ● DOE expects to issue a final rule in August 2011 ● The proposed effective date of the rule is one year after publication  Rule would apply to covered buildings for which design for construction begins at least one year after rule publication date 

### ● Rule will be developed concurrent with NOPR on Sustainable Design Principles for Federal buildings (75 FR 29933)

 Both NOPRs propose changes to 10 CFR Parts 433 and 435 

## Meeting Objective and Schedule5 | Building Technologies Program eere.energy.gov 

### ● Energy Conservation and Production Act (ECPA), as amended by Section 433 of Energy Independence and Security Act (EISA) of 2007, requires DOE to establish fossil fuel - generated consumption reduction requirements for specified new Federal buildings and major renovations based on similar buildings as measured by Commercial Buildings Energy Consumption Survey or Residential Energy Consumption Survey ● ECPA requires graduated reductions in fossil fuel - generated energy consumption in five year increments from FY 2010 to FY 2030 (and beyond) ● DOE regulations will be incorporated into:  10 CFR Part 433 – Energy Efficiency Standards for the Design and Construction of New Federal Commercial and Multi-Family High -Rise Residential Buildings  10 CFR Part 435 – Energy Efficiency Standards for New Federal Low-Rise Residential Buildings 

## Enabling Legislation and Regulatory Requirements6 | Building Technologies Program eere.energy.gov 

### ● New Federal buildings and Federal buildings undergoing major renovations that are:

 Public buildings (as defined by 40 U.S.C. 3301, for which GSA must submit a prospectus to Congress); or  For which construction costs are at least $2.5 million 

### ● Public buildings are generally suitable for use as office or storage space  Definition does not include some building types/uses 

### ● Scope includes leased buildings:  New public buildings built for purpose of being leased by a Federal agency  Major renovations to leased buildings over which Federal agency has significant control over renovation design 

### ● DOE is addressing the definition of “new Federal building” and “major renovation” in the Sustainable Design Principles NOPR (75 FR 29933) 

## Scope of Buildings Subject to the Rule7 | Building Technologies Program eere.energy.gov 

## Buildings Subject to the Rule

Issue Request comment on the definition of construction costs to determine which buildings are subject to these requirements includes design, permitting, construction (materials and labor), and commissioning, but excludes land and legal costs.8 | Building Technologies Program eere.energy.gov 

### ● Under ECPA new Federal buildings and major renovations must reduce fossil fuel - generated consumption according to the following schedule: 

## Fossil Fuel Reduction Requirements

Fiscal Year Fossil Fuel Use Reduction * 2010 - 14 55% 2015 - 19 65% 2020 - 24 80% 2025 - 29 90%

2030+ 100% * Reductions compared to CBECS / RECS Baselines9 | Building Technologies Program eere.energy.gov 

### ● Three step process to determine compliance with fossil fuel reduction requirement: 1. Establish Baseline Fossil Fuel- Generated Energy Use 2. Establish Maximum Allowable Fossil Fuel- Generated Energy Use 3. Determine Fossil Fuel- Generated Energy Use of Proposed Building/Renovation Design 

### ● After FY 2030 the fossil fuel reduction requirement is 100 percent, so calculations are not required 

## Overview of Methodology to Determine Compliance10 | Building Technologies Program eere.energy.gov 

### ● From CBECS, RECS data (as required by statute)  13 commercial building types; 5 residential building types  Based on national average (climate zone bins too small) 

### ● Uses source energy  71% of electricity nationwide is fossil fuel-based  Assume 33% conversion efficiency of fossil fuels to electricity 

### ● Plug and process loads are included in the baseline ● DOE considering regional adjustments to baseline data for climate and source of electricity (e.g., coal, oil, gas, non - fossil) ● For building types not reported in CBECS or RECS:  ASHRAE Performance Rating Method (non -residential)  IECC Total Building Performance Method (residential) 

## Step 1: Establish Baseline Fossil Fuel Usage11 | Building Technologies Program eere.energy.gov 

## CBECS Fossil Fuel - Generated Energy Consumption Baseline Building Type Baseline ( Kbtu/ft2/yr) Education 126 Food Sales 387 Food Service 404 Health Care (Inpatient) 313 Health Care (Outpatient) 148 Lodging 148 Retail (Other Than Mall) 126 Office 160 Public Assembly 125 Public Order and Safety 146 Religious Worship 62 Service 113 Warehouse and Storage 6612 | Building Technologies Program eere.energy.gov 

## RECS Fossil Fuel - Generated Energy Consumption Baseline Building Type Baseline ( Kbtu/ft 2/yr) Single - Family Detached 59 Single - Family Attached 66 Multi - Family in 2 - 4 Unit Buildings 105 Multi - Family in 5 or More Unit Buildings 94 Manufactured Homes 11513 | Building Technologies Program eere.energy.gov 

## Baseline Energy Use

Issue Request comment on proposal to apply ‘per square foot energy use for residential spaces’ to residential common areas. Issue How should plug and process loads be addressed? Should they be included or removed from the calculations? On what grounds? Issue Request comment on building type categories and definitions.14 | Building Technologies Program eere.energy.gov 

### ● NOPR uses national average, non - adjusted for climate  CBECS/RECS sample sizes not statistically significant by climate zone 

### ● Oak Ridge National Laboratory developing a procedure to adjust CBECS data based on relative climate differences from simulations of DOE prototype buildings ● While climate - adjusted approach may be more equitable for buildings in colder climates, ECPA requires 100% reduction by FY 2030 

## Climate Adjustment15 | Building Technologies Program eere.energy.gov 

## Climate Adjustment

Issue - Should the baseline and maximum allowable fossil fuel generated energy consumption targets be adjusted for climate? (DOE IS CONSIDERING INCLUDING A CLIMATE ADJUSTMENT FOR CALCULATIONS UNDER THE INTERIM REDUCTION REQUIREMENTS )16 | Building Technologies Program eere.energy.gov 

### ● NOPR uses national average fossil fuel mix for electric generation of 71% ● DOE is considering a regional source electricity adjustment based on carbon component of electric power mix

 Differentiate between coal, oil, natural gas, and non -fossil sources 

### ● What are the appropriate regions?  State? Utility? Power pool? Interconnection grids (Eastern grid, Western grid, Texas)? 

### ● Analysis must also address the fossil fuel mix of the electricity purchased (i.e. retail sales) as opposed to produced in an area

 Power may be purchased from ‘out-of -area’  Data on source of electricity used in an area is not as readily available 

## Regional Fossil Fuel Mix for Electricity17 | Building Technologies Program eere.energy.gov 

## Regional Fossil Fuel Mix for Electricity

Issue - Should DOE use national or regional fossil fuel factors for electricity consumption? If regional, how? Issue - Should coal, oil, and natural gas be treated differently based on carbon content (CO2 emissions) or some other factor?18 | Building Technologies Program eere.energy.gov 

### ● Convert mandated reduction to maximum allowable fossil fuel consumption

 Maximum Allowable = Baseline minus mandated percentage fossil fuel reduction 

### ● Calculating maximum allowable fossil fuel use consumption is necessary for compliance  Energy used is easier to measure than energy not used 

### ● Maximum Allowable fossil fuel use includes plug and process loads 

## Step 2: Establish Maximum Allowable Fossil Fuel Use19 | Building Technologies Program eere.energy.gov 

## Maximum Allowable Fossil Fuel Generated Energy Use - Commercial20 | Building Technologies Program eere.energy.gov 

## Maximum Allowable Fossil Fuel Generated Energy Use - Residential21 | Building Technologies Program eere.energy.gov 

### ● DOE proposes use of Performance Rating Method in Appendix G of ASHRAE Standard 90.1 - 2004 (i.e., whole building simulation) to estimate the energy use of the proposed design and determine compliance for commercial and multi -family high - rise residential buildings ● Use IECC Total Building Performance Method for low - rise residential buildings ● Plug and process loads are included in baseline, and are included in calculation for consistency ● Source - energy gives benefit to on - site renewables and Combined Heat and Power (CHP)

 Use of on -site renewable energy is not included in estimated energy use  On -site Combined Heat and Power (CHP) systems benefit from source energy approach because of their inherent efficiencies compared to purchased electricity 

## Step 3: Calculate Fossil Fuel Use of the Proposed Building22 | Building Technologies Program eere.energy.gov 

### ● DOE proposes to not allow purchase of Renewable Energy Certificates (RECs) to count towards meeting maximum allowable fossil fuel consumption (no long -term guarantee and use is being phased out by Jan. 2012) ● DOE proposes to allow direct purchase of electricity from renewable resources through Power Purchase Agreements to count towards meeting maximum allowable fossil fuel consumption 

## Purchase of Renewable Energy Produced Off- Site23 | Building Technologies Program eere.energy.gov 

## Energy Use of Proposed Design

Issue Request comment on the calculation method to determine compliance. Issue A whole building simulation is implied. What are reasonable alternatives to a whole building simulation? Issue Should credit be given for Renewable Energy Certificates (RECs) and Power Purchase Agreements? Issue By using source energy, is appropriate credit given to the use of on - site Combined Heat and Power (CHP) systems?24 | Building Technologies Program eere.energy.gov 

### ● Low- energy buildings cost 1 - 7% more  “Literature Review of Data on the Incremental Costs to Design and Build LowEnergy Buildings,” PNNL - 2008 

### ● Up to 9% cost increase, based on 30% and 50% ASHRAE’s “Advanced Energy Design Guides” (AEDGs)

 Only 3 or 4 prototypes for comparison  50% AEDG is a deeper reduction (and hence more expensive) than 55% fossil fuel reduction  No comparison for out- years (65%, 80%, 90% reductions) 

## Cost Analysis

Issue DOE solicits input on cost impacts of meeting fossil -fuel energy reductions similar to those proposed in this notice, in particular from buildings already built or currently in design.25 | Building Technologies Program eere.energy.gov 

### ● Agencies may petition Secretary of Energy for downward adjustment of fossil fuel reduction requirement ● Adjustment does not apply to GSA or GSA buildings  Exception: Head of a tenant agency leasing space from GSA may petition 

### ● Proposed requirements for a downward adjustment:  Compliance with the reduction requirements must be technically impracticable in light of building’s functional needs  Requested adjustment must be largest feasible reduction in fossil fuelgenerated consumption that can reasonably be achieved  DOE must concur with this conclusion 

### ● Costs are not specifically mentioned by statute as a basis for a downward adjustment

 DOE considering allowing costs as contributing factor – but not the sole factor

– in determining whether compliance is ‘technically impracticable’ 

## Petitions for Downward Adjustment of Requirements26 | Building Technologies Program eere.energy.gov 

## Petitions for Downward Adjustment to Requirements Issue What would constitute ‘technically impracticable’ as grounds for a downward adjustment to the numeric requirement? Issue How does one demonstrate that the adjustment represents the maximum reduction that can reasonably be achieved? Issue Shall high costs be allowed as a consideration in determining whether compliance is ‘technically impracticable’? If yes, how? Issue What additional training would help agencies meet the deep reductions called for by this statute?27 | Building Technologies Program eere.energy.gov 

### ● In the subject line of all correspondence, include:  Docket Number EERE -

2010-BT - STD- 0031  Regulatory Identification Number RIN 1904- AB96 

### ● E - mail: FossilFuelReduct- 2010 - STD - 0031@ee.doe.gov ● Federal eRulemaking Portal: http://www.regulations.gov 

## How to Submit a Public Comment

Postal Mail : Brenda Edwards U.S. Department of Energy Building Technologies Program Mailstop EE - 2J 1000 Independence Avenue, S.W. Washington, DC 20585 - 0121 Courier : Brenda Edwards U.S. Department of Energy Building Technologies Program Mailstop EE - 2J 1000 Independence Avenue, S.W. Washington, DC 20585 - 0121 

### Comment period closes December 14, 2010