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Energy Labeling Policy for U.S. Homes and Buildings

Energy Labeling Policy for U.S. Homes and Buildings National League of Cities EENR Steering Committee Fall Meeting August 27, 2010 | Gillette, WY. Andrew Burr Program Manager, IMT andrew@imt.org. Institute for Market Transformation www.imt.org.

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Energy Labeling Policy for U.S. Homes and Buildings

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  1. Energy Labeling Policy for U.S. Homes and Buildings National League of Cities EENR Steering Committee Fall Meeting August 27, 2010 | Gillette, WY Andrew Burr Program Manager, IMT andrew@imt.org Institute for Market Transformation www.imt.org

  2. 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

  3. ASHRAE Existing Buildings in Urban Areas Conference What is Building Energy Labeling? • Label = Comparative energy performance measurement, rating and disclosure • Asset rating – Measures structural performance • Operational rating – Measures actual performance • Commercial and residential labeling highly segmented

  4. ASHRAE Existing Buildings in Urban Areas Conference Residential Labels Energy Performance Score label HERS label

  5. ASHRAE Existing Buildings in Urban Areas Conference Residential Labels DOE EnergySmart Home Scale

  6. 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)

  7. ASHRAE Existing Buildings in Urban Areas Conference Commercial Labels ENERGY STAR label ASHRAE Building EQ label

  8. ASHRAE Existing Buildings in Urban Areas Conference Why are we Labeling Buildings? U.S. Energy-Related Carbon Dioxide Emissions by End Use Sector, 2008

  9. ASHRAE Existing Buildings in Urban Areas Conference Why are we Labeling Buildings? • 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

  10. ASHRAE Existing Buildings in Urban Areas Conference Leveraging the Market?

  11. 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 Chains US Law to Make Calorie Counts Hard to Ignore

  12. ASHRAE Existing Buildings in Urban Areas Conference Get the Market Thinking About Energy • 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)

  13. ASHRAE Existing Buildings in Urban Areas Conference Energy Labeling Cycle of Improvement

  14. Market Premiums of Energy Star-labeled U.S. Commercial Buildings • See www.imt.org/rating-value for more information

  15. 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

  16. ASHRAE Existing Buildings in Urban Areas Conference SEATTLE (‘10) U.S. Labeling Policies State and local PORTLAND, ORE. WASHINGTON (‘09) MAINE OREGON MASSACHUSETTS NEW YORK CITY (‘09) ILLINOIS MARYLAND SAN FRANCISCO DISTRICT OF COLUMBIA (‘08) NEW MEXICO CALIFORNIA (‘07) AUSTIN (‘08) Existing Rating + Disclosure Under Consideration Public Buildings Only Existing Residential Disclosure

  17. 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

  18. ASHRAE Existing Buildings in Urban Areas Conference NYC Greener, Greater Buildings Plan • Enacted 2009 • Requires: • Building Energy Rating and Disclosure • Water Benchmarking • Tenant Submetering • Lighting Upgrades • Code Improvements

  19. ASHRAE Existing Buildings in Urban Areas Conference NYC Greener, Greater Buildings Plan • *“Energy Star rated” data from EPA Energy Star Snapshot Spring 2010 report. “Potential” data from PlaNYC Report

  20. ASHRAE Existing Buildings in Urban Areas Conference Federal 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

  21. ASHRAE Existing Buildings in Urban Areas Conference Administration 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

  22. ASHRAE Existing Buildings in Urban Areas Conference DOE 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

  23. ASHRAE Existing Buildings in Urban Areas Conference NBRP Mock Labels

  24. ASHRAE Existing Buildings in Urban Areas Conference Other 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

  25. ASHRAE Existing Buildings in Urban Areas Conference SAVE Act • Average annual energy costs exceed taxes and insurance, which are underwritten in mortgages

  26. 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 Closing Thoughts

  27. Thank you! Questions? www.imt.org Andrew Burr Program Manager, IMT Andrew@imt.org

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