ENERGY STAR Training Update

1. ENERGY STAR Training Update Denessa Moses, Amatullah R’id and Alexandra Sullivan June 2009

2. WELCOME! • As trainers, you are leading the way in educating individuals on how to use Portfolio Manager and begin benchmarking • More than ever, it is critically important that we get the news out about PM and make sure that individuals are trained on how to use the tool • Program growth continues to reflect increased use of PM – through 2008, more than 80,000 buildings had been rated, representing more than 11.5 billion square feet • State and local governments across the country are taking bold steps to protect the environment and lower energy costs by adopting policies that leverage EPA’s ENERGY STAR tools to reduce energy use in commercial buildings, through both required policy measures and voluntary campaigns. Some examples include the following:

3. Washington– Public Building Benchmarking and ENERGY STAR Disclosure During Commercial Real Estate Transactions State Bill 5854 - 2009-10 (Signed May 8, 2009) Requires qualifying utilities to maintain records of energy data of all nonresidential customers and qualifying public agency buildings in a format compatible with EPA’s Portfolio Manager. The State will use Portfolio Manager for state-owned facilities and make resulting energy performance metrics publicly available. Beginning in 2010, eligible privately-owned commercial buildings are required to be benchmarked using Portfolio Manager and resulting metrics will be disclosed to a prospective buyer, lessee, or lender. For new construction, the WA Department of Community, Trade, and Economic Development must determine the appropriate methodology to measure achievement of state energy code targets using EPA’s Target Finder or equivalent methodology. • More at: • http://apps.leg.wa.gov/documents/billdocs/2009-10/Pdf/Bills/Session%20Law%202009/5854-S2.SL.pdf

4. New York City – Proposed Benchmarking and Disclosure for Existing Commercial Buildings • Proposed Int. No. 476-A (Introduced to City Council on April 22, 2009) • Would require eligible privately owned buildings on tax lots with more than 50,000 gross square feet of built area and all municipal buildings greater than 10,000 gross square feet to benchmark in Portfolio Manager. • Energy performance results to be published on a publicly available online database beginning September 1, 2011 for City buildings, September 1, 2012 for private non-residential buildings, and September 1, 2013 for multi-family residential buildings. More at: www.nyc.gov/html/planyc2030/html/plan/buildings_plan.shtml

5. Planned EPA Resources • Quarterly Technical Updates – Next meeting scheduled in August (date TBD) • Web Page • Monthly Portfolio Manager Update • Train the Trainer Session

6. Today’s Agenda • Provide technical update on Portfolio Manager • Give you an opportunity to ask questions • Remember to send technical questions to buildings@energystar.gov. When you send, identify yourself as a trainer and let them know who you represent and who you are training. Let us know how we can provide additional support Contact Susan Bailey at bailey.marysusan@epa.gov

7. Technical UpdatePortfolio Manager • Objectives • EPA Rating Overview • Source, Site and Emissions • Weather Normalization • Recent Changes • February 2009 • Weather Data Upload • Upcoming Changes • Portfolio Manager Reporting Feature • August 2009 Model Changes

8. Objectives • Content • EPA can share technical details about recent updates and upcoming plans • You can ask detailed questions and provide real world examples of questions from people using Portfolio Manager • Goals • Keep you informed so you are not surprised by any changes in the tool • Prepare you to respond to a variety of questions during your trainings • Alert EPA of common areas of confusion so that we may assess the need for modification to Portfolio Manager

9. EPA Rating Overview

10. EPA RatingObjectives • Help businesses protect the environment through superior energy efficiency • Motivate organizations to develop a strategic approach to energy management • Convey information about energy performance in a simple metric that can be understood by all levels of the organization

11. EPA RatingsObjectives • Monitor actual as-billed energy data • Create a whole building indicator • Capture the interactions of building systems not individual equipment efficiency • Track energy use accounting for weather and operational changes over time • Provide a peer group comparison • Compare a building’s energy performance to its national peer group • Track how changes at a building level alter the building’s standing relative to its peer group

12. EPA Ratings Technical foundation • Analyze national survey data • Commercial Building Energy Consumption Survey (CBECS) • Develop regression models to predict energy use for specific space types based on operations • Create scoring lookup table • Ratings are based on the distribution of energy performance across commercial buildings • One point on the ENERGY STAR scale represents one percentile of buildings • Buildings that perform in the 75th percentile or better can earn the ENERGY STAR label

13. EPA Ratings Technical foundation • Develop the regression model • Account for building operations (e.g., hours of operation, number of workers, number of computers, HDD, CDD) • Apply a linear regression model Energy Intensity = Co+ C1*OperatingHours + C2*WorkerDensity + C3*ComputerDensity + C4*HDD + … • Coefficients represent average responses • Coefficients provide adjustments for each operational characteristic • Does not add the kWh of each piece of equipment • Doesadjust energy based on correlation between operating characteristic and energy use

14. EPA Ratings Technical foundation • The rating does • Evaluate as billed energy use relative to building operations • Normalize for operational characteristics (e.g., size, worker density, hours of operation, climate) • Depend on a statistically representative sample of the US commercial building population • The rating does not • Attempt to sum the energy use of each piece of equipment • Normalize for technology choices or market conditions (e.g., type of lighting, energy price) • Explain why a building operates as it does

15. How is a rating determined? • EPA ratings identify the percentile of performance for a building’s EUI when normalizing for key operating characteristics in the regression equation • Two example hotels • Same climate • Same EUI • Different operation • Large hotel with many rooms and services vs. smaller hotel • Different ratings

16. How is a rating determined?

17. Source, Site, and Emissions

18. Source and Site Energy • Because ENERGY STAR rates the whole building, the ratings must account for any mix of fuels • Site Energy • Energy consumption expressed on utility bills • Includes combination of primary and secondary energy, which are not directly comparable • Some heat and electricity comes from fuels burned on-site (e.g. natural gas), while some comes from fuels burned off-site (e.g. electricity and district steam) • Source Energy • Traces on-site consumption back to energy content of primary fuels • Accounts for the losses in conversion from primary to secondary energy (which can occur either on-site or at a utility) • Accounts for losses in distribution to buildings

19. Source and Site Energy • National conversion factors are used to compute source energy • One conversion factor for each fuel • Enables rating to assess thermodynamic efficiency of the building • An individual building is not credited (or penalized) for the efficiency of its provider • Two equivalent buildings with different providers have same efficiency • For example - coal fired electricity and hydroelectric power are combined into a single national conversion factor for electricity • Ratings are based on energy consumption not on total CO2 emissions

20. Emissions • Full inventory of emissions from energy use requires both direct and indirect emissions • Note that emissions do not include any other sources such as vehicle fleets, refrigerants, or employee commutes • Indirect emissions • Emissions generated at a power plant • Electricity, district steam, district chilled water, etc • Direct emissions • Emissions generated from fuels burned at the building • Natural gas, fuel oil, propane, etc • Emissions calculations are computed according to common standards • WRI/WBCSD, Climate Leaders, DOE

21. Emissions • Reference for emissions factor • Available on Portfolio Manager Supporting Documents page • http://www.energystar.gov/index.cfm?c=evaluate_performance.bus_portfoliomanager_docs • All emissions factors • Include CO2, CH4 and N2O • Metric tons of carbon dioxide equivalent: MtCO2e • Follow standard reporting protocol • Indirect emissions factors • Regional factors • Based on 26 eGRID sub-regions • Direct emissions factors • National factors • Standard combustion assumptions • default values from Climate Leaders

22. Weather Normalization

23. Weather Normalization • Goal • Enable comparison of energy use at a single facility over time • Definition • Weather normalized source energy is the energy a building would have used under 30-year average weather conditions • Calculation • Building-specific regression to define the relationship between monthly average temperature an monthly electric and gas use • Use building-specific relationship to extrapolate energy use to the 30-year average temperatures • Application • Available to all buildings in Portfolio Manager

24. Weather in Ratings • Rating calculations incorporate • As experienced HDD and CDD • As experienced energy • To compute a rating • Do not need to adjust actual energy use according to “normalization” described on previous slide • Ratings account for weather but do not use the weather normalized source energy use

25. Quick Tips and Facts • Buildings are compared with CBECS not with other buildings in Portfolio Manager • Enter as few spaces as possible • If the building is one office building you do not need to enter each tenant separately • Enter as few space types as possible • There is no need to separate out a small Starbucks and flower shop on the first floor of a large office building • You must include all energy use • Source energy factors national • Emissions factors are regional • Operating Hours • When people are in the building (not when equipment turns on) • Workers • Workers on a single shift • Not visitors

26. User Account Guidance *** WARNING *** Never provide your user name and password to other individuals to view or manage data in your account. Doing so will allow them to change your password with unintended consequences (i.e. locking you out of your account), or to change data in your account without your knowledge. Instead, individuals within your organization should set up their own accounts. Portfolio Manager allows you to provide other users with access to view or modify facilities in your portfolio using the Sharing feature.

27. Recent Changes

28. February 2009 • K12 School • Now distinguish between high school and non • Some new inputs added to PM • Average rating changes were small • Hotel • No longer use amenity categories, now use more specific measures of hotel operations • More equitable model for various hotel sizes and amenity categories • Rating decreases • Finalizing a short FAQ document to post on website

29. February 2009 • Pool • Minor updates to engineering calculations • Eligibility • 50% Rule • 11 months of space attributes • Multifamily Housing • New non-ratable space type • For energy tracking purposes only • ABS 2.1 • Updated to reflect all February changes in automated schema

30. New Weather Data Requirements • Issue: Users were seeing rating fluctuations when weather data was updated in PM. • Solution: • The rating will not be available for periods where a full 12 months of weather data is not available. • Ratings with no weather data for a given period will display as N/A with an appropriate message indicating the lack of weather data in the N/A pop-up

31. Upcoming Changes

32. Types of Changes Made in Portfolio Manager • (MINOR) O&M Release • Includes minor changes and defect corrections • Schedule: Changes released last Friday of every month • (MODERATE) Enhancement Release • Includes mid-scale changes to functionality • Schedule: As needed, no fixed date • (MAJOR) Release • Includes mostly revisions that impact existing/new space models • Schedule: Changes occur every six months - on last Monday in January and July (possible 1 month extension)

33. July 2009New Reporting Feature • In final phase of development, now • Will use a Data Warehouse • Users will have ability to generate reports on data within their account, and buildings shared with them • Tabular and graphical display of data • Preset list of (8) report types and filters available • Quick Reference Guide available in tool • On-line Training will be developed • Customizable reports available in later release

34. August 2009On-site renewable energy • What • Require energy data from on-site solar and wind • Why • To provide a more complete picture of total site energy use and a more accurate rating • Two buildings with 100% on-site solar may not have the same energy efficiency • e.g. resistance heating and ground source heat pumps • Details • To be provided at the next meeting

35. August 2009Hotel Optional Characteristics • What • Additional hotel optional operating characteristics to be added • Why • To provide added detail on services at hotels which EPA can analyze to respond to questions and demonstrate that the model is equitable • Details – Five new attributes • Hours per day the guests are on-site • Number of guest-meals served • Square footage of full service spas • Square footage of gym/fitness center • Quantity of laundry processed

36. August 2009Retail and Mixed Use • What • Expanded definition of retail and new guidance for entering mixed use properties • Why • Confusion among partners about how to enter mixed use properties, especially in urban settings • Details • New web language on steps to enter a mixed-use building • New rule for retail space: retail space must have an exterior entrance to the public to earn a rating • New attribute for this question (yes/no)

37. August 2009Religious Worship • New performance rating model! • User inputs • Gross floor area • Maximum seating capacity • Weekdays of operation • Hours of operation per week • Number of personal computers • Presence of cooking facilities • Number of commercial refrigeration units • Other – Religious Worship • All buildings with this classification will convert to the new, ratable space type • Worship will no longer be a sub-category of Other

38. August 2009Warehouse • Updated performance rating model • Changes • More recent data (CBECS 2003) • Based on Source EUI (energy per square foot) • No new operating characteristics • One removed operating characteristic (HID Lighting) • Distribution Centers are now eligible for a rating • Self-Storage facilities are still ineligible for a rating (considered “Other”) • Refrigerated and non-refrigerated will have different user input requirements…

39. August 2009Warehouse • Unrefrigerated Warehouse operating characteristics: • Gross Floor Area • Weekly Operating Hours • Workers on Main Shift • Percent Heated • Percent Cooled • Number of Walk-in Refrigeration/Freezer units • Optional: Distribution Center (yes/no) • Refrigerated Warehouse operating characteristics: • Gross Floor Area • Weekly Operating Hours • Workers on Main Shift • Cooling Degree Days (no user input)

40. Questions