ENERGY STAR

1. ENERGY STAR Jean Lupinacci, Director ENERGY STAR Commercial and Industrial Branch Climate Protection Partnerships Division US EPA

2. ENERGY STAR • Reduce greenhouse gas (GHG) emissions through large win-win-win opportunities with today’s energy efficient technologies and practices • 30% savings in many buildings, homes, and facilities • Provide credible information to buyers to • reduce transaction (research) costs • reduce perceptions of risk • enhance investment in efficient technologies and practices • Work with the marketplace to build on motivations of important individual actors

3. Build Upon Intersection ofMarket Interests Environmental Protection Consumer Preferences Manufacturer/Retailer Interests Utility Program Sponsor Interests Consumer is Key Complement Codes and Standards, other Policies

4. Broad Strategies ResidentialCommercial / Industrial Labeled Products Corporate energy management -- 40+ products / 1400 manufacturers -- benchmarking, goals, upgrades -- 10-60% more efficient (management, systems more than widgets) Labeled New Homes -- whole building labeling forexcellence -- 30% more efficient Home Improvement Labeled Products Services -- for plug loads -- not system components -- beyond products -- ducts / home sealing Small business initiative -- whole home retrofits

5. Success to date • Started in 1992; now the government backed symbol for energy efficiency • In 2005, Americans, with help of ENERGY STAR: • saved $12 billion on energy bills • prevented ghg emissions equal to 23 million cars • ENERGY STAR recognized by over 60% of Americans

6. To date • More than 1.5 billion ENERGY STAR products have been sold to date. • More than 2,500 builders have constructed over 360,000 ENERGY STAR homes. • EPA’s Energy Performance Rating System has been used to evaluate more than 21,000 buildings; 20% of office buildings, 13% percent of schools, 21% of supermarkets, 34% of hospitals, 9% of hotels have been benchmarked. • More than 2,000 buildings have earned the ENERGY STAR.

7. Commercial Building Opportunities • Many cost-effective improvements • efficient building uses 40% less than average buildings • paybacks of less than 3 to 5 years • Focus on: Whole Building Performance • promote integration of systems • about energy savings -- not presence of new technology • achieve twice the savings for a given investment • Performance Measurement System • can not manage what you can not measure • fix missing market information • how to measure efficiency / performance • when is a building efficient • provide information linked to real market transactions (like energy bills)

8. ENERGY STAR Challenge • National campaign focused on building energy efficiency– promote 10%, 20%, 30% improvements and strategic energy management • Launched in March 2005 • Now supported by ~50 leading associations and states across all sectors (more than half of US states) • Creating national call to action to reduce energy use in all building sectors: • K-12 Schools • Higher Education • State and Local Government • Commercial and Corporate Real Estate • Healthcare

9. A Changing Landscape IncreasesImportance of Energy Efficiency • Energy consumption and costs are rising • Market volatility is increasing risk and uncertainty • Managing the risk of climate change is becoming a reality for many organizations. • Trend toward green building is not necessarily leading to energy-efficient buildings

10. Energy Efficiency Smart Business • Taxpayers benefits from cost-effective reductions: • ENERGY STAR qualified offices demonstrate: • 35% less energy use • $0.50 per square foot less to operate • Energy performance persists over multiple years • Designing to earn ENERGY STAR helps high performance green buildings stay within conventional construction budget

11. Energy’s Role in Green Building • Energy efficiency should be foundation for green building • Market assumes green buildings are energy efficient • Studies now show that this is not necessarily the case • ROI for green buildings comes largely from energy • Large environmental benefits from reducing greenhouse gas and other air emissions. • Can’t rely solely on technology and code requirements for energy performance • Problem: • “Better than code” is only weakly correlated to energy performance • Specific technologies do not guarantee energy performance

12. Number of Buildings 25 50 75 100 1 29.9 86.0 165.7 121.1 339.4 EPA Rating & Energy Intensity (kBtu/ft2-year) Worst Performers Best Performers Energy performance gap • Normalized EUI for existing office buildings varies widely • 30 kbtu/ft2 to 340 kBtu/ft2 • Age and equipment not significant drivers of EUI

13. Simple Energy Metric Is 80 kBtu/SF/YR high or low for a building? Energy Performance EPA Rating Fuel Efficiency MPG Is 10 MPG high or low for an automobile?

14. Simple Energy Metric • Normalize Building Energy Consumption from bills • Weather, hours, occupant density, plug load • Whole-building “mpg” rating • Compare • Benchmark against similar buildings in national stock • Receive 1-100 score • Reward: • Buildings in top 25% qualify for the ENERGY STAR • Buildings with intent to perform in top 25% designated “Designed to Earn ENERGY STAR. • Organizations with portfolio improvement 10, 20, and 30 point qualify as ENERGY STAR Leader EPA’s Energy Performance Rating System

15. Simple Energy Metric • Building types with ratings: • Office Buildings: • Courthouses • Bank branches • K -12 Schools • Supermarkets/Grocery Stores • Hospitals • Hotels/Motels • Medical Offices • Warehouses • Residence Halls/Dormitories

16. ENERGY STAR • Estimate Energy Use at Design • Target Finder • Verify energy use in operation • Portfolio Manager • Reduce energy across portfolio • ENERGY STAR Guidelines for Energy Management

17. EPA Provides EnergyManagement Guidance • ENERGY STAR’s Guidelines for Energy Management: • Organization-wide commitment to continuous improvement • “Best practices” from top ENERGY STAR partners.

18. EPA Provides Management Tools • Establishing Organizational Commitment • Partnership Letter • Communication resources • Measuring Energy Performance • Objective, accessible, 3rd party rating system • Demonstrating Financial Value • Calculators to estimate earnings/share, asset value, cost of delay • Analysis to confirm financial performance link • Recognition for Leadership • ENERGY STAR Label, Awards

19. EPA Provides Technical Guidance • Technical Guidance to make building more efficient: • Building Upgrade Manual for existing buildings • New Design Guidance • Operations and Maintenance Reports • Case Studies/Registry of Energy Star qualified buildings • Monthly networking meeting

20. New Model for Achieving Green and Energy Efficiency • Guiding Principles for Federal Leadership in High Performance and Sustainable Buildings focus on performance: • Establish whole building performance target: • Design to Earn ENERGY STAR • Reduce energy cost budget 30% from ASHRAE 90.1-2004 • Increase efficiency of components • Measure and verify energy use • Compare to design target • Use EPA’s energy performance rating

21. ENERGY STAR Can Help

22. Opportunities to IntegrateENERGY STAR • Use EPA’s Energy Performance Rating System to benchmark and set improvement goals • Formally incorporate performance targets into: • Leases • RFQs, RFPs • Energy Services Agreements, and • New building contracts with architects and builders.

23. energystar.gov

24. If it’s not energy efficient … …it’s not on a sustainable path.