85% of buildings in operation in 2030 will be buildings we already have today. That means we need to maximize their efficiency. Building energy rating & disclosure--tracking the energy consumption of buildings and comparing it--is an effective way to catalyze greater efficiency.

1. Multifamily Performance Testing
Building Energy Rating & Disclosure:
A Catalyst for Efficiency
AIA
May 16, 2012
Cliff Majersik
Executive Director
Institute for Market Transformation
Washington, DC
www.imt.org
www.buildingrating.org
cliff@imt.org
202-525-2883

2. Energy Star Buildings Command
Market Premiums
Added Value of ENERGY STAR-Labeled
Commercial Buildings in the U.S. Market
2

3. New Guidance for Appraisers
• Provides real estate
appraisers with guidance to
analyze the effects of
energy performance on the
value of commercial and
multi-family buildings
• Enhances credibility of
property valuation by
helping appraisers find,
understand and use
available information
• imt.org/commercial-finance

4. Benchmarking on the Rise
4

5. Existing Buildings
Projection:
85% of buildings
operating in
2030 have
already been
built
5

6. Building Energy Rating and Disclosure
6

7. A Familiar Concept
7

8. A Virtuous Cycle
“When performance is measured,
performance improves. When
performance is measured and reported
back, the rate of improvement
accelerates.”
8

9. Small Businesses and Job Creation
Benchmarks Guide Investment
Survey of hundreds of facility managers .
Audin, Lindsay. “Finding Your Best Energy Opportunity.”
Building Operating Management. December, 2011.
9

10. Rating Laws: International Timeline
2004: Norway, 2010: EPBD Recast
part of the European
The EPBD is recast to
Economic Area, formally
strengthen the energy
agrees to implement the 2007: Brazil adopts voluntary performance
EPBD and building
1997: Denmark building rating regulations that requirements for all EU
certification requirements
requires energy become mandatory in 2012 Member States and to
certification for clarify and streamline
homes and provisions from the
buildings original Directive
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
2002: 2008: China
Energy Performance adopts a
mandatory
of Buildings Directive energy rating
(EPBD) EU Member program for
States are required to government 2010: Australia
establish mandatory energy buildings. passes the Building
certification schemes Energy Efficiency
for all homes and buildings Disclosure Act
2008: Turkey requiring energy
adopts a performance
mandatory disclosure for
certification commercial buildings
scheme at point of sale or
lease

11. U.S. Policy Landscape
U.S. Policy Map, State and Local

12. U.S. Policy Overview
Policy Impact Projections
Annual Building Area Annual Number of Buildings
(in Square Feet)
 Approximately 4 billion square feet
 More than 3x the floor area of every Walmart, Target, Home Depot,
Barnes & Noble and Costco store in America 12

13. Policies by Jurisdiction
All U.S. policies leverage the ENERGY STAR Portfolio Manager tool
Benchmarking
Jurisdiction Disclosure
(Building Type and Size)
On To transactional counterparties
Non- Multi- To local To
public
residential family government tenants Sale Lease Financing
web site
Austin 10k SF+ - -  -  - -
California* 1k SF+ - -  -   
District of Columbia 50k SF+ 50k SF+   - - - -
New York City 50k SF+ 50k SF+   - - - -
San Francisco 10k SF+ -    - - -
Seattle 10k SF+ 5+ units -     
Washington 10k SF+ - - - -   
13

14. New York City
NYC Greener Greater Buildings Plan
• Requires annual benchmarking and public disclosure,
periodic audits and RCx, lighting retrofits and sub
metering in large commercial and multifamily buildings
• More than 2,300 city buildings benchmarked and
disclosed
• Initial analysis of benchmarking data underway
• May 1, 2012: Second deadline for private buildings
reporting
• September 2012: Individual building ratings to be
published
Rendering courtesy NYC Mayor’s Office of Long-Term Planning and Sustainability
14

15. Austin
Austin Energy Conservation and Disclosure Ordinance (ECAD)
• Requires time-of-sale audits for single family homes, audits and potential upgrades for
multifamily properties, and annual benchmarking and time-of-sale disclosure for
commercial facilities
• MF requirements:
 Conduct audit
 Mandatory upgrades for
high energy-use properties
 Post audit results
 Distribute Energy Guide to
prospective tenants
• 535 MF audits completed
• 268 upgrades documented
• $1.7M in rebates for FY 2011
15

16. Small Businesses and Job Creation
Jobs
First report documenting job growth
from energy benchmarking policies
 Profiles of small businesses adding staff and
increasing client bases
 KEY TAKEAWAY: Financing not the key barrier.
Primary issue is demand.
16

17. Jobs
“As a Silicon Valley venture capitalist … I tell our green startup companies to focus on San
Francisco or New York City. That’s where the action is going to be.”
- Elton Sherwin, venture capitalist, senior managing director, Ridgewood Capital
“The Greener Greater Buildings Plan has spurred the New York Market to interest and activity
around energy efficiency. Over the past year, we have begun working with over 75 million
square feet of real estate in New York and over 400 new clients.”
- Lindsay Napor McLean, COO, Ecological
“When an owner sees a benchmarking score that is lower than expected, they’re a little more
receptive to improvements to bring the score up, which in turn lowers their utility costs.”
- Kevin Dingle, president, Sustaining Structures
17

18. DC Benchmarking: Phase in by size
Utility First % of Covered % of Total
Building Size
Year Data Report Buildings Building Area
200,000+ sq. ft. 2010 Fall 2012* 36% 66%
150,000+ sq. ft. 2011 Fall 2012* 47% 76%
100,000+ sq. ft. 2012 April 1, 2013 62% 86%
50,000+ sq. ft. 2013 April 1, 2014 100% 100%
•NOTE: No collecting or reporting of data from
residential tenant meters until aggregate data
service available from utilities
* Deadlines still in flux based on the ongoing rulemaking
process

19. DC Benchmarking: Publication of
Results
• Benchmark results will be made public in 2nd reporting yr
• Results will be reported on the DDOE website
(www.ddoe.dc.gov)
Address Year Built
Energy Performance Rating (1-100) Energy Intensity
Electricity Use Natural Gas Use
Water Use CO2 Emissions
Space Type Gross Building Area

20. Target Finder for New DC Buildings
• DC Energy Act also requires projects over 50,000 sq. ft. that
submit 1st building permit after January 1, 2012 to model
their energy performance using the ENERGY STAR Target
Finder Tool and report results to the District
• Results will be made public online along side benchmarks
• Submit your Target Finder “Statement of Energy Design
Intent” to DCRA with your building permit
application either as PDF or hard copy
• Future electronic submission directly
through Target Finder (2013)

21. The Data Access Challenge
Some owners cannot access tenant energy consumption data
Owners need whole-building energy data to benchmark
• Separate meters often prevent owners from accessing tenant data
• Most utilities have not yet provided data due to confidentiality concerns, IT
challenges, lack of awareness and inertia
• ComEd (in Chicago) is a national leader in providing data
o Piloted a data access platform for owners that resulted in thousands of
buildings benchmarked in only three years
• BOMA, RER, IMT, USGBC form DATA Alliance to work with utilities and regulators
• July 2011: National Association of Regulatory Utility Commissioners (NARUC)
approves resolution calling on regulators to provide better data access to owners
www.energydataalliance.org 21

22. Resources
 IMT rating policy
www.imt.org/rating
 IMT policy implementation framework
www.buildingrating.org/Building_Energy_Transparency_Implementation_Report
 CB Richard Ellis/IMT regulatory guide
www.cbre.com/USA/Sustainability/Envirometrics
 BuildingRating.org (IMT and NRDC)
www.buildingrating.org
22

23. • Efficiency Utility
• Funded by utility surcharge
• 11 cents per kwh and therm
• Created by 2008 Clean and Affordable Energy
Act
• Contract won by Vermont Energy Investment
Corporation (VEIC) and local partners
• VEIC started nation’s first and most
successful efficiency utility: Efficiency
Vermont

24. • Create green jobs for District residents
• Stimulate the local economy
• Reduce energy use throughout the District,
particularly in housing for low-income residents
• Reduce the growth rate of peak electricity
demand
• Increase renewable energy generating capacity

25. 2012 Multi-Family Initiatives
Market Rate Multifamily
• T12 Lighting Replacement
• Custom Programs
Low-Income Multifamily
• Comprehensive Program for New
Construction and Substantial Rehab
• Property Manager Direct Install
• T12 Lighting Replacement
• Other custom services

26. DC Benchmarking Resources
• Webinars from U.S. EPA
• DC SEU Benchmarking Help Center:
• Technical assistance with ENERGY STAR Portfolio
Manager and DC benchmarking requirements
• FREE
• Help Line: 202-525-7036
• Future In-Person training sessions
• Consultants can help; 60% of all NYC
benchmarking done by consultants

27. Incorporating Energy Efficiency into Mortgage
Underwriting
Aligning mortgage policy with energy efficiency
 Energy costs now exceed property
taxes and insurance, which are
accounted for in mortgage
underwriting.
 A homeowner who spends less on
utilities will have more money to
make mortgage payments
 For a typical house :
o Median home price - $175,000
o Average 30-year commitment to
energy costs - $70,000

28. Mortgage Underwriting:
• Borrower capacity is adjusted for
energy costs.
• Value of the home reflects the
energy cost savings.
The Three C’s of
Underwriting
Capacity Collateral
Borrower’s ability to pay the Appraised value of the
Credit monthly mortgage home
Debt-to-Income Test Loan to Value Ratio
Energy “blind spot”

29. • SAVE Act (S. 1737) introduced by Senators Bennet
(D-CO) and Isakson (R-GA)
• If passed, SAVE Act would create 83,000 jobs and
$1.1 billion in savings to Americans' energy bills
in 2020
Annual Annual Energy
Year
Jobs Bill Savings*
2015 16,000 $95 million
2017 50,000 $380 million
2020 83,000 $1.1 billion
Source: 2011 study by the American Council for an Energy-Efficient Economy
(ACEEE) and the Institute for Market Transformation (IMT).
www.imt.org/SAVE_Act

30. The SAVE Act: S. 1737
 Leading business, industry, and environmental support the proposal.

31. Thank You

32. Cliff Majersik
Executive Director
Institute for Market Transformation
Washington, DC
cliff@imt.org
202-525-2883
www.imt.org/rating
www.buildingrating.org