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City Initiatives for Energy
Efficiency
Cliff Majersik
Executive Director, Institute for Market Transformation
cliff@imt.or...
Link between Codes and Energy Performance Policy

Energy Codes

Construction

Operation

Renovation

time

Energy Performa...
Added Value of ENERGY STAR-Labeled
Commercial Buildings in the U.S. Market
Wiley et al 2010*
30%

Fuerst & McAllister 2009...
5
Rating and disclosure drives demand and competition
A Virtuous Cycle
When performance is
measured, performance improves.
When performance is measured and
reported back, the r...
U.S. Benchmarking Policy Landscape
Covered Properties
New York City

Buildings 50k SF+
~16,000 buildings, 2.5 billion SF

San Francisco

Buildings 10k SF+
~2...
NUMBER OF PROPERTIES COVERED ANNUALLY

Each
year, existing
policies will
impact more
than

51,000
properties

Boston
1,600...
BUILDING AREA (IN SQUARE FEET) COVERED ANNUALLY

Totaling
approximately

5.8 billion SF
of floor space in
major real estat...
Early Energy Intensity Findings in New York City

The poorest performing
buildings use 4 to 8
times the energy of the
high...
Small Businesses and Job Creation
First report documenting job growth
from energy benchmarking policies
 Profiles of smal...
Small Businesses and Job Creation
“As a Silicon Valley venture capitalist … I tell our green startup companies to focus on...
Takeaways
 Boldest action is in cities
- Federal outlook remains uncertain; state and local action to continue

 Leading...
Atlanta
Boston
Chicago
Denver
Houston
Kansas City, MO
Los Angeles
Orlando
Philadelphia
Salt Lake City
Thank you!

Cliff Majersik
Executive Director, Institute for Market Transformation
Washington, DC
cliff@imt.org
@IMTCliff
Small Businesses and Job Creation

Policy Benefits

Audin, Lindsay. “Finding Your Best Energy Opportunity.”
Building Opera...
Jobs and Economic Growth

Jobs Created From Benchmarking Policy
70,000

59,620

Net new jobs

60,000

52,975
46,165

50,00...
Early Energy Intensity Findings in New York City

Energy intensity is
greater in newer
buildings than older
buildings.

EN...
Building owners often can’t get energy data
for their buildings
Barriers:
•Separately-metered tenants
•Lack of clear proce...
Building
Owner
Building Physical
and Operating
Characteristics

Energy
Consumption

Tenants

Bill Payer(s)
The Data Access and Transparency Alliance (DATA) is a
collaborative effort led by the commercial real estate
industry and ...
Partners of Green Lease Library
http://www.greenleaselibrary.com/
Green Lease Leaders
Recognition Program
Green Lease Leaders is a recognition program
developed by
www.GreenLeaseLibrary.co...
City Initiatives for Energy Efficiency, SPEER Conference, February.2014
City Initiatives for Energy Efficiency, SPEER Conference, February.2014
City Initiatives for Energy Efficiency, SPEER Conference, February.2014
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City Initiatives for Energy Efficiency, SPEER Conference, February.2014

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City Initiatives for Energy Efficiency, SPEER Conference, February.2014

  1. 1. City Initiatives for Energy Efficiency Cliff Majersik Executive Director, Institute for Market Transformation cliff@imt.org @IMTCliff
  2. 2. Link between Codes and Energy Performance Policy Energy Codes Construction Operation Renovation time Energy Performance Policy Operation
  3. 3. Added Value of ENERGY STAR-Labeled Commercial Buildings in the U.S. Market Wiley et al 2010* 30% Fuerst & McAllister 2009/11 Jackson 2009 25% Pivo & Fischer 2010* AVERAGE PREMIUM Eicholtz et al 2010* 20% 15% 10% 5% 0% RENTAL PRICE SALE PRICE OCCUPANCY RATE
  4. 4. 5
  5. 5. Rating and disclosure drives demand and competition
  6. 6. A Virtuous Cycle When performance is measured, performance improves. When performance is measured and reported back, the rate of improvement accelerates. 7
  7. 7. U.S. Benchmarking Policy Landscape
  8. 8. Covered Properties New York City Buildings 50k SF+ ~16,000 buildings, 2.5 billion SF San Francisco Buildings 10k SF+ ~2,700 buildings, 205 million SF
  9. 9. NUMBER OF PROPERTIES COVERED ANNUALLY Each year, existing policies will impact more than 51,000 properties Boston 1,600 Chicago 3,500 New York City 15,300 Philadelphia 1,400 Seattle 3,600 Washington State 4,600 Austin 2,800 San Francisco 2,700 Minneapolis 625 Washington, DC 2,000 California 13,600 Source: IMT
  10. 10. BUILDING AREA (IN SQUARE FEET) COVERED ANNUALLY Totaling approximately 5.8 billion SF of floor space in major real estate markets Chicago 900 million SF Boston 250 million SF Philadelphia 244.5 million SF Seattle 295 million SF Washington State 247 million SF Austin 113 million SF California 347 million SF Minneapolis 110 million SF Washington, DC 357 million SF New York City 2.8 billion SF San Francisco 205 million SF Source: IMT
  11. 11. Early Energy Intensity Findings in New York City The poorest performing buildings use 4 to 8 times the energy of the highest performing buildings. By improving the poor performers citywide energy reductions of 18% to 31% could be achieved.
  12. 12. Small Businesses and Job Creation 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. 13
  13. 13. Small Businesses and Job Creation “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 14
  14. 14. Takeaways  Boldest action is in cities - Federal outlook remains uncertain; state and local action to continue  Leading cities are looking beyond disclosure - Integrated policy frameworks emerging with focus on poor performers  Support from business sector is critical
  15. 15. Atlanta Boston Chicago Denver Houston Kansas City, MO Los Angeles Orlando Philadelphia Salt Lake City
  16. 16. Thank you! Cliff Majersik Executive Director, Institute for Market Transformation Washington, DC cliff@imt.org @IMTCliff
  17. 17. Small Businesses and Job Creation Policy Benefits Audin, Lindsay. “Finding Your Best Energy Opportunity.” Building Operating Management. December, 2011. 18
  18. 18. Jobs and Economic Growth Jobs Created From Benchmarking Policy 70,000 59,620 Net new jobs 60,000 52,975 46,165 50,000 A national rating and disclosure policy would create 59,000 net jobs by 2020. 38,513 40,000 30,989 30,000 23,713 17,098 20,000 11,855 10,000 7,106 2012 2014 2016 2018 2020 Source: IMT and PERI. “Analysis of Job Creation and Energy Savings from Building Energy Rating and Disclosure Policy.”
  19. 19. Early Energy Intensity Findings in New York City Energy intensity is greater in newer buildings than older buildings. ENERGY STAR scores are higher in older buildings than newer buildings.
  20. 20. Building owners often can’t get energy data for their buildings Barriers: •Separately-metered tenants •Lack of clear procedures •Utility policies and state privacy laws •Lack of standardization
  21. 21. Building Owner Building Physical and Operating Characteristics Energy Consumption Tenants Bill Payer(s)
  22. 22. The Data Access and Transparency Alliance (DATA) is a collaborative effort led by the commercial real estate industry and green building organizations to provide building operators with energy consumption data to advance energy-efficiency and energy cost savings in buildings. More information can be found: http://www.energydataalliance.org/
  23. 23. Partners of Green Lease Library http://www.greenleaselibrary.com/
  24. 24. Green Lease Leaders Recognition Program Green Lease Leaders is a recognition program developed by www.GreenLeaseLibrary.com, with support from the Institute for Market Transformation (IMT) and the Department of Energy’s Better Buildings Alliance. The Green Lease Leader designation recognizes companies or broker teams that have successfully implemented green lease language into their new or existing leases. The website and application process will be launching this January 2014.

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