Energy and Climate Legislationand Your Business:Compliance and Opportunities
aka “Title 24”Increasing stringency: 2011/2014/ …	Residential: Net Zero 2020Non-Res: Net Zero 2030
Effective January 1, 2011Mandatory MeasuresEnergy Efficiency: See CEC, Title 24, Part 6Voluntary Measures Tier 1 and Tier 2
ResidentialNon-Residential
LEED Systems
LEED v3 2009 - EBOMPrerequisites:WE-p1: Min. Indoor Plumbing Fixture , Fitting EfficiencyEA-p1: Energy Efficiency Best Management PracticesEA-p2: Min. Energy Perform: ENERGY STAR Rating: 69EA-p3: Refrigerant ManagementMR-p1: Sustainable Purchasing PolicyMR-p2: Solid Waste Management PolicyEQ-p1: Minimum IAQ PerformanceEQ-p2: Environmental Tobacco Smoke (ETS) ControlEQ-p3: Green Cleaning Policy
LEED v3 2009 - EBOM
Assembly Bill 1103 – What is it?Requires Energy Use Benchmarking and Disclosure for Nonresidential Buildings:Allows prospective buyers and tenants to compare building performance with similar buildingsMotivates owners to improve building’s energy profileCompared with competitionImpact on building valuationA benchmarking system, drawing on Energy Star Portfolio ManagerCalifornia Building Energy Performance Rating
AB1103 – What is the trigger?-> Financial transaction for the whole buildingMust disclose benchmarking data and ratings to:	         Prospective buyer
  Lender
  Lessee of entire buildingAB1103 – When is it effective?Energy Star is a 12 month “look-back” 	Today’s energy use is part of the January disclosure!
AB1103 – Impact on Building ValuationExample:Reduce Annual Energy Cost= Increase Annual Cash Flow:$50,000Divide by Cap Rate:		  ÷      .08Increase in Building Valuation	$625,000
AB1103: Disclosure Formwww.energy.ca.gov/ab1103/documents/index.html
AB1103 – Disclosure FormExample:
AB1103 – Disclosure FormExample:
AB1103 – Disclosure FormExample:
How improve your building performance?  Benchmark
  Maintenance
  Retro-commissioning
  No-Cost and Low-Cost Measures
  Plan: mid & long term capital improvements
  Benchmark: continuous monitoring!!Cost Analyses: Approaches  First Cost
  Simple Payback
  % Return On Investment (ROI)

Beth brummitt energy and climate legislation and your business

  • 1.
    Energy and ClimateLegislationand Your Business:Compliance and Opportunities
  • 3.
    aka “Title 24”Increasingstringency: 2011/2014/ … Residential: Net Zero 2020Non-Res: Net Zero 2030
  • 5.
    Effective January 1,2011Mandatory MeasuresEnergy Efficiency: See CEC, Title 24, Part 6Voluntary Measures Tier 1 and Tier 2
  • 7.
  • 8.
  • 9.
    LEED v3 2009- EBOMPrerequisites:WE-p1: Min. Indoor Plumbing Fixture , Fitting EfficiencyEA-p1: Energy Efficiency Best Management PracticesEA-p2: Min. Energy Perform: ENERGY STAR Rating: 69EA-p3: Refrigerant ManagementMR-p1: Sustainable Purchasing PolicyMR-p2: Solid Waste Management PolicyEQ-p1: Minimum IAQ PerformanceEQ-p2: Environmental Tobacco Smoke (ETS) ControlEQ-p3: Green Cleaning Policy
  • 10.
  • 11.
    Assembly Bill 1103– What is it?Requires Energy Use Benchmarking and Disclosure for Nonresidential Buildings:Allows prospective buyers and tenants to compare building performance with similar buildingsMotivates owners to improve building’s energy profileCompared with competitionImpact on building valuationA benchmarking system, drawing on Energy Star Portfolio ManagerCalifornia Building Energy Performance Rating
  • 12.
    AB1103 – Whatis the trigger?-> Financial transaction for the whole buildingMust disclose benchmarking data and ratings to: Prospective buyer
  • 13.
  • 14.
    Lesseeof entire buildingAB1103 – When is it effective?Energy Star is a 12 month “look-back” Today’s energy use is part of the January disclosure!
  • 15.
    AB1103 – Impacton Building ValuationExample:Reduce Annual Energy Cost= Increase Annual Cash Flow:$50,000Divide by Cap Rate: ÷ .08Increase in Building Valuation $625,000
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
    How improve yourbuilding performance? Benchmark
  • 21.
  • 22.
  • 23.
    No-Costand Low-Cost Measures
  • 24.
    Plan:mid & long term capital improvements
  • 25.
    Benchmark:continuous monitoring!!Cost Analyses: Approaches First Cost
  • 26.
    SimplePayback
  • 27.
    %Return On Investment (ROI)
  • 28.
    Cash Flow
  • 29.
    savings > costof financing measures
  • 30.
    Life Cycle Cost(compare complex systems)
  • 31.
    first costs, operatingcosts, maintenance, escalations, discount rateFinancial Aid
  • 32.
  • 33.
    What’s Next inGreen? Industrial revolution: 180 ybpHomo sapiens sapiens: 50,000 ybp Life on earth: 3,850,000,000 ybpBiomimicryNATURE: Model Mentor MeasureSUCCESSFUL:ProductsBuildingsBusinessesSociety
  • 34.
    Questions? Beth Brummitt 619-531-1126 www.brummitt.com
  • 35.
    Financial Aid: examplesRebatePrograms:Express EfficiencySmall Business Super Saver (small account) Performance Programs:Standard Performance ContractEnergy Savings BidDemand Response – dispatchable loadsAudits and IncentivesVariety of DR Rates
  • 36.
    Financial Aid: examples3rdParty Programs, eg:Rcx: Retro-commissioningOnline Business Assessment ProgramPremium Efficiency Cooling New ConstructionSavings By DesignEmerging Technology:Request support to help implement new technologies
  • 37.
    Financial AidFederal CommercialBuilding Tax Deduction Ranges from $0.30 to $1.80 / sf, depending on energy efficiencyLighting can be done separatelyEg: 35% MTB: actual benefit is about $0.10 to $0.60 / sfRequires: Complicated energy modeling for max incentivesField CheckEquipment placed in service: 1/1/2006 and 12/31/2013http://www.dsireusa.org/ www.energytaxincentives.org