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Job Creation: Three Things Government Can Do
The document discusses strategies for governments to create jobs through building efficiency improvements, emphasizing the connection between energy savings and job creation. It suggests three key actions: disclosing Energy Star ratings, adopting regulations similar to those in San Francisco and New York City, and celebrating high-performing buildings. By implementing these measures, it is estimated that millions of sustainable jobs could be generated without ongoing subsidies.
Job Creation: Three Things Government Can Do
- 1. Three Simple ThingsGovernment Can Do to Create Jobs Governing Sustainability Summit New York City – June 21, 2011 Elton B. Sherwin Sr. Managing Director Ridgewood Capital Author of The Silicon Valley Way and These slides express the opinions of the author and Addicted to Energy have not been endorsed by any organization or government agency
- 2. Agenda • Connect thedots: Building efficiency = jobs – Improving building efficiency creates jobs • Policy recommendations – Potential to create millions of jobs – Permanent, sustainable American jobs • Do not require ongoing subsidies • Cannot be offshored – Modeled on New York City and San Francisco programs 525 University Ave. Palo Alto, CA
- 3. Thought experiment Old Town Green Town Imagine Two Identical Towns • Once a month all building owners go up on their roofs and burn money – In “Old Town” everyone burns $1,000 – In “Green Town” everyone burns only $100 – Both towns do this every month • Towns are otherwise identical • After one year, which town is richer? • After ten years, which town has more jobs?
- 4. Why Does “GreenTown” Have More Jobs?
- 5. Shift Spending fromUtility Bills to Construction and Retail = New Jobs
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- 7. Improved Efficiency Creates Jobs Several Ways • Initial labor – Contractors • Savings – “Export” fewer energy dollars – Increased local spending • Wealthier individuals and businesses – Spend more • More competitive infrastructure
- 8. Green Town Green Town: Is richer Has more jobs Smarter place to buy real-estate Better place to raise children
- 9. Upgrading Building Efficiency Creates Jobs Not happening at scale Houston Skyline
- 10. Really Hard toMotivate Action Even on projects that save money
- 11. How Do WeMotivate Private Investment?
- 12. I Would Liketo: Grade every building A+ to D- Based on their actual energy consumption Post the grade above the front door D+ C+ B- D- C+ D- D- C+ B- D- B A- Grades for illustration only, not based on real measurements
- 13. In Some Citiesthe “D” Buildings Use More Than Half the Electricity Just motivating them to upgrade to a C would be a big win D+ C+ B- D- C+ D- D- C+ B- D- B A- Grades for illustration only, not based on real measurements
- 14. Lets talk aboutrealistically what can be done. Analyzed 17 Building Rating Systems Around the World European Unions Energy Performance Certificates UK Display Energy Certificates LEED – New Construction LEED – Health Care ENERGY STAR – Commercial buildings ENERGY STAR homes PlaNYC (New York City) Australia’s Greenhouse Rating HERS ASHRE EQ CALGreen level 2 California AB 1103 California AB 758 DOE home energy scoring pilot Passive Home Certification City of Seattle San Francisco Details at Slideshare.com
- 15. Winning Strategy New York and San Francisco Required to calculate ENERGY STAR score High = 100 Low = 1 After two years: Public disclosure New York, San Francisco, Washington DC, Seattle, and the State of California all use the same rating tool: US EPA Portfolio Manager
- 16. An example Rating + Disclosure = Action Class A office • Score of 17 • Hire an auditor, who discovers – Error in building control software – Valves set incorrectly – Wires reversed – Wrong windows on south side of the building • And upgrades are made • Jobs are created
- 17. Public Disclosure ofENERGY STAR Scores Will Create Jobs • Construction trades* – General contractors = – HVAC mechanics and installers – Electricians – Plumbers • Manufacturing – Building materials, windows and coatings • Environmental scientists, specialists, and technicians • Energy auditors and accountants • Truck drivers and more… *Renewable Energy and Energy Efficiency: Economic Drivers for the 21st Century, Roger Bezdek.
- 18. What Can YourCity/State Do? 1. Disclose ENERGY STAR ratings – Government buildings – Schools – Contests 2. Copy San Francisco or NYC Regulation – Straightforward – Requires all commercial buildings to calculate Energy Star score – In year 2: disclose it on the city website 3. Celebrate buildings scoring 90+
- 19. Celebrate Success New YorkCity • 111 Offices • Five Banks • Four K-12 • Two Hotels • One Hospital • One Courthouse Two built in 1800’s • 49 before WW II http://www.energystar.gov/index.cfm?fuseaction=labeled_buildings.locator
- 20. Palo Alto, CA Celebrate Success Built in 1966 • Lots of exposed glass in a sunny climate • Property Manger: CB Richard Ellis 525 University Ave. Palo Alto, CA 87 94 94 92 2007 2008 2009 2010
- 21. East Palo Alto,CA Celebrate Success • Lighting retrofit of 397 fixtures saves over $5,000 per month. – Breakeven less than two years • Anticipated savings are $822,460 over 10 years University Circle • Property Manger: East Palo Alto, CA Wells Real Estate 85 86 92 90 2007 2008 2009 2011
- 22. Every City andState Should Be Able to Do This 1. Disclose ENERGY STAR ratings – Government buildings – Schools – Contests 2. Copy San Francisco or NYC Regulation – Straightforward – Requires all commercial buildings to calculate Energy Star score – In year 2: disclose it on the city website 3. Celebrate buildings scoring 90+
- 23. Sherwin’s Law “When performance is graded performance improves. When grades are published, the rate of improvement accelerates.” Phrasing adapted from Thomas S. A Monson
- 24. National Target • Above60: all existing buildings • Above 80: all new buildings vs. 2003 average ENERGY STAR score
- 25. Three Simple ThingsYou Can Do to Create Jobs 1. Disclose ENERGY STAR ratings – Government buildings – Schools – Contests 2. Copy San Francisco or NYC Regulation – Straightforward – Requires all commercial buildings to calculate Energy Star score – In year 2: disclose it on the city website 3. Celebrate buildings scoring 90+
- 26. Questions and Answers with Back-up Slides
- 27. Question: Take anotherminute to connect building efficiency with jobs.
- 28. An example Rating + Disclosure = Action Class A office • Score of 17 • Hire an auditor, who discovers – Error in building control software – Valves set incorrectly – Wires reversed – Wrong windows on south side of the building • And upgrades are made • Jobs are created
- 29. Over One MillionJobs Just in California Accelerating the Pace of Energy Efficiency *Renewable Energy and Energy Efficiency: Economic Drivers for the 21st Century, by Roger Bezdek. Bezdek’s results are summarized here by Aaron Lehmer, in Renewable Energy Development Creates More Jobs than Fossil Fuels. Almost all the jobs created in the energy efficiency category relate to buildings and their contents. The actual number of new jobs created by aggressive programs promoting building, appliance and electronics efficiency may be closer to 16 million jobs nationwide (32.18 million minus 14.9 million minus the transportation sector). California’s share of these jobs is at least 10% or 1.5 million. The challenge is to accelerate these jobs from into the current timeframe and to get on the advanced scenario, which could created these 1.5 million additional jobs.
- 30. References Job Creation data •Energy Pathways for the California Economy, David Roland- Holst and Fredrich Kahrl, UNIVERSITY OF CALIFORNIA • Renewable Energy and Energy Efficiency: Economic Drivers for the 21st Century, Roger Bezdek.
- 31. More Conservative Estimates •The Center for American Progress, using a more conservative methodology, estimates that doing deep energy upgrades on 50 million buildings would create 625,000 permanent new jobs. http://www.energyfuturecoalition.org/files/webfmuploads/R ebuildingAmerica_Vision_Statement_FINAL.pdf
- 32. Question: Are buildings requiredto upgrade if they score poorly? Answer: No
- 33. And Senior CareFacilities and Data Centers
- 34. References ENERGY STAR Hyperlinks(click on reference) • ENERGY STAR Program for commercial buildings. • San Francisco benchmarking legislation • New York City benchmarking program overview • Overview of all US disclosure programs (from IMT)
- 35. Question: Where canwe find a list and map of Energy Star buildings? Answer: On the EPA website
- 36. EPA Website AvailableToday New York City • 111 Offices • Five Banks • Four K-12 • Two Hotels • One Hospital • One Courthouse Two built in 1800’s • 49 before WW II http://www.energystar.gov/index.cfm?fuseaction=labeled_buildings.locator
- 37. Afterwards, a questionin the hallway: Question: My city won’t force building owners to disclose anything. What should we do?
- 38. Check the EPAWebsite http://www.energystar.gov/index.cfm?fuseaction=labeled_buildings.locator
- 39. Focus on theWinning Buildings 1. Disclose ENERGY STAR ratings – Government buildings – Schools – Contests 2. Copy San Francisco or NYC Regulation – Straightforward – Requires all commercial buildings to calculate Energy Star score – In year 2: disclose it on the city website 3. Celebrate buildings scoring 90+
- 40. Question: What about residentialbuildings?
- 41. Additional Steps Residential • Disclose last two years of energy costs* in residential MLS • Require disclosure with green claims – No “green” claims without disclosing actual energy consumption. – Five years of disclosure • Prior two and next three years – Use signage laws * Optionally, home sellers can disclose a HERS score.
- 42. Use Signage Lawsto Ban Advertising Without Disclosure Energy Saving Green Home (Data not disclosed) Require • Last 2 yrs utility bills • Next 3 yrs
- 43. A For the Brave Grade Every Building in the State A+ to D- Based on Energy Consumption And publish the grades 1 Main St. D- 2 Main St. A-
- 44. Send Window Stickersto the Top Performing Buildings Posting is optional 97 C+ Internet disclosure and window stickers will create a lot of jobs
- 45. Translating Building Percentiles and ENERGY STAR scores to Grades
- 46. Letter to afictional governor • 70 recommendations for state policy • Job creation Previous Book • Creating new products • Creating new companies These slides: www.EltonSherwin.com and on slideshare