DC Energy Act and Energy Star
DC Energy Act and Energy Star
DC Energy Act and Energy Star
ENERGY STAR
December 9, 2008
202-328-5149
[email protected]
WASTE MANAGEMENT 7%
TRANSPORTATION 18%
BUILDINGS
75%
security 8% road/grounds 2%
Source: 2005 BOMA Experience Exchange Report
admin. 20%
cleaning 18%
The Problem:
Market Failures Leading Underinvestment
in Efficiency & Renewables
Energy consumers dont pay the price for resulting pollution (negative externality) Inertia and fear of change (human nature) Those who control energy consumption dont pay for it (split incentives) Developers/designers/builders/subs Owners vs. tenants Lack of info (few know how efficient their building is or how cost-effectively they could reduce energy use) Financing (too hard to finance efficiency and too easy to finance old inefficient plans/buildings)
Private buildings
Building code greened in December 2008, including strengthened building-energy-efficiency requirements (ASHRAE 90.1 2007 and The 30% Solution) Commercial buildings over 50,000 sf built after 2011 must be LEED certified Expedited building permits for green buildings
Sponsored by Councilmember Mary Cheh and eight other council members Unanimously passed by City Council on July 15, 2008
Signed by Mayor Fenty on August 4, 2008 CM Cheh and her staff extensively consulted with
broad range of stakeholders in drafting the bill
IMT assisted in design of the Act including the benchmarking provision
Benchmark annually starting as follows: 10/1/2009 government owned or operated buildings 10k+ square feet (sf) Private buildings: 12/31/2010 200k+ sf 12/31/2011 150k+ sf 12/31/2012 100k+ sf 12/31/2013 50k+ sf
Energy Star statement of energy performance to a public online database starting by 12/1/2009 for public buildings and with the 2nd annual disclosure for private buildings (e.g. 1/1/2012 for buildings 200k+ sf)
50k+ sf project that has submitted the 1st permit after 1/1/2012, for new construction or substantial improvement shall, prior to construction, estimate its energy performance using the Energy Star Target Finder and benchmark annually public disclosure within 60 days of benchmarking
Louis Berger commissioned in 2008 by DC government to create an economic model to measure current green jobs and predict future green job creation, including due to environmental policies Benchmarking requirement is a top driver of green job creation It will create more than 1,000 jobs as building owners invest in O&M and retrofits (74.8% of the new jobs are in construction, installation and O&M)
Reinvents from the ground up (design, delivery, implementation, oversight) Creates a Sustainable Energy Trust Fund (SETF) to increase funds for programs
0.11 cents per kilowatt-hour on electricity sales, increasing to 0.15 cents per kWh after 2011 An assessment of 0. of 0.11 cents per therm on natural gas sales, increasing to 0.14 cents per therm after 2011
A 3rd party selected by RFP to a 5+ year contract Structured to focus on customers and results and be entrepreneurial and nimble with short and long-term goals A one-stop shop
25% 15%
5% 30%
Space Heating 15% Space Cooling 25% Lighting 30%
25%
Triple net and modified gross leases make it more difficult for owners to realize NOI and property value increases from efficiency investments Smart tenants track total occupancy cost, not just rent Tenants often willing to use their energy cost savings to finance efficiency Tenant Cost Recovery lease terms can help
Tenants costs
Salaries Benefits Rent Utilities Electricity Cleaning Maintenance Planning Amenities Lighting