1 | Energy Efficiency and Renewable Energyeere.energy.gov Measuring the Impact of Benchmarking &...

1 | Energy Efficiency and Renewable Energy eere.energy.gov

Measuring the Impact of Benchmarking & Transparency:

Handbook of Methods and the NYC Example June 18, 2015

Cody Taylor, DOESarah Zaleski, DOE

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To Cover Today

1. Momentum of benchmarking policies and programs2. Drivers of the Handbook3. How to use the Handbook4. Logic model of change and barriers5. Handbook methods6. NYC findings7. Next steps8. Other DOE benchmarking resources

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Benchmarking Policies

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Recently Published Resources

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Drivers of Developing the Handbook

• Increasing number of benchmarking policies and programs around the country

• Cities and states need consistent ways to analyze the impact of these efforts

• Benefit of deploying these resources/tools soon, as they may impact program design

• Desire to establish baselines as early as possible

• Increasing interest in measuring the energy and GHG reduction impacts of efforts

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Use of Handbook

• Intended to provide local governments and their partners with a “how-to-guide” with clear steps and data requirements

• Set of feasible, replicable, and defensible methods

• Both primary and secondary methods

• For use in the near (baseline collection), medium, and long term

• Recognition that foundational aspect of benchmarking policies are difficult to measure

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Barriers Benchmarking Addresses

Internal Barriers: Lack of owner or property manager visibility into, or focus on, the building’s energy use

Market Barriers: Lack of transparency about energy performance among real estate professionals, tenants, investors, and underwriters

External Barriers: Lack of broader market data to support efficiency program and policy design

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Logic Model

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Expected Market Changes Over Time

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Methods

Common Themes:

• Use data already collected through the B&T policies

• Relying on background and historical documents in the public domain

• Obtaining feedback from key stakeholders and partners

Ways to Evaluate:

• Market transformation

• Energy use impacts

• GHG emissions impacts

• Job creation

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Market Transformation Methods

Logic model and market transformation indicators (MTIs) provide a method for assessing the degree to which the policy is:

a) Changing market perceptions, structures and operations related to energy efficiency

b) Motivating market actors towards increased energy efficiency in the overall market

Survey and interview instruments are included in the Handbook

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Gather Information on Market Transformation

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Energy Savings Methods

Gross Impacts: The change in buildings’ energy usage over time inclusive of actions taken to reduce energy consumption as well as their participation in other energy efficiency activities or programs.

Primary: Analysis of iterative EUI outputs from Portfolio Manager of reporting buildings

1. Identify baseline and reporting year2. Determine which buildings have data in baseline and reporting year3. Calculate average EUI by building segment for both baseline and reporting year4. Calculate total gross impacts for all buildings through a weighted average5. Repeat steps 1-4 for next annual increment6. Sum gross energy impacts for each year to determine impacts over desired period7. Develop analysis categories.

Secondary: Augmented analysis of iterative EUI outputs

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Energy Savings Methods

Net Impacts: The subset of measured gross energy changes attributable to the B&T policy. That is, the net savings after taking into account natural market forces, common practice, and the impacts from other local, state, federal, and utility energy efficiency programs and tax credit initiatives.

Primary: Historical tracing and structured expert judgment

Secondary: Quasi-experimental design such as regression discontinuity and comparison city

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GHG Emissions Method

GHG emissions data can be sourced directly from Portfolio Manager

1. Collect emissions data for baseline and reporting year in each building

2. Normalize emissions data by building floor area for each year

3. Calculate difference from this adjusted baseline

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Job Creation Methods

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NYC Example

• Local Law 84

• Enacted in 2009

• Buildings over 50,000 square feet

• Affects over 2.8 billion square feet

• First year of data collected in 2010

• Chance to apply the Handbook methods

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NYC Gross Energy Savings

5.7% source energy savings 2010-2013

$267,492,147 estimated savings

2010-11: 0.3%

2011-12: 3.7%

2012-13: 4.4%

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Energy Savings by Building Type

Figure ES-2. Source Energy Savings by Building Type N

8%

College/ University Hotel Multifamily Office Other

College/ University 6%

Office

4%

2% Multifamily Other

0% 2010 2011 2012 2013

-2%

Hotel

-4% Year

Perc

ent S

avin

gs

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Dollar Savings

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NYC GHG Emissions Reductions

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NYC Job Creation

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Moving Forward

Measuring the impact of policies can help to understand their success or failure and deciding whether to continue, expand, or replicate them• Rigorously assessing energy efficiency impact of policies can

help ensure that their contributions to state energy savings can be recognized

• Consider early interviews of key stakeholders at the time of policy initiation to set a baseline for measuring future market transformation

• Use the data collected through benchmarking to measure changes in energy performance over time

• Begin measuring relationship between energy performance and building valuation to set a baseline for future changes

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Related DOE Resources

• SEE Action (https://www4.eere.energy.gov/seeaction/)– Energy Benchmarking, Rating, and Disclosure for Local Governments Fact Sheet

– Benchmarking and Disclosure: State and Local Policy Design Guide and Sample Policy Language

– Greater Energy Savings through Building Energy Performance Policy: Four Leading Policy and Program Options

– A Utility Regulator’s Guide to Data Access for Commercial Building Energy Performance Benchmarking

• Standard Energy Efficiency Data (SEED) Platform http://energy.gov/eere/buildings/standard-energy-efficiency-data-platform

• Better Buildings Energy Data Accelerator http://www1.eere.energy.gov/buildings/betterbuildings/accelerators /

• Uniform Methods Projecthttp://energy.gov/eere/about-us/ump-home

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To Access Today’s Resources

DOE’s State and Local Solution Center under Featured Publicationshttp://energy.gov/eere/slsc/state-and-local-solution-center

Handbookhttp://energy.gov/eere/slsc/downloads/benchmarking-and-transparency-policy-and-program-impact-evaluation-handbook

NYC Reporthttp://energy.gov/eere/slsc/downloads/new-york-city-benchmarking-and-transparency-policy-impact-evaluation-report

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Questions

Cody Taylor - cody.taylor@ee.doe.gov

Sarah Zaleski - sarah.zaleski@ee.doe.gov

Jay Luboff - jay.luboff@navigant.com

Ken Seiden - ken.seiden@navigant.com