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Final WorkshopJuly 28, 2015
Overview of Proposed Program
Developing an Energy & Water
Efficiency Program for LA’s Existing Buildings
• LADWP adopted a target to achieve
15% of their energy supply mix
through efficiency efforts by 2020;
50% more aggressive and three years
earlier than required by the state.
• Mayor Garcetti signed an Executive
Directive to reduce per capita potable
water use by 20% by 2017 and reduce
DWP’s purchase of imported potable
water by 50% by 2024.
• Statewide program in progress
through AB 758 to reduce energy use
in all existing buildings statewide and
Governor Brown’s new water
mandates.
December 3rd, 2014:
City Council Motion
14-1478 initiated an
effort to:
“convene a
stakeholder process
to develop a program
to improve the
energy and water
efficiency of existing
buildings.”
Why We Are Here – Local and State Targets
Why We Are Here – Sustainable City pLAn
lamayor.org/sustainability
Energy Efficient Buildings
Local Water
Carbon & Climate
Leadership
Why We Are Here – New State Goals and Mandates
• Governor Brown’s Inaugural Address– “I propose three ambitious goals to be accomplished within
the next 15 years: Increase from one-third to 50 percent
our electricity derived from renewable sources; Reduce
today's petroleum use in cars and trucks by up to 50
percent; Double the efficiency of existing
buildings and make heating fuels cleaner.”
• SB 350, the Clean Energy and Pollution
Reduction Act of 2015 (“Golden State
Standards”)
• AB 758 Draft Action Plan released
• Governor’s water mandates– Reduce water consumption 25% statewide
• Department of Energy released a report “Benchmarking
Transparency Policy Program Impact Evaluation Handbook”
• The analysis reinforces that Los Angeles is on the right track
• LA’s proposed path of policy leads to market transformation
Department of Energy’s Logic Model
Los Angeles Existing Building Energy and Water Efficiency Program
The Policy Map is Growing
Los Angeles Existing Building Energy and Water Efficiency Program
Department of Energy analysis from the first three
years of New York’s benchmarking ordinance (LL84)
• 5.7% source energy savings 2010-2013
Cities Are Seeing Results
Los Angeles Existing Building Energy and Water Efficiency Program
FinalWorkshop
DraftProposed Program
FinalProposed Program
Dialogue
Meetings
City CouncilMotion
Council Meeting
Stakeholder Process Overview
Kick-Off Workshop
Los Angeles Existing Building Energy and Water Efficiency Program
12/3/14 1/15/15 1/15 – 6/1 June and July Fall 20157/28/15
• Jan. 15 – Kick off meeting
• Jan. 29 – Benchmarking and Reporting
• Feb. 12 – What Buildings are Included
• Feb. 26 – How the Information Will be Shared and Used
• March 17 – Strategies to Achieve Savings
• March 31 – Implementation and Phasing
• April 16 – Supporting Programs, Finance, & Training Needs
• May 27 – Retrofit Working Group
• June 1 – Retrocommissioning Working Group
• July 28 – Final Workshop
Stakeholder Dialogue Meetings To Date
Los Angeles Existing Building Energy and Water Efficiency Program
Additional Stakeholder Meetings
Los Angeles Existing Building Energy and Water Efficiency Program
• Los Angeles Chamber of Commerce
• Los Angeles Business Council (LABC)
• Los Angeles Alliance for a New
Economy (LAANE)
• Strategic Concepts in Organizing &
Policy Education (SCOPE)
• IBEW Local 11
• Apartment Association of Greater Los
Angeles (AAGLA)
• California Apartment Association (CAA)
• Affordable housing owners
• Building Owners & Managers
Association (BOMA)
• US Green Building Council (USGBC) –
LA Chapter Existing Building Committee
• Central City Association (CCA)
• California Energy Commission (2x)
• Clean Energy Coalition
• Energy Upgrade California
• Tenant group representatives
• American Institute of Architects (AIA)
• LA Better Buildings Challenge (LA-BBC)
• Southern California Gas (SoCalGas)
• Building Industry Association (BIA)
• Institute of Real Estate Managers
(IREM)
Summary of Meetings: Here’s What We Heard
Los Angeles Existing Building Energy and Water Efficiency Program
Who is included in this program?
Use building size (sq. ft.) to determine which buildings are “covered” by the
program.
What tool should be used to benchmark?
Use Energy Star Portfolio Manger (PM) to benchmark energy and water –
free, non-proprietary, government administered tool, and industry standard.
What will be done with the benchmarking data?
Provide on-line access to annual: Portfolio Manager score, energy use per sq. ft.
(EUI), and gallons of H20 per sq. ft., - consider including peak demand (kW) and
other factors.
Make it easy
Streamline collection and reporting of energy and water data, especially for
buildings with multiple meters – ideally LADWP data can automatically upload to
Portfolio Manager.
Provide flexibility in determining what operation changes or retrofits to implement.
Reward voluntary action and recognize high performing buildings
All buildings should benchmark but high performing may be exempt from further
requirements.
Summary of Meetings: Here’s What We Heard
Los Angeles Existing Building Energy and Water Efficiency Program
Supporting/complementary efforts
Recognize the need to support the practitioner community and expand the
workforce – offer workshops on the program and support for complementary
training and certifications.
Identify ways to better align the LADWP rebate and incentive programs with
market needs.
Coordinate with the efficiency community to identify needs and options for
financing.
Coordinate LA’s efforts with the County’s efforts, AB 1103 and other statewide
efforts (AB 758)
Summary of Meetings: Here’s What We Heard
Los Angeles Existing Building Energy and Water Efficiency Program
Complete once a
year
Complete once
every 5 years
• Buildings will be required to benchmark their energy and water use and submit to the Department of Building and Safety once a year
• Benchmarking and Performance information will be disclosed to the public
• Building owners will opt into one of two pathways to reduce energy and water consumption once every five years
Policy Program Overview
Los Angeles Existing Building Energy and Water Efficiency Program
• Covered Buildings
– City buildings (municipal) that exceed 7,500 gross sq ft
– Non-City buildings that exceed 10,000 gross sq ft
• Benchmarking Tool
– EPA EnergyStar Portfolio Manager
• Energy and Water Audit
– ASHRAE Level II
• Retro-commissioning (RCx) and Retrofits
– List as defined by the Department of Building and Safety
Key Definitions
Los Angeles Existing Building Energy and Water Efficiency Program
PROPOSED TIMELINE
CITY
BUILDINGS
NON-CITY
BUILDINGS
7,500 sq ft
50,000 sq ft
25,000 sq ft
10,000 sq ft.
June 1st
2016
June 1st
2017
June 1st
2018
Building owners must annually benchmark energy and water
consumption using EPA’s Portfolio Manager tool and submit
results to the Department of Building and Safety once a year
Proposed Benchmarking Requirement
Los Angeles Existing Building Energy and Water Efficiency Program
50,000 sq ft
25,000 sq ft
10,000 sq ft.
CITY
BUILDINGS
NON-CITY
BUILDINGS
Sept. 1st
2016
Sept 1st
2017
7,500 sq ft
Sept 1st
2018
Sept 1st
2019
PROPOSED TIMELINE
• Benchmarking information for the previous year will be
made available to the public online
• A building’s first year’s benchmarking results will not
be disclosed
Proposed Public Disclosure Timeline
Los Angeles Existing Building Energy and Water Efficiency Program
Utility Data Access
Los Angeles Existing Building Energy and Water Efficiency Program
DWP working to
provide
aggregated
whole building
energy data
uploaded
through
Portfolio
Manager
Building Owners must opt into one of two pathways to
reduce energy and water consumption
PERFORMANCE OR PRESCRIPTIVE
Proposed Energy and Water Reduction Requirements
Los Angeles Existing Building Energy and Water Efficiency Program
Performance Path
Los Angeles Existing Building Energy and Water Efficiency Program
Energy
• LEED EBOM certification with a
certain amount of energy points
• 15% reduction in energy use per
square foot
• EPA EnergyStar certification
Water
• LEED EBOM certification with a
certain amount of water points
• 20% reduction in water use per
square foot
• Conduct an audit of water
consuming systems
A building owner must complete one option for energy and
one option for water
Prescriptive Path
Los Angeles Existing Building Energy and Water Efficiency Program
Audit
• A certified professional conducts an ASHRAE
Level 2 audit
• Full audit report submitted to building owner
• Subset of audit data submitted to DBS for
compliance
Audit alternative - Retrofits
• “Simple buildings” have the options of
installing retrofits from a specified list instead
of an audit
Retro-commissioning (RCx)
• A certified professional performs retro-
commissioning according to a specified list
A building owner must complete an energy and water
audit, as well as perform retro-commissioning
• Building owners will be notified between December and
January that they are required to submit benchmarking
information
• Department of Building and Safety will post a list of
covered buildings online that are required to benchmark
• Building owners of covered buildings will be notified at
least three years prior to the calendar year their energy
and water performance requirements are due
Proposed Notification and Posting
Los Angeles Existing Building Energy and Water Efficiency Program
• Failure to comply with or misrepresent any material fact in relation to the ordinance would be considered unlawful and result in a penalty
• Failure to report or submission of fraudulent benchmarking information may result in:
• Issue of a written warning
• Failure to report within 30 days of warning may be fined up to $1,000
• Failure to report within 90 days may be fined up to $1,000
• Incomplete or false information may be fined up to $1,000
• Failure to report Energy and Water performance may result in:• Issue of a written warning
• Failure to report within 180 days of warning may be fined up to $5,000
• Failure to report within an addition 180 days may be fined up to $5,000
• Incomplete or false information may be fined up to $5,000
Proposed Violations and Enforcement
Los Angeles Existing Building Energy and Water Efficiency Program
Leading by Example
Los Angeles Existing Building Energy and Water Efficiency Program
CityEnergy-Design-0724_Artboard 1 default.pngCityEnergy-Design-0724_Artboard 2 secondary.pngCityEnergy-Design-0724_Artboard 3 comparison year.pngCityEnergy-Design-0724_Artboard 4 comparison building.pngCityEnergy-Design-0724_Artboard 6 print previous.png
Supporting Programs
Los Angeles Existing Building Energy and Water Efficiency Program
A Leadership Initiative
32
Retrocommissioning
BMS systems
Geothermal conditioning
Get LEED certified
Replace chiller
Solar panels
Ice storage
Focus on energy
Green roof
Change behavior
Continuous commissioning
Zero energy
Holistic repositioning
Change light bulbs
Window film
White roof
benchmark
Recladding
Deep rejuvenation
DO THE PERFECT
THING?
DO NOTHING
DO SOMETHING!
A Leadership Initiative
TECHNOLOGY
GOVERNMENT
& UTILITIES REAL ESTATE
LABBC
A Leadership Initiative
• 20% Energy Savings by 2020
• 30 Million Square Feet
• Make Los Angeles the Greenest Big City in the US
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
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The LABBC has Enrolled >53M Square Feet
of Existing Buildings
A Leadership Initiative
LABBC Building Partners
Institutional Partners & Sponsors
LABBC Services
• Automated Energy & Water Benchmarking
• Technical Support & 3rd Party Review
• Accelerated “Investment Grade” Project Development Model, Qualified Implementation Partners
• Rebate Application Support
• Project Financing Support
• Marketing & PR Support
• Educational webinars & events, co-hosted with industry leaders
Automated Benchmarking
AMP - LABBC Services
LABBC Services
LABBC Services
Marketing & PR Support
Get Involved!
• Enrolling allows you to take advantage of the program’s resources and reach your goals sooner
• Simple enrollment form
• No penalties if you can not meet the 20% goal
• Data is reported only in aggregate
Your buildings will benefit from helping make LA the greenest big City in the US
Dave HodginsExecutive Director
LA Better Buildings Challenge(970) 319 – 6611
Operating
costs
drop 8.5%
Building
value
rises 6.8%
ROI
improves
2.5%
Occupancy
rises 1%
Rents
rise 19.2%
Source: McGraw Hill Construction (2010). Green Outlook 2011: Green Trends Driving. Growth
www.LA-BBC.com
Contact Info
USGBC-LA’s MISSION:
to promote sustainability in LA County’s built environment by
delivering access to knowledge, resources, recognition and
networking.
The organization’s activities…
Expand the green building marketplace
Cultivate sustainable cities and communities
Influence green building policy at all levels of government
Calibrate and enhance the environmental benefits of green
building
Strengthen the links between green building and human health
and well being
Achieve higher mission impact through organizational and
community excellence
USGBC-LA Membership
1,074 Individual Chapter Members
329 National Member Companies
5,500 LEED Professionals
Coming Soon!
Volunteer Speakers Bureau
Next Century Power:
Energy Efficiency for LA
Existing Buildings – Final Workshop
July 28, 2015
David Jacot, P.E.
Director of Efficiency Solutions
Next Century Power:
Why Energy Efficiency?
• LADWP plans to exit coal by 2025• AB 32 – Environmental Leadership
• 2 years ahead of schedule
• Coal about 33% of power supply today
• Replacement power• Natural gas
• Renewables – 33% State-mandated by 2020
• Energy Efficiency (EE) – 15% goal by 2020
• Renewables and EE• Combined will serve almost 50% of power
needs by 2020
Next Century Power:
Commercial Customers Are Key to the 15% Goal
• LADWP’s commercial customers
represent a large majority of cost-effective
energy efficiency potential.
• LADWP’s EE investments across
customer segments are planned in a
similar proportion to achieve the 15% goal.
• Demonstrated EE potential does not
automatically guarantee these savings will
be acheived.
Next Century Power:
New Policies and LADWP’s Customer Programs
• New policies adopted by the City or State
may help LA achieve the 15% energy
savings goal by 2020.
• LADWP will adjust and optimize our
customer programs to work with any new
policies put in place in order to support
building owners in LA:
• Meeting the requirements of those policies
• Reducing their energy use and costs
Next Century Power:
LADWP’s Flexibility to Adjust Customer Programs
• Example:• CA Regulation: 2013 Title 24 Energy Code
effective 7/1/14
• LADWP response: Increased incentives and
existing equipment baseline implemented
10/1/14 for CLIP and CPP
• Example:• Potential LA City Ordinance: Mandatory
Benchmarking and Disclosure
• LADWP Response: Energy Efficiency
Technical Assistance Program (EETAP)
streamlined:• Eliminated “unique square footage” concept
• Milestone payments introduced
• More to come…
• Does the program reflect the stakeholder input?
• Are there aspects that need to be modified or clarified?
• Do you have suggestions for improvement?
– Program structure
– Reference standards
– Timing
• What needs to be done to ensure effective implementation?
– City procedures
– Workforce training and capacity building
– Building owner education
Questions
Los Angeles Existing Building Energy and Water Efficiency Program
Next Steps
Los Angeles Existing Building Energy and Water Efficiency Program
LAexistingbuildings.org
Information and Meeting Sign Up
Los Angeles Existing Building Energy and Water Efficiency Program
Stay Informed About the Process
Appendix
Next Century Power
New Incentive Rates for CPP and CLIP
Incentive Categories Previous Incentive LevelsIncentive Levels
as of October 1, 2014CPP CLIP
Controls/RCx $0.08/kWh $0.15/kWh X
Plug/Process/Other $0.08kWh $0.15/kWh X
HVAC-Refrigeration
(includes chillers &
VRF)
$0.14/kWh $0.25/kWh X
Envelope $0.08/kWh $0.25/kWh X
Lighting (Including
LED Fixtures)$0.05/kWh $0.15/kWh X X
Lighting Controls $0.05/kWh $0.10/kWh X X
Lighting (Lamp only) $0.05/kWh $0.05/kWh X X
Thermal Energy
StorageUp to $750/kW Up to $ 750/kW X
Incentive Cap 50% of project
cost (100% for CLEO)
New Cap 75% of
project costX X
LADWP’s CPP and CLIP
•Incentive amounts range $0.05kWh to $0.25/kWh
•New Cap 75% of project cost including design and permit
•More qualifying measures
•Same incentives for interior/exterior fixtures
•Incentives paid from existing baseline conditions to new conditions that meet or exceed new 2013 Title 24 or industry standards
Statewide Customized Programs
•Incentive amounts range $0.03/kWh to $0.15/kWh and $150/kW
•Cap remains at 50% of project cost
•Fewer qualifying measures
•Reduced incentives for “off peak” lighting
•Measures up to “code” or “standard” are not eligible for utility incentives. Applications submitted after July 1, 2014 must reference Title 24 as code baseline
Next Century Power
LADWP vs. CA IOUs (SCE, PG&E, SDG&E)
Next Century Power:
Example Project – EETAP and CPP
• Example: Mid-size Hospital Facility• Measures: Retrofit lighting fixtures, lighting controls, HVAC
• Project cost: $250,000 (including IGA)
• Calculated energy savings:
• Lighting fixtures - 200,000 kWh year
• Lighting controls - 175,000 kWh/year
• HVAC – 125,000 kWh/year
• Total savings 500,000 kWh/year
• EETAP incentive : 500,000 kWh/yr X $0.04 /kWh =
$20,000
• CPP incentive: (200,000 kWh/yr X $0.15/kWh) + (175,000
kWh/yr X $0.10/kWh) + (125,000 kWh/yr X $0.25/kWh)
= $78,750
• Remaining project cost: $250,000 - $98,750 = $151,250
• Annual estimated energy savings: 500,000 kWh/yr X $0.15
kWh average blended retail rate = $75,000
• Payback after incentives ~ 2 Years