Energize Denver

Unlocking Opportunity in Denver

Task Force Meeting 4

March 18th, 2016

Task Force GoalReduce energy consumption of commercial and multifamily buildings by

10% by the end of 2020 and double that in the following decade.

2

2012

Energy Usage in

Commercial and

Multifamily

Buildings

38.3 million

MMBTU

x 10% =3.8 million

MMBTU

Taskforce

Goal is to Reduce

Energy

Consumption this

Much by 2020

• Double the 2020 goal by 2030 means another 3.8 million MMBTU reduction in

energy consumption by commercial and multi-family buildings by 2030.

Energy Efficiency Unlocks

Opportunity

- Lighting upgrades

- Tune-ups (RcX)

- Efficient heating/AC

- Upgraded controls

Source: “United States Building Energy Efficiency Retrofits: Market Sizing and Financing Models.” Rockefeller

Foundation and Deutsche Bank Group. March 2012. Numbers scaled to City and County of Denver.

Who Benefits?

Building Owners

Energy efficiency investments lower operating costs.

Increasing Net Operating Income

= A More Valuable Asset

Studies by CoStar verify this.

Who Benefits?

Businesses

ENERGY STAR = 35% more efficient

~50 cents per square foot in savings

Attract business to Denver

Source: ENERGY STAR

and Xcel Energy

• Energy efficient commercial buildings makes Denver more

attractive to global firms

• Millennials want sustainability. Attracting millennials could

attract business.

• Energy efficiency can help us beat our top competitor cities

such as Salt Lake City and Dallas

Who Benefits?

A Globally Competitive City

FOUR POLICY OPTIONS FOR THE

TASK FORCE’S CONSIDERATION

Option A: Most ambitious combination

Prescriptiveall buildings benchmark, >20,000 square feet for other policies

8

Annually

Complete once

every 5-years (20% of buildings

each year, starting

2019)

-and-

-and-

One

Time

Policy 6: Lighting

Upgrade to Code2021-2025

Policy 4:

Retrocommissioning(building “tune-up”, RCx study plus

implementation)

Policy 5: AuditBuilding owner completes an energy

audit

ENERGY STAR score

(or EUI if can’t get ENERGY STAR score)

Policy 1: Annual

BenchmarkingPolicy 2: Transparency

Option B: LA Model

Prescriptive or Performancebuildings > 10,000 sq. ft. benchmark, >25,000 sq. ft. for other policies

9

Annually

Complete once

every 5-years (20% of buildings

each year, starting

2019)

-or-

-and-

ENERGY STAR score

(or EUI if can’t get ENERGY STAR score)

Policy 3: Certification/Performance- ENERGY STAR or LEED EBOM certified in last 5 years

- Improve EUI by 15% in the last 5 years. (EUI would be adjusted for weather, occupancy

and operating hours)

Policy 4:

Retrocommissioning(building “tune-up”, RCx study

plus implementation)

Policy 5: Auditowner completes an audit

and

Policy 1: Annual

BenchmarkingPolicy 2: Transparency

Option C: Modified LA

Prescriptive or Performancebuildings > 25,000 sq ft benchmark, buildings > 50,000 sq ft other policies

10

Annually

Complete once

every 7-years (14% of buildings

each year, starting

2020, lowest

performers go first.)

-or-

-and-

Policy 3: Certification/Performance ENERGY STAR or LEED EBOM certified in last 5 years

Improve EUI by 12% in the last 7 years. (EUI would be adjusted for weather, occupancy

and operating hours)

Policy 4: Retrocommissioning(building “tune-up”, RCx study

plus implementation)

Policy 5: Audit and Upgrade Owner completes an audit and implements measures from the audit with <3 year

payback OR

owner completes other upgrades that achieve similar energy savings through Xcel

rebated measures.

-or-

ENERGY STAR score

(or EUI if can’t get ENERGY STAR score)

Policy 1: Annual

BenchmarkingPolicy 2: Transparency

Transparency Exemptions

Grace period of one year

Exemptions available for

confidential business practices

Policy Option D: Performancebuildings > 50,000 square feet

11

Annually

Complete once

every 7-years (14% of buildings

each year, starting

2020, lowest

performers go first.)

-and-

Policy 3: Certification/Performance ENERGY STAR or LEED EBOM certified in last 5 years

Improve EUI by 12% in the last 7 years. (EUI would be adjusted for weather, occupancy

and operating hours)

ENERGY STAR score

(or EUI if can’t get ENERGY STAR score)

Policy 1: Annual

BenchmarkingPolicy 2: Transparency

Transparency Exemptions

Grace period of one year

Exemptions available for

confidential business practices

POLICY OPTIONS TOGGLE

SLIDES

Policy 1: Benchmarking

Bldg. Size

Year to

Implement

Energy Star

10k SF 25k SF 50k SF

2017 2019 2021

EUI OnlyEnergy Star

ScoreES Score with

Engineer Certification

Policy 2: Transparency

Bldg. Size

Year to

Implement

Exceptions

10k SF 25k SF 50k SF

2017 2019 2021

None Confidential

Business

Practices

Energy Star LEED EB: O&MLiving Building

ChallengePassivhausNone

Policy 3: Certification or

Performance

Certification

Year to

Implement

2017 2019 2021

Building

Size

10k SF 25k SF 50k SF

EUI

Improvement

10% 15% 20%

Frequency

5 Years Every 10 Years6 7 8 9

2018 2020 2022

2017 2019 20212018 2020 2022

Policy 4: Retrocommissioning

Year to

Implement

Building

Size10k SF 25k SF 50k SF

Implementation

Level

(Payback) 1 Year 3 Years 5 Years

Frequency

5 Years Every 10 Years6 7 8 9

2017 2019 20212018 2020 2022

Policy 5: Audits and Upgrades

Year to

Implement

Building

Size10k SF 25k SF 50k SF

Implementation

Level

(Payback) 1 Year 3 Years 5 Years

Frequency

5 Years Every 10 Years6 7 8 9