Untapped Potential of Commercial Buildings

7/31/2019 Untapped Potential of Commercial Buildings

1/13

A

H I G

H L I G H T S

UNTAPPED POTENT IAL Of COMMERCIAL BUILDINGS ENERGY USE AND EMISSIONS

APT URING WASTED ENERGY: EFFICIENCY, RETROF ITS, BARRIE RS


2/13

xT 10 IS AN IND EPENDENT NONPARTISAN ORGANIzATION ThAT EDUCATES, ENGAGES AND EmPOWERS

IFORNIANS TO ImPROvE ThE STATES FUTURE.

xT 10 WAS FOUNDED IN 2003 BY vENTURE CAPITAlIST AN D PhIlANThROPIST F. NOEl PERRY. NExT 10 IS

CUSED ON INNOvATION AND ThE INTERSECTION BETWEEN ThE ECONOm Y, ThE ENvIRONmENT, AND qUAlITY

lIFE ISSUES FOR All CAlIFORNIANS . WE PROvIDE CRITICAl DATA TO hElP INFORm ThE STATES EFFORTS

GROW ThE ECONOmY AND REDUCE GlOBAl WARmING EmISSIONS.

S REPORT ON COmmERCIAl BUIlDING EFFICIENCY IS A NExT 10 WhITE PAPER ThAT ExAmINES ThE

TAPPED ENERGY EFFICIENCY POTENTIAl hElD BY COmmERCIAl BUIlDIN GS IN CAlIFORNIA, ANAlYzES

STAClES TO AChIEvING WIDESPREAD ADOPTION OF BUIlDING EFFICIENCIES AND ExPlORES APPROAChES

REmOvING ThESE BARRIERS.

R mORE INFORmATION, PlEASE vISIT US ONl INE AT WWW.NExT10.ORG.

PREPARED BY: COllABORATIvE ECONOmICS

D ug H tJ h M lvillTra y Gr sLiz Br wMatth w M sh rIsaa Y d r

ODUCED BY: NExT TEN

l P rryah H ryr ia e. P rryali Biddiah

DESIGNED BY:

ch D sig Ass iat s

e utiv Summary 2

_1 I tr du ti 4

_1.1 cali r ia is drivi g ati al p li y m m tum i missi s r du ti s a d rgy i y 4

_1.2 e rgy i y impr v m ts i mm r ial buildi gs r pr s t a imp rta t path tsavi g rgy, utti g sts a d r du i g gr h us gas missi s 6

_2 Tr ds i c mm r ial el tri ity c sumpti 8

_2.1 c mm r ial l tri ity sumpti has gr w v r tim , but i y has b r lativ ly stabl 8

_2.2 c mm r ial buildi g l tri ity sumpti p r squar t is impr vi g v r tim with aw ti abl pti s 8

_2.3 Lighti g a d h ati g, v tilati a d li g syst ms r pr s t th maj rity l tri itysumpti i mm r ial buildi gs 8

_2.4 e rgy Star applia s hav gai d sig i a t mark t shar i cali r ia v r th last d ad . 11

_2.5 A small, but gr wi g, p r tag cali r ia mm r ial l tri ity ust m rss ll p w r ba k t th grid 11

_3 Driv rs, Barri rs a d I tiv s 12

_3.1 U tapp d mm r ial rgy i y m s r m r tr tti g ld buildi gs a d i rp rati grgy i y i th d sig a d stru ti w buildi gs 12

THeRMAL enVeLoPe: Br ad ha g s t th th rmal v l p isti g buildi gs aimpr v i y a d r at j bs 12

LIGHTInG: Adva s i lighti g t h l gy hav r at d larg gativ st i y gai s 14

HABITS: B havi ral ha g s i mm r ial rgy us a pr vid v ry l w st rgy savi gs 14

STAnDARDS: cha g s t buildi g d s a d sta dards hav l g-t rm ts 14

_3.2 Th barri rs ar di r t r i y impr v m ts i isti g a d w mm r ial buildi gs 14

_3.3 A mbi ati d ral, stat , a d utility-sp i pr grams pr vid i tiv s rmm r ial buildi g i y impr v m ts 15

_4 L api g F rward 19

CONTENTS


3/13

th midst th w rst r ssi s i cali r ia hist ry, th stat budg t d it a d d ubl -

digit u mpl ym t, th r ar silv r bull ts. But th r is a p t tial g ld mi that uld h lp

g rat j bs, stat savi gs a d mi gr wth. T day, mm r ial buildi gs i cali r ia a u t

r 37 p r t primary rgy usag mu h whi h is wast d. A rdi g t th U it d Stat s

D partm t e rgy, mm r ial buildi gs uld b mad 80 p r t m r i t with w a d

isti g t h l gy. This r pr s ts b th a sig i a t drai ur my a d a u tapp d r s ur .

r asi g mm r ial buildi g rgy i y w uld pr vid sig i a t savi gs r cali r ia

usi ss s a d stat g v r m t, r du th d t build w p w r pla ts, a d ut gl bal warmi g

lluti whil g rati g j bs a d mi gr wth.isti g buildi g st k r pr s ts th gr at st pp rtu ity r apturi g th l w-ha gi g ruit r

rgy i y gai s. I th av rag buildi g, upgradi g buildi g i sulati r sults i rgy

avi gs 30 p r t. Adva s i lighti g t h l gy rs rgy savi gs up t 20 p r t.

v stm t i l w- st t h l gi s su h as lighti g, i sulati a d wi d ws ar st tiv t

ly b aus th r sulti g st savi gs, but als b aus LeeD r e rgy Star rti d buildi gs

mma d high r r ts (b tw si a d s v p r t high r) a d mai tai high r upa y rat s

ha th r buildi gs l at d withi -quart r mil radius th m. A 2008 c d Gr surv y

p rts that 79 p r t l as h ld rs w uld pay v p r t high r r t r LeeD Silv r-rat d spa .

A d a rdi g t Buildi g ow rs a d Ma ag rs Ass iati I t r ati al, simpl rgy i y

mpr v m ts, su h as i sulati g wi d w lms, yi ld thr d llars i savi gs av rag r v ry

d llar i v st d.

n w buildi gs i cali r ia d t r ap th rgy savi gs th y uld. With a mi imal tw p r t

r as i stru ti sts, w buildi gs a b d sig d t us -third t -hal l ss rgy

ha th y us t day.

all, cali r ia busi ss s a d g v r m t uld sav tr m d usly thr ugh rgy i y,

ut r al mark t barri rs ist t a hi vi g th s rgy i y b ts. This whit pap r

ami s th u tapp d rgy i y p t tial h ld by mm r ial buildi gs i cali r ia, a alyz sbsta l s t a hi vi g wid spr ad ad pti buildi g i i s a d pl r s appr a h s t

m vi g th s barri rs.

hUGE UNTAPPED POTENTIAl FOR ENERGY EFFICIENCY ExISTS

TODAY IN COmmERCIAl BUIlDINGS

Electricity consumed by commercial of ce buildingsr pr s ts 37 p r t cali r ias t tal l tri ity

sumpti . Bas d th U.S. av rag , rgy i yimpr v m ts uld ut that usag by 80 p r t.

Broad changes to the thermal envelopeof existingbuildingsa dramati ally impr v i y. I th av rag buildi g,a 30 p r t savi gs uld m r m upgradi g buildi gi sulati r m urr t l v ls t th D partm t e rgysr mm d d l v ls.

Advances in lighting technology have created great potentialr larg gativ - st i y gai s. Usi g cFL r LeD

t h l gy rs av rag i y gai s 818 p r ta d 1020 p r t r sp tiv ly.

Behavioral changes in commercial energy use can providev ry l w- st rgy savi gs.

WhIlE CAlIFORNIA IS lEADING ThE NATION IN BUIlDING

EFFICIENCY POlICY, mORE CAN BE DONE

Californiahas led thenation in the establishmentof buildingi y sta dards, as w ll as i r asi g th s sta dards.

Californiahas the largest-scale Property Assessed Cleane rgy (PAce) pr grams i th ati . With PAce, publititi s i th stat a part r with r sid tial a dmm r ial pr p rty w rs t a rgy i y a drgy g rati pr j ts usi g l w-i t r st l a s that ar

r paid thr ugh a ual pr p rty ta paym ts.

Californiahas no standards for existing buildingstock.

Current standards for new buildings are well below what is p ssibl .

Commercialelectricity consumption has grown over time, butrgy i y gai s hav b r lativ ly i r m tal.

Sectors varyby their energy intensity.While energy ef ciencyr s m has r mai d fat r d r as d v r th last tw

d ad s, h spitals hav b m m r rgy i t siv withth i r as d us w t h l gy.

ENERGY EFFICIENCY IN COmmERCIAl OFFICE BUIlDINGS OFFERS

AN ImmENSE, lOW-COST ENERGY RESOURCE ThAT PROvIDES REAl

COST SAvINGS FOR BUSINESSES TO REDIRECT TOWARD NEW

EmPlOYEES OR CAPITAl INvESTmENTS

Simple improvements to window insulation on average canyi ld thr d llars i savi gs r v ry d llar i v st d.

Energy ef ciency rms have attracted the largest number of

v tur apital d als i th rst hal 2010, a d th s rmsar s t t g rat w j bs.

mARkET BARRIERS PREvENT ThE FUll REAlIz ATION OF ENERGY

EFFICIENCY POTENTIAl

In existingbuildings, split incentives, elevated hurdle rates,up r t apital sts, a d a i rmati gap dimi ish larg -s al ad pti rgy r tr ts.

In new commercial construction, a lack of incentives ford v l p rs a d i tiv i stallati a d i sp tim th ds ar barri rs t rgy i y rts.

mUCh CAN BE AChIEvED ThROUGh ACTIONS TAkEN AT ThE

FEDERAl, STATE AND lOCAl lEvElS ThAT RAISE STANDARDS,

AlIGN INCENTIvES, AND SUPPORT ThE BROAD-BASED APPlICATION

OF hIGh-EFFICIENCY PRODUCTS AND PRACTICES

Informingconsumers andbusinesses onthe opportunities fori y impr v m ts a d th ir r al st savi gs is ru ial.

Als ru ial is suri g th pr p r us quipm t.

The removal of structural impediments is key. For example,pr p r s luti s t th split i tiv pr bl ms b twt a ts a d pr p rty w rs will gr atly i r as i y

r tr ts a d i stallati s. More widespread adoption of PACE programs across

th stat will all w pr p rty w rs t m r asily a rdi v stm ts i i y.

ECUTIvE SUmmARY

kEY FINDINGS


4/13

I 2001, cali r ia p ri d a s ri s r lli g bla k uts

a d spik s i rgy sts. F ll wi g th risis, rgy

i y t h l gi s a d b havi rs ad pt d by r sid ts a d

busi ss s alik duri g th risis r du d a ual stat wid

rgy sumpti by 1000MW ( mparabl t tw larg

p w r pla ts), whil p li y mak rs w rk d t impl m t w

stat wid rgy i y pr grams. 6

H w v r, d spit i y impr v m ts r m th rgy

risis, s v ral maj r bsta l s r mai d i r alizi g p t tialmm r ial rgy i y savi gs. I 2007, th Buildi g

ow rs a d Ma ag rs Ass iati cali r ia (BoMA

cali r ia) br ught suit agai st a 1962 d isi by th

cali r ia Publi Utiliti s c mmissi (cPUc) k w as Rul

18. U d r Rul 18, la dl rds high-ris mm r ial buildi gs

w r t all w d t us subm t ri g t bill t a ts. I st ad,

l tri ity sts w r spr ad v ly am g pr p rty t a ts,

r ati g a third party pay r syst m r l tri ity sumpti

a d r m vi g dir t st i tiv s r m l tri ity us rs.

I 2008, BoMA cali r ia, th cPUc a d Pa i Gas &

el tri r a h d a s ttl m t r s i di g Rul 18. F ll wi g

this d isi , similar agr m ts w r r a h d with S uth r

cali r ia edis a d Sa Di g Gas & el tri t all w th

i stallati subm t ri g quipm t i mm r ial high-ris s

a r ss th stat . 7 Additi ally, th cPUc r tly ma dat d

that I v st r ow d Utiliti s i cali r ia all r -bill

a i g r rgy i y impr v m ts. This is, i t,

a v y ar z r i t r st l a pp rtu ity, t b r paid as part

a m thly utility bill.

I 2008, cali r ia pass d AB 811 i t law, whi h all ws

pr p rty w rs t r iv publi a i g r wabl rgy

g rati a d rgy i y pr j ts (th s a i g

pr grams ar g rally k w as PAce pr grams). A t r

t ri g i t tra tual ass ssm ts with publi titi s,

pr p rty w rs r pay b rr w d m y thr ugh i r as d

pr p rty ta s. This l a stru tur all ws pr p rty w rs

t imm diat ly r ap th gai s w t h l gi s whil t

l avi g th m ti d t th pr p rty whil th l a is paid .

Si th laws i pti , s v ral larg s al PAce pr grams,

su h as th S ma c u ty e rgy I d p d Pr gram

(SceIP), hav b gu i th stat . SceIP is urr tly th larg st

PAce pr gram i th U.S., with $100 milli i a i g r

rgy i y, wat r i y, a d r wabl rgy

pr j ts i S ma c u ty. 8 Whil th r ssi has br ught

ab ut th w rst u mpl ym t rat s i r t hist ry, SceIP

has urag d th r ati gr stru ti j bs a d

a 9.4 p r t i r as i stru ti j bs v r a i m thp ri d i 2009. 9 cali r iaFIRST is a th r similar PAce

pr gram urr tly i th stat with $16.5 milli award d r m

th cali r ia e rgy c mmissi u d r th Stat e rgy

Pr gram r stat wid pil t pr grams i mp ti g iti s a d

u ti s. 10 Th s PAce pr grams hav pr v that t ly

a w r du missi s a d sav rgy, but that w a

r at gr j bs a d gr w th my at th sam tim .

H w v r, PAce d s hav a u r s lv d issu surr u di g

rts t r at mu i ipal li s mm r ial a d r sid tial

pr p rti s that w uld trump isti g m rtgag h ld rs. I th

urr t syst m, mu i ipal i t r sts ar s dary t m rtgag

h ld rs, subj ti g ta pay rs t p ssibl risk. R tly, Fa i

Ma a d Fr ddi Ma i di at d that th y may t a pt l a s

r h m s usi g PAce pr grams du t th s r s. Whil

this ly dir tly impa ts r sid tial PAce pr grams, it sta ds

t add u rtai ty t th s pr grams a d imp d th p t tial

ad pti PAce pr grams by th mm r ial s t r. 11

cali r ias rst PAce Pr gram was impl m t d by th city

B rk l y i Ja uary 2009. Si th , th r stat s hav

pass d l gislati all wi g mmu iti s t issu PAce B ds.

nati ally, l gislati was i tr du d i o t b r 2009 that

w uld supp rt th d v l pm t PAce Pr grams by pr vidi g

100 p r t l a guara t s thr ugh th D partm t

e rgy. S parat ly, cali r ia has b award d $1.6 billi

i mp titiv rgy gra ts r m th D partm t e rgy.

This u di g will b us d t supp rt isti g rgy i y

a d r wabl rgy pr grams a d d v l p th stat s smart

grid.12 o th d ral l v l, th U.S. HoMe STAR l gislati is

TRODUCTION

_ 1.1 CAlIFORNIA IS DRIvING NATIONAl POlICY mOmENTUmN EmISSIONS REDUCTIONS AND ENERGY EFFICIENCY. Hist ri ally,

ali r ia has pi r d rgy i y p li y that has

tak up by th r stat s a d v tually th ati .

Si th impl m tati buildi g a d applia i y

ta dards ll wi g th rgy risis th 1970s, th s

ta dards hav ti u d t b rais d, w i tiv s ra t d

d s i us ss rais d r i g s rvati . U d r th

S pi g Pla r cali r ias Gl bal Warmi g S luti s A t (AB

2), th cali r ia Air R s ur s B ard pla s t r du co 2e

y 4.3 milli m tri t s by 2020 thr ugh rgy i y i

mm r ial a d r sid tial buildi gs.3 Furth rm r , with th

impl m tati Pr p rty Ass ss d cl a e rgy ( PAce)4

a i g, th stat is p is d t ti u l adi g th ati i

missi s r du ti s.

Th s i vativ p li i s t ly h lp th stat a hi v its

vir m tal g als, th y als h lp r at w mark ts r

pr du ts that impr v rgy i y. B tw 1995 a d

2008, mpl ym t i busi ss s pr vidi g pr du ts a d

s rvi s i rgy i y pa d d 63 p r t t arly

20,000.5 Th s busi ss s pr vid pr du ts a d s rvi s

su h as rgy s rvati sulti g, m t ri g d vi s,

a d high- i y lighti g a d applia s.

OmmERCIAl BUIlDINGS ACCOUNT FOR NEARlY 40 PERCENT OF U.S. PRImARY ENERGY USAGE, AND ThIS ENERGY

ONSUmPTION IS RESPONSI BlE FOR mORE ThAN 25 PERCENT OF ThE TOTAl CO2 EmISSIONS PROjECTED IN

009 1. ENERGY EFFICIENCY ImPROvEmENTS ARE ThE SINGlE GREATEST OPPORTUNIT Y FOR DECREASING

GREENhOUSE GAS EmISSIONS AND INCREASIN G ENERGY SAvINGS IN ThE UNITED STATES. ACCORDING TO A

007 mCkINSEY & COmPANY REPORT, ENERGY EFFICIENCY CAN PROvIDE NEARlY hAlF OF All NEEDED CARBON

DIOxIDE EmISSIONS REDUCTIONS AND OFFER A NET BENEFIT TO TAxPAYERS AT ThE SAmE TImE 2 .

ISTORICAllY, CAlIFORNIA hAS BEEN AT ThE FOREFRONT OF ENERGY EFFICIENCY POlICY WITh ThE

mPlEmENTATION OF BUIlDING AND APPlIANCE EFFICIENCY STANDARDS FOllOWING ThE ENERGY CRISIS OF

hE 1970S. AS FEDERAl POlICY SlOWlY mOvES FORWARD, CAlIFORNIAS ACTIONS WIll PROvIDE ThE NEEDED

DIRECTION FOR ImPlEmENTING SUCCESSFUl EmISSIONS REDUCTIONS AND ENERGY SAvINGS PROGRAmS.

hIS WhITE PAPER ExPlORES ThE CONTRIBUTION OF COmmERCIAl BUIlDINGS TO GREENhOUSE GAS

mISSIONS AND WhAT CAN BE DONE TO ImPROvE Th E ENERGY EFFICIENCY OF ThESE BUIlDINGS. WE

xAmINE SOmE OF ThE FUNDING AND SUPPORT AvAIlABlE TO CAlIFORNIA BUSINESSES FOR ENERGY

AUDITS, RETROFITS, INSUlATION, lIGhTING, NEW mATERIAlS, SmART mETERING, AND OThER EFFICIENCY

mPROvEmENTS. WE DESCRIBE ThE BARRIERS PREvENTING mORE WIDESPREAD ADOPTION OF BUIlDING

FFICIENCIES SUCh AS TENANT AND lANDlORD RElATIONShIPS AND NET mETERING. AND FINAllY, WE

DESCRIBE ExAmPlES ThAT ShOW hOW SmAll ACTIONS CAN ADD UP TO mAjOR SAvINGS.


5/13

h larg st s al rgy i y pr gram b r c gr ss,

with bills i tr du d i th S at a d pass d i th H us .

This l gislati w uld pr vid $6 billi d llars u di g r

bat s th pur has rgy i t applia s r us

r sid tial buildi gs. 13

_ 1.2 ENERGY EFFICIENCY ImPROvEmENTS IN COmmERCIAlUIlDINGS REPRESENT AN ImPORTANT PATh TO SAvING ENERGY,

UTTING COSTS AND REDUCING GREENhOUSE GAS EmISSIONS. mm r ial buildi gs a u t r arly 40 p r t

U.S. primary rgy usag , a d this rgy sumpti

s r sp sibl r m r tha 25 p r t th t tal co2

missi s pr j t d i 2009. 14 A rdi g t th U.S.

D partm t e rgy, Buildi g i y r pr s ts

th asi st, m st imm diat a d m st st tiv ways

r du arb missi s whil r ati g w j bs. With th

ppli ati w a d isti g t h l gi s, buildi gs a

mad up t 80 p r t m r i t r v b m

t z r rgy buildi gs with th i rp rati -sit

wabl g rati . 15

Maki g i y impr v m ts t isti g a d w

uildi gs a r du l tri ity sumpti a d abl

m r tiv h ati g a d li g thr ugh ut th buildi gs

i tim a d upa y. 16

urr tly, ma y w buildi gs mmissi d d t m t basi

i y r quir m ts, v th ugh th i v stm t r quir d

pr vid larg -s al rgy pr visi a d arb r du ti

hr ugh buildi g i y is a ra ti th i v stm t

quir d r w l tri ity g rati . 17

With a mi imal tw p r t i r as i stru ti sts,

w buildi gs a b d sig d t us -third t -hal

ss rgy tha th y us t day. 18 Whil w mm r ial

stru ti rs gr at pp rtu iti s t impr v av rag

i y, ly thr p r t all buildi gs ar wly

stru t d r r vat d a h y ar i th U.S. 19

As a r sult, usi g w stru ti al is i su i t

t a hi v th p t tial i y gai s i th mm r ial

buildi g s t r. cali r ia s a r aliz m r th u tapp d

i y p t tial i isti g mm r ial buildi gs by

i v sti g i l w- st, high-r tur t h l gi s su h as m r

i t lighti g, i sulati a d wi d ws. Th ugh th up r t

i v stm t is high, a h th s buildi g upgrad s will

a ru substa tial savi gs v r tim , qui kly surpassi g th

i itial p s a d thus r ati g st- gativ i v stm ts.20

A rdi g t th Buildi g ow rs a d Ma ag rs Ass iati

I t r ati al (BoMA I t r ati al), simpl rgy i y

impr v m ts su h as i sulati g wi d w lms av rag

yi ld thr d llars i savi gs r v ry d llar i v st d. 21 M r

g rally, th av rag a ual r tur i v stm t r rgy

i y r tr ts is v r 20 p r t wh upl d with

savi gs guara t s thr ugh p r rma tra ti g. 22

D v l p d by M Ki s y & c mpa y, chart 1 illustrat s a wid

ra g p ssibl a ti s r r du i g GHG missi s a d th

margi al st a d abat m t p t tial ass iat d with a h.

Th width a h bar r pr s ts th abat m t p t tial

(co2 p r y ar) stimat d r th y ar 2030. e ampl s

high-p t tial pti s i lud a r stati pastur la d,

a d lighti g i r sid tial buildi gs. Th h ight (v rti al a is)

displays th av rag st av idi g t co2 , a d

th gr bars all hav a abat m t st b l w $50 p r

t co2 . Th pti s th l t sid th urv b l w

z r i di at a t b t. Th l w- st a ti s th l t

sid i lud i y impr v m ts primarily t l tr i s,

lighti g a d buildi gs. Th s a ti s uld pr du a p sitiv

r tur i v stm t du t savi gs i rgy sts. Th bars

i r asi g t ward th right d pi t pr gr ssiv ly high r st

abat m t m asur s.

G:H>9:CI>6A7J>A9>CEB:CI

:;;>8>:C8N

8 D B B :G 8>6A:A :8 IG D C >8H

G:H>9:CI>6A7J>A9>CCA9>CC:9 =:6I6C 9 E D L :G

;J :A:8DCDBNE68@69:CI>6A7J>A9>CIH

C J8A :6GC:L"7J>A9

6 8I>K :;DG:HIB6C6HIG>7JI:9H D A 6 G E K

6;DG:HI6I>DCD ; 8 G D E A 6C 9

8D B B :G 8 >6 A7J>A9>CEB:CI

:;;>8>:C8N

H D A 6G8HE

E D I : C I > 6 A< > < 6 I D C HE : G N : 6 G

8 6 G=N7G>9>O6I>DC

8 D B B :G 8>6A7J>A9>CCCI:CH>K:E G D 8 :H H :H

8 D 6 A E D L :G E A 6C IH 88H G:7J>A9H

8D6A"ID";I"9>HE6I8= D;:M>H I>C < E A 6 C IH

8 D B B :G 8>6A:A:8IGDC>8H

%%

(%

"(%

"+%

".%

"&'%

"'(%

+%

.%

%#' %#) %#+ %#- % '

+ - '#% '#' '#) '#+ '#- (#% (#'

)

3 * %$ I DC 3 *%$ ID C

C:I 7:C:;>I

8 D B B :G 8>6A7J>A9>CBEGDK:B:CIH

>C9JHIG>6AE G D 8 :H H>BEGDK:B:CIH

8D6A B>C>CA9>CA9H

L>I= :DG

G :H >9 :C I>6A7J>A9>CBEGDK:B:CIH

8D B B :G 8>6 A7J>A9>CCC9ADL E:C:IG6I>DC

8:A A JA D H >87>D;J:AH

:M>HI>C< EDL:GE A 6 C I 8D C K :G H >D C:;;>8>:C8N>BEGDK:B:CIH

B6CJ;68IJG>CDC

C O S T : R E A l 2 0 0 5 D O l l A R S P E R T O N C O 2 e

U.S. mID-RANGE ABATEmENT CURvE

ABATEmENT COST

Source: Reducing U.S. Greenhouse Gas Emissions: How Much at What Cost?,Executive Report, McKinsey & Company, December 2007


6/13

Pr gr ss i raisi g i i s is pat hy a r ss th div rs mi

mm r ial buildi gs. Targ ti g k y ar as sumpti

d impl m ti g w i tiv stru tur s ar yi ldi g s m

u ss. Fiv tr ds i mm r ial l tri ity sumpti ar

r s t d b l w.

_ 2.1 TREND 1: COmmERCIAl ElECTRICITY CONSUmPTIONAS GROWN OvER TImE, BUT EFFICIENCY hAS BEEN RElATIvElY

TABlE. cali r ias isti g mm r ial spa a u tsr m r tha 100,000 gigawatt h urs (GWh) l tri ity

sumpti , ab ut 37 p r t t tal stat wid l tri ity

sumpti i 2008. Th s buildi gs v r a ra g typ s

r m r staura ts a d d st r s t s h ls a d ll g s t

rig rat d a d -r rig rat d war h us s. Fl r spa i

h mm r ial s t r t tals ab ut 6,788 milli squar t.

mm r ial s t r d-us s i lud i d r lighti g, h ati g,

li g, v tilati , ki g, r rig rati a d quipm t.

Du t i r as s i rgy i y, cali r ias mm r ial

l tri ity sumpti r s i t tal sumpti whil

d li i g slightly i p r squar t sumpti . 23 T tal

mm r ial l tri ity sumpti ti u d t i r as i

008 (+1.5 p r t), ll wi g st ady gr wth v r th 17-

y ar p ri d r m 1990 thr ugh 2007. c mm r ial l tri ity

i y impr v d duri g th 2007-08 p ri d as p r squar

t sumpti d li d by -0.2 p r t. Th cali r ia

rgy c mmissi (cec) attribut s th dr p i t tal

sumpti t th sl wd w i th my. As a r sult,

h cec is r visi g its sumpti pr j ti s d w ward i

h 2009 p ri d a d assum s that i y pr grams will

margi ally r du l tri ity sumpti v r this p ri d. 24

_ 2.2 TREND 2: COmmERCIAl BUIlDING ElECTRICITYCONSUmPTION PER SqUARE FOOT IS ImPROvING OvER TImE WITh A

FEW NOTICEABlE ExCEPTIONS. I dustri s sum l tri ity at

di r t rat s. R staura ts, d st r s a d h spitals hav th

gr at st i t sity l tri ity sumpti p r squar t

a tual f r spa . R tail spa , s h ls a d war h us s hav

th l w st rat s l tri ity sumpti p r squar t.

ov r tim , r m th rst p ri d (1990-1995) t th lat st

(2002-2007) rgy i y impr v d i all but tw typ s

spa . H spitals a d ll g s b am l ss i t as th

rat rgy sumpti utpa d i r as s i f r spa .

e i y i s h ls a d war h us s r mai d ab ut th

sam v r this p ri d.

Buildi g upa ts a b big rgy sum rs a d

tribut substa tially t a buildi gs v rall rgy us . Th

rgy i t sity r staura ts a d d st r s d riv s r m

th us sp ializ d quipm t su h as mm r ial v s

a d i dustrial r rig rati u its. ov r th y ars, th i r asi g

us w t h l gy i h spitals, su h as MRI, x-ray a d

th r ma hi s, has r sult d i high r d ma ds r p w r.

_ 2.3 TREND 3: lIGhTING AND hEATING, vENTIlATION ANDCOOlING SYSTEmS REPRESENT ThE mAjORITY OF ElECTRICITY

CONSUmPTION IN COmmERCIAl BUIlDINGS. e d-us s su h

as i d r lighti g, mbi d h ati g, v tilati a d li g

(HVAc), a d r rig rati a u t r th high st rat s l tri ity sumpti p r squar t. Si th 1990-

1995 p ri d, th i y i d r lighti g p r squar

t impr v d by 17 p r t, r rig rati by ight p r t,

a d li g i y impr v d by tw p r t. D spit

i r m tal i y impr v m ts t w quipm t

(whi h v tually r pla s th ld), aggr gat i y

impr v m ts w r m asur d i h ati g, ki g,

quipm t a d wat r h ati g at th stat l v l.

%

'%!%%%

)%!%%%

+%!%%%

-%!%%%

&%%!%%% &*

&'

.

+

(

%

&. .% &..' &..) &..+ &..- ' %%% '%%' '%%) ' %%+ ' %%-

ENDS IN COmmERCIAlECTRICITY CONSUmPTION

*!%%% &%!%%% &*!%%% ' %!%%%%

G:HI6JG6CIH

;DD9 HIDG:H

=DHE>I6AH

A6G8:H

G:;G>H 8 :A A 6C :D JH

H B 6A A D ;;>8 :H

8D A A :< :H

=DI:AH$BDI:AH

G:I6>A

H 8=D D A H

L6G:=DJH:H

' %%' ' %%,&. . + ' %%&&. . % &. . *

COmmERCIAl OFFICE BUIlDING ElECTRICITY CONSUmPTION BY INDUSTRYAvERAGE ANNUAl ElECTRICITY CONSUmPTION PER SqUARE FOOT OF FlOOR SPACE / CAlIFORNIA

COmmERCIAl ElECTRICITY CONSUmPTION AND EFFICIENCYTOTAl CONSUmPTION AND CONSUmPTION PER mIllION mETRIC SqUARE FOOT / CAlIFORNIA

Data Source: California Energy CommissionAnalysis: Collaborative Economics

Data Source: California Energy CommissionAnalysis: Collaborative Economics

REFRIG. WAREhOUSE 52

RESTAURANT 173

GROCERY 282

hOTEl 308

hOSPITAl 316

COllEGE 317

SmAll OFFICE 365

SChOOl 520

WAREhOUSE 942

RETAIl 1064

mISC 1150

lARGE OFFICE 1187

TOTAl +15%

PER SqUARE FOOT -0.2%

2007 FlOORSPACE STOCk(mm Sq. FT.)

COmmERCIAl ElECTRICITYCONSUmPTION PERCENT ChANGE

2006-2007

T O T A l C O m

m E R C I A l E l E C T R I C I T Y C O N S U m P T I O N ( G W )

C O m m E R C I A l E l E C T R I C I T Y E F F I C I E N C Y

( G W P E R m I l l I O N m E T R I C S q U A R E F O O T )


7/13

1

_ 2.4 TREND 4: ENERGY STAR APPlIANCES hAvE GAINEDSIGNIFICANT mARkET ShARE IN CAlIFORNIA OvER ThE lAST

DECADE. Th mark t shar e rgy Star applia s i

cali r ia gr w sist tly u til 2007. H w v r, as a r sult

a upward r visi t th mi imum e rgy Star i y

rit ria tiv Ja uary 1, 2007, th mark t shar

dishwash rs d li d by arly 44 p r t i 2007. Th

d li s i th hart is a t ypi al mark t r sp s ll wig

th i tr du ti w, m r stri g t e rgy Star i ysta dardsas w r pr du ts th mark t will a tually m t

th w, m r dis rimi ati g sta dard. M r stri g t e rgy

Star rit ria w r als appli abl t r rig rat rs a d l th s

wash rs; as a r sult, th mark t sal s th s it ms d li d

by thr p r t a d si p r t, r sp tiv ly.

Th e rgy Star pr gram is a ati wid , v lu tary sta dards

a d lab li g pr gram pr vidi g k y sum r i rmati

th rgy i y m r tha 60 pr du ts. Th pr gram

is j i tly ru by th U.S. D partm t e rgy (Doe) a d th

U.S. e vir m tal Pr t ti Ag y (ePA).

_ 2.5 TREND 5: A SmAll, BUT GROWING, PERCENTAGE OFCAlIFORNIA COmmERCIAl ElECTRICITY CUSTOmERS SEll POWER

BACk TO ThE GRID. n t m t ri g pr grams all w ust m rs t

us s l -g rati t h l gi s ( .g. s lar pa ls) t g rat

l tri ity a d s ll ss p w r ba k t th l tri al grid

t s t sumpti . With 1,145 mm r ial t m t ri g

ust m rs p r milli , cali r ia ra ks rst am g th 50

stat s a d D.c. i th trati mm r ial t-

m t ri g ust m rs. M ta a ll ws s d with 1,069 t

m t ri g ust m rs p r milli . cali r ia had a t tal 2,068

mm r ial t m t ri g ust m rs i 2007 up r m 1,680 i

th pri r y ar a d 134 mm r ial ust m rs i 2002, th rst

y ar data was availabl .

Th p r tag mm r ial ust m rs usi g t m t ri g

is a ti y but gr wi g ra ti all mm r ial ust m rs i

cali r ia. I 2007, a m r 0.11 p r t (ab ut -t th

p r t) mm r ial ust m rs us d t m t ri g;

this r pr s ts a m r tha 12- ld i r as i th shar mm r ial t m t ri g ust m rs i 2002, whi h was

0.01 p r t.

Th d w sid t m t ri g is that it d s t dir tly a t

th rgy usag i y th busi ss. Th big b t

t m t ri g pr grams is that th y abl r du d gr h us

gas (GHG) missi s thr ugh tw primary ha ls: 1) l al

g rati ( .g. a r t p s lar g rat r) impr v s v rall

rgy distributi i y by r du i g th rgy l ss s

du t tra smissi a d distributi (ab ut s v p r t

av rag ), a d 2) th y r du th buildi gs w d ma d r

utility-g rat d rgy.

L 6 I : G

= : 6 I >

C 8

: : F J

> E B : C

I

8 D D @

> C

C C A

6 I > D C

8 D D A

> C

H 8 #

> C 9 D D

G A > < =

I > C

Documents

Untapped Potential of Commercial Buildings