benchmarking lessons learned - naahq.org
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#NAAGreenConf
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Benchmarking Lessons Learned from Service and Product Providers
Alena Hutchison, US EPA ENERGY STARJames Hannah, BrightPower
Shveta Oak, NWPMatthew Rubenstein, US Energy Group
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Alena Hutchison, US EPA
James Hannah
Shveta Oak
Matthew Rubenstein
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Overview of Industry Trends and Background
Alena Hutchison
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What is benchmarking?
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A Few Ways toBenchmark Performance
• National averages for your building type• Similar buildings in your portfolio• Comparison of past performance• The Federal Guiding Principles for High Performance
Sustainable Buildings
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Utility Costs in Multifamily Housing
Utilities account for 20-25%*of all operating expenses
Utilities represent the single largest controllable expense; $1.60/sf * GPR**
Decreasing energy use can increasenet operating income and asset value
2011 National Apartment Association Survey of Income & Expenses in Rental Apartment Communities
* Master metered** Gross potential rent
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State and Local Energy Benchmarking Policies on the Rise
• State and local energy benchmarking and disclosure policies on the rise
• All of the jurisdictions with these policies have specified the use of Portfolio Manager
• Purpose of these laws:– Increase transparency of building performance data for a better
informed market (energy and water)– Incentivize improvements in public and private building energy
efficiency– Grow clean energy job market
• Opportunity – Ensure your buildings are top performers, or at least improving, prior to public disclosure
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Voluntary & Mandatory Building Performance Disclosure
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Benchmarking Continues to Grow
• By end of 2012:– More than 300,000
properties have been benchmarked in Portfolio Manager
– 20,000 multifamily properties have been benchmarked, representing 3 billion square feet of multifamily space
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Portfolio Manager
• Free, online benchmarking tool• The industry standard in commercial real estate• Track changes in energy, water, GHG emissions over
time within a single building or entire portfolio• Understood and used by many owners, management
companies, local governments, potential buyers and lenders
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Portfolio Manager
• Basic data inputs– Address– Space - gross floor area– 12 months consecutive energy and water data
• Set baseline & assess portfolio-wide performance• Identify under-performing buildings• Track progress toward goals• Verify and document results
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Identify High Value Energy Efficiency Projects
Prioritize portfolio-wide upgrades and improvements
InvestAdjust Maintain
Adjust InvestL
eve
l of
Foc
us
Energy Use Intensity
High EUI Average EUI Low EUI
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Performance Metrics Available for Multifamily Housing Properties
• Energy Metrics (Site and Source)– Total Energy Use (kBtu)– Energy Use Intensity (kBtu/Sq. Ft.)– Weather Normalized Energy Intensity
(kBtu/Sq. Ft.)
• Comparisons to Baseline– Change from Baseline: Total Energy Use
(kBtu)– Change from Baseline: Energy Use Intensity
(kBtu/Sq. Ft.)– Change from Baseline: Adjusted Energy Use
(%)
• GHG Emissions (Direct and Indirect)– Baseline and Current GHG Emissions
(MtCO2e)– Change from Baseline: GHG Emissions
(MtCO2e)
• Financial Indicators– Annual Energy Cost– Total Energy Cost per Sq. Ft.– Cumulative Investment in Facility Upgrades – Cumulative Investment per Sq. Ft.
• Renewable Energy– Total On-Site Electric Generation (kWh)– Percent of Electricity from On-Site Renewable
(%)– Total Renewable Energy Certificates
Purchased and Sold– Total Avoided Greenhouse Gas Emissions
from RECs (MtCO2e)
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1-100 ENERGY STAR Energy Performance Rating System Development Update
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Score Development Update
What is it? • 1-to-100 scale identifies how a building is performing
relative to similar buildings nationwide• Scoring models derived from a statistically
representative sample of the national building population• Accounts for climate and operational characteristics
specific to each building type – size, number of employees, weekly operating hours
• Score based on actual billed energy consumption, not estimates or simulations
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How Does a Survey Lead to an Energy Performance Score?
Nationally Representative
Survey
• Obtain nationally representative, randomly selected data*
• Collect whole building, billed energy data
• Collect building operational and physical characteristics
1 25 50 75 100
Data Collection
Data Analysis
Benchmark Analysis
• Determine characteristics that are correlated with energy use
• Develop energy performance model that predicts building energy usage
• Compare buildings to their “peers” to develop 1-100 point scale
• Continuously assess effectiveness of the model
*Sources of this data include CBECS, RECS, industry/association surveys, but NOT Portfolio Manager
# of units
Square feet
% heated
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• Recognition for superior energy performers – score 75 or above – provided the they meets industry standards for indoor environmental quality
501 75
National Average
Superior Energy Management!
1 to 100 Energy Performance Scale
Earn ENERGY STAR certification
100
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EPA and Fannie Mae Partnership
• Signed MOU in March 2011• Partnership Goals:
– Improve the energy and water efficiency of the nation’s multifamily housing stock
– Explore the development of a 1-100 ENERGY STAR score and certification for existing multifamily properties using actual measured whole building data
– Provide an energy performance scoring tool for entire multifamily industry
– Evaluate use in underwriting and asset management of multifamily loans
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Timeline
• Fannie Mae delivered data set to EPA in January– Received 875 total responses (survey responses and
contributing organizations)• 343 whole property energy use• 460 complete water use
• Fannie Mae to release industry report on trends and observations end of Q1
• EPA to analyze data and hold status webinar in June– Share preliminary findings and ask questions
• Finalize score and release it in Portfolio Manager end of 2013 / early 2014
• Begin water analysis Fall 2013
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Sneak Peak at Initial Observations*
• Newer buildings use more energy than older buildings– Consistent with NYC’s findings and EPA’s benchmarking
findings
• High rise buildings tend to use slightly more energy– Consistent with NAA data
• No clear relationship between affordable housing subsidies and energy use
• Median source EUI is 130 kBtu/sf– Similar to 132 kBtu/sf in NYC study
www.fanniemaegreeninitiative.com/
*Subject to change based on additional data analysis.
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Service and Product Provider Perspectives
James Hannah, Shveta Oak, Matthew Rubenstein
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Using Benchmarking to Navigate the Energy Efficiency Process
James HannahBright Power, Inc.
Business Development Associate4/16/13
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Question 1: How am I doing?
– Are my buildings wasting energy and money?
– How do I know?
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Compare performance to similar buildings.
A=best 25% D=worst 25%
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See your portfolio in context.
A=best 25% D=worst 25%
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Metering is important. Who pays for utilities?
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Climate and regional groupings are also important.
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Regional groupings appear to impact energy use more than climate zone.
48 kBTU/sf
79 kBTU/sf51
kBTU/sf
42 kBTU/sf
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Question 2: What should I do?
– Which buildings should get retrofits?
– Which systems need improvement?
– Can I trust savings projections?
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Find properties to audit or retrofit.
Inefficient building + high overall spending = good savings potential
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Window A/C
Old Central Gas Boiler Steam Heating
Inefficient Lighting
Old Central Gas Water Heating
Find inefficient systems.
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Annual Cost Savings Life Cycle Savings Annual Utility SavingsMeasure
Description Measure
CostsOwner
SavingsSimple
PaybackAnnual Savings
Life Cycle Savings S.I.R Useful
Life Electric Natural Gas
($) ($) (yrs) (%) ($) (yrs) (kWh) (therms)
Replace thermostats and adjust settings $1,800 $678 2.7 2.0% $3,986 3.2 10 854 610
Upgrade lighting throughout building $15,202 $2,237 6.8 6.5% $23,752 2.6 25 38,637 -854
Install low flow faucet accessories in all spaces $360 $605 0.6 1.8% $4,801 14.3 10 605
Evaluate audit savings projections.Grade Index Annual Spending
$2,158
$5,688
$15,145
$1,500
$2,200/$15,000 ~ 15% savings on baseloadelectricity. Reasonable savings estimate for building.
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Question 3: Did it work?
– Am I saving energy and money?
– How much am I saving?
– Have I met savings projections?
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Projected vs. Actual Savings
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After RetrofitBefore Retrofit
The space between the lines is the savings!
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Thank You!
James Hannah(212) 803 5868 x2106
www.brightpower.comwww.energyscorecards.com
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Shveta OakNWP Services Corporation
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Benchmarking Challenges - Multifamily Housing
Defining the Benchmarking Approach• Internal • Competitive • FunctionalDefining “Meaningful” Benchmark Groupings • Defining Benchmark Area • Defining “Apples to Apples” Features• Defining Benchmark ResultsGathering, Organizing and Analyzing Data• Availability, Quality, Statistical Relevance• Data Volume• Inconsistencies from Utilities• Unknown Property and Meter Attributes/LabelsPrioritizing Results and Determining ROI
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Solutions to Overcome Challenges
Property Level Information:• Proactive Data Gathering
Data Gathering• Internal Entry• Utility Providers• Solutions Available Through Utility Management Companies
Storing and Organizing Information• Data Warehouse Options for Storing and Organizing Cost, Consumption,
Location, and Attribute Data for Internal and Competitor InformationTools for Analyzing Data Collected
• Internal Spreadsheets• ESPM• Solutions Available Through Utility Management Companies
Value from Results• Specialists in Rates and Retrofits with an ROI orientation• Split Incentive Leases
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NWP Offers Solutions to Assist In Benchmarking
Utility Smart
Utility Pay Manager • Bill Processing • Data Capture• Data Cleansing • Data Warehousing
BIBA (Business Intelligence and Benchmarking Analytics)• Reporting and Analytics for Actionable Direction• Anonymous Competitive Information• Internal, Competitive and Functional Benchmarking
ESPM Integration• Upload of Historical Data -Consumption Trending and Benchmarking
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Matthew RubensteinUS Energy Group
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Roundtable Topics
• Potential next steps• Barriers and solutions to access aggregate data for
whole-building benchmarking• Lessons learned – pitfalls and things the audience
should avoid• What steps should the audience take immediately if they
aren’t already benchmarking, to enhance their benchmarking programs
• Crystal ball – what’s coming?
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Questions and Answers
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Alena [email protected]
James [email protected]
Mathew [email protected]
Shveta [email protected]
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Thank you
For Sponsoring this Session!