Better Buildings: An updateMay 2014

Today

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• Better Buildings – goals and scope

• Results from 2013; information you can use

• Announcements, updates, future plans

• How to get involved

Cost effective opportunities for energy efficiency

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Great opportunities in the residential, commercial and industrial sectors

20% + savings is average

Other benefits:

Jobs, Environment,

CompetitivenessU.S. spends $600 billion each year to power homes, plants, and buildings

But persistent barriers exist……

Energy efficiency not included as corporate decision making; not integrated into business planning

Lack of senior management buy-in

Lack of information; need for unbiased information

High hurdle rates

No ability to engage in ESCO financing (and for public sector: engaging in ESCO financing with low interest bonds)

Tenant/employee behaviors at odds with efficiency goals

Split incentives

Not enough/qualified workforce

Better Buildings Goals and Strategies

Goals Make commercial, industrial buildings & multifamily housing 20%+ more

efficient over 10 years

Save more than $80B+ annually for US organizations

Create American jobs, improve our energy security, and

mitigate impacts of climate changeHow

LeadershipResults

TransparencyBest Practice Models

RecognitionCatalyzing Action

Better Buildings Initiative

Developing Innovative, Replicable Solutions with Market Leaders Better Buildings Challenge

Better Buildings Alliance

Better Buildings, Better Plants

Better Buildings Case Competition

Better Buildings Residential Better Buildings Accelerators

Developing a Skilled Clean Energy Workforce

Workforce Guidelines

Pilot program with NIST: Training and education programs on Buildings Retuning

Making Energy Efficiency Investment Easier through Better InformationAsset ScorecardBuildings Performance Database Green ButtonData Access MapMOU with the Appraisal FoundationBetter Buildings Accelerator

Improving Effectiveness of Federal Incentives179d eligibility and toolQECBs

Federal Leadership by Example$4 billion to improve energy performance of federal buildings

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Broad strategies to overcome persistent barriers

Milestones

President Obama announces Better Buildings Initiative in early 2011

Better Buildings Challenge launched by Presidents Obama & Clinton in Dec. 2011

Climate Action Plan released; expands BBC to include multifamily and outlines strategic areas for acceleration in June 2013:

Energy Data

Performance Contracting

Industrial Superior Energy Performance

Better Buildings Summit recognizing progress to date and leadership, May 2014

Better Buildings Summit

May 7-9

550 Attendees, 80+ working sessions

Commercial, industrial, municipal & multifamily leaders; public and private sectors

Working sessions on:

Emerging, high impact technologies

Innovative Solutions (i.e. energy data access, real time energy management, co-benefits, tying efficiency to compensation, financial solutions)

New financial tools and offerings; emerging trends

Industrial opportunities and strategies

Energy data, SEP and ESPC Accelerators

Secretary of Energy, Ernest Moniz gives keynote address at

Summit

Better Buildings Challenge: Progress to date

190+ partners and allies

3.3+ billion square feet, 600 manufacturing plants

70+ showcase projects; 40+ implementation models

2.5% average annual improvement in energy intensity

$300 million in savings since Better Buildings Challenge launched

8 goal achievers

Click to edit Master title styleBetter Buildings Challenge Partners and Allies

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Partners represent diverse sectors

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Click to edit Master title stylePlaybooks and Showcase Projects

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70+ showcase projects• Large and small buildings• All sectors• Specific building types such as schools,

hospitals, hotels, grocery stores, universities, civic centers, libraries, offices and labs

40+ implementation models (playbooks)• Overcome barriers: finance, data, energy

management, staff training, community and customer outreach, and more

• Multi-faceted and applicable across sectors

Click to edit Master title style FINANCE• Facilities Infrastructure Pool• Update Internal Purchasing Systems To Facilitate A

Portfolio-Wide Energy Upgrade With Maintenance Funds

• Energy Finance Strategy• Building Upgrade Value Calculator• On-Balance Sheet, Off-Debt Capacity Performance

Contracting• Internal Green Revolving Fund• Capital Set Aside Fund• Green Initiatives Trust Fund• Utility Savings Initiative• ESA in BAE Facilities Nationwide• Commercial PACE Financing at Pier 1• On-Bill Financing

DATA/ENERGY MANAGEMENT• Energy Looking Glass Dashboard• Real-Time Energy Monitoring And Weekly Engagement

With Field Staff• Accessing Tenant Utility Data in Triple-Net Leased

Buildings• Data Update and Certification Scorecard• Centralized Energy Management And Capital Set-Aside

Fund• Submetering Initiative and Energy Dashboards• Uniform Methodology To Measure Energy Efficiency

Improvement• Inventory and Tracking Process• Designing A Comprehensive Energy Plan• Mass Benchmarking• Energy Benchmarking Program

Partner Playbooks EMPLOYEE /CUSTOMER ENGAGEMENT

• Engaging Clinicians To Reduce Resource Use In Operating Rooms

• Chasing Quarters With Energy Set-Points• Innovation Hotel• Student Fellowships To Kickstart In-House Energy Programs• Eco-Treasure Hunts at Fulfillment Centers• Leveraging Green Leases To Reduce Energy And Water

Use• Wyndham Vacation Ownership Green Certification Program• Leverage Student-Faculty Research• Linking Energy Efficiency to Performance-based

Compensation• Energy Champion Program• Operations Management Leadership Program• Energy Champions at All Plants• Rethink Energy• Public-Private Partnership• Community Engagement• Employee Behavioral Change• Community Outreach• County V. County Energy Challenge• Public-Private Partnership• Energy Leader Partnership

OVERCOMING ORGANIZATIONAL HURDLES• Enterprise-wide Coordination• Good, Better…BEST Standards of Sustainability• Developing an Integrated “Smart Lab” Program• Integrated Model For Long Term Campus Energy Planning• Creating a Culture of Energy Efficiency• Streamlined Tri-resource Efficiency Programs

Lessons from Better Buildings Challenge partners

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1. Know the goal.Organizations that have set portfolio-wide goals and have met them, or are well on their way, include University of California, Irvine, Legrand, Cummins, and Best Buy.

2. Data matters.If you can’t measure it, you can’t manage it. Macy’s, TIAA CREF, Schneider Electric, the City of Columbia, Missouri, the State of Delaware and the City of Beaverton, Oregon.

3. Look beyond technology.Successful projects combine technology advances with organizational changes and commitment. 3M, the City of Arlington, Virginia, Delaware State University, the states of North Carolina and Minnesota, the Commonwealth of Massachusetts, Kohl’s and Alcoa.

4. It takes an (energy) champion – and a team.Saint-Gobain, the City of Hillsboro, Oregon, the State of Maryland, Cleveland Clinic, the City of El Paso, Texas and Cummins are just a few of the organizations with a successful champion. Staples and New York Presbyterian Hospital are great demonstrations of why people power matters.

5. Learn, teach and evolve.Successful businesses and organizations are constantly evolving to succeed and meet their customers’ needs. These leaders also recognize that how they use their buildings must evolve too. They seek out best practices from others and share their learnings with peers. City of Atlanta, Georgia and the City of Gillette, Wyoming implemented just such programs, as did Partners such as Legrand, Ford and HEI Hotels & Resorts.

Click to edit Master title styleBetter Buildings Challenge highlighted

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So that’s why, three years ago, I announced what we called the Better Buildings Initiative.  It's an ambitious plan to improve the energy efficiency of America’s commercial buildings by 20 percent by the year 2020.  And already we've got 190 businesses and organizations that have signed on.  On average, they’re on track to meet their goal -- cutting energy use by 2.5 percent every single year.  Together, they’ve already saved $300 million in energy costs.  So we know it works.

- President Barack Obama

President Obama at a Walmart Speaks on American Energy in Mountain View, California

on May 9

More than 30 New Partners and Allies

• Low Income Investment Fund • City of Margate, FL • MGM Resorts International • Minneapolis Public Housing

Authority • New Bedford Housing Authority • Penn State University• Rockford Housing Authority • City of San Diego, CA • Towson University• Triple Bottom Line• University of Virginia• UTC • Walmart • Whole Foods Market • VLV • Volvo • Wishrock Investment Group 

• Anne Arundel County Public Schools • Balfour Beatty Communities• California Housing Partnership

Corporation • Capitol Hill Housing • Clean Energy Finance and Investment

Authority• Commonwealth Partners • Cuyahoga Metropolitan Housing Authority• Eastman Chemical • Enterprise Community Partners, Inc.• General Mills • General Motors• Hannon Armstrong • HARBEC • Hilton Worldwide • Jonathan Rose Companies• Local Initiatives Support Corporation

Expanding Better Buildings

Partners in the new Water Savings Pilot • Aeon• CampusCrest Communities• City of Atlanta• Cummins• Eden Housing• Ford Motor Company• City of Fort Worth• General Motors• HARBEC• Kohl's Department Stores• NHT/Enterprise Preservation Corporation

And 5 charter cities have joined the High Performance Outdoor Lighting Accelerator• City of Detroit, Michigan• City of Kansas City, Missouri• City of West Palm Beach, Florida• City of Little Rock, Arkansas• City of Huntington Beach, California

• Nissan North America• Poudre School District, CO• Saint Gobain• Staples• TIAA-CREF• Tonti Properties• Transwestern• Trinity Management• City of West Palm Beach

Next?

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• Work with partners to accelerate change in key areas/sectors/issues

• Upcoming efforts: • Data centers• High performance outdoor lighting• Expanding work with cities • Water and wastewater• Other?

• Stay informed via webinars, bi-monthly Bulletin, BBC website, Twitter

• Join!!

Thank you!!

Maria T. Vargasmaria.vargas@ee.doe.gov

Next Webinar: June 5, 2014Summit presentations are available here