What is your Energy Level?

Residential and Commercial Energy

Ratings

Garbett Homes of Salt Lake City, Utah

Photograph by: Orlo Stitt
Sandra K. Adomatis, SRA, LEED GA

Adomatis@hotmail.com
Adomatis Appraisal Service
Punta Gorda, Florida
Consultant with Advanced Energy, Raleigh North Carolina
http://www.advancedenergy.org/
 Objectives
• Review the reasons the market’s view of
energy is changing
• Describe the physical traits of energy
efficiency
• Identify Energy Modeling Programs
• List documents supporting energy rating
 Energy Efficiency

Energy efficiency is “using less energy to

provide the same service”.

Turning off a light is energy conservation, not

energy efficiency.
http://eetd.lbl.gov/ee/ee-1.html
 Let me hear your
building talk!
Remember …..
“Let’s Get Physical!”
Olivia Newton John
How important is energy efficiency to
the residential user?
NAHB consumer survey found 51.8% of
residential consumers found the term
energy efficiency as positive.

NAHB Research Center

400 Prince George’s Blvd
Upper Marlboro, MD 20774
800.638.8556
www.nahbrc.org
 Why is energy efficiency such a big
deal?
• Government Mandates
• TAJ –First Draft Exposure
Valuation of Green Bldgs

• Oil Crisis

• Market Transformation
The term market transformation is the strategic
process of intervening in a market to create
lasting change in market behavior by removing
identified barriers or exploiting opportunities to
accelerate the adoption of all cost-effective
energy efficiency as a matter of standard
practice.
http://www.aceee.org/portal/market-transformation
http://www.imt.org/resources/detail/save-act-fact-s
heet
 Benefits of energy efficiency
• Reduce expenses

• CoStar Group – July 28, 2010, reports

energy-efficient retrofits of commercial
buildings has the potential to return twice as
much in savings to owners and tenants as
they require in investments.
 Commercial

• A much easier sell – because

– The investor cares about the bottom line......
• Lender accepts income approach as the norm….
– Lower utilities = higher net income
Case Study on 250,000-square-foot office building

Energy Star Portfolio Manager Estimated $2,000

Cost

Full-blown energy assessment estimated $5,000 to $10,000

cost

5-Year costs for ES Portfolio Model and 1 $10,000 to $20,000

energy assessment
*ES=Energy Star

Energy Assessment might identify HVAC $450,000

and lighting upgrades at estimated cost
Utility supports a third of upgrade costs $300,000
for net cost of approximately
Energy Assessment might identify $30,000 savings
behavior changes to save 3% of energy
cost

Source: http://blog.groomenergy.com/ Author Jon Guerster April 15, 2013

Case Study on 250,000-square-foot office building
Earnings before upgrades $4.7 Million

Earnings after upgrades $4.9 Million

After improvements building is worth $2.4 Million more than before upgrades
approximately and assessments

If owner does not make upgrades but does assessment, it will still likely save
$30,000
Income Taxes reduced using Federal EPAct accelerated depreciation

Is it worth knowing your energy level?

Source: http://blog.groomenergy.com/ Author Jon Guerster April 15, 2013
 Residential
• Does the market care?
– In California, new homes may be required to
meet net-zero energy level by 2020

• Will the underwriter accept energy

efficiency as an element of comparison?
– Depends
 Residential Case in Point
Residential Property Iowa
Living area 6,800 square feet
Age of structure 7.5 years
Heating/cooling source Geothermal
Cost of geothermal after $5,609/when built
incentives
Range of monthly utility bill over $52-to-$106
7. 5 years
Maintenance issues with None
geothermal
Residential Rating Systems
Measuring Sticks
 HERS Index

Performed by Home Energy

Raters (HERS Raters) trained
and qualified through RESNET.
http://www.resnet.us/certified-auditor-r
ater
 Energy Audit versus
Energy Rating

Energy Rating provides a comparative analysis on how energy

efficient a home is when compared to other similar homes.

• Provides a HERS Index score and uses diagnostic testing

Energy audit (aka energy assessment) pinpoints where and

how a home is losing energy, which systems are working
efficiently, and measure what cost-effective measures can be
taken to rectify the situation.

• Does not provide a HERS Index score and does NOT use
diagnostic testing
 Energy Audit versus
Energy Rating

Austin City Council has a new mandate for all

homes older than 10 years to have an energy
audit before selling a home.

http://www.energystar.gov/index.cfm?fuseaction=pt_awards.
showAwardDetails&esa_id=3649
• MPG rating for homes
– Standardized method for
assessing the energy
performance of a home’s major
energy systems and envelope

• Low cost service

– Takes about 15 minutes if in
concert with other assessment;
less than 1 hour if stand-alone
– Not intended to replace a full
energy audit or diagnostics
 HES Score
Home Energy Score Partners
– Local and state governments, utilities, non-profits, and other home
performance industry organizations

Qualified Assessors
– Must be certified as BPI building analysts or HERS Raters
– Must also pass a 2-part DOE exam (free, on-line, proctored by a
Home Energy Score Partner)

Homeowner Report
– Asset Score (given standard operating assumptions)
– Home Facts: List of data collected by a Qualified Assessor
– Recommendations for improvements

http://www2.eere.energy.gov/buildings/residenti
al/hes_research.html#webinars
• DOE is continuing to recruit Partners to implement program
– Score at least 200 homes per year
– Fulfill DOE’s quality assurance requirements (re-score 5% of homes)

• 30 organizations have signed on to be Home Energy Score Partners

 Energy Performance Score
(EPS) - A MPH Rating for homes
Provides a standardized assessment of a
home’s energy use and associated carbon
emissions. The EPS allows for one homes
energy use comparison to another without
the influence of varying occupant behavior.

http://energy-performance-score.com/
 HERS Insulation Installation
Rating
• Grade 1 – The best – installed per
manufacturers instructions.
• Grade II- The second best – Has
some gaps
• Grade III – The lowest grade – Has
substandard gaps and voids.
http://www.greenbuildingadvisor.com/blogs/dept/building-science/grading-installation-qu
ality-insulation
 Envelope Sealing Rating
Air Changes Per Hour (ACH): The movement
of a volume of air in a given period of time; if a
house has one air change per hour, it means
that the air in the house will be replaced in a
one-hour period.
http://www.seattle.gov/dpd/GreenBuilding/R
esources/Greenbuildingglossary/default.asp
http://hespro.lbl.gov/pro/
Green Button
http://www.greenbuttondata.org/
Residential Energy Documents
• HERS Index Report – full report
• Green Score and worksheet
• Complete Energy Audit
• Res. Green & Energy Efficient
Addendum
• HES Score
 Actual Utility Bills

Are they the most reliable document for

developing energy costs of the residential
or commercial use building? Why or why
not?
Physical signs of energy efficiency
• Landscaping
• Site orientation
• Energy efficient equipment
• Window types /shades/ skylights /solar tubes
• Overhang
• Renewal energy equipment
• Timers/ programmable equipment /dashboards
• Maintenance history
Commercial Energy Ratings

Measuring Sticks
 https://buildingdata.energy.gov/about

DOE Buildings Database

The Database includes information on the energy
use, environmental performance, design process,
finances, and other aspects of each project.
Members of the design and construction teams
are listed, as are sources for additional
information. In total, up to twelve screens of
detailed information are provided for each project
profile. Projects range in size from small single-
family homes or tenant fit-outs within buildings
to large commercial and institutional buildings
and even entire campuses.
 Commercial Energy
Benchmark
• A first step

• Social driver to change occupant

habits

• Changing occupant habits

• reduces usage
• increases net income
• increases value
ENERGY STAR Portfolio Manager
provides Statement of Energy
Performance, including
– Benchmark Score (statistical ranking)
• 70 means your building ranks in the 70th percentile
of similar buildings in terms of utility usage
– Based on actual utility bills and current operations
– 100 point scale based on regression developed using
CBECs data
Energy asset rating provides a
standard report including
-Current score and potential score
• Buildings with the same current score may
have different potential scores.
-Uses EnergyPlus model to predict EUI given
standard set of operating assumptions
-Scale still under development
• Adjusted for climate to allow comparison
across U.S.
• Adjusted for building type
Energy asset rating
Asset Score
•No requirement for utility bills
•Not comparing to CBECS or other building database
•Allows comparison of buildings given standard
assumed operation
 EUI
• EUI – Energy Use Intensity, is a unit of
measurement that describes a building’s
energy use. EUI represents energy
consumed by a building relative to its size.
(Total energy consumed in 1 yr in kBtu/total
floor space of building)
Source: http://www.energystar.gov/index.cfm?fuseaction=buildingcontest.eui
Areas with Energy Benchmarking
Programs City/State Year Implemented

Austin, TX 2011
Minneapolis, MN 2013
New York City, NY 2012
Philadelphia, PA 2012
San Francisco, CA 2011
Seattle, WA 2012
Washington DC 2013
California State Sept 1, 2013 Effective
Washington State 2009
http://www.phillybuildingbe
nchmarking.com/index.php/
benchmarking/
 Chicago Proposes Energy
Benchmarking Law for Buildings
July 2013
The ordinance states that buildings over 50,000 square feet will be required to receive
an EPA Energy Star Score, track and verify their energy consumption. The proposed
compliance dates are:

Commercial and Municipal Buildings:

6/2014 for those larger than 250,000 square feet
6/2015 for those between 50,000 and 250,000 square feet

Residential Buildings:
6/2015 for those larger than 250,000 square feet
6/2016 for those between 50,000 and 250,000 square feet

After one year of compliance, the city would be able to publish individual building
performance data, adding a public incentive for owners to improve efficiency. Exempt
from the law are industrial facilities, storage units, hazardous use units, as well as
certain newly constructed units and those that are facing financial distress.

http://www.cityofchicago.org/content/dam/city/progs/env/SustainableChicago2015.pdf
http://apps1.eere.energy.gov/buildings/tools_directory/doe_sponsored.cfm
 Green Building Information
Gateway -GBIG

http://www.gbig.org/collections/4022/activities?view=map
http://www.usgbc.org/DisplayPage.aspx?CMSPageID=2201
 Energy Asset Score

• Energy asset score reflects the as-

built physical characteristics of a
building and its overall energy Energy Asset Score
efficiency, independent of occupancy
and operational choices.
• The physical characteristics include
– Building envelope (window, wall,
roof)
– HVAC system (heating, cooling, air
distribution)
– Lighting system (luminaire and
lighting control systems)
– Service hot water system
– Other major energy-using
equipment (e.g. commercial
refrigerator, commercial kitchen
appliances, etc.)
Building energy use is affected by many factors.

45 I Energy Asset Score eere.energy.gov

 Relevance of Asset Score
• Buildings #1 and #2 have similar ENERGY STAR scores, but widely divergent asset scores.
• Used together, an energy asset score and an energy benchmark can inform the decisions of a
building owner, operator, buyer, or lessee. Asset Score links to PMS.

Building #1: High Asset Score Building #2: Low Asset Score

Equivalent
ENERGY STAR
Portfolio
Manager
Score Energy Assets
O&M/
Occupant Behavior
• Good energy assets • Poor energy assets
• Poor operation • Good operation
• May be a candidate for low-cost • Low asset score may highlight need to replace
operational improvements. outdated equipment or prepare for replacement
costs in the near future.

46 I Energy Asset Score eere.energy.gov

 Energy Asset Scoring Tool

User clicks “Score

Building” and
receives Energy
• EnergyPlus engine used to estimated energy use Asset Score Report
intensity (EUI) and generate an asset score based on the
building envelope, mechanical and electrical systems,
and other major energy-using equipment. – similar to
Home Energy Score for Res.

• Provides building system evaluations for building

envelope, service hot water, HVAC, and lighting systems.

• Identifies cost-effective improvements.

• Provides an additional "after upgrades” score that

demonstrates the potential energy impact of the
recommendations.

47 I Energy Asset Score eere.energy.gov

 Data Requirements

• Users can enter different amounts of data to receive results of varying

degrees of specificity for their building.

• Will likely require a qualified

professional to verify and submit the
Verified
• Not available during data
pilot
• Requirements still TBD
• Intended to support public
statements about building asset

• Users provide data for as many of

Advanced the additional fields as they choose

• Required to generate score and

report
Simple • Inference engine generates default
values for a few fields

48 I Energy Asset Score eere.energy.gov

 Levels of Use

Simple or Advanced Level Verified Level (still under development)

Step 1 Collect & input data using energy asset Will require greater amount of data as well as
scoring tool verification by a qualified professional
Step 2 Submit data online Submit for rating online
Step 3 System infers values that user leaves Limited inferences allowed.
blank
Step 4 Receive preliminary energy asset score Receive verified energy asset score report
report – new or existing bldg

For building For appraisal,

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ar

owner or real estate

i
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operator’s

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transaction, or
im

information public display

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49 I Energy Asset Score eere.energy.gov

Recent Program & Scoring Tool Improvements

• Refined data requirements based on sensitivity analysis

• Redesigned user interface based on 2012 Pilot feedback and user-centered
research
– Added detailed on-screen user help throughout tool-– Live demo on line
• Created multi-block function for mixed-use buildings and buildings with complex
geometries, envelope properties, and HVAC systems
• Added greater variety of use types – Refrigeration areas not handled yet
– 2012 Pilot: office, school, retail, warehouse only
– 2013 Pilot: 2012 Pilot use types + lodging, multifamily, library, courthouse, mixed use
(can also include senior center, city hall, post office, medical office) Expanded HVAC
options-provides more accurate score of mixed use
• Developed application programming interface (API) for third-party tools
• Added a link to Energy Star Portfolio Manager (ESPM)
– Allows user to download building info directly from ESPM
• Improved weather adjustment methodology
– Separately adjust for heating and cooling

50 I Energy Asset Score eere.energy.gov

 2013 Pilot

Objectives
• Test new user interface including multi-block feature
• Collect data on wide range of buildings to assess 100-point scale and its application to
different building types and climates
• Gather feedback on the data collection process and Asset Score Report
• Follow up with 2012 Pilot Participants on impressions of new Asset Score Report
– All 2012 Pilot Participants will receive updated Asset Score reports for their buildings
– 2012 Pilot Participants are welcome to add data and/or buildings as part of the 2013 Pilot
• Test API codes with third-party software developers

Timeline
• Jul 1 – Sep 30: Pilot Participants collect data & score buildings using Scoring Tool
– Throughout process, Pilot Participants are strongly encouraged to provide feedback to DOE via informal
discussions, webinars, and on-line questionnaire
• Oct 1 – Dec 31: DOE analyzes data
• January 2014: DOE presents Pilot findings
• TBD 2014: DOE releases new version of Scoring Tool

51 I Energy Asset Score eere.energy.gov

 Anticipated Program & Tool Updates
(post 2013 Pilot)
High Priority
• Improve user interface, scoring methodology, Asset Score Report, etc. based on 2013 Pilot feedback
• Allow users to pick energy efficiency measures and test how different scenarios affect “score with
improvements”
– Link to NREL Building Component Library
• Add Phase III use types
– Focus on parking garage, food service; potentially include food sale and data center
• Customize user interface based on climate and use type
• Continue expanding list of HVAC systems and controls
• Add renewable energy data fields and calculations
• Continue to refine recommendations
– Incorporate findings from Spring 2013 evaluation which compared the Scoring Tool’s recommendations with those of 2 professional
auditors following onsite audits of 4 different buildings

Secondary Improvements
• Allow users to enter their utility rates to evaluate efficiency upgrade options
• Add advanced lighting controls
• Develop user interface for utility program administrators
• Develop user interface for qualified assessors who provided “verified” score
• Link to other tools/database (DSIRE, OpenEI, Google Geocode, Google Map, Portfolio Manager)

52 I Energy Asset Score eere.energy.gov

 Useful Links
• Energy Asset Score website
http://www1.eere.energy.gov/buildings/c
ommercial/assetscore.html

• Energy Asset Scoring Tool

buildingenergyscore.energy.gov/

• Asset Score Email Box

asset.score@ee.doe.gov

53 I Energy Asset Score eere.energy.gov

Consequences of high and low
performing buildings
• High utility costs / Lower net income
• Longer marketing periods
• Lower rents
• Could penalties assessed through
additional taxes be next for inefficient
buildings?
www.dsireusa.org
 AI Green Resources
http://www.appraisalinstitute.org/education/
green/default.aspx

Appraiser’s Guide to Identifying Green Building Features in a Home

By Kathy Price-Robinson
http://www.appraiserresearch.org/research-results/green-
guide.html
Advanced Energy – Knowledge Library
http://www.advancedenergy.org/buildings/programs/energy_star/
http://www.appraisalinstitute.org/education/green/default.aspx
Sandra K. Adomatis, SRA, LEED GA
Adomatis@hotmail.com