The Department of Energys Commercial Building Initiative and Commercial Building Energy Alliances

1
The Department of EnergysCommercial Building
Initiative and Commercial Building Energy
Alliances

• Presented by
• Sucheta Puranik and Mark Peternell

2
Table of Contents

• Understanding the Market Need
• DOE Response
• Private Sector Approach and Experience

3
Understanding the Market Need

• Size and Scope of Built Environment
• Energy Price Volatility
• Climate Change
• Better Buildings

4
Buildings consume 40 of energy in the U.S.

• The combined residential and commercial buildings
  sector is the largest energy consumer in the U.S.

5
U.S. buildings are responsible for 9 of the
worlds carbon dioxide emissions
Total US Building CO2 Emissions (Residential and
Commercial)

• Commercial Buildings in the United States
• Use 18 of U.S. energy
• Contribute 18 of U.S. greenhouse gas emissions
• Contribute 4 of world greenhouse gas emissions
  equal to emissions of India

6
Commercial buildings consume greater amounts of
energy relative to other sectors

• Energy consumption by commercial buildings rose
  70 between 1980 and 2005

7
Energy prices are volatile, making costs hard to
manage

• Volatility stems from
• Imbalances in supply and demand
• Speculation
• Weather
• Fuel switching
• Improving efficiency of commercial buildings
  mitigates bottom-line impacts of price swings

US AVERAGE MONTHLY WELLHEAD NATURAL GAS PRICE
Renewable Energy Price-Stability Benefits in
Utility Green Power Programs NREL/TP-670-46532
August 2008
8
Market need for tangible ways to increase energy
efficiency is tremendous

• Identify efficiency strategies and technologies
  in commercial building sector
• HVAC
• Lighting
• Refrigeration
• Lighting
• Whole Building Integration
• Existing Buildings

Aldo Leopold Legacy Building A Net Zero Building
9
Market need for tangible ways to increase energy
efficiency is tremendous (cont.)

• Eliminate duplication and wasted resources by
  establishing a data repository of openly shared
  and reliably verified quality information
• Work with equipment and efficiency supply chains
  to more effectively respond to efficiency-focused
  technologies and processes

10
DOEs Response

• Commercial Building Initiative
• Commercial Building Energy Alliances (CBEAs)
• Commercial Real Estate Energy Alliance
• Retailer Energy Alliance
• Hospital Energy Alliance
• National Accounts
• Technology Focused

11
Why is federal government involved?

• Because net-zero energy buildings will mean
• Dramatic reductions in nations carbon
  footprint, in ways that support healthy economy
• Lower operating expenses for building owners and
  tenants, more competitive U.S. businesses
• More sustainable communities, less strain on
  power grids, delayed needs for new power
  generation infrastructure
• Plentiful domestic energy from a clean new
  source buildings that generate power back to the
  grid

12
EISA calls for the development of Net-Zero Energy
Commercial Building Initiative

• Section 422 of the Energy Independence and
  Security Act of 2007 requires net-zero
• Newly constructed commercial buildings by 2030
• 50 of commercial building stock by 2040
• All commercial buildings by 2050
• Authorizes DOE to collaborate with national labs,
  private sector, other federal agencies,
  non-governmental organizations to advance
  high-performance commercial buildings
• Directs DOE to recognize High-Performance Green
  Building Partnership Consortia and competitively
  select Consortium

13
DOE is poised to collaboratively develop
solutions with the marketplace
Net Zero Energy Commercial Building Initiative
DOEs Alternative to Business as Usual

• Public-private partnerships created to achieve
  and promote continuous technology improvement and
  commercialization of advanced building
  technologies at an accelerated pace
• Enable market-ready net-zero energy commercial
  buildings no later than 2025 in all climate zones

• Turn tomorrows buildings into domestic energy
  assets
• Construct energy-efficient, high-performance
  buildings that expeditiously and cost-effectively
  achieve sustainable carbon reductions
• Enable, through energy-efficient buildings,
  higher ROIs for building owners and occupants as
  well as benefits for economy as a whole

14
CBEAs informal associations of building owners
and operators seeking to reduce energy consumption

• Commercial Real Estate Energy Alliance (CREEA)
• Launched in April 09
• Office, shopping center, hospitality, medical
  office
• Retailer Energy Alliance (REA)
• Launched in February 2008
• General merchandise, grocery store, restaurant,
  warehousing/distribution
• Institutional Energy Alliance
• Federal/State/Local government, hospitals (HEA
  launched April 09), colleges/universities/K-12
  schools

15
CREEA members represent diversity of commercial
real estate sector
16
CREEA members share experiences and best
practices to help achieve energy efficient
buildings

• Specifically, CREEA works with members to
• Provide access to technologies and analytical
  tools emerging from DOE and the national labs
• Create and share successful strategies for
  integrating high-performance technologies
• Serve as a consistent, compelling voice calling
  on manufacturers and distributors for highly
  efficient products and services
• Lower the cost of technologies and overcome
  regulatory barriers
• Increase commercial real estates energy
  efficiency
• Help DOE shape the future of technology research
  and development by clarifying the commercial real
  estate sectors business needs

17
REA members represent retailers and restaurants
18
Market penetration is impressive, a trend that
DOE hopes to continue
19
DOE partners with national labs and 23 companies
to accelerate progress

• National Accounts agreed to
• Build one new building at 50 less energy than
  ASHRAE Standard 90.1
• Retrofit at least one existing building at 30
  less energy
• Labs provide technical assistance to biggest
  names in retail, commercial real estate, and
  financial sectors

20
REA has achieved significant results in one year
REA Response
End User Issue

• Lighting
• Daylighting
• Moving from Watts/Sq ft to kWh
• LEDs
• HVAC
• Equipment Efficiency
• IAQ Codes and Standards
• Refrigeration systems
• Refrigerant Reduction
• Energy Consumption
• Integration with HVAC
• Restaurants
• Benchmarking
• Incentives

• Supplier Summits (Cross Alliance)
• Technology Screening
• Lighting
• Commercial Lighting Solutions
• LED Parking Lot Lighting Technology Procurement
• HVAC
• Premium Efficiency Motors on RTU fans
• ASHRAE Codes and Standards Meeting
• Unitary AC Analysis Tool
• Refrigeration systems
• Partnering with EPAs GreenChill program to
  integrate energy and refrigerant reductions
• Restaurants
• Benchmarking

21
Technology Procurements allow DOE and CBEAs to
respond to market needs

• LED parking lot lighting technology procurement
  was completed within a year of REAs launch
• LED lights
• Save money and energy
• Enhanced luminaire optical efficiency
• Better total system efficacy (lumens/watt)
• Control capability, e.g. dimming
• Reduced maintenance costs
• Improved uniformity in lighting
• Environmentally friendly

22
Why join a CBEA?

• Objectives and Benefits
• Provide real-time access to advanced technologies
  and analytical tools emerging from DOE and
  national energy laboratories
• Create and share evidence-based strategies and
  best practices (i.e. case studies) for
  integrating advanced technologies or processes
• Serve as a consistent and compelling voice to
  national manufacturers and distributors for
  highly-efficient products and services
• Provide greater consistency in energy efficiency
  program design and delivery
• Validate energy and carbon reduction efforts to
  internal and external audiences, including
  customers and the financial community
• Lower the cost of technologies and overcome
  regulatory barriers
• Provide clarity on the business needs and drivers
  unique to the hospital sector

23
Mark PeternellRegency Centers
24
About Regency

• Leading national owner, operator and developer of
  shopping centers
• Focus on grocery-anchored
• Headquartered in Jacksonville, FL
• 21 offices nationwide
• Consistent track record
• 46 years of real estate experience
• Publicly listed on NYSE since 1993 (Symbol REG)
• 4.5 B Total Market Cap (1)
• (1) As of 2/25/09

25
Regency Centers Green Initiatives

• New Developments Implement select sustainability
  measures into all new developments, and pursue
  LEED Certification for an increasing percentage
  of new developments
• 2008 - 20
• 2009 - 40
• 2010 - 60
• Existing Centers Adopt green OM practices
  throughout our operating portfolio in order to
  reduce operating costs, maximize revenues, and
  minimize the environmental impact associated with
  our actions
• Corporate Operations Create a culture and
  awareness of sustainability throughout the
  organization.

26

• Regencys innovative best practices program uses
  the latest advances in green building design,
  construction, and maintenance to reduce the use
  of natural resources and increase efficiencies at
  our shopping centers
• Typical greengenuity strategies include
• Water Conservation
• Low Impact Development (LID) / Stormwater
  Management
• CD and Operational Recycling
• Sustainable Building Materials
• Building Energy Efficiency

27
Regencys Participation in DOE CBI and CREEA

• Selected as one of 23 national account teams in
  fall 08
• Opportunity to work with some of the best
  building energy efficiency experts
• Receive technical assistance from for one new
  development and one existing building retrofit
• Ability to link modeled performance to actual
  operational performance
• Provide invaluable data to tenants on real cost
  savings
• The real value is the opportunity to prototype
  select energy efficiency strategies and replicate
  in future developments and throughout our
  portfolio

28
Thanks

• Commercial Building Energy Alliances buildings.en
  ergy.gov/alliances.html
• DOE Building Technologies Program buildings.energ
  y.gov
• Dru Crawley Building Technologies Program, U.S.
  Department of Energy Drury.Crawley_at_ee.doe.gov
• Mark Peternell Regency Centers MarkPeternell_at_reg
  encycenters.com
• Sucheta Puranik, Associate Booz Allen
  Hamilton Puranik_sucheta_at_bah.com