Des Moines Energy Policy Task Force Committee. Session #6 September 13, 2018

Transcription

1 Des Moines Energy Policy Task Force Committee Session #6 September 13, 2018

2 Task Force Structure and Leadership Convened by Mayor Frank Cownie Co-Chaired by City Council Members Josh Mandelbaum and Bill Gray Facilitated by Kevin Pokorny Staffed by Kent Newman City Energy Adviser One of several actions we are taking as part of our larger work under Energize Des Moines

3 Schedule for remaining meetings Meeting #1 Thursday April 26 - Background/context for policy development and current goals; goals for the task force; benchmarking 101 and overview of benefits; review of policies and outcomes from other cities Meeting #2 Thursday May 17 Review of Des Moines Building Stock and which buildings to include; overview of ENERGY STAR Portfolio Manager Meeting #3 - Thursday June 14 Implementation and phasing of benchmarking and transparency by building type; strategies beyond benchmarking to achieve savings Meeting #4 - Thursday July 12 Reporting process; what information should be included; how information will be shared and used; options for displaying energy and water information Meeting #5 - Thursday August 16 Information/Communication; compliance and enforcement; education and workforce training; resources and services available to assist under-performing buildings; Policy Committee to meet to develop recommendations for all aspects of policy Meeting #6 - Thursday September 13 Final workshop to review draft policy elements; Policy Development Committee will continue as needed

4 Session Agenda Recap of Sessions 1-5 Review and discussion of proposed policy Benchmarking & Transparency; Energy Audits; Retro-commissioning Information, communication and enforcement Resources and services to support Benchmarking Education and workforce training Resources and services to assist under-performing buildings

5 Session One - Key Takeaways City Policy background and context What the City is doing Opportunities for multiple economic benefits from energy efficiency policy for large buildings Benchmarking 101 Review of policies in other cities; outcomes Opportunities for consideration in Des Moines

6 Key Strategies for Lead by Example in Municipal buildings Enhance Building Code Compliance through Education and Assessment Launch Energize Des Moines challenge Create a Task Force to develop policy options for energy efficiency Offer Building Operator Training Explore Energy Efficiency Financing options

7 Why are we here? What are our goals? We have a responsibility to make our community healthier, safer, and more prosperous Reduce operating costs for property owners and tenants Assist our most vulnerable neighbors by reducing utility cost burdens Attract new businesses and tenants, & keep the commercial real estate market competitive Explore options for financing tools to make efficiency improvements Improve building efficiency through improved building code compliance and building operator training Create awareness of the value of energy efficiency in buildings

8 The big goal for this Task Force: Help shape a policy that leverages these benefits for Des Moines

9 What does that mean? How do we do that? Create Transparency Craft a policy that requires annual energy and water benchmarking for the largest buildings in Des Moines Make energy and water information publicly available so the market can reward energy efficiency Trigger Action Regular energy/water audits to assess efficiency of existing building systems Improve operations (re-tuning, retro-commissioning) and implement cost effective upgrades Ensure Continuous Improvements Review and consider other City policies to provide incentives for energy and water efficiency in new buildings Develop comprehensive training programs and generate new career path opportunities

10 Session Two - Key Takeaways Benchmarking case study Des Moines Public Schools Review of Des Moines Building Stock, particularly large existing commercial buildings Evaluating options for which buildings to include: Size threshold Phasing/timeline for compliance of primary categories of buildings Analysis of Des Moines buildings energy use and GHG emissions Analysis of Des Moines commercial building stock

11 ENERGY STAR Certified Buildings Des Moines Ranking In 2018, Des Moines is ranked #7 among Midsize cities by number of ENERGY STAR buildings There are 66 ENERGY STAR Certified buildings in the metro region 62 are within City limits; 58 are Des Moines Public Schools Only 7.6% of buildings above 25,000 sq. ft. in Des Moines are ENERGY STAR Certified Energy STAR Certified Buildings Ranking Des Moines 2018

12 Session Three - Key Takeaways 25,000 sq. ft. threshold addresses: o 73.1% of commercial sq. footage o 44% of Des Moines building energy use o 17.9% of commercial buildings Phase-in velocity trade-offs; potential phase-in timeline for buildings to come under policy; reporting; transparency Potential for accelerated timeline to engage more properties sooner o City of Des Moines buildings could report and share scores in 2019 o Include MF with all other Commercial properties >25K in 2020 Exemptions

13 Session Four - Key Takeaways Potential for accelerated timeline to engage more properties sooner o City of Des Moines buildings could report and share scores in 2019 o Include MF with all other Commercial properties >25K in 2020 Policies beyond benchmarking to achieve savings: o Energy audits, retro-commissioning/retuning Comprehensive approach: o Performance/compliance path for high performing buildings; o Prescriptive pathway for under-performing buildings o Energy & Water Data; Measured vs. Reported/Collected vs. Made Public o Data Quality o How information will be shared and used o Options for displaying energy and water information

14 Implementation: Phasing & Reporting Deadlines

15 Proposed Timeline for Des Moines City has benchmarked 14 buildings > 25K sq. ft. and could be ready to report all muni buildings in 2019 Timeline for buildings over 25,000 square feet: May Benchmarking Report Due: Government Buildings Transparency: Government Buildings May Benchmarking Report Due: All Commercial Buildings, Including Multifamily May Transparency: All Commercial Buildings, Including Multifamily

16 Beyond Benchmarking Benchmarking serves as the foundation for a complementary suite of energy efficiency policies and programs Challenge Programs Certification of Building Operators Energy Efficient Municipal Portfolio Supporting Programs Energy Audits Retuning Financing Policies Benchmarking & Transparency

17 How do we reach beyond the leaders? To meet our energy reduction goals we need to engage poor and average performers across the market to take action, not just the leaders We need policies that capture the savings opportunities in the poor performers There are diminishing There energy are savings diminishing from the energy leading savings edge from the leading edge

18 Benefits of a Potential Des Moines Policy A benchmarking and transparency, audit, and retuning policy is projected to generate: $10 Million in energy savings in the first 5 years $90 Million in cumulative savings with 1.6 Billion kwh avoided through 2030 $85 Million in investment and 400 new jobs created through 2030 More than $3 Million per year in annual air quality benefits by 2023, $44 Million in cumulative savings by 2030, primarily from reductions in asthma symptoms for children and the elderly CO2 Emissions Reduction through % 10 Billion gallons of water saved by 2030

19 Demonstrated Water Savings In Minneapolis: Public buildings showed a nearly 12% decline in water consumption from 2015 to 2016 Total water consumption dropped 5.9% in consistently benchmarked buildings

20 Sample Schedule Template Energy Policy Task Force Gov t buildings benchmark and publish data First Benchmarking Reporting Deadline Group A Notification letters sent First Group B Audit or Retuning Due Group C notification letters sent First Group D Audit or Retuning Due Group E notification letters sent Policy Passed Notification letters Sent to all commercial and MF properties First Public Posting of Data First Group A Audit or Retuning Due Group B notification letters sent First Group C Audit or Retuning Due. Group D notification letters sent First Group E Audit or Retuning Due

21 Benchmarking & Transparency Policy Recommended Elements Lead Implementer Permit & Development Center Sectors affected City Government, Commercial, Institutional, Multifamily Commercial Buildings classified as Industrial are not covered Schedule for Filing: May 1, 2019 City Government Buildings report and make public May 1, 2020 All other buildings report May 1, 2021 limited energy and water metrics made public

22 Exemptions New buildings Need one full calendar year of occupancy Unoccupied buildings; Buildings with less than 50% occupancy during the last calendar year Energy use data is considered proprietary labs, energy intensive processes Good faith effort has been made to obtain whole building aggregate data, but didn t receive data in time to comply by due date report when possible

23 Exemptions Financial hardship: - under control of court-appointed receiver - owned by a financial institution - has been acquired by a financial institution via deed in lieu of foreclosure - encumbered by a senior mortgage subject to notice of default - asset subject to probate proceedings - was subject to property tax arrearages and included in Polk County annual tax lien sale within prior two years

24 Policy Recommendations Benchmarking Reporting Fee: - Government - $25 - Multifamily - $50 - Commercial - $100 - considered Common Area Maintenance (CAM) Data Verification will be included in verifying scores above 75 as well as all audits and RCx score below 75

25 Policy Recommendations Current MidAmerican Energy Policy to request whole-building aggregate energy use Similar Forms for Des Moines Water Works FAQ s Aggregated Data Request by qualified property owner or manager 4 or fewer meters signed releases from each tenant; unit and meter numbers 5 or more meters include list of unit and meter numbers MidAmerican Energy will return up to 2 years of data within 30 days All forms are on Energize Des Moines section of City web site

26 Task Force Policy Recommendations Remove perceived and real barriers to benchmarking, especially access to whole-building aggregate data for multi-meter Commercial Properties (office, retail and multifamily) Make it easy and accurate; eliminate data input errors via auto data upload Provide multiple opportunities for training and education Benchmarking 101; Data Jams; Help Desk

27 Options to ensure high quality data Portfolio Manager Data Quality Checks (by submitter) Additional automated data error checks (by City); return message sent to submitter via Portfolio Manager Automated uploads of utility meter data ask for it Third-party verification (annual or periodic) Robust help center and training offerings

28 How information will be shared and used

29 Policy Recommendations Transparency Approach One-year delay from initial reporting to making limited metrics public allow more time for improvements to be made; improve compliance List of buildings by address on City web site; potential interactive map

30 Shared Benchmarking Information City and Public Descriptive Information Property Address; Property Type; Primary Use; Gross Floor Area Latitude/Longitude Number of years property has been Energy STAR Certified and last approval date Individual or Entity responsible for benchmarking submission

31 Shared Benchmarking Information City and Public Site and source energy use intensity (EUI) Weather normalized site and source EUI Energy STAR Score if available Annual CO2 equivalent emissions Indoor water use and water use intensity (consumption/sq.ft.) Outdoor water use if available Total water use General comments section, to better understand the scores Compliance or noncompliance with the ordinance

32 New York City Benchmarking Database

33 Visualization Map Philadelphia Example

34 Performance Pathway Exempt from Audits and RCx Performance pathway for high-performing buildings Energy STAR score of 75 or equivalent EUI Building has received Energy STAR score of 75+ for 2 of 3 years preceding compliance due date Buildings not eligible for Energy STAR score, licensed engineer or architect certifies that performance is at least 25% above median score of similar buildings in national CBECS data (commercial buildings energy consumption survey) Licensed engineer or architect certifies that source EUI has been reduced by at least 15% compared to 5 years preceding compliance due date

35 Performance Pathway - Examples Performance pathway for high-performing buildings Property has received LEED EBO&M certification 2009 or later LEED O&M Existing Buildings Version 4 rating system (USGBC) Net-Zero Energy Certification from International Living Future Institute Property performs continuous commissioning Property has completed an approved utility retuning incentive program in three years preceding compliance date; or an independent retuning program with documentation of system optimization

36 Performance Pathway - Examples Property does not have central cooling system and 4 of the following 6 measures were completed within the five years following the baseline year Common area and exterior lighting up to code Pipe insulation up to code Cool roof Demand response utility sponsored program Solar thermal water heating system Domestic hot water heater(s) to code

37 Performance Pathway - Water Water audit/retuning not required to be included in Audits and RCx if: WUI was equivalent or better than 75% of all covered properties of same type OR Weather normalized WUI was reduced by at least 20% relative to baseline year Property performs continuous commissioning of water systems Water use conforms to requirements of City Code in effect at any time during 5-year reporting cycle

38 Performance Pathway - Examples Property does not have central cooling system and 2 of following 4 measures were completed during 5 years following baseline year report certified by professional Low flow faucets and shower heads Front loading washing machines in common laundry facilities All toilets and urinals have been replaced and/or meet City Code in effect at any time during 5-year cycle Property is residential or nonresidential multi-tenant property constructed during or before 1990 and has voluntarily retrofitted with water submeters

39 Prescriptive Pathway - Examples Energy STAR score or EUI equivalent must undergo ASHRAE Level 2 Audit every 5 years (energy survey and cost analysis of all Energy Conservation Measures) in conformance with ASHRAE Procedures for Commercial Building Energy Audits (latest edition at time of audit) under the direction of a licensed Iowa architect or engineer Recommendation of Energy Efficiency Measures (EEM); total cost; available incentives; net cost; annual energy cost savings; simple payback period; net present value Implement at least two recommended actions

40 Prescriptive Pathway - Examples Energy STAR score or EUI equivalent under 50 Retrocommissioning every five years in accordance with industry standards, including ASHRAE Guideline 0.2 Commissioning Process for Existing Systems and Assemblies, under the direction of a licensed Iowa architect or engineer Recommendation of Energy Efficiency Measures (EEM); total cost; available incentives; net cost; annual energy cost savings; simple payback period; net present value Implement four energy and two water actions

41 Potential Incentives Lower scoring buildings that engage in Energy Audits or Retro-commissioning may have priority access to Revolving Loan Fund to implement energy conservation measures not covered by utility incentive program Could be prioritized for EE incentives available from MidAmerican Energy in the next 5-year plan, especially if incentives are limited

42 Audits and Retro-commissioning Continued No submission fee for submitting audit or RCx report - we don t want to penalize lower-performing buildings Portfolio Manager Account and all documentation of energy and water system efficiency; audits and RCx; documentation of actions and upgrades stays with property if sold

43 Break

44 City Roles/Responsibilities to Administer BMT Policy Education and outreach Continuing to refine contact list Provide support, trainings, help center Notification and enforcement Provide ample advance and repeated notification Provide assistance and opportunities to comply before any enforcement Assuring data quality Tracking and annual reporting

45 Notification: Mailings

46 Atlanta Notification Letter

47 Notification: Outreach

48 Outreach Outreach consists of educating building owners and managers about the benchmarking ordinance: Deadlines Compliance Process Available Resources Outreach should answer the following questions: Who does the ordinance cover? What are the requirements of the ordinance? How do covered building owners/property managers comply with the ordinance requirements? What are the consequences for not complying?

49 Outreach

50 Compliance Support: Training

51 Common Training Options Drop-in Benchmarking Help Sessions Offer Attendees receive free, hands-on help to benchmark their energy and water use in Portfolio Manager Requirements Technical experts available to help attendees USGBC-Missouri Gateway staffed dropin sessions for St. Louis Volunteers provided office hours to help building owners benchmark Classroom- Style Training Sessions Larger classes that explain the purpose of the ordinance, benefits of energy efficiency and the compliance process, including a walk-through of the benchmarking and reporting process. Technical experts to lead the class or recording Kansas City offers classroom-style workshops that cover the basics of compliance and energy benchmarking EPA offers How-to documents and demo videos on benchmarking with Portfolio Manager

52 Number of Trainings Atlanta 8 Trainings and Drop-in Sessions Denver 8 Kansas City 10 St. Louis 5

53 Compliance Support: Materials

54 Website Provide background information on the ordinance - pdf Answer frequently asked questions about the ordinance and compliance process - pdf Host compliance support documents pdf files

55 Compliance Materials - Examples Material Compliance How-To Guide Compliance Checklist Frequently Asked Questions Description Walks owners/property managers through the compliance process, including utility procedures to access energy bills and whole-building data (if available). Screenshots of how to provide data to the City and other key steps are encouraged. A short compliance checklist provides a high-level overview that lays out the entire benchmarking/compliance process in 1 2 pages. Answers to basic questions about the ordinance, including its benefits, its requirements, who s covered, violations & enforcement

56 Frequently Asked Questions Example Questions: What is benchmarking? How will my building benefit from benchmarking? Does the ordinance require mandatory improvements, audits or retrofits? What is ENERGY STAR Portfolio Manager? How is the ENERGY STAR score calculated? Is my building required to benchmark and what are the deadlines for reporting? Are there exemptions and/or extensions mentioned in the ordinance? What happens if a building owner fails to comply? What building information do I need to collect? How do I benchmark a building that isn t individually metered?

57 Compliance Support: Help Center

58 Benchmarking Help Center Improve compliance rates Ensure a more positive experience for parties subject to regulations Improve public support for policy Raise accuracy of submissions Increase understanding of how to use benchmarking results Provide guidance and resources to help drive action

59 Compliance Support: Utilities and 3 rd Parties

60 Additional Compliance Support Pro Bono Benchmarking services via professional volunteers, interns and fellows MidAmerican Energy for utility information, wholebuilding aggregate data; incentives and rebates Des Moines Water Works for water information and whole-building aggregate data

61 Compliance Support: Enforcement

62 Compliance and Enforcement Initial focus on education, trainings, and communicating the benefits Provide Director with the authority to assess penalties Fines should be higher than the cost of simply complying: Benchmarking Fines: $500 to $1,500 per year Audits/RCx Fines: $2,000 to $5,000 per year

63 Potential Enforcement Process Letter stating that data was not received within 30-day grace period Letter stating noncompliance and potential for fines Levy of fines for additional delay in filing or noncompliance Engagement of the City Attorney s Office Additional penalties

64 Suggested fines in Des Moines No fines in first year of reporting Year 2 30-day grace period; then written warning Failure to comply Buildings below 50,000 sq. ft. fines of up to $50/day for maximum of 25 days in one 12-month period Buildings above 50,000 sq. ft. fines up to $100/day for maximum of 25 days in one 12-month period Similar fines for noncompliance with audits and RCx

65 Overall Discussion Outreach and Support What types of education or outreach will be most effective trade organizations, peer-to-peer? What types of technical assistance are most valuable? How can the City communicate most effectively with the building owner and management community? How can community partners provide assistance with notification and education? Enforcement What level of fines or other enforcement strategies will ensure that buildings owners comply?

66 Task Force Timeline and Next Steps August 20 City Council Workshop Policy Development Committee met twice since last Task Force Meeting; Policy Advisory Committee to meet during implementation phase to ensure program is functioning well Three additional commercial property focus groups one specifically multifamily Next steps Policy Development Committee will meet again to consider feedback from the meeting; revise recommendations for audits and retuning to be more flexible; Submit to City Attorney s office to draft ordinance; final review by Policy Development Committee Additional City Council Workshop Schedule for City Council Agenda in late October or November