beth brummitt energy and climate legislation and your business
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Energy and Climate Legislation
and Your Business:COMPLIANCE and Opportunities
Helping people achieve very energy efficient buildings
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aka “Title 24”
Increasing stringency: 2011/2014/ …
Residential: Net Zero 2020
Non-Res: Net Zero 2030
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1. Effective January 1, 2011
2. Mandatory Measures
3. Energy Efficiency: See CEC, Title 24,
Part 6
4. Voluntary Measures
5. Tier 1 and Tier 2
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1. Residential
2. Non-Residential
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LEED Systems
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LEED v3 2009 - EBOMPrerequisites:WE-p1: Min. Indoor Plumbing Fixture , Fitting
EfficiencyEA-p1: Energy Efficiency Best Management PracticesEA-p2: Min. Energy Perform: ENERGY STAR
Rating: 69EA-p3: Refrigerant ManagementMR-p1: Sustainable Purchasing PolicyMR-p2: Solid Waste Management PolicyEQ-p1: Minimum IAQ PerformanceEQ-p2: Environmental Tobacco Smoke (ETS) ControlEQ-p3: Green Cleaning Policy
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LEED v3 2009 - EBOM
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Assembly Bill 1103 – What is it?Requires Energy Use Benchmarking and Disclosure
for Nonresidential Buildings:Allows prospective buyers and tenants to compare
building performance with similar buildingsMotivates owners to improve building’s energy
profileCompared with competitionImpact on building valuation
A benchmarking system, drawing on Energy Star Portfolio ManagerCalifornia Building Energy Performance Rating
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AB1103 – What is the trigger?
→ Financial transaction for the whole building
Must disclose benchmarking data and ratings to:
Prospective buyer Lender Lessee of entire building
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AB1103 – When is it effective?
Eg: Building Type
Effective Date
Jan 1, 2011 Jan 1, 2012 Jul 1, 2012
Solely Owner Occupied
Any size, >1,000 sf
Any size, >1,000 sf
Any size, >1,000 sf
Commercial Buildings, All Occupancies > 50,000 sf > 10,000 sf >1,000 sf
Energy Star is a 12 month “look-back” Today’s energy use is part of the January disclosure!
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Example:
Reduce Annual Energy Cost= Increase Annual Cash Flow: $50,000
Divide by Cap Rate: ÷ .08 Increase in Building Valuation $625,000
AB1103 – Impact on Building Valuation
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AB1103: Disclosure Form
www.energy.ca.gov/ab1103/documents/index.html
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AB1103 – Disclosure FormExample:
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AB1103 – Disclosure FormExample:
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AB1103 – Disclosure FormExample:
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How improve your building performance?
Benchmark Maintenance Retro-commissioning No-Cost and Low-Cost Measures Plan: mid & long term capital
improvements Benchmark: continuous monitoring!!
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Cost Analyses: Approaches First Cost Simple Payback % Return On Investment (ROI) Cash Flow
savings > cost of financing measures
Life Cycle Cost (compare complex systems)
first costs, operating costs, maintenance, escalations, discount rate
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Financial Aid
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What’s Next in Green?
Site
Water
Energy
Health
Materials
Equity
Beauty
Buildings
Neighborhoods
Cities
Societies
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What’s Next in Green?
Industrial revolution: 180 ybp Homo sapiens sapiens: 50,000 ybp Life on earth: 3,850,000,000 ybp
BIOMIMICRY
NATURE: Model Mentor Measure
SUCCESSFUL:
ProductsBuildings
BusinessesSociety
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Questions?
Helping people achieve very energy efficient buildings
Beth Brummitt 619-531-1126 www.brummitt.com
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Financial Aid: examplesRebate Programs:
Express EfficiencySmall Business Super Saver (small account)
Performance Programs:Standard Performance ContractEnergy Savings Bid
Demand Response – dispatchable loadsAudits and IncentivesVariety of DR Rates
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Financial Aid: examples3rd Party Programs, eg:
Rcx: Retro-commissioningOnline Business Assessment ProgramPremium Efficiency Cooling
New ConstructionSavings By Design
Emerging Technology:Request support to help implement new
technologies
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Financial Aid
Federal Commercial Building Tax Deduction Ranges from $0.30 to $1.80 / sf,
depending on energy efficiencyLighting can be done separatelyEg: 35% MTB: actual benefit is about $0.10 to $0.60 / sf
Requires: Complicated energy modeling for max incentivesField Check
Equipment placed in service: 1/1/2006 and 12/31/2013
http://www.dsireusa.org/ www.energytaxincentives.org