HOUSTON ENERGY EFFICIENCY IN BUILDINGS LABORATORY

Core Group:

Co-Chairs:

Partners:World Green

Building Council

THE EEB2.0 PROJECT

reduction in total CO2 emissions in the building sector is neededSource: International Energy Agency

80%Unlock financially viable energy efficiency

investments that today are not being realized because of mostly non-technical

barriers

diagnosis

Step 1

solution

Step 2

scale up

Step 3

Building portfolio / market level“EEB Laboratory”

• Benefits-Barriers-Enablers• Key issues mapping

• Prioritization

Identify key decision-makers Develop solution / action plan

Launch implementationEarly Measuring & Verification

Disseminate best practiceLeverage partners

Replicate in other building portfolios / markets

Situation analysis

Solutions guideAction plan

Corporate, Markets, Cities Decision-Maker

1,000 commitments

globally

THE EEB2.0 PROJECT

THE EEB2.0 PROJECT

2013

2014

2015

India, US, China

Poland, Brazil

France, Germany, Czech Republic, Singapore, Hong Kong

Singapore

Hong Kong

Benelux

Starting:

WHY HOUSTON?

HOUSTON ENERGY EFFICIENCY IN BUILDINGS LABORATORY

THE BUSINESS CASE FOR ENERGY EFFICIENCY WITH MR. GERALD HINES

HOUSTON ENERGY EFFICIENCY IN BUILDINGS LABORATORY

ACCELERATING THE GROWTH OF ENERGY EFFICIENT BUILDINGS IN HOUSTONa locally supported stakeholder engagement to deliver on an action plan for achieving market transformation with a set of clear stakeholder commitments.

40+STAKEHOLDER

INTERVIEWS

28TECHNICAL COMMITTEE

LEADERS

2DAYS OF IN-DEPTH

DISCUSSIONS

4COMMITTEES TAKING ACTIONS FORWARD

STEERING COMMITTEE

TECHNICAL COMMITTEE

HARC, NRG, Schneider Electric, Shell, Keeping PACE in Texas, AGC/AGNA, IMT, Hines, SPEER, City of Houston, Siemens, UTC/Carrier, Architend, Lafarge, ULI Houston,

Gensler, C40/Houston, EDF, ALC, IMT, UTC, WBCSD, US BCSD, and Rice University.

STAKEHOLDER INTERVIEWS

On Wednesday, the laboratory technical

committee conducted 41 interviews with Houston-

area stakeholders to learn about what’s working,

barriers and accelerators for energy efficiency.

WHO WE INTERVIEWEDArchitend Ascentergy Avison Young Baker Katz

Buckhead Investment Partners Cadence Bank CBRE City-Housing and Community Development Department

Cousins properties Crimson Services ERM Gensler

HARC Hines Houston ISD HTS Engineering Jacobs

Kensinger Donnelly Klein ISD McCord Development Metro National Moody Rambin New Hope Housing

Nexos Resource Partners Pecan Street Research Institute Rice Shell STG Design TEAM solutions

Trammell Crow Tellepsen USGBC Way Holding Engineering

Texas A&M Energy Systems Lab

WHAT’S WORKING

Corporate headquarters occupants & Class A office owners/operators drive the EEB market

Voluntary approach: investors push for LEED & Energy Star certifications

Strong and progressive building energy codes

The public sector leads by example:

Reducing energy in their own buildings and benchmarking

Raising awareness of the public and provide funding for home weatherization

Encouraging efforts for commercial buildings

The incentives that are available are working

ROUNDTABLE DISCUSSIONS

On Thursday, this same group worked together to

distill key findings from the interviews; and we

conducted four roundtable discussions on value & co-

benefits, financing, policy & regulation, and verifying

value & ROI.

ROUNDTABLE 1: INCREASING VALUE TO STAKEHOLDERS THROUGH ENERGY EFFICIENCY

The benefits of EEB investments for each category of building market stakeholders can be substantiated. A comprehensive value proposition that would define and capture the full spectrum of “co-benefits” from EEB investments, such as occupant productivity, job creation, and reduced utility peak and capacity demand, will be key to eliminating barriers. This roundtable sought to understand and articulate a comprehensive value proposition in the Houston market.

OBJECTIVE

ROUNDTABLE 1: INCREASING VALUE TO STAKEHOLDERS THROUGH ENERGY EFFICIENCY

1) Need to capture and communicate market value. With emphasis on class B and C buildings.

2) Low awareness, and need for education - especially for decision makers.

3) Market pull/demand from tenants is needed because Houston wants market solutions.

4) Building operations impact value.

THE BARRIERS

ROUNDTABLE 1: INCREASING VALUE TO STAKEHOLDERS THROUGH ENERGY EFFICIENCY

NATHAN BAILEY, AUTOMATED LOGIC

ROUNDTABLE 2: INVESTING AND FINANCING ENERGY EFFICIENCY IN BUILDINGS

Thanks to forward-looking state leadership, Houston can leverage new financing methodologies, including PACE financing and CenterPoint’s energy efficiency incentive programs. The purpose of this roundtable was to explain these (and other) financing options and discuss how to promote, pilot and scale their use with all building owners in the Houston area.

OBJECTIVE

ROUNDTABLE 2: INVESTING AND FINANCING ENERGY EFFICIENCY IN BUILDINGS

1) Need simpler ways to turn disaggregated value flow into long-term aggregated cash flow.

2) Lack of sufficient broader market incentives.

3) Absence of financing and investing programs for B & C buildings.

4) Risk aversion to EEB investing and reliance on new technology/solutions.

5) Balance sheet limitations restrict capital.

THE BARRIERS

ROUNDTABLE 2: INVESTING AND FINANCING ENERGY EFFICIENCY IN BUILDINGS

CHARLENE HEYDINGER, KEEPING PACE IN TEXAS

ROUNDTABLE 3: VERIFYING VALUE AND RETURN ON INVESTMENT

Texans and Houstonians have a history and preference for privately led initiatives that achieve better and faster results at a lower cost, such as supporting new financing methods and beautifying Houston’s bayous. This roundtable engaged with building stakeholders to discuss how to assure and verify that EEB investments deliver real returns which contribute to broader aspects of market and shared value.

OBJECTIVE

ROUNDTABLE 3: VERIFYING VALUE AND RETURN ON INVESTMENT

1) Proof of results - for both justification and validation.

2) Better access to and trust in data. And improved and lower-cost data collection technology.

3) There’s a need for better Houston case studies and education on how to best use data.

4) Training and certification for operators.

THE BARRIERS

ROUNDTABLE 3: VERIFYING VALUE AND RETURN ON INVESTMENT

JONATHAN WILSON, SCHNEIDER ELECTRIC

ROUNDTABLE 4: APPROPRIATE POLICY AND REGULATION FOR ENERGY EFFICIENCY

This roundtable discussed how appropriate policies and regulation can be established in a typically non-regulated market to maintain competitiveness that will increase transparency and market activity.

OBJECTIVE

ROUNDTABLE 4: APPROPRIATE POLICY AND REGULATION FOR ENERGY EFFICIENCY

1) Little to no energy use transparency in Houston.

2) Limited energy efficiency resource standards.

3) Obstacles in applying LEED (cost, implementation, maintaining, etc).

4) Apply codes based on energy efficiency performance, not just prescriptive technologies.

5) Code compliance and enforcement.

THE BARRIERS

ROUNDTABLE 4: APPROPRIATE POLICY AND REGULATION FOR ENERGY EFFICIENCY

GAVIN DILLINGHAM, HARC

HOUSTON ENERGY EFFICIENCY IN BUILDINGS LABORATORY

PRIVATE SECTOR CALL TO ACTION

HOUSTON ENERGY EFFICIENCY IN BUILDINGS LABORATORY

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