Energy and Climate Legislation

and Your Business:COMPLIANCE and Opportunities

Helping people achieve very energy efficient buildings

aka “Title 24”

Increasing stringency: 2011/2014/ …

Residential: Net Zero 2020

Non-Res: Net Zero 2030

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

1. Residential

2. Non-Residential

LEED Systems

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

LEED v3 2009 - EBOM

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

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

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!

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

AB1103: Disclosure Form

www.energy.ca.gov/ab1103/documents/index.html

AB1103 – Disclosure FormExample:

AB1103 – Disclosure FormExample:

AB1103 – Disclosure FormExample:

How improve your building performance?

Benchmark Maintenance Retro-commissioning No-Cost and Low-Cost Measures Plan: mid & long term capital

improvements Benchmark: continuous monitoring!!

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

Financial Aid

What’s Next in Green?

Site

Water

Energy

Health

Materials

Equity

Beauty

Buildings

Neighborhoods

Cities

Societies

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

Questions?

Helping people achieve very energy efficient buildings

Beth Brummitt 619-531-1126 www.brummitt.com

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

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

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