DUNSKY ENERGY CONSULTING REPORT in Collaboration with VERMONT ENERGY INVESTMENT CORPORATION

Total Page:16

File Type:pdf, Size:1020Kb

DUNSKY ENERGY CONSULTING REPORT in Collaboration with VERMONT ENERGY INVESTMENT CORPORATION VALUING BUILDING ENERGY EFFICIENCY THROUGH DISCLOSURE AND UPGRADE POLICIES A ROADMAP FOR THE NORTHEAST U.S. A DUNSKY ENERGY CONSULTING REPORT in collaboration with VERMONT ENERGY INVESTMENT CORPORATION Philippe Dunsky, President, DEC Jeff Lindberg, Consultant, DEC Eminé Piyalé-Sheard, Senior Consultant, DEC Richard Faesy, Senior Project Manager, VEIC For NORTHEAST ENERGY EFFICIENCY PARTNERSHIPS under the direction of Ed Schmidt, Director of Regional Initiatives NOVEMBER 2009 DUNSKY ENERGY CONSULTING Dunsky Energy Consulting provides top-level analysis, strategic counsel and design of highly- effective energy efficiency and renewable energy programs and policies. Our clientele is comprised of dozens of leading utilities, government agencies and non-profit organizations throughout North America. Known for its experience, integrity, and dedication to quality and customer satisfaction, DEC is committed to developing balanced strategies for a sustainable energy future. For more information, please visit www.dunsky.ca. AUTHORS Philippe Dunsky has nearly 20 years of experience in the fields of energy efficiency, renewable energy and climate change strategies. President of Dunsky Energy Consulting, he has played a key role in planning energy policies, designing residential and commercial sector programs, advising on cost-effectiveness frameworks, assessing best practices, and providing staff training, among others. In addition to his consulting practice, Philippe is a frequent speaker at industry conferences, has provided expert testimony at numerous regulatory proceedings, and sits on the boards of a variety of private and public sector funds dedicated to energy sustainability. Jeff Lindberg is specialized in environmental policy and energy efficiency program design and analysis. His most recent recent work includes research on effective administrative models for ratepayer-funded energy efficiency programs; developing cost-benefit frameworks for multi- fuels and fuel-switching programs; benchmarking of leading energy efficiency portfolios and residential programs; and design of low-income energy efficiency programs. He holds a Master’s in Environmental Sciences. Eminé Piyale-Sheard has over 20 years of experience assisting the business sector in management, marketing and technology development, with significant emphasis on environmental and energy sectors. She combines on-the-ground experience such as implementation of energy savings and environmental management plans with significant experience conducting market studies and providing strategic counsel to utilities’ energy efficiency programs. She holds an MBA as well as a Master’s in Environmental Management. Richard Faesy is the Energy Efficiency Division Director in Planning and Evaluation Services with the Vermont Energy Investment Corporation. As a Certified Energy Rater, LEED Accredited Professional, and resource economist with more than 25 years of experience, he specializes in residential buildings, technologies and markets, with a focus on home energy ratings, energy efficiency financing, green building and effective program design and implementation. DUNSKY ENERGY CONSULTING – November 2009 Valuing Building Energy Efficiency Through Disclosure And Upgrade Policies i | ACKNOWLEDGEMENTS With sincere gratitude NEEP and the DUNSKY ENERGY CONSULTING team wish to thank those who generously funded this project, including: • The Overbrook Foundation • The Energy Foundation • The Chorus Foundation • Underwriters of the NEEP Building Energy Codes Project • The utilities of the Massachusetts RCS working group NEEP and the DUNSKY ENERGY CONSULTING team wish to extend a special acknowledgment to the Building Energy Rating Project Advisory Committee of key stakeholders, whose input and diversity of opinion proved vital to the development of the final report. Although not all members of the Advisory Committee necessarily support or agree with all analyses, conclusions and recommendations, and similarly should neither explicitly nor implicitly be interpreted to advocate for any of the content, the insights, comments and expertise of each are deeply appreciated. They include: • Ann Berwick, Undersecretary for Energy, COMMONWEALTH OF MASSACHUSETTS • Jeff Harris, Vice President – Programs, ALLIANCE TO SAVE ENERGY • Jean Lupinacci, Director - ENERGY STAR Commercial and Industrial, U.S. EPA • Julie Hawkins, Project Manager, D&R International, on behalf of the U.S. DOE • Paul Eldrenkamp, President, BYGGMEISTER INC. • Seth Kaplan, Vice President for Climate Advocacy, CONSERVATION LAW FOUNDATION • Lane Burt, Manager, Building Energy Policy, NATURAL RESOURCES DEFENSE COUNCIL • Blair Hamilton, Policy Director, VERMONT ENERGY INVESTMENT CORPORATION • Sue Coakley, Executive Director, NORTHEAST ENERGY EFFICIENCY PARTNERSHIPS Of the Advisory Committee members we wish to specifically acknowledge the US Environmental Protection Agency, the US Department of Energy and Vermont Energy Investment Corporation for their in-kind funding via their time, expertise and research materials. Similarly, we appreciate the participation and input of observers to the Advisory Committee, including Cliff Majersik, Executive Director of the Institute for Market Transformation, and Mike Winka, Director of the Office of Clean Energy, New Jersey Board of Public Utilities. We would equally like to thank members of the policy community and jurisdictional representatives who contributed to the international policy review portion of this report. Finally, NEEP staff, in managing the project and carefully reviewing and commenting on all materials, proved invaluable to the process as a whole. They include: • Jim O’Reilly, Director of Public Policy • Ed Schmidt, Director of Regional Initiatives • Carolyn Sarno, Senior Program Manager for High Performance Buildings • Isaac Elnecave, Program Manager, Building Energy Codes and Appliance Standards DUNSKY ENERGY CONSULTING remains solely responsible for any errors or omissions. DUNSKY ENERGY CONSULTING – November 2009 Valuing Building Energy Efficiency Through Disclosure And Upgrade Policies ii | [page intentionally left blank] DUNSKY ENERGY CONSULTING – November 2009 Valuing Building Energy Efficiency Through Disclosure And Upgrade Policies iii | CONTENTS A ROADMAP FOR THE NORTHEAST ........................................................................ 2 Executive Summary ............................................................................................ 3 Report Objectives ............................................................................................... 7 Value Proposition ............................................................................................... 9 Concepts and Options ....................................................................................... 15 Experience and Lessons Learned ....................................................................... 20 Policies for the Northeast.................................................................................. 26 Roadmap .......................................................................................................... 41 Note: Limitations and Caveats ........................................................................... 46 BACKGROUNDER: CASE STUDIES AND EMERGING POLICIES .................................. 50 Introduction ............................................................................................................... 51 International Policies ................................................................................................. 53 Emerging U.S. Policies ................................................................................................ 73 Early Results ............................................................................................................... 84 Keys to Success .......................................................................................................... 86 BACKGROUNDER: ISSUES AND OPTIONS FOR DISCLOSURE POLICIEs ............... 88 Approach .................................................................................................................... 89 Rating Systems ........................................................................................................... 92 Trigger Points ........................................................................................................... 111 Rater Infrastructure ................................................................................................. 113 Phase-In Strategy ..................................................................................................... 114 BACKGROUNDER: ISSUES AND OPTIONS FOR UPGRADE POLICIES ........................ 116 Keys to Success (Upgrades) ...................................................................................... 117 In Principle – Issues and Options ............................................................................. 118 In Practice – Options for the N.E. ............................................................................. 124 Administrative Needs ............................................................................................... 127 Implementation Options .......................................................................................... 129 Acronyms and Endnotes ..................................................................................... 130 DUNSKY ENERGY CONSULTING – November 2009 Valuing Building Energy Efficiency
Recommended publications
  • Star Ratings: Your Guide to Ongoing Savings (PDF)
    the benefi ts of an energy effi cient home STAR R ATINGS Your guide to ongoing power savings. 2 STAR RATINGS | Your guide to ongoing power savings Star rating schemes allow us to compare the operating cost and environmental performance of similar products, whether they are ABEL fridges or houses. This allows us to make better choices and see L the potential ongoing future costs and greenhouse gas impacts our decisions may have. ATING R NERGY E HOME APPLIANCE ENERGY RATING LABEL Household appliances - an increasing contributor to energy use HOME APPLIANCE Major household appliances in Australia are a large source of energy use, and account for as much as 40 per cent of residential greenhouse gas emissions. The following chart shows how home appliances, particularly televisions, have contributed to increased energy use in Australian homes. Annual Energy Consumption 1990 2000 2010 2020* 0 5 10 15 20 25 30 35 40 45 50 *Estimated Kilowatt hours (kWh) - millions LEGEND Entertainment Fridges & Other white Televisions and small Other standby Lighting Miscellaneous freezers goods electrical Source: Energy Efficient Strategies (2008) – GRATTAN Institute 2011 STAR RATINGS | Your guide to ongoing power savings 3 HOME APPLIANCE Using the Energy Rating Label The energy efficiency or operating cost of a new home appliance may not be your most important buying consideration but with electricity prices on the rise it should become a bigger priority. Energy efficiency is basically using less electricity and gas to produce the same level of performance, comfort and convenience. E While your checklist of requirements when buying an appliance may include price, NERGY features, brand and size, using the Energy Rating Label to help finalise your choice makes good sense.
    [Show full text]
  • Energy Efficiency Rating and House Price in the Act
    ★ ★ ★ ★ ★ ENERGY EFFICIENCY RATING AND HOUSE PRICE IN THE ACT National Framework for Energy Efficiency ★ ★ ★ ★ ★ ENERGY EFFICIENCY RATING AND HOUSE PRICE IN THE ACT Modelling the relationship of energy efficiency attributes to house price: the case of detached houses sold in the Australian Capital Territory in 2005 and 2006. EER STUDY Published by the Department of the Environment, Water, Heritage and the Arts. © Commonwealth of Australia 2008 ISBN : 978-0-642-55422-2 This work is copyright. it may be reproduced in whole or part for study or training purposes, subject to the inclusion of an acknowledgement of the source and no commercial usage or sale. Reproduction for purposes other than those listed above requires the written permission from the Department of the Environment, Water, Heritage and the Arts (DEWHA). Requests and enquiries concerning reproduction and rights should be addressed to: The Communications Director Department of the Environment, Water, Heritage and the Arts GPO Box 787 CANBERRA ACT 2601 The statistical report was prepared by the Australian Bureau of Statistics for DEWHA. The views and opinions expressed in this publication are those of the authors and do not necessarily reflect those of the Australian Government or the Minister for the Environment, Water, Heritage and the Arts. While reasonable efforts have been made to ensure that the contents of this publication are factually correct, the Commonwealth does not accept responsibility for the accuracy or completeness of the contents, and shall not be liable for any loss or damage that may be occasioned directly or indirectly through the use of, or reliance on, the contents of this publication.
    [Show full text]
  • Rating Existing Housing Stock for Energy Performance - Development of an Australian National Scheme
    TIMOTHY O’LEARY Rating existing housing stock for energy performance - development of an Australian national scheme Timothy O’Leary1, Martin Belusko2 and Frank Bruno2 (1) School of Natural and Built Environments(NBE), University of South Australia (UNISA), City East Campus, Adelaide, SA 5000, Australia. [email protected] (2) The Barbara Hardy Institute, School of Engineering , University of South Australia, Mawson Lakes Campus, Adelaide, Australia. Abstract The mandatory disclosure of residential building energy, greenhouse and water performance has been a key goal expressed in Australian government building energy and carbon emission reduction targets. A major issue for the Australian real estate industry since a proposed scheme was mooted in 2011 is what will mandatory disclosure look like? This paper provides an analysis of home energy efficiency rating and the current Residential Building Mandatory Disclosure (RBMD) landscape in Australia at both the Commonwealth and State/Territory level. The release of a Regulatory Impact Statement (RIS) including an assessment of the costs and benefits of various options for a national scheme provides a measure of likely regulation and practices around house sale and lease transactions. Some five years on since the introduction of more stringent energy efficiency performance regulations for new housing and the declaration by an Australian federal government that states and territories adopt energy performance disclosure mechanisms for older houses at point of sale or lease, issues with implementation and the perception of stakeholders and the tools that may be employed are investigated as are wider energy efficiency and sustainability issues to do with the nation’s housing stock.
    [Show full text]
  • A Critical Review of Home Energy Rating in Australia
    ANZAScA 2000: Proceedings of the 34th Conference of the Australia and New Zealand Architectural Science Association, December 1-3, 2000 A CRITICAL REVIEW OF HOME ENERGY RATING IN AUSTRALIA T.J. Williamson School of Architecture, Landscape Architecture & Urban Design Adelaide University Australia ABSTRACT The design of houses to suite the Australian environment has been a preoccupation from the first day that Europeans set foot on the shores of Botany Bay. During the mid to late 1970s the issue of energy resource use was added to the design criteria. Efforts in Australia to encourage energy-efficient housing as a public policy can be traced to this time and provided an impetus for increased research, development and promotion. Emphasizing energy savings in the home was an integral part of the first public policy programmes. Since the late 1980s and early 1990s public policy on energy-efficient housing has been motivated, at least in the rhetoric of Governments, by another concern. In late 1992 Australia signed the UN Framework Convention on Climate Change and the Council of Australian Governments endorsed a National Greenhouse Response Strategy. As one response action of this strategy the Australian and New Zealand Minerals and Energy Council agreed to the development of a Nationwide House Energy Rating Scheme (NatHERS) and to examine the adoption of energy performance standards for new houses. This paper traces the history of the development of NatHERS and its implementation. The paper deals critically with the shortcomings of NatHERS. Referring to limited research data, the fundamental objectives to reduce household energy consumption and reduce greenhouse gas emission are questioned.
    [Show full text]
  • Your 6-Star Guide to Building an Energy Efficient Home About SEA
    Your 6-Star Guide to building an energy efficient home About SEA SEA is a chamber of businesses variously promoting, developing and/or adopting sustainable energy technologies and services that minimise the use of energy through sustainable energy practices and maximise the use of energy from sustainable sources. SEA is building relationships with businesses that aspire to be more sustainable in their own energy use, are providing the commercial solution to climate change through their products and services, or indirectly through their actions adopting more sustainable energy practices in their own business. Many businesses are acting to support the development of the best policy outcomes for the industry by becoming SEA members. SEA is the only business peak body actively supporting substantive action on sustainable energy in every region and in all sectors of Australia’s economy. © Copyright May 2011 Contents Your 6-Star Guide to building an energy efficient home Foreword 2 What is 6-Star? 4 Benefits and costs of 6-Star 6 How do you achieve a 6-Star home? 10 What is the Assessment Process? 12 Is your builder 6-Star ready? 13 Debunking the myths 14 Quick answers to frequently asked questions 16 Further information 18 References 19 Notes 20 1 Foreword Your 6-Star Guide to building an energy efficient home This booklet explains specific ways in which to improve the energy efficiency of your new home. If you are thinking about building a new home, affordability is without a doubt a key concern. However, affordability is not just about the initial costs of construction.
    [Show full text]
  • House Rating Schemes
    Green Energy and Technology House Rating Schemes From Energy to Comfort Base Bearbeitet von Maria Kordjamshidi 1. Auflage 2010. Buch. x, 146 S. Hardcover ISBN 978 3 642 15789 9 Format (B x L): 15,5 x 23,5 cm Gewicht: 431 g Weitere Fachgebiete > Technik > Baukonstruktion, Baufachmaterialien > Bauökologie, Baubiologie, Bauphysik, Bauchemie Zu Inhaltsverzeichnis schnell und portofrei erhältlich bei Die Online-Fachbuchhandlung beck-shop.de ist spezialisiert auf Fachbücher, insbesondere Recht, Steuern und Wirtschaft. Im Sortiment finden Sie alle Medien (Bücher, Zeitschriften, CDs, eBooks, etc.) aller Verlage. Ergänzt wird das Programm durch Services wie Neuerscheinungsdienst oder Zusammenstellungen von Büchern zu Sonderpreisen. Der Shop führt mehr als 8 Millionen Produkte. Chapter 2 House Rating Schemes This chapter presents selected House Energy Rating Systems in diverse contexts and explores the different aspects of a House Energy Rating Scheme (HERS). It demonstrates that there are inadequacies in the current rating schemes which this book attempts to address. 2.1 House Energy Rating Schemes (HERS) The energy rating of a house is a standard measure that allows the energy efficiency of new or existing houses to be evaluated, in order that dwellings may be compared. The comparison is commonly performed on the basis of the energy requirements for the heating and cooling of indoor spaces. Some of the HERS include all energy requirements, such as energy for water heating, washing machines and cooking. Energy is not the only criterion for house evaluation in all rating schemes. Criteria are determined on the basis of the purpose of the rating. Other criteria that have been used as important parameters in building evaluation systems are the production of greenhouse gas (GHG) emissions, indoor environment quality, cost efficiency and thermal comfort.
    [Show full text]
  • Energy Rating News August 2018
    ENERGY ENERGY RATING NEWSLETTER, August 2018 Introduction Building houses that provide comfort, without needing large quantities of conventional energy, is becoming increasingly important. This is due to growing evidence that climate change will bring a variety of adverse events to Australia, and the concern relating to continuity and affordability of conventional energy sources. Houses that can provide affordable comfort during extreme events are being recognised as highly valuable - and the work of energy assessors provides the basis for the recognition of that value. Both householders and builders rely on accurate assessments to see that they are delivering or receiving good value in their new or renovated dwelling. Since accuracy and transparency are important to the market, CSIRO is developing a method to automatically identify and address anomalies in assessments (see article on Sherlock), and also to provide access to the data that we gather from ratings. This method can help us to understand how ratings can better assist the market to deliver quality, comfortable housing for Australians. Comfortable, affordable housing is the theme for this issue of Energy Ratings – happy reading! Contents A consolidated Australian energy database – valuable insights for industry and governments .................. 2 Successful Australian Residential Energy Rating conference 2018 ............................................................... 3 Impact analysis of thermal comfort on residential energy use ....................................................................
    [Show full text]
  • Australia's Approach to Energy Efficiency and the Building Code
    4,159 / Berry, Marker & Harrington Australia’s approach to energy efficiency and the building code Mr Stephen Berry, Dr Tony Marker and Mr Philip Harrington, Australian Greenhouse Office 1 . S Y N O P S I S Australia is developing a comprehensive program of voluntary and mandatory measures to address building energy efficiency and greenhouse gas emissions. 2 . A B S T R A C T The energy and greenhouse efficiency of buildings in Australia has been subject to considerable debate and action over the last ten years. In March 1999, the Australian Government announced it had reached agreement with the building industry to reduce the energy consumption and related greenhouse gas emissions from the operation of buildings. This paper outlines the research into the energy and greenhouse performance of Australian buildings that lead to the agreement between Government and industry and the action plans designed to achieve the greenhouse abatement. Voluntary best practice initiatives and consumer demand strategies, integral to this holistic program, are noted, as are details of the partnership approach taken by the Australian Government. The paper concludes with details of the building code change process underway in Australia, and the research into existing prescriptive building energy requirements that has influenced the performance approach adopted. 3 . A U S T R A L I A ' S E N E R G Y & G R E E N H O U S E S I T UA T I O N Australia is a strongly carbon based economy, with extensive coal and natural gas reserves, and a small but rapidly depleting oil reserve.
    [Show full text]
  • Industry Adaption to Nathers 6 Star Energy Regulations and Energy Performance Disclosure Models for Housing
    Industry adaption to NatHERs 6 star energy regulations and energy performance disclosure models for housing This thesis is submitted in fulfilment of the requirements for the degree of Doctor of Philosophy Timothy Redmond O’Leary Master of Architecture Bachelor of Science Honours (Quantity Surveying) Diploma in Construction Economics School of Engineering Division of Information Technology, Engineering and the Environment University of South Australia December 2016 Statement of Authorship I declare that: • this thesis presents work carried out by myself and does not incorporate without acknowledgment any material previously submitted for a degree or diploma in any university; • to the best of my knowledge it does not contain any materials previously published or written by another person except where due reference is made in the text; and all substantive contributions by others to the work presented, including jointly authored publications, is clearly acknowledged. Timothy Redmond O’Leary, December 2016 ii Acknowledgements I am deeply thankful for the advice, feedback, guidance and encouragement from my principal supervisor Dr Martin Belusko and also my associate supervisor Professor Frank Bruno. This thesis has benefited enormously from their patience, honest critique and expertise. Their numerous and generous interactions have been instrumental in shaping this research, developing the arguments, and in communicating the results. I must acknowledge and thank Dr. David Whaley of the University of South Australia for his help and support as a collaborator and co-author of some of the research papers drawn from this thesis, and in particular, for his assistance in converting raw Lochiel Park and Mawson Lakes monitoring data into meaningful information and graphical representations.
    [Show full text]
  • Australian Residential Energy Standard Assessment and Rating Framework – a National Response for 2010/2011 Frameworks
    Australian Residential Energy Standard Assessment and Rating framework – A National response for 2010/2011 frameworks By Timothy O’Leary, M. Arch. BSc. Surv. MRICS Institute of Sustainable Systems and Technologies(ISST) University of South Australia, North Terrace, Adelaide 5000 Email: [email protected] Abstract Keywords: energy efficiency, house ratings, carbon reduction The National Strategy on Energy Efficiency(NSEE) is designed to substantially improve minimum standards for energy efficiency in both residential and commercial buildings and accelerate the introduction of new technologies through improving regulatory processes and addressing barriers to the uptake of new energy-efficient products. This paper provides critical analysis of a national response to public discussion papers around the framework with a focus on residential class buildings. The core analysis covers in excess of 85 responses across a breadth of housing industry stakeholders published by the Senior Officials group on Energy Efficiency in 2010. Observations on housing energy performance issues together with technical and evidenced based housing energy efficiency data provide a common theme to the discussions in the paper under the headings of; The house energy rating schemes, metrics and tools, assessors, governance, training and accreditation issues. Overall sustainability, incorporating embodied energy, lifecycle of materials, water use and waste treatment. Accounting for climate variation, climate data and future climate change scenarios Economic evaluation, existing housing stock, consumer behaviour, appliance use, etc. The analysis reveals a general support for the Building code of Australia (BCA) as the principle mechanism for implementation though with debate and disagreement on the various software tools and ratings systems currently in use.
    [Show full text]
  • TRANSFORMING the MARKET for ENERGY EFFICIENCY in MINNEAPOLIS: Recommendations for Residential Energy Efficiency Rating and Disclosure
    TRANSFORMING THE MARKET FOR ENERGY EFFICIENCY IN MINNEAPOLIS: Recommendations for Residential Energy Efficiency Rating and Disclosure SEPTEMBER 2018 CARL NELSON, ISAAC SMITH CENTER FOR ENERGY AND ENVIRONMENT Contents Executive Summary ....................................................................................................................................... 3 Benefits of Energy Disclosure for Existing Homes ........................................................................................ 3 The Potential for Efficiency in Older Homes in Minneapolis ........................................................................ 5 Policy Framework for Residential Disclosure ................................................................................................ 6 Disclosure Policy Options .......................................................................................................................... 7 Design Considerations for Residential Energy Disclosure ............................................................................. 7 Which rating type is preferable: an asset rating or an operational rating?.............................................. 8 When should energy disclosure happen? ................................................................................................. 8 Will disclosure lead to higher prices for more efficient homes? .............................................................. 9 Is a disclosure policy affordable? ...........................................................................................................
    [Show full text]
  • NABERS Nathers Acthers Energuide CRESNET HERS Rating Certificate Label Score Class Measured Operational As- Set Calc
    NABERS NatHERS ACThers EnerGuide CRESNET HERS rating certificate label score class measured operational as- set calculated conditioned space unconditioned space total energy delivered energy gross floor area net floor area leasable floor area REALpac Energy Benchmarking Energimaerkning DPE Energieausweis BER DEC Leadership in Energy and Environmental Design Energy Performance of Buildings Dire Comparing Building Energy Performance Measurement net BRE Environmental Assessment Method MOHURD SCE EPC label A framework for international energy efficiency assessment systems energy consumption energy type build- ing floor area building type energy uses performance scale Residential Energy Consumption Survey CEN International Organization for Standards REALpac Energy Benchmarking Energimaerkning BER David Leipziger rating certificate En- ergieausweis score use Institute for Market Transformation BER DEC calculated conditioned space gross floor area net floor area NABERS NatHERS ACThers EnerGuide Ener- gieausweis Leadership in Energy and Environmental Design Energy Performance of Buildings Directive BRE Environmen- tal Assessment Method MOHURD SCE EPC HERS EN- ERGY STAR leasable floor area unconditioned space total energy delivered energy CRESNET HERS measured oper- ational asset calculated EnerGuide CEN International Or- ganization for Standards NatHERS ACThers energy uses performance scale gross floor area Residential Energy Con- sumption Survey net floor area DPE BER conditioned space Comparing Building Energy Performance Measurement A framework
    [Show full text]