1. City Initiatives for Energy
Efficiency
Cliff Majersik
Executive Director, Institute for Market Transformation
cliff@imt.org
@IMTCliff

2. Link between Codes and Energy Performance Policy
Energy Codes
Construction
Operation
Renovation
time
Energy Performance Policy
Operation

4. Added Value of ENERGY STAR-Labeled
Commercial Buildings in the U.S. Market
Wiley et al 2010*
30%
Fuerst & McAllister 2009/11
Jackson 2009
25%
Pivo & Fischer 2010*
AVERAGE
PREMIUM
Eicholtz et al 2010*
20%
15%
10%
5%
0%
RENTAL PRICE
SALE PRICE
OCCUPANCY RATE

5. 5

6. Rating and disclosure drives demand and competition

7. A Virtuous Cycle
When performance is
measured, performance improves.
When performance is measured and
reported back, the rate of
improvement accelerates.
7

8. U.S. Benchmarking Policy Landscape

9. Covered Properties
New York City
Buildings 50k SF+
~16,000 buildings, 2.5 billion SF
San Francisco
Buildings 10k SF+
~2,700 buildings, 205 million SF

10. NUMBER OF PROPERTIES COVERED ANNUALLY
Each
year, existing
policies will
impact more
than
51,000
properties
Boston
1,600
Chicago
3,500
New York City
15,300
Philadelphia
1,400
Seattle
3,600
Washington State
4,600
Austin
2,800
San Francisco
2,700
Minneapolis
625
Washington, DC
2,000
California
13,600
Source: IMT

11. BUILDING AREA (IN SQUARE FEET) COVERED ANNUALLY
Totaling
approximately
5.8 billion SF
of floor space in
major real estate
markets
Chicago
900 million SF
Boston
250 million SF
Philadelphia
244.5 million SF
Seattle
295 million SF
Washington State
247 million SF
Austin
113 million SF
California
347 million SF
Minneapolis
110 million SF
Washington, DC
357 million SF
New York City
2.8 billion SF
San Francisco
205 million SF
Source: IMT

12. Early Energy Intensity Findings in New York City
The poorest performing
buildings use 4 to 8
times the energy of the
highest performing
buildings.
By improving the
poor performers
citywide energy
reductions of 18%
to 31% could be
achieved.

13. Small Businesses and Job Creation
First report documenting job growth
from energy benchmarking policies
 Profiles of small businesses adding staff and
increasing client bases
 KEY TAKEAWAY: Financing not the key barrier.
Primary issue is demand.
13

14. Small Businesses and Job Creation
“As a Silicon Valley venture capitalist … I tell our green startup companies to focus on San
Francisco or New York City. That’s where the action is going to be.”
- Elton Sherwin, venture capitalist, senior managing director, Ridgewood Capital
“The Greener Greater Buildings Plan has spurred the New York Market to interest and activity
around energy efficiency. Over the past year, we have begun working with over 75 million
square feet of real estate in New York and over 400 new clients.”
- Lindsay Napor McLean, COO, Ecological
“When an owner sees a benchmarking score that is lower than expected, they’re a little more
receptive to improvements to bring the score up, which in turn lowers their utility costs.”
- Kevin Dingle, president, Sustaining Structures
14

15. Takeaways
 Boldest action is in cities
- Federal outlook remains uncertain; state and local action to continue
 Leading cities are looking beyond disclosure
- Integrated policy frameworks emerging with focus on poor performers
 Support from business sector is critical

16. Atlanta
Boston
Chicago
Denver
Houston
Kansas City, MO
Los Angeles
Orlando
Philadelphia
Salt Lake City

17. Thank you!
Cliff Majersik
Executive Director, Institute for Market Transformation
Washington, DC
cliff@imt.org
@IMTCliff

18. Small Businesses and Job Creation
Policy Benefits
Audin, Lindsay. “Finding Your Best Energy Opportunity.”
Building Operating Management. December, 2011.
18

19. Jobs and Economic Growth
Jobs Created From Benchmarking Policy
70,000
59,620
Net new jobs
60,000
52,975
46,165
50,000
A national rating and
disclosure policy
would create 59,000
net jobs by 2020.
38,513
40,000
30,989
30,000
23,713
17,098
20,000
11,855
10,000 7,106
2012
2014
2016
2018
2020
Source: IMT and PERI. “Analysis of Job Creation and Energy Savings from Building Energy Rating and Disclosure Policy.”

20. Early Energy Intensity Findings in New York City
Energy intensity is
greater in newer
buildings than older
buildings.
ENERGY STAR
scores are higher in
older buildings than
newer buildings.

21. Building owners often can’t get energy data
for their buildings
Barriers:
•Separately-metered tenants
•Lack of clear procedures
•Utility policies and state
privacy laws
•Lack of standardization

22. Building
Owner
Building Physical
and Operating
Characteristics
Energy
Consumption
Tenants
Bill Payer(s)

23. The Data Access and Transparency Alliance (DATA) is a
collaborative effort led by the commercial real estate
industry and green building organizations to provide
building operators with energy consumption data to
advance energy-efficiency and energy cost savings in
buildings.
More information can be found:
http://www.energydataalliance.org/

25. Partners of Green Lease Library
http://www.greenleaselibrary.com/

26. Green Lease Leaders
Recognition Program
Green Lease Leaders is a recognition program
developed by
www.GreenLeaseLibrary.com, with support
from the Institute for Market Transformation
(IMT) and the Department of Energy’s Better
Buildings Alliance.
The Green Lease Leader designation
recognizes companies or broker teams that
have successfully implemented green lease
language into their new or existing leases.
The website and application process will be
launching this January 2014.