Energize Denver. Unlocking Opportunity in Denver. Public Input Session April 25, 2016

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1 Energize Denver Unlocking Opportunity in Denver Public Input Session April 25, 2016

2 How are we doing? #9 on ENERGY STAR ranking of cities #10 on ACEEE ranking of cities: #1 on local government action #16 on buildings policy, our lowest rank #7 on utilities programs due to Xcel Policy

3 Cities Implementing Best Practices Policy Benchmarking and Transparency (ENERGY STAR Reporting) Retuning/Retrocommissioning (Rcx) Requirement Energy Audit Requirement Lighting Upgrades Cities with Policy in Place Atlanta, Austin, Berkley, Boston, Boulder, Cambridge, Chicago, Kansas City, Minneapolis, Montgomery County (MD), NYC, Philadelphia, Portland, Seattle, San Francisco, Washington DC Boston, Boulder, NYC, and San Francisco Atlanta, Austin, Berkeley, Boston, Boulder, NYC, and San Francisco New York City

4 Energy Efficiency Unlocks Savings - Lighting upgrades - Tune-ups (RcX) - Efficient heating/ac - Upgraded controls Source: United States Building Energy Efficiency Retrofits: Market Sizing and Financing Models. Rockefeller Foundation and Deutsche Bank Group. March Numbers scaled to City and County of Denver.

5 Local Climate Impacts

6 Denver Climate Goals and Emissions Sources Climate Goals: 1990 levels of emissions by % reduction in emissions by 2050 Transportation 27% Street Lights 1% Single Family Residential Buildings 14% 2012 Denver Emissions by Sector (thousand mt-co2e) Waste 1% Commercial and Multifamily Buildings 57%

7 Total Energy Consumption by Sector and Fuel * (mmbtu) *As Reported by Xcel Energy Annual Consumption Report for Denver

8 Who Benefits? Building Owners Invest $100,000 in improved energy efficiency Lower operating costs: $40,000 in annual energy savings Increase Net Operating Income: $40,000 increase in income = A More Valuable Asset (NPV of $40,000 per year is $424,000) Studies by CoStar verify this.

9 Who Benefits? Businesses Attract business to Denver ENERGY STAR = 35% more efficient $.50/sf savings Source: USEPA and Xcel Energy

10 Who Benefits? A Globally Competitive City Energy efficient commercial buildings makes Denver more attractive to global firms Sustainability helped win Panasonic, It made it a slam dunk. Millennials want sustainability. Attracting millennials could attract business. Energy efficiency can help us beat our top competitor cities such as Salt Lake City and Dallas

11 Energize Denver Task Force Goal Reduce energy consumption of commercial and multifamily buildings by 10% by the end of 2020 and double that in the following decade Energy Usage in Commercial and Multifamily Buildings 38.3 million MMBTU Taskforce Goal is to Reduce Energy Consumption this Much by 2020 x 10% = 3.8 million MMBTU Double the 2020 goal by 2030 means another 3.8 million MMBTU reduction in energy consumption by commercial and multi-family buildings by

12 ENERGIZE DENVER TASK FORCE WORK TO DATE

13 Energize Denver Timeline Benchmarking Program, launch, trainings, case studies, Lease for Efficiency Challenge Announcement of process to develop Energize Denver program to meet efficiency goals. Energize Denver Task Force Meetings 1-5 July 2014-present December 2015 January 21 April Public Input Session and Energize Denver Task Force Meetings 6-7 Development of an ordinance based on Task Force recommendations. Ordinance introduced into city council committee Ordinance passes out of committee April 8 May 18th 2016 Public Input Session: April 25th Task Force Meeting 6: April 29 th Task Force Meeting 7: May 18 th May-June 2016 June 2016 July 2016 Ordinance passed by City Council August 2016 Implementation begins September 2016

14 Energy Efficiency Measures and Payback Heating, Ventilation, Cooling (HVAC) System Upgrades New Boiler New Chiller/AC New Air Handling Unit High-Efficiency Motors Optimized Motor Sizing Heat Pumps Controls upgrades Pneumatic to electronic Upgrades to electronic controls Matching Supply to Demand Variable Frequency Drives Variable-Air-Volume Systems, Demand Control Ventilation Scheduling Taking advantage of natural conditions Air economizer Heat recovery Lighting Upgrades and Controls Tuning Controls (Re-commissioning) Taskforce 20 year payback 15 year payback 3 year payback 0.2 year payback

15 Municipal Buildings Executive Order 123 requires all municipal buildings to Certify their Energy Star (score of 75 or higher) annually, if they qualify Incorporate LEED EB O+M into all operations Achieve 20% energy savings by 2020 (across city building portfolio)

16 Policies 1 and 2 Benchmarking and Transparency Annually Municipal, Commercial and Multi-family Buildings >50,000 sq ft 2017, >25,000 sq ft 2018 Policy 1: Annual Benchmarking ENERGY STAR score (or EUI if can t get ENERGY STAR score) Policy 2: Transparency Transparency Exemptions One year delay in transparency Confidential business practices 16 other cities have these policies. They have seen 2-3% annual energy savings, free tool, 4-5 hours to set up an account, 1-2 hours of staff time to enter data annually.

17 High Performers are Celebrated and Exempted from Further Requirements High Performer Exemption from Further Requirements: Certification ENERGY STAR or LEED certified in last 5-7 years. Celebrate High Performers! ENERGY STAR certification costs $1-3k depending on building size, LEED somewhat more

18 Policies 3, 4 and 5 Flexible options for improving efficiency Complete once every 5-7-years (14-20% of buildings each year; starting 2019/2020; phase in by size, and/or random order.) Policy 3: Performance Improve EUI by 12-15% from a 2016 baseline. (EUI weather adjusted) Policy 4: Retrocommissioning Building tune-up. RCx study plus implementation. -or- Base building systems only in multi-family -or- Policy 5: Audit and Upgrade Owner completes an audit and implements measures from the audit with <3 year payback OR implements other upgrades with similar savings RcX has 16% avg. energy savings, ~$.75/sq ft,.02-2 yr payback, Xcel pays 75% up to $25k. Many Xcel incentives available for other options

19 Summary Schedule Commercial buildings >100,000 sq ft Commercial buildings >50,000 sq ft Multi-family >50,000 sq ft Commercial 25,000-50,000 sq ft Benchmarking 3, 4, 5, 2018? and Transparency 2017? Benchmarking Transparency? 3, 4, 5 Benchmarking Transparency? 3, 4, 5 Education and training Benchmarking Transparency? 3, 4?, 5 Multi-family 25,000-50,000 sq ft Education and training Benchmarking Transparency? 3, 4?, 5 < 25,000 None None None None

20 Estimate of number of covered buildings Square footage Number of Buildings % of Buildings % of Square Footage 25,000-50, % 11% 50, % 76% The buildings are spread all over Denver only 5% of buildings and 10% of the square footage is in the central business district.

21 Policy Draft Outline Annually (Municipal, Commercial and Multifamily Buildings >50,000 sq ft 2017, >25,000 sq ft 2018) Complete once every 5-7-years (14-20% of buildings each year; starting 2019/2020; phase in by size, and/or random.) Step 0: Municipal Buildings Lead by Example Committed to benchmarking annually and 20% energy savings by 2020 in all City buildings. Policy 1: Annual Benchmarking ENERGY STAR score (or EUI if can t get ENERGY STAR score) Policy 3: Performance Improve EUI by 12-15% from a 2016 baseline. (EUI would be adjusted for weather) Policy 4: Retrocommissioning (building tune-up, RCx study plus implementation) Base building systems only in multi-family Policy 2: Transparency Transparency Exemptions One year delay in transparency Confidential business practices High Performer Exemption: Certification ENERGY STAR or LEED EBOM certified in last 5-7 years. -or- -and- -or- -or- Policy 5: Audit and Upgrade Owner completes an audit of base building systems and implements measures from the audit with <3 year payback OR Owner completes other upgrades recommended by the audit to achieve similar savings Notes on Energy Savings/Cost/ Payback/Incentives 2-3% annual energy savings, free tool, 1-2 hours of staff time to enter data annually. ES certification costs $1-3k, LEED somewhat more 12-15% savings, cost varies, many Xcel incentives available 16% avg. energy savings, ~$.75/sq ft,.02-2 yr payback, Xcel pays 75% up to $25k Savings vary by building, roughly similar to policy 3, 3 year payback, many Xcel incentives available

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