Category: ENERGY STAR

EPA Releases Updated ENERGY STAR Scoring Model for Office, Retail, and Other Properties

Posted on by Trey Jackson

The U.S. Environmental Protection Agency (EPA) on July 15 released highly anticipated updates to its ENERGY STAR scoring model – a key federal label that rates and compares U.S. buildings’ energy performance. The scoring update includes changes advocated by The Real Estate Roundtable and other real estate organizations. 

EPA on July 17 released a 23-page presentation –  Update on the ENERGY STAR Office Model for U.S. Properties .
  • ENERGY STAR is a widely recognized, national label used as a market signal for well-managed property assets with smaller carbon footprints.  The label impacts nearly 35,000 buildings and plants nationwide, representing more than 5 billion square feet of commercial space. ( ENERGY STAR “Facts and Stats “)   
  • In a significant improvement affecting office and other property types, EPA will reintroduce a heating degree day (HDD) adjustment into the scoring process.  Including HDD in ENERGY STAR equations will result in more equitable ratings for properties in all climates.  As a result, some office buildings in colder climates will see score increases – and buildings in warmer locations will not see score decreases.  (Analysis and Key Findings from EPA’s Review of the ENERGY STAR Score Model for Office Properties, July 15) 
  • Last August, EPA announced the first updates to its ENERGY STAR office rating model in over a decade.  Initial analyses by The Roundtable’s Sustainability Policy Advisory Committee (SPAC) indicated that EPA’s equations at that time produced arbitrary scoring results.  In particular, a SPAC working group initially identified and then advocated for the result ultimately announced by EPA this week – to include the HDD scoring adjustment.  
  • Since last September, EPA has suspended certifications for office, warehouse and other property types during a “study period” to assess its scoring models with stakeholder groups.  (Roundtable Weekly, Sept. 14) 
  • The Real Estate Roundtable sent a summary of   recommended changes to EPA on Nov. 26, urging revisions to the scoring model so that buildings of all sizes located in varying climate zones across the country are rated fairly.  (Roundtable Weekly, Nov. 30)

    The Roundtable’s Sustainability Policy Advisory Committee (SPAC) is led by its Chairman, Anthony E. Malkin (Empire State Realty Trust), left, and Vice Chair Daniel Egan (Vornado Realty Trust)

     – enlarge photo –
  • “The Roundtable’s constructive engagement with the EPA over the last 10 months has resulted in a better outcome on an issue with massive national implications for our industry,” said Anthony E. Malkin, Chairman and CEO of Empire State Realty Trust, and Chairman of The Roundtable’s Sustainability Policy Advisory Committee (SPAC).  “We commend EPA for acting on our feedback and their transparency and candor, which led to an improved set of ENERGY STAR scoring models.  In particular, the agency took the corrective action to account fully for climate variations so that all types of commercial buildings – no matter where they are located, in hot or cold temperature zones – are on a level playing field as owners respond to investor, tenant, and other market demands to attain ENERGY STAR ratings for their assets.”
  • On July 17, EPA released a 23-page presentation –  Update on the ENERGY STAR Office Model for U.S. Properties.     
  • On July 22, updated office property scores will be live in EPA’s Portfolio Manager, an online tool used to measure and track energy and water consumption, as well as greenhouse gas emissions.  EPA advises stakeholders to download their current scores before July 21, as Portfolio Manager will be unavailable that day to allow for the release of the updated score model.  
  • On July 31, EPA will reinstate ENERGY STAR certification for office buildings, after its suspension since last September. (EPA’s ENERGY STAR resources)

Malkin also noted, “The Roundtable’s work with EPA is far from finished. We are in the midst of active engagement to ensure that federal-level building energy data, on which ENERGY STAR is based, is robust and reliable; that EPA continues its recognition programs for tenants to label high-performance leased spaces; and that the EPA provides critically important federal guidance to help synchronize emerging state and local mandates that address buildings and climate change.  The ENERGY STAR whole-building rating program is now back on track, providing The Roundtable with the policy foundation we need to pursue other important objectives on SPAC’s agenda.”  

Roundtable Submits Recommendations to Improve ENERGY STAR Scoring Models; EPA Seeks Additional Feedback from Building Owners

Posted on by Trey Jackson

The Real Estate Roundtable on Nov. 26 sent recommendations to the U.S. Environmental Protection Agency (EPA) to improve the agency’s ENERGY STAR scoring methods, which rate a building’s energy efficiency performance.  (Roundtable Letter and Recommendations)

The  Real Estate Roundtable on Nov. 26 sent recommendations to the U.S. Environmental Protection Agency (EPA) to improve the agency’s ENERGY STAR scoring methods, which rate a building’s energy efficiency performance.  (Roundtable Letter and  Recommendations)

  • Nearly 35,000 buildings and plants – representing more than 5 billion square feet of commercial space – have earned EPA’s ENERGY STAR.  Pension funds and other institutional investors frequently rely on the label as a market signal for well-managed assets with smaller carbon footprints.  Business tenants also seek to locate in ENERGY STAR-certified buildings to lower their utility expenses.
  • Last August, EPA announced the first updates to its ENERGY STAR scoring models in over a decade.  Initial analyses by The Roundtable’s Sustainability Policy Advisory Committee (SPAC) and other stakeholders indicated that EPA’s new models produced arbitrary scoring results.  Offices over 500,000 square feet in size, and buildings located in colder climates requiring more heating throughout the year, appear to have sustained the most significant ENERGY STAR score declines.
  • Roundtable President and CEO Jeffrey DeBoer in October told the Wall Street Journal, “Revisions to ENERGY STAR are much needed and very important.  However, to be truly effective the data sources and projections relied upon in the revision must be transparent and reflect industry leading practices.” (Wall Street Journal, Oct. 9)
  • The Roundtable’s Nov. 26 summary and  recommended changes to EPA’s scoring methods seek to ensure a level-playing field for the ENERGY STAR label – so that buildings of all sizes located in varying climate zones across the country are rated fairly.  
  • EPA has requested additional data from owners and managers to test its methods on specific buildings and portfolios.  Stakeholders interested in working with the agency to assess how particular properties have fared since new ENERGY STAR scores were released last August should consult EPA’s website, “How to Respond to Data Requests in Portfolio Manager.” 

EPA plans to wrap-up its review period and resume issuing ENERGY STAR building labels by next spring.

EPA to Commence Review Period of New ENERGY STAR Building Scores; Office, Industrial Certifications Temporarily Suspended Pending Further Analysis

Posted on by Trey Jackson

Last month the Environmental Protection Agency (EPA) announced the first updates to its ENERGY STAR scoring models in over a decade, as the agency moved from 2003 to 2012 data for its foundation to rate buildings.  (See Roundtable Weekly, Aug. 17.)  EPA announced yesterday that it will commence a “review period” to solicit stakeholder feedback on these recent ENERGY STAR score updates.  Certifications for office, industrial, and certain other building categories will be temporarily suspended during this review period.

EPA announced yesterday that it will commence a “review period” to solicit stakeholder feedback on recent ENERGY STAR score updates.  Certifications for office, industrial, and certain other building categories will be temporarily suspended during this review period.

  • ENERGY STAR is the key federal label that rates and compares U.S. buildings’ energy performance.  Currently, EPA lists 34,625 buildings and plants, representing more than 5 billion square feet of commercial space across the country, as ENERGY STAR certified.  Through initial analyses of Sustainability Policy Advisory Committee (SPAC) membership, The Roundtable  learned that the application of the new 2012 data appears to result in materially different outcomes on scores depending upon building size, geography, and source of heating, and these outcomes were inconsistent.  RER on behalf of the industry highlighted the issues to the EPA, and the EPA responded with the announced review period.
  •  “The review period will help us ensure that the models are working as intended to deliver energy performance metrics that empower … the business case for owning and operating energy-efficient buildings,” the agency stated.  During the review period, EPA and real estate stakeholders will have the opportunity to assess variables such as a building’s size, location, and fuel mix, to fully consider if these and other factors have had an indiscriminate impact on the new scoring models.
  • “We commend EPA in taking this step toward transparent decision making so our industry can recommend any necessary, data-driven changes to ENERGY STAR’s updated scoring models ,” said Roundtable President and CEO, Jeffrey D. DeBoer.  “The Roundtable and our Sustainability Policy Advisory Committee look forward to partnering with EPA during its review period.”
  • Other federal agencies, state and local governments, and non-governmental organizations frequently rely on ENERGY STAR’s tools and rating system for their own programs related to building energy efficiency.  EPA advised it will “coordinate with program implementers and policymakers that leverage the ENERGY STAR score on the appropriate use of the new metrics during the review period.”

The review period and temporary suspension of ENERGY STAR building certifications do not apply to multifamily, data center, hospital, senior care communities, and manufacturing facilities, according to EPA.

 

EPA Gathers Feedback from Building Owners During “Review Period” for New ENERGY STAR Scoring Models

Posted on by Trey Jackson

The Environmental Protection Agency continues the temporary suspension of ENERGY STAR building certifications, after assessing feedback from a number of building owners and stakeholders. Last month, the EPA announced it would commence a “review period” to solicit building owners feedback on recent ENERGY STAR scoring models, in response to the new model announced in August, which would unfairly downgrade some already certified ENERGY STAR buildings. (Roundtable Weekly, September 14)

The EPA continues the temporary suspension of ENERGY STAR building certifications, after assessing feedback from a number of building owners and stakeholders.

  • ENERGY STAR is the key federal label that rates and compares U.S. buildings’ energy performance.  Currently, EPA lists 34,625 buildings and plants, representing more than 5 billion square feet of commercial space across the country, as ENERGY STAR certified.  Through initial analyses of Sustainability Policy Advisory Committee (SPAC) membership, The Roundtable learned that the application of the new 2012 data appears to result in materially different outcomes on scores depending upon building size, geography, and source of heating, and these outcomes were inconsistent.  RER on behalf of the industry highlighted the issues to the EPA, and the EPA responded with the announced review period.
  • “Revisions to ENERGY STAR are much needed and very important,” said Roundtable President and CEO, Jeffrey DeBoer. “However, to be truly effective the data sources and projections relied upon in the revision must be transparent and reflect industry leading practices. (Wall Street Journal, Oct. 9)
  • During the review period, EPA and real estate stakeholders have the opportunity to assess variables such as a building’s size, location, and fuel mix, to fully consider if these and other factors have had an indiscriminate impact on the new scoring models.  “EPA is looking into concerns raised by industry that score changes for some buildings are different than expected,” said an EPA spokeswoman. (Wall Street Journal, Oct. 9)

“We commend EPA in taking this step toward transparent decision making, and are focused intently on assisting during this review period,” said DeBoer. The Roundtable’s Sustainability Policy Advisory Committee will continue working with the EPA during the remainder of the review period.

New ENERGY STAR Building Scores Available August 27

Posted on by Trey Jackson

The Environmental Protection Agency (EPA) announced this week that long-anticipated, updated ENERGY STAR scores that rate and compare U.S. buildings’ energy performance will be available on Monday, August 27.  [EPA website]

The EPA currently lists 34,226 commercial buildings and plants located in all 50 states as ENERGY STAR-labeled – representing 4.95 trillion square feet of space.

  • EPA currently lists 34,226 commercial buildings and plants located in all 50 states as ENERGY STAR-labeled – representing 4.95 billion square feet of space.  This number of “top of class” assets is expected to decrease, as average building “scores” will drop in light of updates to metrics in ENERGY STAR’s Portfolio Manager energy usage benchmarking tool.   
  • For most types of buildings, an ENERGY STAR score (registered on a scale of 1 to 100) is based on the Commercial Buildings Energy Consumption Survey (CBECS), conducted periodically by the U.S. Department of Energy. The latest CBECS data, which forms the base for the new EPA scores, became available in 2016.  Prior to the update, for years ENERGY STAR scores have reflected data collected in 2003. 
  • EPA’s move to update its building scores has been in the works for several years and has been a continual focus of The Roundtable’s Sustainability Policy Advisory Committee (SPAC).  Many Roundtable member companies own and/or operate ENERGY STAR properties, and market their ratings to attract an increasingly Millennial-dominated workforce.  Pension funds and other institutional investors also rely on the label as a signal for well-managed assets with smaller carbon footprints.   

    EPA’s annual Top Cities list shows which metro areas were home to the  most ENERGY STAR certified buildings  in the previous year.

  • “We have to face the facts: ENERGY STAR building certification will likely be much harder to achieve,” said Tony Malkin, Chairman and CEO of Empire State Realty Trust, and chairman of The Roundtable’s SPAC.  “The U.S. commercial real estate industry has made huge strides, and those strides are reflected in the new data set about to be deployed by the EPA.  ENERGY STAR has always been a mark of highest achievement.  With more efficient buildings in the data set, there will be a reduction in the number of buildings which qualify on a relative basis.”  
  • “There are new technologies and practices, as well as inducements, such as ENERGY STAR for Tenants on which RER worked hard to put in place, which justify capital investments in buildings to reach even higher levels of performance, encourage greater collaboration between commercial landlords and tenants, and create thousands of well-paying retrofit construction jobs that cannot be exported,” Malkin continued.  (See Roundtable Weekly, June 15, 2018.)      
  • EPA reports that Portfolio Manager will be down on Sunday, August 26. New ENERGY STAR building scores, with updated Portfolio Manager metrics, will be available on Monday, August 27.  EPA encourages ENERGY STAR users to documents their current scores now – and their new scores starting August 27.  

EPA’s recommendations for how to prepare for the upcoming changes and webinars about the new metrics are available online.

 

EPA Recognizes Roundtable Members with “ENERGY STAR for Tenants” Award for High Performance Office Spaces

Posted on by Trey Jackson

The Environmental Protection Agency (EPA) on June 12 announced the first-ever federal government awards for energy efficiency in leased office spaces. Many Roundtable members and their tenants are recognized among the award’s inaugural winners.  (EPA list of tenants and landlords) 

SPAC Chairman Tony Malkin (Chairman and CEO,  Empire State Realty Trust ) stated, “This is a great example of the Roundtable at work. We took best industry practice, formulated policy around it, and worked with staff and members of Congress to develop legislation for the good of the economy, our industry and the environment.”

  • Originally envisioned by The Roundtable’s Sustainability Policy Advisory Committee (SPAC), EPA’s ENERGY STAR for Tenants program has been long-supported by the industry.  After the enactment of the 2015 “Tenant Star” law, EPA was tasked with piloting the branding program for energy-efficient tenant spaces that met certain design criteria.  (Roundtable Weekly, June 30, 2017) 
  • SPAC Chairman Tony Malkin (Chairman and CEO, Empire State Realty Trust) stated, “This is a great example of the Roundtable at work.  We took best industry practice, formulated policy around it, and worked with staff and members of Congress to develop legislation for the good of the economy, our industry and the environment.  At the same time, our Sustainability committee worked with the Department of Energy and the EPA within their structures, rules, and regulations for years to create a new label for energy efficient tenant spaces, to complement existing programs that award whole-building efficiency.  This voluntary program will lead to a significant increase in cost-saving leased spaces as companies vie for EPA’s tenant label in the future.” 
  • Roundtable President and CEO Jeffrey DeBoer noted the national value of the new federal recognition program. “Without any tax credit or subsidy, EPA’s new seal of approval can motivate tenants and landlords across the country to demonstrate their commitment to energy efficiency in leased commercial building space.  As EPA’s new office space program expands, CRE leaders  will have more opportunities to distinguish their buildings for investors, tenants, and the Millennial workforce who place a premium on sustainable assets.”  
  • To earn the label, applicants must verify how they drive energy efficiency in five key areas in the design and construction of high performance leased spaces.     (EPA Documents and Tools for Tenants) 
  • As funding for the federal ENERGY STAR program also affects the new EPA Charter Tenant program, a Senate Appropriations subcommittee on Tuesday affirmed the Trump Administration’s recommendation to continue ENERGY STAR program funding for FY2019 (starting October 1, 2018).  For the agency’s programs overall, the Senate panel recommended that appropriations be maintained at the status quo for the next fiscal year.  (The Hill, June 12) 

The 2018 ENERGY STAR Charter Tenants program was a focus during today’s SPAC’s meeting in Washington, which included presentations from EPA and other key federal agency officials.

Real Estate Roundtable Applauds House Vote on Bill to Spur Energy Efficiency in Leased Commercial Space

Posted on by Trey Jackson
(WASHINGTON, D.C.) — The Real Estate Roundtable commends today’s House passage of “Tenant Star” legislation that will foster energy efficiency in leased commercial space, thus addressing a critical piece of the energy efficiency equation in commercial buildings, and helping to curb greenhouse gases while boosting innovation and the U.S. economy.

With Tenant Star already cleared by the Senate on March 27, the legislation can now be sent to the White House for President Obama’s anticipated signature.

     The bill authorizes the U.S. Environmental Protection Agency (EPA) and Department of Energy (DOE) to create a voluntary “Tenant Star” program modeled after the highly successful, market-based ENERGY STAR program. Once it is signed into law — and implementing guidelines are written — “Tenant Star” will provide national branding recognition to property owners and tenant teams that design, construct and operate highly energy efficient spaces within commercial buildings.

     The House-passed bill tracks legislation long championed by Senators Rob Portman (R-OH), Jeanne Shaheen (D-NH), Kelly Ayotte (R-NH) and Michael Bennet (D-CO)  in the upper chamber (“Tenant Star” also cleared the Senate as an amendment to Keystone XL pipeline legislation earlier this year).  The key House sponsors, Reps. David McKinley (R-WV) and Peter Welch (D-VT), previously won overwhelming House passage (375-36) in March 2014 and pursued approval again today to ensure that both sides of Capitol Hill passed “Tenant Star” in the same congressional session.

     Empire State Realty Trust (NYSE: ESRT) Chairman, President and CEO Anthony E. Malkin, who chairs The Roundtable’s Sustainability Policy Advisory Committee (SPAC), said, “Tenant Star is a voluntary program — with no federal mandate or cost — that will encourage commercial tenants and landlords to design and construct leased spaces in office buildings to achieve high levels of energy performance.”

     With office tenants often accounting for over 50 percent of the energy consumed in an office building, he explained, “Tenant Star will encourage office tenants to incorporate into the construction of their leased premises common sense, cost-effective measures that yield excellent returns on investment over short pay-back periods.” 

     Added Malkin, “Tenants will favor landlords whose buildings can support such installations. Broad adoption will save businesses billions of dollars on energy costs in the coming years. The reduced consumption will afford savings in future capital outlays for energy generation and related infrastructure.”

     Real Estate Roundtable President and CEO Jeffrey D. DeBoer said, “‘Tenant Star’ is a ‘triple win’ that will spur the economy by creating jobs, enhancing energy security, and preserving our environment by cutting greenhouse gases. It will boost innovation in the real estate sector and go a long way toward ensuring that our country’s commercial and multifamily stock — and the separate spaces leased within them — are at the vanguard of advances in technology and energy conservation. The ‘Tenant Star’ program will allow building owners to attract financiers, investors, and tenants in the increasingly competitive national and global markets for real estate.”

 

     The Real Estate Roundtable supports legislation that encourages energy efficiency and energy production as components of an “all of the above” national energy policy.

“We look forward to our continued work with Congress and the Obama Administration to ultimately sign ‘Tenant Star’ into law,” DeBoer said. “Meanwhile, we continue working to advance broadly supported measures that  strive to balance economic growth with complementary polices to foster environmental stewardship.” 

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About The Real Estate Roundtable: The Real Estate Roundtable brings together leaders of the nation’s publicly-held and privately owned real estate ownership, development, lending and management firms with the leaders of national real estate trade associations to jointly address key national policy issues relating to real estate and the overall economy. Collectively, Roundtable members’ portfolios contain over 12 billion square feet of office, retail and industrial properties valued at more than $1 trillion; over 1.5 million apartment units; and in excess of 2.5 million hotel rooms.  Participating trade associations represent more than 1.5 million people involved in virtually every aspect of the real estate business.
 
About Empire State Realty Trust:  Empire State Realty Trust, Inc. (NYSE: ESRT), a leading real estate investment trust (REIT), owns, manages, operates, acquires and repositions office and retail properties in Manhattan and the greater New York metropolitan area, including the Empire State Building, the world’s most famous office building. Headquartered in New York City, the company’s office and retail portfolio covers 10.0 million rentable square feet, as of Dec. 31, 2014, consisting of 9.3 million rentable square feet in 14 office properties, including nine in Manhattan, three in Fairfield County, Conn., and two in Westchester County, N.Y.; and approximately 728,000 rentable square feet in the retail portfolio.