Energy Code Options for Existing Buildings

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1 RDH Building Science Inc Energy Code Options for Existing Buildings ASHRAE BC CHAPTER DINNER JANUARY 11, 2017 JAMES MONTGOMERY, PHD RDH BUILDING SCIENCE INC 1 of 33 Agenda Project Overview ASHRAE 100 Analysis and Findings Policy Options Discussion 2 of 33 James Montgomery, PhD 1

2 RDH Building Science Inc Project Overview 3 of 33 The Opportunity The existing building sector represents a massive opportunity to reduce the Nation s energy use & cut greenhouse gas emissions 80% of the buildings in 2030 already exist today Buildings in the US account for ~40% of total primary energy use and ~40% of total GHG emissions Residential, commercial, and industrial buildings in Vancouver accounted for 1,463,000 tco2e in 2014 James Montgomery, PhD 4 of 33 2

3 Purpose BC Building Code and Vancouver Building Bylaw currently apply to existing buildings at time of building permit ASHRAE includes provisions related to existing buildings NECB not intended to apply to existing buildings, except additions Enforcement across the Province inconsistent VBBL addresses whole-building energy efficiency with menu system Energy Efficiency Act triggered for equipment replacement Project Aim: conduct analysis and develop a White Paper with options for the Province to enact energy efficiency requirements for existing buildings at the time of permit 5of 33 Methodology Review existing efficiency standards and codes to select short-list for further analysis Conduct market research and provide an overview of the existing regulatory framework to serve as a baseline for recommendations Perform technical and economic analysis of three, short-listed standards Determine complementary initiatives that would benefit from new energy efficiency requirements Develop conclusions and recommendations on applying codes and standards to existing buildings 6of 33 James Montgomery, PhD 3

4 Codes/Regulations/Standards Reviewed ASHRAE ASHRAE NECB-2011 VBBL Part 11 Existing Buildings California Title 24, Part 6 Energy Code BOMA BESt LEED - EBOM City of Atlanta Land Development Code, Part II, Section Austin Energy Conservation Audit & Disclosure Ordinance (ECAD) City of Berkeley Building Energy Saving Ordinance Boston Energy Assessment and Retro-commissioning Requirements (Component of the Building Energy Reporting and Disclosure Regulation) NYC Local Law 87 - Audits and Retro-commissioning NYC Local Law 88 - Lighting Upgrades and Sub-metering in Tenant Spaces San Francisco Commercial Buildings Energy Performance Ordinance 7of 33 Shortlisted Standards ASHRAE , as it is currently regulated under the BCBC and VBBL and includes provisions for existing building alterations. Applies to individual systems (building envelope, lighting, other electrical, mechanical) NECB 2015, recently published, with the likelihood of being amended to enable application to existing buildings. ASHRAE , written for the specific purpose of improving energy efficiency in existing buildings. Applicable to whole buildings. 8of 33 James Montgomery, PhD 4

5 RDH Building Science Inc ASHRAE of 33 ASHRAE General Description: Buildings meet a target energy-use intensity based on bills, or implement EEMs based on ASHRAE Level 2 Energy Audit EUI reflects 75th percentile performance for similar building type (measured by CBECS) Scope: Residential, non-residential; whole-building performance, system specific EEMs Size requirement: >5,000ft2 Compliance duration: 5yrs EUI outcome in CZ 4C: Office kwh/m2 10 of 33 James Montgomery, PhD 5

6 Energy Benchmarking Example (Seattle) 50 th %: 155 kwh/m 2 75 th %: 133 kwh/m 2 11 of 33 ASHRAE Compliance Flow Chart Retro-commissioning M&V Energy Target Energy Audit and Action Plan 12 of 33 James Montgomery, PhD 6

7 RDH Building Science Inc Technical and Economic Analysis 13 of 33 Methodology 14 of 33 James Montgomery, PhD 7

8 Annual Permits Approximately 7,000 building permits per year Survey of AHJs used to determine subset of permits that are relevant to energy efficiency upgrades It is expected that only a proportion (~30%) of those permits are related to major energy consuming systems 15 of 33 Permits Breakdown 98% 91% Study focuses on Small Projects (<$250,000), MURB, Office, Trade and Service, and Hotel, Restaurant 16 of 33 James Montgomery, PhD 8

9 Building Archetypes Building Type Building Area (m 2 ) Baseline EUI (kwh/m 2 ) ASHRAE (kwh/m 2 ) Small Project 300 N/A N/A Office 3, MURB (Large - electric) 7, MURB (Small electric) 2, MURB (Large - hydronic) 7, MURB (Small hydronic) 2, Retail Restaurant 581 1, Archetype buildings used for analysis of potential costs and energy savings of implementation 17 of 33 Building Archetypes Building Type Total number of permits Applicability of permits to different building systems estimated in consultation with local AHJs Revealed that 3/10 jurisdictions enforce ASHRAE 90.1 for existing buildings, 2/10 do not enforce Lighting Mechanical Envelope DHW Small Projects 1,693 85% 15% 5% 25% Office 82 85% 15% 5% 25% MURB (Large - electric) 33 0% 45% 5% 50% MURB (Small - electric) 62 0% 45% 5% 50% MURB (Large - hydronic) 20 0% 45% 5% 50% MURB (Small - hydronic) 38 0% 45% 5% 50% Retail 67 85% 15% 5% 25% Restaurant 47 85% 15% 5% 25% Rows can add to >100% due to overlapping permits 18 of 33 James Montgomery, PhD 9

10 Costs and Savings Estimated Energy Conservation Measure (ECM) costs and energy savings determined from past studies Main source: Green Retrofit Report prepared in 2011 for City of Vancouver Modeling of archetype existing buildings in Vancouver Incremental costs and energy savings for individual ECMs ECMs for specific archetypes and systems used to evaluate compliance options for ASHRAE , ASHRAE , and NECB 2015 Results extrapolated to province-wide implementation using historic permit information 19 of 33 ECMs Typical ECMs Glazing replacement Envelope upgrade Lighting upgrade (reduction in LPD) Add lighting controls Replace MUA unit Boiler replacement Add VAV to fans Upgrade to low flow plumbing fixtures Retro-commissioning 20 of 33 James Montgomery, PhD 10

11 Incremental Capital Costs Segment TOTAL Number of Permits Number of Energy Related Permits Small Project Office Building MURB Trade and Restaurant, Hotel 5, ,808 1, ,043 Total Permit Value ($ Thousand) Average Value per Permit Existing Permits $248,060 $355,799 $135,885 $252,567 $135,424 $1,233,408 Increment for ASHRAE Increment for ASHRAE Increment for NECB 2015 $45,765 $17,816 $11,523 $5,813 $80,916 13% 13% 5% 4% 7% $31,065 $17,401 $1,798 $1,980 $2,412 $54,656 13% 5% 1% 1% 2% 4% $22,933 $20,148 $1,828 $2,131 $2,397 $49,547 9% 6% 1% 1% 2% 4% Existing Permits $43,959 $1,303,293 $264,883 $1,132,587 $868,103 $177,853 Increment for ASHRAE Increment for ASHRAE Increment for NECB 2015 N/A N/A $558,108 $115,686 $171,982 $123,683 $269,866 43% 44% 15% 14% 36% $18,349 $212,211 $11,539 $29,549 $51,315 $26,801 42% 16% 5% 3% 6% 15% $13,546 $245,709 $11,868 $31,813 $50,995 $24,198 31% 19% 5% 3% 6% 14% 21 of 33 Annual Energy and GHG Savings ASHRAE of 33 James Montgomery, PhD 11

12 Annual Energy and GHG Savings ASHRAE of 33 Annual Energy and GHG Savings NECB of 33 James Montgomery, PhD 12

13 RDH Building Science Inc Single Year Costs and Savings for Each Code ASHRAE NECB 2015 ASHRAE ASHRAE & ASHRAE ALL ALL EXCL. SMALL PROJECTS ALL INCREMENTAL CAPITAL COST $55 MILLION (4%) $50 MILLION (4%) $81 MILLION (7%) $112 MILLION (8%) NET PRESENT VALUE $15 MILLION $12 MILLION $76 MILLION $83 MILLION ELECTRICITY SAVINGS 63 GWH 54 GWH 62 GWH 98 GWH NG SAVINGS 0.7 GWH/YR (2,500 GJ/YR) 2.1 GWH/YR (7,600 GJ/YR) 69 GWH/YR (248,000 GJ/YR) 64 GWH/YR (230,000 GJ/YR) 765 T/YR 914 T/YR 13 KT/YR 12.5 KT/YR APPLICABLE PERMITS GHG SAVINGS The analysis combining ASHRAE and ASHRAE assumes that ASHRAE applies to all large permits and ASHRAE applies to all small projects. This results in a reduction in GHG savings compared to ASHRAE alone due to small project lighting upgrades. 25 of 33 Energy Code Options 26 of 33 James Montgomery, PhD 13

14 Policy Options Option 1 Province-wide enforcement of the BC Building Code (BCBC) to existing buildings ASHRAE 90.1 or NECB enforced for existing buildings ASHRAE 100 as a flexibility option (outcome-based) Option 1b Add retro-commissioning requirement Option 2 New, outcome based standard that deliver the highest economic returns for society, with substantial energy efficiency and emission reduction outcomes ASHRAE 100 phased in for all large building retrofits ASHRAE 90.1 or NECB for small building retrofits 27 of 33 Energy Savings Option 1 Tier 1 ( ): ASHRAE applies to all energy related permits. Tier 2 ( ): ASHRAE applies to all energy related permits for Small Projects. ASHRAE applies to 90% of energy related permits and ASHRAE applies to the remaining 10% of energy related permits for all other segments. 28 of 33 James Montgomery, PhD 14

15 Energy Savings Option 1b Tier 1 ( ) ASHRAE applies to all energy related permits. Tier 2 ( ) ASHRAE applies to all energy related permits for all projects. Retro-commissioning is required as a component of all large projects. 29 of 33 Energy Savings Option 2 Tier 1 ( ): ASHRAE applies to all energy related permits. Tier 2 ( ): ASHRAE applies to all energy related permits for Small Projects. ASHRAE Alternate EUIs (40 th percentile lowest consumption) applies to all energy related permits for all other segments. Tier 3 ( ): ASHRAE applies to all energy related permits for Small Projects. ASHRAE (25 th percentile lowest consumption) applies to all energy related permits for all other segments. 30 of 33 James Montgomery, PhD 15

16 Cumulative Savings with Policy Options Cumulative Annual Electricity Savings OPTION 1 OPTION 1B OPTION 2 in ,800 GWh/yr 2,900 GWh/yr 3,000 GWh/yr in ,400 GWh/yr 7,100 GWh/yr 7,400 GWh/yr Cumulative Annual Natural Gas Savings in 2025 in GWh/yr (277,000 GJ/yr) 270 GWh/yr (970,000 GJ/yr) 215 GWh/yr (775,000 GJ/yr) 880 GWh/yr (3,170,000 GJ/yr) 470 GWh/yr (2,400,000 GJ/yr) 2,200 GWh/yr (7,920,000 GJ/yr) Cumulative Annual GHG Savings Discounted Cumulative ICC (2017 $) Discounted Cumulative NPV (2017 $) in Mt/yr 0.06 Mt/yr 0.11 Mt/yr in Mt/yr 0.20 Mt/yr 0.47 Mt/yr in 2025 $405 million $405 million $483 million in 2030 $560 million $560 million $764 million in 2025 $123 million $138 million $234 million in 2030 $175 million $205 million $439 31million of 33 Implementation Timeline Year Stage Option 1 Actions Option 2 Actions 2016 Policy Analysis and Stakeholder Engagement 2017 Development of Regulatory Roadmap Review ASHRAE and compare with NECB Prepare regulatory language for 2017 and complete consultations. Tier 1 Effective Date Prepare regulatory language for 2017 and complete consultations. Develop training on ASHRAE 100 flexibility provisions (audits). Tier 1 Effective Date Checklist to track compliance approach. Checklist to track compliance approach Voluntary Market Transformation Programs 2021 Voluntary Market Transformation Programs Review NECB Promote use of ASHRAE 100 as flexibility measure. Review ASHRAE Review NECB Prepare regulatory language and conduct consultations. Develop training for new standards. Confirm ASHRAE 100 EUI table. Provide training on ASHRAE 100 flexibility provisions. Confirm ASHRAE 100 EUI table. Provide incentives for owners to seek full ASHRAE 100 compliance at 40 th percentile. Review ASHRAE Prepare regulatory language and conduct consultations. Develop training for new standards and full EUI requirements under ASHRAE 100 (40 th percentile) Comprehensive Standards Tier 2 Effective Date Tier 2 Effective Date 2027 (or earlier) Incentives for ASHRAE 100 flexibility Incentives for ASHRAE th percentile provision. EUIs. Deep Energy Retrofits Tier 3 Effective Date Tier 3 Effective Date 32 of 33 James Montgomery, PhD 16

17 Questions JAMES MONTGOMERY, PHD rdh.com buildingsciencelabs.com 33 of 33 James Montgomery, PhD 17