Tag: ENERGY STAR

EPA Releases ENERGY STAR Guidance on Building Operations Impacted by COVID-19

Posted on by Trey Jackson

The U.S. Environmental Protection Agency (EPA) announced ENERGY STAR program guidance this week to reflect changes in building operations due to the COVID-19 pandemic. The guidance was developed after EPA sought input from The Roundtable’s Sustainability Policy Committee Advisory Committee (SPAC).

  • The EPA guidance – “Has COVID-19 affected ENERGY STAR certification?” – impacts real estate industry practices regarding the web-based “Portfolio Manager” tool used by more than 450,000 properties (or nearly 45% of U.S. commercial building space) to measure, benchmark, and track energy, water, and waste management in buildings. “Portfolio Manager” is a voluntary platform at the federal level for private sector buildings although a number of state and local laws mandate its use in major markets.  
  • EPA explained that building owners and managers should update Portfolio Manager “use details” to reflect changes in occupancy and operations that may have occurred since the start of the pandemic – for both the numbers of workers in a building and the asset’s weekly operating hours. (Point #1 in EPA’s guidance)  The agency also provided practical instructions on how to update such “worker numbers” and “hours of operation” details in the Portfolio Manager tool.
  • When merged with data on a building’s actual energy consumption, these “use details” are key variables to determine a 1-100 ENERGY STAR rating that allow investors, tenants, regulators, and other audiences to assess an asset’s energy performance compared to like-kind buildings.
  • EPA staff sought input on these matters at SPAC’s “virtual meeting” on June 12, which was held in conjunction with The Roundtable’s remote Annual Meeting (Roundtable Weekly,  June 12).  SPAC members were surveyed for their recommendations about how ENERGY STAR should address changes in building operations during the pandemic. The committee’s preferred option is now reflected in EPA’s latest guidance. 
  • EPA plans to issue additional guidance (expected in September) to advise owners and managers on how to apply for ENERGY STAR certifications that may be awarded to buildings in 2020. (Point #3 in EPA’s guidance) The key clarification in this week’s announcement is that updating “use detail” data to reflect COVID-era operations is prerequisite for the ultimate ENERGY STAR “label,” which may be granted for a building that ranks “75” or higher on EPA’s scale.
  • This week’s guidance is the latest example of longstanding cooperation between the ENERGY STAR program and SPAC.  It follows collaborations to update the technical models that EPA currently uses to “score” buildings  (Roundtable Weekly, July 19, 2019). SPAC also assisted the agency with developing the “ENERGY STAR Tenant Space” program to recognize high performance design and construction of leased office.  (Roundtable Weekly, June 15, 2018) 
  • In related news, EPA opened its process for 2021 ENERGY STAR awards this week.  Applications must be submitted by December 9, 2020 and can be downloaded here.

SPAC is led by Chairman Anthony E. Malkin (Chairman, President, and CEO, Empire State Realty Trust) and Vice Chairman Daniel Egan (Senior Vice President, Energy & Sustainability, Vornado Realty Trust).

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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)

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  • “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.”