February 11, 2009

GOING GREEN THROUGH BENCHMARKING

Benchmarking your building is like having your doctor check your blood pressure. It tells you how you measure up against your energy management goals, so you know how to make improvements.

Commercial building owners and facilities managers around the nation are hearing the call to “go green.” In Northern California, Pacific Gas & Electricity (PG&E) is providing customers with a free Automated Benchmarking Service that works in conjunction with an online tool created by the Environmental Protection Agency’s (EPA) to track energy use. Now customers can easily get information that can help them save energy and money and protect the environment.

To create the most effective conservation plans for a building, facility managers need to know how well it performs currently, and how it compares to optimal targets or “best-in-class” buildings. PG&E’s customers who enroll in Automated Benchmarking Service get easy access to the benefits of ENERGY STAR® Portfolio Manager by authorizing PG&E to upload data automatically each month. Information is seamlessly entered into the online tool and participants receive a baseline and monthly update. This makes it easy to track water and energy use, calculate energy intensity, and track changes over time. Building owners can then better manage investment priorities and more precisely target buildings for efficiency improvement. It also permits them to monitor greenhouse gas emissions.

In 1999, the EPA launched a nationwide benchmarking tool called ENERGY STAR Portfolio Manager. Based upon energy and water usage data building managers enter, it rates the energy efficiency of a single building or an entire portfolio of buildings. Customers receive a score on a scale of 1-100, which reflects a building’s performance against comparable buildings nationwide. Buildings that earn a score of over 75 (the 75th percentile) are awarded an ENERGY STAR label. Building operators receive a plaque that can be proudly displayed in main entrances or lobbies as an emblem of their commitment to conserving energy.

SAVE ENERGY AND MONEY
ENERGY STAR buildings are a proven market differentiator. According to Andrew Florance1, president and CEO of CoStar, an information provider to the real estate industry, “Green buildings are clearly achieving higher rents and occupancy, they have lower operating costs, and they’re achieving higher sale prices.”

Commercial Real Estate properties that earn the ENERGY STAR label save $0.50 per square foot, on average2. Additionally, they typically consume 35% less energy, have a higher occupancy/tenant retention rate, and a higher asset value upon sale.

Currently, Portfolio Manager supports over a dozen space use types, including many commercial buildings and wastewater treatment facilities, and the list continues to expand. The tool allows for changes in space use over time, and can accommodate various multi-use facilities.(The ENERGY STAR site includes separate rating systems for industrial buildings.)

1 "CoStar Study Finds Energy Star, LEED Bldgs. Outperform Peers.” March 26, 2008. Accessed at http://www.costar.com/News/Article.aspx?id=D968F1E0DCF73712B03A099E0E99C679/.


2 “Summary of the Financial Benefits of ENERGY STAR Labeled Office Buildings." Kats and Perlman, 2006. Accessed at http://www.energystar.gov/ia/partners/publications/pubdocs/Summary_of_the_Financial_Benefits_23June06_FINAL.pdf.

MEET STATE AND INDUSTRY MANDATES
In the ten years since it was introduced, Portfolio Manager has become an industry standard, with over 8 billion square feet and 60,000 buildings rated to date. Many state and industry initiatives, including Assembly Bill 32 and California’s Green Building Initiative, rely upon Portfolio Manager Benchmarking. Notably, Assembly Bill 1103 requires owners of all non-residential facilities being sold, financed or leased after January 1, 2010 to disclose the ENERGY STAR Portfolio Manager benchmark score. Customers can also earn up to 15 points toward LEED certification based on their benchmark score.

LET PG&E HELP
PG&E’s free Automated Benchmarking Service gives customers an easy way to upload their monthly billing and usage data to Portfolio Manager. We also offer our trade allies workshops where they can learn to help customers create accounts. For more information on how you can partner with PG&E to increase your building’s efficiency, reduce your greenhouse gas emissions, and meet your energy management goals, visit http://http//www.pge.com/benchmarking.

Christine Tomeo for PG&E