DOE Resources Help Measure Building Energy Benchmarking Policy & Program Effectiveness

May 21, 2015

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The Energy Department has released two resources to help stakeholders analyze the energy, non-energy, and market transformation impacts of building energy benchmarking policies and programs. The first is a handbook that provides methodologies for jurisdictions to use to analyze the impact of their benchmarking policies and programs. The second resource demonstrates the methodologies using real data from New York City’s benchmarking ordinance, Local Law 84 (LL84). Building energy benchmarking is the process of measuring how efficiently a building uses energy relative to the other similar buildings over time.

The DOE Benchmarking & Transparency Policy and Program Impact Evaluation Handbook provides cost-effective, standardized analytic methods for determining gross and net energy reduction, greenhouse gas (GHG) emissions mitigation, job creation and economic growth impacts. The Handbook also provides an extensive, holistic framework for evaluating the market transformation progress of benchmarking policies. It is a “how-to” guide with clear procedures and data requirements, permitting any jurisdiction or interested party—such as consultants, researchers, or government officials—to assess benchmarking polices in a consistent manner.

DOE also sponsored the New York City Benchmarking and Transparency Policy Impact Evaluation Report, which uses the methodologies detailed in the Handbook to evaluate results to date from New York City’s benchmarking policy, LL84. The report finds that between 2010 and 2013—the first four years of LL84—buildings covered by the ordinance reduced their energy use by 5.7% and lowered their GHG emissions by 8.3%, and that the benchmarking efforts directly created 39 jobs as well another roughly 7,000 jobs created through the resulting energy-efficiency activities. These figures are particularly encouraging given that during the same period the gross domestic product in New York City grew by 4.2% and the cost of electricity fell by 8.4%; despite these trends, covered buildings still reduced their energy use. Furthermore, the report notes that awareness of building energy performance is growing in New York City, and that building energy use information is playing an increasingly important role in real estate decisions.

These encouraging results—which were derived from the methodologies outlined in the Handbook suggests that market change from  benchmarking policies and programs is underway and expected to grow. As more jurisdictions around the country recognize the value of benchmarking and use it to better understand and optimize their buildings’ energy use, they can leverage the Handbook to analyze the impact of their policies and programs.