Governments are best positioned to create a common market-based currency for building energy performance. Recognizing this, some local governments have moved to encourage or require benchmarking and performance information disclosure in their own portfolio of buildings and in private real estate markets. State and local governments can start by benchmarking a sample of their own buildings, using the results to develop a more encompassing policy that requires all public buildings to be benchmarked at least annually. Governments can also reach private markets with mandatory benchmarking and disclosure policies and voluntary public-private partnerships, such as energy challenges.

DOE Resources:

• Benchmarking and Disclosure: State and Local Policy Design Guide and Sample Policy: This guide provides sample policy language based on a synthesis of existing state and local policies, and discussion on key provisions, for the design of a commercial benchmarking and disclosure policy.
• Energy Benchmarking, Rating, and Disclosure for Local Governments Fact Sheet: This fact sheet provides information on how access to energy use data can help local governments lead by example by benchmarking and disclosing their results, as well as adopting and implementing benchmarking policies for the private sector.

Other Resources:

• Analysis of Job Creation and Energy Cost Savings from Building Energy Rating and Disclosure Policy: This study analyzes the potential of a national building energy rating and disclosure policy to create jobs and reduce energy-related expenditures in commercial and multifamily residential buildings.
• Building Energy Rating and Disclosure Policies: This report provides information in the form of case studies and lessons learned from the implementation of various types of disclosure policies around the United States.
• Building Energy Transparency Report: This report discusses best practices in implementing benchmarking policies. It includes policy profiles from several cities and states.
• Commercial Energy Policy Toolkit: Benchmarking and Disclosure: The benchmarking and disclosure document provided in this toolkit discusses adopting benchmarking and disclosure policies in order to allow the real estate market to value the energy performance of buildings.
• ENERGY STAR® Guide to Energy Efficiency Competitions for Buildings and Plants: This step-by-step guide outlines the steps for planning an energy efficiency competition or challenge, which can be used to engage the community and provide motivation to participate in a benchmarking and disclosure program.

A number of benchmarking tools exist today that are used by commercial real estate stakeholders to measure building energy performance. Many of these tools are offered by private companies and nonprofit organizations, while some are administered by state and local governments or the federal government. Jurisdictions interested in developing benchmarking and disclosure policy should work with local stakeholders to identify the benchmarking tools that best address policy needs.

DOE Resources:

• Building Energy Use Benchmarking
• Standard Energy Efficiency Data Platform (SEED): This software tool allows state and local governments to create their own database using a standard building energy performance taxonomy and to easily share selected data with other parties as needed.

To most effectively earn market acceptance, benchmarking and disclosure policies should be supported with education, outreach, and technical assistance. There is a learning curve with using Portfolio Manager and other benchmarking tools, and it may take more than one cycle before users are proficient in data entry. The many players in the affected markets need repeated opportunities to learn about and become familiar with the concept of benchmarking, new requirements, technical tools, and processes. It is especially helpful if government agencies can facilitate enhanced access to energy data by working with utilities and energy service professionals. Conversely, benchmarking data can be invaluable to utilities in improving existing energy efficiency programs and designing new ones. Providing ongoing support for compliance and quality control can also be vital.

Other Resources:

• Benchmarking Help Center Guide: This guide provides recommendations for establishing a benchmarking help center based on experiences and lessons learned in New York City and Seattle.

Consider what building types will be covered, the ownership type and size of affected buildings, the implementation timeframe, disclosure requirements, and possible exemptions. If you will use specific analytical tools or software, define such technical requirements and how they will be administered and supported. Many of these details are not necessary to enable legislation but can be worked out through agency proceedings.

DOE Resources:

• SEED Platform: This software tool provides a standardized format for collecting, storing, and analyzing building energy performance information about large portfolios.

Policy implementers must ensure that benchmarking information and energy ratings meet a high level of quality. Inaccurate or unreliable data undermine the ability of real estate consumers to use benchmarking information to value buildings and compromises other policy goals. When verifying data, consider these aspects:

• Range checking (energy use intensity against national median values; high or low scores)
• Expected versus reported footprint
• Rounded values (square feet and meter data)
• Space type and facility name comparisons
• Address confirmation
• Third-party verification
• Tool alerts (energy use and space use)
• Statistical analysis.

DOE Resources:

• State and Local Energy Efficiency Action Network Benchmarking Policy Design Guide: This annotated template helps with developing a policy for benchmarking. Page 11 in Section 3.3 lists verification options.

Other Resources:

• Building Energy Transparency Report: Pages 48–49 of this report from a roundtable meeting of government and private-sector experts discusses data quality assurance for benchmarking.
• Commercial Buildings Energy Consumption Survey: Provides reference energy consumption data for various facility types to enable comparisons and sanity checking of energy benchmarking data.

Analyzing and interpreting benchmarking results facilitates data-driven decision-making for policymakers and program administrators. This analysis is critical to ensure program success by helping decision makers:

• Understand system-wide building inventory and energy use profiles.
• Quantify data quality and gaps.
• Determine program impacts and validate savings estimates.
• Determine compliance and facilitate enforcement of non-compliance.
• Inform the design, development, implementation, and evaluation of demand-side management programs and other ratepayer-funded programs.
• Use benchmarking as an entry point for recruiting participants for energy efficiency programs.

DOE Resources:

• Benchmarking and Disclosure: State and Local Policy Design Guide and Sample Policy: This guide provides sample policy language based on a synthesis of existing state and local policies, and discussion on key provisions, for the design of a commercial benchmarking and disclosure policy.

Other Resources:

• Building Energy Transparency: A Framework for Implementing U.S. Commercial Energy Rating and Disclosure Policy: This report presents a framework for implementing commercial energy rating and disclosure policy along with case studies from several cities that have implemented such policies.
• Transmittal Letter for the Statewide Benchmarking Process Evaluation: This report by the California Public Utilities Commission examines the value of benchmarking as a tool to encourage energy efficiency, including a discussion of analysis tools.

Making energy ratings and benchmarking information available to the marketplace is the final consideration for policy implementers. Although the mechanics of public and transactional disclosure are very different, the question facing jurisdictions is the same: How can disclosure maximize consumer awareness and market demand for energy-efficient buildings?

DOE Resources:

• Benchmarking and Disclosure: State and Local Policy Design Guide and Sample Policy: This guide provides sample policy language based on a synthesis of existing state and local policies, and discussion on key provisions, for the design of a commercial benchmarking and disclosure policy. Section 3.1 discusses disclosure options.

Other Resources:

• Building Energy Transparency Report: This report (pages 55–57) discusses best practices in implementing benchmarking policies and includes policy profiles from several cities and states.