ENERGY STAR NextGenTM

Empowering a clean energy future

ENERGY STAR and the EPA have announced an upcoming certification for commercial real estate properties. ENERGY STAR NextGen represents the next step for properties wishing to show their dedication to sustainability, efficiency, and net-zero greenhouse gase emissions. This new program is slate for release in 2024. Here is a sneak peak at this new program.

“ENERGY STAR NextGen certification will represent America’s most energy-efficient low-carbon commercial buildings,” stated Lauren Hodges, EPA Communications Director in a January webinar announcing the ENERGY STAR NextGenTM Certification.

The U.S. Environmental Protection Agency has proposed a new certification called the ENERGY STAR NextGenTM certification. This certification mirrors the ENERGY STAR certification in a few ways, and the this new certification will be tracked through Portfolio Manager.

Why was NetGen Developed?

The Biden administration has set a goal of net-zero emissions economy wide by 2050, and buildings play a big part of energy use. Buildings used approximately 6.8 quadrillion BTUs of energy and spent $141 billion on energy costs in 2018 (2018 CBECS), and these numbers were trending up as buildings continue to increase in size.

To this end, the EPA has proposed the ENERGY STAR NextGen certification, which will act as a step up from ENERGY STAR certifications and incorporate other factors in decarbonization and emission reduction. NextGen certifications will exist for every property type eligible for ENERGY STAR certification, and the commercial segment of this new certification is expected to go live in late 2023 or early 2024.

ENERGY STAR NextGenTM is meant to increase efficiency, grow national renewable energy capacity, and transition from fossil fuels to electricity while achieving net-zero emissions economy wide by 2050. There are three proposed categories of this certification: efficiency, renewable energy use, and electrification. Each category has requirements that set a standard of excellence for buildings, with a strong focus on the future.

Efficiency

Studies have consistently shown that inefficiencies in building systems snowballs into wasted energy, greater emissions, higher costs, and increased strain on energy grids. One of the goals for the EPA’s ENERGY STAR NextGenTM certification is to ensure energy efficiency. To meet the requirement for the efficiency standard, properties must be eligible for ENERGY STAR certification and achieve an ENERGY STAR score of at least 75.

Want

ENERGY STAR certifications recognize building efficiency, and ENERGY STAR portfolio manager is a widely used tool for tracking energy use. Currently, ENERGY STAR NextGenTM recognition will only apply to ENERGY STAR eligible property types, but this will expand as the EPA expands scores and certifications for other property types.

Renewable Energy

To meet the requirement for the “renewable energy” standard, buildings must use at least 30-percent renewable energy meaning at least 30-percent of the energy a building uses must be from a renewable energy source. This can include “onsite renewable electricity, offsite green power procurement, renewable fuels, and/or renewable thermal certificates.”

Note that the 30-percent required from renewable energy cannot be from renewable components of standard grid electricity, and this requirement is expected to increase over time.

To track renewable energy use, the EPA will expand energy tracking features in Portfolio Manager to include tracking for renewable energy credits (REC), other renewable energy products, and inform users if they meet the 30-percent threshold.

Electrification And Emissions

To meet the “electrification/emissions” category, a building must be 100-percent electric and have a specific greenhouse gas emission intensity (GHGi). Each building will have a specific GHGi target based on Heating Degree Days (HDD).

By using a building’s HDD, the EPA is normalizing each building’s target because GHGi is different based on heating needs. According to the EPA, they “found that for each property type, median GHGi per HDD is relatively consistent across climate zones” and can be applied broadly.

This section will also be tracked through an expansion of Portfolio Manager to show NextGen Direct GHGi Target and GHGi Factor.