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DOE Finally Finalizes its Definition of a Zero Emissions Building

Defining the future of real estate

Propmodo Daily

By Franco Faraudo · June 7, 2024

Greetings!

The Department of Energy has set a clear standard for zero-emissions buildings, focusing on energy efficiency, verified clean energy use, and no on-site emissions. Developed with input from industry experts and governing bodies, this definition establishes specific benchmarks for both new and existing buildings. As we discuss in today's email, it complements existing efficiency standards and underscores the importance of smart design and retrofitting to achieve carbon reduction goals.

The resurgence of union activity in the U.S. is impacting the commercial real estate industry, with both labor and tenant unions gaining traction. High-profile efforts involving building service workers and hotel employees could disrupt major commercial buildings. As detailed in our new article, although union membership rates remain low compared to historical highs, evolving labor laws and growing public support present new challenges and risks for property owners.

This week in Propmodo Technology, we explore multifamily management, discussing how apartments are using rewards programs to retain tenants as the rental market softens. We also examine whether smart home technology is making apartment living easier or more complicated, and how multifamily properties can be future-proofed with smart access control.

Now, let's dig in!

DOE Finalizes Its Definition of a Zero Emissions Building

Going forward, it will be much harder to call a building “zero emissions” without substantiating that claim. The Department of Energy has finalized its official definition of a zero-emissions building, a process that has been in the works for months.

Back in January, the White House released a request for information, seeking feedback from industry experts, academics, and the general public. After reviewing the responses and consulting with governing bodies such as The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) and the United States Green Building Council (USGBC), the Department of Energy refined its final definition to what we have today.

The definition is straightforward. For a building to be considered zero emissions, it needs to be energy efficient. For new buildings, this means having an Energy Star score of 75 or higher or an energy use intensity (EUI) that is at least 35 percent better than the median EUI for buildings of that category. For existing buildings, the standards are higher: they need to have an Energy Star rating of 90 or higher or ensure that the estimated whole building energy use, reflecting as-built conditions, is at least 10 percent lower than the model code.

Buildings also need to be free of any on-site emissions from energy use and be powered solely by verified clean energy, which can come from either on-site or off-site generation. An important note is that these rules do not apply to any electric vehicle supply equipment to avoid penalizing buildings with significant on-site charging capabilities.

This is just the first phase of the standardized definition. Eventually, the DOE will include the entire lifecycle of a building, considering factors like embodied carbon and the impact of chemical refrigerants. The DOE emphasized that this definition does not replace existing efficiency standards: “The definition is not a substitute for the green building and energy efficiency standards and certifications that public and private parties have developed.” It also does not address the more commonly used term “net zero buildings.”

However, this new definition provides some standardization for what constitutes an energy-efficient building. More importantly, it shows that critical thought is being given to the design and retrofitting of buildings to lower energy consumption and achieve carbon reduction goals.

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