Energy and Climate Change Action Lab: The New York City Perspective

July 18, 2013 David Gilford, Assistant Director

Energy and Climate Change Action Lab: The New York City Perspective

Overview  Objectives for NYC  Economic development  Sustainability  Policies for sustainability  PlaNYC  Greener, Greater Buildings Plan  Beyond policy: stimulating innovation and adoption  Open Data and Competitions  Energy Aligned Clause  Topics for discussion 1 NYC ECONOMIC DEVELOPMENT CORPORATION

NYCEDC’s Objectives in Clean Technology and Energy

Linking sustainability and economic growth Growth in employment, companies and investment while: increasing energy efficiency, expanding the production of clean energy, reducing greenhouse gas emissions, waste and pollution, and conserving water and other natural resources.

Credit: NYC Mayor’s Office of Long-term Planning and Sustainability

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New York City’s Sustainability Objectives

PlaNYC has 10 categories of goals for 2030, through 132 initiatives

Neighborhoods and Housing

Creates homes for almost a million more New Yorkers while making housing and neighborhoods more affordable and sustainable

Parks and Public Space

Ensures that all New Yorkers live within a ten-minute walk of a park

Brownfields

Cleans up all contaminated land in New York City

Waterways

Improves the quality of New York City’s waterways to increase opportunities for recreation and restore coastal ecosystems

Water Supply

Ensures the high quality and reliability of the water supply system

Climate Change

Reduce greenhouse gas emissions by more than 30% and increase the resilience of communities, natural systems, and infrastructure to climate risks

Transportation

Expand sustainable transportation choices and ensure the reliability and quality of the transportation network

Energy

Reduce energy consumption and make energy systems cleaner and more reliable

Air Quality

Achieve the cleanest air quality of any large U.S. city

Solid Waste

Divert 75% of solid waste from landfills

PlaNYC is estimated to create 7,666 direct jobs annually through 2030

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Policies for Sustainability

Energy efficiency in large buildings is critical to NYC

New York City has:

 ~1 million buildings 

15,000 properties

50k ft 2 or larger, which is less than 2% of all buildings  45% of energy used citywide is in large buildings Source: NYC Mayor’s Office 4 NYC ECONOMIC DEVELOPMENT CORPORATION

Policies for Sustainability

PlaNYC launched 3 major energy efficiency initiatives

Greener, Greater Buildings Plan (GGBP)

 Will reduce almost 5% of citywide GHG emissions  www.nyc.gov/ggbp

NYC Green Codes Task Force

 111 proposals to green local codes, with 51 reducing energy use in buildings  www.nyc.gov/gctf

30 x 17, Mayor’s Carbon Challenges to Hospitals & Universities 30x17 and Mayor’s Carbon Challenges

 Targeted sectors “challenged” to achieve 30% GHG emissions reduction in 10 years  www.nyc.gov/html/gbee/html/public/ghg.shtml

 www.nyc.gov/carbonchallenge 5 NYC ECONOMIC DEVELOPMENT CORPORATION

Beyond Policy: Open Data and Competitions

Energy data challenges and “hackathons” are cost-effective yet powerful tools 6 NYC ECONOMIC DEVELOPMENT CORPORATION

Beyond Policy: Energy Aligned Clause

Incentives are often misaligned, preventing investment in retrofits  Problem: In typical leases, savings from energy retrofits are passed through to the tenants, so:  It is not in the owners’ immediate interest to invest capital in improvements.  Thus savings and other benefits are left on the floor.  60% of commercial landlords surveyed in NYC say split incentives inhibit them from undertaking energy retrofits.

 Goal: Create conditions so both commercial building owners and tenants can benefit financially from base-building energy retrofits 7 NYC ECONOMIC DEVELOPMENT CORPORATION

Beyond Policy: Energy Aligned Clause

Building a “win-win-win” solution

The EAC, an overview, and the financial model are available at www.nyc.gov/eac.

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Questions for Discussion

 What are the key barriers to greater investment in energy efficiency? Financial? Informational? Regulatory? Others?  Is the availability of financing a major issue?

 How is the split incentive problem being addressed elsewhere?

 How do companies evaluate the uncertainty in projections of savings and payback periods?

 What role can data and analytics play in improving decision-making?

 Is the NYC experience unique? What factors vary at the city, regional or national level?

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Thank You

David Gilford Assistant Director, NYCEDC www.nycedc.com/cleantech Twitter: @dgilford and @nycedc

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