The year of the rating policy?

It’s likely that 2011 will see a seismic shift in the landscape of environmental policy. Even in the efficiency world, where using and spending less appeals to both sides of the aisle, there are modulations ahead. With fresh fiscal attitudes adding to a down-trodden economy, the country is looking for innovative and cheap ways to reduce spending and induce growth.

Rating and disclosure may be poised to step into the limelight. With free rating tools available through EPA, the minimal hassle of building-level consumption reporting, and the slow erosion of erroneous data privacy hang-ups, local governments are making a break for it. In addition to the rulemakings happening in California, San Francisco, DC, New York City, and Seattle, there are pending bills and rating pilots underway in dozens of states and cities nationwide, including Massachusetts, Illinois, Maryland, New Mexico, and Oregon. And between the Department of Energy, the Vice President’s Office, and Obama’s sparkling new Better Buildings Initiative, federal support is moving with them. (Check out our Policy Map for all goings-on in US rating and disclosure).

Why are building rating and performance programs poised to make a big splash these days? Tight budgets are the name of the game. State legislatures, like our national mess, need to cut and avoid spending. Policymakers are realizing the long-term environmental and economic benefits of energy savings that rating and disclosure offers—all with a minimal fiscal note. Without requiring performance or bankrolling costly public programs, jurisdictions can leverage the impacts of market transparency. Simply requiring buildings to divulge their energy consumption patterns can induce efficiency retrofits and let the market select for the cheapest, cleanest properties. A high-five for the invisible hand!

Local governments already have their interest piqued. IMT has presented to policymakers around the country on rating and disclosure policy, most recently to the Efficiency Cities Network—a cross-section of over 800 members representing hundreds of municipalities nationwide. Our very own Andrew Burr accompanied speakers outlining the current features of regulations in DC and San Francisco--where the intricacies of rulemaking are bearing out for the nation’s rating policy forerunners. These cities (plus NYC, Seattle, and Austin) are instructive for their policy mechanics and as test cases that will hopefully generate useful data and case studies. As we discussed rating and disclosure concepts with ECN—from Energy Use Intensity to Automated Benchmarking, and the like—we discovered that a lot of it was old news to our audience. These concepts are already out there, percolating around policymakers’ brains.

With local officials proactive and informed about rating and disclosure, we’re keeping our eyes peeled for new happenings in 2011. The year could be a turning point as we look ahead to the future of efficient buildings.