Commercial and Industrial Energy Efficiency Audits

Energy audits are one of the most cost-effective ways for improving a building’s energy use intensity (EUI) and energy costs. An energy audit can identify opportunities that will result in lower energy costs, lower maintenance costs, and increased property value. The adopted standard for commercial audits by the industry is developed by the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE), hence the audits are often referred to as ASHRAE audits. In this context, a multi-family building is also considered commercial.

ASHRAE Standard 211 establishes consistent practices for conducting and reporting energy audits for commercial buildings. The standard:

• Defines the procedures required to perform Energy Audit Levels 1, 2, and 3

• Provides a common scope of work for these audit levels for use by owners and others

• Establishes consistent methodology and minimum rigor of analysis required

• Establishes minimum reporting requirements for the results of energy audits Standard 211-2018

ASHRAE Level 1 Energy Efficiency Audit (Walk-through)

An ASHRAE Level 1 audit, is a preliminary assessment that provides a broad overview of a building's energy use and identifies areas where further investigation may be necessary. This audit is typically conducted by a certified energy auditor who reviews a building's utility bills, interviews building occupants and maintenance staff, and conducts a walk-through survey of the building's systems and operations.

The report includes an overview of the building's energy use, a breakdown of energy consumption by end-use category (such as lighting, heating, cooling, and plug loads), and recommendations for low-cost or no-cost improvements.

1. Review Historical Utility and Onsite Generation Data

2. Review Rate Structure

3. Facility Site Survey (walk-through)

4. Space Function Analysis

5. Identify Low-Cost and No-Cost Energy Efficiency Measure (EEM) Recommendations

6. Identify Potential EEM Capital Recommendations.

ASHRAE Level 2 Energy Efficiency Audit (Commercial Grade)

An ASHRAE Level 2 audit is a more detailed assessment that includes a comprehensive analysis of a building's energy use and a more in-depth investigation of potential energy-saving measures. The Level 2 audit typically follows and considers the findings of a Level 1 audit. In addition to the procedures for an ASHRAE Level 1 audit, a Level 2 audit includes:

1. Energy Cost Component Breakdown

2. Facility Site Survey (review of mechanical, electrical, envelope, and other systems and their operating conditions)

3. Review of Current O&M Procedures

4. Develop a List of Energy Efficiency Measures (EEM)

5. Calculate Energy Savings and Cost of EEMs

6. Economic Analysis

An ASHRAE Level 2 Audit, depending on the size of the buildings, can take from 2 months to 6 months, from the planning stage to completion of report.

The energy and water ordinances in Los Angeles (Existing Building Energy and Water Efficiency - EBEWE), San Jose (Building Performance Ordinance - Beyond Benchmarking) as well as many other cities require a Level 2 ASHRAE audit for properties subject to the ordinance.

ASHRAE Level 3 Energy Efficiency Audit (Investment Grade)

The ASHRAE Level 3 audit, also known as an investment-grade audit, is a highly targeted audit focused on a few specific energy efficiency measures (EEMs) under consideration. It is guided by the analyses and is based on the findings and recommendations of Level 1 and Level 2 audits. This audit is performed to more accurately assess the feasibility and economic viability of an EEM with high capital investment requirements. In the audit process, computer simulations of the whole building or its systems may be used to investigate the effects of proposed changes on building energy use.

Energy Efficiency Audits for Ordinance Compliance

The audit requirements for Los Angeles Existing Building Energy and Water Efficiency - EBEWE and San Jose Building Performance Ordinance - Beyond Benchmarking as well as many other cities are based on ASHRAE Level 2 audit described above.

Energy Efficiency Audits for Government Incentive Programs

Green SBA Loans

Energy Public Policy Projects, as explained in U.S. Small Business Administration Standard Operating Procedure Lender and Development
Company Loan Programs (SOP 50), are eligible for higher loan amount and reduced restrictions on loan terms. The applicant must document the project’s compliance through either an energy efficiency audit, engineering report, or other professional evaluation.

California Self-Generation Incentive Program (SGIP) Rebate

The Self-Generation Incentive Program (SGIP) Rebate program is a California Public Utilities Commission (CPUC) program that offers rebates for installing energy storage technology (e.g. batteries) in homes or businesses. A key prerequisite for participating in SGIP is the energy efficiency audit. For more information about SGIP rebates, refer to the article in Knowledge Center.

USDA Rural Energy for America Program (REAP)

The US Department of Agriculture Rural Energy for America Program (USDA REAP) is a federal initiative designed to help agricultural producers and rural small businesses implement renewable energy systems and make energy efficiency improvements. Administered by the U.S. Department of Agriculture (USDA), REAP provides financial assistance in the form of grants and loan guarantees to support projects that reduce energy consumption or generate renewable energy. As part of the application, an energy efficiency audit or energy assessment may be required.

US DOE Renew America’s Nonprofits: Building Upgrades Inspiring Local Transformation (BUILT Nonprofits)

The US Department of Energy Renew America’s Nonprofits is a grant program that funds energy efficient equipment and installation in nonprofit buildings to reduce energy use, lower carbon emissions, and generate long-term energy cost savings. Nonprofit 501(c)(3) organizations that own and operate their buildings and need efficiency upgrades can receive up to $100,000 each, through a competitive grant with a required 20% cost-share. As part of the application, an energy efficiency audit is required.