Key Terms and Acronyms
Source: Builds upon APB Valuation Advisory #6 - Valuation of Green and High Performance Property: Background and Core Competency [download], plus augmentations (denoted by "*")
GLOSSARY OF KEY TERMS
American Society of Heating, Refrigeration and Air Conditioning Engineers (ASHRAE) is a American Society of Heating, Refrigerating and Air-Conditioning Engineers was founded in 1894 and is a global society focused on building systems, energy efficiency, indoor air quality, refrigeration and sustainability. Standard 189.1 addresses the Design of High Performance, Green Buildings Except Low-Rise Residential Buildings. Energy Audit guidelines Levels 1, 2 and 3 address progressively more detailed building analysis, covered in the Procedures for Commercial Building Energy Audits handbook, currently in its second edition published in 2011. https://www.ashrae.org/resources--publications/bookstore/procedures-for-commercial-building-energy-audits *
Appraisal Management Company (AMC) - An entity that serves as an intermediary between appraisers and lenders and provides appraisal management services. (Derived from http://www.federalreserve.gov)
ASTM - American Society for Testing and Materials is an international standard, non-profit organization founded in 1898 (principally to test railroad rails) with 140 members based Technical Committees covering a wide variety of materials and process standards. The organization established the well-known Standard E1527 Phase I Environmental Site Assessment for site contamination and Standard E2818 Property Condition Assessments. Both reports are commonly required for some government supported loan programs (Freddie Mac and Fannie Mae).*
ASTM BEPA [Building Energy Performance Assessment] Standard E2797 involves the collection of building energy use information intended to conduct building performance analysis. An overview of the standard is available in the BEPAnews Paper No 11-002, Green Building and Sustainable Development in the Commercial Real Estate Industry, Critical Issues Series, “Using the New ASTM BEPA Standard …” http://www.bepanews.com/Training/Details.aspx *
Brown Discount - The concept that properties which do not meet market expectations for energy efficiency and sustainability may sell, rent or lease at a lower price. (Derived from http://gislab.wharton.upenn.edu; http://www.architectsjournal.co.uk)
Building Automation System (BAS) - A computer-based control system installed in buildings that controls and monitors its mechanical and electrical equipment such as ventilation, lighting, power systems, fire systems, and security systems. (Derived from http://www.gsa.gov)
Building commissioning is defined by ASHRAE Standard 202-2013 as "A quality-focused process for enhancing the delivery of a project. The process focuses upon verifying and documenting that all of the commissioned systems and assemblies are planned, designed, installed, tested, operated, and maintained to meet the Owner's Project Requirements.” Commissioning agents are highly trained building specialists who look at systems and compare actual performance to expected performance. An intensive quality assurance process that begins during building design and continues through construction, occupancy, and operations. (See http://www.cacx.org*
Building Energy Asset Score - A national standardized tool for assessing the physical and structural energy efficiency of commercial and multifamily residential buildings on a 10-point scale. The Asset Score generates a simple energy-efficiency rating that enables comparison among buildings and identifies opportunities to invest in energy-efficiency upgrades. (Derived from: http://energy.gov/eere/buildings/building-energy-asset-score)
Building Envelope or Building Enclosure - The building’s thermal barrier isolating the interior conditioned space from the exterior environment, consisting of roof, walls, exterior doors, windows, foundation and other sealing barriers. (Derived from http://www.greenresourcecouncil.org/green-resources/green-building-glossary)
Building Management System (BMS) - See Building Automation System.
Building Performance Assessment (BPA) - An energy audit that provides objective and quantified measurements of a building's performance including energy, lighting, thermal comfort and maintenance. (Derived from http://www.gsa.gov)
Energy Audit - An assessment of how much energy a building consumes and what steps can be taken to improve its energy efficiency. (Derived from http://energy.gov)
Energy Benchmarking is the process of comparing peer building energy performance. Building performance testing via benchmarking is more effective is done consistently over time via periodic energy audits or real time commissioning via a robust building energy management system*
Energy Efficiency Mortgages (EEM) - A mortgage that credits a home's energy efficiency in the mortgage itself. EEMs give borrowers the opportunity to finance cost-effective, energy-saving measures as part of a single mortgage. (Derived from http://hud.gov)
Energy Modeling - A computer program to model energy flows within and throughout a structure. It uses computer-based tools to simulate a building’s energy use throughout an entire year of operation. (Derived from http://www.buildinggreen.com)
ENERGY STAR - A standard for energy-efficient consumer products originated in the United States. It is also a benchmarking process that reveals how a building's energy consumption compares to that of similar buildings of the same space type – based on a national average. (Derived from http://www.energystar.gov)
Energy Use Intensity (EUI) - A benchmark expressing a building’s energy use. Energy per square foot per year; calculated by dividing the total energy consumed by the building in one year by the total gross floor area of the building. (Derived from http://www.energystar.gov)
Energy-Efficiency Rating Systems - A rating system designed to evaluate buildings solely on energy efficiency. These are different than green building rating systems which rate a building across multiple aspects of sustainability-related criteria. (Derived from http://www.epa.gov)
EPA [Environmental Protection Agency] ENERGY STAR is an energy benchmarking program where 21 different types of building facilities are rated on a score of 1 to 100, with a lower score indicating higher relative energy use compared to peers. A score of 50 for middle performance is more efficient than only 50 percent of facility peers. A score of 75 means energy use is less than 75% of peers and entitles the facility to display the ENERGY STAR certificate*
Green Building – (verb) - The practice of creating structures and using processes that are environmentally responsible and resource-efficient throughout a building's life cycle from siting to design, construction, operation, maintenance, renovation and deconstruction. (noun) - A structure with sustainability related features. (Derived from http://www.epa.gov)
Green Globes - An online green building rating and certification tool that is used primarily in the United States and Canada. (Derived from http://www.greenglobes.com)
Green Lease - Real property leases that include language addressing sustainability and green building criteria, primarily relating to the operation of a green building. A green lease aligns the financial and energy incentives of building owners and tenants to save money, conserve resources, and ensure the efficient operation of buildings. (Derived from http://www.greenleaselibrary.com)
Greenhouse Gas Emissions (GHGs) - Emitted gases that trap heat from the sun and warm the planet’s surface. The majority are related to energy consumption, and most of those are comprised primarily of carbon dioxide. (Derived from http://www.epa.gov)
High Performance Building - A building that integrates and optimizes on a life cycle basis all major high performance attributes, including energy [and water] conservation, environment, safety, security, durability, accessibility, cost-benefit, productivity, sustainability, functionality, and operational considerations. (Derived from http://www.gpo.gov; Energy Independence and Security Act 2007 401 PL 110-140)
Home Energy Rating System (HERS) - A nationally-recognized scoring system that measures a home’s energy performance. Based on the results, an energy-rated home will receive a HERS Index Score. (Derived from http://www.resnet.us)
Home Energy Scoring Tool – A national standardized rating system that places a home on a 10-point scale. It reflects the level of energy efficiency of a home’s fixed assets (e.g., envelope and major equipment), while controlling in occupant-varying influences. (Derived from http://homeenergyscore.gov)
HUD PowerSaver - A special loan program that allows homeowners to make energy-saving changes, including the installation of insulation, water heaters, new windows, and solar panels. (Derived from http://www.energy.gov; http://www.fha.com)
Indoor Environmental Quality/Indoor Air Quality (IEQ/IAQ) - The conditions inside a building – air quality, lighting, thermal conditions, ergonomics – and their effects on its occupants or residents. (Derived from http://www.usgbc.org)
Integrated Design Process (IDP) - Involves multiple areas of a project working together from the start towards one major goal. In regards to green building, this approach is commonly taken to allow a building to achieve maximum efficiency, lower costs, and increase overall performance. (Derived from https://www.go-gba.org)
Leadership in Energy and Environmental Design (LEED) - Rating systems for the design, construction, operation, and maintenance of green buildings, homes and neighborhoods. (Derived from http://www.usgbc.org)
LEED certification: Leadership in Energy and Environmental Design guidelines established by the US Green Building Council. The LEED® rating system transparently qualifies an asset across six (6) key categories including energy and water efficiency, indoor environmental quality, and site location which are verified through independent third-party certification. Achievement of certain LEED points can positively impact a building’s competitive profile including operating costs and risk profile while sending signals influencing market position and tenant attractiveness. (Derived from http://www.usgbc.org)*
LEED Existing Buildings Operation and Maintenance (EBOM) - A third-party (LEED) rating and certification system for existing buildings. Buildings are evaluated for sustainability, energy efficiency, indoor air quality, etc. (Derived from http://www.usgbc.org)
Light-Emitting Diode (LED) - A semiconductor diode that emits light when a voltage is applied to it and that is used especially in electronic devices. It is significantly more efficient than incandescent lighting. (Derived from http://www.businessdictionary.com)
Living Building Challenge - A performance-based green building certification program sponsored by the International Living Future Institute. (Derived from http://living-future.org)
National Green Building Standard (NGBS) – ANSI-approved residential green rating system developed by the National Association of Home Builders and the International Code Council. NGBS Green certification is issued by Home Innovation Research Labs. (Derived from www.homeinnovation.com/Green
Net Zero Energy (NZE) - A building where the total amount of energy used by the building on an annual basis is roughly equal to the amount of energy created on the site. (Derived from http://www.nrel.gov)
Passive House Institute US - A program that certifies buildings based on specific performance criteria including ultra-low energy use and airtight building envelope integrity. (Derived from http://www.nrel.gov)
Passive Housing - A comprehensive system working with natural resources (instead of relying predominantly on ‘active’ systems) to reduce energy consumption. (Derived from http://www.phius.org; http://www.passipedia.org)
Portfolio Manager Tool - An online tool from the EPA used to measure and track energy and water consumption, as well as greenhouse gas emissions. (Derived from http://www.energystar.gov)
Property Assessed Clean Energy (PACE) - A program to finance energy efficiency and renewable energy upgrades to buildings. It is typically repaid as a property tax assessment for up to 20 years. (Derived from http://pacenow.org)
Residential Energy Services Network (RESNET) - An independent, non-profit organization to help homeowners reduce the cost of their utility bills by making their homes more energy efficient. (Derived from http://www.resnet.us)
Sandia Lab PV Value - Online calculators to determine present value of solar PV. (Derived from http://www.pvvalue.com)
Solar Photovoltaic Systems (Solar PV) - A system designed to supply power utilizing solar panels to absorb and directly convert sunlight into electricity. (Derived from http://www.nrel.gov)
Solar Thermal Systems (STE) - A technology for harnessing solar energy for thermal energy (heat). (Derived from http://energy.gov)
Sustainability - Sustainability is based on a simple principle: Everything needed for survival and well-being depends, either directly or indirectly, on the natural environment. Sustainability creates and maintains the conditions under which humans and nature can exist in productive harmony, that permit fulfilling the social, economic and other requirements of present and future generations. (Derived from http://www.epa.gov)
Sustainable Building - A structure that is environmentally responsible and resource efficient throughout a building's life cycle: from siting to design, construction, operation, maintenance, renovation, and demolition. Also known as "high performance" or “green building.” (Derived from http://www.gsa.gov; http://www.epa.gov; http://www.wbdg.org)
Triple Bottom Line - An accounting framework with three parts: social, environmental (or ecological), and financial. These three divisions are also called the three Ps: People, Planet and Profit, or the "three pillars of sustainability". (Derived from http://www.ibrc.indiana.edu; http://www.investopedia.com)
U.S. General Services Administration (GSA) - A U.S. Agency that provides workplaces by constructing, managing, and preserving government buildings and by leasing and managing commercial real estate. (Derived from http://www.gsa.gov)
U.S. Green Building Council: USGBC is a 501c3 non-profit whose mission is “to transform the way buildings and communities are designed, built and operated, enabling an environmentally and socially responsible, healthy, and prosperous environment that improves the quality of life.” USGBC is comprised of roughly 13,000 member companies and organizations, and nearly 200,000 professionals who hold LEED credentials as of year-end 2014. The organization’s primary product is the LEED building rating system [see LEED]. Through its nationwide network of chapters and affiliates, advocacy initiatives and robust educational offerings including the annual Greenbuild International Conference & Expo, USGBC works to make cost-efficient, resource-saving green buildings a reality across the globe.*
Value Engineering is an examination of cost to function based on scarcity where a feature priority hierarchy is often based on a fixed budget vs overall rate of return. This can result in a shorter investments design horizon due to funds limitations, often at the expense of longer payback or less “vital” features. Reduced functional longevity, planned obsolescence and inferior quality can all be a result from this shorter time horizon. Risk of negative events, shorter lifespan or economic benefits that are difficult to measure are typical features that are “value engineered” out of a project. An example would be excluding (due to cost) a device to measure the output from a solar photovoltaic array to verify correct operation and fault detection. Without good information about the solar system under performance frequency or malfunction risk and economic impact (a complex analysis) the monitoring device might be “value engineered” out of the budget, while the solar PV array would remain*
WaterSense program - An EPA program that seeks to protect the future of the nation's water supply by offering people a simple way to measure the water efficiency of products and homes. (Derived from http://www.epa.gov)