2
Energy Efficiency in Residential and Commercial Buildings

The efficiency of the appliances and equipment used in homes and businesses has increased greatly over the past three decades. However, there is still much that can be done to reduce the amount and slow the growth of energy consumption in residential and commercial buildings.

This chapter describes how energy is used in buildings today and discusses the factors that have driven the growth of energy use. It then identifies opportunities for improving energy efficiency in the near term (through 2020) as well as the medium term (through 2030–2035). The chapter presents conservation supply curves that show the amount of energy that could be saved as a function of the cost of the saved energy and describes how whole-building approaches can produce new buildings with very low energy consumption. It reviews the market barriers to improving energy efficiency in buildings and presents some factors that are helping to overcome the barriers. Finally, the chapter presents the findings of the Panel on Energy Efficiency Technologies with regard to the potential for greater efficiency in residential and commercial buildings.

2.1
ENERGY USE IN BUILDINGS

In 2006, residential and commercial buildings accounted for 39 percent of the total primary energy used and 72 percent of the electricity used in the United States to supply power and fuel for heating, cooling, lighting, computing, and other needs. As Figures 2.1 (residential buildings) and 2.2 (commercial buildings) show, heating, ventilation, and air-conditioning (HVAC) consumed the most energy, followed by lighting.



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2 Energy Efficiency in Residential and Commercial Buildings T he efficiency of the appliances and equipment used in homes and busi- nesses has increased greatly over the past three decades. However, there is still much that can be done to reduce the amount and slow the growth of energy consumption in residential and commercial buildings. This chapter describes how energy is used in buildings today and discusses the factors that have driven the growth of energy use. It then identifies opportu- nities for improving energy efficiency in the near term (through 2020) as well as the medium term (through 2030–2035). The chapter presents conservation supply curves that show the amount of energy that could be saved as a function of the cost of the saved energy and describes how whole-building approaches can pro- duce new buildings with very low energy consumption. It reviews the market bar- riers to improving energy efficiency in buildings and presents some factors that are helping to overcome the barriers. Finally, the chapter presents the findings of the Panel on Energy Efficiency Technologies with regard to the potential for greater efficiency in residential and commercial buildings. 2.1 ENERGY USE IN BUILDINGS In 2006, residential and commercial buildings accounted for 39 percent of the total primary energy used and 72 percent of the electricity used in the United States to supply power and fuel for heating, cooling, lighting, computing, and other needs. As Figures 2.1 (residential buildings) and 2.2 (commercial build- ings) show, heating, ventilation, and air-conditioning (HVAC) consumed the most energy, followed by lighting. 

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 Real Prospects for Energy Efficiency in the United States *6.3% Other 12% Heating, Ventilation, and Cooking 3% Air-Conditioning 35% Refrigeration 6% Electronics and Computers 10% Water Heating 10% Lighting 18% FIGURE 2.1 Energy use in U.S. residential buildings by end-use, 2006. Note: *, Energy Information Administration (EIA) adjustment factor that accounts for incomplete data in EIA’s sampling and survey methodology. Source: Pew Center on Climate Change, based on data in DOE/EERE (2008), available at http://www.pewclimate.org/technology/overview/buildings. 2.1 Efficiency *7% Other 13% Heating, Ventilation, and Air-Conditioning Cooking 2% 32% Refrigeration 4% Electronics and Computers 12% Water Heating 6% Lighting 25% FIGURE 2.2 Energy use in U.S. commercial buildings by end-use, 2006. Note: *, Energy Information Administration (EIA) adjustment factor that accounts for incomplete data in EIA’s sampling and survey methodology. Source: Pew Center on Climate Change, based on data in DOE/EERE (2008), available at http://www.pewclimate.org/technology/overview/buildings. 2.2 Efficiency

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Energy Efficiency in Residential and Commecial Buildings  On the residential side, this energy was used in approximately 80.8 million single-family homes, 24.8 million multifamily housing units, and nearly 6.9 mil- lion mobile homes in the United States as of 2006 (EIA, 2008b). On the commer- cial side, there were approximately 75 billion square feet (7 billion square meters) of floor space in 5 million commercial buildings as of 2006 (EIA, 2008b). The building stock is long-lived: homes can last 100 years or more, commercial build- ings often last 50 years or more, and appliances and equipment used in build- ings can last 10–20 years (IWG, 1997). Nonetheless, there have been significant changes in energy use and energy efficiency in buildings over the past 30 years. Energy use in buildings has increased over the past 30 years, but at a rate slower than the rate of increases in gross domestic product (GDP). As shown in Figure 2.3, in the residential sector over the period 1975–2005, delivered-energy 25 Primary Energy 20 Delivered Energy Quadrillion Btu (Quads) 15 10 5 0 1975 1980 1985 1990 1995 2000 2005 Year FIGURE 2.3 U.S. residential energy use trends. Primary energy use (accounting for losses 2.3 Efficiency in electricity generation and transmission and distribution, and for fuels, such as natu- ral gas, used on-site) has increased faster than delivered energy use (which does not account for such losses, but does include fuels used on-site) because use of electricity has increased faster than use of other fuels. Source: Data from EIA, 2007b.

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 Real Prospects for Energy Efficiency in the United States use1 increased about 15 percent whereas primary energy use increased 46 percent. This difference is due to the growing electrification of energy use in homes. In 1975, direct fuel use in homes was four times that of electricity use in terms of end-use energy content, but by 2005 this ratio had fallen to about 1.4 to 1. Understanding the potential for improvements in building energy efficiency requires detailed energy-use data beyond those presented in Figures 2.1 and 2.2, because the sector potential is composed of a long list of appliance-specific and building-specific measures. Unfortunately, much of the available data on energy use in buildings is based on self-reporting or inferences rather than on direct mea- surement, and estimates of uncertainties around the data are seldom available. Expanded data gathering, particularly through direct measurement, would facili- tate more rigorous evaluation of energy efficiency measures and would contribute to the accuracy and completeness of future studies. Growth in the use of a variety of electrical appliances is one factor contribut- ing to the growth of energy use in buildings in recent decades. Figure 2.4 shows the penetration (the percentage of U.S. households having an appliance) of selected appliances in U.S. households between 1980 and 2005. During this period the per- centage of households having central air-conditioning more than doubled, and the penetration of microwave ovens increased by more than a factor of six and that of dishwashers by 57 percent. Personal computer use was essentially nonexistent in 1980, yet by 2005, 68 percent of all U.S. households had a personal computer. In addition, 56 percent of households had cable television service, nearly 22 percent had a satellite dish antenna, and more than 27 percent of households had at least one large-screen television as of 2005 (DOE, 2009). Compared with the residential sector, the commercial sector experienced much faster growth in energy use over the period 1975–2005: delivered-energy use in the commercial sector increased approximately 50 percent, and primary energy use increased 90 percent (Figure 2.5). As in the residential sector, the growing electrification of energy use in the commercial sector led to a faster rise in primary energy use than in delivered-energy use (DOE, 2008a). Residential energy intensity, defined as energy use per square foot of liv- ing space, declined over the past 30 years in spite of the growing penetration of 1 “Delivered” energy refers to the electricity delivered to a site plus the fuels used directly on- site (e.g., natural gas for heating water). This measure does not account for the losses incurred in generating and transmitting and distributing the electricity. Delivered energy plus these losses is referred to as “primary” energy. See Box 1.4 in Chapter 1.

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Energy Efficiency in Residential and Commecial Buildings  100 90 Central Air 80 Conditioner Percent of U.S. Households 70 Room Air Conditioner 60 Clothes Washer Dishwasher 50 Clothes Dryer 40 (Electric or Gas) Personal 30 Computer Microwave Oven 20 10 0 1980 1984 1987 1990 1993 1997 2001 Year FIGURE 2.4 Household appliance penetration trends. “Penetration” is the percentage of U.S. households having the appliance specified. Data for personal 2.4 Efficiency are unavail- computers able before 1990. Source: U.S. Department of Energy, Energy Information Administration. Data through 2001 are from Regional Energy Profiles, Appliance Reports, Table 1: Appliances in U.S. Households, Selected Years, 1980–2001, available at http://www.eia.doe.gov/emeu/reps/ appli/all_tables.html. Data for 2005 are from 2005 Residential Energy Consumption SurveyDetailed Tables, available at http://www.eia.doe.gov/emeu/recs/recs2005/hc2005_ tables/detailed_tables2005.html. appliances (see discussion below). However, the rate of decline depends on how energy intensity is measured. Total delivered-energy use per household fell 31 per- cent over the period 1978–2005, while primary energy use per household fell 16 percent (Table 2.1). Although household size in terms of square feet of floor area has been increasing, leading to a steeper decline in primary energy use per square foot of floor area (DOE, 2008a), the number of people living in a typical house- hold declined from 2.8 in 1980 to 2.6 in 2001 (Battles and Hojjati, 2005). Thus primary energy use per household member remained relatively constant over the 70 350 period 1980–2005. Smaller households use less absolute energy than larger house- CT Class I (left axis) RI New (left axis) MD Class I (left axis) holds do, but more energy is used(right axis) NJ Solar per person in theaxis) PA (left former. The 2005 residential MA (left axis) NJ Class I (left axis) DC Class I (left axis) TX (left axis) 60 300 nthly REC Prices Megawatt-hour) Megawatt-hour) 50 250 REC Prices 40 200

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 Real Prospects for Energy Efficiency in the United States 25 Primary Energy 20 Delivered Energy Quadrillion Btu (Quads) 15 10 5 0 1975 1980 1985 1990 1995 2000 2005 Year FIGURE 2.5 U.S. commercial energy-use trends. Primary energy use (accounting for losses in electricity generation and transmission and distribution andEfficiency such as 2.5 for fuels, natural gas, used on-site) has increased faster than delivered energy use (which does not account for such losses but does include fuels used on-site) because use of electricity has increased faster than use of other fuels. Source: EIA, 2007b. energy consumption survey showed that, on average, one-person households annually consumed 71 million Btu per capita; two-person households, 48 million Btu per capita; and three-person households, 35 million Btu per capita (DOE, 2009). A geographic shift in population (e.g., that from the northeastern and mid- western regions of the United States to the more temperate southern and western regions of the country) was one of the factors leading to the decline in residential energy intensity. Energy intensity tends to be lower in the latter regions, especially on a delivered-energy basis. Improvements in energy efficiency resulting from the adoption of efficiency standards for appliances and the offering of utility-spon- sored and government-sponsored demand-side management (DSM) programs also helped reduce residential energy intensity (Battles and Hojjati, 2005).

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Energy Efficiency in Residential and Commecial Buildings  TABLE 2.1 Residential Sector Energy Intensity Trends Primary Delivered Primary (million (million (million Btu/ Primary Btu/household (1000 Btu/ft2) Year Btu/household) household) member) 1978 138 204 72 1980 114 176 101 63 1984 105 164 98 61 1987 101 163 94 63 1990 98 164 91 63 1993 104 172 92 66 1997 101 172 66 2001 92 164 79 64 2005 95 171 79 66 Note: Trend may look different depending on the metric used. Source: DOE, 2009, available at www.eia.doe.gov/emeu/recs/recs2005/hc2005_tables/detailed_tables2005. html. TABLE 2.2 Household Energy Expenditures by Income Level in 2001 Energy Percentage of Percentage of Expenditures Income Spent on Household Incomea (dollars)a Households Energy Less than $9,999 10 1,039 16 $10,000 to $14,999 7 1,124 9 $15,000 to $19,999 8 1,290 7 $20,000 to $29,999 13 1,315 5 $30,000 to $39,999 13 1,398 4 $40,000 to $49,999 12 1,518 3 $50,000 to $74,999 20 1,683 3 $75,000 to $99,999 8 1,825 2 $100,000 or more 8 2,231 2 a2001 dollars. Source: DOE/EERE, 2007. Residential energy use varies by household income, as shown in Table 2.2. Upper-income households earning more than $100,000 annually in 2001 used about twice the energy used by lower-income households earning under $15,000 annually. But the energy burden (the fraction of income spent on energy) is much

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8 Real Prospects for Energy Efficiency in the United States higher for lower-income households compared with middle- or upper-income households. Commercial energy intensity measured in energy use per square foot of floor area declined over the 1979–1986 period but has fluctuated since 1986, as shown in Table 2.3. Commercial energy intensity has increased in particular types of buildings, such as health care and educational facilities. Efficiency improvements in lighting and air-conditioning have tended to reduce overall energy intensity, whereas greater use of amenities and devices such as computers and other plug loads have tended to increase it. Overall energy intensity in commercial build- ings has declined in spite of a 45 percent increase in electricity use per square foot between 1983 and 2005 (Belzer, 2007). Energy use per square foot declined more on a delivered-energy basis than on a primary-energy basis during 1979–2003 owing to the increasing electrification of energy use. There is great diversity in energy intensity in different commercial building types, as shown in Table 2.4. On the basis of delivered-energy and primary-energy use, food sales and food services facilities use more than two times as much energy per square foot of floor area as is used by office, retail, education, and lodging facilities. Likewise, health care facilities tend to have high energy use per square foot of floor area. Table 2.5 presents a breakdown of energy end-use in residential and com- mercial buildings in 2005, as estimated by the Energy Information Administra- tion (EIA). In housing, space heating represented about 48 percent of total energy TABLE 2.3 Commercial Sector Energy Intensity Trends Delivered Primary (1000 Btu/ft2) (1000 Btu/ft2) Year 1979 114.0 203.2 1983 97.5 187.1 1986 85.5 170.2 1989 91.6 180.4 1992 80.0 158.5 1995 90.5 180.1 1999 85.1 178.0 2003 91.0 191.0 Source: Energy Information Administration. Data through 1999 from http:// www.eia.doe.gov/emeu/consumptionbriefs/cbecs/cbecs_trends/intensity.html. Data for 2003 from http://www.eia.doe.gov/emeu/cbecs/cbecs2003/detailed_ tables_2003/detailed_tables_2003.html#consumexpen03.

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Energy Efficiency in Residential and Commecial Buildings  TABLE 2.4 Commercial Sector Energy Intensity by Principal Building Activity, 2003 Delivered Primary (1000 Btu/ft2) (1000 Btu/ft2) Principal Activity Education 83 159 Food sales 200 535 Food service 258 523 Health care 188 346 Lodging 100 193 Mercantile and service 87 204 Office 93 212 Public assembly 94 180 Public order and safety 116 221 Religious worship 43 77 Warehouse 45 94 Other 164 319 Source: Energy Information Administration. Data from http://www.eia. doe.gov/emeu/cbecs/cbecs2003/ detailed_tables_2003/detailed_tables_2003. html#consumexpen03. use on a delivered basis and 31 percent on a primary basis. Water heating, space cooling, and lighting each represented 11–12 percent of total residential primary energy use. Electronic devices such as televisions, computers, and other types of office equipment represented about 8.5 percent of residential primary energy use in 2005, and this fraction increases as households acquire more and bigger elec- tronic products. Space heating in commercial buildings in 2005 accounted for 24 percent of delivered-energy use and 14 percent of primary energy use, on average. Lighting accounted for about 17 percent of delivered-energy use and more than 25 percent of primary energy use, on average. Likewise, the end-use of space cooling and ventilation accounted for nearly 13 percent of delivered-energy use and 19 percent of primary energy use, on average. The end-use data should be viewed as approxi- mate owing to the lack of metered data by end-use. “Other” energy use in Table 2.5 includes laboratory, medical, and telecommunications equipment; pumps; and fuel use for combined heat and power production.

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0 Real Prospects for Energy Efficiency in the United States TABLE 2.5 Energy End-Uses in Buildings, 2005 Residential Sector Commercial Sector Primary Delivered Primary Delivered End-Use (quads) (%) (quads) (%) (quads) (%) (quads) (%) Space heating 6.69 (30.7) 5.61 (48.2) 2.55) (14.2 2.04 (24.0) Space cooling and 2.67 (12.3) 0.84 (7.2) 3.42 (19.1) 1.09 (12.8) ventilation Water heating 2.66 (12.2) 1.75 (15.0) 1.23 (6.8) 0.84 (9.9) Lighting 2.40 (11.0) 0.75 (6.5) 4.57 (25.5) 1.44 (16.9) Refrigeration 1.64 (7.5) 0.52 (4.4) 0.74 (4.1) 0.23 (2.7) Electronicsa 1.86 (8.5) 0.58 (5.0) 1.70 (9.5) 0.53 (6.2) NAb NAb Laundry and 1.05 (4.8) 0.38 (3.2) dishwashers Cooking 0.98 (4.5) 0.48 (4.1) 0.35 (2.0) 0.27 (3.2) Other 0.83 (3.8) 0.41 (3.5) 2.37 (18.2) 1.12 (13.2) Adjustmentc 1.02 (4.7) 0.32 (2.8) 0.98 (5.5) 0.92 (10.9) Total 21.78 (100) 11.63 (100) 17.91 (100) 8.49 (100) aElectronics include TVs, computers, and other office equipment. bNA, not available. cAdjustment to reconcile discrepancies between sources. Source: DOE/EERE, 2007. 2.2 ENERGY EFFICIENCY TRENDS Improvements in energy efficiency are a key factor in the decline in energy inten- sity in buildings over the past 30 years. Driven largely by research, development, and demonstration (RD&D), building energy codes, ENERGY STAR® labeling, and state and federal efficiency standards (see Chapter 5), the efficiency of new appliances has improved dramatically since the 1970s. For example, the average electricity use of new refrigerators sold in 2007 was about 498 kWh per year, 71 percent less than the average electricity use of new refrigerators sold 30 years earlier (AHAM, 2008). This is in spite of the fact that refrigerators have become larger and offer more features, such as automatic defrosting, ice makers, and through-the-door water and ice dispensers. Likewise, the average efficiency of other products, including air conditioners, gas furnaces, clothes washers, and dish- washers, has improved significantly over the past 30 years. Yet progress has been minimal for other products, such as water heaters. Less policy attention has been paid to the energy use of these other appliances and equipment, accounting in part for this divergence of trends in energy efficiency improvements.

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Energy Efficiency in Residential and Commecial Buildings  Significant energy efficiency gains have also been made in lighting. The sales and use of compact fluorescent lamps (CFLs), which use about 75 percent less electricity per unit of light output relative to incandescent lamps, have increased greatly in the past decade. As shown in Figure 2.6, CFL shipments (based on data on imports, since all CFLs are imported into the United States) increased from about 21 million units in 2000 to 185 million units by 2006. But as a result of various factors—growing state, regional, and utility energy efficiency programs, along with a federal procurement program aimed at reducing the size and improv- ing the quality of CFLs; stepped-up marketing efforts by some large retailers; and national promotion campaigns led by the federal ENERGY STAR® program— CFL shipments jumped to about 400 million units in 2007. This means that CFLs represented about 20–25 percent of all screw-in lightbulbs (incandescent and fluo- rescent) sold in 2007. Given that CFLs last 5 to 10 times longer than incandescent lamps, CFLs actually accounted for the majority of the total “light service” (i.e., lumen-hours) sold in 2007. CFLs do have some drawbacks, such as their use of mercury and difficulty with dimming. However, the small amount of mercury released to the environment if a CFL is disposed of in a landfill is much less than 450 400 Number Shipped (Million) 350 300 250 200 150 100 50 0 2000 2001 2002 2003 2004 2005 2006 2007 Year FIGURE 2.6 Shipments of compact fluorescent lamps. Source: U.S. Department of Commerce data obtained from USA Trade Online, available at https://orders.stat-usa.gov/on_sam.nsf/fsetOrder/UTO. 2.6 Efficiency

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0 Real Prospects for Energy Efficiency in the United States B.4 Many advanced technologies under development and likely to become commercially available within the next decade—including LED lamps, innovative window systems, new types of cooling systems, and power- saving electronic devices—will further increase the energy-savings potential in buildings. In addition, new homes and commercial build- ings with relatively low overall energy use have been demonstrated throughout the country. With appropriate policies and programs, they could become the norm in new construction. B.5 Despite substantial barriers to widespread energy efficiency improve- ments in buildings, a number of countervailing factors could drive increased energy efficiency, including rising energy prices, growing concern about global climate change and the resulting willingness of consumers and businesses to take action to reduce emissions, a move- ment toward “green buildings,” and growing recognition of the signifi- cant nonenergy benefits offered by energy efficiency measures. 2.10 REFERENCES ACEEE (American Council for an Energy-Efficient Economy). 2007. The Potential for Electricity Conservation in New York State, September 1989. Prepared for the New York State Energy Research and Development Authority, Niagara Mohawk Power Corporation, and the New York State Energy Office. AHAM (Association of Home Appliance Manufacturers). 2008. Data compiled by the Association of Home Appliance Manufacturers. Washington, D.C.: AHAM. Available at http://www.aham.org. AIA (American Institute of Architects). 2007. As home energy costs remain high, residen- tial architects report that sustainable design motivates homeowners. AIArchitect This Week. Volume 14. September 7. Available at http://info.aia.org/aiarchitect/thisweek07/ 0907/0907n_econres.cfm. Amann, J.T., A. Wilson, and K. Ackerly. 2007. Consumer Guide to Home Energy Savings. 9th Edition. Washington, D.C.: American Council for an Energy-Efficient Economy. Anderson, R., and D. Roberts. 2008. Maximizing Residential Energy Savings: Net Zero Energy Home (ZEH) Technology Pathways. NREL/TP-550-44547. Golden, Colo.: National Renewable Energy Laboratory. November. Apte, J., and D. Arasteh. 2006. Window-Related Energy Consumption in the U.S. Residential and Commercial Building Stock. LBNL-60146. Berkeley, Calif.: Lawrence Berkeley National Laboratory. Available at http://gaia.lbl.gov/btech/papers/60146.pdf.

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 Real Prospects for Energy Efficiency in the United States Brown, R., S. Borgeson, J. Koomey, and P. Biermayer. 2008. U.S. Building-Sector Energy Efficiency Potential. LBNL-1096E. Berkeley, Calif.: Lawrence Berkeley National Laboratory. September. Available at http://repositories.cdlib.org/lbnl/LBNL-1096E. Burns, S., M. Goggin, D. Hinrichs, and K. Lee. 2006. Technical and economic assessment of solar thermal absorption cooling systems in small commercial buildings. Presented at the 2006 World Energy Engineering Congress. Available at http://www.natural energytechnologies.com/resources/WEEC_Paper_Hinrichs.pdf. Carter, S. 2001. Breaking the consumption habit: Ratemaking for efficient resource deci- sions. Electricity Journal 14(10):66-74. CEC (California Energy Commission). 2004. California Statewide Residential Appliance Saturation Study. Final Report. CEC-400-04-009. Sacramento, Calif.: CEC. June. Christian, J.E., D. Beal, and P. Kerrigan. 2004. Toward simple affordable zero energy hous- es. Proceedings of the Thermal Performance of the Exterior Envelopes of Buildings IX. Clearwater, Fla.: American Society of Heating, Refrigerating and Air-Conditioning Engineers. December. Craford, M.G. 2008. High power LEDs for solid state lighting: Status, trends, and chal- lenges. Journal of Light and Visual Environment 32(2):58-62. Creyts, J., A. Derkach, S. Nyquist, K. Ostrowski, and J. Stephenson. 2007. Reducing U.S. Greenhouse Gas Emissions: How Much at What Cost? McKinsey and Company. December. Curry, T.E., S. Ansolabehere, and H. Herzog. 2007. A Survey of Public Attitudes Towards Climate Change and Climate Change Mitigation Technologies in the United States: Analyses of 2006 Results. Cambridge, Mass.: Laboratory for Energy and the Environment, Massachusetts Institute of Technology. April. DeCanio, S.J. 1993. Barriers within firms to energy-efficient investments. Energy Policy 21(9):906-914. DeCotis, P.A., Lawrence J. Pakenas, J.M. Tarantino. 2004. Improving energy productivity: Successes and remaining potential. Proceedings of the 15th National Energy Services Conference and Exposition. Jupiter, Fla.: Association of Energy Service Professionals International. DOE (Department of Energy). 2004a. Whole-House Approach Benefits Builders, Buyers, and the Environment. Washington, D.C.: DOE. Available at http://apps1.eere.energy. gov/buildings/publications/pdfs/building_america/34867.pdf. DOE. 2004b. Cooling Technologies for Buildings. Washington, D.C.: DOE, Building Technologies Program. Available at http://www.eere.energy.gov/buildings/info/ components/hvac/cooling.html. DOE. 2008a. Energy Intensity Indicators in the U.S. Washington, D.C.: DOE, Office of Energy Efficiency and Renewable Energy. Available at http://www1.eere.energy.gov/ba/ pba/intensityindicators/trend_data.html.

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