2014_class-a-report_usgbc-la_eb-committee (2)
TRANSCRIPT
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2
E X E C U T I V E S U M M A R Y
This report is the outcome of the Existing Buildings Think Tank Roundtable held on May 28 2014 at the
City Club in downtown Los Angeles Over 70 participants representing building owners and managers
engineers utilities government trade associations and other industry professionals were in attendance to
discuss ideas and emerging trends related to the operation and performance of existing buildings The
discussion was organized around challenges and opportunities related to climate change energy and water
efficiency and key sustainability trends
The Think Tank Roundtable event is an annual event hosted by the USGBC-LA Existing Buildings
Committee and chapter strategic partners Information compiled and documented in this report is
intended to be a public resource Although most of the participants are based in the Los Angeles
metropolitan area this report might be useful nationally and internationally as well
The purpose of the Think Tank Roundtable is to share best practices lessons learned resources
challenges and opportunities around topics relevant to owners and managers of Class A buildings as well
as tenants brokers governmentand building professionals from all sectors This report highlights key
outcomes of the roundtable discussions and integrates feedback from additional stakeholders during the
months following the event
The key objectives of this report are to
Inspire action to deepen climate energy water and other environmental goals in the existing building
sector by defining critical challenges and potential solutions and by inviting key stakeholders to engage
in the discussion
Promote education by strategically reaching out to professionals that are in a position to influence the
achievement of the goals and objectives of the committee
Disseminate information by sharing the findings from this meeting through a number of venues
including making this report publicly available and holding an open meeting to discuss the report and any
new developments
EXECUTIVE SUMMARY
Co-Founder amp Co-Chair
Daniele Horton
Founder amp Principal Verdani Partners
Director of Sustainability Commonwealth Partners
Co-Chair
Sharla Shimono
Sustainability Coordinator
Kilroy Realty Corporation
Research Coordinator
Seth Strongin
Sustainability Manager
Leading Edge Consulting
Communications Coordinator
Khalilha Haynes
Sustainability Analyst
Green Dinosaur
Events Coordinator
Luke Patruno
Program Manager
USGBC-LA
Co-Founder amp Advisor
Kevin Devine
Brookfield Properties THINK TANK
A body of experts providing advice and ideas on specific political or [and] economic [environmental] problems
COMMITTEE LEADERSHIP
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3
TABLE OF CONTENTS 2014 THINK TANK ROUNDTABLE mdash CLASS A REPORT
INTRODUCTION 02
Executive Summary
Table of Contents
Partners for a Resilient Future
Green Building Snapshot
INDUSTRY UPDATES 08
Technical Support from USGBC-LA
Climate Leadership Through Collaboration
Resources for Building Owners amp Managers
Free Energy Audits and Rebate Information
Incentives for Efficiency
WATER EFFICIENCY 18
Current Conditions
Water Usage Per Capita
Conclusions and Resources
CLIMATE CHANGE 14
Resilience and Adaptation
Water Resilience
Energy Resilience
Environmental Resilience
SUSTAINABILITY TRENDS 27
Reporting and Disclosure
ENERGY EFFICIENCY 23
Retrofit Strategy
CLOSING REMARKS amp APPENDIX 29
Closing Remarks
Definitions
Resources
Partners and Sponsors
TECHNOLOGY 25
Smarter Technologies
Lead To Smarter Buildings
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 4
The Think Tank Roundtable event and report were made possible as part of a larger initiative in
collaboration with the USGBC-LA Existing Buildings Committee the California Sustainability Alliance
(CSA) a Southern California Gas (SoCalGas) program and Verdani Partners who was responsible for
putting the event and report together
About the California Sustainability Alliance
The USGBC-LA EB Committee was founded in 2009 by Daniele Horton and Kevin Devine This USGBC-
LA committee targets building owners and managers of high-rise commercial office buildings who are
implementing green operations and maintenance programs Members attend biannual forums to discuss
innovations in green operations and to share experiences and lessons learned from their internal efforts
and best practices The vision of the committee is to transform the way buildings are operated in order to
reduce energy and water consumption waste generation carbon emissions and operating expenses
while also increasing the buildings value and creating healthier more productive spaces for the buildingrsquos
occupants
About USGBC-LA Existing Buildings Committee
The California Sustainability Alliance (the Alliance) is designed to help meet the Statersquos aggressive energy
climate and other resource and environmental goals by increasing and accelerating energy efficiency in
combination with complementary green measures and strategies
About Verdani Partners
Verdani Partners is a full-service sustainability consulting firm Our mission is to empower organizations
with cost-effective strategies to create sustainable buildings and communities We maintains a high level
of knowledge in real estate building operations energy analysis financing and green building
certifications We are experts in greening large portfolios of existing buildings from managing
certifications to corporate sustainability programs
PARTNERS FOR A RESILIENT FUTURE
P A R T N E R S H I P S
Prepared for the California Sustainability Alliance and
the United States Green Building Council Los
Angeles Chapter (USGBC-LA) Existing Buildings (EB)
Committee by
Tanya Goyette Lead Author
Daniele Horton Contributor
Hanna Grene Contributor
Megan Moscol Contributor
Paulynn Cue Graphic Designer
Our mission is to increase implementation of sustainable building operations by advancing industry awareness and providing resources to facilitate community understanding of the significant life-cycle cost benefits of green building operation and maintenance best practices -USGBC-LA EB Committee
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 5
Green and energy-efficient buildings demand higher rent increase tenant productivity reduce operating
costs and have higher occupancy rates The upfront cost of green building improvements is a deterrent
commonly cited by building owners However data shows that green retrofits and increased energy and
water efficiency increase property values and many upgrades can deliver attractive short-term returns
Improving the performance of an existing building can range from a major renovation in pursuit on a
green certification such as LEEDreg or no and low-cost improvements such as schedule optimization
tenant engagement and lighting upgrades These no and low-cost measures can translate into significant
savings for owners of Class A buildings
INDUSTRY UPDATES
Los Angeles is poised to lead the state in resource efficiency and climate resilience To reach these
ambitious goals the public and private sectors must work together to facilitate improved energy
management and water conservation Industry leaders shared information about key trends no-cost
resources and programs to help Class A building owners improve building performance
CLIMATE CHANGE
After two decades of progressively intense extreme weather events severe droughts fires and higher
mean temperatures the climate conversation has shifted from mitigation to adaptation Class A buildings
will play an important leadership role in helping the City achieve its carbon reduction and resilience goals
WATER EFFICIENCY
With water supplies at an all time low water conservation is extremely important for all sectors despite
relatively steady water rates Los Angeles water utilities are investing in water reduction programs and
providing incentives for efficient equipment
INTRODUCTION
I N T R O D U C T I O N
High-performance buildings reduce operating costs command higher rents marketability and increase shareholder value Efficient building operations are key to staying competitive in todayrsquos market -Daniele Horton Founder amp Co-Chair USGBC-LA Existing Buildings Committee
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 6
ENERGY EFFICIENCY
In top real estate markets a Class A building must be an energy-efficient building In order to stay in the
lead building owners should consider deeper energy retrofits and equipment upgrades at the time of
aesthetic or tenant improvements
TECHNOLOGY
Smarter technology provides building owners and managers insight into how buildings perform in real time
throughout the lifecycle of the building Cloud-based software applications tied to building automation
systems (BAS) can prevent downtime events and help owners and managers reduce peak-load charges
SUSTAINABILITY TRENDS
Class A building owners can go beyond equipment upgrades to improve performance with tenant-level
metering data-specific engagement and energy and water use disclosure A greater push for transparency
is also influencing more owners to disclose their efficiency data
I N T R O D U C T I O N
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 7
GREEN BUILDING STATISTICS
Structures that are already built or near completion represent
99 of US building stock Most of the US building stock is over 20years old and
75 is ripe for a retrofit By 2050 CA aims to reduce carbon emissions
80 below 1990 levels Buildings are responsible for
39 CO2 emissions The average commercial building wastes an average of
30 energy it consumes Energy use reductions of 10 are possible with
Little or no cost Commercial and institutional building electricity use accounts for
60 building energy use
INDUSTRY UPDATES Industry experts from the Greater Los Angeles area kicked off
the 2014 Think Tank Roundtable with sector updates and information
about emerging trends in sustainability and real estate
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 9
Dominique Smith the Interim Executive Director of the USGBC-LA Chapter discussed two programs
the USGBC-LA chapter is currently spearheading and supporting including the Energy and Water
Ambassadors Program and the Green Janitor Education Program
The USGBC-LArsquos Energy and Water Ambassador Program connects Class B and C building owners and
managers with an ambassador to help them identify energy and water savings opportunities in their
buildings and the financing rebates and incentives required to move from analysis to investment
Through the program a USGBC-LA staff member meets onsite with the owner or management team to
identify building-specific energy and water conservation measures The ambassador identifies which
rebates and tax credits are available for the building advises on potential utility bill savings and assesses
LEED certification opportunities
The Green Janitor Education Program started as an idea to offer training in green cleaning safety
increasing energy efficiency and water conservation to janitors nationwide This program is currently
being piloted at seven buildings in Los Angeles and has already graduated 20 green janitors as of May
with the goal of 150 graduates by the end of summer
More information and resources available at
USGBC-LA
View Event Interview
TECHNICAL SUPPORT FROM USGBC-LA
As ambassadors we meet with building owners of all types siz-es and markets to identify ways they can run their operations in a more cost-effective way be sus-tainable and also save money
- Dominique Smith
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 0
Hilary Firestone Senior Energy Efficiency Project Manager for the City of Los Angeles provided an update
from the Mayorrsquos Office of Sustainability a new office which was created in 2013 to facilitate cross-agency
collaboration on sustainability issues
The Cityrsquos first Sustainability Plan looks at the work thatrsquos already been done to reduce emissions and also
examines strategies for further mitigation and adaptation The Plan described as ldquothe 20 of sustainability
plansrdquo looks at the traditional areas of transportation air water greenhouse gases as well as provides new
and innovative strategies A key theme in the report is collaboration with an emphasis on the importance of all
sectors working together to cut emissions
Buildings and transportation are the primary sources of carbon emissions in Los Angeles with 51 coming
from buildings alone In 2013 Los Angeles had the most ENERGY STARreg certified buildings in the country but
the majority of the Cityrsquos building stock has a significant opportunity to improve energy and water efficiency
ldquoIt is going to bethe building ownerrsquos responsibility to install EV chargers on their properties and the
responsibility of the City to facilitate improvements to public transportationrdquo said Firestone providing an
example of how the public and private sectors will need to work together to achieve the cityrsquos aggressive
emissions reductions targetrdquo
Another example of public and private partnership comes in the form of incentive programs The Los Angeles
Department of Water and Energy allocated $50 million to energy efficiency for the 2012-2013 fiscal year and
$101 million for 2013-2014 In addition to utility and nonprofit programs the city is working to help building
owners and managers overcome the challenges and barriers that have prevented them from investing in
energy and water retrofits in the past
One of the main barriers to catalyzing investment in energy efficiency is a lack of information about energy use
in buildings ldquoOne of the efforts wersquore working on at the state level is making it easy for building owners to get
access to their own energy datardquo said Firestone ldquoWe are trying to make that information easier for building
owners to access and understand so everyone is held accountable and responsible for their energy
consumption ndash not just the owners but the tenants that are occupying the building Everyone has a stake in
terms of trying to reduce our energy userdquo
More information and resources available at
httpenvironmentlaorg
wwwcityenergyprojectorg
CLIMATE LEADERSHIP THROUGH COLLABORATION
The City will lead by example with our own buildings We are going to start with benchmarking our energy and water use and making that information transparent
ndash Hilary Firestone
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 1
William Lowery President of Tālō Management Group and BOMA Sustainability Chair shared
information on BOMArsquos sustainability initiatives and resources for members
The Building Owners and Managers Association (BOMA) Sustainability Committee of Greater Los
Angeles holds monthly discussions on issues that affect existing buildings high rises and Class A B and C
buildings Recent topics include water conservation Title 24 cosmpliance water and energy to retrofits
and emerging technology The Sustainability Committee also seeks to address challenges faced by BOMA
members in the Greater Los Angeles area
With the passing of Assembly Bill 1103 which went into effect in January BOMA LA hosted webinars and
hands-on trainings in West and downtown Los Angeles to help building owners and manager comply with
the new regulation
In August the organization held their fourth annual Great Los Angeles Sustainability Seminar which
covered the value of green building improvements and operations and third-party certifications such as
LEED ENERGY STAR and BOMA 360
More information and resources available at
wwwbomaglaorg
View Event Interview
RESOURCES FOR BUILDING OWNERS amp MANAGERS
We partner with organizations like the USGBC and the LA BBC make sure we are spreading the information collected and needed and provide that information to building owners and managers to effectively assist in making change
ndash William Lowery
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 2
Ben Stapleton Director of Commercial Property at LA Better Buildings Challenge (LABBC) told
attendees how Los Angeles is working to reduce energy and water use 20 by 2020 as part of the
National Better Buildings Competition
LABBC is a utility-funded local initiative that is part of the US Department of Energyrsquos Better Buildings
Challenge LABBC surpassed its goal of enrolling 30 million square feet of building space and now has 36
million square feet of building space where owners and managers have committed to reduce energy use
20 by 2020 LA BBC offers no-cost services and subsidies such as energy tracking and analysis audits
project development support and recognition
This year LABBC began offering two new services to help building owners and managers achieve deeper
energy savings LA BBC partnered with contractors to offer challenge participants reduced pricing on
standard efficiency upgrades
ldquoContractors enrolling in this program agree to adhere to a certain set of principles provide their
qualifications and agree to provide standard deliverablesrdquo explained Stapleton ldquoIt is really accelerating
the process for buildings in our program in terms of retrofitting their assetsrdquo
The Tenant Engagement Program (TEP) helps landlords property managers and tenants overcome split-
incentives to help owners recover capital costs and tenants benefit from energy savings The LABBC also
helps participants identify financing such as PACE bonds to fund building performance upgrades
More information and resources available at
wwwla-bbccom
FREE ENERGY AUDITS amp REBATE INFORMATION
We need to focus on how to create value for building owners For LA BBC our goal is to make energy efficiency cheaper easier and faster
ndash Ben Stapleton
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 3
Robert Estrada a water conservation specialist with the Los Angeles Department of Water and Power
(LADWP) encouraged attendees to take advantage of water and energy-savings incentive programs
Estrada began his presentation with a reminder of the dire drought conditions that LA is facing ldquoHere in
Southern California we built water storage for these times Metropolitan Water serves 26 retail water
agencies and the city of LA is their largest customer With approximately 24 million acre feet of water in
emergency storage they are going to draw down 1 million acre feet this year We are really crossing our
fingers for El Nino because we need itrdquo
Per capita water use is at 133 gallons per person per day in Los Angeles LADWP offers incentive
programs to reduce water usage such as turf removal for commercial properties starting at two dollars a
square foot for up to 5000 square feet They also have a Technical Assistance Program with incentives
for water-efficient building upgrades and operations
LADWP also offers a Savings By Design program in partnership with SoCalGas through the Energy
Efficiency Technical Assistance Program (EETAP) ldquoThis program allows customers to get a comprehensive
assessment of their building to identify energy water and gas savings We pay for incentives as they
implement efficiency measuresrdquo In addition to their standard lighting retrofit program LADWP offers a
Custom Performance Program that offers incentives for upgrades following an energy audit Incentives can
now also be used for permitting project management or design fees in addition to efficient technologies
Through the EETAP program auditing services can also be covered through incentives
More information and resources available at
wwwladwpcom
View Event Interview
INCENTIVES FOR EFFICIENCY
For commercial buildings if you have a cooling tower it can use up to half of the buildingrsquos water By going from 25 to 55 [cycles] thatrsquos an overall 30 water savings
ndash Robert Estrada
I N D U S T R Y U P D A T E S
CLIMATE CHANGE RESILIENCE AND ADAPTATION
38 Experiencing
Impacts Now
17 Within
5 Years
7 Beyond
10 Years
31 Donrsquot Know
No Information
7 Within
10 Years
Most Companies
Experience
or Expect
Climate Impacts
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 5
RESILIENCE amp ADAPTATION
In 2013 and 2014 the conversation in the market transitioned from one of potential impacts of climate
change to the realities of adaptation and resilience The EPA released a Climate Adaptation Plan in Febru-
ary 2013 Grosvenor released a Resilient Cities Research Report and the Urban Land Institute launched
an Urban Resilience program and hosted their first annual Building the Resilient City conference
This shift in focus to resilience in the face of adversity comes after two decades of progressively intense
extreme weather events and higher mean temperatures In order to effectively support business opera-
tions our buildings need to be ready to bounce back from disaster with minimum damage and downtime
in addition to absorbing overall increases in temperature
This April the Grosvenor real estate company released a report detailing the findings of their analysis of
the resilience of 50 international cities They defined resilience as a cityrsquos ability to ldquopreserve capital val-
ues and generate sustainable rental income in the long term absorb shocks like natural disasterrdquo and
ldquomaintain their output of goods and services and continue to provide their inhabitants with a good quality
of life according to the standards of the timerdquo
Using this methodology Los Angeles was ranked 21 out of the 50 evaluated cities Although LA earned a
high score for adaptability other factors like rising sea levels earthquakes limited access to potable wa-
ter and socioeconomic stressors increase its vulnerability
Governments arenrsquot the only entity working on resiliency plans Insurance companies are evaluating their
exposure to risk and forward-thinking building owners are drafting climate adaptation plans to catalog
and prevent predictable system failures in addition to developing emergency preparedness and disaster
plans Such plans address the incremental changes in availability of water increasing temperature and
other environmental and social pressures arising from climate change
Roundtable attendees were most focused on how buildings can contribute to grid reliability through load
shifting on-site power generation demand response programs seismic retrofits and voluntary resilience
ratings to lead the market
Resilience increases when cities have more adaptive capacity and decreases when they are more vulnerable
- Resilient Cities Research Report
C L I M A T E C H A N G E
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 6
WATER ENERGY amp ENVIRONMENT MANAGING CLIMATE RISKS
WATER RESILIENCE
The current extreme drought conditions in California have exposed vulnerabilities in the statersquos
water storage and delivery systems Outdated infrastructure inability to increase water rates overpump-
ing and salination of groundwater sources conflicting municipal and community policies and limited ac-
cess to alternative water sources contribute to increasing water stress While Los Angeles has maintained
level water use per capita since the 70rsquos a result of successful metering programs population growth has
pushed water supplies to the limit
ENERGY RESILIENCE
Reducing overall energy usage especially in existing buildings three years or older is the first and
best line of defense in grid reliability Because peak usage times are those times when the grid experienc-
es the most demand up to 40 of a buildingrsquos energy costs comes from peak load energy charges De-
mand response energy storage and on-site generation can effectively reduce costs associated with the
purchase of grid-source peak energy
Demand response programs commonly referred to as Flex Alerts in California have increased in availa-
bility and participation across residential and commercial sectors throughout the state As one participant
put it ldquodemand response is becoming a part of LADWPrsquos DNArdquo Industry experts predict that demand
response programs will become mandatory within the next 10-15 years if not sooner and recommend
that building owners consider capturing the benefits of voluntary participation while it is available
On-site generation using fuel cells to reduce peak grid-source energy use was foremost on participantsrsquo
minds They cited lack of space as the primary reason more on-site generation has not been adopted
Consensus in the group was that renewable energy options generally do not provide an attractive return
on investment even with incentives to justify the allocation of space required to generate meaningful
quantities of energy
Energy storage using battery systems has been developing rapidly and at least one forum attendee ex-
pects to see uptake of market-ready solutions within the next year Incentives are available for up to 3
of the up-front costs of these systems Batteries allow building owners to store energy during off-peak
hours at lower energy rates for use during peak hours
C L I M A T E C H A N G E
BUILD AWARENESS
Educate building managers ten-
ants and employees at all levels
about the need to build the adap-
tive capacity to manage risks in
the long term
ASSESS VULNERABILITIES
Determine the threat climate dis-
ruption poses to core building
operations supplies building and
tenant work force customers and
key services
MANAGE RISKS AND
PURSUE OPPORTUNITIES
Fortify or relocate infrastructure
plan for changes in water and en-
ergy availability or review supply
chain vulnerabilities
REVIEW RISK ASSESSMENTS
AND MAKE PLANS
Continuously review risks and
opportunities regularly using
centralized assessment tools and
develop adaptive risk manage-
ment plans
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 7
C L I M A T E C H A N G E
ENVIRONMENTAL RESILIENCE
While frequency of earthquakes is not directly linked to climate change response to earth-
quakes is certainly a factor in building resilience and an area of vulnerability in Los Angeles The most im-
portant component of building resilience in Los Angeles is the choice of structural materials Steel frame
buildings are considerably more adaptable and thereby more resilient than their concrete-framed coun-
terparts
A seismic-readiness survey of the city of Los Angeles conducted by a team of UC Berkeley researchers
revealed that a number of buildings require retrofits to meet seismic standards These buildings are pri-
marily smaller concrete structures prompting attendees to note that the least resilient buildings are fre-
quently controlled by building owners with the fewest resources both capital and staff to manage re-
quired upgrades Add the fear of triggering potentially costly Title 24 energy upgrades and compliance
with seismic standards becomes nearly impossible
One attendee suggested that seismic upgrades be linked to energy efficiency upgrades creating an op-
portunity for a deep retrofit that raises the overall value and stature of the property The challenge is en-
couraging these owners of concrete building who are frequently hesitant to incorporate major capital
improvements to comply The perception of complexity is already a significant obstacle to adoption of a
number of incentive and financing opportunities
Infographics on page 14 and 16 source ldquoWeathering the Storm Building Business Resilience to Climate Changerdquo Center for Cli-
mate and Energy Solutions Munich Re National Oceanic and Atmospheric Aon Benfield Lloydrsquos of London
Policy and regulations will con-tinue to drive local governments and the building industry to address climate change risks infrastructure needs and increased resource needs for water energy and demographic shifts Proactive owners need to stay in front of these risks and get ready to recover from natural disasters with minimum damage and downtime
- Daniele Horton Founder amp Principal
Verdani Partners
WATER EFFICIENCY SECTION DIVIDER SIDEBAR HEADER GOES HERE WATER EFFICIENCY
19
00
19
40
20
10
20
15
20
50
Colorado River
Annual Average
River Flow
NO AND LOW COST MEASURES
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 9
Drought in California and water conservation is the new norm ndash Robert Estrada Los Angeles Department of Water and Power
Source US Drought Monitor (httpdroughtmonitorunledu)
The current extreme drought in California has exposed vulnerabilities in the statersquos water storage and
delivery systems Outdated infrastructure over pumping of ground water supplies pollution of ground
water supplies by fracking and other activities conflicting municipal and community policies climate
change increased demand and limited access to alternative water sources contribute to increasing water
stress While Los Angeles has maintained level water use per capita for the past forty years a result of
successful metering programs population growth has pushed water supplies to the limit Climate change
has also greatly affected the snow pack water supplies and the underground water reserves are been
tapped at an unprecedented rate The state is facing one of its worst droughts in history and a massive
effort will be needed to find solutions to meet its water demand needs
In response to current conditions Los Angeles Mayor Eric Garcetti signed an Executive Directive on
October 14 2014 to reduce potable water use 20 by 2017 This includes removing turf landscaping at
city buildings and replacing it with native and drought-resistant plants The directive also mandates the
CURRENT CONDITIONS
LOS ANGELES WATER SUPPLY
1 Recycled
Water
11 Groundwater
37 LA Aqueduct
51 Purchased from
Metropolitan
Water District
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 0
Los Angeles Department of Water and Power (LADWP) to reduce water imports 50 by 2024
It was also discussed that the cost of water is still quite low which makes the business case for making
water efficiency upgrades more challenging Some of the attendees mentioned that a price signal would
be critical to incentivize additional water efficiency upgrades and lower water usage The LADWP rep
explained that because they are a public entity that they cannot charge for the water They can only
charge to transport the water and any rate increases need to be approved by the voters which makes the
process for increasing the fees for water very challenging
A best practice for conservation and one that has helped Los Angeles maintain the lowest consumption
for any city with a population over 1 million is metering
LADWP launched their conservation program in the late 1970s Today the LADWP provides extensive
incentive programs for water use reduction efforts including prescriptive or menu-based programs and
more flexible technical assistance programs While more involved the technical assistance programs
cover a larger variety of costs associated with pre-approved water conservation measures including
consulting fees Recently utilization of technical assistance programs has surpassed the traditional menu-
based programs although many building
owners interviewed were still unaware of
the technical assistance program
While improving the efficiency of indoor
water fixtures has been a popular and well-publicized program historically utilities have identified cooling
towers and outdoor water use as 70+ of annual building water consumption making them the target of
renewed water conservation efforts including access to reclaimed water widespread adoption of rain
sensors reverse osmosis systems and microfiltration systems
70+ of annual building water consumption -
cooling towers and outdoor water use
WATER RETROFIT OPPORTUNITIES
Install metering devices and controls
Perform ongoing distribution system
audits leak detection and repair
Install native and drought resistant
landscape
Maximize indoor plumbing fixture and
fitting efficiency (toilets urinals faucets
aerators and showerheads)
Implement a cooling tower chemical
management and water efficiency
program
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 1
WATER USAGE PER CAPITA
133 GALLONSDAYPERSON
Daily water use (LADWP) all customers Second
lowest in the nation for cities over 1 million
people NY beats LA
Source California Department of Water Resources
LADWP provides extensive prescriptive and menu-based programs as well as more flexible technical
assistance programs to incentivize water use reductions The technical assistance programs require more
upfront involvement from property managers but also cover a larger variety of costs associated with pre-
approved water conservation measures including consulting fees In recent years technical assistance
programs have increased in popularity and have surpassed the traditional menu-based programs These
ratepayer-funded programs are offered at no additional cost to residential and commercial customers By
the end of 2014 LADWP will have invested$60 million dollars in water conservation incentive programs
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 2
As water efficiency regulations become more stringent and water rates continue to rise property owners
and operators can reap immediate benefits from low-cost measures such as the installation of aerators
and quickly recoup investments in upgrading indoor water fixtures
Building managers can reduce water use by installing low-flow or ultra low-flow fixtures fittings and
equipment such as toilets and urinals that exceed current code requirements per recommendations below
Water closets max 16 gallonsflush
Urinals max 0125 to 05 gallonflush
Shower heads max 18 gallonsminute
Faucets max 10 gallonsminute
Replacement aerators max 05 gallonsminute
Metering faucets max 025 gallonscycle
To help meet the Cityrsquos aggressive water conservation goals building owners will be encouraged to move
beyond upgrades to efficient indoor water fixtures for deeper savings Cooling towers and outdoor water
use account for an average of 70 of building water consumption making them the target of increased
water conservation efforts
Reclaimed water is currently restricted to limited areas There are plans to further develop water
reclamation projects for Los Angeles however its use is limited by state health requirements and the
high cost of pumping plants and distribution facilities to deliver water from the reclamation plants to the
customers Robert Estrada of LADWP reports that the cost is an estimated million dollars per mile of
purple pipe However if Assembly Bill 2282 passes all new residential and commercial construction with
access to reclaimed water will be required to incorporate it into approved uses such as landscaping and
reclaimed water infrastructure would necessarily expand
The statersquos water supplies are at all times low underground water supplies are rapidly diminishing and
demand for water continues to grow Solutions to solve our water supply needs will involve many
different solutions from efficiency programs to lower demand a price signal and a search for new water
sources and importing water and desalinization plants
LOS ANGELES DWP
Since 1990 LA Department of Water and Power has
spent about $280 million on conservation programs
METROPOLITAN WATER DISTRICT
Metropolitan provides rebates on water efficient
fixtures financial assistance for water reduction
projects and incentives programs
MAYORrsquoS DIRECTIVE TO CUT WATER USE
(LA Times article) LA Mayor Eric Garcetti signed an
executive directive to further cut potable water use
20X2020 WATER CONSERVATION PLAN
Statewide plan enacted in 2010 to reduce water
consumption by 20 by 2020
SENATE BILL SB X7-7 2009
This Senate bill requires all water suppliers to increase
water efficiency
WATERSENSE
A recognized seal of approval for water efficiency
similar to ENERGY STAR
DOE WATER EFFICIENCY BMPS
Water Efficiency Best Management Practices from the
US Department of Energy
CONCLUSION RESOURCES
W A T E R E F F I C I E N C Y
E N E R G Y E F F I C I E N C Y
RENEWABLE
HYDRO GEOTHERMAL
WIND SOLAR
BIO-DIESEL BIO-MASS
EFFICIENCY
CO-GENERATION
EFFICIENT APPLIANCES EFFICIENT LIGHTING
EFFICIENT VEHICLES EFFICIENT BUILDINGS
INTELLIGENT POWER NETWORKS DECENTRALIZED GRIDS
CONSERVATION
GREY WATER RECYCLING ALTERNATIVE TRANSPORTATION
ENERGY EFFICIENCY RETROFIT STRATEGY
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 4
Many retrofits occur on a piecemeal basis as incentives become available or contractors provide upgrade
recommendations However many buildings especially those that are considering aesthetic or structural
improvements may benefit from a more comprehensive deep energy retrofit
The key components of a deep retrofit process are ongoing energy management assembling an
interdisciplinary team robust analysis and measurement and verification This process is not linear
phases may overlap or go on concurrently and will vary based on factors such as ownership structure
scale of building project delivery method and building complexity
While net zero was once considered a faraway goal for only the most technologically advanced buildings
the National Renewable Energy Laboratory found that there is now the technical potential for over 47
percent of existing US commercial building floor space to achieve net zero energy using existing
technologies and design processes
Net zero may seem unachievable but it can be done using the same principles as effective deep retrofits The
process starts with a solid understanding of baseline operations and expenditures and benefits from
extensive modeling and cost-benefit analysis to optimize systems choice for highest return on investment
There is considerable guidance within the market on how to retrofit buildings with sustainable
technologies to improve their environmental performance A significant barrier however to carrying out
sustainable retrofits is financing A number of financing mechanisms exist and each scenario is unique
Most building owners will choose to use
their own capital when available to avoid
time-intensive administration activities
Other traditional financing options
include loans and bond programs as well
as increases to operating fees or capital leases Building owners and managers can also take advantage of
funding improvements through bill savings (as with performance contracting with Energy Service
Contractors or ESCOrsquos) PACE bonds energy service agreements on-bill financing incentives and rebates
As utility rates continue to rise the incentive to implement energy efficiency projects has gone from cost
savings to cost avoidance This challenge is coupled with how to finance retrofit projects and what to do
once incentivized equipment has been installed
RETROFIT STRATEGY
E N E R G Y E F F I C I E N C Y
21+ Utilities represent an average of 21 of
total building expenses
ndash2012 BOMA Exchange Report
ENERGY RETROFIT OPPORTUNITIES
Monitor meter and commission main
building systems
Maximize heating and cooling efficiencies
and install variable frequency drives on
equipment
Lighting upgrades and controls (efficient
lights daylight harvesting motion sensors
etc)
Install a building automation system
invest in DDC wireless controls energy
optimization software and demand
response infrastructure
Retrofit main building systems chillers
cooling towers boilers fan motors
Building envelope Seal windows install
window films retrofit windows with
higher R-Value
Invest in on-site generation and
renewable Energy systems (fuel cell wind
geothermal and solar energy)
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3
TABLE OF CONTENTS 2014 THINK TANK ROUNDTABLE mdash CLASS A REPORT
INTRODUCTION 02
Executive Summary
Table of Contents
Partners for a Resilient Future
Green Building Snapshot
INDUSTRY UPDATES 08
Technical Support from USGBC-LA
Climate Leadership Through Collaboration
Resources for Building Owners amp Managers
Free Energy Audits and Rebate Information
Incentives for Efficiency
WATER EFFICIENCY 18
Current Conditions
Water Usage Per Capita
Conclusions and Resources
CLIMATE CHANGE 14
Resilience and Adaptation
Water Resilience
Energy Resilience
Environmental Resilience
SUSTAINABILITY TRENDS 27
Reporting and Disclosure
ENERGY EFFICIENCY 23
Retrofit Strategy
CLOSING REMARKS amp APPENDIX 29
Closing Remarks
Definitions
Resources
Partners and Sponsors
TECHNOLOGY 25
Smarter Technologies
Lead To Smarter Buildings
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 4
The Think Tank Roundtable event and report were made possible as part of a larger initiative in
collaboration with the USGBC-LA Existing Buildings Committee the California Sustainability Alliance
(CSA) a Southern California Gas (SoCalGas) program and Verdani Partners who was responsible for
putting the event and report together
About the California Sustainability Alliance
The USGBC-LA EB Committee was founded in 2009 by Daniele Horton and Kevin Devine This USGBC-
LA committee targets building owners and managers of high-rise commercial office buildings who are
implementing green operations and maintenance programs Members attend biannual forums to discuss
innovations in green operations and to share experiences and lessons learned from their internal efforts
and best practices The vision of the committee is to transform the way buildings are operated in order to
reduce energy and water consumption waste generation carbon emissions and operating expenses
while also increasing the buildings value and creating healthier more productive spaces for the buildingrsquos
occupants
About USGBC-LA Existing Buildings Committee
The California Sustainability Alliance (the Alliance) is designed to help meet the Statersquos aggressive energy
climate and other resource and environmental goals by increasing and accelerating energy efficiency in
combination with complementary green measures and strategies
About Verdani Partners
Verdani Partners is a full-service sustainability consulting firm Our mission is to empower organizations
with cost-effective strategies to create sustainable buildings and communities We maintains a high level
of knowledge in real estate building operations energy analysis financing and green building
certifications We are experts in greening large portfolios of existing buildings from managing
certifications to corporate sustainability programs
PARTNERS FOR A RESILIENT FUTURE
P A R T N E R S H I P S
Prepared for the California Sustainability Alliance and
the United States Green Building Council Los
Angeles Chapter (USGBC-LA) Existing Buildings (EB)
Committee by
Tanya Goyette Lead Author
Daniele Horton Contributor
Hanna Grene Contributor
Megan Moscol Contributor
Paulynn Cue Graphic Designer
Our mission is to increase implementation of sustainable building operations by advancing industry awareness and providing resources to facilitate community understanding of the significant life-cycle cost benefits of green building operation and maintenance best practices -USGBC-LA EB Committee
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 5
Green and energy-efficient buildings demand higher rent increase tenant productivity reduce operating
costs and have higher occupancy rates The upfront cost of green building improvements is a deterrent
commonly cited by building owners However data shows that green retrofits and increased energy and
water efficiency increase property values and many upgrades can deliver attractive short-term returns
Improving the performance of an existing building can range from a major renovation in pursuit on a
green certification such as LEEDreg or no and low-cost improvements such as schedule optimization
tenant engagement and lighting upgrades These no and low-cost measures can translate into significant
savings for owners of Class A buildings
INDUSTRY UPDATES
Los Angeles is poised to lead the state in resource efficiency and climate resilience To reach these
ambitious goals the public and private sectors must work together to facilitate improved energy
management and water conservation Industry leaders shared information about key trends no-cost
resources and programs to help Class A building owners improve building performance
CLIMATE CHANGE
After two decades of progressively intense extreme weather events severe droughts fires and higher
mean temperatures the climate conversation has shifted from mitigation to adaptation Class A buildings
will play an important leadership role in helping the City achieve its carbon reduction and resilience goals
WATER EFFICIENCY
With water supplies at an all time low water conservation is extremely important for all sectors despite
relatively steady water rates Los Angeles water utilities are investing in water reduction programs and
providing incentives for efficient equipment
INTRODUCTION
I N T R O D U C T I O N
High-performance buildings reduce operating costs command higher rents marketability and increase shareholder value Efficient building operations are key to staying competitive in todayrsquos market -Daniele Horton Founder amp Co-Chair USGBC-LA Existing Buildings Committee
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 6
ENERGY EFFICIENCY
In top real estate markets a Class A building must be an energy-efficient building In order to stay in the
lead building owners should consider deeper energy retrofits and equipment upgrades at the time of
aesthetic or tenant improvements
TECHNOLOGY
Smarter technology provides building owners and managers insight into how buildings perform in real time
throughout the lifecycle of the building Cloud-based software applications tied to building automation
systems (BAS) can prevent downtime events and help owners and managers reduce peak-load charges
SUSTAINABILITY TRENDS
Class A building owners can go beyond equipment upgrades to improve performance with tenant-level
metering data-specific engagement and energy and water use disclosure A greater push for transparency
is also influencing more owners to disclose their efficiency data
I N T R O D U C T I O N
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 7
GREEN BUILDING STATISTICS
Structures that are already built or near completion represent
99 of US building stock Most of the US building stock is over 20years old and
75 is ripe for a retrofit By 2050 CA aims to reduce carbon emissions
80 below 1990 levels Buildings are responsible for
39 CO2 emissions The average commercial building wastes an average of
30 energy it consumes Energy use reductions of 10 are possible with
Little or no cost Commercial and institutional building electricity use accounts for
60 building energy use
INDUSTRY UPDATES Industry experts from the Greater Los Angeles area kicked off
the 2014 Think Tank Roundtable with sector updates and information
about emerging trends in sustainability and real estate
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 9
Dominique Smith the Interim Executive Director of the USGBC-LA Chapter discussed two programs
the USGBC-LA chapter is currently spearheading and supporting including the Energy and Water
Ambassadors Program and the Green Janitor Education Program
The USGBC-LArsquos Energy and Water Ambassador Program connects Class B and C building owners and
managers with an ambassador to help them identify energy and water savings opportunities in their
buildings and the financing rebates and incentives required to move from analysis to investment
Through the program a USGBC-LA staff member meets onsite with the owner or management team to
identify building-specific energy and water conservation measures The ambassador identifies which
rebates and tax credits are available for the building advises on potential utility bill savings and assesses
LEED certification opportunities
The Green Janitor Education Program started as an idea to offer training in green cleaning safety
increasing energy efficiency and water conservation to janitors nationwide This program is currently
being piloted at seven buildings in Los Angeles and has already graduated 20 green janitors as of May
with the goal of 150 graduates by the end of summer
More information and resources available at
USGBC-LA
View Event Interview
TECHNICAL SUPPORT FROM USGBC-LA
As ambassadors we meet with building owners of all types siz-es and markets to identify ways they can run their operations in a more cost-effective way be sus-tainable and also save money
- Dominique Smith
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 0
Hilary Firestone Senior Energy Efficiency Project Manager for the City of Los Angeles provided an update
from the Mayorrsquos Office of Sustainability a new office which was created in 2013 to facilitate cross-agency
collaboration on sustainability issues
The Cityrsquos first Sustainability Plan looks at the work thatrsquos already been done to reduce emissions and also
examines strategies for further mitigation and adaptation The Plan described as ldquothe 20 of sustainability
plansrdquo looks at the traditional areas of transportation air water greenhouse gases as well as provides new
and innovative strategies A key theme in the report is collaboration with an emphasis on the importance of all
sectors working together to cut emissions
Buildings and transportation are the primary sources of carbon emissions in Los Angeles with 51 coming
from buildings alone In 2013 Los Angeles had the most ENERGY STARreg certified buildings in the country but
the majority of the Cityrsquos building stock has a significant opportunity to improve energy and water efficiency
ldquoIt is going to bethe building ownerrsquos responsibility to install EV chargers on their properties and the
responsibility of the City to facilitate improvements to public transportationrdquo said Firestone providing an
example of how the public and private sectors will need to work together to achieve the cityrsquos aggressive
emissions reductions targetrdquo
Another example of public and private partnership comes in the form of incentive programs The Los Angeles
Department of Water and Energy allocated $50 million to energy efficiency for the 2012-2013 fiscal year and
$101 million for 2013-2014 In addition to utility and nonprofit programs the city is working to help building
owners and managers overcome the challenges and barriers that have prevented them from investing in
energy and water retrofits in the past
One of the main barriers to catalyzing investment in energy efficiency is a lack of information about energy use
in buildings ldquoOne of the efforts wersquore working on at the state level is making it easy for building owners to get
access to their own energy datardquo said Firestone ldquoWe are trying to make that information easier for building
owners to access and understand so everyone is held accountable and responsible for their energy
consumption ndash not just the owners but the tenants that are occupying the building Everyone has a stake in
terms of trying to reduce our energy userdquo
More information and resources available at
httpenvironmentlaorg
wwwcityenergyprojectorg
CLIMATE LEADERSHIP THROUGH COLLABORATION
The City will lead by example with our own buildings We are going to start with benchmarking our energy and water use and making that information transparent
ndash Hilary Firestone
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 1
William Lowery President of Tālō Management Group and BOMA Sustainability Chair shared
information on BOMArsquos sustainability initiatives and resources for members
The Building Owners and Managers Association (BOMA) Sustainability Committee of Greater Los
Angeles holds monthly discussions on issues that affect existing buildings high rises and Class A B and C
buildings Recent topics include water conservation Title 24 cosmpliance water and energy to retrofits
and emerging technology The Sustainability Committee also seeks to address challenges faced by BOMA
members in the Greater Los Angeles area
With the passing of Assembly Bill 1103 which went into effect in January BOMA LA hosted webinars and
hands-on trainings in West and downtown Los Angeles to help building owners and manager comply with
the new regulation
In August the organization held their fourth annual Great Los Angeles Sustainability Seminar which
covered the value of green building improvements and operations and third-party certifications such as
LEED ENERGY STAR and BOMA 360
More information and resources available at
wwwbomaglaorg
View Event Interview
RESOURCES FOR BUILDING OWNERS amp MANAGERS
We partner with organizations like the USGBC and the LA BBC make sure we are spreading the information collected and needed and provide that information to building owners and managers to effectively assist in making change
ndash William Lowery
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 2
Ben Stapleton Director of Commercial Property at LA Better Buildings Challenge (LABBC) told
attendees how Los Angeles is working to reduce energy and water use 20 by 2020 as part of the
National Better Buildings Competition
LABBC is a utility-funded local initiative that is part of the US Department of Energyrsquos Better Buildings
Challenge LABBC surpassed its goal of enrolling 30 million square feet of building space and now has 36
million square feet of building space where owners and managers have committed to reduce energy use
20 by 2020 LA BBC offers no-cost services and subsidies such as energy tracking and analysis audits
project development support and recognition
This year LABBC began offering two new services to help building owners and managers achieve deeper
energy savings LA BBC partnered with contractors to offer challenge participants reduced pricing on
standard efficiency upgrades
ldquoContractors enrolling in this program agree to adhere to a certain set of principles provide their
qualifications and agree to provide standard deliverablesrdquo explained Stapleton ldquoIt is really accelerating
the process for buildings in our program in terms of retrofitting their assetsrdquo
The Tenant Engagement Program (TEP) helps landlords property managers and tenants overcome split-
incentives to help owners recover capital costs and tenants benefit from energy savings The LABBC also
helps participants identify financing such as PACE bonds to fund building performance upgrades
More information and resources available at
wwwla-bbccom
FREE ENERGY AUDITS amp REBATE INFORMATION
We need to focus on how to create value for building owners For LA BBC our goal is to make energy efficiency cheaper easier and faster
ndash Ben Stapleton
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 3
Robert Estrada a water conservation specialist with the Los Angeles Department of Water and Power
(LADWP) encouraged attendees to take advantage of water and energy-savings incentive programs
Estrada began his presentation with a reminder of the dire drought conditions that LA is facing ldquoHere in
Southern California we built water storage for these times Metropolitan Water serves 26 retail water
agencies and the city of LA is their largest customer With approximately 24 million acre feet of water in
emergency storage they are going to draw down 1 million acre feet this year We are really crossing our
fingers for El Nino because we need itrdquo
Per capita water use is at 133 gallons per person per day in Los Angeles LADWP offers incentive
programs to reduce water usage such as turf removal for commercial properties starting at two dollars a
square foot for up to 5000 square feet They also have a Technical Assistance Program with incentives
for water-efficient building upgrades and operations
LADWP also offers a Savings By Design program in partnership with SoCalGas through the Energy
Efficiency Technical Assistance Program (EETAP) ldquoThis program allows customers to get a comprehensive
assessment of their building to identify energy water and gas savings We pay for incentives as they
implement efficiency measuresrdquo In addition to their standard lighting retrofit program LADWP offers a
Custom Performance Program that offers incentives for upgrades following an energy audit Incentives can
now also be used for permitting project management or design fees in addition to efficient technologies
Through the EETAP program auditing services can also be covered through incentives
More information and resources available at
wwwladwpcom
View Event Interview
INCENTIVES FOR EFFICIENCY
For commercial buildings if you have a cooling tower it can use up to half of the buildingrsquos water By going from 25 to 55 [cycles] thatrsquos an overall 30 water savings
ndash Robert Estrada
I N D U S T R Y U P D A T E S
CLIMATE CHANGE RESILIENCE AND ADAPTATION
38 Experiencing
Impacts Now
17 Within
5 Years
7 Beyond
10 Years
31 Donrsquot Know
No Information
7 Within
10 Years
Most Companies
Experience
or Expect
Climate Impacts
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 5
RESILIENCE amp ADAPTATION
In 2013 and 2014 the conversation in the market transitioned from one of potential impacts of climate
change to the realities of adaptation and resilience The EPA released a Climate Adaptation Plan in Febru-
ary 2013 Grosvenor released a Resilient Cities Research Report and the Urban Land Institute launched
an Urban Resilience program and hosted their first annual Building the Resilient City conference
This shift in focus to resilience in the face of adversity comes after two decades of progressively intense
extreme weather events and higher mean temperatures In order to effectively support business opera-
tions our buildings need to be ready to bounce back from disaster with minimum damage and downtime
in addition to absorbing overall increases in temperature
This April the Grosvenor real estate company released a report detailing the findings of their analysis of
the resilience of 50 international cities They defined resilience as a cityrsquos ability to ldquopreserve capital val-
ues and generate sustainable rental income in the long term absorb shocks like natural disasterrdquo and
ldquomaintain their output of goods and services and continue to provide their inhabitants with a good quality
of life according to the standards of the timerdquo
Using this methodology Los Angeles was ranked 21 out of the 50 evaluated cities Although LA earned a
high score for adaptability other factors like rising sea levels earthquakes limited access to potable wa-
ter and socioeconomic stressors increase its vulnerability
Governments arenrsquot the only entity working on resiliency plans Insurance companies are evaluating their
exposure to risk and forward-thinking building owners are drafting climate adaptation plans to catalog
and prevent predictable system failures in addition to developing emergency preparedness and disaster
plans Such plans address the incremental changes in availability of water increasing temperature and
other environmental and social pressures arising from climate change
Roundtable attendees were most focused on how buildings can contribute to grid reliability through load
shifting on-site power generation demand response programs seismic retrofits and voluntary resilience
ratings to lead the market
Resilience increases when cities have more adaptive capacity and decreases when they are more vulnerable
- Resilient Cities Research Report
C L I M A T E C H A N G E
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 6
WATER ENERGY amp ENVIRONMENT MANAGING CLIMATE RISKS
WATER RESILIENCE
The current extreme drought conditions in California have exposed vulnerabilities in the statersquos
water storage and delivery systems Outdated infrastructure inability to increase water rates overpump-
ing and salination of groundwater sources conflicting municipal and community policies and limited ac-
cess to alternative water sources contribute to increasing water stress While Los Angeles has maintained
level water use per capita since the 70rsquos a result of successful metering programs population growth has
pushed water supplies to the limit
ENERGY RESILIENCE
Reducing overall energy usage especially in existing buildings three years or older is the first and
best line of defense in grid reliability Because peak usage times are those times when the grid experienc-
es the most demand up to 40 of a buildingrsquos energy costs comes from peak load energy charges De-
mand response energy storage and on-site generation can effectively reduce costs associated with the
purchase of grid-source peak energy
Demand response programs commonly referred to as Flex Alerts in California have increased in availa-
bility and participation across residential and commercial sectors throughout the state As one participant
put it ldquodemand response is becoming a part of LADWPrsquos DNArdquo Industry experts predict that demand
response programs will become mandatory within the next 10-15 years if not sooner and recommend
that building owners consider capturing the benefits of voluntary participation while it is available
On-site generation using fuel cells to reduce peak grid-source energy use was foremost on participantsrsquo
minds They cited lack of space as the primary reason more on-site generation has not been adopted
Consensus in the group was that renewable energy options generally do not provide an attractive return
on investment even with incentives to justify the allocation of space required to generate meaningful
quantities of energy
Energy storage using battery systems has been developing rapidly and at least one forum attendee ex-
pects to see uptake of market-ready solutions within the next year Incentives are available for up to 3
of the up-front costs of these systems Batteries allow building owners to store energy during off-peak
hours at lower energy rates for use during peak hours
C L I M A T E C H A N G E
BUILD AWARENESS
Educate building managers ten-
ants and employees at all levels
about the need to build the adap-
tive capacity to manage risks in
the long term
ASSESS VULNERABILITIES
Determine the threat climate dis-
ruption poses to core building
operations supplies building and
tenant work force customers and
key services
MANAGE RISKS AND
PURSUE OPPORTUNITIES
Fortify or relocate infrastructure
plan for changes in water and en-
ergy availability or review supply
chain vulnerabilities
REVIEW RISK ASSESSMENTS
AND MAKE PLANS
Continuously review risks and
opportunities regularly using
centralized assessment tools and
develop adaptive risk manage-
ment plans
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 7
C L I M A T E C H A N G E
ENVIRONMENTAL RESILIENCE
While frequency of earthquakes is not directly linked to climate change response to earth-
quakes is certainly a factor in building resilience and an area of vulnerability in Los Angeles The most im-
portant component of building resilience in Los Angeles is the choice of structural materials Steel frame
buildings are considerably more adaptable and thereby more resilient than their concrete-framed coun-
terparts
A seismic-readiness survey of the city of Los Angeles conducted by a team of UC Berkeley researchers
revealed that a number of buildings require retrofits to meet seismic standards These buildings are pri-
marily smaller concrete structures prompting attendees to note that the least resilient buildings are fre-
quently controlled by building owners with the fewest resources both capital and staff to manage re-
quired upgrades Add the fear of triggering potentially costly Title 24 energy upgrades and compliance
with seismic standards becomes nearly impossible
One attendee suggested that seismic upgrades be linked to energy efficiency upgrades creating an op-
portunity for a deep retrofit that raises the overall value and stature of the property The challenge is en-
couraging these owners of concrete building who are frequently hesitant to incorporate major capital
improvements to comply The perception of complexity is already a significant obstacle to adoption of a
number of incentive and financing opportunities
Infographics on page 14 and 16 source ldquoWeathering the Storm Building Business Resilience to Climate Changerdquo Center for Cli-
mate and Energy Solutions Munich Re National Oceanic and Atmospheric Aon Benfield Lloydrsquos of London
Policy and regulations will con-tinue to drive local governments and the building industry to address climate change risks infrastructure needs and increased resource needs for water energy and demographic shifts Proactive owners need to stay in front of these risks and get ready to recover from natural disasters with minimum damage and downtime
- Daniele Horton Founder amp Principal
Verdani Partners
WATER EFFICIENCY SECTION DIVIDER SIDEBAR HEADER GOES HERE WATER EFFICIENCY
19
00
19
40
20
10
20
15
20
50
Colorado River
Annual Average
River Flow
NO AND LOW COST MEASURES
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 9
Drought in California and water conservation is the new norm ndash Robert Estrada Los Angeles Department of Water and Power
Source US Drought Monitor (httpdroughtmonitorunledu)
The current extreme drought in California has exposed vulnerabilities in the statersquos water storage and
delivery systems Outdated infrastructure over pumping of ground water supplies pollution of ground
water supplies by fracking and other activities conflicting municipal and community policies climate
change increased demand and limited access to alternative water sources contribute to increasing water
stress While Los Angeles has maintained level water use per capita for the past forty years a result of
successful metering programs population growth has pushed water supplies to the limit Climate change
has also greatly affected the snow pack water supplies and the underground water reserves are been
tapped at an unprecedented rate The state is facing one of its worst droughts in history and a massive
effort will be needed to find solutions to meet its water demand needs
In response to current conditions Los Angeles Mayor Eric Garcetti signed an Executive Directive on
October 14 2014 to reduce potable water use 20 by 2017 This includes removing turf landscaping at
city buildings and replacing it with native and drought-resistant plants The directive also mandates the
CURRENT CONDITIONS
LOS ANGELES WATER SUPPLY
1 Recycled
Water
11 Groundwater
37 LA Aqueduct
51 Purchased from
Metropolitan
Water District
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 0
Los Angeles Department of Water and Power (LADWP) to reduce water imports 50 by 2024
It was also discussed that the cost of water is still quite low which makes the business case for making
water efficiency upgrades more challenging Some of the attendees mentioned that a price signal would
be critical to incentivize additional water efficiency upgrades and lower water usage The LADWP rep
explained that because they are a public entity that they cannot charge for the water They can only
charge to transport the water and any rate increases need to be approved by the voters which makes the
process for increasing the fees for water very challenging
A best practice for conservation and one that has helped Los Angeles maintain the lowest consumption
for any city with a population over 1 million is metering
LADWP launched their conservation program in the late 1970s Today the LADWP provides extensive
incentive programs for water use reduction efforts including prescriptive or menu-based programs and
more flexible technical assistance programs While more involved the technical assistance programs
cover a larger variety of costs associated with pre-approved water conservation measures including
consulting fees Recently utilization of technical assistance programs has surpassed the traditional menu-
based programs although many building
owners interviewed were still unaware of
the technical assistance program
While improving the efficiency of indoor
water fixtures has been a popular and well-publicized program historically utilities have identified cooling
towers and outdoor water use as 70+ of annual building water consumption making them the target of
renewed water conservation efforts including access to reclaimed water widespread adoption of rain
sensors reverse osmosis systems and microfiltration systems
70+ of annual building water consumption -
cooling towers and outdoor water use
WATER RETROFIT OPPORTUNITIES
Install metering devices and controls
Perform ongoing distribution system
audits leak detection and repair
Install native and drought resistant
landscape
Maximize indoor plumbing fixture and
fitting efficiency (toilets urinals faucets
aerators and showerheads)
Implement a cooling tower chemical
management and water efficiency
program
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 1
WATER USAGE PER CAPITA
133 GALLONSDAYPERSON
Daily water use (LADWP) all customers Second
lowest in the nation for cities over 1 million
people NY beats LA
Source California Department of Water Resources
LADWP provides extensive prescriptive and menu-based programs as well as more flexible technical
assistance programs to incentivize water use reductions The technical assistance programs require more
upfront involvement from property managers but also cover a larger variety of costs associated with pre-
approved water conservation measures including consulting fees In recent years technical assistance
programs have increased in popularity and have surpassed the traditional menu-based programs These
ratepayer-funded programs are offered at no additional cost to residential and commercial customers By
the end of 2014 LADWP will have invested$60 million dollars in water conservation incentive programs
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 2
As water efficiency regulations become more stringent and water rates continue to rise property owners
and operators can reap immediate benefits from low-cost measures such as the installation of aerators
and quickly recoup investments in upgrading indoor water fixtures
Building managers can reduce water use by installing low-flow or ultra low-flow fixtures fittings and
equipment such as toilets and urinals that exceed current code requirements per recommendations below
Water closets max 16 gallonsflush
Urinals max 0125 to 05 gallonflush
Shower heads max 18 gallonsminute
Faucets max 10 gallonsminute
Replacement aerators max 05 gallonsminute
Metering faucets max 025 gallonscycle
To help meet the Cityrsquos aggressive water conservation goals building owners will be encouraged to move
beyond upgrades to efficient indoor water fixtures for deeper savings Cooling towers and outdoor water
use account for an average of 70 of building water consumption making them the target of increased
water conservation efforts
Reclaimed water is currently restricted to limited areas There are plans to further develop water
reclamation projects for Los Angeles however its use is limited by state health requirements and the
high cost of pumping plants and distribution facilities to deliver water from the reclamation plants to the
customers Robert Estrada of LADWP reports that the cost is an estimated million dollars per mile of
purple pipe However if Assembly Bill 2282 passes all new residential and commercial construction with
access to reclaimed water will be required to incorporate it into approved uses such as landscaping and
reclaimed water infrastructure would necessarily expand
The statersquos water supplies are at all times low underground water supplies are rapidly diminishing and
demand for water continues to grow Solutions to solve our water supply needs will involve many
different solutions from efficiency programs to lower demand a price signal and a search for new water
sources and importing water and desalinization plants
LOS ANGELES DWP
Since 1990 LA Department of Water and Power has
spent about $280 million on conservation programs
METROPOLITAN WATER DISTRICT
Metropolitan provides rebates on water efficient
fixtures financial assistance for water reduction
projects and incentives programs
MAYORrsquoS DIRECTIVE TO CUT WATER USE
(LA Times article) LA Mayor Eric Garcetti signed an
executive directive to further cut potable water use
20X2020 WATER CONSERVATION PLAN
Statewide plan enacted in 2010 to reduce water
consumption by 20 by 2020
SENATE BILL SB X7-7 2009
This Senate bill requires all water suppliers to increase
water efficiency
WATERSENSE
A recognized seal of approval for water efficiency
similar to ENERGY STAR
DOE WATER EFFICIENCY BMPS
Water Efficiency Best Management Practices from the
US Department of Energy
CONCLUSION RESOURCES
W A T E R E F F I C I E N C Y
E N E R G Y E F F I C I E N C Y
RENEWABLE
HYDRO GEOTHERMAL
WIND SOLAR
BIO-DIESEL BIO-MASS
EFFICIENCY
CO-GENERATION
EFFICIENT APPLIANCES EFFICIENT LIGHTING
EFFICIENT VEHICLES EFFICIENT BUILDINGS
INTELLIGENT POWER NETWORKS DECENTRALIZED GRIDS
CONSERVATION
GREY WATER RECYCLING ALTERNATIVE TRANSPORTATION
ENERGY EFFICIENCY RETROFIT STRATEGY
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 4
Many retrofits occur on a piecemeal basis as incentives become available or contractors provide upgrade
recommendations However many buildings especially those that are considering aesthetic or structural
improvements may benefit from a more comprehensive deep energy retrofit
The key components of a deep retrofit process are ongoing energy management assembling an
interdisciplinary team robust analysis and measurement and verification This process is not linear
phases may overlap or go on concurrently and will vary based on factors such as ownership structure
scale of building project delivery method and building complexity
While net zero was once considered a faraway goal for only the most technologically advanced buildings
the National Renewable Energy Laboratory found that there is now the technical potential for over 47
percent of existing US commercial building floor space to achieve net zero energy using existing
technologies and design processes
Net zero may seem unachievable but it can be done using the same principles as effective deep retrofits The
process starts with a solid understanding of baseline operations and expenditures and benefits from
extensive modeling and cost-benefit analysis to optimize systems choice for highest return on investment
There is considerable guidance within the market on how to retrofit buildings with sustainable
technologies to improve their environmental performance A significant barrier however to carrying out
sustainable retrofits is financing A number of financing mechanisms exist and each scenario is unique
Most building owners will choose to use
their own capital when available to avoid
time-intensive administration activities
Other traditional financing options
include loans and bond programs as well
as increases to operating fees or capital leases Building owners and managers can also take advantage of
funding improvements through bill savings (as with performance contracting with Energy Service
Contractors or ESCOrsquos) PACE bonds energy service agreements on-bill financing incentives and rebates
As utility rates continue to rise the incentive to implement energy efficiency projects has gone from cost
savings to cost avoidance This challenge is coupled with how to finance retrofit projects and what to do
once incentivized equipment has been installed
RETROFIT STRATEGY
E N E R G Y E F F I C I E N C Y
21+ Utilities represent an average of 21 of
total building expenses
ndash2012 BOMA Exchange Report
ENERGY RETROFIT OPPORTUNITIES
Monitor meter and commission main
building systems
Maximize heating and cooling efficiencies
and install variable frequency drives on
equipment
Lighting upgrades and controls (efficient
lights daylight harvesting motion sensors
etc)
Install a building automation system
invest in DDC wireless controls energy
optimization software and demand
response infrastructure
Retrofit main building systems chillers
cooling towers boilers fan motors
Building envelope Seal windows install
window films retrofit windows with
higher R-Value
Invest in on-site generation and
renewable Energy systems (fuel cell wind
geothermal and solar energy)
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 4
The Think Tank Roundtable event and report were made possible as part of a larger initiative in
collaboration with the USGBC-LA Existing Buildings Committee the California Sustainability Alliance
(CSA) a Southern California Gas (SoCalGas) program and Verdani Partners who was responsible for
putting the event and report together
About the California Sustainability Alliance
The USGBC-LA EB Committee was founded in 2009 by Daniele Horton and Kevin Devine This USGBC-
LA committee targets building owners and managers of high-rise commercial office buildings who are
implementing green operations and maintenance programs Members attend biannual forums to discuss
innovations in green operations and to share experiences and lessons learned from their internal efforts
and best practices The vision of the committee is to transform the way buildings are operated in order to
reduce energy and water consumption waste generation carbon emissions and operating expenses
while also increasing the buildings value and creating healthier more productive spaces for the buildingrsquos
occupants
About USGBC-LA Existing Buildings Committee
The California Sustainability Alliance (the Alliance) is designed to help meet the Statersquos aggressive energy
climate and other resource and environmental goals by increasing and accelerating energy efficiency in
combination with complementary green measures and strategies
About Verdani Partners
Verdani Partners is a full-service sustainability consulting firm Our mission is to empower organizations
with cost-effective strategies to create sustainable buildings and communities We maintains a high level
of knowledge in real estate building operations energy analysis financing and green building
certifications We are experts in greening large portfolios of existing buildings from managing
certifications to corporate sustainability programs
PARTNERS FOR A RESILIENT FUTURE
P A R T N E R S H I P S
Prepared for the California Sustainability Alliance and
the United States Green Building Council Los
Angeles Chapter (USGBC-LA) Existing Buildings (EB)
Committee by
Tanya Goyette Lead Author
Daniele Horton Contributor
Hanna Grene Contributor
Megan Moscol Contributor
Paulynn Cue Graphic Designer
Our mission is to increase implementation of sustainable building operations by advancing industry awareness and providing resources to facilitate community understanding of the significant life-cycle cost benefits of green building operation and maintenance best practices -USGBC-LA EB Committee
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 5
Green and energy-efficient buildings demand higher rent increase tenant productivity reduce operating
costs and have higher occupancy rates The upfront cost of green building improvements is a deterrent
commonly cited by building owners However data shows that green retrofits and increased energy and
water efficiency increase property values and many upgrades can deliver attractive short-term returns
Improving the performance of an existing building can range from a major renovation in pursuit on a
green certification such as LEEDreg or no and low-cost improvements such as schedule optimization
tenant engagement and lighting upgrades These no and low-cost measures can translate into significant
savings for owners of Class A buildings
INDUSTRY UPDATES
Los Angeles is poised to lead the state in resource efficiency and climate resilience To reach these
ambitious goals the public and private sectors must work together to facilitate improved energy
management and water conservation Industry leaders shared information about key trends no-cost
resources and programs to help Class A building owners improve building performance
CLIMATE CHANGE
After two decades of progressively intense extreme weather events severe droughts fires and higher
mean temperatures the climate conversation has shifted from mitigation to adaptation Class A buildings
will play an important leadership role in helping the City achieve its carbon reduction and resilience goals
WATER EFFICIENCY
With water supplies at an all time low water conservation is extremely important for all sectors despite
relatively steady water rates Los Angeles water utilities are investing in water reduction programs and
providing incentives for efficient equipment
INTRODUCTION
I N T R O D U C T I O N
High-performance buildings reduce operating costs command higher rents marketability and increase shareholder value Efficient building operations are key to staying competitive in todayrsquos market -Daniele Horton Founder amp Co-Chair USGBC-LA Existing Buildings Committee
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 6
ENERGY EFFICIENCY
In top real estate markets a Class A building must be an energy-efficient building In order to stay in the
lead building owners should consider deeper energy retrofits and equipment upgrades at the time of
aesthetic or tenant improvements
TECHNOLOGY
Smarter technology provides building owners and managers insight into how buildings perform in real time
throughout the lifecycle of the building Cloud-based software applications tied to building automation
systems (BAS) can prevent downtime events and help owners and managers reduce peak-load charges
SUSTAINABILITY TRENDS
Class A building owners can go beyond equipment upgrades to improve performance with tenant-level
metering data-specific engagement and energy and water use disclosure A greater push for transparency
is also influencing more owners to disclose their efficiency data
I N T R O D U C T I O N
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 7
GREEN BUILDING STATISTICS
Structures that are already built or near completion represent
99 of US building stock Most of the US building stock is over 20years old and
75 is ripe for a retrofit By 2050 CA aims to reduce carbon emissions
80 below 1990 levels Buildings are responsible for
39 CO2 emissions The average commercial building wastes an average of
30 energy it consumes Energy use reductions of 10 are possible with
Little or no cost Commercial and institutional building electricity use accounts for
60 building energy use
INDUSTRY UPDATES Industry experts from the Greater Los Angeles area kicked off
the 2014 Think Tank Roundtable with sector updates and information
about emerging trends in sustainability and real estate
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 9
Dominique Smith the Interim Executive Director of the USGBC-LA Chapter discussed two programs
the USGBC-LA chapter is currently spearheading and supporting including the Energy and Water
Ambassadors Program and the Green Janitor Education Program
The USGBC-LArsquos Energy and Water Ambassador Program connects Class B and C building owners and
managers with an ambassador to help them identify energy and water savings opportunities in their
buildings and the financing rebates and incentives required to move from analysis to investment
Through the program a USGBC-LA staff member meets onsite with the owner or management team to
identify building-specific energy and water conservation measures The ambassador identifies which
rebates and tax credits are available for the building advises on potential utility bill savings and assesses
LEED certification opportunities
The Green Janitor Education Program started as an idea to offer training in green cleaning safety
increasing energy efficiency and water conservation to janitors nationwide This program is currently
being piloted at seven buildings in Los Angeles and has already graduated 20 green janitors as of May
with the goal of 150 graduates by the end of summer
More information and resources available at
USGBC-LA
View Event Interview
TECHNICAL SUPPORT FROM USGBC-LA
As ambassadors we meet with building owners of all types siz-es and markets to identify ways they can run their operations in a more cost-effective way be sus-tainable and also save money
- Dominique Smith
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 0
Hilary Firestone Senior Energy Efficiency Project Manager for the City of Los Angeles provided an update
from the Mayorrsquos Office of Sustainability a new office which was created in 2013 to facilitate cross-agency
collaboration on sustainability issues
The Cityrsquos first Sustainability Plan looks at the work thatrsquos already been done to reduce emissions and also
examines strategies for further mitigation and adaptation The Plan described as ldquothe 20 of sustainability
plansrdquo looks at the traditional areas of transportation air water greenhouse gases as well as provides new
and innovative strategies A key theme in the report is collaboration with an emphasis on the importance of all
sectors working together to cut emissions
Buildings and transportation are the primary sources of carbon emissions in Los Angeles with 51 coming
from buildings alone In 2013 Los Angeles had the most ENERGY STARreg certified buildings in the country but
the majority of the Cityrsquos building stock has a significant opportunity to improve energy and water efficiency
ldquoIt is going to bethe building ownerrsquos responsibility to install EV chargers on their properties and the
responsibility of the City to facilitate improvements to public transportationrdquo said Firestone providing an
example of how the public and private sectors will need to work together to achieve the cityrsquos aggressive
emissions reductions targetrdquo
Another example of public and private partnership comes in the form of incentive programs The Los Angeles
Department of Water and Energy allocated $50 million to energy efficiency for the 2012-2013 fiscal year and
$101 million for 2013-2014 In addition to utility and nonprofit programs the city is working to help building
owners and managers overcome the challenges and barriers that have prevented them from investing in
energy and water retrofits in the past
One of the main barriers to catalyzing investment in energy efficiency is a lack of information about energy use
in buildings ldquoOne of the efforts wersquore working on at the state level is making it easy for building owners to get
access to their own energy datardquo said Firestone ldquoWe are trying to make that information easier for building
owners to access and understand so everyone is held accountable and responsible for their energy
consumption ndash not just the owners but the tenants that are occupying the building Everyone has a stake in
terms of trying to reduce our energy userdquo
More information and resources available at
httpenvironmentlaorg
wwwcityenergyprojectorg
CLIMATE LEADERSHIP THROUGH COLLABORATION
The City will lead by example with our own buildings We are going to start with benchmarking our energy and water use and making that information transparent
ndash Hilary Firestone
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 1
William Lowery President of Tālō Management Group and BOMA Sustainability Chair shared
information on BOMArsquos sustainability initiatives and resources for members
The Building Owners and Managers Association (BOMA) Sustainability Committee of Greater Los
Angeles holds monthly discussions on issues that affect existing buildings high rises and Class A B and C
buildings Recent topics include water conservation Title 24 cosmpliance water and energy to retrofits
and emerging technology The Sustainability Committee also seeks to address challenges faced by BOMA
members in the Greater Los Angeles area
With the passing of Assembly Bill 1103 which went into effect in January BOMA LA hosted webinars and
hands-on trainings in West and downtown Los Angeles to help building owners and manager comply with
the new regulation
In August the organization held their fourth annual Great Los Angeles Sustainability Seminar which
covered the value of green building improvements and operations and third-party certifications such as
LEED ENERGY STAR and BOMA 360
More information and resources available at
wwwbomaglaorg
View Event Interview
RESOURCES FOR BUILDING OWNERS amp MANAGERS
We partner with organizations like the USGBC and the LA BBC make sure we are spreading the information collected and needed and provide that information to building owners and managers to effectively assist in making change
ndash William Lowery
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 2
Ben Stapleton Director of Commercial Property at LA Better Buildings Challenge (LABBC) told
attendees how Los Angeles is working to reduce energy and water use 20 by 2020 as part of the
National Better Buildings Competition
LABBC is a utility-funded local initiative that is part of the US Department of Energyrsquos Better Buildings
Challenge LABBC surpassed its goal of enrolling 30 million square feet of building space and now has 36
million square feet of building space where owners and managers have committed to reduce energy use
20 by 2020 LA BBC offers no-cost services and subsidies such as energy tracking and analysis audits
project development support and recognition
This year LABBC began offering two new services to help building owners and managers achieve deeper
energy savings LA BBC partnered with contractors to offer challenge participants reduced pricing on
standard efficiency upgrades
ldquoContractors enrolling in this program agree to adhere to a certain set of principles provide their
qualifications and agree to provide standard deliverablesrdquo explained Stapleton ldquoIt is really accelerating
the process for buildings in our program in terms of retrofitting their assetsrdquo
The Tenant Engagement Program (TEP) helps landlords property managers and tenants overcome split-
incentives to help owners recover capital costs and tenants benefit from energy savings The LABBC also
helps participants identify financing such as PACE bonds to fund building performance upgrades
More information and resources available at
wwwla-bbccom
FREE ENERGY AUDITS amp REBATE INFORMATION
We need to focus on how to create value for building owners For LA BBC our goal is to make energy efficiency cheaper easier and faster
ndash Ben Stapleton
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 3
Robert Estrada a water conservation specialist with the Los Angeles Department of Water and Power
(LADWP) encouraged attendees to take advantage of water and energy-savings incentive programs
Estrada began his presentation with a reminder of the dire drought conditions that LA is facing ldquoHere in
Southern California we built water storage for these times Metropolitan Water serves 26 retail water
agencies and the city of LA is their largest customer With approximately 24 million acre feet of water in
emergency storage they are going to draw down 1 million acre feet this year We are really crossing our
fingers for El Nino because we need itrdquo
Per capita water use is at 133 gallons per person per day in Los Angeles LADWP offers incentive
programs to reduce water usage such as turf removal for commercial properties starting at two dollars a
square foot for up to 5000 square feet They also have a Technical Assistance Program with incentives
for water-efficient building upgrades and operations
LADWP also offers a Savings By Design program in partnership with SoCalGas through the Energy
Efficiency Technical Assistance Program (EETAP) ldquoThis program allows customers to get a comprehensive
assessment of their building to identify energy water and gas savings We pay for incentives as they
implement efficiency measuresrdquo In addition to their standard lighting retrofit program LADWP offers a
Custom Performance Program that offers incentives for upgrades following an energy audit Incentives can
now also be used for permitting project management or design fees in addition to efficient technologies
Through the EETAP program auditing services can also be covered through incentives
More information and resources available at
wwwladwpcom
View Event Interview
INCENTIVES FOR EFFICIENCY
For commercial buildings if you have a cooling tower it can use up to half of the buildingrsquos water By going from 25 to 55 [cycles] thatrsquos an overall 30 water savings
ndash Robert Estrada
I N D U S T R Y U P D A T E S
CLIMATE CHANGE RESILIENCE AND ADAPTATION
38 Experiencing
Impacts Now
17 Within
5 Years
7 Beyond
10 Years
31 Donrsquot Know
No Information
7 Within
10 Years
Most Companies
Experience
or Expect
Climate Impacts
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 5
RESILIENCE amp ADAPTATION
In 2013 and 2014 the conversation in the market transitioned from one of potential impacts of climate
change to the realities of adaptation and resilience The EPA released a Climate Adaptation Plan in Febru-
ary 2013 Grosvenor released a Resilient Cities Research Report and the Urban Land Institute launched
an Urban Resilience program and hosted their first annual Building the Resilient City conference
This shift in focus to resilience in the face of adversity comes after two decades of progressively intense
extreme weather events and higher mean temperatures In order to effectively support business opera-
tions our buildings need to be ready to bounce back from disaster with minimum damage and downtime
in addition to absorbing overall increases in temperature
This April the Grosvenor real estate company released a report detailing the findings of their analysis of
the resilience of 50 international cities They defined resilience as a cityrsquos ability to ldquopreserve capital val-
ues and generate sustainable rental income in the long term absorb shocks like natural disasterrdquo and
ldquomaintain their output of goods and services and continue to provide their inhabitants with a good quality
of life according to the standards of the timerdquo
Using this methodology Los Angeles was ranked 21 out of the 50 evaluated cities Although LA earned a
high score for adaptability other factors like rising sea levels earthquakes limited access to potable wa-
ter and socioeconomic stressors increase its vulnerability
Governments arenrsquot the only entity working on resiliency plans Insurance companies are evaluating their
exposure to risk and forward-thinking building owners are drafting climate adaptation plans to catalog
and prevent predictable system failures in addition to developing emergency preparedness and disaster
plans Such plans address the incremental changes in availability of water increasing temperature and
other environmental and social pressures arising from climate change
Roundtable attendees were most focused on how buildings can contribute to grid reliability through load
shifting on-site power generation demand response programs seismic retrofits and voluntary resilience
ratings to lead the market
Resilience increases when cities have more adaptive capacity and decreases when they are more vulnerable
- Resilient Cities Research Report
C L I M A T E C H A N G E
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 6
WATER ENERGY amp ENVIRONMENT MANAGING CLIMATE RISKS
WATER RESILIENCE
The current extreme drought conditions in California have exposed vulnerabilities in the statersquos
water storage and delivery systems Outdated infrastructure inability to increase water rates overpump-
ing and salination of groundwater sources conflicting municipal and community policies and limited ac-
cess to alternative water sources contribute to increasing water stress While Los Angeles has maintained
level water use per capita since the 70rsquos a result of successful metering programs population growth has
pushed water supplies to the limit
ENERGY RESILIENCE
Reducing overall energy usage especially in existing buildings three years or older is the first and
best line of defense in grid reliability Because peak usage times are those times when the grid experienc-
es the most demand up to 40 of a buildingrsquos energy costs comes from peak load energy charges De-
mand response energy storage and on-site generation can effectively reduce costs associated with the
purchase of grid-source peak energy
Demand response programs commonly referred to as Flex Alerts in California have increased in availa-
bility and participation across residential and commercial sectors throughout the state As one participant
put it ldquodemand response is becoming a part of LADWPrsquos DNArdquo Industry experts predict that demand
response programs will become mandatory within the next 10-15 years if not sooner and recommend
that building owners consider capturing the benefits of voluntary participation while it is available
On-site generation using fuel cells to reduce peak grid-source energy use was foremost on participantsrsquo
minds They cited lack of space as the primary reason more on-site generation has not been adopted
Consensus in the group was that renewable energy options generally do not provide an attractive return
on investment even with incentives to justify the allocation of space required to generate meaningful
quantities of energy
Energy storage using battery systems has been developing rapidly and at least one forum attendee ex-
pects to see uptake of market-ready solutions within the next year Incentives are available for up to 3
of the up-front costs of these systems Batteries allow building owners to store energy during off-peak
hours at lower energy rates for use during peak hours
C L I M A T E C H A N G E
BUILD AWARENESS
Educate building managers ten-
ants and employees at all levels
about the need to build the adap-
tive capacity to manage risks in
the long term
ASSESS VULNERABILITIES
Determine the threat climate dis-
ruption poses to core building
operations supplies building and
tenant work force customers and
key services
MANAGE RISKS AND
PURSUE OPPORTUNITIES
Fortify or relocate infrastructure
plan for changes in water and en-
ergy availability or review supply
chain vulnerabilities
REVIEW RISK ASSESSMENTS
AND MAKE PLANS
Continuously review risks and
opportunities regularly using
centralized assessment tools and
develop adaptive risk manage-
ment plans
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 7
C L I M A T E C H A N G E
ENVIRONMENTAL RESILIENCE
While frequency of earthquakes is not directly linked to climate change response to earth-
quakes is certainly a factor in building resilience and an area of vulnerability in Los Angeles The most im-
portant component of building resilience in Los Angeles is the choice of structural materials Steel frame
buildings are considerably more adaptable and thereby more resilient than their concrete-framed coun-
terparts
A seismic-readiness survey of the city of Los Angeles conducted by a team of UC Berkeley researchers
revealed that a number of buildings require retrofits to meet seismic standards These buildings are pri-
marily smaller concrete structures prompting attendees to note that the least resilient buildings are fre-
quently controlled by building owners with the fewest resources both capital and staff to manage re-
quired upgrades Add the fear of triggering potentially costly Title 24 energy upgrades and compliance
with seismic standards becomes nearly impossible
One attendee suggested that seismic upgrades be linked to energy efficiency upgrades creating an op-
portunity for a deep retrofit that raises the overall value and stature of the property The challenge is en-
couraging these owners of concrete building who are frequently hesitant to incorporate major capital
improvements to comply The perception of complexity is already a significant obstacle to adoption of a
number of incentive and financing opportunities
Infographics on page 14 and 16 source ldquoWeathering the Storm Building Business Resilience to Climate Changerdquo Center for Cli-
mate and Energy Solutions Munich Re National Oceanic and Atmospheric Aon Benfield Lloydrsquos of London
Policy and regulations will con-tinue to drive local governments and the building industry to address climate change risks infrastructure needs and increased resource needs for water energy and demographic shifts Proactive owners need to stay in front of these risks and get ready to recover from natural disasters with minimum damage and downtime
- Daniele Horton Founder amp Principal
Verdani Partners
WATER EFFICIENCY SECTION DIVIDER SIDEBAR HEADER GOES HERE WATER EFFICIENCY
19
00
19
40
20
10
20
15
20
50
Colorado River
Annual Average
River Flow
NO AND LOW COST MEASURES
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 9
Drought in California and water conservation is the new norm ndash Robert Estrada Los Angeles Department of Water and Power
Source US Drought Monitor (httpdroughtmonitorunledu)
The current extreme drought in California has exposed vulnerabilities in the statersquos water storage and
delivery systems Outdated infrastructure over pumping of ground water supplies pollution of ground
water supplies by fracking and other activities conflicting municipal and community policies climate
change increased demand and limited access to alternative water sources contribute to increasing water
stress While Los Angeles has maintained level water use per capita for the past forty years a result of
successful metering programs population growth has pushed water supplies to the limit Climate change
has also greatly affected the snow pack water supplies and the underground water reserves are been
tapped at an unprecedented rate The state is facing one of its worst droughts in history and a massive
effort will be needed to find solutions to meet its water demand needs
In response to current conditions Los Angeles Mayor Eric Garcetti signed an Executive Directive on
October 14 2014 to reduce potable water use 20 by 2017 This includes removing turf landscaping at
city buildings and replacing it with native and drought-resistant plants The directive also mandates the
CURRENT CONDITIONS
LOS ANGELES WATER SUPPLY
1 Recycled
Water
11 Groundwater
37 LA Aqueduct
51 Purchased from
Metropolitan
Water District
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 0
Los Angeles Department of Water and Power (LADWP) to reduce water imports 50 by 2024
It was also discussed that the cost of water is still quite low which makes the business case for making
water efficiency upgrades more challenging Some of the attendees mentioned that a price signal would
be critical to incentivize additional water efficiency upgrades and lower water usage The LADWP rep
explained that because they are a public entity that they cannot charge for the water They can only
charge to transport the water and any rate increases need to be approved by the voters which makes the
process for increasing the fees for water very challenging
A best practice for conservation and one that has helped Los Angeles maintain the lowest consumption
for any city with a population over 1 million is metering
LADWP launched their conservation program in the late 1970s Today the LADWP provides extensive
incentive programs for water use reduction efforts including prescriptive or menu-based programs and
more flexible technical assistance programs While more involved the technical assistance programs
cover a larger variety of costs associated with pre-approved water conservation measures including
consulting fees Recently utilization of technical assistance programs has surpassed the traditional menu-
based programs although many building
owners interviewed were still unaware of
the technical assistance program
While improving the efficiency of indoor
water fixtures has been a popular and well-publicized program historically utilities have identified cooling
towers and outdoor water use as 70+ of annual building water consumption making them the target of
renewed water conservation efforts including access to reclaimed water widespread adoption of rain
sensors reverse osmosis systems and microfiltration systems
70+ of annual building water consumption -
cooling towers and outdoor water use
WATER RETROFIT OPPORTUNITIES
Install metering devices and controls
Perform ongoing distribution system
audits leak detection and repair
Install native and drought resistant
landscape
Maximize indoor plumbing fixture and
fitting efficiency (toilets urinals faucets
aerators and showerheads)
Implement a cooling tower chemical
management and water efficiency
program
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 1
WATER USAGE PER CAPITA
133 GALLONSDAYPERSON
Daily water use (LADWP) all customers Second
lowest in the nation for cities over 1 million
people NY beats LA
Source California Department of Water Resources
LADWP provides extensive prescriptive and menu-based programs as well as more flexible technical
assistance programs to incentivize water use reductions The technical assistance programs require more
upfront involvement from property managers but also cover a larger variety of costs associated with pre-
approved water conservation measures including consulting fees In recent years technical assistance
programs have increased in popularity and have surpassed the traditional menu-based programs These
ratepayer-funded programs are offered at no additional cost to residential and commercial customers By
the end of 2014 LADWP will have invested$60 million dollars in water conservation incentive programs
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 2
As water efficiency regulations become more stringent and water rates continue to rise property owners
and operators can reap immediate benefits from low-cost measures such as the installation of aerators
and quickly recoup investments in upgrading indoor water fixtures
Building managers can reduce water use by installing low-flow or ultra low-flow fixtures fittings and
equipment such as toilets and urinals that exceed current code requirements per recommendations below
Water closets max 16 gallonsflush
Urinals max 0125 to 05 gallonflush
Shower heads max 18 gallonsminute
Faucets max 10 gallonsminute
Replacement aerators max 05 gallonsminute
Metering faucets max 025 gallonscycle
To help meet the Cityrsquos aggressive water conservation goals building owners will be encouraged to move
beyond upgrades to efficient indoor water fixtures for deeper savings Cooling towers and outdoor water
use account for an average of 70 of building water consumption making them the target of increased
water conservation efforts
Reclaimed water is currently restricted to limited areas There are plans to further develop water
reclamation projects for Los Angeles however its use is limited by state health requirements and the
high cost of pumping plants and distribution facilities to deliver water from the reclamation plants to the
customers Robert Estrada of LADWP reports that the cost is an estimated million dollars per mile of
purple pipe However if Assembly Bill 2282 passes all new residential and commercial construction with
access to reclaimed water will be required to incorporate it into approved uses such as landscaping and
reclaimed water infrastructure would necessarily expand
The statersquos water supplies are at all times low underground water supplies are rapidly diminishing and
demand for water continues to grow Solutions to solve our water supply needs will involve many
different solutions from efficiency programs to lower demand a price signal and a search for new water
sources and importing water and desalinization plants
LOS ANGELES DWP
Since 1990 LA Department of Water and Power has
spent about $280 million on conservation programs
METROPOLITAN WATER DISTRICT
Metropolitan provides rebates on water efficient
fixtures financial assistance for water reduction
projects and incentives programs
MAYORrsquoS DIRECTIVE TO CUT WATER USE
(LA Times article) LA Mayor Eric Garcetti signed an
executive directive to further cut potable water use
20X2020 WATER CONSERVATION PLAN
Statewide plan enacted in 2010 to reduce water
consumption by 20 by 2020
SENATE BILL SB X7-7 2009
This Senate bill requires all water suppliers to increase
water efficiency
WATERSENSE
A recognized seal of approval for water efficiency
similar to ENERGY STAR
DOE WATER EFFICIENCY BMPS
Water Efficiency Best Management Practices from the
US Department of Energy
CONCLUSION RESOURCES
W A T E R E F F I C I E N C Y
E N E R G Y E F F I C I E N C Y
RENEWABLE
HYDRO GEOTHERMAL
WIND SOLAR
BIO-DIESEL BIO-MASS
EFFICIENCY
CO-GENERATION
EFFICIENT APPLIANCES EFFICIENT LIGHTING
EFFICIENT VEHICLES EFFICIENT BUILDINGS
INTELLIGENT POWER NETWORKS DECENTRALIZED GRIDS
CONSERVATION
GREY WATER RECYCLING ALTERNATIVE TRANSPORTATION
ENERGY EFFICIENCY RETROFIT STRATEGY
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 4
Many retrofits occur on a piecemeal basis as incentives become available or contractors provide upgrade
recommendations However many buildings especially those that are considering aesthetic or structural
improvements may benefit from a more comprehensive deep energy retrofit
The key components of a deep retrofit process are ongoing energy management assembling an
interdisciplinary team robust analysis and measurement and verification This process is not linear
phases may overlap or go on concurrently and will vary based on factors such as ownership structure
scale of building project delivery method and building complexity
While net zero was once considered a faraway goal for only the most technologically advanced buildings
the National Renewable Energy Laboratory found that there is now the technical potential for over 47
percent of existing US commercial building floor space to achieve net zero energy using existing
technologies and design processes
Net zero may seem unachievable but it can be done using the same principles as effective deep retrofits The
process starts with a solid understanding of baseline operations and expenditures and benefits from
extensive modeling and cost-benefit analysis to optimize systems choice for highest return on investment
There is considerable guidance within the market on how to retrofit buildings with sustainable
technologies to improve their environmental performance A significant barrier however to carrying out
sustainable retrofits is financing A number of financing mechanisms exist and each scenario is unique
Most building owners will choose to use
their own capital when available to avoid
time-intensive administration activities
Other traditional financing options
include loans and bond programs as well
as increases to operating fees or capital leases Building owners and managers can also take advantage of
funding improvements through bill savings (as with performance contracting with Energy Service
Contractors or ESCOrsquos) PACE bonds energy service agreements on-bill financing incentives and rebates
As utility rates continue to rise the incentive to implement energy efficiency projects has gone from cost
savings to cost avoidance This challenge is coupled with how to finance retrofit projects and what to do
once incentivized equipment has been installed
RETROFIT STRATEGY
E N E R G Y E F F I C I E N C Y
21+ Utilities represent an average of 21 of
total building expenses
ndash2012 BOMA Exchange Report
ENERGY RETROFIT OPPORTUNITIES
Monitor meter and commission main
building systems
Maximize heating and cooling efficiencies
and install variable frequency drives on
equipment
Lighting upgrades and controls (efficient
lights daylight harvesting motion sensors
etc)
Install a building automation system
invest in DDC wireless controls energy
optimization software and demand
response infrastructure
Retrofit main building systems chillers
cooling towers boilers fan motors
Building envelope Seal windows install
window films retrofit windows with
higher R-Value
Invest in on-site generation and
renewable Energy systems (fuel cell wind
geothermal and solar energy)
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 5
Green and energy-efficient buildings demand higher rent increase tenant productivity reduce operating
costs and have higher occupancy rates The upfront cost of green building improvements is a deterrent
commonly cited by building owners However data shows that green retrofits and increased energy and
water efficiency increase property values and many upgrades can deliver attractive short-term returns
Improving the performance of an existing building can range from a major renovation in pursuit on a
green certification such as LEEDreg or no and low-cost improvements such as schedule optimization
tenant engagement and lighting upgrades These no and low-cost measures can translate into significant
savings for owners of Class A buildings
INDUSTRY UPDATES
Los Angeles is poised to lead the state in resource efficiency and climate resilience To reach these
ambitious goals the public and private sectors must work together to facilitate improved energy
management and water conservation Industry leaders shared information about key trends no-cost
resources and programs to help Class A building owners improve building performance
CLIMATE CHANGE
After two decades of progressively intense extreme weather events severe droughts fires and higher
mean temperatures the climate conversation has shifted from mitigation to adaptation Class A buildings
will play an important leadership role in helping the City achieve its carbon reduction and resilience goals
WATER EFFICIENCY
With water supplies at an all time low water conservation is extremely important for all sectors despite
relatively steady water rates Los Angeles water utilities are investing in water reduction programs and
providing incentives for efficient equipment
INTRODUCTION
I N T R O D U C T I O N
High-performance buildings reduce operating costs command higher rents marketability and increase shareholder value Efficient building operations are key to staying competitive in todayrsquos market -Daniele Horton Founder amp Co-Chair USGBC-LA Existing Buildings Committee
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 6
ENERGY EFFICIENCY
In top real estate markets a Class A building must be an energy-efficient building In order to stay in the
lead building owners should consider deeper energy retrofits and equipment upgrades at the time of
aesthetic or tenant improvements
TECHNOLOGY
Smarter technology provides building owners and managers insight into how buildings perform in real time
throughout the lifecycle of the building Cloud-based software applications tied to building automation
systems (BAS) can prevent downtime events and help owners and managers reduce peak-load charges
SUSTAINABILITY TRENDS
Class A building owners can go beyond equipment upgrades to improve performance with tenant-level
metering data-specific engagement and energy and water use disclosure A greater push for transparency
is also influencing more owners to disclose their efficiency data
I N T R O D U C T I O N
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 7
GREEN BUILDING STATISTICS
Structures that are already built or near completion represent
99 of US building stock Most of the US building stock is over 20years old and
75 is ripe for a retrofit By 2050 CA aims to reduce carbon emissions
80 below 1990 levels Buildings are responsible for
39 CO2 emissions The average commercial building wastes an average of
30 energy it consumes Energy use reductions of 10 are possible with
Little or no cost Commercial and institutional building electricity use accounts for
60 building energy use
INDUSTRY UPDATES Industry experts from the Greater Los Angeles area kicked off
the 2014 Think Tank Roundtable with sector updates and information
about emerging trends in sustainability and real estate
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 9
Dominique Smith the Interim Executive Director of the USGBC-LA Chapter discussed two programs
the USGBC-LA chapter is currently spearheading and supporting including the Energy and Water
Ambassadors Program and the Green Janitor Education Program
The USGBC-LArsquos Energy and Water Ambassador Program connects Class B and C building owners and
managers with an ambassador to help them identify energy and water savings opportunities in their
buildings and the financing rebates and incentives required to move from analysis to investment
Through the program a USGBC-LA staff member meets onsite with the owner or management team to
identify building-specific energy and water conservation measures The ambassador identifies which
rebates and tax credits are available for the building advises on potential utility bill savings and assesses
LEED certification opportunities
The Green Janitor Education Program started as an idea to offer training in green cleaning safety
increasing energy efficiency and water conservation to janitors nationwide This program is currently
being piloted at seven buildings in Los Angeles and has already graduated 20 green janitors as of May
with the goal of 150 graduates by the end of summer
More information and resources available at
USGBC-LA
View Event Interview
TECHNICAL SUPPORT FROM USGBC-LA
As ambassadors we meet with building owners of all types siz-es and markets to identify ways they can run their operations in a more cost-effective way be sus-tainable and also save money
- Dominique Smith
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 0
Hilary Firestone Senior Energy Efficiency Project Manager for the City of Los Angeles provided an update
from the Mayorrsquos Office of Sustainability a new office which was created in 2013 to facilitate cross-agency
collaboration on sustainability issues
The Cityrsquos first Sustainability Plan looks at the work thatrsquos already been done to reduce emissions and also
examines strategies for further mitigation and adaptation The Plan described as ldquothe 20 of sustainability
plansrdquo looks at the traditional areas of transportation air water greenhouse gases as well as provides new
and innovative strategies A key theme in the report is collaboration with an emphasis on the importance of all
sectors working together to cut emissions
Buildings and transportation are the primary sources of carbon emissions in Los Angeles with 51 coming
from buildings alone In 2013 Los Angeles had the most ENERGY STARreg certified buildings in the country but
the majority of the Cityrsquos building stock has a significant opportunity to improve energy and water efficiency
ldquoIt is going to bethe building ownerrsquos responsibility to install EV chargers on their properties and the
responsibility of the City to facilitate improvements to public transportationrdquo said Firestone providing an
example of how the public and private sectors will need to work together to achieve the cityrsquos aggressive
emissions reductions targetrdquo
Another example of public and private partnership comes in the form of incentive programs The Los Angeles
Department of Water and Energy allocated $50 million to energy efficiency for the 2012-2013 fiscal year and
$101 million for 2013-2014 In addition to utility and nonprofit programs the city is working to help building
owners and managers overcome the challenges and barriers that have prevented them from investing in
energy and water retrofits in the past
One of the main barriers to catalyzing investment in energy efficiency is a lack of information about energy use
in buildings ldquoOne of the efforts wersquore working on at the state level is making it easy for building owners to get
access to their own energy datardquo said Firestone ldquoWe are trying to make that information easier for building
owners to access and understand so everyone is held accountable and responsible for their energy
consumption ndash not just the owners but the tenants that are occupying the building Everyone has a stake in
terms of trying to reduce our energy userdquo
More information and resources available at
httpenvironmentlaorg
wwwcityenergyprojectorg
CLIMATE LEADERSHIP THROUGH COLLABORATION
The City will lead by example with our own buildings We are going to start with benchmarking our energy and water use and making that information transparent
ndash Hilary Firestone
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 1
William Lowery President of Tālō Management Group and BOMA Sustainability Chair shared
information on BOMArsquos sustainability initiatives and resources for members
The Building Owners and Managers Association (BOMA) Sustainability Committee of Greater Los
Angeles holds monthly discussions on issues that affect existing buildings high rises and Class A B and C
buildings Recent topics include water conservation Title 24 cosmpliance water and energy to retrofits
and emerging technology The Sustainability Committee also seeks to address challenges faced by BOMA
members in the Greater Los Angeles area
With the passing of Assembly Bill 1103 which went into effect in January BOMA LA hosted webinars and
hands-on trainings in West and downtown Los Angeles to help building owners and manager comply with
the new regulation
In August the organization held their fourth annual Great Los Angeles Sustainability Seminar which
covered the value of green building improvements and operations and third-party certifications such as
LEED ENERGY STAR and BOMA 360
More information and resources available at
wwwbomaglaorg
View Event Interview
RESOURCES FOR BUILDING OWNERS amp MANAGERS
We partner with organizations like the USGBC and the LA BBC make sure we are spreading the information collected and needed and provide that information to building owners and managers to effectively assist in making change
ndash William Lowery
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 2
Ben Stapleton Director of Commercial Property at LA Better Buildings Challenge (LABBC) told
attendees how Los Angeles is working to reduce energy and water use 20 by 2020 as part of the
National Better Buildings Competition
LABBC is a utility-funded local initiative that is part of the US Department of Energyrsquos Better Buildings
Challenge LABBC surpassed its goal of enrolling 30 million square feet of building space and now has 36
million square feet of building space where owners and managers have committed to reduce energy use
20 by 2020 LA BBC offers no-cost services and subsidies such as energy tracking and analysis audits
project development support and recognition
This year LABBC began offering two new services to help building owners and managers achieve deeper
energy savings LA BBC partnered with contractors to offer challenge participants reduced pricing on
standard efficiency upgrades
ldquoContractors enrolling in this program agree to adhere to a certain set of principles provide their
qualifications and agree to provide standard deliverablesrdquo explained Stapleton ldquoIt is really accelerating
the process for buildings in our program in terms of retrofitting their assetsrdquo
The Tenant Engagement Program (TEP) helps landlords property managers and tenants overcome split-
incentives to help owners recover capital costs and tenants benefit from energy savings The LABBC also
helps participants identify financing such as PACE bonds to fund building performance upgrades
More information and resources available at
wwwla-bbccom
FREE ENERGY AUDITS amp REBATE INFORMATION
We need to focus on how to create value for building owners For LA BBC our goal is to make energy efficiency cheaper easier and faster
ndash Ben Stapleton
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 3
Robert Estrada a water conservation specialist with the Los Angeles Department of Water and Power
(LADWP) encouraged attendees to take advantage of water and energy-savings incentive programs
Estrada began his presentation with a reminder of the dire drought conditions that LA is facing ldquoHere in
Southern California we built water storage for these times Metropolitan Water serves 26 retail water
agencies and the city of LA is their largest customer With approximately 24 million acre feet of water in
emergency storage they are going to draw down 1 million acre feet this year We are really crossing our
fingers for El Nino because we need itrdquo
Per capita water use is at 133 gallons per person per day in Los Angeles LADWP offers incentive
programs to reduce water usage such as turf removal for commercial properties starting at two dollars a
square foot for up to 5000 square feet They also have a Technical Assistance Program with incentives
for water-efficient building upgrades and operations
LADWP also offers a Savings By Design program in partnership with SoCalGas through the Energy
Efficiency Technical Assistance Program (EETAP) ldquoThis program allows customers to get a comprehensive
assessment of their building to identify energy water and gas savings We pay for incentives as they
implement efficiency measuresrdquo In addition to their standard lighting retrofit program LADWP offers a
Custom Performance Program that offers incentives for upgrades following an energy audit Incentives can
now also be used for permitting project management or design fees in addition to efficient technologies
Through the EETAP program auditing services can also be covered through incentives
More information and resources available at
wwwladwpcom
View Event Interview
INCENTIVES FOR EFFICIENCY
For commercial buildings if you have a cooling tower it can use up to half of the buildingrsquos water By going from 25 to 55 [cycles] thatrsquos an overall 30 water savings
ndash Robert Estrada
I N D U S T R Y U P D A T E S
CLIMATE CHANGE RESILIENCE AND ADAPTATION
38 Experiencing
Impacts Now
17 Within
5 Years
7 Beyond
10 Years
31 Donrsquot Know
No Information
7 Within
10 Years
Most Companies
Experience
or Expect
Climate Impacts
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 5
RESILIENCE amp ADAPTATION
In 2013 and 2014 the conversation in the market transitioned from one of potential impacts of climate
change to the realities of adaptation and resilience The EPA released a Climate Adaptation Plan in Febru-
ary 2013 Grosvenor released a Resilient Cities Research Report and the Urban Land Institute launched
an Urban Resilience program and hosted their first annual Building the Resilient City conference
This shift in focus to resilience in the face of adversity comes after two decades of progressively intense
extreme weather events and higher mean temperatures In order to effectively support business opera-
tions our buildings need to be ready to bounce back from disaster with minimum damage and downtime
in addition to absorbing overall increases in temperature
This April the Grosvenor real estate company released a report detailing the findings of their analysis of
the resilience of 50 international cities They defined resilience as a cityrsquos ability to ldquopreserve capital val-
ues and generate sustainable rental income in the long term absorb shocks like natural disasterrdquo and
ldquomaintain their output of goods and services and continue to provide their inhabitants with a good quality
of life according to the standards of the timerdquo
Using this methodology Los Angeles was ranked 21 out of the 50 evaluated cities Although LA earned a
high score for adaptability other factors like rising sea levels earthquakes limited access to potable wa-
ter and socioeconomic stressors increase its vulnerability
Governments arenrsquot the only entity working on resiliency plans Insurance companies are evaluating their
exposure to risk and forward-thinking building owners are drafting climate adaptation plans to catalog
and prevent predictable system failures in addition to developing emergency preparedness and disaster
plans Such plans address the incremental changes in availability of water increasing temperature and
other environmental and social pressures arising from climate change
Roundtable attendees were most focused on how buildings can contribute to grid reliability through load
shifting on-site power generation demand response programs seismic retrofits and voluntary resilience
ratings to lead the market
Resilience increases when cities have more adaptive capacity and decreases when they are more vulnerable
- Resilient Cities Research Report
C L I M A T E C H A N G E
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 6
WATER ENERGY amp ENVIRONMENT MANAGING CLIMATE RISKS
WATER RESILIENCE
The current extreme drought conditions in California have exposed vulnerabilities in the statersquos
water storage and delivery systems Outdated infrastructure inability to increase water rates overpump-
ing and salination of groundwater sources conflicting municipal and community policies and limited ac-
cess to alternative water sources contribute to increasing water stress While Los Angeles has maintained
level water use per capita since the 70rsquos a result of successful metering programs population growth has
pushed water supplies to the limit
ENERGY RESILIENCE
Reducing overall energy usage especially in existing buildings three years or older is the first and
best line of defense in grid reliability Because peak usage times are those times when the grid experienc-
es the most demand up to 40 of a buildingrsquos energy costs comes from peak load energy charges De-
mand response energy storage and on-site generation can effectively reduce costs associated with the
purchase of grid-source peak energy
Demand response programs commonly referred to as Flex Alerts in California have increased in availa-
bility and participation across residential and commercial sectors throughout the state As one participant
put it ldquodemand response is becoming a part of LADWPrsquos DNArdquo Industry experts predict that demand
response programs will become mandatory within the next 10-15 years if not sooner and recommend
that building owners consider capturing the benefits of voluntary participation while it is available
On-site generation using fuel cells to reduce peak grid-source energy use was foremost on participantsrsquo
minds They cited lack of space as the primary reason more on-site generation has not been adopted
Consensus in the group was that renewable energy options generally do not provide an attractive return
on investment even with incentives to justify the allocation of space required to generate meaningful
quantities of energy
Energy storage using battery systems has been developing rapidly and at least one forum attendee ex-
pects to see uptake of market-ready solutions within the next year Incentives are available for up to 3
of the up-front costs of these systems Batteries allow building owners to store energy during off-peak
hours at lower energy rates for use during peak hours
C L I M A T E C H A N G E
BUILD AWARENESS
Educate building managers ten-
ants and employees at all levels
about the need to build the adap-
tive capacity to manage risks in
the long term
ASSESS VULNERABILITIES
Determine the threat climate dis-
ruption poses to core building
operations supplies building and
tenant work force customers and
key services
MANAGE RISKS AND
PURSUE OPPORTUNITIES
Fortify or relocate infrastructure
plan for changes in water and en-
ergy availability or review supply
chain vulnerabilities
REVIEW RISK ASSESSMENTS
AND MAKE PLANS
Continuously review risks and
opportunities regularly using
centralized assessment tools and
develop adaptive risk manage-
ment plans
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 7
C L I M A T E C H A N G E
ENVIRONMENTAL RESILIENCE
While frequency of earthquakes is not directly linked to climate change response to earth-
quakes is certainly a factor in building resilience and an area of vulnerability in Los Angeles The most im-
portant component of building resilience in Los Angeles is the choice of structural materials Steel frame
buildings are considerably more adaptable and thereby more resilient than their concrete-framed coun-
terparts
A seismic-readiness survey of the city of Los Angeles conducted by a team of UC Berkeley researchers
revealed that a number of buildings require retrofits to meet seismic standards These buildings are pri-
marily smaller concrete structures prompting attendees to note that the least resilient buildings are fre-
quently controlled by building owners with the fewest resources both capital and staff to manage re-
quired upgrades Add the fear of triggering potentially costly Title 24 energy upgrades and compliance
with seismic standards becomes nearly impossible
One attendee suggested that seismic upgrades be linked to energy efficiency upgrades creating an op-
portunity for a deep retrofit that raises the overall value and stature of the property The challenge is en-
couraging these owners of concrete building who are frequently hesitant to incorporate major capital
improvements to comply The perception of complexity is already a significant obstacle to adoption of a
number of incentive and financing opportunities
Infographics on page 14 and 16 source ldquoWeathering the Storm Building Business Resilience to Climate Changerdquo Center for Cli-
mate and Energy Solutions Munich Re National Oceanic and Atmospheric Aon Benfield Lloydrsquos of London
Policy and regulations will con-tinue to drive local governments and the building industry to address climate change risks infrastructure needs and increased resource needs for water energy and demographic shifts Proactive owners need to stay in front of these risks and get ready to recover from natural disasters with minimum damage and downtime
- Daniele Horton Founder amp Principal
Verdani Partners
WATER EFFICIENCY SECTION DIVIDER SIDEBAR HEADER GOES HERE WATER EFFICIENCY
19
00
19
40
20
10
20
15
20
50
Colorado River
Annual Average
River Flow
NO AND LOW COST MEASURES
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 9
Drought in California and water conservation is the new norm ndash Robert Estrada Los Angeles Department of Water and Power
Source US Drought Monitor (httpdroughtmonitorunledu)
The current extreme drought in California has exposed vulnerabilities in the statersquos water storage and
delivery systems Outdated infrastructure over pumping of ground water supplies pollution of ground
water supplies by fracking and other activities conflicting municipal and community policies climate
change increased demand and limited access to alternative water sources contribute to increasing water
stress While Los Angeles has maintained level water use per capita for the past forty years a result of
successful metering programs population growth has pushed water supplies to the limit Climate change
has also greatly affected the snow pack water supplies and the underground water reserves are been
tapped at an unprecedented rate The state is facing one of its worst droughts in history and a massive
effort will be needed to find solutions to meet its water demand needs
In response to current conditions Los Angeles Mayor Eric Garcetti signed an Executive Directive on
October 14 2014 to reduce potable water use 20 by 2017 This includes removing turf landscaping at
city buildings and replacing it with native and drought-resistant plants The directive also mandates the
CURRENT CONDITIONS
LOS ANGELES WATER SUPPLY
1 Recycled
Water
11 Groundwater
37 LA Aqueduct
51 Purchased from
Metropolitan
Water District
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 0
Los Angeles Department of Water and Power (LADWP) to reduce water imports 50 by 2024
It was also discussed that the cost of water is still quite low which makes the business case for making
water efficiency upgrades more challenging Some of the attendees mentioned that a price signal would
be critical to incentivize additional water efficiency upgrades and lower water usage The LADWP rep
explained that because they are a public entity that they cannot charge for the water They can only
charge to transport the water and any rate increases need to be approved by the voters which makes the
process for increasing the fees for water very challenging
A best practice for conservation and one that has helped Los Angeles maintain the lowest consumption
for any city with a population over 1 million is metering
LADWP launched their conservation program in the late 1970s Today the LADWP provides extensive
incentive programs for water use reduction efforts including prescriptive or menu-based programs and
more flexible technical assistance programs While more involved the technical assistance programs
cover a larger variety of costs associated with pre-approved water conservation measures including
consulting fees Recently utilization of technical assistance programs has surpassed the traditional menu-
based programs although many building
owners interviewed were still unaware of
the technical assistance program
While improving the efficiency of indoor
water fixtures has been a popular and well-publicized program historically utilities have identified cooling
towers and outdoor water use as 70+ of annual building water consumption making them the target of
renewed water conservation efforts including access to reclaimed water widespread adoption of rain
sensors reverse osmosis systems and microfiltration systems
70+ of annual building water consumption -
cooling towers and outdoor water use
WATER RETROFIT OPPORTUNITIES
Install metering devices and controls
Perform ongoing distribution system
audits leak detection and repair
Install native and drought resistant
landscape
Maximize indoor plumbing fixture and
fitting efficiency (toilets urinals faucets
aerators and showerheads)
Implement a cooling tower chemical
management and water efficiency
program
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 1
WATER USAGE PER CAPITA
133 GALLONSDAYPERSON
Daily water use (LADWP) all customers Second
lowest in the nation for cities over 1 million
people NY beats LA
Source California Department of Water Resources
LADWP provides extensive prescriptive and menu-based programs as well as more flexible technical
assistance programs to incentivize water use reductions The technical assistance programs require more
upfront involvement from property managers but also cover a larger variety of costs associated with pre-
approved water conservation measures including consulting fees In recent years technical assistance
programs have increased in popularity and have surpassed the traditional menu-based programs These
ratepayer-funded programs are offered at no additional cost to residential and commercial customers By
the end of 2014 LADWP will have invested$60 million dollars in water conservation incentive programs
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 2
As water efficiency regulations become more stringent and water rates continue to rise property owners
and operators can reap immediate benefits from low-cost measures such as the installation of aerators
and quickly recoup investments in upgrading indoor water fixtures
Building managers can reduce water use by installing low-flow or ultra low-flow fixtures fittings and
equipment such as toilets and urinals that exceed current code requirements per recommendations below
Water closets max 16 gallonsflush
Urinals max 0125 to 05 gallonflush
Shower heads max 18 gallonsminute
Faucets max 10 gallonsminute
Replacement aerators max 05 gallonsminute
Metering faucets max 025 gallonscycle
To help meet the Cityrsquos aggressive water conservation goals building owners will be encouraged to move
beyond upgrades to efficient indoor water fixtures for deeper savings Cooling towers and outdoor water
use account for an average of 70 of building water consumption making them the target of increased
water conservation efforts
Reclaimed water is currently restricted to limited areas There are plans to further develop water
reclamation projects for Los Angeles however its use is limited by state health requirements and the
high cost of pumping plants and distribution facilities to deliver water from the reclamation plants to the
customers Robert Estrada of LADWP reports that the cost is an estimated million dollars per mile of
purple pipe However if Assembly Bill 2282 passes all new residential and commercial construction with
access to reclaimed water will be required to incorporate it into approved uses such as landscaping and
reclaimed water infrastructure would necessarily expand
The statersquos water supplies are at all times low underground water supplies are rapidly diminishing and
demand for water continues to grow Solutions to solve our water supply needs will involve many
different solutions from efficiency programs to lower demand a price signal and a search for new water
sources and importing water and desalinization plants
LOS ANGELES DWP
Since 1990 LA Department of Water and Power has
spent about $280 million on conservation programs
METROPOLITAN WATER DISTRICT
Metropolitan provides rebates on water efficient
fixtures financial assistance for water reduction
projects and incentives programs
MAYORrsquoS DIRECTIVE TO CUT WATER USE
(LA Times article) LA Mayor Eric Garcetti signed an
executive directive to further cut potable water use
20X2020 WATER CONSERVATION PLAN
Statewide plan enacted in 2010 to reduce water
consumption by 20 by 2020
SENATE BILL SB X7-7 2009
This Senate bill requires all water suppliers to increase
water efficiency
WATERSENSE
A recognized seal of approval for water efficiency
similar to ENERGY STAR
DOE WATER EFFICIENCY BMPS
Water Efficiency Best Management Practices from the
US Department of Energy
CONCLUSION RESOURCES
W A T E R E F F I C I E N C Y
E N E R G Y E F F I C I E N C Y
RENEWABLE
HYDRO GEOTHERMAL
WIND SOLAR
BIO-DIESEL BIO-MASS
EFFICIENCY
CO-GENERATION
EFFICIENT APPLIANCES EFFICIENT LIGHTING
EFFICIENT VEHICLES EFFICIENT BUILDINGS
INTELLIGENT POWER NETWORKS DECENTRALIZED GRIDS
CONSERVATION
GREY WATER RECYCLING ALTERNATIVE TRANSPORTATION
ENERGY EFFICIENCY RETROFIT STRATEGY
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 4
Many retrofits occur on a piecemeal basis as incentives become available or contractors provide upgrade
recommendations However many buildings especially those that are considering aesthetic or structural
improvements may benefit from a more comprehensive deep energy retrofit
The key components of a deep retrofit process are ongoing energy management assembling an
interdisciplinary team robust analysis and measurement and verification This process is not linear
phases may overlap or go on concurrently and will vary based on factors such as ownership structure
scale of building project delivery method and building complexity
While net zero was once considered a faraway goal for only the most technologically advanced buildings
the National Renewable Energy Laboratory found that there is now the technical potential for over 47
percent of existing US commercial building floor space to achieve net zero energy using existing
technologies and design processes
Net zero may seem unachievable but it can be done using the same principles as effective deep retrofits The
process starts with a solid understanding of baseline operations and expenditures and benefits from
extensive modeling and cost-benefit analysis to optimize systems choice for highest return on investment
There is considerable guidance within the market on how to retrofit buildings with sustainable
technologies to improve their environmental performance A significant barrier however to carrying out
sustainable retrofits is financing A number of financing mechanisms exist and each scenario is unique
Most building owners will choose to use
their own capital when available to avoid
time-intensive administration activities
Other traditional financing options
include loans and bond programs as well
as increases to operating fees or capital leases Building owners and managers can also take advantage of
funding improvements through bill savings (as with performance contracting with Energy Service
Contractors or ESCOrsquos) PACE bonds energy service agreements on-bill financing incentives and rebates
As utility rates continue to rise the incentive to implement energy efficiency projects has gone from cost
savings to cost avoidance This challenge is coupled with how to finance retrofit projects and what to do
once incentivized equipment has been installed
RETROFIT STRATEGY
E N E R G Y E F F I C I E N C Y
21+ Utilities represent an average of 21 of
total building expenses
ndash2012 BOMA Exchange Report
ENERGY RETROFIT OPPORTUNITIES
Monitor meter and commission main
building systems
Maximize heating and cooling efficiencies
and install variable frequency drives on
equipment
Lighting upgrades and controls (efficient
lights daylight harvesting motion sensors
etc)
Install a building automation system
invest in DDC wireless controls energy
optimization software and demand
response infrastructure
Retrofit main building systems chillers
cooling towers boilers fan motors
Building envelope Seal windows install
window films retrofit windows with
higher R-Value
Invest in on-site generation and
renewable Energy systems (fuel cell wind
geothermal and solar energy)
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 6
ENERGY EFFICIENCY
In top real estate markets a Class A building must be an energy-efficient building In order to stay in the
lead building owners should consider deeper energy retrofits and equipment upgrades at the time of
aesthetic or tenant improvements
TECHNOLOGY
Smarter technology provides building owners and managers insight into how buildings perform in real time
throughout the lifecycle of the building Cloud-based software applications tied to building automation
systems (BAS) can prevent downtime events and help owners and managers reduce peak-load charges
SUSTAINABILITY TRENDS
Class A building owners can go beyond equipment upgrades to improve performance with tenant-level
metering data-specific engagement and energy and water use disclosure A greater push for transparency
is also influencing more owners to disclose their efficiency data
I N T R O D U C T I O N
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 7
GREEN BUILDING STATISTICS
Structures that are already built or near completion represent
99 of US building stock Most of the US building stock is over 20years old and
75 is ripe for a retrofit By 2050 CA aims to reduce carbon emissions
80 below 1990 levels Buildings are responsible for
39 CO2 emissions The average commercial building wastes an average of
30 energy it consumes Energy use reductions of 10 are possible with
Little or no cost Commercial and institutional building electricity use accounts for
60 building energy use
INDUSTRY UPDATES Industry experts from the Greater Los Angeles area kicked off
the 2014 Think Tank Roundtable with sector updates and information
about emerging trends in sustainability and real estate
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 9
Dominique Smith the Interim Executive Director of the USGBC-LA Chapter discussed two programs
the USGBC-LA chapter is currently spearheading and supporting including the Energy and Water
Ambassadors Program and the Green Janitor Education Program
The USGBC-LArsquos Energy and Water Ambassador Program connects Class B and C building owners and
managers with an ambassador to help them identify energy and water savings opportunities in their
buildings and the financing rebates and incentives required to move from analysis to investment
Through the program a USGBC-LA staff member meets onsite with the owner or management team to
identify building-specific energy and water conservation measures The ambassador identifies which
rebates and tax credits are available for the building advises on potential utility bill savings and assesses
LEED certification opportunities
The Green Janitor Education Program started as an idea to offer training in green cleaning safety
increasing energy efficiency and water conservation to janitors nationwide This program is currently
being piloted at seven buildings in Los Angeles and has already graduated 20 green janitors as of May
with the goal of 150 graduates by the end of summer
More information and resources available at
USGBC-LA
View Event Interview
TECHNICAL SUPPORT FROM USGBC-LA
As ambassadors we meet with building owners of all types siz-es and markets to identify ways they can run their operations in a more cost-effective way be sus-tainable and also save money
- Dominique Smith
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 0
Hilary Firestone Senior Energy Efficiency Project Manager for the City of Los Angeles provided an update
from the Mayorrsquos Office of Sustainability a new office which was created in 2013 to facilitate cross-agency
collaboration on sustainability issues
The Cityrsquos first Sustainability Plan looks at the work thatrsquos already been done to reduce emissions and also
examines strategies for further mitigation and adaptation The Plan described as ldquothe 20 of sustainability
plansrdquo looks at the traditional areas of transportation air water greenhouse gases as well as provides new
and innovative strategies A key theme in the report is collaboration with an emphasis on the importance of all
sectors working together to cut emissions
Buildings and transportation are the primary sources of carbon emissions in Los Angeles with 51 coming
from buildings alone In 2013 Los Angeles had the most ENERGY STARreg certified buildings in the country but
the majority of the Cityrsquos building stock has a significant opportunity to improve energy and water efficiency
ldquoIt is going to bethe building ownerrsquos responsibility to install EV chargers on their properties and the
responsibility of the City to facilitate improvements to public transportationrdquo said Firestone providing an
example of how the public and private sectors will need to work together to achieve the cityrsquos aggressive
emissions reductions targetrdquo
Another example of public and private partnership comes in the form of incentive programs The Los Angeles
Department of Water and Energy allocated $50 million to energy efficiency for the 2012-2013 fiscal year and
$101 million for 2013-2014 In addition to utility and nonprofit programs the city is working to help building
owners and managers overcome the challenges and barriers that have prevented them from investing in
energy and water retrofits in the past
One of the main barriers to catalyzing investment in energy efficiency is a lack of information about energy use
in buildings ldquoOne of the efforts wersquore working on at the state level is making it easy for building owners to get
access to their own energy datardquo said Firestone ldquoWe are trying to make that information easier for building
owners to access and understand so everyone is held accountable and responsible for their energy
consumption ndash not just the owners but the tenants that are occupying the building Everyone has a stake in
terms of trying to reduce our energy userdquo
More information and resources available at
httpenvironmentlaorg
wwwcityenergyprojectorg
CLIMATE LEADERSHIP THROUGH COLLABORATION
The City will lead by example with our own buildings We are going to start with benchmarking our energy and water use and making that information transparent
ndash Hilary Firestone
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 1
William Lowery President of Tālō Management Group and BOMA Sustainability Chair shared
information on BOMArsquos sustainability initiatives and resources for members
The Building Owners and Managers Association (BOMA) Sustainability Committee of Greater Los
Angeles holds monthly discussions on issues that affect existing buildings high rises and Class A B and C
buildings Recent topics include water conservation Title 24 cosmpliance water and energy to retrofits
and emerging technology The Sustainability Committee also seeks to address challenges faced by BOMA
members in the Greater Los Angeles area
With the passing of Assembly Bill 1103 which went into effect in January BOMA LA hosted webinars and
hands-on trainings in West and downtown Los Angeles to help building owners and manager comply with
the new regulation
In August the organization held their fourth annual Great Los Angeles Sustainability Seminar which
covered the value of green building improvements and operations and third-party certifications such as
LEED ENERGY STAR and BOMA 360
More information and resources available at
wwwbomaglaorg
View Event Interview
RESOURCES FOR BUILDING OWNERS amp MANAGERS
We partner with organizations like the USGBC and the LA BBC make sure we are spreading the information collected and needed and provide that information to building owners and managers to effectively assist in making change
ndash William Lowery
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 2
Ben Stapleton Director of Commercial Property at LA Better Buildings Challenge (LABBC) told
attendees how Los Angeles is working to reduce energy and water use 20 by 2020 as part of the
National Better Buildings Competition
LABBC is a utility-funded local initiative that is part of the US Department of Energyrsquos Better Buildings
Challenge LABBC surpassed its goal of enrolling 30 million square feet of building space and now has 36
million square feet of building space where owners and managers have committed to reduce energy use
20 by 2020 LA BBC offers no-cost services and subsidies such as energy tracking and analysis audits
project development support and recognition
This year LABBC began offering two new services to help building owners and managers achieve deeper
energy savings LA BBC partnered with contractors to offer challenge participants reduced pricing on
standard efficiency upgrades
ldquoContractors enrolling in this program agree to adhere to a certain set of principles provide their
qualifications and agree to provide standard deliverablesrdquo explained Stapleton ldquoIt is really accelerating
the process for buildings in our program in terms of retrofitting their assetsrdquo
The Tenant Engagement Program (TEP) helps landlords property managers and tenants overcome split-
incentives to help owners recover capital costs and tenants benefit from energy savings The LABBC also
helps participants identify financing such as PACE bonds to fund building performance upgrades
More information and resources available at
wwwla-bbccom
FREE ENERGY AUDITS amp REBATE INFORMATION
We need to focus on how to create value for building owners For LA BBC our goal is to make energy efficiency cheaper easier and faster
ndash Ben Stapleton
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 3
Robert Estrada a water conservation specialist with the Los Angeles Department of Water and Power
(LADWP) encouraged attendees to take advantage of water and energy-savings incentive programs
Estrada began his presentation with a reminder of the dire drought conditions that LA is facing ldquoHere in
Southern California we built water storage for these times Metropolitan Water serves 26 retail water
agencies and the city of LA is their largest customer With approximately 24 million acre feet of water in
emergency storage they are going to draw down 1 million acre feet this year We are really crossing our
fingers for El Nino because we need itrdquo
Per capita water use is at 133 gallons per person per day in Los Angeles LADWP offers incentive
programs to reduce water usage such as turf removal for commercial properties starting at two dollars a
square foot for up to 5000 square feet They also have a Technical Assistance Program with incentives
for water-efficient building upgrades and operations
LADWP also offers a Savings By Design program in partnership with SoCalGas through the Energy
Efficiency Technical Assistance Program (EETAP) ldquoThis program allows customers to get a comprehensive
assessment of their building to identify energy water and gas savings We pay for incentives as they
implement efficiency measuresrdquo In addition to their standard lighting retrofit program LADWP offers a
Custom Performance Program that offers incentives for upgrades following an energy audit Incentives can
now also be used for permitting project management or design fees in addition to efficient technologies
Through the EETAP program auditing services can also be covered through incentives
More information and resources available at
wwwladwpcom
View Event Interview
INCENTIVES FOR EFFICIENCY
For commercial buildings if you have a cooling tower it can use up to half of the buildingrsquos water By going from 25 to 55 [cycles] thatrsquos an overall 30 water savings
ndash Robert Estrada
I N D U S T R Y U P D A T E S
CLIMATE CHANGE RESILIENCE AND ADAPTATION
38 Experiencing
Impacts Now
17 Within
5 Years
7 Beyond
10 Years
31 Donrsquot Know
No Information
7 Within
10 Years
Most Companies
Experience
or Expect
Climate Impacts
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 5
RESILIENCE amp ADAPTATION
In 2013 and 2014 the conversation in the market transitioned from one of potential impacts of climate
change to the realities of adaptation and resilience The EPA released a Climate Adaptation Plan in Febru-
ary 2013 Grosvenor released a Resilient Cities Research Report and the Urban Land Institute launched
an Urban Resilience program and hosted their first annual Building the Resilient City conference
This shift in focus to resilience in the face of adversity comes after two decades of progressively intense
extreme weather events and higher mean temperatures In order to effectively support business opera-
tions our buildings need to be ready to bounce back from disaster with minimum damage and downtime
in addition to absorbing overall increases in temperature
This April the Grosvenor real estate company released a report detailing the findings of their analysis of
the resilience of 50 international cities They defined resilience as a cityrsquos ability to ldquopreserve capital val-
ues and generate sustainable rental income in the long term absorb shocks like natural disasterrdquo and
ldquomaintain their output of goods and services and continue to provide their inhabitants with a good quality
of life according to the standards of the timerdquo
Using this methodology Los Angeles was ranked 21 out of the 50 evaluated cities Although LA earned a
high score for adaptability other factors like rising sea levels earthquakes limited access to potable wa-
ter and socioeconomic stressors increase its vulnerability
Governments arenrsquot the only entity working on resiliency plans Insurance companies are evaluating their
exposure to risk and forward-thinking building owners are drafting climate adaptation plans to catalog
and prevent predictable system failures in addition to developing emergency preparedness and disaster
plans Such plans address the incremental changes in availability of water increasing temperature and
other environmental and social pressures arising from climate change
Roundtable attendees were most focused on how buildings can contribute to grid reliability through load
shifting on-site power generation demand response programs seismic retrofits and voluntary resilience
ratings to lead the market
Resilience increases when cities have more adaptive capacity and decreases when they are more vulnerable
- Resilient Cities Research Report
C L I M A T E C H A N G E
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 6
WATER ENERGY amp ENVIRONMENT MANAGING CLIMATE RISKS
WATER RESILIENCE
The current extreme drought conditions in California have exposed vulnerabilities in the statersquos
water storage and delivery systems Outdated infrastructure inability to increase water rates overpump-
ing and salination of groundwater sources conflicting municipal and community policies and limited ac-
cess to alternative water sources contribute to increasing water stress While Los Angeles has maintained
level water use per capita since the 70rsquos a result of successful metering programs population growth has
pushed water supplies to the limit
ENERGY RESILIENCE
Reducing overall energy usage especially in existing buildings three years or older is the first and
best line of defense in grid reliability Because peak usage times are those times when the grid experienc-
es the most demand up to 40 of a buildingrsquos energy costs comes from peak load energy charges De-
mand response energy storage and on-site generation can effectively reduce costs associated with the
purchase of grid-source peak energy
Demand response programs commonly referred to as Flex Alerts in California have increased in availa-
bility and participation across residential and commercial sectors throughout the state As one participant
put it ldquodemand response is becoming a part of LADWPrsquos DNArdquo Industry experts predict that demand
response programs will become mandatory within the next 10-15 years if not sooner and recommend
that building owners consider capturing the benefits of voluntary participation while it is available
On-site generation using fuel cells to reduce peak grid-source energy use was foremost on participantsrsquo
minds They cited lack of space as the primary reason more on-site generation has not been adopted
Consensus in the group was that renewable energy options generally do not provide an attractive return
on investment even with incentives to justify the allocation of space required to generate meaningful
quantities of energy
Energy storage using battery systems has been developing rapidly and at least one forum attendee ex-
pects to see uptake of market-ready solutions within the next year Incentives are available for up to 3
of the up-front costs of these systems Batteries allow building owners to store energy during off-peak
hours at lower energy rates for use during peak hours
C L I M A T E C H A N G E
BUILD AWARENESS
Educate building managers ten-
ants and employees at all levels
about the need to build the adap-
tive capacity to manage risks in
the long term
ASSESS VULNERABILITIES
Determine the threat climate dis-
ruption poses to core building
operations supplies building and
tenant work force customers and
key services
MANAGE RISKS AND
PURSUE OPPORTUNITIES
Fortify or relocate infrastructure
plan for changes in water and en-
ergy availability or review supply
chain vulnerabilities
REVIEW RISK ASSESSMENTS
AND MAKE PLANS
Continuously review risks and
opportunities regularly using
centralized assessment tools and
develop adaptive risk manage-
ment plans
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 7
C L I M A T E C H A N G E
ENVIRONMENTAL RESILIENCE
While frequency of earthquakes is not directly linked to climate change response to earth-
quakes is certainly a factor in building resilience and an area of vulnerability in Los Angeles The most im-
portant component of building resilience in Los Angeles is the choice of structural materials Steel frame
buildings are considerably more adaptable and thereby more resilient than their concrete-framed coun-
terparts
A seismic-readiness survey of the city of Los Angeles conducted by a team of UC Berkeley researchers
revealed that a number of buildings require retrofits to meet seismic standards These buildings are pri-
marily smaller concrete structures prompting attendees to note that the least resilient buildings are fre-
quently controlled by building owners with the fewest resources both capital and staff to manage re-
quired upgrades Add the fear of triggering potentially costly Title 24 energy upgrades and compliance
with seismic standards becomes nearly impossible
One attendee suggested that seismic upgrades be linked to energy efficiency upgrades creating an op-
portunity for a deep retrofit that raises the overall value and stature of the property The challenge is en-
couraging these owners of concrete building who are frequently hesitant to incorporate major capital
improvements to comply The perception of complexity is already a significant obstacle to adoption of a
number of incentive and financing opportunities
Infographics on page 14 and 16 source ldquoWeathering the Storm Building Business Resilience to Climate Changerdquo Center for Cli-
mate and Energy Solutions Munich Re National Oceanic and Atmospheric Aon Benfield Lloydrsquos of London
Policy and regulations will con-tinue to drive local governments and the building industry to address climate change risks infrastructure needs and increased resource needs for water energy and demographic shifts Proactive owners need to stay in front of these risks and get ready to recover from natural disasters with minimum damage and downtime
- Daniele Horton Founder amp Principal
Verdani Partners
WATER EFFICIENCY SECTION DIVIDER SIDEBAR HEADER GOES HERE WATER EFFICIENCY
19
00
19
40
20
10
20
15
20
50
Colorado River
Annual Average
River Flow
NO AND LOW COST MEASURES
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 9
Drought in California and water conservation is the new norm ndash Robert Estrada Los Angeles Department of Water and Power
Source US Drought Monitor (httpdroughtmonitorunledu)
The current extreme drought in California has exposed vulnerabilities in the statersquos water storage and
delivery systems Outdated infrastructure over pumping of ground water supplies pollution of ground
water supplies by fracking and other activities conflicting municipal and community policies climate
change increased demand and limited access to alternative water sources contribute to increasing water
stress While Los Angeles has maintained level water use per capita for the past forty years a result of
successful metering programs population growth has pushed water supplies to the limit Climate change
has also greatly affected the snow pack water supplies and the underground water reserves are been
tapped at an unprecedented rate The state is facing one of its worst droughts in history and a massive
effort will be needed to find solutions to meet its water demand needs
In response to current conditions Los Angeles Mayor Eric Garcetti signed an Executive Directive on
October 14 2014 to reduce potable water use 20 by 2017 This includes removing turf landscaping at
city buildings and replacing it with native and drought-resistant plants The directive also mandates the
CURRENT CONDITIONS
LOS ANGELES WATER SUPPLY
1 Recycled
Water
11 Groundwater
37 LA Aqueduct
51 Purchased from
Metropolitan
Water District
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 0
Los Angeles Department of Water and Power (LADWP) to reduce water imports 50 by 2024
It was also discussed that the cost of water is still quite low which makes the business case for making
water efficiency upgrades more challenging Some of the attendees mentioned that a price signal would
be critical to incentivize additional water efficiency upgrades and lower water usage The LADWP rep
explained that because they are a public entity that they cannot charge for the water They can only
charge to transport the water and any rate increases need to be approved by the voters which makes the
process for increasing the fees for water very challenging
A best practice for conservation and one that has helped Los Angeles maintain the lowest consumption
for any city with a population over 1 million is metering
LADWP launched their conservation program in the late 1970s Today the LADWP provides extensive
incentive programs for water use reduction efforts including prescriptive or menu-based programs and
more flexible technical assistance programs While more involved the technical assistance programs
cover a larger variety of costs associated with pre-approved water conservation measures including
consulting fees Recently utilization of technical assistance programs has surpassed the traditional menu-
based programs although many building
owners interviewed were still unaware of
the technical assistance program
While improving the efficiency of indoor
water fixtures has been a popular and well-publicized program historically utilities have identified cooling
towers and outdoor water use as 70+ of annual building water consumption making them the target of
renewed water conservation efforts including access to reclaimed water widespread adoption of rain
sensors reverse osmosis systems and microfiltration systems
70+ of annual building water consumption -
cooling towers and outdoor water use
WATER RETROFIT OPPORTUNITIES
Install metering devices and controls
Perform ongoing distribution system
audits leak detection and repair
Install native and drought resistant
landscape
Maximize indoor plumbing fixture and
fitting efficiency (toilets urinals faucets
aerators and showerheads)
Implement a cooling tower chemical
management and water efficiency
program
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 1
WATER USAGE PER CAPITA
133 GALLONSDAYPERSON
Daily water use (LADWP) all customers Second
lowest in the nation for cities over 1 million
people NY beats LA
Source California Department of Water Resources
LADWP provides extensive prescriptive and menu-based programs as well as more flexible technical
assistance programs to incentivize water use reductions The technical assistance programs require more
upfront involvement from property managers but also cover a larger variety of costs associated with pre-
approved water conservation measures including consulting fees In recent years technical assistance
programs have increased in popularity and have surpassed the traditional menu-based programs These
ratepayer-funded programs are offered at no additional cost to residential and commercial customers By
the end of 2014 LADWP will have invested$60 million dollars in water conservation incentive programs
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 2
As water efficiency regulations become more stringent and water rates continue to rise property owners
and operators can reap immediate benefits from low-cost measures such as the installation of aerators
and quickly recoup investments in upgrading indoor water fixtures
Building managers can reduce water use by installing low-flow or ultra low-flow fixtures fittings and
equipment such as toilets and urinals that exceed current code requirements per recommendations below
Water closets max 16 gallonsflush
Urinals max 0125 to 05 gallonflush
Shower heads max 18 gallonsminute
Faucets max 10 gallonsminute
Replacement aerators max 05 gallonsminute
Metering faucets max 025 gallonscycle
To help meet the Cityrsquos aggressive water conservation goals building owners will be encouraged to move
beyond upgrades to efficient indoor water fixtures for deeper savings Cooling towers and outdoor water
use account for an average of 70 of building water consumption making them the target of increased
water conservation efforts
Reclaimed water is currently restricted to limited areas There are plans to further develop water
reclamation projects for Los Angeles however its use is limited by state health requirements and the
high cost of pumping plants and distribution facilities to deliver water from the reclamation plants to the
customers Robert Estrada of LADWP reports that the cost is an estimated million dollars per mile of
purple pipe However if Assembly Bill 2282 passes all new residential and commercial construction with
access to reclaimed water will be required to incorporate it into approved uses such as landscaping and
reclaimed water infrastructure would necessarily expand
The statersquos water supplies are at all times low underground water supplies are rapidly diminishing and
demand for water continues to grow Solutions to solve our water supply needs will involve many
different solutions from efficiency programs to lower demand a price signal and a search for new water
sources and importing water and desalinization plants
LOS ANGELES DWP
Since 1990 LA Department of Water and Power has
spent about $280 million on conservation programs
METROPOLITAN WATER DISTRICT
Metropolitan provides rebates on water efficient
fixtures financial assistance for water reduction
projects and incentives programs
MAYORrsquoS DIRECTIVE TO CUT WATER USE
(LA Times article) LA Mayor Eric Garcetti signed an
executive directive to further cut potable water use
20X2020 WATER CONSERVATION PLAN
Statewide plan enacted in 2010 to reduce water
consumption by 20 by 2020
SENATE BILL SB X7-7 2009
This Senate bill requires all water suppliers to increase
water efficiency
WATERSENSE
A recognized seal of approval for water efficiency
similar to ENERGY STAR
DOE WATER EFFICIENCY BMPS
Water Efficiency Best Management Practices from the
US Department of Energy
CONCLUSION RESOURCES
W A T E R E F F I C I E N C Y
E N E R G Y E F F I C I E N C Y
RENEWABLE
HYDRO GEOTHERMAL
WIND SOLAR
BIO-DIESEL BIO-MASS
EFFICIENCY
CO-GENERATION
EFFICIENT APPLIANCES EFFICIENT LIGHTING
EFFICIENT VEHICLES EFFICIENT BUILDINGS
INTELLIGENT POWER NETWORKS DECENTRALIZED GRIDS
CONSERVATION
GREY WATER RECYCLING ALTERNATIVE TRANSPORTATION
ENERGY EFFICIENCY RETROFIT STRATEGY
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 4
Many retrofits occur on a piecemeal basis as incentives become available or contractors provide upgrade
recommendations However many buildings especially those that are considering aesthetic or structural
improvements may benefit from a more comprehensive deep energy retrofit
The key components of a deep retrofit process are ongoing energy management assembling an
interdisciplinary team robust analysis and measurement and verification This process is not linear
phases may overlap or go on concurrently and will vary based on factors such as ownership structure
scale of building project delivery method and building complexity
While net zero was once considered a faraway goal for only the most technologically advanced buildings
the National Renewable Energy Laboratory found that there is now the technical potential for over 47
percent of existing US commercial building floor space to achieve net zero energy using existing
technologies and design processes
Net zero may seem unachievable but it can be done using the same principles as effective deep retrofits The
process starts with a solid understanding of baseline operations and expenditures and benefits from
extensive modeling and cost-benefit analysis to optimize systems choice for highest return on investment
There is considerable guidance within the market on how to retrofit buildings with sustainable
technologies to improve their environmental performance A significant barrier however to carrying out
sustainable retrofits is financing A number of financing mechanisms exist and each scenario is unique
Most building owners will choose to use
their own capital when available to avoid
time-intensive administration activities
Other traditional financing options
include loans and bond programs as well
as increases to operating fees or capital leases Building owners and managers can also take advantage of
funding improvements through bill savings (as with performance contracting with Energy Service
Contractors or ESCOrsquos) PACE bonds energy service agreements on-bill financing incentives and rebates
As utility rates continue to rise the incentive to implement energy efficiency projects has gone from cost
savings to cost avoidance This challenge is coupled with how to finance retrofit projects and what to do
once incentivized equipment has been installed
RETROFIT STRATEGY
E N E R G Y E F F I C I E N C Y
21+ Utilities represent an average of 21 of
total building expenses
ndash2012 BOMA Exchange Report
ENERGY RETROFIT OPPORTUNITIES
Monitor meter and commission main
building systems
Maximize heating and cooling efficiencies
and install variable frequency drives on
equipment
Lighting upgrades and controls (efficient
lights daylight harvesting motion sensors
etc)
Install a building automation system
invest in DDC wireless controls energy
optimization software and demand
response infrastructure
Retrofit main building systems chillers
cooling towers boilers fan motors
Building envelope Seal windows install
window films retrofit windows with
higher R-Value
Invest in on-site generation and
renewable Energy systems (fuel cell wind
geothermal and solar energy)
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 7
GREEN BUILDING STATISTICS
Structures that are already built or near completion represent
99 of US building stock Most of the US building stock is over 20years old and
75 is ripe for a retrofit By 2050 CA aims to reduce carbon emissions
80 below 1990 levels Buildings are responsible for
39 CO2 emissions The average commercial building wastes an average of
30 energy it consumes Energy use reductions of 10 are possible with
Little or no cost Commercial and institutional building electricity use accounts for
60 building energy use
INDUSTRY UPDATES Industry experts from the Greater Los Angeles area kicked off
the 2014 Think Tank Roundtable with sector updates and information
about emerging trends in sustainability and real estate
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 9
Dominique Smith the Interim Executive Director of the USGBC-LA Chapter discussed two programs
the USGBC-LA chapter is currently spearheading and supporting including the Energy and Water
Ambassadors Program and the Green Janitor Education Program
The USGBC-LArsquos Energy and Water Ambassador Program connects Class B and C building owners and
managers with an ambassador to help them identify energy and water savings opportunities in their
buildings and the financing rebates and incentives required to move from analysis to investment
Through the program a USGBC-LA staff member meets onsite with the owner or management team to
identify building-specific energy and water conservation measures The ambassador identifies which
rebates and tax credits are available for the building advises on potential utility bill savings and assesses
LEED certification opportunities
The Green Janitor Education Program started as an idea to offer training in green cleaning safety
increasing energy efficiency and water conservation to janitors nationwide This program is currently
being piloted at seven buildings in Los Angeles and has already graduated 20 green janitors as of May
with the goal of 150 graduates by the end of summer
More information and resources available at
USGBC-LA
View Event Interview
TECHNICAL SUPPORT FROM USGBC-LA
As ambassadors we meet with building owners of all types siz-es and markets to identify ways they can run their operations in a more cost-effective way be sus-tainable and also save money
- Dominique Smith
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 0
Hilary Firestone Senior Energy Efficiency Project Manager for the City of Los Angeles provided an update
from the Mayorrsquos Office of Sustainability a new office which was created in 2013 to facilitate cross-agency
collaboration on sustainability issues
The Cityrsquos first Sustainability Plan looks at the work thatrsquos already been done to reduce emissions and also
examines strategies for further mitigation and adaptation The Plan described as ldquothe 20 of sustainability
plansrdquo looks at the traditional areas of transportation air water greenhouse gases as well as provides new
and innovative strategies A key theme in the report is collaboration with an emphasis on the importance of all
sectors working together to cut emissions
Buildings and transportation are the primary sources of carbon emissions in Los Angeles with 51 coming
from buildings alone In 2013 Los Angeles had the most ENERGY STARreg certified buildings in the country but
the majority of the Cityrsquos building stock has a significant opportunity to improve energy and water efficiency
ldquoIt is going to bethe building ownerrsquos responsibility to install EV chargers on their properties and the
responsibility of the City to facilitate improvements to public transportationrdquo said Firestone providing an
example of how the public and private sectors will need to work together to achieve the cityrsquos aggressive
emissions reductions targetrdquo
Another example of public and private partnership comes in the form of incentive programs The Los Angeles
Department of Water and Energy allocated $50 million to energy efficiency for the 2012-2013 fiscal year and
$101 million for 2013-2014 In addition to utility and nonprofit programs the city is working to help building
owners and managers overcome the challenges and barriers that have prevented them from investing in
energy and water retrofits in the past
One of the main barriers to catalyzing investment in energy efficiency is a lack of information about energy use
in buildings ldquoOne of the efforts wersquore working on at the state level is making it easy for building owners to get
access to their own energy datardquo said Firestone ldquoWe are trying to make that information easier for building
owners to access and understand so everyone is held accountable and responsible for their energy
consumption ndash not just the owners but the tenants that are occupying the building Everyone has a stake in
terms of trying to reduce our energy userdquo
More information and resources available at
httpenvironmentlaorg
wwwcityenergyprojectorg
CLIMATE LEADERSHIP THROUGH COLLABORATION
The City will lead by example with our own buildings We are going to start with benchmarking our energy and water use and making that information transparent
ndash Hilary Firestone
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 1
William Lowery President of Tālō Management Group and BOMA Sustainability Chair shared
information on BOMArsquos sustainability initiatives and resources for members
The Building Owners and Managers Association (BOMA) Sustainability Committee of Greater Los
Angeles holds monthly discussions on issues that affect existing buildings high rises and Class A B and C
buildings Recent topics include water conservation Title 24 cosmpliance water and energy to retrofits
and emerging technology The Sustainability Committee also seeks to address challenges faced by BOMA
members in the Greater Los Angeles area
With the passing of Assembly Bill 1103 which went into effect in January BOMA LA hosted webinars and
hands-on trainings in West and downtown Los Angeles to help building owners and manager comply with
the new regulation
In August the organization held their fourth annual Great Los Angeles Sustainability Seminar which
covered the value of green building improvements and operations and third-party certifications such as
LEED ENERGY STAR and BOMA 360
More information and resources available at
wwwbomaglaorg
View Event Interview
RESOURCES FOR BUILDING OWNERS amp MANAGERS
We partner with organizations like the USGBC and the LA BBC make sure we are spreading the information collected and needed and provide that information to building owners and managers to effectively assist in making change
ndash William Lowery
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 2
Ben Stapleton Director of Commercial Property at LA Better Buildings Challenge (LABBC) told
attendees how Los Angeles is working to reduce energy and water use 20 by 2020 as part of the
National Better Buildings Competition
LABBC is a utility-funded local initiative that is part of the US Department of Energyrsquos Better Buildings
Challenge LABBC surpassed its goal of enrolling 30 million square feet of building space and now has 36
million square feet of building space where owners and managers have committed to reduce energy use
20 by 2020 LA BBC offers no-cost services and subsidies such as energy tracking and analysis audits
project development support and recognition
This year LABBC began offering two new services to help building owners and managers achieve deeper
energy savings LA BBC partnered with contractors to offer challenge participants reduced pricing on
standard efficiency upgrades
ldquoContractors enrolling in this program agree to adhere to a certain set of principles provide their
qualifications and agree to provide standard deliverablesrdquo explained Stapleton ldquoIt is really accelerating
the process for buildings in our program in terms of retrofitting their assetsrdquo
The Tenant Engagement Program (TEP) helps landlords property managers and tenants overcome split-
incentives to help owners recover capital costs and tenants benefit from energy savings The LABBC also
helps participants identify financing such as PACE bonds to fund building performance upgrades
More information and resources available at
wwwla-bbccom
FREE ENERGY AUDITS amp REBATE INFORMATION
We need to focus on how to create value for building owners For LA BBC our goal is to make energy efficiency cheaper easier and faster
ndash Ben Stapleton
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 3
Robert Estrada a water conservation specialist with the Los Angeles Department of Water and Power
(LADWP) encouraged attendees to take advantage of water and energy-savings incentive programs
Estrada began his presentation with a reminder of the dire drought conditions that LA is facing ldquoHere in
Southern California we built water storage for these times Metropolitan Water serves 26 retail water
agencies and the city of LA is their largest customer With approximately 24 million acre feet of water in
emergency storage they are going to draw down 1 million acre feet this year We are really crossing our
fingers for El Nino because we need itrdquo
Per capita water use is at 133 gallons per person per day in Los Angeles LADWP offers incentive
programs to reduce water usage such as turf removal for commercial properties starting at two dollars a
square foot for up to 5000 square feet They also have a Technical Assistance Program with incentives
for water-efficient building upgrades and operations
LADWP also offers a Savings By Design program in partnership with SoCalGas through the Energy
Efficiency Technical Assistance Program (EETAP) ldquoThis program allows customers to get a comprehensive
assessment of their building to identify energy water and gas savings We pay for incentives as they
implement efficiency measuresrdquo In addition to their standard lighting retrofit program LADWP offers a
Custom Performance Program that offers incentives for upgrades following an energy audit Incentives can
now also be used for permitting project management or design fees in addition to efficient technologies
Through the EETAP program auditing services can also be covered through incentives
More information and resources available at
wwwladwpcom
View Event Interview
INCENTIVES FOR EFFICIENCY
For commercial buildings if you have a cooling tower it can use up to half of the buildingrsquos water By going from 25 to 55 [cycles] thatrsquos an overall 30 water savings
ndash Robert Estrada
I N D U S T R Y U P D A T E S
CLIMATE CHANGE RESILIENCE AND ADAPTATION
38 Experiencing
Impacts Now
17 Within
5 Years
7 Beyond
10 Years
31 Donrsquot Know
No Information
7 Within
10 Years
Most Companies
Experience
or Expect
Climate Impacts
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 5
RESILIENCE amp ADAPTATION
In 2013 and 2014 the conversation in the market transitioned from one of potential impacts of climate
change to the realities of adaptation and resilience The EPA released a Climate Adaptation Plan in Febru-
ary 2013 Grosvenor released a Resilient Cities Research Report and the Urban Land Institute launched
an Urban Resilience program and hosted their first annual Building the Resilient City conference
This shift in focus to resilience in the face of adversity comes after two decades of progressively intense
extreme weather events and higher mean temperatures In order to effectively support business opera-
tions our buildings need to be ready to bounce back from disaster with minimum damage and downtime
in addition to absorbing overall increases in temperature
This April the Grosvenor real estate company released a report detailing the findings of their analysis of
the resilience of 50 international cities They defined resilience as a cityrsquos ability to ldquopreserve capital val-
ues and generate sustainable rental income in the long term absorb shocks like natural disasterrdquo and
ldquomaintain their output of goods and services and continue to provide their inhabitants with a good quality
of life according to the standards of the timerdquo
Using this methodology Los Angeles was ranked 21 out of the 50 evaluated cities Although LA earned a
high score for adaptability other factors like rising sea levels earthquakes limited access to potable wa-
ter and socioeconomic stressors increase its vulnerability
Governments arenrsquot the only entity working on resiliency plans Insurance companies are evaluating their
exposure to risk and forward-thinking building owners are drafting climate adaptation plans to catalog
and prevent predictable system failures in addition to developing emergency preparedness and disaster
plans Such plans address the incremental changes in availability of water increasing temperature and
other environmental and social pressures arising from climate change
Roundtable attendees were most focused on how buildings can contribute to grid reliability through load
shifting on-site power generation demand response programs seismic retrofits and voluntary resilience
ratings to lead the market
Resilience increases when cities have more adaptive capacity and decreases when they are more vulnerable
- Resilient Cities Research Report
C L I M A T E C H A N G E
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 6
WATER ENERGY amp ENVIRONMENT MANAGING CLIMATE RISKS
WATER RESILIENCE
The current extreme drought conditions in California have exposed vulnerabilities in the statersquos
water storage and delivery systems Outdated infrastructure inability to increase water rates overpump-
ing and salination of groundwater sources conflicting municipal and community policies and limited ac-
cess to alternative water sources contribute to increasing water stress While Los Angeles has maintained
level water use per capita since the 70rsquos a result of successful metering programs population growth has
pushed water supplies to the limit
ENERGY RESILIENCE
Reducing overall energy usage especially in existing buildings three years or older is the first and
best line of defense in grid reliability Because peak usage times are those times when the grid experienc-
es the most demand up to 40 of a buildingrsquos energy costs comes from peak load energy charges De-
mand response energy storage and on-site generation can effectively reduce costs associated with the
purchase of grid-source peak energy
Demand response programs commonly referred to as Flex Alerts in California have increased in availa-
bility and participation across residential and commercial sectors throughout the state As one participant
put it ldquodemand response is becoming a part of LADWPrsquos DNArdquo Industry experts predict that demand
response programs will become mandatory within the next 10-15 years if not sooner and recommend
that building owners consider capturing the benefits of voluntary participation while it is available
On-site generation using fuel cells to reduce peak grid-source energy use was foremost on participantsrsquo
minds They cited lack of space as the primary reason more on-site generation has not been adopted
Consensus in the group was that renewable energy options generally do not provide an attractive return
on investment even with incentives to justify the allocation of space required to generate meaningful
quantities of energy
Energy storage using battery systems has been developing rapidly and at least one forum attendee ex-
pects to see uptake of market-ready solutions within the next year Incentives are available for up to 3
of the up-front costs of these systems Batteries allow building owners to store energy during off-peak
hours at lower energy rates for use during peak hours
C L I M A T E C H A N G E
BUILD AWARENESS
Educate building managers ten-
ants and employees at all levels
about the need to build the adap-
tive capacity to manage risks in
the long term
ASSESS VULNERABILITIES
Determine the threat climate dis-
ruption poses to core building
operations supplies building and
tenant work force customers and
key services
MANAGE RISKS AND
PURSUE OPPORTUNITIES
Fortify or relocate infrastructure
plan for changes in water and en-
ergy availability or review supply
chain vulnerabilities
REVIEW RISK ASSESSMENTS
AND MAKE PLANS
Continuously review risks and
opportunities regularly using
centralized assessment tools and
develop adaptive risk manage-
ment plans
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 7
C L I M A T E C H A N G E
ENVIRONMENTAL RESILIENCE
While frequency of earthquakes is not directly linked to climate change response to earth-
quakes is certainly a factor in building resilience and an area of vulnerability in Los Angeles The most im-
portant component of building resilience in Los Angeles is the choice of structural materials Steel frame
buildings are considerably more adaptable and thereby more resilient than their concrete-framed coun-
terparts
A seismic-readiness survey of the city of Los Angeles conducted by a team of UC Berkeley researchers
revealed that a number of buildings require retrofits to meet seismic standards These buildings are pri-
marily smaller concrete structures prompting attendees to note that the least resilient buildings are fre-
quently controlled by building owners with the fewest resources both capital and staff to manage re-
quired upgrades Add the fear of triggering potentially costly Title 24 energy upgrades and compliance
with seismic standards becomes nearly impossible
One attendee suggested that seismic upgrades be linked to energy efficiency upgrades creating an op-
portunity for a deep retrofit that raises the overall value and stature of the property The challenge is en-
couraging these owners of concrete building who are frequently hesitant to incorporate major capital
improvements to comply The perception of complexity is already a significant obstacle to adoption of a
number of incentive and financing opportunities
Infographics on page 14 and 16 source ldquoWeathering the Storm Building Business Resilience to Climate Changerdquo Center for Cli-
mate and Energy Solutions Munich Re National Oceanic and Atmospheric Aon Benfield Lloydrsquos of London
Policy and regulations will con-tinue to drive local governments and the building industry to address climate change risks infrastructure needs and increased resource needs for water energy and demographic shifts Proactive owners need to stay in front of these risks and get ready to recover from natural disasters with minimum damage and downtime
- Daniele Horton Founder amp Principal
Verdani Partners
WATER EFFICIENCY SECTION DIVIDER SIDEBAR HEADER GOES HERE WATER EFFICIENCY
19
00
19
40
20
10
20
15
20
50
Colorado River
Annual Average
River Flow
NO AND LOW COST MEASURES
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 9
Drought in California and water conservation is the new norm ndash Robert Estrada Los Angeles Department of Water and Power
Source US Drought Monitor (httpdroughtmonitorunledu)
The current extreme drought in California has exposed vulnerabilities in the statersquos water storage and
delivery systems Outdated infrastructure over pumping of ground water supplies pollution of ground
water supplies by fracking and other activities conflicting municipal and community policies climate
change increased demand and limited access to alternative water sources contribute to increasing water
stress While Los Angeles has maintained level water use per capita for the past forty years a result of
successful metering programs population growth has pushed water supplies to the limit Climate change
has also greatly affected the snow pack water supplies and the underground water reserves are been
tapped at an unprecedented rate The state is facing one of its worst droughts in history and a massive
effort will be needed to find solutions to meet its water demand needs
In response to current conditions Los Angeles Mayor Eric Garcetti signed an Executive Directive on
October 14 2014 to reduce potable water use 20 by 2017 This includes removing turf landscaping at
city buildings and replacing it with native and drought-resistant plants The directive also mandates the
CURRENT CONDITIONS
LOS ANGELES WATER SUPPLY
1 Recycled
Water
11 Groundwater
37 LA Aqueduct
51 Purchased from
Metropolitan
Water District
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 0
Los Angeles Department of Water and Power (LADWP) to reduce water imports 50 by 2024
It was also discussed that the cost of water is still quite low which makes the business case for making
water efficiency upgrades more challenging Some of the attendees mentioned that a price signal would
be critical to incentivize additional water efficiency upgrades and lower water usage The LADWP rep
explained that because they are a public entity that they cannot charge for the water They can only
charge to transport the water and any rate increases need to be approved by the voters which makes the
process for increasing the fees for water very challenging
A best practice for conservation and one that has helped Los Angeles maintain the lowest consumption
for any city with a population over 1 million is metering
LADWP launched their conservation program in the late 1970s Today the LADWP provides extensive
incentive programs for water use reduction efforts including prescriptive or menu-based programs and
more flexible technical assistance programs While more involved the technical assistance programs
cover a larger variety of costs associated with pre-approved water conservation measures including
consulting fees Recently utilization of technical assistance programs has surpassed the traditional menu-
based programs although many building
owners interviewed were still unaware of
the technical assistance program
While improving the efficiency of indoor
water fixtures has been a popular and well-publicized program historically utilities have identified cooling
towers and outdoor water use as 70+ of annual building water consumption making them the target of
renewed water conservation efforts including access to reclaimed water widespread adoption of rain
sensors reverse osmosis systems and microfiltration systems
70+ of annual building water consumption -
cooling towers and outdoor water use
WATER RETROFIT OPPORTUNITIES
Install metering devices and controls
Perform ongoing distribution system
audits leak detection and repair
Install native and drought resistant
landscape
Maximize indoor plumbing fixture and
fitting efficiency (toilets urinals faucets
aerators and showerheads)
Implement a cooling tower chemical
management and water efficiency
program
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 1
WATER USAGE PER CAPITA
133 GALLONSDAYPERSON
Daily water use (LADWP) all customers Second
lowest in the nation for cities over 1 million
people NY beats LA
Source California Department of Water Resources
LADWP provides extensive prescriptive and menu-based programs as well as more flexible technical
assistance programs to incentivize water use reductions The technical assistance programs require more
upfront involvement from property managers but also cover a larger variety of costs associated with pre-
approved water conservation measures including consulting fees In recent years technical assistance
programs have increased in popularity and have surpassed the traditional menu-based programs These
ratepayer-funded programs are offered at no additional cost to residential and commercial customers By
the end of 2014 LADWP will have invested$60 million dollars in water conservation incentive programs
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 2
As water efficiency regulations become more stringent and water rates continue to rise property owners
and operators can reap immediate benefits from low-cost measures such as the installation of aerators
and quickly recoup investments in upgrading indoor water fixtures
Building managers can reduce water use by installing low-flow or ultra low-flow fixtures fittings and
equipment such as toilets and urinals that exceed current code requirements per recommendations below
Water closets max 16 gallonsflush
Urinals max 0125 to 05 gallonflush
Shower heads max 18 gallonsminute
Faucets max 10 gallonsminute
Replacement aerators max 05 gallonsminute
Metering faucets max 025 gallonscycle
To help meet the Cityrsquos aggressive water conservation goals building owners will be encouraged to move
beyond upgrades to efficient indoor water fixtures for deeper savings Cooling towers and outdoor water
use account for an average of 70 of building water consumption making them the target of increased
water conservation efforts
Reclaimed water is currently restricted to limited areas There are plans to further develop water
reclamation projects for Los Angeles however its use is limited by state health requirements and the
high cost of pumping plants and distribution facilities to deliver water from the reclamation plants to the
customers Robert Estrada of LADWP reports that the cost is an estimated million dollars per mile of
purple pipe However if Assembly Bill 2282 passes all new residential and commercial construction with
access to reclaimed water will be required to incorporate it into approved uses such as landscaping and
reclaimed water infrastructure would necessarily expand
The statersquos water supplies are at all times low underground water supplies are rapidly diminishing and
demand for water continues to grow Solutions to solve our water supply needs will involve many
different solutions from efficiency programs to lower demand a price signal and a search for new water
sources and importing water and desalinization plants
LOS ANGELES DWP
Since 1990 LA Department of Water and Power has
spent about $280 million on conservation programs
METROPOLITAN WATER DISTRICT
Metropolitan provides rebates on water efficient
fixtures financial assistance for water reduction
projects and incentives programs
MAYORrsquoS DIRECTIVE TO CUT WATER USE
(LA Times article) LA Mayor Eric Garcetti signed an
executive directive to further cut potable water use
20X2020 WATER CONSERVATION PLAN
Statewide plan enacted in 2010 to reduce water
consumption by 20 by 2020
SENATE BILL SB X7-7 2009
This Senate bill requires all water suppliers to increase
water efficiency
WATERSENSE
A recognized seal of approval for water efficiency
similar to ENERGY STAR
DOE WATER EFFICIENCY BMPS
Water Efficiency Best Management Practices from the
US Department of Energy
CONCLUSION RESOURCES
W A T E R E F F I C I E N C Y
E N E R G Y E F F I C I E N C Y
RENEWABLE
HYDRO GEOTHERMAL
WIND SOLAR
BIO-DIESEL BIO-MASS
EFFICIENCY
CO-GENERATION
EFFICIENT APPLIANCES EFFICIENT LIGHTING
EFFICIENT VEHICLES EFFICIENT BUILDINGS
INTELLIGENT POWER NETWORKS DECENTRALIZED GRIDS
CONSERVATION
GREY WATER RECYCLING ALTERNATIVE TRANSPORTATION
ENERGY EFFICIENCY RETROFIT STRATEGY
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 4
Many retrofits occur on a piecemeal basis as incentives become available or contractors provide upgrade
recommendations However many buildings especially those that are considering aesthetic or structural
improvements may benefit from a more comprehensive deep energy retrofit
The key components of a deep retrofit process are ongoing energy management assembling an
interdisciplinary team robust analysis and measurement and verification This process is not linear
phases may overlap or go on concurrently and will vary based on factors such as ownership structure
scale of building project delivery method and building complexity
While net zero was once considered a faraway goal for only the most technologically advanced buildings
the National Renewable Energy Laboratory found that there is now the technical potential for over 47
percent of existing US commercial building floor space to achieve net zero energy using existing
technologies and design processes
Net zero may seem unachievable but it can be done using the same principles as effective deep retrofits The
process starts with a solid understanding of baseline operations and expenditures and benefits from
extensive modeling and cost-benefit analysis to optimize systems choice for highest return on investment
There is considerable guidance within the market on how to retrofit buildings with sustainable
technologies to improve their environmental performance A significant barrier however to carrying out
sustainable retrofits is financing A number of financing mechanisms exist and each scenario is unique
Most building owners will choose to use
their own capital when available to avoid
time-intensive administration activities
Other traditional financing options
include loans and bond programs as well
as increases to operating fees or capital leases Building owners and managers can also take advantage of
funding improvements through bill savings (as with performance contracting with Energy Service
Contractors or ESCOrsquos) PACE bonds energy service agreements on-bill financing incentives and rebates
As utility rates continue to rise the incentive to implement energy efficiency projects has gone from cost
savings to cost avoidance This challenge is coupled with how to finance retrofit projects and what to do
once incentivized equipment has been installed
RETROFIT STRATEGY
E N E R G Y E F F I C I E N C Y
21+ Utilities represent an average of 21 of
total building expenses
ndash2012 BOMA Exchange Report
ENERGY RETROFIT OPPORTUNITIES
Monitor meter and commission main
building systems
Maximize heating and cooling efficiencies
and install variable frequency drives on
equipment
Lighting upgrades and controls (efficient
lights daylight harvesting motion sensors
etc)
Install a building automation system
invest in DDC wireless controls energy
optimization software and demand
response infrastructure
Retrofit main building systems chillers
cooling towers boilers fan motors
Building envelope Seal windows install
window films retrofit windows with
higher R-Value
Invest in on-site generation and
renewable Energy systems (fuel cell wind
geothermal and solar energy)
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
INDUSTRY UPDATES Industry experts from the Greater Los Angeles area kicked off
the 2014 Think Tank Roundtable with sector updates and information
about emerging trends in sustainability and real estate
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 9
Dominique Smith the Interim Executive Director of the USGBC-LA Chapter discussed two programs
the USGBC-LA chapter is currently spearheading and supporting including the Energy and Water
Ambassadors Program and the Green Janitor Education Program
The USGBC-LArsquos Energy and Water Ambassador Program connects Class B and C building owners and
managers with an ambassador to help them identify energy and water savings opportunities in their
buildings and the financing rebates and incentives required to move from analysis to investment
Through the program a USGBC-LA staff member meets onsite with the owner or management team to
identify building-specific energy and water conservation measures The ambassador identifies which
rebates and tax credits are available for the building advises on potential utility bill savings and assesses
LEED certification opportunities
The Green Janitor Education Program started as an idea to offer training in green cleaning safety
increasing energy efficiency and water conservation to janitors nationwide This program is currently
being piloted at seven buildings in Los Angeles and has already graduated 20 green janitors as of May
with the goal of 150 graduates by the end of summer
More information and resources available at
USGBC-LA
View Event Interview
TECHNICAL SUPPORT FROM USGBC-LA
As ambassadors we meet with building owners of all types siz-es and markets to identify ways they can run their operations in a more cost-effective way be sus-tainable and also save money
- Dominique Smith
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 0
Hilary Firestone Senior Energy Efficiency Project Manager for the City of Los Angeles provided an update
from the Mayorrsquos Office of Sustainability a new office which was created in 2013 to facilitate cross-agency
collaboration on sustainability issues
The Cityrsquos first Sustainability Plan looks at the work thatrsquos already been done to reduce emissions and also
examines strategies for further mitigation and adaptation The Plan described as ldquothe 20 of sustainability
plansrdquo looks at the traditional areas of transportation air water greenhouse gases as well as provides new
and innovative strategies A key theme in the report is collaboration with an emphasis on the importance of all
sectors working together to cut emissions
Buildings and transportation are the primary sources of carbon emissions in Los Angeles with 51 coming
from buildings alone In 2013 Los Angeles had the most ENERGY STARreg certified buildings in the country but
the majority of the Cityrsquos building stock has a significant opportunity to improve energy and water efficiency
ldquoIt is going to bethe building ownerrsquos responsibility to install EV chargers on their properties and the
responsibility of the City to facilitate improvements to public transportationrdquo said Firestone providing an
example of how the public and private sectors will need to work together to achieve the cityrsquos aggressive
emissions reductions targetrdquo
Another example of public and private partnership comes in the form of incentive programs The Los Angeles
Department of Water and Energy allocated $50 million to energy efficiency for the 2012-2013 fiscal year and
$101 million for 2013-2014 In addition to utility and nonprofit programs the city is working to help building
owners and managers overcome the challenges and barriers that have prevented them from investing in
energy and water retrofits in the past
One of the main barriers to catalyzing investment in energy efficiency is a lack of information about energy use
in buildings ldquoOne of the efforts wersquore working on at the state level is making it easy for building owners to get
access to their own energy datardquo said Firestone ldquoWe are trying to make that information easier for building
owners to access and understand so everyone is held accountable and responsible for their energy
consumption ndash not just the owners but the tenants that are occupying the building Everyone has a stake in
terms of trying to reduce our energy userdquo
More information and resources available at
httpenvironmentlaorg
wwwcityenergyprojectorg
CLIMATE LEADERSHIP THROUGH COLLABORATION
The City will lead by example with our own buildings We are going to start with benchmarking our energy and water use and making that information transparent
ndash Hilary Firestone
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 1
William Lowery President of Tālō Management Group and BOMA Sustainability Chair shared
information on BOMArsquos sustainability initiatives and resources for members
The Building Owners and Managers Association (BOMA) Sustainability Committee of Greater Los
Angeles holds monthly discussions on issues that affect existing buildings high rises and Class A B and C
buildings Recent topics include water conservation Title 24 cosmpliance water and energy to retrofits
and emerging technology The Sustainability Committee also seeks to address challenges faced by BOMA
members in the Greater Los Angeles area
With the passing of Assembly Bill 1103 which went into effect in January BOMA LA hosted webinars and
hands-on trainings in West and downtown Los Angeles to help building owners and manager comply with
the new regulation
In August the organization held their fourth annual Great Los Angeles Sustainability Seminar which
covered the value of green building improvements and operations and third-party certifications such as
LEED ENERGY STAR and BOMA 360
More information and resources available at
wwwbomaglaorg
View Event Interview
RESOURCES FOR BUILDING OWNERS amp MANAGERS
We partner with organizations like the USGBC and the LA BBC make sure we are spreading the information collected and needed and provide that information to building owners and managers to effectively assist in making change
ndash William Lowery
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 2
Ben Stapleton Director of Commercial Property at LA Better Buildings Challenge (LABBC) told
attendees how Los Angeles is working to reduce energy and water use 20 by 2020 as part of the
National Better Buildings Competition
LABBC is a utility-funded local initiative that is part of the US Department of Energyrsquos Better Buildings
Challenge LABBC surpassed its goal of enrolling 30 million square feet of building space and now has 36
million square feet of building space where owners and managers have committed to reduce energy use
20 by 2020 LA BBC offers no-cost services and subsidies such as energy tracking and analysis audits
project development support and recognition
This year LABBC began offering two new services to help building owners and managers achieve deeper
energy savings LA BBC partnered with contractors to offer challenge participants reduced pricing on
standard efficiency upgrades
ldquoContractors enrolling in this program agree to adhere to a certain set of principles provide their
qualifications and agree to provide standard deliverablesrdquo explained Stapleton ldquoIt is really accelerating
the process for buildings in our program in terms of retrofitting their assetsrdquo
The Tenant Engagement Program (TEP) helps landlords property managers and tenants overcome split-
incentives to help owners recover capital costs and tenants benefit from energy savings The LABBC also
helps participants identify financing such as PACE bonds to fund building performance upgrades
More information and resources available at
wwwla-bbccom
FREE ENERGY AUDITS amp REBATE INFORMATION
We need to focus on how to create value for building owners For LA BBC our goal is to make energy efficiency cheaper easier and faster
ndash Ben Stapleton
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 3
Robert Estrada a water conservation specialist with the Los Angeles Department of Water and Power
(LADWP) encouraged attendees to take advantage of water and energy-savings incentive programs
Estrada began his presentation with a reminder of the dire drought conditions that LA is facing ldquoHere in
Southern California we built water storage for these times Metropolitan Water serves 26 retail water
agencies and the city of LA is their largest customer With approximately 24 million acre feet of water in
emergency storage they are going to draw down 1 million acre feet this year We are really crossing our
fingers for El Nino because we need itrdquo
Per capita water use is at 133 gallons per person per day in Los Angeles LADWP offers incentive
programs to reduce water usage such as turf removal for commercial properties starting at two dollars a
square foot for up to 5000 square feet They also have a Technical Assistance Program with incentives
for water-efficient building upgrades and operations
LADWP also offers a Savings By Design program in partnership with SoCalGas through the Energy
Efficiency Technical Assistance Program (EETAP) ldquoThis program allows customers to get a comprehensive
assessment of their building to identify energy water and gas savings We pay for incentives as they
implement efficiency measuresrdquo In addition to their standard lighting retrofit program LADWP offers a
Custom Performance Program that offers incentives for upgrades following an energy audit Incentives can
now also be used for permitting project management or design fees in addition to efficient technologies
Through the EETAP program auditing services can also be covered through incentives
More information and resources available at
wwwladwpcom
View Event Interview
INCENTIVES FOR EFFICIENCY
For commercial buildings if you have a cooling tower it can use up to half of the buildingrsquos water By going from 25 to 55 [cycles] thatrsquos an overall 30 water savings
ndash Robert Estrada
I N D U S T R Y U P D A T E S
CLIMATE CHANGE RESILIENCE AND ADAPTATION
38 Experiencing
Impacts Now
17 Within
5 Years
7 Beyond
10 Years
31 Donrsquot Know
No Information
7 Within
10 Years
Most Companies
Experience
or Expect
Climate Impacts
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 5
RESILIENCE amp ADAPTATION
In 2013 and 2014 the conversation in the market transitioned from one of potential impacts of climate
change to the realities of adaptation and resilience The EPA released a Climate Adaptation Plan in Febru-
ary 2013 Grosvenor released a Resilient Cities Research Report and the Urban Land Institute launched
an Urban Resilience program and hosted their first annual Building the Resilient City conference
This shift in focus to resilience in the face of adversity comes after two decades of progressively intense
extreme weather events and higher mean temperatures In order to effectively support business opera-
tions our buildings need to be ready to bounce back from disaster with minimum damage and downtime
in addition to absorbing overall increases in temperature
This April the Grosvenor real estate company released a report detailing the findings of their analysis of
the resilience of 50 international cities They defined resilience as a cityrsquos ability to ldquopreserve capital val-
ues and generate sustainable rental income in the long term absorb shocks like natural disasterrdquo and
ldquomaintain their output of goods and services and continue to provide their inhabitants with a good quality
of life according to the standards of the timerdquo
Using this methodology Los Angeles was ranked 21 out of the 50 evaluated cities Although LA earned a
high score for adaptability other factors like rising sea levels earthquakes limited access to potable wa-
ter and socioeconomic stressors increase its vulnerability
Governments arenrsquot the only entity working on resiliency plans Insurance companies are evaluating their
exposure to risk and forward-thinking building owners are drafting climate adaptation plans to catalog
and prevent predictable system failures in addition to developing emergency preparedness and disaster
plans Such plans address the incremental changes in availability of water increasing temperature and
other environmental and social pressures arising from climate change
Roundtable attendees were most focused on how buildings can contribute to grid reliability through load
shifting on-site power generation demand response programs seismic retrofits and voluntary resilience
ratings to lead the market
Resilience increases when cities have more adaptive capacity and decreases when they are more vulnerable
- Resilient Cities Research Report
C L I M A T E C H A N G E
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 6
WATER ENERGY amp ENVIRONMENT MANAGING CLIMATE RISKS
WATER RESILIENCE
The current extreme drought conditions in California have exposed vulnerabilities in the statersquos
water storage and delivery systems Outdated infrastructure inability to increase water rates overpump-
ing and salination of groundwater sources conflicting municipal and community policies and limited ac-
cess to alternative water sources contribute to increasing water stress While Los Angeles has maintained
level water use per capita since the 70rsquos a result of successful metering programs population growth has
pushed water supplies to the limit
ENERGY RESILIENCE
Reducing overall energy usage especially in existing buildings three years or older is the first and
best line of defense in grid reliability Because peak usage times are those times when the grid experienc-
es the most demand up to 40 of a buildingrsquos energy costs comes from peak load energy charges De-
mand response energy storage and on-site generation can effectively reduce costs associated with the
purchase of grid-source peak energy
Demand response programs commonly referred to as Flex Alerts in California have increased in availa-
bility and participation across residential and commercial sectors throughout the state As one participant
put it ldquodemand response is becoming a part of LADWPrsquos DNArdquo Industry experts predict that demand
response programs will become mandatory within the next 10-15 years if not sooner and recommend
that building owners consider capturing the benefits of voluntary participation while it is available
On-site generation using fuel cells to reduce peak grid-source energy use was foremost on participantsrsquo
minds They cited lack of space as the primary reason more on-site generation has not been adopted
Consensus in the group was that renewable energy options generally do not provide an attractive return
on investment even with incentives to justify the allocation of space required to generate meaningful
quantities of energy
Energy storage using battery systems has been developing rapidly and at least one forum attendee ex-
pects to see uptake of market-ready solutions within the next year Incentives are available for up to 3
of the up-front costs of these systems Batteries allow building owners to store energy during off-peak
hours at lower energy rates for use during peak hours
C L I M A T E C H A N G E
BUILD AWARENESS
Educate building managers ten-
ants and employees at all levels
about the need to build the adap-
tive capacity to manage risks in
the long term
ASSESS VULNERABILITIES
Determine the threat climate dis-
ruption poses to core building
operations supplies building and
tenant work force customers and
key services
MANAGE RISKS AND
PURSUE OPPORTUNITIES
Fortify or relocate infrastructure
plan for changes in water and en-
ergy availability or review supply
chain vulnerabilities
REVIEW RISK ASSESSMENTS
AND MAKE PLANS
Continuously review risks and
opportunities regularly using
centralized assessment tools and
develop adaptive risk manage-
ment plans
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 7
C L I M A T E C H A N G E
ENVIRONMENTAL RESILIENCE
While frequency of earthquakes is not directly linked to climate change response to earth-
quakes is certainly a factor in building resilience and an area of vulnerability in Los Angeles The most im-
portant component of building resilience in Los Angeles is the choice of structural materials Steel frame
buildings are considerably more adaptable and thereby more resilient than their concrete-framed coun-
terparts
A seismic-readiness survey of the city of Los Angeles conducted by a team of UC Berkeley researchers
revealed that a number of buildings require retrofits to meet seismic standards These buildings are pri-
marily smaller concrete structures prompting attendees to note that the least resilient buildings are fre-
quently controlled by building owners with the fewest resources both capital and staff to manage re-
quired upgrades Add the fear of triggering potentially costly Title 24 energy upgrades and compliance
with seismic standards becomes nearly impossible
One attendee suggested that seismic upgrades be linked to energy efficiency upgrades creating an op-
portunity for a deep retrofit that raises the overall value and stature of the property The challenge is en-
couraging these owners of concrete building who are frequently hesitant to incorporate major capital
improvements to comply The perception of complexity is already a significant obstacle to adoption of a
number of incentive and financing opportunities
Infographics on page 14 and 16 source ldquoWeathering the Storm Building Business Resilience to Climate Changerdquo Center for Cli-
mate and Energy Solutions Munich Re National Oceanic and Atmospheric Aon Benfield Lloydrsquos of London
Policy and regulations will con-tinue to drive local governments and the building industry to address climate change risks infrastructure needs and increased resource needs for water energy and demographic shifts Proactive owners need to stay in front of these risks and get ready to recover from natural disasters with minimum damage and downtime
- Daniele Horton Founder amp Principal
Verdani Partners
WATER EFFICIENCY SECTION DIVIDER SIDEBAR HEADER GOES HERE WATER EFFICIENCY
19
00
19
40
20
10
20
15
20
50
Colorado River
Annual Average
River Flow
NO AND LOW COST MEASURES
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 9
Drought in California and water conservation is the new norm ndash Robert Estrada Los Angeles Department of Water and Power
Source US Drought Monitor (httpdroughtmonitorunledu)
The current extreme drought in California has exposed vulnerabilities in the statersquos water storage and
delivery systems Outdated infrastructure over pumping of ground water supplies pollution of ground
water supplies by fracking and other activities conflicting municipal and community policies climate
change increased demand and limited access to alternative water sources contribute to increasing water
stress While Los Angeles has maintained level water use per capita for the past forty years a result of
successful metering programs population growth has pushed water supplies to the limit Climate change
has also greatly affected the snow pack water supplies and the underground water reserves are been
tapped at an unprecedented rate The state is facing one of its worst droughts in history and a massive
effort will be needed to find solutions to meet its water demand needs
In response to current conditions Los Angeles Mayor Eric Garcetti signed an Executive Directive on
October 14 2014 to reduce potable water use 20 by 2017 This includes removing turf landscaping at
city buildings and replacing it with native and drought-resistant plants The directive also mandates the
CURRENT CONDITIONS
LOS ANGELES WATER SUPPLY
1 Recycled
Water
11 Groundwater
37 LA Aqueduct
51 Purchased from
Metropolitan
Water District
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 0
Los Angeles Department of Water and Power (LADWP) to reduce water imports 50 by 2024
It was also discussed that the cost of water is still quite low which makes the business case for making
water efficiency upgrades more challenging Some of the attendees mentioned that a price signal would
be critical to incentivize additional water efficiency upgrades and lower water usage The LADWP rep
explained that because they are a public entity that they cannot charge for the water They can only
charge to transport the water and any rate increases need to be approved by the voters which makes the
process for increasing the fees for water very challenging
A best practice for conservation and one that has helped Los Angeles maintain the lowest consumption
for any city with a population over 1 million is metering
LADWP launched their conservation program in the late 1970s Today the LADWP provides extensive
incentive programs for water use reduction efforts including prescriptive or menu-based programs and
more flexible technical assistance programs While more involved the technical assistance programs
cover a larger variety of costs associated with pre-approved water conservation measures including
consulting fees Recently utilization of technical assistance programs has surpassed the traditional menu-
based programs although many building
owners interviewed were still unaware of
the technical assistance program
While improving the efficiency of indoor
water fixtures has been a popular and well-publicized program historically utilities have identified cooling
towers and outdoor water use as 70+ of annual building water consumption making them the target of
renewed water conservation efforts including access to reclaimed water widespread adoption of rain
sensors reverse osmosis systems and microfiltration systems
70+ of annual building water consumption -
cooling towers and outdoor water use
WATER RETROFIT OPPORTUNITIES
Install metering devices and controls
Perform ongoing distribution system
audits leak detection and repair
Install native and drought resistant
landscape
Maximize indoor plumbing fixture and
fitting efficiency (toilets urinals faucets
aerators and showerheads)
Implement a cooling tower chemical
management and water efficiency
program
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 1
WATER USAGE PER CAPITA
133 GALLONSDAYPERSON
Daily water use (LADWP) all customers Second
lowest in the nation for cities over 1 million
people NY beats LA
Source California Department of Water Resources
LADWP provides extensive prescriptive and menu-based programs as well as more flexible technical
assistance programs to incentivize water use reductions The technical assistance programs require more
upfront involvement from property managers but also cover a larger variety of costs associated with pre-
approved water conservation measures including consulting fees In recent years technical assistance
programs have increased in popularity and have surpassed the traditional menu-based programs These
ratepayer-funded programs are offered at no additional cost to residential and commercial customers By
the end of 2014 LADWP will have invested$60 million dollars in water conservation incentive programs
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 2
As water efficiency regulations become more stringent and water rates continue to rise property owners
and operators can reap immediate benefits from low-cost measures such as the installation of aerators
and quickly recoup investments in upgrading indoor water fixtures
Building managers can reduce water use by installing low-flow or ultra low-flow fixtures fittings and
equipment such as toilets and urinals that exceed current code requirements per recommendations below
Water closets max 16 gallonsflush
Urinals max 0125 to 05 gallonflush
Shower heads max 18 gallonsminute
Faucets max 10 gallonsminute
Replacement aerators max 05 gallonsminute
Metering faucets max 025 gallonscycle
To help meet the Cityrsquos aggressive water conservation goals building owners will be encouraged to move
beyond upgrades to efficient indoor water fixtures for deeper savings Cooling towers and outdoor water
use account for an average of 70 of building water consumption making them the target of increased
water conservation efforts
Reclaimed water is currently restricted to limited areas There are plans to further develop water
reclamation projects for Los Angeles however its use is limited by state health requirements and the
high cost of pumping plants and distribution facilities to deliver water from the reclamation plants to the
customers Robert Estrada of LADWP reports that the cost is an estimated million dollars per mile of
purple pipe However if Assembly Bill 2282 passes all new residential and commercial construction with
access to reclaimed water will be required to incorporate it into approved uses such as landscaping and
reclaimed water infrastructure would necessarily expand
The statersquos water supplies are at all times low underground water supplies are rapidly diminishing and
demand for water continues to grow Solutions to solve our water supply needs will involve many
different solutions from efficiency programs to lower demand a price signal and a search for new water
sources and importing water and desalinization plants
LOS ANGELES DWP
Since 1990 LA Department of Water and Power has
spent about $280 million on conservation programs
METROPOLITAN WATER DISTRICT
Metropolitan provides rebates on water efficient
fixtures financial assistance for water reduction
projects and incentives programs
MAYORrsquoS DIRECTIVE TO CUT WATER USE
(LA Times article) LA Mayor Eric Garcetti signed an
executive directive to further cut potable water use
20X2020 WATER CONSERVATION PLAN
Statewide plan enacted in 2010 to reduce water
consumption by 20 by 2020
SENATE BILL SB X7-7 2009
This Senate bill requires all water suppliers to increase
water efficiency
WATERSENSE
A recognized seal of approval for water efficiency
similar to ENERGY STAR
DOE WATER EFFICIENCY BMPS
Water Efficiency Best Management Practices from the
US Department of Energy
CONCLUSION RESOURCES
W A T E R E F F I C I E N C Y
E N E R G Y E F F I C I E N C Y
RENEWABLE
HYDRO GEOTHERMAL
WIND SOLAR
BIO-DIESEL BIO-MASS
EFFICIENCY
CO-GENERATION
EFFICIENT APPLIANCES EFFICIENT LIGHTING
EFFICIENT VEHICLES EFFICIENT BUILDINGS
INTELLIGENT POWER NETWORKS DECENTRALIZED GRIDS
CONSERVATION
GREY WATER RECYCLING ALTERNATIVE TRANSPORTATION
ENERGY EFFICIENCY RETROFIT STRATEGY
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 4
Many retrofits occur on a piecemeal basis as incentives become available or contractors provide upgrade
recommendations However many buildings especially those that are considering aesthetic or structural
improvements may benefit from a more comprehensive deep energy retrofit
The key components of a deep retrofit process are ongoing energy management assembling an
interdisciplinary team robust analysis and measurement and verification This process is not linear
phases may overlap or go on concurrently and will vary based on factors such as ownership structure
scale of building project delivery method and building complexity
While net zero was once considered a faraway goal for only the most technologically advanced buildings
the National Renewable Energy Laboratory found that there is now the technical potential for over 47
percent of existing US commercial building floor space to achieve net zero energy using existing
technologies and design processes
Net zero may seem unachievable but it can be done using the same principles as effective deep retrofits The
process starts with a solid understanding of baseline operations and expenditures and benefits from
extensive modeling and cost-benefit analysis to optimize systems choice for highest return on investment
There is considerable guidance within the market on how to retrofit buildings with sustainable
technologies to improve their environmental performance A significant barrier however to carrying out
sustainable retrofits is financing A number of financing mechanisms exist and each scenario is unique
Most building owners will choose to use
their own capital when available to avoid
time-intensive administration activities
Other traditional financing options
include loans and bond programs as well
as increases to operating fees or capital leases Building owners and managers can also take advantage of
funding improvements through bill savings (as with performance contracting with Energy Service
Contractors or ESCOrsquos) PACE bonds energy service agreements on-bill financing incentives and rebates
As utility rates continue to rise the incentive to implement energy efficiency projects has gone from cost
savings to cost avoidance This challenge is coupled with how to finance retrofit projects and what to do
once incentivized equipment has been installed
RETROFIT STRATEGY
E N E R G Y E F F I C I E N C Y
21+ Utilities represent an average of 21 of
total building expenses
ndash2012 BOMA Exchange Report
ENERGY RETROFIT OPPORTUNITIES
Monitor meter and commission main
building systems
Maximize heating and cooling efficiencies
and install variable frequency drives on
equipment
Lighting upgrades and controls (efficient
lights daylight harvesting motion sensors
etc)
Install a building automation system
invest in DDC wireless controls energy
optimization software and demand
response infrastructure
Retrofit main building systems chillers
cooling towers boilers fan motors
Building envelope Seal windows install
window films retrofit windows with
higher R-Value
Invest in on-site generation and
renewable Energy systems (fuel cell wind
geothermal and solar energy)
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 9
Dominique Smith the Interim Executive Director of the USGBC-LA Chapter discussed two programs
the USGBC-LA chapter is currently spearheading and supporting including the Energy and Water
Ambassadors Program and the Green Janitor Education Program
The USGBC-LArsquos Energy and Water Ambassador Program connects Class B and C building owners and
managers with an ambassador to help them identify energy and water savings opportunities in their
buildings and the financing rebates and incentives required to move from analysis to investment
Through the program a USGBC-LA staff member meets onsite with the owner or management team to
identify building-specific energy and water conservation measures The ambassador identifies which
rebates and tax credits are available for the building advises on potential utility bill savings and assesses
LEED certification opportunities
The Green Janitor Education Program started as an idea to offer training in green cleaning safety
increasing energy efficiency and water conservation to janitors nationwide This program is currently
being piloted at seven buildings in Los Angeles and has already graduated 20 green janitors as of May
with the goal of 150 graduates by the end of summer
More information and resources available at
USGBC-LA
View Event Interview
TECHNICAL SUPPORT FROM USGBC-LA
As ambassadors we meet with building owners of all types siz-es and markets to identify ways they can run their operations in a more cost-effective way be sus-tainable and also save money
- Dominique Smith
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 0
Hilary Firestone Senior Energy Efficiency Project Manager for the City of Los Angeles provided an update
from the Mayorrsquos Office of Sustainability a new office which was created in 2013 to facilitate cross-agency
collaboration on sustainability issues
The Cityrsquos first Sustainability Plan looks at the work thatrsquos already been done to reduce emissions and also
examines strategies for further mitigation and adaptation The Plan described as ldquothe 20 of sustainability
plansrdquo looks at the traditional areas of transportation air water greenhouse gases as well as provides new
and innovative strategies A key theme in the report is collaboration with an emphasis on the importance of all
sectors working together to cut emissions
Buildings and transportation are the primary sources of carbon emissions in Los Angeles with 51 coming
from buildings alone In 2013 Los Angeles had the most ENERGY STARreg certified buildings in the country but
the majority of the Cityrsquos building stock has a significant opportunity to improve energy and water efficiency
ldquoIt is going to bethe building ownerrsquos responsibility to install EV chargers on their properties and the
responsibility of the City to facilitate improvements to public transportationrdquo said Firestone providing an
example of how the public and private sectors will need to work together to achieve the cityrsquos aggressive
emissions reductions targetrdquo
Another example of public and private partnership comes in the form of incentive programs The Los Angeles
Department of Water and Energy allocated $50 million to energy efficiency for the 2012-2013 fiscal year and
$101 million for 2013-2014 In addition to utility and nonprofit programs the city is working to help building
owners and managers overcome the challenges and barriers that have prevented them from investing in
energy and water retrofits in the past
One of the main barriers to catalyzing investment in energy efficiency is a lack of information about energy use
in buildings ldquoOne of the efforts wersquore working on at the state level is making it easy for building owners to get
access to their own energy datardquo said Firestone ldquoWe are trying to make that information easier for building
owners to access and understand so everyone is held accountable and responsible for their energy
consumption ndash not just the owners but the tenants that are occupying the building Everyone has a stake in
terms of trying to reduce our energy userdquo
More information and resources available at
httpenvironmentlaorg
wwwcityenergyprojectorg
CLIMATE LEADERSHIP THROUGH COLLABORATION
The City will lead by example with our own buildings We are going to start with benchmarking our energy and water use and making that information transparent
ndash Hilary Firestone
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 1
William Lowery President of Tālō Management Group and BOMA Sustainability Chair shared
information on BOMArsquos sustainability initiatives and resources for members
The Building Owners and Managers Association (BOMA) Sustainability Committee of Greater Los
Angeles holds monthly discussions on issues that affect existing buildings high rises and Class A B and C
buildings Recent topics include water conservation Title 24 cosmpliance water and energy to retrofits
and emerging technology The Sustainability Committee also seeks to address challenges faced by BOMA
members in the Greater Los Angeles area
With the passing of Assembly Bill 1103 which went into effect in January BOMA LA hosted webinars and
hands-on trainings in West and downtown Los Angeles to help building owners and manager comply with
the new regulation
In August the organization held their fourth annual Great Los Angeles Sustainability Seminar which
covered the value of green building improvements and operations and third-party certifications such as
LEED ENERGY STAR and BOMA 360
More information and resources available at
wwwbomaglaorg
View Event Interview
RESOURCES FOR BUILDING OWNERS amp MANAGERS
We partner with organizations like the USGBC and the LA BBC make sure we are spreading the information collected and needed and provide that information to building owners and managers to effectively assist in making change
ndash William Lowery
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 2
Ben Stapleton Director of Commercial Property at LA Better Buildings Challenge (LABBC) told
attendees how Los Angeles is working to reduce energy and water use 20 by 2020 as part of the
National Better Buildings Competition
LABBC is a utility-funded local initiative that is part of the US Department of Energyrsquos Better Buildings
Challenge LABBC surpassed its goal of enrolling 30 million square feet of building space and now has 36
million square feet of building space where owners and managers have committed to reduce energy use
20 by 2020 LA BBC offers no-cost services and subsidies such as energy tracking and analysis audits
project development support and recognition
This year LABBC began offering two new services to help building owners and managers achieve deeper
energy savings LA BBC partnered with contractors to offer challenge participants reduced pricing on
standard efficiency upgrades
ldquoContractors enrolling in this program agree to adhere to a certain set of principles provide their
qualifications and agree to provide standard deliverablesrdquo explained Stapleton ldquoIt is really accelerating
the process for buildings in our program in terms of retrofitting their assetsrdquo
The Tenant Engagement Program (TEP) helps landlords property managers and tenants overcome split-
incentives to help owners recover capital costs and tenants benefit from energy savings The LABBC also
helps participants identify financing such as PACE bonds to fund building performance upgrades
More information and resources available at
wwwla-bbccom
FREE ENERGY AUDITS amp REBATE INFORMATION
We need to focus on how to create value for building owners For LA BBC our goal is to make energy efficiency cheaper easier and faster
ndash Ben Stapleton
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 3
Robert Estrada a water conservation specialist with the Los Angeles Department of Water and Power
(LADWP) encouraged attendees to take advantage of water and energy-savings incentive programs
Estrada began his presentation with a reminder of the dire drought conditions that LA is facing ldquoHere in
Southern California we built water storage for these times Metropolitan Water serves 26 retail water
agencies and the city of LA is their largest customer With approximately 24 million acre feet of water in
emergency storage they are going to draw down 1 million acre feet this year We are really crossing our
fingers for El Nino because we need itrdquo
Per capita water use is at 133 gallons per person per day in Los Angeles LADWP offers incentive
programs to reduce water usage such as turf removal for commercial properties starting at two dollars a
square foot for up to 5000 square feet They also have a Technical Assistance Program with incentives
for water-efficient building upgrades and operations
LADWP also offers a Savings By Design program in partnership with SoCalGas through the Energy
Efficiency Technical Assistance Program (EETAP) ldquoThis program allows customers to get a comprehensive
assessment of their building to identify energy water and gas savings We pay for incentives as they
implement efficiency measuresrdquo In addition to their standard lighting retrofit program LADWP offers a
Custom Performance Program that offers incentives for upgrades following an energy audit Incentives can
now also be used for permitting project management or design fees in addition to efficient technologies
Through the EETAP program auditing services can also be covered through incentives
More information and resources available at
wwwladwpcom
View Event Interview
INCENTIVES FOR EFFICIENCY
For commercial buildings if you have a cooling tower it can use up to half of the buildingrsquos water By going from 25 to 55 [cycles] thatrsquos an overall 30 water savings
ndash Robert Estrada
I N D U S T R Y U P D A T E S
CLIMATE CHANGE RESILIENCE AND ADAPTATION
38 Experiencing
Impacts Now
17 Within
5 Years
7 Beyond
10 Years
31 Donrsquot Know
No Information
7 Within
10 Years
Most Companies
Experience
or Expect
Climate Impacts
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 5
RESILIENCE amp ADAPTATION
In 2013 and 2014 the conversation in the market transitioned from one of potential impacts of climate
change to the realities of adaptation and resilience The EPA released a Climate Adaptation Plan in Febru-
ary 2013 Grosvenor released a Resilient Cities Research Report and the Urban Land Institute launched
an Urban Resilience program and hosted their first annual Building the Resilient City conference
This shift in focus to resilience in the face of adversity comes after two decades of progressively intense
extreme weather events and higher mean temperatures In order to effectively support business opera-
tions our buildings need to be ready to bounce back from disaster with minimum damage and downtime
in addition to absorbing overall increases in temperature
This April the Grosvenor real estate company released a report detailing the findings of their analysis of
the resilience of 50 international cities They defined resilience as a cityrsquos ability to ldquopreserve capital val-
ues and generate sustainable rental income in the long term absorb shocks like natural disasterrdquo and
ldquomaintain their output of goods and services and continue to provide their inhabitants with a good quality
of life according to the standards of the timerdquo
Using this methodology Los Angeles was ranked 21 out of the 50 evaluated cities Although LA earned a
high score for adaptability other factors like rising sea levels earthquakes limited access to potable wa-
ter and socioeconomic stressors increase its vulnerability
Governments arenrsquot the only entity working on resiliency plans Insurance companies are evaluating their
exposure to risk and forward-thinking building owners are drafting climate adaptation plans to catalog
and prevent predictable system failures in addition to developing emergency preparedness and disaster
plans Such plans address the incremental changes in availability of water increasing temperature and
other environmental and social pressures arising from climate change
Roundtable attendees were most focused on how buildings can contribute to grid reliability through load
shifting on-site power generation demand response programs seismic retrofits and voluntary resilience
ratings to lead the market
Resilience increases when cities have more adaptive capacity and decreases when they are more vulnerable
- Resilient Cities Research Report
C L I M A T E C H A N G E
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 6
WATER ENERGY amp ENVIRONMENT MANAGING CLIMATE RISKS
WATER RESILIENCE
The current extreme drought conditions in California have exposed vulnerabilities in the statersquos
water storage and delivery systems Outdated infrastructure inability to increase water rates overpump-
ing and salination of groundwater sources conflicting municipal and community policies and limited ac-
cess to alternative water sources contribute to increasing water stress While Los Angeles has maintained
level water use per capita since the 70rsquos a result of successful metering programs population growth has
pushed water supplies to the limit
ENERGY RESILIENCE
Reducing overall energy usage especially in existing buildings three years or older is the first and
best line of defense in grid reliability Because peak usage times are those times when the grid experienc-
es the most demand up to 40 of a buildingrsquos energy costs comes from peak load energy charges De-
mand response energy storage and on-site generation can effectively reduce costs associated with the
purchase of grid-source peak energy
Demand response programs commonly referred to as Flex Alerts in California have increased in availa-
bility and participation across residential and commercial sectors throughout the state As one participant
put it ldquodemand response is becoming a part of LADWPrsquos DNArdquo Industry experts predict that demand
response programs will become mandatory within the next 10-15 years if not sooner and recommend
that building owners consider capturing the benefits of voluntary participation while it is available
On-site generation using fuel cells to reduce peak grid-source energy use was foremost on participantsrsquo
minds They cited lack of space as the primary reason more on-site generation has not been adopted
Consensus in the group was that renewable energy options generally do not provide an attractive return
on investment even with incentives to justify the allocation of space required to generate meaningful
quantities of energy
Energy storage using battery systems has been developing rapidly and at least one forum attendee ex-
pects to see uptake of market-ready solutions within the next year Incentives are available for up to 3
of the up-front costs of these systems Batteries allow building owners to store energy during off-peak
hours at lower energy rates for use during peak hours
C L I M A T E C H A N G E
BUILD AWARENESS
Educate building managers ten-
ants and employees at all levels
about the need to build the adap-
tive capacity to manage risks in
the long term
ASSESS VULNERABILITIES
Determine the threat climate dis-
ruption poses to core building
operations supplies building and
tenant work force customers and
key services
MANAGE RISKS AND
PURSUE OPPORTUNITIES
Fortify or relocate infrastructure
plan for changes in water and en-
ergy availability or review supply
chain vulnerabilities
REVIEW RISK ASSESSMENTS
AND MAKE PLANS
Continuously review risks and
opportunities regularly using
centralized assessment tools and
develop adaptive risk manage-
ment plans
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 7
C L I M A T E C H A N G E
ENVIRONMENTAL RESILIENCE
While frequency of earthquakes is not directly linked to climate change response to earth-
quakes is certainly a factor in building resilience and an area of vulnerability in Los Angeles The most im-
portant component of building resilience in Los Angeles is the choice of structural materials Steel frame
buildings are considerably more adaptable and thereby more resilient than their concrete-framed coun-
terparts
A seismic-readiness survey of the city of Los Angeles conducted by a team of UC Berkeley researchers
revealed that a number of buildings require retrofits to meet seismic standards These buildings are pri-
marily smaller concrete structures prompting attendees to note that the least resilient buildings are fre-
quently controlled by building owners with the fewest resources both capital and staff to manage re-
quired upgrades Add the fear of triggering potentially costly Title 24 energy upgrades and compliance
with seismic standards becomes nearly impossible
One attendee suggested that seismic upgrades be linked to energy efficiency upgrades creating an op-
portunity for a deep retrofit that raises the overall value and stature of the property The challenge is en-
couraging these owners of concrete building who are frequently hesitant to incorporate major capital
improvements to comply The perception of complexity is already a significant obstacle to adoption of a
number of incentive and financing opportunities
Infographics on page 14 and 16 source ldquoWeathering the Storm Building Business Resilience to Climate Changerdquo Center for Cli-
mate and Energy Solutions Munich Re National Oceanic and Atmospheric Aon Benfield Lloydrsquos of London
Policy and regulations will con-tinue to drive local governments and the building industry to address climate change risks infrastructure needs and increased resource needs for water energy and demographic shifts Proactive owners need to stay in front of these risks and get ready to recover from natural disasters with minimum damage and downtime
- Daniele Horton Founder amp Principal
Verdani Partners
WATER EFFICIENCY SECTION DIVIDER SIDEBAR HEADER GOES HERE WATER EFFICIENCY
19
00
19
40
20
10
20
15
20
50
Colorado River
Annual Average
River Flow
NO AND LOW COST MEASURES
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 9
Drought in California and water conservation is the new norm ndash Robert Estrada Los Angeles Department of Water and Power
Source US Drought Monitor (httpdroughtmonitorunledu)
The current extreme drought in California has exposed vulnerabilities in the statersquos water storage and
delivery systems Outdated infrastructure over pumping of ground water supplies pollution of ground
water supplies by fracking and other activities conflicting municipal and community policies climate
change increased demand and limited access to alternative water sources contribute to increasing water
stress While Los Angeles has maintained level water use per capita for the past forty years a result of
successful metering programs population growth has pushed water supplies to the limit Climate change
has also greatly affected the snow pack water supplies and the underground water reserves are been
tapped at an unprecedented rate The state is facing one of its worst droughts in history and a massive
effort will be needed to find solutions to meet its water demand needs
In response to current conditions Los Angeles Mayor Eric Garcetti signed an Executive Directive on
October 14 2014 to reduce potable water use 20 by 2017 This includes removing turf landscaping at
city buildings and replacing it with native and drought-resistant plants The directive also mandates the
CURRENT CONDITIONS
LOS ANGELES WATER SUPPLY
1 Recycled
Water
11 Groundwater
37 LA Aqueduct
51 Purchased from
Metropolitan
Water District
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 0
Los Angeles Department of Water and Power (LADWP) to reduce water imports 50 by 2024
It was also discussed that the cost of water is still quite low which makes the business case for making
water efficiency upgrades more challenging Some of the attendees mentioned that a price signal would
be critical to incentivize additional water efficiency upgrades and lower water usage The LADWP rep
explained that because they are a public entity that they cannot charge for the water They can only
charge to transport the water and any rate increases need to be approved by the voters which makes the
process for increasing the fees for water very challenging
A best practice for conservation and one that has helped Los Angeles maintain the lowest consumption
for any city with a population over 1 million is metering
LADWP launched their conservation program in the late 1970s Today the LADWP provides extensive
incentive programs for water use reduction efforts including prescriptive or menu-based programs and
more flexible technical assistance programs While more involved the technical assistance programs
cover a larger variety of costs associated with pre-approved water conservation measures including
consulting fees Recently utilization of technical assistance programs has surpassed the traditional menu-
based programs although many building
owners interviewed were still unaware of
the technical assistance program
While improving the efficiency of indoor
water fixtures has been a popular and well-publicized program historically utilities have identified cooling
towers and outdoor water use as 70+ of annual building water consumption making them the target of
renewed water conservation efforts including access to reclaimed water widespread adoption of rain
sensors reverse osmosis systems and microfiltration systems
70+ of annual building water consumption -
cooling towers and outdoor water use
WATER RETROFIT OPPORTUNITIES
Install metering devices and controls
Perform ongoing distribution system
audits leak detection and repair
Install native and drought resistant
landscape
Maximize indoor plumbing fixture and
fitting efficiency (toilets urinals faucets
aerators and showerheads)
Implement a cooling tower chemical
management and water efficiency
program
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 1
WATER USAGE PER CAPITA
133 GALLONSDAYPERSON
Daily water use (LADWP) all customers Second
lowest in the nation for cities over 1 million
people NY beats LA
Source California Department of Water Resources
LADWP provides extensive prescriptive and menu-based programs as well as more flexible technical
assistance programs to incentivize water use reductions The technical assistance programs require more
upfront involvement from property managers but also cover a larger variety of costs associated with pre-
approved water conservation measures including consulting fees In recent years technical assistance
programs have increased in popularity and have surpassed the traditional menu-based programs These
ratepayer-funded programs are offered at no additional cost to residential and commercial customers By
the end of 2014 LADWP will have invested$60 million dollars in water conservation incentive programs
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 2
As water efficiency regulations become more stringent and water rates continue to rise property owners
and operators can reap immediate benefits from low-cost measures such as the installation of aerators
and quickly recoup investments in upgrading indoor water fixtures
Building managers can reduce water use by installing low-flow or ultra low-flow fixtures fittings and
equipment such as toilets and urinals that exceed current code requirements per recommendations below
Water closets max 16 gallonsflush
Urinals max 0125 to 05 gallonflush
Shower heads max 18 gallonsminute
Faucets max 10 gallonsminute
Replacement aerators max 05 gallonsminute
Metering faucets max 025 gallonscycle
To help meet the Cityrsquos aggressive water conservation goals building owners will be encouraged to move
beyond upgrades to efficient indoor water fixtures for deeper savings Cooling towers and outdoor water
use account for an average of 70 of building water consumption making them the target of increased
water conservation efforts
Reclaimed water is currently restricted to limited areas There are plans to further develop water
reclamation projects for Los Angeles however its use is limited by state health requirements and the
high cost of pumping plants and distribution facilities to deliver water from the reclamation plants to the
customers Robert Estrada of LADWP reports that the cost is an estimated million dollars per mile of
purple pipe However if Assembly Bill 2282 passes all new residential and commercial construction with
access to reclaimed water will be required to incorporate it into approved uses such as landscaping and
reclaimed water infrastructure would necessarily expand
The statersquos water supplies are at all times low underground water supplies are rapidly diminishing and
demand for water continues to grow Solutions to solve our water supply needs will involve many
different solutions from efficiency programs to lower demand a price signal and a search for new water
sources and importing water and desalinization plants
LOS ANGELES DWP
Since 1990 LA Department of Water and Power has
spent about $280 million on conservation programs
METROPOLITAN WATER DISTRICT
Metropolitan provides rebates on water efficient
fixtures financial assistance for water reduction
projects and incentives programs
MAYORrsquoS DIRECTIVE TO CUT WATER USE
(LA Times article) LA Mayor Eric Garcetti signed an
executive directive to further cut potable water use
20X2020 WATER CONSERVATION PLAN
Statewide plan enacted in 2010 to reduce water
consumption by 20 by 2020
SENATE BILL SB X7-7 2009
This Senate bill requires all water suppliers to increase
water efficiency
WATERSENSE
A recognized seal of approval for water efficiency
similar to ENERGY STAR
DOE WATER EFFICIENCY BMPS
Water Efficiency Best Management Practices from the
US Department of Energy
CONCLUSION RESOURCES
W A T E R E F F I C I E N C Y
E N E R G Y E F F I C I E N C Y
RENEWABLE
HYDRO GEOTHERMAL
WIND SOLAR
BIO-DIESEL BIO-MASS
EFFICIENCY
CO-GENERATION
EFFICIENT APPLIANCES EFFICIENT LIGHTING
EFFICIENT VEHICLES EFFICIENT BUILDINGS
INTELLIGENT POWER NETWORKS DECENTRALIZED GRIDS
CONSERVATION
GREY WATER RECYCLING ALTERNATIVE TRANSPORTATION
ENERGY EFFICIENCY RETROFIT STRATEGY
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 4
Many retrofits occur on a piecemeal basis as incentives become available or contractors provide upgrade
recommendations However many buildings especially those that are considering aesthetic or structural
improvements may benefit from a more comprehensive deep energy retrofit
The key components of a deep retrofit process are ongoing energy management assembling an
interdisciplinary team robust analysis and measurement and verification This process is not linear
phases may overlap or go on concurrently and will vary based on factors such as ownership structure
scale of building project delivery method and building complexity
While net zero was once considered a faraway goal for only the most technologically advanced buildings
the National Renewable Energy Laboratory found that there is now the technical potential for over 47
percent of existing US commercial building floor space to achieve net zero energy using existing
technologies and design processes
Net zero may seem unachievable but it can be done using the same principles as effective deep retrofits The
process starts with a solid understanding of baseline operations and expenditures and benefits from
extensive modeling and cost-benefit analysis to optimize systems choice for highest return on investment
There is considerable guidance within the market on how to retrofit buildings with sustainable
technologies to improve their environmental performance A significant barrier however to carrying out
sustainable retrofits is financing A number of financing mechanisms exist and each scenario is unique
Most building owners will choose to use
their own capital when available to avoid
time-intensive administration activities
Other traditional financing options
include loans and bond programs as well
as increases to operating fees or capital leases Building owners and managers can also take advantage of
funding improvements through bill savings (as with performance contracting with Energy Service
Contractors or ESCOrsquos) PACE bonds energy service agreements on-bill financing incentives and rebates
As utility rates continue to rise the incentive to implement energy efficiency projects has gone from cost
savings to cost avoidance This challenge is coupled with how to finance retrofit projects and what to do
once incentivized equipment has been installed
RETROFIT STRATEGY
E N E R G Y E F F I C I E N C Y
21+ Utilities represent an average of 21 of
total building expenses
ndash2012 BOMA Exchange Report
ENERGY RETROFIT OPPORTUNITIES
Monitor meter and commission main
building systems
Maximize heating and cooling efficiencies
and install variable frequency drives on
equipment
Lighting upgrades and controls (efficient
lights daylight harvesting motion sensors
etc)
Install a building automation system
invest in DDC wireless controls energy
optimization software and demand
response infrastructure
Retrofit main building systems chillers
cooling towers boilers fan motors
Building envelope Seal windows install
window films retrofit windows with
higher R-Value
Invest in on-site generation and
renewable Energy systems (fuel cell wind
geothermal and solar energy)
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 0
Hilary Firestone Senior Energy Efficiency Project Manager for the City of Los Angeles provided an update
from the Mayorrsquos Office of Sustainability a new office which was created in 2013 to facilitate cross-agency
collaboration on sustainability issues
The Cityrsquos first Sustainability Plan looks at the work thatrsquos already been done to reduce emissions and also
examines strategies for further mitigation and adaptation The Plan described as ldquothe 20 of sustainability
plansrdquo looks at the traditional areas of transportation air water greenhouse gases as well as provides new
and innovative strategies A key theme in the report is collaboration with an emphasis on the importance of all
sectors working together to cut emissions
Buildings and transportation are the primary sources of carbon emissions in Los Angeles with 51 coming
from buildings alone In 2013 Los Angeles had the most ENERGY STARreg certified buildings in the country but
the majority of the Cityrsquos building stock has a significant opportunity to improve energy and water efficiency
ldquoIt is going to bethe building ownerrsquos responsibility to install EV chargers on their properties and the
responsibility of the City to facilitate improvements to public transportationrdquo said Firestone providing an
example of how the public and private sectors will need to work together to achieve the cityrsquos aggressive
emissions reductions targetrdquo
Another example of public and private partnership comes in the form of incentive programs The Los Angeles
Department of Water and Energy allocated $50 million to energy efficiency for the 2012-2013 fiscal year and
$101 million for 2013-2014 In addition to utility and nonprofit programs the city is working to help building
owners and managers overcome the challenges and barriers that have prevented them from investing in
energy and water retrofits in the past
One of the main barriers to catalyzing investment in energy efficiency is a lack of information about energy use
in buildings ldquoOne of the efforts wersquore working on at the state level is making it easy for building owners to get
access to their own energy datardquo said Firestone ldquoWe are trying to make that information easier for building
owners to access and understand so everyone is held accountable and responsible for their energy
consumption ndash not just the owners but the tenants that are occupying the building Everyone has a stake in
terms of trying to reduce our energy userdquo
More information and resources available at
httpenvironmentlaorg
wwwcityenergyprojectorg
CLIMATE LEADERSHIP THROUGH COLLABORATION
The City will lead by example with our own buildings We are going to start with benchmarking our energy and water use and making that information transparent
ndash Hilary Firestone
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 1
William Lowery President of Tālō Management Group and BOMA Sustainability Chair shared
information on BOMArsquos sustainability initiatives and resources for members
The Building Owners and Managers Association (BOMA) Sustainability Committee of Greater Los
Angeles holds monthly discussions on issues that affect existing buildings high rises and Class A B and C
buildings Recent topics include water conservation Title 24 cosmpliance water and energy to retrofits
and emerging technology The Sustainability Committee also seeks to address challenges faced by BOMA
members in the Greater Los Angeles area
With the passing of Assembly Bill 1103 which went into effect in January BOMA LA hosted webinars and
hands-on trainings in West and downtown Los Angeles to help building owners and manager comply with
the new regulation
In August the organization held their fourth annual Great Los Angeles Sustainability Seminar which
covered the value of green building improvements and operations and third-party certifications such as
LEED ENERGY STAR and BOMA 360
More information and resources available at
wwwbomaglaorg
View Event Interview
RESOURCES FOR BUILDING OWNERS amp MANAGERS
We partner with organizations like the USGBC and the LA BBC make sure we are spreading the information collected and needed and provide that information to building owners and managers to effectively assist in making change
ndash William Lowery
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 2
Ben Stapleton Director of Commercial Property at LA Better Buildings Challenge (LABBC) told
attendees how Los Angeles is working to reduce energy and water use 20 by 2020 as part of the
National Better Buildings Competition
LABBC is a utility-funded local initiative that is part of the US Department of Energyrsquos Better Buildings
Challenge LABBC surpassed its goal of enrolling 30 million square feet of building space and now has 36
million square feet of building space where owners and managers have committed to reduce energy use
20 by 2020 LA BBC offers no-cost services and subsidies such as energy tracking and analysis audits
project development support and recognition
This year LABBC began offering two new services to help building owners and managers achieve deeper
energy savings LA BBC partnered with contractors to offer challenge participants reduced pricing on
standard efficiency upgrades
ldquoContractors enrolling in this program agree to adhere to a certain set of principles provide their
qualifications and agree to provide standard deliverablesrdquo explained Stapleton ldquoIt is really accelerating
the process for buildings in our program in terms of retrofitting their assetsrdquo
The Tenant Engagement Program (TEP) helps landlords property managers and tenants overcome split-
incentives to help owners recover capital costs and tenants benefit from energy savings The LABBC also
helps participants identify financing such as PACE bonds to fund building performance upgrades
More information and resources available at
wwwla-bbccom
FREE ENERGY AUDITS amp REBATE INFORMATION
We need to focus on how to create value for building owners For LA BBC our goal is to make energy efficiency cheaper easier and faster
ndash Ben Stapleton
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 3
Robert Estrada a water conservation specialist with the Los Angeles Department of Water and Power
(LADWP) encouraged attendees to take advantage of water and energy-savings incentive programs
Estrada began his presentation with a reminder of the dire drought conditions that LA is facing ldquoHere in
Southern California we built water storage for these times Metropolitan Water serves 26 retail water
agencies and the city of LA is their largest customer With approximately 24 million acre feet of water in
emergency storage they are going to draw down 1 million acre feet this year We are really crossing our
fingers for El Nino because we need itrdquo
Per capita water use is at 133 gallons per person per day in Los Angeles LADWP offers incentive
programs to reduce water usage such as turf removal for commercial properties starting at two dollars a
square foot for up to 5000 square feet They also have a Technical Assistance Program with incentives
for water-efficient building upgrades and operations
LADWP also offers a Savings By Design program in partnership with SoCalGas through the Energy
Efficiency Technical Assistance Program (EETAP) ldquoThis program allows customers to get a comprehensive
assessment of their building to identify energy water and gas savings We pay for incentives as they
implement efficiency measuresrdquo In addition to their standard lighting retrofit program LADWP offers a
Custom Performance Program that offers incentives for upgrades following an energy audit Incentives can
now also be used for permitting project management or design fees in addition to efficient technologies
Through the EETAP program auditing services can also be covered through incentives
More information and resources available at
wwwladwpcom
View Event Interview
INCENTIVES FOR EFFICIENCY
For commercial buildings if you have a cooling tower it can use up to half of the buildingrsquos water By going from 25 to 55 [cycles] thatrsquos an overall 30 water savings
ndash Robert Estrada
I N D U S T R Y U P D A T E S
CLIMATE CHANGE RESILIENCE AND ADAPTATION
38 Experiencing
Impacts Now
17 Within
5 Years
7 Beyond
10 Years
31 Donrsquot Know
No Information
7 Within
10 Years
Most Companies
Experience
or Expect
Climate Impacts
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 5
RESILIENCE amp ADAPTATION
In 2013 and 2014 the conversation in the market transitioned from one of potential impacts of climate
change to the realities of adaptation and resilience The EPA released a Climate Adaptation Plan in Febru-
ary 2013 Grosvenor released a Resilient Cities Research Report and the Urban Land Institute launched
an Urban Resilience program and hosted their first annual Building the Resilient City conference
This shift in focus to resilience in the face of adversity comes after two decades of progressively intense
extreme weather events and higher mean temperatures In order to effectively support business opera-
tions our buildings need to be ready to bounce back from disaster with minimum damage and downtime
in addition to absorbing overall increases in temperature
This April the Grosvenor real estate company released a report detailing the findings of their analysis of
the resilience of 50 international cities They defined resilience as a cityrsquos ability to ldquopreserve capital val-
ues and generate sustainable rental income in the long term absorb shocks like natural disasterrdquo and
ldquomaintain their output of goods and services and continue to provide their inhabitants with a good quality
of life according to the standards of the timerdquo
Using this methodology Los Angeles was ranked 21 out of the 50 evaluated cities Although LA earned a
high score for adaptability other factors like rising sea levels earthquakes limited access to potable wa-
ter and socioeconomic stressors increase its vulnerability
Governments arenrsquot the only entity working on resiliency plans Insurance companies are evaluating their
exposure to risk and forward-thinking building owners are drafting climate adaptation plans to catalog
and prevent predictable system failures in addition to developing emergency preparedness and disaster
plans Such plans address the incremental changes in availability of water increasing temperature and
other environmental and social pressures arising from climate change
Roundtable attendees were most focused on how buildings can contribute to grid reliability through load
shifting on-site power generation demand response programs seismic retrofits and voluntary resilience
ratings to lead the market
Resilience increases when cities have more adaptive capacity and decreases when they are more vulnerable
- Resilient Cities Research Report
C L I M A T E C H A N G E
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 6
WATER ENERGY amp ENVIRONMENT MANAGING CLIMATE RISKS
WATER RESILIENCE
The current extreme drought conditions in California have exposed vulnerabilities in the statersquos
water storage and delivery systems Outdated infrastructure inability to increase water rates overpump-
ing and salination of groundwater sources conflicting municipal and community policies and limited ac-
cess to alternative water sources contribute to increasing water stress While Los Angeles has maintained
level water use per capita since the 70rsquos a result of successful metering programs population growth has
pushed water supplies to the limit
ENERGY RESILIENCE
Reducing overall energy usage especially in existing buildings three years or older is the first and
best line of defense in grid reliability Because peak usage times are those times when the grid experienc-
es the most demand up to 40 of a buildingrsquos energy costs comes from peak load energy charges De-
mand response energy storage and on-site generation can effectively reduce costs associated with the
purchase of grid-source peak energy
Demand response programs commonly referred to as Flex Alerts in California have increased in availa-
bility and participation across residential and commercial sectors throughout the state As one participant
put it ldquodemand response is becoming a part of LADWPrsquos DNArdquo Industry experts predict that demand
response programs will become mandatory within the next 10-15 years if not sooner and recommend
that building owners consider capturing the benefits of voluntary participation while it is available
On-site generation using fuel cells to reduce peak grid-source energy use was foremost on participantsrsquo
minds They cited lack of space as the primary reason more on-site generation has not been adopted
Consensus in the group was that renewable energy options generally do not provide an attractive return
on investment even with incentives to justify the allocation of space required to generate meaningful
quantities of energy
Energy storage using battery systems has been developing rapidly and at least one forum attendee ex-
pects to see uptake of market-ready solutions within the next year Incentives are available for up to 3
of the up-front costs of these systems Batteries allow building owners to store energy during off-peak
hours at lower energy rates for use during peak hours
C L I M A T E C H A N G E
BUILD AWARENESS
Educate building managers ten-
ants and employees at all levels
about the need to build the adap-
tive capacity to manage risks in
the long term
ASSESS VULNERABILITIES
Determine the threat climate dis-
ruption poses to core building
operations supplies building and
tenant work force customers and
key services
MANAGE RISKS AND
PURSUE OPPORTUNITIES
Fortify or relocate infrastructure
plan for changes in water and en-
ergy availability or review supply
chain vulnerabilities
REVIEW RISK ASSESSMENTS
AND MAKE PLANS
Continuously review risks and
opportunities regularly using
centralized assessment tools and
develop adaptive risk manage-
ment plans
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 7
C L I M A T E C H A N G E
ENVIRONMENTAL RESILIENCE
While frequency of earthquakes is not directly linked to climate change response to earth-
quakes is certainly a factor in building resilience and an area of vulnerability in Los Angeles The most im-
portant component of building resilience in Los Angeles is the choice of structural materials Steel frame
buildings are considerably more adaptable and thereby more resilient than their concrete-framed coun-
terparts
A seismic-readiness survey of the city of Los Angeles conducted by a team of UC Berkeley researchers
revealed that a number of buildings require retrofits to meet seismic standards These buildings are pri-
marily smaller concrete structures prompting attendees to note that the least resilient buildings are fre-
quently controlled by building owners with the fewest resources both capital and staff to manage re-
quired upgrades Add the fear of triggering potentially costly Title 24 energy upgrades and compliance
with seismic standards becomes nearly impossible
One attendee suggested that seismic upgrades be linked to energy efficiency upgrades creating an op-
portunity for a deep retrofit that raises the overall value and stature of the property The challenge is en-
couraging these owners of concrete building who are frequently hesitant to incorporate major capital
improvements to comply The perception of complexity is already a significant obstacle to adoption of a
number of incentive and financing opportunities
Infographics on page 14 and 16 source ldquoWeathering the Storm Building Business Resilience to Climate Changerdquo Center for Cli-
mate and Energy Solutions Munich Re National Oceanic and Atmospheric Aon Benfield Lloydrsquos of London
Policy and regulations will con-tinue to drive local governments and the building industry to address climate change risks infrastructure needs and increased resource needs for water energy and demographic shifts Proactive owners need to stay in front of these risks and get ready to recover from natural disasters with minimum damage and downtime
- Daniele Horton Founder amp Principal
Verdani Partners
WATER EFFICIENCY SECTION DIVIDER SIDEBAR HEADER GOES HERE WATER EFFICIENCY
19
00
19
40
20
10
20
15
20
50
Colorado River
Annual Average
River Flow
NO AND LOW COST MEASURES
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 9
Drought in California and water conservation is the new norm ndash Robert Estrada Los Angeles Department of Water and Power
Source US Drought Monitor (httpdroughtmonitorunledu)
The current extreme drought in California has exposed vulnerabilities in the statersquos water storage and
delivery systems Outdated infrastructure over pumping of ground water supplies pollution of ground
water supplies by fracking and other activities conflicting municipal and community policies climate
change increased demand and limited access to alternative water sources contribute to increasing water
stress While Los Angeles has maintained level water use per capita for the past forty years a result of
successful metering programs population growth has pushed water supplies to the limit Climate change
has also greatly affected the snow pack water supplies and the underground water reserves are been
tapped at an unprecedented rate The state is facing one of its worst droughts in history and a massive
effort will be needed to find solutions to meet its water demand needs
In response to current conditions Los Angeles Mayor Eric Garcetti signed an Executive Directive on
October 14 2014 to reduce potable water use 20 by 2017 This includes removing turf landscaping at
city buildings and replacing it with native and drought-resistant plants The directive also mandates the
CURRENT CONDITIONS
LOS ANGELES WATER SUPPLY
1 Recycled
Water
11 Groundwater
37 LA Aqueduct
51 Purchased from
Metropolitan
Water District
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 0
Los Angeles Department of Water and Power (LADWP) to reduce water imports 50 by 2024
It was also discussed that the cost of water is still quite low which makes the business case for making
water efficiency upgrades more challenging Some of the attendees mentioned that a price signal would
be critical to incentivize additional water efficiency upgrades and lower water usage The LADWP rep
explained that because they are a public entity that they cannot charge for the water They can only
charge to transport the water and any rate increases need to be approved by the voters which makes the
process for increasing the fees for water very challenging
A best practice for conservation and one that has helped Los Angeles maintain the lowest consumption
for any city with a population over 1 million is metering
LADWP launched their conservation program in the late 1970s Today the LADWP provides extensive
incentive programs for water use reduction efforts including prescriptive or menu-based programs and
more flexible technical assistance programs While more involved the technical assistance programs
cover a larger variety of costs associated with pre-approved water conservation measures including
consulting fees Recently utilization of technical assistance programs has surpassed the traditional menu-
based programs although many building
owners interviewed were still unaware of
the technical assistance program
While improving the efficiency of indoor
water fixtures has been a popular and well-publicized program historically utilities have identified cooling
towers and outdoor water use as 70+ of annual building water consumption making them the target of
renewed water conservation efforts including access to reclaimed water widespread adoption of rain
sensors reverse osmosis systems and microfiltration systems
70+ of annual building water consumption -
cooling towers and outdoor water use
WATER RETROFIT OPPORTUNITIES
Install metering devices and controls
Perform ongoing distribution system
audits leak detection and repair
Install native and drought resistant
landscape
Maximize indoor plumbing fixture and
fitting efficiency (toilets urinals faucets
aerators and showerheads)
Implement a cooling tower chemical
management and water efficiency
program
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 1
WATER USAGE PER CAPITA
133 GALLONSDAYPERSON
Daily water use (LADWP) all customers Second
lowest in the nation for cities over 1 million
people NY beats LA
Source California Department of Water Resources
LADWP provides extensive prescriptive and menu-based programs as well as more flexible technical
assistance programs to incentivize water use reductions The technical assistance programs require more
upfront involvement from property managers but also cover a larger variety of costs associated with pre-
approved water conservation measures including consulting fees In recent years technical assistance
programs have increased in popularity and have surpassed the traditional menu-based programs These
ratepayer-funded programs are offered at no additional cost to residential and commercial customers By
the end of 2014 LADWP will have invested$60 million dollars in water conservation incentive programs
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 2
As water efficiency regulations become more stringent and water rates continue to rise property owners
and operators can reap immediate benefits from low-cost measures such as the installation of aerators
and quickly recoup investments in upgrading indoor water fixtures
Building managers can reduce water use by installing low-flow or ultra low-flow fixtures fittings and
equipment such as toilets and urinals that exceed current code requirements per recommendations below
Water closets max 16 gallonsflush
Urinals max 0125 to 05 gallonflush
Shower heads max 18 gallonsminute
Faucets max 10 gallonsminute
Replacement aerators max 05 gallonsminute
Metering faucets max 025 gallonscycle
To help meet the Cityrsquos aggressive water conservation goals building owners will be encouraged to move
beyond upgrades to efficient indoor water fixtures for deeper savings Cooling towers and outdoor water
use account for an average of 70 of building water consumption making them the target of increased
water conservation efforts
Reclaimed water is currently restricted to limited areas There are plans to further develop water
reclamation projects for Los Angeles however its use is limited by state health requirements and the
high cost of pumping plants and distribution facilities to deliver water from the reclamation plants to the
customers Robert Estrada of LADWP reports that the cost is an estimated million dollars per mile of
purple pipe However if Assembly Bill 2282 passes all new residential and commercial construction with
access to reclaimed water will be required to incorporate it into approved uses such as landscaping and
reclaimed water infrastructure would necessarily expand
The statersquos water supplies are at all times low underground water supplies are rapidly diminishing and
demand for water continues to grow Solutions to solve our water supply needs will involve many
different solutions from efficiency programs to lower demand a price signal and a search for new water
sources and importing water and desalinization plants
LOS ANGELES DWP
Since 1990 LA Department of Water and Power has
spent about $280 million on conservation programs
METROPOLITAN WATER DISTRICT
Metropolitan provides rebates on water efficient
fixtures financial assistance for water reduction
projects and incentives programs
MAYORrsquoS DIRECTIVE TO CUT WATER USE
(LA Times article) LA Mayor Eric Garcetti signed an
executive directive to further cut potable water use
20X2020 WATER CONSERVATION PLAN
Statewide plan enacted in 2010 to reduce water
consumption by 20 by 2020
SENATE BILL SB X7-7 2009
This Senate bill requires all water suppliers to increase
water efficiency
WATERSENSE
A recognized seal of approval for water efficiency
similar to ENERGY STAR
DOE WATER EFFICIENCY BMPS
Water Efficiency Best Management Practices from the
US Department of Energy
CONCLUSION RESOURCES
W A T E R E F F I C I E N C Y
E N E R G Y E F F I C I E N C Y
RENEWABLE
HYDRO GEOTHERMAL
WIND SOLAR
BIO-DIESEL BIO-MASS
EFFICIENCY
CO-GENERATION
EFFICIENT APPLIANCES EFFICIENT LIGHTING
EFFICIENT VEHICLES EFFICIENT BUILDINGS
INTELLIGENT POWER NETWORKS DECENTRALIZED GRIDS
CONSERVATION
GREY WATER RECYCLING ALTERNATIVE TRANSPORTATION
ENERGY EFFICIENCY RETROFIT STRATEGY
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 4
Many retrofits occur on a piecemeal basis as incentives become available or contractors provide upgrade
recommendations However many buildings especially those that are considering aesthetic or structural
improvements may benefit from a more comprehensive deep energy retrofit
The key components of a deep retrofit process are ongoing energy management assembling an
interdisciplinary team robust analysis and measurement and verification This process is not linear
phases may overlap or go on concurrently and will vary based on factors such as ownership structure
scale of building project delivery method and building complexity
While net zero was once considered a faraway goal for only the most technologically advanced buildings
the National Renewable Energy Laboratory found that there is now the technical potential for over 47
percent of existing US commercial building floor space to achieve net zero energy using existing
technologies and design processes
Net zero may seem unachievable but it can be done using the same principles as effective deep retrofits The
process starts with a solid understanding of baseline operations and expenditures and benefits from
extensive modeling and cost-benefit analysis to optimize systems choice for highest return on investment
There is considerable guidance within the market on how to retrofit buildings with sustainable
technologies to improve their environmental performance A significant barrier however to carrying out
sustainable retrofits is financing A number of financing mechanisms exist and each scenario is unique
Most building owners will choose to use
their own capital when available to avoid
time-intensive administration activities
Other traditional financing options
include loans and bond programs as well
as increases to operating fees or capital leases Building owners and managers can also take advantage of
funding improvements through bill savings (as with performance contracting with Energy Service
Contractors or ESCOrsquos) PACE bonds energy service agreements on-bill financing incentives and rebates
As utility rates continue to rise the incentive to implement energy efficiency projects has gone from cost
savings to cost avoidance This challenge is coupled with how to finance retrofit projects and what to do
once incentivized equipment has been installed
RETROFIT STRATEGY
E N E R G Y E F F I C I E N C Y
21+ Utilities represent an average of 21 of
total building expenses
ndash2012 BOMA Exchange Report
ENERGY RETROFIT OPPORTUNITIES
Monitor meter and commission main
building systems
Maximize heating and cooling efficiencies
and install variable frequency drives on
equipment
Lighting upgrades and controls (efficient
lights daylight harvesting motion sensors
etc)
Install a building automation system
invest in DDC wireless controls energy
optimization software and demand
response infrastructure
Retrofit main building systems chillers
cooling towers boilers fan motors
Building envelope Seal windows install
window films retrofit windows with
higher R-Value
Invest in on-site generation and
renewable Energy systems (fuel cell wind
geothermal and solar energy)
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 1
William Lowery President of Tālō Management Group and BOMA Sustainability Chair shared
information on BOMArsquos sustainability initiatives and resources for members
The Building Owners and Managers Association (BOMA) Sustainability Committee of Greater Los
Angeles holds monthly discussions on issues that affect existing buildings high rises and Class A B and C
buildings Recent topics include water conservation Title 24 cosmpliance water and energy to retrofits
and emerging technology The Sustainability Committee also seeks to address challenges faced by BOMA
members in the Greater Los Angeles area
With the passing of Assembly Bill 1103 which went into effect in January BOMA LA hosted webinars and
hands-on trainings in West and downtown Los Angeles to help building owners and manager comply with
the new regulation
In August the organization held their fourth annual Great Los Angeles Sustainability Seminar which
covered the value of green building improvements and operations and third-party certifications such as
LEED ENERGY STAR and BOMA 360
More information and resources available at
wwwbomaglaorg
View Event Interview
RESOURCES FOR BUILDING OWNERS amp MANAGERS
We partner with organizations like the USGBC and the LA BBC make sure we are spreading the information collected and needed and provide that information to building owners and managers to effectively assist in making change
ndash William Lowery
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 2
Ben Stapleton Director of Commercial Property at LA Better Buildings Challenge (LABBC) told
attendees how Los Angeles is working to reduce energy and water use 20 by 2020 as part of the
National Better Buildings Competition
LABBC is a utility-funded local initiative that is part of the US Department of Energyrsquos Better Buildings
Challenge LABBC surpassed its goal of enrolling 30 million square feet of building space and now has 36
million square feet of building space where owners and managers have committed to reduce energy use
20 by 2020 LA BBC offers no-cost services and subsidies such as energy tracking and analysis audits
project development support and recognition
This year LABBC began offering two new services to help building owners and managers achieve deeper
energy savings LA BBC partnered with contractors to offer challenge participants reduced pricing on
standard efficiency upgrades
ldquoContractors enrolling in this program agree to adhere to a certain set of principles provide their
qualifications and agree to provide standard deliverablesrdquo explained Stapleton ldquoIt is really accelerating
the process for buildings in our program in terms of retrofitting their assetsrdquo
The Tenant Engagement Program (TEP) helps landlords property managers and tenants overcome split-
incentives to help owners recover capital costs and tenants benefit from energy savings The LABBC also
helps participants identify financing such as PACE bonds to fund building performance upgrades
More information and resources available at
wwwla-bbccom
FREE ENERGY AUDITS amp REBATE INFORMATION
We need to focus on how to create value for building owners For LA BBC our goal is to make energy efficiency cheaper easier and faster
ndash Ben Stapleton
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 3
Robert Estrada a water conservation specialist with the Los Angeles Department of Water and Power
(LADWP) encouraged attendees to take advantage of water and energy-savings incentive programs
Estrada began his presentation with a reminder of the dire drought conditions that LA is facing ldquoHere in
Southern California we built water storage for these times Metropolitan Water serves 26 retail water
agencies and the city of LA is their largest customer With approximately 24 million acre feet of water in
emergency storage they are going to draw down 1 million acre feet this year We are really crossing our
fingers for El Nino because we need itrdquo
Per capita water use is at 133 gallons per person per day in Los Angeles LADWP offers incentive
programs to reduce water usage such as turf removal for commercial properties starting at two dollars a
square foot for up to 5000 square feet They also have a Technical Assistance Program with incentives
for water-efficient building upgrades and operations
LADWP also offers a Savings By Design program in partnership with SoCalGas through the Energy
Efficiency Technical Assistance Program (EETAP) ldquoThis program allows customers to get a comprehensive
assessment of their building to identify energy water and gas savings We pay for incentives as they
implement efficiency measuresrdquo In addition to their standard lighting retrofit program LADWP offers a
Custom Performance Program that offers incentives for upgrades following an energy audit Incentives can
now also be used for permitting project management or design fees in addition to efficient technologies
Through the EETAP program auditing services can also be covered through incentives
More information and resources available at
wwwladwpcom
View Event Interview
INCENTIVES FOR EFFICIENCY
For commercial buildings if you have a cooling tower it can use up to half of the buildingrsquos water By going from 25 to 55 [cycles] thatrsquos an overall 30 water savings
ndash Robert Estrada
I N D U S T R Y U P D A T E S
CLIMATE CHANGE RESILIENCE AND ADAPTATION
38 Experiencing
Impacts Now
17 Within
5 Years
7 Beyond
10 Years
31 Donrsquot Know
No Information
7 Within
10 Years
Most Companies
Experience
or Expect
Climate Impacts
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 5
RESILIENCE amp ADAPTATION
In 2013 and 2014 the conversation in the market transitioned from one of potential impacts of climate
change to the realities of adaptation and resilience The EPA released a Climate Adaptation Plan in Febru-
ary 2013 Grosvenor released a Resilient Cities Research Report and the Urban Land Institute launched
an Urban Resilience program and hosted their first annual Building the Resilient City conference
This shift in focus to resilience in the face of adversity comes after two decades of progressively intense
extreme weather events and higher mean temperatures In order to effectively support business opera-
tions our buildings need to be ready to bounce back from disaster with minimum damage and downtime
in addition to absorbing overall increases in temperature
This April the Grosvenor real estate company released a report detailing the findings of their analysis of
the resilience of 50 international cities They defined resilience as a cityrsquos ability to ldquopreserve capital val-
ues and generate sustainable rental income in the long term absorb shocks like natural disasterrdquo and
ldquomaintain their output of goods and services and continue to provide their inhabitants with a good quality
of life according to the standards of the timerdquo
Using this methodology Los Angeles was ranked 21 out of the 50 evaluated cities Although LA earned a
high score for adaptability other factors like rising sea levels earthquakes limited access to potable wa-
ter and socioeconomic stressors increase its vulnerability
Governments arenrsquot the only entity working on resiliency plans Insurance companies are evaluating their
exposure to risk and forward-thinking building owners are drafting climate adaptation plans to catalog
and prevent predictable system failures in addition to developing emergency preparedness and disaster
plans Such plans address the incremental changes in availability of water increasing temperature and
other environmental and social pressures arising from climate change
Roundtable attendees were most focused on how buildings can contribute to grid reliability through load
shifting on-site power generation demand response programs seismic retrofits and voluntary resilience
ratings to lead the market
Resilience increases when cities have more adaptive capacity and decreases when they are more vulnerable
- Resilient Cities Research Report
C L I M A T E C H A N G E
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 6
WATER ENERGY amp ENVIRONMENT MANAGING CLIMATE RISKS
WATER RESILIENCE
The current extreme drought conditions in California have exposed vulnerabilities in the statersquos
water storage and delivery systems Outdated infrastructure inability to increase water rates overpump-
ing and salination of groundwater sources conflicting municipal and community policies and limited ac-
cess to alternative water sources contribute to increasing water stress While Los Angeles has maintained
level water use per capita since the 70rsquos a result of successful metering programs population growth has
pushed water supplies to the limit
ENERGY RESILIENCE
Reducing overall energy usage especially in existing buildings three years or older is the first and
best line of defense in grid reliability Because peak usage times are those times when the grid experienc-
es the most demand up to 40 of a buildingrsquos energy costs comes from peak load energy charges De-
mand response energy storage and on-site generation can effectively reduce costs associated with the
purchase of grid-source peak energy
Demand response programs commonly referred to as Flex Alerts in California have increased in availa-
bility and participation across residential and commercial sectors throughout the state As one participant
put it ldquodemand response is becoming a part of LADWPrsquos DNArdquo Industry experts predict that demand
response programs will become mandatory within the next 10-15 years if not sooner and recommend
that building owners consider capturing the benefits of voluntary participation while it is available
On-site generation using fuel cells to reduce peak grid-source energy use was foremost on participantsrsquo
minds They cited lack of space as the primary reason more on-site generation has not been adopted
Consensus in the group was that renewable energy options generally do not provide an attractive return
on investment even with incentives to justify the allocation of space required to generate meaningful
quantities of energy
Energy storage using battery systems has been developing rapidly and at least one forum attendee ex-
pects to see uptake of market-ready solutions within the next year Incentives are available for up to 3
of the up-front costs of these systems Batteries allow building owners to store energy during off-peak
hours at lower energy rates for use during peak hours
C L I M A T E C H A N G E
BUILD AWARENESS
Educate building managers ten-
ants and employees at all levels
about the need to build the adap-
tive capacity to manage risks in
the long term
ASSESS VULNERABILITIES
Determine the threat climate dis-
ruption poses to core building
operations supplies building and
tenant work force customers and
key services
MANAGE RISKS AND
PURSUE OPPORTUNITIES
Fortify or relocate infrastructure
plan for changes in water and en-
ergy availability or review supply
chain vulnerabilities
REVIEW RISK ASSESSMENTS
AND MAKE PLANS
Continuously review risks and
opportunities regularly using
centralized assessment tools and
develop adaptive risk manage-
ment plans
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 7
C L I M A T E C H A N G E
ENVIRONMENTAL RESILIENCE
While frequency of earthquakes is not directly linked to climate change response to earth-
quakes is certainly a factor in building resilience and an area of vulnerability in Los Angeles The most im-
portant component of building resilience in Los Angeles is the choice of structural materials Steel frame
buildings are considerably more adaptable and thereby more resilient than their concrete-framed coun-
terparts
A seismic-readiness survey of the city of Los Angeles conducted by a team of UC Berkeley researchers
revealed that a number of buildings require retrofits to meet seismic standards These buildings are pri-
marily smaller concrete structures prompting attendees to note that the least resilient buildings are fre-
quently controlled by building owners with the fewest resources both capital and staff to manage re-
quired upgrades Add the fear of triggering potentially costly Title 24 energy upgrades and compliance
with seismic standards becomes nearly impossible
One attendee suggested that seismic upgrades be linked to energy efficiency upgrades creating an op-
portunity for a deep retrofit that raises the overall value and stature of the property The challenge is en-
couraging these owners of concrete building who are frequently hesitant to incorporate major capital
improvements to comply The perception of complexity is already a significant obstacle to adoption of a
number of incentive and financing opportunities
Infographics on page 14 and 16 source ldquoWeathering the Storm Building Business Resilience to Climate Changerdquo Center for Cli-
mate and Energy Solutions Munich Re National Oceanic and Atmospheric Aon Benfield Lloydrsquos of London
Policy and regulations will con-tinue to drive local governments and the building industry to address climate change risks infrastructure needs and increased resource needs for water energy and demographic shifts Proactive owners need to stay in front of these risks and get ready to recover from natural disasters with minimum damage and downtime
- Daniele Horton Founder amp Principal
Verdani Partners
WATER EFFICIENCY SECTION DIVIDER SIDEBAR HEADER GOES HERE WATER EFFICIENCY
19
00
19
40
20
10
20
15
20
50
Colorado River
Annual Average
River Flow
NO AND LOW COST MEASURES
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 9
Drought in California and water conservation is the new norm ndash Robert Estrada Los Angeles Department of Water and Power
Source US Drought Monitor (httpdroughtmonitorunledu)
The current extreme drought in California has exposed vulnerabilities in the statersquos water storage and
delivery systems Outdated infrastructure over pumping of ground water supplies pollution of ground
water supplies by fracking and other activities conflicting municipal and community policies climate
change increased demand and limited access to alternative water sources contribute to increasing water
stress While Los Angeles has maintained level water use per capita for the past forty years a result of
successful metering programs population growth has pushed water supplies to the limit Climate change
has also greatly affected the snow pack water supplies and the underground water reserves are been
tapped at an unprecedented rate The state is facing one of its worst droughts in history and a massive
effort will be needed to find solutions to meet its water demand needs
In response to current conditions Los Angeles Mayor Eric Garcetti signed an Executive Directive on
October 14 2014 to reduce potable water use 20 by 2017 This includes removing turf landscaping at
city buildings and replacing it with native and drought-resistant plants The directive also mandates the
CURRENT CONDITIONS
LOS ANGELES WATER SUPPLY
1 Recycled
Water
11 Groundwater
37 LA Aqueduct
51 Purchased from
Metropolitan
Water District
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 0
Los Angeles Department of Water and Power (LADWP) to reduce water imports 50 by 2024
It was also discussed that the cost of water is still quite low which makes the business case for making
water efficiency upgrades more challenging Some of the attendees mentioned that a price signal would
be critical to incentivize additional water efficiency upgrades and lower water usage The LADWP rep
explained that because they are a public entity that they cannot charge for the water They can only
charge to transport the water and any rate increases need to be approved by the voters which makes the
process for increasing the fees for water very challenging
A best practice for conservation and one that has helped Los Angeles maintain the lowest consumption
for any city with a population over 1 million is metering
LADWP launched their conservation program in the late 1970s Today the LADWP provides extensive
incentive programs for water use reduction efforts including prescriptive or menu-based programs and
more flexible technical assistance programs While more involved the technical assistance programs
cover a larger variety of costs associated with pre-approved water conservation measures including
consulting fees Recently utilization of technical assistance programs has surpassed the traditional menu-
based programs although many building
owners interviewed were still unaware of
the technical assistance program
While improving the efficiency of indoor
water fixtures has been a popular and well-publicized program historically utilities have identified cooling
towers and outdoor water use as 70+ of annual building water consumption making them the target of
renewed water conservation efforts including access to reclaimed water widespread adoption of rain
sensors reverse osmosis systems and microfiltration systems
70+ of annual building water consumption -
cooling towers and outdoor water use
WATER RETROFIT OPPORTUNITIES
Install metering devices and controls
Perform ongoing distribution system
audits leak detection and repair
Install native and drought resistant
landscape
Maximize indoor plumbing fixture and
fitting efficiency (toilets urinals faucets
aerators and showerheads)
Implement a cooling tower chemical
management and water efficiency
program
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 1
WATER USAGE PER CAPITA
133 GALLONSDAYPERSON
Daily water use (LADWP) all customers Second
lowest in the nation for cities over 1 million
people NY beats LA
Source California Department of Water Resources
LADWP provides extensive prescriptive and menu-based programs as well as more flexible technical
assistance programs to incentivize water use reductions The technical assistance programs require more
upfront involvement from property managers but also cover a larger variety of costs associated with pre-
approved water conservation measures including consulting fees In recent years technical assistance
programs have increased in popularity and have surpassed the traditional menu-based programs These
ratepayer-funded programs are offered at no additional cost to residential and commercial customers By
the end of 2014 LADWP will have invested$60 million dollars in water conservation incentive programs
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 2
As water efficiency regulations become more stringent and water rates continue to rise property owners
and operators can reap immediate benefits from low-cost measures such as the installation of aerators
and quickly recoup investments in upgrading indoor water fixtures
Building managers can reduce water use by installing low-flow or ultra low-flow fixtures fittings and
equipment such as toilets and urinals that exceed current code requirements per recommendations below
Water closets max 16 gallonsflush
Urinals max 0125 to 05 gallonflush
Shower heads max 18 gallonsminute
Faucets max 10 gallonsminute
Replacement aerators max 05 gallonsminute
Metering faucets max 025 gallonscycle
To help meet the Cityrsquos aggressive water conservation goals building owners will be encouraged to move
beyond upgrades to efficient indoor water fixtures for deeper savings Cooling towers and outdoor water
use account for an average of 70 of building water consumption making them the target of increased
water conservation efforts
Reclaimed water is currently restricted to limited areas There are plans to further develop water
reclamation projects for Los Angeles however its use is limited by state health requirements and the
high cost of pumping plants and distribution facilities to deliver water from the reclamation plants to the
customers Robert Estrada of LADWP reports that the cost is an estimated million dollars per mile of
purple pipe However if Assembly Bill 2282 passes all new residential and commercial construction with
access to reclaimed water will be required to incorporate it into approved uses such as landscaping and
reclaimed water infrastructure would necessarily expand
The statersquos water supplies are at all times low underground water supplies are rapidly diminishing and
demand for water continues to grow Solutions to solve our water supply needs will involve many
different solutions from efficiency programs to lower demand a price signal and a search for new water
sources and importing water and desalinization plants
LOS ANGELES DWP
Since 1990 LA Department of Water and Power has
spent about $280 million on conservation programs
METROPOLITAN WATER DISTRICT
Metropolitan provides rebates on water efficient
fixtures financial assistance for water reduction
projects and incentives programs
MAYORrsquoS DIRECTIVE TO CUT WATER USE
(LA Times article) LA Mayor Eric Garcetti signed an
executive directive to further cut potable water use
20X2020 WATER CONSERVATION PLAN
Statewide plan enacted in 2010 to reduce water
consumption by 20 by 2020
SENATE BILL SB X7-7 2009
This Senate bill requires all water suppliers to increase
water efficiency
WATERSENSE
A recognized seal of approval for water efficiency
similar to ENERGY STAR
DOE WATER EFFICIENCY BMPS
Water Efficiency Best Management Practices from the
US Department of Energy
CONCLUSION RESOURCES
W A T E R E F F I C I E N C Y
E N E R G Y E F F I C I E N C Y
RENEWABLE
HYDRO GEOTHERMAL
WIND SOLAR
BIO-DIESEL BIO-MASS
EFFICIENCY
CO-GENERATION
EFFICIENT APPLIANCES EFFICIENT LIGHTING
EFFICIENT VEHICLES EFFICIENT BUILDINGS
INTELLIGENT POWER NETWORKS DECENTRALIZED GRIDS
CONSERVATION
GREY WATER RECYCLING ALTERNATIVE TRANSPORTATION
ENERGY EFFICIENCY RETROFIT STRATEGY
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 4
Many retrofits occur on a piecemeal basis as incentives become available or contractors provide upgrade
recommendations However many buildings especially those that are considering aesthetic or structural
improvements may benefit from a more comprehensive deep energy retrofit
The key components of a deep retrofit process are ongoing energy management assembling an
interdisciplinary team robust analysis and measurement and verification This process is not linear
phases may overlap or go on concurrently and will vary based on factors such as ownership structure
scale of building project delivery method and building complexity
While net zero was once considered a faraway goal for only the most technologically advanced buildings
the National Renewable Energy Laboratory found that there is now the technical potential for over 47
percent of existing US commercial building floor space to achieve net zero energy using existing
technologies and design processes
Net zero may seem unachievable but it can be done using the same principles as effective deep retrofits The
process starts with a solid understanding of baseline operations and expenditures and benefits from
extensive modeling and cost-benefit analysis to optimize systems choice for highest return on investment
There is considerable guidance within the market on how to retrofit buildings with sustainable
technologies to improve their environmental performance A significant barrier however to carrying out
sustainable retrofits is financing A number of financing mechanisms exist and each scenario is unique
Most building owners will choose to use
their own capital when available to avoid
time-intensive administration activities
Other traditional financing options
include loans and bond programs as well
as increases to operating fees or capital leases Building owners and managers can also take advantage of
funding improvements through bill savings (as with performance contracting with Energy Service
Contractors or ESCOrsquos) PACE bonds energy service agreements on-bill financing incentives and rebates
As utility rates continue to rise the incentive to implement energy efficiency projects has gone from cost
savings to cost avoidance This challenge is coupled with how to finance retrofit projects and what to do
once incentivized equipment has been installed
RETROFIT STRATEGY
E N E R G Y E F F I C I E N C Y
21+ Utilities represent an average of 21 of
total building expenses
ndash2012 BOMA Exchange Report
ENERGY RETROFIT OPPORTUNITIES
Monitor meter and commission main
building systems
Maximize heating and cooling efficiencies
and install variable frequency drives on
equipment
Lighting upgrades and controls (efficient
lights daylight harvesting motion sensors
etc)
Install a building automation system
invest in DDC wireless controls energy
optimization software and demand
response infrastructure
Retrofit main building systems chillers
cooling towers boilers fan motors
Building envelope Seal windows install
window films retrofit windows with
higher R-Value
Invest in on-site generation and
renewable Energy systems (fuel cell wind
geothermal and solar energy)
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 2
Ben Stapleton Director of Commercial Property at LA Better Buildings Challenge (LABBC) told
attendees how Los Angeles is working to reduce energy and water use 20 by 2020 as part of the
National Better Buildings Competition
LABBC is a utility-funded local initiative that is part of the US Department of Energyrsquos Better Buildings
Challenge LABBC surpassed its goal of enrolling 30 million square feet of building space and now has 36
million square feet of building space where owners and managers have committed to reduce energy use
20 by 2020 LA BBC offers no-cost services and subsidies such as energy tracking and analysis audits
project development support and recognition
This year LABBC began offering two new services to help building owners and managers achieve deeper
energy savings LA BBC partnered with contractors to offer challenge participants reduced pricing on
standard efficiency upgrades
ldquoContractors enrolling in this program agree to adhere to a certain set of principles provide their
qualifications and agree to provide standard deliverablesrdquo explained Stapleton ldquoIt is really accelerating
the process for buildings in our program in terms of retrofitting their assetsrdquo
The Tenant Engagement Program (TEP) helps landlords property managers and tenants overcome split-
incentives to help owners recover capital costs and tenants benefit from energy savings The LABBC also
helps participants identify financing such as PACE bonds to fund building performance upgrades
More information and resources available at
wwwla-bbccom
FREE ENERGY AUDITS amp REBATE INFORMATION
We need to focus on how to create value for building owners For LA BBC our goal is to make energy efficiency cheaper easier and faster
ndash Ben Stapleton
I N D U S T R Y U P D A T E S
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 3
Robert Estrada a water conservation specialist with the Los Angeles Department of Water and Power
(LADWP) encouraged attendees to take advantage of water and energy-savings incentive programs
Estrada began his presentation with a reminder of the dire drought conditions that LA is facing ldquoHere in
Southern California we built water storage for these times Metropolitan Water serves 26 retail water
agencies and the city of LA is their largest customer With approximately 24 million acre feet of water in
emergency storage they are going to draw down 1 million acre feet this year We are really crossing our
fingers for El Nino because we need itrdquo
Per capita water use is at 133 gallons per person per day in Los Angeles LADWP offers incentive
programs to reduce water usage such as turf removal for commercial properties starting at two dollars a
square foot for up to 5000 square feet They also have a Technical Assistance Program with incentives
for water-efficient building upgrades and operations
LADWP also offers a Savings By Design program in partnership with SoCalGas through the Energy
Efficiency Technical Assistance Program (EETAP) ldquoThis program allows customers to get a comprehensive
assessment of their building to identify energy water and gas savings We pay for incentives as they
implement efficiency measuresrdquo In addition to their standard lighting retrofit program LADWP offers a
Custom Performance Program that offers incentives for upgrades following an energy audit Incentives can
now also be used for permitting project management or design fees in addition to efficient technologies
Through the EETAP program auditing services can also be covered through incentives
More information and resources available at
wwwladwpcom
View Event Interview
INCENTIVES FOR EFFICIENCY
For commercial buildings if you have a cooling tower it can use up to half of the buildingrsquos water By going from 25 to 55 [cycles] thatrsquos an overall 30 water savings
ndash Robert Estrada
I N D U S T R Y U P D A T E S
CLIMATE CHANGE RESILIENCE AND ADAPTATION
38 Experiencing
Impacts Now
17 Within
5 Years
7 Beyond
10 Years
31 Donrsquot Know
No Information
7 Within
10 Years
Most Companies
Experience
or Expect
Climate Impacts
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 5
RESILIENCE amp ADAPTATION
In 2013 and 2014 the conversation in the market transitioned from one of potential impacts of climate
change to the realities of adaptation and resilience The EPA released a Climate Adaptation Plan in Febru-
ary 2013 Grosvenor released a Resilient Cities Research Report and the Urban Land Institute launched
an Urban Resilience program and hosted their first annual Building the Resilient City conference
This shift in focus to resilience in the face of adversity comes after two decades of progressively intense
extreme weather events and higher mean temperatures In order to effectively support business opera-
tions our buildings need to be ready to bounce back from disaster with minimum damage and downtime
in addition to absorbing overall increases in temperature
This April the Grosvenor real estate company released a report detailing the findings of their analysis of
the resilience of 50 international cities They defined resilience as a cityrsquos ability to ldquopreserve capital val-
ues and generate sustainable rental income in the long term absorb shocks like natural disasterrdquo and
ldquomaintain their output of goods and services and continue to provide their inhabitants with a good quality
of life according to the standards of the timerdquo
Using this methodology Los Angeles was ranked 21 out of the 50 evaluated cities Although LA earned a
high score for adaptability other factors like rising sea levels earthquakes limited access to potable wa-
ter and socioeconomic stressors increase its vulnerability
Governments arenrsquot the only entity working on resiliency plans Insurance companies are evaluating their
exposure to risk and forward-thinking building owners are drafting climate adaptation plans to catalog
and prevent predictable system failures in addition to developing emergency preparedness and disaster
plans Such plans address the incremental changes in availability of water increasing temperature and
other environmental and social pressures arising from climate change
Roundtable attendees were most focused on how buildings can contribute to grid reliability through load
shifting on-site power generation demand response programs seismic retrofits and voluntary resilience
ratings to lead the market
Resilience increases when cities have more adaptive capacity and decreases when they are more vulnerable
- Resilient Cities Research Report
C L I M A T E C H A N G E
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 6
WATER ENERGY amp ENVIRONMENT MANAGING CLIMATE RISKS
WATER RESILIENCE
The current extreme drought conditions in California have exposed vulnerabilities in the statersquos
water storage and delivery systems Outdated infrastructure inability to increase water rates overpump-
ing and salination of groundwater sources conflicting municipal and community policies and limited ac-
cess to alternative water sources contribute to increasing water stress While Los Angeles has maintained
level water use per capita since the 70rsquos a result of successful metering programs population growth has
pushed water supplies to the limit
ENERGY RESILIENCE
Reducing overall energy usage especially in existing buildings three years or older is the first and
best line of defense in grid reliability Because peak usage times are those times when the grid experienc-
es the most demand up to 40 of a buildingrsquos energy costs comes from peak load energy charges De-
mand response energy storage and on-site generation can effectively reduce costs associated with the
purchase of grid-source peak energy
Demand response programs commonly referred to as Flex Alerts in California have increased in availa-
bility and participation across residential and commercial sectors throughout the state As one participant
put it ldquodemand response is becoming a part of LADWPrsquos DNArdquo Industry experts predict that demand
response programs will become mandatory within the next 10-15 years if not sooner and recommend
that building owners consider capturing the benefits of voluntary participation while it is available
On-site generation using fuel cells to reduce peak grid-source energy use was foremost on participantsrsquo
minds They cited lack of space as the primary reason more on-site generation has not been adopted
Consensus in the group was that renewable energy options generally do not provide an attractive return
on investment even with incentives to justify the allocation of space required to generate meaningful
quantities of energy
Energy storage using battery systems has been developing rapidly and at least one forum attendee ex-
pects to see uptake of market-ready solutions within the next year Incentives are available for up to 3
of the up-front costs of these systems Batteries allow building owners to store energy during off-peak
hours at lower energy rates for use during peak hours
C L I M A T E C H A N G E
BUILD AWARENESS
Educate building managers ten-
ants and employees at all levels
about the need to build the adap-
tive capacity to manage risks in
the long term
ASSESS VULNERABILITIES
Determine the threat climate dis-
ruption poses to core building
operations supplies building and
tenant work force customers and
key services
MANAGE RISKS AND
PURSUE OPPORTUNITIES
Fortify or relocate infrastructure
plan for changes in water and en-
ergy availability or review supply
chain vulnerabilities
REVIEW RISK ASSESSMENTS
AND MAKE PLANS
Continuously review risks and
opportunities regularly using
centralized assessment tools and
develop adaptive risk manage-
ment plans
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 7
C L I M A T E C H A N G E
ENVIRONMENTAL RESILIENCE
While frequency of earthquakes is not directly linked to climate change response to earth-
quakes is certainly a factor in building resilience and an area of vulnerability in Los Angeles The most im-
portant component of building resilience in Los Angeles is the choice of structural materials Steel frame
buildings are considerably more adaptable and thereby more resilient than their concrete-framed coun-
terparts
A seismic-readiness survey of the city of Los Angeles conducted by a team of UC Berkeley researchers
revealed that a number of buildings require retrofits to meet seismic standards These buildings are pri-
marily smaller concrete structures prompting attendees to note that the least resilient buildings are fre-
quently controlled by building owners with the fewest resources both capital and staff to manage re-
quired upgrades Add the fear of triggering potentially costly Title 24 energy upgrades and compliance
with seismic standards becomes nearly impossible
One attendee suggested that seismic upgrades be linked to energy efficiency upgrades creating an op-
portunity for a deep retrofit that raises the overall value and stature of the property The challenge is en-
couraging these owners of concrete building who are frequently hesitant to incorporate major capital
improvements to comply The perception of complexity is already a significant obstacle to adoption of a
number of incentive and financing opportunities
Infographics on page 14 and 16 source ldquoWeathering the Storm Building Business Resilience to Climate Changerdquo Center for Cli-
mate and Energy Solutions Munich Re National Oceanic and Atmospheric Aon Benfield Lloydrsquos of London
Policy and regulations will con-tinue to drive local governments and the building industry to address climate change risks infrastructure needs and increased resource needs for water energy and demographic shifts Proactive owners need to stay in front of these risks and get ready to recover from natural disasters with minimum damage and downtime
- Daniele Horton Founder amp Principal
Verdani Partners
WATER EFFICIENCY SECTION DIVIDER SIDEBAR HEADER GOES HERE WATER EFFICIENCY
19
00
19
40
20
10
20
15
20
50
Colorado River
Annual Average
River Flow
NO AND LOW COST MEASURES
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 9
Drought in California and water conservation is the new norm ndash Robert Estrada Los Angeles Department of Water and Power
Source US Drought Monitor (httpdroughtmonitorunledu)
The current extreme drought in California has exposed vulnerabilities in the statersquos water storage and
delivery systems Outdated infrastructure over pumping of ground water supplies pollution of ground
water supplies by fracking and other activities conflicting municipal and community policies climate
change increased demand and limited access to alternative water sources contribute to increasing water
stress While Los Angeles has maintained level water use per capita for the past forty years a result of
successful metering programs population growth has pushed water supplies to the limit Climate change
has also greatly affected the snow pack water supplies and the underground water reserves are been
tapped at an unprecedented rate The state is facing one of its worst droughts in history and a massive
effort will be needed to find solutions to meet its water demand needs
In response to current conditions Los Angeles Mayor Eric Garcetti signed an Executive Directive on
October 14 2014 to reduce potable water use 20 by 2017 This includes removing turf landscaping at
city buildings and replacing it with native and drought-resistant plants The directive also mandates the
CURRENT CONDITIONS
LOS ANGELES WATER SUPPLY
1 Recycled
Water
11 Groundwater
37 LA Aqueduct
51 Purchased from
Metropolitan
Water District
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 0
Los Angeles Department of Water and Power (LADWP) to reduce water imports 50 by 2024
It was also discussed that the cost of water is still quite low which makes the business case for making
water efficiency upgrades more challenging Some of the attendees mentioned that a price signal would
be critical to incentivize additional water efficiency upgrades and lower water usage The LADWP rep
explained that because they are a public entity that they cannot charge for the water They can only
charge to transport the water and any rate increases need to be approved by the voters which makes the
process for increasing the fees for water very challenging
A best practice for conservation and one that has helped Los Angeles maintain the lowest consumption
for any city with a population over 1 million is metering
LADWP launched their conservation program in the late 1970s Today the LADWP provides extensive
incentive programs for water use reduction efforts including prescriptive or menu-based programs and
more flexible technical assistance programs While more involved the technical assistance programs
cover a larger variety of costs associated with pre-approved water conservation measures including
consulting fees Recently utilization of technical assistance programs has surpassed the traditional menu-
based programs although many building
owners interviewed were still unaware of
the technical assistance program
While improving the efficiency of indoor
water fixtures has been a popular and well-publicized program historically utilities have identified cooling
towers and outdoor water use as 70+ of annual building water consumption making them the target of
renewed water conservation efforts including access to reclaimed water widespread adoption of rain
sensors reverse osmosis systems and microfiltration systems
70+ of annual building water consumption -
cooling towers and outdoor water use
WATER RETROFIT OPPORTUNITIES
Install metering devices and controls
Perform ongoing distribution system
audits leak detection and repair
Install native and drought resistant
landscape
Maximize indoor plumbing fixture and
fitting efficiency (toilets urinals faucets
aerators and showerheads)
Implement a cooling tower chemical
management and water efficiency
program
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 1
WATER USAGE PER CAPITA
133 GALLONSDAYPERSON
Daily water use (LADWP) all customers Second
lowest in the nation for cities over 1 million
people NY beats LA
Source California Department of Water Resources
LADWP provides extensive prescriptive and menu-based programs as well as more flexible technical
assistance programs to incentivize water use reductions The technical assistance programs require more
upfront involvement from property managers but also cover a larger variety of costs associated with pre-
approved water conservation measures including consulting fees In recent years technical assistance
programs have increased in popularity and have surpassed the traditional menu-based programs These
ratepayer-funded programs are offered at no additional cost to residential and commercial customers By
the end of 2014 LADWP will have invested$60 million dollars in water conservation incentive programs
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 2
As water efficiency regulations become more stringent and water rates continue to rise property owners
and operators can reap immediate benefits from low-cost measures such as the installation of aerators
and quickly recoup investments in upgrading indoor water fixtures
Building managers can reduce water use by installing low-flow or ultra low-flow fixtures fittings and
equipment such as toilets and urinals that exceed current code requirements per recommendations below
Water closets max 16 gallonsflush
Urinals max 0125 to 05 gallonflush
Shower heads max 18 gallonsminute
Faucets max 10 gallonsminute
Replacement aerators max 05 gallonsminute
Metering faucets max 025 gallonscycle
To help meet the Cityrsquos aggressive water conservation goals building owners will be encouraged to move
beyond upgrades to efficient indoor water fixtures for deeper savings Cooling towers and outdoor water
use account for an average of 70 of building water consumption making them the target of increased
water conservation efforts
Reclaimed water is currently restricted to limited areas There are plans to further develop water
reclamation projects for Los Angeles however its use is limited by state health requirements and the
high cost of pumping plants and distribution facilities to deliver water from the reclamation plants to the
customers Robert Estrada of LADWP reports that the cost is an estimated million dollars per mile of
purple pipe However if Assembly Bill 2282 passes all new residential and commercial construction with
access to reclaimed water will be required to incorporate it into approved uses such as landscaping and
reclaimed water infrastructure would necessarily expand
The statersquos water supplies are at all times low underground water supplies are rapidly diminishing and
demand for water continues to grow Solutions to solve our water supply needs will involve many
different solutions from efficiency programs to lower demand a price signal and a search for new water
sources and importing water and desalinization plants
LOS ANGELES DWP
Since 1990 LA Department of Water and Power has
spent about $280 million on conservation programs
METROPOLITAN WATER DISTRICT
Metropolitan provides rebates on water efficient
fixtures financial assistance for water reduction
projects and incentives programs
MAYORrsquoS DIRECTIVE TO CUT WATER USE
(LA Times article) LA Mayor Eric Garcetti signed an
executive directive to further cut potable water use
20X2020 WATER CONSERVATION PLAN
Statewide plan enacted in 2010 to reduce water
consumption by 20 by 2020
SENATE BILL SB X7-7 2009
This Senate bill requires all water suppliers to increase
water efficiency
WATERSENSE
A recognized seal of approval for water efficiency
similar to ENERGY STAR
DOE WATER EFFICIENCY BMPS
Water Efficiency Best Management Practices from the
US Department of Energy
CONCLUSION RESOURCES
W A T E R E F F I C I E N C Y
E N E R G Y E F F I C I E N C Y
RENEWABLE
HYDRO GEOTHERMAL
WIND SOLAR
BIO-DIESEL BIO-MASS
EFFICIENCY
CO-GENERATION
EFFICIENT APPLIANCES EFFICIENT LIGHTING
EFFICIENT VEHICLES EFFICIENT BUILDINGS
INTELLIGENT POWER NETWORKS DECENTRALIZED GRIDS
CONSERVATION
GREY WATER RECYCLING ALTERNATIVE TRANSPORTATION
ENERGY EFFICIENCY RETROFIT STRATEGY
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 4
Many retrofits occur on a piecemeal basis as incentives become available or contractors provide upgrade
recommendations However many buildings especially those that are considering aesthetic or structural
improvements may benefit from a more comprehensive deep energy retrofit
The key components of a deep retrofit process are ongoing energy management assembling an
interdisciplinary team robust analysis and measurement and verification This process is not linear
phases may overlap or go on concurrently and will vary based on factors such as ownership structure
scale of building project delivery method and building complexity
While net zero was once considered a faraway goal for only the most technologically advanced buildings
the National Renewable Energy Laboratory found that there is now the technical potential for over 47
percent of existing US commercial building floor space to achieve net zero energy using existing
technologies and design processes
Net zero may seem unachievable but it can be done using the same principles as effective deep retrofits The
process starts with a solid understanding of baseline operations and expenditures and benefits from
extensive modeling and cost-benefit analysis to optimize systems choice for highest return on investment
There is considerable guidance within the market on how to retrofit buildings with sustainable
technologies to improve their environmental performance A significant barrier however to carrying out
sustainable retrofits is financing A number of financing mechanisms exist and each scenario is unique
Most building owners will choose to use
their own capital when available to avoid
time-intensive administration activities
Other traditional financing options
include loans and bond programs as well
as increases to operating fees or capital leases Building owners and managers can also take advantage of
funding improvements through bill savings (as with performance contracting with Energy Service
Contractors or ESCOrsquos) PACE bonds energy service agreements on-bill financing incentives and rebates
As utility rates continue to rise the incentive to implement energy efficiency projects has gone from cost
savings to cost avoidance This challenge is coupled with how to finance retrofit projects and what to do
once incentivized equipment has been installed
RETROFIT STRATEGY
E N E R G Y E F F I C I E N C Y
21+ Utilities represent an average of 21 of
total building expenses
ndash2012 BOMA Exchange Report
ENERGY RETROFIT OPPORTUNITIES
Monitor meter and commission main
building systems
Maximize heating and cooling efficiencies
and install variable frequency drives on
equipment
Lighting upgrades and controls (efficient
lights daylight harvesting motion sensors
etc)
Install a building automation system
invest in DDC wireless controls energy
optimization software and demand
response infrastructure
Retrofit main building systems chillers
cooling towers boilers fan motors
Building envelope Seal windows install
window films retrofit windows with
higher R-Value
Invest in on-site generation and
renewable Energy systems (fuel cell wind
geothermal and solar energy)
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 3
Robert Estrada a water conservation specialist with the Los Angeles Department of Water and Power
(LADWP) encouraged attendees to take advantage of water and energy-savings incentive programs
Estrada began his presentation with a reminder of the dire drought conditions that LA is facing ldquoHere in
Southern California we built water storage for these times Metropolitan Water serves 26 retail water
agencies and the city of LA is their largest customer With approximately 24 million acre feet of water in
emergency storage they are going to draw down 1 million acre feet this year We are really crossing our
fingers for El Nino because we need itrdquo
Per capita water use is at 133 gallons per person per day in Los Angeles LADWP offers incentive
programs to reduce water usage such as turf removal for commercial properties starting at two dollars a
square foot for up to 5000 square feet They also have a Technical Assistance Program with incentives
for water-efficient building upgrades and operations
LADWP also offers a Savings By Design program in partnership with SoCalGas through the Energy
Efficiency Technical Assistance Program (EETAP) ldquoThis program allows customers to get a comprehensive
assessment of their building to identify energy water and gas savings We pay for incentives as they
implement efficiency measuresrdquo In addition to their standard lighting retrofit program LADWP offers a
Custom Performance Program that offers incentives for upgrades following an energy audit Incentives can
now also be used for permitting project management or design fees in addition to efficient technologies
Through the EETAP program auditing services can also be covered through incentives
More information and resources available at
wwwladwpcom
View Event Interview
INCENTIVES FOR EFFICIENCY
For commercial buildings if you have a cooling tower it can use up to half of the buildingrsquos water By going from 25 to 55 [cycles] thatrsquos an overall 30 water savings
ndash Robert Estrada
I N D U S T R Y U P D A T E S
CLIMATE CHANGE RESILIENCE AND ADAPTATION
38 Experiencing
Impacts Now
17 Within
5 Years
7 Beyond
10 Years
31 Donrsquot Know
No Information
7 Within
10 Years
Most Companies
Experience
or Expect
Climate Impacts
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 5
RESILIENCE amp ADAPTATION
In 2013 and 2014 the conversation in the market transitioned from one of potential impacts of climate
change to the realities of adaptation and resilience The EPA released a Climate Adaptation Plan in Febru-
ary 2013 Grosvenor released a Resilient Cities Research Report and the Urban Land Institute launched
an Urban Resilience program and hosted their first annual Building the Resilient City conference
This shift in focus to resilience in the face of adversity comes after two decades of progressively intense
extreme weather events and higher mean temperatures In order to effectively support business opera-
tions our buildings need to be ready to bounce back from disaster with minimum damage and downtime
in addition to absorbing overall increases in temperature
This April the Grosvenor real estate company released a report detailing the findings of their analysis of
the resilience of 50 international cities They defined resilience as a cityrsquos ability to ldquopreserve capital val-
ues and generate sustainable rental income in the long term absorb shocks like natural disasterrdquo and
ldquomaintain their output of goods and services and continue to provide their inhabitants with a good quality
of life according to the standards of the timerdquo
Using this methodology Los Angeles was ranked 21 out of the 50 evaluated cities Although LA earned a
high score for adaptability other factors like rising sea levels earthquakes limited access to potable wa-
ter and socioeconomic stressors increase its vulnerability
Governments arenrsquot the only entity working on resiliency plans Insurance companies are evaluating their
exposure to risk and forward-thinking building owners are drafting climate adaptation plans to catalog
and prevent predictable system failures in addition to developing emergency preparedness and disaster
plans Such plans address the incremental changes in availability of water increasing temperature and
other environmental and social pressures arising from climate change
Roundtable attendees were most focused on how buildings can contribute to grid reliability through load
shifting on-site power generation demand response programs seismic retrofits and voluntary resilience
ratings to lead the market
Resilience increases when cities have more adaptive capacity and decreases when they are more vulnerable
- Resilient Cities Research Report
C L I M A T E C H A N G E
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 6
WATER ENERGY amp ENVIRONMENT MANAGING CLIMATE RISKS
WATER RESILIENCE
The current extreme drought conditions in California have exposed vulnerabilities in the statersquos
water storage and delivery systems Outdated infrastructure inability to increase water rates overpump-
ing and salination of groundwater sources conflicting municipal and community policies and limited ac-
cess to alternative water sources contribute to increasing water stress While Los Angeles has maintained
level water use per capita since the 70rsquos a result of successful metering programs population growth has
pushed water supplies to the limit
ENERGY RESILIENCE
Reducing overall energy usage especially in existing buildings three years or older is the first and
best line of defense in grid reliability Because peak usage times are those times when the grid experienc-
es the most demand up to 40 of a buildingrsquos energy costs comes from peak load energy charges De-
mand response energy storage and on-site generation can effectively reduce costs associated with the
purchase of grid-source peak energy
Demand response programs commonly referred to as Flex Alerts in California have increased in availa-
bility and participation across residential and commercial sectors throughout the state As one participant
put it ldquodemand response is becoming a part of LADWPrsquos DNArdquo Industry experts predict that demand
response programs will become mandatory within the next 10-15 years if not sooner and recommend
that building owners consider capturing the benefits of voluntary participation while it is available
On-site generation using fuel cells to reduce peak grid-source energy use was foremost on participantsrsquo
minds They cited lack of space as the primary reason more on-site generation has not been adopted
Consensus in the group was that renewable energy options generally do not provide an attractive return
on investment even with incentives to justify the allocation of space required to generate meaningful
quantities of energy
Energy storage using battery systems has been developing rapidly and at least one forum attendee ex-
pects to see uptake of market-ready solutions within the next year Incentives are available for up to 3
of the up-front costs of these systems Batteries allow building owners to store energy during off-peak
hours at lower energy rates for use during peak hours
C L I M A T E C H A N G E
BUILD AWARENESS
Educate building managers ten-
ants and employees at all levels
about the need to build the adap-
tive capacity to manage risks in
the long term
ASSESS VULNERABILITIES
Determine the threat climate dis-
ruption poses to core building
operations supplies building and
tenant work force customers and
key services
MANAGE RISKS AND
PURSUE OPPORTUNITIES
Fortify or relocate infrastructure
plan for changes in water and en-
ergy availability or review supply
chain vulnerabilities
REVIEW RISK ASSESSMENTS
AND MAKE PLANS
Continuously review risks and
opportunities regularly using
centralized assessment tools and
develop adaptive risk manage-
ment plans
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 7
C L I M A T E C H A N G E
ENVIRONMENTAL RESILIENCE
While frequency of earthquakes is not directly linked to climate change response to earth-
quakes is certainly a factor in building resilience and an area of vulnerability in Los Angeles The most im-
portant component of building resilience in Los Angeles is the choice of structural materials Steel frame
buildings are considerably more adaptable and thereby more resilient than their concrete-framed coun-
terparts
A seismic-readiness survey of the city of Los Angeles conducted by a team of UC Berkeley researchers
revealed that a number of buildings require retrofits to meet seismic standards These buildings are pri-
marily smaller concrete structures prompting attendees to note that the least resilient buildings are fre-
quently controlled by building owners with the fewest resources both capital and staff to manage re-
quired upgrades Add the fear of triggering potentially costly Title 24 energy upgrades and compliance
with seismic standards becomes nearly impossible
One attendee suggested that seismic upgrades be linked to energy efficiency upgrades creating an op-
portunity for a deep retrofit that raises the overall value and stature of the property The challenge is en-
couraging these owners of concrete building who are frequently hesitant to incorporate major capital
improvements to comply The perception of complexity is already a significant obstacle to adoption of a
number of incentive and financing opportunities
Infographics on page 14 and 16 source ldquoWeathering the Storm Building Business Resilience to Climate Changerdquo Center for Cli-
mate and Energy Solutions Munich Re National Oceanic and Atmospheric Aon Benfield Lloydrsquos of London
Policy and regulations will con-tinue to drive local governments and the building industry to address climate change risks infrastructure needs and increased resource needs for water energy and demographic shifts Proactive owners need to stay in front of these risks and get ready to recover from natural disasters with minimum damage and downtime
- Daniele Horton Founder amp Principal
Verdani Partners
WATER EFFICIENCY SECTION DIVIDER SIDEBAR HEADER GOES HERE WATER EFFICIENCY
19
00
19
40
20
10
20
15
20
50
Colorado River
Annual Average
River Flow
NO AND LOW COST MEASURES
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 9
Drought in California and water conservation is the new norm ndash Robert Estrada Los Angeles Department of Water and Power
Source US Drought Monitor (httpdroughtmonitorunledu)
The current extreme drought in California has exposed vulnerabilities in the statersquos water storage and
delivery systems Outdated infrastructure over pumping of ground water supplies pollution of ground
water supplies by fracking and other activities conflicting municipal and community policies climate
change increased demand and limited access to alternative water sources contribute to increasing water
stress While Los Angeles has maintained level water use per capita for the past forty years a result of
successful metering programs population growth has pushed water supplies to the limit Climate change
has also greatly affected the snow pack water supplies and the underground water reserves are been
tapped at an unprecedented rate The state is facing one of its worst droughts in history and a massive
effort will be needed to find solutions to meet its water demand needs
In response to current conditions Los Angeles Mayor Eric Garcetti signed an Executive Directive on
October 14 2014 to reduce potable water use 20 by 2017 This includes removing turf landscaping at
city buildings and replacing it with native and drought-resistant plants The directive also mandates the
CURRENT CONDITIONS
LOS ANGELES WATER SUPPLY
1 Recycled
Water
11 Groundwater
37 LA Aqueduct
51 Purchased from
Metropolitan
Water District
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 0
Los Angeles Department of Water and Power (LADWP) to reduce water imports 50 by 2024
It was also discussed that the cost of water is still quite low which makes the business case for making
water efficiency upgrades more challenging Some of the attendees mentioned that a price signal would
be critical to incentivize additional water efficiency upgrades and lower water usage The LADWP rep
explained that because they are a public entity that they cannot charge for the water They can only
charge to transport the water and any rate increases need to be approved by the voters which makes the
process for increasing the fees for water very challenging
A best practice for conservation and one that has helped Los Angeles maintain the lowest consumption
for any city with a population over 1 million is metering
LADWP launched their conservation program in the late 1970s Today the LADWP provides extensive
incentive programs for water use reduction efforts including prescriptive or menu-based programs and
more flexible technical assistance programs While more involved the technical assistance programs
cover a larger variety of costs associated with pre-approved water conservation measures including
consulting fees Recently utilization of technical assistance programs has surpassed the traditional menu-
based programs although many building
owners interviewed were still unaware of
the technical assistance program
While improving the efficiency of indoor
water fixtures has been a popular and well-publicized program historically utilities have identified cooling
towers and outdoor water use as 70+ of annual building water consumption making them the target of
renewed water conservation efforts including access to reclaimed water widespread adoption of rain
sensors reverse osmosis systems and microfiltration systems
70+ of annual building water consumption -
cooling towers and outdoor water use
WATER RETROFIT OPPORTUNITIES
Install metering devices and controls
Perform ongoing distribution system
audits leak detection and repair
Install native and drought resistant
landscape
Maximize indoor plumbing fixture and
fitting efficiency (toilets urinals faucets
aerators and showerheads)
Implement a cooling tower chemical
management and water efficiency
program
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 1
WATER USAGE PER CAPITA
133 GALLONSDAYPERSON
Daily water use (LADWP) all customers Second
lowest in the nation for cities over 1 million
people NY beats LA
Source California Department of Water Resources
LADWP provides extensive prescriptive and menu-based programs as well as more flexible technical
assistance programs to incentivize water use reductions The technical assistance programs require more
upfront involvement from property managers but also cover a larger variety of costs associated with pre-
approved water conservation measures including consulting fees In recent years technical assistance
programs have increased in popularity and have surpassed the traditional menu-based programs These
ratepayer-funded programs are offered at no additional cost to residential and commercial customers By
the end of 2014 LADWP will have invested$60 million dollars in water conservation incentive programs
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 2
As water efficiency regulations become more stringent and water rates continue to rise property owners
and operators can reap immediate benefits from low-cost measures such as the installation of aerators
and quickly recoup investments in upgrading indoor water fixtures
Building managers can reduce water use by installing low-flow or ultra low-flow fixtures fittings and
equipment such as toilets and urinals that exceed current code requirements per recommendations below
Water closets max 16 gallonsflush
Urinals max 0125 to 05 gallonflush
Shower heads max 18 gallonsminute
Faucets max 10 gallonsminute
Replacement aerators max 05 gallonsminute
Metering faucets max 025 gallonscycle
To help meet the Cityrsquos aggressive water conservation goals building owners will be encouraged to move
beyond upgrades to efficient indoor water fixtures for deeper savings Cooling towers and outdoor water
use account for an average of 70 of building water consumption making them the target of increased
water conservation efforts
Reclaimed water is currently restricted to limited areas There are plans to further develop water
reclamation projects for Los Angeles however its use is limited by state health requirements and the
high cost of pumping plants and distribution facilities to deliver water from the reclamation plants to the
customers Robert Estrada of LADWP reports that the cost is an estimated million dollars per mile of
purple pipe However if Assembly Bill 2282 passes all new residential and commercial construction with
access to reclaimed water will be required to incorporate it into approved uses such as landscaping and
reclaimed water infrastructure would necessarily expand
The statersquos water supplies are at all times low underground water supplies are rapidly diminishing and
demand for water continues to grow Solutions to solve our water supply needs will involve many
different solutions from efficiency programs to lower demand a price signal and a search for new water
sources and importing water and desalinization plants
LOS ANGELES DWP
Since 1990 LA Department of Water and Power has
spent about $280 million on conservation programs
METROPOLITAN WATER DISTRICT
Metropolitan provides rebates on water efficient
fixtures financial assistance for water reduction
projects and incentives programs
MAYORrsquoS DIRECTIVE TO CUT WATER USE
(LA Times article) LA Mayor Eric Garcetti signed an
executive directive to further cut potable water use
20X2020 WATER CONSERVATION PLAN
Statewide plan enacted in 2010 to reduce water
consumption by 20 by 2020
SENATE BILL SB X7-7 2009
This Senate bill requires all water suppliers to increase
water efficiency
WATERSENSE
A recognized seal of approval for water efficiency
similar to ENERGY STAR
DOE WATER EFFICIENCY BMPS
Water Efficiency Best Management Practices from the
US Department of Energy
CONCLUSION RESOURCES
W A T E R E F F I C I E N C Y
E N E R G Y E F F I C I E N C Y
RENEWABLE
HYDRO GEOTHERMAL
WIND SOLAR
BIO-DIESEL BIO-MASS
EFFICIENCY
CO-GENERATION
EFFICIENT APPLIANCES EFFICIENT LIGHTING
EFFICIENT VEHICLES EFFICIENT BUILDINGS
INTELLIGENT POWER NETWORKS DECENTRALIZED GRIDS
CONSERVATION
GREY WATER RECYCLING ALTERNATIVE TRANSPORTATION
ENERGY EFFICIENCY RETROFIT STRATEGY
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 4
Many retrofits occur on a piecemeal basis as incentives become available or contractors provide upgrade
recommendations However many buildings especially those that are considering aesthetic or structural
improvements may benefit from a more comprehensive deep energy retrofit
The key components of a deep retrofit process are ongoing energy management assembling an
interdisciplinary team robust analysis and measurement and verification This process is not linear
phases may overlap or go on concurrently and will vary based on factors such as ownership structure
scale of building project delivery method and building complexity
While net zero was once considered a faraway goal for only the most technologically advanced buildings
the National Renewable Energy Laboratory found that there is now the technical potential for over 47
percent of existing US commercial building floor space to achieve net zero energy using existing
technologies and design processes
Net zero may seem unachievable but it can be done using the same principles as effective deep retrofits The
process starts with a solid understanding of baseline operations and expenditures and benefits from
extensive modeling and cost-benefit analysis to optimize systems choice for highest return on investment
There is considerable guidance within the market on how to retrofit buildings with sustainable
technologies to improve their environmental performance A significant barrier however to carrying out
sustainable retrofits is financing A number of financing mechanisms exist and each scenario is unique
Most building owners will choose to use
their own capital when available to avoid
time-intensive administration activities
Other traditional financing options
include loans and bond programs as well
as increases to operating fees or capital leases Building owners and managers can also take advantage of
funding improvements through bill savings (as with performance contracting with Energy Service
Contractors or ESCOrsquos) PACE bonds energy service agreements on-bill financing incentives and rebates
As utility rates continue to rise the incentive to implement energy efficiency projects has gone from cost
savings to cost avoidance This challenge is coupled with how to finance retrofit projects and what to do
once incentivized equipment has been installed
RETROFIT STRATEGY
E N E R G Y E F F I C I E N C Y
21+ Utilities represent an average of 21 of
total building expenses
ndash2012 BOMA Exchange Report
ENERGY RETROFIT OPPORTUNITIES
Monitor meter and commission main
building systems
Maximize heating and cooling efficiencies
and install variable frequency drives on
equipment
Lighting upgrades and controls (efficient
lights daylight harvesting motion sensors
etc)
Install a building automation system
invest in DDC wireless controls energy
optimization software and demand
response infrastructure
Retrofit main building systems chillers
cooling towers boilers fan motors
Building envelope Seal windows install
window films retrofit windows with
higher R-Value
Invest in on-site generation and
renewable Energy systems (fuel cell wind
geothermal and solar energy)
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
CLIMATE CHANGE RESILIENCE AND ADAPTATION
38 Experiencing
Impacts Now
17 Within
5 Years
7 Beyond
10 Years
31 Donrsquot Know
No Information
7 Within
10 Years
Most Companies
Experience
or Expect
Climate Impacts
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 5
RESILIENCE amp ADAPTATION
In 2013 and 2014 the conversation in the market transitioned from one of potential impacts of climate
change to the realities of adaptation and resilience The EPA released a Climate Adaptation Plan in Febru-
ary 2013 Grosvenor released a Resilient Cities Research Report and the Urban Land Institute launched
an Urban Resilience program and hosted their first annual Building the Resilient City conference
This shift in focus to resilience in the face of adversity comes after two decades of progressively intense
extreme weather events and higher mean temperatures In order to effectively support business opera-
tions our buildings need to be ready to bounce back from disaster with minimum damage and downtime
in addition to absorbing overall increases in temperature
This April the Grosvenor real estate company released a report detailing the findings of their analysis of
the resilience of 50 international cities They defined resilience as a cityrsquos ability to ldquopreserve capital val-
ues and generate sustainable rental income in the long term absorb shocks like natural disasterrdquo and
ldquomaintain their output of goods and services and continue to provide their inhabitants with a good quality
of life according to the standards of the timerdquo
Using this methodology Los Angeles was ranked 21 out of the 50 evaluated cities Although LA earned a
high score for adaptability other factors like rising sea levels earthquakes limited access to potable wa-
ter and socioeconomic stressors increase its vulnerability
Governments arenrsquot the only entity working on resiliency plans Insurance companies are evaluating their
exposure to risk and forward-thinking building owners are drafting climate adaptation plans to catalog
and prevent predictable system failures in addition to developing emergency preparedness and disaster
plans Such plans address the incremental changes in availability of water increasing temperature and
other environmental and social pressures arising from climate change
Roundtable attendees were most focused on how buildings can contribute to grid reliability through load
shifting on-site power generation demand response programs seismic retrofits and voluntary resilience
ratings to lead the market
Resilience increases when cities have more adaptive capacity and decreases when they are more vulnerable
- Resilient Cities Research Report
C L I M A T E C H A N G E
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 6
WATER ENERGY amp ENVIRONMENT MANAGING CLIMATE RISKS
WATER RESILIENCE
The current extreme drought conditions in California have exposed vulnerabilities in the statersquos
water storage and delivery systems Outdated infrastructure inability to increase water rates overpump-
ing and salination of groundwater sources conflicting municipal and community policies and limited ac-
cess to alternative water sources contribute to increasing water stress While Los Angeles has maintained
level water use per capita since the 70rsquos a result of successful metering programs population growth has
pushed water supplies to the limit
ENERGY RESILIENCE
Reducing overall energy usage especially in existing buildings three years or older is the first and
best line of defense in grid reliability Because peak usage times are those times when the grid experienc-
es the most demand up to 40 of a buildingrsquos energy costs comes from peak load energy charges De-
mand response energy storage and on-site generation can effectively reduce costs associated with the
purchase of grid-source peak energy
Demand response programs commonly referred to as Flex Alerts in California have increased in availa-
bility and participation across residential and commercial sectors throughout the state As one participant
put it ldquodemand response is becoming a part of LADWPrsquos DNArdquo Industry experts predict that demand
response programs will become mandatory within the next 10-15 years if not sooner and recommend
that building owners consider capturing the benefits of voluntary participation while it is available
On-site generation using fuel cells to reduce peak grid-source energy use was foremost on participantsrsquo
minds They cited lack of space as the primary reason more on-site generation has not been adopted
Consensus in the group was that renewable energy options generally do not provide an attractive return
on investment even with incentives to justify the allocation of space required to generate meaningful
quantities of energy
Energy storage using battery systems has been developing rapidly and at least one forum attendee ex-
pects to see uptake of market-ready solutions within the next year Incentives are available for up to 3
of the up-front costs of these systems Batteries allow building owners to store energy during off-peak
hours at lower energy rates for use during peak hours
C L I M A T E C H A N G E
BUILD AWARENESS
Educate building managers ten-
ants and employees at all levels
about the need to build the adap-
tive capacity to manage risks in
the long term
ASSESS VULNERABILITIES
Determine the threat climate dis-
ruption poses to core building
operations supplies building and
tenant work force customers and
key services
MANAGE RISKS AND
PURSUE OPPORTUNITIES
Fortify or relocate infrastructure
plan for changes in water and en-
ergy availability or review supply
chain vulnerabilities
REVIEW RISK ASSESSMENTS
AND MAKE PLANS
Continuously review risks and
opportunities regularly using
centralized assessment tools and
develop adaptive risk manage-
ment plans
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 7
C L I M A T E C H A N G E
ENVIRONMENTAL RESILIENCE
While frequency of earthquakes is not directly linked to climate change response to earth-
quakes is certainly a factor in building resilience and an area of vulnerability in Los Angeles The most im-
portant component of building resilience in Los Angeles is the choice of structural materials Steel frame
buildings are considerably more adaptable and thereby more resilient than their concrete-framed coun-
terparts
A seismic-readiness survey of the city of Los Angeles conducted by a team of UC Berkeley researchers
revealed that a number of buildings require retrofits to meet seismic standards These buildings are pri-
marily smaller concrete structures prompting attendees to note that the least resilient buildings are fre-
quently controlled by building owners with the fewest resources both capital and staff to manage re-
quired upgrades Add the fear of triggering potentially costly Title 24 energy upgrades and compliance
with seismic standards becomes nearly impossible
One attendee suggested that seismic upgrades be linked to energy efficiency upgrades creating an op-
portunity for a deep retrofit that raises the overall value and stature of the property The challenge is en-
couraging these owners of concrete building who are frequently hesitant to incorporate major capital
improvements to comply The perception of complexity is already a significant obstacle to adoption of a
number of incentive and financing opportunities
Infographics on page 14 and 16 source ldquoWeathering the Storm Building Business Resilience to Climate Changerdquo Center for Cli-
mate and Energy Solutions Munich Re National Oceanic and Atmospheric Aon Benfield Lloydrsquos of London
Policy and regulations will con-tinue to drive local governments and the building industry to address climate change risks infrastructure needs and increased resource needs for water energy and demographic shifts Proactive owners need to stay in front of these risks and get ready to recover from natural disasters with minimum damage and downtime
- Daniele Horton Founder amp Principal
Verdani Partners
WATER EFFICIENCY SECTION DIVIDER SIDEBAR HEADER GOES HERE WATER EFFICIENCY
19
00
19
40
20
10
20
15
20
50
Colorado River
Annual Average
River Flow
NO AND LOW COST MEASURES
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 9
Drought in California and water conservation is the new norm ndash Robert Estrada Los Angeles Department of Water and Power
Source US Drought Monitor (httpdroughtmonitorunledu)
The current extreme drought in California has exposed vulnerabilities in the statersquos water storage and
delivery systems Outdated infrastructure over pumping of ground water supplies pollution of ground
water supplies by fracking and other activities conflicting municipal and community policies climate
change increased demand and limited access to alternative water sources contribute to increasing water
stress While Los Angeles has maintained level water use per capita for the past forty years a result of
successful metering programs population growth has pushed water supplies to the limit Climate change
has also greatly affected the snow pack water supplies and the underground water reserves are been
tapped at an unprecedented rate The state is facing one of its worst droughts in history and a massive
effort will be needed to find solutions to meet its water demand needs
In response to current conditions Los Angeles Mayor Eric Garcetti signed an Executive Directive on
October 14 2014 to reduce potable water use 20 by 2017 This includes removing turf landscaping at
city buildings and replacing it with native and drought-resistant plants The directive also mandates the
CURRENT CONDITIONS
LOS ANGELES WATER SUPPLY
1 Recycled
Water
11 Groundwater
37 LA Aqueduct
51 Purchased from
Metropolitan
Water District
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 0
Los Angeles Department of Water and Power (LADWP) to reduce water imports 50 by 2024
It was also discussed that the cost of water is still quite low which makes the business case for making
water efficiency upgrades more challenging Some of the attendees mentioned that a price signal would
be critical to incentivize additional water efficiency upgrades and lower water usage The LADWP rep
explained that because they are a public entity that they cannot charge for the water They can only
charge to transport the water and any rate increases need to be approved by the voters which makes the
process for increasing the fees for water very challenging
A best practice for conservation and one that has helped Los Angeles maintain the lowest consumption
for any city with a population over 1 million is metering
LADWP launched their conservation program in the late 1970s Today the LADWP provides extensive
incentive programs for water use reduction efforts including prescriptive or menu-based programs and
more flexible technical assistance programs While more involved the technical assistance programs
cover a larger variety of costs associated with pre-approved water conservation measures including
consulting fees Recently utilization of technical assistance programs has surpassed the traditional menu-
based programs although many building
owners interviewed were still unaware of
the technical assistance program
While improving the efficiency of indoor
water fixtures has been a popular and well-publicized program historically utilities have identified cooling
towers and outdoor water use as 70+ of annual building water consumption making them the target of
renewed water conservation efforts including access to reclaimed water widespread adoption of rain
sensors reverse osmosis systems and microfiltration systems
70+ of annual building water consumption -
cooling towers and outdoor water use
WATER RETROFIT OPPORTUNITIES
Install metering devices and controls
Perform ongoing distribution system
audits leak detection and repair
Install native and drought resistant
landscape
Maximize indoor plumbing fixture and
fitting efficiency (toilets urinals faucets
aerators and showerheads)
Implement a cooling tower chemical
management and water efficiency
program
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 1
WATER USAGE PER CAPITA
133 GALLONSDAYPERSON
Daily water use (LADWP) all customers Second
lowest in the nation for cities over 1 million
people NY beats LA
Source California Department of Water Resources
LADWP provides extensive prescriptive and menu-based programs as well as more flexible technical
assistance programs to incentivize water use reductions The technical assistance programs require more
upfront involvement from property managers but also cover a larger variety of costs associated with pre-
approved water conservation measures including consulting fees In recent years technical assistance
programs have increased in popularity and have surpassed the traditional menu-based programs These
ratepayer-funded programs are offered at no additional cost to residential and commercial customers By
the end of 2014 LADWP will have invested$60 million dollars in water conservation incentive programs
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 2
As water efficiency regulations become more stringent and water rates continue to rise property owners
and operators can reap immediate benefits from low-cost measures such as the installation of aerators
and quickly recoup investments in upgrading indoor water fixtures
Building managers can reduce water use by installing low-flow or ultra low-flow fixtures fittings and
equipment such as toilets and urinals that exceed current code requirements per recommendations below
Water closets max 16 gallonsflush
Urinals max 0125 to 05 gallonflush
Shower heads max 18 gallonsminute
Faucets max 10 gallonsminute
Replacement aerators max 05 gallonsminute
Metering faucets max 025 gallonscycle
To help meet the Cityrsquos aggressive water conservation goals building owners will be encouraged to move
beyond upgrades to efficient indoor water fixtures for deeper savings Cooling towers and outdoor water
use account for an average of 70 of building water consumption making them the target of increased
water conservation efforts
Reclaimed water is currently restricted to limited areas There are plans to further develop water
reclamation projects for Los Angeles however its use is limited by state health requirements and the
high cost of pumping plants and distribution facilities to deliver water from the reclamation plants to the
customers Robert Estrada of LADWP reports that the cost is an estimated million dollars per mile of
purple pipe However if Assembly Bill 2282 passes all new residential and commercial construction with
access to reclaimed water will be required to incorporate it into approved uses such as landscaping and
reclaimed water infrastructure would necessarily expand
The statersquos water supplies are at all times low underground water supplies are rapidly diminishing and
demand for water continues to grow Solutions to solve our water supply needs will involve many
different solutions from efficiency programs to lower demand a price signal and a search for new water
sources and importing water and desalinization plants
LOS ANGELES DWP
Since 1990 LA Department of Water and Power has
spent about $280 million on conservation programs
METROPOLITAN WATER DISTRICT
Metropolitan provides rebates on water efficient
fixtures financial assistance for water reduction
projects and incentives programs
MAYORrsquoS DIRECTIVE TO CUT WATER USE
(LA Times article) LA Mayor Eric Garcetti signed an
executive directive to further cut potable water use
20X2020 WATER CONSERVATION PLAN
Statewide plan enacted in 2010 to reduce water
consumption by 20 by 2020
SENATE BILL SB X7-7 2009
This Senate bill requires all water suppliers to increase
water efficiency
WATERSENSE
A recognized seal of approval for water efficiency
similar to ENERGY STAR
DOE WATER EFFICIENCY BMPS
Water Efficiency Best Management Practices from the
US Department of Energy
CONCLUSION RESOURCES
W A T E R E F F I C I E N C Y
E N E R G Y E F F I C I E N C Y
RENEWABLE
HYDRO GEOTHERMAL
WIND SOLAR
BIO-DIESEL BIO-MASS
EFFICIENCY
CO-GENERATION
EFFICIENT APPLIANCES EFFICIENT LIGHTING
EFFICIENT VEHICLES EFFICIENT BUILDINGS
INTELLIGENT POWER NETWORKS DECENTRALIZED GRIDS
CONSERVATION
GREY WATER RECYCLING ALTERNATIVE TRANSPORTATION
ENERGY EFFICIENCY RETROFIT STRATEGY
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 4
Many retrofits occur on a piecemeal basis as incentives become available or contractors provide upgrade
recommendations However many buildings especially those that are considering aesthetic or structural
improvements may benefit from a more comprehensive deep energy retrofit
The key components of a deep retrofit process are ongoing energy management assembling an
interdisciplinary team robust analysis and measurement and verification This process is not linear
phases may overlap or go on concurrently and will vary based on factors such as ownership structure
scale of building project delivery method and building complexity
While net zero was once considered a faraway goal for only the most technologically advanced buildings
the National Renewable Energy Laboratory found that there is now the technical potential for over 47
percent of existing US commercial building floor space to achieve net zero energy using existing
technologies and design processes
Net zero may seem unachievable but it can be done using the same principles as effective deep retrofits The
process starts with a solid understanding of baseline operations and expenditures and benefits from
extensive modeling and cost-benefit analysis to optimize systems choice for highest return on investment
There is considerable guidance within the market on how to retrofit buildings with sustainable
technologies to improve their environmental performance A significant barrier however to carrying out
sustainable retrofits is financing A number of financing mechanisms exist and each scenario is unique
Most building owners will choose to use
their own capital when available to avoid
time-intensive administration activities
Other traditional financing options
include loans and bond programs as well
as increases to operating fees or capital leases Building owners and managers can also take advantage of
funding improvements through bill savings (as with performance contracting with Energy Service
Contractors or ESCOrsquos) PACE bonds energy service agreements on-bill financing incentives and rebates
As utility rates continue to rise the incentive to implement energy efficiency projects has gone from cost
savings to cost avoidance This challenge is coupled with how to finance retrofit projects and what to do
once incentivized equipment has been installed
RETROFIT STRATEGY
E N E R G Y E F F I C I E N C Y
21+ Utilities represent an average of 21 of
total building expenses
ndash2012 BOMA Exchange Report
ENERGY RETROFIT OPPORTUNITIES
Monitor meter and commission main
building systems
Maximize heating and cooling efficiencies
and install variable frequency drives on
equipment
Lighting upgrades and controls (efficient
lights daylight harvesting motion sensors
etc)
Install a building automation system
invest in DDC wireless controls energy
optimization software and demand
response infrastructure
Retrofit main building systems chillers
cooling towers boilers fan motors
Building envelope Seal windows install
window films retrofit windows with
higher R-Value
Invest in on-site generation and
renewable Energy systems (fuel cell wind
geothermal and solar energy)
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 5
RESILIENCE amp ADAPTATION
In 2013 and 2014 the conversation in the market transitioned from one of potential impacts of climate
change to the realities of adaptation and resilience The EPA released a Climate Adaptation Plan in Febru-
ary 2013 Grosvenor released a Resilient Cities Research Report and the Urban Land Institute launched
an Urban Resilience program and hosted their first annual Building the Resilient City conference
This shift in focus to resilience in the face of adversity comes after two decades of progressively intense
extreme weather events and higher mean temperatures In order to effectively support business opera-
tions our buildings need to be ready to bounce back from disaster with minimum damage and downtime
in addition to absorbing overall increases in temperature
This April the Grosvenor real estate company released a report detailing the findings of their analysis of
the resilience of 50 international cities They defined resilience as a cityrsquos ability to ldquopreserve capital val-
ues and generate sustainable rental income in the long term absorb shocks like natural disasterrdquo and
ldquomaintain their output of goods and services and continue to provide their inhabitants with a good quality
of life according to the standards of the timerdquo
Using this methodology Los Angeles was ranked 21 out of the 50 evaluated cities Although LA earned a
high score for adaptability other factors like rising sea levels earthquakes limited access to potable wa-
ter and socioeconomic stressors increase its vulnerability
Governments arenrsquot the only entity working on resiliency plans Insurance companies are evaluating their
exposure to risk and forward-thinking building owners are drafting climate adaptation plans to catalog
and prevent predictable system failures in addition to developing emergency preparedness and disaster
plans Such plans address the incremental changes in availability of water increasing temperature and
other environmental and social pressures arising from climate change
Roundtable attendees were most focused on how buildings can contribute to grid reliability through load
shifting on-site power generation demand response programs seismic retrofits and voluntary resilience
ratings to lead the market
Resilience increases when cities have more adaptive capacity and decreases when they are more vulnerable
- Resilient Cities Research Report
C L I M A T E C H A N G E
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 6
WATER ENERGY amp ENVIRONMENT MANAGING CLIMATE RISKS
WATER RESILIENCE
The current extreme drought conditions in California have exposed vulnerabilities in the statersquos
water storage and delivery systems Outdated infrastructure inability to increase water rates overpump-
ing and salination of groundwater sources conflicting municipal and community policies and limited ac-
cess to alternative water sources contribute to increasing water stress While Los Angeles has maintained
level water use per capita since the 70rsquos a result of successful metering programs population growth has
pushed water supplies to the limit
ENERGY RESILIENCE
Reducing overall energy usage especially in existing buildings three years or older is the first and
best line of defense in grid reliability Because peak usage times are those times when the grid experienc-
es the most demand up to 40 of a buildingrsquos energy costs comes from peak load energy charges De-
mand response energy storage and on-site generation can effectively reduce costs associated with the
purchase of grid-source peak energy
Demand response programs commonly referred to as Flex Alerts in California have increased in availa-
bility and participation across residential and commercial sectors throughout the state As one participant
put it ldquodemand response is becoming a part of LADWPrsquos DNArdquo Industry experts predict that demand
response programs will become mandatory within the next 10-15 years if not sooner and recommend
that building owners consider capturing the benefits of voluntary participation while it is available
On-site generation using fuel cells to reduce peak grid-source energy use was foremost on participantsrsquo
minds They cited lack of space as the primary reason more on-site generation has not been adopted
Consensus in the group was that renewable energy options generally do not provide an attractive return
on investment even with incentives to justify the allocation of space required to generate meaningful
quantities of energy
Energy storage using battery systems has been developing rapidly and at least one forum attendee ex-
pects to see uptake of market-ready solutions within the next year Incentives are available for up to 3
of the up-front costs of these systems Batteries allow building owners to store energy during off-peak
hours at lower energy rates for use during peak hours
C L I M A T E C H A N G E
BUILD AWARENESS
Educate building managers ten-
ants and employees at all levels
about the need to build the adap-
tive capacity to manage risks in
the long term
ASSESS VULNERABILITIES
Determine the threat climate dis-
ruption poses to core building
operations supplies building and
tenant work force customers and
key services
MANAGE RISKS AND
PURSUE OPPORTUNITIES
Fortify or relocate infrastructure
plan for changes in water and en-
ergy availability or review supply
chain vulnerabilities
REVIEW RISK ASSESSMENTS
AND MAKE PLANS
Continuously review risks and
opportunities regularly using
centralized assessment tools and
develop adaptive risk manage-
ment plans
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 7
C L I M A T E C H A N G E
ENVIRONMENTAL RESILIENCE
While frequency of earthquakes is not directly linked to climate change response to earth-
quakes is certainly a factor in building resilience and an area of vulnerability in Los Angeles The most im-
portant component of building resilience in Los Angeles is the choice of structural materials Steel frame
buildings are considerably more adaptable and thereby more resilient than their concrete-framed coun-
terparts
A seismic-readiness survey of the city of Los Angeles conducted by a team of UC Berkeley researchers
revealed that a number of buildings require retrofits to meet seismic standards These buildings are pri-
marily smaller concrete structures prompting attendees to note that the least resilient buildings are fre-
quently controlled by building owners with the fewest resources both capital and staff to manage re-
quired upgrades Add the fear of triggering potentially costly Title 24 energy upgrades and compliance
with seismic standards becomes nearly impossible
One attendee suggested that seismic upgrades be linked to energy efficiency upgrades creating an op-
portunity for a deep retrofit that raises the overall value and stature of the property The challenge is en-
couraging these owners of concrete building who are frequently hesitant to incorporate major capital
improvements to comply The perception of complexity is already a significant obstacle to adoption of a
number of incentive and financing opportunities
Infographics on page 14 and 16 source ldquoWeathering the Storm Building Business Resilience to Climate Changerdquo Center for Cli-
mate and Energy Solutions Munich Re National Oceanic and Atmospheric Aon Benfield Lloydrsquos of London
Policy and regulations will con-tinue to drive local governments and the building industry to address climate change risks infrastructure needs and increased resource needs for water energy and demographic shifts Proactive owners need to stay in front of these risks and get ready to recover from natural disasters with minimum damage and downtime
- Daniele Horton Founder amp Principal
Verdani Partners
WATER EFFICIENCY SECTION DIVIDER SIDEBAR HEADER GOES HERE WATER EFFICIENCY
19
00
19
40
20
10
20
15
20
50
Colorado River
Annual Average
River Flow
NO AND LOW COST MEASURES
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 9
Drought in California and water conservation is the new norm ndash Robert Estrada Los Angeles Department of Water and Power
Source US Drought Monitor (httpdroughtmonitorunledu)
The current extreme drought in California has exposed vulnerabilities in the statersquos water storage and
delivery systems Outdated infrastructure over pumping of ground water supplies pollution of ground
water supplies by fracking and other activities conflicting municipal and community policies climate
change increased demand and limited access to alternative water sources contribute to increasing water
stress While Los Angeles has maintained level water use per capita for the past forty years a result of
successful metering programs population growth has pushed water supplies to the limit Climate change
has also greatly affected the snow pack water supplies and the underground water reserves are been
tapped at an unprecedented rate The state is facing one of its worst droughts in history and a massive
effort will be needed to find solutions to meet its water demand needs
In response to current conditions Los Angeles Mayor Eric Garcetti signed an Executive Directive on
October 14 2014 to reduce potable water use 20 by 2017 This includes removing turf landscaping at
city buildings and replacing it with native and drought-resistant plants The directive also mandates the
CURRENT CONDITIONS
LOS ANGELES WATER SUPPLY
1 Recycled
Water
11 Groundwater
37 LA Aqueduct
51 Purchased from
Metropolitan
Water District
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 0
Los Angeles Department of Water and Power (LADWP) to reduce water imports 50 by 2024
It was also discussed that the cost of water is still quite low which makes the business case for making
water efficiency upgrades more challenging Some of the attendees mentioned that a price signal would
be critical to incentivize additional water efficiency upgrades and lower water usage The LADWP rep
explained that because they are a public entity that they cannot charge for the water They can only
charge to transport the water and any rate increases need to be approved by the voters which makes the
process for increasing the fees for water very challenging
A best practice for conservation and one that has helped Los Angeles maintain the lowest consumption
for any city with a population over 1 million is metering
LADWP launched their conservation program in the late 1970s Today the LADWP provides extensive
incentive programs for water use reduction efforts including prescriptive or menu-based programs and
more flexible technical assistance programs While more involved the technical assistance programs
cover a larger variety of costs associated with pre-approved water conservation measures including
consulting fees Recently utilization of technical assistance programs has surpassed the traditional menu-
based programs although many building
owners interviewed were still unaware of
the technical assistance program
While improving the efficiency of indoor
water fixtures has been a popular and well-publicized program historically utilities have identified cooling
towers and outdoor water use as 70+ of annual building water consumption making them the target of
renewed water conservation efforts including access to reclaimed water widespread adoption of rain
sensors reverse osmosis systems and microfiltration systems
70+ of annual building water consumption -
cooling towers and outdoor water use
WATER RETROFIT OPPORTUNITIES
Install metering devices and controls
Perform ongoing distribution system
audits leak detection and repair
Install native and drought resistant
landscape
Maximize indoor plumbing fixture and
fitting efficiency (toilets urinals faucets
aerators and showerheads)
Implement a cooling tower chemical
management and water efficiency
program
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 1
WATER USAGE PER CAPITA
133 GALLONSDAYPERSON
Daily water use (LADWP) all customers Second
lowest in the nation for cities over 1 million
people NY beats LA
Source California Department of Water Resources
LADWP provides extensive prescriptive and menu-based programs as well as more flexible technical
assistance programs to incentivize water use reductions The technical assistance programs require more
upfront involvement from property managers but also cover a larger variety of costs associated with pre-
approved water conservation measures including consulting fees In recent years technical assistance
programs have increased in popularity and have surpassed the traditional menu-based programs These
ratepayer-funded programs are offered at no additional cost to residential and commercial customers By
the end of 2014 LADWP will have invested$60 million dollars in water conservation incentive programs
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 2
As water efficiency regulations become more stringent and water rates continue to rise property owners
and operators can reap immediate benefits from low-cost measures such as the installation of aerators
and quickly recoup investments in upgrading indoor water fixtures
Building managers can reduce water use by installing low-flow or ultra low-flow fixtures fittings and
equipment such as toilets and urinals that exceed current code requirements per recommendations below
Water closets max 16 gallonsflush
Urinals max 0125 to 05 gallonflush
Shower heads max 18 gallonsminute
Faucets max 10 gallonsminute
Replacement aerators max 05 gallonsminute
Metering faucets max 025 gallonscycle
To help meet the Cityrsquos aggressive water conservation goals building owners will be encouraged to move
beyond upgrades to efficient indoor water fixtures for deeper savings Cooling towers and outdoor water
use account for an average of 70 of building water consumption making them the target of increased
water conservation efforts
Reclaimed water is currently restricted to limited areas There are plans to further develop water
reclamation projects for Los Angeles however its use is limited by state health requirements and the
high cost of pumping plants and distribution facilities to deliver water from the reclamation plants to the
customers Robert Estrada of LADWP reports that the cost is an estimated million dollars per mile of
purple pipe However if Assembly Bill 2282 passes all new residential and commercial construction with
access to reclaimed water will be required to incorporate it into approved uses such as landscaping and
reclaimed water infrastructure would necessarily expand
The statersquos water supplies are at all times low underground water supplies are rapidly diminishing and
demand for water continues to grow Solutions to solve our water supply needs will involve many
different solutions from efficiency programs to lower demand a price signal and a search for new water
sources and importing water and desalinization plants
LOS ANGELES DWP
Since 1990 LA Department of Water and Power has
spent about $280 million on conservation programs
METROPOLITAN WATER DISTRICT
Metropolitan provides rebates on water efficient
fixtures financial assistance for water reduction
projects and incentives programs
MAYORrsquoS DIRECTIVE TO CUT WATER USE
(LA Times article) LA Mayor Eric Garcetti signed an
executive directive to further cut potable water use
20X2020 WATER CONSERVATION PLAN
Statewide plan enacted in 2010 to reduce water
consumption by 20 by 2020
SENATE BILL SB X7-7 2009
This Senate bill requires all water suppliers to increase
water efficiency
WATERSENSE
A recognized seal of approval for water efficiency
similar to ENERGY STAR
DOE WATER EFFICIENCY BMPS
Water Efficiency Best Management Practices from the
US Department of Energy
CONCLUSION RESOURCES
W A T E R E F F I C I E N C Y
E N E R G Y E F F I C I E N C Y
RENEWABLE
HYDRO GEOTHERMAL
WIND SOLAR
BIO-DIESEL BIO-MASS
EFFICIENCY
CO-GENERATION
EFFICIENT APPLIANCES EFFICIENT LIGHTING
EFFICIENT VEHICLES EFFICIENT BUILDINGS
INTELLIGENT POWER NETWORKS DECENTRALIZED GRIDS
CONSERVATION
GREY WATER RECYCLING ALTERNATIVE TRANSPORTATION
ENERGY EFFICIENCY RETROFIT STRATEGY
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 4
Many retrofits occur on a piecemeal basis as incentives become available or contractors provide upgrade
recommendations However many buildings especially those that are considering aesthetic or structural
improvements may benefit from a more comprehensive deep energy retrofit
The key components of a deep retrofit process are ongoing energy management assembling an
interdisciplinary team robust analysis and measurement and verification This process is not linear
phases may overlap or go on concurrently and will vary based on factors such as ownership structure
scale of building project delivery method and building complexity
While net zero was once considered a faraway goal for only the most technologically advanced buildings
the National Renewable Energy Laboratory found that there is now the technical potential for over 47
percent of existing US commercial building floor space to achieve net zero energy using existing
technologies and design processes
Net zero may seem unachievable but it can be done using the same principles as effective deep retrofits The
process starts with a solid understanding of baseline operations and expenditures and benefits from
extensive modeling and cost-benefit analysis to optimize systems choice for highest return on investment
There is considerable guidance within the market on how to retrofit buildings with sustainable
technologies to improve their environmental performance A significant barrier however to carrying out
sustainable retrofits is financing A number of financing mechanisms exist and each scenario is unique
Most building owners will choose to use
their own capital when available to avoid
time-intensive administration activities
Other traditional financing options
include loans and bond programs as well
as increases to operating fees or capital leases Building owners and managers can also take advantage of
funding improvements through bill savings (as with performance contracting with Energy Service
Contractors or ESCOrsquos) PACE bonds energy service agreements on-bill financing incentives and rebates
As utility rates continue to rise the incentive to implement energy efficiency projects has gone from cost
savings to cost avoidance This challenge is coupled with how to finance retrofit projects and what to do
once incentivized equipment has been installed
RETROFIT STRATEGY
E N E R G Y E F F I C I E N C Y
21+ Utilities represent an average of 21 of
total building expenses
ndash2012 BOMA Exchange Report
ENERGY RETROFIT OPPORTUNITIES
Monitor meter and commission main
building systems
Maximize heating and cooling efficiencies
and install variable frequency drives on
equipment
Lighting upgrades and controls (efficient
lights daylight harvesting motion sensors
etc)
Install a building automation system
invest in DDC wireless controls energy
optimization software and demand
response infrastructure
Retrofit main building systems chillers
cooling towers boilers fan motors
Building envelope Seal windows install
window films retrofit windows with
higher R-Value
Invest in on-site generation and
renewable Energy systems (fuel cell wind
geothermal and solar energy)
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 6
WATER ENERGY amp ENVIRONMENT MANAGING CLIMATE RISKS
WATER RESILIENCE
The current extreme drought conditions in California have exposed vulnerabilities in the statersquos
water storage and delivery systems Outdated infrastructure inability to increase water rates overpump-
ing and salination of groundwater sources conflicting municipal and community policies and limited ac-
cess to alternative water sources contribute to increasing water stress While Los Angeles has maintained
level water use per capita since the 70rsquos a result of successful metering programs population growth has
pushed water supplies to the limit
ENERGY RESILIENCE
Reducing overall energy usage especially in existing buildings three years or older is the first and
best line of defense in grid reliability Because peak usage times are those times when the grid experienc-
es the most demand up to 40 of a buildingrsquos energy costs comes from peak load energy charges De-
mand response energy storage and on-site generation can effectively reduce costs associated with the
purchase of grid-source peak energy
Demand response programs commonly referred to as Flex Alerts in California have increased in availa-
bility and participation across residential and commercial sectors throughout the state As one participant
put it ldquodemand response is becoming a part of LADWPrsquos DNArdquo Industry experts predict that demand
response programs will become mandatory within the next 10-15 years if not sooner and recommend
that building owners consider capturing the benefits of voluntary participation while it is available
On-site generation using fuel cells to reduce peak grid-source energy use was foremost on participantsrsquo
minds They cited lack of space as the primary reason more on-site generation has not been adopted
Consensus in the group was that renewable energy options generally do not provide an attractive return
on investment even with incentives to justify the allocation of space required to generate meaningful
quantities of energy
Energy storage using battery systems has been developing rapidly and at least one forum attendee ex-
pects to see uptake of market-ready solutions within the next year Incentives are available for up to 3
of the up-front costs of these systems Batteries allow building owners to store energy during off-peak
hours at lower energy rates for use during peak hours
C L I M A T E C H A N G E
BUILD AWARENESS
Educate building managers ten-
ants and employees at all levels
about the need to build the adap-
tive capacity to manage risks in
the long term
ASSESS VULNERABILITIES
Determine the threat climate dis-
ruption poses to core building
operations supplies building and
tenant work force customers and
key services
MANAGE RISKS AND
PURSUE OPPORTUNITIES
Fortify or relocate infrastructure
plan for changes in water and en-
ergy availability or review supply
chain vulnerabilities
REVIEW RISK ASSESSMENTS
AND MAKE PLANS
Continuously review risks and
opportunities regularly using
centralized assessment tools and
develop adaptive risk manage-
ment plans
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 7
C L I M A T E C H A N G E
ENVIRONMENTAL RESILIENCE
While frequency of earthquakes is not directly linked to climate change response to earth-
quakes is certainly a factor in building resilience and an area of vulnerability in Los Angeles The most im-
portant component of building resilience in Los Angeles is the choice of structural materials Steel frame
buildings are considerably more adaptable and thereby more resilient than their concrete-framed coun-
terparts
A seismic-readiness survey of the city of Los Angeles conducted by a team of UC Berkeley researchers
revealed that a number of buildings require retrofits to meet seismic standards These buildings are pri-
marily smaller concrete structures prompting attendees to note that the least resilient buildings are fre-
quently controlled by building owners with the fewest resources both capital and staff to manage re-
quired upgrades Add the fear of triggering potentially costly Title 24 energy upgrades and compliance
with seismic standards becomes nearly impossible
One attendee suggested that seismic upgrades be linked to energy efficiency upgrades creating an op-
portunity for a deep retrofit that raises the overall value and stature of the property The challenge is en-
couraging these owners of concrete building who are frequently hesitant to incorporate major capital
improvements to comply The perception of complexity is already a significant obstacle to adoption of a
number of incentive and financing opportunities
Infographics on page 14 and 16 source ldquoWeathering the Storm Building Business Resilience to Climate Changerdquo Center for Cli-
mate and Energy Solutions Munich Re National Oceanic and Atmospheric Aon Benfield Lloydrsquos of London
Policy and regulations will con-tinue to drive local governments and the building industry to address climate change risks infrastructure needs and increased resource needs for water energy and demographic shifts Proactive owners need to stay in front of these risks and get ready to recover from natural disasters with minimum damage and downtime
- Daniele Horton Founder amp Principal
Verdani Partners
WATER EFFICIENCY SECTION DIVIDER SIDEBAR HEADER GOES HERE WATER EFFICIENCY
19
00
19
40
20
10
20
15
20
50
Colorado River
Annual Average
River Flow
NO AND LOW COST MEASURES
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 9
Drought in California and water conservation is the new norm ndash Robert Estrada Los Angeles Department of Water and Power
Source US Drought Monitor (httpdroughtmonitorunledu)
The current extreme drought in California has exposed vulnerabilities in the statersquos water storage and
delivery systems Outdated infrastructure over pumping of ground water supplies pollution of ground
water supplies by fracking and other activities conflicting municipal and community policies climate
change increased demand and limited access to alternative water sources contribute to increasing water
stress While Los Angeles has maintained level water use per capita for the past forty years a result of
successful metering programs population growth has pushed water supplies to the limit Climate change
has also greatly affected the snow pack water supplies and the underground water reserves are been
tapped at an unprecedented rate The state is facing one of its worst droughts in history and a massive
effort will be needed to find solutions to meet its water demand needs
In response to current conditions Los Angeles Mayor Eric Garcetti signed an Executive Directive on
October 14 2014 to reduce potable water use 20 by 2017 This includes removing turf landscaping at
city buildings and replacing it with native and drought-resistant plants The directive also mandates the
CURRENT CONDITIONS
LOS ANGELES WATER SUPPLY
1 Recycled
Water
11 Groundwater
37 LA Aqueduct
51 Purchased from
Metropolitan
Water District
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 0
Los Angeles Department of Water and Power (LADWP) to reduce water imports 50 by 2024
It was also discussed that the cost of water is still quite low which makes the business case for making
water efficiency upgrades more challenging Some of the attendees mentioned that a price signal would
be critical to incentivize additional water efficiency upgrades and lower water usage The LADWP rep
explained that because they are a public entity that they cannot charge for the water They can only
charge to transport the water and any rate increases need to be approved by the voters which makes the
process for increasing the fees for water very challenging
A best practice for conservation and one that has helped Los Angeles maintain the lowest consumption
for any city with a population over 1 million is metering
LADWP launched their conservation program in the late 1970s Today the LADWP provides extensive
incentive programs for water use reduction efforts including prescriptive or menu-based programs and
more flexible technical assistance programs While more involved the technical assistance programs
cover a larger variety of costs associated with pre-approved water conservation measures including
consulting fees Recently utilization of technical assistance programs has surpassed the traditional menu-
based programs although many building
owners interviewed were still unaware of
the technical assistance program
While improving the efficiency of indoor
water fixtures has been a popular and well-publicized program historically utilities have identified cooling
towers and outdoor water use as 70+ of annual building water consumption making them the target of
renewed water conservation efforts including access to reclaimed water widespread adoption of rain
sensors reverse osmosis systems and microfiltration systems
70+ of annual building water consumption -
cooling towers and outdoor water use
WATER RETROFIT OPPORTUNITIES
Install metering devices and controls
Perform ongoing distribution system
audits leak detection and repair
Install native and drought resistant
landscape
Maximize indoor plumbing fixture and
fitting efficiency (toilets urinals faucets
aerators and showerheads)
Implement a cooling tower chemical
management and water efficiency
program
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 1
WATER USAGE PER CAPITA
133 GALLONSDAYPERSON
Daily water use (LADWP) all customers Second
lowest in the nation for cities over 1 million
people NY beats LA
Source California Department of Water Resources
LADWP provides extensive prescriptive and menu-based programs as well as more flexible technical
assistance programs to incentivize water use reductions The technical assistance programs require more
upfront involvement from property managers but also cover a larger variety of costs associated with pre-
approved water conservation measures including consulting fees In recent years technical assistance
programs have increased in popularity and have surpassed the traditional menu-based programs These
ratepayer-funded programs are offered at no additional cost to residential and commercial customers By
the end of 2014 LADWP will have invested$60 million dollars in water conservation incentive programs
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 2
As water efficiency regulations become more stringent and water rates continue to rise property owners
and operators can reap immediate benefits from low-cost measures such as the installation of aerators
and quickly recoup investments in upgrading indoor water fixtures
Building managers can reduce water use by installing low-flow or ultra low-flow fixtures fittings and
equipment such as toilets and urinals that exceed current code requirements per recommendations below
Water closets max 16 gallonsflush
Urinals max 0125 to 05 gallonflush
Shower heads max 18 gallonsminute
Faucets max 10 gallonsminute
Replacement aerators max 05 gallonsminute
Metering faucets max 025 gallonscycle
To help meet the Cityrsquos aggressive water conservation goals building owners will be encouraged to move
beyond upgrades to efficient indoor water fixtures for deeper savings Cooling towers and outdoor water
use account for an average of 70 of building water consumption making them the target of increased
water conservation efforts
Reclaimed water is currently restricted to limited areas There are plans to further develop water
reclamation projects for Los Angeles however its use is limited by state health requirements and the
high cost of pumping plants and distribution facilities to deliver water from the reclamation plants to the
customers Robert Estrada of LADWP reports that the cost is an estimated million dollars per mile of
purple pipe However if Assembly Bill 2282 passes all new residential and commercial construction with
access to reclaimed water will be required to incorporate it into approved uses such as landscaping and
reclaimed water infrastructure would necessarily expand
The statersquos water supplies are at all times low underground water supplies are rapidly diminishing and
demand for water continues to grow Solutions to solve our water supply needs will involve many
different solutions from efficiency programs to lower demand a price signal and a search for new water
sources and importing water and desalinization plants
LOS ANGELES DWP
Since 1990 LA Department of Water and Power has
spent about $280 million on conservation programs
METROPOLITAN WATER DISTRICT
Metropolitan provides rebates on water efficient
fixtures financial assistance for water reduction
projects and incentives programs
MAYORrsquoS DIRECTIVE TO CUT WATER USE
(LA Times article) LA Mayor Eric Garcetti signed an
executive directive to further cut potable water use
20X2020 WATER CONSERVATION PLAN
Statewide plan enacted in 2010 to reduce water
consumption by 20 by 2020
SENATE BILL SB X7-7 2009
This Senate bill requires all water suppliers to increase
water efficiency
WATERSENSE
A recognized seal of approval for water efficiency
similar to ENERGY STAR
DOE WATER EFFICIENCY BMPS
Water Efficiency Best Management Practices from the
US Department of Energy
CONCLUSION RESOURCES
W A T E R E F F I C I E N C Y
E N E R G Y E F F I C I E N C Y
RENEWABLE
HYDRO GEOTHERMAL
WIND SOLAR
BIO-DIESEL BIO-MASS
EFFICIENCY
CO-GENERATION
EFFICIENT APPLIANCES EFFICIENT LIGHTING
EFFICIENT VEHICLES EFFICIENT BUILDINGS
INTELLIGENT POWER NETWORKS DECENTRALIZED GRIDS
CONSERVATION
GREY WATER RECYCLING ALTERNATIVE TRANSPORTATION
ENERGY EFFICIENCY RETROFIT STRATEGY
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 4
Many retrofits occur on a piecemeal basis as incentives become available or contractors provide upgrade
recommendations However many buildings especially those that are considering aesthetic or structural
improvements may benefit from a more comprehensive deep energy retrofit
The key components of a deep retrofit process are ongoing energy management assembling an
interdisciplinary team robust analysis and measurement and verification This process is not linear
phases may overlap or go on concurrently and will vary based on factors such as ownership structure
scale of building project delivery method and building complexity
While net zero was once considered a faraway goal for only the most technologically advanced buildings
the National Renewable Energy Laboratory found that there is now the technical potential for over 47
percent of existing US commercial building floor space to achieve net zero energy using existing
technologies and design processes
Net zero may seem unachievable but it can be done using the same principles as effective deep retrofits The
process starts with a solid understanding of baseline operations and expenditures and benefits from
extensive modeling and cost-benefit analysis to optimize systems choice for highest return on investment
There is considerable guidance within the market on how to retrofit buildings with sustainable
technologies to improve their environmental performance A significant barrier however to carrying out
sustainable retrofits is financing A number of financing mechanisms exist and each scenario is unique
Most building owners will choose to use
their own capital when available to avoid
time-intensive administration activities
Other traditional financing options
include loans and bond programs as well
as increases to operating fees or capital leases Building owners and managers can also take advantage of
funding improvements through bill savings (as with performance contracting with Energy Service
Contractors or ESCOrsquos) PACE bonds energy service agreements on-bill financing incentives and rebates
As utility rates continue to rise the incentive to implement energy efficiency projects has gone from cost
savings to cost avoidance This challenge is coupled with how to finance retrofit projects and what to do
once incentivized equipment has been installed
RETROFIT STRATEGY
E N E R G Y E F F I C I E N C Y
21+ Utilities represent an average of 21 of
total building expenses
ndash2012 BOMA Exchange Report
ENERGY RETROFIT OPPORTUNITIES
Monitor meter and commission main
building systems
Maximize heating and cooling efficiencies
and install variable frequency drives on
equipment
Lighting upgrades and controls (efficient
lights daylight harvesting motion sensors
etc)
Install a building automation system
invest in DDC wireless controls energy
optimization software and demand
response infrastructure
Retrofit main building systems chillers
cooling towers boilers fan motors
Building envelope Seal windows install
window films retrofit windows with
higher R-Value
Invest in on-site generation and
renewable Energy systems (fuel cell wind
geothermal and solar energy)
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 7
C L I M A T E C H A N G E
ENVIRONMENTAL RESILIENCE
While frequency of earthquakes is not directly linked to climate change response to earth-
quakes is certainly a factor in building resilience and an area of vulnerability in Los Angeles The most im-
portant component of building resilience in Los Angeles is the choice of structural materials Steel frame
buildings are considerably more adaptable and thereby more resilient than their concrete-framed coun-
terparts
A seismic-readiness survey of the city of Los Angeles conducted by a team of UC Berkeley researchers
revealed that a number of buildings require retrofits to meet seismic standards These buildings are pri-
marily smaller concrete structures prompting attendees to note that the least resilient buildings are fre-
quently controlled by building owners with the fewest resources both capital and staff to manage re-
quired upgrades Add the fear of triggering potentially costly Title 24 energy upgrades and compliance
with seismic standards becomes nearly impossible
One attendee suggested that seismic upgrades be linked to energy efficiency upgrades creating an op-
portunity for a deep retrofit that raises the overall value and stature of the property The challenge is en-
couraging these owners of concrete building who are frequently hesitant to incorporate major capital
improvements to comply The perception of complexity is already a significant obstacle to adoption of a
number of incentive and financing opportunities
Infographics on page 14 and 16 source ldquoWeathering the Storm Building Business Resilience to Climate Changerdquo Center for Cli-
mate and Energy Solutions Munich Re National Oceanic and Atmospheric Aon Benfield Lloydrsquos of London
Policy and regulations will con-tinue to drive local governments and the building industry to address climate change risks infrastructure needs and increased resource needs for water energy and demographic shifts Proactive owners need to stay in front of these risks and get ready to recover from natural disasters with minimum damage and downtime
- Daniele Horton Founder amp Principal
Verdani Partners
WATER EFFICIENCY SECTION DIVIDER SIDEBAR HEADER GOES HERE WATER EFFICIENCY
19
00
19
40
20
10
20
15
20
50
Colorado River
Annual Average
River Flow
NO AND LOW COST MEASURES
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 9
Drought in California and water conservation is the new norm ndash Robert Estrada Los Angeles Department of Water and Power
Source US Drought Monitor (httpdroughtmonitorunledu)
The current extreme drought in California has exposed vulnerabilities in the statersquos water storage and
delivery systems Outdated infrastructure over pumping of ground water supplies pollution of ground
water supplies by fracking and other activities conflicting municipal and community policies climate
change increased demand and limited access to alternative water sources contribute to increasing water
stress While Los Angeles has maintained level water use per capita for the past forty years a result of
successful metering programs population growth has pushed water supplies to the limit Climate change
has also greatly affected the snow pack water supplies and the underground water reserves are been
tapped at an unprecedented rate The state is facing one of its worst droughts in history and a massive
effort will be needed to find solutions to meet its water demand needs
In response to current conditions Los Angeles Mayor Eric Garcetti signed an Executive Directive on
October 14 2014 to reduce potable water use 20 by 2017 This includes removing turf landscaping at
city buildings and replacing it with native and drought-resistant plants The directive also mandates the
CURRENT CONDITIONS
LOS ANGELES WATER SUPPLY
1 Recycled
Water
11 Groundwater
37 LA Aqueduct
51 Purchased from
Metropolitan
Water District
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 0
Los Angeles Department of Water and Power (LADWP) to reduce water imports 50 by 2024
It was also discussed that the cost of water is still quite low which makes the business case for making
water efficiency upgrades more challenging Some of the attendees mentioned that a price signal would
be critical to incentivize additional water efficiency upgrades and lower water usage The LADWP rep
explained that because they are a public entity that they cannot charge for the water They can only
charge to transport the water and any rate increases need to be approved by the voters which makes the
process for increasing the fees for water very challenging
A best practice for conservation and one that has helped Los Angeles maintain the lowest consumption
for any city with a population over 1 million is metering
LADWP launched their conservation program in the late 1970s Today the LADWP provides extensive
incentive programs for water use reduction efforts including prescriptive or menu-based programs and
more flexible technical assistance programs While more involved the technical assistance programs
cover a larger variety of costs associated with pre-approved water conservation measures including
consulting fees Recently utilization of technical assistance programs has surpassed the traditional menu-
based programs although many building
owners interviewed were still unaware of
the technical assistance program
While improving the efficiency of indoor
water fixtures has been a popular and well-publicized program historically utilities have identified cooling
towers and outdoor water use as 70+ of annual building water consumption making them the target of
renewed water conservation efforts including access to reclaimed water widespread adoption of rain
sensors reverse osmosis systems and microfiltration systems
70+ of annual building water consumption -
cooling towers and outdoor water use
WATER RETROFIT OPPORTUNITIES
Install metering devices and controls
Perform ongoing distribution system
audits leak detection and repair
Install native and drought resistant
landscape
Maximize indoor plumbing fixture and
fitting efficiency (toilets urinals faucets
aerators and showerheads)
Implement a cooling tower chemical
management and water efficiency
program
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 1
WATER USAGE PER CAPITA
133 GALLONSDAYPERSON
Daily water use (LADWP) all customers Second
lowest in the nation for cities over 1 million
people NY beats LA
Source California Department of Water Resources
LADWP provides extensive prescriptive and menu-based programs as well as more flexible technical
assistance programs to incentivize water use reductions The technical assistance programs require more
upfront involvement from property managers but also cover a larger variety of costs associated with pre-
approved water conservation measures including consulting fees In recent years technical assistance
programs have increased in popularity and have surpassed the traditional menu-based programs These
ratepayer-funded programs are offered at no additional cost to residential and commercial customers By
the end of 2014 LADWP will have invested$60 million dollars in water conservation incentive programs
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 2
As water efficiency regulations become more stringent and water rates continue to rise property owners
and operators can reap immediate benefits from low-cost measures such as the installation of aerators
and quickly recoup investments in upgrading indoor water fixtures
Building managers can reduce water use by installing low-flow or ultra low-flow fixtures fittings and
equipment such as toilets and urinals that exceed current code requirements per recommendations below
Water closets max 16 gallonsflush
Urinals max 0125 to 05 gallonflush
Shower heads max 18 gallonsminute
Faucets max 10 gallonsminute
Replacement aerators max 05 gallonsminute
Metering faucets max 025 gallonscycle
To help meet the Cityrsquos aggressive water conservation goals building owners will be encouraged to move
beyond upgrades to efficient indoor water fixtures for deeper savings Cooling towers and outdoor water
use account for an average of 70 of building water consumption making them the target of increased
water conservation efforts
Reclaimed water is currently restricted to limited areas There are plans to further develop water
reclamation projects for Los Angeles however its use is limited by state health requirements and the
high cost of pumping plants and distribution facilities to deliver water from the reclamation plants to the
customers Robert Estrada of LADWP reports that the cost is an estimated million dollars per mile of
purple pipe However if Assembly Bill 2282 passes all new residential and commercial construction with
access to reclaimed water will be required to incorporate it into approved uses such as landscaping and
reclaimed water infrastructure would necessarily expand
The statersquos water supplies are at all times low underground water supplies are rapidly diminishing and
demand for water continues to grow Solutions to solve our water supply needs will involve many
different solutions from efficiency programs to lower demand a price signal and a search for new water
sources and importing water and desalinization plants
LOS ANGELES DWP
Since 1990 LA Department of Water and Power has
spent about $280 million on conservation programs
METROPOLITAN WATER DISTRICT
Metropolitan provides rebates on water efficient
fixtures financial assistance for water reduction
projects and incentives programs
MAYORrsquoS DIRECTIVE TO CUT WATER USE
(LA Times article) LA Mayor Eric Garcetti signed an
executive directive to further cut potable water use
20X2020 WATER CONSERVATION PLAN
Statewide plan enacted in 2010 to reduce water
consumption by 20 by 2020
SENATE BILL SB X7-7 2009
This Senate bill requires all water suppliers to increase
water efficiency
WATERSENSE
A recognized seal of approval for water efficiency
similar to ENERGY STAR
DOE WATER EFFICIENCY BMPS
Water Efficiency Best Management Practices from the
US Department of Energy
CONCLUSION RESOURCES
W A T E R E F F I C I E N C Y
E N E R G Y E F F I C I E N C Y
RENEWABLE
HYDRO GEOTHERMAL
WIND SOLAR
BIO-DIESEL BIO-MASS
EFFICIENCY
CO-GENERATION
EFFICIENT APPLIANCES EFFICIENT LIGHTING
EFFICIENT VEHICLES EFFICIENT BUILDINGS
INTELLIGENT POWER NETWORKS DECENTRALIZED GRIDS
CONSERVATION
GREY WATER RECYCLING ALTERNATIVE TRANSPORTATION
ENERGY EFFICIENCY RETROFIT STRATEGY
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 4
Many retrofits occur on a piecemeal basis as incentives become available or contractors provide upgrade
recommendations However many buildings especially those that are considering aesthetic or structural
improvements may benefit from a more comprehensive deep energy retrofit
The key components of a deep retrofit process are ongoing energy management assembling an
interdisciplinary team robust analysis and measurement and verification This process is not linear
phases may overlap or go on concurrently and will vary based on factors such as ownership structure
scale of building project delivery method and building complexity
While net zero was once considered a faraway goal for only the most technologically advanced buildings
the National Renewable Energy Laboratory found that there is now the technical potential for over 47
percent of existing US commercial building floor space to achieve net zero energy using existing
technologies and design processes
Net zero may seem unachievable but it can be done using the same principles as effective deep retrofits The
process starts with a solid understanding of baseline operations and expenditures and benefits from
extensive modeling and cost-benefit analysis to optimize systems choice for highest return on investment
There is considerable guidance within the market on how to retrofit buildings with sustainable
technologies to improve their environmental performance A significant barrier however to carrying out
sustainable retrofits is financing A number of financing mechanisms exist and each scenario is unique
Most building owners will choose to use
their own capital when available to avoid
time-intensive administration activities
Other traditional financing options
include loans and bond programs as well
as increases to operating fees or capital leases Building owners and managers can also take advantage of
funding improvements through bill savings (as with performance contracting with Energy Service
Contractors or ESCOrsquos) PACE bonds energy service agreements on-bill financing incentives and rebates
As utility rates continue to rise the incentive to implement energy efficiency projects has gone from cost
savings to cost avoidance This challenge is coupled with how to finance retrofit projects and what to do
once incentivized equipment has been installed
RETROFIT STRATEGY
E N E R G Y E F F I C I E N C Y
21+ Utilities represent an average of 21 of
total building expenses
ndash2012 BOMA Exchange Report
ENERGY RETROFIT OPPORTUNITIES
Monitor meter and commission main
building systems
Maximize heating and cooling efficiencies
and install variable frequency drives on
equipment
Lighting upgrades and controls (efficient
lights daylight harvesting motion sensors
etc)
Install a building automation system
invest in DDC wireless controls energy
optimization software and demand
response infrastructure
Retrofit main building systems chillers
cooling towers boilers fan motors
Building envelope Seal windows install
window films retrofit windows with
higher R-Value
Invest in on-site generation and
renewable Energy systems (fuel cell wind
geothermal and solar energy)
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
WATER EFFICIENCY SECTION DIVIDER SIDEBAR HEADER GOES HERE WATER EFFICIENCY
19
00
19
40
20
10
20
15
20
50
Colorado River
Annual Average
River Flow
NO AND LOW COST MEASURES
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 9
Drought in California and water conservation is the new norm ndash Robert Estrada Los Angeles Department of Water and Power
Source US Drought Monitor (httpdroughtmonitorunledu)
The current extreme drought in California has exposed vulnerabilities in the statersquos water storage and
delivery systems Outdated infrastructure over pumping of ground water supplies pollution of ground
water supplies by fracking and other activities conflicting municipal and community policies climate
change increased demand and limited access to alternative water sources contribute to increasing water
stress While Los Angeles has maintained level water use per capita for the past forty years a result of
successful metering programs population growth has pushed water supplies to the limit Climate change
has also greatly affected the snow pack water supplies and the underground water reserves are been
tapped at an unprecedented rate The state is facing one of its worst droughts in history and a massive
effort will be needed to find solutions to meet its water demand needs
In response to current conditions Los Angeles Mayor Eric Garcetti signed an Executive Directive on
October 14 2014 to reduce potable water use 20 by 2017 This includes removing turf landscaping at
city buildings and replacing it with native and drought-resistant plants The directive also mandates the
CURRENT CONDITIONS
LOS ANGELES WATER SUPPLY
1 Recycled
Water
11 Groundwater
37 LA Aqueduct
51 Purchased from
Metropolitan
Water District
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 0
Los Angeles Department of Water and Power (LADWP) to reduce water imports 50 by 2024
It was also discussed that the cost of water is still quite low which makes the business case for making
water efficiency upgrades more challenging Some of the attendees mentioned that a price signal would
be critical to incentivize additional water efficiency upgrades and lower water usage The LADWP rep
explained that because they are a public entity that they cannot charge for the water They can only
charge to transport the water and any rate increases need to be approved by the voters which makes the
process for increasing the fees for water very challenging
A best practice for conservation and one that has helped Los Angeles maintain the lowest consumption
for any city with a population over 1 million is metering
LADWP launched their conservation program in the late 1970s Today the LADWP provides extensive
incentive programs for water use reduction efforts including prescriptive or menu-based programs and
more flexible technical assistance programs While more involved the technical assistance programs
cover a larger variety of costs associated with pre-approved water conservation measures including
consulting fees Recently utilization of technical assistance programs has surpassed the traditional menu-
based programs although many building
owners interviewed were still unaware of
the technical assistance program
While improving the efficiency of indoor
water fixtures has been a popular and well-publicized program historically utilities have identified cooling
towers and outdoor water use as 70+ of annual building water consumption making them the target of
renewed water conservation efforts including access to reclaimed water widespread adoption of rain
sensors reverse osmosis systems and microfiltration systems
70+ of annual building water consumption -
cooling towers and outdoor water use
WATER RETROFIT OPPORTUNITIES
Install metering devices and controls
Perform ongoing distribution system
audits leak detection and repair
Install native and drought resistant
landscape
Maximize indoor plumbing fixture and
fitting efficiency (toilets urinals faucets
aerators and showerheads)
Implement a cooling tower chemical
management and water efficiency
program
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 1
WATER USAGE PER CAPITA
133 GALLONSDAYPERSON
Daily water use (LADWP) all customers Second
lowest in the nation for cities over 1 million
people NY beats LA
Source California Department of Water Resources
LADWP provides extensive prescriptive and menu-based programs as well as more flexible technical
assistance programs to incentivize water use reductions The technical assistance programs require more
upfront involvement from property managers but also cover a larger variety of costs associated with pre-
approved water conservation measures including consulting fees In recent years technical assistance
programs have increased in popularity and have surpassed the traditional menu-based programs These
ratepayer-funded programs are offered at no additional cost to residential and commercial customers By
the end of 2014 LADWP will have invested$60 million dollars in water conservation incentive programs
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 2
As water efficiency regulations become more stringent and water rates continue to rise property owners
and operators can reap immediate benefits from low-cost measures such as the installation of aerators
and quickly recoup investments in upgrading indoor water fixtures
Building managers can reduce water use by installing low-flow or ultra low-flow fixtures fittings and
equipment such as toilets and urinals that exceed current code requirements per recommendations below
Water closets max 16 gallonsflush
Urinals max 0125 to 05 gallonflush
Shower heads max 18 gallonsminute
Faucets max 10 gallonsminute
Replacement aerators max 05 gallonsminute
Metering faucets max 025 gallonscycle
To help meet the Cityrsquos aggressive water conservation goals building owners will be encouraged to move
beyond upgrades to efficient indoor water fixtures for deeper savings Cooling towers and outdoor water
use account for an average of 70 of building water consumption making them the target of increased
water conservation efforts
Reclaimed water is currently restricted to limited areas There are plans to further develop water
reclamation projects for Los Angeles however its use is limited by state health requirements and the
high cost of pumping plants and distribution facilities to deliver water from the reclamation plants to the
customers Robert Estrada of LADWP reports that the cost is an estimated million dollars per mile of
purple pipe However if Assembly Bill 2282 passes all new residential and commercial construction with
access to reclaimed water will be required to incorporate it into approved uses such as landscaping and
reclaimed water infrastructure would necessarily expand
The statersquos water supplies are at all times low underground water supplies are rapidly diminishing and
demand for water continues to grow Solutions to solve our water supply needs will involve many
different solutions from efficiency programs to lower demand a price signal and a search for new water
sources and importing water and desalinization plants
LOS ANGELES DWP
Since 1990 LA Department of Water and Power has
spent about $280 million on conservation programs
METROPOLITAN WATER DISTRICT
Metropolitan provides rebates on water efficient
fixtures financial assistance for water reduction
projects and incentives programs
MAYORrsquoS DIRECTIVE TO CUT WATER USE
(LA Times article) LA Mayor Eric Garcetti signed an
executive directive to further cut potable water use
20X2020 WATER CONSERVATION PLAN
Statewide plan enacted in 2010 to reduce water
consumption by 20 by 2020
SENATE BILL SB X7-7 2009
This Senate bill requires all water suppliers to increase
water efficiency
WATERSENSE
A recognized seal of approval for water efficiency
similar to ENERGY STAR
DOE WATER EFFICIENCY BMPS
Water Efficiency Best Management Practices from the
US Department of Energy
CONCLUSION RESOURCES
W A T E R E F F I C I E N C Y
E N E R G Y E F F I C I E N C Y
RENEWABLE
HYDRO GEOTHERMAL
WIND SOLAR
BIO-DIESEL BIO-MASS
EFFICIENCY
CO-GENERATION
EFFICIENT APPLIANCES EFFICIENT LIGHTING
EFFICIENT VEHICLES EFFICIENT BUILDINGS
INTELLIGENT POWER NETWORKS DECENTRALIZED GRIDS
CONSERVATION
GREY WATER RECYCLING ALTERNATIVE TRANSPORTATION
ENERGY EFFICIENCY RETROFIT STRATEGY
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 4
Many retrofits occur on a piecemeal basis as incentives become available or contractors provide upgrade
recommendations However many buildings especially those that are considering aesthetic or structural
improvements may benefit from a more comprehensive deep energy retrofit
The key components of a deep retrofit process are ongoing energy management assembling an
interdisciplinary team robust analysis and measurement and verification This process is not linear
phases may overlap or go on concurrently and will vary based on factors such as ownership structure
scale of building project delivery method and building complexity
While net zero was once considered a faraway goal for only the most technologically advanced buildings
the National Renewable Energy Laboratory found that there is now the technical potential for over 47
percent of existing US commercial building floor space to achieve net zero energy using existing
technologies and design processes
Net zero may seem unachievable but it can be done using the same principles as effective deep retrofits The
process starts with a solid understanding of baseline operations and expenditures and benefits from
extensive modeling and cost-benefit analysis to optimize systems choice for highest return on investment
There is considerable guidance within the market on how to retrofit buildings with sustainable
technologies to improve their environmental performance A significant barrier however to carrying out
sustainable retrofits is financing A number of financing mechanisms exist and each scenario is unique
Most building owners will choose to use
their own capital when available to avoid
time-intensive administration activities
Other traditional financing options
include loans and bond programs as well
as increases to operating fees or capital leases Building owners and managers can also take advantage of
funding improvements through bill savings (as with performance contracting with Energy Service
Contractors or ESCOrsquos) PACE bonds energy service agreements on-bill financing incentives and rebates
As utility rates continue to rise the incentive to implement energy efficiency projects has gone from cost
savings to cost avoidance This challenge is coupled with how to finance retrofit projects and what to do
once incentivized equipment has been installed
RETROFIT STRATEGY
E N E R G Y E F F I C I E N C Y
21+ Utilities represent an average of 21 of
total building expenses
ndash2012 BOMA Exchange Report
ENERGY RETROFIT OPPORTUNITIES
Monitor meter and commission main
building systems
Maximize heating and cooling efficiencies
and install variable frequency drives on
equipment
Lighting upgrades and controls (efficient
lights daylight harvesting motion sensors
etc)
Install a building automation system
invest in DDC wireless controls energy
optimization software and demand
response infrastructure
Retrofit main building systems chillers
cooling towers boilers fan motors
Building envelope Seal windows install
window films retrofit windows with
higher R-Value
Invest in on-site generation and
renewable Energy systems (fuel cell wind
geothermal and solar energy)
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 1 9
Drought in California and water conservation is the new norm ndash Robert Estrada Los Angeles Department of Water and Power
Source US Drought Monitor (httpdroughtmonitorunledu)
The current extreme drought in California has exposed vulnerabilities in the statersquos water storage and
delivery systems Outdated infrastructure over pumping of ground water supplies pollution of ground
water supplies by fracking and other activities conflicting municipal and community policies climate
change increased demand and limited access to alternative water sources contribute to increasing water
stress While Los Angeles has maintained level water use per capita for the past forty years a result of
successful metering programs population growth has pushed water supplies to the limit Climate change
has also greatly affected the snow pack water supplies and the underground water reserves are been
tapped at an unprecedented rate The state is facing one of its worst droughts in history and a massive
effort will be needed to find solutions to meet its water demand needs
In response to current conditions Los Angeles Mayor Eric Garcetti signed an Executive Directive on
October 14 2014 to reduce potable water use 20 by 2017 This includes removing turf landscaping at
city buildings and replacing it with native and drought-resistant plants The directive also mandates the
CURRENT CONDITIONS
LOS ANGELES WATER SUPPLY
1 Recycled
Water
11 Groundwater
37 LA Aqueduct
51 Purchased from
Metropolitan
Water District
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 0
Los Angeles Department of Water and Power (LADWP) to reduce water imports 50 by 2024
It was also discussed that the cost of water is still quite low which makes the business case for making
water efficiency upgrades more challenging Some of the attendees mentioned that a price signal would
be critical to incentivize additional water efficiency upgrades and lower water usage The LADWP rep
explained that because they are a public entity that they cannot charge for the water They can only
charge to transport the water and any rate increases need to be approved by the voters which makes the
process for increasing the fees for water very challenging
A best practice for conservation and one that has helped Los Angeles maintain the lowest consumption
for any city with a population over 1 million is metering
LADWP launched their conservation program in the late 1970s Today the LADWP provides extensive
incentive programs for water use reduction efforts including prescriptive or menu-based programs and
more flexible technical assistance programs While more involved the technical assistance programs
cover a larger variety of costs associated with pre-approved water conservation measures including
consulting fees Recently utilization of technical assistance programs has surpassed the traditional menu-
based programs although many building
owners interviewed were still unaware of
the technical assistance program
While improving the efficiency of indoor
water fixtures has been a popular and well-publicized program historically utilities have identified cooling
towers and outdoor water use as 70+ of annual building water consumption making them the target of
renewed water conservation efforts including access to reclaimed water widespread adoption of rain
sensors reverse osmosis systems and microfiltration systems
70+ of annual building water consumption -
cooling towers and outdoor water use
WATER RETROFIT OPPORTUNITIES
Install metering devices and controls
Perform ongoing distribution system
audits leak detection and repair
Install native and drought resistant
landscape
Maximize indoor plumbing fixture and
fitting efficiency (toilets urinals faucets
aerators and showerheads)
Implement a cooling tower chemical
management and water efficiency
program
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 1
WATER USAGE PER CAPITA
133 GALLONSDAYPERSON
Daily water use (LADWP) all customers Second
lowest in the nation for cities over 1 million
people NY beats LA
Source California Department of Water Resources
LADWP provides extensive prescriptive and menu-based programs as well as more flexible technical
assistance programs to incentivize water use reductions The technical assistance programs require more
upfront involvement from property managers but also cover a larger variety of costs associated with pre-
approved water conservation measures including consulting fees In recent years technical assistance
programs have increased in popularity and have surpassed the traditional menu-based programs These
ratepayer-funded programs are offered at no additional cost to residential and commercial customers By
the end of 2014 LADWP will have invested$60 million dollars in water conservation incentive programs
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 2
As water efficiency regulations become more stringent and water rates continue to rise property owners
and operators can reap immediate benefits from low-cost measures such as the installation of aerators
and quickly recoup investments in upgrading indoor water fixtures
Building managers can reduce water use by installing low-flow or ultra low-flow fixtures fittings and
equipment such as toilets and urinals that exceed current code requirements per recommendations below
Water closets max 16 gallonsflush
Urinals max 0125 to 05 gallonflush
Shower heads max 18 gallonsminute
Faucets max 10 gallonsminute
Replacement aerators max 05 gallonsminute
Metering faucets max 025 gallonscycle
To help meet the Cityrsquos aggressive water conservation goals building owners will be encouraged to move
beyond upgrades to efficient indoor water fixtures for deeper savings Cooling towers and outdoor water
use account for an average of 70 of building water consumption making them the target of increased
water conservation efforts
Reclaimed water is currently restricted to limited areas There are plans to further develop water
reclamation projects for Los Angeles however its use is limited by state health requirements and the
high cost of pumping plants and distribution facilities to deliver water from the reclamation plants to the
customers Robert Estrada of LADWP reports that the cost is an estimated million dollars per mile of
purple pipe However if Assembly Bill 2282 passes all new residential and commercial construction with
access to reclaimed water will be required to incorporate it into approved uses such as landscaping and
reclaimed water infrastructure would necessarily expand
The statersquos water supplies are at all times low underground water supplies are rapidly diminishing and
demand for water continues to grow Solutions to solve our water supply needs will involve many
different solutions from efficiency programs to lower demand a price signal and a search for new water
sources and importing water and desalinization plants
LOS ANGELES DWP
Since 1990 LA Department of Water and Power has
spent about $280 million on conservation programs
METROPOLITAN WATER DISTRICT
Metropolitan provides rebates on water efficient
fixtures financial assistance for water reduction
projects and incentives programs
MAYORrsquoS DIRECTIVE TO CUT WATER USE
(LA Times article) LA Mayor Eric Garcetti signed an
executive directive to further cut potable water use
20X2020 WATER CONSERVATION PLAN
Statewide plan enacted in 2010 to reduce water
consumption by 20 by 2020
SENATE BILL SB X7-7 2009
This Senate bill requires all water suppliers to increase
water efficiency
WATERSENSE
A recognized seal of approval for water efficiency
similar to ENERGY STAR
DOE WATER EFFICIENCY BMPS
Water Efficiency Best Management Practices from the
US Department of Energy
CONCLUSION RESOURCES
W A T E R E F F I C I E N C Y
E N E R G Y E F F I C I E N C Y
RENEWABLE
HYDRO GEOTHERMAL
WIND SOLAR
BIO-DIESEL BIO-MASS
EFFICIENCY
CO-GENERATION
EFFICIENT APPLIANCES EFFICIENT LIGHTING
EFFICIENT VEHICLES EFFICIENT BUILDINGS
INTELLIGENT POWER NETWORKS DECENTRALIZED GRIDS
CONSERVATION
GREY WATER RECYCLING ALTERNATIVE TRANSPORTATION
ENERGY EFFICIENCY RETROFIT STRATEGY
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 4
Many retrofits occur on a piecemeal basis as incentives become available or contractors provide upgrade
recommendations However many buildings especially those that are considering aesthetic or structural
improvements may benefit from a more comprehensive deep energy retrofit
The key components of a deep retrofit process are ongoing energy management assembling an
interdisciplinary team robust analysis and measurement and verification This process is not linear
phases may overlap or go on concurrently and will vary based on factors such as ownership structure
scale of building project delivery method and building complexity
While net zero was once considered a faraway goal for only the most technologically advanced buildings
the National Renewable Energy Laboratory found that there is now the technical potential for over 47
percent of existing US commercial building floor space to achieve net zero energy using existing
technologies and design processes
Net zero may seem unachievable but it can be done using the same principles as effective deep retrofits The
process starts with a solid understanding of baseline operations and expenditures and benefits from
extensive modeling and cost-benefit analysis to optimize systems choice for highest return on investment
There is considerable guidance within the market on how to retrofit buildings with sustainable
technologies to improve their environmental performance A significant barrier however to carrying out
sustainable retrofits is financing A number of financing mechanisms exist and each scenario is unique
Most building owners will choose to use
their own capital when available to avoid
time-intensive administration activities
Other traditional financing options
include loans and bond programs as well
as increases to operating fees or capital leases Building owners and managers can also take advantage of
funding improvements through bill savings (as with performance contracting with Energy Service
Contractors or ESCOrsquos) PACE bonds energy service agreements on-bill financing incentives and rebates
As utility rates continue to rise the incentive to implement energy efficiency projects has gone from cost
savings to cost avoidance This challenge is coupled with how to finance retrofit projects and what to do
once incentivized equipment has been installed
RETROFIT STRATEGY
E N E R G Y E F F I C I E N C Y
21+ Utilities represent an average of 21 of
total building expenses
ndash2012 BOMA Exchange Report
ENERGY RETROFIT OPPORTUNITIES
Monitor meter and commission main
building systems
Maximize heating and cooling efficiencies
and install variable frequency drives on
equipment
Lighting upgrades and controls (efficient
lights daylight harvesting motion sensors
etc)
Install a building automation system
invest in DDC wireless controls energy
optimization software and demand
response infrastructure
Retrofit main building systems chillers
cooling towers boilers fan motors
Building envelope Seal windows install
window films retrofit windows with
higher R-Value
Invest in on-site generation and
renewable Energy systems (fuel cell wind
geothermal and solar energy)
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 0
Los Angeles Department of Water and Power (LADWP) to reduce water imports 50 by 2024
It was also discussed that the cost of water is still quite low which makes the business case for making
water efficiency upgrades more challenging Some of the attendees mentioned that a price signal would
be critical to incentivize additional water efficiency upgrades and lower water usage The LADWP rep
explained that because they are a public entity that they cannot charge for the water They can only
charge to transport the water and any rate increases need to be approved by the voters which makes the
process for increasing the fees for water very challenging
A best practice for conservation and one that has helped Los Angeles maintain the lowest consumption
for any city with a population over 1 million is metering
LADWP launched their conservation program in the late 1970s Today the LADWP provides extensive
incentive programs for water use reduction efforts including prescriptive or menu-based programs and
more flexible technical assistance programs While more involved the technical assistance programs
cover a larger variety of costs associated with pre-approved water conservation measures including
consulting fees Recently utilization of technical assistance programs has surpassed the traditional menu-
based programs although many building
owners interviewed were still unaware of
the technical assistance program
While improving the efficiency of indoor
water fixtures has been a popular and well-publicized program historically utilities have identified cooling
towers and outdoor water use as 70+ of annual building water consumption making them the target of
renewed water conservation efforts including access to reclaimed water widespread adoption of rain
sensors reverse osmosis systems and microfiltration systems
70+ of annual building water consumption -
cooling towers and outdoor water use
WATER RETROFIT OPPORTUNITIES
Install metering devices and controls
Perform ongoing distribution system
audits leak detection and repair
Install native and drought resistant
landscape
Maximize indoor plumbing fixture and
fitting efficiency (toilets urinals faucets
aerators and showerheads)
Implement a cooling tower chemical
management and water efficiency
program
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 1
WATER USAGE PER CAPITA
133 GALLONSDAYPERSON
Daily water use (LADWP) all customers Second
lowest in the nation for cities over 1 million
people NY beats LA
Source California Department of Water Resources
LADWP provides extensive prescriptive and menu-based programs as well as more flexible technical
assistance programs to incentivize water use reductions The technical assistance programs require more
upfront involvement from property managers but also cover a larger variety of costs associated with pre-
approved water conservation measures including consulting fees In recent years technical assistance
programs have increased in popularity and have surpassed the traditional menu-based programs These
ratepayer-funded programs are offered at no additional cost to residential and commercial customers By
the end of 2014 LADWP will have invested$60 million dollars in water conservation incentive programs
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 2
As water efficiency regulations become more stringent and water rates continue to rise property owners
and operators can reap immediate benefits from low-cost measures such as the installation of aerators
and quickly recoup investments in upgrading indoor water fixtures
Building managers can reduce water use by installing low-flow or ultra low-flow fixtures fittings and
equipment such as toilets and urinals that exceed current code requirements per recommendations below
Water closets max 16 gallonsflush
Urinals max 0125 to 05 gallonflush
Shower heads max 18 gallonsminute
Faucets max 10 gallonsminute
Replacement aerators max 05 gallonsminute
Metering faucets max 025 gallonscycle
To help meet the Cityrsquos aggressive water conservation goals building owners will be encouraged to move
beyond upgrades to efficient indoor water fixtures for deeper savings Cooling towers and outdoor water
use account for an average of 70 of building water consumption making them the target of increased
water conservation efforts
Reclaimed water is currently restricted to limited areas There are plans to further develop water
reclamation projects for Los Angeles however its use is limited by state health requirements and the
high cost of pumping plants and distribution facilities to deliver water from the reclamation plants to the
customers Robert Estrada of LADWP reports that the cost is an estimated million dollars per mile of
purple pipe However if Assembly Bill 2282 passes all new residential and commercial construction with
access to reclaimed water will be required to incorporate it into approved uses such as landscaping and
reclaimed water infrastructure would necessarily expand
The statersquos water supplies are at all times low underground water supplies are rapidly diminishing and
demand for water continues to grow Solutions to solve our water supply needs will involve many
different solutions from efficiency programs to lower demand a price signal and a search for new water
sources and importing water and desalinization plants
LOS ANGELES DWP
Since 1990 LA Department of Water and Power has
spent about $280 million on conservation programs
METROPOLITAN WATER DISTRICT
Metropolitan provides rebates on water efficient
fixtures financial assistance for water reduction
projects and incentives programs
MAYORrsquoS DIRECTIVE TO CUT WATER USE
(LA Times article) LA Mayor Eric Garcetti signed an
executive directive to further cut potable water use
20X2020 WATER CONSERVATION PLAN
Statewide plan enacted in 2010 to reduce water
consumption by 20 by 2020
SENATE BILL SB X7-7 2009
This Senate bill requires all water suppliers to increase
water efficiency
WATERSENSE
A recognized seal of approval for water efficiency
similar to ENERGY STAR
DOE WATER EFFICIENCY BMPS
Water Efficiency Best Management Practices from the
US Department of Energy
CONCLUSION RESOURCES
W A T E R E F F I C I E N C Y
E N E R G Y E F F I C I E N C Y
RENEWABLE
HYDRO GEOTHERMAL
WIND SOLAR
BIO-DIESEL BIO-MASS
EFFICIENCY
CO-GENERATION
EFFICIENT APPLIANCES EFFICIENT LIGHTING
EFFICIENT VEHICLES EFFICIENT BUILDINGS
INTELLIGENT POWER NETWORKS DECENTRALIZED GRIDS
CONSERVATION
GREY WATER RECYCLING ALTERNATIVE TRANSPORTATION
ENERGY EFFICIENCY RETROFIT STRATEGY
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 4
Many retrofits occur on a piecemeal basis as incentives become available or contractors provide upgrade
recommendations However many buildings especially those that are considering aesthetic or structural
improvements may benefit from a more comprehensive deep energy retrofit
The key components of a deep retrofit process are ongoing energy management assembling an
interdisciplinary team robust analysis and measurement and verification This process is not linear
phases may overlap or go on concurrently and will vary based on factors such as ownership structure
scale of building project delivery method and building complexity
While net zero was once considered a faraway goal for only the most technologically advanced buildings
the National Renewable Energy Laboratory found that there is now the technical potential for over 47
percent of existing US commercial building floor space to achieve net zero energy using existing
technologies and design processes
Net zero may seem unachievable but it can be done using the same principles as effective deep retrofits The
process starts with a solid understanding of baseline operations and expenditures and benefits from
extensive modeling and cost-benefit analysis to optimize systems choice for highest return on investment
There is considerable guidance within the market on how to retrofit buildings with sustainable
technologies to improve their environmental performance A significant barrier however to carrying out
sustainable retrofits is financing A number of financing mechanisms exist and each scenario is unique
Most building owners will choose to use
their own capital when available to avoid
time-intensive administration activities
Other traditional financing options
include loans and bond programs as well
as increases to operating fees or capital leases Building owners and managers can also take advantage of
funding improvements through bill savings (as with performance contracting with Energy Service
Contractors or ESCOrsquos) PACE bonds energy service agreements on-bill financing incentives and rebates
As utility rates continue to rise the incentive to implement energy efficiency projects has gone from cost
savings to cost avoidance This challenge is coupled with how to finance retrofit projects and what to do
once incentivized equipment has been installed
RETROFIT STRATEGY
E N E R G Y E F F I C I E N C Y
21+ Utilities represent an average of 21 of
total building expenses
ndash2012 BOMA Exchange Report
ENERGY RETROFIT OPPORTUNITIES
Monitor meter and commission main
building systems
Maximize heating and cooling efficiencies
and install variable frequency drives on
equipment
Lighting upgrades and controls (efficient
lights daylight harvesting motion sensors
etc)
Install a building automation system
invest in DDC wireless controls energy
optimization software and demand
response infrastructure
Retrofit main building systems chillers
cooling towers boilers fan motors
Building envelope Seal windows install
window films retrofit windows with
higher R-Value
Invest in on-site generation and
renewable Energy systems (fuel cell wind
geothermal and solar energy)
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 1
WATER USAGE PER CAPITA
133 GALLONSDAYPERSON
Daily water use (LADWP) all customers Second
lowest in the nation for cities over 1 million
people NY beats LA
Source California Department of Water Resources
LADWP provides extensive prescriptive and menu-based programs as well as more flexible technical
assistance programs to incentivize water use reductions The technical assistance programs require more
upfront involvement from property managers but also cover a larger variety of costs associated with pre-
approved water conservation measures including consulting fees In recent years technical assistance
programs have increased in popularity and have surpassed the traditional menu-based programs These
ratepayer-funded programs are offered at no additional cost to residential and commercial customers By
the end of 2014 LADWP will have invested$60 million dollars in water conservation incentive programs
W A T E R E F F I C I E N C Y
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 2
As water efficiency regulations become more stringent and water rates continue to rise property owners
and operators can reap immediate benefits from low-cost measures such as the installation of aerators
and quickly recoup investments in upgrading indoor water fixtures
Building managers can reduce water use by installing low-flow or ultra low-flow fixtures fittings and
equipment such as toilets and urinals that exceed current code requirements per recommendations below
Water closets max 16 gallonsflush
Urinals max 0125 to 05 gallonflush
Shower heads max 18 gallonsminute
Faucets max 10 gallonsminute
Replacement aerators max 05 gallonsminute
Metering faucets max 025 gallonscycle
To help meet the Cityrsquos aggressive water conservation goals building owners will be encouraged to move
beyond upgrades to efficient indoor water fixtures for deeper savings Cooling towers and outdoor water
use account for an average of 70 of building water consumption making them the target of increased
water conservation efforts
Reclaimed water is currently restricted to limited areas There are plans to further develop water
reclamation projects for Los Angeles however its use is limited by state health requirements and the
high cost of pumping plants and distribution facilities to deliver water from the reclamation plants to the
customers Robert Estrada of LADWP reports that the cost is an estimated million dollars per mile of
purple pipe However if Assembly Bill 2282 passes all new residential and commercial construction with
access to reclaimed water will be required to incorporate it into approved uses such as landscaping and
reclaimed water infrastructure would necessarily expand
The statersquos water supplies are at all times low underground water supplies are rapidly diminishing and
demand for water continues to grow Solutions to solve our water supply needs will involve many
different solutions from efficiency programs to lower demand a price signal and a search for new water
sources and importing water and desalinization plants
LOS ANGELES DWP
Since 1990 LA Department of Water and Power has
spent about $280 million on conservation programs
METROPOLITAN WATER DISTRICT
Metropolitan provides rebates on water efficient
fixtures financial assistance for water reduction
projects and incentives programs
MAYORrsquoS DIRECTIVE TO CUT WATER USE
(LA Times article) LA Mayor Eric Garcetti signed an
executive directive to further cut potable water use
20X2020 WATER CONSERVATION PLAN
Statewide plan enacted in 2010 to reduce water
consumption by 20 by 2020
SENATE BILL SB X7-7 2009
This Senate bill requires all water suppliers to increase
water efficiency
WATERSENSE
A recognized seal of approval for water efficiency
similar to ENERGY STAR
DOE WATER EFFICIENCY BMPS
Water Efficiency Best Management Practices from the
US Department of Energy
CONCLUSION RESOURCES
W A T E R E F F I C I E N C Y
E N E R G Y E F F I C I E N C Y
RENEWABLE
HYDRO GEOTHERMAL
WIND SOLAR
BIO-DIESEL BIO-MASS
EFFICIENCY
CO-GENERATION
EFFICIENT APPLIANCES EFFICIENT LIGHTING
EFFICIENT VEHICLES EFFICIENT BUILDINGS
INTELLIGENT POWER NETWORKS DECENTRALIZED GRIDS
CONSERVATION
GREY WATER RECYCLING ALTERNATIVE TRANSPORTATION
ENERGY EFFICIENCY RETROFIT STRATEGY
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 4
Many retrofits occur on a piecemeal basis as incentives become available or contractors provide upgrade
recommendations However many buildings especially those that are considering aesthetic or structural
improvements may benefit from a more comprehensive deep energy retrofit
The key components of a deep retrofit process are ongoing energy management assembling an
interdisciplinary team robust analysis and measurement and verification This process is not linear
phases may overlap or go on concurrently and will vary based on factors such as ownership structure
scale of building project delivery method and building complexity
While net zero was once considered a faraway goal for only the most technologically advanced buildings
the National Renewable Energy Laboratory found that there is now the technical potential for over 47
percent of existing US commercial building floor space to achieve net zero energy using existing
technologies and design processes
Net zero may seem unachievable but it can be done using the same principles as effective deep retrofits The
process starts with a solid understanding of baseline operations and expenditures and benefits from
extensive modeling and cost-benefit analysis to optimize systems choice for highest return on investment
There is considerable guidance within the market on how to retrofit buildings with sustainable
technologies to improve their environmental performance A significant barrier however to carrying out
sustainable retrofits is financing A number of financing mechanisms exist and each scenario is unique
Most building owners will choose to use
their own capital when available to avoid
time-intensive administration activities
Other traditional financing options
include loans and bond programs as well
as increases to operating fees or capital leases Building owners and managers can also take advantage of
funding improvements through bill savings (as with performance contracting with Energy Service
Contractors or ESCOrsquos) PACE bonds energy service agreements on-bill financing incentives and rebates
As utility rates continue to rise the incentive to implement energy efficiency projects has gone from cost
savings to cost avoidance This challenge is coupled with how to finance retrofit projects and what to do
once incentivized equipment has been installed
RETROFIT STRATEGY
E N E R G Y E F F I C I E N C Y
21+ Utilities represent an average of 21 of
total building expenses
ndash2012 BOMA Exchange Report
ENERGY RETROFIT OPPORTUNITIES
Monitor meter and commission main
building systems
Maximize heating and cooling efficiencies
and install variable frequency drives on
equipment
Lighting upgrades and controls (efficient
lights daylight harvesting motion sensors
etc)
Install a building automation system
invest in DDC wireless controls energy
optimization software and demand
response infrastructure
Retrofit main building systems chillers
cooling towers boilers fan motors
Building envelope Seal windows install
window films retrofit windows with
higher R-Value
Invest in on-site generation and
renewable Energy systems (fuel cell wind
geothermal and solar energy)
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 2
As water efficiency regulations become more stringent and water rates continue to rise property owners
and operators can reap immediate benefits from low-cost measures such as the installation of aerators
and quickly recoup investments in upgrading indoor water fixtures
Building managers can reduce water use by installing low-flow or ultra low-flow fixtures fittings and
equipment such as toilets and urinals that exceed current code requirements per recommendations below
Water closets max 16 gallonsflush
Urinals max 0125 to 05 gallonflush
Shower heads max 18 gallonsminute
Faucets max 10 gallonsminute
Replacement aerators max 05 gallonsminute
Metering faucets max 025 gallonscycle
To help meet the Cityrsquos aggressive water conservation goals building owners will be encouraged to move
beyond upgrades to efficient indoor water fixtures for deeper savings Cooling towers and outdoor water
use account for an average of 70 of building water consumption making them the target of increased
water conservation efforts
Reclaimed water is currently restricted to limited areas There are plans to further develop water
reclamation projects for Los Angeles however its use is limited by state health requirements and the
high cost of pumping plants and distribution facilities to deliver water from the reclamation plants to the
customers Robert Estrada of LADWP reports that the cost is an estimated million dollars per mile of
purple pipe However if Assembly Bill 2282 passes all new residential and commercial construction with
access to reclaimed water will be required to incorporate it into approved uses such as landscaping and
reclaimed water infrastructure would necessarily expand
The statersquos water supplies are at all times low underground water supplies are rapidly diminishing and
demand for water continues to grow Solutions to solve our water supply needs will involve many
different solutions from efficiency programs to lower demand a price signal and a search for new water
sources and importing water and desalinization plants
LOS ANGELES DWP
Since 1990 LA Department of Water and Power has
spent about $280 million on conservation programs
METROPOLITAN WATER DISTRICT
Metropolitan provides rebates on water efficient
fixtures financial assistance for water reduction
projects and incentives programs
MAYORrsquoS DIRECTIVE TO CUT WATER USE
(LA Times article) LA Mayor Eric Garcetti signed an
executive directive to further cut potable water use
20X2020 WATER CONSERVATION PLAN
Statewide plan enacted in 2010 to reduce water
consumption by 20 by 2020
SENATE BILL SB X7-7 2009
This Senate bill requires all water suppliers to increase
water efficiency
WATERSENSE
A recognized seal of approval for water efficiency
similar to ENERGY STAR
DOE WATER EFFICIENCY BMPS
Water Efficiency Best Management Practices from the
US Department of Energy
CONCLUSION RESOURCES
W A T E R E F F I C I E N C Y
E N E R G Y E F F I C I E N C Y
RENEWABLE
HYDRO GEOTHERMAL
WIND SOLAR
BIO-DIESEL BIO-MASS
EFFICIENCY
CO-GENERATION
EFFICIENT APPLIANCES EFFICIENT LIGHTING
EFFICIENT VEHICLES EFFICIENT BUILDINGS
INTELLIGENT POWER NETWORKS DECENTRALIZED GRIDS
CONSERVATION
GREY WATER RECYCLING ALTERNATIVE TRANSPORTATION
ENERGY EFFICIENCY RETROFIT STRATEGY
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 4
Many retrofits occur on a piecemeal basis as incentives become available or contractors provide upgrade
recommendations However many buildings especially those that are considering aesthetic or structural
improvements may benefit from a more comprehensive deep energy retrofit
The key components of a deep retrofit process are ongoing energy management assembling an
interdisciplinary team robust analysis and measurement and verification This process is not linear
phases may overlap or go on concurrently and will vary based on factors such as ownership structure
scale of building project delivery method and building complexity
While net zero was once considered a faraway goal for only the most technologically advanced buildings
the National Renewable Energy Laboratory found that there is now the technical potential for over 47
percent of existing US commercial building floor space to achieve net zero energy using existing
technologies and design processes
Net zero may seem unachievable but it can be done using the same principles as effective deep retrofits The
process starts with a solid understanding of baseline operations and expenditures and benefits from
extensive modeling and cost-benefit analysis to optimize systems choice for highest return on investment
There is considerable guidance within the market on how to retrofit buildings with sustainable
technologies to improve their environmental performance A significant barrier however to carrying out
sustainable retrofits is financing A number of financing mechanisms exist and each scenario is unique
Most building owners will choose to use
their own capital when available to avoid
time-intensive administration activities
Other traditional financing options
include loans and bond programs as well
as increases to operating fees or capital leases Building owners and managers can also take advantage of
funding improvements through bill savings (as with performance contracting with Energy Service
Contractors or ESCOrsquos) PACE bonds energy service agreements on-bill financing incentives and rebates
As utility rates continue to rise the incentive to implement energy efficiency projects has gone from cost
savings to cost avoidance This challenge is coupled with how to finance retrofit projects and what to do
once incentivized equipment has been installed
RETROFIT STRATEGY
E N E R G Y E F F I C I E N C Y
21+ Utilities represent an average of 21 of
total building expenses
ndash2012 BOMA Exchange Report
ENERGY RETROFIT OPPORTUNITIES
Monitor meter and commission main
building systems
Maximize heating and cooling efficiencies
and install variable frequency drives on
equipment
Lighting upgrades and controls (efficient
lights daylight harvesting motion sensors
etc)
Install a building automation system
invest in DDC wireless controls energy
optimization software and demand
response infrastructure
Retrofit main building systems chillers
cooling towers boilers fan motors
Building envelope Seal windows install
window films retrofit windows with
higher R-Value
Invest in on-site generation and
renewable Energy systems (fuel cell wind
geothermal and solar energy)
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
E N E R G Y E F F I C I E N C Y
RENEWABLE
HYDRO GEOTHERMAL
WIND SOLAR
BIO-DIESEL BIO-MASS
EFFICIENCY
CO-GENERATION
EFFICIENT APPLIANCES EFFICIENT LIGHTING
EFFICIENT VEHICLES EFFICIENT BUILDINGS
INTELLIGENT POWER NETWORKS DECENTRALIZED GRIDS
CONSERVATION
GREY WATER RECYCLING ALTERNATIVE TRANSPORTATION
ENERGY EFFICIENCY RETROFIT STRATEGY
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 4
Many retrofits occur on a piecemeal basis as incentives become available or contractors provide upgrade
recommendations However many buildings especially those that are considering aesthetic or structural
improvements may benefit from a more comprehensive deep energy retrofit
The key components of a deep retrofit process are ongoing energy management assembling an
interdisciplinary team robust analysis and measurement and verification This process is not linear
phases may overlap or go on concurrently and will vary based on factors such as ownership structure
scale of building project delivery method and building complexity
While net zero was once considered a faraway goal for only the most technologically advanced buildings
the National Renewable Energy Laboratory found that there is now the technical potential for over 47
percent of existing US commercial building floor space to achieve net zero energy using existing
technologies and design processes
Net zero may seem unachievable but it can be done using the same principles as effective deep retrofits The
process starts with a solid understanding of baseline operations and expenditures and benefits from
extensive modeling and cost-benefit analysis to optimize systems choice for highest return on investment
There is considerable guidance within the market on how to retrofit buildings with sustainable
technologies to improve their environmental performance A significant barrier however to carrying out
sustainable retrofits is financing A number of financing mechanisms exist and each scenario is unique
Most building owners will choose to use
their own capital when available to avoid
time-intensive administration activities
Other traditional financing options
include loans and bond programs as well
as increases to operating fees or capital leases Building owners and managers can also take advantage of
funding improvements through bill savings (as with performance contracting with Energy Service
Contractors or ESCOrsquos) PACE bonds energy service agreements on-bill financing incentives and rebates
As utility rates continue to rise the incentive to implement energy efficiency projects has gone from cost
savings to cost avoidance This challenge is coupled with how to finance retrofit projects and what to do
once incentivized equipment has been installed
RETROFIT STRATEGY
E N E R G Y E F F I C I E N C Y
21+ Utilities represent an average of 21 of
total building expenses
ndash2012 BOMA Exchange Report
ENERGY RETROFIT OPPORTUNITIES
Monitor meter and commission main
building systems
Maximize heating and cooling efficiencies
and install variable frequency drives on
equipment
Lighting upgrades and controls (efficient
lights daylight harvesting motion sensors
etc)
Install a building automation system
invest in DDC wireless controls energy
optimization software and demand
response infrastructure
Retrofit main building systems chillers
cooling towers boilers fan motors
Building envelope Seal windows install
window films retrofit windows with
higher R-Value
Invest in on-site generation and
renewable Energy systems (fuel cell wind
geothermal and solar energy)
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 4
Many retrofits occur on a piecemeal basis as incentives become available or contractors provide upgrade
recommendations However many buildings especially those that are considering aesthetic or structural
improvements may benefit from a more comprehensive deep energy retrofit
The key components of a deep retrofit process are ongoing energy management assembling an
interdisciplinary team robust analysis and measurement and verification This process is not linear
phases may overlap or go on concurrently and will vary based on factors such as ownership structure
scale of building project delivery method and building complexity
While net zero was once considered a faraway goal for only the most technologically advanced buildings
the National Renewable Energy Laboratory found that there is now the technical potential for over 47
percent of existing US commercial building floor space to achieve net zero energy using existing
technologies and design processes
Net zero may seem unachievable but it can be done using the same principles as effective deep retrofits The
process starts with a solid understanding of baseline operations and expenditures and benefits from
extensive modeling and cost-benefit analysis to optimize systems choice for highest return on investment
There is considerable guidance within the market on how to retrofit buildings with sustainable
technologies to improve their environmental performance A significant barrier however to carrying out
sustainable retrofits is financing A number of financing mechanisms exist and each scenario is unique
Most building owners will choose to use
their own capital when available to avoid
time-intensive administration activities
Other traditional financing options
include loans and bond programs as well
as increases to operating fees or capital leases Building owners and managers can also take advantage of
funding improvements through bill savings (as with performance contracting with Energy Service
Contractors or ESCOrsquos) PACE bonds energy service agreements on-bill financing incentives and rebates
As utility rates continue to rise the incentive to implement energy efficiency projects has gone from cost
savings to cost avoidance This challenge is coupled with how to finance retrofit projects and what to do
once incentivized equipment has been installed
RETROFIT STRATEGY
E N E R G Y E F F I C I E N C Y
21+ Utilities represent an average of 21 of
total building expenses
ndash2012 BOMA Exchange Report
ENERGY RETROFIT OPPORTUNITIES
Monitor meter and commission main
building systems
Maximize heating and cooling efficiencies
and install variable frequency drives on
equipment
Lighting upgrades and controls (efficient
lights daylight harvesting motion sensors
etc)
Install a building automation system
invest in DDC wireless controls energy
optimization software and demand
response infrastructure
Retrofit main building systems chillers
cooling towers boilers fan motors
Building envelope Seal windows install
window films retrofit windows with
higher R-Value
Invest in on-site generation and
renewable Energy systems (fuel cell wind
geothermal and solar energy)
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 5
TECHNOLOGY SMARTER TECHNOLOGIES
LEAD TO SMARTER BUILDINGS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 6
SMART BUILDING TECHNOLOGIES
T E C H N O L O G Y
Sophisticated building automation systems (BAS) with real-time tracking and links to energy management
systems (EMS) allow owners and managers to control their buildings remotely Proactive preventive
maintenance coupled with real-time sensing technologies will prevent downtime events and can help
owners and managers reduce peak-load charges
Ongoing commissioning linked to the cloud allows remote monitoring of large portfolios from a central
location which improves efficiency of in-house maintenance teams Janitors who walk the buildings most
frequently can become a resource for maintenance and troubleshooting and provide additional eyes and
ears in the building for energy and water-saving opportunities
Building occupants drive much of how buildings perform Although installing tenant submeters is
expensive it can produce real behavior change by helping landlords and manager engage tenants in
conservation measures Its important to tie everything to your building automation system for real-time
amp automated monitoring of HVAC operations Below is a sample of a Predictive Energy Optimization
(PEO) cloud-based software application that runs on top of existing building automation systems For
HVAC Energy Optimization amp Control from Building IQ They were selected by the US Department of
Energy (DOE) for a grant to generate datacases studies to drive market adoption and strengthen US
energy security environmental quality and economic vitality
Systems of course are only as good as the people operating them Providing on-demand education and requiring continuing education can empower building staff to highlight low to no-cost energy-saving strategies and institutionalize in-house on-going commissioning activities ndash USGBC-LA EB Committee
Image Source BuildingIQ
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
FINANCE SECTION DIVIDER SIDEBAR HEADER GOES HERE SUSTAINABILITY TRENDS REPORTING AND DISCLOSURE
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 2 8
With disclosure regulations on the rise it is important that the data that is collected is consistently
tracked and categorized so that appraisers brokers and engineers are all speaking the same language
The US Department of Energy Building Energy Data Exchange Specification (BEDES) program aims to
standardize energy definitions terms and field formats to facilitate the exchange of energy data and
building characteristic information
Working groups are currently gathering a list of all terms related to energy and building data in order to
align terminology in all US markets This terminology will be incorporated into federal grants EPArsquos
ENERGY STAR Portfolio Manager and other energy and contracting databases
With the Green Building Certification Institutes (GBCI) recent acquisition of the Global Real Estate
Sustainability Benchmark (GRESB) the real estate community now has an international dataset of
building performance information from the asset level to global portfolios
This increased transparency of building performance data helps investors to value green building
practices stimulates competition between top performers and encourages adoption of benchmarking
energy and water data in ENERGY STAR Portfolio Manager as well as pursuit of LEED and other green
building certifications Building and portfolio owners will face increasing market pressure to participate in
data disclosure and building occupants and investors will benefit from increased choice and information
about building operations cost and comfort
STANDARDIZATION amp TRANSPARENCY
S U S T A I N A B I L I T Y T R E N D S
ENTITY NAME SCOPE
USGBC LEED (Leadership in
Energy amp Environ-
mental Design)
Global
DOE ENERGY STAR America n
USGBC Green Building In-
formation
Gateway (GBIG)
Global
ULI Greenprint
Foundation (2010)
Greenprint index Global
USGBC GRESB
(2009)
Global Real Estate
Sustainability Bench-
mark
Global
GRI Global Reporting
Initiative
Global
CDP Carbon
Disclosure project
Global
UN-PRI (2009) SBCI Common Car-
bon Metric
Global
Environmental
Protection
Agency
ENERGY STAR
Portfolio Manager
American
CR (2007) The Climate
Registry
American
California (2007) AB 1103 State
Better Buildings
Challenge
Federal Program American
KEY RATINGS amp STANDARDS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
CLOSING REMARKS SECTION DIVIDER SIDEBAR HEADER GOES HERE CLOSING REMARKS amp APPENDIX
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 0
The most prevalent topics of discussion at the Existing Buildings Think Tank Roundtable were how to
further engage building owners across asset classes increase participation in underutilized programs
and share and access information about changes to codes and standards
These discussions helped focus the stakeholders that participated in the meeting on developing ways
engage the full breadth of the industryrsquos professionals and organizations to meet the cityrsquos ambitious
carbon reduction and water conservation goals To drive the conversation and inspire action the USGBC
-LA EB Committee created a comprehensive list of challenges and possible solutions derived from the
meeting at the end of every section
With the launch of several exciting opportunities in the last yearmdashLA 2030 District USGBC-LA Energy
and Water Ambassadors LEED v4 the LEED Dynamic Plaque ndash there are more tools and resources
available to improve building performance than ever before
It is the hope of USGBC-LA that this work will unify the industry and empower stakeholders to take the
next step in owning managing and operating more sustainable buildings that benefit investors tenants
and their communities
CLOSING REMARKS
C L O S I N G R E M A R K S amp A P P E N D I X
Successful leaders must address what is important to their clients and tenants More efficient use of space greater productivity in better quality space and lower energy costs matter to all those who fear obsolescence
- Norm Miller Professor University San Diego
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 1
For the purpose of this report the following building class definitions were used to describe Class A B
and C buildings
CLASS A Most prestigious buildings competing for premier office users with rents above average for the
area Buildings have high quality standard finishes state of the art systems exceptional accessibility and
aa definite market presence
CLASS B Buildings competing for a wide range of users with rents in the average range for the area
Building finishes are fair to good for the area Building finishes are fair to good for the area and systems
are adequate but the building does not compete with Class A at the same price
CLASS C Buildings competing for tenants requiring functional space at rents below the average for the area
Source BOMA International Building Class Definitions
DEFINITIONS
C L O S I N G R E M A R K S amp A P P E N D I X
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
2 0 1 4 T H I N K T A N K R E P O R T mdash C L A S S A mdash 3 2
ONLINE RESOURCES
C L O S I N G R E M A R K S amp A P P E N D I X
PARTNERS amp SPONSORS
The Think Tank Roundtable was made possible
with the support and partnership of the following
organizations
CALIFORNIA SUSTAINABILITY ALLIANCE
httpsustaincaorg
USGBC-LA EXISTING BUILDINGS COMMITTEE
httpusgbc-laorgbranches-committies
COMMONWEALTH PARTNERS
httpwwwcommonwealth-partnerscom
LEADING EDGE
httpwwwleconsultantsnet
VERDANI PARTNERS
httpwwwverdanicom
ENERGY
CALIFORNIA ENERGY COMMISSION
ENERGY STAR
ENERGY STAR PORTFOLIO MANAGER
BOMA INTERNATIONAL 30 WAYS TO SAVE ENERGY FOR LTTLE OR NO COST
NATIONAL ENERGY EFFICIENCY BEST PRACTICES STUDY
BPP BETTER METERING TOOLKIT
WATER
WATER SENSE (EPA) PROGRAM
DOE WATER EFFICIENCY BMPrsquoS
PC 2006 SECTION 604 DESIGN OF BUILDING WATER DISTRIBUTION SYSTEM
OTHER
LA BETTER BUILDINGS CHALLENGE
LA 2030 DISTRICT
CALIFORNIA PUBLIC UTILITIES COMMISSION
BEDES
CA LONG TERM ENERGY EFFICIENCY PLAN (CEESP)
CSA CLASS B OFFICE IMPROVEMENT TOOLKIT
LA GHG ASSESSMENT
LA BUSINESS JOURNAL
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS
copy 2014 USGBC-LA EB Committee
copy 2014 VERDANI PARTNERS