wilshire center/koreatown green building retrofit program presented by : caroline simcra/la doug...
TRANSCRIPT
Wilshire Center/KoreatownGreen Building Retrofit Program
Presented by :
Caroline Sim CRA/LA
Doug Nordham, P.E. Arup
Gary Russell, AIA WCBIC
Christine Magar, AIA, LEED AP Greenform
David Hodgins, LEED AP Clinton Climate Initiative
March 3, 2011
Agenda
• Introductions of Program Team
• Program Goals and Objectives
• Program Process and Steps
• Opportunities and Benefits for Participants
• Case Studies and Examples
• How Do You Get Started?
Program Team Members
• Doug Nordham, P.E. , Arup– Program Manager
• Gary Russell, AIA, WCBIC– Community Liaison
• Christine Magar, AIA, LEED AP, Greenform– Sustainability Consulting
• David Hodgins, LEED AP, Clinton Climate Initiative– Financial Strategy
Did you know?
40%
40%
72%of U.S. GHG emissions generation
of U.S. electricity consumption
of U.S. primary energy consumption
48%Including building construction and embodied energy
Buildings in the U.S. account for -
Goals and Objectives
“And with 50-70% of existing buildings expected to still be in use in 2050, reducing energy demand by retrofitting existing stock will be a key policy instrument.”
Dr. Jean Rogers, Nick Offer. “High Performing Property Portfolios.” A2 Magazine Issue 7: 18-19. Arup
“As newer net zero buildings come on line, existing building stock will find it more difficult to compete with these new, more resource efficient buildings. They need to adapt, or they could become obsolete.”
Mark Watts, Clinton Climate Initiative
Goals and Objectives
Why are existing buildings an important part of energy and carbon reduction?
•WCBID Cool District Program target of 80% Carbon reduction by 2050
•Provide FREE building energy assessments to eligible building owners
•Through the assessments, identify the feasible energy reduction projects
and package those that will provide less than a 3 year payback
•Work with potential Energy Project Lenders to bring “packaged” financing
options to the building owners
•Create an ongoing Program structure that will last for several years and
be self-funding and sustaining
Goals and Objectives
The Program Goals include the following:
Why provide FREE Building Energy Assessments?
A Lawrence Berkeley National Lab study of 60 buildings of different types showed that:
• Over 50% had control problems
• 40% had HVAC equipment problems
• 15% had missing equipment
• 25% had BAS with economizers, VFDs, and advanced applications that
were simply not operating correctly.
Savings from Energy Assessments
• Value of Energy Savings: $0.11 ‐ $0.72/sq. ft.
• Value of Non‐Energy Savings: $0.10 ‐ $0.45/sq. ft.
Source: Assoc. of State Energy Research Technology Internships and US Department of Energy
Goals and Objectives
Building Energy Assessments – The Process
Preliminary Assessment
Investment Grade Audit
Review of Opportunities
Financing and Design
Project Implementation
A Building Energy Assessment is a structured process that identifies viable and beneficial energy reduction/management opportunities within a particular facility.
Building Energy Assessments: Aligning Goals with Information
Information Sources Goals
Improving Operations &Maintenance
ImprovingExistingAssets
BuildingOperations & Maintenance
Budget
Energy Usage
Data
ReducedOperating
Cost
BuildingManagement
Systems
BuildingDocuments
ReduceEnergy &Carbon
UpgradeBuildingSystems
Improve Tenant Comfort
Staff &Tenant
Discussion
CapitalReplacement
Budget
Identify Viable EE Measures
Preliminary Assessment
Investment Grade Audit
Review Opportunities
Financing & Design
Project Implementation
What’s Included in a Building Energy Assessment?
•Review building utility bills
•Conduct site walkthough and equipment inventory
•Identify potential energy efficiency measures
•Calculate energy and cost savings
• Analyze economics and return on investment
• Consider incentives and tax credit opportunities
• Determine measure costs and economics
Program Process and Steps
Typical Building Energy Assessment Results
CONTROLS PROBLEMS
IMPLEMENTATION COST
EN
ER
GY
US
E
ENERGY BASELINE
SCHEDULING/ENABLING
ECONOMIZER/OUTSIDE AIR LOADS
EQUIPMENT EFFICIENCY IMPROVEMENTS
TOTAL ENERGY SAVINGS(Average 25-35%)
Reference LBNL
PLANT OPTIMIZATION
SYSTEM / ZONE OPTIMIZATION
Program Process and Steps
Typical Building Energy Assessment Results
CONTROLS PROBLEMS
IMPLEMENTATION COST
EN
ER
GY
US
E
ENERGY BASELINE
SCHEDULING/ENABLING
ECONOMIZER/OUTSIDE AIR LOADS
EQUIPMENT EFFICIENCY IMPROVEMENTS
TOTAL ENERGY SAVINGS(Average 25-35%)
Reference LBNL
PLANT OPTIMIZATION
SYSTEM / ZONE OPTIMIZATION
DIMINISHINGRETURNS
RETURN ON INVESTMENTavg = 3 Years
Program Process and Steps
Building Energy Assessments – The Process
Preliminary Assessment
Investment Grade AuditInvestment Grade Audit
Review of Opportunities
Review of Opportunities
Financing and Design
Project Implementation
Program Process and Steps
Go forward with EE Projects?
Energy Project Financing
• What is It?
• What can we typically finance?
• What types of financing are available?
• Considerations and risks
• Typical Results
Preliminary Assessment
Investment Grade Audit
Review Opportunities
Project Implementation
Financing & Design
Program Process & Steps
Energy Project Financing
• What is it for?– Approach for financing capital cost of energy efficiency
retrofit projects
• How does it work?– Energy cost savings provide a cashflow to repay the loan
• What to Finance?– Energy Efficiency Measures (can include water)
• What types available?– Grants – Incentives (especially utility and State)– Banks/Lenders– Energy Service Companies– Self-Funded
Types of Energy Project Funding
• Grants – typically lower amounts to fund pilots, research, or seed money – limited with great effort
• Incentives – Typically retroactive from Utilities, and Local, State, and Federal Government tax breaks
• Self-Funding – Savings from early investments that have quickest payback (< 1 yr) fund additional efficiency investments
• Bank/Lender Funding – Borrow money at standard interest rates to invest in energy measures
• ESCO – Loans money for investment, manages implementation, paid for by energy savings
Energy Project Financing
Typical Savings with Energy Efficiency Investments
-10
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10 11 12 13
Years
An
nu
al U
tilit
y C
os
t ($
mill
ion
)
Cumulative EE SavingsBusiness as UsualEnergy Efficient CostSeries3Efficiency Savings Investment
Self Funded $25M Investment @ 25 - 35% Savings
$75 Million Cumulative Savings in 13 Years
Energy Project Financing
ESCOs (Energy Service Companies)
• One stop shop for funding and implementation• Contract based, with payments and profit from utility
cost savings• Traditionally focused on “low hanging fruit”• Early ESCO (90s) contracts were heavily slanted
towards ESCO and along with above tendency created a poor impression and reduced savings
• ESCO work with the government has forced contracts to be more fair
• Pro-active third party audits and consulting can also improve ESCO results
Energy Project Financing
• Extended Equipment Life----Lower Repair and Maintenance
Costs
• Increased Thermal Comfort----for (happier) Tenants
• Improved Indoor Air Quality----for (happier) Tenants
• Reduced Operating/Energy Costs
• Increased Safety/Reduced Liability
•Greater Building/Asset Value
•Pre-requisite to Renewable Energy
Energy Efficiency Benefits for the Building Owner
Owner Opportunities and Benefits
Energy demand reduction
Efficient supply
Renewableenergy
CO2 Reduction
Electricity and Natural gas reduction by 29%
Arup’s energy consultants reduced energy usage at UCSF’s most energy intensive research laboratory, bringing it into line with similar facilities and saving $354,573 per year, a 36% reduction in annual energy costs, and a simple project payback of 0.6 years. Awarded UC’s “best practice” award in 2009.
Case Study: UCSF Mt Zion Research Center
Total Cost/Benefit
Energy Savings - $354,573Implementation Cost - $710,000Simple Payback – 0.6 years after incentives
Case Study
Arup’s energy audit for Time Equities, Inc. highlights how improving energy efficiency not only reduces a building’s operational costs but also enables corporations to achieve their sustainability related goals, such as reducing their carbon footprint.
Case Study: Time Equities, Inc. – Audit
CO2 Reduction
Annual reduction in CO2 emissions is estimated at 1,165 klbs. Per year, a 40% reduction.
Total Cost/Benefit
Energy Savings - $295,000Simple Payback – Less than 5 years
Case Study
Arup’s energy consultants conducted a major energy assessment for Pfizer. As a result of the study, Arup identified and managed implementation of energy efficiency measures, resulting in savings of over $1 million per year with a simple payback period of less than 6 months and reduction of 5,000 tons of CO2 annually.
Case Study: Pfizer Global R&D Campus
Case Study
Total Cost/Benefit
Energy Savings - $1,023,913Implementation Cost - $380,500Simple Payback – 0.38 years
CO2 Reduction
5,000 Tons of CO2 reduced annually20% energy reduction
Next Steps
1. Contact WCBID or Arup to request your FREE Building Energy Assessment
2. If your building is selected, we’ll schedule a meeting and site visit with you
3. We’ll evaluate your building and then meet to discuss results and future options
4. If appropriate, conduct the IGA.
5. Arrange Project Financing
6. Install energy efficiency measures
7. Receive cost savings and other benefits!
How do you get started?
Discussion and Questions
THANK YOU
Caroline Sim CRA/LA – 213.368.0651 – [email protected] Nordham Arup – 310.578.4400 – [email protected] Russell WCBIC – 213.487.7003 – [email protected] Magar Greenform – 323.464.2002 – [email protected] David Hodgins Clinton Climate Initiative - [email protected]