Get green & save green now as you prepare your buildings for net zero Presentation by Dan Mendonsa, P.E., CEM, LEED AP Energy Program Manager

What is Zero Net Energy (ZNE)? Why should I care? Outline What is Zero Net Energy (ZNE)? Why should I care? How can I implement ZNE on my existing buildings? WHAT? See the definitions ZE Definition: notes delivered and exported energy. If all of the energy is produced and consumed on-site without being supported by the grid, it’s also Net Zero. NIBS - National Institute of Building Sciences Other Def: Consumed energy (with embedded energy) is less than or equal to the on-site produced renewable energy. If you consume all of your on-site energy w/o pulling from the grid, it’s Net Zero also. RECs: Currently near $200/MTCO2e. One MTCO2e = 1400 kWHr = 110 gal gas = 190 Therms

What is Zero Net Energy? “Zero Energy” NIBS Definition: On a source energy basis, the actual annual delivered energy is less than or equal to the on-site renewable exported energy. Source Energy: energy plus energy consumed in production and transport of the energy Renewable Energy Certificates (RECs): tradable instruments that can be used to meet renewable energy targets. “REC – ZE” NIBS Definition: On a source energy basis, the actual annual delivered energy is less than or equal to the on-site renewable exported energy PLUS RECs. Categories: Building, Campus, Portfolio & Community WHAT? See the definitions ZE Definition: notes delivered and exported energy. If all of the energy is produced and consumed on-site without being supported by the grid, it’s also Net Zero. NIBS - National Institute of Building Sciences Other Def: Consumed energy (with embedded energy) is less than or equal to the on-site produced renewable energy. If you consume all of your on-site energy w/o pulling from the grid, it’s Net Zero also. RECs: Currently near $200/MTCO2e. One MTCO2e = 1400 kWHr = 110 gal gas = 190 Therms

Zero Net Energy (ZNE) This is a simplified example of a building. If you have NO delivered energy and you can supply building needs, you are ZNE. Otherwise you need to balance the source energy of the delivered energy with the exported energy.

50% Zero net energy example This is a simplified example of a campus/portfolio 100%

National Average Source Energy Conversion Factors Energy Form Source Energy Conversion Factor Imported Electricity 3.15 Exported Renewable Electricity Natural Gas 1.09 Fuel Oil 1.19 Propane 1.15 Steam 1.45 Hot Water 1.35 Chilled Water 1.04 Coal 1.05 This table gives you a sense of the relative GHG values of different energy sources.

Legislation AB32 (2006): 40% GHG reduction from 1990 (2005) by 2030 CPUC CA Eff Strategic Plan (2008): 50% of existing commercial bldgs. ZNE by 2030 Executive Order B-18-12 (2012): 50% of SF of existing CA DGS facilities ZNE by 2025 SB 100 (2018): CPUC 60% Renewable Portfolio Standard for electricity by 2030 and 100% by 2045 WHO? Local Governments WHERE? Their existing buildings WHEN? By 2030 WHY? Legislation or Local Board actions Also, the majority of your existing square footage will still be in service in 2030 with likely only a small percentage being replaced.

Benefits of ZNE Reduced GHG emissions Resiliency Grid stabilization? Regional leadership Reduced GHG: good for environment Resiliency: Less reliance on the electric grid Grid Stabilization: As we transition through more green source we should create a more stable grid (batteries) Regional Leadership: Showing the community that you walk the talk

Challenges Cost Time Inertia Cost: How do we pay for this?... I’ll cover funding options later in the presentation. Time: That’s why we’re talking about this now Inertia: may be fighting against change “we’ve always do it that way” but hopefully that’s not your lot. 

Funding Assistance Utility Programs (rebates, on-bill financing) Grants CEC Loans Municipal Leases Internal Revolving Fund Bonds REC Trading / Arbitrage How can you pay for it? Utility OBF: PG&E offers $250,000/meter @ 0% for 10 years per account w/ up to $4-million/customer CEC loans: $3 million/project @ 1% for 20 years REC Trading: Selling excess credits to other users at potentially more than they cost

Approaches Master Planning/Consolidation Use less energy to provide core services through: Reducing space needs due to future consolidation and downsizing of operations. Reusing existing space for future needs, i.e., document storage due to electronic storage, data centers shrinking due to cloud… Compacting operations with smaller person per square foot requirements. The greenest square foot is the one we don’t build. Portfolio and Campus Level How can we do it? Not a building level approach since it can cause increase in overall energy consumption due to higher density usage

Approaches (2) Submetering, Reduction and Retrofits Submeter non-building loads (i.e., EV charging stations) Reduction: Retrocommissioning and Continuous Commissioning Energy Efficient Retrofits: LED Lights Deep Retrofits Building Level Combining RCX/CCx & LED Lighting can reduce payback to less than 5 years in some cases. Deep Retrofits are at least 30% savings

Continuous Commissioning (CCx) Terms: Continuous Commissioning Monitoring Based Commissioning Real-Time Commissioning Analytics

Continuous Commissioning (CCx)

Continuous Commissioning (CCx)

Approaches (3) Electrification Combined Heat & Power (CHP) Large scale Heat pumps Heat-recovery chillers Heat pumps instead of gas packs Heat pump water heaters Electric appliances Campus/Building level Electrification: converting a gas consuming process/device to electricity consuming. Typically the device is also more efficient. If you power these items from site generated electricity, it can provide you a 2:1 credit to offset other energy consumption.

Electrification example

Example Approach 1. Add green elements to your normal facility TI refresh cycle. Include: Consolidation and efficient space usage LED Lighting, High-Efficiency HVAC & Controls Electrification Submetering 2. Implement a robust RCx/CCx program 3. Convert remaining interior/exterior lighting to LED 4. Install/purchase Green Power 5. Buy RECs

Example Costs Emissions Consumption Approach %SF $ /SF GHG Use_$ RPS   Costs Emissions Consumption Approach %SF $ /SF GHG Use_$ RPS 100% $0 $0.00 -24% 0% Refresh 10% $8 $0.80 -30% -3% RCx 50% $1 $0.50 -15% -8% Interior LED Lights $5 $2.50 -10% -5% Electrification $2 $0.20 -12% -1% Green Power -76% RECs 2% $0.02 -2% $4.22 -50% -17%

Example (Blank) Costs Emissions Consumption Approach %SF $ /SF GHG   Costs Emissions Consumption Approach %SF $ /SF GHG Use_$ RPS 100% $0 $0.00 -24% 0% Refresh % $8 -30% RCx $1 -15% Interior LED Lights $5 -10% Electrification $2 -12% Green Power -76% RECs You try it!

References “A Common Definition for Zero Energy Buildings”, US DOE, September 2015 “Commercial & District Zero Net Energy Framework”, BluePoint Planning, April 2018

The End Questions/Comments Thank you!