High Performance Buildings Congressional Caucus Coalition April 11, 2012 Washington, DC Bruce D. Hunn ASHRAE

ENERGY EFFICIENCY GUIDE for EXISTING COMMERCIAL BUILDINGS Two-part series in collaboration with BOMA and GSA: The Business Case for Building Owners and Managers Technical Implementation Developed by ASHRAE, AIA, IESNA, USGBC, DOE

The Business Case for Building Owners and Managers Authors: Landsberg Lord Carlson Goldner

Business Case: Purpose To equip decision makers to act to improve  Building energy efficiency  Operational performance Provides rationale for making economic decisions regarding energy efficiency in existing commercial buildings For owners, managers, operators, tenants, investors, and lenders

Business Case: Purpose Energy efficiency opportunities are underrealized in existing buildings, especially in investment property sector (86% of U.S. building construction expenditures in renovation of existing stock) Bottom line: “Energy efficient, green buildings aren’t just good for the environment, they are good for business”

TABLE OF CONTENTS 1) Introduction 2) Measuring Energy Efficiency and Setting Goals 3) Improving Energy Performance 4) Making the Business Case 5) Developing an Effective O&M Program

MEASURING ENERGY EFFICIENCY AND SETTING GOALS Energy Utilization Index (EUI in kBtu/ft 2 -yr) Benchmarks:  Self referencing  Portfolio referencing  Peer buildings through ENERGY STAR Portfolio Manager and/or CBECS Copyright ASHRAE. EEG ECB The Business Case

IMPROVING ENERGY EFFICIENCY Energy efficiency plan Integrated approach: whole-building as set of integrated systems and drivers (envelope, lighting, HVAC, climate, occupants)  Operational adjustments  Use free energy (OA, daylighting)  Recover waste energy  Increase equipment efficiency  Change occupant behavior, purchasing

IMPROVING ENERGY EFFICIENCY Analyze energy end use: Audits and Commissioning Copyright ASHRAE. EEG ECB The Business Case

OPPORTUNITIES BY END USE LIGHTING Lamps, ballasts, fixtures, controls Copyright ASHRAE. EEG ECB The Business Case

OPPORTUNITIES BY END USE BUILDING ENVELOPE Insulation Shading ENERGY DISTRIBUTION Ventilation Energy recovery HEATING/COOLING, WATER HEATING Equipment efficiency Part-load operation Controls

Copyright ASHRAE. EEG ECB The Business Case

MAKING THE BUSINESS CASE Barriers to energy efficiency  Capital constraints  Collateral issues  Holding period bias  Split incentives Solutions  Energy performance contracting  Green leases  Government/institutional incentives

MAKING THE BUSINESS CASE Evaluating risks  Market  Regulatory  Environmental Copyright ASHRAE. EEG ECB The Business Case

MAKING THE BUSINESS CASE Financial Analysis  Simple payback period  Net Present Value (NPV)  Internal Rate of Return (IRR)  Life-cycle costing (LCC)  Calculating cash flows and savings of an EEM

DEVELOPING O&M PROGRAM Elevate energy management importance Require systems manual Efficient operations in O&M Invest in training Performance monitoring and reporting

Copyright ASHRAE. EEG ECB The Business Case

Technical Implementation Authors: Landsberg, Carlson, Goldner, MacDonald, Slosberg

Technical Implementation: Purpose To demonstrate ways to:  Measure energy efficiency  Track energy efficiency  Develop energy efficiency plan  Implement the efficiency plan Intended for building engineers and managers; assumes working technical knowledge of building systems

TABLE OF CONTENTS 1)Introduction 2)General Considerations 3)Measuring Energy Performance and Setting Goals 4)Understanding Energy Use and End- Use/System Efficiency 5)Selecting Energy Efficiency Measures 6)Refining Financial Analysis and Setting Priorities 7)Putting the Process Together