Leveraging an Energy Plan Managing Energy to Reduce Operating Cost and Improve Building Valuation

2 Leveraging an Energy Plan Establish an Energy Policy Track Energy Costs Obtain Energy Star Certification Manage LEED-EB Certification Reduce Energy Costs Maintain Sustainability Improve Building Valuation

3 The Process Obtain Energy Star Rating Create Energy Plan: Manage Energy Costs, Energy Star & LEED-EB Understand Building Characteristics Reduce Energy Usage & Costs Create Sustainable Energy Program Go For Energy Star Certification Use Energy Star For LEED-EB Certification Market Energy Star Rating Setup LEED-EB Management Incrementally Improve Energy Star Rating Track Energy & Bldg Operations Itemize, Track & Manage LEED- EB Points Market LEED Certification

4 Getting Started First: Obtain Energy Star Rating Twelve months of utility bills Building construction information Second: Understand Building Characteristics HVAC system Temperature control operations Generate list of potential energy measures

5 Energy Plan Five Fundamentals 1. Establish an Energy Policy 2. Create Awareness Program 3. Manage Space Usage 4. Measure & Verify Energy Performance 5. Track & Evaluate Equipment Performance

6 Establish an Energy Policy Set Standards Temperature & Humidity Limits HVAC Operating Parameters Lighting Operating Schedules Authority for Making Changes

7 Create Awareness Program Building Energy Information Why and How of Building Energy Staff & Occupant Involvement Participatory Activities Energy Updates & Notifications

8 Manage Space Usage Common & Leased Space Management Occupancy Schedules Extended Hours Management Environmental Expectations Optimized Space Opportunities

9 Measure Energy Performance Measure & Verify Energy Usage Create Weather-Corrected Energy Baseline Setup Energy Tracking Procedures Evaluate Monthly Performance Compute Monthly Energy Star Rating

10 Measure Equipment Performance Track & Evaluate Equipment Operation Collect Incremental HVAC Operating Data Provide Data Storage for Long- term Evaluation Perform Daily Operating Analysis Perform Long-term Operating Analysis

11 Equipment Monitoring Chiller demand limiting Boiler operating temperatures / outside air reset Air handler VFD speeds AHU leaving air temperature Mixed air setpoints / outside air damper operation Domestic hot water circ pump control / temperatures Operating Methods, Setpoints & Schedules, Examples:

12 Managing Energy Costs Getting Started Utility Tariffs How energy costs are charged Demand is usually separate charge (~ 50%) Utility Bills Complex charges Billing Data Collect demand and usage as well as cost Include billed and actual demand charges

13 Energy Star Leveraging Energy Star EPA national rating service Percentile rating method Energy Star is national benchmark Use to reduce actual energy usage & cost Improve LEED-EB rating

14 Energy Star Impact Improved Building Valuation * Up 30%+ ($352 vs $290 per sf) Improved Building Lease Rates * Up $2.00 to $2.35 per sf * University of San Diego/CoStar Report 2007

15 USD & CoStar - RealValues Example: from four previously audited buildings, we evaluated the multiplying effect where the ratio of total savings plus rental rate increase produces ratios of 3.40 to 6.00 – a huge multiplier over energy savings alone. The results of the CoStar study show that every $1.00 saved in energy cost can produce $3.40 to $6.00 in total annual value. This level of return significantly improves classical payback calculations. Add premium sales price for high Energy Star rated buildings and…. Every energy $1 saved can yield an additional $10 to $20 in building valuation over 5 yrs.

16 Obtaining LEED-EB Certification Levels Certified34 – 42 points Silver43 – 50 points Gold51 – 67 points Platinum68 – 92 points Start with Certified – minimum 34 points Leverage Energy Star – up to 15 point contribution

17 Energy Plan & LEED-EB Energy & Atmosphere – 30 points 15 points for Energy Star rating 3 points for Performance Measurement Indoor Environmental Quality – 19 points 5 points for Indoor Air Quality 5 points for Occupant Comfort

18 Managing LEED-EB Easy: Track Points Hard: Track Progress Harder: Minimize Cost Hardest:Sustaining Process Tracking Points & Progress: database task Minimizing Cost: management task Sustaining Process: real-time data task

19 Institutionalize Effort Building Operation Website: Plan implementation Energy Star progress LEED management Building operations Best practices Sustainability success

20 Results Making it Work Plan – building energy management Track – energy usage & cost Improve – equipment operations Institutionalize – all building information Leverage – increase valuation and lease rates

21 Summary Start with an Energy Plan: Reduce energy usage & cost Obtain an Energy Star Rating Obtain LEED-EB certification Sustain energy conservation Improve valuations and lease rates