Post on 12-Oct-2020
Summit Summary Webinar January 23, 2013
Peter Wilcox Director, Mkt Integration
Dave Hewitt Executive Director
Molly McCabe HaydenTanner
Ric Cochrane Preservation Green Lab
A Little about NBI and PGL
NBI is a national technical NGO
working to dramatically improve the
energy performance of commercial
buildings
NBI’s Board of Directors are national
leaders in energy and green building
Sponsors include progressive utilities,
PBAs, market transformation entities
and state governments
Strategic relationships are with leading
organizations such as National Trust for
Historic Preservation’s Preservation
Green Lab (PGL), ACEEE, etc.
PGL functions as a field office of the
National Trust for Historic Preservation
and works closely with local, state and
national partners to develop strategic
partnerships and innovative content
Advances research that explores the
value that older buildings bring to their
communities
Pioneers policy solutions that make it
easier to reuse and green older and
historic buildings
Strategic relationship with NBI on
Mainstreet work
About the Summit
Held October 29-31, 2012 in New Orleans. Convening over 50 national
experts in critical aspects of deep energy savings in existing small-
medium commercial buildings. Focus was on:
Business Case & Other Drivers
Tools & Guidance
Urban Entities & Aggregation
Utility Roles & Opportunities
“The summit was a rare and very useful
opportunity to discuss EE retrofit programs and
strategies used in other areas of the country.”
“The presentations and discussions touched
on unexpected but relevant topics.”
Summit Acknowledgements
NBI gratefully acknowledges the support of NYSERDA, Efficiency
Vermont, National Grid and NEEA’s BetterBricks in helping to fund
this second Deep Savings in Existing Buildings Summit.
Thanks to all of the presenters and participants, who left each day
with well-earned sweat on their brows from their focused, deep &
collaborative work.
Finally, to the brave and generous people of New Orleans for their
courage, grace, and warmth – as well as their amazing food, music
and architecture!
Summit Objectives
Learn from latest case studies & research where significant progress has been made since last summit – what is working and why
Inform and refine efforts underway to develop and pilot innovative business cases, tools, utility opportunities & urban scaling strategies effective with small-medium sized building owners
Identify what’s missing to address market barriers to deep savings and seed partnerships/collaborations to take needed actions
Determine business-utility-urban entities and other alignments that will help fund & accelerate deep efficiency
Keep Deep Savings collaborations growing and, through facilitated backcasting workgroups, develop next and future strategies and tactics among participants, their partners & allies
Why Existing Buildings? At 2011 Summit this was still a real question
It is much clearer now
PGL’s pioneering Life Cycle Analysis study has radically
changed calculus on lowest carbon/energy buildings –
esp. when length of CRE investment cycle is factored in
95% of the more than 70 Billion square feet of existing
commercial space in the US is less than 50,000 square
feet in size – this is the target market
Existing buildings are critical to meeting climate and
energy policy goals, utility efficiency targets, and market
real estate objectives
Need to move beyond building-by-building & widget-
based approaches and integrate profound energy
savings into the urban & community fabrics
A Deep Half-Dozen: Summit Snapshot http://newbuildings.org/sites/default/files/NOSummitHighlights_0.pdf
The Business Case Advances
Molly McCabe of HaydenTanner demonstrated that energy efficiency is commercial
real estate’s and owner-user’s smartest and best investment right now.
The market requires a different business case for small- and medium-sized building
owners, one that not only looks at the total value of going deep and other typical non-
energy and energy benefits, but to economic and community revitalization benefits.
Efficient Emergency Replacements and Better Use of Incentive Data
How can “emergency replacements” become “planned equipment upgrades” that
enable major performance upgrades, right sizing and even system changeovers in
some cases
Mine prior replacement data that utilities often possess to trigger proactive
replacement upgrade planning
A Deep Half-Dozen: Summit Snapshot
Reward Going Deep through Enhanced Incentive Structures
More strategic and generous incentives – potentially including on-bill financing or
recovery - are needed to entice owners to go deep
Ecodistrict/Urban Strategies
Urban strategies are critical to scaling deep integrated retrofits.
Energy is urban economic leakage and efficiency can be effective import replacement,
a means to strengthening urban economies, according to planner Jane Jacobs
Alignment Across Multiple Beneficiaries of Deep Savings
We need to better understand how non-energy sector market and urban beneficiaries
can also provide “skin in the game” to accelerate urban and market transformation
Better Marketing
Marketing for deep savings practices needs to rise to the challenge
Create a vision of constant progress
Completing more deep projects is key to building market confidence
2012 Catalytic Success Stories Learning from Leaders
NBI previously identified over 50 deep savings case studies
with measured performance. This year we sought out the best
current examples and brought some of these to New Orleans:
Rice Fergus Miller’s Office Adaptive Major Renovation
Gerding-Edlens’s Vestas Office Adaptive Major Renovation
Central City Concerns’ Multifamily Mark Hatfield Building
Occupied Renewal
Rocky Mountain Institute’s AT&T Portfolio Challenge
A New Way to Reposition an Asset,
and a Community
Formerly a
Sears in
Bremerton,
WA
Now Fergus-Rice-
Miller Architects
Own Offices
New
Energy
Star
Score:
100
* Next slides/images courtesy of Rice-Fergus-Miller
What’s Possible? Net Zero Energy!
EUI 93 before
EUI of 21 – Zero Net Energy Platinum LEED/$105 PSF
12
Former Meier & Frank
Delivery Depot
Gerding-Edlen’s Vestas Adaptive Reuse
CREDIT: Renee Loveland, Gerding-Edlen
13
Meier & Frank Depot - Vestas Building
Energy Efficiency Economics
Base Bui ld ing
(Cost /s f )
Green Bui ld ing
Premium/sf Tota l Cost /s f
Const ruc t ion Cos t $ 124 .13 $ 9 .30 $ 133 .43
So la r Ar ray $ - $ 4 .38 $ 4 .38
Des ign Cos ts $ 10 .95 $ 1 .10 $ 12 .05
Incent ives $ - $ (5 .89) $ (5 .89)
Subto ta l $ 135 .09 $ 8 .88 $ 143 .97
% Premium 6 .6%
Performance
Annua l Energy Cos t $ 302 ,718 $ (207 ,278) $ 95 ,440
Annua l Water Cos t $ 10 ,593 $ (8 ,972) $ 1 ,621
Annua l Ut i l i t y Cos t /s f $ 1 .72 $ (1 .18) $ 0 .54
% reduct ion 69%
Payback after incentives: 7.5 years
CREDIT: Renee Loveland, Gerding-Edlen
Hatfield Building Passive House
Deep Retrofit Portland, OR
CREDIT: Central City Concern
Portfolio Engagement Successes
16
+
Big progress
in 2012 for
RMI’s portfolio
pilots
Using NBI’s FirstViewTM on AT&T
Key Focus Areas Panel
Four innovative approaches to advancing Deep Savings in
Existing Buildings that help show the way to scale. Each is tied
to a key focus area of the Summit.
Business Case: Total Value AnalysisTM - Molly McCabe
NEEA’s Integrated Measure Packages – John Jennings
RMI’S Turbocharging Efficiency Programs - Mathias Bell
EAI’s Small-Medium Bldg. Certification – Diana Fishchetti
Small-Medium Business Case
Total Value
AnalysisTM
Molly McCabe, HaydenTanner
“Green retrofits are the
single most important measure that corporations and real estate
owners can take to reduce their operating
costs, raise commercial
property values and achieve
important environmental benefits like
reduced carbon dioxide emissions.” Deloitte - http://www.deloitte.com
US Building Stock/Ownership
0
1,000
2,000
3,000
4,000
5,000
6,000
1,001 to 5,000 5,001 to 10,000 10,001 to 25,000 25,001 to 50,000
Millio
ns
of
SF
Building Floorspace
Owner Occupied
Nonowner occupied
Government Owned
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
1,001 to5,000
5,001 to10,000
10,001 to25,000
25,001 to50,000
50,001 to100,000
100,001 to200,000
200,001 to500,000
Over500,000
Flo
ors
pac
e (
Mill
ion
s o
f sq
.ft.
)
– Property
– Tenant
– Enterprise
– Community
– NOT simple
payback
Total Value AnalysisTM
©BiomatrixWeb
Future Proof
Reposition
Functional Obsolescence vs. Economic Obsolescence
Increase tenant reach – quality and quantity
Hedge
Durable income stream
Power resiliency
Property and Project Impact Analysis
Baseline Proposed Impact
Energy Cost/sf $1.75/sf $0.73/sf -58.5%
Electricity Use (kWh) 8,124,975 3,196,909 -60.7%
Gas Use (Therms) 174,895 84,476 -51.7%
Energy Use Intensity
(EUI)
100.6 43.4 -56.8%
ENERGY STAR
Rating
56 98 +75%
LEED: EB&OM NA Range: Certified to Gold +
Total Economic Value Added
ROI (10 year, discounted adjusted for inflation)
16%
NPV Cumulative Cash Flow $2,423,000
Energy Cost Savings $458,700
Asset Value Increase $8,987,000
Avoided Costs (lost lease revenue + re-tenanting TI’s, leasing commissions)
$14,307,000
PNC Business Impact
562 branches
– 93 LEED, 469 non-LEED
More Productive and Engaged
+ $461,300 per employee
Source: “The Relationship between Corporate Sustainability and Firm Financial Performance. E. Conlon and A. Glavas, Universty of Notre Dame, March 2012
Community
Jobs
Tax base
Economic vibrancy
Social health and well-being “Though buildings
and land remain
physical assets,
fundamentally they
are framed in the
context of community
and region” What’s Next? Getting Ahead of Change,
Urban Land Institute
Recap: Total Value Analysis
Simple Payback
Discounted Cash Flow
Total Value Analysis
©HaydenTanner, 2012
National Historic Trust’s
Preservation Green Lab
Mainstreet Program
Greenest Building
Life Cycle Analysis
Ric Cochrane, PGL
Credit: Doug Loescher
PGL’s Mainstreet Program
PGL’s Mainstreet Program
30
PGL’s Mainstreet Program
• When is building reuse
environmentally
preferable to demolition
and new construction?
• Are there significant
opportunities to reduce
near term carbon
emissions by reusing
buildings rather than
constructing anew?
The Greenest Building: Guiding Questions
31
Credit: Mark Huppert, PGL
Office: NW Climate Change Midpoint
Average of 60 years for offices!
Credit: Preservation Green Lab
It can take between 10 to 80 years for a new, 30 percent more energy
efficient building to overcome through operations, the climate change
impacts created by its construction.
PGL Findings: Reuse Matters
33
Credit: Mark Huppert, PGL
http://www.preservationnation.org/greenlab
Backcasting Workgroups
Five backcasting workgroups, each with 10 or fewer members & 90 minutes.
Whole systems, synergistic thinking to refine vision, create example market entity,
determine future steps stepping backward, and finally current steps in more detail.
2020 Optimal Deep EE Toolset
2020 Turbocharged Deep EE Utility
2030 Deep EE Ecodistrict
2030 Deep AEC-CRE Integrated Enterprise
2020 Deep EE Market Transformation Ecosystem
Backcasting Process & Advantages
If we begin by imagining a new vision that is far enough into the future, we
silence the internal messages and beliefs that tell us that it is impossible or
deeply improbable, so that we can focus on a strategy & next actions instead
“…backcasting is a suitable approach for designing and planning in complex
systems.” - John Bridger Robinson, credited with first defining Backcasting
“We need a new way of thinking to solve the problems caused by the old way
of thinking.” – You all know who said this…
2020 Turbocharged Deep EE Utility
Key components of a “turbocharged” utility
A clear understanding of how a “turbocharged” utility benefits
the communities it serves, as well as itself
Seamless long-term customer partnerships – knowing the
optimal points for intervention and offering incentives aligned
with integrated bundles of deep measures, operations and
occupant-behavior
Bold goals: Market penetration/year = 2-5% of existing stock
achieve EUI’s under 40 Kbtu’s/SF and targeting ZNE
2020 Vertically-Integrated
CRE Co-Enterprise Model
Vertically-integrated family of companies – a “Town Company”
Design, construction, management, ownership, redevelopment
Operating principles:
Reduce local economic leakage through deep efficiency, scale, and
continuous local investment & procurement
ZNE buildings to create enterprise/community profitability
Kids, company, community, country – quadruple bottom line
Alignments:
Businesses & region: jobs and tax base increases
Lenders & businesses: added cashflow & reduced default risk
Utilities & local investors : on-bill finance using local funds
2025 Deep Savings Ecodistrict
If You Can’t Solve Problem… Enlarge It
Driving retrofits must be a more
holistic approach
Focus on placemaking and not
Efficiency – retrofitting is just a
tool for improving communities
Create a more complete
ecodistrict framework that is not
just focused on buildings
Denver Lodo Living City Block
2025 Deep Savings Ecodistrict
Key Strategies
Run the Numbers: Create a district scale
pro forma to attract institutional investors
Mind the Legal: Create a legal structure that
can spread benefits across property lines
Stimulate Investment: Create a district feed-
in tariff for EE & PNE buildings
Take Care of People: Build professional
local capacity
Build a Strong Market: Retrofitting/District
as a generator – service providers to
compete for work
SERA , Portland Resource Flow
2020 Deep Savings Optimal Toolset
Summit Goal: Envision 2020 and define what the optimum practice for toolsets will be then
Vision: In 2020 all commercial buildings are Net-Zero Energy Capable (60-70% less energy than today).
EE is integrated into a cross set of tools and practices for the Design, Operations and Tenancy of Buildings (“connecting the DOT’s”)
2020 Deep Efficiency
Market Transformation Ecosystem
Motivators
Use bragging rights & competition – e.g. city/mayoral competitions
Spread success stories – especially at local level and by type
Create a vision of constant progress
Change economics models to total value business cases – to better frame
the decision-making metrics
Never let a crisis showing evidence of climate change go to waste
Tactics
Get infrastructure ready for change, working upstream & including financing
Work upstream with owner to address complex buildings
Package deep retrofit measure bundles so owners get multiple
advancements and integration saves more energy at lower costs
Drivers & Catalysts for Next 2-3 Years Recommendations of the Big Progress Workgroups
NBI asked participants to provide observations on
the current state of each of the four Summit focus
areas, and recommend strategies and tactics
needed for big progress in the next 2-3 years.
Small-Medium Business Case
EcoDistricts/Urban Entities
Technical Tools & Guidance
Utility Roles & Opportunities
Credit: John Naar, ETF
Small-Medium Business Case
Owner Business Case Drivers & Catalysts
Current Status:
Underserved: essentially all because owners do not understand value driver
Doing well: low income housing, government, mission-driven enterprise
Future Strategies & Tactics:
Activities that enhance esteem and brand of owner/entity
Communicate early and often re. both energy & non-energy benefits
Create conditions for neutral/positive cashflows for big upgrade replacements
Brokers & appraisers must be able to communicate value proposition:
energy budget is effectively calculating the value of a business
Appraisers required to consider EE, as in Louisiana!
Utility Roles and Opportunities
Current Drivers/Status:
Staff level resistance to change – for example Cost Effectiveness tests
Simply do not know customers well
Utilities do not get rid of programs, run to limit – partially because this
requires regulatory proceedings
In some regions, implementers are driving the agenda
Future Strategies & Tactics:
Utilities:
Marketing: will require “missionary work,” with great packaging
Hire strategic planner charged w/thinking about the future, behavior
change, overall program mix, sunsetting old programs, etc.
“Don’t incent the easy stuff any more”: lighting and HVAC
Customer Engagement
How to incent deep? Think like your customer, building owners!
Figure out how to build relationships & make strategic progress
How to get to both get to know and learn, by sharing new program concepts
Use SEM & RCM’s to give customers early success & build relationship
Architects & Engineers Channel
Need to create value for A/E’s and not just paperwork
Engage preferred A/E network, as with trade allies now
Brownbag program trainings for A/E’s
Earliest design phase is almost too late - ask what’s on the boards next?
Regulatory: Broaden, streamline, innovate Cost Effectiveness and M & V
Utility Roles and Opportunities
EcoDistricts/Urban Entities
Urban & Other Aggregation Strategies
Current state:
Disclosure and benchmarking – ensure accurate measurement
Cities and CRE working together – cities growing in size & energy impact
Policies and codes – making good progress
But are eliminating low-hanging fruit and forcing bundling
First movers are innovating – bringing early benefits & building confidence
Moving forward:
Not just large building case studies, but other iconic & also background
Time to get to not just First, but Second Movers too!
City and neighborhood competitions
NBI’s Simple Energy Tool Preview
NBI’s Simple Energy Tool [name yet TBD]
Leveraging many of the benefits of whole building energy modeling for common variants of small- and medium- sized commercial buildings, including MF
Simple inputs & low cost enables owners and others to see what’s possible upfront: “5 minutes and a nickel”
Output: comprehensive & sequenced EE measure bundles to get to deep to different levels, eg 30-40-50%, or more
How: Uses sensitivity analyses to determine which EEM’s are most relevant for a particular building type & location – a semi-custom approach
Physical
Design
Operations
Code
Weather Model
Results
NBI’s Simple Energy Tool Preview
Characterizing Existing Buildings
PGL Mainstreet Characterization
Identify opportunities for DER based on:
Underserved buildings types
Buildings of interest
Buildings at risk
Market share
Repeatability of simplified guidelines
NBI’s Simple Energy Tool Preview Strategic relationship between PGL & NBI for tool data
Key Takeaway Re-Cap http://newbuildings.org/sites/default/files/NOSummitHighlights_0.pdf
Let market know that EE is CRE’s and owner-user’s smartest & best investment
Ensure emergency & scheduled replacements” are big performance upgrades
Make more strategic and generous incentives to entice owners to go deep
Scale deep EE by employing urban mainstreet & ecodistrict strategies
Leverage non-energy beneficiaries to accelerate urban & mkt. transformation
Create a vision of constant progress & build market confidence with examples
Questions/Discussion
Slides from all presentations, background
material, Summit Snapshot and a link to this
webinar are available at:
http://newbuildings.org/index.php?q=neworleans
For more information contact:
Peter Wilcox, Director of Market Integration:
peter@newbuildings.org
Thank you!