Triple Bottom Line – The Case Study...Triple Bottom Line – The Case Study T14/S6 – Triple...

Tampa Convention Center • Tampa, Florida

Triple Bottom Line – The Case Study

T14/S6 – Triple Bottom Line

Mr. Jonathon SpitzImpact Infrastructure

August 16, 2017

Energy Exchange: Connect • Collaborate • Conserve2

We Face Enormous Challenges


New Tools + new Thinking = Achievement

Energy Exchange: Connect • Collaborate • Conserve

• Project Owner: “We need to modernize our building and it must be “green” otherwise it won’t get funded.”

• Designer: “OK, great. I have several ideas and I’ll get started right away”

• TIME BURNS OFF, then:• D: Here are some really great designs and the building

will have minimal impact on the environment, too• PO: Whoa, how much is that thing gonna cost?• D: About the same, maybe slightly higher• PO: How much would it cost if all of the “green features”

are removed? Great- do that!• D: But? OK! WTH????

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Typical Conversation

US – Hours Spent in an Office 2016

TAMPA CONVENTION CENTER

TAMPA, FLORIDA

E N E R G Y E X C H A N G E :

• C O N N E C T • C O L L A B O R A T E • C O N S E R V E

F T E

8 hrs /day

290Billion

Hours/yr

Does it pencil financially? Is it

desirable?

Will it increase in

value?Is it functional?

Well located?

Affordable?

Doing “More” Means What?


TAMPA, FLORIDA



Owner's concerns

Tenant’sConcerns

People & Planet’s

Concerns

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FINANCIAL MODELS AND PROJECTIONS

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3D SPATIAL MODELING

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ENERGY MODELS

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INFRASTRUCTURE MODELS

Tools Available


TAMPA, FLORIDA



OLD TOOLS

PEOPLE AND PLANET(NEW TOOLS)


Triple Bottom Line (TBL) Cost Benefit Analysis (CBA)

An evidence-based economic method that combines:Cost-Benefit Analysis (CBA) Determine whether the benefits of a

proposed design justifies its costs Consider the gains and losses to all

members of the society Value impacts in terms of a single,

familiar measurement – $$ Weight the relative importance of the

different impacts

Triple Bottom Line (TBL) Financial (hard dollar, soft dollar) Social (non-cash performance

benefits; community benefits) Environmental (avoided environmental

impacts)

Life Cycle Cost Analysis (LCCA) Estimate present value of life cycle

costs, including: CapEx OpEx Replacement costs Residual value at end of life


Not All Business Cases and LCCA's are created equally

• Many, many variables– Weather– Building Type– Local Wages, – Utility Costs– Social Value– Uplift of property values as a result of

implementing sustainable and resilient improvements.

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Automate with smart (but transparent!) values

Smart Defaults across 7 Categories:• Demographic (e.g. population)• Economic (e.g. property value)• Scientific (e.g. meteorological)• Cost (e.g. wastewater rates)• Health (e.g. employee asthma)• Social (e.g. recreational value)• Environmental (e.g. local value of water quality

improvement)

From Sources Such as:

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• Typical Life Cycle Costs• PLUS• Social & Environmental

– Social Value of clean water

– Local air pollution– Flood risk

Weigh Costs & Benefits Include Social + Environmental

Quantify the total NPV across dozens of metrics

Prologis Case Study

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Case Study: Who Benefits from a Green Warehouse?

International Park of Commerce, California

Challenge: How can Prologis prove - to all affected stakeholders - the true benefits of their green building investments?

Evaluated:• Indoor and outdoor water use reduction using efficient fixtures

and landscaping• Energy use reductions relative to Title 24 and LEED Volume• Difference in trucking miles from using regional materials• Indoor environmental quality benefits • Additional green space for recreation and ecological benefits


Prologis Results

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Results: The Tenants are the biggest winners.


Prologis: Stapleton Business Center

The risk-adjusted results show the project has a positive value


• Uses TBL-CBA across their entire North American real estate portfolio and intend to use it globally.

• NEW: To define and refine their design-build specifications for future facilities.

• EXISTING: Use Social & Environmental results to demonstrate their good citizenship locally.

• Report results in their annual disclosure to investors

Prologis takes TBL-CBA nationwide

Ft Bliss Case Study

Replacement Hospital

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• Site: 1.1M square foot hospital renovation in El Paso, Texas

• Client: U.S. Army Corps of Engineers

• Scope: Evaluated 15 design alternatives considering water scarcity, waste water limitations, solid waste limitations, energy security, and energy independence

• Result: Identified investments with highest Sustainable ROI, including $3.8M Net Present Value for onsite wastewater reuse

Replacement Hospital Site Details

Case Study: Fort Bliss


Case Study: Fort Bliss Results

Results For On-Base Wastewater Reuse Option:

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• 2016 – Points for using TBL-CBA to inform Design Alternatives

• 2017 – More Points!!!!

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What does USGBC Think about TBL – CBA?


Summary

1. Become fluent in sustainable economics for change!

2. TBL-CBA is an accepted method Integrating TBL-CBA into your workflow is beneficial

3. Doing so improves the likelihood of project funding

4. Earn LEED Points

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U.S. Green Building Council


Mr. Brendan OwensUSGBC

August 16, 2017



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LEED v4 System Goals



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• Energy• Generation• Transmission• Distribution

• Water• Rainwater• Waste Water• Potable

• Waste• Construction• Operational

• Food• Availability• Sustainability

• Other Infrastructure• Resilience• Emergency Response

• Transport• Roads• Sea/Air Terminals• Mass Transit

• Landscape• Ecosystem Services• Biodiversity• Habitat

• Buildings• Energy• Water• Waste• Human Experience

• Information/Telecom• People

• Health and Well Being• Social Equity



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• Energy - PEER• Water• Waste - ZWBC• Food• Transport – Parksmart, LEED Transit• Landscape - SITES• Buildings - LEED• Information/Telecom• People - LEED and WELL• Materials


Implementing TBL within Federal Government –Department of Homeland Security


Dr. Teresa R. PohlmanExecutive Director, Sustainability and Environmental

ProgramsAugust 16, 2017


DHS Mission


8 Operational Components

• United States Coast Guard (USCG) • Customs and Border Protection (CBP) • Citizenship and Immigration Services

Ombudsman (CISOMB) • Federal Emergency Management Agency

(FEMA) • Federal Law Enforcement Training

Center (FLETC) • Transportation Security Administration

(TSA) • U.S. Immigration and Customs

Enforcement (ICE) • United States Secret (USSS)

Chief Financial Officer (CFO) Civil Rights and Civil Liberties (CRCL) Office of Counternarcotics Enforcement (CNE) Domestic Nuclear Detection Office (DNDO) Executive Secretariat (ESEC) Office of the General Counsel (OGC) Office of Health Affairs (OHA) Office of Inspector General (OIG) Office of Intelligence and Analysis (I&A)Office of Legislative Affairs (OLA) Management (MGMT) National Protection & Programs Directorate (NPPD) Science and Technology (S&T) National Cybersecurity Center (NCSC) Office of Operations Coordination and Planning (OPS) Office of Policy (PLCY) Privacy Office (PRIV) Office of Public Affairs (OPA) United States Citizenship and Immigration Services (USCIS)

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DHS Components and Offices


Getting to know DHSMission: Secure the nation fromthe many threats we face

– Guarding against terrorism– Securing our borders– Enforcing our immigration laws– Improving our readiness for, response to and recovery from disasters– Maturing and unifying the Department

Organization: Major Components – U.S. Coast Guard – Federal Emergency Management Agency– Customs Border Protection– Immigration and Customs Enforcement– Federal Law Enforcement Training Center– National Protection and Programs Directorate– U.S Secret Service– Transportation Security Administration– U.S. Citizenship and Immigration Services– Science and Technology Directorate


• People: 230,000

• Vehicles: 49,174– 10,300 are alternative fuel vehicles– 280 are hybrid electric

• Number of Buildings: 14,100

• Gross Square Feet of Buildings: 91.5 million– Owned – 60%– GSA/Leased – 40%

• Energy Costs: $400 million

• Environmental Liabilities: $1028 million

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Getting to know DHS


Mission Resilience

The Department of Homeland Security is committed to being a leader in sustainability.

DHS continues to ensure that its operations and actions are carried out in an environmentally, economically, and fiscally sound manner – providing DHS Components with outcome-driven assistance – from concept to impact.

Mission Resilience


DHS Sustainability and Environmental Programs

• Operates 3 highly technical interactive functions:

Environmental Planning/Historic Preservation

Energy

Environmental/Sustainability


Mission Resilience

Incorporating sustainable practices into the DHS mission…conserves energy and natural resources

reduces pollution and contamination releasesenhances the workplace through less exposure to hazardous materials

and chemicalsstrengthens national security by encouraging energy independence

Solar @ FLETC CheltenhamLED Lighting @ CBP Yuma

Cogen @ USCG Baltimore Shipyard


DHS FY 16 Sustainability Program Results

Metric Item

FY 2016 Goal(as established in OMB Scorecard

reporting)

DHS StatusAchieved

GoalWorking

Toward Goal

Scope 1&2 GHG 26% 33.7% Scope 3 GHG 7% 41.4% Water Intensity 18% 25.1%

Energy Intensity 2.5% 3.2%

Sustainable Acquisitions 95% 100%

Renewable Electricity 10% 10%

Clean Energy 10% 6.3%

Electronics Stewardship and Data Centers

EPEAT 95%Power Mgmt 100%End-of-Life 100%

EPEAT 99.7%Power Mgmt 100%

End-of Life 100%

Sustainable Buildings (GSF)

15% 12.9%


Resilience InitiativesCharters the governance and oversight of climate change adaptation and

resilience within the Department

Published the first ever DHS Directive addressing climate

resilience within the Homeland Security mission. Directive 023-03: Climate Resilience, July 22,

2016

Acknowledges the direct link between actions related to climate resilience and national security and articulates the Department's policy to integrate

climate resilience into strategic planning, risk management

frameworks, and continuity programs.

Representatives participated and provided key remarks at

the first White House Roundtable on Equitable

Disaster Planning.

FEMA partnered with the EPA, NY State Department of State, Suffolk County, and

Nassau County to form the Long Island Smart Growth Resiliency Partnership. The

Partnership was developed to provide long-term assistance to impacted

communities and implement recovery efforts to create sustainable and resilient

communities.

DHS via FEMA issued a Notice of Proposed Rulemaking (NPRM) to

implement EO 13690, Establishing a Federal Flood Risk Management

Standard and a Process for Further Soliciting and Considering Stakeholder Input (January 2015), and the Federal

Flood Risk Management Standard.

“Strengthening Climate Adaptation Planning in

Fiscal Year 2016 and Beyond” goals were achieved in FY2016:

Increased the adoption of disaster-resistant building codes in communities with

high risk of earthquake, flood, and high winds.

Increased the percentage of U.S. population covered

by planned climate mitigation.

Increased the percentage of states with the FEMA Threat

and Hazard Identification and Risk Assessment (THIRA). Conducted three national

workshops for States to help improve THIRA quality.

Developed a benefit cost toolkit that included

ecosystem services under Hazard Mitigation Assistance (HMA)

Programs.

Published a Community-Level Climate and Hazard

Resilience Indicators guide.

DHS launched the Climate Change and Health Disaster Resilience

Workgroup.

In response, FEMA launched a case study project titled, Creating

More Equitable Post-Disaster Outcomes by Addressing the

Needs of At-Risk Populations: A Conversation among FEMA

Programs.


DHS Resilience & Energy Projects

2018Goal: Additional $9 million Achieved: In progress!

2017Goal: Additional $9 million Achieved: $5.5 million ++

2016Goal: $72 million $83 million

2013Goal: $48 million Achieved: $54 million


DHS Resilience & Energy Projects

FEMA Solar Photovoltaic Analysis

USCG attributes ~30% of the 38% reduction in EUI directly to Alt financed projects


DHS Critical Infrastructure

Critical infrastructures compose the assets, systems, and networks so vital to the United States that their incapacitation or destruction would have a debilitating effect on security, national economic security, national public health and/or safety.


DHS Critical Infrastructure

16 U.S. critical infrastructure sectors have been defined in the Presidential Policy Directive 21 (PPD-21), as:

9. Critical Manufacturing10. Water & Wastewater Systems11. Dams12. Emergency Systems13. Healthcare and Public Health14. Defense Industrial Base15. Financial Services16. Nuclear Reactors, Materials,

and Waste

1. Chemical 2. Communications 3. Energy4. Food and Agriculture5. Government Facilities6. Information Technology 7. Transportation Systems8. Commercial Facilities


Energy Sector Risks

Risks

Cybersecurity Physical Security and Resilience

Natural Disasters and Climate Resilience

Aging Infrastructure and Need for Investment


Critical Infrastructure Community

Federal

State

Local government

Tribal and territorial

governments

Private companies

Individual citizens


Closing

• Our critical infrastructure and what we are doing right now in sustainability, environment, and energy are supporting the ‘business case’

• Triple Bottom Line includes critical infrastructure

• Programs and tools out there to assist us with the TBL – should maximize all

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