High Performance BuildingsCongressional Caucus Coalition

April 11, 2012Washington, DC

Bruce D. HunnASHRAE

ENERGY EFFICIENCY GUIDE for EXISTING COMMERCIAL

BUILDINGS

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/ft2-yr)

• Benchmarks:Self referencingPortfolio 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 adjustmentsUse free energy (OA, daylighting)Recover waste energyIncrease equipment efficiencyChange occupant behavior, purchasing

IMPROVING ENERGY EFFICIENCY

Analyze energy end use:

Audits and Commissioning

Copyright ASHRAE. EEG ECB The Business Case

OPPORTUNITIES BY END USELIGHTING

Lamps, ballasts, fixtures, controls

Copyright ASHRAE. EEG ECB The Business Case

OPPORTUNITIES BY END USEBUILDING 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 constraintsCollateral issuesHolding period biasSplit incentives

• SolutionsEnergy performance contractingGreen leasesGovernment/institutional incentives

MAKING THE BUSINESS CASE

• Evaluating risksMarketRegulatoryEnvironmental

Copyright ASHRAE. EEG ECB The Business Case

MAKING THE BUSINESS CASE

• Financial AnalysisSimple payback periodNet 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 ImplementationAuthors: Landsberg, Carlson, Goldner,

MacDonald, Slosberg

Technical Implementation: Purpose

• To demonstrate ways to:Measure energy efficiencyTrack energy efficiencyDevelop energy efficiency planImplement 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