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Transforming Existing Buildings Into Sustainable Facilities

October 24, 2013

Laurie Gilmer P.E., CFM, SFP, LEED‐AP, CxA, CDT Facility Engineering Associates, P.C

The things you really need to know!

• The impact of Sustainable Facility Management

• Conservation and Reduction in difficult times

1

2

3

4 5

6

7

8

• The five-things you need to know

Agenda

Sustainability is the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs [Brundtland]

World Commission on Environment and Development: Our Common Future

– April 1987

Sustainability Defined

ECONOMIC

Triple Bottom

Line

Profit

People

Planet

People

Process

Place FM

Sustainable Facility Management is a process of integrating the people, place and business of an organization that optimizes economic, environmental, and social benefits of sustainability

Sustainability

Sustainable Facility Management

40% Energy Consumed 22% Residential 18% Commercial

39% CO2 Emissions 9.7% Water (2005)

Source: 2010 Buildings Energy Data Book

These buildings account for

The U.S. has 124.4 million residential and 4.9 million commercial buildings

Why are Existing Buildings Important?

Distribution of Floorspace by Principal Building Activity, 2003

Source: Energy Information Administration, 2003 Commercial Buildings Energy Consumption Survey. Released in 2006

Why are Existing Buildings Important?

70 Billion Square feet

That’s about $200 Billion in annual utility cost!

Buildings40%

Transportation28%

Industry32%

Data Source: 2007 DOE Building Energy Data Book

0% 5% 10% 15% 20% 25% 30%

Cooking, 2%

Computers, 3%

Refrigeration, 4%

Office Equipment, 6%

Ventilation, 6%

Water Heat, 7%

Cooling, 13%

Heating, 14%

Lights, 26%

Other, 13%

Commercial Buildings (18%)

The Energy Context

The Emissions Context

Source: ENERGY STAR

Industry Shift Toward Voluntary & Mandatory Performance Disclosure

Corporate Headquarters Model

* RS Means Square Foot Costs ** APPA Benchmarks *** IFMA Benchmarks #25 Headquarters Average

Impact: Sustainable Facility Management

Total Cost of Ownership

$50,000,000$150,000,000$250,000,000$350,000,000$450,000,000$550,000,000$650,000,000$750,000,000$850,000,000

0 4 8 12 16 20 24 28 32 36 40 44 48

Year

8 stories, 640,000 square feet Design & Construction Costs (CRV): $82,368,000* Capital Renewal: 2% of CRV** O&M Budget $5.69/sf*** Inflation: 3%

D&C: $82M

CR: $279M

O&M: $411M

Total: $772M

In Terms of Total Dollars . . . Total Cost of Ownership

Impact: Sustainable Facility Management

Savings in O&M and Capital Renewal . . .

Save 10% in O&M

D&C: $82M Total $ NPV

CR: $279M → $14M → $3.2M

O&M: $411M → $41M → $9.4M

Total: $772M → $55M → $12.6M

Save 5% in Cap. Renewal . . . A good reason to be green!

Savings

Total Cost of Ownership Impact: Sustainable Facility Management

In Terms of Total Dollars (Millions) . . .

$772

$55

$0 $2,000 $4,000 $6,000 $8,000

Building Cost

Building Savings

With modest operational and capital cost savings

Impact: Sustainable Facility Management

Typical design and construction costs account for only about 2% of an organization’s total cost to exist.

Life-Cycle Costs of a Facility

92%

6% 2%

Salaries of Occupants Cost of Operating and Maintaining Original Design and Construction

(Cotts, D.G., The Facility Management Handbook, Second Edition, 1999)

The Cost of Productivity Average annual cost for

Personnel: $300-600/sf

For facilities: $20/sf

For energy: $2.50/sf

The Value of FM Impact: Sustainable Facility Management

In Terms of Total Dollars (Millions) . . .

$772

$55

$6,950

$695

$0 $2,000 $4,000 $6,000 $8,000

Building Cost

Building Savings

People Cost

People Savings

Impact: Sustainable Facility Management

What about this?

We know this is possible

Leadership in Energy & Environmental Design (2000)

Energy Star (1992)

BRE Environmental Assessment Method

(1993)

GBCA Green Star (2003)

Japan Sustainable Building Consortium (2002)

HK- BEAM (1995)

Tools: Building Rating Systems

BREEAM LEED CASBEE Green Globes Green Star Green Mark Three Star SystemUK US Japan Canada Australia Singapore China

Building Management

Management Operations and mangement

Energy Use Energy Energy Energy Energy Energy Efficiency

Energy Savings

Health and well-being

Indoor Environmental

Quality

Indoor Environment

Indoor Environment

Indoor Environmental

Quality

Indoor Environmental

Quality

Indoor Environmental

Quality

PollutionEmissions and other impacts Emissions

Transportation Transportation

Land use and ecology Site

Outdoor environment on

siteSite

Land use and ecology

Environmental Protection

Land savings and outdoor

environment

MaterialsMaterials & Resources

Resources and Materials

Resources, building materials

and solid wasteMaterials Materials savings

Water Water Water Water WaterEfficiency

Water Savings

Innovation Innovation Other green features and innovations

Preference items

Quality of Service

Off-site environment

Project Management

Customers

New Construction

Existing

Buildings Operations & Maintenance

Commercial Interiors

Core & Shell

Development

Homes

LEED™ assesses the performance of buildings in the following areas: • sustainable sites • water efficiency • energy and atmosphere • materials and resources • indoor environmental quality • innovation and design process, regional priority

Tools: Building Rating Systems

Retail

Schools

Homes

Healthcare

Current LEED Buildings in the U.S. LEED Rating System Total

Buildings* Certified

Buildings* LEED-NC 28,794 1,876

LEED-EB 8,912 590

LEED-CI 8,238 1,019

LEED-C&S 5,784 151

LEED Schools 1,979 76

Healthcare 196 0

Neighborhood Development 348 39

*as of 7/5/13

Tools: Building Rating Systems

First: Know your organization!

Getting to know your facility

Environmental Resources, Pollution, Climate

Social People, Community, World

Economic Money, Money, Money

Getting to know your facility

Which initiatives are right for you?

Sustainable Sites Energy Efficiency Water Efficiency Indoor Environmental

Quality Materials & Resources Green Building Goals

Getting to know your facility

The things you really need to know!

• The impact of Sustainable Facility Management

• Conservation and Reduction in difficult times

1

2

3

4 5

6

7

8

• The five-things you need to know

Agenda

FM Triple

Bottom Line

Social

Environmental

Economic

Heavily skewed toward Economics

Is “Sustainable” Always the Best

Option?

The Link Between TBL and SFM

Initiative Intent Environmental

Benefit Economic

Benefit Social Benefit

Reflective Roof ↓ Heat Island Effect +/- +/- +/- Low H20 Fixtures ↓ Water Use + + +/- Commissioning ↓ Energy Use + + +

Reduced Mercury ↓ Hazardous Waste + - +/- Lighting Retrofit ↓ Energy Use + + +/- More Windows ↑ Daylighting - - +

Education ↑ Knowledge + +/- +

The Link Between TBL and SFM

1. Energy 2. Water 3. What goes in? 4. What comes out? 5. Indoor environment

five-things you need to know

The five things you need to know

1. Coal

2. Natural Gas

3. Oil

4. Uranium

The Elusive “Negawatt”

Energy Efficiency The 5th Fuel

#1 Energy

The Importance of Energy Efficiency Lighting Heating and Cooling Plug Loads

U.S. Energy Information Administration

#1 Energy

What’s It For? • Standardized Metric of Energy Performance • Compare Efficiency Across Country (Scale of 1-100)

• Normalize Energy Consumption

ENERGY STAR buildings:

• Use 35% less energy than average buildings

• Cost $0.54 less per square foot to operate when compared to an average building ($2.10/sf less than a below-average building)

• Prevent 25 billion pounds a year of greenhouse gas emissions, relative to typical facilities

#1 Energy

Identify under-performing buildings

Note: “CBECS” is the Energy Information Administration’s Commercial Building Energy Consumption Survey, http://www.eia.doe.gov/emeu/cbecs/contents.html

Technology Doesn't Always Equal Performance...

0%

25%

50%

75%

100%

ENERGY STAR 1999 - 2001 61.4 kBtu/ft2/yr

CBECS Bottom 25% 226.3 kBtu/ft2/yr

`

Technology does not guarantee efficiency

1

Worst Performers Best Performers

Num

ber

of B

uild

ings

25 50 75 90

Top performing buildings use 3 to 4 times less energy per ft2 than the worst performers.

Newer buildings are equally represented

across all quartiles.

Based on a sample of 4,000 buildings nationwide.

10

39% of buildings with a rating of 75 or better are less than 25 years old

42% of buildings with a rating between 25 and 74 are less than 25 years old

35% of buildings with a rating between 0 and 24 are less than 25 years old

EPA Performance Rating

New doesn’t always equal efficient

Lights

Process

HVAC

© Facility Engineering Associates 2012

Where should you concentrate?

#1 Energy

Domestic Process Irrigation

#2 Water

Light-powered touch-free faucets Dual flush valves Low-flow water closets &

urinals High efficiency and waterless

fixtures Flow restrictors and metering

at lavatories

Domestic Water Use

#2 Water

Consumables Durable goods (FF&E) Construction/TI Lamps/bulbs Food service

#3 What Goes In?

Set your photocopiers and printers to copy on both sides by default.

Transmit electronic files, not paper files when possible.

Implementing PC Power Management

can save up to $90 per PC annually

#3 What Goes In?

Durable goods and efficient work practices

Sustainable Purchasing

1988 www.ecologo.org/en/

1992 www.energystar.gov

1989 www.greenseal.org

Voluntary Energy Efficiency

Labeling Scheme http://www.emsd.gov.hk/

#3 What Goes In?

Verification Programs

What is Your Waste Stream and Why Should You Care About It? It is the overall flow of the wastes from the building to a landfill,

incinerator, or other disposal site.

•Reduce

•Reuse

•Recycle

#4 What Comes Out?

Custodial Staff Health & Safety Occupant health and productivity

-- Reduced absenteeism -- Higher productivity -- Improved recruiting -- Increased retention

#5 Indoor Environment

Typical design and construction costs account for only about 2% of an organization’s total cost to exist.

Life-Cycle Costs of a Facility

92%

6% 2%

Salaries of Occupants Cost of Operating and Maintaining Original Design and Construction

(Cotts, D.G., The Facility Management Handbook, Second Edition, 1999)

The Cost of Productivity Average annual cost for Personnel: $300-600/sf

For facilities: $20/sf

For energy: $2.50/sf

#5 Indoor Environment

The Value of Facility Management

Green products Sustainable equipment Dilution strategies Standard operating procedures Training Strategies to promote hand hygiene Guidelines for safe handling of chemicals (spill

prevention, etc.) Daytime cleaning Occupant feedback

Green Cleaning Programs

#5 Indoor Environment

The things you really need to know!

• The impact of Sustainable Facility Management

• Conservation and Reduction in difficult times

1

2

3

4 5

6

7

8

• The five-things you need to know

Agenda

How Long Will This Take? How Much Will It Cost?

Where does your money come from?

Conservation and Reduction Common Questions:

Saves Energy Reduces GHG Emissions

Saves Water Saves Money

Conservation and Reduction

What is included in a Capital Budget?

• Future cyclical repair and replacements • Measures that extend service life or retain the usable condition • Major activities with a maintenance cycle in excess of one year • Systems that have reached the end of their useful life

Capital Budget: Typically 2-4% Replacement Value

Capital Budget

Conservation and Reduction

What is included in an Operating Budget? • Service and routine maintenance • Utilities • Custodial services and cleaning • Pest control • Grounds care and landscaping • Environmental operations and record keeping • Waste hauling and waste diversion (recycling) • Security services

Conservation and Reduction

Operating Budget

Based on Initial Rating

1–49 New equipment & best practices

50–74 Best practices & equipment upgrades

75–100 Congratulations! Build on your success

Capital Budget

Operating Budget

Conservation and Reduction

How to Improve

Facility Operating Current Replacement Value Index: Typically 2 to 4%

Capital Budget: Typically 2-4% of Current Replacement Value

What happens when these numbers shrink?

Deferred Maintenance increases Facility Condition Index decreases

Preventive Maintenance decreases Corrective Maintenance increases

Conservation and Reduction

You need to know: Total cost of ownership You need to know how to: Reduce operating cost You need to be able to speak: Return on investment and Payback

Conservation and Reduction

Know Your Numbers!

Tools for SFM

• Strategy (TBL)

• Energy

• Water

• Carbon

• Finance “The first tool is to get educated” – Brenna Walraven

Use the Right Tools

© Facility Engineering Associates 2012

The Future of Buildings: Net-Zero and High Performance

Produce as much energy as they consume and significantly reduce GHGs

Double service life of building materials, products, and systems and minimize life cycle impacts

Halve the use of domestic water (to 50 gal/day/person), maximize water recycling and rainwater harvesting, and minimize storm water runoff

Achieve breakthrough improvements in indoor occupant health, productivity, and comfort

Enable design of new buildings and retrofits of existing buildings that over the life cycle:

1. Develop the enabling measurement science to achieve net-zero energy, sustainable high-performance building technologies

2. Develop net-zero energy building technologies and strategies 3. Develop the scientific and technical bases for significant reductions

in water use and improved rainwater retention. 4. Develop processes, protocols, and products for building materials

that minimize resource utilization, waste, and life cycle environmental impacts.

5. Develop the knowledge and associated energy efficiency technologies and practices needed to promote occupant health, comfort, and productivity.

6. Enable technology transfer for net-zero energy, high-performance green buildings.

“Transformational Advances” Needed

The Future of Buildings

2030 - any commercial building constructed

2040 - 50% of U.S. commercial building stock

2050 - all commercial buildings

The Net-Zero Energy Commercial Buildings Initiative

The Future of Buildings

Summary Remarks

Sustainability encompasses management of natural resources and monetary resources

Think long term and life cycle

Know your numbers, know your organization

The key to transforming our existing buildings is Sustainable Facility Management

Laurie Gilmer P.E., CFM, SFP, LEED‐AP, CxA, CDT laurie.gilmer@feapc.com

Thank You!