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Greenbuild 2011 presentation on deep retrofit methodology
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The Retrofit Triangle!The Retrofit Triangle!Monetizing green building efficiency gains by linking
technology operations and financetechnology, operations and financeGreenbuild International Conference and Expo
Convening what comes next in the green building movement
Thursday, April 14, 2011
1
The Retrofit TriangleD i l H t (O ti )
PANELISTS
Every successful energy/resource efficiency retrofit
Monetizing green building efficiency gains by linking technology, operations and finance
Daniele Horton (Operations)Sustainability ManagerThomas Properties Group
James Finlay (Finance) Every successful energy/resource efficiency retrofit involves an ongoing integration of three normally distinct and separate functions: operations, technology and finance. This three sided relationship
d it i f ti h f th R t fit
James Finlay (Finance)VP, Sr. Commercial Appraisal Manager, Wells Fargo
A i ddh D dh (T h l ) and its information exchange forms the Retrofit Triangle. An expert from each discipline will illustrate by examples the challenges and key elements needed to create this vital linkage. When set up
Aniruddha Deodhar (Technology)Sustainability Program Manager Autodesk
David Hodgins (Moderator) g pcorrectly, data flowing from the building’s energy/resource management operation can support financing to achieve ever higher levels of performance res lting in al e creation
g ( )Building Energy Efficiency Retrofit Program, Clinton Climate Initiative
Collaborators:Research: Genaro Bugarin performance resulting in value creation. Illustrations: Jonathan Smith
2
Discussion Objectives:Discussion Objectives:1. Recognize the need for
integrating technology, operations and finance to spur retrofits
2. Learn what data is required to judge the investment risk and make finance availablemake finance available
3. Understand how implementing efficiency retrofit projects translates to investment value with social and environmental benefits
3
Existing Building RetrofitsExisting Building RetrofitsRetrofits are a win-win solution to environmental and economic challenges
• 98-99% of the US building stock ismade up of structures that are alreadybuilt or near completionp
• Carbon emissions need to be cut 80% by 2050 and US Buildings are responsible for 40% of CO2 emissionsresponsible for 40% of CO2 emissions
• Nearly 75% of U.S. Commercial Buildings are 20+ yrs old and ready for a g y yRetrofit
• Building Retrofits Offer Lowest Cost, Highest PayoffHighest Payoff
• President Obama passed the “Better Buildings Initiative” to catalyze private‐sector investment through a series of incentives to make existing buildings more efficient.
The Retrofit Triangle!The Retrofit Triangle!• Monetizing green building efficiency gains by linking technology, operations and finance
• Breaking down the SILOS to monetize the benefits and spur green building retrofits• Breaking down the SILOS to monetize the benefits and spur green building retrofits
I . Operations - Investigate, Implement, Improve
III T h l
II . Finance - Assess, Access Capital, Appraise
III . Technology - Model, Measure, Manage
1. INVESTIGATE
2. IMPLEMENT
3. IMPROVE
OPERATIONSSection I
OPERATIONSDaniele HortonSustainability Manager
6
Sustainability ManagerThomas Properties Group
1. INVESTIGATE
7
Building Operations last a lifetime!Building Operations last a lifetime!Applying integrative design principles to help managing and financing building retrofit projects during ongoing operations. p j g g g p
Design / Construction Operations (Life of Building)Design / Construction
O ti E t O G i P
30% - 40% 60% - 70% life cycle cost
One time EventCapital BudgetsFirst Cost
On-Going ProcessOperating BudgetsOngoing Costs
Integration for design solutions through Eco-Charrettes
Integration of financeand operations through technology!Eco Charrettes technology!
8
Set Goals & Create TeamSet Goals & Create TeamApplying integrative project delivery (IPD) principles to help managing and financing building retrofit projects during ongoing operations
Gather DataGather Data The first step in the retrofit process is to gather data perform audits and link them
Level I ASHRAE Walk-through surveygather data, perform audits and link them to the technologies best suited to achieve a particular goal.
S S
Level II ASHRAE Detailed survey and energy analysis
Level III ASHRAE Detailed analysis of capital-intensiveSTEPS:
• Gather and track data• Establish baselines
capital intensive modifications (known as Investment grade audits)
• Benchmark• Analyze• Get technical assessments and audits.
10
Build an Energy ModelBuild an Energy Model Soft Audit Process; good screening tool to identify Energy Efficiency Opportunities
Energy Modeling data is used to:
• Analyze retrofit options to achieve t t i ithi b d tgreatest energy savings within budget
• Achieve aggressive performance targets• Compare Model Results vs. Actual Data
(Utility Bills) to identify potential anomalies with energy consumption
• Assist in getting financing & rebates
• Select mutually exclusive investments
• Balance energy performance optimization Carbon footprint reductionoptimization, Carbon footprint reduction, energy savings and positive net present value
11
Develop a BaselineDevelop a Baseline • Develop a baseline or “business as
usual” case to compare against theusual case to compare against the value of the efficiency savings and investments.
• Failure to recognize business-as-usual investments is a key barrier to energy efficiency.
• These capital investments become avoided future costs when efficiency i t t l th th finvestments replace them, therefore making the efficiency much more economical.
CNP Case Study I 2003/2010 Electrical Consumption61.6% Increase in occupancy with only a 1.3%
12
p y yincrease in kwh consumption due to deep energy saving retrofits. Over $12M Savings since 2003
Identify OpportunitiesOften energy systems are original and retrofits can save 20%-50% in energy costs
Identify Opportunities
City National Plaza . Before and After retrofit photos
Sample Retrofit Opportunities
Sustainable Water Efficiency Energy & Materials & Indoor Air
Sample Retrofit Opportunities
Sustainable Sites
Water Efficiency Energy & Atmosphere
Materials & Resources
Indoor Air Quality
Restore open spaces Install metering devices & controls
Monitor , meter & commission main building systems
Perform a waste Stream Audit
Implement Indoor Air Quality BMP’s
Implement erosion control strategies
Perform ongoing Distribution system audits, leak detection and repair
Maximize heating and cooling efficiencies & Install variable frequency drives on equipment
Invest in trash compactors
Monitor Outdoor Air Delivery and increase natural Ventilation
Invest in alternativecommuting
Install native & drought resistant Landscape
Lighting upgrades and controls (Efficient lights, Daylight
Invest in recycling infrastructure:
Reduce Particulates in Air Distribution (Install g
transportation programsp ( g , y g
Harvesting, motion sensors etc. containers, loading dock collection areas
(high performance filters)
Install EV charging stations, bike racks, provide storage and
Maximize Indoor Plumbing Fixture and Fitting Efficiency (toilets, urinals, faucets,
Install a building automation system , invest in DDC, wireless controls, energy optimization
Infrastructure area to support recycling of construction waste
Install Carbon Dioxide (CO2) Monitors
showering facilities aerators and showerheads) software & demand response infrastructure
Light Pollution Reduction (Shield exterior lamps, install lighting controls for interior lighting)
Install efficient Irrigation systems: Drip Irrigation, Smart Irrigation Controls, Soil Sensors controls & Weather
Retrofit main building systems: chillers, cooling towers, boilers, fan motors
Purchase entranceway mats
for interior lighting) Sensors controls & Weather Stations
Heat Island Reduction (White roofs, light colored paving etc…)
Implement a Cooling Tower Chemical Management and water efficiency program
Building Envelop: Seal windows , install window films, retrofit windows with higher R-Value
Invest in green cleaning equipment & materials
Stormwater Management (Green roof, rain capture, etc…)
Invest in on-site generation and renewable Energy systems (Fuel Cell, Wind, Geothermal & Solar Energy)
Right steps in the right orderRight steps in the right orderStart with load reduction projects. There is no silver bullet! It’s ok to start in small steps as long as continuous improvement is made overtime.
There is no silver bullet! The goal is to continue to make progress and improvements over time…
p g p
OI
Meter & Load Fan and Plant
RO
Time and Capital Outlay
Meter &Tune up Lighting
LoadReductions Motor
SystemsUpgrades
Time and Capital Outlay
Source: BOMA BEEP (BOMA Energy Efficiency Program) 15
Analyze OptionsAnalyze OptionsUsing advanced technology tools and cost analysis methods to get insightful data to enable superior analysis and decisions.
Economic decision tree: • Evaluate Individual and Bundled
Measures
Using NPV to choose between mutually exclusive investments (sample analysis):
Measures • Perform a Gap Analysis • Use NPV to choose between
mutually exclusive investments.y• Create Pathway to Very Low
Energy/Net Zero • Tell a Compelling Story
Source: Energy Star Building Manual . Chapter 3 Investment Analysis: http://www.energystar.gov/ia/business/EPA_BUM_CH3_InvestAnalysis.pdf
16
2. IMPLEMENT
17
FinanceFinanceInnovative financing options exist to help with accessing capital with attractive rates and terms for deep energy retrofits
Key Financing Mechanisms
Purchasing Loans, Bonds
Lease Operating / Capital Leases
PerformanceContracting
ESCO financing
New Financing PACE, On-bill Financing, gOptions
, g,Energy Service Agreements (ESA)
18
LeasesLeases Energy Aligned Leases are key for sharing the costs and benefits of green investments and address the split incentive dilemma that can hinder retrofits. Benefits to investors will be impacted by leases, holding periods, and the ability to have tenants pay for theand the ability to have tenants pay for the benefits they receive.
Lessons Learned: Sample Green Leasing Checklist for Landlords & Tenants to Discuss and Mutually Agree Upon:
• Address the split incentive barrier through Energy Aligned Leases*
• Incorporate green / energy aligned leasing provisions into your master lease to allow
y g p
Financial responsibility and ownership of benefits of green investments ENERGY STAR RatingLEED Certification
19
provisions into your master lease to allow pass through costs as operating expenses
• Can work with most lease types and structures
LEED CertificationStrategies for reducing travel demand and car dependency Efficient water management Management of energy use and greenhouse gas emissions Purchase of Green Power
• Leases should counts savings over the length of a projected payback period, instead of the useful life of the improvements
Smart Metering Controllability of SystemsManagement of indoor environment quality Green Cleaning & maintenanceEfficient waste managementEfficient waste management Sustainable Purchasing PolicyWaste minimization and recyclingGreen TI Guidelines
19
Contract Construct and CommissionContract, Construct and Commission Smart and integrated performance contract structures take advantage of rebates, incentives and innovative financing structures to fund retrofits.
Lessons Learned:
• Financing structures involving properties with debt / mortgages are more challengingmore challenging
• REITs have to go to revolving credit facilities or investors and therefore money spent on capital is money that o ey spe o cap a s o ey acan’t be distributed to investors. Using financing structures such as ESA & PACE means less debt on their b k d f d il bl fbooks… and more funds available for investors
20
3. IMPROVE
21
Measurement and Verification (M&V)Smart technologies and M&V tools assist with continuous buildings operations improvement so that you can do more with less
Measurement and Verification (M&V)
DRIVERS KEY FUNCTIONS MAIN TOOLS BENEFITS
Increasing energydemand
Gather Data Ongoing Metering& Smart Meters
Higher EnergyEfficiency
Increasing cost of power
Analyze Data Building Automation
Lower Operating and Maintenance Costs
Increasing economic pressures
Present data insimple and useful
Commissioning Better Indoor Air Qualityeconomic pressures
• Occupancy• Earnings • Capital
simple and useful ways
Quality
Increasing focus on f
Predictive, d ti d
WirelessS l ti
Greater Occupant C f tenergy performance
• Tenants• Government• Investors
adaptive and automated actions
Solutions,Direct Digital Controls
Comfort , Controllability and Productivity
Increasingly Accumulate Software Lower g ycomplex building management key performance indicators (KPI’s)
knowledge with feedback loop
Applications environmental impact
Increasingly limited Connect building Dashboards Increased NOI
22
Increasingly limited building management resources
Connect building structure to the functions it exists to fulfill
Dashboards Increased NOI and property values
M&V: More Automation & VisibilityM&V: More Automation & VisibilityBetter technology, increased automation and higher performance drives building value
Technology Today• DDC I Wireless• Image capture + sensors
Typical Building• Pneumatic
Analog • Image capture + sensors• Intelligent Processing• Large memory• Programmable
• Analog• Manual gauges• High operations cost
Programmable
Manual Instrumentation, Not BLIND! VISIBLE!
Automation facilitatesProgrammable, No Diagnostics…Equals: Wasted Energy, Higher Downtime, More Labor Required 23
Automation facilitates superior management and performance
Share the Success!Share the Success!
Hard Value Soft Value
Business benefits are the main drivers for green building retrofits
Hard Value Soft Value 8.5% Reduction in operating costs Market differentiation
& reputation
6.8% Increase in building values Growing tenant demand
9.2% Increase in ROI Reduced obsolescence
6.4% Increased occupancy Lower energy cost risk
6.2% Increases in rent Increase in regulations
Investment Cost
$11MInvestment Cost
$13 2MC SDeep Retrofit Success Stories
Source: McGrall Hill, Green Outlook 2011: Green Trends Driving Growth
$11MAnnual energy savings
$4.3M
$13.2MAnnual energy savings
$4.4M
City National Plaza Empire State BuildingOffice OfficeLos Angeles, CA New York, NY
Energy Reduction
37.5%Energy Reduction
38%3.2 Million GSF 2 (51) Story Towers
2.8 Million GSF(102 Stories)
$11 M (Investment Cost) $13.2 M (Investment Cost)$ $
24
$4.3 Million Annual Energy Savings
$4.4 Million Annual Energy Savings
37.5% Energy Reduction 38% Energy Reduction
Increased Building Performance TransparencyIncreased Building Performance TransparencyPerformance Ratings, standards and regulations for the Real Estate Industry
Entity Name ScopeUSGBC (2010) LEED Building Performance
PartnershipGlobal
Greenprint Foundation (2010)
Greenprint index Global( )
GRESB(2009)
Global Real Estate Sustainability Benchmark
Global
CDP CarbonDisclosure project
Global
UN-PRI (2009) SBCI Common Carbon Metric Global
ENERGY STAR (Prior to 2004)
Energy Star Portfolio Manager American
CR (2007) The Climate Registry American
BREEAM International Sustainability EuropeanBREEAM (2010)
International SustainabilityAlliance (ISA)
European
Green Rating Alliance (2010)
Green Rating European
IPD (2008) Eco Ledger European
California (2007) AB1103 Municipality
Better Building Partnership (2008)
Benchmarking Working Group Municipality
New York City(2011)
LL 84 Municipality
25
(2011)
Operations Conclusions
• Advanced technology tools aid in
Operations Conclusions
• Advanced technology tools aid in gathering quality data to enable better analysis and decision-making
• Innovative financing structures can help get through the cost barrier to pay for retrofits... But accessing these requires
d d j d !good pre- and post-project data!
• Sharing modeling data can help get access to capital whether internal or 3rdaccess to capital, whether internal or 3party
• Ongoing M&V tools enable continuous building operations improvement
• Sharing data post retrofit can help support hard and soft value creation andsupport hard and soft value creation and higher property values
1 ASSESS1. ASSESS
2 ACCESS CAPITAL2. ACCESS CAPITAL
3 APPRAISE3. APPRAISE
Section II
FINANCEFINANCEJames Finlay
27
VP, Sr. Commercial Appraisal Manager Wells Fargo
1 ASSESS1. ASSESS
28
Financing is not the problem -Financing is not the problem -Undefined risk is the problem
Construction Risk is ComplexImprecise models
EE upgrade overview: Compare, select
d Lack of collaboration
Scope too ambitious
upgradesNew financing optionsUse technology
Financing
RiskCollaboration
Relationships Finance RiskLack of baseline
to measure against
Risk Adjusted Well
defined
p
Rate of Return
defined Risk
29
Define the Investment RiskDefine the Investment Risk
Money flows to investments
Money flows to investments
High RiskHigh Risk Low RiskLow RiskUnknown Risk
Unknown Risk
investments when there is a
clear and
investments when there is a
clear andCorp. Junk Bonds
US Treasury ???
clear and measurable risk adjusted rate of
clear and measurable risk adjusted rate ofOK OK Not adjusted rate of
return.adjusted rate of
return.OK OK ot
OK
Use technology to establish point of beginning
30
and then track on-going performance
Investment risk can be viewed differentlyInvestment risk can be viewed differently
PeopleCreditReal EstateCredit
Cash flowRisk
Reversion*, value at sale Risk
R l tiRegulationsUtility Prices
31
y
Incentives, disclosure requirements
But it’s OK ! Complex risk challengesBut it s OK ! Complex risk challenges have been dealt with before.E t 3 d t itt t i d fi d t d dExpert 3rd party written reports using defined standards
32
Ownership & debt culture varies by “tribe”Ownership & debt culture varies by tribe
1 SFR / 1 4 units1. SFR / 1-4 units2. Small C & I: SBA, mom &
pop/owner-user < $2MMpop/o e use $
3. Medium C & I: larger owner-user/part owner-user, local investor –$2MM t $10MM$2MM to $10MM
4. Large C & I: multi-tenant leased investment – >$10MM$
5. Multifamily: medium / large investor grade apartments, condos
6. Specialty: gas station, fast food, hotel/motel, theater, data centers
7 MUSH: M i i l U i it S h l
33
7. MUSH: Municipal, University, School (grades 1-12), Hospitals
2 ACCESS TO CAPITAL2. ACCESS TO CAPITAL
34
Investment Capital Access Depends onInvestment Capital Access Depends on each Unique Situation
Holding Period MUSH vs.. Investor
Building Size SBA vs.. Large C&I
Upgrades Choice EE or Distributed Generation
Split Incentive Green Leases
35
Source of Investment/Financing DollarsSource of Investment/Financing Dollars
CASH Owner Cap Ex budgetCASH Owner Cap Ex budgetDEBT Traditional bank loanOTHER Utility, public, ESCO
SBA Utility On-Bill
ata SBA
GrantIncentives
y
PerformanceContracting
Da Incentives Contracting
PACE, PACE Plan C
36
Solar programs, DG programs
Construction Lending is specialized riskyConstruction Lending is specialized, risky1. Construction lending specialized1. Construction lending specializedUpgrades have different risk profilesUpgrades have different risk profiles
• Costly to manage• Small loans not practical
2 Often credit based not collateral
• Costly to manage• Small loans not practical
2 Often credit based not collateral
1. On‐site power –Solar photovoltaic, wind, hydro
2 Energy Efficiency (EE)
1. On‐site power –Solar photovoltaic, wind, hydro
2 Energy Efficiency (EE) 2. Often credit based, not collateral3. EE complex to verify4. Financing matters, just not as
2. Often credit based, not collateral3. EE complex to verify4. Financing matters, just not as
2. Energy Efficiency (EE) –Insulation, windows, sensors
3. Power offset
2. Energy Efficiency (EE) –Insulation, windows, sensors
3. Power offset
N C t ti
much as imagined, won’t changemuch as imagined, won’t changesolar thermal, fuel cells, cogensolar thermal, fuel cells, cogen
Existing Buildings New Construction
37
3 APPRAISE3. APPRAISE
38
“Market Value“ based on buyers sellers
Sales CompWhen property owners are i d thi k
Market Value based on buyers, sellers
IncomeSales Comp
Incomeconvinced something makes sense, that’s the market
Three Hits at Value
Information + intuitionQuantity + Quality at Value
Owner’s “skin in the game” is the t ti t t
Decision To
Cost*most conservative test
Data + Analysis
Decision To Act Investments
yNo Action
39
Value = dependable results over timeValue = dependable results over time• Snapshots performance views not enough• Make energy/resource use visible• Behavioral economics can be tricky
Occupants Appraiser Government
• Lots of people, all need to be convinced
Owner Occupants Appraiser Underwriter Governmentexaminer
Operations B k Chief credit
40
C levelOperations staff RE agent
Banker officer
Spinning the value flywheel Learn & EarnSpinning the value flywheel – Learn & Earn1. As-Is, where-Is
b li hi t i ti
11
baseline historic operation2. Fruit on the ground
building Maintenance
22
66building Maintenance
3. Low Hanging Fruit payback < 2 years
VALUE VALUE STAGESSTAGES
y y4. Medium Payback
2-7 years
33
555. Long Payback >7 years
6 Net Zero (Energy/Resources)44
6. Net Zero (Energy/Resources)The true goal, or even better the Living Building Challenge
41
Deep Retrofits = Value Beyond CostDeep Retrofits = Value Beyond Cost Savings
• Expense Savings• Expense SavingsHard Internal
"Not everything that counts can be• Reversion• Reversion
Soft Internal
counts can be counted, and not
everything that can• Productivity• Employee Attraction• Productivity• Employee Attraction
everything that can be counted counts."
p yp y
• Reputation• ReputationSoft External• Reputation• Corporate Mandate• Reputation• Corporate Mandate
42
Building/Resource Management System isBuilding/Resource Management System is vital• A monitoring system is an investment not a cost• A monitoring system is an investment, not a cost
• Payback on reliability, visibility, lower risk + record keeping
• Monitors the Resource Quintet –Energy, Water, Waste, Carbon, IEQ (Indoor Environmental Quality)
43
Operating data + Analysis = ReportsOperating data + Analysis = Reports
“Ho m ch mone are o losing?”“How much money are you losing?”
“Audit = Action”“Audit = Action”
The Resource Appraisal:The Resource Appraisal:a new type of due diligence
44
report is needed
FINANCE CONCLUSIONSFinance Conclusions
• A monitoring system is an i t t t t
Finance Conclusions
investment, not a cost
• Integration: transparency, data over time manage risk behavioraltime, manage risk, behavioral economics
• Public/private credit enhancement• Public/private credit enhancement, incentives
• Value beyond cost savings: risk• Value beyond cost savings: risk and reputation
• Need credible due diligence• Need credible due diligence reporting by experts, just like other risks have been assessed in the past… The Resource Appraisal
45
1. MODEL
2. MEASURE
3. MANAGE
Section III
TECHNOLOGYTECHNOLOGY Aniruddha DeodharSustainability Program Manager
46
y g gAutodesk
1. MODEL
47
Building Information Modeling EnablesBuilding Information Modeling Enables Sustainable Building Operations
MANAGE
Intelligent
BUILDPLAN
model-based process
DESIGN
48
BIM Guides Evaluation Of EnergyBIM Guides Evaluation Of Energy Conservation Measures (ECMs)
Lighting Upgrades?Plant Upgrades?
Renewables?Building Envelope?
Model courtesy of DesignGroup and the National Audubon Society
Rapid Energy Modeling Streamlines EnergyRapid Energy Modeling Streamlines EnergyAssessments Of Existing Buildings
Energy AnalysisEnergy Analysis
Detailed ModelDetailed Model
Satellite ImagesSatellite Images AnalysisAnalysisModelModel
PhotosPhotos
AerialAerialECM
Prioritization ECM
Prioritization Conceptual Model
Conceptual Model
Aerial ImagesAerial Images
& Optimization
& Optimization
Laser
Survey
Laser
SurveySurveySurvey
capture model analyze
Conceptual Energy Analyses Allow EarlyConceptual Energy Analyses Allow Early Stage Environmental Assessments
2. MEASURE
52
International Performance M&V Protocol Endorses Calibrated Simulation
Chart from International Performance Measurement & Verification Protocol, Concepts and Options Determining Energy and Water Savings Volume 1, Efficiency Value Organization, Sep 2010
53
Modeling And Measuring Optimize ECMsNet Zero Energy
Modeling And Measuring Optimize ECMsgy
calibration
Plant Upgradesdesign alternatives
what-if analyses
R bl
y
Renewables
ECM 2financial metrics
ECM 154
lifecycle cost analyses
Better Instrumentation Increases DataBetter Instrumentation Increases Data Transparency
SBuilding Control System Sub-meters Sensors
Building Floor Cubicle
3. MANAGE
56
Understanding Building Energy ManagementUnderstanding Building Energy Management
Services
Control VisualizationTechnologies
Hardware Analytics Active Systems
Innovative Hardware Technologies ThatInnovative Hardware Technologies That Deliver High Return On Investment
Direct Digital Controls; Wireless, Smart Thermostats; Pulse, Real‐time Smart MetersDirect Digital Controls; Wireless, Smart Thermostats; Pulse, Real‐time Smart Meters
Occupancy; Motion; Daylight; CO2 SensorsOccupancy; Motion; Daylight; CO2 Sensors58
Elevator Upgrades; Data Center EfficiencyElevator Upgrades; Data Center Efficiency
Efficient Lighting, Daylight HarvestingEfficient Lighting, Daylight Harvesting
Variable Frequency Drives; Economy cyclesVariable Frequency Drives; Economy cyclesVariable Frequency Drives; Economy cyclesHigh SEER RTUs; Turbocor CompressorsVariable Frequency Drives; Economy cyclesHigh SEER RTUs; Turbocor Compressors
Control Layer Helps Monitor And ManageControl Layer Helps Monitor And Manage Hardware
Smart Wireless ControlsSmart Wireless Controls
Demand Side Management ControlDemand Side Management Control
Motion, Occupancy and Lighting ControlsMotion, Occupancy and Lighting Controls
Security and Access ControlSecurity and Access Control
59
Advanced Analytics Aid Decision MakingAdvanced Analytics Aid Decision MakingStatistical AnalysisStatistical Analysisy• Benchmarking• Input Inference
y• Benchmarking• Input Inference
Empirical AnalysisEmpirical Analysis• Historical Information• Advanced Data Mining• Historical Information• Advanced Data Mining
Predictive AnalysisPredictive Analysis• Calibrated Simulation• Rules Engines
N l N k
• Calibrated Simulation• Rules Engines
N l N k• Neural Networks• Neural Networks
Built Upon Billions Of Time Series Control Data Points60
Visualization Technologies EnhancesVisualization Technologies Enhances Communication And Visibility
Building Performance DashboardBuilding Performance Dashboard
3D, Real‐time, BIM‐based Visualization3D, Real‐time, BIM‐based Visualization3D, Real time, BIM based Visualization3D, Real time, BIM based Visualization
Portfolio Analysis and BenchmarkingPortfolio Analysis and Benchmarking
B ildi P f L b liB ildi P f L b liBuilding Performance LabelingBuilding Performance Labeling
Active Systems & Services Deliver End toActive Systems & Services Deliver End-to-End Solutions for Sustainable Buildings
Demand ResponseDemand Response
Building AutomationBuilding Automation
Energy ServicesEnergy Services
Integrated Building Management (Energy, Facilities, Operations, Asset, Maintenance)Integrated Building Management (Energy, Facilities, Operations, Asset, Maintenance), p , , ), p , , )
Lighting HVAC RetrofitsLighting HVAC RetrofitsLighting, HVAC RetrofitsLighting, HVAC Retrofits
Bringing It All TogetherBringing It All Together
13MODEL
MANAGEverify
optimize
MEASURE2
63
Real time BIM based Energy PerformanceReal-time, BIM-based Energy Performance Dashboard
64
Alternate Incentive And Contract StructuresAlternate Incentive And Contract StructuresNeeded For Successful Retrofits
Owner
BIM Web BasedCollaboration
Architect/ User
Digital Modeling and Collaboration
Contractor
S F S
Architect/Engineer
E SE
User
Lessons from Integrated Project Delivery65
Some Of The Standards AcceleratingSome Of The Standards Accelerating RetrofitsPhase Entity Name Goal
Model ASTM BEPA Data Collection
Model RESNET COMNET Energy Assessment Software Compliance
Model ASHRAE 90.1 Building Energy Standard
Model Open Source gbXML BIM Based Energy Analysis
Measure ASHRAE BACNet BEMS Control
Measure Open source Project Haystack Taxonomy For Building Equipment & Points
Measure ASHRAE SPC205 HVAC Equipment Performance
Manage ASHRAE SPC201 Smart Grid Information Model
Manage ISO ISO 5001 Energy Management Systemsg gy g y
Manage Various Building Energy Labeling
Asset and Operational Ratings
66
Technology ConclusionsTechnology Conclusions
Tech. ValueProposition
Benefits To Finance
Benefits To OperationsProposition Finance Operations
Data Transparency
• ↓Risks • Data for
• ↑ Performance VisibilityTransparency
Infinite
Data for Appraisal
Key Metrics
Visibility• Aid M&V
↑ D t G th iInfinite Computing
• Key Metrics• Proof to ↑ Value
• ↑ Data Gathering• Optimize ↑ROI
ECMs
Convergence • Manage RisksCommunicate
ECMs
• ↑ Visibility Improves O+M• Communicate
Value• Improves O+M
Retrofit Triangle Conclusions
68
Operations Conclusions• Technology aids in gathering quality
Operations Conclusionsgy g g q y
data, which enables clear analysis and decision-making
Robust performance data can help get• Robust performance data can help get access to capital, whether internal or 3rd
party
• Sharing data post retrofit helps support hard and soft value creation, and higher property values
• Ongoing M&V tools enable continuous building operations improvement
Investigate, Implement, Improve
FINANCE CONCLUSIONSFinance Conclusions
• Integration: transparency, data over time,
Finance Conclusions
manage risk, behavioral economics
• Public/private credit enhancement, incentives can defray costsincentives can defray costs
• Value beyond cost savings: risk and reputation
• Need credible due diligence reporting by experts, just like other risks have been assessed in the past The Resourceassessed in the past… The Resource Appraisal
70Assess, Access Capital, Appraise
FINANCE CONCLUSIONSTechnology Conclusions
• Technology can bridge the gap between
Technology Conclusions
finance and operations
• Data Transparency helps to quantify, reduce and manage riskreduce, and manage risk
• Modeling through BIM allows for rigorous analysis of potential combinations of ECMs
• Performance visibility leads to behavior change and opportunities for continuous improvement
• Performance measurement provides data for Resource Appraisal, and supports property valuationproperty valuation
71Model, Measure, Manage
Key Take aways• Monitoring system is an investment, not a cost
“D t f ” thi h
Key Take-aways
• “Data fog” = nothing happens
• Make the numbers mean something to the intended audience
• Technology allows for quantification and management of risk at each project stage
Ti ti l d t t k l d i t d• Tie operational data to key value drivers… rents and occupancy
• Implementing efficiency retrofit projects translates to investment value with social and environmental benefitsvalue with social and environmental benefits
QUESTIONS
73
END! Thank YouEND! -- Thank You
THANK YOU!THANK YOU!
74
Section IV
PANELIST BIOSSection IV
75
David HodginsDavid Hodgins
I hi l ith th CCI EEBRP D id lt t i l tf liIn his role with the CCI EEBRP, David consults to commercial portfolio owners undertaking resource efficiency projects, and works with Cities to develop programs to facilitate and incentivize such projects. David has consulted on the development of over 30mm square feet of resource p qefficiency projects, and is currently consulting with several large US cities to develop and implement financing programs to accelerate the commercial energy efficiency market. David’s areas of expertise include resource efficiency retrofit finance performance contracting portfolio strategy andefficiency retrofit finance, performance contracting, portfolio strategy, and environmental policy.
Commercial Sector Project Development ManagerClinton Climate InitiativeBuilding Energy Efficiency Retrofit Program624 S Dunsmuir Ave #102Los Angeles , CA 90036Office: (857) 277 – 4291dh d i @ li t f d tidhodgins@clintonfoundation.org
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Daniele Horton LEED AP + O&MDaniele Horton, LEED AP + O&MDaniele Horton has over 15 years of industry experience. She is the Sustainability Manager for Thomas Properties Group, where she administers the sustainability performance of the p p, y preal estate portfolio nationwide spanning entitlement, design, construction and operations. She runs the LEED EB O&M Certification program for the firm’s nationwide portfolio of 33 office buildings and has managed the LEED Certification of more than 13Million sf to date in house. The company has been recognized by several institutions for their leadership in p y g y psustainability including the NAREIT Leader in the Light Gold Award, Energy Star Leader Award and has most recently been ranked as the highest environmental performer among public funds in North America by the Global Real Estate Sustainability Benchmark.
A LEED AP since 2003, with a Professional Certification in Construction Management and a California Real Estate License, she sits on the California Sustainability Alliance Green Buildings Committee, the BOMA LA Sustainability Committee, the USGBC-LA Board of Directors and founded and Chairs the first Existing Buildings Committee in the countryDirectors and founded and Chairs the first Existing Buildings Committee in the country. Previously, Ms. Aquino worked as an architect and planner in Brazil and the US. She earned her Master's in Sustainable Development from Harvard University and her Bachelor's in Architecture & Urban Planning from Catholic University of Goias in Brazil.
Sustainability ManagerThomas Properties Group515 South Flower Street, 6th Floor Los Angeles CA 90071Los Angeles, CA 90071Office: 2132332530dhorton@tpgre.com
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Aniruddha DeodharAniruddha DeodharAniruddha Deodhar is Sustainability Program Manager at Autodesk, where he is responsible for end to end energy solutions He recently led one ofhe is responsible for end-to-end energy solutions. He recently led one of Autodesk’s Sustainable Buildings Living Labs strategies - rapid energy modeling, that make attaining green energy retrofits in commercial buildings quicker and more cost effective. He also co-developed C-FACT, abuildings quicker and more cost effective. He also co developed C FACT, a novel, business friendly approach to corporate greenhouse gas reduction targets.Aniruddha brings more than a decade’s experience in high technology inAniruddha brings more than a decade s experience in high technology in Asia, Europe and North America. Aniruddha received his M.B.A with Distinction from the Kellogg School of Management and B.A.Sc. Computer Engineering with Honors, from Nanyang Technological University, g g , y g g y,Singapore.
Sustainability Program ManagerSustainability Program ManagerAutodesk1 Market Street, Suite 500, San Francisco CA 94105Office. 415-356-3242aniruddha.deodhar@autodesk.com
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James FinlayJames FinlayIn addition to managing and reviewing appraisals and a wide variety of commercial
t t h i l th i i l f LEED d i d dproperty types, he is also the primary appraisal manager for LEED designed and high performance real estate collateral. These valuations can also include solar photovoltaic arrays and other types of on-site distributed power systems. Since
l 2006 h h b h i l/ l i i f h b k’early 2006 he has been the appraisal/valuation representative of the bank’s Environmental Initiative Team. To date Wells Fargo has extended over $3.25 billion to high performance / “green” real estate. Prior to being an appraiser he was a commercial leasing and sales agent based in Santa Monica for a total more than 20 years in commercial real estate. He currently chairs the USGBC LA Chapter’s Commercial Real Estate & Finance subcommittee and holds a B.A in Mechanical Engineering and Economics at the University of Kentucky, he is a General Certified Appraiser, and has a CA Real Estate Sales license.
VP S i C i l A i l MVP, Senior Commercial Appraisal ManagerWells Fargo707 Wilshire Blvd, 11th FloorLos Angeles CA 90017Los Angeles CA 90017Office: 310-821-8111James.F.Finlay@WellsFargo.com
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END! Thank YouEND! -- Thank You
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