Wilshire Center/Koreatown Green Building Retrofit Program

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Wilshire Center/KoreatownGreen Building Retrofit
Program

• Presented by
• Caroline Sim CRA/LA
• Doug Nordham, P.E. Arup
• Gary Russell, AIA WCBIC
• Christine Magar, AIA, LEED AP Greenform
• David Hodgins, LEED AP Clinton Climate
  Initiative
• March 3, 2011

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Agenda

• Introductions of Program Team
• Program Goals and Objectives
• Program Process and Steps
• Opportunities and Benefits for Participants
• Case Studies and Examples
• How Do You Get Started?

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Program Team Members

• Doug Nordham, P.E. , Arup
• Program Manager
• Gary Russell, AIA, WCBIC
• Community Liaison
• Christine Magar, AIA, LEED AP, Greenform
• Sustainability Consulting
• David Hodgins, LEED AP, Clinton Climate
  Initiative
• Financial Strategy

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Did you know?
Buildings in the U.S. account for -
40
of U.S. primary energy consumption
72
of U.S. electricity consumption
40
of U.S. GHG emissions generation
48
Including building construction and embodied
energy
Goals and Objectives
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Why are existing buildings an important part of
energy and carbon reduction?

• And with 50-70 of existing buildings expected
  to still be in use in 2050, reducing energy
  demand by retrofitting existing stock will be a
  key policy instrument.

Mark Watts, Clinton Climate Initiative
As newer net zero buildings come on line,
existing building stock will find it more
difficult to compete with these new, more
resource efficient buildings. They need to adapt,
or they could become obsolete.
Dr. Jean Rogers, Nick Offer. High Performing
Property Portfolios. A2 Magazine Issue 7 18-19.
Arup
Goals and Objectives
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The Program Goals include the following

• WCBID Cool District Program target of 80 Carbon
  reduction by 2050
• Provide FREE building energy assessments to
  eligible building owners
• Through the assessments, identify the feasible
  energy reduction projects and package those that
  will provide less than a 3 year payback
• Work with potential Energy Project Lenders to
  bring packaged financing options to the
  building owners
• Create an ongoing Program structure that will
  last for several years and be self-funding and
  sustaining

Goals and Objectives
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Why provide FREE Building Energy Assessments?

• A Lawrence Berkeley National Lab study of 60
  buildings of different types showed that
• Over 50 had control problems
• 40 had HVAC equipment problems
• 15 had missing equipment
• 25 had BAS with economizers, VFDs, and
  advanced applications that were simply not
  operating correctly.
• Savings from Energy Assessments
• Value of Energy Savings 0.11 - 0.72/sq. ft.
• Value of Non-Energy Savings 0.10 - 0.45/sq.
  ft.
• Source Assoc. of State Energy Research
  Technology Internships and US Department of
  Energy

Goals and Objectives
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Building Energy Assessments The Process
Preliminary Assessment
Investment Grade Audit
Review of Opportunities
Financing and Design
Project Implementation
A Building Energy Assessment is a structured
process that identifies viable and beneficial
energy reduction/management opportunities within
a particular facility.
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Building Energy Assessments Aligning Goals with
Information
Preliminary Assessment
Information Sources
Goals
Review Opportunities
Building Operations Maintenance Budget
Reduced Operating Cost
Improving Operations Maintenance
Building Management Systems
Investment Grade Audit
Reduce Energy Carbon
Identify Viable EE Measures
Improving Existing Assets
Energy Usage Data
Building Documents
Financing Design
Upgrade Building Systems
Improve Tenant Comfort
Staff Tenant Discussion
Capital Replacement Budget
Project Implementation
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Whats Included in a Building Energy Assessment?

• Review building utility bills
• Conduct site walkthough and equipment inventory
• Identify potential energy efficiency measures
• Calculate energy and cost savings
• Analyze economics and return on investment
• Consider incentives and tax credit opportunities
• Determine measure costs and economics

Program Process and Steps
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Typical Building Energy Assessment Results
ENERGY BASELINE
SCHEDULING/ENABLING
CONTROLS PROBLEMS
ECONOMIZER/OUTSIDE AIR LOADS
ENERGY USE
EQUIPMENT EFFICIENCY IMPROVEMENTS
PLANT OPTIMIZATION
SYSTEM / ZONE OPTIMIZATION
TOTAL ENERGY SAVINGS (Average 25-35) Reference
LBNL
IMPLEMENTATION COST
Program Process and Steps
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Typical Building Energy Assessment Results
ENERGY BASELINE
RETURN ON INVESTMENT avg 3 Years
SCHEDULING/ENABLING
CONTROLS PROBLEMS
ECONOMIZER/OUTSIDE AIR LOADS
ENERGY USE
EQUIPMENT EFFICIENCY IMPROVEMENTS
PLANT OPTIMIZATION
SYSTEM / ZONE OPTIMIZATION
DIMINISHING RETURNS
TOTAL ENERGY SAVINGS (Average 25-35) Reference
LBNL
IMPLEMENTATION COST
Program Process and Steps
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Building Energy Assessments The Process
Go forward with EE Projects?
Preliminary Assessment
Investment Grade Audit
Review of Opportunities
Financing and Design
Project Implementation
Program Process and Steps
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Energy Project Financing
Preliminary Assessment

• What is It?
• What can we typically finance?
• What types of financing are available?
• Considerations and risks
• Typical Results

Review Opportunities
Investment Grade Audit
Financing Design
Project Implementation
Program Process Steps
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Energy Project Financing

• What is it for?
• Approach for financing capital cost of energy
  efficiency retrofit projects
• How does it work?
• Energy cost savings provide a cashflow to repay
  the loan
• What to Finance?
• Energy Efficiency Measures (can include water)
• What types available?
• Grants
• Incentives (especially utility and State)
• Banks/Lenders
• Energy Service Companies
• Self-Funded

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Types of Energy Project Funding

• Grants typically lower amounts to fund pilots,
  research, or seed money limited with great
  effort
• Incentives Typically retroactive from
  Utilities, and Local, State, and Federal
  Government tax breaks
• Self-Funding Savings from early investments
  that have quickest payback (lt 1 yr) fund
  additional efficiency investments
• Bank/Lender Funding Borrow money at standard
  interest rates to invest in energy measures
• ESCO Loans money for investment, manages
  implementation, paid for by energy savings

Energy Project Financing
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Typical Savings with Energy Efficiency Investments
Self Funded 25M Investment _at_ 25 - 35 Savings
75 Million Cumulative Savings in 13 Years
Energy Project Financing
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ESCOs (Energy Service Companies)

• One stop shop for funding and implementation
• Contract based, with payments and profit from
  utility cost savings
• Traditionally focused on low hanging fruit
• Early ESCO (90s) contracts were heavily slanted
  towards ESCO and along with above tendency
  created a poor impression and reduced savings
• ESCO work with the government has forced
  contracts to be more fair
• Pro-active third party audits and consulting can
  also improve ESCO results

Energy Project Financing
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Energy Efficiency Benefits for the Building Owner

• Extended Equipment Life----Lower Repair and
  Maintenance Costs
• Increased Thermal Comfort----for (happier)
  Tenants
• Improved Indoor Air Quality----for (happier)
  Tenants
• Reduced Operating/Energy Costs
• Increased Safety/Reduced Liability
• Greater Building/Asset Value
• Pre-requisite to Renewable Energy

Owner Opportunities and Benefits
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Case Study UCSF Mt Zion Research Center
Arups energy consultants reduced energy usage at
UCSFs most energy intensive research laboratory,
bringing it into line with similar facilities and
saving 354,573 per year, a 36 reduction in
annual energy costs, and a simple project payback
of 0.6 years. Awarded UCs best practice award
in 2009.
CO2 Reduction
Electricity and Natural gas reduction by 29
Total Cost/Benefit
Energy Savings - 354,573 Implementation Cost - 710,000 Simple Payback 0.6 years after incentives
Case Study
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Case Study Time Equities, Inc. Audit
Arups energy audit for Time Equities, Inc.
highlights how improving energy efficiency not
only reduces a buildings operational costs but
also enables corporations to achieve their
sustainability related goals, such as reducing
their carbon footprint.
CO2 Reduction
Annual reduction in CO2 emissions is estimated at 1,165 klbs. Per year, a 40 reduction.
Total Cost/Benefit
Energy Savings - 295,000 Simple Payback Less than 5 years
Case Study
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Case Study
Case Study Pfizer Global RD Campus
Arups energy consultants conducted a major
energy assessment for Pfizer. As a result of the
study, Arup identified and managed implementation
of energy efficiency measures, resulting in
savings of over 1 million per year with a simple
payback period of less than 6 months and
reduction of 5,000 tons of CO2 annually.
Total Cost/Benefit
Energy Savings - 1,023,913 Implementation Cost - 380,500 Simple Payback 0.38 years
CO2 Reduction
5,000 Tons of CO2 reduced annually 20 energy reduction
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Next Steps
How do you get started?

• Contact WCBID or Arup to request your FREE
  Building Energy Assessment
• If your building is selected, well schedule a
  meeting and site visit with you
• Well evaluate your building and then meet to
  discuss results and future options
• If appropriate, conduct the IGA.
• Arrange Project Financing
• Install energy efficiency measures
• Receive cost savings and other benefits!

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• Discussion and Questions

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THANK YOU Caroline Sim CRA/LA 213.368.0651
csim_at_cra.lacity.org Doug Nordham Arup
310.578.4400 douglas.nordham_at_arup.com Gary
Russell WCBIC 213.487.7003
gary_at_wilshirecenter.com Christine
Magar Greenform 323.464.2002
cmagar_at_greenform.net David Hodgins Clinton
Climate Initiative - dhodgins_at_clintonfoundation.or
g